| 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:
|
|
|
|
Segment |
|
Description |
| Wireless |
|
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.
|
|
|
| Wireline |
|
Wireline’s voice, data and video communications products
and enhanced services include local and long distance voice,
broadband Internet access and video, corporate networking
solutions, data center and cloud services and security and managed
network 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.
|
The following
table provides operating financial information for our two
reportable segments:
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
March 31, |
|
|
(dollars in
millions) |
|
2013 |
|
|
2012 |
|
|
External Operating
Revenues
|
|
|
|
|
|
|
|
|
|
Wireless
|
|
|
|
|
|
|
|
|
|
Retail service
|
|
$ |
16,155 |
|
|
$ |
14,872 |
|
|
Other service
|
|
|
557 |
|
|
|
524 |
|
|
|
|
|
|
|
Service revenue
|
|
|
16,712 |
|
|
|
15,396 |
|
|
|
|
|
Equipment
|
|
|
1,809 |
|
|
|
1,835 |
|
|
Other
|
|
|
975 |
|
|
|
1,019 |
|
|
|
|
|
|
|
Total Wireless
|
|
|
19,496 |
|
|
|
18,250 |
|
|
|
|
|
Wireline
|
|
|
|
|
|
|
|
|
|
Consumer retail
|
|
|
3,590 |
|
|
|
3,441 |
|
|
Small business
|
|
|
648 |
|
|
|
659 |
|
|
|
|
|
|
|
Mass Markets
|
|
|
4,238 |
|
|
|
4,100 |
|
|
|
|
|
Strategic
services
|
|
|
2,087 |
|
|
|
1,969 |
|
|
Core
|
|
|
1,660 |
|
|
|
1,882 |
|
|
|
|
|
|
|
Global Enterprise
|
|
|
3,747 |
|
|
|
3,851 |
|
|
|
|
|
Global Wholesale
|
|
|
1,471 |
|
|
|
1,592 |
|
|
Other
|
|
|
103 |
|
|
|
123 |
|
|
|
|
|
|
|
Total Wireline
|
|
|
9,559 |
|
|
|
9,666 |
|
|
|
|
|
|
|
Total segments
|
|
|
29,055 |
|
|
|
27,916 |
|
|
Corporate, eliminations and
other
|
|
|
365 |
|
|
|
326 |
|
|
|
|
|
|
|
Total consolidated –
reported
|
|
$ |
29,420 |
|
|
$ |
28,242 |
|
|
|
|
|
|
|
|
|
|
Intersegment
Revenues
|
|
|
|
|
|
|
|
|
|
Wireless
|
|
$ |
27 |
|
|
$ |
23 |
|
|
Wireline
|
|
|
271 |
|
|
|
279 |
|
|
|
|
|
|
|
Total segments
|
|
|
298 |
|
|
|
302 |
|
|
Corporate, eliminations and
other
|
|
|
(298 |
) |
|
|
(302 |
) |
|
|
|
|
|
|
Total consolidated –
reported
|
|
$ |
– |
|
|
$ |
– |
|
|
|
|
|
|
|
|
|
|
Total Operating
Revenues
|
|
|
|
|
|
|
|
|
|
Wireless
|
|
$ |
19,523 |
|
|
$ |
18,273 |
|
|
Wireline
|
|
|
9,830 |
|
|
|
9,945 |
|
|
|
|
|
|
|
Total segments
|
|
|
29,353 |
|
|
|
28,218 |
|
|
Corporate, eliminations and
other
|
|
|
67 |
|
|
|
24 |
|
|
|
|
|
|
|
Total consolidated –
reported
|
|
$ |
29,420 |
|
|
$ |
28,242 |
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
|
|
|
|
|
|
|
Wireless
|
|
$ |
6,418 |
|
|
$ |
5,217 |
|
|
Wireline
|
|
|
13 |
|
|
|
157 |
|
|
|
|
|
|
|
Total segments
|
|
|
6,431 |
|
|
|
5,374 |
|
|
Reconciling items
|
|
|
(209 |
) |
|
|
(179 |
) |
|
|
|
|
|
|
Total consolidated –
reported
|
|
$ |
6,222 |
|
|
$ |
5,195 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
millions) |
|
At March 31,
2013
|
|
|
At December 31,
2012
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Wireless
|
|
$ |
145,242 |
|
|
$ |
142,485 |
|
|
Wireline
|
|
|
85,746 |
|
|
|
84,815 |
|
|
|
|
|
|
|
Total segments
|
|
|
230,988 |
|
|
|
227,300 |
|
|
Reconciling items
|
|
|
(4,802 |
) |
|
|
(2,078 |
) |
|
|
|
|
|
|
Total consolidated –
reported
|
|
$ |
226,186 |
|
|
$ |
225,222 |
|
|
|
|
|
|
A reconciliation
of the total of the reportable segments’ operating income to
consolidated income before provision for income taxes is as
follows:
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
March 31, |
|
|
(dollars in
millions) |
|
2013 |
|
|
2012 |
|
|
Total segment operating
income
|
|
$ |
6,431 |
|
|
$ |
5,374 |
|
|
Corporate, eliminations and
other
|
|
|
(209 |
) |
|
|
(179 |
) |
|
|
|
|
|
|
Total consolidated operating
income
|
|
|
6,222 |
|
|
|
5,195 |
|
|
|
|
|
Equity in earnings of
unconsolidated businesses
|
|
|
(5 |
) |
|
|
103 |
|
|
Other income and (expense),
net
|
|
|
39 |
|
|
|
19 |
|
|
Interest expense
|
|
|
(537 |
) |
|
|
(685 |
) |
|
|
|
|
|
|
Income Before Provision
For Income Taxes
|
|
$ |
5,719 |
|
|
$ |
4,632 |
|
|
|
|
|
|
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, 2013 and 2012.
|