Exhibit 99.1
VERIZON COMMUNICATIONS INC.
HISTORICAL FINANCIAL INFORMATION
As of December 31, 2008
Notes:
- Reflects presentation requirements in accordance with Statement of Financial Accounting Standards (SFAS) No. 160,Noncontrolling Interest in Consolidated Financial Statements-an amendment of ARB No. 51, (SFAS No. 160), which was adopted on January 1, 2009.
- Reflects the reclassification of Wireline revenues into the following categories: Mass Markets, Global Enterprise, Global Wholesale and Other.
- On March 31, 2008, we completed the spin-off of our local exchange and related business assets in Maine, New Hampshire and Vermont which were included in the Wireline segment. Accordingly, prior period amounts have been reclassified to reflect the operating income impact of the spin-off.
- On March 30, 2007, we completed the disposition of our interest in Telecomunicaciones de Puerto Rico, Inc., which was included in the former International segment. The financial information of this business is included in discontinued operations. Accordingly, prior period amounts have been revised to reflect these changes.
|
Verizon Communications Inc. Condensed Consolidated Statements of Income |
(dollars in millions, except per share amounts) | ||||||
Unaudited | 2007 | 2008 | ||||
Operating Revenues | $ 93,469 | $ 97,354 | ||||
Operating Expenses | ||||||
Cost of services and sales | 37,547 | 39,007 | ||||
Selling, general & administrative expense | 25,967 | 26,898 | ||||
Depreciation and amortization expense | 14,377 | 14,565 | ||||
Total Operating Expenses | 77,891 | 80,470 | ||||
Operating Income | 15,578 | 16,884 | ||||
Equity in earnings of unconsolidated businesses | 585 | 567 | ||||
Other income and (expense), net | 211 | 282 | ||||
Interest expense | (1,829) | (1,819) | ||||
Income Before Provision for Income Taxes, Discontinued Operations, and Extraordinary Item | 14,545 | 15,914 | ||||
Provision for income taxes | (3,982) | (3,331) | ||||
Income Before Discontinued Operations and Extraordinary Item | 10,563 | 12,583 | ||||
Income from discontinued operations, net of tax(1) | 142 | - | ||||
Extraordinary item, net of tax | (131) | - | ||||
Net Income | $ 10,574 | $ 12,583 | ||||
Net Income Attributable To Noncontrolling Interest | 5,053 | 6,155 | ||||
Net Income Attributable To Verizon | 5,521 | 6,428 | ||||
Net Income | $ 10,574 | $ 12,583 | ||||
Basic Earnings per Share(2) | ||||||
Income before discontinued operations, and extraordinary item attributable to Verizon | $ 1.90 | $ 2.26 | ||||
Income from discontinued operations attributable to Verizon, net of tax | .05 | - | ||||
Extraordinary item attributable to Verizon, net of tax | (.05) | - | ||||
Net Income attributable to Verizon | $ 1.91 | $ 2.26 | ||||
Weighted average number of common shares (in millions) | 2,898 | 2,849 | ||||
Diluted Earnings per Share(2) (3) | ||||||
Income before discontinued operations, and extraordinary item attributable to Verizon | $ 1.90 | $ 2.26 | ||||
Income from discontinued operations attributable to Verizon, net of tax | .05 | - | ||||
Extraordinary item attributable to Verizon, net of tax | (.05) | - | ||||
Net Income attributable to Verizon | $ 1.90 | $ 2.26 | ||||
Weighted average number of common shares-assuming dilution (in millions) | 2,902 | 2,850 |
Footnotes:
(1) | Discontinued Operations includes Telecomunicaciones de Puerto Rico, Inc. The disposition of this non-strategic business was completed on March 30, 2007. Discontinued Operations in the first quarter of 2007 includes a gain on the sale of Telecomunicaciones de Puerto Rico, Inc (TELPRI) of $70 million, net of tax. |
(2) | EPS totals may not add due to rounding. |
(3) | Diluted Earnings per Share includes the dilutive effect of shares issuable under our stock-based compensation plans which represent the only potential dilution. |
Certain reclassifications of prior period amounts have been made, where appropriate, to reflect comparable operating results. |
Verizon Communications Inc. Condensed Consolidated Statements of Income - Quarter to Date |
(dollars in millions, except per share amounts) | ||||||||||||||||||||||||||||
2007 | 2008 | |||||||||||||||||||||||||||
Unaudited | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||||||||||
Operating Revenues | $ 22,584 | $ | 23,273 | $ | 23,772 | $ | 23,840 | $ | 23,833 | $ | 24,124 | $ | 24,752 | $ 24,645 | ||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||||
Cost of services and sales | 8,912 | 9,231 | 9,608 | 9,796 | 9,517 | 9,466 | 10,048 | 9,976 | ||||||||||||||||||||
Selling, general & administrative expense | 6,343 | 6,320 | 6,349 | 6,955 | 6,401 | 6,528 | 6,879 | 7,090 | ||||||||||||||||||||
Depreciation and amortization expense | 3,533 | 3,573 | 3,605 | 3,666 | 3,582 | 3,584 | 3,652 | 3,747 | ||||||||||||||||||||
Total Operating Expenses | 18,788 | 19,124 | 19,562 | 20,417 | 19,500 | 19,578 | 20,579 | 20,813 | ||||||||||||||||||||
Operating Income | 3,796 | 4,149 | 4,210 | 3,423 | 4,333 | 4,546 | 4,173 | 3,832 | ||||||||||||||||||||
Equity in earnings of unconsolidated businesses | 160 | 185 | 147 | 93 | 97 | 150 | 211 | 109 | ||||||||||||||||||||
Other income and (expense), net | 48 | 27 | 49 | 87 | 23 | 92 | 105 | 62 | ||||||||||||||||||||
Interest expense | (485) | (455 | ) | (450 | ) | (439 | ) | (459 | ) | (403 | ) | (440 | ) | (517) | ||||||||||||||
Income Before Provision for Income Taxes, Discontinued Operations, and Extraordinary Item | 3,519 | 3,906 | 3,956 | 3,164 | 3,994 | 4,385 | 4,049 | 3,486 | ||||||||||||||||||||
Provision for income taxes | (881) | (955 | ) | (1,387 | ) | (759 | ) | (945 | ) | (981 | ) | (850 | ) | (555) | ||||||||||||||
Income Before Discontinued Operations and Extraordinary Item | 2,638 | 2,951 | 2,569 | 2,405 | 3,049 | 3,404 | 3,199 | 2,931 | ||||||||||||||||||||
Income from discontinued operations, net of tax(1) | 142 | - | - | - | - | - | - | - | ||||||||||||||||||||
Extraordinary item, net of tax | (131) | - | - | - | - | - | - | - | ||||||||||||||||||||
Net Income | $ 2,649 | $ | 2,951 | $ | 2,569 | $ | 2,405 | $ | 3,049 | $ | 3,404 | $ | 3,199 | $ 2,931 | ||||||||||||||
Net Income Attributable To Noncontrolling Interest | 1,154 | 1,268 | 1,298 | 1,333 | 1,407 | 1,522 | 1,530 | 1,696 | ||||||||||||||||||||
Net Income Attributable To Verizon | 1,495 | 1,683 | 1,271 | 1,072 | 1,642 | 1,882 | 1,669 | 1,235 | ||||||||||||||||||||
Net Income | $ 2,649 | $ | 2,951 | $ | 2,569 | $ | 2,405 | $ | 3,049 | $ | 3,404 | $ | 3,199 | $ 2,931 | ||||||||||||||
Basic Earnings per Share(2) | ||||||||||||||||||||||||||||
Income before discontinued operations, and extraordinary item, attributable to Verizon | $ .51 | $ | .58 | $ | .44 | $ | .37 | $ | .57 | $ | .66 | $ | .59 | $ .43 | ||||||||||||||
Income from discontinued operations attributable to Verizon, net of tax | .05 | - | - | - | - | - | - | - | ||||||||||||||||||||
Extraordinary item attributable to Verizon, net of tax | (.05) | - | - | - | - | - | - | - | ||||||||||||||||||||
Net Income attributable to Verizon | $ .51 | $ | .58 | $ | .44 | $ | .37 | $ | .57 | $ | .66 | $ | .59 | $ .43 | ||||||||||||||
Weighted average number of common shares (in millions) | 2,909 | 2,903 | 2,896 | 2,886 | 2,863 | 2,850 | 2,844 | 2,841 | ||||||||||||||||||||
Diluted Earnings per Share(2) (3) | ||||||||||||||||||||||||||||
Income before discontinued operations, and extraordinary item, attributable to Verizon | $ .51 | $ | .58 | $ | .44 | $ | .37 | $ | .57 | $ | .66 | $ | .59 | $ .43 | ||||||||||||||
Income from discontinued operations attributable to Verizon, net of tax | .05 | - | - | - | - | - | - | - | ||||||||||||||||||||
Extraordinary item attributable to Verizon, net of tax | (.05) | - | - | - | - | - | - | - | ||||||||||||||||||||
Net Income attributable to Verizon | $ .51 | $ | .58 | $ | .44 | $ | .37 | $ | .57 | $ | .66 | $ | .59 | $ .43 | ||||||||||||||
Weighted average number of common shares-assuming dilution (in millions) | 2,911 | 2,907 | 2,900 | 2,891 | 2,865 | 2,851 | 2,845 | 2,841 |
Footnotes:
(1) | Discontinued Operations includes Telecomunicaciones de Puerto Rico, Inc. The disposition of this non-strategic business was completed on March 30, 2007. Discontinued Operations in the first quarter of 2007 includes a gain on the sale of Telecomunicaciones de Puerto Rico, Inc (TELPRI) of $70 million, net of tax. |
(2) | EPS totals may not add due to rounding. |
(3) | Diluted Earnings per Share includes the dilutive effect of shares issuable under our stock-based compensation plans which represent the only potential dilution. |
Certain reclassifications of prior period amounts have been made, where appropriate, to reflect comparable operating results. |
Verizon Communications Inc. |
Condensed Consolidated Statements of Income – Year to Date |
(dollars in millions, except per share amounts) | ||||||||||||||||||||||||||||
2007 | 2008 | |||||||||||||||||||||||||||
Unaudited | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||||||||||
Operating Revenues | $ 22,584 | $ | 45,857 | $ | 69,629 | $ | 93,469 | $ | 23,833 | $ | 47,957 | $ | 72,709 | $ 97,354 | ||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||||
Cost of services and sales | 8,912 | 18,143 | 27,751 | 37,547 | 9,517 | 18,983 | 29,031 | 39,007 | ||||||||||||||||||||
Selling, general & administrative expense | 6,343 | 12,663 | 19,012 | 25,967 | 6,401 | 12,929 | 19,808 | 26,898 | ||||||||||||||||||||
Depreciation and amortization expense | 3,533 | 7,106 | 10,711 | 14,377 | 3,582 | 7,166 | 10,818 | 14,565 | ||||||||||||||||||||
Total Operating Expenses | 18,788 | 37,912 | 57,474 | 77,891 | 19,500 | 39,078 | 59,657 | 80,470 | ||||||||||||||||||||
Operating Income | 3,796 | 7,945 | 12,155 | 15,578 | 4,333 | 8,879 | 13,052 | 16,884 | ||||||||||||||||||||
Equity in earnings of unconsolidated businesses | 160 | 345 | 492 | 585 | 97 | 247 | 458 | 567 | ||||||||||||||||||||
Other income and (expense), net | 48 | 75 | 124 | 211 | 23 | 115 | 220 | 282 | ||||||||||||||||||||
Interest expense | (485) | (940 | ) | (1,390 | ) | (1,829 | ) | (459 | ) | (862 | ) | (1,302 | ) | (1,819) | ||||||||||||||
Income Before Provision for Income Taxes, Discontinued Operations, and Extraordinary Item | 3,519 | 7,425 | 11,381 | 14,545 | 3,994 | 8,379 | 12,428 | 15,914 | ||||||||||||||||||||
Provision for income taxes | (881) | (1,836 | ) | (3,223 | ) | (3,982 | ) | (945 | ) | (1,926 | ) | (2,776 | ) | (3,331) | ||||||||||||||
Income Before Discontinued Operations and Extraordinary Item | 2,638 | 5,589 | 8,158 | 10,563 | 3,049 | 6,453 | 9,652 | 12,583 | ||||||||||||||||||||
Income from discontinued operations, net of tax (1) | 142 | 142 | 142 | 142 | - | - | - | - | ||||||||||||||||||||
Extraordinary item, net of tax | (131) | (131 | ) | (131 | ) | (131 | ) | - | - | - | - | |||||||||||||||||
Net Income | $ 2,649 | $ | 5,600 | $ | 8,169 | $ | 10,574 | $ | 3,049 | $ | 6,453 | $ | 9,652 | $ 12,583 | ||||||||||||||
Net Income Attributable To Noncontrolling Interest | 1,154 | 2,422 | 3,720 | 5,053 | 1,407 | 2,929 | 4,459 | 6,155 | ||||||||||||||||||||
Net Income Attributable To Verizon | 1,495 | 3,178 | 4,449 | 5,521 | 1,642 | 3,524 | 5,193 | 6,428 | ||||||||||||||||||||
Net Income | $ 2,649 | $ | 5,600 | $ | 8,169 | $ | 10,574 | $ | 3,049 | $ | 6,453 | $ | 9,652 | $ 12,583 | ||||||||||||||
