Schedule of Segment Results |
The following tables summarize our segment results for the three months ended June 30, 2020 and 2019 based on the segment categorization we were operating under at June 30, 2020. | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2020 | | | | | | | | | 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 | $ | 386 | | 623 | | 263 | | 320 | | — | | 1,592 | | — | | 1,592 | | Transport and Infrastructure | 311 | | 381 | | 91 | | 433 | | — | | 1,216 | | — | | 1,216 | | Voice and Collaboration | 97 | | 371 | | 282 | | 195 | | — | | 945 | | — | | 945 | | IT and Managed Services | 55 | | 58 | | 10 | | — | | — | | 123 | | — | | 123 | | Broadband | — | | — | | — | | — | | 726 | | 726 | | — | | 726 | | Voice | — | | — | | — | | — | | 409 | | 409 | | — | | 409 | | Regulatory | — | | — | | — | | — | | 154 | | 154 | | — | | 154 | | Other | — | | — | | — | | — | | 27 | | 27 | | — | | 27 | | Total revenue | 849 | | 1,433 | | 646 | | 948 | | 1,316 | | 5,192 | | — | | 5,192 | | Expenses: | | | | | | | | | Cost of services and products | 232 | | 463 | | 99 | | 132 | | 42 | | 968 | | 1,264 | | 2,232 | | Selling, general and administrative | 61 | | 135 | | 109 | | 16 | | 119 | | 440 | | 455 | | 895 | | Less: share-based compensation | — | | — | | — | | — | | — | | — | | (20) | | (20) | | Total expense | 293 | | 598 | | 208 | | 148 | | 161 | | 1,408 | | 1,699 | | 3,107 | | Total adjusted EBITDA | $ | 556 | | 835 | | 438 | | 800 | | 1,155 | | 3,784 | | (1,699) | | 2,085 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 | $ | 409 | | 632 | | 271 | | 337 | | — | | 1,649 | | — | | 1,649 | | Transport and Infrastructure | 323 | | 354 | | 94 | | 482 | | — | | 1,253 | | — | | 1,253 | | Voice and Collaboration | 89 | | 358 | | 312 | | 191 | | — | | 950 | | — | | 950 | | IT and Managed Services | 56 | | 65 | | 11 | | 2 | | — | | 134 | | — | | 134 | | Broadband | — | | — | | — | | — | | 718 | | 718 | | — | | 718 | | Voice | — | | — | | — | | — | | 467 | | 467 | | — | | 467 | | Regulatory | — | | — | | — | | — | | 157 | | 157 | | — | | 157 | | Other | — | | — | | — | | — | | 47 | | 47 | | — | | 47 | | Total revenue | 877 | | 1,409 | | 688 | | 1,012 | | 1,389 | | 5,375 | | — | | 5,375 | | Expenses: | | | | | | | | | Cost of services and products | 232 | | 434 | | 102 | | 140 | | 51 | | 959 | | 1,284 | | 2,243 | | Selling, general and administrative | 67 | | 141 | | 115 | | 15 | | 137 | | 475 | | 485 | | 960 | | Less: share-based compensation | — | | — | | — | | — | | — | | — | | (43) | | (43) | | Total expense | 299 | | 575 | | 217 | | 155 | | 188 | | 1,434 | | 1,726 | | 3,160 | | Total adjusted EBITDA | $ | 578 | | 834 | | 471 | | 857 | | 1,201 | | 3,941 | | (1,726) | | 2,215 | |
The following tables summarize our segment results for the six months ended June 30, 2020 and 2019 based on the segment categorization we were operating under at June 30, 2020.