Segment Information (Tables)

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Schedule of Segment Results

The following tables summarize our segment results for the three and nine months ended September 30, 2022 and 2021, based on the segment categorization we were operating under at September 30, 2022.

	Three Months Ended September 30, 2022
	Business		Mass Markets	Total Segments	Operations and Other	Total
	(Dollars in millions)
Revenue	$	3,217	1,173	4,390	—	4,390
Expenses:
Cost of services and products	792		25	817	1,182	1,999
Selling, general and administrative	263		169	432	360	792
Gain on sale of business	—		—	—	(593)	(593)
Less: stock-based compensation	—		—	—	(23)	(23)
Total expense	1,055		194	1,249	926	2,175
Total adjusted EBITDA	$	2,162	979	3,141	(926)	2,215

	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	867		36	903	1,248	2,151
Selling, general and administrative	293		128	421	233	654
Less: stock-based compensation	—		—	—	(27)	(27)
Total expense	1,160		164	1,324	1,454	2,778
Total adjusted EBITDA	$	2,348	1,215	3,563	(1,454)	2,109

	Nine Months Ended September 30, 2022
	Business		Mass Markets	Total Segments	Operations and Other	Total
	(Dollars in millions)
Revenue	$	10,034	3,644	13,678	—	13,678
Expenses:
Cost of services and products	2,452		91	2,543	3,499	6,042
Selling, general and administrative	845		439	1,284	1,123	2,407
Gain on sale of business	—		—	—	(593)	(593)
Less: stock-based compensation	—		—	—	(71)	(71)
Total expense	3,297		530	3,827	3,958	7,785
Total adjusted EBITDA	$	6,737	3,114	9,851	(3,958)	5,893

	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	2,614		119	2,733	3,669	6,402
Selling, general and administrative	892		415	1,307	865	2,172
Less: stock-based compensation	—		—	—	(89)	(89)
Total expense	3,506		534	4,040	4,445	8,485
Total adjusted EBITDA	$	7,119	3,681	10,800	(4,445)	6,355

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

The following table reconciles total segment adjusted EBITDA to net income for the three and nine months ended September 30, 2022 and 2021:

	Three Months Ended September 30,			Nine Months Ended September 30,
	2022		2021	2022	2021
	(Dollars in millions)
Total segment adjusted EBITDA	$	3,141	3,563	9,851	10,800
Operations and other expenses	(926)		(1,454)	(3,958)	(4,445)
Depreciation and amortization	(808)		(951)	(2,443)	(3,142)
Stock-based compensation	(23)		(27)	(71)	(89)
Operating income	1,384		1,131	3,379	3,124
Total other expense, net	(447)		(415)	(1,188)	(1,102)
Income before income taxes	937		716	2,191	2,022
Income tax expense	359		172	670	497
Net income	$	578	544	1,521	1,525