Cover
Cover | 6 Months Ended |
Jun. 30, 2020shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2020 |
Document Transition Report | false |
Entity File Number | 1-8606 |
Entity Registrant Name | Verizon Communications Inc. |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 23-2259884 |
Entity Address, Address Line One | 1095 Avenue of the Americas |
Entity Address, City or Town | New York, |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10036 |
City Area Code | 212 |
Local Phone Number | 395-1000 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 4,138,053,870 |
Amendment Flag | false |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
Entity Central Index Key | 0000732712 |
Current Fiscal Year End Date | --12-31 |
Common Stock | New York Stock Exchange | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common Stock, par value $0.10 |
Trading Symbol | VZ |
Security Exchange Name | NYSE |
Common Stock | The NASDAQ Global Select Market | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common Stock, par value $0.10 |
Trading Symbol | VZ |
Security Exchange Name | NASDAQ |
1.625% Notes due 2024 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.625% Notes due 2024 |
Trading Symbol | VZ24B |
Security Exchange Name | NYSE |
4.073% Notes due 2024 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 4.073% Notes due 2024 |
Trading Symbol | VZ24C |
Security Exchange Name | NYSE |
0.875% Notes due 2025 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.875% Notes due 2025 |
Trading Symbol | VZ25 |
Security Exchange Name | NYSE |
3.250% Notes due 2026 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 3.250% Notes due 2026 |
Trading Symbol | VZ26 |
Security Exchange Name | NYSE |
1.375% Notes due 2026 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.375% Notes due 2026 |
Trading Symbol | VZ26B |
Security Exchange Name | NYSE |
0.875% Notes due 2027 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.875% Notes due 2027 |
Trading Symbol | VZ27E |
Security Exchange Name | NYSE |
1.375% Notes due 2028 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.375% Notes due 2028 |
Trading Symbol | VZ28 |
Security Exchange Name | NYSE |
1.875% Notes due 2029 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.875% Notes due 2029 |
Trading Symbol | VZ29B |
Security Exchange Name | NYSE |
1.250% Notes due 2030 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.250% Notes due 2030 |
Trading Symbol | VZ30 |
Security Exchange Name | NYSE |
1.875% Notes due 2030 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.875% Notes due 2030 |
Trading Symbol | VZ30A |
Security Exchange Name | NYSE |
2.625% Notes due 2031 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 2.625% Notes due 2031 |
Trading Symbol | VZ31 |
Security Exchange Name | NYSE |
2.500% Notes due 2031 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 2.500% Notes due 2031 |
Trading Symbol | VZ31A |
Security Exchange Name | NYSE |
0.875% Notes due 2032 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.875% Notes due 2032 |
Trading Symbol | VZ32 |
Security Exchange Name | NYSE |
1.300% Notes due 2033 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.300% Notes due 2033 |
Trading Symbol | VZ33B |
Security Exchange Name | NYSE |
4.750% Notes due 2034 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 4.750% Notes due 2034 |
Trading Symbol | VZ34 |
Security Exchange Name | NYSE |
3.125% Notes due 2035 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 3.125% Notes due 2035 |
Trading Symbol | VZ35 |
Security Exchange Name | NYSE |
3.375% Notes due 2036 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 3.375% Notes due 2036 |
Trading Symbol | VZ36A |
Security Exchange Name | NYSE |
2.875% Notes due 2038 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 2.875% Notes due 2038 |
Trading Symbol | VZ38B |
Security Exchange Name | NYSE |
1.500% Notes due 2039 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.500% Notes due 2039 |
Trading Symbol | VZ39C |
Security Exchange Name | NYSE |
3.500% Fixed Rate Notes due 2039 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 3.500% Fixed Rate Notes due 2039 |
Trading Symbol | VZ39D |
Security Exchange Name | NYSE |
1.850% Notes due 2040 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.850% Notes due 2040 |
Trading Symbol | VZ40 |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Operating Revenues | ||||
Operating Revenues | $ 30,447 | $ 32,071 | $ 62,057 | $ 64,199 |
Operating Expenses | ||||
Selling, general and administrative expense | 7,156 | 7,268 | 15,741 | 14,466 |
Depreciation and amortization expense | 4,181 | 4,232 | 8,331 | 8,463 |
Total Operating Expenses | 23,086 | 24,221 | 48,117 | 48,640 |
Operating Income | 7,361 | 7,850 | 13,940 | 15,559 |
Equity in losses of unconsolidated businesses | (13) | (13) | (25) | (19) |
Other income (expense), net | (72) | (1,312) | 71 | (1,017) |
Interest expense | (1,089) | (1,215) | (2,123) | (2,425) |
Income Before Provision For Income Taxes | 6,187 | 5,310 | 11,863 | 12,098 |
Provision for income taxes | (1,348) | (1,236) | (2,737) | (2,864) |
Net Income | 4,839 | 4,074 | 9,126 | 9,234 |
Net income attributable to noncontrolling interests | 139 | 130 | 270 | 258 |
Net income attributable to Verizon | 4,700 | 3,944 | 8,856 | 8,976 |
Net Income | $ 4,839 | $ 4,074 | $ 9,126 | $ 9,234 |
Basic Earnings Per Common Share | ||||
Net income attributable to Verizon (USD per share) | $ 1.14 | $ 0.95 | $ 2.14 | $ 2.17 |
Weighted-average shares outstanding (in shares) | 4,139 | 4,138 | 4,139 | 4,138 |
Diluted Earnings Per Common Share | ||||
Net income attributable to Verizon (USD per share) | $ 1.13 | $ 0.95 | $ 2.14 | $ 2.17 |
Weighted-average shares outstanding (in shares) | 4,141 | 4,139 | 4,141 | 4,140 |
Service and Other | ||||
Operating Revenues | ||||
Operating Revenues | $ 26,692 | $ 27,351 | $ 54,173 | $ 54,548 |
Service | ||||
Operating Expenses | ||||
Cost of services and equipment | 7,639 | 7,702 | 15,393 | 15,494 |
Wireless equipment | ||||
Operating Revenues | ||||
Operating Revenues | 3,755 | 4,720 | 7,884 | 9,651 |
Operating Expenses | ||||
Cost of services and equipment | $ 4,110 | $ 5,019 | $ 8,652 | $ 10,217 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 4,839 | $ 4,074 | $ 9,126 | $ 9,234 |
Other Comprehensive Income (Loss), Net of Tax (Expense) Benefit | ||||
Foreign currency translation adjustments, net of tax of | 77 | (67) | (43) | (43) |
Unrealized gain (loss) on cash flow hedges, net of tax of | 314 | (537) | (1,896) | (550) |
Unrealized gain on marketable securities, net of tax of | 6 | 4 | 5 | 8 |
Defined benefit pension and postretirement plans, net of tax of | (169) | (169) | (338) | (338) |
Other comprehensive income (loss) attributable to Verizon | 228 | (769) | (2,272) | (923) |
Total Comprehensive Income | 5,067 | 3,305 | 6,854 | 8,311 |
Comprehensive income attributable to noncontrolling interests | 139 | 130 | 270 | 258 |
Comprehensive income attributable to Verizon | 4,928 | 3,175 | 6,584 | 8,053 |
Total Comprehensive Income | $ 5,067 | $ 3,305 | $ 6,854 | $ 8,311 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, tax | $ 4 | $ 3 | $ 0 | $ (2) |
Unrealized gain (loss) on cash flow hedges, tax | (133) | 193 | 659 | 198 |
Unrealized gain (loss) on marketable securities, tax | (2) | 0 | (1) | (2) |
Defined benefit pension and postretirement plans, tax | $ 55 | $ 56 | $ 111 | $ 112 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 7,882 | $ 2,594 |
Accounts receivable | 23,742 | 26,162 |
Less Allowance for credit losses | 1,070 | 0 |
Less Allowance for doubtful accounts | 0 | 733 |
Accounts receivable, net (Note 1) | 22,672 | 25,429 |
Inventories | 1,289 | 1,422 |
Prepaid expenses and other | 5,490 | 8,028 |
Total current assets | 37,333 | 37,473 |
Property, plant and equipment | 272,714 | 265,734 |
Less Accumulated depreciation | 179,960 | 173,819 |
Property, plant and equipment, net | 92,754 | 91,915 |
Investments in unconsolidated businesses | 529 | 558 |
Wireless licenses | 95,767 | 95,059 |
Goodwill | 24,667 | 24,389 |
Other intangible assets, net | 9,600 | 9,498 |
Operating lease right-of-use assets | 22,431 | 22,694 |
Other assets | 10,178 | 10,141 |
Total assets | 293,259 | 291,727 |
Current liabilities | ||
Debt maturing within one year | 6,651 | 10,777 |
Accounts payable and accrued liabilities | 19,297 | 21,806 |
Current operating lease liabilities | 3,270 | 3,261 |
Other current liabilities | 9,668 | 9,024 |
Total current liabilities | 38,886 | 44,868 |
Long-term debt | 106,190 | 100,712 |
Employee benefit obligations | 17,821 | 17,952 |
Deferred income taxes | 33,798 | 34,703 |
Non-current operating lease liabilities | 18,158 | 18,393 |
Other liabilities | 14,293 | 12,264 |
Total long-term liabilities | 190,260 | 184,024 |
Commitments and Contingencies | ||
Equity | ||
Series preferred stock | 0 | 0 |
Common stock | 429 | 429 |
Additional paid in capital | 13,281 | 13,419 |
Retained earnings | 56,746 | 53,147 |
Accumulated other comprehensive income (loss) | (1,274) | 998 |
shares outstanding) | (6,722) | (6,820) |
Deferred compensation – employee stock ownership plans and other | 237 | 222 |
Noncontrolling interests | 1,416 | 1,440 |
Total equity | 64,113 | 62,835 |
Total liabilities and equity | $ 293,259 | $ 291,727 |
Common stock, shares issued (in shares) | 4,291,433,646 | 4,291,433,646 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Series preferred stock, par value (USD per share) | $ 0.10 | $ 0.10 |
Series preferred stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Series preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (USD per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 6,250,000,000 | 6,250,000,000 |
Common stock, shares issued (in shares) | 4,291,433,646 | 4,291,433,646 |
Treasury stock, shares issued (in shares) | 153,379,776 | 155,605,527 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash Flows from Operating Activities | ||
Net Income | $ 9,126 | $ 9,234 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 8,331 | 8,463 |
Employee retirement benefits | (32) | (294) |
Deferred income taxes | (120) | 588 |
Provision for expected credit losses | 831 | 738 |
Equity in losses of unconsolidated businesses, net of dividends received | 46 | 50 |
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses | 3,297 | (4,593) |
Discretionary employee benefits contributions | 0 | (300) |
Other, net | 2,073 | 1,950 |
Net cash provided by operating activities | 23,552 | 15,836 |
Cash Flows from Investing Activities | ||
Capital expenditures (including capitalized software) | (9,850) | (7,967) |
Acquisitions of businesses, net of cash acquired | (399) | (28) |
Acquisitions of wireless licenses | (1,801) | (199) |
Other, net | (74) | (395) |
Net cash used in investing activities | (12,124) | (8,589) |
Cash Flows from Financing Activities | ||
Proceeds from long-term borrowings | 9,305 | 6,237 |
Proceeds from asset-backed long-term borrowings | 2,844 | 3,982 |
Repayments of long-term borrowings and finance lease obligations | (8,533) | (9,630) |
Repayments of asset-backed long-term borrowings | (4,612) | (2,817) |
Dividends paid | (5,090) | (4,981) |
Other, net | (146) | (834) |
Net cash used in financing activities | (6,232) | (8,043) |
Increase (decrease) in cash, cash equivalents and restricted cash | 5,196 | (796) |
Cash, cash equivalents and restricted cash, beginning of period | 3,917 | 3,916 |
Cash, Cash equivalents and restricted cash, end of period (Note 1) | $ 9,113 | $ 3,120 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) in the United States (U.S.) and based upon Securities and Exchange Commission rules that permit reduced disclosure for interim periods. For a more complete discussion of significant accounting policies and certain other information, you should refer to the financial statements included in Verizon Communications Inc.'s (Verizon or the Company) Annual Report on Form 10-K for the year ended December 31, 2019. These financial statements reflect all adjustments that are necessary for a fair presentation of results of operations and financial condition for the interim periods shown, including normal recurring accruals and other items. The results for the interim periods are not necessarily indicative of results for the full year. Certain amounts have been reclassified to conform to the current period’s presentation. Use of Estimates U.S. GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures. These estimates and assumptions take into account historical and forward-looking factors that the Company believes are reasonable, including but not limited to the potential impacts arising from the recent novel coronavirus (COVID-19) and public and private sector policies and initiatives aimed at reducing its transmission. As the extent and duration of the impacts from COVID-19 remain unclear, the Company’s estimates and assumptions may evolve as conditions change. Actual results could differ significantly from those estimates. Examples of significant estimates include the allowance for credit losses, the recoverability of intangible assets, property, plant and equipment, and other long-lived assets, the incremental borrowing rate for the lease liability, fair value measurements, including those related to financial instruments, goodwill, spectrum licenses and intangible assets, unrecognized tax benefits, valuation allowances on tax assets, pension and postretirement benefit obligations, contingencies and the identification and valuation of assets acquired and liabilities assumed in connection with business combinations. Earnings Per Common Share There were a total of approximately 2 million outstanding dilutive securities, primarily consisting of restricted stock units, included in the computation of diluted earnings per common share for the three and six months ended June 30, 2020 and June 30, 2019. Cash, Cash Equivalents and Restricted Cash We consider all highly liquid investments with an original maturity of 90 days or less when purchased to be cash equivalents. Cash equivalents are stated at cost, which approximates quoted market value and includes amounts held in money market funds. Cash collections on the device payment plan agreement receivables collateralizing asset-backed debt securities are required at certain specified times to be placed into segregated accounts. Deposits to the segregated accounts are considered restricted cash and are included in Prepaid expenses and other and Other assets in our condensed consolidated balance sheets. Cash, cash equivalents and restricted cash are included in the following line items in the condensed consolidated balance sheets: At June 30, At December 31, Increase / (Decrease) (dollars in millions) 2020 2019 Cash and cash equivalents $ 7,882 $ 2,594 $ 5,288 Restricted cash: Prepaid expenses and other 1,101 1,221 (120) Other assets 130 102 28 Cash, cash equivalents and restricted cash $ 9,113 $ 3,917 $ 5,196 Allowance for Credit Losses Prior to January 1, 2020, accounts receivable were recorded at cost less an allowance for doubtful accounts. The gross amount of accounts receivable and corresponding allowance for doubtful accounts were presented separately in the condensed consolidated balance sheets. We maintained allowances for uncollectible accounts receivable, including our direct-channel device payment plan agreement receivables, for estimated losses resulting from the failure or inability of our customers to make required payments. Indirect-channel device payment receivables are considered financial instruments and were initially recorded at fair value net of imputed interest, and credit losses were recorded as incurred. However, receivable balances were assessed quarterly for impairment and an allowance was recorded if the receivable was considered impaired. Subsequent to January 1, 2020, accounts receivable are recorded at amortized cost less an allowance for credit losses that are not expected to be recovered. The gross amount of accounts receivable and corresponding allowance for credit losses are presented separately in the condensed consolidated balance sheets. We maintain allowances for credit losses resulting from the expected failure or inability of our customers to make required payments. We recognize the allowance for credit losses at inception and reassess quarterly based on management’s expectation of the asset’s collectability. The allowance is based on multiple factors including historical experience with bad debts, the credit quality of the customer base, the aging of such receivables and current macroeconomic conditions, such as COVID-19, as well as management’s expectations of conditions in the future, if applicable. Our allowance for credit losses is based on management’s assessment of the collectability of assets pooled together with similar risk characteristics. We pool our device payment plan agreement receivables based on the credit quality indicators and shared risk characteristics of "new customers" and "existing customers." New customers are defined as customers who have been with Verizon for less than 210 days if they are classified as a Consumer segment customer, or less than 12 months if they are classified as a Business segment customer. Existing customers are defined as customers who have been with Verizon for more than 210 days if they are in Consumer, or more than 12 months if they are in Business. We record an allowance to reduce the receivables to the amount that is expected to be collectible. For device payment plan agreement receivables, we record bad debt expense based on a default and loss calculation using our proprietary loss model. The expected loss rate is determined based on customer credit scores and other qualitative factors as noted above. The loss rate is assigned individually on a customer by customer basis and the custom credit scores are then aggregated by vintage and used in our proprietary loss model to calculate the weighted-average loss rate used for determining the allowance balance. We monitor the collectability of our wireless service receivables as one overall pool. Wireline service receivables are disaggregated and pooled by the following customer groups: consumer, small and medium business, global enterprise and wholesale. For wireless service receivables and wireline consumer and small and medium business receivables, the allowance is calculated based on a 12 month rolling average write-off balance multiplied by the average life-cycle of an account from billing to write-off. The risk of loss is assessed over the contractual life of the receivables and we adjust the historical loss amounts for current and future conditions based on management’s qualitative considerations. For global enterprise and wholesale wireline receivables, the allowance for credit losses is based on historical write-off experience and individual customer credit risk, if applicable. We consider multiple factors in determining the allowance as discussed above. Recently Adopted Accounting Standard The following Accounting Standard Updates (ASUs) were issued by the Financial Accounting Standards Board (FASB), and have been recently adopted by Verizon. Description Date of Adoption Effect on Financial Statements ASU 2016-13, ASU 2018-19, ASU 2019-04, and ASU 2019-05, Financial Instruments - Credit Losses (Topic 326) In June 2016, the FASB issued Topic 326 which requires certain financial assets to be measured at amortized cost net of an allowance for estimated credit losses, such that the net receivable represents the present value of expected cash collection. In addition, this standard update requires that certain financial assets be measured at amortized cost reflecting an allowance for estimated credit losses expected to occur over the life of the assets. The estimate of credit losses must be based on all relevant information including historical information, current conditions, and reasonable and supportable forecasts that affect the collectability of the amounts. An entity applies the update through a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (January 1, 2020). A prospective transition approach is required for debt securities for which an other-than-temporary impairment has been recognized before the effective date. Early adoption of this standard is permitted. 1/1/2020 We adopted Topic 326 beginning on January 1, 2020 using the modified retrospective approach with a cumulative effect adjustment to opening retained earnings recorded at the beginning of the period of adoption. Therefore upon adoption, we recognized and measured estimated credit losses without revising comparative period information or disclosures. We recorded the pre-tax cumulative effect of $265 million ($200 million net of tax) as a reduction to the January 1, 2020 opening balance of retained earnings, which was related to the timing of expected credit loss recognition for certain device payment plan receivables based upon reasonable and supportable forecasts of the future economic condition as of January 1, 2020. Additionally, the adoption of the standard impacted the condensed consolidated balance sheet by presenting financial assets measured at amortized cost separate from the allowance for estimated credit losses. There is no significant impact to our operating results for the current period due to this standard update. ASU 2020-04, Reference Rate Reform (Topic 848) Topic 848 provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. Topic 848 provides optional expedients and exceptions for applying U.S. GAAP to transactions affected by reference rate reform if certain criteria are met. 3/12/2020 Topic 848 was effective for the Company beginning on March 12, 2020, and we will apply the amendments prospectively through December 31, 2022. There was no impact to our condensed consolidated financial statements for the current period as a result of adopting this standard update. The cumulative after-tax effect of the changes made to our condensed consolidated balance sheet for the adoption of Topic 326 were as follows: (dollars in millions) At December 31, 2019 Adjustments due to At January 1, 2020 Allowance for credit losses $ — $ 919 $ 919 Allowance for doubtful accounts 733 (733) — Other assets 10,141 (79) 10,062 Deferred income taxes 34,703 (65) 34,638 Retained earnings 53,147 (200) 52,947 |
Revenues and Contract Costs
