v3.4.0.3
Segment Information
 3 Months Ended
Mar. 31, 2016
Segment Information
10.

Segment Information

 

Reportable Segments

We have two reportable segments, Wireless and Wireline, 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 and other includes the operations of AOL and related businesses, unallocated corporate expenses, the results of other businesses, such as our investments in unconsolidated businesses, pension and other employee benefit related costs and lease financing. Corporate and other also includes 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.

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 reportable 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)    2016      2015  

External Operating Revenues

      

Wireless

      

Service revenue

    $ 16,769       $ 17,896   

Equipment

      3,954         3,373   

Other

      1,196         1,033   
  

 

 

  

Total Wireless

      21,919         22,302   

Wireline

      

Consumer retail

      4,022         3,992   

Small business

      568         600   
  

 

 

  

Mass Markets

      4,590         4,592   

Global Enterprise

      3,161         3,263   

Global Wholesale

      1,213         1,266   

Other

      76         87   
  

 

 

  

Total Wireline

      9,040         9,208   
  

 

 

  

Total reportable segments

    $   30,959       $   31,510   
  

 

 

  

Intersegment Revenues

      

Wireless

    $ 85       $ 26   

Wireline

      250         261   
  

 

 

  

Total reportable segments

    $ 335       $ 287   
  

 

 

  

Total Operating Revenues

      

Wireless

    $ 22,004       $ 22,328   

Wireline

      9,290         9,469   
  

 

 

  

Total reportable segments

    $ 31,294       $ 31,797   
  

 

 

  

Operating Income

      

Wireless

    $ 7,880       $ 7,810   

Wireline

      589         405   
  

 

 

  

Total reportable segments

    $ 8,469       $ 8,215   
  

 

 

  

 

(dollars in millions)    At March 31,
2016		     At December 31,
2015		  

Assets

     

Wireless

    $ 190,892      $ 185,405   

Wireline

      73,221        78,305   
  

 

 

  

Total reportable segments

      264,113        263,710   

Corporate and other

      210,199        205,476   

Eliminations

      (229,725 )      (225,011 ) 
  

 

 

  

Total consolidated – reported

    $    244,587      $    244,175   
  

 

 

  

A reconciliation of the reportable segment operating revenues to consolidated operating revenues is as follows:

 

    

Three Months Ended

March 31,

  
(dollars in millions)    2016     2015  

Total reportable segment operating revenues

    $ 31,294      $ 31,797   

Corporate and other

      1,232        474   

Eliminations

      (355 )      (287 ) 
  

 

 

  

Total consolidated operating revenues

    $   32,171      $   31,984   
  

 

 

  

Fios revenues are included within our Wireline segment and amounted to approximately $3.5 billion and $3.4 billion for the three months ended March 31, 2016 and 2015, respectively.

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)    2016     2015  

Total reportable segment operating income

    $ 8,469      $ 8,215   

Corporate and other

      (504 )      (255 ) 

Pension remeasurement (Note 8)

      (165 )      –   

Gain on spectrum license transaction (Note 2)

      142        –   
  

 

 

  

Total consolidated operating income

      7,942        7,960   

Equity in losses of unconsolidated businesses

      (20 )      (34 ) 

Other income, net

      32        75   

Interest expense

      (1,188 )      (1,332 ) 
  

 

 

  

Income Before Provision For Income Taxes

    $    6,766      $    6,669   
  

 

 

  

No single customer accounted for more than 10% of our total operating revenues during the three months ended March 31, 2016 and 2015.