Segment Information (Tables)

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Schedule of Segment Results

The following tables summarize our segment results for the three months ended September 30, 2021 and 2020, based on the segment categorization we were operating under at September 30, 2021.

	Three Months Ended September 30, 2021
	Business		Mass Markets	Total Segments	Operations and Other	Total
	(Dollars in millions)
Revenue	$	3,508	1,379	4,887	—	4,887
Expenses:
Cost of services and products	868		36	904	1,247	2,151
Selling, general and administrative	296		125	421	233	654
Less: share-based compensation	—		—	—	(27)	(27)
Total expense	1,164		161	1,325	1,453	2,778
Total adjusted EBITDA	$	2,344	1,218	3,562	(1,453)	2,109

	Three Months Ended September 30, 2020
	Business		Mass Markets	Total Segments	Operations and Other	Total
	(Dollars in millions)
Revenue	$	3,698	1,469	5,167	—	5,167
Expenses:
Cost of services and products	912		55	967	1,269	2,236
Selling, general and administrative	299		148	447	403	850
Less: share-based compensation	—		—	—	(31)	(31)
Total expense	1,211		203	1,414	1,641	3,055
Total adjusted EBITDA	$	2,487	1,266	3,753	(1,641)	2,112

The following tables summarize our segment results for the nine months ended September 30, 2021 and 2020, based on the segment categorization we were operating under at September 30, 2021.

	Nine Months Ended September 30, 2021
	Business		Mass Markets	Total Segments	Operations and Other	Total
	(Dollars in millions)
Revenue	$	10,625	4,215	14,840	—	14,840
Expenses:
Cost of services and products	2,611		118	2,729	3,673	6,402
Selling, general and administrative	900		408	1,308	864	2,172
Less: share-based compensation	—		—	—	(89)	(89)
Total expense	3,511		526	4,037	4,448	8,485
Total adjusted EBITDA	$	7,114	3,689	10,803	(4,448)	6,355

	Nine Months Ended September 30, 2020
	Business		Mass Markets	Total Segments	Operations and Other	Total
	(Dollars in millions)
Revenue	$	11,152	4,435	15,587	—	15,587
Expenses:
Cost of services and products	2,738		152	2,890	3,813	6,703
Selling, general and administrative	975		432	1,407	1,191	2,598
Less: share-based compensation	—		—	—	(120)	(120)
Total expense	3,713		584	4,297	4,884	9,181
Total adjusted EBITDA	$	7,439	3,851	11,290	(4,884)	6,406

Reconciliation of Operating Profit (Loss) From Segments to Consolidated Net Income

The following table reconciles total segment adjusted EBITDA to net income:

	Three Months Ended September 30,			Nine Months Ended September 30,
	2021		2020	2021	2020
	(Dollars in millions)			(Dollars in millions)
Total segment adjusted EBITDA	$	3,562	3,753	10,803	11,290
Depreciation and amortization	(951)		(1,193)	(3,142)	(3,515)
Other operating expenses	(1,453)		(1,641)	(4,448)	(4,884)
Stock-based compensation	(27)		(31)	(89)	(120)
Operating income	1,131		888	3,124	2,771
Total other expense, net	(415)		(408)	(1,102)	(1,345)
Income before income taxes	716		480	2,022	1,426
Income tax expense	172		114	497	369
Net income	$	544	366	1,525	1,057