Basic Earnings (Loss) per Share(2) | ||||||||||||||||||||||||||||
Income before discontinued operations, and extraordinary item attributable to Verizon | $ .51 | $ | 1.09 | $ | 1.53 | $ | 1.90 | $ | .57 | $ | 1.23 | $ | 1.82 | $ 2.26 | ||||||||||||||
Income from discontinued operations attributable to Verizon, net of tax | .05 | .05 | .05 | .05 | - | - | - | - | ||||||||||||||||||||
Extraordinary item attributable to Verizon, net of tax | (.05) | (.05 | ) | (.05 | ) | (.05 | ) | - | - | - | - | |||||||||||||||||
Net Income attributable to Verizon | $ .51 | $ | 1.09 | $ | 1.53 | $ | 1.91 | $ | .57 | $ | 1.23 | $ | 1.82 | $ 2.26 | ||||||||||||||
Weighted average number of common shares (in millions) | 2,909 | 2,906 | 2,902 | 2,898 | 2,863 | 2,856 | 2,852 | 2,849 | ||||||||||||||||||||
Diluted Earnings (Loss) per Share(2) (3) | ||||||||||||||||||||||||||||
Income before discontinued operations, and extraordinary item attributable to Verizon | $ .51 | $ | 1.09 | $ | 1.53 | $ | 1.90 | $ | .57 | $ | 1.23 | $ | 1.82 | $ 2.26 | ||||||||||||||
Income from discontinued operations attributable to Verizon, net of tax | .05 | .05 | .05 | .05 | - | - | - | - | ||||||||||||||||||||
Extraordinary item attributable to Verizon, net of tax | (.05) | (.05 | ) | (.05 | ) | (.05 | ) | - | - | - | - | |||||||||||||||||
Net Income attributable to Verizon | $ .51 | $ | 1.09 | $ | 1.53 | $ | 1.90 | $ | .57 | $ | 1.23 | $ | 1.82 | $ 2.26 | ||||||||||||||
Weighted average number of common shares-assuming dilution (in millions) | 2,911 | 2,909 | 2,906 | 2,902 | 2,865 | 2,858 | 2,854 | 2,850 |
Footnotes:
(1) | Discontinued Operations includes Telecomunicaciones de Puerto Rico, Inc. The disposition of this non-strategic business was completed on March 30, 2007. Discontinued Operations in the first quarter of 2007 includes a gain on the sale of Telecomunicaciones de Puerto Rico, Inc (TELPRI) of $70 million, net of tax. |
(2) | EPS totals may not add due to rounding. |
(3) | Diluted Earnings per Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represent the only potential dilution. |
Certain reclassifications of prior period amounts have been made, where appropriate, to reflect comparable operating results. |
Verizon Communications Inc. Condensed Consolidated Statements of Income Before Special Items |
(dollars in millions, except per share amounts) | ||||||
Unaudited | 2007 | 2008 | ||||
Operating Revenues(1) | ||||||
Domestic Wireless | $ 43,882 | $ 49,332 | ||||
Wireline | 49,129 | 48,214 | ||||
Other | (636) | (450) | ||||
Total Operating Revenues | 92,375 | 97,096 | ||||
Operating Expenses(1) | ||||||
Cost of services and sales | 37,090 | 38,801 | ||||
Selling, general & administrative expense | 24,620 | 25,723 | ||||
Depreciation and amortization expense | 14,120 | 14,505 | ||||
Total Operating Expenses | 75,830 | 79,029 | ||||
Operating Income | 16,545 | 18,067 | ||||
Operating income impact of divested operations(1) | 182 | 44 | ||||
Equity in earnings of unconsolidated businesses | 585 | 567 | ||||
Other income and (expense), net | 211 | 330 | ||||
Interest expense | (1,829) | (1,819) | ||||
Income Before Provision for Income Taxes and Discontinued Operations | 15,694 | 17,189 | ||||
Provision for income taxes | (3,787) | (3,797) | ||||
Income Before Discontinued Operations | 11,907 | 13,392 | ||||
Income from discontinued operations, net of tax | 72 | - | ||||
Net Income Before Special Items | $ 11,979 | $ 13,392 | ||||
Net income Attributable To Noncontrolling Interest | 5,053 | 6,157 | ||||
Net Income Attributable To Verizon | 6,926 | 7,235 | ||||
Net Income Before Special Items | $ 11,979 | $ 13,392 | ||||
Basic Adjusted Earnings per Share(2) | ||||||
Income before discontinued operations attributable to Verizon | $ 2.37 | $ 2.54 | ||||
Income from discontinued operations attributable to Verizon, net of tax | .02 | - | ||||
Net income attributable to Verizon | $ 2.39 | $ 2.54 | ||||
Weighted average number of common shares (in millions) | 2,898 | 2,849 | ||||
Diluted Adjusted Earnings per Share(2) (3) | ||||||
Income before discontinued operations attributable to Verizon | $ 2.36 | $ 2.54 | ||||
Income from discontinued operations attributable to Verizon, net of tax | .02 | - | ||||
�� | ||||||
Net income attributable to Verizon | $ 2.39 | $ 2.54 | ||||
Weighted average number of common shares-assuming dilution (in millions) | 2,902 | 2,850 | ||||
Footnotes: | ||||||
(1) | Reclassifications of prior period amounts have been made, where appropriate, to reflect comparable operating results, including for the sale of other non-strategic assets of the wireline segment sold in the first quarter of 2007 and for the spinoff of the wireline segment’s non-strategic local exchange and related business assets in Maine, New Hampshire and Vermont in the first quarter of 2008. Reclassifications were determined using specific information where available and allocations where data is not maintained on a state-specific basis within the Company’s books and records as follows: | |||||
Revenues | $ 1,094 | $ 258 | ||||
Expenses | $ 912 | $ 214 | ||||
(2) |
EPS totals may not add due to rounding. | |||||
(3) | Diluted Earnings per Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represent the only potential dilution. |
Verizon Communications Inc. Condensed Consolidated Statements of Income Before Special Items - Quarter to Date |
(dollars in millions, except per share amounts) | ||||||||||||||||||||||||||||||
2007 | 2008 | |||||||||||||||||||||||||||||
Unaudited | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||||||||||||
Operating Revenues(1) | ||||||||||||||||||||||||||||||
Domestic Wireless | $ 10,307 | $ | 10,843 | $ | 11,289 | $ | 11,443 | $ | 11,669 | $ | 12,118 | $ | 12,699 | $ 12,846 | ||||||||||||||||
Wireline | 12,178 | 12,330 | 12,372 | 12,249 | 12,026 | 12,113 | 12,158 | 11,917 | ||||||||||||||||||||||
Other | (174) | (173 | ) | (168 | ) | (121 | ) | (120 | ) | (107 | ) | (105 | ) | (118) | ||||||||||||||||
Total Operating Revenues | 22,311 | 23,000 | 23,493 | 23,571 | 23,575 | 24,124 | 24,752 | 24,645 | ||||||||||||||||||||||
Operating Expenses(1) | ||||||||||||||||||||||||||||||
Cost of services and sales | 8,805 | 9,120 | 9,489 | 9,676 | 9,395 | 9,458 | 10,043 | 9,905 | ||||||||||||||||||||||
Selling, general & administrative expense | 6,179 | 6,241 | 6,201 | 5,999 | 6,237 | 6,500 | 6,569 | 6,417 | ||||||||||||||||||||||
Depreciation and amortization expense | 3,469 | 3,509 | 3,540 | 3,602 | 3,522 | 3,584 | 3,652 | 3,747 | ||||||||||||||||||||||
Total Operating Expenses | 18,453 | 18,870 | 19,230 | 19,277 | 19,154 | 19,542 | 20,264 | 20,069 | ||||||||||||||||||||||
Operating Income | 3,858 | 4,130 | 4,263 | 4,294 | 4,421 | 4,582 | 4,488 | 4,576 | ||||||||||||||||||||||
Operating income impact of divested operations(1) | 52 | 46 | 51 | 33 | 44 | - | - | - | ||||||||||||||||||||||
Equity in earnings of unconsolidated businesses | 160 | 185 | 147 | 93 | 97 | 150 | 211 | 109 | ||||||||||||||||||||||
Other income and (expense), net | 48 | 27 | 49 | 87 | 23 | 92 | 105 | 110 | ||||||||||||||||||||||
Interest expense | (485) | (455 | ) | (450 | ) | (439 | ) | (459 | ) | (403 | ) | (440 | ) | (517) | ||||||||||||||||
Income Before Provision for Income Taxes and Discontinued Operations | 3,633 | 3,933 | 4,060 | 4,068 | 4,126 | 4,421 | 4,364 | 4,278 | ||||||||||||||||||||||
Provision for income taxes | (921) | (965 | ) | (948 | ) | (953 | ) | (978 | ) | (995 | ) | (969 | ) | (855) | ||||||||||||||||
Income Before Discontinued Operations | 2,712 | 2,968 | 3,112 | 3,115 | 3,148 | 3,426 | 3,395 | 3,423 | ||||||||||||||||||||||
Income from discontinued operations, net of tax | 72 | - | - | - | - | - | - | - | ||||||||||||||||||||||
Net Income Before Special Items | $ 2,784 | $ | 2,968 | $ | 3,112 | $ | 3,115 | $ | 3,148 | $ | 3,426 | $ | 3,395 | $ 3,423 | ||||||||||||||||
Net income Attributable To Noncontrolling Interest | 1,154 | 1,268 | 1,298 | 1,333 | 1,407 | 1,522 | 1,530 | 1,698 | ||||||||||||||||||||||
Net Income Attributable To Verizon | 1,630 | 1,700 | 1,814 | 1,782 | 1,741 | 1,904 | 1,865 | 1,725 | ||||||||||||||||||||||
Net Income Before Special Items | $ 2,784 | $ | 2,968 | $ | 3,112 | $ | 3,115 | $ | 3,148 | $ | 3,426 | $ | 3,395 | $ 3,423 | ||||||||||||||||
Basic Adjusted Earnings per Share(2) | ||||||||||||||||||||||||||||||
Income before discontinued operations attributable to Verizon | $ .54 | $ | .59 | $ | .63 | $ | .62 | $ | .61 | $ | .67 | $ | .66 | $ .61 | ||||||||||||||||
Income from discontinued operations attributable to Verizon, net of tax | .02 | - | - | - | - | - | - | - | ||||||||||||||||||||||
Net income attributable to Verizon | $ .56 | $ | .59 | $ | .63 | $ | .62 | $ | .61 | $ | .67 | $ | .66 | $ .61 | ||||||||||||||||
Weighted average number of common shares (in millions) | 2,909 | 2,903 | 2,896 | 2,886 | 2,863 | 2,850 | 2,844 | 2,841 | ||||||||||||||||||||||
Diluted Adjusted Earnings per Share(2) (3) | ||||||||||||||||||||||||||||||
Income before discontinued operations attributable to Verizon | $ .54 | $ | .58 | $ | .63 | $ | .62 | $ | .61 | $ | .67 | $ | .66 | �� | $ .61 | |||||||||||||||
Income from discontinued operations attributable to Verizon, net of tax | .02 | - | - | - | - | - | - | - | ||||||||||||||||||||||
Net income attributable to Verizon | $ .56 | $ | .58 | $ | .63 | $ | .62 | $ | .61 | $ | .67 | $ | .66 | $ .61 | ||||||||||||||||
Weighted average number of common shares-assuming dilution (in millions) | 2,911 | 2,907 | 2,900 | 2,891 | 2,865 | 2,851 | 2,845 | 2,841 | ||||||||||||||||||||||
Footnotes: | ||||||||||||||||||||||||||||||
(1) | Reclassifications of prior period amounts have been made, where appropriate, to reflect comparable operating results, including for the sale of other non-strategic assets of the wireline segment sold in the first quarter of 2007 and for the spinoff of the wireline segment’s non-strategic local exchange and related business assets in Maine, New Hampshire and Vermont in the first quarter of 2008. Reclassifications were determined using specific information where available and allocations where data is not maintained on a state-specific basis within the Company’s books and records as follows:
| |||||||||||||||||||||||||||||
Revenues | $ 273 | $ | 273 | $ | 279 | $ | 269 | $ | 258 | $ | - | $ | - | $ - | ||||||||||||||||
Expenses | $ 221 | $ | 227 | $ | 228 | $ | 236 | $ | 214 | $ | - | $ | - | $ - | ||||||||||||||||
(2) |
EPS totals may not add due to rounding. | |||||||||||||||||||||||||||||
(3) | Diluted Earnings per Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represent the only potential dilution. |
Verizon Communications Inc. Condensed Consolidated Statements of Income Before Special Items - Year to Date | ||||||||||||||||||||||||||||||
(dollars in millions, except per share amounts) | ||||||||||||||||||||||||||||||
2007 | 2008 | |||||||||||||||||||||||||||||
Unaudited | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||||||||||||
Operating Revenues(1) | ||||||||||||||||||||||||||||||
Domestic Wireless | $ 10,307 | $ | 21,150 | $ | 32,439 | $ | 43,882 | $ | 11,669 | $ | 23,787 | $ | 36,486 | $ | 49,332 | |||||||||||||||
Wireline | 12,178 | 24,508 | 36,880 | 49,129 | 12,026 | 24,139 | 36,297 | 48,214 | ||||||||||||||||||||||
Other | (174) | (347 | ) | (515 | ) | (636) | (120 | ) | (227 | ) | (332 | ) | (450) | |||||||||||||||||