Revenues and Contract Costs | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues and Contract Costs | Note 2. Revenues and Contract Costs We earn revenue from contracts with customers, primarily through the provision of telecommunications and other services and through the sale of wireless equipment. Revenue by Category We have two reportable segments that we operate and manage as strategic business units - Consumer and Business. Revenue is disaggregated by products and services within Consumer and customer groups (Small and Medium Business, Global Enterprise, Public Sector and Other, and Wholesale) within Business. See Note 10 for additional information on revenue by segment. Corporate and other includes the results of our media business, Verizon Media Group (Verizon Media) , and other businesses . Verizon Media generated revenues from contracts with customers under ASU 2014-09, "Revenue from Contracts with Customers" (Topic 606) of approximately $1.4 billion and $3.1 billion during the three and six months ended June 30, 2020, respectively. Verizon Media generated revenues from contracts with customers under Topic 606 of approximately $1.8 billion and $3.6 billion during the three and six months ended June 30, 2019, respectively. We also earn revenues that are not accounted for under Topic 606 from 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. As allowed by the practical expedient within ASU 2016-02, "Leases" (Topic 842), we have elected to combine the lease and non-lease components for those arrangements of customer premise equipment where we are the lessor as components accounted for under Topic 606. During the three and six months ended June 30, 2020, revenues from arrangements that were not accounted for under Topic 606 were approximately $785 million and $1.6 billion, respectively. During the three and six months ended June 30, 2019, revenues from arrangements that were not accounted for under Topic 606 were approximately $797 million and $1.6 billion, respectively. Remaining Performance Obligations When allocating the total contract transaction price to identified performance obligations, a portion of the total transaction price may relate to service performance obligations which were not satisfied or are partially satisfied as of the end of the reporting period. Below we disclose information relating to these unsatisfied performance obligations. Upon adoption, we elected to apply the practical expedient available under Topic 606 that provides the option to exclude the expected revenues arising from unsatisfied performance obligations related to contracts that have an original expected duration of one year or less. This situation primarily arises with respect to certain month-to-month service contracts. At June 30, 2020, month-to-month service contracts represented approximately 89% of our wireless postpaid contracts and approximately 67% of our wireline Consumer and Small and Medium Business contracts, compared to June 30, 2019, for which month-to-month service contracts represented approximately 87% of our wireless postpaid contracts and 57% of our wireline Consumer and Small and Medium Business contracts . Additionally, certain contracts provide customers the option to purchase additional services. The fees related to these additional services are recognized when the customer exercises the option (typically on a month-to-month basis). Contracts for wireless services are generally either month-to-month and cancellable at any time (typically under a device payment plan) or contain terms ranging from greater than one month to up to two years (typically under a fixed-term plan). Additionally, customers may incur charges based on usage or additional optional services purchased in conjunction with entering into a contract that can be cancelled at any time and therefore are not included in the transaction price. The transaction price allocated to service performance obligations, which are not satisfied or are partially satisfied as of the end of the reporting period, are generally related to contracts that are not accounted for as month-to-month contracts. Our Consumer group customers also include traditional wholesale resellers that purchase and resell wireless service under their own brands to their respective customers. Reseller arrangements generally include a stated contract term, which typically extends longer than two years and, in some cases, include a periodic minimum revenue commitment over the contract term for which revenues will be recognized in future periods. Consumer customer contracts for wireline services are generally month-to-month; however, they may have a service term of two years or shorter than twelve months. Certain contracts with Business customers for wireline services extend into future periods, contain fixed monthly fees and usage-based fees, and can include annual commitments in each year of the contract or commitments over the entire specified contract term; however, a significant number of contracts for wireline services with our Business customers have a contract term that is twelve months or less. Additionally, there are certain contracts with Business customers for wireline and telematics services and certain Verizon Media contracts with customers that have a contractual minimum fee over the total contract term. We cannot predict the time period when revenue will be recognized related to those contracts; thus, they are excluded from the time bands below. These contracts have varying terms spanning over approximately five years ending in June 2025 and have aggregate contract minimum payments totaling $2.7 billion. At June 30, 2020, the transaction price related to unsatisfied performance obligations for total Verizon that is expected to be recognized for the remainder of 2020, 2021 and thereafter was $10.3 billion, $13.1 billion and $4.0 billion, respectively. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations and changes in the timing and scope of contracts, arising from contract modifications. Accounts Receivable and Contract Balances The timing of revenue recognition may differ from the time of billing to our customers. Receivables presented in our condensed consolidated balance sheets represent an unconditional right to consideration. Contract balances represent amounts from an arrangement when either Verizon has performed, by transferring goods or services to the customer in advance of receiving all or partial consideration for such goods and services from the customer, or the customer has made payment to Verizon in advance of obtaining control of the goods and/or services promised to the customer in the contract. Contract assets primarily relate to our rights to consideration for goods or services provided to customers but for which we do not have an unconditional right at the reporting date. Under a fixed-term plan, total contract revenue is allocated between wireless service and equipment revenues. In conjunction with these arrangements, a contract asset is created, which represents the difference between the amount of equipment revenue recognized upon sale and the amount of consideration received from the customer when the performance obligation related to the transfer of control of the equipment is satisfied. The contract asset is reclassified to accounts receivable as wireless services are provided and billed. We have the right to bill the customer as service is provided over time, which results in our right to the payment being unconditional. The contract asset balances are presented in our condensed consolidated balance sheets as Prepaid expenses and other and Other assets. We recognize the allowance for credit losses at inception and reassess quarterly based on management’s expectation of the asset’s collectability. Contract liabilities arise when we bill our customers and receive consideration in advance of providing the goods or services promised in the contract. We typically bill service one month in advance, which is the primary component of the contract liability balance. Contract liabilities are recognized as revenue when services are provided to the customer. The contract liability balances are presented in our condensed consolidated balance sheets as Other current liabilities and Other liabilities. The following table presents information about receivables from contracts with customers: At June 30, At January 1, At June 30, At January 1, (dollars in millions) 2020 2020 2019 2019 Receivables (1) $ 10,967 $ 12,078 $ 12,173 $ 12,104 Device payment plan agreement receivables (2) 10,047 11,741 10,053 8,940 (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 6. 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. The following table presents information about contract balances: At June 30, At January 1, At June 30, At January 1, (dollars in millions) 2020 2020 2019 2019 Contract asset $ 993 $ 1,150 $ 1,059 $ 1,003 Contract liability (1) 5,275 5,307 4,946 4,943 (1) Revenue recognized related to contract liabilities existing at January 1, 2020 were $204 million and $4.0 billion, for the three and six months ended June 30, 2020, respectively. Revenue recognized related to contract liabilities existing at January 1, 2019 were $194 million and $3.9 billion, for the three and six months ended June 30, 2019, respectively. The balance of contract assets and contract liabilities recorded in our condensed consolidated balance sheets were as follows: At June 30, At December 31, (dollars in millions) 2020 2019 Assets Prepaid expenses and other $ 762 $ 848 Other assets 231 302 Total $ 993 $ 1,150 Liabilities Other current liabilities $ 4,636 $ 4,651 Other liabilities 639 656 Total $ 5,275 $ 5,307 Contract Costs Topic 606 requires the recognition of an asset for incremental costs to obtain a customer contract, which are then amortized to expense over the respective periods of expected benefit. We recognize an asset for incremental commission expenses paid to internal and external sales personnel and agents in conjunction with obtaining customer contracts. We only defer these costs when we have determined the commissions are incremental costs that would not have been incurred absent the customer contract and are expected to be recoverable. Costs to obtain a contract are amortized and recorded ratably as commission expense over the period representing the transfer of goods or services to which the assets relate. Costs to obtain wireless contracts are amortized over both of our Consumer and Business customers' estimated device upgrade cycles, as such costs are typically incurred each time a customer upgrades. Costs to obtain wireline contracts are amortized as expense over the estimated customer relationship period for our Consumer customers. Incremental costs to obtain wireline contracts for our Business customers are insignificant. Costs to obtain contracts are recorded in Selling, general and administrative expense. We also defer costs incurred to fulfill contracts that: (1) relate directly to the contract; (2) are expected to generate resources that will be used to satisfy our performance obligation under the contract; and (3) are expected to be recovered through revenue generated under the contract. Contract fulfillment costs are expensed as we satisfy our performance obligations and recorded in Cost of services. These costs principally relate to direct costs that enhance our wireline business resources, such as costs incurred to install circuits. We determine the amortization periods for our costs incurred to obtain or fulfill a customer contract at a portfolio level due to the similarities within these customer contract portfolios. Other costs, such as general costs or costs related to past performance obligations, are expensed as incurred. Collectively, costs to obtain a contract and costs to fulfill a contract are referred to as deferred contract costs, and amortized over a two five The balances of deferred contract costs included in our condensed consolidated balance sheets were as follows: At June 30, At December 31, (dollars in millions) 2020 2019 Assets Prepaid expenses and other $ 2,455 $ 2,578 Other assets 1,791 1,911 Total $ 4,246 $ 4,489 For the three and six months ended June 30, 2020, we recognized expense of $767 million and $1.5 billion, respectively, associated with the amortization of deferred contract costs, primarily within Selling, general and administrative expense in our condensed consolidated statements of income. For the three and six months ended June 30, 2019, we recognized expense of $639 million and $1.3 billion, respectively, associated with the amortization of deferred contract costs, primarily within Selling, general and administrative expense in our condensed consolidated statements of income. We assess our deferred contract costs for impairment on a quarterly basis. We recognize an impairment charge to the extent the carrying amount of a deferred cost exceeds the remaining amount of consideration we expect to receive in exchange for the goods and services related to the cost, less the expected costs related directly to providing those goods and services that have not yet been recognized as expenses. There have been no impairment charges recognized for the three and six months ended June 30, 2020 or June 30, 2019. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Note 3. Acquisitions and Divestitures Spectrum License Transactions In March 2020, the Federal Communication Commission's (FCC) incentive auction for spectrum licenses in the upper 37 Gigahertz (GHz), 39 GHz, and 47 GHz bands concluded. Verizon participated in this incentive auction and was the high bidder on 4,940 licenses, which primarily consisted of 37 GHz and, to a lesser extent, 39 GHz spectrum. As an incumbent licensee, our 39 GHz licenses provided us with incentive payments that were applied towards the purchase price of spectrum in the auction. The value of the licenses won by Verizon amounted to $3.4 billion, of which $1.8 billion was settled with the relinquished 39 GHz licenses. The remaining balance was settled in cash of $1.6 billion, of which $101 million was paid in December 2019. In connection with the incentive auction, a pre-tax net loss of $1.2 billion ($914 million after-tax) was recorded in Selling, general and administrative expense in the condensed consolidated statement of income for the six months ended June 30, 2020 because the exchange of the previously held licenses for new licenses had commercial substance. Refer to Note 4 for additional information. The new reconfigured licenses were received in the second quarter 2020 and are included in Wireless licenses in our condensed consolidated balance sheet. The average remaining renewal period for these acquired licenses was 9.9 years. The fair value of the licenses represents a Level 2 measurement as defined in Accounting Standards Codification 820, Fair Value Measurements and Disclosures, and was determined based on the final auction price for each defined geographical area. During the three and six months ended June 30, 2020, we entered into and completed various other wireless license acquisitions for cash consideration of an insignificant amount and approximately $177 million, respectively. BlueJeans Network, Inc. In April 2020, we entered into a definitive purchase agreement to acquire BlueJeans Network, Inc. (BlueJeans), an enterprise-grade video conferencing and event platform, whose services are sold to Business customers globally. The transaction closed in May 2020. The aggregate cash consideration paid by Verizon at the closing of the transaction was approximately $396 million, net of cash acquired. The financial results of BlueJeans are included in the consolidated results of Verizon from the date of acquisition. These amounts are insignificant for the three and six months ended June 30, 2020. The acquisition of BlueJeans was accounted for as a business combination. We are currently assessing the identification and measurement of the assets acquired and liabilities assumed based on their fair values as of the close of the acquisition, subject to customary closing adjustments. Preliminarily, we recorded approximately $282 million of goodwill and $192 million of other intangible assets, which primarily consisted of enterprise customer list and internally developed technology. Goodwill is calculated as the difference between the acquisition date fair value of the consideration transferred and the fair value of the net assets acquired. The goodwill represents future economic benefits that we expect to achieve as a result of the acquisition. Other During the three months ended June 30, 2020, we completed no other acquisitions. For the six months ended June 30, 2020, we completed other acquisitions for insignificant amounts of cash consideration. |
Wireless Licenses, Goodwill and
Wireless Licenses, Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Wireless Licenses, Goodwill and Other Intangible Assets | Note 4. Wireless Licenses, Goodwill, and Other Intangible Assets Wireless Licenses The carrying amounts of Wireless licenses are as follows: At June 30, At December 31, (dollars in millions) 2020 2019 Wireless licenses $ 95,767 $ 95,059 At June 30, 2020 and 2019, approximately $3.5 billion and $6.6 billion, respectively, of wireless licenses were under development for commercial service for which we were capitalizing interest costs. We recorded approximately $101 million and $168 million of capitalized interest on wireless licenses for the six months ended June 30, 2020 and 2019, respectively. In March 2020, we reclassified substantially all of our 39 GHz wireless licenses, including capitalized interest, with a carrying value of $2.8 billion to assets held for sale in connection with the FCC's incentive auction. As a result, these wireless licenses were adjusted down to their fair value of $1.6 billion resulting in a pre-tax loss of $1.2 billion ($914 million after-tax) for the six months ended June 30, 2020. The new reconfigured licenses were received in the second quarter 2020 and had a value of $3.4 billion. See Note 3 for additional information regarding spectrum license transactions. During 2020, we renewed various wireless licenses in accordance with FCC regulations. The average renewal period for these licenses was 10 years. Goodwill Changes in the carrying amount of Goodwill are as follows: (dollars in millions) Consumer Business Other Total Balance at January 1, 2020 (1) $ 17,104 $ 7,269 $ 16 $ 24,389 Acquisitions (Note 3) — 282 — 282 Reclassifications, adjustments and other — (4) — (4) Balance at June 30, 2020 (1) $ 17,104 $ 7,547 $ 16 $ 24,667 (1) Other Goodwill is net of accumulated impairment charges of $4.8 billion, related to our Media reporting unit. Other Intangible Assets The following table displays the composition of Other intangible assets, net as well as the respective amortization period: At June 30, 2020 At December 31, 2019 (dollars in millions) Gross Accumulated Net Gross Accumulated Net Customer lists (8 to 13 years) $ 4,009 $ (1,740) $ 2,269 $ 3,896 $ (1,511) $ 2,385 Non-network internal-use software (5 to 7 years) 21,670 (15,292) 6,378 20,530 (14,418) 6,112 Other (2 to 25 years) 1,981 (1,028) 953 1,967 (966) 1,001 Total $ 27,660 $ (18,060) $ 9,600 $ 26,393 $ (16,895) $ 9,498 The amortization expense for Other intangible assets was as follows: Three Months Ended Six Months Ended (dollars in millions) June 30, June 30, 2020 $ 605 $ 1,197 2019 569 1,124 The estimated future amortization expense for Other intangible assets for the remainder of the current year and next 5 years is as follows: Years (dollars in millions) Remainder of 2020 $ 1,194 2021 2,136 2022 1,838 2023 1,476 2024 1,105 2025 746 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Note 5. Debt Significant Debt Transactions The following table shows the transactions that occurred during the six months ended June 30, 2020. Redemptions, Repurchases and Repayments (dollars in millions) Principal Redeemed/ Repurchased/ Repaid Amount Paid (1) Three Months Ended March 31, 2020 Verizon 4.950% notes due 2047 $ 1,475 $ 1,475 Three Months Ended March 31, 2020 total $ 1,475 $ 1,475 Three Months Ended June 30, 2020 Verizon 5.143% preferred stock due 2020 $ 1,650 $ 1,650 Verizon floating rate (LIBOR +0.550%) notes due 2020 (2) 1,018 1,018 Verizon 4.600% notes due 2021 920 949 Verizon 3.125% notes due 2022 1,256 1,314 Open market repurchases of various Verizon notes 121 143 Verizon 2.375% notes due 2022 (3) € 935 $ 1,199 Verizon 0.500% notes due 2022 (4) € 454 $ 517 Three Months Ended June 30, 2020 total 6,790 Six Months Ended June 30, 2020 total $ 8,265 (1) Represents amount paid to redeem, repurchase or repay, excluding interest or dividend. (2) The three-month London Interbank Offered Rate (LIBOR). (3) Principal and premium amount repaid was €980 million. US dollar amount paid includes cash settlement from derivatives entered in connection with the transaction. See Note 7 for information on cross currency swaps. (4) Principal and premium amount repaid was €463 million. US dollar amount paid includes cash settlement from derivatives entered in connection with the transaction. See Note 7 for information on cross currency swaps. Issuances (amounts in millions) Principal Amount Issued Net Proceeds (1) Three Months Ended March 31, 2020 Verizon 3.600% notes due 2060 $ 2,385 $ 2,369 Verizon 3.000% notes due 2027 750 747 Verizon 3.150% notes due 2030 1,500 1,489 Verizon 4.000% notes due 2050 1,250 1,241 Three Months Ended March 31, 2020 total $ 5,885 $ 5,846 Three Months Ended June 30, 2020 Verizon 2.500% due 2030 (2) C$ 1,000 $ 705 Verizon 3.625% due 2050 (2) C$ 300 $ 209 Verizon 1.300% notes due 2033 (2) € 1,350 $ 1,464 Verizon 1.850% notes due 2040 (2) € 800 $ 869 Three Months Ended June 30, 2020 total 3,247 Six Months Ended June 30, 2020 total $ 9,093 (1) Net proceeds were net of discount and issuance costs. (2) See Note 7 for information on cross currency swaps. Short-Term Borrowing and Commercial Paper Program During the three months ended June 30, 2020, we repaid $700 million related to our bilateral short-term uncommitted bank credit facility. As of June 30, 2020, we had no amount outstanding related to this facility. In April 2020, we issued $3.5 billion in commercial paper. During the three months ended June 30, 2020, we repaid $2.5 billion of commercial paper. As of June 30, 2020, we had $1.0 billion of commercial paper outstanding. In July 2020, we repaid $460 million of commercial paper. Asset-Backed Debt As of June 30, 2020, the carrying value of our asset-backed debt was $10.6 billion. Our asset-backed debt includes Asset-Backed Notes (ABS Notes) issued to third-party investors (Investors) and loans (ABS Financing Facilities) received from banks and their conduit facilities (collectively, the Banks). Our consolidated asset-backed debt bankruptcy remote legal entities (each, an ABS Entity or collectively, the ABS Entities) issue the debt or are otherwise party to the transaction documentation in connection with our asset-backed debt transactions. Under the terms of our asset-backed debt, Cellco Partnership (Cellco) and certain other affiliates of Verizon (collectively, the Originators) transfer device payment plan agreement receivables to one of the ABS Entities, which in turn transfers such receivables to another ABS Entity that issues the debt. Verizon entities retain the equity interests in the ABS Entities, which represent the rights to all funds not needed to make required payments on the asset-backed debt and other related payments and expenses. Our asset-backed debt is secured by the transferred device payment plan agreement receivables and future collections on such receivables. The device payment plan agreement receivables transferred to the ABS Entities and related assets, consisting primarily of restricted cash, will only be available for payment of asset-backed debt and expenses related thereto, payments to the Originators in respect of additional transfers of device payment plan agreement receivables, and other obligations arising from our asset-backed debt transactions, and will not be available to pay other obligations or claims of Verizon’s creditors until the associated asset-backed debt and other obligations are satisfied. The Investors or Banks, as applicable, which hold our asset-backed debt have legal recourse to the assets securing the debt, but do not have any recourse to Verizon with respect to the payment of principal and interest on the debt. Under a parent support agreement, Verizon has agreed to guarantee certain of the payment obligations of Cellco and the Originators to the ABS Entities. Cash collections on the device payment plan agreement receivables collateralizing asset-backed debt securities are required at certain specified times to be placed into segregated accounts. Deposits to the segregated accounts are considered restricted cash and are included in Prepaid expenses and other and Other assets in our condensed consolidated balance sheets. Proceeds from our asset-backed debt transactions are reflected in Cash flows from financing activities in our condensed consolidated statements of cash flows. The asset-backed debt issued and the assets securing this debt are included in our condensed consolidated balance