Segment Information (Tables)

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Schedule of segment results

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

	Three Months Ended March 31,
	2016			2015 (1)
	(Dollars in millions)
Total segment revenues	$	4,093		4,194
Total segment expenses	2,051			2,071
Total segment income	$	2,042		2,123
Total margin percentage	50		%	51	%
Business segment:
Revenues	$	2,604		2,697
Expenses	1,427			1,463
Income	$	1,177		1,234
Margin percentage	45		%	46	%
Consumer segment:
Revenues	$	1,489		1,497
Expenses	624			608
Income	$	865		889
Margin percentage	58		%	59	%

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

Schedule of operating revenues by products and services

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

	Three Months Ended March 31,
	2016		2015
	(Dollars in millions)
Strategic services
Business high-bandwidth data services (1)	$	738	687
Business low-bandwidth data services (2)	481		532
Business hosting services (3)	307		318
Other business strategic services (4)	54		45
Consumer high-speed Internet services (5)	667		635
Other consumer strategic services (6)	107		103
Total strategic services revenues	2,354		2,320
Legacy services
Business legacy voice services (7)	622		670
Other business legacy services (8)	287		306
Consumer legacy voice services (7)	634		688
Other consumer legacy services (9)	80		70
Total legacy services revenues	1,623		1,734
Data integration
Business data integration	115		139
Consumer data integration	1		1
Total data integration revenues	116		140
Other revenues
High-cost support revenue (10)	174		134
Other revenue (11)	134		123
Total other revenues	308		257
Total revenues	$	4,401	4,451

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(1)	Includes MPLS and Ethernet revenue
(2)	Includes private line and high-speed Internet revenue
(3)	Includes colocation, hosting (including cloud hosting and managed hosting) and hosting area network revenue
(4)	Includes primarily VoIP, video and IT services revenue
(5)	Includes high-speed Internet and related services revenue
(6)	Includes video and Verizon wireless revenue
(7)	Includes local and long-distance voice revenue
(8)	Includes UNEs, public access, switched access and other ancillary revenue
(9)	Includes other ancillary revenue
(10)	Includes CAF Phase 1, CAF Phase 2 and federal and state USF support revenue
(11)	Includes USF surcharges

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

The following table reconciles segment income to net income:

	Three Months Ended March 31,
	2016			2015
	(Dollars in millions)
Total segment income	$	2,042		2,123
Other operating revenues	308			257
Depreciation and amortization	(976		)	(1,040	)
Other unassigned operating expenses	(680		)	(691	)
Other expense, net	(314		)	(326	)
Income tax expense	(144		)	(131	)
Net income	$	236		192