Segment Information (Tables)

12 Months Ended

Dec. 31, 2018

The following table summarizes our segment results for 2018, 2017 and 2016 based on the segment categorization we were operating under at December 31, 2018.



	Years Ended December 31,
	2018			2017		2016
	(Dollars in millions)
Total segment revenue	$	22,720		16,924		16,766
Total segment expenses	12,269			9,390		9,081
Total segment adjusted EBITDA	$	10,451		7,534		7,685
Total margin percentage	46		%	45	%	46	%
Business segment:
Revenue	$	17,349		11,220		10,704
Expenses	10,076			6,847		6,391
Adjusted EBITDA	$	7,273		4,373		4,313
Margin percentage	42		%	39	%	40	%
Consumer segment:
Revenue	$	5,371		5,704		6,062
Expenses	2,193			2,543		2,690
Adjusted EBITDA	$	3,178		3,161		3,372
Margin percentage	59		%	55	%	56	%

Schedule of operating revenues by products and services

Our operating revenue for our products and services are presented as follows for the years ended December 31, 2018, 2017 and 2016:



	Years Ended December 31,
	2018		2017	2016
	(Dollars in millions)
Business segment
IP and Data Services ⁽¹⁾	$	6,971	3,682	2,957
Transport and Infrastructure ⁽²⁾	5,356		3,569	3,807
Voice and Collaboration ⁽³⁾	4,401		3,317	3,299
IT and Managed Services ⁽⁴⁾	621		652	641
Total business segment revenue	17,349		11,220	10,704

Consumer segment
IP and Data Services ⁽⁵⁾	308		401	461
Transport and Infrastructure ⁽⁶⁾	2,892		2,776	2,776
Voice and Collaboration ⁽³⁾	2,171		2,527	2,825
Total consumer segment revenue	5,371		5,704	6,062

Non-segment revenue
Regulatory Revenue ⁽⁷⁾	723		732	704
Total non-segment revenue	723		732	704

Total revenue	$	23,443	17,656	17,470

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(1)	Includes primarily VPN data network, Ethernet, IP and ancillary revenue.
(2)	Includes primarily broadband, private line (including business data services), colocation and data centers, wavelength and ancillary revenue.
(3)	Includes local, long-distance and other ancillary revenue.
(4)	Includes IT services and managed services revenue.
(5)	Includes retail video revenue (including our facilities-based video revenue).
(6)	Includes primarily broadband and equipment sales and professional services revenue.
(7)	Includes CAF Phase I, CAF Phase II, federal and state USF support revenue, sublease rental income and failed-sale leaseback income.

Schedule of reconciliation from segment income to consolidated net income

The following table reconciles total segment adjusted EBITDA to net (loss) income for the years ended December 31, 2018, 2017 and 2016:



	Years Ended December 31,
	2018			2017		2016
	(Dollars in millions)
Total segment adjusted EBITDA	$	10,451		7,534		7,685
Regulatory Revenue	723			732		704
Depreciation and amortization	(5,120		)	(3,936	)	(3,916	)
Impairment of goodwill	(2,726		)	—		—
Other operating expenses	(2,758		)	(2,321	)	(2,140	)
Total other expenses, net	(2,133		)	(1,469	)	(1,313	)
Income (loss) before income tax expense	(1,563		)	540		1,020
Income tax (expense) benefit	(170		)	849		(394	)
Net (loss) income	$	(1,733	)	1,389		626