Segment Information (Tables)

9 Months Ended

Sep. 30, 2023

The following tables summarize our segment results for the three and nine months ended September 30, 2023 and 2022, based on the segment categorization we were operating under at September 30, 2023.


	Three Months Ended September 30, 2023			Nine Months Ended September 30, 2023
	Business		Mass Markets	Business	Mass Markets
	(Dollars in millions)
Segment revenue	$	2,894	747	8,747	2,293
Segment expenses:
Cost of services and products	796		22	2,343	71
Selling, general and administrative	324		356	916	1,010


Total segment expense	1,120		378	3,259	1,081
Total segment adjusted EBITDA	$	1,774	369	5,488	1,212


	Three Months Ended September 30, 2022			Nine Months Ended September 30, 2022
	Business		Mass Markets	Business	Mass Markets
	(Dollars in millions)
Segment revenue	$	3,218	1,172	10,036	3,642
Segment expenses:
Cost of services and products	792		25	2,449	90
Selling, general and administrative	293		470	928	1,283

Total segment expense	1,085		495	3,377	1,373
Total segment adjusted EBITDA	$	2,133	677	6,659	2,269

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

The following table reconciles total segment adjusted EBITDA to net (loss) income for the three and nine months ended September 30, 2023 and 2022:


	Three Months Ended September 30,			Nine Months Ended September 30,
	2023		2022	2023	2022
	(Dollars in millions)
Total segment adjusted EBITDA	$	2,143	2,810	6,700	8,928
Depreciation and amortization	(755)		(808)	(2,234)	(2,443)
Goodwill impairment	—		—	(8,793)	—
Other unallocated expense	(1,149)		(595)	(3,442)	(3,035)
Stock-based compensation	(16)		(23)	(39)	(71)
Operating income (loss)	223		1,384	(7,808)	3,379
Total other expense, net	(308)		(447)	(287)	(1,188)
(Loss) income before income taxes	(85)		937	(8,095)	2,191
Income tax (benefit) expense	(7)		359	208	670
Net (loss) income	$	(78)	578	(8,303)	1,521