Exhibit 99
News Release
| | | | | |
| FOR IMMEDIATE RELEASE | Media contacts: |
| October 20, 2021 | Kim Ancin |
| 908.559.3227 |
| kimberly.ancin@verizon.com |
| |
| Eric Wilkens |
| 908.559.3063 |
| eric.wilkens@verizon.com |
Verizon reports strong 3Q revenue growth momentum
Accelerated 5G adoption drives 3Q performance
3Q 2021 highlights
Consolidated:
•$1.55 in earnings per share (EPS), compared with $1.05 in third-quarter 2020; adjusted EPS*, excluding special items, of $1.41, compared with $1.25 in third-quarter 2020.
•Operating revenue of $32.9 billion, up 4.3 percent from third-quarter 2020. This includes two months of Verizon Media revenue of approximately $1.4 billion on a segment basis. Excluding Verizon Media*, operating revenues increased 5.5 percent.
•Net income of $6.6 billion, an increase of 45.5 percent from third-quarter 2020, and adjusted EBITDA* of $12.3 billion, an increase of 3.3 percent from third-quarter 2020.
•129,000 total broadband net additions, defined as wireline and fixed wireless.
Total Wireless:
•Total wireless service revenue of $17.1 billion, a 3.9 percent increase year over year, driven by higher access revenue, volume growth and products.
•Total retail postpaid churn of 0.94 percent, and retail postpaid phone churn of 0.74 percent.
•699,000 retail postpaid net additions, including 429,000 phone net additions, resulting in 122.0 million total retail connections. Phone net additions increased 51.6 percent year over year.
NEW YORK - Verizon Communications Inc. (NYSE, Nasdaq: VZ) reported third-quarter earnings today highlighted by revenue and customer growth as more than one in four Consumer wireless phone customers now have a 5G-capable device.
"We had a strong third quarter, delivering on our strategy and growing in multiple areas," said Verizon Chairman and CEO Hans Vestberg. "Our disciplined strategy execution demonstrated growth in 5G adoption, broadband subscribers and business applications. We are increasing our 2021 guidance, and we continue to expand our 4G LTE and 5G network leadership. We fully expect to have a strong finish to the year as we accelerate deployment of 5G to our customers across the country."
For third-quarter 2021, Verizon reported EPS of $1.55, compared with $1.05 in third-quarter 2020, a 47.6 percent increase year over year. On an adjusted basis*, third-quarter 2021 EPS, excluding special items, was $1.41, compared with adjusted EPS of $1.25 in third-quarter 2020, a 12.8 percent increase year over year.
Third-quarter 2021 EPS included a net pre-tax gain on the sale of Verizon Media to Apollo funds of $706 million, and a net pre-tax charge of approximately $247 million, which included a net charge of $144 million related to a mark-to-market adjustment for pension liabilities, and $103 million related to a severance charge for voluntary separations under existing plans. Third-quarter 2021 results also included two months of Verizon Media, as the sale closed on September 1.
“Verizon reported another quarter of strong financial and operating performance,” said Verizon Chief Financial Officer Matt Ellis. "We are seeing strong demand for connectivity across our Consumer and Business segments as our Mix and Match and Business Unlimited value propositions, network quality and unique partnerships are resonating with both new and existing customers. We grew revenue in the quarter, achieved solid cash flow, completed the sale of Verizon Media and increased the dividend for a 15th consecutive year."
Consolidated results
•Total consolidated operating revenues in third-quarter 2021 were $32.9 billion, up 4.3 percent from third-quarter 2020. These results included two months of Verizon Media revenue of approximately $1.4 billion on a segment basis. Excluding Verizon Media*, total consolidated operating revenues increased 5.5 percent.
•Year-to-date cash flow from operations totaled $31.2 billion, a decrease from $32.5 billion year over year. This decrease was primarily driven by lower cash taxes from a one-time benefit in 2020, as well as higher working capital requirements in 2021 due to greater volumes.
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•Capital expenditures year-to-date were $13.9 billion. Capital expenditures continue to support the growth in traffic on the company's 4G LTE network and the continued expansion of the company's 5G Ultra Wideband and 5G Nationwide networks. Capital expenditures related to C-Band were more than $1 billion year-to-date.
•The company ended third-quarter 2021 with free cash flow* of $17.3 billion.
•Verizon's unsecured debt balance increased year over year by $36.1 billion to $141.6 billion at the end of third-quarter 2021, remaining relatively flat sequentially from the end of second-quarter 2021. The company’s net unsecured debt* as of the end of third-quarter 2021 increased by $35.1 billion year over year to $131.6 billion, but improved by $5.2 billion sequentially from the end of second-quarter 2021, with its net unsecured debt to adjusted EBITDA ratio* at approximately 2.7 times. Verizon's cash balance of $9.9 billion at the end of third-quarter 2021 included the proceeds associated with the company's sale of Verizon Media.
Consumer results
•Consumer built momentum throughout third-quarter 2021 highlighted by its Mix and Match pricing and unique partnerships. Consumer continued to expand its leadership in 5G adoption, ending third-quarter 2021 with more than 25 percent of wireless phone customers having 5G-capable devices.
•Total Verizon Consumer revenues were $23.3 billion, an increase of 7.3 percent year over year. This increase was primarily driven by strong demand for connectivity and products.
•Consumer wireless service revenues were $14.0 billion in third-quarter 2021, a 4.0 percent increase year over year. Consumer grew phone net additions and continued to execute on its unlimited and premium unlimited migration strategy.
•Consumer wireless retail postpaid churn was 0.84 percent in third-quarter 2021, and wireless retail postpaid phone churn was 0.67 percent.
•In third-quarter 2021, Consumer reported 423,000 wireless retail postpaid net additions. This consisted of 267,000 phone net additions and 223,000 other connected device net additions, offset by 67,000 tablet net losses. Consumer's phone net additions in third-quarter 2021 were more than Consumer's phone net additions in both third-quarter 2020 and third-quarter 2019.
•The quality and reliability of the company's Fios service continued to drive strong demand as Consumer reported 98,000 Fios Internet net additions in third-quarter 2021. Consumer Fios revenues were $2.9 billion in third-quarter 2021, an increase of 4.3 percent year over year. Consumer reported 68,000 Fios Video net losses in third-quarter 2021.
