Revenue from Contract with Customer [Text Block] | 3. REVENUE Revenue Recognition Policies Revenue Accounted for in Accordance with Accounting Standards Codification 606, Revenue from Contracts with Customers ( ASC 606 ) At contract inception, the Company assesses the goods and services promised to the customer and identifies the performance obligation for each promise to transfer a good or service that is capable of being distinct and is distinct within the context of the contract. The Company considers all performance obligations whether they are explicitly stated in the contract or are implied by customary business practices. Beginning late in the first 2020, 19 not Revenue is not 19 not not not 606. The Company’s broadband and voice revenue includes service, installation and equipment charges. Managed IT revenues include the sale, configuration and installation of equipment and the subsequent provision of ongoing IT services. The Company enters into contracts with its rural health care customers and is subject to various regulatory requirements associated with the provision of these services. Revenues associated with rural health care customers are recognized based on the amount the Company expects to collect as evidenced in its contract with the customer and the Company’s and customer’s agreement with the Federal Communications Commission (“FCC”) as the relevant service is provided. Regulatory access revenue includes (i) special access, which is primarily access to dedicated circuits sold to wholesale customers, substantially all of which is generated from interstate services; and (ii) cellular access, which is the transport of tariffed local network services between switches for cellular companies based on individually negotiated contracts. Regulatory access revenue is recognized as the service is provided to the customer. ALASKA COMMUNICATIONS SYSTEMS GROUP, INC. Notes to Condensed Consolidated Financial Statements (Unaudited, In Thousands Except Per Share Amounts) Revenue Accounted for in Accordance with Other Guidance Deferred revenue capacity liabilities are established for indefeasible rights of use (“IRUs”) on the Company’s network provided to third Disaggregation of Revenue The following tables provide the Company’s revenue disaggregated on the basis of its primary markets, customers, products and services for the three March 31, 2021 2020. Three Months Ended Three Months Ended March 31, 2021 March 31, 2020 Accounted for Under ASC 606 Accounted for Under Other Guidance Total Revenue Accounted for Under ASC 606 Accounted for Under Other Guidance Total Revenue Business and Wholesale Revenue Business broadband $ 15,681 $ - $ 15,681 $ 15,353 $ - $ 15,353 Business voice and other 6,697 - 6,697 6,857 - 6,857 Managed IT services 1,217 - 1,217 1,227 - 1,227 Equipment sales and installations 2,618 - 2,618 1,414 - 1,414 Wholesale broadband 10,818 - 10,818 10,253 - 10,253 Wholesale voice and other 1,121 - 1,121 1,288 - 1,288 Operating leases and other deferred revenue - 2,819 2,819 - 2,391 2,391 Total Business and Wholesale Revenue 38,152 2,819 40,971 36,392 2,391 38,783 Consumer Revenue Broadband 6,945 - 6,945 6,692 - 6,692 Voice and other 2,230 - 2,230 2,449 - 2,449 Total Consumer Revenue 9,175 - 9,175 9,141 - 9,141 Regulatory Revenue Access (1) 4,926 - 4,926 4,691 - 4,691 Access (2) - 673 673 - 727 727 High-cost support - 4,923 4,923 - 4,924 4,924 Total Regulatory Revenue 4,926 5,596 10,522 4,691 5,651 10,342 Total Revenue $ 52,253 $ 8,415 $ 60,668 $ 50,224 $ 8,042 $ 58,266 ( 1 Includes customer ordered service and special access. ( 2 Includes Essential Network Support (“ENS”). Business broadband revenue includes revenue associated with rural health care customers. Consumer voice and other revenue includes revenue associated with the FCC’s Lifeline program. ALASKA COMMUNICATIONS SYSTEMS GROUP, INC. Notes to Condensed Consolidated Financial Statements (Unaudited, In Thousands Except Per Share Amounts) Timing of Revenue Recognition Revenue accounted for in accordance with ASC 606 three March 31, 2021 2020. Three Months Ended March 31, 2021 2020 Services transferred over time $ 44,709 $ 44,119 Goods transferred at a point in time 2,618 1,414 Regulatory access revenue (1) 4,926 4,691 Total revenue $ 52,253 $ 50,224 ( 1 Includes customer ordered service and special access. Transaction Price Allocated to Remaining Performance Obligations The aggregate amount of the transaction price allocated to the remaining performance obligations for contracts with customers that are unsatisfied, or partially unsatisfied, accounted for in accordance with ASC 606 March 31, 2021. twelve one ten not Contract Assets and Liabilities The Company incurs certain incremental costs to obtain contracts that it expects to recover. These costs consist primarily of sales commissions and other directly related incentive compensation payments (reported as contract additions in the table below) which are dependent upon, and paid upon, successfully entering into individual customer contracts. The table below provides a reconciliation of the contract assets associated with contracts with customers accounted for in accordance with ASC 606 three March 31, 2021. not three March 31, 2021. 2021 Balance at January 1 $ 6,568 Contract additions 732 Amortization (862 ) Balance at March 31 $ 6,438 The Company recorded a charge for uncollectible accounts receivable of $396 in the three March 31, 2021 4 Accounts Receivable ALASKA COMMUNICATIONS SYSTEMS GROUP, INC. Notes to Condensed Consolidated Financial Statements (Unaudited, In Thousands Except Per Share Amounts) The table below provides a reconciliation of the contract liabilities associated with contracts with customers accounted for in accordance with ASC 606 three March 31, 2021. 2021 Balance at January 1 $ 3,971 Contract additions 1,082 Revenue recognized (505 ) Balance at March 31 $ 4,548 |