Total Operating Revenues | 22,311 | 45,311 | 68,804 | 92,375 | 23,575 | 47,699 | 72,451 | 97,096 | ||||||||||||||||||||||
Operating Expenses(1) | ||||||||||||||||||||||||||||||
Cost of services and sales | 8,805 | 17,925 | 27,414 | 37,090 | 9,395 | 18,853 | 28,896 | 38,801 | ||||||||||||||||||||||
Selling, general & administrative expense | 6,179 | 12,420 | 18,621 | 24,620 | 6,237 | 12,737 | 19,306 | 25,723 | ||||||||||||||||||||||
Depreciation and amortization expense | 3,469 | 6,978 | 10,518 | 14,120 | 3,522 | 7,106 | 10,758 | 14,505 | ||||||||||||||||||||||
Total Operating Expenses | 18,453 | 37,323 | 56,553 | 75,830 | 19,154 | 38,696 | 58,960 | 79,029 | ||||||||||||||||||||||
Operating Income | 3,858 | 7,988 | 12,251 | 16,545 | 4,421 | 9,003 | 13,491 | 18,067 | ||||||||||||||||||||||
Operating income impact of divested operations (1) | 52 | 98 | 149 | 182 | 44 | 44 | 44 | 44 | ||||||||||||||||||||||
Equity in earnings of unconsolidated businesses | 160 | 345 | 492 | 585 | 97 | 247 | 458 | 567 | ||||||||||||||||||||||
Other income and (expense), net | 48 | 75 | 124 | 211 | 23 | 115 | 220 | 330 | ||||||||||||||||||||||
Interest expense | (485) | (940 | ) | (1,390 | ) | (1,829) | (459 | ) | (862 | ) | (1,302 | ) | (1,819) | |||||||||||||||||
Income Before Provision for Income Taxes and Discontinued Operations | 3,633 | 7,566 | 11,626 | 15,694 | 4,126 | 8,547 | 12,911 | 17,189 | ||||||||||||||||||||||
Provision for income taxes | (921) | (1,886 | ) | (2,834 | ) | (3,787) | (978 | ) | (1,973 | ) | (2,942 | ) | (3,797) | |||||||||||||||||
Income Before Discontinued Operations | 2,712 | 5,680 | 8,792 | 11,907 | 3,148 | 6,574 | 9,969 | 13,392 | ||||||||||||||||||||||
Income from discontinued operations, net of tax | 72 | 72 | 72 | 72 | - | - | - | - | ||||||||||||||||||||||
Net Income Before Special Items | $ 2,784 | $ | 5,752 | $ | 8,864 | $ | 11,979 | $ | 3,148 | $ | 6,574 | $ | 9,969 | $ | 13,392 | |||||||||||||||
Net income Attributable To Noncontrolling Interest | 1,154 | 2,422 | 3,720 | 5,053 | 1,407 | 2,929 | 4,459 | 6,157 | ||||||||||||||||||||||
Net Income Attributable To Verizon | 1,630 | 3,330 | 5,144 | 6,926 | 1,741 | 3,645 | 5,510 | 7,235 | ||||||||||||||||||||||
Net Income Before Special Items | $ 2,784 | $ | 5,752 | $ | 8,864 | $ | 11,979 | $ | 3,148 | $ | 6,574 | $ | 9,969 | $ | 13,392 | |||||||||||||||
Basic Adjusted Earnings per Share(2) | ||||||||||||||||||||||||||||||
Income before discontinued operations attributable to Verizon | $ .54 | $ | 1.12 | $ | 1.75 | $ | 2.37 | $ | .61 | $ | 1.28 | $ | 1.93 | $ | 2.54 | |||||||||||||||
Income from discontinued operations attributable to Verizon, net of tax | .02 | .02 | .02 | .02 | - | - | - | - | ||||||||||||||||||||||
Net income attributable to Verizon | $ .56 | $ | 1.15 | $ | 1.77 | $ | 2.39 | $ | .61 | $ | 1.28 | $ | 1.93 | $ | 2.54 | |||||||||||||||
Weighted average number of common shares (in millions) | 2,909 | 2,906 | 2,902 | 2,898 | 2,863 | 2,856 | 2,852 | 2,849 | ||||||||||||||||||||||
Diluted Adjusted Earnings per Share(2) (3) | ||||||||||||||||||||||||||||||
Income before discontinued operations attributable to Verizon | $ .54 | $ | 1.12 | $ | 1.75 | $ | 2.36 | $ | .61 | $ | 1.28 | $ | 1.93 | $ | 2.54 | |||||||||||||||
Income from discontinued operations attributable to Verizon, net of tax | .02 | .02 | .02 | .02 | - | - | - | - | ||||||||||||||||||||||
Net income attributable to Verizon | $ .56 | $ | 1.14 | $ | 1.77 | $ | 2.39 | $ | .61 | $ | 1.28 | $ | 1.93 | $ | 2.54 | |||||||||||||||
Weighted average number of common shares-assuming dilution (in millions) | 2,911 | 2,909 | 2,906 | 2,902 | 2,865 | 2,858 | 2,854 | 2,850 | ||||||||||||||||||||||
Footnotes: | ||||||||||||||||||||||||||||||
(1) | Reclassifications of prior period amounts have been made, where appropriate, to reflect comparable operating results, including for the sale of other non-strategic assets of the wireline segment sold in the first quarter of 2007 and for the spinoff of the wireline segment’s non-strategic local exchange and related business assets in Maine, New Hampshire and Vermont in the first quarter of 2008. Reclassifications were determined using specific information where available and allocations where data is not maintained on a state-specific basis within the Company’s books and records as follows: | |||||||||||||||||||||||||||||
Revenues | $ 273 | $ | 546 | $ | 825 | $ | 1,094 | $ | 258 | $ | 258 | $ | 258 | $ | 258 | |||||||||||||||
Expenses | $ 221 | $ | 448 | $ | 676 | $ | 912 | $ | 214 | $ | 214 | $ | 214 | $ | 214 | |||||||||||||||
(3) | EPS totals may not add due to rounding. | |||||||||||||||||||||||||||||
(4) | Diluted Earnings per Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represent the only potential dilution. |
Verizon Communications Inc. Selected Financial and Operating Statistics |
(dollars in millions, except per share amounts) | ||||||||||||||||||||||
As of | 2007 | 2008 | ||||||||||||||||||||
Unaudited | 3/31/2007 | 6/30/2007 | 9/30/2007 | 12/31/2007 | 3/31/2008 | 6/30/2008 | 9/30/2008 | 12/31/2008 | ||||||||||||||
Debt to debt and Verizon’s shareowners’ equity ratio end of period(1) | 41.5% | 39.5% | 38.8% | 38.1% | 41.6% | 45.9% | 46.8% | 55.5% | ||||||||||||||
Book value per common share(1) | $ 16.80 | $ | 17.17 | $ | 17.19 | $ | 17.58 | $ | 17.64 | $ | 17.87 | $ | 17.94 | $ 14.68 | ||||||||
Common shares outstanding (in millions) End of period | 2,903 | 2,903 | 2,890 | 2,877 | 2,851 | 2,848 | 2,840 | 2,841 | ||||||||||||||
Total employees(2) | 236,073 | 235,879 | 235,252 | 232,417 | 230,228 | 228,633 | 228,315 | 223,880 | ||||||||||||||
Quarter to Date | 2007 | 2008 | ||||||||||||||||||||
Unaudited | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||||
Capital expenditures (including capitalized software) | ||||||||||||||||||||||
Domestic Wireless | $ 1,721 | $ | 1,667 | $ | 1,515 | $ | 1,600 | $ | 1,722 | $ | 1,528 | $ | 1,473 | $ 1,787 | ||||||||
Wireline | 2,439 | 2,681 | 2,753 | 3,083 | 2,379 | 2,456 | 2,483 | 2,479 | ||||||||||||||
Other | 3 | 4 | 9 | 63 | 119 | 193 | 222 | 397 | ||||||||||||||
Total | $ 4,163 | $ | 4,352 | $ | 4,277 | $ | 4,746 | $ | 4,220 | $ | 4,177 | $ | 4,178 | $ 4,663 | ||||||||
Cash dividends declared per common share | $ .405 | $ | .405 | $ | .430 | $ | .430 | $ | .430 | $ | .430 | $ | .460 | $ .460 | ||||||||
Year to Date | 2007 | 2008 | ||||||||||||||||||||
Unaudited | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||||
Capital expenditures (including capitalized software) | ||||||||||||||||||||||
Domestic Wireless | $ 1,721 | $ | 3,388 | $ | 4,903 | $ | 6,503 | $ | 1,722 | $ | 3,250 | $ | 4,723 | $ 6,510 | ||||||||
Wireline | 2,439 | 5,120 | 7,873 | 10,956 | 2,379 | 4,835 | 7,318 | 9,797 | ||||||||||||||
Other | 3 | 7 | 16 | 79 | 119 | 312 | 534 | 931 | ||||||||||||||
Total | $ 4,163 | $ | 8,515 | $ | 12,792 | $ | 17,538 | $ | 4,220 | $ | 8,397 | $ | 12,575 | $ 17,238 | ||||||||
Cash dividends declared per common share | $ .405 | $ | .810 | $ | 1.240 | $ | 1.670 | $ | .430 | $ | .860 | $ | 1.320 | $ 1.780 |
Footnote:
(1) | Calculations are based on the equity attributable to Verizon, which excludes non-controlling interests. |
(2) | Prior periods have been reclassified to reflect comparable amounts. |
Verizon Communications Inc. Condensed Consolidated Balance Sheets |
(dollars in millions)
Unaudited | 12/31/07 | 12/31/08 | |||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | $ 1,153 | $ | 9,782 | ||
Short-term investments | 2,244 | 509 | |||
Accounts receivable, net | 11,736 | 11,703 | |||
Inventories | 1,729 | 2,092 | |||
Prepaid expenses and other | 1,836 | 1,989 | |||
Total current assets | 18,698 | 26,075 | |||
Plant, property and equipment | 213,994 | 215,605 | |||
Less accumulated depreciation | 128,700 | 129,059 | |||
85,294 | 86,546 | ||||
Investments in unconsolidated businesses | 3,372 | 3,393 | |||
Wireless licenses | 50,796 | 61,974 | |||
Goodwill | 5,245 | 6,035 | |||
Other intangible assets, net | 4,988 | 5,199 | |||
Other investments | - | 4,781 | |||
Other assets | 18,566 | 8,349 | |||
Total Assets | $ 186,959 | $ | 202,352 | ||
Liabilities and Equity | |||||
Current liabilities | |||||
Debt maturing within one year | $ 2,954 | $ | 4,993 | ||
Accounts payable and accrued liabilities | 14,462 | 13,814 | |||
Other | 7,325 | 7,099 | |||
Total current liabilities | 24,741 | 25,906 | |||
Long-term debt | 28,203 | 46,959 | |||
Employee benefit obligations | 29,960 | 32,512 | |||
Deferred income taxes | 14,784 | 11,769 | |||
Other liabilities | 6,402 | 6,301 | |||
Equity | |||||
Common stock | 297 | 297 | |||
Contributed capital | 40,316 | 40,291 | |||
Reinvested earnings | 17,884 | 19,250 | |||
Accumulated other comprehensive loss | (4,506) | (13,372) | |||
Common stock in treasury, at cost | (3,489) | (4,839) | |||
Deferred compensation - employee stock ownership plans and other | 79 | 79 | |||
Noncontrolling interest | 32,288 | 37,199 | |||
Total equity | 82,869 | 78,905 | |||
Total Liabilities and Equity | $ 186,959 | $ | 202,352 | ||
Verizon Communications Inc. Condensed Consolidated Balance Sheets |
(dollars in millions)
Unaudited | 03/31/07 | 06/30/07 | 09/30/07 | 12/31/07 | 03/31/08 | 06/30/08 | 09/30/08 | 12/31/08 | |||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Current assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ 1,301 | $ | 656 | $ | 715 | $ | 1,153 | $ | 5,485 | $ | 582 | $ | 696 | $ | 9,782 | ||||||||||||||
Short-term investments | 2,149 | 1,700 | 1,194 | 2,244 | 1,957 | 1,492 | 978 | 509 | |||||||||||||||||||||
Accounts receivable, net | 10,177 | 10,689 | 11,509 | 11,736 | 11,048 | 11,584 | 11,724 | 11,703 | |||||||||||||||||||||
Inventories | 1,780 | 1,793 | 1,786 | 1,729 | 1,672 | 2,216 | 2,485 | 2,092 | |||||||||||||||||||||
Prepaid expenses and other | 2,487 | 2,190 | 1,833 | 1,836 | 2,286 | 2,122 | 3,248 | 1,989 | |||||||||||||||||||||
Total current assets | 17,894 | 17,028 | 17,037 | 18,698 | 22,448 | 17,996 | 19,131 | 26,075 | |||||||||||||||||||||
Plant, property and equipment | 206,585 | 209,291 | 211,152 | 213,994 | 211,834 | 212,605 | 214,376 | 215,605 | |||||||||||||||||||||
Less accumulated depreciation | 123,607 | 125,562 | 126,823 | 128,700 | 127,350 | 127,450 | 128,687 | 129,059 | |||||||||||||||||||||
82,978 | 83,729 | 84,329 | 85,294 | 84,484 | 85,155 | 85,689 | 86,546 | ||||||||||||||||||||||
Investments in unconsolidated businesses | 4,898 | 5,071 | 5,453 | 3,372 | 3,653 | 3,175 | 3,198 | 3,393 | |||||||||||||||||||||
Wireless licenses | 50,566 | 50,670 | 50,755 | 50,796 | 50,833 | 60,423 | 61,595 | 61,974 | |||||||||||||||||||||
Goodwill | 5,247 | 5,149 | 5,442 | 5,245 | 5,233 | 5,218 | 6,124 | 6,035 | |||||||||||||||||||||
Other intangible assets, net | 5,195 | 5,091 | 5,078 | 4,988 | 4,867 | 4,974 | 5,093 | 5,199 | |||||||||||||||||||||
Other investments | - | - | - | - | - | 4,761 | 4,759 | 4,781 | |||||||||||||||||||||
Other assets | 17,506 | 18,022 | 17,525 | 18,566 | 19,775 | 18,944 | 19,272 | 8,349 | |||||||||||||||||||||
Total Assets | $ 184,284 | $ | 184,760 | $ | 185,619 | $ | 186,959 | $ | 191,293 | $ | 200,646 | $ | 204,861 | $ | 202,352 | ||||||||||||||
Liabilities and Equity | |||||||||||||||||||||||||||||
Current liabilities | |||||||||||||||||||||||||||||
