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segment information (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2018
segment information |
Reconciliation of revenue and income before income taxes by segment |
|  | Wireless |  | Wireline |  | Eliminations |  | Consolidated
Years ended December 31 (millions) |  | 2018 |  | 2017 |  | 2018 |  | 2017 |  | 2018 |  | 2017 |  | 2018 |  | 2017
|  |  |  |  | (adjusted – |  |  |  |  | (adjusted – |  |  |  |  |  |  |  |  |  |  | (adjusted –
|  |  |  |  | Note 2(c)) |  |  |  |  | Note 2(c)) |  |  |  |  |  |  |  |  |  |  | Note 2(c))
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
External revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Service |  | $ | 6,054 |  | $ | 5,896 |  | $ | 5,828 |  | $ | 5,436 |  | $ | — |  | $ | — |  | $ | 11,882 |  | $ | 11,332
Equipment |  |  | 1,963 |  |  | 1,739 |  |  | 250 |  |  | 234 |  |  | — |  |  | — |  |  | 2,213 |  |  | 1,973
Revenues arising from contracts with customers |  |  | 8,017 |  |  | 7,635 |  |  | 6,078 |  |  | 5,670 |  |  | — |  |  | — |  |  | 14,095 |  |  | 13,305
Other operating income |  |  | 118 |  |  | 36 |  |  | 155 |  |  | 67 |  |  | — |  |  | — |  |  | 273 |  |  | 103
|  |  | 8,135 |  |  | 7,671 |  |  | 6,233 |  |  | 5,737 |  |  | — |  |  | — |  |  | 14,368 |  |  | 13,408
Intersegment revenues |  |  | 47 |  |  | 43 |  |  | 207 |  |  | 206 |  |  | (254) |  |  | (249) |  |  | — |  |  | —
|  | $ | 8,182 |  | $ | 7,714 |  | $ | 6,440 |  | $ | 5,943 |  | $ | (254) |  | $ | (249) |  | $ | 14,368 |  | $ | 13,408
EBITDA 1 |  | $ | 3,431 |  | $ | 3,250 |  | $ | 1,673 |  | $ | 1,660 |  | $ | — |  | $ | — |  | $ | 5,104 |  | $ | 4,910
CAPEX, excluding spectrum licences 2 |  | $ | 896 |  | $ | 978 |  | $ | 2,018 |  | $ | 2,116 |  | $ | — |  | $ | — |  | $ | 2,914 |  | $ | 3,094
Operating revenues – external (above) |  | $ | 14,368 |  | $ | 13,408
Goods and services purchased |  |  | 6,368 |  |  | 5,904
Employee benefits expense |  |  | 2,896 |  |  | 2,594
EBITDA (above) |  |  | 5,104 |  |  | 4,910
Depreciation |  |  | 1,669 |  |  | 1,617
Amortization |  |  | 598 |  |  | 552
Operating income |  |  | 2,837 |  |  | 2,741
Financing costs |  |  | 661 |  |  | 573
Income before income taxes |  | $ | 2,176 |  | $ | 2,168
| 1 |  | Earnings before interest, income taxes, depreciation and amortization (EBITDA) does not have any standardized meaning prescribed by IFRS-IASB and is therefore unlikely to be comparable to similar measures presented by other issuers; we define EBITDA as operating revenues less goods and services purchased and employee benefits expense. We have issued guidance on, and report, EBITDA because it is a key measure that management uses to evaluate the performance of our business, and it is also utilized in measuring compliance with certain debt covenants.
| 2 |  | Total capital expenditures (CAPEX); see Note 31(a) for a reconciliation of capital expenditures, excluding spectrum licences to cash payments for capital assets, excluding spectrum licences reported in the Consolidated statements of cash flows.

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