sheets. As mentioned above, the holders of our asset-backed debt do not have any recourse to Verizon with respect to the payment of principal and interest on the debt. However, if an early amortization of our asset-backed debt occurs, including as a result of increased customer delinquencies or losses relating to COVID-19, all collections on the securitized device payment plan agreement receivables would be used to pay principal and interest on the asset-backed debt, and our financing cash flow requirements would increase for the twelve months immediately following an early amortization event. ABS Notes During the six months ended June 30, 2020, we completed the following ABS Notes transactions: (dollars in millions) Interest Rates % Expected Weighted-average Life to Maturity (in years) Principal Amount Issued March 2020 A-1a Senior class notes 1.850 2.46 $ 1,326 A-1b Senior floating rate class notes LIBOR + 0.270 (1) 2.46 100 B Junior class notes 1.980 3.18 98 C Junior class notes 2.060 3.36 76 Total $ 1,600 (1) The one-month LIBOR at June 30, 2020 was 0.162%. Under the terms of each series of ABS Notes, there is a two In July 2020, in connection with an optional acquisition of receivables and redemption of ABS Notes, we made a principal payment, in whole, for $137 million. ABS Financing Facilities In May 2020, we amended and restated our outstanding ABS financing facility originally entered into in 2016, and previously amended and restated in 2019, with a number of financial institutions (ABS Financing Facility). Under the terms of the ABS Financing Facility, the financial institutions make advances under asset-backed loans backed by device payment plan agreement receivables of both consumer and business customers. One loan agreement is outstanding in connection with the ABS Financing Facility, and such loan agreement was amended and restated in May 2020. The loan agreement has a final maturity date in May 2024 and bears interest at floating rates. There is a one year revolving period until May 2021, which may be extended with the approval of the financial institutions. Under the loan agreement, we have the right to prepay all or a portion of the advances at any time without penalty, but in certain cases, with breakage costs. Subject to certain conditions, we may also remove receivables from the ABS Entity. In January 2020, we prepaid $1.3 billion of the loan under the loan agreement. In March 2020, we borrowed an additional $1.3 billion under the loan agreement. In June 2020, we prepaid $1.5 billion of the loan under the loan agreement. The aggregate outstanding balance under the ABS Financing Facility was $1.8 billion as of June 30, 2020. Variable Interest Entities (VIEs) The ABS Entities meet the definition of a VIE for which we have determined that we are the primary beneficiary as we have both the power to direct the activities of the entity that most significantly impact the entity’s performance and the obligation to absorb losses or the right to receive benefits of the entity. Therefore, the assets, liabilities and activities of the ABS Entities are consolidated in our financial results and are included in amounts presented on the face of our condensed consolidated balance sheets. The assets and liabilities related to our asset-backed debt arrangements included in our condensed consolidated balance sheets were as follows: At June 30, At December 31, (dollars in millions) 2020 2019 Assets Account receivable, net $ 9,981 $ 10,525 Prepaid expenses and other 1,053 1,180 Other assets 3,584 3,856 Liabilities Accounts payable and accrued liabilities 10 11 Short-term portion of long-term debt 3,894 5,578 Long-term debt 6,713 6,791 See Note 6 for additional information on device payment plan agreement receivables used to secure asset-backed debt. Long-Term Credit Facilities At June 30, 2020 (dollars in millions) Maturities Facility Capacity Unused Capacity Principal Amount Outstanding Verizon revolving credit facility (1) 2022 $ 9,500 $ 9,392 n/a Various export credit facilities (2) 2022-2027 7,000 1,500 $ 4,206 Total $ 16,500 $ 10,892 $ 4,206 n/a - not applicable (1) The revolving credit facility does not require us to comply with financial covenants or maintain specified credit ratings, and it permits us to borrow even if our business has incurred a material adverse change. The revolving credit facility provides for the issuance of letters of credit. (2) These credit facilities are used to finance equipment-related purchases. Borrowings under certain of these facilities amortize semi-annually in equal installments up to the applicable maturity dates. Maturities reflect maturity dates of principal amounts outstanding. In July 2020, we drew $500 million from a $1.5 billion export credit facility entered into in June 2020 and fully drew down $500 million from an export credit facility entered into in July 2020. Non-Cash Transactions During the six months ended June 30, 2020 and 2019, we financed, primarily through vendor financing arrangements, the purchase of approximately $673 million and $221 million, respectively, of long-lived assets consisting primarily of network equipment. At June 30, 2020 and December 31, 2019, $1.3 billion and $1.1 billion, respectively, relating to these financing arrangements, including those entered into in prior years and liabilities assumed through acquisitions, remained outstanding. These purchases are non-cash financing activities and therefore are not reflected within Capital expenditures in our condensed consolidated statements of cash flows. Guarantees We guarantee the debentures of our operating telephone company subsidiaries. As of June 30, 2020, $765 million aggregate principal amount of these obligations remained outstanding. Each guarantee will remain in place for the life of the obligation unless terminated pursuant to its terms, including the operating telephone company no longer being a wholly-owned subsidiary of Verizon. We also guarantee the debt obligations of GTE LLC as successor in interest to GTE Corporation that were issued and outstanding prior to July 1, 2003. As of June 30, 2020, $391 million aggregate principal amount of these obligations remained outstanding. Covenants We and our consolidated subsidiaries are in compliance with all of our restrictive covenants. |
Device Payment Plan Agreement a
Device Payment Plan Agreement and Wireless Service Receivables | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Device Payment Plan and Wireless Service Receivables | Note 6. Device Payment Plan Agreement and Wireless Service Receivables The following table presents information about accounts receivable, net of allowances, recorded in our condensed consolidated balance sheet: At June 30, 2020 (dollars in millions) Device payment plan agreement Wireless Other receivables (1) Total Accounts receivable (2) $ 12,017 $ 5,089 $ 6,636 $ 23,742 Less Allowance for credit losses 584 234 252 1,070 Accounts receivable, net of allowance $ 11,433 $ 4,855 $ 6,384 $ 22,672 (1) Other receivables primarily include wireline receivables, Verizon Media receivables and other receivables, the allowances for which are individually insignificant. (2) Following the adoption of Topic 326 on January 1, 2020, accounts receivable are measured at amortized cost. Under the Verizon device payment program, our eligible wireless customers purchase wireless devices under a device payment plan agreement. Customers that activate service on devices purchased under the device payment program pay lower service fees as compared to those under our fixed-term service plans, and their device payment plan charge is included on their wireless monthly bill. As of January 2017, we no longer offer Consumer customers new fixed-term, subsidized service plans for phones; however, we continue to offer subsidized plans to our Business customers. We also continue to service existing plans for customers who have not yet purchased and activated devices under the Verizon device payment program. The following table displays device payment plan agreement receivables, net, recognized in our condensed consolidated balance sheets: At June 30, At December 31, (dollars in millions) 2020 2019 (1) Device payment plan agreement receivables, gross $ 17,079 $ 19,493 Unamortized imputed interest (429) (454) Device payment plan agreement receivables, at amortized cost 16,650 19,039 Allowance (2) (795) (472) Device payment plan agreement receivables, net $ 15,855 $ 18,567 Classified in our condensed consolidated balance sheets: Accounts receivable, net $ 11,433 $ 13,045 Other assets 4,422 5,522 Device payment plan agreement receivables, net $ 15,855 $ 18,567 (1) Balances reflected are prior to the adoption of Topic 326 on January 1, 2020. (2) Includes allowance for both short-term and long-term device payment plan agreement receivables. The allowance as of June 30, 2020 and December 31, 2019 relate to our provision for credit losses and doubtful accounts, respectively. Included in our device payment plan agreement receivables at June 30, 2020 and December 31, 2019, are net device payment plan agreement receivables of $13.5 billion and $14.3 billion, respectively, which have been transferred to ABS Entities and continue to be reported in our condensed consolidated balance sheets. See Note 5 for additional information. We believe the carrying value of these receivables approximate their fair value using a Level 3 expected cash flow model. For indirect channel wireless contracts with customers, we impute risk adjusted interest on the device payment plan agreement receivables. We record the imputed interest as a reduction to the related accounts receivable. Interest income, which is included within Service revenues and other in our condensed consolidated statements of income, is recognized over the financed device payment term. Promotions We may offer certain promotions that allow a customer to trade in their owned device in connection with the purchase of a new device. Under these types of promotions, the customer receives a credit for the value of the trade-in device. In addition, we may provide the customer with additional future credits that will be applied against the customer’s monthly bill as long as service is maintained. We recognize a liability measured at fair value, for the customer’s right to trade-in the device which is determined by considering several factors, including the weighted-average selling prices obtained in recent resales of similar devices eligible for trade-in. Future credits are recognized when earned by the customer. Device payment plan agreement receivables, net, does not reflect the trade-in device liability. At June 30, 2020 and December 31, 2019, the amount of trade-in liability was $55 million and $103 million, respectively. From time to time, we offer certain marketing promotions that allow our customers to upgrade to a new device after paying down a certain specified portion of the required device payment plan agreement amount as well as trading in their device in good working order. When a customer enters into a device payment plan agreement with the right to upgrade to a new device, we account for this trade-in right as a guarantee obligation. Origination of Device Payment Plan Agreements When originating device payment plan agreements, we use internal and external data sources to create a credit risk score to measure the credit quality of a customer and to determine eligibility for the device payment program. Verizon’s experience has been that the payment attributes of longer tenured customers are highly predictive for estimating their reliability to make future payments. Customers with longer tenures tend to exhibit similar risk characteristics to other customers with longer tenures, and receivables due from customers with longer tenures tend to perform better than receivables from customers that have not previously been Verizon customers. As a result of this experience, we make initial lending decisions based upon whether the customers are "established customers" or "short-tenured customers." If a Consumer customer has been a customer for 45 days or more, or if a Business customer has been a customer for 12 months or more, the customer is considered an "established customer." For established customers, the credit decision and ongoing credit monitoring processes rely on a combination of internal and external data sources. If a Consumer customer has been a customer less than 45 days, or a Business customer has been a customer for less than 12 months, the customer is considered a "short-tenured customer." For short-tenured customers, the credit decision and credit monitoring processes rely more heavily on external data sources. Internal data and/or external credit data are obtained from the credit reporting agencies, if available, to create a custom credit risk score for Consumer customers. The custom credit risk score is generated automatically from the applicant’s credit data using proprietary custom credit models. The credit risk score measures the likelihood that the potential customer will become severely delinquent and be disconnected for non-payment. For a small portion of short-tenured customer applications, a traditional credit report is not available from one of the national credit reporting agencies because the potential customer does not have sufficient credit history. In those instances, alternative credit data is used for the risk assessment. For Business customers, we also verify the existence of the business with external data sources. Based on the custom credit risk score, we assign each customer to a credit class, each of which has specified offers of credit including an account level spending limit and either a maximum amount of credit allowed per device or a required down payment percentage. During the fourth quarter 2018, we moved all Consumer customers, short-tenured and established, from a required down payment percentage, between zero and 100%, to a maximum amount of credit per device. Credit Quality Information Subsequent to origination, we assess indicators for the quality of our wireless device payment plan agreement portfolio using two models, one for new customers and one for existing customers. The model for new customers pools all Consumer and Business wireless customers based on 210 days and 12 months or less, respectively, as "new customers." The model for existing customers pools all Consumer and Business wireless customers based on 210 days and 12 months or more, respectively, as "existing customers." The following table presents device payment plan agreement receivables, at amortized cost, as of June 30, 2020, by credit quality indicator and year of origination: Year of Origination (dollars in millions) 2020 2019 2018 Prior to 2018 Total New customers $ 1,042 $ 1,360 $ 169 $ 43 $ 2,614 Existing customers 4,964 7,857 1,186 29 14,036 Total $ 6,006 $ 9,217 $ 1,355 $ 72 $ 16,650 The data presented in the table above was last updated on June 30, 2020. We assess indicators for the quality of our wireless service receivables portfolio as one overall pool. As of June 30, 2020, wireless service receivables, at amortized cost, originating in 2020 and 2019 were $5.0 billion and an insignificant amount, respectively. Allowance for Credit Losses The credit quality indicators are used in determining the estimated amount and the timing of expected credit losses for the device payment plan agreement and wireless service receivables portfolios. Activity in the allowance for credit losses by portfolio segment of receivables were as follows: (dollars in millions) Device Payment Plan Agreement Receivables (1) Wireless Service Plan Receivables Balance at January 1, 2020 $ 472 $ 156 Opening balance sheet adjustment related to Topic 326 adoption 265 — Adjusted opening balance, January 1, 2020 737 156 Current period provision for expected credit losses 449 252 Write-offs charged against the allowance (415) (208) Recoveries collected 24 34 Balance at June 30, 2020 $ 795 $ 234 (1) Includes allowance for both short-term and long-term device payment plan agreement receivables. We monitor delinquency and write-off experience based on the quality of our device payment plan agreement and wireless service receivables portfolios. The extent of our collection efforts with respect to a particular customer are based on the results of our proprietary custom internal scoring models that analyze the customer’s past performance to predict the likelihood of the customer falling further delinquent. These custom scoring models assess a number of variables, including origination characteristics, customer account history and payment patterns. Since our customers’ behaviors may be impacted by general economic conditions, we analyzed whether changes in macroeconomic conditions impact our credit loss experience and have concluded that our credit loss estimates are generally not materially impacted by reasonable and supportable forecasts of future economic conditions. Based on the score derived from these models, accounts are grouped by risk category to determine the collection strategy to be applied to such accounts. For device payment plan agreement receivables, we consider an account to be delinquent and in default status if there are unpaid charges remaining on the account on the day after the bill’s due date. For wireless service receivables, an account is considered delinquent 34 days after the bill cycle date. The risk class determines the speed and severity of the collections effort including initiatives taken to facilitate customer payment. As of June 30, 2020, our allowance for credit losses considered the current and potential future impacts caused by COVID-19 based on available information to date. The impacts also include the Company's commitment to the FCC's "Keep Americans Connected" pledge, through which we pledged to waive late fees for, and not terminate service to, any of our consumer or small business customers who informed us that they had been impacted financially by the COVID-19 crisis through May 13, which we extended to June 30, 2020. The balance and aging of the device payment plan agreement receivables, at amortized cost, were as follows: At June 30, (dollars in millions) 2020 Unbilled $ 15,720 Billed: Current 832 Past due 98 Device payment plan agreement receivables, at amortized cost $ 16,650 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 7. Fair Value Measurements Recurring Fair Value Measurements The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2020: (dollars in millions) Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Prepaid expenses and other: Foreign exchange forwards $ — $ 5 $ — $ 5 Other assets: Fixed income securities — 458 — 458 Interest rate swaps — 1,935 — 1,935 Cross currency swaps — 89 — 89 Interest rate caps — 1 — 1 Total $ — $ 2,488 $ — $ 2,488 Liabilities: Other current liabilities: Forward starting interest rate swaps $ — $ 568 $ — $ 568 Other liabilities: Interest rate swaps — 340 — 340 Cross currency swaps — 2,590 — 2,590 Forward starting interest rate swaps — 552 — 552 Interest rate caps — 1 — 1 Total $ — $ 4,051 $ — $ 4,051 The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2019: (dollars in millions) Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Other assets: Fixed income securities $ — $ 442 $ — $ 442 Interest rate swaps — 568 — 568 Cross currency swaps — 211 — 211 Foreign exchange forwards — 5 — 5 Total $ — $ 1,226 $ — $ 1,226 Liabilities: Other liabilities: Interest rate swaps $ — $ 173 $ — $ 173 Cross currency swaps — 912 — 912 Forward starting interest rate swaps — 604 — 604 Total $ — $ 1,689 $ — $ 1,689 (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. Certain of our equity investments do not have readily determinable fair values and are excluded from the tables above. Such investments are measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer and are included in Investments in unconsolidated businesses in our condensed consolidated balance sheets. As of June 30, 2020 and December 31, 2019, the carrying amount of our investments without readily determinable fair values were $301 million and $284 million, respectively. During both the three and six months ended June 30, 2020, there were insignificant adjustments due to observable price changes and there were insignificant impairment charges. Cumulative adjustments due to observable price changes and impairment charges were insignificant. Fixed income securities consist primarily of investments in municipal bonds. For fixed income securities that do not have quoted prices in active markets, we use alternative matrix pricing resulting in these debt securities being classified as Level 2. Derivative contracts are valued using models based on readily observable market parameters for all substantial terms of our derivative contracts and thus are classified within Level 2. We use mid-market pricing for fair value measurements of our derivative instruments. Our derivative instruments are recorded on a gross basis. Cash flows from derivatives designated in a qualifying hedging relationship are classified in the same category as the cash flows from the hedged items. We recognize transfers between levels of the fair value hierarchy as of the end of the reporting period. Fair Value of Short-term and Long-term Debt The fair value of our debt is determined using various methods, including quoted prices for identical debt instruments, which is a Level 1 measurement, as well as quoted prices for similar debt instruments with comparable terms and maturities, which is a Level 2 measurement. The fair value of our short-term and long-term debt, excluding finance leases, was as follows: Fair Value (dollars in millions) Carrying Level 1 Level 2 Level 3 Total At December 31, 2019 $ 110,373 $ 86,712 $ 42,488 $ — $ 129,200 At June 30, 2020 111,631 89,504 47,916 — 137,420 Derivative Instruments We enter into derivative transactions primarily to manage our exposure to fluctuations in foreign currency exchange rates and interest rates. We employ risk management strategies, which may include the use of a variety of derivatives including interest rate swaps, cross currency swaps, forward starting interest rate swaps, treasury rate locks, interest rate caps and foreign exchange forwards. We do not hold derivatives for trading purposes. The following table sets forth the notional amounts of our outstanding derivative instruments: At June 30, At December 31, (dollars in millions) 2020 2019 Interest rate swaps $ 16,996 $ 17,004 Cross currency swaps 24,740 23,070 Forward starting interest rate swaps 2,000 3,000 Interest rate caps 158 679 Foreign exchange forwards 960 1,130 Interest Rate Swaps We enter into interest rate swaps to achieve a targeted mix of fixed and variable rate debt. We principally receive fixed rates and pay variable rates that are currently based on LIBOR, resulting in a net increase or decrease to Interest expense. These swaps are designated as fair value hedges and hedge against interest rate risk exposure of designated debt issuances. We record the interest rate swaps at fair value in our condensed consolidated balance sheets as assets and liabilities. Changes in the fair value of the interest rate swaps are recorded to Interest expense, which are offset by changes in the fair value of the hedged debt due to changes in interest rates. During the three months ended June 30, 2020, we did not enter into any interest rate swaps and we settled interest rate swaps with a total notional value of $929 million. During the six months ended June 30, 2020 we entered into and settled interest rate swaps with a total notional value of $2.4 billion. During the three months ended June 30, 2019, we did not enter into or settle any interest rate swaps. During the six months ended June 30, 2019, we entered into and settled