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Revenue | 9 Months Ended
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Sep. 30, 2019
Revenue [Abstract] |
Revenue | Note 3. Revenue We enter into yearly service plan agreements with our customers. We have one performance obligation, which is to provide for the repair or replacement of essential home systems and appliances, as applicable per the contract. We recognize revenue at the agreed upon contractual amount over time using the input method in proportion to the costs expected to be incurred in performing services under the contracts. Those costs bear a direct relationship to the fulfillment of our obligations under the contracts and are representative of the relative value provided to the customer. As the costs to fulfill the obligations of the home service plans are incurred on an other-than-straight-line basis, we utilize historical evidence to estimate the expected claims expense and related timing of such costs. This adjustment to the straight-line revenue creates a contract asset or contract liability, as described under the heading “Contract balances” below. We regularly review our estimates of claims costs and adjust the estimates when appropriate. We derive all of our revenue from customers in the United States. We disaggregate revenue from contracts with customers into major customer acquisition channels. We determined that disaggregating revenue into these categories achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Revenue by major customer acquisition channel is as follows: ___
|  | Three Months Ended |  | Nine Months Ended
|  | September 30, |  | September 30,
(In millions) |  | 2019 |  | 2018 |  | 2019 |  | 2018
Renewals |  | $ | 278 |  | $ | 251 |  | $ | 722 |  | $ | 648
Real estate |  |  | 77 |  |  | 78 |  |  | 206 |  |  | 205
Direct-to-consumer |  |  | 50 |  |  | 47 |  |  | 131 |  |  | 122
Other |  |  | 2 |  |  | 1 |  |  | 6 |  |  | 4
Total |  | $ | 407 |  | $ | 377 |  | $ | 1,065 |  | $ | 979
Renewals Revenue from all customer renewals, whether initiated via the real estate or direct-to-consumer channel, are classified as renewals above. Customer payments for renewals are received either at the commencement of the renewal period or in installments over the contract period. Real estate Real estate home service plans are sold through annual contracts in connection with a real estate sale, and payments are typically paid in full at closing. First-year revenue from the real estate channel is classified as real estate above. Direct- to-consumer Direct-to-consumer home service plans are sold through annual contracts when customers request a service plan in response to marketing efforts or when third-party resellers make a sale. Customer payments are received either at the commencement of the contract or in installments over the contract period. First-year revenue from the direct-to-consumer channel is classified as direct-to-consumer above. Costs to obtain a contract with a customer We capitalize the incremental costs of obtaining a contract with a customer, primarily commissions, and recognize the expense using the input method in proportion to the costs expected to be incurred in performing services under the contracts, over the expected customer relationship period. As of September 30, 2019 and December 31, 2018, deferred customer acquisition costs were $18 million and $21 million, respectively. Amortization of these deferred acquisition costs was $6 million for each of the three months ended September 30, 2019 and 2018, and $16 million and $17 million for the nine months ended September 30, 2019 and 2018, respectively. There was no impairment loss in relation to these capitalized costs. Contract balances Timing of revenue recognition may differ from the timing of invoicing to customers. Contracts with customers, including contracts resulting from customer renewals, are generally for a period of one year. We record a receivable related to revenue recognized on services once we have an unconditional right to invoice and receive payment in the future related to the services provided. All accounts receivable are recorded within Receivables, less allowances, in the accompanying condensed consolidated statements of financial position. We invoice our monthly-pay customers on a straight-line basis over the contract term. As a result, a contract asset is created when revenue is recognized on monthly-pay customers before being billed. As of September 30, 2019, a contract asset of $37 million was recorded related to the recognition of monthly-pay customer revenue on an other-than-straight-line basis to match the timing of cost recognition. Deferred revenue represents a contract liability and is recognized when cash payments are received in advance of the performance of services, including when the amounts are refundable. Amounts are recognized as revenue in proportion to the costs expected to be incurred in performing services under our contracts. Deferred revenue was $180 million and $185 million as of September 30, 2019 and December 31, 2018, respectively. Changes in deferred revenue for the nine months ended September 30, 2019 were as follows:
(In millions) |  | Deferred ‎revenue
Balance as of December 31, 2018 |  | $ | 185
Deferral of revenue |  |  | 309
Recognition of deferred revenue |  |  | (314)
Balance as of September 30, 2019 |  | $ | 180
Of the $185 million that was included in the deferred revenue balance as of December 31, 2018, t here was approximately $40 million and $184 million of revenue recognized in the three and nine months ended September 30, 2019, respectively.

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- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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