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Segment Information (Tables)

6 Months Ended

Jun. 30, 2017

Reconciliation of Revenue from Segments to Consolidated

The following table presents revenue by segment:



	Three Months Ended				Six Months Ended
(dollars in millions)	June 30, 2017		June 30, 2016⁽¹⁾		June 30, 2017		June 30, 2016⁽¹⁾
Core Network Services Revenue:
North America	$	1,607	$	1,605	$	3,201	$	3,206
EMEA	176		191		351		381
Latin America	182		160		359		315
Total Core Network Services Revenue	1,965		1,956		3,911		3,902

Wholesale Voice Services Revenue:
North America	91		95		189		194
EMEA	2		3		5		7
Latin America	3		2		4		4
Total Wholesale Voice Services Revenue	96		100		198		205

Total Revenue	$	2,061	$	2,056	$	4,109	$	4,107

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

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



	Three Months Ended						Six Months Ended
(dollars in millions)	June 30, 2017			June 30, 2016			June 30, 2017			June 30, 2016
Adjusted EBITDA:
North America	$	815		$	819		$	1,624		$	1,631
EMEA	69			52			126			106
Latin America	77			64			157			138
Unallocated Corporate Expenses	(239		)	(220		)	(480		)	(450		)
Adjusted EBITDA	722			715			1,427			1,425
Income Tax Expense	(69		)	(34		)	(139		)	(124		)
Total Other Expense	(130		)	(184		)	(302		)	(328		)
Depreciation and Amortization	(330		)	(310		)	(650		)	(611		)
Non-Cash Stock Compensation	(39		)	(31		)	(87		)	(78		)
Net Income	$	154		$	156		$	249		$	284

Schedule of Segment Reporting Information, by Segment

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



	Three Months Ended				Six Months Ended
(dollars in millions)	June 30, 2017		June 30, 2016		June 30, 2017		June 30, 2016
Capital Expenditures:
North America	$	220	$	237	$	474	$	432
EMEA	27		40		58		79
Latin America	43		51		78		74
Unallocated Corporate Capital Expenditures	38		39		86		79
Total Capital Expenditures	$	328	$	367	$	696	$	664

Reconciliation of Assets from Segment to Consolidated

The following table presents total assets by segment:



(dollars in millions)	June 30, 2017		December 31, 2016
Assets:
North America	$	21,082	$	20,818
EMEA	1,739		1,639
Latin America	2,339		2,304
Other	127		127
Total Assets	$	25,287	$	24,888

Reconciliation of Goodwill from Segment to Consolidated

The changes in the carrying amount of goodwill by segment during the six months ended June 30, 2017 were as follows (in millions):



	North America		EMEA		Latin America		Total
Balance at December 31, 2016	$	7,024	$	109	$	596	$	7,729
Effect of foreign currency rate change	—		8		—		8
Balance at June 30, 2017	$	7,024	$	117	$	596	$	7,737

There were no events or changes in circumstances during the first three and six months of 2017 that indicated the carrying value of goodwill may not be recoverable.