interest rate swaps with a total notional value of $510 million and $1.2 billion, respectively. The ineffective portion of these interest rate swaps were losses of an insignificant amount and gains of $56 million for the three and six months ended June 30, 2020, respectively. The ineffective portion of these interest rate swaps were gains of an insignificant amount and $60 million for the three and six months ended June 30, 2019, respectively. The following amounts were recorded in Long-term debt in our condensed consolidated balance sheets related to cumulative basis adjustments for fair value hedges: At June 30, At December 31, (dollars in millions) 2020 2019 Carrying amount of hedged liabilities $ 18,438 $ 17,337 Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities 1,544 433 Cross Currency Swaps We have entered into cross currency swaps designated as cash flow hedges to exchange our British Pound Sterling, Euro, Swiss Franc, Canadian Dollar and Australian Dollar-denominated cash flows into U.S. dollars and to fix our cash payments in U.S. dollars, as well as to mitigate the impact of foreign currency transaction gains or losses. During both the three and six months ended June 30, 2020, we entered into cross currency swaps with a total notional value of $3.3 billion and we settled cross currency swaps with a total notional value of $1.6 billion. During the three and six months ended June 30, 2020, a pre-tax gain of $1.0 billion and a pre-tax loss of $1.9 billion, respectively, were recognized in Other comprehensive income (loss). During the three and six months ended June 30, 2019, we entered into cross currency swaps with a total notional value of $3.5 billion and we did not settle any cross currency swaps. During the three and six months ended June 30, 2019, pre-tax losses of $340 million and $328 million, respectively, were recognized in Other comprehensive income (loss). A portion of the gains recognized in Other comprehensive income (loss) was reclassified to Other income (expense), net to offset the related pre-tax foreign currency transaction gain or loss on the underlying hedged item. Forward Starting Interest Rate Swaps We have entered into forward starting interest rate swaps designated as cash flow hedges in order to manage our exposure to interest rate changes on future forecasted transactions. We hedge our exposure to the variability in future cash flows based on the expected maturities of the related forecasted debt issuance. During the three and six months ended June 30, 2020, we did not enter into any new forward starting interest rate swaps. During the three months ended June 30, 2020, we did not settle any forward starting interest rate swaps. During the six months ended June 30, 2020, we settled forward starting interest rate swaps with a total notional value of $1.0 billion. During the three and six months ended June 30, 2019, we did not enter into any new forward starting interest rate swaps. During the three months ended June 30, 2019, we did not settle any forward starting interest rate swaps and, for the six months ended June 30, 2019, we settled forward starting interest rate swaps with a total notional value of $1.0 billion. During the three and six months ended June 30, 2020, an insignificant pre-tax gain and a pre-tax loss of $809 million, respectively, were recognized in Other comprehensive income (loss), resulting from interest rate movements. During the three and six months ended June 30, 2019, pre-tax losses of $293 million and $497 million, respectively, were recognized in Other comprehensive income (loss), resulting from interest rate movements. Treasury Rate Locks We enter into treasury rate locks to mitigate our interest rate risk. During the three months ended June 30, 2020, we did not enter into or settle any treasury rate locks designated as cash flow hedges, and we did not recognize any amount in our condensed consolidated financial statement. During the six months ended June 30, 2020, we entered into and settled treasury rate locks designated as cash flow hedges with a total notional value of $500 million, and we recognized an insignificant pre-tax loss in Other comprehensive income (loss). During the three and six months ended June 30, 2019, we did not enter into or settle any treasury rate locks designated as cash flow hedges, and we did not recognize any amount in our condensed consolidated financial statements. Net Investment Hedges We have designated certain foreign currency debt instruments as net investment hedges to mitigate foreign exchange exposure related to non-U.S. dollar net investments in certain foreign subsidiaries against changes in foreign exchange rates. The notional amount of the Euro-denominated debt designated as a net investment hedge was €750 million as of both June 30, 2020 and December 31, 2019. Undesignated Derivatives We also have the following derivative contracts which we use as economic hedges but for which we have elected not to apply hedge accounting. Interest Rate Caps We enter into interest rate caps to mitigate our interest exposure to interest rate increases on our ABS Financing Facilities and ABS Notes. We recognized insignificant pre-tax losses in Interest expense during the three and six months ended June 30, 2020 and 2019. Foreign Exchange Forwards We enter into British Pound Sterling and Euro foreign exchange forwards to mitigate our foreign exchange rate risk related to non-functional currency denominated monetary assets and liabilities of international subsidiaries, as well as foreign exchange risk related to debt settlements. During the three months ended June 30, 2020, we entered into and settled foreign exchange forwards with a total notional value of $4.3 billion and $4.2 billion, respectively. During the six months ended June 30, 2020, we entered into and settled foreign exchange forwards with a total notional value of $6.9 billion and $7.1 billion, respectively. During the three months ended June 30, 2019, we entered into and settled foreign exchange forwards with a total notional value of $3.1 billion and $3.0 billion, respectively. During the six months ended June 30, 2019, we entered into and settled foreign exchange forwards with a total notional value of $6.1 billion and $5.6 billion, respectively. During the three and six months ended June 30, 2020, pre-tax gains of $81 million and an insignificant amount, respectively, were recognized in Other income (expense), net. During the three and six months ended June 30, 2019, insignificant pre-tax losses were recognized in Other income (expense), net. Treasury Rate Locks We enter into treasury rate locks to mitigate our interest rate risk. During the three months ended June 30, 2020, we did not enter into or settle any treasury rate locks, and we did not recognize any amount in our condensed consolidated financial statement. During the six months ended June 30, 2020, we entered into and settled treasury rate locks with a total notional value of $1.6 billion, and we recognized an insignificant pre-tax gain in Interest expense. During the three and six months ended June 30, 2019, we did not enter into or settle any treasury rate locks, and we did not recognize any amount in our condensed consolidated financial statements. Concentrations of Credit Risk Financial instruments that subject us to concentrations of credit risk consist primarily of temporary cash investments, short-term and long-term investments, trade receivables, including device payment plan agreement receivables, certain notes receivable, including lease receivables, and derivative contracts. |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Note 8. Employee Benefits We maintain non-contributory defined benefit pension plans for certain employees. In addition, we maintain postretirement health care and life insurance plans for certain retirees and their dependents, which are both contributory and non-contributory, and include a limit on our share of the cost for certain current and future retirees. In accordance with our accounting policy for pension and other postretirement benefits, operating expenses include service costs associated with pension and other postretirement benefits while other credits and/or charges based on actuarial assumptions, including projected discount rates, an estimated return on plan assets, and impact from health care trend rates are reported in Other income (expense), net. These estimates are updated in the fourth quarter to reflect actual return on plan assets and updated actuarial assumptions or upon a remeasurement event. The adjustment is recognized in the income statement during the fourth quarter or upon a remeasurement event pursuant to our accounting policy for the recognition of actuarial gains and losses. Net Periodic Benefit Cost (Income) The following table summarizes the components of net periodic benefit cost (income) related to our pension and postretirement health care and life insurance plans: (dollars in millions) Pension Health Care and Life Three Months Ended June 30, 2020 2019 2020 2019 Service cost - Cost of services $ 59 $ 50 $ 23 $ 19 Service cost - Selling, general and administrative expense 14 12 5 5 Service cost $ 73 $ 62 $ 28 $ 24 Amortization of prior service cost (credit) $ 15 $ 16 $ (242) $ (243) Expected return on plan assets (296) (282) (6) (10) Interest cost 137 176 107 158 Remeasurement loss, net 153 — — — Other components $ 9 $ (90) $ (141) $ (95) Total $ 82 $ (28) $ (113) $ (71) (dollars in millions) Pension Health Care and Life Six Months Ended June 30, 2020 2019 2020 2019 Service cost - Cost of services $ 118 $ 100 $ 45 $ 39 Service cost - Selling, general and administrative expense 28 23 10 9 Service cost $ 146 $ 123 $ 55 $ 48 Amortization of prior service cost (credit) $ 30 $ 31 $ (483) $ (486) Expected return on plan assets (593) (564) (13) (19) Interest cost 277 354 214 315 Remeasurement loss (gain), net 335 (96) — — Other components $ 49 $ (275) $ (282) $ (190) Total $ 195 $ (152) $ (227) $ (142) The service cost component of net periodic benefit cost (income) is recorded in Cost of services and Selling, general and administrative expense in the condensed consolidated statements of income while the other components, including remeasurement adjustments, if any, are recorded in Other income (expense), net. 2018 Voluntary Separation Program In December 2018, eligible employees began separating from the Company under a Voluntary Separation Program. The program finished at the end of June 2019. The severance benefits payments to these employees were substantially completed by the end of September 2019. Severance Payments During the three and six months ended June 30, 2020, we paid severance benefits of $52 million and $175 million, respectively. During the six months ended June 30, 2020, we recorded net pre-tax severance charges of an insignificant amount. At June 30, 2020, we had a remaining severance liability of $443 million, a portion of which includes future contractual payments to separated employees. Employer Contributions During the six months ended June 30, 2020, we made no contributions to our qualified pension plans. During both the three and six months ended June 30, 2020, we made insignificant contributions to our nonqualified pension plans. During the six months ended June 30, 2019, we made a discretionary pension contribution of $300 million to our qualified pension plans. We do not expect mandatory pension funding through December 31, 2020. There have been no significant changes with respect to the nonqualified pension and other postretirement benefit plans contributions in 2020. Remeasurement loss (gain), net During the three and six months ended June 30, 2020, we recorded net pre-tax remeasurement losses of $153 million and $335 million in our pension plans, respectively, triggered by settlements. During the three months ended June 30, 2020, we recorded a net pre-tax remeasurement loss of $153 million primarily driven by a $163 million charge mainly due to the difference between our estimated return on assets and our actual return on assets and changes in our lump sum interest rate assumptions used to determine the current year liabilities of our pension plans, offset by a credit due to changes in our discount rate. During the three months ended March 31, 2020, we recorded a net pre-tax remeasurement loss of $182 million primarily driven by a $196 million charge mainly due to changes in our discount rate and lump sum interest rate assumptions used to determine the current year liabilities of our pension plans, offset by a credit due to the difference between our estimated return on assets and our actual return on assets. During the six months ended June 30, 2019, we recorded a net pre-tax remeasurement gain of $96 million in our pension plans triggered by the Voluntary Separation Program for select U.S.-based management employees and other headcount reduction initiatives, primarily driven by a $150 million credit due to the difference between our estimated return on assets and our actual return on assets, offset by a $54 million charge due to a change in our discount rate assumption used to determine the current year liabilities of our pension plans. |
Equity and Accumulated Other Co
Equity and Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Equity and Accumulated Other Comprehensive Income | Note 9. Equity and Accumulated Other Comprehensive Income Equity Changes in the components of Total equity were as follows: (dollars in millions, except per share amounts, and shares in thousands) Three months ended June 30, 2020 2019 Shares Amount Shares Amount Common Stock Balance at beginning of period 4,291,434 $ 429 4,291,434 $ 429 Balance at end of period 4,291,434 429 4,291,434 429 Additional Paid In Capital Balance at beginning of period 13,302 13,418 Other (21) 1 Balance at end of period 13,281 13,419 Retained Earnings Balance at beginning of period 54,557 46,493 Net income attributable to Verizon 4,700 3,944 Dividends declared ($0.6150, $0.6025 per share) (2,544) (2,492) Other 33 — Balance at end of period 56,746 47,945 Accumulated Other Comprehensive Income (Loss) Balance at beginning of period attributable to Verizon (1,502) 2,216 Foreign currency translation adjustments 77 (67) Unrealized gain (loss) on cash flow hedges 314 (537) Unrealized gain on marketable securities 6 4 Defined benefit pension and postretirement plans (169) (169) Other comprehensive income (loss) 228 (769) Balance at end of period attributable to Verizon (1,274) 1,447 Treasury Stock Balance at beginning of period (153,438) (6,725) (155,727) (6,825) Employee plans 58 3 58 2 Balance at end of period (153,380) (6,722) (155,669) (6,823) Deferred Compensation-ESOPs and Other Balance at beginning of period 149 125 Restricted stock equity grant 157 44 Amortization (69) (4) Balance at end of period 237 165 Noncontrolling Interests Balance at beginning of period 1,443 1,604 Total comprehensive income 139 130 Distributions and other (166) (369) Balance at end of period 1,416 1,365 Total Equity $ 64,113 $ 57,947 (dollars in millions, except per share amounts, and shares in thousands) Six months ended June 30, 2020 2019 Shares Amount Shares Amount Common Stock Balance at beginning of year 4,291,434 $ 429 4,291,434 $ 429 Balance at end of period 4,291,434 429 4,291,434 429 Additional Paid In Capital Balance at beginning of year 13,419 13,437 Other (138) (18) Balance at end of period 13,281 13,419 Retained Earnings Balance at beginning of year 53,147 43,542 Opening balance sheet adjustment (200) (1) 410 (2) Adjusted opening balance 52,947 43,952 Net income attributable to Verizon 8,856 8,976 Dividends declared ($1.2300, $1.2050 per share) (5,090) (4,983) Other 33 — Balance at end of period 56,746 47,945 Accumulated Other Comprehensive Income (Loss) Balance at beginning of year attributable to Verizon 998 2,370 Foreign currency translation adjustments (43) (43) Unrealized loss on cash flow hedges (1,896) (550) Unrealized gain on marketable securities 5 8 Defined benefit pension and postretirement plans (338) (338) Other comprehensive loss (2,272) (923) Balance at end of period attributable to Verizon (1,274) 1,447 Treasury Stock Balance at beginning of year (155,606) (6,820) (159,400) (6,986) Employee plans 2,222 98 3,726 163 Shareholder plans 4 — 5 — Balance at end of period (153,380) (6,722) (155,669) (6,823) Deferred Compensation-ESOPs and Other Balance at beginning of year 222 353 Restricted stock equity grant 172 79 Amortization (157) (267) Balance at end of period 237 165 Noncontrolling Interests Balance at beginning of year 1,440 1,565 Opening balance sheet adjustment — 1 (2) Adjusted opening balance 1,440 1,566 Total comprehensive income 270 258 Distributions and other (294) (459) Balance at end of period 1,416 1,365 Total Equity $ 64,113 $ 57,947 (1) The opening balance sheet adjustment for the six months ended June 30, 2020 is due to the adoption of Topic 326 on January 1, 2020. See Note 1 for additional information. (2) Opening balance sheet adjustments for the six months ended June 30, 2019 are due to the adoption of Topic 842 on January 1, 2019. Refer to the consolidated financial statements included in Verizon's Annual Report on Form 10-K for the year ended December 31, 2019 for additional information. Common Stock In February 2020, the Verizon Board of Directors authorized a share buyback program to repurchase up to 100 million shares of the Company's common stock. The program will terminate when the aggregate number of shares purchased reaches 100 million or a new share repurchase plan superseding the current plan is authorized, whichever is sooner. Verizon did not repurchase any shares of Verizon common stock under our authorized share buyback programs during the six months ended June 30, 2020. At June 30, 2020, the maximum number of shares that could be purchased by or on behalf of Verizon under our share buyback program was 100 million. Common stock has been used from time to time to satisfy some of the funding requirements of employee and shareowner plans, including 2.2 million common shares issued from Treasury stock during the six months ended June 30, 2020. Accumulated Other Comprehensive Income (Loss) The changes in the balances of Accumulated other comprehensive income (loss) by component were as follows: (dollars in millions) Foreign Unrealized loss on cash flow hedges Unrealized gain on marketable securities Defined Total Balance at January 1, 2020 $ (584) $ (816) $ 27 $ 2,371 $ 998 Other comprehensive income (loss) (43) (2,065) 5 — (2,103) Amounts reclassified to net income — 169 — (338) (169) Net other comprehensive income (loss) (43) (1,896) 5 (338) (2,272) Balance at June 30, 2020 $ (627) $ (2,712) $ 32 $ 2,033 $ (1,274) The amounts presented above in net other comprehensive income (loss) are net of taxes. The amounts reclassified to net income related to unrealized loss on cash flow hedges in the table above are included in Other income (expense), net and Interest expense in our condensed consolidated statements of income. See Note 7 for additional information. The amounts reclassified to net income related to defined benefit pension and postretirement plans in the table above are included in Cost of services and Selling, general and administrative expense in our condensed consolidated statements of income. See Note 8 for additional information. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Note 10. Segment Information Reportable Segments We have two reportable segments that we operate and manage as strategic business units - Consumer and Business. We measure and evaluate our reportable segments based on segment operating income, consistent with the chief operating decision maker’s assessment of segment performance. Our segments and their principal activities consist of the following: Segment Description Verizon 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 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 by our Verizon Fios product portfolio and over a traditional copper-based network to customers who are not served by Fios. Verizon Our Business segment provides wireless and wireline communications services and products, including data, video and conferencing 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. Our Consumer segment’s wireless and wireline products and services are available to our retail customers, as well as resellers that purchase wireless network access from us on a wholesale basis. Our Business segment’s wireless and wireline products and services are organized by the primary customer groups targeted by these offerings: Small and Medium Business, Global Enterprise, Public Sector and Other, and Wholesale. Corporate and other includes the results of our media business, Verizon Media, and other businesses, investments in unconsolidated businesses, unallocated corporate expenses, certain pension and other employee benefit related costs and interest and financing expenses. Corporate and other also includes the historical results of divested businesses and other adjustments and gains and losses that are not allocated in assessing segment performance due to their nature. Although such transactions are excluded from the business segment results, they are included in reported consolidated earnings. Gains and losses from these transactions that are not individually significant are included in segment results as these items are included in the chief operating decision maker’s assessment of segment performance. The reconciliation of segment operating revenues and expenses to consolidated operating revenues and expenses below includes the effects of special items that the chief operating decision maker does not consider in assessing segment performance, primarily because of their nature. The following table provides operating financial information for our two reportable segments: Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2020 2019 2020 2019 External Operating Revenues Consumer Service $ 15,898 $ 16,350 $ 32,241 $ 32,611 Wireless equipment 3,209 3,904 6,586 8,070 Other 1,946 1,680 3,932 3,350 Total Consumer 21,053 21,934 42,759 44,031 Business Small and Medium Business 2,597 2,781 5,395 5,485 Global Enterprise 2,587 2,673 5,217 5,363 Public Sector and Other 1,523 1,492 2,997 2,963 Wholesale 756 810 1,516 1,650 Total Business 7,463 7,756 15,125 15,461 Total reportable segments $ 28,516 $ 29,690 $ 57,884 $ 59,492 Intersegment Revenues Consumer $ 60 $ 61 $ 119 $ 112 Business 19 12 38 26 Total reportable segments $ 79 $ 73 $ 157 $ 138 Total Operating Revenues Consumer $ 21,113 $ 21,995 $ 42,878 $ 44,143 Business (1) 7,482 7,768 15,163 15,487 Total reportable segments $ 28,595 $ 29,763 $ 58,041 $ 59,630 Operating Income Consumer $ 7,064 $ 7,336 $ 14,346 $ 14,586 Business 946 1,071 1,900 2,119 Total reportable segments $ 8,010 $ 8,407 $ 16,246 $ 16,705 (1) Service and other revenues included in our Business segment amounted to approximately $7.0 billion for both the three months ended June 30, 2020 and 2019. Service and other revenues included in our Business segment amounted to approximately $13.9 billion for both the six months ended June 30, 2020 and 2019. Wireless equipment revenues included in our Business segment amounted to approximately $546 million and $1.3 billion for the three and six months ended June 30, 2020, respectively, and approximately $814 million and $1.6 billion for the three and six months ended June 30, 2019, respectively. The following table provides Fios revenue for our two reportable segments: Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2020 2019 2020 2019 Consumer $ 2,754 $ 2,772 $ 5,553 $ 5,536 Business 260 239 522 482 Total Fios revenue $ 3,014 $ 3,011 $ 6,075 $ 6,018 The following table provides Wireless service revenue for our reportable segments and includes intersegment activity: Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2020 2019 2020 2019 Consumer $ 13,087 $ 13,456 $ 26,563 $ 26,813 Business 2,861 2,775 5,742 5,469 Total Wireless service revenue $ 15,948 $ 16,231 $ 32,305 $ 32,282 Reconciliation to Consolidated Financial Information A reconciliation of the reportable segment operating revenues to consolidated operating revenues is as follows: Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2020 2019 2020 2019 Total reportable segment operating revenues $ 28,595 $ 29,763 $ 58,041 $ 59,630 Corporate and other 1,967 2,412 4,239 4,747 Eliminations (115) (104) (223) (178) Total consolidated operating revenues $ 30,447 $ 32,071 $ 62,057 $ 64,199 A reconciliation of the total reportable segment's operating income to consolidated income before provision for income taxes is as follows: Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2020 2019 2020 2019 Total reportable segment operating income $ 8,010 $ 8,407 $ 16,246 $ 16,705 Corporate and other (445) (354) (704) (740) Other components of net periodic benefit charges (Note 8) (204) (203) (407) (406) Loss on spectrum license transaction (Note 3) — — (1,195) — Total consolidated operating income 7,361 7,850 13,940 15,559 Equity in losses of unconsolidated businesses (13) (13) (25) (19) Other income (expense), net (72) (1,312) 71 (1,017) Interest expense (1,089) (1,215) (2,123) (2,425) Income Before Provision For Income Taxes $ 6,187 $ 5,310 $ 11,863 $ 12,098 No single customer accounted for more than 10% of our total operating revenues during the three and six months ended June 30, 2020 and 2019. The chief operating decision maker does not review disaggregated assets on a segment basis; therefore, such information is not presented. Depreciation included in the measure of segment profitability is primarily allocated based on proportional usage. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11. Commitments and Contingencies In the ordinary course of business, Verizon is involved in various commercial litigation and regulatory proceedings at the state and federal level. Where it is determined, in consultation with counsel based on litigation and settlement risks, that a loss is probable and estimable in a given matter, the Company establishes an accrual. In none of the currently pending matters is the amount of accrual material. An estimate of the reasonably possible loss or range of loss in excess of the amounts already accrued cannot be made at this time due to various factors typical in contested proceedings, including: (1) uncertain damage theories and demands; (2) a less than complete factual record; (3) uncertainty concerning legal theories and their resolution by courts or regulators; and (4) the unpredictable nature of the opposing party and its demands. We continuously monitor these proceedings as they develop and adjust any accrual or disclosure as needed. We do not expect that the ultimate resolution of any pending regulatory or legal matter in future periods will have a material effect on our financial condition, but it could have a material effect on our results of operations for a given reporting period. Verizon is currently involved in approximately 25 federal district court actions alleging that Verizon is infringing various patents. Most of these cases are brought by non-practicing entities and effectively seek only monetary damages; a small number are brought by companies that have sold products and could seek injunctive relief as well. These cases have progressed to various stages and a small number may go to trial in the coming 12 months if they are not otherwise resolved. In connection with the execution of agreements for the sales of businesses and investments, Verizon ordinarily provides representations and warranties to the purchasers pertaining to a variety of nonfinancial matters, such as ownership of the securities being sold, as well as indemnity from certain financial losses. From time to time, counterparties may make claims under these provisions, and Verizon will seek to defend against those claims and resolve them in the ordinary course of business. Subsequent to the sale of Verizon Information Services Canada in 2004, we continue to provide a guarantee to publish directories, which was issued when the directory business was purchased in 2001 and had a 30-year term (before extensions). The preexisting guarantee continues, without modification, despite the subsequent sale of Verizon Information Services Canada and the spin-off of our domestic print and internet yellow pages directories business. The possible financial impact of the guarantee, which is not expected to be adverse, cannot be reasonably estimated as a variety of the potential outcomes available under the guarantee result in costs and revenues or benefits that may offset each other. We do not believe performance under the guarantee is likely. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) in the United States (U.S.) and based upon Securities and Exchange Commission rules that permit reduced disclosure for interim periods. For a more complete discussion of significant accounting policies and certain other information, you should refer to the financial statements included in Verizon Communications Inc.'s (Verizon or the Company) Annual Report on Form 10-K for the year ended December 31, 2019. These financial statements reflect all adjustments that are necessary for a fair presentation of results of operations and financial condition for the interim periods shown, including normal recurring accruals and other items. The results for the interim periods are not necessarily indicative of results for the full year. |
Reclassifications | Certain amounts have been reclassified to conform to the current period’s presentation. |
Use of Estimates | Use of Estimates U.S. GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures. These estimates and assumptions take into account historical and forward-looking factors that the Company believes are reasonable, including but not limited to the potential impacts arising from the recent novel coronavirus (COVID-19) and public and private sector policies and initiatives aimed at reducing its transmission. As the extent and duration of the impacts from COVID-19 remain unclear, the Company’s estimates and assumptions may evolve as conditions change. Actual results could differ significantly from those estimates. Examples of significant estimates include the allowance for credit losses, the recoverability of intangible assets, property, plant and equipment, and other long-lived assets, the incremental borrowing rate for the lease liability, fair value measurements, including those related to financial instruments, goodwill, spectrum licenses and intangible assets, unrecognized tax benefits, valuation allowances on tax assets, pension and postretirement benefit obligations, contingencies and the identification and valuation of assets acquired and liabilities assumed in connection with business combinations. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash We consider all highly liquid investments with an original maturity of 90 days or less when purchased to be cash equivalents. Cash equivalents are stated at cost, which approximates quoted market value and includes amounts held in money market funds. |
Allowance for Credit Losses | Allowance for Credit Losses Prior to January 1, 2020, accounts receivable were recorded at cost less an allowance for doubtful accounts. The gross amount of accounts receivable and corresponding allowance for doubtful accounts were presented separately in the condensed consolidated balance sheets. We maintained allowances for uncollectible accounts receivable, including our direct-channel device payment plan agreement receivables, for estimated losses resulting from the failure or inability of our customers to make required payments. Indirect-channel device payment receivables are considered financial instruments and were initially recorded at fair value net of imputed interest, and credit losses were recorded as incurred. However, receivable balances were assessed quarterly for impairment and an allowance was recorded if the receivable was considered impaired. Subsequent to January 1, 2020, accounts receivable are recorded at amortized cost less an allowance for credit losses that are not expected to be recovered. The gross amount of accounts receivable and corresponding allowance for credit losses are presented separately in the condensed consolidated balance sheets. We maintain allowances for credit losses resulting from the expected failure or inability of our customers to make required payments. We recognize the allowance for credit losses at inception and reassess quarterly based on management’s expectation of the asset’s collectability. The allowance is based on multiple factors including historical experience with bad debts, the credit quality of the customer base, the aging of such receivables and current macroeconomic conditions, such as COVID-19, as well as management’s expectations of conditions in the future, if applicable. Our allowance for credit losses is based on management’s assessment of the collectability of assets pooled together with similar risk characteristics. We pool our device payment plan agreement receivables based on the credit quality indicators and shared risk characteristics of "new customers" and "existing customers." New customers are defined as customers who have been with Verizon for less than 210 days if they are classified as a Consumer segment customer, or less than 12 months if they are classified as a Business segment customer. Existing customers are defined as customers who have been with Verizon for more than 210 days if they are in Consumer, or more than 12 months if they are in Business. We record an allowance to reduce the receivables to the amount that is expected to be collectible. For device payment plan agreement receivables, we record bad debt expense based on a default and loss calculation using our proprietary loss model. The expected loss rate is determined based on customer credit scores and other qualitative factors as noted above. The loss rate is assigned individually on a customer by customer basis and the custom credit scores are then aggregated by vintage and used in our proprietary loss model to calculate the weighted-average loss rate used for determining the allowance balance. We monitor the collectability of our wireless service receivables as one overall pool. Wireline service receivables are disaggregated and pooled by the following customer groups: consumer, small and medium business, global enterprise and wholesale. For wireless service receivables and wireline consumer and small and medium business receivables, the allowance is calculated based on a 12 month rolling average write-off balance multiplied by the average life-cycle of an account from billing to write-off. The risk of loss is assessed over the contractual life of the receivables and we adjust the historical loss amounts for current and future conditions based on management’s qualitative considerations. For global enterprise and wholesale wireline receivables, the allowance for credit losses is based on historical write-off experience and individual customer credit risk, if applicable. We consider multiple factors in determining the allowance as discussed above. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standard The following Accounting Standard Updates (ASUs) were issued by the Financial Accounting Standards Board (FASB), and have been recently adopted by Verizon. Description Date of Adoption Effect on Financial Statements ASU 2016-13, ASU 2018-19, ASU 2019-04, and ASU 2019-05, Financial Instruments - Credit Losses (Topic 326) In June 2016, the FASB issued Topic 326 which requires certain financial assets to be measured at amortized cost net of an allowance for estimated credit losses, such that the net receivable represents the present value of expected cash collection. In addition, this standard update requires that certain financial assets be measured at amortized cost reflecting an allowance for estimated credit losses expected to occur over the life of the assets. The estimate of credit losses must be based on all relevant information including historical information, current conditions, and reasonable and supportable forecasts that affect the collectability of the amounts. An entity applies the update through a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (January 1, 2020). A prospective transition approach is required for debt securities for which an other-than-temporary impairment has been recognized before the effective date. Early adoption of this standard is permitted. 1/1/2020 We adopted Topic 326 beginning on January 1, 2020 using the modified retrospective approach with a cumulative effect adjustment to opening retained earnings recorded at the beginning of the period of adoption. Therefore upon adoption, we recognized and measured estimated credit losses without revising comparative period information or disclosures. We recorded the pre-tax cumulative effect of $265 million ($200 million net of tax) as a reduction to the January 1, 2020 opening balance of retained earnings, which was related to the timing of expected credit loss recognition for certain device payment plan receivables based upon reasonable and supportable forecasts of the future economic condition as of January 1, 2020. Additionally, the adoption of the standard impacted the condensed consolidated balance sheet by presenting financial assets measured at amortized cost separate from the allowance for estimated credit losses. There is no significant impact to our operating results for the current period due to this standard update. ASU 2020-04, Reference Rate Reform (Topic 848) Topic 848 provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. Topic 848 provides optional expedients and exceptions for applying U.S. GAAP to transactions affected by reference rate reform if certain criteria are met. 3/12/2020 Topic 848 was effective for the Company beginning on March 12, 2020, and we will apply the amendments prospectively through December 31, 2022. There was no impact to our condensed consolidated financial statements for the current period as a result of adopting this standard update. The cumulative after-tax effect of the changes made to our condensed consolidated balance sheet for the adoption of Topic 326 were as follows: (dollars in millions) At December 31, 2019 Adjustments due to At January 1, 2020 Allowance for credit losses $ — $ 919 $ 919 Allowance for doubtful accounts 733 (733) — Other assets 10,141 (79) 10,062 Deferred income taxes 34,703 (65) 34,638 Retained earnings 53,147 (200) 52,947 |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash, cash equivalents and restricted cash are included in the following line items in the condensed consolidated balance sheets: At June 30, At December 31, Increase / (Decrease) (dollars in millions) 2020 2019 Cash and cash equivalents $ 7,882 $ 2,594 $ 5,288 Restricted cash: Prepaid expenses and other 1,101 1,221 (120) Other assets 130 102 28 Cash, cash equivalents and restricted cash $ 9,113 $ 3,917 $ 5,196 |
Schedule of Restricted Cash | Cash, cash equivalents and restricted cash are included in the following line items in the condensed consolidated balance sheets: At June 30, At December 31, Increase / (Decrease) (dollars in millions) 2020 2019 Cash and cash equivalents $ 7,882 $ 2,594 $ 5,288 Restricted cash: Prepaid expenses and other 1,101 1,221 (120) Other assets 130 102 28 Cash, cash equivalents and restricted cash $ 9,113 $ 3,917 $ 5,196 |
Schedule of New Accounting Pronouncements | The following Accounting Standard Updates (ASUs) were issued by the Financial Accounting Standards Board (FASB), and have been recently adopted by Verizon. Description Date of Adoption Effect on Financial Statements ASU 2016-13, ASU 2018-19, ASU 2019-04, and ASU 2019-05, Financial Instruments - Credit Losses (Topic 326) In June 2016, the FASB issued Topic 326 which requires certain financial assets to be measured at amortized cost net of an allowance for estimated credit losses, such that the net receivable represents the present value of expected cash collection. In addition, this standard update requires that certain financial assets be measured at amortized cost reflecting an allowance for estimated credit losses expected to occur over the life of the assets. The estimate of credit losses must be based on all relevant information including historical information, current conditions, and reasonable and supportable forecasts that affect the collectability of the amounts. An entity applies the update through a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (January 1, 2020). A prospective transition approach is required for debt securities for which an other-than-temporary impairment has been recognized before the effective date. Early adoption of this standard is permitted. 1/1/2020 We adopted Topic 326 beginning on January 1, 2020 using the modified retrospective approach with a cumulative effect adjustment to opening retained earnings recorded at the beginning of the period of adoption. Therefore upon adoption, we recognized and measured estimated credit losses without revising comparative period information or disclosures. We recorded the pre-tax cumulative effect of $265 million ($200 million net of tax) as a reduction to the January 1, 2020 opening balance of retained earnings, which was related to the timing of expected credit loss recognition for certain device payment plan receivables based upon reasonable and supportable forecasts of the future economic condition as of January 1, 2020. Additionally, the adoption of the standard impacted the condensed consolidated balance sheet by presenting financial assets measured at amortized cost separate from the allowance for estimated credit losses. There is no significant impact to our operating results for the current period due to this standard update. ASU 2020-04, Reference Rate Reform (Topic 848) Topic 848 provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. Topic 848 provides optional expedients and exceptions for applying U.S. GAAP to transactions affected by reference rate reform if certain criteria are met. 3/12/2020 Topic 848 was effective for the Company beginning on March 12, 2020, and we will apply the amendments prospectively through December 31, 2022. There was no impact to our condensed consolidated financial statements for the current period as a result of adopting this standard update. The cumulative after-tax effect of the changes made to our condensed consolidated balance sheet for the adoption of Topic 326 were as follows: (dollars in millions) At December 31, 2019 Adjustments due to At January 1, 2020 Allowance for credit losses $ — $ 919 $ 919 Allowance for doubtful accounts 733 (733) — Other assets 10,141 (79) 10,062 Deferred income taxes 34,703 (65) 34,638 Retained earnings 53,147 (200) 52,947 |
Revenues and Contract Costs (Ta
Revenues and Contract Costs (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Receivables from Contracts with Customers | The following table presents information about receivables from contracts with customers: At June 30, At January 1, At June 30, At January 1, (dollars in millions) 2020 2020 2019 2019 Receivables (1) $ 10,967 $ 12,078 $ 12,173 $ 12,104 Device payment plan agreement receivables (2) 10,047 11,741 10,053 8,940 (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. |
Contract with Customer, Asset and Liability | The following table presents information about contract balances: At June 30, At January 1, At June 30, At January 1, (dollars in millions) 2020 2020 2019 2019 Contract asset $ 993 $ 1,150 $ 1,059 $ 1,003 Contract liability (1) 5,275 5,307 4,946 4,943 (1) Revenue recognized related to contract liabilities existing at January 1, 2020 were $204 million and $4.0 billion, for the three and six months ended June 30, 2020, respectively. Revenue recognized related to contract liabilities existing at January 1, 2019 were $194 million and $3.9 billion, for the three and six months ended June 30, 2019, respectively. The balance of contract assets and contract liabilities recorded in our condensed consolidated balance sheets were as follows: At June 30, At December 31, (dollars in millions) 2020 2019 Assets Prepaid expenses and other $ 762 $ 848 Other assets 231 302 Total $ 993 $ 1,150 Liabilities Other current liabilities $ 4,636 $ 4,651 Other liabilities 639 656 Total $ 5,275 $ 5,307 |
Capitalized Contract Cost | The balances of deferred contract costs included in our condensed consolidated balance sheets were as follows: At June 30, At December 31, (dollars in millions) 2020 2019 Assets Prepaid expenses and other $ 2,455 $ 2,578 Other assets 1,791 1,911 Total $ 4,246 $ 4,489 |
Wireless Licenses, Goodwill a_2
Wireless Licenses, Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Wireless Licenses | The carrying amounts of Wireless licenses are as follows: At June 30, At December 31, (dollars in millions) 2020 2019 Wireless licenses $ 95,767 $ 95,059 |
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of Goodwill are as follows: (dollars in millions) Consumer Business Other Total Balance at January 1, 2020 (1) $ 17,104 $ 7,269 $ 16 $ 24,389 Acquisitions (Note 3) — 282 — 282 Reclassifications, adjustments and other — (4) — (4) Balance at June 30, 2020 (1) $ 17,104 $ 7,547 $ 16 $ 24,667 |
Composition of Other Intangible Assets, Net | The following table displays the composition of Other intangible assets, net as well as the respective amortization period: At June 30, 2020 At December 31, 2019 (dollars in millions) Gross Accumulated Net Gross Accumulated Net Customer lists (8 to 13 years) $ 4,009 $ (1,740) $ 2,269 $ 3,896 $ (1,511) $ 2,385 Non-network internal-use software (5 to 7 years) 21,670 (15,292) 6,378 20,530 (14,418) 6,112 Other (2 to 25 years) 1,981 (1,028) 953 1,967 (966) 1,001 Total $ 27,660 $ (18,060) $ 9,600 $ 26,393 $ (16,895) $ 9,498 |
Amortization Expense for Other Intangible Assets | The amortization expense for Other intangible assets was as follows: Three Months Ended Six Months Ended (dollars in millions) June 30, June 30, 2020 $ 605 $ 1,197 2019 569 1,124 |
Estimated Future Amortization Expense for Other Intangible Assets | The estimated future amortization expense for Other intangible assets for the remainder of the current year and next 5 years is as follows: Years (dollars in millions) Remainder of 2020 $ 1,194 2021 2,136 2022 1,838 2023 1,476 2024 1,105 2025 746 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Transactions | The following table shows the transactions that occurred during the six months ended June 30, 2020. Redemptions, Repurchases and Repayments (dollars in millions) Principal Redeemed/ Repurchased/ Repaid Amount Paid (1) Three Months Ended March 31, 2020 Verizon 4.950% notes due 2047 $ 1,475 $ 1,475 Three Months Ended March 31, 2020 total $ 1,475 $ 1,475 Three Months Ended June 30, 2020 Verizon 5.143% preferred stock due 2020 $ 1,650 $ 1,650 Verizon floating rate (LIBOR +0.550%) notes due 2020 (2) 1,018 1,018 Verizon 4.600% notes due 2021 920 949 Verizon 3.125% notes due 2022 1,256 1,314 Open market repurchases of various Verizon notes 121 143 Verizon 2.375% notes due 2022 (3) € 935 $ 1,199 Verizon 0.500% notes due 2022 (4) € 454 $ 517 Three Months Ended June 30, 2020 total 6,790 Six Months Ended June 30, 2020 total $ 8,265 (1) Represents amount paid to redeem, repurchase or repay, excluding interest or dividend. (2) The three-month London Interbank Offered Rate (LIBOR). (3) Principal and premium amount repaid was €980 million. US dollar amount paid includes cash settlement from derivatives entered in connection with the transaction. See Note 7 for information on cross currency swaps. (4) Principal and premium amount repaid was €463 million. US dollar amount paid includes cash settlement from derivatives entered in connection with the transaction. See Note 7 for information on cross currency swaps. Issuances (amounts in millions) Principal Amount Issued Net Proceeds (1) Three Months Ended March 31, 2020 Verizon 3.600% notes due 2060 $ 2,385 $ 2,369 Verizon 3.000% notes due 2027 750 747 Verizon 3.150% notes due 2030 1,500 1,489 Verizon 4.000% notes due 2050 1,250 1,241 Three Months Ended March 31, 2020 total $ 5,885 $ 5,846 Three Months Ended June 30, 2020 Verizon 2.500% due 2030 (2) C$ 1,000 $ 705 Verizon 3.625% due 2050 (2) C$ 300 $ 209 Verizon 1.300% notes due 2033 (2) € 1,350 $ 1,464 Verizon 1.850% notes due 2040 (2) € 800 $ 869 Three Months Ended June 30, 2020 total 3,247 Six Months Ended June 30, 2020 total $ 9,093 (1) Net proceeds were net of discount and issuance costs. (2) See Note 7 for information on cross currency swaps. During the six months ended June 30, 2020, we completed the following ABS Notes transactions: (dollars in millions) Interest Rates % Expected Weighted-average Life to Maturity (in years) Principal Amount Issued March 2020 A-1a Senior class notes 1.850 2.46 $ 1,326 A-1b Senior floating rate class notes LIBOR + 0.270 (1) 2.46 100 B Junior class notes 1.980 3.18 98 C Junior class notes 2.060 3.36 76 Total $ 1,600 (1) The one-month LIBOR at June 30, 2020 was 0.162%. |