•In third-quarter 2021, Consumer segment operating income was $7.6 billion, an increase of 2.1 percent year over year, and segment operating income margin was 32.5 percent, a decrease from 34.2 percent in third-quarter 2020. Segment EBITDA* totaled $10.5 billion in third-quarter 2021, an increase of 2.0 percent from third-quarter 2020, driven by high-quality service and other revenue gains from multiple growth vectors. Segment EBITDA margin* was 45.0 percent in third-quarter 2021, a decrease from 47.4 percent in third-quarter 2020.
Business results
•In third-quarter 2021, Business continued to see strong demand for wireless services across multiple verticals. Strong Small and Medium Business momentum, the best performing quarter year-to-date for wireless subscriber growth in Global Enterprise and an increase in activity with enterprises in the private wireless and MEC space led the quarter.
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•Total Verizon Business revenues were $7.7 billion, down 0.8 percent year over year. Wireless revenue growth continues to offset ongoing legacy wireline declines.
•Business wireless service revenues were $3.1 billion in third-quarter 2021, a 3.6 percent increase year over year.
•Business wireless retail postpaid churn was 1.29 percent in third-quarter 2021, and wireless retail postpaid phone churn was 1.04 percent.
•Business reported 276,000 wireless retail postpaid net additions in third-quarter 2021, including 162,000 phone net additions.
•In third-quarter 2021, Business segment operating income was $886 million, a decrease of 4.0 percent year over year, and segment operating income margin was 11.5 percent, a decrease from 11.9 percent in third-quarter 2020. Segment EBITDA* totaled $1.9 billion in third-quarter 2021, a decrease of 2.4 percent from third-quarter 2020. Segment EBITDA margin* was 24.8 percent, a decrease from 25.2 percent in third-quarter 2020, driven by wireline pressure.
Outlook and guidance
Verizon is updating financial guidance for full-year 2021.
•The company now expects total wireless service revenue growth of around 4 percent. This update is at the higher end of the prior guidance of 3.5 percent to 4 percent.
•The company now expects adjusted EPS* of $5.35 to $5.40, an update from prior guidance of $5.25 to $5.35.
Additionally, Verizon continues to expect the following results for full-year 2021:
•Adjusted effective income tax rate* in the range of 23 percent to 25 percent.
•Capital spending to be in the range of $17.5 billion to $18.5 billion, including the further expansion of 5G mmWave in new and existing markets, the densification of the 4G LTE wireless network to manage future traffic demands and the continued deployment of the company's fiber infrastructure. The company notes that its assumption for this guidance is dependent upon no material changes in the current state of the company's supply chain. Expenditures related to the deployment of the company's C-Band 5G network will be in addition to this amount, and the company previously announced an incremental $10 billion of capital expenditures from 2021 to 2023, of which $2 billion to $3 billion is expected in 2021.
*Non-GAAP financial measure. See the accompanying schedules and www.verizon.com/about/investors for reconciliations to generally accepted accounting principles (GAAP) for non-GAAP financial measures cited in this document.
Verizon Communications Inc. (NYSE, Nasdaq: VZ) was formed on June 30, 2000 and is one of the world’s leading providers of technology and communications services. Headquartered in New York City and with a presence around the world, Verizon generated revenues of $128.3 billion in 2020. The company offers data, video and voice services and solutions on its award-winning networks and platforms, delivering on customers’ demand for mobility, reliable network connectivity, security and control.
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VERIZON’S ONLINE MEDIA CENTER: News releases, stories, media contacts and other resources are available at verizon.com/news. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.
Forward-looking statements
In this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words “anticipates,” “believes,” “estimates,” “expects,” “hopes,” “forecasts,” “plans” or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the “SEC”), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: cyber attacks impacting our networks or systems and any resulting financial or reputational impact; natural disasters, terrorist attacks or acts of war or significant litigation and any resulting financial or reputational impact; the impact of the COVID-19 pandemic on our operations, our employees and the ways in which our customers use our networks and other products and services; disruption of our key suppliers’ or vendors' provisioning of products or services, including as a result of the COVID-19 pandemic; material adverse changes in labor matters and any resulting financial or operational impact; the effects of competition in the markets in which we operate; failure to take advantage of developments in technology and address changes in consumer demand; performance issues or delays in the deployment of our 5G network resulting in significant costs or a reduction in the anticipated benefits of the enhancement to our networks; the inability to implement our business strategy; adverse conditions in the U.S. and international economies; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; our high level of indebtedness; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or treaties, or in their interpretation; and changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings.
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Verizon Communications Inc.
