Segment Information (Tables)

6 Months Ended

Jun. 30, 2020

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

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)