Segment Information (Tables)

6 Months Ended

Jun. 30, 2012

Segment Information

Schedule of segment information

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
	(Dollars in millions)
Total segment revenues	$	4,346		4,158		8,690		5,723
Total segment expenses		2,024		1,821		4,002		2,385
Total segment income	$	2,322		2,337		4,688		3,338
Total margin percentage		53%		56%		54%		58%
Regional markets:
Revenues	$	2,477		2,540		4,963		3,677
Expenses		1,048		1,043		2,079		1,500
Income	$	1,429		1,497		2,884		2,177
Margin percentage		58%		59%		58%		59%
Wholesale markets:
Revenues	$	944		980		1,905		1,362
Expenses		286		304		573		401
Income	$	658		676		1,332		961
Margin percentage		70%		69%		70%		71%
Enterprise markets—network:
Revenues	$	648		630		1,280		676
Expenses		479		472		936		482
Income	$	169		158		344		194
Margin percentage		26%		25%		27%		29%
Enterprise markets—data hosting:
Revenues	$	277		8		542		8
Expenses		211		2		414		2
Income	$	66		6		128		6
Margin percentage		24%		75%		24%		75%

Schedule of operating revenues by products and services

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
	(Dollars in millions)
Strategic services	$	2,076		1,726		4,132		2,265
Legacy services		2,100		2,280		4,243		3,275
Data integration		170		152		315		183
Other		266		248		532		379
Total operating revenues	$	4,612		4,406		9,222		6,102

Schedule of reconciliation from segment income to consolidated net income

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
	(Dollars in millions)
Total segment income	$	2,322		2,337		4,688		3,338
Other operating revenues		266		248		532		379
Depreciation and amortization		(1,208)		(1,177)		(2,416)		(1,546)
Other unassigned operating expenses		(723)		(928)		(1,493)		(1,227)
Other income (expense)		(534)		(294)		(857)		(419)
Income tax expense		(49)		(71)		(180)		(199)
Net income	$	74		115		274		326