XML 25 R12.htm IDEA: XBRL DOCUMENT
v3.23.2

Revenue Recognition | 6 Months Ended
--- | ---
Jun. 30, 2023
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | Revenue Recognition Vivint Smart Home Retail Revenue Vivint Smart Home offers its subscribers combinations of smart home products and services, which together create an integrated smart home system that allows the Company's subscribers to monitor, control and protect their homes. As the products and services included in the subscriber'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 subscriber 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 subscriber'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 subscriber contain a material right to renew the contract, because the subscriber 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 Smart Home'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 subscribers are month-to-month from inception. Payment for Vivint Smart Home services is generally due in advance on a monthly basis. Product sales and other one-time fees are invoiced to subscribers 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 June 30, 2023, estimated future fixed fee performance obligations are $742 million for the remaining six months of fiscal year 2023, and $1.3 billion, $949 million, $622 million, $336 million and $42 million for the fiscal years 2024, 2025, 2026, 2027 and 2028, respectively. These performance obligations include Vivint Smart Home products and services as well as cleared auction MWs in the PJM, ISO-NE, NYISO and MISO capacity auctions. The cleared auction MWs 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 and six months ended June 30, 2023 and 2022:
| Three months ended June 30, 2023
(In millions) | Texas |  | East |  | West/Services/Other |  | Vivint Smart Home |  | Corporate/Eliminations |  | Total
Retail revenue: |  |  |  |  |  |  |  |  |  |  |
Home(a) | $ | 1,563 |  |  | $ | 446 |  |  | $ | 406 |  |  | $ | 444 |  |  | $ | — |  |  | $ | 2,859 |
Business | 832 |  |  | 1,912 |  |  | 424 |  |  | — |  |  | — |  |  | 3,168 |
Total retail revenue(b) | 2,395 |  |  | 2,358 |  |  | 830 |  |  | 444 |  |  | — |  |  | 6,027 |
Energy revenue(b) | 16 |  |  | 28 |  |  | 40 |  |  | — |  |  | (1) |  |  | 83 |
Capacity revenue(b) | — |  |  | 49 |  |  | — |  |  | — |  |  | — |  |  | 49 |
Mark-to-market for economic hedging activities(c) | — |  |  | 52 |  |  | 23 |  |  | — |  |  | — |  |  | 75 |
Contract amortization | — |  |  | (7) |  |  | (1) |  |  | — |  |  | — |  |  | (8) |
Other revenue(b) | 104 |  |  | 23 |  |  | — |  |  | — |  |  | (5) |  |  | 122 |
Total revenue | 2,515 |  |  | 2,503 |  |  | 892 |  |  | 444 |  |  | (6) |  |  | 6,348 |
Less: Revenues accounted for under topics other than ASC 606 and ASC 815 | — |  |  | 6 |  |  | 7 |  |  | — |  |  | — |  |  | 13 |
Less: Realized and unrealized ASC 815 revenue | 14 |  |  | 99 |  |  | 7 |  |  | — |  |  | (1) |  |  | 119 |
Total revenue from contracts with customers | $ | 2,501 |  |  | $ | 2,398 |  |  | $ | 878 |  |  | $ | 444 |  |  | $ | (5) |  |  | $ | 6,216 |
(a) Home includes Services and Vivint Smart Home
(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) | Texas |  | East |  | West/Services/Other |  | Vivint Smart Home |  | Corporate/Eliminations |  | Total
Retail revenue | $ | — |  |  | $ | 16 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 16 |
Energy revenue | — |  |  | 13 |  |  | (7) |  |  | — |  |  | (1) |  |  | 5 |
Capacity revenue | — |  |  | 17 |  |  | — |  |  | — |  |  | — |  |  | 17 |
