v3.25.2
Revenue Recognition
 6 Months Ended
Jun. 30, 2025
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 June 30, 2025
 Communications 
 MobilityBusiness WirelineConsumer WirelineLatin AmericaCorporate & OtherTotal
Wireless$16,853 $— $— $662 $— $17,515 
Fiber and advanced connectivity1
— 1,793 2,136 — — 3,929 
Non-fiber consumer broadband— — 892 — — 892 
Legacy and other transitional— 2,349 265 — 45 2,659 
Other— — 248 — 49 297 
Total Service16,853 4,142 3,541 662 94 25,292 
Equipment4,992 171 — 392 — 5,555 
Total$21,845 $4,313 $3,541 $1,054 $94 $30,847 
1Advanced connectivity services reported in Business Wireline.

For the three months ended June 30, 2024
 Communications 
 MobilityBusiness WirelineConsumer WirelineLatin AmericaCorporate & OtherTotal
Wireless$16,277 $— $— $699 $— $16,976 
Fiber and advanced connectivity1
— 1,732 1,796 — — 3,528 
Non-fiber consumer broadband— — 945 — — 945 
Legacy and other transitional— 2,839 323 — 62 3,224 
Other— — 283 — 50 333 
Total Service16,277 4,571 3,347 699 112 25,006 
Equipment4,203 184 — 404 — 4,791 
Total$20,480 $4,755 $3,347 $1,103 $112 $29,797 
1Advanced connectivity services reported in Business Wireline.
For the six months ended June 30, 2025
 Communications 
 MobilityBusiness WirelineConsumer WirelineLatin AmericaCorporate & OtherTotal
Wireless$33,504 $— $— $1,277 $— $34,781 
Fiber and advanced connectivity1
— 3,573 4,202 — — 7,775 
Non-fiber consumer broadband— — 1,810 — — 1,810 
Legacy and other transitional— 4,824 551 — 91 5,466 
Other— — 500 — 98 598 
Total Service33,504 8,397 7,063 1,277 189 50,430 
Equipment9,911 384 — 748 — 11,043 
Total$43,415 $8,781 $7,063 $2,025 $189 $61,473 
1Advanced connectivity services reported in Business Wireline.
For the six months ended June 30, 2024
 Communications 
 MobilityBusiness WirelineConsumer WirelineLatin AmericaCorporate & OtherTotal
Wireless$32,271 $— $— $1,389 $— $33,660 
Fiber and advanced connectivity1
— 3,435 3,532 — — 6,967 
Non-fiber consumer broadband— — 1,931 — — 1,931 
Legacy and other transitional— 5,836 665 — 124 6,625 
Other— — 569 — 96 665 
Total Service32,271 9,271 6,697 1,389 220 49,848 
Equipment8,803 397 — 777 — 9,977 
Total$41,074 $9,668 $6,697 $2,166 $220 $59,825 
1Advanced connectivity services reported in Business Wireline.
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:
 June 30,December 31,
Consolidated Balance Sheets20252024
Deferred Acquisition Costs  
Prepaid and other current assets$3,310 $3,239 
Other Assets4,413 4,177 
Total deferred customer contract acquisition costs$7,723 $7,416 
Deferred Fulfillment Costs
Prepaid and other current assets$1,975 $2,101 
Other Assets3,065 3,289 
Total deferred customer contract fulfillment costs$5,040 $5,390 

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 six months ended:
 June 30,June 30,
Consolidated Statements of Income20252024
Deferred acquisition cost amortization$1,854 $1,808 
Deferred fulfillment cost amortization1,171 1,294 
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:
 June 30,December 31,
Consolidated Balance Sheets20252024
Contract asset$7,198 $6,855 
Current portion in “Prepaid and other current assets”
4,009 3,845 
Contract liability4,291 4,272 
Current portion in “Advanced billings and customer deposits”
3,872 3,981 

Our beginning of period contract liability recorded as customer contract revenue during 2025 was $3,515.
 
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 June 30, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $42,008, of which we expect to recognize approximately 74% by the end of 2026, with the balance recognized thereafter.