Segment Information (Tables)

9 Months Ended

Sep. 30, 2015

Segment Reporting Information [Line Items]

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]

The following table presents Adjusted EBITDA by segment and reconciles Adjusted EBITDA to consolidated net income:

	Three Months Ended						Nine Months Ended
(dollars in millions)	September 30, 2015			September 30, 2014			September 30, 2015			September 30, 2014
Adjusted EBITDA:
North America	$	760		$	492		$	2,267		$	1,460
EMEA	63			57			176			167
Latin America	78			92			237			264
Unallocated Corporate Expenses	(244		)	(170		)	(723		)	(503		)
Consolidated Adjusted EBITDA	657			471			1,957			1,388
Income Tax Expense	(16		)	(8		)	(39		)	(27		)
Total Other Expense	(310		)	(169		)	(844		)	(507		)
Depreciation and Amortization	(296		)	(187		)	(872		)	(558		)
Non-Cash Stock Compensation Attributable to Stock Awards	(34		)	(22		)	(92		)	(48		)
Total Consolidated Net Income	$	1		$	85		$	110		$	248

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The following table presents capital expenditures by segment and reconciles capital expenditures to consolidated capital expenditures:

	Three Months Ended				Nine Months Ended
(dollars in millions)	September 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
Capital Expenditures:
North America	$	202	$	116	$	560	$	318
EMEA	41		34		114		82
Latin America	48		35		122		106
Unallocated Corporate Capital Expenditures	37		19		103		102
Consolidated Capital Expenditures	$	328	$	204	$	899	$	608

Segment Reporting Disclosure [Text Block]

Segment Information

Operating segments are defined under GAAP as components of an enterprise for which separate financial information is available and evaluated regularly by the Company's chief operating decision maker ("CODM") in deciding how to allocate resources and assess performance. As a result of the integration of tw telecom (see Note 2 - Events Associated with the Merger of tw telecom), the Company reorganized its management reporting structure to reflect the way in which it allocates resources and assesses performance. Effective the first quarter of 2015, tw telecom has been integrated into North America. As a result of the change, the Company's reportable segments now consist of 1) North America, 2) Europe, the Middle East and Africa (EMEA) and 3) Latin America. Other separate business interests that are not segments include interest, certain corporate assets and overhead costs, and certain other general and administrative costs that are not allocated to any of the operating segments.

The CODM measures and evaluates segment performance primarily based upon revenue, revenue growth and Adjusted EBITDA. Adjusted EBITDA, as defined by the Company, is equal to net income (loss) from the Consolidated Statements of Income before (1) income tax benefit (expense), (2) total other income (expense), (3) non-cash impairment charges included within selling, general and administrative expenses and network related expenses, (4) depreciation and amortization expense, and (5) non-cash stock-based compensation expense included within selling, general and administrative expenses and network related expenses.

Adjusted EBITDA is not a measurement under GAAP and may not be used in the same way by other companies. Management believes that Adjusted EBITDA is an important part of the Company's internal reporting and is a key measure used by management to evaluate profitability and operating performance of the Company and to make resource allocation decisions. Management believes such measurement is especially important in a capital-intensive industry such as telecommunications. Management also uses Adjusted EBITDA to compare the Company's performance to that of its competitors and to eliminate certain non-cash and non-operating items in order to consistently measure from period to period its ability to fund capital expenditures, fund growth, service debt and determine bonuses.

Adjusted EBITDA excludes non-cash impairment charges and non-cash stock-based compensation expense because of the non-cash nature of these items. Adjusted EBITDA also excludes interest income, interest expense and income tax benefit (expense) because these items are associated with the Company's capitalization and tax structures. Adjusted EBITDA also excludes depreciation and amortization expense because these non-cash expenses reflect the effect of capital investments which management believes are better evaluated through cash flow measures. Adjusted EBITDA excludes net other income (expense) because these items are not related to the primary operations of the Company.

There are limitations to using non-GAAP financial measures such as Adjusted EBITDA, including the difficulty associated with comparing companies that use similar performance measures whose calculations may differ from the Company's calculations. Additionally, this financial measure does not include certain significant items such as interest income, interest expense, income tax benefit (expense), depreciation and amortization expense, non-cash impairment charges, non-cash stock-based compensation expense, and net other income (expense). Adjusted EBITDA should not be considered a substitute for other measures of financial performance reported in accordance with GAAP.

The following table presents revenue by segment:

	Three Months Ended				Nine Months Ended
(dollars in millions)	September 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
Core Network Services Revenue:
North America	$	1,551	$	1,063	$	4,637	$	3,157
EMEA	212		219		623		673
Latin America	183		200		554		588
Total Core Network Services Revenue	1,946		1,482		5,814		4,418
Wholesale Voice Services and Other Revenue:
North America	110		128		343		410
EMEA	3		4		10		14
Latin America	3		15		9		21
Total Wholesale Voice Services and Other Revenue	116		147		362		445
Total Consolidated Revenue	$	2,062	$	1,629	$	6,176	$	4,863

The following table presents Adjusted EBITDA by segment and reconciles Adjusted EBITDA to consolidated net income:

	Three Months Ended						Nine Months Ended
(dollars in millions)	September 30, 2015			September 30, 2014			September 30, 2015			September 30, 2014
Adjusted EBITDA:
North America	$	760		$	492		$	2,267		$	1,460
EMEA	63			57			176			167
Latin America	78			92			237			264
Unallocated Corporate Expenses	(244		)	(170		)	(723		)	(503		)
Consolidated Adjusted EBITDA	657			471			1,957			1,388
Income Tax Expense	(16		)	(8		)	(39		)	(27		)
Total Other Expense	(310		)	(169		)	(844		)	(507		)
Depreciation and Amortization	(296		)	(187		)	(872		)	(558		)
Non-Cash Stock Compensation Attributable to Stock Awards	(34		)	(22		)	(92		)	(48		)
Total Consolidated Net Income	$	1		$	85		$	110		$	248

The following table presents capital expenditures by segment and reconciles capital expenditures to consolidated capital expenditures:

	Three Months Ended				Nine Months Ended
(dollars in millions)	September 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
Capital Expenditures:
North America	$	202	$	116	$	560	$	318
EMEA	41		34		114		82
Latin America	48		35		122		106
Unallocated Corporate Capital Expenditures	37		19		103		102
Consolidated Capital Expenditures	$	328	$	204	$	899	$	608

The following table presents total consolidated assets by segment:

(dollars in millions)	September 30, 2015		December 31, 2014
Assets:
North America	$	16,615	$	16,242
EMEA	1,859		1,970
Latin America	2,147		2,451
Other	262		284
Total Consolidated Assets	$	20,883	$	20,947

Reconciliation of Revenue from Segments to Consolidated [Table Text Block]

The following table presents revenue by segment:

	Three Months Ended				Nine Months Ended
(dollars in millions)	September 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
Core Network Services Revenue:
North America	$	1,551	$	1,063	$	4,637	$	3,157
EMEA	212		219		623		673
Latin America	183		200		554		588
Total Core Network Services Revenue	1,946		1,482		5,814		4,418
Wholesale Voice Services and Other Revenue:
North America	110		128		343		410
EMEA	3		4		10		14
Latin America	3		15		9		21
Total Wholesale Voice Services and Other Revenue	116		147		362		445
Total Consolidated Revenue	$	2,062	$	1,629	$	6,176	$	4,863