Segment Information (Tables)

12 Months Ended

Dec. 31, 2019

The following tables summarize our segment results for 2019, 2018 and 2017 based on the segment categorization we were operating under at December 31, 2019.



	Year Ended December 31, 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	$	1,676	2,763	1,184	1,377	—	7,000	—		7,000
Transport and Infrastructure	1,318		1,545	420	1,920	—	5,203	—		5,203
Voice and Collaboration	377		1,567	1,306	771	—	4,021	—		4,021
IT and Managed Services	225		258	46	6	—	535	—		535
Broadband	—		—	—	—	2,876	2,876	—		2,876
Voice	—		—	—	—	1,881	1,881	—		1,881
Regulatory	—		—	—	—	634	634	—		634
Other	—		—	—	—	251	251	—		251
Total Revenue	3,596		6,133	2,956	4,074	5,642	22,401	—		22,401
Expenses:
Cost of services and products	1,044		2,088	606	567	313	4,618	5,459		10,077
Selling, general and administrative	266		555	480	80	415	1,796	1,919		3,715
Less: share-based compensation	—		—	—	—	—	—	(162	)	(162	)
Total expense	1,310		2,643	1,086	647	728	6,414	7,216		13,630
Total adjusted EBITDA	$	2,286	3,490	1,870	3,427	4,914	15,987	(7,216	)	8,771



	Year Ended December 31, 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	$	1,728	2,673	1,178	1,382	—	6,961	—		6,961
Transport and Infrastructure	1,276		1,550	471	2,136	—	5,433	—		5,433
Voice and Collaboration	387		1,607	1,443	872	—	4,309	—		4,309
IT and Managed Services	262		303	52	7	—	624	—		624
Broadband	—		—	—	—	2,822	2,822	—		2,822
Voice	—		—	—	—	2,173	2,173	—		2,173
Regulatory	—		—	—	—	729	729	—		729
Other	—		—	—	—	392	392	—		392
Total Revenue	3,653		6,133	3,144	4,397	6,116	23,443	—		23,443
Expenses:
Cost of services and products	1,056		2,038	614	645	500	4,853	6,009		10,862
Selling, general and administrative	256		573	517	86	511	1,943	2,222		4,165
Less: share-based compensation	—		—	—	—	—	—	(186	)	(186	)
Total expense	1,312		2,611	1,131	731	1,011	6,796	8,045		14,841
Total adjusted EBITDA	$	2,341	3,522	2,013	3,666	5,105	16,647	(8,045	)	8,602



	Year Ended December 31, 2017
	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	$	528	1,515	634	916	—	3,593	1		3,594
Transport and Infrastructure	406		1,116	419	1,530	—	3,471	192		3,663
Voice and Collaboration	176		1,245	1,314	569	—	3,304	—		3,304
IT and Managed Services	272		310	51	11	—	644	—		644
Broadband	—		—	—	—	2,698	2,698	—		2,698
Voice	—		—	—	—	2,531	2,531	—		2,531
Regulatory	—		—	—	—	731	731	—		731
Other	—		—	—	—	491	491	—		491
Total Revenue	1,382		4,186	2,418	3,026	6,451	17,463	193		17,656
Expenses:
Cost of services and products	457		1,365	389	413	620	3,244	4,959		8,203
Selling, general and administrative	104		365	448	47	695	1,659	1,849		3,508
Less: share-based compensation	—		—	—	—	—	—	(111	)	(111	)
Total expense	561		1,730	837	460	1,315	4,903	6,697		11,600
Total adjusted EBITDA	$	821	2,456	1,581	2,566	5,136	12,560	(6,504	)	6,056

Summary of USF surcharges and transaction taxes

The following table provides the amount of USF surcharges and transaction taxes:



	Years Ended December 31,
	2019		2018	2017
	(Dollars in millions)
USF surcharges and transaction taxes	$	1,002	952	601

Schedule of reconciliation from segment income to consolidated net income

The following table reconciles total segment adjusted EBITDA to net (loss) income for the years ended December 31, 2019, 2018 and 2017:



	Years Ended December 31,
	2019			2018		2017
	(Dollars in millions)
Total segment adjusted EBITDA	$	15,987		16,647		12,560
Depreciation and amortization	(4,829		)	(5,120	)	(3,936	)
Goodwill impairment	(6,506		)	(2,726	)	—
Other operating expenses	(7,216		)	(8,045	)	(6,504	)
Share-based compensation	(162		)	(186	)	(111	)
Operating (loss) income	(2,726		)	570		2,009
Total other expense, net	(2,040		)	(2,133	)	(1,469	)
(Loss) income before income taxes	(4,766		)	(1,563	)	540
Income tax expense (benefit)	503			170		(849	)
Net (loss) income	$	(5,269	)	(1,733	)	1,389