Segment Information (Tables)

12 Months Ended

Dec. 31, 2012

Segment information

Schedule of segment information

	Years Ended December 31,
	2012		2011
	(Dollars in millions)
Total segment revenues	$	17,320		14,471
Total segment expenses		8,094		6,513
Total segment income	$	9,226		7,958
Total margin percentage		53%		55%
Regional markets:
Revenues	$	9,876		8,743
Expenses		4,218		3,673
Income	$	5,658		5,070
Margin percentage		57%		58%
Wholesale markets:
Revenues	$	3,721		3,305
Expenses		1,117		1,021
Income	$	2,604		2,284
Margin percentage		70%		69%
Enterprise markets—network:
Revenues	$	2,609		1,933
Expenses		1,891		1,450
Income	$	718		483
Margin percentage		28%		25%
Enterprise markets—data hosting:
Revenues	$	1,114		490
Expenses		868		369
Income	$	246		121
Margin percentage		22%		25%

Schedule of operating revenues by products and services

	Years Ended December 31,
	2012		2011
	(Dollars in millions)
Strategic services	$	8,361		6,262
Legacy services		8,287		7,672
Data integration		672		537
Other		1,056		880
Total operating revenues	$	18,376		15,351

Schedule of reconciliation from segment income to consolidated net income

	Years Ended December 31,
	2012			2011			2010
	(Dollars in millions)
Total segment income	$	9,226			7,958			4,092
Other operating revenues		1,056			880			547
Depreciation and amortization		(4,780	)		(4,026	)		(1,434	)
Other unassigned operating expenses		(2,789	)		(2,787	)		(1,145	)
Other income (expense), net		(1,463	)		(1,077	)		(529	)
Income tax expense		(473	)		(375	)		(583	)
Net income	$	777			573			948

Preliminary

Segment information

Schedule of segment information

	Years Ended December 31,
	2011		2010
	(Dollars in millions)
Total segment revenues	$	14,471		6,495
Total segment expenses		6,535		2,403
Total segment income	$	7,936		4,092
Total margin percentage		55%		63%
Regional markets:
Revenues	$	7,832		4,640
Expenses		3,398		1,783
Income	$	4,434		2,857
Margin percentage		57%		62%
Business markets:
Revenues	$	2,861		266
Expenses		1,736		120
Income	$	1,125		146
Margin percentage		39%		55%
Wholesale markets:
Revenues	$	3,295		1,589
Expenses		1,021		500
Income	$	2,274		1,089
Margin percentage		69%		69%
Savvis operations:
Revenues	$	483		—
Expenses		380		—
Income	$	103		—
Margin percentage		21%		—

Schedule of operating revenues by products and services

	Years Ended December 31,
	2011		2010
	(Dollars in millions)
Strategic services	$	6,254		2,049
Legacy services		7,680		4,288
Data integration		537		158
Other		880		547
Total operating revenues	$	15,351		7,042