Verizon Communications 8K Consolidated Statements of Income - Revised for Discontinued Operations Reflecting Spin-off of Idearc | VZ 4 Jan 07

Exhibit 99.1

Verizon Communications Inc.

Consolidated Statements of Income - Revised for Discontinued Operations Reflecting Spin-off of Idearc


																	(dollars in millions, except per share amounts)

	2004															2005															2006
Unaudited	1Q04			2Q04			3Q04			4Q04			Annual			1Q05			2Q05			3Q05			4Q05			Annual			1Q06			2Q06			3Q06
Operating Revenues	$	15,685		$	16,363		$	16,854		$	16,849		$	65,751		$	16,785		$	17,177		$	17,629		$	17,927		$	69,518		$	21,221		$	21,876		$	22,449

Operating Expenses
Cost of services and sales		5,214			5,334			5,728			5,756			22,032			5,799			5,931			6,224			6,246			24,200			8,441			8,642			8,853
Selling, general & administrative expense		5,217			4,593			4,700			4,836			19,346			4,806			4,828			4,955			5,063			19,652			5,938			6,410			6,453
Depreciation and amortization expense		3,328			3,336			3,382			3,457			13,503			3,352			3,387			3,410			3,466			13,615			3,667			3,607			3,606
Sales of businesses, net		—			—			—			—			—			—			(530	)		—			—			(530	)		—			—			—

Total Operating Expenses		13,759			13,263			13,810			14,049			54,881			13,957			13,616			14,589			14,775			56,937			18,046			18,659			18,912

Operating Income		1,926			3,100			3,044			2,800			10,870			2,828			3,561			3,040			3,152			12,581			3,175			3,217			3,537
Equity in earnings of unconsolidated businesses		199			211			224			1,056			1,690			193			178			182			133			686			157			171			288
Other income and (expense), net		45			8			1			28			82			124			76			89			22			311			103			60			100
Interest expense		(625	)		(583	)		(566	)		(562	)		(2,336	)		(548	)		(528	)		(525	)		(528	)		(2,129	)		(636	)		(590	)		(572	)
Minority interest		(462	)		(640	)		(669	)		(558	)		(2,329	)		(608	)		(709	)		(747	)		(937	)		(3,001	)		(866	)		(986	)		(1,088	)

Income Before Provision for Income Taxes, Discontinued Operations and Cumulative Effect of Accounting Change		1,083			2,096			2,034			2,764			7,977			1,989			2,578			2,039			1,842			8,448			1,933			1,872			2,265
Provision for income taxes		(219	)		(677	)		(598	)		(584	)		(2,078	)		(582	)		(774	)		(533	)		(532	)		(2,421	)		(651	)		(609	)		(720	)

Income Before Discontinued Operations and Cumulative Effect of Accounting Change		864			1,419			1,436			2,180			5,899			1,407			1,804			1,506			1,310			6,027			1,282			1,263			1,545
Income from discontinued operations, net of tax		335			378			360			859			1,932			350			309			363			348			1,370			392			348			377
Cumulative effect of accounting change, net of tax		—			—			—			—			—			—			—			—						—			(42	)		—			—

Net Income	$	1,199		$	1,797		$	1,796		$	3,039		$	7,831		$	1,757		$	2,113		$	1,869		$	1,658		$	7,397		$	1,632		$	1,611		$	1,922

Basic Earnings per Common Share⁽¹⁾
Income before discontinued operations and cumulative effect of accounting change	$	.31		$	.51		$	.52		$	.79		$	2.13		$	.51		$	.65		$	.54		$	.47		$	2.18		$	.44		$	.43		$	.53
Income from discontinued operations, net of tax	$	.12		$	.14		$	.13		$	.31		$	.70		$	.13		$	.11		$	.13		$	.13		$	.50		$	.13		$	.12		$	.13
Cumulative effect of accounting change, net of tax	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	(.01	)	$	—		$	—

Net income	$	.43		$	.65		$	.65		$	1.10		$	2.83		$	.63		$	.76		$	.68		$	.60		$	2.67		$	.56		$	.55		$	.66
Diluted Earnings per Common Share^{(1) (2)}
Income before discontinued operations and cumulative effect of accounting change	$	.31		$	.51		$	.51		$	.78		$	2.11		$	.50		$	.65		$	.54		$	.47		$	2.16		$	.44		$	.43		$	.53
Income from discontinued operations, net of tax	$	.12		$	.13		$	.13		$	.30		$	.68		$	.12		$	.11		$	.13		$	.12		$	.49		$	.13		$	.12		$	.13
Cumulative effect of accounting change, net of tax	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	(.01	)	$	—		$	—

Net income	$	.43		$	.64		$	.64		$	1.08		$	2.79		$	.63		$	.75		$	.67		$	.59		$	2.65		$	.56		$	.55		$	.66

Weighted average number of common shares (in millions) - Basic		2,770			2,770			2,769			2,770			2,770			2,769			2,766			2,765			2,764			2,766			2,915			2,910			2,907
Weighted average number of common shares (in millions) - Diluted		2,847			2,834			2,820			2,823			2,831			2,821			2,818			2,817			2,816			2,817			2,963			2,949			2,923
Diluted Earnings per Common Share^{(1) (2)}
Income before discontinued operations and cumulative effect of accounting change	$	.31		$	.51		$	.51		$	.78		$	2.11		$	.50		$	.65		$	.54		$	.47		$	2.16		$	.44		$	.43		$	.53

Footnote:

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

(2)

Diluted Earnings per Share includes (i) income related to share dilution (exchangeable equity interests and zero coupon convertible debt) of $15 million, $12 million and $4 million for the first, second and third quarters of 2006, respectively; $14 million, $14 million, $15 million and $17 million for the first, second, third and fourth quarters of 2005, respectively; $22 million, $18 million, $14 million and $14 million for the first, second, third and fourth quarters of 2004; and (ii) the dilutive effect of shares issuable under our stock-based compensation plans, exchangeable equity interests and zero coupon convertible debt, which represent the only potential dilution. The zero coupon debt was retired on May 15, 2006. The exchangeable equity interest was converted on August 15, 2006 by issuing 29.5 million Verizon shares.

