Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

The following table provides the amount of revenue that is not subject to ASC 606, but is instead governed by other accounting standards:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2019			2018		2019		2018
	(Dollars in millions)
Total revenue	$	5,606		5,818		16,831		17,665
Adjustments for non-ASC 606 revenue ⁽¹⁾	(355		)	(312	)	(1,069	)	(947	)
Total revenue from contracts with customers	$	5,251		5,506		15,762		16,718

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(1) Includes regulatory revenue, lease revenue, sublease rental income, revenue from fiber capacity lease arrangements and failed sale leaseback income, none of which are within the scope of ASC 606.

Contract with Customer, Asset and Liability

The following table provides balances of customer receivables, contract assets and contract liabilities as of September 30, 2019 and December 31, 2018:



	September 30, 2019		December 31, 2018
	(Dollars in millions)
Customer receivables⁽¹⁾	$	2,224	2,346
Contract assets	145		140
Contract liabilities	987		860

⁽¹⁾Gross customer receivables of $2.4 billion and $2.5 billion, net of allowance for doubtful accounts of $133 million and $132 million, at September 30, 2019 and December 31, 2018, respectively.

The following table provides information about revenue recognized for the three and nine months ended September 30, 2019 and 2018:



	Three Months Ended September 30,			Nine Months Ended September 30,
	2019		2018	2019	2018
	(Dollars in millions)
Revenue recognized in the period from:
Amounts included in contract liability at the beginning of the period (January 1, 2019 and 2018, respectively)	$	47	56	581	629
Performance obligations satisfied in previous periods	—		—	—	—

Capitalized Contract Cost

The following table provides changes in our contract acquisition costs and fulfillment costs:



	Three Months Ended September 30, 2019					Three Months Ended September 30, 2018
	Acquisition Costs			Fulfillment Costs		Acquisition Costs		Fulfillment Costs
	(Dollars in millions)
Beginning of period balance	$	321		207		287		161
Costs incurred	48			41		53		46
Amortization	(50		)	(32	)	(44	)	(34	)
End of period balance	$	319		216		296		173



	Nine Months Ended September 30, 2019					Nine Months Ended September 30, 2018
	Acquisition Costs			Fulfillment Costs		Acquisition Costs		Fulfillment Costs
	(Dollars in millions)
Beginning of period balance	$	322		187		268		133
Costs incurred	148			119		152		104
Amortization	(151		)	(90	)	(124	)	(64	)
End of period balance	$	319		216		296		173