Debt maturing within one year | $ 6,604 | $ | 3,152 | $ | 2,064 | $ | 2,954 | $ | 3,712 | $ | 9,331 | $ | 7,297 | $ | 4,993 | ||||||||||||||
Accounts payable and accrued liabilities | 13,309 | 13,542 | 14,244 | 14,462 | 13,661 | 13,299 | 13,715 | 13,814 | |||||||||||||||||||||
Other | 7,993 | 7,758 | 7,850 | 7,325 | 7,371 | 7,270 | 7,263 | 7,099 | |||||||||||||||||||||
Total current liabilities | 27,906 | 24,452 | 24,158 | 24,741 | 24,744 | 29,900 | 28,275 | 25,906 | |||||||||||||||||||||
Long-term debt | 28,073 | 29,374 | 29,383 | 28,203 | 32,134 | 33,778 | 37,478 | 46,959 | |||||||||||||||||||||
Employee benefit obligations | 29,743 | 30,326 | 30,592 | 29,960 | 29,227 | 29,246 | 28,800 | 32,512 | |||||||||||||||||||||
Deferred income taxes | 13,518 | 13,710 | 14,118 | 14,784 | 15,468 | 16,346 | 17,409 | 11,769 | |||||||||||||||||||||
Other liabilities | 7,025 | 6,866 | 6,445 | 6,402 | 6,041 | 5,856 | 6,053 | 6,301 | |||||||||||||||||||||
Equity | |||||||||||||||||||||||||||||
Common stock | 297 | 297 | 297 | 297 | 297 | 297 | 297 | 297 | |||||||||||||||||||||
Contributed capital | 40,122 | 40,217 | 40,289 | 40,316 | 40,290 | 40,291 | 40,290 | 40,291 | |||||||||||||||||||||
Reinvested earnings | 17,485 | 18,020 | 18,049 | 17,884 | 18,301 | 18,958 | 19,322 | 19,250 | |||||||||||||||||||||
Accumulated other comprehensive loss | (7,136) | (6,532 | ) | (6,216 | ) | (4,506 | ) | (4,207 | ) | (4,150 | ) | (4,199 | ) | (13,372) | |||||||||||||||
Common stock in treasury, at cost | (2,185) | (2,284 | ) | (2,832 | ) | (3,489 | ) | (4,481 | ) | (4,591 | ) | (4,841 | ) | (4,839) | |||||||||||||||
Deferred compensation - employee stock ownership plans and other | 199 | 113 | 102 | 79 | 80 | 82 | 85 | 79 | |||||||||||||||||||||
Noncontrolling interest | 29,237 | 30,201 | 31,234 | 32,288 | 33,399 | 34,633 | 35,892 | 37,199 | |||||||||||||||||||||
Total equity | 78,019 | 80,032 | 80,923 | 82,869 | 83,679 | 85,520 | 86,846 | 78,905 | |||||||||||||||||||||
Total Liabilities and Equity | $ 184,284 | $ | 184,760 | $ | 185,619 | $ | 186,959 | $ | 191,293 | $ | 200,646 | $ | 204,861 | $ | 202,352 | ||||||||||||||
Verizon Communications Inc. Condensed Consolidated Statements of Cash Flows |
(dollars in millions)
Unaudited | 12 Mos. Ended 12/31/07 | 12 Mos. Ended 12/31/08 | |||
Cash Flows From Operating Activities | |||||
Net Income | $ 10,574 | $ | 12,583 | ||
Adjustments to reconcile net income to net cash provided by operating activities-continuing operations: | |||||
Depreciation and amortization expense | 14,377 | 14,565 | |||
Employee retirement benefits | 1,720 | 1,955 | |||
Deferred income taxes | 408 | 2,183 | |||
Provision for uncollectible accounts | 1,047 | 1,085 | |||
Equity in earnings of unconsolidated businesses, net of dividends received | 1,986 | 212 | |||
Extraordinary item, net of tax | 131 | - | |||
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses | (2,893) | (3,033) | |||
Other, net | (1,041) | (2,930) | |||
Net cash provided by operating activities - continuing operations | 26,309 | 26,620 | |||
Net cash provided by (used in) operating activities - discontinued operations | (570) | - | |||
Net cash provided by operating activities | 25,739 | 26,620 | |||
Cash Flows From Investing Activities | |||||
Capital expenditures (including capitalized software) | (17,538) | (17,238) | |||
Acquisitions of licenses, investments and business, net of cash acquired | (763) | (15,904) | |||
Net change in short-term and other current investments | 169 | 1,677 | |||
Other, net | 1,267 | (114) | |||
Net cash used in investing activities - continuing operations | (16,865) | (31,579) | |||
Net cash provided by investing activities - discontinued operations | 757 | - | |||
Net cash used in investing activities | (16,108) | (31,579) | |||
Cash Flows From Financing Activities | |||||
Proceeds from long-term borrowings | 3,402 | 21,598 | |||
Repayments of long-term borrowings and capital lease obligations | (5,503) | (4,146) | |||
Increase (decrease) in short-term obligations, excluding current maturities | (3,252) | 2,389 | |||
Dividends paid | (4,773) | (4,994) | |||
Proceeds from sale of common stock | 1,274 | 16 | |||
Purchase of common stock for treasury | (2,843) | (1,368) | |||
Other, net | (2) | 93 | |||
Net cash provided by (used in) financing activities - continuing operations | (11,697) | 13,588 | |||
Net cash used in financing activities - discontinued operations | - | - | |||
Net cash provided by (used in) financing activities | (11,697) | 13,588 | |||
Increase (decrease) in cash and cash equivalents | (2,066) | 8,629 | |||
Cash and cash equivalents, beginning of period | 3,219 | 1,153 | |||
Cash and cash equivalents, end of period | $ 1,153 | $ | 9,782 | ||
Verizon Communications Inc. Condensed Consolidated Statements of Cash Flows |
(dollars in millions)
Unaudited | 3 Mos. Ended 3/31/07 | 6 Mos. Ended 6/30/07 | 9 Mos. Ended 9/30/07 | 12 Mos. Ended 12/31/07 | 3 Mos. Ended 3/31/08 | 6 Mos. Ended 6/30/08 | 9 Mos. Ended 9/30/08 | 12 Mos. Ended 12/31/08 | ||||||||||||||||||||
Cash Flows From Operating Activities | ||||||||||||||||||||||||||||
Net Income | $ 2,649 | $ | 5,600 | $ | 8,169 | $ | 10,574 | $ | 3,049 | $ | 6,453 | $ | 9,652 | $ 12,583 | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities-continuing operations: | ||||||||||||||||||||||||||||
Depreciation and amortization expense | 3,533 | 7,106 | 10,711 | 14,377 | 3,582 | 7,166 | 10,818 | 14,565 | ||||||||||||||||||||
Employee retirement benefits | 430 | 862 | 1,290 | 1,720 | 407 | 808 | 1,232 | 1,955 | ||||||||||||||||||||
Deferred income taxes | 222 | 332 | 708 | 408 | 682 | 1,774 | 2,240 | 2,183 | ||||||||||||||||||||
Provision for uncollectible accounts | 281 | 498 | 741 | 1,047 | 298 | 494 | 724 | 1,085 | ||||||||||||||||||||
Equity in earnings of unconsolidated businesses, net of dividends received | (53) | (128 | ) | (268 | ) | 1,986 | (90 | ) | 507 | 303 | 212 | |||||||||||||||||
Extraordinary item, net of tax | 131 | 131 | 131 | 131 | - | - | - | - | ||||||||||||||||||||
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses | (1,116) | (2,001 | ) | (2,296 | ) | (2,893 | ) | (564 | ) | (2,309 | ) | (2,458 | ) | (3,033) | ||||||||||||||
Other, net | (1,033) | (838 | ) | (1,167 | ) | (1,041 | ) | (1,974 | ) | (2,841 | ) | (3,433 | ) | (2,930) | ||||||||||||||
Net cash provided by operating activities - continuing operations | 5,044 | 11,562 | 18,019 | 26,309 | 5,390 | 12,052 | 19,078 | 26,620 | ||||||||||||||||||||
Net cash provided by (used in) operating activities - discontinued operations | (527) | (570 | ) | (570 | ) | (570 | ) | - | - | - | - | |||||||||||||||||
Net cash provided by operating activities | 4,517 | 10,992 | 17,449 | 25,739 | 5,390 | 12,052 | 19,078 | 26,620 | ||||||||||||||||||||
Cash Flows From Investing Activities | ||||||||||||||||||||||||||||
Capital expenditures (including capitalized software) | (4,163) | (8,515 | ) | (12,792 | ) | (17,538 | ) | (4,220 | ) | (8,397 | ) | (12,575 | ) | (17,238) | ||||||||||||||
Acquisitions of licenses, investments and business, net of cash acquired | (124) | (629 | ) | (697 | ) | (763 | ) | (931 | ) | (14,493 | ) | (15,978 | ) | (15,904) | ||||||||||||||
Net change in short-term investments and other current investments | 282 | 748 | 1,267 | 169 | 241 | 736 | 1,238 | 1,677 | ||||||||||||||||||||
Other, net | 61 | 762 | 981 | 1,267 | 92 | (114 | ) | (567 | ) | (114) | ||||||||||||||||||
Net cash used in investing activities - continuing operations | (3,944) | (7,634 | ) | (11,241 | ) | (16,865 | ) | (4,818 | ) | (22,268 | ) | (27,882 | ) | (31,579) | ||||||||||||||
Net cash provided by (used in) investing activities - discontinued operations | 757 | 757 | 757 | 757 | - | - | - | - | ||||||||||||||||||||
Net cash used in investing activities | (3,187) | (6,877 | ) | (10,484 | ) | (16,108 | ) | (4,818 | ) | (22,268 | ) | (27,882 | ) | (31,579) | ||||||||||||||
Cash Flows From Financing Activities | ||||||||||||||||||||||||||||
Proceeds from long-term borrowings | 1,424 | 3,402 | 3,402 | 3,402 | 4,194 | 8,144 | 12,552 | 21,598 | ||||||||||||||||||||
Repayments of long-term borrowings and capital lease obligations | (3,314) | (4,811 | ) | (4,994 | ) | (5,503 | ) | (1,182 | ) | (1,849 | ) | (3,398 | ) | (4,146) | ||||||||||||||
Increase (decrease) in short-term obligations, excluding current maturities | 141 | (2,497 | ) | (3,438 | ) | (3,252 | ) | 2,929 | 6,929 | 4,132 | 2,389 | |||||||||||||||||
Dividends paid | (1,179) | (2,343 | ) | (3,529 | ) | (4,773 | ) | (1,237 | ) | (2,464 | ) | (3,687 | ) | (4,994) | ||||||||||||||
Proceeds from sale of common stock | 110 | 553 | 794 | 1,274 | 9 | 15 | 16 | 16 | ||||||||||||||||||||
Purchase of common stock for treasury | (427) | (952 | ) | (1,734 | ) | (2,843 | ) | (1,001 | ) | (1,117 | ) | (1,369 | ) | (1,368) | ||||||||||||||
Other, net | (3) | (30 | ) | 30 | (2 | ) | 48 | (13 | ) | 101 | 93 | |||||||||||||||||
Net cash provided by (used in) financing activities - continuing operations | (3,248) | (6,678 | ) | (9,469 | ) | (11,697 | ) | 3,760 | 9,645 | 8,347 | 13,588 | |||||||||||||||||
Net cash used in financing activities - discontinued operations | - | - | - | - | - | - | - | - | ||||||||||||||||||||
Net cash provided by (used in) financing activities | (3,248) | (6,678 | ) | (9,469 | ) | (11,697 | ) | 3,760 | 9,645 | 8,347 | 13,588 | |||||||||||||||||
Increase (decrease) in cash and cash equivalents | (1,918) | (2,563 | ) | (2,504 | ) | (2,066 | ) | 4,332 | (571 | ) | (457 | ) | 8,629 | |||||||||||||||
Cash and cash equivalents, beginning of period | 3,219 | 3,219 | 3,219 | 3,219 | 1,153 | 1,153 | 1,153 | 1,153 | ||||||||||||||||||||
Cash and cash equivalents, end of period | $ 1,301 | $ | 656 | $ | 715 | $ | 1,153 | $ | 5,485 | $ | 582 | $ | 696 | $ 9,782 | ||||||||||||||
Verizon Communications Verizon Wireless – Selected Financial Results |
(dollars in millions) | ||||
Unaudited | 12 Mos. Ended 12/31/07 | 12 Mos. Ended 12/31/08 | ||
Revenues | ||||
Service revenues | $ 38,016 | $ 42,635 | ||
Equipment and other | 5,866 | 6,697 | ||
Total Revenues | 43,882 | 49,332 | ||
Operating Expenses | ||||
Cost of services and sales | 13,456 | 15,660 | ||
Selling, general & administrative expense | 13,477 | 14,273 | ||
Depreciation and amortization expense | 5,154 | 5,405 | ||
Total Operating Expenses | 32,087 | 35,338 | ||
Operating Income | $ 11,795 | $ 13,994 | ||
Operating Income Margin | 26.9% | 28.4% | ||
Unaudited | 12/31/07 | 12/31/08 | ||
Selected Operating Statistics | ||||
Total Customers (000) | 65,707 | 72,056 | ||
Retail Customers (000) | 63,735 | 70,021 | ||
Unaudited | 12 Mos. Ended 12/31/07 | 12 Mos. Ended 12/31/08 | ||
Total Customer net adds in period(1) (000) | 6,655 | 6,349 | ||
Retail Customer net adds in period(2) (000) | 6,923 | 6,286 | ||
Total churn rate | 1.21% | 1.25% | ||
Retail churn rate | 1.14% | 1.24% |
Footnotes:
(1) | Includes acquisitions and adjustments of 9,000 customers during 2007 and 570,000 customers during 2008. |
(2) | Includes acquisitions and adjustments of 9,000 customers during 2007 and 534,000 customers during 2008 . |
The segment financial results above are adjusted to exclude the effects of special and non-recurring items. The company’s chief decision makers exclude these items in assessing business unit performance, primarily due to their non-operational nature.
