Segment Information (Tables)

9 Months Ended

Sep. 30, 2012

Segment Information

Schedule of segment information

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
	(Dollars in millions)
Total segment revenues	$	4,314		4,349		13,004		10,072
Total segment expenses		2,037		2,043		6,039		4,428
Total segment income	$	2,277		2,306		6,965		5,644
Total margin percentage		53%		53%		54%		56%
Regional markets:
Revenues	$	2,468		2,522		7,431		6,199
Expenses		1,079		1,092		3,158		2,592
Income	$	1,389		1,430		4,273		3,607
Margin percentage		56%		57%		58%		58%
Wholesale markets:
Revenues	$	908		982		2,813		2,344
Expenses		273		307		846		708
Income	$	635		675		1,967		1,636
Margin percentage		70%		69%		70%		70%
Enterprise markets—network:
Revenues	$	658		622		1,938		1,298
Expenses		466		479		1,402		961
Income	$	192		143		536		337
Margin percentage		29%		23%		28%		26%
Enterprise markets—data hosting:
Revenues	$	280		223		822		231
Expenses		219		165		633		167
Income	$	61		58		189		64
Margin percentage		22%		26%		23%		28%

Schedule of operating revenues by products and services

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
	(Dollars in millions)
Strategic services	$	2,101		1,960		6,237		4,229
Legacy services		2,045		2,223		6,284		5,494
Data integration		168		166		483		349
Other		257		247		789		626
Total operating revenues	$	4,571		4,596		13,793		10,698

Schedule of reconciliation from segment income to consolidated net income

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
	(Dollars in millions)
Total segment income	$	2,277		2,306		6,965		5,644
Other operating revenues		257		247		789		626
Depreciation and amortization		(1,144)		(1,228)		(3,560)		(2,774)
Other unassigned operating expenses		(654)		(777)		(2,147)		(2,004)
Other income (expense)		(314)		(317)		(1,171)		(736)
Income tax expense		(152)		(93)		(332)		(292)
Net income	$	270		138		544		464