Schedule of Assets and Liabilities Related to Asset-backed Debt Arrangements | The assets and liabilities related to our asset-backed debt arrangements included in our condensed consolidated balance sheets were as follows: At June 30, At December 31, (dollars in millions) 2020 2019 Assets Account receivable, net $ 9,981 $ 10,525 Prepaid expenses and other 1,053 1,180 Other assets 3,584 3,856 Liabilities Accounts payable and accrued liabilities 10 11 Short-term portion of long-term debt 3,894 5,578 Long-term debt 6,713 6,791 |
Schedule of Line of Credit Facilities | At June 30, 2020 (dollars in millions) Maturities Facility Capacity Unused Capacity Principal Amount Outstanding Verizon revolving credit facility (1) 2022 $ 9,500 $ 9,392 n/a Various export credit facilities (2) 2022-2027 7,000 1,500 $ 4,206 Total $ 16,500 $ 10,892 $ 4,206 n/a - not applicable (1) The revolving credit facility does not require us to comply with financial covenants or maintain specified credit ratings, and it permits us to borrow even if our business has incurred a material adverse change. The revolving credit facility provides for the issuance of letters of credit. |
Device Payment Plan and Wireles
Device Payment Plan and Wireless Service Receivables (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Schedule of Receivables, Net | The following table presents information about accounts receivable, net of allowances, recorded in our condensed consolidated balance sheet: At June 30, 2020 (dollars in millions) Device payment plan agreement Wireless Other receivables (1) Total Accounts receivable (2) $ 12,017 $ 5,089 $ 6,636 $ 23,742 Less Allowance for credit losses 584 234 252 1,070 Accounts receivable, net of allowance $ 11,433 $ 4,855 $ 6,384 $ 22,672 (1) Other receivables primarily include wireline receivables, Verizon Media receivables and other receivables, the allowances for which are individually insignificant. (2) Following the adoption of Topic 326 on January 1, 2020, accounts receivable are measured at amortized cost. The following table displays device payment plan agreement receivables, net, recognized in our condensed consolidated balance sheets: At June 30, At December 31, (dollars in millions) 2020 2019 (1) Device payment plan agreement receivables, gross $ 17,079 $ 19,493 Unamortized imputed interest (429) (454) Device payment plan agreement receivables, at amortized cost 16,650 19,039 Allowance (2) (795) (472) Device payment plan agreement receivables, net $ 15,855 $ 18,567 Classified in our condensed consolidated balance sheets: Accounts receivable, net $ 11,433 $ 13,045 Other assets 4,422 5,522 Device payment plan agreement receivables, net $ 15,855 $ 18,567 (1) Balances reflected are prior to the adoption of Topic 326 on January 1, 2020. |
Financing Receivable Credit Quality Indicators | The following table presents device payment plan agreement receivables, at amortized cost, as of June 30, 2020, by credit quality indicator and year of origination: Year of Origination (dollars in millions) 2020 2019 2018 Prior to 2018 Total New customers $ 1,042 $ 1,360 $ 169 $ 43 $ 2,614 Existing customers 4,964 7,857 1,186 29 14,036 Total $ 6,006 $ 9,217 $ 1,355 $ 72 $ 16,650 |
Activity in Allowance for Credit Losses for Device Payment Plan Agreement Receivables | Activity in the allowance for credit losses by portfolio segment of receivables were as follows: (dollars in millions) Device Payment Plan Agreement Receivables (1) Wireless Service Plan Receivables Balance at January 1, 2020 $ 472 $ 156 Opening balance sheet adjustment related to Topic 326 adoption 265 — Adjusted opening balance, January 1, 2020 737 156 Current period provision for expected credit losses 449 252 Write-offs charged against the allowance (415) (208) Recoveries collected 24 34 Balance at June 30, 2020 $ 795 $ 234 (1) Includes allowance for both short-term and long-term device payment plan agreement receivables. |
Balance and Aging of Device Payment Plan Agreement Receivables on Gross Basis | The balance and aging of the device payment plan agreement receivables, at amortized cost, were as follows: At June 30, (dollars in millions) 2020 Unbilled $ 15,720 Billed: Current 832 Past due 98 Device payment plan agreement receivables, at amortized cost $ 16,650 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2020: (dollars in millions) Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Prepaid expenses and other: Foreign exchange forwards $ — $ 5 $ — $ 5 Other assets: Fixed income securities — 458 — 458 Interest rate swaps — 1,935 — 1,935 Cross currency swaps — 89 — 89 Interest rate caps — 1 — 1 Total $ — $ 2,488 $ — $ 2,488 Liabilities: Other current liabilities: Forward starting interest rate swaps $ — $ 568 $ — $ 568 Other liabilities: Interest rate swaps — 340 — 340 Cross currency swaps — 2,590 — 2,590 Forward starting interest rate swaps — 552 — 552 Interest rate caps — 1 — 1 Total $ — $ 4,051 $ — $ 4,051 The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2019: (dollars in millions) Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Other assets: Fixed income securities $ — $ 442 $ — $ 442 Interest rate swaps — 568 — 568 Cross currency swaps — 211 — 211 Foreign exchange forwards — 5 — 5 Total $ — $ 1,226 $ — $ 1,226 Liabilities: Other liabilities: Interest rate swaps $ — $ 173 $ — $ 173 Cross currency swaps — 912 — 912 Forward starting interest rate swaps — 604 — 604 Total $ — $ 1,689 $ — $ 1,689 (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. |
Schedule of Fair Value of Short-Term and Long-Term Debt, Excluding Capital Leases | The fair value of our short-term and long-term debt, excluding finance leases, was as follows: Fair Value (dollars in millions) Carrying Level 1 Level 2 Level 3 Total At December 31, 2019 $ 110,373 $ 86,712 $ 42,488 $ — $ 129,200 At June 30, 2020 111,631 89,504 47,916 — 137,420 |
Notional Amounts of Outstanding Derivative Instruments | The following table sets forth the notional amounts of our outstanding derivative instruments: At June 30, At December 31, (dollars in millions) 2020 2019 Interest rate swaps $ 16,996 $ 17,004 Cross currency swaps 24,740 23,070 Forward starting interest rate swaps 2,000 3,000 Interest rate caps 158 679 Foreign exchange forwards 960 1,130 |
Schedule of Cumulative Basis Adjustments for Fair Value hedges | The following amounts were recorded in Long-term debt in our condensed consolidated balance sheets related to cumulative basis adjustments for fair value hedges: At June 30, At December 31, (dollars in millions) 2020 2019 Carrying amount of hedged liabilities $ 18,438 $ 17,337 Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities 1,544 433 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Benefit or (Income) Cost Related to Pension and Postretirement Health Care and Life Insurance | The following table summarizes the components of net periodic benefit cost (income) related to our pension and postretirement health care and life insurance plans: (dollars in millions) Pension Health Care and Life Three Months Ended June 30, 2020 2019 2020 2019 Service cost - Cost of services $ 59 $ 50 $ 23 $ 19 Service cost - Selling, general and administrative expense 14 12 5 5 Service cost $ 73 $ 62 $ 28 $ 24 Amortization of prior service cost (credit) $ 15 $ 16 $ (242) $ (243) Expected return on plan assets (296) (282) (6) (10) Interest cost 137 176 107 158 Remeasurement loss, net 153 — — — Other components $ 9 $ (90) $ (141) $ (95) Total $ 82 $ (28) $ (113) $ (71) (dollars in millions) Pension Health Care and Life Six Months Ended June 30, 2020 2019 2020 2019 Service cost - Cost of services $ 118 $ 100 $ 45 $ 39 Service cost - Selling, general and administrative expense 28 23 10 9 Service cost $ 146 $ 123 $ 55 $ 48 Amortization of prior service cost (credit) $ 30 $ 31 $ (483) $ (486) Expected return on plan assets (593) (564) (13) (19) Interest cost 277 354 214 315 Remeasurement loss (gain), net 335 (96) — — Other components $ 49 $ (275) $ (282) $ (190) Total $ 195 $ (152) $ (227) $ (142) |
Equity and Accumulated Other _2
Equity and Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Changes in Components of Total Equity | Changes in the components of Total equity were as follows: (dollars in millions, except per share amounts, and shares in thousands) Three months ended June 30, 2020 2019 Shares Amount Shares Amount Common Stock Balance at beginning of period 4,291,434 $ 429 4,291,434 $ 429 Balance at end of period 4,291,434 429 4,291,434 429 Additional Paid In Capital Balance at beginning of period 13,302 13,418 Other (21) 1 Balance at end of period 13,281 13,419 Retained Earnings Balance at beginning of period 54,557 46,493 Net income attributable to Verizon 4,700 3,944 Dividends declared ($0.6150, $0.6025 per share) (2,544) (2,492) Other 33 — Balance at end of period 56,746 47,945 Accumulated Other Comprehensive Income (Loss) Balance at beginning of period attributable to Verizon (1,502) 2,216 Foreign currency translation adjustments 77 (67) Unrealized gain (loss) on cash flow hedges 314 (537) Unrealized gain on marketable securities 6 4 Defined benefit pension and postretirement plans (169) (169) Other comprehensive income (loss) 228 (769) Balance at end of period attributable to Verizon (1,274) 1,447 Treasury Stock Balance at beginning of period (153,438) (6,725) (155,727) (6,825) Employee plans 58 3 58 2 Balance at end of period (153,380) (6,722) (155,669) (6,823) Deferred Compensation-ESOPs and Other Balance at beginning of period 149 125 Restricted stock equity grant 157 44 Amortization (69) (4) Balance at end of period 237 165 Noncontrolling Interests Balance at beginning of period 1,443 1,604 Total comprehensive income 139 130 Distributions and other (166) (369) Balance at end of period 1,416 1,365 Total Equity $ 64,113 $ 57,947 (dollars in millions, except per share amounts, and shares in thousands) Six months ended June 30, 2020 2019 Shares Amount Shares Amount Common Stock Balance at beginning of year 4,291,434 $ 429 4,291,434 $ 429 Balance at end of period 4,291,434 429 4,291,434 429 Additional Paid In Capital Balance at beginning of year 13,419 13,437 Other (138) (18) Balance at end of period 13,281 13,419 Retained Earnings Balance at beginning of year 53,147 43,542 Opening balance sheet adjustment (200) (1) 410 (2) Adjusted opening balance 52,947 43,952 Net income attributable to Verizon 8,856 8,976 Dividends declared ($1.2300, $1.2050 per share) (5,090) (4,983) Other 33 — Balance at end of period 56,746 47,945 Accumulated Other Comprehensive Income (Loss) Balance at beginning of year attributable to Verizon 998 2,370 Foreign currency translation adjustments (43) (43) Unrealized loss on cash flow hedges (1,896) (550) Unrealized gain on marketable securities 5 8 Defined benefit pension and postretirement plans (338) (338) Other comprehensive loss (2,272) (923) Balance at end of period attributable to Verizon (1,274) 1,447 Treasury Stock Balance at beginning of year (155,606) (6,820) (159,400) (6,986) Employee plans 2,222 98 3,726 163 Shareholder plans 4 — 5 — Balance at end of period (153,380) (6,722) (155,669) (6,823) Deferred Compensation-ESOPs and Other Balance at beginning of year 222 353 Restricted stock equity grant 172 79 Amortization (157) (267) Balance at end of period 237 165 Noncontrolling Interests Balance at beginning of year 1,440 1,565 Opening balance sheet adjustment — 1 (2) Adjusted opening balance 1,440 1,566 Total comprehensive income 270 258 Distributions and other (294) (459) Balance at end of period 1,416 1,365 Total Equity $ 64,113 $ 57,947 (1) The opening balance sheet adjustment for the six months ended June 30, 2020 is due to the adoption of Topic 326 on January 1, 2020. See Note 1 for additional information. (2) Opening balance sheet adjustments for the six months ended June 30, 2019 are due to the adoption of Topic 842 on January 1, 2019. Refer to the consolidated financial statements included in Verizon's Annual Report on Form 10-K for the year ended December 31, 2019 for additional information. |
Schedule of Components in Accumulated Other Comprehensive Income | The changes in the balances of Accumulated other comprehensive income (loss) by component were as follows: (dollars in millions) Foreign Unrealized loss on cash flow hedges Unrealized gain on marketable securities Defined Total Balance at January 1, 2020 $ (584) $ (816) $ 27 $ 2,371 $ 998 Other comprehensive income (loss) (43) (2,065) 5 — (2,103) Amounts reclassified to net income — 169 — (338) (169) Net other comprehensive income (loss) (43) (1,896) 5 (338) (2,272) Balance at June 30, 2020 $ (627) $ (2,712) $ 32 $ 2,033 $ (1,274) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Operating Information | Our segments and their principal activities consist of the following: Segment Description Verizon 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 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 by our Verizon Fios product portfolio and over a traditional copper-based network to customers who are not served by Fios. Verizon Our Business segment provides wireless and wireline communications services and products, including data, video and conferencing 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. The following table provides operating financial information for our two reportable segments: Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2020 2019 2020 2019 External Operating Revenues Consumer Service $ 15,898 $ 16,350 $ 32,241 $ 32,611 Wireless equipment 3,209 3,904 6,586 8,070 Other 1,946 1,680 3,932 3,350 Total Consumer 21,053 21,934 42,759 44,031 Business Small and Medium Business 2,597 2,781 5,395 5,485 Global Enterprise 2,587 2,673 5,217 5,363 Public Sector and Other 1,523 1,492 2,997 2,963 Wholesale 756 810 1,516 1,650 Total Business 7,463 7,756 15,125 15,461 Total reportable segments $ 28,516 $ 29,690 $ 57,884 $ 59,492 Intersegment Revenues Consumer $ 60 $ 61 $ 119 $ 112 Business 19 12 38 26 Total reportable segments $ 79 $ 73 $ 157 $ 138 Total Operating Revenues Consumer $ 21,113 $ 21,995 $ 42,878 $ 44,143 Business (1) 7,482 7,768 15,163 15,487 Total reportable segments $ 28,595 $ 29,763 $ 58,041 $ 59,630 Operating Income Consumer $ 7,064 $ 7,336 $ 14,346 $ 14,586 Business 946 1,071 1,900 2,119 Total reportable segments $ 8,010 $ 8,407 $ 16,246 $ 16,705 (1) Service and other revenues included in our Business segment amounted to approximately $7.0 billion for both the three months ended June 30, 2020 and 2019. Service and other revenues included in our Business segment amounted to approximately $13.9 billion for both the six months ended June 30, 2020 and 2019. Wireless equipment revenues included in our Business segment amounted to approximately $546 million and $1.3 billion for the three and six months ended June 30, 2020, respectively, and approximately $814 million and $1.6 billion for the three and six months ended June 30, 2019, respectively. The following table provides Fios revenue for our two reportable segments: Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2020 2019 2020 2019 Consumer $ 2,754 $ 2,772 $ 5,553 $ 5,536 Business 260 239 522 482 Total Fios revenue $ 3,014 $ 3,011 $ 6,075 $ 6,018 The following table provides Wireless service revenue for our reportable segments and includes intersegment activity: Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2020 2019 2020 2019 Consumer $ 13,087 $ 13,456 $ 26,563 $ 26,813 Business 2,861 2,775 5,742 5,469 Total Wireless service revenue $ 15,948 $ 16,231 $ 32,305 $ 32,282 |
Summary of Reconciliation of Segment Operating Revenues | A reconciliation of the reportable segment operating revenues to consolidated operating revenues is as follows: Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2020 2019 2020 2019 Total reportable segment operating revenues $ 28,595 $ 29,763 $ 58,041 $ 59,630 Corporate and other 1,967 2,412 4,239 4,747 Eliminations (115) (104) (223) (178) Total consolidated operating revenues $ 30,447 $ 32,071 $ 62,057 $ 64,199 |
Summary of Reconciliation of Segment Operating Income | A reconciliation of the total reportable segment's operating income to consolidated income before provision for income taxes is as follows: Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2020 2019 2020 2019 Total reportable segment operating income $ 8,010 $ 8,407 $ 16,246 $ 16,705 Corporate and other (445) (354) (704) (740) Other components of net periodic benefit charges (Note 8) (204) (203) (407) (406) Loss on spectrum license transaction (Note 3) — — (1,195) — Total consolidated operating income 7,361 7,850 13,940 15,559 Equity in losses of unconsolidated businesses (13) (13) (25) (19) Other income (expense), net (72) (1,312) 71 (1,017) Interest expense (1,089) (1,215) (2,123) (2,425) Income Before Provision For Income Taxes $ 6,187 $ 5,310 $ 11,863 $ 12,098 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jan. 01, 2020 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Dilutive securities (in shares) | 2 | 2 | 2 | 2 | ||
Retained Earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of applying new accounting standards | $ 200 | $ (410) | ||||
Retained Earnings | Accounting Standards Update 2016-13 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of applying new accounting standards, pre-tax | 265 | |||||
Cumulative effect of applying new accounting standards | $ 200 | |||||
Consumer | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Maximum threshold period for new customers | 210 days | |||||
Minimum threshold period for existing customers | 210 days | |||||
Business | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Maximum threshold period for new customers | 12 months | |||||
Minimum threshold period for existing customers | 12 months |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 7,882 | $ 2,594 | ||
Cash, cash equivalents and restricted cash | 9,113 | $ 3,120 | 3,917 | $ 3,916 |
Increase (decrease) in cash, cash equivalents and restricted cash | 5,196 | $ (796) | ||
Cash and cash equivalents | ||||
Cash and Cash Equivalents [Line Items] | ||||
Increase (decrease) in cash, cash equivalents and restricted cash | 5,288 | |||
Prepaid expenses and other | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | 1,101 | 1,221 | ||
Increase (decrease) in cash, cash equivalents and restricted cash | (120) | |||
Other assets | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | 130 | $ 102 | ||
Increase (decrease) in cash, cash equivalents and restricted cash | $ 28 |
Basis of Presentation - Sched_2
Basis of Presentation - Schedule of Cumulative Effect for Adoption of New Accounting Pronouncement (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for credit losses | $ 1,070 | $ 0 | |
Allowance for doubtful accounts | 0 | 733 | |
Other assets | 10,178 | 10,141 | |
Deferred income taxes | 33,798 | 34,703 | |
Retained earnings | $ 56,746 | $ 53,147 | |
Adjustments due to Topic 326 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for credit losses | $ 919 | ||
Allowance for doubtful accounts | (733) | ||
Other assets | (79) | ||
Deferred income taxes | (65) | ||
Retained earnings | (200) | ||
Cumulative Effect, Period Of Adoption, Adjusted Balance | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for credit losses | 919 | ||
Allowance for doubtful accounts | 0 | ||
Other assets | 10,062 | ||
Deferred income taxes | 34,638 | ||
Retained earnings | $ 52,947 |
Revenues and Contract Costs - A
Revenues and Contract Costs - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | |
Disaggregation of Revenue [Line Items] | ||||
Number of reportable segments | segment | 2 | |||
Revenues from leasing arrangements, captive reinsurance arrangements and interest on equipment financed | $ 785,000,000 | $ 797,000,000 | $ 1,600,000,000 | $ 1,600,000,000 |
Contract description of timing | Contracts for wireless services are generally either month-to-month and cancellable at any time (typically under a device payment plan) or contain terms ranging from greater than one month to up to two years (typically under a fixed-term plan). | |||
Amortization of deferred contract costs | 767,000,000 | 639,000,000 | $ 1,500,000,000 | 1,300,000,000 |
Contract assets impairment charge | 0 | 0 | 0 | 0 |
Media Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | $ 1,400,000,000 | $ 1,800,000,000 | $ 3,100,000,000 | $ 3,600,000,000 |
Wireless postpaid contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of month-to-month contracts of total service contracts | 89.00% | 87.00% | 89.00% | 87.00% |
Wireline Consumer and Small and Medium Business contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of month-to-month contracts of total service contracts | 67.00% | 57.00% | 67.00% | 57.00% |
Reseller Arrangements | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract description of timing | Reseller arrangements generally include a stated contract term, which typically extends longer than two years and, in some cases, include a periodic minimum revenue commitment over the contract term for which revenues will be recognized in future periods. | |||
Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Customer contracts service term | 2 years | |||
Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract description of timing | These contracts have varying terms spanning over approximately five years | |||
Maximum | Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Customer contracts service term | 12 months |
Revenues and Contract Costs - R
Revenues and Contract Costs - Revenue Performance Obligations (Details) $ in Billions | Jun. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 10.3 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 13.1 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 4 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Customer Contracts that Have Contract Minimum over Total Contract Term | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 2.7 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 5 years |
Revenues and Contract Costs - S
Revenues and Contract Costs - Schedule of Receivables from Contracts with Customers (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jan. 01, 2020 | Jun. 30, 2019 | Jan. 01, 2019 |
Revenue from Contract with Customer [Abstract] | ||||
Receivables | $ 10,967 | $ 12,078 | $ 12,173 | $ 12,104 |
Device payment plan agreement receivables | $ 10,047 | $ 11,741 | $ 10,053 | $ 8,940 |