Other revenue | 14 |  |  | 1 |  |  | (9) |  |  | — |  |  | — |  |  | 6 |
(c) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815
| Three months ended June 30, 2022
(In millions) | Texas |  | East |  | West/Services/Other |  | Corporate/Eliminations |  | Total
Retail revenue: |  |  |  |  |  |  |  |  |
Home(a) | $ | 1,655 |  |  | $ | 417 |  |  | $ | 543 |  |  | $ | (1) |  |  | $ | 2,614 |
Business | 910 |  |  | 2,983 |  |  | 444 |  |  | — |  |  | 4,337 |
Total retail revenue | 2,565 |  |  | 3,400 |  |  | 987 |  |  | (1) |  |  | 6,951 |
Energy revenue(b) | 38 |  |  | 128 |  |  | 131 |  |  | 9 |  |  | 306 |
Capacity revenue(b) | — |  |  | 89 |  |  | 1 |  |  | — |  |  | 90 |
Mark-to-market for economic hedging activities(c) | (1) |  |  | (106) |  |  | (38) |  |  | (3) |  |  | (148) |
Contract amortization | — |  |  | (11) |  |  | (2) |  |  | — |  |  | (13) |
Other revenue(b) | 90 |  |  | 14 |  |  | (3) |  |  | (5) |  |  | 96 |
Total revenue | 2,692 |  |  | 3,514 |  |  | 1,076 |  |  | — |  |  | 7,282 |
Less: Revenues accounted for under topics other than ASC 606 and ASC 815 | — |  |  | (4) |  |  | 8 |  |  | — |  |  | 4 |
Less: Realized and unrealized ASC 815 revenue | (13) |  |  | (123) |  |  | (70) |  |  | 7 |  |  | (199) |
Total revenue from contracts with customers | $ | 2,705 |  |  | $ | 3,641 |  |  | $ | 1,138 |  |  | $ | (7) |  |  | $ | 7,477 |
(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) | Texas |  | East |  | West/Services/Other |  | Corporate/Eliminations |  | Total
Energy revenue | $ | — |  |  | $ | (19) |  |  | $ | (20) |  |  | $ | 9 |  |  | $ | (30) |
Capacity revenue | — |  |  | 9 |  |  | — |  |  | — |  |  | 9 |
Other revenue | (12) |  |  | (7) |  |  | (12) |  |  | 1 |  |  | (30) |
(c) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815
| Six months ended June 30, 2023
(In millions) | Texas |  | East |  | West/Services/Other |  | Vivint Smart Home(a) |  | Corporate/Eliminations |  | Total
Retail revenue: |  |  |  |  |  |  |  |  |  |  |
Home(b) | $ | 2,799 |  |  | $ | 1,097 |  |  | $ | 1,031 |  |  | $ | 592 |  |  | $ | — |  |  | $ | 5,519 |
Business | 1,554 |  |  | 5,277 |  |  | 1,040 |  |  | — |  |  | — |  |  | 7,871 |
Total retail revenue(c) | 4,353 |  |  | 6,374 |  |  | 2,071 |  |  | 592 |  |  | — |  |  | 13,390 |
Energy revenue(c) | 20 |  |  | 102 |  |  | 88 |  |  | — |  |  | 1 |  |  | 211 |
Capacity revenue(c) | — |  |  | 90 |  |  | 1 |  |  | — |  |  | — |  |  | 91 |
Mark-to-market for economic hedging activities(d) | — |  |  | 87 |  |  | 90 |  |  | — |  |  | (11) |  |  | 166 |
Contract amortization | — |  |  | (18) |  |  | (1) |  |  | — |  |  | — |  |  | (19) |
Other revenue(c) | 176 |  |  | 44 |  |  | 17 |  |  | — |  |  | (6) |  |  | 231 |
Total revenue | 4,549 |  |  | 6,679 |  |  | 2,266 |  |  | 592 |  |  | (16) |  |  | 14,070 |
Less: Revenues accounted for under topics other than ASC 606 and ASC 815 | — |  |  | 5 |  |  | 16 |  |  | — |  |  | — |  |  | 21 |
Less: Realized and unrealized ASC 815 revenue | 12 |  |  | 212 |  |  | 104 |  |  | — |  |  | (10) |  |  | 318 |
Total revenue from contracts with customers | $ | 4,537 |  |  | $ | 6,462 |  |  | $ | 2,146 |  |  | $ | 592 |  |  | $ | (6) |  |  | $ | 13,731 |
(a) Includes results of operations following the acquisition date of March 10, 2023
(b) Home includes Services and Vivint Smart Home
(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) | Texas |  | East |  | West/Services/Other |  | Vivint Smart Home |  | Corporate/Eliminations |  | Total
Retail revenue | $ | — |  |  | $ | 43 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 43 |