Intersegment transactions have not been eliminated.
Certain reclassifications have been made, where appropriate, to reflect comparable operating results.
Verizon Communications Verizon Wireless – Selected Financial Results - Quarter to Date |
(dollars in millions)
2007 | 2008 | ||||||||||||||||||||||||
Unaudited | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||||||||||||||
Revenues | |||||||||||||||||||||||||
Service revenues | $ | 8,991 | $ | 9,402 | $ | 9,749 | $ | 9,874 | $ | 10,145 | $ | 10,492 | $ | 10,935 | $ | 11,063 | |||||||||
Equipment and other | 1,316 | 1,441 | 1,540 | 1,569 | 1,524 | 1,626 | 1,764 | 1,783 | |||||||||||||||||
Total Revenues | 10,307 | 10,843 | 11,289 | 11,443 | 11,669 | 12,118 | 12,699 | 12,846 | |||||||||||||||||
Operating Expenses | |||||||||||||||||||||||||
Cost of services and sales | 3,022 | 3,270 | 3,551 | 3,613 | 3,585 | 3,744 | 4,178 | 4,153 | |||||||||||||||||
Selling, general & administrative expense | 3,300 | 3,271 | 3,385 | 3,521 | 3,529 | 3,588 | 3,689 | 3,467 | |||||||||||||||||
Depreciation and amortization expense | 1,256 | 1,293 | 1,299 | 1,306 | 1,300 | 1,323 | 1,366 | 1,416 | |||||||||||||||||
Total Operating Expenses | 7,578 | 7,834 | 8,235 | 8,440 | 8,414 | 8,655 | 9,233 | 9,036 | |||||||||||||||||
Operating Income | $ | 2,729 | $ | 3,009 | $ | 3,054 | $ | 3,003 | $ | 3,255 | $ | 3,463 | $ | 3,466 | $ | 3,810 | |||||||||
Operating Income Margin | 26.5% | 27.8% | 27.1% | 26.2% | 27.9% | 28.6% | 27.3% | 29.7% | |||||||||||||||||
Unaudited | 03/31/07 | 06/30/07 | 09/30/07 | 12/31/07 | 03/31/08 | 06/30/08 | 09/30/08 | 12/31/08 | |||||||||||||||||
Selected Operating Statistics | |||||||||||||||||||||||||
Total Customers (000) | 60,716 | 62,054 | 63,699 | 65,707 | 67,178 | 68,681 | 70,808 | 72,056 | |||||||||||||||||
Retail Customers (000) | 58,458 | 60,080 | 61,840 | 63,735 | 65,186 | 66,680 | 68,807 | 70,021 | |||||||||||||||||
2007 | 2008 | ||||||||||||||||||||||||
Unaudited | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||||||||||||||
Total Customer net adds in period(1) (000) | 1,664 | 1,338 | 1,645 | 2,008 | 1,471 | 1,503 | 2,127 | 1,248 | |||||||||||||||||
Retail Customer net adds in period(2) (000) | 1,646 | 1,622 | 1,760 | 1,895 | 1,451 | 1,494 | 2,127 | 1,214 | |||||||||||||||||
Total churn rate | 1.13% | 1.26% | 1.27% | 1.20% | 1.19% | 1.12% | 1.33% | 1.35% | |||||||||||||||||
Retail churn rate | 1.08% | 1.08% | 1.21% | 1.21% | 1.18% | 1.11% | 1.32% | 1.34% |
Footnotes:
(1) | Includes acquisitions and adjustments of 7,000 customers and 2,000 customers in the first and third quarter of 2007, respectively; and 46,000 customers, 646,000 customers and (122,000) customers in the second, third and fourth quarter of 2008. |
(2) | Includes acquisitions and adjustments of 7,000 customers and 2,000 customers in the first and third quarter of 2007, respectively; and 46,000 customers, 627,000 customers and (139,000) customers in the second, third and fourth quarter of 2008. |
The segment financial results above are adjusted to exclude the effects of special and non-recurring items. The company’s chief decision makers exclude these items in assessing business unit performance, primarily due to their non-operational nature.
Intersegment transactions have not been eliminated.
Certain reclassifications have been made, where appropriate, to reflect comparable operating results.
Verizon Communications Verizon Wireless – Selected Financial Results - Year to Date |
(dollars in millions)
2007 | 2008 | |||||||||||||||||||||||||||||||
Unaudited | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Service revenues | $ | 8,991 | $ | 18,393 | $ | 28,142 | $ | 38,016 | $ | 10,145 | $ | 20,637 | $ | 31,572 | $ | 42,635 | ||||||||||||||||
Equipment and other | 1,316 | 2,757 | 4,297 | 5,866 | 1,524 | 3,150 | 4,914 | 6,697 | ||||||||||||||||||||||||
Total Revenues | 10,307 | 21,150 | 32,439 | 43,882 | 11,669 | 23,787 | 36,486 | 49,332 | ||||||||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||||||||
Cost of services and sales | 3,022 | 6,292 | 9,843 | 13,456 | 3,585 | 7,329 | 11,507 | 15,660 | ||||||||||||||||||||||||
Selling, general & administrative expense | 3,300 | 6,571 | 9,956 | 13,477 | 3,529 | 7,117 | 10,806 | 14,273 | ||||||||||||||||||||||||
Depreciation and amortization expense | 1,256 | 2,549 | 3,848 | 5,154 | 1,300 | 2,623 | 3,989 | 5,405 | ||||||||||||||||||||||||
Total Operating Expenses | 7,578 | 15,412 | 23,647 | 32,087 | 8,414 | 17,069 | 26,302 | 35,338 | ||||||||||||||||||||||||
Operating Income | $ | 2,729 | $ | 5,738 | $ | 8,792 | $ | 11,795 | $ | 3,255 | $ | 6,718 | $ | 10,184 | $ | 13,994 | ||||||||||||||||
Operating Income Margin | 26.5 | % | 27.1 | % | 27.1 | % | 26.9 | % | 27.9 | % | 28.2 | % | 27.9 | % | 28.4 | % | ||||||||||||||||
2007 | 2008 | |||||||||||||||||||||||||||||||
Unaudited | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||||||||||||||
Total Customer net adds in period(1) (000) | 1,664 | 3,002 | 4,647 | 6,655 | 1,471 | 2,974 | 5,101 | 6,349 | ||||||||||||||||||||||||
Retail Customer net adds in period(2) (000) | 1,646 | 3,268 | 5,028 | 6,923 | 1,451 | 2,945 | 5,072 | 6,286 | ||||||||||||||||||||||||
Total churn rate | 1.13 | % | 1.19 | % | 1.22 | % | 1.21 | % | 1.19 | % | 1.16 | % | 1.21 | % | 1.25 | % | ||||||||||||||||
Retail churn rate | 1.08 | % | 1.08 | % | 1.12 | % | 1.14 | % | 1.18 | % | 1.15 | % | 1.20 | % | 1.24 | % |
Footnotes:
(1) | Includes acquisitions and adjustments of 7,000 customers in the first and second quarters and 9,000 customers in the third and fourth quarters of 2007 year-to-date, respectively; and 46,000 customers in the second quarter, 692,000 customers in the third quarter and 570,000 customers in the fourth quarter of 2008 year-to-date, respectively. |
(2) | Includes acquisitions and adjustments of 7,000 customers in the first and second quarter and 9,000 customers in the third and fourth quarter of 2007 year-to-date, respectively; and 46,000 customers in the second quarter, 673,000 customers in the third quarter, and 534,000 customers in the fourth quarter of 2008 year-to-date, respectively. |
The segment financial results above are adjusted to exclude the effects of special and non-recurring items. The company’s chief decision makers exclude these items in assessing business unit performance, primarily due to their non-operational nature.
Intersegment transactions have not been eliminated.
Certain reclassifications have been made, where appropriate, to reflect comparable operating results.
Verizon Communications Wireline – Selected Financial Results |
(dollars in millions)
Unaudited | 12 Mos. Ended 12/31/07 | 12 Mos. Ended 12/31/08 | ||
Wireline Operating Revenues(1) | ||||
Mass Markets | $ 19,570 | $ 19,799 | ||
Global Enterprise | 15,710 | 15,779 | ||
Global Wholesale Services | 10,750 | 10,360 | ||
Other | 3,099 | 2,276 | ||
Total Operating Revenues | 49,129 | 48,214 | ||
Operating Expenses(1) | ||||
Cost of services and sales | 24,181 | 24,274 | ||
Selling, general & administrative expense | 11,527 | 11,047 | ||
Depreciation and amortization expense | 8,927 | 9,031 | ||
Total Operating Expenses | 44,635 | 44,352 | ||
Operating Income | $ 4,494 | $ 3,862 | ||
Operating Income Margin | 9.1% | 8.0% | ||
Verizon Communications Wireline – Selected Operating Statistics | ||||
(numbers in thousands) | ||||
Unaudited | 12/31/07 | 12/31/08 | ||
Operating Statistics | ||||
Switched access lines in service(2) | ||||
Total Residence | 23,880 | 20,956 | ||
Primary retail residence
| 20,124
| 18,083
| ||
Business | 15,713 | 14,966 | ||
Public | 290 | 239 | ||
Total | 39,883 | 36,161 | ||
Broadband connections | 8,013 | 8,673 | ||
FIOS Internet Subscribers | 1,525 | 2,481 | ||
FIOS TV Subscribers | 943 | 1,918 |
Footnotes:
(1) | Certain reclassifications have been made, where appropriate, to reflect comparable operating results. |
(2) | Prior period figures adjusted to reflect current period reporting methodologies. |
The segment financial results above are adjusted to exclude the effects of special and non-recurring items. The company’s chief decision makers exclude these items in assessing business unit performance, primarily due to their non-operational nature.
Intersegment transactions have not been eliminated.
