Segment Information (Tables)

3 Months Ended

Mar. 31, 2020

The following tables summarize our segment results for the three months ended March 31, 2020 and 2019 based on the segment categorization we were operating under at March 31, 2020.



	Three Months Ended March 31, 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	$	400	628	269	327	—	1,624	—		1,624
Transport and Infrastructure	316		380	89	447	—	1,232	—		1,232
Voice and Collaboration	91		356	290	183	—	920	—		920
IT and Managed Services	58		56	10	1	—	125	—		125
Broadband	—		—	—	—	722	722	—		722
Voice	—		—	—	—	421	421	—		421
Regulatory	—		—	—	—	156	156	—		156
Other	—		—	—	—	28	28	—		28
Total revenue	865		1,420	658	958	1,327	5,228	—		5,228
Expenses:
Cost of services and products	233		447	104	131	42	957	1,278		2,235
Selling, general and administrative	65		136	110	17	115	443	410		853
Less: share-based compensation	—		—	—	—	—	—	(69	)	(69	)
Total expense	298		583	214	148	157	1,400	1,619		3,019
Total adjusted EBITDA	$	567	837	444	810	1,170	3,828	(1,619	)	2,209



	Three Months Ended March 31, 2019
	International and Global Accounts		Enterprise	Small and Medium Business	Wholesale	Consumer	Total Segments	Operations and Other		Total
	(Dollars in millions)
Revenue⁽¹⁾:
IP and Data Services	$	408	638	276	338	—	1,660	—		1,660
Transport and Infrastructure	309		347	95	495	—	1,246	—		1,246
Voice and Collaboration	89		366	317	195	—	967	—		967
IT and Managed Services	57		74	12	2	—	145	—		145
Broadband	—		—	—	—	722	722	—		722
Voice	—		—	—	—	477	477	—		477
Regulatory	—		—	—	—	157	157	—		157
Other	—		—	—	—	53	53	—		53
Total revenue	863		1,425	700	1,030	1,409	5,427	—		5,427
Expenses:
Cost of services and products⁽¹⁾	231		428	105	134	58	956	1,344		2,300
Selling, general and administrative ⁽¹⁾	67		148	124	14	144	497	435		932
Less: share-based compensation	—		—	—	—	—	—	(33	)	(33	)
Total expense ⁽¹⁾	298		576	229	148	202	1,453	1,746		3,199
Total adjusted EBITDA ⁽¹⁾	$	565	849	471	882	1,207	3,974	(1,746	)	2,228

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⁽¹⁾ Reclassifications were made within certain 2019 comparative figures due to the retrospective application of an accounting policy election during the first quarter of 2020, in addition to customer and cost assignment reporting changes. Refer to Note 1 - Background and our Form 8-K filing dated April 30, 2020 for further information.

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 March 31,
	2020			2019
	(Dollars in millions)
Total segment adjusted EBITDA ⁽¹⁾	$	3,828		3,974
Depreciation and amortization	(1,160		)	(1,188	)
Impairment of goodwill	—			(6,506	)
Other operating expenses ⁽¹⁾	(1,619		)	(1,746	)
Stock-based compensation	(69		)	(33	)
Operating income (loss)	980			(5,499	)
Total other expense, net	(547		)	(528	)
Income (loss) before income taxes	433			(6,027	)
Income tax expense	119			138
Net income (loss)	$	314		(6,165	)

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