Segment Information (Tables)

6 Months Ended

Jun. 30, 2013

Segment Information

Schedule of segment results

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(Dollars in millions)
Total segment revenues	$	4,276		4,346		8,532		8,690
Total segment expenses		2,062		2,063		4,007		4,083
Total segment income	$	2,214		2,283		4,525		4,607
Total margin percentage		51.8%		52.5%		53.0%		53.0%
Consumer:
Revenues	$	1,494		1,540		3,005		3,104
Expenses		551		568		1,077		1,135
Income	$	943		972		1,928		1,969
Margin percentage		63.1%		63.1%		64.2%		63.4%
Business:
Revenues	$	1,525		1,537		3,029		3,045
Expenses		937		943		1,818		1,853
Income	$	588		594		1,211		1,192
Margin percentage		38.6%		38.6%		40.0%		39.1%
Wholesale:
Revenues	$	910		946		1,817		1,908
Expenses		301		313		575		625
Income	$	609		633		1,242		1,283
Margin percentage		66.9%		66.9%		68.4%		67.2%
Data hosting:
Revenues	$	347		323		681		633
Expenses		273		239		537		470
Income	$	74		84		144		163
Margin percentage		21.3%		26.0%		21.1%		25.8%

Schedule of operating revenues by products and services

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(Dollars in millions)
Strategic services	$	2,164		2,078		4,306		4,136
Legacy services		1,945		2,098		3,919		4,239
Data integration		167		170		307		315
Other		249		266		506		532
Total operating revenues	$	4,525		4,612		9,038		9,222

Schedule of reconciliation of segment income to net income

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(Dollars in millions)
Total segment income	$	2,214		2,283		4,525		4,607
Other operating revenues		249		266		506		532
Depreciation and amortization		(1,123)		(1,208)		(2,240)		(2,416)
Other unassigned operating expenses		(625)		(684)		(1,294)		(1,412)
Other income (expense), net		(321)		(534)		(598)		(857)
Income tax expense		(125)		(49)		(332)		(180)
Net income	$	269		74		567		274