Discussion and Reconciliation of Non-GAAP Measures
Supplemental Operational Measures
We provide a supplemental discussion of our business solutions operations that is calculated by combining our Mobility and Business Wireline operating units, and then adjusting to remove non-business operations. The following table presents a reconciliation of our supplemental Business Solutions results.
| Supplemental Operational Measure |
| | | Third Quarter |
| | | September 30, 2019 | | | September 30, 2018 |
| | | Mobility | | Business Wireline | | Adjustments1 | | Business Solutions | | | Mobility | | Business Wireline | | Adjustments1 | | Business Solutions |
| Operating Revenues | | | | | | | | | | | | | | | | | |
| Wireless service | $ | 13,930 | $ | - | $ | (11,921) | $ | 2,009 | | $ | 13,828 | $ | - | $ | (11,971) | $ | 1,857 |
| Strategic and managed services | | - | | 3,900 | | - | | 3,900 | | | - | | 3,677 | | - | | 3,677 |
| Legacy voice and data services | | - | | 2,252 | | - | | 2,252 | | | - | | 2,602 | | - | | 2,602 |
| Other services and equipment | | - | | 351 | | - | | 351 | | | - | | 404 | | - | | 404 |
| Wireless equipment | | 3,771 | | - | | (3,077) | | 694 | | | 3,907 | | - | | (3,321) | | 586 |
| Total Operating Revenues | | 17,701 | | 6,503 | | (14,998) | | 9,206 | | | 17,735 | | 6,683 | | (15,292) | | 9,126 |
| | | | | | | | | | | | | | | | | | |
| Operating Expenses | | | | | | | | | | | | | | | | | |
| Operations and support | | 9,948 | | 4,022 | | (8,327) | | 5,643 | | | 10,104 | | 4,022 | | (8,551) | | 5,575 |
| EBITDA | | 7,753 | | 2,481 | | (6,671) | | 3,563 | | | 7,631 | | 2,661 | | (6,741) | | 3,551 |
| Depreciation and amortization | | 2,011 | | 1,271 | | (1,709) | | 1,573 | | | 2,057 | | 1,187 | | (1,759) | | 1,485 |
| Total Operating Expenses | | 11,959 | | 5,293 | | (10,036) | | 7,216 | | | 12,161 | | 5,209 | | (10,310) | | 7,060 |
| Operating Income | | 5,742 | | 1,210 | | (4,962) | | 1,990 | | | 5,574 | | 1,474 | | (4,982) | | 2,066 |
| Equity in Net Income (Loss) of Affiliates | | - | | (1) | | - | | (1) | | | 1 | | (3) | | (1) | | (3) |
| Operating Contribution | $ | 5,742 | $ | 1,209 | $ | (4,962) | $ | 1,989 | | $ | 5,575 | $ | 1,471 | $ | (4,983) | $ | 2,063 |
1 Non-business wireless reported in the Communication segment under the Mobility business unit. |
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| Supplemental Operational Measure |
| | | Nine-Month Period |
| | | September 30, 2019 | | | September 30, 2018 |
| | | Mobility | | Business Wireline | | Adjustments1 | | Business Solutions | | | Mobility | | Business Wireline | | Adjustments1 | | Business Solutions |
| Operating Revenues | | | | | | | | | | | | | | | | | |
| Wireless service | $ | 41,383 | $ | - | $ | (35,482) | $ | 5,901 | | $ | 40,594 | $ | - | $ | (35,154) | $ | 5,440 |
| Strategic and managed services | | - | | 11,513 | | - | | 11,513 | | | - | | 10,849 | | - | | 10,849 |
| Legacy voice and data services | | - | | 6,973 | | - | | 6,973 | | | - | | 8,176 | | - | | 8,176 |
| Other services and equipment | | - | | 1,102 | | - | | 1,102 | | | - | | 1,010 | | - | | 1,010 |
| Wireless equipment | | 10,973 | | - | | (9,071) | | 1,902 | | | 11,371 | | - | | (9,634) | | 1,737 |
| Total Operating Revenues | | 52,356 | | 19,588 | | (44,553) | | 27,391 | | | 51,965 | | 20,035 | | (44,788) | | 27,212 |
| | | | | | | | | | | | | | | | | | |
| Operating Expenses | | | | | | | | | | | | | | | | | |
| Operations and support | | 29,511 | | 12,029 | | (24,770) | | 16,770 | | | 29,603 | | 12,047 | | (24,926) | | 16,724 |
| EBITDA | | 22,845 | | 7,559 | | (19,783) | | 10,621 | | | 22,362 | | 7,988 | | (19,862) | | 10,488 |
| Depreciation and amortization | | 6,027 | | 3,735 | | (5,119) | | 4,643 | | | 6,218 | | 3,520 | | (5,330) | | 4,408 |
| Total Operating Expenses | | 35,538 | | 15,764 | | (29,889) | | 21,413 | | | 35,821 | | 15,567 | | (30,256) | | 21,132 |
| Operating Income | | 16,818 | | 3,824 | | (14,664) | | 5,978 | | | 16,144 | | 4,468 | | (14,532) | | 6,080 |
| Equity in Net Income (Loss) of Affiliates | | (1) | | - | | 1 | | - | | | - | | (2) | | - | | (2) |
| Operating Contribution | $ | 16,817 | $ | 3,824 | $ | (14,663) | $ | 5,978 | | $ | 16,144 | $ | 4,466 | $ | (14,532) | $ | 6,078 |
1 Non-business wireless reported in the Communication segment under the Mobility business unit. |
