Segment Information

12 Months Ended

Dec. 31, 2012

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. As a result of the integration of Global Crossing (see Note 2 - Events Associated with the Amalgamation of Global Crossing) and the sale of the coal business during the fourth quarter of 2011, the Company reorganized its management reporting structure in 2012 to reflect the way in which it allocates resources and assesses performance. As a result of these changes, the Company is now comprised of one reportable segment for financial reporting purposes, representing its communications services business. Other business interests, which are not reportable segments, include corporate assets and overhead costs that are not attributable to a specific segment, and the results of discontinued operations which include the coal mining business (see Note 4 - Dispositions). The prior year reportable segment information has been revised to conform with this presentation.

The data presented in the following tables includes information for the years ended December 31, 2012, 2011 and 2010 for all statement of operations and cash flow information presented, and as of December 31, 2012 and 2011 for all balance sheet information presented. Information related to an acquired business is included from the date of acquisition, and information related to dispositions is included through the date of sale as discontinued operations. Revenue and the related expenses are attributed to countries based on where services are provided.

Segment information for the communications services business is summarized as follows:

	Year Ended December 31,
	2012		2011		2010
	(dollars in millions)
Revenue from external customers	$	6,376	$	4,333	$	3,591
Capital expenditures	$	743	$	494	$	435
Depreciation and amortization	$	749	$	805	$	870
Total assets	$	13,307	$	13,188

The following is a summary of geographical information (dollars in millions):

	Year Ended December 31,
	2012		2011		2010
Revenue from external customers:
North America	$	4,803	$	3,669	$	3,275
Europe:
United Kingdom	628		267		131
Germany	79		72		62
Other European Countries	196		163		123
Total Europe	903		502		316
Latin America:
Brazil	267		68		—
Argentina	101		23		—
Colombia	104		23		—
Other Latin American Countries	192		44		—
Total Latin America	664		158		—
Other	6		4		—
	$	6,376	$	4,333	$	3,591
Long-lived assets:
North America	$	5,375	$	5,338
Europe:
United Kingdom	694		613
Germany	346		348
Other European Countries	530		596
Total Europe	1,570		1,557
Latin America:
Brazil	428		434
Argentina	377		387
Colombia	252		247
Other Latin American Countries	473		465
Total Latin America	1,530		1,533
Other	425		512
	$	8,900	$	8,940

The Company includes all non-current assets, except for goodwill, in its long-lived assets.

Total revenue consists of:

1) Core Network Services revenue from colocation and data center services, transport and fiber, IP and data services and voice services.

2) Wholesale Voice Services and Other revenue from long distance voice services, revenue from managed modem and its related intercarrier compensation services and revenue from the "SBC Master Services Agreement", which was obtained through an acquisition in 2005.

The following table provides revenue by service offering (dollars in millions):

	Year Ended December 31,
	2012		2011		2010
Core Network Services	$	5,587	$	3,599	$	2,827
Wholesale Voice Services and Other	789		734		764
	$	6,376	$	4,333	$	3,591

The prior year's revenue by service offering has been revised to conform to the current year's presentation.