| 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 the historical results of divested operations
and 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.
On July 1,
2014, our Wireline segment sold a non-strategic business.
Accordingly, the historical Wireline results for these operations
have been reclassified to Corporate, eliminations and other to
reflect comparable segment operating results.
The
reconciliation of segment operating revenues and expenses to
consolidated operating revenues and expenses below also includes
those items of a non-operational nature. We exclude from segment
results the effects of certain items that management does not
consider in assessing segment performance, primarily because of
their non-operational nature.
We have adjusted
prior period consolidated and segment information, where
applicable, to conform to current period presentation.
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 broadband video and data, corporate
networking solutions, data center and cloud services, security and
managed network services and local and long distance voice
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 around the
world.
|
The following table provides
operating financial information for our two reportable
segments:
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
March 31,
|
|
|
(dollars in
millions) |
|
2015 |
|
|
2014 |
|
|
External Operating
Revenues
|
|
|
|
|
|
|
|
|
|
Wireless
|
|
|
|
|
|
|
|
|
|
Retail service
|
|
$ |
17,131 |
|
|
$ |
17,233 |
|
|
Other service
|
|
|
765 |
|
|
|
735 |
|
|
|
|
|
|
|
Service revenue
|
|
|
17,896 |
|
|
|
17,968 |
|
|
|
|
|
Equipment
|
|
|
3,373 |
|
|
|
1,869 |
|
|
Other
|
|
|
1,033 |
|
|
|
1,014 |
|
|
|
|
|
|
|
Total Wireless
|
|
|
22,302 |
|
|
|
20,851 |
|
|
|
|
|
Wireline
|
|
|
|
|
|
|
|
|
|
Consumer retail
|
|
|
3,992 |
|
|
|
3,840 |
|
|
Small business
|
|
|
600 |
|
|
|
624 |
|
|
|
|
|
|
|
Mass Markets
|
|
|
4,592 |
|
|
|
4,464 |
|
|
|
|
|
Strategic
services
|
|
|
2,048 |
|
|
|
2,062 |
|
|
Core
|
|
|
1,215 |
|
|
|
1,404 |
|
|
|
|
|
|
|
Global Enterprise
|
|
|
3,263 |
|
|
|
3,466 |
|
|
|
|
|
Global Wholesale
|
|
|
1,266 |
|
|
|
1,336 |
|
|
Other
|
|
|
87 |
|
|
|
140 |
|
|
|
|
|
|
|
Total Wireline
|
|
|
9,208 |
|
|
|
9,406 |
|
|
|
|
|
|
|
Total segments
|
|
|
31,510 |
|
|
|
30,257 |
|
|
Corporate, eliminations and
other
|
|
|
474 |
|
|
|
561 |
|
|
|
|
|
|
|
Total consolidated –
reported
|
|
$ |
31,984 |
|
|
$ |
30,818 |
|
|
|
|
|
|
|
|
|
|
Intersegment
Revenues
|
|
|
|
|
|
|
|
|
|
Wireless
|
|
$ |
26 |
|
|
$ |
28 |
|
|
Wireline
|
|
|
261 |
|
|
|
256 |
|
|
|
|
|
|
|
Total segments
|
|
|
287 |
|
|
|
284 |
|
|
Corporate, eliminations and
other
|
|
|
(287 |
) |
|
|
(284 |
) |
|
|
|
|
|
|
Total consolidated –
reported
|
|
$ |
– |
|
|
$ |
– |
|
|
|
|
|
|
|
|
|
|
Total Operating
Revenues
|
|
|
|
|
|
|
|
|
|
Wireless
|
|
$ |
22,328 |
|
|
$ |
20,879 |
|
|
Wireline
|
|
|
9,469 |
|
|
|
9,662 |
|
|
|
|
|
|
|
Total segments
|
|
|
31,797 |
|
|
|
30,541 |
|
|
Reconciling items
|
|
|
187 |
|
|
|
277 |
|
|
|
|
|
|
|
Total consolidated –
reported
|
|
$ |
31,984 |
|
|
$ |
30,818 |
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
|
|
|
|
|
|
|
Wireless
|
|
$ |
7,810 |
|
|
$ |
7,318 |
|
|
Wireline
|
|
|
405 |
|
|
|
141 |
|
|
|
|
|
|
|
Total segments
|
|
|
8,215 |
|
|
|
7,459 |
|
|
Reconciling items
|
|
|
(255 |
) |
|
|
(299 |
) |
|
|
|
|
|
|
Total consolidated –
reported
|
|
$ |
7,960 |
|
|
$ |
7,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
millions) |
|
At March 31,
2015 |
|
|
At December 31,
2014 |
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Wireless
|
|
$ |
171,760 |
|
|
$ |
160,385 |
|
|
Wireline
|
|
|
78,624 |
|
|
|
76,673 |
|
|
|
|
|
|
|
Total segments
|
|
|
250,384 |
|
|
|
237,058 |
|
|
Corporate, eliminations and
other
|
|
|
(14,594 |
) |
|
|
(4,350 |
) |
|
|
|
|
|
|
Total consolidated –
reported
|
|
$ |
235,790 |
|
|
$ |
232,708 |
|
|
|
|
|
|
A reconciliation of the
segment operating revenues to consolidated operating revenues is as
follows:
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
March 31, |
|
|
(dollars in
millions) |
|
2015 |
|
|
2014 |
|
|
Total segment operating
revenues
|
|
$ |
31,797 |
|
|
$ |
30,541 |
|
|
Impact of divested
operations
|
|
|
– |
|
|
|
128 |
|
|
Corporate, eliminations and
other
|
|
|
187 |
|
|
|
149 |
|
|
|
|
|
|
|
Total consolidated operating
revenues
|
|
$ |
31,984 |
|
|
$ |
30,818 |
|
|
|
|
|
|
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) |
|
2015 |
|
|
2014 |
|
|
Total segment operating
income
|
|
$ |
8,215 |
|
|
$ |
7,459 |
|
|
Impact of divested
operations
|
|
|
– |
|
|
|
6 |
|
|
Corporate, eliminations and
other
|
|
|
(255 |
) |
|
|
(305 |
) |
|
|
|
|
|
|
Total consolidated operating
income
|
|
|
7,960 |
|
|
|
7,160 |
|
|
|
|
|
Equity in earnings (losses)
of unconsolidated businesses
|
|
|
(34 |
) |
|
|
1,902 |
|
|
Other income and (expense),
net
|
|
|
75 |
|
|
|
(894 |
) |
|
Interest expense
|
|
|
(1,332 |
) |
|
|
(1,214 |
) |
|
|
|
|
|
|
Income Before Provision
For Income Taxes
|
|
$ |
6,669 |
|
|
$ |
6,954 |
|
|
|
|
|
|
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, 2015 and 2014.
|