Verizon Communications (VZ) 8-K Consolidated Statements of Income – Restated for Discontinued Operations

Verizon Communications Inc. Exhibit 99.1

Consolidated Statements of Income – Restated for Discontinued Operations

	(dollars in millions, except per share amounts)
	2005															2006
Unaudited	1Q05			2Q05			3Q05			4Q05			Annual			1Q06
Operating Revenues	$	17,682		$	18,053		$	18,486		$	18,771		$	72,992		$	22,058
Cost of services and sales		5,952			6,077			6,361			6,393			24,783			8,589
Selling, general & administrative expense		5,077			5,110			5,195			5,322			20,704			6,188
Depreciation and amortization expense		3,376			3,410			3,433			3,489			13,708			3,689
Sales of businesses, net		—			(530	)		—			—			(530	)		—
Total Operating Expenses		14,405			14,067			14,989			15,204			58,665			18,466
Operating Income		3,277			3,986			3,497			3,567			14,327			3,592
Equity in earnings of unconsolidated businesses		193			178			182			133			686			157
Income from other unconsolidated businesses		56			—			1			35			92			—
Other income and (expense), net		69			77			87			(12	)		221			103
Interest expense		(548	)		(528	)		(525	)		(528	)		(2,129	)		(636	)
Minority interest		(610	)		(711	)		(748	)		(939	)		(3,008	)		(868	)
Income Before Provision for Income Taxes, Discontinued Operations and Cumulative Effect of Accounting Change		2,437			3,002			2,494			2,256			10,189			2,348
Provision for income taxes		(751	)		(933	)		(702	)		(688	)		(3,074	)		(812	)
Income Before Discontinued Operations and Cumulative Effect of Accounting Change		1,686			2,069			1,792			1,568			7,115			1,536
Discontinued Operations
Income from operations		99			92			113			114			418			203
Provision for income taxes		(28	)		(48	)		(36	)		(24	)		(136	)		(65	)
Income on discontinued operations		71			44			77			90			282			138
Cumulative Effect of Accounting Change, Net of Tax		—			—			—			—			—			(42	)
Net Income	$	1,757		$	2,113		$	1,869		$	1,658		$	7,397		$	1,632
Basic Earnings per Common Share(1)
Income before discontinued operations and cumulative effect of accounting change	$	.61		$	.75		$	.65		$	.57		$	2.57		$	.53
Income on discontinued operations, net of tax	$	.03		$	.02		$	.03		$	.03		$	.10		$	.05
Cumulative effect of accounting change, net of tax	$	—		$	—		$	—		$	—		$	—		$	(.01	)
Net income	$	.63		$	.76		$	.68		$	.60		$	2.67		$	.56
Diluted Earnings per Common Share(1)
Income before discontinued operations and cumulative effect of accounting change	$	.60		$	.74		$	.64		$	.56		$	2.55		$	.52
Income on discontinued operations, net of tax	$	.03		$	.02		$	.03		$	.03		$	.10		$	.05
Cumulative effect of accounting change, net of tax	$	—		$	—		$	—		$	—		$	—		$	(.01	)
Net income	$	.63		$	.75		$	.67		$	.59		$	2.65		$	.56

Footnote:

⁽¹⁾ EPS totals may not add due to rounding.

Verizon Communications Inc. Exhibit 99.1
(cont’d)

Consolidated Statements of Income Before Special Items – Restated for Discontinued Operations

	(dollars in millions, except per share amounts)
	2005															2006
Unaudited	1Q05			2Q05			3Q05			4Q05			Annual			1Q06
Operating Revenues	$	17,533		$	18,000		$	18,486		$	18,771		$	72,790		$	22,058
Cost of services and sales		5,899			6,057			6,361			6,393			24,710			8,589
Selling, general & administrative expense		5,039			5,097			5,134			5,119			20,389			6,087
Depreciation and amortization expense		3,376			3,410			3,433			3,489			13,708			3,689
Total Operating Expenses		14,314			14,564			14,928			15,001			58,807			18,365
Operating Income		3,219			3,436			3,558			3,770			13,983			3,693
Operating income impact of operations sold		58			20			—			—			78			—
Equity in earnings of unconsolidated businesses		193			178			182			133			686			157
Income from other unconsolidated businesses		56			—			1			35			92			—
Other income and (expense), net		69			77			97			(8	)		235			103
Interest expense		(548	)		(528	)		(525	)		(528	)		(2,129	)		(610	)
Minority interest		(610	)		(711	)		(748	)		(939	)		(3,008	)		(868	)
Income Before Provision for Income Taxes and Discontinued Operations		2,437			2,472			2,565			2,463			9,937			2,475
Provision for income taxes		(751	)		(749	)		(794	)		(774	)		(3,068	)		(860	)
Income Before Discontinued Operations		1,686			1,723			1,771			1,689			6,869			1,615
Discontinued Operations
Income from operations		99			92			113			114			418			203
Provision for income taxes		(28	)		(48	)		(36	)		(24	)		(136	)		(65	)
Income on discontinued operations		71			44			77			90			282			138
Net Income	$	1,757		$	1,767		$	1,848		$	1,779		$	7,151		$	1,753
Effective Tax Rate		31	%		30	%		31	%		31	%		31	%		35	%
Basic Earnings per Common Share(1)
Income before discontinued operations	$	.61		$	.62		$	.64		$	.61		$	2.48		$	.55
Income on discontinued operations, net of tax	$	.03		$	.02		$	.03		$	.03		$	.10		$	.05
Net income	$	.63		$	.64		$	.67		$	.64		$	2.59		$	.60
Diluted Earnings per Common Share(1)
Income before discontinued operations	$	.60		$	.62		$	.63		$	.61		$	2.46		$	.55
Income on discontinued operations, net of tax	$	.03		$	.02		$	.03		$	.03		$	.10		$	.05
Net income	$	.63		$	.63		$	.66		$	.64		$	2.56		$	.60

Footnote:

⁽¹⁾ EPS totals may not add due to rounding.