Segment Information

9 Months Ended

Sep. 30, 2011

Segment Reporting [Abstract]

Segment Information

Segment Information

Accounting guidance for the disclosures about segments of an enterprise defines operating segments as components of an enterprise for which separate financial information is available and which is evaluated regularly by the Company’s chief operating decision maker, or decision making group, in deciding how to allocate resources and assess performance. The Company’s operating segments are managed separately and represent separate strategic business units that offer different products or services and serve different markets. The Company’s reportable segments include: communications and coal mining (see Note 1 — Summary of Significant Accounting Policies). Other business interests, which are not reportable segments, include corporate assets and overhead costs that are not attributable to a specific segment.

The Company evaluates performance based upon Adjusted EBITDA, as defined by the Company, as net income (loss) from the consolidated statements of operations before (1) income tax benefit (expense), (2) total other income (expense), (3) non-cash impairment charges included within restructuring and impairment charges, (4) depreciation and amortization expense and (5) non-cash stock compensation expense included within selling, general and administrative expenses on the consolidated statements of operations.

Segment information for the Company’s Communications and Coal Mining businesses is summarized as follows (in millions):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2011		2010		2011		2010
Revenue from external customers:
Communications	$	927	$	895	$	2,754	$	2,687
Coal Mining	20		17		54		43
	$	947	$	912	$	2,808	$	2,730
Adjusted EBITDA:
Communications	$	236	$	216	$	687	$	627
Coal Mining	$	2	$	2	$	2	$	—

Communications revenue consists of:

1) Core Network Services includes revenue from transport, infrastructure, data, and local and enterprise voice communications services.

2) Wholesale Voice Services includes revenue from long distance voice services, including domestic voice termination, international voice termination and toll free services.

3) Other Communications Services includes revenue from managed modem and its related reciprocal compensation services and SBC Contract Services, which includes revenue from the SBC Master Services Agreement, which was obtained in the December 2005 acquisition of WilTel.

Communications revenue attributable to each of these services is as follows (in millions):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2011		2010		2011		2010
Communications Services:
Core Network Services Revenue	$	759	$	707	$	2,232	$	2,107
Wholesale Voice Services Revenue	152		161		467		489
Other Communications Revenue	16		27		55		91
Total Communications Revenue	$	927	$	895	$	2,754	$	2,687

The following information provides a reconciliation of net loss to Adjusted EBITDA by operating segment, as defined by the Company, for the three and nine months endedSeptember 30, 2011 and 2010 (in millions):

Three Months Ended September 30, 2011	Communications			Coal Mining
Net income (loss)	$	(203	)	$	1
Income tax expense	6			—
Total other expense	204			—
Depreciation and amortization expense	203			1
Non-cash compensation expense	26			—
Adjusted EBITDA	$	236		$	2
Total Net Loss for reportable segments				$	(202	)
Unallocated corporate expense				(5		)
Consolidated Net Loss				$	(207	)

Nine Months Ended September 30, 2011	Communications			Coal Mining
Net loss	$	(582	)	$	(1	)
Income tax expense	36			—
Total other expense	553			—
Depreciation and amortization expense	612			3
Non-cash compensation expense	68			—
Adjusted EBITDA	$	687		$	2
Total Net Loss for reportable segments				$	(583	)
Unallocated corporate expense				(10		)
Consolidated Net Loss				$	(593	)

Three Months Ended September 30, 2010	Communications			Coal Mining
Net income (loss)	$	(163	)	$	1
Income tax expense	1			—
Total other expense	144			—
Depreciation and amortization expense	214			1
Non-cash compensation expense	20			—
Adjusted EBITDA	$	216		$	2
Total Net Loss for reportable segments				$	(162	)
Unallocated corporate income				(1		)
Consolidated Net Loss				$	(163	)

Nine Months Ended September 30, 2010	Communications			Coal Mining
Net loss	$	(565	)	$	(2	)
Income tax expense	2			—
Total other (income) expense	480			(1		)
Depreciation and amortization expense	660			3
Non-cash compensation expense	50			—
Adjusted EBITDA	$	627		$	—
Total Net Loss for reportable segments				$	(567	)
Unallocated corporate expense				(3		)
Consolidated Net Loss				$	(570	)

Due to the Amalgamation with Global Crossing completed on October 4, 2011, the Company may need to modify the manner in which components of the Company are evaluated for performance and resource allocation, which in turn, may affect the Company's reportable operating segments in future periods.