Segment Information (Tables)

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Schedule of segment results

We have restated previously reported segment results for the three and nine months ended September 30, 2012, due to the above-described restructuring of our business. Segment results are summarized below:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2013			2012		2013		2012
	(Dollars in millions)
Total segment revenues	$	4,267		4,314		12,799		13,004
Total segment expenses	2,105			2,071		6,112		6,154
Total segment income	$	2,162		2,243		6,687		6,850
Total margin percentage	50.7		%	52.0	%	52.2	%	52.7	%
Consumer:
Revenues	$	1,503		1,536		4,508		4,640
Expenses	580			585		1,657		1,720
Income	$	923		951		2,851		2,920
Margin percentage	61.4		%	61.9	%	63.2	%	62.9	%
Business:
Revenues	$	1,544		1,541		4,573		4,586
Expenses	958			936		2,776		2,789
Income	$	586		605		1,797		1,797
Margin percentage	38.0		%	39.3	%	39.3	%	39.2	%
Wholesale:
Revenues	$	878		910		2,695		2,818
Expenses	293			304		868		929
Income	$	585		606		1,827		1,889
Margin percentage	66.6		%	66.6	%	67.8	%	67.0	%
Data hosting:
Revenues	$	342		327		1,023		960
Expenses	274			246		811		716
Income	$	68		81		212		244
Margin percentage	19.9		%	24.8	%	20.7	%	25.4	%

Schedule of operating revenues by products and services

Our operating revenues for our products and services consisted of the following categories:

	Three Months Ended September 30,			Nine Months Ended September 30,
	2013		2012	2013	2012
	(Dollars in millions)
Strategic services	$	2,189	2,101	6,495	6,237
Legacy services	1,915		2,045	5,834	6,284
Data integration	163		168	470	483
Other	248		257	754	789
Total operating revenues	$	4,515	4,571	13,553	13,793

Schedule of reconciliation of segment income to net income

The following table reconciles segment income to net (loss) income:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2013			2012		2013		2012
	(Dollars in millions)
Total segment income	$	2,162		2,243		6,687		6,850
Other operating revenues	248			257		754		789
Depreciation and amortization	(1,135		)	(1,144	)	(3,375	)	(3,560	)
Impairment of goodwill (Note 2)	(1,100		)	—		(1,100	)	—
Other unassigned operating expenses	(860		)	(620	)	(2,154	)	(2,032	)
Other income (expense), net	(320		)	(314	)	(918	)	(1,171	)
Income tax expense	(40		)	(152	)	(372	)	(332	)
Net (loss) income	$	(1,045	)	270		(478	)	544