Products and Services Revenues

9 Months Ended

Dec. 31, 2011

Products and Services Revenues

Products and Services Revenues

(10) Products and Services Revenues

        We are an integrated communications company engaged primarily in providing an array of communications services in 14 states, including local, network access, broadband, data and video services. We strive to maintain our customer relationships by, among other things, bundling our service offerings to provide our customers with a complete offering of integrated communications services. We categorize our products and services into the following three categories:

• •

  Strategic services, which include primarily private line (including special access), broadband, video (including DIRECTV) and Verizon Wireless services;

  •

  Legacy services, which include primarily local, integrated services digital network ("ISDN") (which uses regular telephone lines to support voice, video and data applications), switched access and traditional wide area network ("WAN") services (which allows a local communications network to link to networks in remote locations); and

  •

  Affiliates and other services, which consist primarily of USF surcharges and services we provide to our affiliates. We provide to our affiliates data, local services and billing and collections services that we also provide to external customers. In addition, we provide to our affiliates: marketing, sales and advertising services; computer system development and support services; network support and technical services; and other support services, such as legal, regulatory, finance and accounting, tax and human resources.

        Since the April 1, 2011 closing of CenturyLink's indirect acquisition of us, our operations are integrated into and are reported as part of the segments of CenturyLink. CenturyLink's chief operating decision maker ("CODM") has become our CODM, but reviews our financial information on an aggregate basis only in connection with our quarterly and annual reports that we file with the SEC. Consequently, we do not provide our discrete financial information to the CODM on a regular basis.

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

	Successor		Predecessor
	Nine Months Ended December 31, 2011		Three Months Ended March 31, 2011		Year Ended December 31, 2010		Year Ended December 31, 2009
	(Dollars in millions)
Strategic services	$	2,406		793		3,059		2,900
Legacy services		2,796		1,003		4,323		4,922
Affiliates and other services		1,433		472		1,889		1,909
Total operating revenues	$	6,635		2,268		9,271		9,731

        We do not have any single customer that provides more than 10% of our total revenue. Substantially all of our revenue comes from customers located in the United States.

        The table below presents the aggregate USF surcharges recognized on a gross basis:

	Successor		Predecessor
	Nine Months Ended December 31, 2011		Three Months Ended March 31, 2011		Year Ended December 31, 2010		Year Ended December 31, 2009
	(Dollars in millions)
Taxes and surcharges included in operating revenues and expenses		122		43		186		182