XML 53 R14.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Revenue Recognition | 12 Months Ended
--- | ---
Dec. 31, 2024
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | Note 4—Revenue Recognition Product and Service Categories We categorize our products and services revenue among the following categories for the Business segment: •Grow, which includes existing and emerging products and services in which we are significantly investing, including our dark fiber and conduit, Edge Cloud, IP, managed security, software-defined wide area networks ("SD WAN"), Unified Communications and Collaboration ("UC&C") and wavelengths services; •Nurture, which includes our more mature offerings, including ethernet and VPN data networks services; •Harvest, which includes our legacy services managed for cash flow, including Time Division Multiplexing voice, and private line services; and •Other, which includes equipment sales, managed and professional service solutions and other services. We categorize our products and services revenue among the following categories for the Mass Markets segment: •Fiber Broadband, under which we provide high speed broadband services to residential and small business customers utilizing our fiber-based network infrastructure; •Other Broadband, under which we provide primarily lower speed broadband services to residential and small business customers utilizing our copper-based network infrastructure; and •Voice and Other, under which we derive revenues from (i) providing local and long-distance voice services, professional services, and other ancillary services, and (ii) federal broadband and state support programs. Reconciliation of Total Revenue to Revenue from Contracts with Customers 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 revenue for the Latin American, ILEC and EMEA businesses prior to their sales on August 1, 2022, October 3, 2022 and November 1, 2023, respectively:
| Year Ended December 31, 2024
| 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 |  |  |  |  |
Large Enterprise |  |  |  |  |
Grow | $ | 1,733 |  |  | (256) |  |  | 1,477 |
Nurture | 1,015 |  |  | — |  |  | 1,015 |
Harvest | 441 |  |  | — |  |  | 441 |
Other | 190 |  |  | (1) |  |  | 189 |
Total Large Enterprise Revenue | 3,379 |  |  | (257) |  |  | 3,122 |
Mid-Market Enterprise |  |  |  |  |
Grow | 841 |  |  | (25) |  |  | 816 |
Nurture | 690 |  |  | — |  |  | 690 |
Harvest | 320 |  |  | (4) |  |  | 316 |
Other | 36 |  |  | (5) |  |  | 31 |
Total Mid-Market Enterprise Revenue | 1,887 |  |  | (34) |  |  | 1,853 |
Public Sector |  |  |  |  |
Grow | 596 |  |  | (85) |  |  | 511 |
Nurture | 355 |  |  | — |  |  | 355 |
Harvest | 389 |  |  | (4) |  |  | 385 |
Other | 509 |  |  | — |  |  | 509 |
Total Public Sector Revenue | 1,849 |  |  | (89) |  |  | 1,760 |
Wholesale |  |  |  |  |
Grow | 1,048 |  |  | (287) |  |  | 761 |
Nurture | 740 |  |  | (19) |  |  | 721 |
Harvest | 1,079 |  |  | (140) |  |  | 939 |
Other | 8 |  |  | — |  |  | 8 |
Total Wholesale Revenue | 2,875 |  |  | (446) |  |  | 2,429 |
International and Other |  |  |  |  |
Grow | 155 |  |  | (4) |  |  | 151 |
Nurture | 161 |  |  | — |  |  | 161 |
Harvest | 42 |  |  | — |  |  | 42 |
Other | 15 |  |  | — |  |  | 15 |
Total International and Other | 373 |  |  | (4) |  |  | 369 |
Business Segment by Product Category |  |  |  |  |
Grow | 4,373 |  |  | (657) |  |  | 3,716 |
Nurture | 2,961 |  |  | (19) |  |  | 2,942 |
Harvest | 2,271 |  |  | (148) |  |  | 2,123 |
Other | 758 |  |  | (6) |  |  | 752 |
Total Business Segment Revenue | 10,363 |  |  | (830) |  |  | 9,533 |
Mass Markets Segment by Product Category |  |  |  |  |
Fiber Broadband | 736 |  |  | (13) |  |  | 723 |
Other Broadband | 1,167 |  |  | (105) |  |  | 1,062 |
Voice and Other | 842 |  |  | (31) |  |  | 811 |
Total Mass Markets Revenue | 2,745 |  |  | (149) |  |  | 2,596 |
Total Revenue | $ | 13,108 |  |  | (979) |  |  | 12,129 |
Timing of revenue |  |  |  |  |
Goods and services transferred at a point in time |  |  |  |  | $ | 136 |
Services performed over time |  |  |  |  | 11,993 |
Total revenue from contracts with customers |  |  |  |  | $ | 12,129 |
| Year Ended December 31, 2023
| 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 |  |  |  |  |
Large Enterprise |  |  |  |  |
Grow | $ | 1,709 |  |  | (179) |  |  | 1,530 |