Revenues and Contract Costs - C
Revenues and Contract Costs - Contract with Customer, Asset and Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jan. 01, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Disaggregation of Revenue [Line Items] | |||||||
Contract asset | $ 993 | $ 1,059 | $ 993 | $ 1,059 | $ 1,150 | $ 1,150 | $ 1,003 |
Contract liability | 5,275 | 4,946 | 5,275 | 4,946 | $ 5,307 | 5,307 | $ 4,943 |
Revenue recognized related to contract liabilities existing | 204 | $ 194 | 4,000 | $ 3,900 | |||
Prepaid expenses and other | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Contract asset | 762 | 762 | 848 | ||||
Other assets | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Contract asset | 231 | 231 | 302 | ||||
Other current liabilities | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Contract liability | 4,636 | 4,636 | 4,651 | ||||
Other liabilities | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Contract liability | $ 639 | $ 639 | $ 656 |
Revenues and Contract Costs -_2
Revenues and Contract Costs - Schedule of Cost Incurred to Obtain or Fulfill Contracts with Customers (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Capitalized Contract Cost [Line Items] | |||||
Cost incurred to obtain or fulfill contracts with customers | $ 4,246,000,000 | $ 4,246,000,000 | $ 4,489,000,000 | ||
Contract with Customer, Asset, Credit Loss Expense (Reversal) | $ 0 | $ 0 | $ 0 | $ 0 | |
Minimum | |||||
Capitalized Contract Cost [Line Items] | |||||
Deferred contract cost, amortization period | 2 years | 2 years | |||
Maximum | |||||
Capitalized Contract Cost [Line Items] | |||||
Deferred contract cost, amortization period | 5 years | 5 years | |||
Prepaid expenses and other | |||||
Capitalized Contract Cost [Line Items] | |||||
Cost incurred to obtain or fulfill contracts with customers | $ 2,455,000,000 | $ 2,455,000,000 | 2,578,000,000 | ||
Other assets | |||||
Capitalized Contract Cost [Line Items] | |||||
Cost incurred to obtain or fulfill contracts with customers | $ 1,791,000,000 | $ 1,791,000,000 | $ 1,911,000,000 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 7 Months Ended | ||||
May 31, 2020USD ($) | Mar. 31, 2020USD ($)License | Dec. 31, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | |
Business Acquisition [Line Items] | ||||||||
Number of licenses acquired | License | 4,940 | |||||||
Payments for deposits | $ 1,801 | $ 199 | ||||||
Gain (loss) on disposition of licenses, pre-tax | $ 0 | $ 0 | (1,195) | $ 0 | ||||
Goodwill | $ 24,389 | $ 24,667 | 24,667 | $ 24,667 | ||||
Spectrum licenses | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments for deposits | $ 101 | $ 1,600 | ||||||
Spectrum licenses | ||||||||
Business Acquisition [Line Items] | ||||||||
Price payable for acquisitions | $ 3,400 | |||||||
Portion of price to be settled with 39 GHz licenses | $ 1,800 | |||||||
Average remaining renewal period of wireless license portfolio (in years) | 9 years 10 months 24 days | |||||||
Series of Individually Immaterial Business Acquisitions | Spectrum licenses | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments for deposits | $ 177 | |||||||
Blue Jeans Network | ||||||||
Business Acquisition [Line Items] | ||||||||
Price payable for acquisitions | $ 396 | |||||||
Goodwill | 282 | |||||||
Intangible assets other than goodwill | $ 192 |
Wireless Licenses, Goodwill a_3
Wireless Licenses, Goodwill and Other Intangible Assets - Carrying Amount of Wireless Licenses (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Wireless licenses | $ 95,767 | $ 95,059 |
Wireless Licenses, Goodwill a_4
Wireless Licenses, Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Indefinite-lived Intangible Assets [Line Items] | ||||||
Gain (loss) on disposition of licenses, pre-tax | $ 0 | $ 0 | $ (1,195) | $ 0 | ||
Wireless licenses | 95,767 | 95,767 | $ 95,059 | |||
Wireless Licenses | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Wireless licenses under development | 3,500 | $ 6,600 | 3,500 | 6,600 | ||
Interest costs capitalized | $ 101 | $ 168 | ||||
Assets held-for-sale | $ 2,800 | |||||
Average remaining renewal period of wireless license portfolio (in years) | 10 years | |||||
Spectrum Licenses, 39 GHz | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Gain (loss) on disposition of licenses, pre-tax | (1,200) | $ (1,200) | ||||
Gain (loss) on disposition of licenses | (914) | (914) | ||||
Wireless licenses | $ 3,400 | $ 3,400 | ||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Spectrum licenses | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Intangible assets held-for-sale | $ 1,600 |
Wireless Licenses, Goodwill a_5
Wireless Licenses, Goodwill and Other Intangible Assets - Changes in Carrying Value of Goodwill (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | ||
Beginning balance | $ 24,389 | |
Acquisitions (Note 3) | 282 | |
Reclassifications, adjustments and other | (4) | |
Ending balance | 24,667 | |
Goodwill accumulated impairment charge | 4,800 | $ 4,800 |
Operating Segments | Consumer | ||
Goodwill [Line Items] | ||
Beginning balance | 17,104 | |
Acquisitions (Note 3) | 0 | |
Reclassifications, adjustments and other | 0 | |
Ending balance | 17,104 | |
Operating Segments | Business | ||
Goodwill [Line Items] | ||
Beginning balance | 7,269 | |
Acquisitions (Note 3) | 282 | |
Reclassifications, adjustments and other | (4) | |
Ending balance | 7,547 | |
Other | ||
Goodwill [Line Items] | ||
Beginning balance | 16 | |
Acquisitions (Note 3) | 0 | |
Reclassifications, adjustments and other | 0 | |
Ending balance | $ 16 |
Wireless Licenses, Goodwill a_6
Wireless Licenses, Goodwill and Other Intangible Assets - Composition of Other Intangible Assets, Net (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 27,660 | $ 26,393 |
Accumulated Amortization | (18,060) | (16,895) |
Net Amount | 9,600 | 9,498 |
Customer Lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 4,009 | 3,896 |
Accumulated Amortization | (1,740) | (1,511) |
Net Amount | $ 2,269 | 2,385 |
Customer Lists | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible asset, useful life | 8 years | |
Customer Lists | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible asset, useful life | 13 years | |
Non-Network Internal-Use Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 21,670 | 20,530 |
Accumulated Amortization | (15,292) | (14,418) |
Net Amount | $ 6,378 | 6,112 |
Non-Network Internal-Use Software | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible asset, useful life | 5 years | |
Non-Network Internal-Use Software | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible asset, useful life | 7 years | |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 1,981 | 1,967 |
Accumulated Amortization | (1,028) | (966) |
Net Amount | $ 953 | $ 1,001 |
Other | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible asset, useful life | 2 years | |
Other | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible asset, useful life | 25 years |
Wireless Licenses, Goodwill a_7
Wireless Licenses, Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense for other intangible assets | $ 605 | $ 569 | $ 1,197 | $ 1,124 |
Remainder of 2020 | 1,194 | 1,194 | ||
2021 | 2,136 | 2,136 | ||
2022 | 1,838 | 1,838 | ||
2023 | 1,476 | 1,476 | ||
2024 | 1,105 | 1,105 | ||
2025 | $ 746 | $ 746 |
Debt - Debt Redemptions, Repurc
Debt - Debt Redemptions, Repurchases and Repayments (Details) $ in Millions | Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2020EUR (€) |
Debt Instrument [Line Items] | |||||
Principal Redeemed/ Repurchased/ Repaid | $ 1,475 | ||||
Amount Paid | $ 6,790 | $ 1,475 | $ 8,265 | ||
Verizon 4.950% notes due 2047 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate on debt instrument | 4.95% | ||||
Principal Redeemed/ Repurchased/ Repaid | $ 1,475 | ||||
Amount Paid | $ 1,475 | ||||
Verizon 5.143% preferred stock due 2020 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate on debt instrument | 5.143% | 5.143% | 5.143% | 5.143% | |
Principal Redeemed/ Repurchased/ Repaid | $ 1,650 | $ 1,650 | $ 1,650 | ||
Amount Paid | 1,650 | ||||
Verizon floating rate (LIBOR + 0.550%) notes due 2020 | |||||
Debt Instrument [Line Items] | |||||
Principal Redeemed/ Repurchased/ Repaid | $ 1,018 | 1,018 | $ 1,018 | ||
Amount Paid | $ 1,018 | ||||
Verizon floating rate (LIBOR + 0.550%) notes due 2020 | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.55% | ||||
Verizon 2.375% Notes Due 2022 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate on debt instrument | 2.375% | 2.375% | 2.375% | 2.375% | |
Principal Redeemed/ Repurchased/ Repaid | € | € 935,000,000 | ||||
Amount Paid | $ 1,199 | ||||
Principal and premium repaid | € | € 980,000,000 | ||||
Verizon 0.500% Notes Due 2022 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate on debt instrument | 0.50% | 0.50% | 0.50% | 0.50% | |
Principal Redeemed/ Repurchased/ Repaid | € | € 454,000,000 | ||||
Amount Paid | $ 517 | ||||
Principal and premium repaid | € | € 463,000,000 | ||||
Verizon 4.600% notes due 2021 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate on debt instrument | 4.60% | 4.60% | 4.60% | 4.60% | |
Principal Redeemed/ Repurchased/ Repaid | $ 920 | $ 920 | $ 920 | ||
Amount Paid | $ 949 | ||||
Verizon 3.125% notes due 2022 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate on debt instrument | 3.125% | 3.125% | 3.125% | 3.125% | |
Principal Redeemed/ Repurchased/ Repaid | $ 1,256 | $ 1,256 | $ 1,256 | ||
Amount Paid | 1,314 | ||||
Open market repurchases of various Verizon notes | |||||
Debt Instrument [Line Items] | |||||
Principal Redeemed/ Repurchased/ Repaid | $ 121 | 121 | $ 121 | ||
Amount Paid | $ 143 |
Debt - Debt Issuances (Details)
Debt - Debt Issuances (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2020CAD ($) | Jun. 30, 2020EUR (€) | |
Debt Instrument [Line Items] | |||||
Principal Amount Issued | $ 5,885,000,000 | ||||
Proceeds from long-term borrowings | $ 3,247,000,000 | $ 5,846,000,000 | $ 9,093,000,000 | ||
Verizon 3.600% notes due 2060 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate on debt instrument | 3.60% | ||||
Principal Amount Issued | $ 2,385,000,000 | ||||
Proceeds from long-term borrowings | $ 2,369,000,000 | ||||
Verizon 3.000% notes due 2027 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate on debt instrument | 3.00% | ||||
Principal Amount Issued | $ 750,000,000 | ||||
Proceeds from long-term borrowings | $ 747,000,000 | ||||
Verizon 3.150% notes due 2030 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate on debt instrument | 3.15% | ||||
Principal Amount Issued | $ 1,500,000,000 | ||||
Proceeds from long-term borrowings | $ 1,489,000,000 | ||||
Verizon 4.000% notes due 2050 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate on debt instrument | 4.00% | ||||
Principal Amount Issued | $ 1,250,000,000 | ||||
Proceeds from long-term borrowings | $ 1,241,000,000 | ||||
Verizon 2.500% due 2030 (2) | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate on debt instrument | 2.50% | 2.50% | |||
Principal Amount Issued | $ 1,000,000,000 | ||||
Proceeds from long-term borrowings | 705,000,000 | ||||
Verizon 3.625% due 2050 (2) | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate on debt instrument | 3.625% | 3.625% | |||
Principal Amount Issued | $ 300,000,000 | ||||
Proceeds from long-term borrowings | 209,000,000 | ||||
Verizon 1.300% notes due 2033 (2) | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate on debt instrument | 1.30% | 1.30% | |||
Principal Amount Issued | € | € 1,350,000,000 | ||||
Proceeds from long-term borrowings | 1,464,000,000 | ||||
Verizon 1.850% notes due 2040 (2) | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate on debt instrument | 1.85% | 1.85% | |||
Principal Amount Issued | € | € 800,000,000 | ||||
Proceeds from long-term borrowings | $ 869,000,000 |
Debt - Short-Term Borrowings an
Debt - Short-Term Borrowings and Commercial Paper Program (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Jul. 28, 2020 | Apr. 30, 2020 | Jun. 30, 2020 | |
Short-term Debt [Line Items] | |||
Principal amount outstanding | $ 4,206,000,000 | ||
Commercial paper | 1,000,000,000 | ||
Short Term Facility | |||
Short-term Debt [Line Items] | |||
Repayments of Short-term Debt | 700,000,000 | ||
Principal amount outstanding | 0 | ||
Commercial Paper | |||
Short-term Debt [Line Items] | |||
Repayments of Short-term Debt | $ 2,500,000,000 | ||
Commercial paper issued | $ 3,500,000,000 | ||
Commercial Paper | Subsequent Event | |||
Short-term Debt [Line Items] | |||
Repayments of Short-term Debt | $ 460,000,000 |
Debt - Asset-Backed Debt Narrat
Debt - Asset-Backed Debt Narrative (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jul. 28, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jan. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | |
Debt Instrument [Line Items] | |||||||
Repayments of debt | $ 6,790 | $ 1,475 | $ 8,265 | ||||
Asset-Backed Debt | |||||||
Debt Instrument [Line Items] | |||||||
Secured debt, carrying value | $ 10,600 | 10,600 | $ 10,600 | ||||
Asset Backed Notes | |||||||
Debt Instrument [Line Items] | |||||||
Revolving period | 2 years | ||||||
2020 ABS Financing Facility | |||||||
Debt Instrument [Line Items] | |||||||
Revolving period | 1 year | ||||||
Repayments of debt | 1,500 | $ 1,300 | |||||
Amount drawn from credit facilities | $ 1,300 | ||||||
Debt outstanding | $ 1,800 | 1,800 | $ 1,800 | ||||
Secured Debt | Asset Backed Notes | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of debt | $ 883 | $ 1,900 | |||||
Secured Debt | Asset Backed Notes | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of debt | $ 137 |
Debt - Schedule of ABS Notes Tr
Debt - Schedule of ABS Notes Transactions (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | |
Debt Instrument [Line Items] | |||
Principal Amount Issued | $ 5,885,000,000 | $ 5,885,000,000 | |
Asset Backed Notes | |||
Debt Instrument [Line Items] | |||
Principal Amount Issued | $ 1,600,000,000 | $ 1,600,000,000 | |
Asset Backed Notes | A-1a Senior class notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate on debt instrument | 1.85% | 1.85% | |
Expected Weighted-average Life to Maturity | 2 years 5 months 15 days | ||
Principal Amount Issued | $ 1,326,000,000 | $ 1,326,000,000 | |
Asset Backed Notes | A-1b Senior floating rate class notes | |||
Debt Instrument [Line Items] | |||
Expected Weighted-average Life to Maturity | 2 years 5 months 15 days | ||
Principal Amount Issued | $ 100,000,000 | $ 100,000,000 | |
Debt effective rate | 16.20% | ||
Asset Backed Notes | B Junior class notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate on debt instrument | 1.98% | 1.98% | |
Expected Weighted-average Life to Maturity | 3 years 2 months 4 days | ||
Principal Amount Issued | $ 98,000,000 | $ 98,000,000 | |
Asset Backed Notes | C Junior class notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate on debt instrument | 2.06% | 2.06% | |
Expected Weighted-average Life to Maturity | 3 years 4 months 9 days | ||
Principal Amount Issued | $ 76,000,000 | $ 76,000,000 | |
Asset Backed Notes | London Interbank Offered Rate (LIBOR) | A-1b Senior floating rate class notes | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.27% |
Debt - Assets and Liabilities R
Debt - Assets and Liabilities Related to Asset-backed Debt Arrangements (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Account receivable, net | $ 22,672 | $ 25,429 |
Prepaid expenses and other | 5,490 | 8,028 |
Other assets | 10,178 | 10,141 |
Accounts payable and accrued liabilities | 19,297 | 21,806 |
Short-term portion of long-term debt | 6,651 | 10,777 |
Long-term debt | 106,190 | 100,712 |
Variable Interest Entity, Primary Beneficiary | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Account receivable, net | 9,981 | 10,525 |
Prepaid expenses and other | 1,053 | 1,180 |
Other assets | 3,584 | 3,856 |
Accounts payable and accrued liabilities | 10 | 11 |
Short-term portion of long-term debt | 3,894 | 5,578 |
Long-term debt | $ 6,713 | $ 6,791 |
Debt - Credit Facilities, Non-C
Debt - Credit Facilities, Non-Cash Transaction, Guarantees (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Jul. 28, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Facility Capacity | $ 16,500,000,000 | |||
Unused Capacity | 10,892,000,000 | |||
Principal Amount Outstanding | 4,206,000,000 | |||
Guarantee of Debentures of Operating Telephone Company Subsidiaries | ||||
Debt Instrument [Line Items] | ||||
Principal amount outstanding in connection with the guarantee of debt obligations | 765,000,000 | |||
Guarantee of Debt Obligations of GTE Corporation | ||||
Debt Instrument [Line Items] | ||||
Principal amount outstanding in connection with the guarantee of debt obligations | 391,000,000 | |||
Line of Credit | June 2020 Export Credit Facility | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Facility Capacity | $ 1,500,000,000 | |||
Amount drawn from credit facilities | 500,000,000 | |||
Line of Credit | July 2020 Export Credit Facility | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Facility Capacity | 500,000,000 | |||
Amount drawn from credit facilities | $ 500,000,000 | |||
Network Equipment | Vendor Financing Facility | ||||
Debt Instrument [Line Items] | ||||
Value of purchase assets financed | 673,000,000 | $ 221,000,000 | ||
Long-term debt maturing within one year | 1,300,000,000 | $ 1,100,000,000 | ||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Facility Capacity | 9,500,000,000 | |||
Unused Capacity | 9,392,000,000 | |||
Equipment Credit Facilities | ||||
Debt Instrument [Line Items] | ||||
Facility Capacity | 7,000,000,000 | |||
Unused Capacity | 1,500,000,000 | |||
Principal Amount Outstanding | $ 4,206,000,000 |
Device Payment Plan Agreement_2
Device Payment Plan Agreement and Wireless Service Receivables - Schedule of Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 23,742 | $ 26,162 |
Allowance for credit losses | 1,070 | 0 |
Accounts receivable, net of allowance | 22,672 | $ 25,429 |
Device payment plan agreement | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 12,017 | |
Allowance for credit losses | 584 | |
Accounts receivable, net of allowance | 11,433 | |
Wireless service | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 5,089 | |
Allowance for credit losses | 234 | |
Accounts receivable, net of allowance | 4,855 | |
Other receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 6,636 | |
Allowance for credit losses | 252 | |
Accounts receivable, net of allowance | $ 6,384 |
Device Payment Plan Agreement_3
Device Payment Plan Agreement and Wireless Service Receivables - Schedule of Device Payment Plan Agreement Receivables (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Device payment plan agreement receivables, gross | $ 17,079 | $ 19,493 |
Unamortized imputed interest | (429) | (454) |
Device payment plan agreement receivables, at amortized cost | 16,650 | 19,039 |
Allowance | (795) | (472) |
Device payment plan agreement receivables, net | 15,855 | 18,567 |
Account receivable, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Device payment plan agreement receivables, net | 11,433 | 13,045 |
Other assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Device payment plan agreement receivables, net | $ 4,422 | $ 5,522 |
Device Payment Plan Agreement_4
Device Payment Plan Agreement and Wireless Service Receivables - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | ||||
Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Jan. 01, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Receivables transferred to ABS Entities | $ 13,500 | $ 14,300 | |||
Device payment plan agreement, trade-in liability | $ 5,275 | $ 5,307 | 5,307 | $ 4,946 | $ 4,943 |
Minimum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Required down payment percentage | 0.00% | ||||
Maximum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Required down payment percentage | 100.00% | ||||
Product Trade-in | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Device payment plan agreement, trade-in liability | $ 55 | $ 103 | |||
Consumer | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Maximum threshold period for new customers | 210 days | ||||
Minimum threshold period for existing customers | 210 days | ||||
Business | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Maximum threshold period for new customers | 12 months | ||||
Minimum threshold period for existing customers | 12 months | ||||
Device payment plan agreement | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Receivables originating in 2020 | $ 6,006 | ||||
Receivables originating in 2019 | $ 9,217 | ||||
Device payment plan agreement | Consumer | Minimum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Customer tenure period | 45 days | ||||
Device payment plan agreement | Consumer | Maximum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Customer tenure period | 45 days | ||||
Device payment plan agreement | Business | Minimum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Customer tenure period | 12 months | ||||
Device payment plan agreement | Business | Maximum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Customer tenure period | 12 months | ||||
Wireless Service Plan Receivables | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Receivables originating in 2020 | $ 5,000 | ||||
Number of days past due | 34 days |
Device Payment Plan Agreement_5
Device Payment Plan Agreement and Wireless Service Receivables - Schedule of Credit Quality Indicators (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Device payment plan agreement receivables, at amortized cost | $ 17,079 | $ 19,493 |
Device payment plan agreement | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 6,006 | |
2019 | 9,217 | |
2018 | 1,355 | |
Prior to 2018 | 72 | |
Device payment plan agreement receivables, at amortized cost | 16,650 | |
Device payment plan agreement | New customers | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1,042 | |
2019 | 1,360 | |
2018 | 169 | |
Prior to 2018 | 43 | |
Device payment plan agreement receivables, at amortized cost | 2,614 | |
Device payment plan agreement | Existing customers | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 4,964 | |
2019 | 7,857 | |
2018 | 1,186 | |
Prior to 2018 | 29 | |
Device payment plan agreement receivables, at amortized cost | $ 14,036 |
Device Payment Plan Agreement_6
Device Payment Plan Agreement and Wireless Service Receivables - Allowance for Credit Losses (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jan. 01, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 472 | |
Adjusted opening balance, January 1, 2020 | 472 | |
Ending balance | 795 | |
Device payment plan agreement | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 472 | |
Adjusted opening balance, January 1, 2020 | 795 | $ 737 |
Current period provision for expected credit losses | 449 | |
Write-offs charged against the allowance | (415) | |
Recoveries collected | 24 | |
Ending balance | 795 | |
Wireless Service Plan Receivables | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 156 | |
Adjusted opening balance, January 1, 2020 | 234 | 156 |
Current period provision for expected credit losses | 252 | |
Write-offs charged against the allowance | (208) | |
Recoveries collected | 34 | |
Ending balance | $ 234 | |
Accounting Standards Update 2016-13 | Device payment plan agreement | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Opening balance sheet adjustment related to Topic 326 adoption | 265 | |
Accounting Standards Update 2016-13 | Wireless Service Plan Receivables | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Opening balance sheet adjustment related to Topic 326 adoption | $ 0 |
Device Payment Plan Agreement_7
