AT&T Wireless 2009 Annual Report Download - page 35

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AT&T 09 AR 33
The Advertising Solutions segment accounted for
approx imately 4% of our 2009 and 2008 total segment
operating revenues and 6% of our 2009 total segment income
as compared to 7% in 2008. This segment includes our
directory operations, which publish Yellow and White Pages
directories and sell directory advertising, Internet-based
advertising and local search.
The Other segment accounted for approximately 1% of
our 2009 total segment operating revenues as compared to
2% in 2008 and less than 1% of our 2009 and 2008 total
segment income. This segment includes results from Sterling
Commerce, Inc. (Sterling), customer information services,
payphone, and all corporate and other operations. Also,
included in the Other segment are impacts of corporate-wide
decisions for which the individual operating segments are not
being evaluated. During 2008, we announced our intention
to discontinue our retail payphone operations previously
included in this segment. Additionally, this segment includes
our portion of the results from our international equity
investments and charges of $550 and $978 associated
with our workforce reductions in 2009 and 2008.
The following tables show components of results of
operations by segment. We discuss significant segment results
following each table. We discuss capital expenditures for each
segment in “Liquidity and Capital Resources.”
Segment Results
Our segments are strategic business units that offer different
products and services over various technology platforms and
are managed accordingly. Our operating segment results
presented in Note 4 and discussed below for each segment
follow our internal management reporting. We analyze our
various operating segments based on segment income before
income taxes, reviewing operating revenues, expenses
(depreciation and non-depreciation) and equity income for
each segment. We make our capital allocations decisions
primarily based on the network (wireless or wireline) providing
services. Interest expense and other income (expense) –
net are managed only on a total company basis and are,
accordingly, reflected only in consolidated results. Each
segment’s percentage of total segment operating revenue
and income calculations is derived from our segment results
table in Note 4 and reflects amounts before eliminations.
We have four reportable segments: (1)Wireless, (2)Wireline,
(3)Advertising Solutions and (4)Other.
The Wireless segment accounted for approximately 43%
of our 2009 total segment operating revenues as compared
to 39% in 2008 and 60% of our 2009 total segment income
as compared to 46% in 2008. This segment provides wireless
voice and advanced data communications services across the
United States.
The Wireline segment accounted for approximately 52%
of our 2009 total segment operating revenues as compared
to 55% in 2008 and 36% of our 2009 total segment income
as compared to 47% in 2008. This segment uses our regional,
national and global network to provide consumer and
business customers with landline voice and data communi-
cations services, AT&T U-verseSM TV, high-speed broadband
and voice services (U-verse) and managed networking to
business customers. Additionally, we offer satellite television
services through our agency arrangements.