Nurture | 1,172 |  |  | — |  |  | 1,172 |
Harvest | 537 |  |  | — |  |  | 537 |
Other | 200 |  |  | (5) |  |  | 195 |
Total Large Enterprise Revenue | 3,618 |  |  | (184) |  |  | 3,434 |
Mid-Market Enterprise |  |  |  |  |
Grow | 807 |  |  | (28) |  |  | 779 |
Nurture | 829 |  |  | — |  |  | 829 |
Harvest | 372 |  |  | (4) |  |  | 368 |
Other | 36 |  |  | (4) |  |  | 32 |
Total Mid-Market Enterprise Revenue | 2,044 |  |  | (36) |  |  | 2,008 |
Public Sector |  |  |  |  |
Grow | 473 |  |  | (81) |  |  | 392 |
Nurture | 399 |  |  | — |  |  | 399 |
Harvest | 383 |  |  | (1) |  |  | 382 |
Other | 534 |  |  | — |  |  | 534 |
Total Public Sector Revenue | 1,789 |  |  | (82) |  |  | 1,707 |
Wholesale |  |  |  |  |
Grow | 1,052 |  |  | (251) |  |  | 801 |
Nurture | 827 |  |  | (25) |  |  | 802 |
Harvest | 1,261 |  |  | (165) |  |  | 1,096 |
Other | 12 |  |  | — |  |  | 12 |
Total Wholesale Revenue | 3,152 |  |  | (441) |  |  | 2,711 |
International and Other |  |  |  |  |
Grow | 453 |  |  | (115) |  |  | 338 |
Nurture | 266 |  |  | — |  |  | 266 |
Harvest | 126 |  |  | — |  |  | 126 |
Other | 135 |  |  | — |  |  | 135 |
Total International and Other | 980 |  |  | (115) |  |  | 865 |
Business Segment by Product Category |  |  |  |  |
Grow | 4,494 |  |  | (654) |  |  | 3,840 |
Nurture | 3,493 |  |  | (25) |  |  | 3,468 |
Harvest | 2,679 |  |  | (170) |  |  | 2,509 |
Other | 917 |  |  | (9) |  |  | 908 |
Total Business Segment Revenue | 11,583 |  |  | (858) |  |  | 10,725 |
Mass Markets Segment by Product Category |  |  |  |  |
Fiber Broadband | 637 |  |  | (16) |  |  | 621 |
Other Broadband | 1,395 |  |  | (126) |  |  | 1,269 |
Voice and Other | 942 |  |  | (36) |  |  | 906 |
Total Mass Markets Revenue | 2,974 |  |  | (178) |  |  | 2,796 |
Total Revenue | $ | 14,557 |  |  | (1,036) |  |  | 13,521 |
Timing of revenue |  |  |  |  |
Goods and services transferred at a point in time |  |  |  |  | $ | 178 |
Services performed over time |  |  |  |  | 13,343 |
Total revenue from contracts with customers |  |  |  |  | $ | 13,521 |
| Year Ended December 31, 2022
| 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 |  |  |  |  |
Large Enterprise |  |  |  |  |
Grow | $ | 1,653 |  |  | (199) |  |  | 1,454 |
Nurture | 1,274 |  |  | — |  |  | 1,274 |
Harvest | 690 |  |  | (2) |  |  | 688 |
Other | 210 |  |  | (7) |  |  | 203 |
Total Large Enterprise Revenue | 3,827 |  |  | (208) |  |  | 3,619 |
Mid-Market Enterprise |  |  |  |  |
Grow | 768 |  |  | (32) |  |  | 736 |
Nurture | 949 |  |  | — |  |  | 949 |
Harvest | 494 |  |  | (6) |  |  | 488 |
Other | 31 |  |  | (2) |  |  | 29 |
Total Mid-Market Enterprise Revenue | 2,242 |  |  | (40) |  |  | 2,202 |
Public Sector |  |  |  |  |
Grow | 445 |  |  | (79) |  |  | 366 |
Nurture | 492 |  |  | — |  |  | 492 |
Harvest | 466 |  |  | (3) |  |  | 463 |
Other | 460 |  |  | (2) |  |  | 458 |
Total Public Sector Revenue | 1,863 |  |  | (84) |  |  | 1,779 |
Wholesale |  |  |  |  |
Grow | 991 |  |  | (271) |  |  | 720 |
Nurture | 1,012 |  |  | (23) |  |  | 989 |
Harvest | 1,551 |  |  | (215) |  |  | 1,336 |
Other | 51 |  |  | — |  |  | 51 |
Total Wholesale Revenue | 3,605 |  |  | (509) |  |  | 3,096 |
International and Other |  |  |  |  |
Grow | 761 |  |  | (176) |  |  | 585 |
Nurture | 401 |  |  | — |  |  | 401 |
Harvest | 210 |  |  | — |  |  | 210 |
Other | 190 |  |  | — |  |  | 190 |
Total International and Other | 1,562 |  |  | (176) |  |  | 1,386 |
Business Segment by Product Category |  |  |  |  |
Grow | 4,618 |  |  | (757) |  |  | 3,861 |
Nurture | 4,128 |  |  | (23) |  |  | 4,105 |
Harvest | 3,411 |  |  | (226) |  |  | 3,185 |
Other | 942 |  |  | (11) |  |  | 931 |
Total Business Segment Revenue | 13,099 |  |  | (1,017) |  |  | 12,082 |
Mass Markets Segment by Product Category |  |  |  |  |
Fiber Broadband | 604 |  |  | (18) |  |  | 586 |
Other Broadband | 2,163 |  |  | (200) |  |  | 1,963 |
Voice and Other | 1,612 |  |  | (135) |  |  | 1,477 |
Total Mass Markets Revenue | 4,379 |  |  | (353) |  |  | 4,026 |
Total Revenue | $ | 17,478 |  |  | (1,370) |  |  | 16,108 |
Timing of revenue |  |  |  |  |
Goods and services transferred at a point in time |  |  |  |  | $ | 154 |
Services performed over time |  |  |  |  | 15,954 |
Total revenue from contracts with customers |  |  |  |  | $ | 16,108 |