Device Payment Plan Agreement and Wireless Service Receivables - Balance and Aging of Receivables (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Device payment plan agreement receivables, at amortized cost | $ 17,079 | $ 19,493 |
Device payment plan agreement | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Device payment plan agreement receivables, at amortized cost | 16,650 | |
Device payment plan agreement | Unbilled | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 15,720 | |
Device payment plan agreement | Billed | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 832 | |
Past due | $ 98 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Total | $ 2,488 | $ 1,226 |
Other liabilities: | ||
Total | 4,051 | 1,689 |
Foreign exchange forwards | Prepaid expenses and other | ||
Assets: | ||
Derivative asset | 5 | |
Foreign exchange forwards | Other assets | ||
Assets: | ||
Derivative asset | 5 | |
Fixed income securities | Other assets | ||
Assets: | ||
Debt securities, available-for-sale | 458 | 442 |
Interest rate swaps | Other assets | ||
Assets: | ||
Derivative asset | 1,935 | 568 |
Interest rate swaps | Other liabilities | ||
Other liabilities: | ||
Derivative liabilities | 340 | 173 |
Cross currency swaps | Other assets | ||
Assets: | ||
Derivative asset | 89 | 211 |
Cross currency swaps | Other liabilities | ||
Other liabilities: | ||
Derivative liabilities | 2,590 | 912 |
Interest rate caps | Other assets | ||
Assets: | ||
Derivative asset | 1 | |
Interest rate caps | Other liabilities | ||
Other liabilities: | ||
Derivative liabilities | 1 | |
Forward starting interest rate swaps | Other current liabilities | ||
Other liabilities: | ||
Derivative liabilities | 568 | |
Forward starting interest rate swaps | Other liabilities | ||
Other liabilities: | ||
Derivative liabilities | 552 | 604 |
Level 1 | ||
Assets: | ||
Total | 0 | 0 |
Other liabilities: | ||
Total | 0 | 0 |
Level 1 | Foreign exchange forwards | Prepaid expenses and other | ||
Assets: | ||
Derivative asset | 0 | |
Level 1 | Foreign exchange forwards | Other assets | ||
Assets: | ||
Derivative asset | 0 | |
Level 1 | Fixed income securities | Other assets | ||
Assets: | ||
Debt securities, available-for-sale | 0 | 0 |
Level 1 | Interest rate swaps | Other assets | ||
Assets: | ||
Derivative asset | 0 | 0 |
Level 1 | Interest rate swaps | Other liabilities | ||
Other liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 1 | Cross currency swaps | Other assets | ||
Assets: | ||
Derivative asset | 0 | 0 |
Level 1 | Cross currency swaps | Other liabilities | ||
Other liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 1 | Interest rate caps | Other assets | ||
Assets: | ||
Derivative asset | 0 | |
Level 1 | Interest rate caps | Other liabilities | ||
Other liabilities: | ||
Derivative liabilities | 0 | |
Level 1 | Forward starting interest rate swaps | Other current liabilities | ||
Other liabilities: | ||
Derivative liabilities | 0 | |
Level 1 | Forward starting interest rate swaps | Other liabilities | ||
Other liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 2 | ||
Assets: | ||
Total | 2,488 | 1,226 |
Other liabilities: | ||
Total | 4,051 | 1,689 |
Level 2 | Foreign exchange forwards | Prepaid expenses and other | ||
Assets: | ||
Derivative asset | 5 | |
Level 2 | Foreign exchange forwards | Other assets | ||
Assets: | ||
Derivative asset | 5 | |
Level 2 | Fixed income securities | Other assets | ||
Assets: | ||
Debt securities, available-for-sale | 458 | 442 |
Level 2 | Interest rate swaps | Other assets | ||
Assets: | ||
Derivative asset | 1,935 | 568 |
Level 2 | Interest rate swaps | Other liabilities | ||
Other liabilities: | ||
Derivative liabilities | 340 | 173 |
Level 2 | Cross currency swaps | Other assets | ||
Assets: | ||
Derivative asset | 89 | 211 |
Level 2 | Cross currency swaps | Other liabilities | ||
Other liabilities: | ||
Derivative liabilities | 2,590 | 912 |
Level 2 | Interest rate caps | Other assets | ||
Assets: | ||
Derivative asset | 1 | |
Level 2 | Interest rate caps | Other liabilities | ||
Other liabilities: | ||
Derivative liabilities | 1 | |
Level 2 | Forward starting interest rate swaps | Other current liabilities | ||
Other liabilities: | ||
Derivative liabilities | 568 | |
Level 2 | Forward starting interest rate swaps | Other liabilities | ||
Other liabilities: | ||
Derivative liabilities | 552 | 604 |
Level 3 | ||
Assets: | ||
Total | 0 | 0 |
Other liabilities: | ||
Total | 0 | 0 |
Level 3 | Foreign exchange forwards | Prepaid expenses and other | ||
Assets: | ||
Derivative asset | 0 | |
Level 3 | Foreign exchange forwards | Other assets | ||
Assets: | ||
Derivative asset | 0 | |
Level 3 | Fixed income securities | Other assets | ||
Assets: | ||
Debt securities, available-for-sale | 0 | 0 |
Level 3 | Interest rate swaps | Other assets | ||
Assets: | ||
Derivative asset | 0 | 0 |
Level 3 | Interest rate swaps | Other liabilities | ||
Other liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 3 | Cross currency swaps | Other assets | ||
Assets: | ||
Derivative asset | 0 | 0 |
Level 3 | Cross currency swaps | Other liabilities | ||
Other liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 3 | Interest rate caps | Other assets | ||
Assets: | ||
Derivative asset | 0 | |
Level 3 | Interest rate caps | Other liabilities | ||
Other liabilities: | ||
Derivative liabilities | 0 | |
Level 3 | Forward starting interest rate swaps | Other current liabilities | ||
Other liabilities: | ||
Derivative liabilities | 0 | |
Level 3 | Forward starting interest rate swaps | Other liabilities | ||
Other liabilities: | ||
Derivative liabilities | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | |
Derivatives, Fair Value [Line Items] | |||||||
Carrying amount of our investments without readily determinable fair values | $ 301,000,000 | $ 301,000,000 | $ 284,000,000 | ||||
Derivative asset fair value of collateral | 300,000,000 | 300,000,000 | |||||
Interest rate swaps | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Net investment hedge | 16,996,000,000 | 16,996,000,000 | 17,004,000,000 | ||||
Interest rate swaps | Fair Value Hedges | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional amount of derivative instruments entered during period | 0 | $ 0 | 2,400,000,000 | $ 510,000,000 | |||
Notional amount of derivative settled during period | 929,000,000 | 0 | 2,400,000,000 | 1,200,000,000 | |||
Ineffectiveness portion of interest rate swaps | 56,000,000 | 60,000,000 | |||||
Cross currency swaps | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Net investment hedge | 24,740,000,000 | 24,740,000,000 | 23,070,000,000 | ||||
Cross currency swaps | Cash Flow Hedging | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional amount of derivative instruments entered during period | 3,300,000,000 | 3,500,000,000 | 3,300,000,000 | 3,500,000,000 | |||
Notional amount of derivative settled during period | 1,600,000,000 | 0 | 1,600,000,000 | 0 | |||
Pre-tax gains (loss) recognized in other comprehensive income (loss) | 1,000,000,000 | (340,000,000) | (1,900,000,000) | (328,000,000) | |||
Forward starting interest rate swaps | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Net investment hedge | 2,000,000,000 | 2,000,000,000 | 3,000,000,000 | ||||
Forward starting interest rate swaps | Cash Flow Hedging | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional amount of derivative instruments entered during period | 0 | 0 | 0 | 0 | |||
Notional amount of derivative settled during period | 0 | 0 | 1,000,000,000 | 1,000,000,000 | |||
Pre-tax gains (loss) recognized in other comprehensive income (loss) | (293,000,000) | (809,000,000) | (497,000,000) | ||||
Treasury rate locks | Not Designated as Hedging Instrument | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional amount of derivative instruments entered during period | 0 | 0 | 1,600,000,000 | 0 | |||
Notional amount of derivative settled during period | 0 | 0 | 1,600,000,000 | 0 | |||
Pre-tax gains (loss) recognized in other comprehensive income (loss) | 0 | 0 | 0 | ||||
Treasury rate locks | Cash Flow Hedging | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional amount of derivative instruments entered during period | 0 | 0 | 500,000,000 | 0 | |||
Notional amount of derivative settled during period | 0 | 0 | 500,000,000 | 0 | |||
Pre-tax gains (loss) recognized in other comprehensive income (loss) | 0 | 0 | 0 | ||||
Euro Denominated Debt | Net Investment Hedges | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Net investment hedge | € | € 750,000,000 | € 750,000,000 | |||||
Foreign exchange forwards | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Net investment hedge | 960,000,000 | 960,000,000 | $ 1,130,000,000 | ||||
Foreign exchange forwards | Not Designated as Hedging Instrument | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional amount of derivative instruments entered during period | 4,300,000,000 | 3,100,000,000 | 6,900,000,000 | 6,100,000,000 | |||
Notional amount of derivative settled during period | 4,200,000,000 | $ 3,000,000,000 | $ 7,100,000,000 | $ 5,600,000,000 | |||
Pre-tax gains (loss) recognized in other comprehensive income (loss) | $ 81,000,000 |
Fair Value Measurements - Debt
Fair Value Measurements - Debt Excluding Capital Leases (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument fair value | $ 111,631 | $ 110,373 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument fair value | 137,420 | 129,200 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument fair value | 89,504 | 86,712 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument fair value | 47,916 | 42,488 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument fair value | $ 0 | $ 0 |
Fair Value Measurements - Notio
Fair Value Measurements - Notional Amounts of Outstanding Derivative Instruments (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 16,996 | $ 17,004 |
Cross currency swaps | ||
Derivative [Line Items] | ||
Notional amount | 24,740 | 23,070 |
Forward starting interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | 2,000 | 3,000 |
Interest rate caps | ||
Derivative [Line Items] | ||
Notional amount | 158 | 679 |
Foreign exchange forwards | ||
Derivative [Line Items] | ||
Notional amount | $ 960 | $ 1,130 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Cumulative Basis Adjustments for Fair Value Hedges (Details) - Long-term debt - Fair Value Hedges - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Carrying amount of hedged liabilities | $ 18,438 | $ 17,337 |
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities | $ 1,544 | $ 433 |
Employee Benefits - Costs by Pl
Employee Benefits - Costs by Plans (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Pension | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 73 | $ 62 | $ 146 | $ 123 | |
Amortization of prior service cost (credit) | 15 | 16 | 30 | 31 | |
Expected return on plan assets | (296) | (282) | (593) | (564) | |
Interest cost | 137 | 176 | 277 | 354 | |
Remeasurement loss, net | 153 | $ 182 | 0 | 335 | (96) |
Other components | 9 | (90) | 49 | (275) | |
Total | 82 | (28) | 195 | (152) | |
Pension | Cost of services | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 59 | 50 | 118 | 100 | |
Pension | Selling, general and administrative expense | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 14 | 12 | 28 | 23 | |
Health Care and Life | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 28 | 24 | 55 | 48 | |
Amortization of prior service cost (credit) | (242) | (243) | (483) | (486) | |
Expected return on plan assets | (6) | (10) | (13) | (19) | |
Interest cost | 107 | 158 | 214 | 315 | |
Remeasurement loss, net | 0 | 0 | 0 | 0 | |
Other components | (141) | (95) | (282) | (190) | |
Total | (113) | (71) | (227) | (142) | |
Health Care and Life | Cost of services | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 23 | 19 | 45 | 39 | |
Health Care and Life | Selling, general and administrative expense | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 5 | $ 5 | $ 10 | $ 9 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Amount paid in severance benefits over the period | $ 52,000,000 | $ 175,000,000 | |||
Post employment benefits liability | 443,000,000 | 443,000,000 | |||
Pension | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Remeasurement loss, net | (153,000,000) | $ (182,000,000) | $ 0 | (335,000,000) | $ 96,000,000 |
(Charge) credit due to difference between estimated and actual return on assets | $ (163,000,000) | (150,000,000) | |||
(Credit) charge due to change in discount rate assumption | $ 196,000,000 | 54,000,000 | |||
Pension | Qualified Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer discretionary contribution amount | $ 0 | $ 300,000,000 |
Equity and Accumulated Other _3
Equity and Accumulated Other Comprehensive Income - Changes in Components of Total equity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jan. 01, 2020 | Jan. 01, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | $ 62,835 | |||||
Net income attributable to Verizon | $ 4,700 | $ 3,944 | 8,856 | $ 8,976 | ||
Foreign currency translation adjustments | 77 | (67) | (43) | (43) | ||
Unrealized gain (loss) on cash flow hedges | 314 | (537) | (1,896) | (550) | ||
Unrealized gain on marketable securities | 6 | 4 | 5 | 8 | ||
Defined benefit pension and postretirement plans | (169) | (169) | (338) | (338) | ||
Other comprehensive income (loss) | $ (2,272) | |||||
Shareholder plans (in shares) | 2,200 | |||||
Total comprehensive income | 5,067 | 3,305 | $ 6,854 | 8,311 | ||
Ending Balance | $ 64,113 | $ 57,947 | $ 64,113 | $ 57,947 | ||
Dividends declared per common share (USD per share) | $ 0.6150 | $ 0.6025 | $ 1.2300 | $ 1.2050 | ||
Common Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | $ 429 | $ 429 | $ 429 | $ 429 | ||
Beginning balance (in shares) | 4,291,434 | 4,291,434 | 4,291,434 | 4,291,434 | ||
Ending Balance (in shares) | 4,291,434 | 4,291,434 | 4,291,434 | 4,291,434 | ||
Ending Balance | $ 429 | $ 429 | $ 429 | $ 429 | ||
Additional Paid In Capital | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | 13,302 | 13,418 | 13,419 | 13,437 | ||
Other | (21) | 1 | (138) | (18) | ||
Ending Balance | 13,281 | 13,419 | 13,281 | 13,419 | ||
Retained Earnings | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | 54,557 | 46,493 | 53,147 | 43,542 | ||
Opening balance sheet adjustment | $ (200) | $ 410 | ||||
Adjusted Beginning Balance | 52,947 | 43,952 | ||||
Other | 33 | 0 | 33 | 0 | ||
Net income attributable to Verizon | 4,700 | 3,944 | 8,856 | 8,976 | ||
Dividends declared | (2,544) | (2,492) | (5,090) | (4,983) | ||
Ending Balance | 56,746 | 47,945 | 56,746 | 47,945 | ||
Accumulated Other Comprehensive Income (Loss) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | (1,502) | 2,216 | 998 | 2,370 | ||
Foreign currency translation adjustments | 77 | (67) | (43) | (43) | ||
Unrealized gain (loss) on cash flow hedges | 314 | (537) | (1,896) | (550) | ||
Unrealized gain on marketable securities | 6 | 4 | 5 | 8 | ||
Defined benefit pension and postretirement plans | (169) | (169) | (338) | (338) | ||
Other comprehensive income (loss) | 228 | (769) | (2,272) | (923) | ||
Ending Balance | (1,274) | 1,447 | (1,274) | 1,447 | ||
Treasury Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | $ (6,725) | $ (6,825) | $ (6,820) | $ (6,986) | ||
Beginning balance (in shares) | 153,438 | 155,727 | 155,606 | 159,400 | ||
Employee plans (in shares) | 58 | 58 | 2,222 | 3,726 | ||
Employee plans | $ 3 | $ 2 | $ 98 | $ 163 | ||
Shareholder plans (in shares) | 4 | 5 | ||||
Shareholder plans | $ 0 | $ 0 | ||||
Ending Balance (in shares) | 153,380 | 155,669 | 153,380 | 155,669 | ||
Ending Balance | $ (6,722) | $ (6,823) | $ (6,722) | $ (6,823) | ||
Deferred Compensation-ESOPs and Other | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | 149 | 125 | 222 | 353 | ||
Restricted stock equity grant | 157 | 44 | 172 | 79 | ||
Amortization | (69) | (4) | (157) | (267) | ||
Ending Balance | 237 | 165 | 237 | 165 | ||
Noncontrolling Interests | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | 1,443 | 1,604 | 1,440 | 1,565 | ||
Opening balance sheet adjustment | 0 | 1 | ||||
Adjusted Beginning Balance | $ 1,440 | $ 1,566 | ||||
Total comprehensive income | 139 | 130 | 270 | 258 | ||
Distributions and other | (166) | (369) | (294) | (459) | ||
Ending Balance | $ 1,416 | $ 1,365 | $ 1,416 | $ 1,365 |
Equity and Accumulated Other _4
Equity and Accumulated Other Comprehensive Income - Additional Information (Detail) - shares | 6 Months Ended | |
Jun. 30, 2020 | Feb. 29, 2020 | |
Stockholders' Equity Note [Abstract] | ||
Stock repurchase program, number of shares authorized to be repurchased (in shares) | 100,000,000 | |
Stock repurchase program, remaining shares available for purchase (in shares) | 100,000,000 | |
Number of common shares issued from treasury stock (in shares) | 2,200,000 |
Equity and Accumulated Other _5
Equity and Accumulated Other Comprehensive Income - Changes in AOCI (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Beginning Balance | $ 62,835 | |||
Other comprehensive income (loss) | (2,103) | |||
Amounts reclassified to net income | (169) | |||
Net other comprehensive income (loss) | (2,272) | |||
Ending Balance | $ 64,113 | $ 57,947 | 64,113 | $ 57,947 |
Foreign currency translation adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Beginning Balance | (584) | |||
Other comprehensive income (loss) | (43) | |||
Amounts reclassified to net income | 0 | |||
Net other comprehensive income (loss) | (43) | |||
Ending Balance | (627) | (627) | ||
Unrealized loss on cash flow hedges | ||||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Beginning Balance | (816) | |||
Other comprehensive income (loss) | (2,065) | |||
Amounts reclassified to net income | 169 | |||
Net other comprehensive income (loss) | (1,896) | |||
Ending Balance | (2,712) | (2,712) | ||
Unrealized gain on marketable securities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Beginning Balance | 27 | |||
Other comprehensive income (loss) | 5 | |||
Amounts reclassified to net income | 0 | |||
Net other comprehensive income (loss) | 5 | |||
Ending Balance | 32 | 32 | ||
Defined benefit pension and postretirement plans | ||||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Beginning Balance | 2,371 | |||
Other comprehensive income (loss) | 0 | |||
Amounts reclassified to net income | (338) | |||
Net other comprehensive income (loss) | (338) | |||
Ending Balance | 2,033 | 2,033 | ||
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Beginning Balance | (1,502) | 2,216 | 998 | 2,370 |
Net other comprehensive income (loss) | 228 | (769) | (2,272) | (923) |
Ending Balance | $ (1,274) | $ 1,447 | $ (1,274) | $ 1,447 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Operating
Segment Information - Operating Financial Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 30,447 | $ 32,071 | $ 62,057 | $ 64,199 |
Operating Income | 7,361 | 7,850 | 13,940 | 15,559 |
Wireless equipment | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 3,755 | 4,720 | 7,884 | 9,651 |
Service and Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 26,692 | 27,351 | 54,173 | 54,548 |
Fios revenues | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 3,014 | 3,011 | 6,075 | 6,018 |
Wireless service | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 15,948 | 16,231 | 32,305 | 32,282 |
Consumer | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 21,053 | 21,934 | 42,759 | 44,031 |
Consumer | Service | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 15,898 | 16,350 | 32,241 | 32,611 |
Consumer | Wireless equipment | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 3,209 | 3,904 | 6,586 | 8,070 |
Consumer | Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 1,946 | 1,680 | 3,932 | 3,350 |
Consumer | Fios revenues | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 2,754 | 2,772 | 5,553 | 5,536 |
Consumer | Wireless service | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 13,087 | 13,456 | 26,563 | 26,813 |
Business | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 7,463 | 7,756 | 15,125 | 15,461 |
Business | Wireless equipment | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 546 | 814 | 1,300 | 1,600 |
Business | Small and Medium Business | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 2,597 | 2,781 | 5,395 | 5,485 |
Business | Global Enterprise | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 2,587 | 2,673 | 5,217 | 5,363 |
Business | Public Sector and Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 1,523 | 1,492 | 2,997 | 2,963 |
Business | Wholesale | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 756 | 810 | 1,516 | 1,650 |
Business | Service and Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 7,000 | 7,000 | 13,900 | 13,900 |
Business | Fios revenues | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 260 | 239 | 522 | 482 |
Business | Wireless service | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 2,861 | 2,775 | 5,742 | 5,469 |
Total reportable segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 28,516 | 29,690 | 57,884 | 59,492 |
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 79 | 73 | 157 | 138 |
Intersegment Eliminations | Consumer | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 60 | 61 | 119 | 112 |
Intersegment Eliminations | Business | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 19 | 12 | 38 | 26 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 28,595 | 29,763 | 58,041 | 59,630 |
Operating Income | 8,010 | 8,407 | 16,246 | 16,705 |
Operating Segments | Consumer | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 21,113 | 21,995 | 42,878 | 44,143 |
Operating Income | 7,064 | 7,336 | 14,346 | 14,586 |
Operating Segments | Business | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 7,482 | 7,768 | 15,163 | 15,487 |
Operating Income | $ 946 | $ 1,071 | $ 1,900 | $ 2,119 |
Segment Information - Reconcili
Segment Information - Reconciliation of Operating Revenues (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Operating revenues | $ 30,447 | $ 32,071 | $ 62,057 | $ 64,199 |
Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Operating revenues | 28,595 | 29,763 | 58,041 | 59,630 |
Corporate and other | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Operating revenues | 1,967 | 2,412 | 4,239 | 4,747 |
Eliminations | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Operating revenues | $ (115) | $ (104) | $ (223) | $ (178) |
Segment Information - Reconci_2
Segment Information - Reconciliation of Segments Operating Income to Consolidated Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Operating income | $ 7,361 | $ 7,850 | $ 13,940 | $ 15,559 |
Other components of net periodic benefit charges | (204) | (203) | (407) | (406) |
Loss on spectrum license transaction | 0 | 0 | (1,195) | 0 |
Equity in losses of unconsolidated businesses | (13) | (13) | (25) | (19) |
Other income (expense), net | (72) | (1,312) | 71 | (1,017) |
Interest expense | (1,089) | (1,215) | (2,123) | (2,425) |
Income Before Provision For Income Taxes | 6,187 | 5,310 | 11,863 | 12,098 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 8,010 | 8,407 | 16,246 | 16,705 |
Corporate and other | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | $ (445) | $ (354) | $ (704) | $ (740) |
Commitments and Contingencies (
Commitments and Contingencies (Detail) | 6 Months Ended |
Jun. 30, 2020legal_matterAgreement | |
Loss Contingencies [Line Items] | |
Approximate number of federal district court actions alleged for patent infringement | legal_matter | 25 |
Guarantee obligations, term | 30 years |
Number of agreements | Agreement | 4 |
Payment Guarantee | Maximum | |
Loss Contingencies [Line Items] | |
Guarantee obligations, term | 18 years |
Payment Guarantee | Minimum | |
Loss Contingencies [Line Items] | |
Guarantee obligations, term | 12 years |