XML 25 R11.htm IDEA: XBRL DOCUMENT v3.23.1
Revenue Recognition
 3 Months Ended
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Vivint Retail Revenue
Vivint offers its customers combinations of smart home products and services, which together create an integrated smart home system that allows the Company's customers to monitor, control and protect their home. As the products and services included in the customer's contract are integrated and highly interdependent, and because the products (including installation) and services must work together to deliver the monitoring, controlling and protection of their home, the Company has concluded that the products and services contracted for by the customer are generally not distinct within the context of the contract and, therefore, constitute a single, combined performance obligation. Revenues for this single, combined performance obligation are recognized on a straight-line basis over the customer's contract term, which is the period in which the parties to the contract have enforceable rights and obligations. The Company has determined that certain contracts that do not require a long-term commitment for monitoring services by the customer contain a material right to renew the contract, because the customer does not have to purchase the products upon renewal. Proceeds allocated to the material right are recognized over the period of the benefit. The majority of Vivint's subscription contracts are five years and are generally non-cancelable. These contracts generally convert into month-to-month agreements at the end of the initial term, while some customers are month-to-month from inception. Payment for Vivint services is generally due in advance on a monthly basis. Product sales and other one-time fees are invoiced to customers at time of sale. Revenues for any products or services that are considered separate performance obligations are recognized upon delivery. Payments received or billed in advance are reported as deferred revenues.
Performance Obligations
As of March 31, 2023, estimated future fixed fee performance obligations are $1.0 billion for the remaining nine months of fiscal year 2023, and $1.1 billion, $828 million, $510 million, $227 million and $4 million for the fiscal years 2024, 2025, 2026, 2027 and 2028, respectively. These performance obligations include Vivint products and services as well as cleared auction MWs in the PJM, ISO-NE, NYISO and MISO capacity auctions and are subject to penalties for non-performance.
Disaggregated Revenues
The following tables represent the Company’s disaggregation of revenue from contracts with customers for the three months ended March 31, 2023 and 2022:
Three months ended March 31, 2023
(In millions)
TexasEastWest/Services/Other
Vivint(a)
Corporate/EliminationsTotal
Retail revenue:
Home(b)
$1,236 $651 $625 $148 $— $2,660 
Business722 3,365 616 — — 4,703 
Total retail revenue(c)
1,958 4,016 1,241 148 — 7,363 
Energy revenue(c)
4 74 48 — 2 128 
Capacity revenue(c)
— 41 1 — — 42 
Mark-to-market for economic hedging activities(d)
— 35 67 — (11)91 
Contract amortization— (11)— — — (11)
Other revenue(c)
72 21 17 — (1)109 
Total revenue2,034 4,176 1,374 148 (10)7,722 
Less: Revenues accounted for under topics other than ASC 606 and ASC 815— (1)9 — — 8 
Less: Realized and unrealized ASC 815 revenue
(2)113 97 — (9)199 
Total revenue from contracts with customers$2,036 $4,064 $1,268 $148 $(1)$7,515 
(a) Vivint includes results of operations following the acquisition date of March 10, 2023
(b) Home includes Services and Vivint
(c) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above:
(In millions)
TexasEastWest/Services/OtherVivintCorporate/EliminationsTotal
Retail revenue$— $27 $— $— $— $27 
Energy revenue— 47 17 — 2 66 
Capacity revenue— 6 — — — 6 
Other revenue(2)(2)13 — — 9 
(d) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815
Three months ended March 31, 2022
(In millions)
TexasEastWest/Services/OtherCorporate/EliminationsTotal
Retail revenue:
Home(a)
$1,283 $579 $703 $— $2,565 
Business663 3,942 400 — 5,005 
Total retail revenue1,946 4,521 1,103 — 7,570 
Energy revenue(b)
15 204 54 5 278 
Capacity revenue(b)
— 115 1 — 116 
Mark-to-market for economic hedging activities(c)
(2)(130)(18)17 (133)
Contract amortization— (9)— — (9)
Other revenue(b)
61 14 4 (5)74 
Total revenue2,020 4,715 1,144 17 7,896 
Less: Revenues accounted for under topics other than ASC 606 and ASC 815— (9)11 — 2 
Less: Realized and unrealized ASC 815 revenue
(7)(66)(42)20 (95)
Total revenue from contracts with customers$2,027 $4,790 $1,175 $(3)$7,989 
(a) Home includes Services
(b) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above:
(In millions)
TexasEastWest/Services/OtherCorporate/EliminationsTotal
Energy revenue$— $45 $(20)$4 $29 
Capacity revenue— 13 — — 13 
Other revenue(5)6 (4)(1)(4)
(c) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815
Contract Balances
The following table reflects the contract assets and liabilities included in the Company’s balance sheet as of March 31, 2023 and December 31, 2022:
(In millions)
March 31, 2023December 31, 2022
Deferred customer acquisition costs$188 $126 
Accounts receivable, net - Contracts with customers3,416 4,704 
Accounts receivable, net - Accounted for under topics other than ASC 60687 64 
Accounts receivable, net - Affiliate16 5 
Total accounts receivable, net $3,519 $4,773 
Unbilled revenues (included within Accounts receivable, net - Contracts with customers)$1,290 $1,952 
Deferred revenues(a)
1,536 186 
(a) Deferred revenues from contracts with customers for the three months ended March 31, 2023 and the year ended December 31, 2022 were approximately $1.5 billion and $175 million, respectively. The increase in deferred revenues is primarily due to acquisition of Vivint
The revenue recognized from contracts with customers during the three months ended March 31, 2023 and 2022 relating to the deferred revenue balance at the beginning of each period was $168 million and $117 million, respectively. The change in deferred revenue balances recognized during the three months ended March 31, 2023 and 2022 was primarily due to the timing difference of when consideration was received and when the performance obligation was transferred.