______________________________________________________________________ (1)Includes regulatory revenue and lease revenue not within the scope of ASC 606. Customer Receivables and Contract Balances The following table provides balances of customer receivables, contract assets and contract liabilities, net of amounts classified as held for sale:
| As of December 31,
| 2024 |  | 2023
| (Dollars in millions)
Customer receivables, less allowance of $50 and $60 | $ | 1,193 |  |  | 1,256 |
Contract assets | 19 |  |  | 29 |
Contract liabilities | 733 |  |  | 698 |
Contract liabilities are consideration we have received from our customers or billed in advance of providing goods or services promised in the future. We defer recognizing this consideration as revenue until we have satisfied the related performance obligation to the customer. Contract liabilities include recurring services billed one month in advance and installation and maintenance charges that are deferred and recognized over the actual or expected contract term, which typically ranges from one to five years depending on the service. Contract liabilities are included within Deferred revenue on our consolidated balance sheets. During the years ended December 31, 2024 and December 31, 2023, we recognized $443 million and $434 million, respectively, of revenue that was included in contract liabilities of $698 million and $715 million as of January 1, 2024 and 2023, respectively, including contract liabilities that were classified as held for sale. Performance Obligations As of December 31, 2024, we expect to recognize approximately $6.4 billion of revenue in the future related to performance obligations associated with existing customer contracts that are partially or wholly unsatisfied. As of December 31, 2024, the transaction price related to unsatisfied performance obligation that are expected to be recognized in 2025, 2026 and thereafter was $2.9 billion, $1.7 billion and $1.8 billion, respectively. These amounts exclude (i) the value of unsatisfied performance obligations for contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed (for example, uncommitted usage or non-recurring charges associated with professional or technical services to be completed) and (ii) contracts that are classified as leasing arrangements or government assistance that are not subject to ASC 606. Contract Costs The following tables provide changes in our contract acquisition costs and fulfillment costs:
| Year Ended December 31, 2024
| Acquisition Costs |  | Fulfillment Costs
| (Dollars in millions)
Beginning of period balance | $ | 182 |  |  | 184 |
Costs incurred | 151 |  |  | 176 |
Amortization | (130) |  |  | (138) |
End of period balance | $ | 203 |  |  | 222 |
| Year Ended December 31, 2023
| Acquisition Costs |  | Fulfillment Costs
| (Dollars in millions)
Beginning of period balance | $ | 202 |  |  | 192 |
Costs incurred | 136 |  |  | 157 |
Amortization | (152) |  |  | (140) |
Classified as held for sale | (4) |  |  | (25) |
End of period balance | $ | 182 |  |  | 184 |
Acquisition costs include commission fees paid to employees as a result of obtaining contracts. Fulfillment costs include third party and internal costs associated with the provision, installation and activation of services to customers, including labor and materials consumed for these activities. We amortize deferred acquisition and fulfillment costs based on the transfer of services on a straight-line basis over the average contract life of approximately 50 months for Mass Markets customers and 35 months for Business customers. We include amortized fulfillment costs in Cost of services and products and amortized acquisition costs in Selling, general and administrative in our consolidated statements of operations. We include the amount of these deferred costs that are anticipated to be amortized in the next 12 months in Other under Current Assets on our consolidated balance sheets. We include the amount of deferred costs expected to be amortized beyond the next 12 months in Other under Deferred Credits and Other Liabilities on our consolidated balance sheets. We assess deferred acquisition and fulfillment costs for impairment on a quarterly basis. Governmental Funding Lumen participates in various U.S. federal and state programs under which government support payments are received to offset costs associated with