Verizon Communications Wireline – Selected Financial Results - Quarter to Date |
(dollars in millions) | ||||||||||||||||
2007 | 2008 | |||||||||||||||
Unaudited | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||
Wireline Operating Revenues(1) | ||||||||||||||||
Mass Markets | $ 4,843 | $ 4,926 | $ 4,921 | $ 4,880 | $ 4,892 | $ 4,947 | $ 4,991 | $ 4,969 | ||||||||
Global Enterprise | 3,797 | 3,908 | 3,984 | 4,021 | 3,876 | 3,972 | 4,010 | 3,921 | ||||||||
Global Wholesale Services | 2,682 | 2,706 | 2,700 | 2,662 | 2,632 | 2,605 | 2,595 | 2,528 | ||||||||
Other | 856 | 790 | 767 | 686 | 626 | 589 | 562 | 499 | ||||||||
Total Operating Revenues | 12,178 | 12,330 | 12,372 | 12,249 | 12,026 | 12,113 | 12,158 | 11,917 | ||||||||
Operating Expenses(1) | ||||||||||||||||
Cost of services and sales | 5,922 | 5,986 | 6,085 | 6,188 | 6,081 | 5,997 | 6,155 | 6,041 | ||||||||
Selling, general & administrative expense | 2,970 | 3,051 | 2,922 | 2,584 | 2,696 | 2,808 | 2,689 | 2,854 | ||||||||
Depreciation and amortization expense | 2,203 | 2,206 | 2,230 | 2,288 | 2,209 | 2,245 | 2,268 | 2,309 | ||||||||
Total Operating Expenses | 11,095 | 11,243 | 11,237 | 11,060 | 10,986 | 11,050 | 11,112 | 11,204 | ||||||||
Operating Income | $ 1,083 | $ 1,087 | $ 1,135 | $ 1,189 | $ 1,040 | $ 1,063 | $ 1,046 | $ 713 | ||||||||
Operating Income Margin | 8.9% | 8.8% | 9.2% | 9.7% | 8.6% | 8.8% | 8.6% | 6.0% | ||||||||
Verizon Communications Wireline – Selected Operating Statistics | ||||||||||||||||
(numbers in thousands) | ||||||||||||||||
Unaudited | 03/31/07 | 06/30/07 | 09/30/07 | 12/31/07 | 03/31/08 | 06/30/08 | 09/30/08 | 12/31/08 | ||||||||
Operating Statistics | ||||||||||||||||
Switched access lines in service(2) | ||||||||||||||||
Total Residence | 26,018 | 25,316 | 24,567 | 23,880 | 23,189 | 22,416 | 21,626 | 20,956 | ||||||||
Primary retail residence | 21,419 | 21,039 | 20,575 | 20,124 | 19,669 | 19,113 | 18,543 | 18,083 | ||||||||
Business | 16,149 | 16,021 | 15,850 | 15,713 | 15,532 | 15,395 | 15,192 | 14,966 | ||||||||
Public | 327 | 315 | 302 | 290 | 283 | 273 | 254 | 239 | ||||||||
Total | 42,494 | 41,652 | 40,719 | 39,883 | 39,004 | 38,084 | 37,072 | 36,161 | ||||||||
Broadband connections | 7,190 | 7,471 | 7,751 | 8,013 | 8,276 | 8,330 | 8,459 | 8,673 | ||||||||
FIOS Internet Subscribers | 853 | 1,054 | 1,281 | 1,525 | 1,787 | 1,974 | 2,199 | 2,481 | ||||||||
FIOS TV Subscribers | 348 | 515 | 717 | 943 | 1,206 | 1,382 | 1,615 | 1,918 |
Footnotes:
(1) | Certain reclassifications have been made, where appropriate, to reflect comparable operating results. |
(2) | Prior period figures adjusted to reflect current period reporting methodologies. |
The segment financial results above are adjusted to exclude the effects of special and non-recurring items. The company's chief decision makers exclude these items in assessing business unit performance, primarily due to their non-operational nature.
Intersegment transactions have not been eliminated.
Verizon Communications Wireline – Selected Financial Results - Year to Date |
(dollars in millions) | ||||||||||||||||||||||
2007 | 2008 | |||||||||||||||||||||
Unaudited | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||||
Wireline Operating Revenues (1) | ||||||||||||||||||||||
Mass Markets | $ 4,843 | $ | 9,769 | $ | 14,690 | $ | 19,570 | $ | 4,892 | $ | 9,839 | $ | 14,830 | $ 19,799 | ||||||||
Global Enterprise | 3,797 | 7,705 | 11,689 | 15,710 | 3,876 | 7,848 | 11,858 | 15,779 | ||||||||||||||
Global Wholesale Services | 2,682 | 5,388 | 8,088 | 10,750 | 2,632 | 5,237 | 7,832 | 10,360 | ||||||||||||||
Other | 856 | 1,646 | 2,413 | 3,099 | 626 | 1,215 | 1,777 | 2,276 | ||||||||||||||
Total Operating Revenues | 12,178 | 24,508 | 36,880 | 49,129 | 12,026 | 24,139 | 36,297 | 48,214 | ||||||||||||||
Operating Expenses (1) | ||||||||||||||||||||||
Cost of services and sales | 5,922 | 11,908 | 17,993 | 24,181 | 6,081 | 12,078 | 18,233 | 24,274 | ||||||||||||||
Selling, general & administrative expense | 2,970 | 6,021 | 8,943 | 11,527 | 2,696 | 5,504 | 8,193 | 11,047 | ||||||||||||||
Depreciation and amortization expense | 2,203 | 4,409 | 6,639 | 8,927 | 2,209 | 4,454 | 6,722 | 9,031 | ||||||||||||||
Total Operating Expenses | 11,095 | 22,338 | 33,575 | 44,635 | 10,986 | 22,036 | 33,148 | 44,352 | ||||||||||||||
Operating Income | $ 1,083 | $ | 2,170 | $ | 3,305 | $ | 4,494 | $ | 1,040 | $ | 2,103 | $ | 3,149 | $ 3,862 | ||||||||
Operating Income Margin | 8.9% | 8.9% | 9.0% | 9.1% | 8.6% | 8.7% | 8.7% | 8.0% |
Footnotes:
(1) | Certain reclassifications have been made, where appropriate, to reflect comparable operating results. |
The segment financial results above are adjusted to exclude the effects of special and non-recurring items. The company's chief decision makers exclude these items in assessing business unit performance, primarily due to their non-operational nature.
Intersegment transactions have not been eliminated.
Verizon Communications Inc. |
Condensed Consolidated Statements of Income - Reconciliations |
(dollars in millions, except per share amounts)
Special and Non-Recurring Items | |||||||||||||||||||||
Unaudited | 3 Mos. Ended Reported | Merger Integration Costs | Sale of Puerto Rico, Net | Loss on CANTV | Impact of Divested Operations | 3 Mos. Ended 3/31/07 Before Special Items | |||||||||||||||
Operating Revenues | $ 22,584 | $ | - | $ | - | $ | - | $ | (273 | ) | $ | 22,311 | |||||||||
Operating Expenses | |||||||||||||||||||||
Cost of services and sales | 8,912 | (2 | ) | - | - | (105 | ) | 8,805 | |||||||||||||
Selling, general & administrative expense | 6,343 | (12 | ) | (100 | ) | - | (52 | ) | 6,179 | ||||||||||||
Depreciation and amortization expense | 3,533 | - | - | - | (64 | ) | 3,469 | ||||||||||||||
Total Operating Expenses | 18,788 | (14 | ) | (100 | ) | - | (221 | ) | 18,453 | ||||||||||||
Operating Income | 3,796 | 14 | 100 | - | (52 | ) | 3,858 | ||||||||||||||
Operating income impact of divested operations | - | - | - | - | 52 | 52 | |||||||||||||||
Equity in earnings of unconsolidated businesses | 160 | - | - | - | - | 160 | |||||||||||||||
Other income and (expense), net | 48 | - | - | - | - | 48 | |||||||||||||||
Interest expense | (485) | - | - | - | - | (485 | ) | ||||||||||||||
Income Before Provision for Income Taxes, | 3,519 | 14 | 100 | - | - | 3,633 | |||||||||||||||
Provision for income taxes | (881) | (5 | ) | (35 | ) | - | - | (921 | ) | ||||||||||||
Income Before Discontinued Operations and Extraordinary Item | 2,638 | 9 | 65 | - | - | 2,712 | |||||||||||||||
Income from discontinued operations, net of tax | 142 | - | (70 | ) | - | - | 72 | ||||||||||||||
Extraordinary item, net of tax | (131) | - | - | 131 | - | - | |||||||||||||||
Net Income | $ 2,649 | $ | 9 | $ | (5 | ) | $ | 131 | $ | - | $ | 2,784 | |||||||||
Net Income Attributable To Noncontrolling Interest | 1,154 | - | - | - | - | 1,154 | |||||||||||||||
Net Income Attributable To Verizon | 1,495 | 9 | (5 | ) | 131 | - | 1,630 | ||||||||||||||
Net Income | $ 2,649 | $ | 9 | $ | (5 | ) | $ | 131 | $ | - | $ | 2,784 | |||||||||
Basic Earnings per Common Share(1) | |||||||||||||||||||||
Income before discontinued operations | $ .51 | $ | - | $ | .02 | $ | - | $ | - | $ | .54 | ||||||||||
Income from discontinued operations attributable to Verizon, net of tax | .05 | - | (.02 | ) | - | - | .02 | ||||||||||||||
Extraordinary item attributable to Verizon, net of tax | (.05) | - | - | .05 | - | - | |||||||||||||||
Net income attributable to Verizon | $ .51 | $ | - | $ | - | $ | .05 | $ | - | $ | .56 | ||||||||||
Diluted Earnings per Common Share(1) | |||||||||||||||||||||
Income before discontinued operations | $ .51 | $ | - | $ | .02 | $ | - | $ | - | $ | .54 | ||||||||||
Income from discontinued operations attributable to Verizon, net of tax | .05 | - | (.02 | ) | - | - | .02 | ||||||||||||||
Extraordinary item attributable to Verizon, net of tax | (.05) | - | - | .05 | - | - | |||||||||||||||
Net income attributable to Verizon | $ .51 | $ | - | $ | - | $ | .05 | $ | - | $ | .56 | ||||||||||
Footnote:
(1) | EPS totals may not add due to rounding. |
Verizon Communications Inc. |
Condensed Consolidated Statements of Income - Reconciliations |
(dollars in millions, except per share amounts)
Special and Non-Recurring Items | ||||||||||||
Unaudited | 3 Mos. Ended 6/30/07 Reported (GAAP) | Merger Integration Costs | Impact of Divested Operations | 3 Mos. Ended 6/30/07 Before Special Items | ||||||||
Operating Revenues | $ 23,273 | $ | - | $ | (273 | ) | $ 23,000 | |||||
Operating Expenses | ||||||||||||
Cost of services and sales | 9,231 | (2 | ) | (109 | ) | 9,120 | ||||||
Selling, general & administrative expense | 6,320 | (25 | ) | (54 | ) | 6,241 | ||||||
Depreciation and amortization expense | 3,573 | - | (64 | ) | 3,509 | |||||||
Total Operating Expenses | 19,124 | (27 | ) | (227 | ) | 18,870 | ||||||
Operating Income | 4,149 | 27 | (46 | ) | 4,130 | |||||||
Operating income impact of divested operations | - | - | 46 | 46 | ||||||||
Equity in earnings of unconsolidated businesses | 185 | - | - | 185 | ||||||||
Other income and (expense), net | 27 | - | - | 27 | ||||||||
Interest expense | (455) | - | - | (455) | ||||||||
Income Before Provision for Income | 3,906 | 27 | - | 3,933 | ||||||||
Provision for income taxes | (955) | (10 | ) | - | (965) | |||||||
Net Income | $ 2,951 | $ | 17 | $ | - | $ 2,968 | ||||||
Net Income Attributable To Noncontrolling Interest | 1,268 | - | - | 1,268 | ||||||||
Net Income Attributable To Verizon | 1,683 | 17 | - | 1,700 | ||||||||
Net Income | $ 2,951 | $ | 17 | $ | - | $ 2,968 | ||||||
Basic Earnings per Common Share(1) | ||||||||||||
Net income attributable to Verizon | $ .58 | $ | .01 | $ | - | $ .59 | ||||||
Diluted Earnings per Common Share(1) | ||||||||||||
Net income attributable to Verizon | $ .58 | $ | .01 | $ | - | $ .58 | ||||||
Footnote:
(1) | EPS totals may not add due to rounding. |
Verizon Communications Inc. |
Condensed Consolidated Statements of Income - Reconciliations |
(dollars in millions, except per share amounts)
Special and Non-Recurring Items | |||||||||||||||||||||
Unaudited | 6 Mos. Ended 6/30/07 Reported (GAAP) | Merger Integration Costs | Sale of Puerto Rico, Net | Loss on CANTV | Impact of Divested Operations | 6 Mos. Ended 6/30/07 Before Special Items | |||||||||||||||
Operating Revenues | $ 45,857 | $ | - | $ | - | $ | - | $ | (546 | ) | $ | 45,311 | |||||||||
Operating Expenses | |||||||||||||||||||||
Cost of services and sales | 18,143 | (4 | ) | - | - | (214 | ) | 17,925 | |||||||||||||
Selling, general & administrative expense | 12,663 | (37 | ) | (100 | ) | - | (106 | ) | 12,420 | ||||||||||||
Depreciation and amortization expense | 7,106 | - | - | - | (128 | ) | 6,978 | ||||||||||||||