Condensed Consolidated Statements of Income
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in millions, except per share amounts) |
| Unaudited | | 3 Mos. Ended 9/30/21 | | 3 Mos. Ended 9/30/20 | | %
Change | | 9 Mos. Ended 9/30/21 | | 9 Mos. Ended 9/30/20 | | %
Change |
| | | | | | | | | | | | |
| Operating Revenues | | | | | | | | | | | | |
| Service revenues and other | | $ | 27,565 | | | $ | 27,431 | | | 0.5 | | $ | 83,709 | | | $ | 81,604 | | | 2.6 |
| Wireless equipment revenues | | 5,350 | | | 4,112 | | | 30.1 | | 15,837 | | | 11,996 | | | 32.0 |
| Total Operating Revenues | | 32,915 | | | 31,543 | | | 4.3 | | 99,546 | | | 93,600 | | | 6.4 |
| | | | | | | | | | | | |
| Operating Expenses | | | | | | | | | | | | |
| Cost of services | | 7,855 | | | 7,955 | | | (1.3) | | 24,199 | | | 23,348 | | | 3.6 |
| Cost of wireless equipment | | 5,673 | | | 4,379 | | | 29.6 | | 17,106 | | | 13,031 | | | 31.3 |
| Selling, general and administrative expense | | 6,521 | | | 7,339 | | | (11.1) | | 21,246 | | | 23,080 | | | (7.9) |
| Depreciation and amortization expense | | 3,961 | | | 4,192 | | | (5.5) | | 12,155 | | | 12,523 | | | (2.9) |
| | | | | | | | | | | | |
| Total Operating Expenses | | 24,010 | | | 23,865 | | | 0.6 | | 74,706 | | | 71,982 | | | 3.8 |
| | | | | | | | | | | | |
| Operating Income | | 8,905 | | | 7,678 | | | 16.0 | | 24,840 | | | 21,618 | | | 14.9 |
| Equity in earnings (losses) of unconsolidated businesses | | 1 | | | (9) | | | * | | 10 | | | (34) | | | * |
| Other income (expense), net | | 269 | | | (774) | | | * | | 1,172 | | | (703) | | | * |
| Interest expense | | (801) | | | (1,044) | | | (23.3) | | (2,746) | | | (3,167) | | | (13.3) |
| Income Before Provision For Income Taxes | | 8,374 | | | 5,851 | | | 43.1 | | 23,276 | | | 17,714 | | | 31.4 |
| Provision for income taxes | | (1,820) | | | (1,347) | | | 35.1 | | (5,395) | | | (4,084) | | | 32.1 |
| Net Income | | $ | 6,554 | | | $ | 4,504 | | | 45.5 | | $ | 17,881 | | | $ | 13,630 | | | 31.2 |
| | | | | | | | | | | | |
| Net income attributable to noncontrolling interests | | $ | 147 | | | $ | 147 | | | — | | $ | 429 | | | $ | 417 | | | 2.9 |
| Net income attributable to Verizon | | 6,407 | | | 4,357 | | | 47.1 | | 17,452 | | | 13,213 | | | 32.1 |
| Net Income | | $ | 6,554 | | | $ | 4,504 | | | 45.5 | | $ | 17,881 | | | $ | 13,630 | | | 31.2 |
| | | | | | | | | | | | |
| Basic Earnings Per Common Share | | | | | | | | | | | | |
| Net income attributable to Verizon | | $ | 1.55 | | | $ | 1.05 | | | 47.6 | | $ | 4.21 | | | $ | 3.19 | | | 32.0 |
| Weighted-average shares outstanding (in millions) | | 4,142 | | | 4,140 | | | | | 4,141 | | | 4,139 | | | |
| | | | | | | | | | | | |
Diluted Earnings Per Common Share (1) | | | | | | | | | | | | |
| Net income attributable to Verizon | | $ | 1.55 | | | $ | 1.05 | | | 47.6 | | $ | 4.21 | | | $ | 3.19 | | | 32.0 |
| Weighted-average shares outstanding (in millions) | | 4,144 | | | 4,142 | | | | | 4,143 | | | 4,141 | | | |
Footnotes:
(1)Diluted Earnings per Common Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represents the only potential dilution.
*Not meaningful
Verizon Communications Inc.
Condensed Consolidated Balance Sheets
| | | | | | | | | | | | | | | | | | | | |
| (dollars in millions) |
| Unaudited | | 9/30/21 | | 12/31/20 | | $ Change |
| | | | | | |
| Assets | | | | | | |
| Current assets | | | | | | |
| Cash and cash equivalents | | $ | 9,936 | | | $ | 22,171 | | | $ | (12,235) | |
| Accounts receivable | | 23,165 | | | 25,169 | | | (2,004) | |
| Less Allowance for credit losses | | 970 | | | 1,252 | | | (282) | |
| | | | | | |
| Accounts receivable, net | | 22,195 | | | 23,917 | | | (1,722) | |
| Inventories | | 2,303 | | | 1,796 | | | 507 | |
| | | | | | |
| Prepaid expenses and other | | 5,843 | | | 6,710 | | | (867) | |
| Total current assets | | 40,277 | | | 54,594 | | | (14,317) | |
| | | | | | |
| Property, plant and equipment | | 287,421 | | | 279,737 | | | 7,684 | |
| Less Accumulated depreciation | | 191,665 | | | 184,904 | | | 6,761 | |
| Property, plant and equipment, net | | 95,756 | | | 94,833 | | | 923 | |
| Investments in unconsolidated businesses | | 1,100 | | | 589 | | | 511 | |
| Wireless licenses | | 145,767 | | | 96,097 | | | 49,670 | |
| Deposits for wireless licenses | | — | | | 2,772 | | | (2,772) | |
| Goodwill | | 24,887 | | | 24,773 | | | 114 | |
| Other intangible assets, net | | 7,022 | | | 9,413 | | | (2,391) | |
| Operating lease right-of-use assets | | 27,969 | | | 22,531 | | | 5,438 | |
| Other assets | | 10,679 | | | 10,879 | | | (200) | |
| Total assets | | $ | 353,457 | | | $ | 316,481 | | | $ | 36,976 | |
| | | | | | |
| Liabilities and Equity | | | | | | |
| Current liabilities | | | | | | |
| Debt maturing within one year | | $ | 7,623 | | | $ | 5,889 | | | $ | 1,734 | |
| Accounts payable and accrued liabilities | | 20,153 | | | 20,658 | | | (505) | |
| | | | | | |
| Current operating lease liabilities | | 3,606 | | | 3,485 | | | 121 | |
| Other current liabilities | | 9,976 | | | 9,628 | | | 348 | |
| Total current liabilities | | 41,358 | | | 39,660 | | | 1,698 | |
| | | | | | |
| Long-term debt | | 143,352 | | | 123,173 | | | 20,179 | |
| Employee benefit obligations | | 16,516 | | | 18,657 | | | (2,141) | |
| Deferred income taxes | | 38,481 | | | 35,711 | | | 2,770 | |
| Non-current operating lease liabilities | | 23,507 | | | 18,000 | | | 5,507 | |
| Other liabilities | | 11,754 | | | 12,008 | | | (254) | |
| Total long-term liabilities | | 233,610 | | | 207,549 | | | 26,061 | |
| | | | | | |
| Equity | | | | | | |
| Common stock | | 429 | | | 429 | | | — | |
| Additional paid in capital | | 13,402 | | | 13,404 | | | (2) | |
| Retained earnings | | 70,062 | | | 60,464 | | | 9,598 | |
| Accumulated other comprehensive loss | | (709) | | | (71) | | | (638) | |
| Common stock in treasury, at cost | | (6,630) | | | (6,719) | | | 89 | |
| Deferred compensation – employee stock ownership plans and other | | 490 | | | 335 | | | 155 | |
| Noncontrolling interests | | 1,445 | | | 1,430 | | | 15 | |
| Total equity | | 78,489 | | | 69,272 | | | 9,217 | |
| Total liabilities and equity | | $ | 353,457 | | | $ | 316,481 | | | $ | 36,976 | |
Footnotes:
Certain amounts have been reclassified to conform to the current period presentation.
