Segment Information (Tables)

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Schedule of segment results

Our segment results are summarized below:

	Three Months Ended June 30,					Six Months Ended June 30,
	2014			2013		2014		2013
	(Dollars in millions)
Total segment revenues	$	4,288		4,276		8,572		8,532
Total segment expenses	2,118			2,041		4,217		3,969
Total segment income	$	2,170		2,235		4,355		4,563
Total margin percentage	51		%	52	%	51	%	53	%
Consumer:
Revenues	$	1,500		1,494		3,009		3,005
Expenses	599			574		1,182		1,123
Income	$	901		920		1,827		1,882
Margin percentage	60		%	62	%	61	%	63	%
Business:
Revenues	$	1,564		1,525		3,123		3,030
Expenses	972			912		1,938		1,769
Income	$	592		613		1,185		1,261
Margin percentage	38		%	40	%	38	%	42	%
Wholesale:
Revenues	$	866		910		1,728		1,816
Expenses	283			301		559		575
Income	$	583		609		1,169		1,241
Margin percentage	67		%	67	%	68	%	68	%
Hosting:
Revenues	$	358		347		712		681
Expenses	264			254		538		502
Income	$	94		93		174		179
Margin percentage	26		%	27	%	24	%	26	%

Schedule of operating revenues by products and services

Our operating revenues for our products and services consisted of the following categories:

	Three Months Ended June 30,			Six Months Ended June 30,
	2014		2013	2014	2013
	(Dollars in millions)
Strategic services	$	2,298	2,186	4,579	4,350
Legacy services	1,803		1,923	3,632	3,875
Data integration	187		167	361	307
Other	253		249	507	506
Total operating revenues	$	4,541	4,525	9,079	9,038

Schedule of reconciliation of segment income to net income

The following table reconciles segment income to net income:

	Three Months Ended June 30,					Six Months Ended June 30,
	2014			2013		2014		2013
	(Dollars in millions)
Total segment income	$	2,170		2,235		4,355		4,563
Other operating revenues	253			249		507		506
Depreciation and amortization	(1,093		)	(1,123	)	(2,200	)	(2,240	)
Other unassigned operating expenses	(675		)	(646	)	(1,354	)	(1,332	)
Other income (expense), net	(332		)	(321	)	(654	)	(598	)
Income tax expense	(130		)	(125	)	(258	)	(332	)
Net income	$	193		269		396		567