v3.24.3
Revenue Recognition
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
NOTE 5. REVENUE RECOGNITION

Revenue Categories
The following tables set forth reported revenue by category and by business unit:

For the three months ended September 30, 2024
 Communications 
 MobilityBusiness WirelineConsumer WirelineLatin AmericaCorporate & OtherTotal
Wireless service$16,539 $— $— $645 $— $17,184 
Business service— 4,417 — — — 4,417 
Broadband— — 2,838 — — 2,838 
Legacy voice and data— — 307 — 66 373 
Other— — 271 — 51 322 
Total Service16,539 4,417 3,416 645 117 25,134 
Equipment4,513 189 — 377 — 5,079 
Total$21,052 $4,606 $3,416 $1,022 $117 $30,213 

For the three months ended September 30, 2023
 Communications 
 MobilityBusiness WirelineConsumer WirelineLatin AmericaCorporate & OtherTotal
Wireless service$15,908 $— $— $672 $— $16,580 
Business service— 5,087 — — — 5,087 
Broadband— — 2,667 — — 2,667 
Legacy voice and data— — 368 — 69 437 
Other— — 296 — 45 341 
Total Service15,908 5,087 3,331 672 114 25,112 
Equipment4,784 134 — 320 — 5,238 
Total$20,692 $5,221 $3,331 $992 $114 $30,350 
For the nine months ended September 30, 2024
 Communications 
 MobilityBusiness WirelineConsumer WirelineLatin AmericaCorporate & OtherTotal
Wireless service$48,810 $— $— $2,034 $— $50,844 
Business service— 13,688 — — — 13,688 
Broadband— — 8,301 — — 8,301 
Legacy voice and data— — 972 — 190 1,162 
Other— — 840 — 147 987 
Total Service48,810 13,688 10,113 2,034 337 74,982 
Equipment13,316 586 — 1,154 — 15,056 
Total$62,126 $14,274 $10,113 $3,188 $337 $90,038 
For the nine months ended September 30, 2023
 Communications 
 MobilityBusiness WirelineConsumer WirelineLatin AmericaCorporate & OtherTotal
Wireless service$47,136 $— $— $1,898 $— $49,034 
Business service— 15,401 — — — 15,401 
Broadband— — 7,755 — — 7,755 
Legacy voice and data— — 1,147 — 232 1,379 
Other— — 919 — 91 1,010 
Total Service47,136 15,401 9,821 1,898 323 74,579 
Equipment14,453 430 — 944 — 15,827 
Total$61,589 $15,831 $9,821 $2,842 $323 $90,406 
Deferred Customer Contract Acquisition and Fulfillment Costs
Costs to acquire and fulfill customer contracts, including commissions on service activations for our Mobility, Business Wireline and Consumer Wireline services, are deferred and amortized over the contract period or expected customer relationship life, which typically ranges from three years to five years.
 
The following table presents the deferred customer contract acquisition and fulfillment costs included on our consolidated balance sheets:
 September 30,December 31,
Consolidated Balance Sheets20242023
Deferred Acquisition Costs  
Prepaid and other current assets$3,185 $3,233 
Other Assets4,074 4,077 
Total deferred customer contract acquisition costs$7,259 $7,310 
Deferred Fulfillment Costs
Prepaid and other current assets$2,155 $2,340 
Other Assets3,399 3,843 
Total deferred customer contract fulfillment costs$5,554 $6,183 

The following table presents deferred customer contract acquisition and fulfillment cost amortization, which are primarily included in “Selling, general and administrative” and “Other cost of revenues,” respectively, for the nine months ended:
 September 30,September 30,
Consolidated Statements of Income20242023
Deferred acquisition cost amortization$2,733 $2,568 
Deferred fulfillment cost amortization1,916 2,031 
Contract Assets and Liabilities
A contract asset is recorded when revenue is recognized in advance of our right to bill and receive consideration. The contract asset will decrease as services are provided and billed. For example, when installment sales include promotional discounts (e.g., trade-in device credits) the difference between revenue recognized and consideration received is recorded as a contract asset to be amortized over the contract term.

Our contract assets primarily relate to our wireless businesses. Promotional equipment sales where we offer handset credits, which are allocated between equipment and service in proportion to their standalone selling prices, when customers commit to a
specified service period result in additional contract assets recognized. These contract assets will amortize over the service contract period, resulting in lower future service revenue.

When consideration is received in advance of the delivery of goods or services, a contract liability is recorded. Reductions in the contract liability will be recorded as we satisfy the performance obligations.
 
The following table presents contract assets and liabilities on our consolidated balance sheets:
 September 30,December 31,
Consolidated Balance Sheets20242023
Contract asset$6,426 $6,518 
   Current portion in “Prepaid and other current assets”3,674 3,549 
Contract liability4,219 3,994 
   Current portion in “Advanced billings and customer deposits”3,938 3,666 

Our beginning of period contract liability recorded as customer contract revenue during 2024 was $3,512.
 
Remaining Performance Obligations
Remaining performance obligations represent services we are required to provide to customers under bundled or discounted arrangements, which are satisfied as services are provided over the contract term. In determining the transaction price allocated, we do not include non-recurring charges and estimates for usage, nor do we consider arrangements with an original expected duration of less than one year, which are primarily prepaid wireless and residential internet agreements.
 
Remaining performance obligations associated with business contracts reflect recurring charges billed, adjusted to reflect estimates for sales incentives and revenue adjustments. Performance obligations associated with wireless contracts are estimated using a portfolio approach in which we review all relevant promotional activities, calculating the remaining performance obligation using the average service component for the portfolio and the average device price. As of September 30, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was $38,581, of which we expect to recognize approximately 63% by the end of 2025, with the balance recognized thereafter.