Verizon Communications Inc.
Consolidated - Selected Financial and Operating Statistics
| | | | | | | | | | | | | | |
| (dollars in millions, except per share amounts) |
| Unaudited | | 9/30/21 | | 12/31/20 |
| | | | |
| Total debt | | $ | 150,975 | | | $ | 129,062 | |
| | | | |
| Net unsecured debt | | $ | 131,614 | | | $ | 96,287 | |
| | | | |
Net unsecured debt / Consolidated Adjusted EBITDA(1) | | 2.7x | | 2.0x |
| Common shares outstanding end of period (in millions) | | 4,140 | | | 4,138 | |
| Total employees (‘000) | | 118.5 | | | 132.2 | |
| Quarterly cash dividends declared per common share | | $ | 0.6400 | | | $ | 0.6275 | |
Footnotes:
(1)Consolidated adjusted EBITDA excludes the effects of non-operational items and special items.
Verizon Communications Inc.
Condensed Consolidated Statements of Cash Flows
| | | | | | | | | | | | | | | | | | | | |
| (dollars in millions) |
| Unaudited | | 9 Mos. Ended 9/30/21 | | 9 Mos. Ended 9/30/20 | | $ Change |
| | | | | | |
| Cash Flows from Operating Activities | | | | | | |
| Net Income | | $ | 17,881 | | | $ | 13,630 | | | $ | 4,251 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | |
| Depreciation and amortization expense | | 12,155 | | | 12,523 | | | (368) | |
| Employee retirement benefits | | (1,928) | | | 867 | | | (2,795) | |
| Deferred income taxes | | 2,970 | | | 530 | | | 2,440 | |
| Provision for expected credit losses | | 604 | | | 1,100 | | | (496) | |
| Equity in losses of unconsolidated businesses, net of dividends received | | 32 | | | 67 | | | (35) | |
| | | | | | |
| | | | | | |
| Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses | | 603 | | | 1,345 | | | (742) | |
| | | | | | |
| Other, net | | (1,155) | | | 2,410 | | | (3,565) | |
| Net cash provided by operating activities | | 31,162 | | | 32,472 | | | (1,310) | |
| | | | | | |
| Cash Flows from Investing Activities | | | | | | |
| Capital expenditures (including capitalized software) | | (13,861) | | | (14,168) | | | 307 | |
| Acquisitions of businesses, net of cash acquired | | (459) | | | (507) | | | 48 | |
| Acquisitions of wireless licenses | | (47,027) | | | (3,757) | | | (43,270) | |
| Proceeds from disposition of business | | 4,122 | | | — | | | 4,122 | |
| Other, net | | 207 | | | (37) | | | 244 | |
| Net cash used in investing activities | | (57,018) | | | (18,469) | | | (38,549) | |
| | | | | | |
| Cash Flows from Financing Activities | | | | | | |
| Proceeds from long-term borrowings | | 32,482 | | | 12,387 | | | 20,095 | |
| Proceeds from asset-backed long-term borrowings | | 2,695 | | | 4,439 | | | (1,744) | |
| Repayments of long-term borrowings and finance lease obligations | | (7,904) | | | (8,853) | | | 949 | |
| Repayments of asset-backed long-term borrowings | | (3,887) | | | (6,726) | | | 2,839 | |
| Dividends paid | | (7,797) | | | (7,636) | | | (161) | |
| Other, net | | (2,120) | | | (1,348) | | | (772) | |
| Net cash provided by (used in) financing activities | | 13,469 | | | (7,737) | | | 21,206 | |
| | | | | | |
| Increase (decrease) in cash, cash equivalents and restricted cash | | (12,387) | | | 6,266 | | | (18,653) | |
| Cash, cash equivalents and restricted cash, beginning of period | | 23,498 | | | 3,917 | | | 19,581 | |
| Cash, cash equivalents and restricted cash, end of period | | $ | 11,111 | | | $ | 10,183 | | | $ | 928 | |
Footnotes:
Certain amounts have been reclassified to conform to the current period presentation.
Verizon Communications Inc.
Consumer - Selected Financial Results
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in millions) |
| Unaudited | | 3 Mos. Ended 9/30/21 | | 3 Mos. Ended 9/30/20 | | %
Change | | 9 Mos. Ended 9/30/21 | | 9 Mos. Ended 9/30/20 | | %
Change |
| | | | | | | | | | | | |
| Operating Revenues | | | | | | | | | | | | |
| Service | | $ | 16,891 | | | $ | 16,255 | | | 3.9 | | $ | 50,169 | | | $ | 48,496 | | | 3.4 |
| Wireless equipment | | 4,530 | | | 3,403 | | | 33.1 | | 13,461 | | | 9,989 | | | 34.8 |
| Other | | 1,907 | | | 2,078 | | | (8.2) | | 5,973 | | | 6,129 | | | (2.5) |
| Total Operating Revenues | | 23,328 | | | 21,736 | | | 7.3 | | 69,603 | | | 64,614 | | | 7.7 |
| | | | | | | | | | | | |
| Operating Expenses | | | | | | | | | | | | |
| Cost of services | | 4,149 | | | 3,971 | | | 4.5 | | 12,330 | | | 11,786 | | | 4.6 |
| Cost of wireless equipment | | 4,611 | | | 3,411 | | | 35.2 | | 13,857 | | | 10,161 | | | 36.4 |
| Selling, general and administrative expense | | 4,060 | | | 4,055 | | | 0.1 | | 12,131 | | | 12,353 | | | (1.8) |
| Depreciation and amortization expense | | 2,918 | | | 2,862 | | | 2.0 | | 8,679 | | | 8,531 | | | 1.7 |
| Total Operating Expenses | | 15,738 | | | 14,299 | | | 10.1 | | 46,997 | | | 42,831 | | | 9.7 |
| | | | | | | | | | | | |
| Operating Income | | $ | 7,590 | | | $ | 7,437 | | | 2.1 | | $ | 22,606 | | | $ | 21,783 | | | 3.8 |
| Operating Income Margin | | 32.5 | % | | 34.2 | % | | | | 32.5 | % | | 33.7 | % | | |
| | | | | | | | | | | | |
| Segment EBITDA | | $ | 10,508 | | | $ | 10,299 | | | 2.0 | | $ | 31,285 | | | $ | 30,314 | | | 3.2 |
| Segment EBITDA Margin | | 45.0 | % | | 47.4 | % | | | | 44.9 | % | | 46.9 | % | | |
Footnotes:
The segment financial results and metrics above are adjusted to exclude the effects of special items, as the Company’s chief operating decision maker excludes these items in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.
