Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

The following tables provide disaggregation of revenue from contracts with customers based on service offering for the three and nine months ended September 30, 2024 and 2023. It also provides the amount of revenue that is not subject to ASC 606, but is instead governed by other accounting standards. The amounts in the tables below include the EMEA business revenue prior to it being sold on November 1, 2023. See Note 2—Divestitures of the Latin American and EMEA Businesses in our Annual Report on Form 10-K for the year ended December 31, 2023 for additional information on these divestitures.


	Three Months Ended September 30, 2024				Three Months Ended September 30, 2023
	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)
Grow	$	943	(164)	779	991	(151)	840
Nurture	376		(3)	373	427	(3)	424
Harvest	191		—	191	239	—	239
Other	20		—	20	49	—	49
Affiliate Services	63		(63)	—	57	(57)	—
Total revenue	$	1,593	(230)	1,363	1,763	(211)	1,552


	Nine Months Ended September 30, 2024				Nine Months Ended September 30, 2023
	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)
Grow	$	2,793	(441)	2,352	2,953	(465)	2,488
Nurture	1,145		(11)	1,134	1,293	(11)	1,282
Harvest	570		—	570	747	—	747
Other	92		—	92	151	—	151
Affiliate Services	183		(183)	—	167	(167)	—
Total revenue	$	4,783	(635)	4,148	5,311	(643)	4,668

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(1) Includes lease revenue which is 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 as of September 30, 2024 and December 31, 2023:


	September 30, 2024		December 31, 2023
	(Dollars in millions)
Customer receivables, less allowance of $12 and $13	$	568	544
Contract assets	7		8
Contract liabilities	250		222

Capitalized contract cost

The following tables provide changes in our contract acquisition costs and fulfillment costs:


	Three Months Ended September 30, 2024			Three Months Ended September 30, 2023
	Acquisition Costs		Fulfillment Costs	Acquisition Costs	Fulfillment Costs
	(Dollars in millions)
Beginning of period balance(1)	$	70	116	69	102
Costs incurred	12		24	12	24
Amortization	(12)		(20)	(14)	(18)
End of period balance(3)	$	70	120	67	108


	Nine Months Ended September 30, 2024			Nine Months Ended September 30, 2023
	Acquisition Costs		Fulfillment Costs	Acquisition Costs	Fulfillment Costs
	(Dollars in millions)
Beginning of period balance(2)	$	70	97	76	106
Costs incurred	36		76	39	68
Amortization	(36)		(53)	(44)	(52)
Change in contract costs held for sale	—		—	(4)	(14)
End of period balance(3)	$	70	120	67	108

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(1)Beginning of period balance for the three months ended September 30, 2023 excludes $10 million of acquisition costs and $14 million of fulfillment costs classified as held for sale related to the EMEA business.

(2)Beginning of period balance for the nine months ended September 30, 2023 excludes $6 million of acquisition costs and no fulfillment costs classified as held for sale related to the EMEA business.

(3)End of period balance for the three and nine months ended September 30, 2023 excludes $10 million of acquisition costs and $14 million fulfillment costs classified as held for sale related to the EMEA business.

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