Total Operating Expenses | 37,912 | (41 | ) | (100 | ) | - | (448 | ) | 37,323 | ||||||||||||
Operating Income | 7,945 | 41 | 100 | - | (98 | ) | 7,988 | ||||||||||||||
Operating income impact of divested operations | - | - | - | - | 98 | 98 | |||||||||||||||
Equity in earnings of unconsolidated businesses | 345 | - | - | - | - | 345 | |||||||||||||||
Other income and (expense), net | 75 | - | - | - | - | 75 | |||||||||||||||
Interest expense | (940) | - | - | - | - | (940 | ) | ||||||||||||||
Income Before Provision for Income Taxes, | 7,425 | 41 | 100 | - | - | 7,566 | |||||||||||||||
Provision for income taxes | (1,836) | (15 | ) | (35 | ) | - | - | (1,886 | ) | ||||||||||||
Income Before Discontinued Operations and Extraordinary Item | 5,589 | 26 | 65 | - | - | 5,680 | |||||||||||||||
Income from discontinued operations, net of tax | 142 | - | (70 | ) | - | - | 72 | ||||||||||||||
Extraordinary item, net of tax | (131) | - | - | 131 | - | - | |||||||||||||||
Net Income | $ 5,600 | $ | 26 | $ | (5 | ) | $ | 131 | $ | - | $ | 5,752 | |||||||||
Net Income Attributable To Noncontrolling Interest | 2,422 | - | - | - | - | 2,422 | |||||||||||||||
Net Income Attributable To Verizon | 3,178 | 26 | (5 | ) | 131 | - | 3,330 | ||||||||||||||
Net Income | $ 5,600 | $ | 26 | $ | (5 | ) | $ | 131 | $ | - | $ | 5,752 | |||||||||
Basic Earnings per Common Share(1) | |||||||||||||||||||||
Income before discontinued operations and extraordinary item attributable to Verizon | $ 1.09 | $ | .01 | $ | .02 | $ | - | $ | - | $ | 1.12 | ||||||||||
Income from discontinued operations attributable to Verizon, net of tax | .05 | - | (.02 | ) | - | - | .02 | ||||||||||||||
Extraordinary item attributable to Verizon, net of tax | (.05) | - | - | .05 | - | - | |||||||||||||||
Net income attributable to Verizon | $ 1.09 | $ | .01 | $ | - | $ | .05 | $ | - | $ | 1.15 | ||||||||||
Diluted Earnings per Common Share(1) | |||||||||||||||||||||
Income before discontinued operations and extraordinary item attributable to Verizon | $ 1.09 | $ | .01 | $ | .02 | $ | - | $ | - | $ | 1.12 | ||||||||||
Income from discontinued operations attributable to Verizon, net of tax | .05 | - | (.02 | ) | - | - | .02 | ||||||||||||||
Extraordinary item attributable to Verizon, net of tax | (.05) | - | - | .05 | - | - | |||||||||||||||
Net income attributable to Verizon | $ 1.09 | $ | .01 | $ | - | $ | .05 | $ | - | $ | 1.14 | ||||||||||
Footnote:
(1) | EPS totals may not add due to rounding. |
Verizon Communications Inc. |
Condensed Consolidated Statements of Income - Reconciliations |
(dollars in millions, except per share amounts)
Special and Non-Recurring Items | ||||||||||||||||||||
Unaudited | 3 Mos. Ended 9/30/07 Reported (GAAP) | Merger Integration Costs | Access Line Spin- Off Related Changes | International Taxes | Impact of Divested Operations | 3 Mos. Ended 9/30/07 Items | ||||||||||||||
Operating Revenues | $ 23,772 | $ | - | $ | - | $ | - | $ | (279 | ) | $ 23,493 | |||||||||
Operating Expenses | ||||||||||||||||||||
Cost of services and sales | 9,608 | (12 | ) | - | - | (107 | ) | 9,489 | ||||||||||||
Selling, general & administrative expense | 6,349 | (33 | ) | (46 | ) | (13 | ) | (56 | ) | 6,201 | ||||||||||
Depreciation and amortization expense | 3,605 | - | - | - | (65 | ) | 3,540 | |||||||||||||
Total Operating Expenses | 19,562 | (45 | ) | (46 | ) | (13 | ) | (228 | ) | 19,230 | ||||||||||
Operating Income | 4,210 | 45 | 46 | 13 | (51 | ) | 4,263 | |||||||||||||
Operating income impact of divested operations | - | - | - | - | 51 | 51 | ||||||||||||||
Equity in earnings of unconsolidated businesses | 147 | - | - | - | - | 147 | ||||||||||||||
Other income and (expense), net | 49 | - | - | - | - | 49 | ||||||||||||||
Interest expense | (450) | - | - | - | - | (450) | ||||||||||||||
Income Before Provision for Income Taxes | 3,956 | 45 | 46 | 13 | - | 4,060 | ||||||||||||||
Provision for income taxes | (1,387) | (17 | ) | (2 | ) | 458 | - | (948) | ||||||||||||
Net Income | $ 2,569 | $ | 28 | $ | 44 | $ | 471 | $ | - | $ 3,112 | ||||||||||
Net Income Attributable To Noncontrolling Interest | 1,298 | - | - | - | - | 1,298 | ||||||||||||||
Net Income Attributable To Verizon | 1,271 | 28 | 44 | 471 | - | 1,814 | ||||||||||||||
Net Income | $ 2,569 | $ | 28 | $ | 44 | $ | 471 | $ | - | $ 3,112 | ||||||||||
Basic Earnings per Common Share(1) | ||||||||||||||||||||
Net income attributable to Verizon | $ .44 | $ | .01 | $ | .02 | $ | .16 | $ | - | $ .63 | ||||||||||
Diluted Earnings per Common Share(1) | ||||||||||||||||||||
Net income attributable to Verizon | $ .44 | $ | .01 | $ | .02 | $ | .16 | $ | - | $ .63 | ||||||||||
Footnote:
(1) | EPS totals may not add due to rounding. |
Verizon Communications Inc. |
Condensed Consolidated Statements of Income - Reconciliations |
(dollars in millions, except per share amounts)
Unaudited | Special and Non-Recurring Items | 9 Mos. Ended Before Special Items | |||||||||||||||||||||||||
9 Mos. Ended 9/30/07 Reported (GAAP) | | Merger Integration Costs | | | Sale of Puerto Rico, Net | | | Loss on CANTV | | Access Line Spin- Off | | | International Taxes | | | Impact of Divested Operations | | ||||||||||
Operating Revenues | $ 69,629 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | (825 | ) | $ 68,804 | ||||||||||||
Operating Expenses | |||||||||||||||||||||||||||
Cost of services and sales | 27,751 | (16 | ) | - | - | - | - | (321 | ) | 27,414 | |||||||||||||||||
Selling, general & administrative expense | 19,012 | (70 | ) | (100 | ) | - | (46 | ) | (13 | ) | (162 | ) | 18,621 | ||||||||||||||
Depreciation and amortization expense | 10,711 | - | - | - | - | - | (193 | ) | 10,518 | ||||||||||||||||||
Total Operating Expenses | 57,474 | (86 | ) | (100 | ) | - | (46 | ) | (13 | ) | (676 | ) | 56,553 | ||||||||||||||
Operating Income | 12,155 | 86 | 100 | - | 46 | 13 | (149 | ) | 12,251 | ||||||||||||||||||
Operating income impact of divested operations | - | - | - | - | - | - | 149 | 149 | |||||||||||||||||||
Equity in earnings of unconsolidated businesses | 492 | - | - | - | - | - | - | 492 | |||||||||||||||||||
Other income and (expense), net | 124 | - | - | - | - | - | - | 124 | |||||||||||||||||||
Interest expense | (1,390) | - | - | - | - | - | - | (1,390) | |||||||||||||||||||
Income Before Provision for Income Taxes, | 11,381 | 86 | 100 | - | 46 | 13 | - | 11,626 | |||||||||||||||||||
Provision for income taxes | (3,223) | (32 | ) | (35 | ) | - | (2 | ) | 458 | - | (2,834) | ||||||||||||||||
Income Before Discontinued Operations and Extraordinary Item | 8,158 | 54 | 65 | - | 44 | 471 | - | 8,792 | |||||||||||||||||||
Income from discontinued operations, net of tax | 142 | - | (70 | ) | - | - | - | - | 72 | ||||||||||||||||||
Extraordinary item, net of tax | (131) | - | - | 131 | - | - | - | - | |||||||||||||||||||
Net Income | $ 8,169 | $ | 54 | $ | (5 | ) | $ | 131 | $ | 44 | $ | 471 | $ | - | $ 8,864 | ||||||||||||
Net Income Attributable To Noncontrolling Interest | 3,720 | - | - | - | - | - | - | 3,720 | |||||||||||||||||||
Net Income Attributable To Verizon | 4,449 | 54 | (5 | ) | 131 | 44 | 471 | - | 5,144 | ||||||||||||||||||
Net Income | $ 8,169 | $ | 54 | $ | (5 | ) | $ | 131 | $ | 44 | $ | 471 | $ | - | $ 8,864 | ||||||||||||
Basic Earnings per Common Share(1) | |||||||||||||||||||||||||||
Income before discontinued operations and extraordinary item attributable to Verizon | $ 1.53 | $ | .02 | $ | .02 | $ | - | $ | .02 | $ | .16 | $ | - | $ 1.75 | |||||||||||||
Income from discontinued operations attributable to Verizon, net of tax | .05 | - | (.02 | ) | - | - | - | - | .02 | ||||||||||||||||||
Extraordinary item attributable to Verizon, net of tax | (.05) | - | - | .05 | - | - | - | - | |||||||||||||||||||
Net income attributable to Verizon | $ 1.53 | $ | .02 | $ | - | $ | .05 | $ | .02 | $ | .16 | $ | - | $ 1.77 | |||||||||||||
Diluted Earnings per Common Share(1) | |||||||||||||||||||||||||||
Income before discontinued operations and extraordinary item attributable to Verizon | $ 1.53 | $ | .02 | $ | .02 | $ | - | $ | .02 | $ | .16 | $ | - | $ 1.75 | |||||||||||||
Income from discontinued operations attributable to Verizon, net of tax | .05 | - | (.02 | ) | - | - | - | - | .02 | ||||||||||||||||||
Extraordinary item attributable to Verizon, net of tax | (.05) | - | - | .05 | - | - | - | - | |||||||||||||||||||
Net income attributable to Verizon | $ 1.53 | $ | .02 | $ | - | $ | .05 | $ | .02 | $ | .16 | $ | - | $ 1.77 | |||||||||||||
Footnote:
(1) | EPS totals may not add due to rounding. |
Verizon Communications Inc. Condensed Consolidated Statements of Income - Reconciliations |
(dollars in millions, except per share amounts)
Unaudited | Special and Non-Recurring Items | |||||||||||||||||||||||
3 Mos. Ended 12/31/07 | Merger Integration Costs | Access Line Spin-Off Related Changes | International Taxes | Severance, Benefit | Impact of Divested Operations | 3 Mos. Ended Before | ||||||||||||||||||
Operating Revenues | $ 23,840 | $ | - | $ | - | $ | - | $ | - | $ | (269 | ) | $ 23,571 | |||||||||||
Operating Expenses | ||||||||||||||||||||||||
Cost of services and sales | 9,796 | (16 | ) | - | - | - | (104 | ) | 9,676 | |||||||||||||||
Selling, general & administrative expense | 6,955 | (76 | ) | (38 | ) | (2 | ) | (772 | ) | (68 | ) | 5,999 | ||||||||||||
Depreciation and amortization expense | 3,666 | - | - | - | - | (64 | ) | 3,602 | ||||||||||||||||
Total Operating Expenses | 20,417 | (92 | ) | (38 | ) | (2 | ) | (772 | ) | (236 | ) | 19,277 | ||||||||||||
Operating Income | 3,423 | 92 | 38 | 2 | 772 | (33 | ) | 4,294 | ||||||||||||||||
Operating income impact of divested operations | - | - | - | - | - | 33 | 33 | |||||||||||||||||
Equity in earnings of unconsolidated businesses | 93 | - | - | - | - | - | 93 | |||||||||||||||||
Other income and (expense), net | 87 | - | - | - | - | - | 87 | |||||||||||||||||
Interest expense | (439) | - | - | - | - | - | (439) | |||||||||||||||||
Income Before Provision for Income Taxes | 3,164 | 92 | 38 | 2 | 772 | - | 4,068 | |||||||||||||||||
Provision for income taxes | (759) | (34 | ) | (2 | ) | 137 | (295 | ) | - | (953) | ||||||||||||||
Net Income | $ 2,405 | $ | 58 | $ | 36 | $ | 139 | $ | 477 | $ | - | $ 3,115 | ||||||||||||
Net Income Attributable To Noncontrolling Interest | 1,333 | - | - | - | - | - | 1,333 | |||||||||||||||||
Net Income Attributable To Verizon | 1,072 | 58 | 36 | 139 | 477 | - | 1,782 | |||||||||||||||||
Net Income | $ 2,405 | $ | 58 | $ | 36 | $ | 139 | $ | 477 | $ | - | $ 3,115 | ||||||||||||
Basic Earnings per Common Share (1) | ||||||||||||||||||||||||
Net income attributable to Verizon | $ .37 | $ | .02 | $ | .01 | $ | .05 | $ | .17 | $ | - | $ .62 | ||||||||||||
Diluted Earnings per Common Share (1) | ||||||||||||||||||||||||
