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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)
TexasEastWest/Services/OtherVivint Smart HomeCorporate/EliminationsTotal
Retail revenue:
Home(a)
$1,563 $446 $406 $444 $— $2,859 
Business832 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 revenue2,515 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)$6,216 
(a) Home includes Services and Vivint Smart Home
(b) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above:
(In millions)
TexasEastWest/Services/OtherVivint Smart HomeCorporate/EliminationsTotal
Retail revenue$— $16 $— $— $— $16 
Energy revenue— 13 (7)— (1)5 
Capacity revenue— 17 — — — 17 
Other revenue14 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)
TexasEastWest/Services/OtherCorporate/EliminationsTotal
Retail revenue:
Home(a)
$1,655 $417 $543 $(1)$2,614 
Business910 2,983 444 — 4,337 
Total retail revenue2,565 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 revenue2,692 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)$7,477 
(a) Home includes Services
(b) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above:
(In millions)
TexasEastWest/Services/OtherCorporate/EliminationsTotal
Energy revenue$— $(19)$(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)TexasEastWest/Services/Other
Vivint Smart Home(a)
Corporate/EliminationsTotal
Retail revenue:
Home(b)
$2,799 $1,097 $1,031 $592 $— $5,519 
Business1,554 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 revenue4,549 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)$13,731 
(a) Includes results of operations following the acquisition date of March 10, 2023
(b) Home includes Services and Vivint Smart Home
(c) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above:
(In millions)
TexasEastWest/Services/Other
Vivint Smart Home
Corporate/EliminationsTotal
Retail revenue$— $43 $— $— $— $43 
Energy revenue— 60 10 — 1 71 
Capacity revenue— 23 — — — 23 
Other revenue12 (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)TexasEastWest/Services/OtherCorporate/EliminationsTotal
Retail revenue:
Home(a)
$2,938 $996 $1,246 $(1)$5,179 
Business1,573 6,925 844 — 9,342 
Total retail revenue4,511 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 revenue4,712 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)$15,466 
(a) Home includes Services
(b) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above:
(In millions)
TexasEastWest/Services/OtherCorporate/EliminationsTotal
Energy revenue$— $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, 2023December 31, 2022
Deferred customer acquisition costs$422 $126 
Accounts receivable, net - Contracts with customers3,049 4,704 
Accounts receivable, net - Accounted for under topics other than ASC 606194 64 
Accounts receivable, net - Affiliate31 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.