providing services in targeted locations such as unserved or underserved high-cost or rural areas, or for certain types of customers, including non-profit organizations, educational institutions and local governmental bodies. In certain instances, support payments are conditioned on specified infrastructure buildouts by milestone deadlines or provision of services at specified locations and speed requirements. Commitments may be made annually, on a multi-year basis ranging from one to 10 years or be on-going subject to periodic change or termination. Consistent with customary practice and as referenced in ASC 832 Government Assistance, Lumen applies a grant model of accounting by which it accounts for these transactions as non-ASC 606 revenue over the periods in which the costs for which the funding is intended to compensate are incurred. This non-ASC 606 revenue is included in operating revenue in our consolidated statements of operations. Corresponding receivables are recorded when services have been provided to the customers and costs incurred, but the cash has not been received. These amounts are included in our accounts receivable, less allowance in our consolidated balance sheets. Certain programs are subject to audits of compliance with program commitments and, subject to the outcomes of those assessments, Lumen may be required to reimburse the government entity for cash previously received, or, in some cases, pay a penalty. Lumen evaluates each program and establishes a liability under the principles of ASC 450 if it is probable support payments will be recaptured or a penalty will be imposed. For the years ended December 31, 2024 and 2023, Lumen recorded non-customer revenue of $83 million and $85 million, respectively, under government assistance programs, of which 18% and 17%, respectively, was associated with state universal service fund support programs. Between 2015 and 2021, we received approximately $500 million annually through the Federal Communications Commission (the "FCC")'s Connect America Fund II ("CAF II"), a federal multi-year recurring subsidy program for more extensive broadband deployment in price-cap ILEC territories. For this program, which ended on December 31, 2021, we were required to meet certain specified infrastructure buildout requirements in 33 states by the end of 2021, which required substantial capital expenditures. In the first quarter of 2022, we recognized $59 million of previously deferred revenue related to the conclusion of the CAF II program based upon our final buildout and filing submissions. The government has the right to audit our compliance with the CAF II program and the ultimate outcome of any remaining examinations is unknown, but could result in a liability to us in excess of our accruals established for these matters. In early 2020, the FCC created the Rural Digital Opportunity Fund (the “RDOF”) program, a federal support program designed to fund broadband deployment in rural America. For the first phase of this program, RDOF Phase I, the FCC ultimately awarded $6.4 billion support payments to be paid in equal monthly installments over 10 years. We were awarded RDOF funding in several of the states in which we operate and began receiving monthly support payments during the second quarter of 2022. We received approximately $17 million in annual RDOF Phase I support payments for the years ended December 31, 2023 and 2022. In the third quarter of 2024, we relinquished rights to develop certain RDOF census blocks in four states, which resulted in (i) a reduction of the anticipated RDOF Phase I support payments to approximately $16 million for the year ending December 31, 2024 and $15 million each year thereafter through the program period and (ii) an expectation of payment to the federal government, which we anticipate will be approximately $10 million. Lumen participates in multiple state sponsored programs for broadband deployment in unserved and underserved areas for which the states have state universal service funds sourced from fees levied on telecommunications providers and passed on to consumers. During the years ending December 31, 2024 and 2023, Lumen participated in these types of programs primarily in the states of Nebraska, New Mexico and Minnesota.

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