Segment Information (Tables)

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Schedule of segment results

The results of our business and consumer segments are summarized below:

	Three Months Ended June 30,					Six Months Ended June 30,
	2015			2014 (1)		2015		2014 (1)
	(Dollars in millions)
Total segment revenues	$	4,161		4,288		8,355		8,572
Total segment expenses	2,142			2,117		4,215		4,213
Total segment income	$	2,019		2,171		4,140		4,359
Total margin percentage	49		%	51	%	50	%	51	%
Business:
Revenues	2,659			2,788		5,356		5,563
Expenses	1,525			1,516		3,009		3,019
Income	$	1,134		1,272		2,347		2,544
Margin percentage	43		%	46	%	44	%	46	%
Consumer:
Revenues	$	1,502		1,500		2,999		3,009
Expenses	617			601		1,206		1,194
Income	$	885		899		1,793		1,815
Margin percentage	59		%	60	%	60	%	60	%

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⁽¹⁾  Reflects the recasting of segment results discussed in the next section entitled "Recent Changes in Segment Reporting."

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,
	2015		2014	2015	2014
	(Dollars in millions)
Strategic services	$	2,332	2,289	4,652	4,560
Legacy services	1,687		1,812	3,422	3,651
Data integration	142		187	281	361
Other	258		253	515	507
Total operating revenues	$	4,419	4,541	8,870	9,079

Reconciliation of operating profit (loss) from segments to consolidated net income

The following table reconciles segment income to net income:

	Three Months Ended June 30,					Six Months Ended June 30,
	2015			2014		2015		2014
	(Dollars in millions)
Total segment income	$	2,019		2,171		4,140		4,359
Other operating revenues	258			253		515		507
Depreciation and amortization	(1,048		)	(1,093	)	(2,088	)	(2,200	)
Other unassigned operating expenses	(680		)	(676	)	(1,369	)	(1,358	)
Other expense, net	(315		)	(332	)	(641	)	(654	)
Income tax expense	(91		)	(130	)	(222	)	(258	)
Net income	$	143		193		335		396