Segment Information (Tables)

6 Months Ended

Jun. 30, 2019

The following table summarizes our segment results and operating revenue detail for our product and services for the three months ended June 30, 2019.



	Three Months Ended June 30, 2019
	International and Global Accounts		Enterprise	Small and Medium Business	Wholesale	Consumer	Total Segments	Operations and Other		Total
	(Dollars in millions)
Revenue:
IP and Data Services	$	420	681	290	339	—	1,730	—		1,730
Transport and Infrastructure	333		368	106	484	—	1,291	—		1,291
Voice and Collaboration	94		390	328	193	—	1,005	—		1,005
IT and Managed Services	55		66	12	2	—	135	—		135
Broadband	—		—	—	—	718	718	—		718
Voice	—		—	—	—	477	477	—		477
Regulatory	—		—	—	—	158	158	—		158
Other	—		—	—	—	64	64	—		64
Total Revenue	902		1,505	736	1,018	1,417	5,578	—		5,578
Expenses:
Cost of services and products	258		497	147	145	77	1,124	1,322		2,446
Selling, general and administrative	68		143	120	21	110	462	498		960
Less: share-based compensation	—		—	—	—	—	—	(43	)	(43	)
Total expense	326		640	267	166	187	1,586	1,777		3,363
Total adjusted EBITDA	$	576	865	469	852	1,230	3,992	(1,777	)	2,215

The following table summarizes our segment results and operating revenue detail for our product and services for the three months ended June 30, 2018.



	Three Months Ended June 30, 2018
	International and Global Accounts		Enterprise	Small and Medium Business	Wholesale	Consumer	Total Segments	Operations and Other		Total
	(Dollars in millions)
Revenue:
IP and Data Services	$	431	667	299	349	—	1,746	—		1,746
Transport and Infrastructure	309		381	135	539	—	1,364	—		1,364
Voice and Collaboration	94		398	371	226	—	1,089	—		1,089
IT and Managed Services	69		77	14	2	—	162	—		162
Broadband	—		—	—	—	705	705	—		705
Voice	—		—	—	—	546	546	—		546
Regulatory	—		—	—	—	185	185	—		185
Other	—		—	—	—	105	105	—		105
Total Revenue	903		1,523	819	1,116	1,541	5,902	—		5,902
Expenses:
Cost of services and products	263		500	147	167	124	1,201	1,529		2,730
Selling, general and administrative	64		145	136	23	136	504	611		1,115
Less: share-based compensation	—		—	—	—	—	—	(54	)	(54	)
Total expense	327		645	283	190	260	1,705	2,086		3,791
Total adjusted EBITDA	$	576	878	536	926	1,281	4,197	(2,086	)	2,111

The following table summarizes our segment results and operating revenue detail for our product and services for the six months ended June 30, 2019.



	Six Months Ended June 30, 2019
	International and Global Accounts		Enterprise	Small and Medium Business	Wholesale	Consumer	Total Segments	Operations and Other		Total
	(Dollars in millions)
Revenue:
IP and Data Services	$	840	1,369	590	680	—	3,479	—		3,479
Transport and Infrastructure	653		732	213	983	—	2,581	—		2,581
Voice and Collaboration	188		787	664	389	—	2,028	—		2,028
IT and Managed Services	112		140	24	3	—	279	—		279
Broadband	—		—	—	—	1,440	1,440	—		1,440
Voice	—		—	—	—	966	966	—		966
Regulatory	—		—	—	—	317	317	—		317
Other	—		—	—	—	135	135	—		135
Total Revenue	1,793		3,028	1,491	2,055	2,858	11,225	—		11,225
Expenses:
Cost of services and products	517		993	300	286	164	2,260	2,706		4,966
Selling, general and administrative	136		292	252	41	219	940	952		1,892
Less: share-based compensation	—		—	—	—	—	—	(76	)	(76	)
Total expense	653		1,285	552	327	383	3,200	3,582		6,782
Total adjusted EBITDA	$	1,140	1,743	939	1,728	2,475	8,025	(3,582	)	4,443

The following table summarizes our segment results and operating revenue detail for our product and services for the six months ended June 30, 2018.



	Six Months Ended June 30, 2018
	International and Global Accounts		Enterprise	Small and Medium Business	Wholesale	Consumer	Total Segments	Operations and Other		Total
	(Dollars in millions)
Revenue:
IP and Data Services	$	871	1,332	590	688	—	3,481	—		3,481
Transport and Infrastructure	630		780	245	1,077	—	2,732	—		2,732
Voice and Collaboration	195		808	740	457	—	2,200	—		2,200
IT and Managed Services	142		150	28	4	—	324	—		324
Broadband	—		—	—	—	1,417	1,417	—		1,417
Voice	—		—	—	—	1,103	1,103	—		1,103
Regulatory	—		—	—	—	368	368	—		368
Other	—		—	—	—	222	222	—		222
Total Revenue	1,838		3,070	1,603	2,226	3,110	11,847	—		11,847
Expenses:
Cost of services and products	535		1,014	300	343	282	2,474	3,059		5,533
Selling, general and administrative	132		297	263	47	271	1,010	1,214		2,224
Less: share-based compensation	—		—	—	—	—	—	(95	)	(95	)
Total expense	667		1,311	563	390	553	3,484	4,178		7,662
Total adjusted EBITDA	$	1,171	1,759	1,040	1,836	2,557	8,363	(4,178	)	4,185

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

The following table reconciles total segment adjusted EBITDA to net income (loss):



	Three Months Ended June 30,					Six Months Ended June 30,
	2019			2018		2019		2018
	(Dollars in millions)
Total segment adjusted EBITDA	$	3,992		4,197		8,025		8,363
Depreciation and amortization	(1,196		)	(1,290	)	(2,384	)	(2,573	)
Impairment of goodwill	—			—		(6,506	)	—
Other operating expenses	(1,777		)	(2,086	)	(3,582	)	(4,178	)
Stock-based compensation	(43		)	(54	)	(76	)	(95	)
Operating income (loss)	976			767		(4,523	)	1,517
Total other expense, net	(474		)	(530	)	(1,002	)	(1,044	)
Income (loss) before income taxes	502			237		(5,525	)	473
Income tax expense (benefit)	131			(55	)	269		66
Net income (loss)	$	371		292		(5,794	)	407