Verizon Communications Inc.
Consumer - Selected Operating Statistics
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Unaudited | | | | | | | | 9/30/21 | | 9/30/20 | | % Change |
| | | | | | | | | | | | |
| Connections (‘000): | | | | | | | | | | | | |
| Wireless retail postpaid connections | | | | | | | | 90,916 | | | 90,026 | | | 1.0 |
| Wireless retail prepaid connections | | | | | | | | 4,072 | | | 4,075 | | | (0.1) |
| Total wireless retail connections | | | | | | | | 94,988 | | | 94,101 | | | 0.9 |
| | | | | | | | | | | | |
| Fios video connections | | | | | | | | 3,642 | | | 3,926 | | | (7.2) |
| Fios internet connections | | | | | | | | 6,490 | | | 6,110 | | | 6.2 |
| Fios digital voice residence connections | | | | | | | | 3,094 | | | 3,384 | | | (8.6) |
| Fios digital connections | | | | | | | | 13,226 | | | 13,420 | | | (1.4) |
| Wireline broadband connections | | | | | | | | 6,858 | | | 6,581 | | | 4.2 |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Unaudited | | 3 Mos. Ended 9/30/21 | | 3 Mos. Ended 9/30/20 | | %
Change | | 9 Mos. Ended 9/30/21 | | 9 Mos. Ended 9/30/20 | | %
Change |
| | | | | | | | | | | | |
| Gross Additions (‘000): | | | | | | | | | | | | |
| Wireless retail postpaid | | 2,701 | | | 2,304 | | | 17.2 | | 7,600 | | | 6,451 | | | 17.8 |
| | | | | | | | | | | | |
Net Additions Detail (‘000) : | | | | | | | | | | | | |
Wireless retail postpaid (1) | | 423 | | | 136 | | | * | | 447 | | | (317) | | | * |
Wireless retail prepaid (1) | | (4) | | | 77 | | | * | | 33 | | | 5 | | | * |
Total wireless retail (1) | | 419 | | | 213 | | | 96.7 | | 480 | | | (312) | | | * |
| | | | | | | | | | | | |
Wireless retail postpaid phones (1) | | 267 | | | 142 | | | 88.0 | | 239 | | | (68) | | | * |
| | | | | | | | | | | | |
| Fios video | | (68) | | | (61) | | | (11.5) | | (212) | | | (226) | | | 6.2 |
| Fios internet | | 98 | | | 139 | | | (29.5) | | 288 | | | 208 | | | 38.5 |
| Fios digital voice residence | | (71) | | | (72) | | | 1.4 | | (212) | | | (236) | | | 10.2 |
| Fios digital | | (41) | | | 6 | | | * | | (136) | | | (254) | | | 46.5 |
Wireline broadband (1) | | 75 | | | 113 | | | (33.6) | | 211 | | | 131 | | | 61.1 |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Churn Rate: | | | | | | | | | | | | |
| Wireless retail postpaid | | 0.84 | % | | 0.80 | % | | | | 0.88 | % | | 0.84 | % | | |
| Wireless retail postpaid phones | | 0.67 | % | | 0.63 | % | | | | 0.69 | % | | 0.64 | % | | |
| Wireless retail | | 0.98 | % | | 0.95 | % | | | | 1.02 | % | | 1.00 | % | | |
| | | | | | | | | | | | |
| Revenue Statistics (in millions): | | | | | | | | | | | | |
| Wireless service revenue | | $ | 13,982 | | | $ | 13,442 | | | 4.0 | | $ | 41,460 | | | $ | 40,005 | | | 3.6 |
| Fios revenues | | $ | 2,893 | | | $ | 2,773 | | | 4.3 | | $ | 8,648 | | | $ | 8,326 | | | 3.9 |
| | | | | | | | | | | | |
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Verizon Communications Inc.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Unaudited | | 3 Mos. Ended 9/30/21 | | 3 Mos. Ended 9/30/20 | | %
Change | | 9 Mos. Ended 9/30/21 | | 9 Mos. Ended 9/30/20 | | %
Change |
| | | | | | | | | | | | |
| Other Wireless Statistics: | | | | | | | | | | | | |
Wireless retail postpaid ARPA (2) | | $ | 123.04 | | | $ | 118.52 | | | 3.8 | | $ | 121.71 | | | $ | 117.80 | | | 3.3 |
| Wireless retail postpaid upgrade rate | | 4.7 | % | | 4.2 | % | | | | | | | | |
Wireless retail postpaid accounts (‘000) (3) | | | | | | | | 33,640 | | | 33,712 | | | (0.2) |
Wireless retail postpaid connections per account (3) | | | | | | | | 2.70 | | | 2.67 | | | 1.1 |
Total wireless internet postpaid base (3) | | | | | | | | 16.2 | % | | 15.9 | % | | |
Footnotes:
(1) Connection net additions include certain adjustments.
(2) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
(3) Statistics presented as of end of period.
Certain intersegment transactions with corporate entities have not been eliminated.
* Not meaningful
Verizon Communications Inc.