Energy revenue | — |  |  | 60 |  |  | 10 |  |  | — |  |  | 1 |  |  | 71 |
Capacity revenue | — |  |  | 23 |  |  | — |  |  | — |  |  | — |  |  | 23 |
Other revenue | 12 |  |  | (1) |  |  | 4 |  |  | — |  |  | — |  |  | 15 |
(d) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815
| Six months ended June 30, 2022
(In millions) | Texas |  | East |  | West/Services/Other |  | Corporate/Eliminations |  | Total
Retail revenue: |  |  |  |  |  |  |  |  |
Home(a) | $ | 2,938 |  |  | $ | 996 |  |  | $ | 1,246 |  |  | $ | (1) |  |  | $ | 5,179 |
Business | 1,573 |  |  | 6,925 |  |  | 844 |  |  | — |  |  | 9,342 |
Total retail revenue | 4,511 |  |  | 7,921 |  |  | 2,090 |  |  | (1) |  |  | 14,521 |
Energy revenue(b) | 53 |  |  | 332 |  |  | 185 |  |  | 14 |  |  | 584 |
Capacity revenue(b) | — |  |  | 204 |  |  | 2 |  |  | — |  |  | 206 |
Mark-to-market for economic hedging activities(c) | (3) |  |  | (236) |  |  | (56) |  |  | 14 |  |  | (281) |
Contract amortization | — |  |  | (20) |  |  | (2) |  |  | — |  |  | (22) |
Other revenue(b) | 151 |  |  | 28 |  |  | 1 |  |  | (10) |  |  | 170 |
Total revenue | 4,712 |  |  | 8,229 |  |  | 2,220 |  |  | 17 |  |  | 15,178 |
Less: Revenues accounted for under topics other than ASC 606 and ASC 815 | — |  |  | (13) |  |  | 19 |  |  | — |  |  | 6 |
Less: Realized and unrealized ASC 815 revenue | (20) |  |  | (189) |  |  | (112) |  |  | 27 |  |  | (294) |
Total revenue from contracts with customers | $ | 4,732 |  |  | $ | 8,431 |  |  | $ | 2,313 |  |  | $ | (10) |  |  | $ | 15,466 |
(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) | Texas |  | East |  | West/Services/Other |  | Corporate/Eliminations |  | Total
Energy revenue | $ | — |  |  | $ | 26 |  |  | $ | (40) |  |  | $ | 13 |  |  | $ | (1) |
Capacity revenue | — |  |  | 22 |  |  | — |  |  | — |  |  | 22 |
Other revenue | (17) |  |  | (1) |  |  | (16) |  |  | — |  |  | (34) |
(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 June 30, 2023 and December 31, 2022:
(In millions) | June 30, 2023 |  | December 31, 2022
Deferred customer acquisition costs | $ | 422 |  |  | $ | 126 |
Accounts receivable, net - Contracts with customers | 3,049 |  |  | 4,704 |
Accounts receivable, net - Accounted for under topics other than ASC 606 | 194 |  |  | 64 |
Accounts receivable, net - Affiliate | 31 |  |  | 5 |
Total accounts receivable, net | $ | 3,274 |  |  | $ | 4,773 |
Unbilled revenues (included within Accounts receivable, net - Contracts with customers) | $ | 1,297 |  |  | $ | 1,952 |
Deferred revenues(a) | 1,658 |  |  | 186 |
(a) Deferred revenues from contracts with customers as of June 30, 2023 and December 31, 2022 were approximately $1.6 billion and $175 million, respectively. The increase in deferred revenues is primarily due to acquisition of Vivint Smart Home The revenue recognized from contracts with customers during the six months ended June 30, 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 six months ended June 30, 2023 and 2022 was primarily due to the timing difference of when consideration was received and when the performance obligation was transferred. The revenue recognized from contracts with customers during the three months ended June 30, 2023 and 2022 relating to the deferred revenue balance at the beginning of each period was $310 million and $106 million, respectively. The change in deferred revenue balances recognized during the three months ended June 30, 2023 was primarily due to the acquisition of Vivint Smart Home.

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration