notes to consolidated financial statements

Note 13 (3 of 3)

Segment Information

Reconciliation to Consolidated Financial Information

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

(dollars in millions)

Years Ended December 31,

 

2011

 

 

2010

 

 

2009

 

Operating Revenues

 

 

 

 

 

 

 

 

 

Total reportable segments

$

110,836

 

$

104,634

 

$

102,776

 

Reconciling items:

 

 

 

 

 

 

 

 

 

Deferred revenue adjustment (see Note 1)

 

 

 

(235

)

 

78

 

Impact of divested operations

 

 

 

2,407

 

 

5,297

 

Corporate, eliminations and other

 

39

 

 

(241

)

 

(343

)

Consolidated operating revenues

$

110,875

 

$

106,565

 

$

107,808

 

A reconciliation of the total of the reportable segments’ operating income to consolidated Income before provision for income taxes is as follows:

(dollars in millions)

Years Ended December 31,

 

2011

 

 

2010

 

 

2009

 

Operating Income

 

 

 

 

 

 

 

 

 

Total segment operating income

$

19,486

 

$

19,492

 

$

18,211

 

Merger integration and acquisition related charges (see Note 2)

 

 

 

(867

)

 

(954

)

Access line spin-off related charges (see Note 2)

 

 

 

(407

)

 

(453

)

Severance, pension and benefit charges (see Note 11)

 

(5,954

)

 

(3,054

)

 

(1,440

)

Deferred revenue adjustment (see Note 1)

 

 

 

(235

)

 

78

 

Impact of divested operations (see Note 2)

 

 

 

755

 

 

1,769

 

Corporate, eliminations and other

 

(652

)

 

(1,039

)

 

(1,233

)

Consolidated operating income

 

12,880

 

 

14,645

 

 

15,978

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of unconsolidated businesses

 

444

 

 

508

 

 

553

 

Other income and (expense), net

 

(14

)

 

54

 

 

91

 

Interest expense

 

(2,827

)

 

(2,523

)

 

(3,102

)

Income Before Provision for Income Taxes

$

10,483

 

$

12,684

 

$

13,520

 

A reconciliation of the total of the reportable segments’ assets to consolidated assets is as follows:

(dollars in millions)

At December 31,

 

2011

 

 

2010

 

Assets

 

 

 

 

 

 

Total reportable segments

$

233,563

 

$

222,712

 

Corporate, eliminations and other

 

(3,102

)

 

(2,707

)

Total consolidated

$

230,461

 

$

220,005

 

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 years ended December 31, 2011, 2010 and 2009. International operating revenues and long-lived assets are not significant.