Business - Selected Financial Results
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in millions) |
| Unaudited | | 3 Mos. Ended 9/30/21 | | 3 Mos. Ended 9/30/20 | | %
Change | | 9 Mos. Ended 9/30/21 | | 9 Mos. Ended 9/30/20 | | %
Change |
| | | | | | | | | | | | |
| Operating Revenues | | | | | | | | | | | | |
| Small and Medium Business | | $ | 2,937 | | | $ | 2,742 | | | 7.1 | | $ | 8,662 | | | $ | 8,147 | | | 6.3 |
| Global Enterprise | | 2,552 | | | 2,595 | | | (1.7) | | 7,694 | | | 7,815 | | | (1.5) |
| | | | | | | | | | | | |
| Public Sector and Other | | 1,547 | | | 1,639 | | | (5.6) | | 4,807 | | | 4,636 | | | 3.7 |
| Wholesale | | 653 | | | 773 | | | (15.5) | | 2,069 | | | 2,314 | | | (10.6) |
| Total Operating Revenues | | 7,689 | | | 7,749 | | | (0.8) | | 23,232 | | | 22,912 | | | 1.4 |
| | | | | | | | | | | | |
| Operating Expenses | | | | | | | | | | | | |
| Cost of services | | 2,647 | | | 2,739 | | | (3.4) | | 8,066 | | | 7,969 | | | 1.2 |
| Cost of wireless equipment | | 1,061 | | | 968 | | | 9.6 | | 3,248 | | | 2,870 | | | 13.2 |
| Selling, general and administrative expense | | 2,077 | | | 2,092 | | | (0.7) | | 6,231 | | | 6,195 | | | 0.6 |
| Depreciation and amortization expense | | 1,018 | | | 1,027 | | | (0.9) | | 3,046 | | | 3,055 | | | (0.3) |
| Total Operating Expenses | | 6,803 | | | 6,826 | | | (0.3) | | 20,591 | | | 20,089 | | | 2.5 |
| | | | | | | | | | | | |
| Operating Income | | $ | 886 | | | $ | 923 | | | (4.0) | | $ | 2,641 | | | $ | 2,823 | | | (6.4) |
| Operating Income Margin | | 11.5 | % | | 11.9 | % | | | | 11.4 | % | | 12.3 | % | | |
| | | | | | | | | | | | |
| Segment EBITDA | | $ | 1,904 | | | $ | 1,950 | | | (2.4) | | $ | 5,687 | | | $ | 5,878 | | | (3.2) |
| Segment EBITDA Margin | | 24.8 | % | | 25.2 | % | | | | 24.5 | % | | 25.7 | % | | |
Footnotes:
The segment financial results and metrics above are adjusted to exclude the effects of special items, as the Company’s chief operating decision maker excludes these items in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.
Verizon Communications Inc.
Business - Selected Operating Statistics
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Unaudited | | | | | | | | 9/30/21 | | 9/30/20 | | %
Change |
| | | | | | | | | | | | |
| Connections (‘000): | | | | | | | | | | | | |
| Wireless retail postpaid connections | | | | | | | | 26,998 | | | 26,223 | | | 3.0 |
| | | | | | | | | | | | |
| Fios video connections | | | | | | | | 72 | | | 74 | | | (2.7) |
| Fios internet connections | | | | | | | | 352 | | | 332 | | | 6.0 |
| Fios digital connections | | | | | | | | 424 | | | 406 | | | 4.4 |
| Wireline broadband connections | | | | | | | | 479 | | | 488 | | | (1.8) |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Unaudited | | 3 Mos. Ended 9/30/21 | | 3 Mos. Ended 9/30/20 | | %
Change | | 9 Mos. Ended 9/30/21 | | 9 Mos. Ended 9/30/20 | | %
Change |
| | | | | | | | | | | | |
| Gross Additions (‘000): | | | | | | | | | | | | |
| Wireless retail postpaid | | 1,314 | | | 1,345 | | | (2.3) | | 3,675 | | | 3,957 | | | (7.1) |
| | | | | | | | | | | | |
| Net Additions Detail (‘000): | | | | | | | | | | | | |
Wireless retail postpaid (1) | | 276 | | | 417 | | | (33.8) | | 610 | | | 1,172 | | | (48.0) |
Wireless retail postpaid phones (1) | | 162 | | | 141 | | | 14.9 | | 287 | | | 456 | | | (37.1) |
| | | | | | | | | | | | |
| Fios video | | — | | | (1) | | | 100.0 | | (1) | | | (3) | | | 66.7 |
| Fios internet | | 6 | | | 5 | | | 20.0 | | 17 | | | 6 | | | * |
| Fios digital | | 6 | | | 4 | | | 50.0 | | 16 | | | 3 | | | * |
Wireline broadband (1) | | (1) | | | (3) | | | 66.7 | | (3) | | | (18) | | | 83.3 |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Churn Rate: | | | | | | | | | | | | |
| Wireless retail postpaid | | 1.29 | % | | 1.19 | % | | | | 1.28 | % | | 1.20 | % | | |
| Wireless retail postpaid phones | | 1.04 | % | | 0.96 | % | | | | 1.04 | % | | 0.96 | % | | |
| | | | | | | | | | | | |
| Revenue Statistics (in millions): | | | | | | | | | | | | |
| Wireless service revenue | | $ | 3,097 | | | $ | 2,990 | | | 3.6 | | $ | 9,247 | | | $ | 8,732 | | | 5.9 |
| Fios revenues | | $ | 287 | | | $ | 263 | | | 9.1 | | $ | 844 | | | $ | 785 | | | 7.5 |
| | | | | | | | | | | | |
| Other Operating Statistics: | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Wireless retail postpaid upgrade rate | | 3.2 | % | | 3.3 | % | | | | | | | | |
Total wireless internet postpaid base (2) | | | | | | | | 34.7 | % | | 34.3 | % | | |
| | | | | | | | | | | | |
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Footnotes:
(1) Connection net additions include certain adjustments.
(2) Statistics presented as of end of period.
Certain intersegment transactions with corporate entities have not been eliminated.
*Not meaningful
Verizon Communications Inc.