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2020 | | | | | | | | | 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 | $ | 786 | | 1,251 | | 532 | | 647 | | — | | 3,216 | | — | | 3,216 | | Transport and Infrastructure | 627 | | 761 | | 180 | | 880 | | — | | 2,448 | | — | | 2,448 | | Voice and Collaboration | 188 | | 727 | | 572 | | 378 | | — | | 1,865 | | — | | 1,865 | | IT and Managed Services | 113 | | 114 | | 20 | | 1 | | — | | 248 | | — | | 248 | | Broadband | — | | — | | — | | — | | 1,448 | | 1,448 | | — | | 1,448 | | Voice | — | | — | | — | | — | | 830 | | 830 | | — | | 830 | | Regulatory | — | | — | | — | | — | | 310 | | 310 | | — | | 310 | | Other | — | | — | | — | | — | | 55 | | 55 | | — | | 55 | | Total revenue | 1,714 | | 2,853 | | 1,304 | | 1,906 | | 2,643 | | 10,420 | | — | | 10,420 | | Expenses: | | | | | | | | | Cost of services and products | 465 | | 910 | | 203 | | 263 | | 84 | | 1,925 | | 2,542 | | 4,467 | | Selling, general and administrative | 126 | | 271 | | 219 | | 33 | | 234 | | 883 | | 865 | | 1,748 | | Less: share-based compensation | — | | — | | — | | — | | — | | — | | (89) | | (89) | | Total expense | 591 | | 1,181 | | 422 | | 296 | | 318 | | 2,808 | | 3,318 | | 6,126 | | Total adjusted EBITDA | $ | 1,123 | | 1,672 | | 882 | | 1,610 | | 2,325 | | 7,612 | | (3,318) | | 4,294 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 | $ | 817 | | 1,270 | | 547 | | 675 | | — | | 3,309 | | — | | 3,309 | | Transport and Infrastructure | 632 | | 701 | | 189 | | 977 | | — | | 2,499 | | — | | 2,499 | | Voice and Collaboration | 178 | | 724 | | 629 | | 386 | | — | | 1,917 | | — | | 1,917 | | IT and Managed Services | 113 | | 139 | | 23 | | 4 | | — | | 279 | | — | | 279 | | Broadband | — | | — | | — | | — | | 1,440 | | 1,440 | | — | | 1,440 | | Voice | — | | — | | — | | — | | 944 | | 944 | | — | | 944 | | Regulatory | — | | — | | — | | — | | 314 | | 314 | | — | | 314 | | Other | — | | — | | — | | — | | 100 | | 100 | | — | | 100 | | Total revenue | 1,740 | | 2,834 | | 1,388 | | 2,042 | | 2,798 | | 10,802 | | — | | 10,802 | | Expenses: | | | | | | | | | Cost of services and products | 463 | | 862 | | 207 | | 274 | | 109 | | 1,915 | | 2,628 | | 4,543 | | Selling, general and administrative | 134 | | 289 | | 239 | | 29 | | 281 | | 972 | | 920 | | 1,892 | | Less: share-based compensation | — | | — | | — | | — | | — | | — | | (76) | | (76) | | Total expense | 597 | | 1,151 | | 446 | | 303 | | 390 | | 2,887 | | 3,472 | | 6,359 | | Total adjusted EBITDA | $ | 1,143 | | 1,683 | | 942 | | 1,739 | | 2,408 | | 7,915 | | (3,472) | | 4,443 | |
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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, | | | | | | | | 2020 | | 2019 | | 2020 | | 2019 | | | | | | (Dollars in millions) | | | | | | | | | | | Total segment adjusted EBITDA | $ | 3,784 | | | 3,941 | | | 7,612 | | | 7,915 | | | | | | Depreciation and amortization | (1,162) | | | (1,196) | | | (2,322) | | | (2,384) | | | | | | Impairment of goodwill | — | | | — | | | — | | | (6,506) | | | | | | Other operating expenses | (1,699) | | | (1,726) | | | (3,318) | | | (3,472) | | | | | | Stock-based compensation | (20) | | | (43) | | | (89) | | | (76) | | | | | | Operating income (loss) | 903 | | | 976 | | | 1,883 | | | (4,523) | | | | | | Total other expense, net | (390) | | | (474) | | | (937) | | | (1,002) | | | | | | Income (loss) before income taxes | 513 | | | 502 | | | 946 | | | (5,525) | | | | | | Income tax expense | 136 | | | 131 | | | 255 | | | 269 | | | | | | Net income (loss) | $ | 377 | | | 371 | | | 691 | | | (5,794) | | | | | |
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