XML 41 R30.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Revenue Recognition (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2022
Revenue from Contract with Customer [Abstract] |
Schedule of Revenue | The following tables provide total revenue by segment, sales channel and product category. They also provide the amount of revenue that is not subject to ASC 606, "Revenue from Contracts with Customers" ("ASC 606"), but is instead governed by other accounting standards. The amounts in the tables below include the Latin American business revenues prior to it being sold on August 1, 2022.
| Three Months Ended September 30, 2022 |  | Three Months Ended September 30, 2021
| Total Revenue | Adjustments for Non-ASC 606 revenue (1) | Total revenue from Contracts with Customers |  | Total Revenue | Adjustments for Non-ASC 606 revenue (1) | Total revenue from Contracts with Customers
| (Dollars in millions)
Business Segment by Sales Channel and Product Category |  |  |  |  |  |  |
International and Global Accounts ("IGAM") |  |  |  |  |  |  |
Compute and Application Services | $ | 154 |  | (47) |  | 107 |  |  | 183 |  | (71) |  | 112 |
IP and Data Services | 350 |  | — |  | 350 |  |  | 431 |  | — |  | 431 |
Fiber Infrastructure | 199 |  | (33) |  | 166 |  |  | 231 |  | (33) |  | 198 |
Voice and Other | 150 |  | — |  | 150 |  |  | 182 |  | — |  | 182 |
Total IGAM Revenue | 853 |  | (80) |  | 773 |  |  | 1,027 |  | (104) |  | 923 |
Large Enterprise |  |  |  |  |  |  |
Compute and Application Services | 148 |  | (16) |  | 132 |  |  | 172 |  | (15) |  | 157 |
IP and Data Services | 378 |  | — |  | 378 |  |  | 394 |  | — |  | 394 |
Fiber Infrastructure | 117 |  | (11) |  | 106 |  |  | 143 |  | (11) |  | 132 |
Voice and Other | 201 |  | — |  | 201 |  |  | 233 |  | — |  | 233 |
Total Large Enterprise Revenue | 844 |  | (27) |  | 817 |  |  | 942 |  | (26) |  | 916 |
Mid-Market Enterprise |  |  |  |  |  |  |
Compute and Application Services | 35 |  | (7) |  | 28 |  |  | 30 |  | (8) |  | 22 |
IP and Data Services | 406 |  | (1) |  | 405 |  |  | 421 |  | (1) |  | 420 |
Fiber Infrastructure | 49 |  | (2) |  | 47 |  |  | 50 |  | (2) |  | 48 |
Voice and Other | 128 |  | — |  | 128 |  |  | 147 |  | — |  | 147 |
Total Mid-Market Enterprise Revenue | 618 |  | (10) |  | 608 |  |  | 648 |  | (11) |  | 637 |
Wholesale |  |  |  |  |  |  |
Compute and Application Services | 62 |  | (39) |  | 23 |  |  | 46 |  | (39) |  | 7 |
IP and Data Services | 283 |  | — |  | 283 |  |  | 297 |  | — |  | 297 |
Fiber Infrastructure | 165 |  | (28) |  | 137 |  |  | 154 |  | (30) |  | 124 |
Voice and Other | 392 |  | (62) |  | 330 |  |  | 394 |  | (63) |  | 331 |
Total Wholesale Revenue | 902 |  | (129) |  | 773 |  |  | 891 |  | (132) |  | 759 |
Business Segment by Product Category |  |  |  |  |  |  |
Compute and Application Services | 399 |  | (109) |  | 290 |  |  | 431 |  | (133) |  | 298 |
IP and Data Services | 1,417 |  | (1) |  | 1,416 |  |  | 1,543 |  | (1) |  | 1,542 |
Fiber Infrastructure | 530 |  | (74) |  | 456 |  |  | 578 |  | (76) |  | 502 |
Voice and Other | 871 |  | (62) |  | 809 |  |  | 956 |  | (63) |  | 893 |
Total Business Segment Revenue | 3,217 |  | (246) |  | 2,971 |  |  | 3,508 |  | (273) |  | 3,235 |
Mass Markets Segment by Product Category |  |  |  |  |  |  |
Fiber Broadband | 160 |  | (4) |  | 156 |  |  | 135 |  | — |  | 135 |
Other Broadband | 580 |  | (55) |  | 525 |  |  | 619 |  | (56) |  | 563 |
Voice and Other | 433 |  | (26) |  | 407 |  |  | 625 |  | (143) |  | 482 |
Total Mass Markets Revenue | 1,173 |  | (85) |  | 1,088 |  |  | 1,379 |  | (199) |  | 1,180 |
Total Revenue | $ | 4,390 |  | (331) |  | 4,059 |  |  | 4,887 |  | (472) |  | 4,415 |
| Nine Months Ended September 30, 2022 |  | Nine Months Ended September 30, 2021
| Total revenue | Adjustments for non-ASC 606 revenue (1) | Total revenue from contracts with customers |  | Total revenue | Adjustments for non-ASC 606 revenue (1) | Total revenue from contracts with customers