Supplemental Information - Total Wireless Operating and Financial Statistics
The following supplemental schedule contains certain financial and operating metrics which reflect an aggregation of our Consumer and Business segments’ wireless results.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Unaudited | | 9/30/21 | | 9/30/20 | | % Change |
| | | | | | | | | | | | |
| Connections (‘000) | | | | | | | | | | | | |
| Retail postpaid | | | | | | | | 117,914 | | | 116,249 | | | 1.4 |
| Retail prepaid | | | | | | | | 4,072 | | | 4,075 | | | (0.1) |
| Total retail | | | | | | | | 121,986 | | | 120,324 | | | 1.4 |
| | | | | | | | | | | | |
| Unaudited | | 3 Mos. Ended 9/30/21 | | 3 Mos. Ended 9/30/20 | | %
Change | | 9 Mos. Ended 9/30/21 | | 9 Mos. Ended 9/30/20 | | %
Change |
| | | | | | | | | | | | |
Net Additions Detail (‘000) (1) | | | | | | | | | | | | |
| Retail postpaid phone | | 429 | | | 283 | | | 51.6 | | 526 | | | 388 | | | 35.6 |
| Retail postpaid | | 699 | | | 553 | | | 26.4 | | 1,057 | | | 855 | | | 23.6 |
| Retail prepaid | | (4) | | | 77 | | | * | | 33 | | | 5 | | | * |
| Total retail | | 695 | | | 630 | | | 10.3 | | 1,090 | | | 860 | | | 26.7 |
| | | | | | | | | | | | |
| Account Statistics | | | | | | | | | | | | |
Retail postpaid accounts (‘000) (2) | | | | | | | | 35,285 | | | 35,279 | | | * |
Retail postpaid connections per account (2) | | | | | | | | 3.34 | | | 3.30 | | | 1.2 |
Retail postpaid ARPA (3) | | $ | 143.87 | | | $ | 139.24 | | | 3.3 | | $ | 142.61 | | | $ | 138.01 | | | 3.3 |
| | | | | | | | | | | | |
| Churn Detail | | | | | | | | | | | | |
| Retail postpaid phone | | 0.74 | % | | 0.69 | % | | | | 0.76 | % | | 0.70 | % | | |
| Retail postpaid | | 0.94 | % | | 0.89 | % | | | | 0.97 | % | | 0.92 | % | | |
| Retail | | 1.05 | % | | 1.01 | % | | | | 1.08 | % | | 1.05 | % | | |
| | | | | | | | | | | | |
| Retail Postpaid Connection Statistics | | | | | | | | | | | | |
| | | | | | | | | | | | |
Total internet postpaid base (2) | | | | | | | | 20.4 | % | | 20.0 | % | | |
| Upgrade rate | | 4.3 | % | | 4.0 | % | | | | | | | | |
| | | | | | | | | | | | |
Revenue Statistics (in millions) (4) | | | | | | | | | | | | |
| Wireless service | | $ | 17,079 | | | $ | 16,432 | | | 3.9 | | $ | 50,707 | | | $ | 48,737 | | | 4.0 |
| Wireless equipment | | 5,350 | | | 4,112 | | | 30.1 | | 15,837 | | | 11,996 | | | 32.0 |
| Wireless other | | 1,929 | | | 2,096 | | | (8.0) | | 6,015 | | | 6,214 | | | (3.2) |
| Total Wireless | | $ | 24,358 | | | $ | 22,640 | | | 7.6 | | $ | 72,559 | | | $ | 66,947 | | | 8.4 |
Footnotes:
(1) Connection net additions include certain adjustments.
(2) Statistics presented as of end of period.
(3) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
(4) Intersegment transactions between Consumer or Business segment with corporate entities have not been eliminated.
Verizon Communications Inc.
Non-GAAP Reconciliations - Consolidated Verizon
| | | | | | | | | | | | | | | | | |
| Consolidated Operating Revenues Excluding Divested Media Business | | |
| (dollars in millions) |
| | | | | | | |
| | | 3 Mos. Ended | | 3 Mos. Ended | | |
| Unaudited | | | 9/30/21 | | 9/30/20 | | |
| | | | | | | |
| Consolidated Operating Revenues | | | $ | 32,915 | | | $ | 31,543 | | | |
| Less Operating revenues from divested Media business | | | 1,348 | | | 1,625 | | | |
| Consolidated Operating Revenues Excluding Divested Media Business | | | $ | 31,567 | | | $ | 29,918 | | | |
| Year over year change % | | | 5.5 | % | | | | |
Consolidated EBITDA and Consolidated Adjusted EBITDA
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in millions) |
| Unaudited | | | | 3 Mos. Ended 9/30/21 | | 3 Mos. Ended 6/30/21 | | 3 Mos. Ended 3/31/21 | | 3 Mos. Ended 12/31/20 | | 3 Mos. Ended 9/30/20 | | 3 Mos. Ended 6/30/20 | | 3 Mos. Ended 3/31/20 |
| | | | | | | | | | | | | | | | |
| Consolidated Net Income | | | | $ | 6,554 | | | $ | 5,949 | | | $ | 5,378 | | | $ | 4,718 | | | $ | 4,504 | | | $ | 4,839 | | | $ | 4,287 | |
| Add/(subtract): | | | | | | | | | | | | | | | | |
| Provision for income taxes | | | | 1,820 | | | 1,875 | | | 1,700 | | | 1,535 | | | 1,347 | | | 1,348 | | | 1,389 | |
Interest expense (1) | | | | 801 | | | 844 | | | 1,101 | | | 1,080 | | | 1,044 | | | 1,089 | | | 1,034 | |
| Depreciation and amortization expense | | | | 3,961 | | | 4,020 | | | 4,174 | | | 4,197 | | | 4,192 | | | 4,181 | | | 4,150 | |
| Consolidated EBITDA | | | | $ | 13,136 | | | $ | 12,688 | | | $ | 12,353 | | | $ | 11,530 | | | $ | 11,087 | | | $ | 11,457 | | | $ | 10,860 | |
| | | | | | | | | | | | | | | | |
| Add/(subtract): | | | | | | | | | | | | | | | | |
Other (income) expense, net (2) | | | | $ | (269) | | | $ | (502) | | | $ | (401) | | | $ | (164) | | | $ | 774 | | | $ | 72 | | | $ | (143) | |
| Equity in losses (earnings) of unconsolidated businesses | | | | (1) | | | (1) | | | (8) | | | 11 | | | 9 | | | 13 | | | 12 | |
| | | | | | | | | | | | | | | | |
| Severance charges | | | | 103 | | | — | | | — | | | 221 | | | — | | | — | | | — | |
| | | | | | | | | | | | | | | | |
| Loss on spectrum licenses | | | | — | | | — | | | 223 | | | — | | | — | | | — | | | 1,195 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Net (gain) loss from disposition of business | | | | (706) | | | — | | | — | | | 126 | | | — | | | — | | | — | |
| | | | (873) | | | (503) | | | (186) | | | 194 | | | 783 | | | 85 | | | 1,064 | |
| | | | | | | | | | | | | | | | |
| Consolidated Adjusted EBITDA | | | | $ | 12,263 | | | $ | 12,185 | | | $ | 12,167 | | | $ | 11,724 | | | $ | 11,870 | | | $ | 11,542 | | | $ | 11,924 | |
| | | | | | | | | | | | | | | | |
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(1) Includes Early debt redemption costs, where applicable.
