| Segment Information |
Reportable Segments
We have two reportable segments, which we operate and manage as strategic business units and organize by products and services. We measure and evaluate our reportable segments based on segment operating income, consistent with the chief operating decision maker's assessment of segment performance.
Corporate, eliminations and other includes unallocated corporate expenses, intersegment eliminations recorded in consolidation, the results of other businesses, such as our investments in unconsolidated businesses, pension and other employee benefit related costs, lease financing, as well as other adjustments and gains and losses that are not allocated in assessing segment performance due to their non-operational nature. Although such transactions are excluded from the business segment results, they are included in reported consolidated earnings. Gains and losses that are not individually significant are included in all segment results as these items are included in the chief operating decision maker's assessment of segment performance.
Our segments and their principal activities consist of the following:
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| Segment |
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Description |
| Verizon Wireless |
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Verizon Wireless' communications products and services include wireless voice and data services and equipment sales, which are provided to consumer, business and government customers across the United States. |
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| Wireline |
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Wireline's communications products and services include voice, Internet access, broadband video and data, Internet protocol network services, network access, long distance and other services. We provide these products and services to consumers in the United States, as well as to carriers, businesses and government customers both in the United States and in over 150 other countries around the world. |
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The following table provides operating financial information for our two reportable segments:
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Three Months Ended
March 31, |
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| (dollars in millions) |
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2012 |
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2011 |
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External Operating Revenues |
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Verizon Wireless |
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Retail service |
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$ |
14,872 |
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$ |
13,659 |
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Other service |
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524 |
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637 |
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Service revenue |
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15,396 |
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14,296 |
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Equipment |
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1,835 |
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1,687 |
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Other |
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1,019 |
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877 |
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Total Verizon Wireless |
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18,250 |
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16,860 |
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Wireline |
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Consumer retail |
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3,441 |
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3,383 |
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Small business |
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659 |
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692 |
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Mass Markets |
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4,100 |
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4,075 |
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Strategic services |
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1,969 |
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1,765 |
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Core |
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1,882 |
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2,054 |
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Global Enterprise |
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3,851 |
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3,819 |
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Global Wholesale |
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1,592 |
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1,740 |
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Other |
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123 |
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201 |
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Total Wireline |
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9,666 |
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9,835 |
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Total segments |
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27,916 |
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26,695 |
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Corporate, eliminations and other |
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326 |
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295 |
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Total consolidated – reported |
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$ |
28,242 |
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$ |
26,990 |
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Intersegment Revenues |
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Verizon Wireless |
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$ |
23 |
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$ |
21 |
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Wireline |
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279 |
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312 |
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Total segments |
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302 |
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333 |
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Corporate, eliminations and other |
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(302 |
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(333 |
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Total consolidated – reported |
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$ |
– |
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$ |
– |
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Total Operating Revenues |
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Verizon Wireless |
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$ |
18,273 |
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$ |
16,881 |
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Wireline |
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9,945 |
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10,147 |
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Total segments |
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28,218 |
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27,028 |
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Corporate, eliminations and other |
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24 |
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(38 |
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Total consolidated – reported |
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$ |
28,242 |
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$ |
26,990 |
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Operating Income |
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Verizon Wireless |
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$ |
5,217 |
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$ |
4,351 |
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Wireline |
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157 |
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288 |
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Total segments |
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5,374 |
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4,639 |
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Reconciling items |
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(179 |
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(186 |
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Total consolidated – reported |
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$ |
5,195 |
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$ |
4,453 |
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At March 31, |
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At December 31, |
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| (dollars in millions) |
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2012 |
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2011 |
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Assets |
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Verizon Wireless |
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$ |
139,834 |
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$ |
147,378 |
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Wireline |
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86,187 |
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86,185 |
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Total segments |
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226,021 |
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233,563 |
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Reconciling items |
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(3,100 |
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(3,102 |
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Total consolidated – reported |
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$ |
222,921 |
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$ |
230,461 |
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A reconciliation of the total of the reportable segments' operating income to consolidated income before provision for income taxes is as follows:
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Three Months Ended
March 31, |
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| (dollars in millions) |
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2012 |
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2011 |
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Total segment operating income |
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$ |
5,374 |
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$ |
4,639 |
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Corporate, eliminations and other |
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(179 |
) |
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(186 |
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Total consolidated operating income |
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5,195 |
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4,453 |
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Equity in earnings of unconsolidated businesses |
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103 |
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101 |
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Other income and (expense), net |
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19 |
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36 |
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Interest expense |
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(685 |
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(709 |
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Income Before Provision For Income Taxes |
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$ |
4,632 |
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$ |
3,881 |
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We generally account for intersegment sales of products and services and asset transfers at current market prices. No single customer accounted for more than 10% of our total operating revenues during the three months ended March 31, 2012 and 2011. |