| (Dollars in millions)
Business Segment by Sales Channel and Product Category |  |  |  |  |  |  |
International and Global Accounts ("IGAM") |  |  |  |  |  |  |
Compute and Application Services | $ | 521 |  | (191) |  | 330 |  |  | 547 |  | (210) |  | 337 |
IP and Data Services | 1,190 |  | — |  | 1,190 |  |  | 1,287 |  | — |  | 1,287 |
Fiber Infrastructure | 642 |  | (102) |  | 540 |  |  | 665 |  | (95) |  | 570 |
Voice and Other | 495 |  | — |  | 495 |  |  | 559 |  | — |  | 559 |
Total IGAM Revenue | 2,848 |  | (293) |  | 2,555 |  |  | 3,058 |  | (305) |  | 2,753 |
Large Enterprise |  |  |  |  |  |  |
Compute and Application Services | 473 |  | (45) |  | 428 |  |  | 515 |  | (45) |  | 470 |
IP and Data Services | 1,151 |  | — |  | 1,151 |  |  | 1,192 |  | — |  | 1,192 |
Fiber Infrastructure | 359 |  | (35) |  | 324 |  |  | 403 |  | (38) |  | 365 |
Voice and Other | 622 |  | — |  | 622 |  |  | 730 |  | — |  | 730 |
Total Large Enterprise Revenue | 2,605 |  | (80) |  | 2,525 |  |  | 2,840 |  | (83) |  | 2,757 |
Mid-Market Enterprise |  |  |  |  |  |  |
Compute and Application Services | 102 |  | (21) |  | 81 |  |  | 94 |  | (25) |  | 69 |
IP and Data Services | 1,229 |  | (3) |  | 1,226 |  |  | 1,291 |  | (4) |  | 1,287 |
Fiber Infrastructure | 148 |  | (6) |  | 142 |  |  | 156 |  | (6) |  | 150 |
Voice and Other | 401 |  | — |  | 401 |  |  | 461 |  | — |  | 461 |
Total Mid-Market Enterprise Revenue | 1,880 |  | (30) |  | 1,850 |  |  | 2,002 |  | (35) |  | 1,967 |
Wholesale |  |  |  |  |  |  |
Compute and Application Services | 183 |  | (118) |  | 65 |  |  | 141 |  | (120) |  | 21 |
IP and Data Services | 864 |  | — |  | 864 |  |  | 900 |  | — |  | 900 |
Fiber Infrastructure | 480 |  | (84) |  | 396 |  |  | 463 |  | (89) |  | 374 |
Voice and Other | 1,174 |  | (189) |  | 985 |  |  | 1,221 |  | (188) |  | 1,033 |
Total Wholesale Revenue | 2,701 |  | (391) |  | 2,310 |  |  | 2,725 |  | (397) |  | 2,328 |
Business Segment by Product Category |  |  |  |  |  |  |
Compute and Application Services | 1,279 |  | (375) |  | 904 |  |  | 1,297 |  | (400) |  | 897 |
IP and Data Services | 4,434 |  | (3) |  | 4,431 |  |  | 4,670 |  | (4) |  | 4,666 |
Fiber Infrastructure | 1,629 |  | (227) |  | 1,402 |  |  | 1,687 |  | (228) |  | 1,459 |
Voice and Other | 2,692 |  | (189) |  | 2,503 |  |  | 2,971 |  | (188) |  | 2,783 |
Total Business Segment Revenue | 10,034 |  | (794) |  | 9,240 |  |  | 10,625 |  | (820) |  | 9,805 |
Mass Markets Segment by Product Category |  |  |  |  |  |  |
Fiber Broadband | 456 |  | (14) |  | 442 |  |  | 387 |  | — |  | 387 |
Other Broadband | 1,786 |  | (166) |  | 1,620 |  |  | 1,899 |  | (166) |  | 1,733 |
Voice and Other | 1,402 |  | (125) |  | 1,277 |  |  | 1,929 |  | (431) |  | 1,498 |
Total Mass Markets Revenue | 3,644 |  | (305) |  | 3,339 |  |  | 4,215 |  | (597) |  | 3,618 |
Total Revenue | $ | 13,678 |  | (1,099) |  | 12,579 |  |  | 14,840 |  | (1,417) |  | 13,423 |
_____________________________________________________________________ (1)Includes regulatory revenue and lease revenue not 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, net of amounts classified as held for sale, as of September 30, 2022 and December 31, 2021:
| September 30, 2022 |  | December 31, 2021
| (Dollars in millions)
Customer receivables(1) | $ | 1,407 |  |  | 1,493 |
Contract assets(2) | 56 |  |  | 73 |
Contract liabilities(3) | 714 |  |  | 680 |
______________________________________________________________________ (1)Reflects gross customer receivables of $1.5 billion and $1.6 billion, net of allowance for credit losses of $84 million and $102 million, at September 30, 2022 and December 31, 2021, respectively. These amounts exclude customer receivables, net, classified as held for sale of $175 million at September 30, 2022 (related to the ILEC business) and $288 million at December 31, 2021 (related to both the Latin American business and the ILEC business). (2)These amounts exclude contract assets classified as held for sale of $7 million at September 30, 2022 (related to the ILEC business) and $9 million at December 31, 2021 (related to both the Latin American business and the ILEC business). (3)These amounts exclude contract liabilities classified as held for sale of $76 million at September 30, 2022 (related to the ILEC business) and $161 million at December 31, 2021 (related to both the Latin American business and the ILEC business).
Capitalized Contract Cost | The following tables provide changes in our contract acquisition costs and fulfillment costs:
| Three Months Ended September 30, 2022 |  | Three Months Ended September 30, 2021
| Acquisition Costs |  | Fulfillment Costs |  | Acquisition Costs |  | Fulfillment Costs
| (Dollars in millions) |  | (Dollars in millions)
Beginning of period balance(1) | $ | 208 |  |  | 188 |  |  | 271 |  |  | 217 |
Costs incurred | 45 |  |  | 38 |  |  | 43 |  |  | 37 |
Amortization | (49) |  |  | (35) |  |  | (51) |  |  | (37) |
Change in contract costs held for sale | 3 |  |  | (2) |  |  | (35) |  |  | (31) |
End of period balance(2) | $ | 207 |  |  | 189 |  |  | 228 |  |  | 186 |
| Nine Months Ended September 30, 2022 |  | Nine Months Ended September 30, 2021
| Acquisition Costs |  | Fulfillment Costs |  | Acquisition Costs |  | Fulfillment Costs
| (Dollars in millions) |  | (Dollars in millions)
Beginning of period balance(3) | $ | 222 |  |  | 186 |  |  | 289 |  |  | 216 |
Costs incurred | 129 |  |  | 119 |  |  | 132 |  |  | 112 |
Amortization | (150) |  |  | (113) |  |  | (158) |  |  | (111) |
Change in contract costs held for sale | 6 |  |  | (3) |  |  | (35) |  |  | (31) |
End of period balance(2) | $ | 207 |  |  | 189 |  |  | 228 |  |  | 186 |
______________________________________________________________________ (1)Beginning of period balance for the three months ended September 30, 2022 excludes acquisition costs and fulfillment costs classified as held for sale of $31 million and $33 million, respectively (related to both the Latin American business and the ILEC business). (2)Ending of period balance for the three and nine months ended September 30, 2022 excludes acquisition costs and fulfillment costs classified as held for sale of $28 million and $35 million, respectively, related to the ILEC business. Ending of period balance for the three and nine months ended September 30, 2021 excludes acquisition costs and fulfillment costs classified as held for sale of $35 million and $31 million, respectively (related to both the Latin American business and the ILEC business). (3)Beginning of period balance for the nine months ended September 30, 2022 excludes acquisition costs and fulfillment costs classified as held for sale of $34 million and $32 million, respectively (related to both the Latin American business and the ILEC business).

X
- Definition Tabular disclosure of cost capitalized in obtaining or fulfilling contract with customer. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 340 -SubTopic 40 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=126905575&loc=SL49131252-203054 + Details
Name: | us-gaap_CapitalizedContractCostTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of receivable, contract asset, and contract liability from contract with customer. Includes, but is not limited to, change in contract asset and contract liability. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045 + Details
Name: | us-gaap_ContractWithCustomerAssetAndLiabilityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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 Tabular disclosure of entity-wide revenues from external customers for each product or service or each group of similar products or services if the information is not provided as part of the reportable operating segment information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 + Details
Name: | us-gaap_ScheduleOfEntityWideInformationRevenueFromExternalCustomersByProductsAndServicesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration