(Mark one)
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☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from to
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Delaware
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23-2259884
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(State or other jurisdiction
of incorporation or organization)
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(I.R.S. Employer Identification No.)
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1095 Avenue of the Americas
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10036
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New York
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New York
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(Address of principal executive offices)
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(Zip Code)
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Title of Each Class
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Trading Symbol(s)
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Name of Exchange on Which Registered
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Common Stock, par value $0.10
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VZ
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New York Stock Exchange
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Common Stock, par value $0.10
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VZ
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The NASDAQ Global Select Market
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2.375% Notes due 2022
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VZ22A
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New York Stock Exchange
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0.500% Notes due 2022
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VZ22B
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New York Stock Exchange
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1.625% Notes due 2024
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VZ24B
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New York Stock Exchange
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4.073% Notes due 2024
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VZ24C
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New York Stock Exchange
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0.875% Notes due 2025
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VZ25
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New York Stock Exchange
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3.25% Notes due 2026
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VZ26
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New York Stock Exchange
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1.375% Notes due 2026
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VZ26B
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New York Stock Exchange
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0.875% Notes due 2027
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VZ27E
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New York Stock Exchange
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1.375% Notes due 2028
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VZ28
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New York Stock Exchange
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1.875% Notes due 2029
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VZ29B
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New York Stock Exchange
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1.250% Notes due 2030
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VZ30
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New York Stock Exchange
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2.625% Notes due 2031
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VZ31
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New York Stock Exchange
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2.500% Notes due 2031
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VZ31A
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New York Stock Exchange
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4.75% Notes due 2034
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VZ34
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New York Stock Exchange
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3.125% Notes due 2035
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VZ35
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New York Stock Exchange
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3.375% Notes due 2036
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VZ36A
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New York Stock Exchange
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2.875% Notes due 2038
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VZ38B
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New York Stock Exchange
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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
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|||||
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Large accelerated filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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TABLE OF CONTENTS
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Item No.
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Page
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Item 1.
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Three and six months ended June 30, 2019 and 2018
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Three and six months ended June 30, 2019 and 2018
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At June 30, 2019 and December 31, 2018
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Six months ended June 30, 2019 and 2018
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Item 2.
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||
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Item 3.
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||
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Item 4.
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||
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Item 1.
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||
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Item 1A.
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||
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Item 2.
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||
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Item 6.
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||
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Part I - Financial Information
|
Item 1. Financial Statements (Unaudited)
|
Condensed Consolidated Statements of Income
Verizon Communications Inc. and Subsidiaries
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
|
June 30,
|
|
|
June 30,
|
|
||||||||||
(dollars in millions, except per share amounts) (unaudited)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating Revenues
|
|
|
|
|
|
|
|
||||||||
Service revenues and other
|
$
|
27,351
|
|
|
$
|
27,159
|
|
|
$
|
54,548
|
|
|
$
|
53,891
|
|
Wireless equipment revenues
|
4,720
|
|
|
5,044
|
|
|
9,651
|
|
|
10,084
|
|
||||
Total Operating Revenues
|
32,071
|
|
|
32,203
|
|
|
64,199
|
|
|
63,975
|
|
||||
|
|
|
|
|
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|
|
||||||||
Operating Expenses
|
|
|
|
|
|
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|
||||||||
Cost of services (exclusive of items shown below)
|
7,702
|
|
|
8,234
|
|
|
15,494
|
|
|
16,180
|
|
||||
Cost of wireless equipment
|
5,019
|
|
|
5,397
|
|
|
10,217
|
|
|
10,706
|
|
||||
Selling, general and administrative expense
|
7,268
|
|
|
7,605
|
|
|
14,466
|
|
|
14,449
|
|
||||
Depreciation and amortization expense
|
4,232
|
|
|
4,350
|
|
|
8,463
|
|
|
8,674
|
|
||||
Total Operating Expenses
|
24,221
|
|
|
25,586
|
|
|
48,640
|
|
|
50,009
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating Income
|
7,850
|
|
|
6,617
|
|
|
15,559
|
|
|
13,966
|
|
||||
Equity in losses of unconsolidated businesses
|
(13
|
)
|
|
(228
|
)
|
|
(19
|
)
|
|
(247
|
)
|
||||
Other income (expense), net
|
(1,312
|
)
|
|
360
|
|
|
(1,017
|
)
|
|
285
|
|
||||
Interest expense
|
(1,215
|
)
|
|
(1,222
|
)
|
|
(2,425
|
)
|
|
(2,423
|
)
|
||||
Income Before Provision For Income Taxes
|
5,310
|
|
|
5,527
|
|
|
12,098
|
|
|
11,581
|
|
||||
Provision for income taxes
|
(1,236
|
)
|
|
(1,281
|
)
|
|
(2,864
|
)
|
|
(2,669
|
)
|
||||
Net Income
|
$
|
4,074
|
|
|
$
|
4,246
|
|
|
$
|
9,234
|
|
|
$
|
8,912
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to noncontrolling interests
|
$
|
130
|
|
|
$
|
126
|
|
|
$
|
258
|
|
|
$
|
247
|
|
Net income attributable to Verizon
|
3,944
|
|
|
4,120
|
|
|
8,976
|
|
|
8,665
|
|
||||
Net Income
|
$
|
4,074
|
|
|
$
|
4,246
|
|
|
$
|
9,234
|
|
|
$
|
8,912
|
|
|
|
|
|
|
|
|
|
||||||||
Basic Earnings Per Common Share
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Verizon
|
$
|
0.95
|
|
|
$
|
1.00
|
|
|
$
|
2.17
|
|
|
$
|
2.10
|
|
Weighted-average shares outstanding (in millions)
|
4,138
|
|
|
4,135
|
|
|
4,138
|
|
|
4,120
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Diluted Earnings Per Common Share
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Verizon
|
$
|
0.95
|
|
|
$
|
1.00
|
|
|
$
|
2.17
|
|
|
$
|
2.10
|
|
Weighted-average shares outstanding (in millions)
|
4,139
|
|
|
4,139
|
|
|
4,140
|
|
|
4,123
|
|
Condensed Consolidated Statements of Comprehensive Income
Verizon Communications Inc. and Subsidiaries
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
|
June 30,
|
|
|
June 30,
|
|
||||||||||
(dollars in millions) (unaudited)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net Income
|
$
|
4,074
|
|
|
$
|
4,246
|
|
|
$
|
9,234
|
|
|
$
|
8,912
|
|
Other Comprehensive Income (Loss), Net of Tax (Expense) Benefit
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments, net of tax of $3, $13, $(2) and $6
|
(67
|
)
|
|
(176
|
)
|
|
(43
|
)
|
|
(83
|
)
|
||||
Unrealized gain (loss) on cash flow hedges, net of tax of $193, $55, $198 and $(125)
|
(537
|
)
|
|
(152
|
)
|
|
(550
|
)
|
|
349
|
|
||||
Unrealized gain (loss) on marketable securities, net of tax of $0, $0, $(2) and $1
|
4
|
|
|
1
|
|
|
8
|
|
|
(4
|
)
|
||||
Defined benefit pension and postretirement plans, net of tax of $56, $58, $112 and $118
|
(169
|
)
|
|
(173
|
)
|
|
(338
|
)
|
|
(346
|
)
|
||||
Other comprehensive loss attributable to Verizon
|
(769
|
)
|
|
(500
|
)
|
|
(923
|
)
|
|
(84
|
)
|
||||
Total Comprehensive Income
|
$
|
3,305
|
|
|
$
|
3,746
|
|
|
$
|
8,311
|
|
|
$
|
8,828
|
|
|
|
|
|
|
|
|
|
||||||||
Comprehensive income attributable to noncontrolling interests
|
$
|
130
|
|
|
$
|
126
|
|
|
$
|
258
|
|
|
$
|
247
|
|
Comprehensive income attributable to Verizon
|
3,175
|
|
|
3,620
|
|
|
8,053
|
|
|
8,581
|
|
||||
Total Comprehensive Income
|
$
|
3,305
|
|
|
$
|
3,746
|
|
|
$
|
8,311
|
|
|
$
|
8,828
|
|
Condensed Consolidated Balance Sheets
Verizon Communications Inc. and Subsidiaries
|
|
At June 30,
|
|
|
At December 31,
|
|
||
(dollars in millions, except per share amounts) (unaudited)
|
2019
|
|
|
2018
|
|
||
|
|
|
|
||||
Assets
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,949
|
|
|
$
|
2,745
|
|
Accounts receivable, net of allowances of $745 and $765
|
24,926
|
|
|
25,102
|
|
||
Inventories
|
1,167
|
|
|
1,336
|
|
||
Prepaid expenses and other
|
5,266
|
|
|
5,453
|
|
||
Total current assets
|
33,308
|
|
|
34,636
|
|
||
|
|
|
|
||||
Property, plant and equipment
|
257,395
|
|
|
252,835
|
|
||
Less accumulated depreciation
|
169,577
|
|
|
163,549
|
|
||
Property, plant and equipment, net
|
87,818
|
|
|
89,286
|
|
||
|
|
|
|
||||
Investments in unconsolidated businesses
|
650
|
|
|
671
|
|
||
Wireless licenses
|
94,333
|
|
|
94,130
|
|
||
Goodwill
|
24,632
|
|
|
24,614
|
|
||
Other intangible assets, net
|
9,474
|
|
|
9,775
|
|
||
Operating lease right-of-use assets
|
22,467
|
|
|
—
|
|
||
Other assets
|
10,426
|
|
|
11,717
|
|
||
Total assets
|
$
|
283,108
|
|
|
$
|
264,829
|
|
|
|
|
|
||||
Liabilities and Equity
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Debt maturing within one year
|
$
|
8,773
|
|
|
$
|
7,190
|
|
Accounts payable and accrued liabilities
|
17,633
|
|
|
22,501
|
|
||
Current operating lease liabilities
|
3,154
|
|
|
—
|
|
||
Other current liabilities
|
8,654
|
|
|
8,239
|
|
||
Total current liabilities
|
38,214
|
|
|
37,930
|
|
||
|
|
|
|
||||
Long-term debt
|
104,598
|
|
|
105,873
|
|
||
Employee benefit obligations
|
18,040
|
|
|
18,599
|
|
||
Deferred income taxes
|
34,225
|
|
|
33,795
|
|
||
Non-current operating lease liabilities
|
18,254
|
|
|
—
|
|
||
Other liabilities
|
11,830
|
|
|
13,922
|
|
||
Total long-term liabilities
|
186,947
|
|
|
172,189
|
|
||
|
|
|
|
||||
Commitments and Contingencies (Note 12)
|
|
|
|
||||
|
|
|
|
||||
Equity
|
|
|
|
||||
Series preferred stock ($0.10 par value; 250,000,000 shares authorized; none issued)
|
—
|
|
|
—
|
|
||
Common stock ($0.10 par value; 6,250,000,000 shares authorized in each period; 4,291,433,646 issued in each period)
|
429
|
|
|
429
|
|
||
Additional paid in capital
|
13,419
|
|
|
13,437
|
|
||
Retained earnings
|
47,945
|
|
|
43,542
|
|
||
Accumulated other comprehensive income
|
1,447
|
|
|
2,370
|
|
||
Common stock in treasury, at cost (155,668,837 and 159,400,267 shares outstanding)
|
(6,823
|
)
|
|
(6,986
|
)
|
||
Deferred compensation – employee stock ownership plans and other
|
165
|
|
|
353
|
|
||
Noncontrolling interests
|
1,365
|
|
|
1,565
|
|
||
Total equity
|
57,947
|
|
|
54,710
|
|
||
Total liabilities and equity
|
$
|
283,108
|
|
|
$
|
264,829
|
|
Condensed Consolidated Statements of Cash Flows
Verizon Communications Inc. and Subsidiaries
|
|
Six Months Ended
|
|
|||||
|
June 30,
|
|
|||||
(dollars in millions) (unaudited)
|
2019
|
|
|
2018
|
|
||
|
|
|
|
||||
Cash Flows from Operating Activities
|
|
|
|
||||
Net Income
|
$
|
9,234
|
|
|
$
|
8,912
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization expense
|
8,463
|
|
|
8,674
|
|
||
Employee retirement benefits
|
(294
|
)
|
|
(300
|
)
|
||
Deferred income taxes
|
588
|
|
|
1,354
|
|
||
Provision for uncollectible accounts
|
738
|
|
|
462
|
|
||
Equity in losses of unconsolidated businesses, net of dividends received
|
50
|
|
|
268
|
|
||
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses
|
(4,593
|
)
|
|
(1,538
|
)
|
||
Discretionary employee benefits contributions
|
(300
|
)
|
|
(1,679
|
)
|
||
Other, net
|
1,950
|
|
|
280
|
|
||
Net cash provided by operating activities
|
15,836
|
|
|
16,433
|
|
||
|
|
|
|
||||
Cash Flows from Investing Activities
|
|
|
|
||||
Capital expenditures (including capitalized software)
|
(7,967
|
)
|
|
(7,838
|
)
|
||
Acquisitions of businesses, net of cash acquired
|
(28
|
)
|
|
(38
|
)
|
||
Acquisitions of wireless licenses
|
(199
|
)
|
|
(1,155
|
)
|
||
Other, net
|
(395
|
)
|
|
303
|
|
||
Net cash used in investing activities
|
(8,589
|
)
|
|
(8,728
|
)
|
||
|
|
|
|
||||
Cash Flows from Financing Activities
|
|
|
|
||||
Proceeds from long-term borrowings
|
6,237
|
|
|
4,584
|
|
||
Proceeds from asset-backed long-term borrowings
|
3,982
|
|
|
1,716
|
|
||
Repayments of long-term borrowings and finance lease obligations
|
(9,630
|
)
|
|
(6,568
|
)
|
||
Repayments of asset-backed long-term borrowings
|
(2,817
|
)
|
|
(2,000
|
)
|
||
Dividends paid
|
(4,981
|
)
|
|
(4,845
|
)
|
||
Other, net
|
(834
|
)
|
|
(752
|
)
|
||
Net cash used in financing activities
|
(8,043
|
)
|
|
(7,865
|
)
|
||
|
|
|
|
||||
Decrease in cash, cash equivalents and restricted cash
|
(796
|
)
|
|
(160
|
)
|
||
Cash, cash equivalents and restricted cash, beginning of period
|
3,916
|
|
|
2,888
|
|
||
Cash, cash equivalents and restricted cash, end of period (Note 1)
|
$
|
3,120
|
|
|
$
|
2,728
|
|
Notes to Condensed Consolidated Financial Statements (Unaudited)
Verizon Communications Inc. and Subsidiaries
|
Note 1. Basis of Presentation
|
|
At June 30,
|
|
|
At December 31,
|
|
|
Increase / (Decrease)
|
|
|||
(dollars in millions)
|
2019
|
|
|
2018
|
|
|
|||||
Cash and cash equivalents
|
$
|
1,949
|
|
|
$
|
2,745
|
|
|
$
|
(796
|
)
|
Restricted cash:
|
|
|
|
|
|
||||||
Prepaid expenses and other
|
1,055
|
|
|
1,047
|
|
|
8
|
|
|||
Other assets
|
116
|
|
|
124
|
|
|
(8
|
)
|
|||
Cash, cash equivalents and restricted cash
|
$
|
3,120
|
|
|
$
|
3,916
|
|
|
$
|
(796
|
)
|
(dollars in millions)
|
At December 31, 2018
|
|
|
Adjustments due to
Topic 842
|
|
|
At January 1, 2019
|
|
|||
Prepaid expenses and other
|
$
|
5,453
|
|
|
$
|
(329
|
)
|
|
$
|
5,124
|
|
Operating lease right-of-use assets
|
—
|
|
|
23,241
|
|
|
23,241
|
|
|||
Other assets
|
11,717
|
|
|
(2,048
|
)
|
|
9,669
|
|
|||
Accounts payable and accrued liabilities
|
22,501
|
|
|
(3
|
)
|
|
22,498
|
|
|||
Other current liabilities
|
8,239
|
|
|
(2
|
)
|
|
8,237
|
|
|||
Current operating lease liabilities
|
—
|
|
|
2,931
|
|
|
2,931
|
|
|||
Deferred income taxes
|
33,795
|
|
|
139
|
|
|
33,934
|
|
|||
Non-current operating lease liabilities
|
—
|
|
|
19,203
|
|
|
19,203
|
|
|||
Other liabilities
|
13,922
|
|
|
(1,815
|
)
|
|
12,107
|
|
|||
Retained earnings
|
43,542
|
|
|
410
|
|
|
43,952
|
|
|||
Noncontrolling interests
|
1,565
|
|
|
1
|
|
|
1,566
|
|
Note 2. Revenues and Contract Costs
|
|
At June 30,
|
|
|
At January 1,
|
|
|
At June 30,
|
|
|
At January 1,
|
|
||||
(dollars in millions)
|
2019
|
|
|
2019
|
|
|
2018
|
|
|
2018
|
|
||||
Receivables(1)
|
$
|
12,173
|
|
|
$
|
12,104
|
|
|
$
|
11,412
|
|
|
$
|
12,073
|
|
Device payment plan agreement receivables(2)
|
10,053
|
|
|
8,940
|
|
|
5,258
|
|
|
1,461
|
|
(1)
|
Balances do not include receivables related to the following contracts: leasing arrangements (such as towers), captive reinsurance arrangements primarily related to wireless device insurance and the interest on equipment financed on a device payment plan agreement when sold to the customer by an authorized agent.
|
(2)
|
Included in device payment plan agreement receivables presented in Note 7. Balances do not include receivables related to contracts completed prior to January 1, 2018 and receivables derived from the sale of equipment on a device payment plan through an authorized agent.
|
|
At June 30,
|
|
|
At January 1,
|
|
|
At June 30,
|
|
|
At January 1,
|
|
||||
|
2019
|
|
|
2019
|
|
|
2018
|
|
|
2018
|
|
||||
Contract asset
|
$
|
1,059
|
|
|
$
|
1,003
|
|
|
$
|
1,059
|
|
|
$
|
1,170
|
|
Contract liability (1)
|
4,946
|
|
|
4,943
|
|
|
4,652
|
|
|
4,452
|
|
|
At June 30,
|
|
|
At December 31,
|
|
||
(dollars in millions)
|
2019
|
|
|
2018
|
|
||
Assets
|
|
|
|
||||
Prepaid expenses and other
|
$
|
812
|
|
|
$
|
757
|
|
Other assets
|
247
|
|
|
246
|
|
||
Total
|
$
|
1,059
|
|
|
$
|
1,003
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Other current liabilities
|
$
|
4,323
|
|
|
$
|
4,207
|
|
Other liabilities
|
623
|
|
|
736
|
|
||
Total
|
$
|
4,946
|
|
|
$
|
4,943
|
|
|
At June 30,
|
|
|
At December 31,
|
|
||
(dollars in millions)
|
2019
|
|
|
2018
|
|
||
Assets
|
|
|
|
||||
Prepaid expenses and other
|
$
|
2,352
|
|
|
$
|
2,083
|
|
Other assets
|
1,774
|
|
|
1,812
|
|
||
Total
|
$
|
4,126
|
|
|
$
|
3,895
|
|
Note 3. Acquisitions and Divestitures
|
Note 4. Wireless Licenses, Goodwill, and Other Intangible Assets
|
|
At June 30,
|
|
At December 31,
|
|
||
(dollars in millions)
|
2019
|
|
2018
|
|
||
Wireless licenses
|
$
|
94,333
|
|
$
|
94,130
|
|
(dollars in millions)
|
Consumer
|
|
|
Business
|
|
|
Wireless
|
|
|
Wireline
|
|
|
Other
|
|
|
Total
|
|
||||||
Balance at January 1, 2019 (1)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18,397
|
|
|
$
|
3,871
|
|
|
$
|
2,346
|
|
|
$
|
24,614
|
|
Acquisitions
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
20
|
|
||||||
Reclassifications, adjustments and other
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
Balance at March 31, 2019
|
—
|
|
|
—
|
|
|
18,397
|
|
|
3,892
|
|
|
2,346
|
|
|
24,635
|
|
||||||
Reporting Unit reallocation (2)
|
17,104
|
|
|
7,269
|
|
|
(18,397
|
)
|
|
(3,892
|
)
|
|
(2,084
|
)
|
|
—
|
|
||||||
Balance at April 1, 2019
|
17,104
|
|
|
7,269
|
|
|
—
|
|
|
—
|
|
|
262
|
|
|
24,635
|
|
||||||
Acquisitions
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Reclassifications, adjustments and other
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
||||||
Balance at June 30, 2019
|
$
|
17,104
|
|
|
$
|
7,266
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
262
|
|
|
$
|
24,632
|
|
|
At June 30, 2019
|
|
|
At December 31, 2018
|
|
||||||||||||||||||
(dollars in millions)
|
Gross
Amount
|
|
|
Accumulated
Amortization
|
|
|
Net
Amount
|
|
|
Gross
Amount
|
|
|
Accumulated
Amortization
|
|
|
Net
Amount
|
|
||||||
Customer lists (8 to 13 years)
|
$
|
3,948
|
|
|
$
|
(1,299
|
)
|
|
$
|
2,649
|
|
|
$
|
3,951
|
|
|
$
|
(1,121
|
)
|
|
$
|
2,830
|
|
Non-network internal-use software (3 to 7 years)
|
19,354
|
|
|
(13,589
|
)
|
|
5,765
|
|
|
18,603
|
|
|
(12,785
|
)
|
|
5,818
|
|
||||||
Other (2 to 25 years)
|
1,985
|
|
|
(925
|
)
|
|
1,060
|
|
|
1,988
|
|
|
(861
|
)
|
|
1,127
|
|
||||||
Total
|
$
|
25,287
|
|
|
$
|
(15,813
|
)
|
|
$
|
9,474
|
|
|
$
|
24,542
|
|
|
$
|
(14,767
|
)
|
|
$
|
9,775
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||
(dollars in millions)
|
June 30,
|
|
|
June 30,
|
|
||
2019
|
$
|
569
|
|
|
$
|
1,124
|
|
2018
|
557
|
|
|
1,091
|
|
Years
|
(dollars in millions)
|
|
|
Remainder of 2019
|
$
|
1,086
|
|
2020
|
1,903
|
|
|
2021
|
1,610
|
|
|
2022
|
1,335
|
|
|
2023
|
1,049
|
|
|
2024
|
795
|
|
Note 5. Leasing Arrangements
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||
|
|
June 30,
|
|
|
June 30,
|
|
||
(dollars in millions)
|
Classification
|
2019
|
|
|
2019
|
|
||
Operating lease cost (1)
|
Cost of services
Selling, general and administrative expense
|
$
|
1,178
|
|
|
$
|
2,348
|
|
Finance lease cost:
|
|
|
|
|
||||
Amortization of right-of-use assets
|
Depreciation and amortization expense
|
82
|
|
|
168
|
|
||
Interest on lease liabilities
|
Interest expense
|
10
|
|
|
19
|
|
||
Short-term lease cost (1)
|
Cost of services
Selling, general and administrative expense
|
8
|
|
|
24
|
|
||
Variable lease cost (1)
|
Cost of services
Selling, general and administrative expense |
51
|
|
|
108
|
|
||
Sublease income
|
Service revenues and other
|
(67
|
)
|
|
(134
|
)
|
||
Total net lease cost
|
|
$
|
1,262
|
|
|
$
|
2,533
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
(dollars in millions)
|
2019
|
|
|
Cash Flows from Operating Activities
|
|
||
Cash paid for amounts included in the measurement of lease liabilities
|
|
||
Operating cash flows for operating leases
|
$
|
(2,089
|
)
|
Operating cash flows for finance leases
|
(19
|
)
|
|
Cash Flows from Financing Activities
|
|
||
Financing cash flows for finance leases
|
(178
|
)
|
|
Supplemental lease cash flow disclosures
|
|
||
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities
|
1,300
|
|
|
Right-of-use assets obtained in exchange for new finance lease liabilities
|
221
|
|
|
At June 30,
|
|
|
(dollars in millions)
|
2019
|
|
|
Assets
|
|
||
Property, plant and equipment, net
|
$
|
823
|
|
|
|
||
Liabilities
|
|
||
Debt maturing within one year
|
$
|
321
|
|
Long-term debt
|
627
|
|
|
Total Finance lease liabilities
|
$
|
948
|
|
|
At June 30,
|
|
|
2019
|
|
Weighted-average remaining lease term (years)
|
|
|
Operating Leases
|
9
|
|
Finance Leases
|
4
|
|
Weighted-average discount rate
|
|
|
Operating Leases
|
4.1
|
%
|
Finance Leases
|
4.0
|
%
|
(dollars in millions)
|
Operating Leases
|
|
|
Finance Leases
|
|
||
Remainder of 2019
|
$
|
1,996
|
|
|
$
|
178
|
|
2020
|
3,840
|
|
|
291
|
|
||
2021
|
3,460
|
|
|
198
|
|
||
2022
|
3,067
|
|
|
137
|
|
||
2023
|
2,713
|
|
|
88
|
|
||
Thereafter
|
11,094
|
|
|
144
|
|
||
Total lease payments
|
26,170
|
|
|
1,036
|
|
||
Less interest
|
(4,762
|
)
|
|
(88
|
)
|
||
Present value of lease liabilities
|
21,408
|
|
|
948
|
|
||
Less current obligation
|
(3,154
|
)
|
|
(321
|
)
|
||
Long-term obligation at June 30, 2019
|
$
|
18,254
|
|
|
$
|
627
|
|
Note 6. Debt
|
(dollars in millions)
|
Principal Amount Exchanged
|
|
|
Principal Amount Issued
|
|
||
Verizon 1.750% - 5.150% notes and floating rate notes, due 2021 - 2025
|
$
|
3,892
|
|
|
$
|
—
|
|
GTE LLC 8.750% debentures, due 2021
|
21
|
|
|
—
|
|
||
Verizon 4.016% notes due 2029 (1)
|
—
|
|
|
4,000
|
|
||
Total
|
$
|
3,913
|
|
|
$
|
4,000
|
|
(dollars in millions)
|
Principal Amount Purchased
|
|
|
Cash Consideration (1)
|
|
||
Verizon 5.012% notes due 2054
|
$
|
3,192
|
|
|
$
|
3,626
|
|
Verizon 4.672% notes due 2055
|
1,308
|
|
|
1,404
|
|
||
Total
|
$
|
4,500
|
|
|
$
|
5,030
|
|
(dollars in millions)
|
Principal Redeemed / Repaid
|
|
|
Amount Paid as % of Principal (1)
|
|
|
March 2019
|
|
|
|
|||
Verizon 5.900% notes due 2054
|
$
|
500
|
|
|
100.000
|
%
|
Verizon 1.375% notes due 2019
|
206
|
|
|
100.000
|
%
|
|
Verizon 1.750% notes due 2021
|
621
|
|
|
100.000
|
%
|
|
Verizon 3.000% notes due 2021
|
930
|
|
|
101.061
|
%
|
|
Verizon 3.500% notes due 2021
|
315
|
|
|
102.180
|
%
|
|
Open market repurchases of various Verizon notes
|
163
|
|
|
Various
|
|
|
March 2019 total
|
2,735
|
|
|
|
||
|
|
|
|
|||
June 2019
|
|
|
|
|||
Verizon 2.625% notes due 2020
|
831
|
|
|
100.037
|
%
|
|
Verizon 3.500% notes due 2021
|
736
|
|
|
102.238
|
%
|
|
Verizon floating rate (LIBOR + 0.770%) notes due 2019
|
229
|
|
|
100.000
|
%
|
|
June 2019 total
|
1,796
|
|
|
|
||
Total
|
$
|
4,531
|
|
|
|
(amounts in millions)
|
Principal Amount Issued
|
|
|
Net Proceeds (1)
|
|
||
March 2019
|
|
|
|
||||
Verizon 3.875% notes due 2029 (2)
|
$
|
1,000
|
|
|
$
|
994
|
|
Verizon 5.000% notes due 2051
|
510
|
|
|
506
|
|
||
March 2019 total
|
$
|
1,510
|
|
|
$
|
1,500
|
|
|
|
|
|
||||
June 2019
|
|
|
|
||||
Verizon 0.875% notes due 2027
|
€
|
1,250
|
|
|
1,391
|
|
|
Verizon 1.250% notes due 2030
|
€
|
1,250
|
|
|
1,385
|
|
|
Verizon 2.500% notes due 2031
|
£
|
500
|
|
|
647
|
|
|
June 2019 total
|
|
|
|
3,423
|
|
||
Total
|
|
|
$
|
4,923
|
|
(dollars in millions)
|
Interest Rates %
|
|
Expected Weighted-average Life to Maturity (in years)
|
Principal Amount Issued
|
|
|
March 2019
|
|
|
|
|
||
A-1a Senior class notes
|
2.930
|
|
2.50
|
$
|
900
|
|
A-1b Senior floating rate class notes
|
LIBOR + 0.330
|
(1)
|
2.50
|
100
|
|
|
B Junior class notes
|
3.020
|
|
3.22
|
69
|
|
|
C Junior class notes
|
3.220
|
|
3.40
|
53
|
|
|
March 2019 total
|
|
|
|
1,122
|
|
|
|
|
|
|
|
||
June 2019
|
|
|
|
|
||
A-1a Senior class notes
|
2.330
|
|
2.52
|
855
|
|
|
A-1b Senior floating rate class notes
|
LIBOR + 0.450
|
(1)
|
2.52
|
145
|
|
|
B Junior class notes
|
2.400
|
|
3.28
|
69
|
|
|
C Junior class notes
|
2.600
|
|
3.47
|
53
|
|
|
June 2019 total
|
|
|
|
1,122
|
|
|
Total
|
|
|
|
$
|
2,244
|
|
|
At June 30,
|
|
|
At December 31,
|
|
||
(dollars in millions)
|
2019
|
|
|
2018
|
|
||
Assets
|
|
|
|
||||
Account receivable, net
|
$
|
10,095
|
|
|
$
|
8,861
|
|
Prepaid expenses and other
|
1,020
|
|
|
989
|
|
||
Other assets
|
3,353
|
|
|
2,725
|
|
||
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Accounts payable and accrued liabilities
|
11
|
|
|
7
|
|
||
Short-term portion of long-term debt
|
4,477
|
|
|
5,352
|
|
||
Long-term debt
|
6,775
|
|
|
4,724
|
|
Note 7. Wireless Device Payment Plans
|
|
At June 30,
|
|
|
At December 31,
|
|
||
(dollars in millions)
|
2019
|
|
|
2018
|
|
||
Device payment plan agreement receivables, gross
|
$
|
18,327
|
|
|
$
|
19,313
|
|
Unamortized imputed interest
|
(455
|
)
|
|
(546
|
)
|
||
Device payment plan agreement receivables, net of unamortized imputed interest
|
17,872
|
|
|
18,767
|
|
||
Allowance for credit losses
|
(487
|
)
|
|
(597
|
)
|
||
Device payment plan agreement receivables, net
|
$
|
17,385
|
|
|
$
|
18,170
|
|
|
|
|
|
||||
Classified in our condensed consolidated balance sheets:
|
|
|
|
||||
Accounts receivable, net
|
$
|
12,486
|
|
|
$
|
12,624
|
|
Other assets
|
4,899
|
|
|
5,546
|
|
||
Device payment plan agreement receivables, net
|
$
|
17,385
|
|
|
$
|
18,170
|
|
|
At June 30,
|
|
|
At December 31,
|
|
||
(dollars in millions)
|
2019
|
|
|
2018
|
|
||
Unbilled
|
$
|
17,042
|
|
|
$
|
18,043
|
|
Billed:
|
|
|
|
||||
Current
|
1,028
|
|
|
986
|
|
||
Past due
|
257
|
|
|
284
|
|
||
Device payment plan agreement receivables, gross
|
$
|
18,327
|
|
|
$
|
19,313
|
|
(dollars in millions)
|
2019
|
|
|
2018
|
|
||
Balance at January 1,
|
$
|
597
|
|
|
$
|
848
|
|
Bad debt expense
|
401
|
|
|
237
|
|
||
Write-offs
|
(511
|
)
|
|
(331
|
)
|
||
Balance at June 30,
|
$
|
487
|
|
|
$
|
754
|
|
Note 8. Fair Value Measurements
|
(dollars in millions)
|
Level 1(1)
|
|
|
Level 2(2)
|
|
|
Level 3(3)
|
|
|
Total
|
|
||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Other assets:
|
|
|
|
|
|
|
|
||||||||
Fixed income securities
|
$
|
—
|
|
|
$
|
434
|
|
|
$
|
—
|
|
|
$
|
434
|
|
Interest rate swaps
|
—
|
|
|
529
|
|
|
—
|
|
|
529
|
|
||||
Cross currency swaps
|
—
|
|
|
170
|
|
|
—
|
|
|
170
|
|
||||
Interest rate caps
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||
Foreign exchange forwards
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
||||
Total
|
$
|
—
|
|
|
$
|
1,140
|
|
|
$
|
—
|
|
|
$
|
1,140
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Other liabilities:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
—
|
|
|
$
|
189
|
|
|
$
|
—
|
|
|
$
|
189
|
|
Cross currency swaps
|
—
|
|
|
814
|
|
|
—
|
|
|
814
|
|
||||
Forward starting interest rate swaps
|
—
|
|
|
536
|
|
|
—
|
|
|
536
|
|
||||
Interest rate caps
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Total
|
$
|
—
|
|
|
$
|
1,540
|
|
|
$
|
—
|
|
|
$
|
1,540
|
|
(dollars in millions)
|
Level 1(1)
|
|
|
Level 2(2)
|
|
|
Level 3(3)
|
|
|
Total
|
|
||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Other assets:
|
|
|
|
|
|
|
|
||||||||
Fixed income securities
|
$
|
—
|
|
|
$
|
405
|
|
|
$
|
—
|
|
|
$
|
405
|
|
Interest rate swaps
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||
Cross currency swaps
|
—
|
|
|
220
|
|
|
—
|
|
|
220
|
|
||||
Interest rate caps
|
—
|
|
|
14
|
|
|
—
|
|
|
14
|
|
||||
Total
|
$
|
—
|
|
|
$
|
642
|
|
|
$
|
—
|
|
|
$
|
642
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Other liabilities:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
—
|
|
|
$
|
813
|
|
|
$
|
—
|
|
|
$
|
813
|
|
Cross currency swaps
|
—
|
|
|
536
|
|
|
—
|
|
|
536
|
|
||||
Forward starting interest rate swaps
|
—
|
|
|
60
|
|
|
—
|
|
|
60
|
|
||||
Interest rate caps
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||
Total
|
$
|
—
|
|
|
$
|
1,413
|
|
|
$
|
—
|
|
|
$
|
1,413
|
|
(1)
|
Quoted prices in active markets for identical assets or liabilities
|
(2)
|
Observable inputs other than quoted prices in active markets for identical assets and liabilities
|
(3)
|
Unobservable pricing inputs in the market
|
|
At June 30,
|
|
|
At December 31,
|
|
||||||||||
|
2019
|
|
|
2018
|
|
||||||||||
(dollars in millions)
|
Carrying
Amount
|
|
|
Fair Value
|
|
|
Carrying
Amount
|
|
|
Fair
Value
|
|
||||
Short- and long-term debt, excluding finance leases
|
$
|
112,424
|
|
|
$
|
129,342
|
|
|
$
|
112,159
|
|
|
$
|
118,535
|
|
|
At June 30,
|
|
|
At December 31,
|
|
||
(dollars in millions)
|
2019
|
|
|
2018
|
|
||
Interest rate swaps
|
$
|
19,084
|
|
|
$
|
19,813
|
|
Cross currency swaps
|
20,091
|
|
|
16,638
|
|
||
Forward starting interest rate swaps
|
3,000
|
|
|
4,000
|
|
||
Interest rate caps
|
1,292
|
|
|
2,218
|
|
||
Foreign exchange forwards
|
1,035
|
|
|
600
|
|
|
At June 30,
|
|
|
At December 31,
|
|
||
(dollars in millions)
|
2019
|
|
|
2018
|
|
||
Carrying amount of hedged liabilities
|
$
|
19,341
|
|
|
$
|
18,903
|
|
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities
|
373
|
|
|
(785
|
)
|
Note 9. Employee Benefits
|
|
(dollars in millions)
|
|
|||||||||||||
|
Pension
|
|
Health Care and Life
|
|
|||||||||||
Three Months Ended June 30,
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Service cost - Cost of services
|
$
|
50
|
|
|
$
|
59
|
|
|
$
|
19
|
|
|
$
|
26
|
|
Service cost - Selling, general and administrative expense
|
12
|
|
|
14
|
|
|
5
|
|
|
6
|
|
||||
Service cost
|
$
|
62
|
|
|
$
|
73
|
|
|
$
|
24
|
|
|
$
|
32
|
|
|
|
|
|
|
|
|
|
||||||||
Amortization of prior service cost (credit)
|
$
|
16
|
|
|
$
|
10
|
|
|
$
|
(243
|
)
|
|
$
|
(244
|
)
|
Expected return on plan assets
|
(282
|
)
|
|
(329
|
)
|
|
(10
|
)
|
|
(11
|
)
|
||||
Interest cost
|
176
|
|
|
166
|
|
|
158
|
|
|
154
|
|
||||
Other components
|
$
|
(90
|
)
|
|
$
|
(153
|
)
|
|
$
|
(95
|
)
|
|
$
|
(101
|
)
|
|
|
|
|
|
|
|
|
||||||||
Total
|
$
|
(28
|
)
|
|
$
|
(80
|
)
|
|
$
|
(71
|
)
|
|
$
|
(69
|
)
|
|
(dollars in millions)
|
|
|||||||||||||
|
Pension
|
|
Health Care and Life
|
|
|||||||||||
Six Months Ended June 30,
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Service cost - Cost of services
|
$
|
100
|
|
|
$
|
117
|
|
|
$
|
39
|
|
|
$
|
52
|
|
Service cost - Selling, general and administrative expense
|
23
|
|
|
28
|
|
|
9
|
|
|
12
|
|
||||
Service cost
|
$
|
123
|
|
|
$
|
145
|
|
|
$
|
48
|
|
|
$
|
64
|
|
|
|
|
|
|
|
|
|
||||||||
Amortization of prior service cost (credit)
|
$
|
31
|
|
|
$
|
20
|
|
|
$
|
(486
|
)
|
|
$
|
(488
|
)
|
Expected return on plan assets
|
(564
|
)
|
|
(658
|
)
|
|
(19
|
)
|
|
(22
|
)
|
||||
Interest cost
|
354
|
|
|
332
|
|
|
315
|
|
|
307
|
|
||||
Remeasurement gain, net
|
(96
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other components
|
$
|
(275
|
)
|
|
$
|
(306
|
)
|
|
$
|
(190
|
)
|
|
$
|
(203
|
)
|
|
|
|
|
|
|
|
|
||||||||
Total
|
$
|
(152
|
)
|
|
$
|
(161
|
)
|
|
$
|
(142
|
)
|
|
$
|
(139
|
)
|
Note 10. Equity and Accumulated Other Comprehensive Income
|
(dollars in millions, except per share amounts, and shares in thousands)
|
||||||||||||||
Three months ended June 30,
|
2019
|
|
|
|
|
2018
|
|
|
|
|
||||
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
|
||
Common Stock
|
|
|
|
|
|
|
|
|
||||||
Balance at beginning of period
|
4,291,434
|
|
|
$
|
429
|
|
|
4,291,422
|
|
|
$
|
429
|
|
|
Common shares issued
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
||
Balance at end of period
|
4,291,434
|
|
|
429
|
|
|
4,291,434
|
|
|
429
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
Additional Paid In Capital
|
|
|
|
|
|
|
|
|
||||||
Balance at beginning of period
|
|
|
13,418
|
|
|
|
|
13,437
|
|
|
||||
Other
|
|
|
1
|
|
|
|
|
1
|
|
|
||||
Balance at end of period
|
|
|
13,419
|
|
|
|
|
13,438
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||
Retained Earnings
|
|
|
|
|
|
|
|
|
||||||
Balance at beginning of period
|
|
|
46,493
|
|
|
|
|
39,974
|
|
|
||||
Net income attributable to Verizon
|
|
|
3,944
|
|
|
|
|
4,120
|
|
|
||||
Dividends declared ($0.6025, $0.5900 per share)
|
|
|
(2,492
|
)
|
|
|
|
(2,437
|
)
|
|
||||
Balance at end of period
|
|
|
47,945
|
|
|
|
|
41,657
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||
Accumulated Other Comprehensive Income
|
|
|
|
|
|
|
|
|
||||||
Balance at beginning of period attributable to Verizon
|
|
|
2,216
|
|
|
|
|
3,705
|
|
|
||||
Foreign currency translation adjustments
|
|
|
(67
|
)
|
|
|
|
(176
|
)
|
|
||||
Unrealized loss on cash flow hedges
|
|
|
(537
|
)
|
|
|
|
(152
|
)
|
|
||||
Unrealized gain on marketable securities
|
|
|
4
|
|
|
|
|
1
|
|
|
||||
Defined benefit pension and postretirement plans
|
|
|
(169
|
)
|
|
|
|
(173
|
)
|
|
||||
Other comprehensive loss
|
|
|
(769
|
)
|
|
|
|
(500
|
)
|
|
||||
Balance at end of period attributable to Verizon
|
|
|
1,447
|
|
|
|
|
3,205
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||
Treasury Stock
|
|
|
|
|
|
|
|
|
||||||
Balance at beginning of period
|
(155,727
|
)
|
|
(6,825
|
)
|
|
(159,526
|
)
|
|
(6,992
|
)
|
|
||
Employee plans
|
58
|
|
|
2
|
|
|
28
|
|
|
2
|
|
|
||
Shareholder plans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||
Balance at end of period
|
(155,669
|
)
|
|
(6,823
|
)
|
|
(159,498
|
)
|
|
(6,990
|
)
|
|
||
|
|
|
|
|
|
|
|
|
||||||
Deferred Compensation-ESOPs and Other
|
|
|
|
|
|
|
|
|
||||||
Balance at beginning of period
|
|
|
125
|
|
|
|
|
228
|
|
|
||||
Restricted stock equity grant
|
|
|
44
|
|
|
|
|
38
|
|
|
||||
Amortization
|
|
|
(4
|
)
|
|
|
|
19
|
|
|
||||
Balance at end of period
|
|
|
165
|
|
|
|
|
285
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||
Noncontrolling Interests
|
|
|
|
|
|
|
|
|
||||||
Balance at beginning of period
|
|
|
1,604
|
|
|
|
|
1,564
|
|
|
||||
Total comprehensive income
|
|
|
130
|
|
|
|
|
126
|
|
|
||||
Distributions and other
|
|
|
(369
|
)
|
|
|
|
(139
|
)
|
|
||||
Balance at end of period
|
|
|
1,365
|
|
|
|
|
1,551
|
|
|
||||
Total Equity
|
|
|
$
|
57,947
|
|
|
|
|
$
|
53,575
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(dollars in millions, except per share amounts, and shares in thousands)
|
||||||||||||||
Six months ended June 30,
|
2019
|
|
|
|
|
2018
|
|
|
|
|
||||
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
|
||
Common Stock
|
|
|
|
|
|
|
|
|
||||||
Balance at beginning of year
|
4,291,434
|
|
|
$
|
429
|
|
|
4,242,374
|
|
|
$
|
424
|
|
|
Common shares issued
|
—
|
|
|
—
|
|
|
49,060
|
|
|
5
|
|
|
||
Balance at end of period
|
4,291,434
|
|
|
429
|
|
|
4,291,434
|
|
|
429
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
Additional Paid In Capital
|
|
|
|
|
|
|
|
|
||||||
Balance at beginning of year
|
|
|
13,437
|
|
|
|
|
11,101
|
|
|
||||
Other
|
|
|
(18
|
)
|
|
|
|
2,337
|
|
|
||||
Balance at end of period
|
|
|
13,419
|
|
|
|
|
13,438
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||
Retained Earnings
|
|
|
|
|
|
|
|
|
||||||
Balance at beginning of year
|
|
|
43,542
|
|
|
|
|
35,635
|
|
|
||||
Opening balance sheet adjustment
|
|
|
410
|
|
(1)
|
|
|
2,232
|
|
(2)
|
||||
Adjusted opening balance
|
|
|
43,952
|
|
|
|
|
37,867
|
|
|
||||
Net income attributable to Verizon
|
|
|
8,976
|
|
|
|
|
8,665
|
|
|
||||
Dividends declared ($1.205, $1.1800 per share)
|
|
|
(4,983
|
)
|
|
|
|
(4,875
|
)
|
|
||||
Balance at end of period
|
|
|
47,945
|
|
|
|
|
41,657
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||
Accumulated Other Comprehensive Income
|
|
|
|
|
|
|
|
|
||||||
Balance at beginning of year attributable to Verizon
|
|
|
2,370
|
|
|
|
|
2,659
|
|
|
||||
Opening balance sheet adjustment
|
|
|
—
|
|
|
|
|
630
|
|
(2)
|
||||
Adjusted opening balance
|
|
|
2,370
|
|
|
|
|
3,289
|
|
|
||||
Foreign currency translation adjustments
|
|
|
(43
|
)
|
|
|
|
(83
|
)
|
|
||||
Unrealized gain (loss) on cash flow hedges
|
|
|
(550
|
)
|
|
|
|
349
|
|
|
||||
Unrealized gain (loss) on marketable securities
|
|
|
8
|
|
|
|
|
(4
|
)
|
|
||||
Defined benefit pension and postretirement plans
|
|
|
(338
|
)
|
|
|
|
(346
|
)
|
|
||||
Other comprehensive loss
|
|
|
(923
|
)
|
|
|
|
(84
|
)
|
|
||||
Balance at end of period attributable to Verizon
|
|
|
1,447
|
|
|
|
|
3,205
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||
Treasury Stock
|
|
|
|
|
|
|
|
|
||||||
Balance at beginning of year
|
(159,400
|
)
|
|
(6,986
|
)
|
|
(162,898
|
)
|
|
(7,139
|
)
|
|
||
Employee plans
|
3,726
|
|
|
163
|
|
|
3,396
|
|
|
149
|
|
|
||
Shareholder plans
|
5
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
||
Balance at end of period
|
(155,669
|
)
|
|
(6,823
|
)
|
|
(159,498
|
)
|
|
(6,990
|
)
|
|
||
|
|
|
|
|
|
|
|
|
||||||
Deferred Compensation-ESOPs and Other
|
|
|
|
|
|
|
|
|
||||||
Balance at beginning of year
|
|
|
353
|
|
|
|
|
416
|
|
|
||||
Restricted stock equity grant
|
|
|
79
|
|
|
|
|
91
|
|
|
||||
Amortization
|
|
|
(267
|
)
|
|
|
|
(222
|
)
|
|
||||
Balance at end of period
|
|
|
165
|
|
|
|
|
285
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||
Noncontrolling Interests
|
|
|
|
|
|
|
|
|
||||||
Balance at beginning of year
|
|
|
1,565
|
|
|
|
|
1,591
|
|
|
||||
Opening balance sheet adjustment
|
|
|
1
|
|
(1)
|
|
|
44
|
|
(2)
|
||||
Adjusted opening balance
|
|
|
1,566
|
|
|
|
|
1,635
|
|
|
||||
Total comprehensive income
|
|
|
258
|
|
|
|
|
247
|
|
|
||||
Distributions and other
|
|
|
(459
|
)
|
|
|
|
(331
|
)
|
|
||||
Balance at end of period
|
|
|
1,365
|
|
|
|
|
1,551
|
|
|
||||
Total Equity
|
|
|
$
|
57,947
|
|
|
|
|
$
|
53,575
|
|
|
(dollars in millions)
|
Foreign
currency
translation
adjustments
|
|
|
Unrealized
gain (loss) on cash
flow hedges
|
|
|
Unrealized
gain on
marketable
securities
|
|
|
Defined
benefit
pension and
postretirement
plans
|
|
|
Total
|
|
|||||
Balance at January 1, 2019
|
$
|
(600
|
)
|
|
$
|
(80
|
)
|
|
$
|
20
|
|
|
$
|
3,030
|
|
|
$
|
2,370
|
|
Other comprehensive income (loss)
|
(43
|
)
|
|
(607
|
)
|
|
8
|
|
|
—
|
|
|
(642
|
)
|
|||||
Amounts reclassified to net income
|
—
|
|
|
57
|
|
|
—
|
|
|
(338
|
)
|
|
(281
|
)
|
|||||
Net other comprehensive income (loss)
|
(43
|
)
|
|
(550
|
)
|
|
8
|
|
|
(338
|
)
|
|
(923
|
)
|
|||||
Balance at June 30, 2019
|
$
|
(643
|
)
|
|
$
|
(630
|
)
|
|
$
|
28
|
|
|
$
|
2,692
|
|
|
$
|
1,447
|
|
Note 11. Segment Information
|
Segment
|
|
Description
|
Verizon Consumer Group
|
|
Our Consumer segment provides consumer-focused wireless and wireline communications services and products. Our wireless services are provided across one of the most extensive wireless networks in the U.S. under the Verizon Wireless brand and through wholesale and other arrangements. Our wireline services are provided in nine states in the Mid-Atlantic and Northeastern U.S., as well as Washington D.C., over our 100% fiber-optic network under the Fios brand and over a traditional copper-based network to customers who are not served by Fios.
|
|
|
|
Verizon
Business Group |
|
Our Business segment provides wireless and wireline communications services and products, video and data services, corporate networking solutions, security and managed network services, local and long distance voice services and network access to deliver various IoT services and products. We provide these products and services to businesses, government customers and wireless and wireline carriers across the U.S. and select products and services to customers around the world.
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
|
June 30,
|
|
|
June 30,
|
|
||||||||||
(dollars in millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
External Operating Revenues
|
|
|
|
|
|
|
|
||||||||
Consumer
|
|
|
|
|
|
|
|
||||||||
Service
|
$
|
16,350
|
|
|
$
|
16,050
|
|
|
$
|
32,611
|
|
|
$
|
31,864
|
|
Wireless equipment
|
3,904
|
|
|
4,251
|
|
|
8,070
|
|
|
8,521
|
|
||||
Other
|
1,680
|
|
|
1,650
|
|
|
3,350
|
|
|
3,130
|
|
||||
Total Consumer
|
21,934
|
|
|
21,951
|
|
|
44,031
|
|
|
43,515
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Business
|
|
|
|
|
|
|
|
||||||||
Global Enterprise
|
2,673
|
|
|
2,808
|
|
|
5,363
|
|
|
5,632
|
|
||||
Small and Medium Business
|
2,781
|
|
|
2,638
|
|
|
5,485
|
|
|
5,166
|
|
||||
Public Sector and Other
|
1,492
|
|
|
1,437
|
|
|
2,963
|
|
|
2,866
|
|
||||
Wholesale
|
810
|
|
|
956
|
|
|
1,650
|
|
|
1,941
|
|
||||
Total Business
|
7,756
|
|
|
7,839
|
|
|
15,461
|
|
|
15,605
|
|
||||
Total reportable segments
|
$
|
29,690
|
|
|
$
|
29,790
|
|
|
$
|
59,492
|
|
|
$
|
59,120
|
|
|
|
|
|
|
|
|
|
||||||||
Intersegment Revenues
|
|
|
|
|
|
|
|
||||||||
Consumer
|
$
|
61
|
|
|
$
|
52
|
|
|
$
|
112
|
|
|
$
|
115
|
|
Business
|
12
|
|
|
12
|
|
|
26
|
|
|
29
|
|
||||
Total reportable segments
|
$
|
73
|
|
|
$
|
64
|
|
|
$
|
138
|
|
|
$
|
144
|
|
|
|
|
|
|
|
|
|
||||||||
Total Operating Revenues
|
|
|
|
|
|
|
|
||||||||
Consumer
|
$
|
21,995
|
|
|
$
|
22,003
|
|
|
$
|
44,143
|
|
|
$
|
43,630
|
|
Business(1)
|
7,768
|
|
|
7,851
|
|
|
15,487
|
|
|
15,634
|
|
||||
Total reportable segments
|
$
|
29,763
|
|
|
$
|
29,854
|
|
|
$
|
59,630
|
|
|
$
|
59,264
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Income
|
|
|
|
|
|
|
|
||||||||
Consumer
|
$
|
7,336
|
|
|
$
|
7,060
|
|
|
$
|
14,586
|
|
|
$
|
13,995
|
|
Business
|
1,071
|
|
|
1,101
|
|
|
2,119
|
|
|
2,215
|
|
||||
Total reportable segments
|
$
|
8,407
|
|
|
$
|
8,161
|
|
|
$
|
16,705
|
|
|
$
|
16,210
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
|
June 30,
|
|
|
June 30,
|
|
||||||||||
(dollars in millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Consumer
|
$
|
2,772
|
|
|
$
|
2,738
|
|
|
$
|
5,536
|
|
|
$
|
5,472
|
|
Business
|
239
|
|
|
218
|
|
|
482
|
|
|
435
|
|
||||
Total Fios revenue
|
$
|
3,011
|
|
|
$
|
2,956
|
|
|
$
|
6,018
|
|
|
$
|
5,907
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
|
June 30,
|
|
|
June 30,
|
|
||||||||||
(dollars in millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Consumer
|
$
|
13,456
|
|
|
$
|
13,122
|
|
|
$
|
26,813
|
|
|
$
|
26,003
|
|
Business
|
2,775
|
|
|
2,615
|
|
|
5,469
|
|
|
5,116
|
|
||||
Total Wireless service revenue
|
$
|
16,231
|
|
|
$
|
15,737
|
|
|
$
|
32,282
|
|
|
$
|
31,119
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
|
June 30,
|
|
|
June 30,
|
|
||||||||||
(dollars in millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Total reportable segment operating revenues
|
$
|
29,763
|
|
|
$
|
29,854
|
|
|
$
|
59,630
|
|
|
$
|
59,264
|
|
Corporate and other
|
2,412
|
|
|
2,429
|
|
|
4,747
|
|
|
4,891
|
|
||||
Eliminations
|
(104
|
)
|
|
(80
|
)
|
|
(178
|
)
|
|
(180
|
)
|
||||
Total consolidated operating revenues
|
$
|
32,071
|
|
|
$
|
32,203
|
|
|
$
|
64,199
|
|
|
$
|
63,975
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
|
June 30,
|
|
|
June 30,
|
|
||||||||||
(dollars in millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Total reportable segment operating income
|
$
|
8,407
|
|
|
$
|
8,161
|
|
|
$
|
16,705
|
|
|
$
|
16,210
|
|
Corporate and other
|
(354
|
)
|
|
(426
|
)
|
|
(740
|
)
|
|
(811
|
)
|
||||
Severance charges (Note 9)
|
—
|
|
|
(339
|
)
|
|
—
|
|
|
(339
|
)
|
||||
Other components of net periodic benefit charges (Note 9)
|
(203
|
)
|
|
(208
|
)
|
|
(406
|
)
|
|
(416
|
)
|
||||
Acquisition and integration related charges
|
—
|
|
|
(120
|
)
|
|
—
|
|
|
(227
|
)
|
||||
Product realignment charges
|
—
|
|
|
(451
|
)
|
|
—
|
|
|
(451
|
)
|
||||
Total consolidated operating income
|
7,850
|
|
|
6,617
|
|
|
15,559
|
|
|
13,966
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Equity in losses of unconsolidated businesses
|
(13
|
)
|
|
(228
|
)
|
|
(19
|
)
|
|
(247
|
)
|
||||
Other income (expense), net
|
(1,312
|
)
|
|
360
|
|
|
(1,017
|
)
|
|
285
|
|
||||
Interest expense
|
(1,215
|
)
|
|
(1,222
|
)
|
|
(2,425
|
)
|
|
(2,423
|
)
|
||||
Income Before Provision For Income Taxes
|
$
|
5,310
|
|
|
$
|
5,527
|
|
|
$
|
12,098
|
|
|
$
|
11,581
|
|
Note 12. Commitments and Contingencies
|
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
Overview
|
Consolidated Results of Operations
|
|
Three Months Ended
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
||||||||||||||||
|
June 30,
|
|
|
Increase/
|
|
June 30,
|
|
|
Increase/
|
||||||||||||||||||||
(dollars in millions)
|
2019
|
|
|
2018
|
|
|
(Decrease)
|
|
2019
|
|
|
2018
|
|
|
(Decrease)
|
||||||||||||||
Consumer
|
$
|
21,995
|
|
|
$
|
22,003
|
|
|
$
|
(8
|
)
|
|
—
|
%
|
|
$
|
44,143
|
|
|
$
|
43,630
|
|
|
$
|
513
|
|
|
1.2
|
%
|
Business
|
7,768
|
|
|
7,851
|
|
|
(83
|
)
|
|
(1.1
|
)
|
|
15,487
|
|
|
15,634
|
|
|
(147
|
)
|
|
(0.9
|
)
|
||||||
Corporate and other
|
2,412
|
|
|
2,429
|
|
|
(17
|
)
|
|
(0.7
|
)
|
|
4,747
|
|
|
4,891
|
|
|
(144
|
)
|
|
(2.9
|
)
|
||||||
Eliminations
|
(104
|
)
|
|
(80
|
)
|
|
(24
|
)
|
|
30.0
|
|
|
(178
|
)
|
|
(180
|
)
|
|
2
|
|
|
(1.1
|
)
|
||||||
Consolidated Revenues
|
$
|
32,071
|
|
|
$
|
32,203
|
|
|
$
|
(132
|
)
|
|
(0.4
|
)
|
|
$
|
64,199
|
|
|
$
|
63,975
|
|
|
$
|
224
|
|
|
0.4
|
|
|
Three Months Ended
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
||||||||||||||||
|
June 30,
|
|
|
Increase/
|
|
June 30,
|
|
|
Increase/
|
||||||||||||||||||||
(dollars in millions)
|
2019
|
|
|
2018
|
|
|
(Decrease)
|
|
2019
|
|
|
2018
|
|
|
(Decrease)
|
||||||||||||||
Cost of services
|
$
|
7,702
|
|
|
$
|
8,234
|
|
|
$
|
(532
|
)
|
|
(6.5
|
)%
|
|
$
|
15,494
|
|
|
$
|
16,180
|
|
|
$
|
(686
|
)
|
|
(4.2
|
)%
|
Cost of wireless equipment
|
5,019
|
|
|
5,397
|
|
|
(378
|
)
|
|
(7.0
|
)
|
|
10,217
|
|
|
10,706
|
|
|
(489
|
)
|
|
(4.6
|
)
|
||||||
Selling, general and administrative expense
|
7,268
|
|
|
7,605
|
|
|
(337
|
)
|
|
(4.4
|
)
|
|
14,466
|
|
|
14,449
|
|
|
17
|
|
|
0.1
|
|
||||||
Depreciation and amortization expense
|
4,232
|
|
|
4,350
|
|
|
(118
|
)
|
|
(2.7
|
)
|
|
8,463
|
|
|
8,674
|
|
|
(211
|
)
|
|
(2.4
|
)
|
||||||
Consolidated Operating Expenses
|
$
|
24,221
|
|
|
$
|
25,586
|
|
|
$
|
(1,365
|
)
|
|
(5.3
|
)
|
|
$
|
48,640
|
|
|
$
|
50,009
|
|
|
$
|
(1,369
|
)
|
|
(2.7
|
)
|
|
Three Months Ended
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
||||||||||||||||
|
June 30,
|
|
|
Increase/
|
|
June 30,
|
|
|
Increase/
|
||||||||||||||||||||
(dollars in millions)
|
2019
|
|
|
2018
|
|
|
(Decrease)
|
|
2019
|
|
|
2018
|
|
|
(Decrease)
|
||||||||||||||
Interest income
|
$
|
31
|
|
|
$
|
20
|
|
|
$
|
11
|
|
|
55.0
|
%
|
|
$
|
60
|
|
|
$
|
36
|
|
|
$
|
24
|
|
|
66.7
|
%
|
Other components of net periodic benefit cost
|
185
|
|
|
254
|
|
|
(69
|
)
|
|
(27.2
|
)
|
|
465
|
|
|
509
|
|
|
(44
|
)
|
|
(8.6
|
)
|
||||||
Other, net
|
(1,528
|
)
|
|
86
|
|
|
(1,614
|
)
|
|
nm
|
|
|
(1,542
|
)
|
|
(260
|
)
|
|
(1,282
|
)
|
|
nm
|
|
||||||
Total
|
$
|
(1,312
|
)
|
|
$
|
360
|
|
|
$
|
(1,672
|
)
|
|
nm
|
|
|
$
|
(1,017
|
)
|
|
$
|
285
|
|
|
$
|
(1,302
|
)
|
|
nm
|
|
|
Three Months Ended
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
||||||||||||||||
|
June 30,
|
|
|
Increase/
|
|
June 30,
|
|
|
Increase/
|
||||||||||||||||||||
(dollars in millions)
|
2019
|
|
|
2018
|
|
|
(Decrease)
|
|
2019
|
|
|
2018
|
|
|
(Decrease)
|
||||||||||||||
Total interest costs on debt balances
|
$
|
1,377
|
|
|
$
|
1,421
|
|
|
$
|
(44
|
)
|
|
(3.1
|
)%
|
|
$
|
2,744
|
|
|
$
|
2,798
|
|
|
$
|
(54
|
)
|
|
(1.9
|
)%
|
Less capitalized interest costs
|
162
|
|
|
199
|
|
|
(37
|
)
|
|
(18.6
|
)
|
|
319
|
|
|
375
|
|
|
(56
|
)
|
|
(14.9
|
)
|
||||||
Total
|
$
|
1,215
|
|
|
$
|
1,222
|
|
|
$
|
(7
|
)
|
|
(0.6
|
)
|
|
$
|
2,425
|
|
|
$
|
2,423
|
|
|
$
|
2
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average debt outstanding
|
$
|
115,163
|
|
|
$
|
117,800
|
|
|
|
|
|
|
$
|
114,414
|
|
|
$
|
117,719
|
|
|
|
|
|
||||||
Effective interest rate
|
4.8
|
%
|
|
4.8
|
%
|
|
|
|
|
|
4.8
|
%
|
|
4.8
|
%
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
Six Months Ended
|
|
|
|
||||||||||||||||||||
|
June 30,
|
|
|
Increase/
|
|
June 30,
|
|
|
Increase/
|
||||||||||||||||||||
(dollars in millions)
|
2019
|
|
|
2018
|
|
|
(Decrease)
|
|
2019
|
|
|
2018
|
|
|
(Decrease)
|
||||||||||||||
Provision for income taxes
|
$
|
1,236
|
|
|
$
|
1,281
|
|
|
$
|
(45
|
)
|
|
(3.5
|
)%
|
|
$
|
2,864
|
|
|
$
|
2,669
|
|
|
$
|
195
|
|
|
7.3
|
%
|
Effective income tax rate
|
23.3
|
%
|
|
23.2
|
%
|
|
|
|
|
|
23.7
|
%
|
|
23.0
|
%
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
|
June 30,
|
|
|
June 30,
|
|
||||||||||
(dollars in millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Consolidated Net Income
|
$
|
4,074
|
|
|
$
|
4,246
|
|
|
$
|
9,234
|
|
|
$
|
8,912
|
|
Add:
|
|
|
|
|
|
|
|
||||||||
Provision for income taxes
|
1,236
|
|
|
1,281
|
|
|
2,864
|
|
|
2,669
|
|
||||
Interest expense
|
1,215
|
|
|
1,222
|
|
|
2,425
|
|
|
2,423
|
|
||||
Depreciation and amortization expense
|
4,232
|
|
|
4,350
|
|
|
8,463
|
|
|
8,674
|
|
||||
Consolidated EBITDA*
|
$
|
10,757
|
|
|
$
|
11,099
|
|
|
$
|
22,986
|
|
|
$
|
22,678
|
|
|
|
|
|
|
|
|
|
||||||||
Add (Less):
|
|
|
|
|
|
|
|
||||||||
Other (income) expense, net†
|
$
|
1,312
|
|
|
$
|
(360
|
)
|
|
$
|
1,017
|
|
|
$
|
(285
|
)
|
Equity in losses of unconsolidated businesses
|
13
|
|
|
228
|
|
|
19
|
|
|
247
|
|
||||
Severance, pension and benefits charges
|
—
|
|
|
339
|
|
|
—
|
|
|
339
|
|
||||
Acquisition and integration related charges‡
|
—
|
|
|
109
|
|
|
—
|
|
|
214
|
|
||||
Product realignment charges‡
|
—
|
|
|
450
|
|
|
—
|
|
|
450
|
|
||||
Consolidated Adjusted EBITDA
|
$
|
12,082
|
|
|
$
|
11,865
|
|
|
$
|
24,022
|
|
|
$
|
23,643
|
|
Segment Results of Operations
|
|
Three Months Ended
|
|
|
|
|
Six Months Ended
|
|
|
|
||||||||||||||||||||
|
June 30,
|
|
|
Increase/
|
|
June 30,
|
|
|
Increase/
|
||||||||||||||||||||
(dollars in millions, except ARPA)
|
2019
|
|
|
2018
|
|
|
(Decrease)
|
|
2019
|
|
|
2018
|
|
|
(Decrease)
|
||||||||||||||
Service
|
$
|
16,350
|
|
|
$
|
16,049
|
|
|
$
|
301
|
|
|
1.9
|
%
|
|
$
|
32,609
|
|
|
$
|
31,873
|
|
|
$
|
736
|
|
|
2.3
|
%
|
Wireless equipment
|
3,903
|
|
|
4,251
|
|
|
(348
|
)
|
|
(8.2
|
)
|
|
8,069
|
|
|
8,521
|
|
|
(452
|
)
|
|
(5.3
|
)
|
||||||
Other
|
1,742
|
|
|
1,703
|
|
|
39
|
|
|
2.3
|
|
|
3,465
|
|
|
3,236
|
|
|
229
|
|
|
7.1
|
|
||||||
Total Operating Revenues
|
$
|
21,995
|
|
|
$
|
22,003
|
|
|
$
|
(8
|
)
|
|
—
|
|
|
$
|
44,143
|
|
|
$
|
43,630
|
|
|
$
|
513
|
|
|
1.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Connections (‘000): (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Wireless retail connections
|
|
|
|
|
|
|
|
|
93,896
|
|
|
93,816
|
|
|
80
|
|
|
0.1
|
|
||||||||||
Wireless retail postpaid connections
|
|
|
|
|
|
|
|
|
89,630
|
|
|
88,984
|
|
|
646
|
|
|
0.7
|
|
||||||||||
Fios Internet connections
|
|
|
|
|
|
|
|
|
5,837
|
|
|
5,663
|
|
|
174
|
|
|
3.1
|
|
||||||||||
Fios video connections
|
|
|
|
|
|
|
|
|
4,270
|
|
|
4,487
|
|
|
(217
|
)
|
|
(4.8
|
)
|
||||||||||
Broadband connections
|
|
|
|
|
|
|
|
|
6,474
|
|
|
6,447
|
|
|
27
|
|
|
0.4
|
|
||||||||||
Voice connections
|
|
|
|
|
|
|
|
|
6,058
|
|
|
6,631
|
|
|
(573
|
)
|
|
(8.6
|
)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net Additions in Period (‘000): (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Wireless retail
|
(87
|
)
|
|
(89
|
)
|
|
2
|
|
|
2.2
|
|
|
(464
|
)
|
|
(479
|
)
|
|
15
|
|
|
3.1
|
|
||||||
Wireless retail postpaid
|
126
|
|
|
147
|
|
|
(21
|
)
|
|
(14.3
|
)
|
|
(75
|
)
|
|
92
|
|
|
(167
|
)
|
|
nm
|
|
||||||
Wireless retail postpaid phones
|
73
|
|
|
17
|
|
|
56
|
|
|
nm
|
|
|
(90
|
)
|
|
(136
|
)
|
|
46
|
|
|
33.8
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Churn Rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Wireless retail
|
1.23
|
%
|
|
1.19
|
%
|
|
|
|
|
|
1.28
|
%
|
|
1.25
|
%
|
|
|
|
|
||||||||||
Wireless retail postpaid
|
0.97
|
%
|
|
0.93
|
%
|
|
|
|
|
|
1.03
|
%
|
|
0.97
|
%
|
|
|
|
|
||||||||||
Wireless retail postpaid phones
|
0.72
|
%
|
|
0.71
|
%
|
|
|
|
|
|
0.76
|
%
|
|
0.74
|
%
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Account Statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Wireless retail postpaid ARPA
|
$
|
118.15
|
|
|
$
|
115.53
|
|
|
$
|
2.62
|
|
|
2.3
|
|
|
$
|
117.80
|
|
|
$
|
114.49
|
|
|
$
|
3.31
|
|
|
2.9
|
|
Wireless retail postpaid accounts (‘000) (1)
|
|
|
|
|
|
|
|
|
33,924
|
|
|
34,045
|
|
|
(121
|
)
|
|
(0.4
|
)
|
||||||||||
Wireless retail postpaid connections per account (1)
|
|
|
|
|
|
|
|
|
2.64
|
|
|
2.61
|
|
|
0.03
|
|
|
1.1
|
|
(1)
|
As of end of period
|
(2)
|
Excluding acquisitions and adjustments
|
|
Three Months Ended
|
|
|
|
|
Six Months Ended
|
|
|
|
||||||||||||||||||||
|
June 30,
|
|
|
Increase/
|
|
June 30,
|
|
|
Increase/
|
||||||||||||||||||||
(dollars in millions)
|
2019
|
|
|
2018
|
|
|
(Decrease)
|
|
2019
|
|
|
2018
|
|
|
(Decrease)
|
||||||||||||||
Cost of services
|
$
|
3,847
|
|
|
$
|
3,842
|
|
|
$
|
5
|
|
|
0.1
|
%
|
|
$
|
7,726
|
|
|
$
|
7,615
|
|
|
$
|
111
|
|
|
1.5
|
%
|
Cost of wireless equipment
|
3,909
|
|
|
4,296
|
|
|
(387
|
)
|
|
(9.0
|
)
|
|
8,051
|
|
|
8,569
|
|
|
(518
|
)
|
|
(6.0
|
)
|
||||||
Selling, general and administrative expense
|
4,022
|
|
|
3,808
|
|
|
214
|
|
|
5.6
|
|
|
8,005
|
|
|
7,479
|
|
|
526
|
|
|
7.0
|
|
||||||
Depreciation and amortization expense
|
2,881
|
|
|
2,997
|
|
|
(116
|
)
|
|
(3.9
|
)
|
|
5,775
|
|
|
5,972
|
|
|
(197
|
)
|
|
(3.3
|
)
|
||||||
Total Operating Expenses
|
$
|
14,659
|
|
|
$
|
14,943
|
|
|
$
|
(284
|
)
|
|
(1.9
|
)
|
|
$
|
29,557
|
|
|
$
|
29,635
|
|
|
$
|
(78
|
)
|
|
(0.3
|
)
|
|
Three Months Ended
|
|
|
|
|
Six Months Ended
|
|
|
|
||||||||||||||||||||
|
June 30,
|
|
|
Increase/
|
|
June 30,
|
|
|
Increase/
|
||||||||||||||||||||
(dollars in millions)
|
2019
|
|
|
2018
|
|
|
(Decrease)
|
|
2019
|
|
|
2018
|
|
|
(Decrease)
|
||||||||||||||
Segment Operating Income
|
$
|
7,336
|
|
|
$
|
7,060
|
|
|
$
|
276
|
|
|
3.9
|
%
|
|
$
|
14,586
|
|
|
$
|
13,995
|
|
|
$
|
591
|
|
|
4.2
|
%
|
Add Depreciation and amortization expense
|
2,881
|
|
|
2,997
|
|
|
(116
|
)
|
|
(3.9
|
)
|
|
5,775
|
|
|
5,972
|
|
|
(197
|
)
|
|
(3.3
|
)
|
||||||
Segment EBITDA
|
$
|
10,217
|
|
|
$
|
10,057
|
|
|
$
|
160
|
|
|
1.6
|
|
|
$
|
20,361
|
|
|
$
|
19,967
|
|
|
$
|
394
|
|
|
2.0
|
|
Segment operating income margin
|
33.4
|
%
|
|
32.1
|
%
|
|
|
|
|
|
33.0
|
%
|
|
32.1
|
%
|
|
|
|
|
||||||||||
Segment EBITDA margin
|
46.5
|
%
|
|
45.7
|
%
|
|
|
|
|
|
46.1
|
%
|
|
45.8
|
%
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
||||||||||||||||
|
June 30,
|
|
|
Increase/
|
|
June 30,
|
|
|
Increase/
|
||||||||||||||||||||
(dollars in millions)
|
2019
|
|
|
2018
|
|
|
(Decrease)
|
|
2019
|
|
|
2018
|
|
|
(Decrease)
|
||||||||||||||
Global Enterprise
|
$
|
2,673
|
|
|
$
|
2,808
|
|
|
$
|
(135
|
)
|
|
(4.8
|
)%
|
|
$
|
5,364
|
|
|
$
|
5,634
|
|
|
$
|
(270
|
)
|
|
(4.8
|
)%
|
Small and Medium Business
|
2,785
|
|
|
2,642
|
|
|
143
|
|
|
5.4
|
|
|
5,493
|
|
|
5,176
|
|
|
317
|
|
|
6.1
|
|
||||||
Public Sector and Other
|
1,492
|
|
|
1,437
|
|
|
55
|
|
|
3.8
|
|
|
2,963
|
|
|
2,867
|
|
|
96
|
|
|
3.3
|
|
||||||
Wholesale
|
818
|
|
|
964
|
|
|
(146
|
)
|
|
(15.1
|
)
|
|
1,667
|
|
|
1,957
|
|
|
(290
|
)
|
|
(14.8
|
)
|
||||||
Total Operating Revenues (1)
|
$
|
7,768
|
|
|
$
|
7,851
|
|
|
$
|
(83
|
)
|
|
(1.1
|
)
|
|
$
|
15,487
|
|
|
$
|
15,634
|
|
|
$
|
(147
|
)
|
|
(0.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Connections (‘000): (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Wireless retail postpaid connections
|
|
|
|
|
|
|
|
|
|
|
|
|
24,221
|
|
|
22,638
|
|
|
1,583
|
|
|
7.0
|
|
||||||
Fios Internet connections
|
|
|
|
|
|
|
|
|
316
|
|
|
296
|
|
|
20
|
|
|
6.8
|
|
||||||||||
Fios video connections
|
|
|
|
|
|
|
|
|
|
|
|
|
76
|
|
|
73
|
|
|
3
|
|
|
4.1
|
|
||||||
Broadband connections
|
|
|
|
|
|
|
|
|
494
|
|
|
509
|
|
|
(15
|
)
|
|
(2.9
|
)
|
||||||||||
Voice connections
|
|
|
|
|
|
|
|
|
|
|
|
|
5,163
|
|
|
5,639
|
|
|
(476
|
)
|
|
(8.4
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net additions in period (‘000): (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Wireless retail postpaid
|
325
|
|
|
384
|
|
|
(59
|
)
|
|
(15.4
|
)
|
|
587
|
|
|
699
|
|
|
(112
|
)
|
|
(16.0
|
)
|
||||||
Wireless retail postpaid phones
|
172
|
|
|
182
|
|
|
(10
|
)
|
|
(5.5
|
)
|
|
291
|
|
|
311
|
|
|
(20
|
)
|
|
(6.4
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Churn Rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Wireless retail postpaid
|
1.21
|
%
|
|
1.16
|
%
|
|
|
|
|
|
1.23
|
%
|
|
1.16
|
%
|
|
|
|
|
||||||||||
Wireless retail postpaid phones
|
0.97
|
%
|
|
0.96
|
%
|
|
|
|
|
|
0.99
|
%
|
|
0.96
|
%
|
|
|
|
|
(1)
|
Service and other revenues included in our Business segment amounted to approximately $7.0 billion and $13.9 billion for the three and six months ended June 30, 2019, respectively, and approximately $7.1 billion and $14.0 billion for the three and six months ended June 30, 2018, respectively. Wireless equipment revenues included in our Business segment amounted to approximately $814 million and $1.6 billion for the three and six months ended June 30, 2019, respectively, and approximately $793 million and $1.6 billion for the three and six months ended June 30, 2018, respectively.
|
(2)
|
As of end of period
|
(3)
|
Excluding acquisitions and adjustments
|
|
Three Months Ended
|
|
|
|
|
Six Months Ended
|
|
|
|
||||||||||||||||||||
|
June 30,
|
|
|
Increase/
|
|
June 30,
|
|
|
Increase/
|
||||||||||||||||||||
(dollars in millions)
|
2019
|
|
|
2018
|
|
|
(Decrease)
|
|
2019
|
|
|
2018
|
|
|
(Decrease)
|
||||||||||||||
Cost of services
|
$
|
2,581
|
|
|
$
|
2,660
|
|
|
$
|
(79
|
)
|
|
(3.0
|
)%
|
|
$
|
5,172
|
|
|
$
|
5,370
|
|
|
$
|
(198
|
)
|
|
(3.7
|
)%
|
Cost of wireless equipment
|
1,109
|
|
|
1,101
|
|
|
8
|
|
|
0.7
|
|
|
2,166
|
|
|
2,137
|
|
|
29
|
|
|
1.4
|
|
||||||
Selling, general and administrative expense
|
1,961
|
|
|
1,930
|
|
|
31
|
|
|
1.6
|
|
|
3,942
|
|
|
3,794
|
|
|
148
|
|
|
3.9
|
|
||||||
Depreciation and amortization expense
|
1,046
|
|
|
1,059
|
|
|
(13
|
)
|
|
(1.2
|
)
|
|
2,088
|
|
|
2,118
|
|
|
(30
|
)
|
|
(1.4
|
)
|
||||||
Total Operating Expenses
|
$
|
6,697
|
|
|
$
|
6,750
|
|
|
$
|
(53
|
)
|
|
(0.8
|
)
|
|
$
|
13,368
|
|
|
$
|
13,419
|
|
|
$
|
(51
|
)
|
|
(0.4
|
)
|
|
Three Months Ended
|
|
|
|
|
Six Months Ended
|
|
|
|
||||||||||||||||||||
|
June 30,
|
|
|
Increase/
|
|
June 30,
|
|
|
Increase/
|
||||||||||||||||||||
(dollars in millions)
|
2019
|
|
|
2018
|
|
|
(Decrease)
|
|
2019
|
|
|
2018
|
|
|
(Decrease)
|
||||||||||||||
Segment Operating Income
|
$
|
1,071
|
|
|
$
|
1,101
|
|
|
$
|
(30
|
)
|
|
(2.7
|
)%
|
|
$
|
2,119
|
|
|
$
|
2,215
|
|
|
$
|
(96
|
)
|
|
(4.3
|
)%
|
Add Depreciation and amortization expense
|
1,046
|
|
|
1,059
|
|
|
(13
|
)
|
|
(1.2
|
)%
|
|
2,088
|
|
|
2,118
|
|
|
(30
|
)
|
|
(1.4
|
)
|
||||||
Segment EBITDA
|
$
|
2,117
|
|
|
$
|
2,160
|
|
|
$
|
(43
|
)
|
|
(2.0
|
)
|
|
$
|
4,207
|
|
|
$
|
4,333
|
|
|
$
|
(126
|
)
|
|
(2.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Segment operating income margin
|
13.8
|
%
|
|
14.0
|
%
|
|
|
|
|
|
13.7
|
%
|
|
14.2
|
%
|
|
|
|
|
||||||||||
Segment EBITDA margin
|
27.3
|
%
|
|
27.5
|
%
|
|
|
|
|
|
27.2
|
%
|
|
27.7
|
%
|
|
|
|
|
Special Items
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
|
June 30,
|
|
|
June 30,
|
|
||||||||||
(dollars in millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Severance, pension and benefits charges
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expense
|
$
|
—
|
|
|
$
|
339
|
|
|
$
|
—
|
|
|
$
|
339
|
|
Other income (expense), net
|
—
|
|
|
—
|
|
|
(96
|
)
|
|
—
|
|
||||
Acquisition and integration related charges
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expense
|
—
|
|
|
109
|
|
|
—
|
|
|
214
|
|
||||
Depreciation and amortization expense
|
—
|
|
|
11
|
|
|
—
|
|
|
13
|
|
||||
Product realignment charges
|
|
|
|
|
|
|
|
||||||||
Cost of services
|
—
|
|
|
303
|
|
|
—
|
|
|
303
|
|
||||
Selling, general and administrative expense
|
—
|
|
|
147
|
|
|
—
|
|
|
147
|
|
||||
Equity in losses of unconsolidated businesses
|
—
|
|
|
207
|
|
|
—
|
|
|
207
|
|
||||
Depreciation and amortization expense
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Early debt redemption costs
|
|
|
|
|
|
|
|
||||||||
Other income (expense), net
|
1,544
|
|
|
—
|
|
|
1,544
|
|
|
249
|
|
||||
Total
|
$
|
1,544
|
|
|
$
|
1,117
|
|
|
$
|
1,448
|
|
|
$
|
1,473
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
|
June 30,
|
|
|
June 30,
|
|
||||||||||
(dollars in millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Within Total Operating Expenses
|
$
|
—
|
|
|
$
|
910
|
|
|
$
|
—
|
|
|
$
|
1,017
|
|
Within Equity in losses of unconsolidated businesses
|
—
|
|
|
207
|
|
|
—
|
|
|
207
|
|
||||
Within Other income (expense), net
|
1,544
|
|
|
—
|
|
|
1,448
|
|
|
249
|
|
||||
Total
|
$
|
1,544
|
|
|
$
|
1,117
|
|
|
$
|
1,448
|
|
|
$
|
1,473
|
|
Consolidated Financial Condition
|
|
Six Months Ended
|
|
|
|
|||||||
|
June 30,
|
|
|
|
|||||||
(dollars in millions)
|
2019
|
|
|
2018
|
|
|
Change
|
|
|||
Cash Flows Provided By (Used In)
|
|
|
|
|
|
||||||
Operating activities
|
$
|
15,836
|
|
|
$
|
16,433
|
|
|
$
|
(597
|
)
|
Investing activities
|
(8,589
|
)
|
|
(8,728
|
)
|
|
139
|
|
|||
Financing activities
|
(8,043
|
)
|
|
(7,865
|
)
|
|
(178
|
)
|
|||
Decrease in cash, cash equivalents and restricted cash
|
$
|
(796
|
)
|
|
$
|
(160
|
)
|
|
$
|
(636
|
)
|
|
Six Months Ended
|
|
|||||
|
June 30,
|
|
|||||
(dollars in millions)
|
2019
|
|
|
2018
|
|
||
Capital expenditures (including capitalized software)
|
$
|
7,967
|
|
|
$
|
7,838
|
|
Total as a percentage of revenue
|
12.4
|
%
|
|
12.3
|
%
|
|
Six Months Ended
|
|
|
|
|||||||
|
June 30,
|
|
|
|
|||||||
(dollars in millions)
|
2019
|
|
|
2018
|
|
|
Change
|
|
|||
Net cash provided by operating activities
|
$
|
15,836
|
|
|
$
|
16,433
|
|
|
$
|
(597
|
)
|
Less Capital expenditures (including capitalized software)
|
7,967
|
|
|
7,838
|
|
|
129
|
|
|||
Free cash flow
|
$
|
7,869
|
|
|
$
|
8,595
|
|
|
$
|
(726
|
)
|
Market Risk
|
Acquisitions and Divestitures
|
Other Factors That May Affect Future Results
|
Cautionary Statement Concerning Forward-Looking Statements
|
•
|
adverse conditions in the U.S. and international economies;
|
•
|
the effects of competition in the markets in which we operate;
|
•
|
material changes in technology or technology substitution;
|
•
|
disruption of our key suppliers’ provisioning of products or services;
|
•
|
changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks;
|
•
|
breaches of network or information technology security, natural disasters, terrorist attacks or acts of war or significant litigation and any resulting financial impact not covered by insurance;
|
•
|
our high level of indebtedness;
|
•
|
an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing;
|
•
|
material adverse changes in labor matters, including labor negotiations, and any resulting financial and/or operational impact;
|
•
|
significant increases in benefit plan costs or lower investment returns on plan assets;
|
•
|
changes in tax laws or treaties, or in their interpretation;
|
•
|
changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings;
|
•
|
the inability to implement our business strategies; and
|
•
|
the inability to realize the expected benefits of strategic transactions.
|
Item 3. Quantitative and Qualitative Disclosures About Market Risk
|
Item 4. Controls and Procedures
|
Part II – Other Information
|
Item 1. Legal Proceedings
|
Item 1A. Risk Factors
|
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
|
Item 6. Exhibits
|
Exhibit
Number
|
|
Description
|
|
|
|
31.1
|
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
31.2
|
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
32.1
|
|
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
32.2
|
|
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
101.INS
|
|
XBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Presentation Linkbase Document.
|
|
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101.CAL
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XBRL Taxonomy Calculation Linkbase Document.
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101.LAB
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XBRL Taxonomy Label Linkbase Document.
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase Document.
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104
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Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101).
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Signature
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VERIZON COMMUNICATIONS INC.
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Date: August 8, 2019
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By
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/s/ Anthony T. Skiadas
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Anthony T. Skiadas
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Senior Vice President and Controller
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(Principal Accounting Officer)
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Exhibit
Number
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Description
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Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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101.INS
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XBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
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101.SCH
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XBRL Taxonomy Extension Schema Document.
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101.PRE
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XBRL Taxonomy Presentation Linkbase Document.
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101.CAL
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XBRL Taxonomy Calculation Linkbase Document.
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101.LAB
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XBRL Taxonomy Label Linkbase Document.
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase Document.
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104
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Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101).
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1.
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I have reviewed this quarterly report on Form 10-Q of Verizon Communications Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: August 8, 2019
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/s/ Hans E. Vestberg
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Hans E. Vestberg
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Chairman and Chief Executive Officer
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1.
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I have reviewed this quarterly report on Form 10-Q of Verizon Communications Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: August 8, 2019
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/s/ Matthew D. Ellis
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Matthew D. Ellis
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Executive Vice President and Chief Financial Officer
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(1)
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the report of the Company on Form 10-Q for the quarterly period ending June 30, 2019 (the Report) fully complies with the requirements of section 13(a) of the Securities Exchange Act of 1934 (the Exchange Act); and
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(2)
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the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods referred to in the Report.
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Date: August 8, 2019
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/s/ Hans E. Vestberg
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Hans E. Vestberg
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Chairman and Chief Executive Officer
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(1)
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the report of the Company on Form 10-Q for the quarterly period ending June 30, 2019 (the Report) fully complies with the requirements of section 13(a) of the Securities Exchange Act of 1934 (the Exchange Act); and
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(2)
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the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods referred to in the Report.
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Date: August 8, 2019
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/s/ Matthew D. Ellis
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Matthew D. Ellis
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Executive Vice President and Chief Financial Officer
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