Exhibit 99.1 (cont’d)

Verizon Communications Inc.

Consolidated Statements of Income Before Special Items - Revised for Discontinued Operations Reflecting Spin-off of Idearc


																	(dollars in millions, except per share amounts)

	2004															2005															2006
Unaudited	1Q04			2Q04			3Q04			4Q04			Annual			1Q05			2Q05			3Q05			4Q05			Annual			1Q06			2Q06			3Q06
Operating Revenues	$	15,553		$	16,233		$	16,721		$	16,715		$	65,222		$	16,652		$	17,130		$	17,629		$	17,927		$	69,338		$	21,221		$	21,876		$	22,449

Operating Expenses
Cost of services and sales		5,166			5,296			5,676			5,705			21,843			5,747			5,912			6,224			6,246			24,129			8,441			8,642			8,847
Selling, general & administrative expense		4,465			4,613			4,626			4,671			18,375			4,771			4,816			4,894			4,860			19,341			5,837			5,989			6,352
Depreciation and amortization expense		3,299			3,336			3,382			3,457			13,474			3,352			3,387			3,410			3,466			13,615			3,667			3,607			3,606

Total Operating Expenses		12,930			13,245			13,684			13,833			53,692			13,870			14,115			14,528			14,572			57,085			17,945			18,238			18,805

Operating Income		2,623			2,988			3,037			2,882			11,530			2,782			3,015			3,101			3,355			12,253			3,276			3,638			3,644
Operating income impact of operations sold		19			52			42			41			154			46			16			—			—			62			—			—			—
Equity in earnings of unconsolidated businesses		199			211			224			269			903			193			178			182			133			686			157			171			288
Other income and (expense), net		45			20			1			28			94			124			76			99			26			325			103			60			100
Interest expense		(625	)		(583	)		(566	)		(562	)		(2,336	)		(548	)		(528	)		(525	)		(528	)		(2,129	)		(610	)		(590	)		(572	)
Minority interest		(462	)		(640	)		(669	)		(558	)		(2,329	)		(608	)		(709	)		(747	)		(937	)		(3,001	)		(866	)		(986	)		(1,088	)

Income Before Provision for Income Taxes and Discontinued Operations		1,799			2,048			2,069			2,100			8,016			1,989			2,048			2,110			2,049			8,196			2,060			2,293			2,372
Provision for income taxes		(513	)		(639	)		(612	)		(640	)		(2,404	)		(582	)		(590	)		(625	)		(618	)		(2,415	)		(699	)		(767	)		(760	)

Income Before Discontinued Operations		1,286			1,409			1,457			1,460			5,612			1,407			1,458			1,485			1,431			5,781			1,361			1,526			1,612
Income from discontinued operations, net of tax		343			378			359			343			1,423			350			309			363			348			1,370			392			348			374

Net Income	$	1,629		$	1,787		$	1,816		$	1,803		$	7,035		$	1,757		$	1,767		$	1,848		$	1,779		$	7,151		$	1,753		$	1,874		$	1,986

Basic Earnings per Common Share⁽¹⁾
Income before discontinued operations	$	.46		$	.51		$	.53		$	.53		$	2.03		$	.51		$	.53		$	.54		$	.52		$	2.09		$	.47		$	.52		$	.55
Income from discontinued operations, net of tax	$	.12		$	.14		$	.13		$	.12		$	.51		$	.13		$	.11		$	.13		$	.13		$	.50		$	.13		$	.12		$	.13

Net income	$	.59		$	.65		$	.66		$	.65		$	2.54		$	.63		$	.64		$	.67		$	.64		$	2.59		$	.60		$	.64		$	.68

Diluted Earnings per Common Share^{(1) (2}⁾
Income before discontinued operations	$	.46		$	.50		$	.52		$	.52		$	2.01		$	.50		$	.52		$	.53		$	.51		$	2.07		$	.46		$	.52		$	.55
Income from discontinued operations, net of tax	$	.12		$	.13		$	.13		$	.12		$	.50		$	.12		$	.11		$	.13		$	.12		$	.49		$	.13		$	.12		$	.13

Net income	$	.58		$	.64		$	.65		$	.64		$	2.51		$	.63		$	.63		$	.66		$	.64		$	2.56		$	.60		$	.64		$	.68

Weighted average number of common shares (in millions) - Basic		2,770			2,770			2,769			2,770			2,770			2,769			2,766			2,765			2,764			2,766			2,915			2,910			2,907
Weighted average number of common shares (in millions) - Diluted		2,847			2,834			2,820			2,823			2,831			2,821			2,818			2,817			2,816			2,817			2,963			2,949			2,923

Diluted Earnings per Common Share^{(1) (2}⁾
Income before discontinued operations	$	.46		$	.50		$	.52		$	.52		$	2.01		$	.50		$	.52		$	.53		$	.51		$	2.07		$	.46		$	.52		$	.55

Footnote:

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

(2)

Verizon Communications (VZ) 8-KConsolidated Statements of Income - Revised for Discontinued Operations Reflecting Spin-off of Idearc