(2) Includes Pension and benefits mark-to-market adjustments and Early debt redemption costs, where applicable.
Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in millions) |
| Unaudited | | 9/30/21 | | 6/30/21 | | 12/31/20 | | 9/30/20 |
| | | | | | | | |
| Debt maturing within one year | | $ | 7,623 | | | $ | 7,023 | | | $ | 5,889 | | | $ | 5,770 | |
| Long-term debt | | 143,352 | | | 144,894 | | | 123,173 | | | 109,790 | |
| Total Debt | | 150,975 | | | 151,917 | | | 129,062 | | | 115,560 | |
| Less Secured debt | | 9,425 | | | 10,315 | | | 10,604 | | | 10,092 | |
| Unsecured Debt | | 141,550 | | | 141,602 | | | 118,458 | | | 105,468 | |
Less Cash and cash equivalents(1) | | 9,936 | | | 4,757 | | | 22,171 | | | 8,983 | |
| Net Unsecured Debt | | $ | 131,614 | | | $ | 136,845 | | | $ | 96,287 | | | $ | 96,485 | |
| Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio | | 2.7x | | | | 2.0x | | |
| Unsecured Debt - Quarter over quarter change | | $ | (52) | | | | | | | |
| Unsecured Debt - Year over year change | | $ | 36,082 | | | | | | | |
| Net Unsecured Debt - Quarter over quarter change | | $ | (5,231) | | | | | | | |
| Net Unsecured Debt - Year over year change | | $ | 35,129 | | | | | | | |
(1) Includes Cash and cash equivalents held for sale, where applicable.
Verizon Communications Inc.
Adjusted Earnings per Common Share (Adjusted EPS)(1)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in millions, except per share amounts) |
| Unaudited | | 3 Mos. Ended 9/30/21 | | 3 Mos. Ended 9/30/20 |
| | Pre-tax | Tax | After-Tax | | | Pre-tax | Tax | After-Tax | |
| EPS | | | | | $ | 1.55 | | | | | | $ | 1.05 | |
| | | | | | | | | | |
| Severance, pension and benefits charges | | $ | 247 | | $ | (63) | | $ | 184 | | 0.04 | | | $ | 1,092 | | $ | (279) | | $ | 813 | | 0.20 | |
| Net gain from sale of Media | | (706) | | (30) | | (736) | | (0.18) | | | — | | — | | — | | — | |
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| | | | | | | | | | |
| | $ | (459) | | $ | (93) | | $ | (552) | | $ | (0.13) | | | $ | 1,092 | | $ | (279) | | $ | 813 | | $ | 0.20 | |
| Adjusted EPS | | | | | $ | 1.41 | | | | | | $ | 1.25 | |
| Year over year change % | | | | | 12.8 | % | | | | | |
Note: Adjusted EPS may not add due to rounding.
| | | | | | | | | | | | | | | |
| Free Cash Flow | | | | | |
| (dollars in millions) | |
| Unaudited | | 9 Mos. Ended 9/30/21 | | 9 Mos. Ended 9/30/20 | |
| | | | | |
| Net Cash Provided by Operating Activities | | $ | 31,162 | | | $ | 32,472 | | |
| Capital expenditures (including capitalized software) | | (13,861) | | | (14,168) | | |
| Free Cash Flow | | $ | 17,301 | | | $ | 18,304 | | |
| | | | | |
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Verizon Communications Inc.
Non-GAAP Reconciliations - Segments
Segment EBITDA and Segment EBITDA Margin
Consumer
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in millions) |
| Unaudited | | 3 Mos. Ended 9/30/21 | | 3 Mos. Ended 9/30/20 | | 9 Mos. Ended 9/30/21 | | 9 Mos. Ended 9/30/20 |
| | | | | | | | |
| Operating Income | | $ | 7,590 | | | $ | 7,437 | | | $ | 22,606 | | | $ | 21,783 | |
| Add Depreciation and amortization expense | | 2,918 | | | 2,862 | | | 8,679 | | | 8,531 | |
| Segment EBITDA | | $ | 10,508 | | | $ | 10,299 | | | $ | 31,285 | | | $ | 30,314 | |
| Year over year change % | | 2.0 | % | | | | 3.2 | % | | |
| | | | | | | | |
| Total operating revenues | | $ | 23,328 | | | $ | 21,736 | | | $ | 69,603 | | | $ | 64,614 | |
| Operating Income Margin | | 32.5 | % | | 34.2 | % | | 32.5 | % | | 33.7 | % |
| Segment EBITDA Margin | | 45.0 | % | | 47.4 | % | | 44.9 | % | | 46.9 | % |
| | | | | | | | |
Business
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in millions) |
| Unaudited | | 3 Mos. Ended 9/30/21 | | 3 Mos. Ended 9/30/20 | | 9 Mos. Ended 9/30/2021 | | 9 Mos. Ended 9/30/2020 |
| | | | | | | | |
| Operating Income | | $ | 886 | | | $ | 923 | | | $ | 2,641 | | | $ | 2,823 | |
| Add Depreciation and amortization expense | | 1,018 | | | 1,027 | | | 3,046 | | | 3,055 | |
| Segment EBITDA | | $ | 1,904 | | | $ | 1,950 | | | $ | 5,687 | | | $ | 5,878 | |
| Year over year change % | | (2.4) | % | | | | (3.2) | % | | |
| | | | | | | | |
| Total operating revenues | | $ | 7,689 | | | $ | 7,749 | | | $ | 23,232 | | | $ | 22,912 | |
| Operating Income Margin | | 11.5 | % | | 11.9 | % | | 11.4 | % | | 12.3 | % |
| Segment EBITDA Margin | | 24.8 | % | | 25.2 | % | | 24.5 | % | | 25.7 | % |
| | | | | | | | |
