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Revenue Recognition
 9 Months Ended
Sep. 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 expected period of 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 September 30, 2023, estimated future fixed fee performance obligations are $414 million for the remaining three months of fiscal year 2023, and $1.4 billion, $1.0 billion, $722 million, $434 million and $103 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 nine months ended September 30, 2023 and 2022:
Three months ended September 30, 2023
(In millions)
TexasEastWest/Services/Other
Vivint Smart Home(a)
Corporate/EliminationsTotal
Retail revenue:
Home(a)
$2,397 $544 $390 $478 $(1)$3,808 
Business1,092 2,089 532 — — 3,713 
Total retail revenue(b)
3,489 2,633 922 478 (1)7,521 
Energy revenue(b)
51 152 59 — (1)261 
Capacity revenue(b)
— 64 (4)— (1)59 
Mark-to-market for economic hedging activities(c)
— (60)(10)— — (70)
Contract amortization— (6)1 — — (5)
Other revenue(b)
146 26 10 — (2)180 
Total revenue3,686 2,809 978 478 (5)7,946 
Less: Revenues accounted for under topics other than ASC 606 and ASC 815— 8 10 — — 18 
Less: Realized and unrealized ASC 815 revenue
16 58 (7)— — 67 
Total revenue from contracts with customers$3,670 $2,743 $975 $478 $(5)$7,861 
(a) Home includes Services and Vivint Smart Home
(b) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above:
(In millions)
TexasEastWest/Services/OtherVivint Smart HomeCorporate/EliminationsTotal
Retail revenue$— $14 $— $— $— $14 
Energy revenue— 77 — — — 77 
Capacity revenue— 27 — — — 27 
Other revenue16 — 3 — — 19 
(c) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815
Three months ended September 30, 2022
(In millions)
TexasEastWest/Services/OtherCorporate/EliminationsTotal
Retail revenue:
Home(a)
$2,068 $530 $435 $— $3,033 
Business931 3,333 561 — 4,825 
Total retail revenue2,999 3,863 996 — 7,858 
Energy revenue(b)
48 212 180 10 450 
Capacity revenue(b)
— 38 — — 38 
Mark-to-market for economic hedging activities(c)
4 32 (7)4 33 
Contract amortization— (10)4 — (6)
Other revenue(b)
94 43 2 (2)137 
Total revenue3,145 4,178 1,175 12 8,510 
Less: Revenues accounted for under topics other than ASC 606 and ASC 815— 3 14 (1)16 
Less: Realized and unrealized ASC 815 revenue
15 93 13 14 135 
Total revenue from contracts with customers$3,130 $4,082 $1,148 $(1)$8,359 
(a) Home includes Services
(b) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above:
(In millions)
TexasEastWest/Services/OtherCorporate/EliminationsTotal
Retail revenue$— $90 $— $— $90 
Energy revenue— (39)27 11 (1)
Capacity revenue— 7 — — 7 
Other revenue11 3 (7)(1)6 
(c) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815
Nine months ended September 30, 2023
(In millions)TexasEastWest/Services/Other
Vivint Smart Home(a)(b)
Corporate/EliminationsTotal
Retail revenue:
Home(b)
$5,196 $1,641 $1,421 $1,070 $(1)$9,327 
Business2,646 7,366 1,572 — — 11,584 
Total retail revenue(c)
7,842 9,007 2,993 1,070 (1)20,911 
Energy revenue(c)
71 254 147 — — 472 
Capacity revenue(c)
— 154 (3)— (1)150 
Mark-to-market for economic hedging activities(d)
— 27 80 — (11)96 
Contract amortization— (24)— — — (24)
Other revenue(c)
322 70 27 — (8)411 
Total revenue8,235 9,488 3,244 1,070 (21)22,016 
Less: Revenues accounted for under topics other than ASC 606 and ASC 815— 13 26 — — 39 
Less: Realized and unrealized ASC 815 revenue
28 270 97 — (10)385 
Total revenue from contracts with customers$8,207 $9,205 $3,121 $1,070 $(11)$21,592 
(a) Includes results of operations following the acquisition date of March 10, 2023
(b) Home includes Services and Vivint Smart Home
(c) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above:
(In millions)
TexasEastWest/Services/OtherVivint Smart HomeCorporate/EliminationsTotal
Retail revenue$— $57 $— $— $— $57 
Energy revenue— 137 10 — 1 148 
Capacity revenue— 50 — — — 50 
Other revenue28 (1)7 — — 34 
(d) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815
Nine months ended September 30, 2022
(In millions)TexasEastWest/Services/OtherCorporate/EliminationsTotal
Retail revenue:
Home(a)
$5,006 $1,526 $1,681 $(1)$8,212 
Business2,504 10,258 1,405 — 14,167 
Total retail revenue7,510 11,784 3,086 (1)22,379 
Energy revenue(b)
101 544 365 24 1,034 
Capacity revenue(b)
— 242 2 — 244 
Mark-to-market for economic hedging activities(c)
1 (204)(63)18 (248)
Contract amortization— (30)2 — (28)
Other revenue(b)
245 71 3 (12)307 
Total revenue7,857 12,407 3,395 29 23,688 
Less: Revenues accounted for under topics other than ASC 606 and ASC 815— (10)33 (1)22 
Less: Realized and unrealized ASC 815 revenue
(5)(96)(99)41 (159)
Total revenue from contracts with customers$7,862 $12,513 $3,461 $(11)$23,825 
(a) Home includes Services
(b) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above:
(In millions)
TexasEastWest/Services/OtherCorporate/EliminationsTotal
Retail revenue$— $90 $— $— $90 
Energy revenue— (13)(13)24 (2)
Capacity revenue— 29 — — 29 
Other revenue(6)2 (23)(1)(28)
(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 September 30, 2023 and December 31, 2022:
(In millions)
September 30, 2023December 31, 2022
Capitalized contract costs$639 $126 
Accounts receivable, net - Contracts with customers3,553 4,704 
Accounts receivable, net - Accounted for under topics other than ASC 606188 64 
Accounts receivable, net - Affiliate23 5 
Total accounts receivable, net $3,764 $4,773 
Unbilled revenues (included within Accounts receivable, net - Contracts with customers)$1,336 $1,952 
Deferred revenues(a)
1,720 186 
(a) Deferred revenues from contracts with customers as of September 30, 2023 and December 31, 2022 were approximately $1.7 billion and $175 million, respectively. The increase in deferred revenues is primarily due to the acquisition of Vivint Smart Home
The revenue recognized from contracts with customers during the nine months ended September 30, 2023 and 2022 relating to the deferred revenue balance at the beginning of each period was $168 million and $173 million, respectively. The change in deferred revenue balances recognized during the nine months ended September 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 September 30, 2023 and 2022 relating to the deferred revenue balance at the beginning of each period was $310 million and $159 million, respectively. The change in deferred revenue balances recognized during the three months ended September 30, 2023 was primarily due to the acquisition of Vivint Smart Home.