Net income attributable to Verizon | $ .37 | $ | .02 | $ | .01 | $ | .05 | $ | .16 | $ | - | $ .62 | ||||||||||||
Footnote:
(1) | EPS totals may not add due to rounding. |
Verizon Communications Inc. Condensed Consolidated Statements of Income - Reconciliations |
(dollars in millions, except per share amounts)
Unaudited | Special and Non-Recurring Items | ||||||||||||||||||||||||||||||
12 Mos. Ended 12/31/07 | Merger Integration Costs | Sale of Puerto Rico, Net | Loss on CANTV | Access Line Spin-Off Related Charges | International Taxes | Severance, Pension Benefit charges | Impact of Divested Operations | 12 Mos. Ended Before Items | |||||||||||||||||||||||
Operating Revenues | $ 93,469 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | (1,094 | ) | $ 92,375 | ||||||||||||||
Operating Expenses | |||||||||||||||||||||||||||||||
Cost of services and sales | 37,547 | (32 | ) | - | - | - | - | - | (425 | ) | 37,090 | ||||||||||||||||||||
Selling, general & administrative expense | 25,967 | (146 | ) | (100 | ) | - | (84 | ) | (15 | ) | (772 | ) | (230 | ) | 24,620 | ||||||||||||||||
Depreciation and amortization expense | 14,377 | - | - | - | - | - | - | (257 | ) | 14,120 | |||||||||||||||||||||
Total Operating Expenses | 77,891 | (178 | ) | (100 | ) | - | (84 | ) | (15 | ) | (772 | ) | (912 | ) | 75,830 | ||||||||||||||||
Operating Income | 15,578 | 178 | 100 | - | 84 | 15 | 772 | (182 | ) | 16,545 | |||||||||||||||||||||
Operating income impact of divested operations | - | - | - | - | - | - | - | 182 | 182 | ||||||||||||||||||||||
Equity in earnings of unconsolidated businesses | 585 | - | - | - | - | - | - | - | 585 | ||||||||||||||||||||||
Other income and (expense), net | 211 | - | - | - | - | - | - | - | 211 | ||||||||||||||||||||||
Interest expense | (1,829) | - | - | - | - | - | - | - | (1,829) | ||||||||||||||||||||||
Income Before Provision for Income Taxes, | 14,545 | 178 | 100 | - | 84 | 15 | 772 | - | 15,694 | ||||||||||||||||||||||
Provision for income taxes | (3,982) | (66 | ) | (35 | ) | - | (4 | ) | 595 | (295 | ) | - | (3,787) | ||||||||||||||||||
Income Before Discontinued Operations and Extraordinary Item | 10,563 | 112 | 65 | - | 80 | 610 | 477 | - | 11,907 | ||||||||||||||||||||||
Income from discontinued operations, net of tax | 142 | - | (70 | ) | - | - | - | - | - | 72 | |||||||||||||||||||||
Extraordinary item, net of tax | (131) | - | - | 131 | - | - | - | - | - | ||||||||||||||||||||||
Net Income | $ 10,574 | $ | 112 | $ | (5 | ) | $ | 131 | $ | 80 | $ | 610 | $ | 477 | $ | - | $ 11,979 | ||||||||||||||
Net Income Attributable To Noncontrolling Interest | 5,053 | - | - | - | - | - | - | - | 5,053 | ||||||||||||||||||||||
Net Income Attributable To Verizon | 5,521 | 112 | (5 | ) | 131 | 80 | 610 | 477 | - | 6,926 | |||||||||||||||||||||
Net Income | $ 10,574 | $ | 112 | $ | (5 | ) | $ | 131 | $ | 80 | $ | 610 | $ | 477 | $ | - | $ 11,979 | ||||||||||||||
Basic Earnings per Common Share(1) | |||||||||||||||||||||||||||||||
Income before discontinued operations and extraordinary item attributable to Verizon | $ 1.90 | $ | .04 | $ | .02 | $ | - | $ | .03 | $ | .21 | $ | .17 | $ | - | $ 2.37 | |||||||||||||||
Income from discontinued operations attributable to Verizon, net of tax | .05 | - | (.02 | ) | - | - | - | - | - | .02 | |||||||||||||||||||||
Extraordinary item attributable to Verizon, net of tax | (.05) | - | - | .05 | - | - | - | - | - | ||||||||||||||||||||||
Net income attributable to Verizon | $ 1.91 | $ | .04 | $ | - | $ | .05 | $ | .03 | $ | .21 | $ | .17 | $ | - | $ 2.39 | |||||||||||||||
Diluted Earnings per Common Share(1) | |||||||||||||||||||||||||||||||
Income before discontinued operations and extraordinary item attributable to Verizon | $ 1.90 | $ | .04 | $ | .02 | $ | - | $ | .03 | $ | .21 | $ | .16 | $ | - | $ 2.36 | |||||||||||||||
Income from discontinued operations attributable to Verizon, net of tax | .05 | - | (.02 | ) | - | - | - | - | - | .02 | |||||||||||||||||||||
Extraordinary item attributable to Verizon, net of tax | (.05) | - | - | .05 | - | - | - | - | - | ||||||||||||||||||||||
Net income attributable to Verizon | $ 1.90 | $ | .04 | $ | - | $ | .05 | $ | .03 | $ | .21 | $ | .16 | $ | - | $ 2.39 | |||||||||||||||
Footnote:
(1) | EPS totals may not add due to rounding. |
Verizon Communications Inc. Condensed Consolidated Statements of Income - Reconciliations |
(dollars in millions, except per share amounts)
Unaudited | Special and Non-Recurring Items | |||||||||||||||
3 Mos. Ended 3/31/08 Reported (GAAP) | Merger Integration Costs | Access Line Spin- Off Related Charges | Impact of Divested Operations | 3 Mos. Ended 3/31/08 Before Special Items | ||||||||||||
Operating Revenues | $ 23,833 | $ | - | $ | - | $ | (258 | ) | $ 23,575 | |||||||
Operating Expenses | ||||||||||||||||
Cost of services and sales | 9,517 | (5 | ) | (16 | ) | (101 | ) | 9,395 | ||||||||
Selling, general & administrative expense | 6,401 | (24 | ) | (87 | ) | (53 | ) | 6,237 | ||||||||
Depreciation and amortization expense | 3,582 | - | - | (60 | ) | 3,522 | ||||||||||
Total Operating Expenses | 19,500 | (29 | ) | (103 | ) | (214 | ) | 19,154 | ||||||||
Operating Income | 4,333 | 29 | 103 | (44 | ) | 4,421 | ||||||||||
Operating income impact of divested operations | - | - | - | 44 | 44 | |||||||||||
Equity in earnings of unconsolidated businesses | 97 | - | - | - | 97 | |||||||||||
Other income and (expense), net | 23 | - | - | - | 23 | |||||||||||
Interest expense | (459) | - | - | - | (459) | |||||||||||
Income Before Provision for Income Taxes | 3,994 | 29 | 103 | - | 4,126 | |||||||||||
Provision for income taxes | (945) | (11 | ) | (22 | ) | - | (978) | |||||||||
Net Income | $ 3,049 | $ | 18 | $ | 81 | $ | - | $ 3,148 | ||||||||
Net Income Attributable To Noncontrolling Interest | 1,407 | - | - | - | 1,407 | |||||||||||
Net Income Attributable To Verizon | 1,642 | 18 | 81 | - | 1,741 | |||||||||||
Net Income | $ 3,049 | $ | 18 | $ | 81 | $ | - | $ 3,148 | ||||||||
Basic Earnings per Common Share(1) | ||||||||||||||||
Net income attributable to Verizon | $ .57 | $ | .01 | $ | .03 | $ | - | $ .61 | ||||||||
Diluted Earnings per Common Share(1) | ||||||||||||||||
Net income attributable to Verizon | $ .57 | $ | .01 | $ | .03 | $ | - | $ .61 | ||||||||
Footnote:
(1) | EPS totals may not add due to rounding. |
Verizon Communications Inc. Condensed Consolidated Statements of Income - Reconciliations |
(dollars in millions, except per share amounts)
Special and Non-Recurring Items | ||||||||
Unaudited | 3 Mos. Ended 6/30/08 Reported (GAAP) | Merger Integration | 3 Mos. Ended 6/30/08 Before Special Items | |||||
Operating Revenues | $ 24,124 | $ | - | $ 24,124 | ||||
Operating Expenses | ||||||||
Cost of services and sales | 9,466 | (8 | ) | 9,458 | ||||
Selling, general & administrative expense | 6,528 | (28 | ) | 6,500 | ||||
Depreciation and amortization expense | 3,584 | - | 3,584 | |||||
Total Operating Expenses | 19,578 | (36 | ) | 19,542 | ||||
Operating Income | 4,546 | 36 | 4,582 | |||||
Equity in earnings of unconsolidated businesses | 150 | - | 150 | |||||
Other income and (expense), net | 92 | - | 92 | |||||
Interest expense | (403) | - | (403) | |||||
Income Before Provision for Income Taxes | 4,385 | 36 | 4,421 | |||||
Provision for income taxes | (981) | (14 | ) | (995) | ||||
Net Income | $ 3,404 | $ | 22 | $ 3,426 | ||||
Net Income Attributable To Noncontrolling Interest | 1,522 | - | 1,522 | |||||
Net Income Attributable To Verizon | 1,882 | 22 | 1,904 | |||||
Net Income | $ 3,404 | $ | 22 | $ 3,426 | ||||
Basic Earnings per Common Share(1) | ||||||||
Net income attributable to Verizon | $ .66 | $ | .01 | $ .67 | ||||
Diluted Earnings per Common Share(1) | ||||||||
Net income attributable to Verizon | $ .66 | $ | .01 | $ .67 | ||||
Footnote:
(1) | EPS totals may not add due to rounding. |
Verizon Communications Inc. Condensed Consolidated Statements of Income - Reconciliations |
(dollars in millions, except per share amounts)
Unaudited | Special and Non-Recurring Items | |||||||||||||||
6 Mos. Ended Reported (GAAP) | Merger Integration Costs | Access Line Spin- Off Related Charges | Impact of Divested Operations | 6 Mos. Ended 6/30/08 Before Special | ||||||||||||
Operating Revenues | $ 47,957 | $ | - | $ | - | $ | (258 | ) | $ 47,699 | |||||||
Operating Expenses | ||||||||||||||||
Cost of services and sales | 18,983 | (13 | ) | (16 | ) | (101 | ) | 18,853 | ||||||||
Selling, general & administrative expense | 12,929 | (52 | ) | (87 | ) | (53 | ) | 12,737 | ||||||||
Depreciation and amortization expense | 7,166 | - | - | (60 | ) | 7,106 | ||||||||||
Total Operating Expenses | 39,078 | (65 | ) | (103 | ) | (214 | ) | 38,696 | ||||||||
Operating Income | 8,879 | 65 | 103 | (44 | ) | 9,003 | ||||||||||
Operating income impact of divested operations | - | - | - | 44 | 44 | |||||||||||
Equity in earnings of unconsolidated businesses | 247 | - | - | - | 247 | |||||||||||
Other income and (expense), net | 115 | - | - | - | 115 | |||||||||||
Interest expense | (862) | - | - | - | (862) | |||||||||||
Income Before Provision for Income Taxes | 8,379 | 65 | 103 | - | 8,547 | |||||||||||
Provision for income taxes | (1,926) | (25 | ) | (22 | ) | - | (1,973) | |||||||||
Net Income | $ 6,453 | $ | 40 | $ | 81 | $ | - | $ 6,574 | ||||||||
Net Income Attributable ToNoncontrolling Interest | 2,929 | - | - | - | 2,929 | |||||||||||
Net Income Attributable To Verizon | 3,524 | 40 | 81 | - | 3,645 | |||||||||||
Net Income | $ 6,453 | $ | 40 | $ | 81 | $ | - | $ 6,574 | ||||||||
Basic Earnings per Common Share (1) | ||||||||||||||||
Net income attributable to Verizon | $ 1.23 | $ | .01 | $ | .03 | $ | - | $ 1.28 | ||||||||
Diluted Earnings per Common Share(1) | ||||||||||||||||
Net income attributable to Verizon | $ 1.23 | $ | .01 | $ | .03 | $ | - | $ 1.28 | ||||||||
Footnote:
(1) | EPS totals may not add across due to rounding. |
Verizon Communications Inc. Condensed Consolidated Statements of Income - Reconciliations |
(dollars in millions, except per share amounts)
Special and Non-Recurring Items | ||||||||||
Unaudited | 3 Mos. Ended 9/30/08 Reported (GAAP) | | Merger Integration Costs | | Severance, Pension and Benefit Charges | 3 Mos. Ended 9/30/08 Before Special Items | ||||
Operating Revenues | $ 24,752 | $ | - | $ | - | $ 24,752 | ||||
Operating Expenses | ||||||||||
Cost of services and sales | 10,048 | (5) | - | 10,043 | ||||||
Selling, general & administrative expense | 6,879 | (45) | (265) | 6,569 | ||||||
Depreciation and amortization expense | 3,652 | - | - | 3,652 | ||||||
Total Operating Expenses | 20,579 | (50) | (265) | 20,264 | ||||||
Operating Income | 4,173 | 50 | 265 | 4,488 | ||||||
Equity in earnings of unconsolidated businesses | 211 | - | - | 211 | ||||||
Other income and (expense), net | 105 | - | - | 105 | ||||||
Interest expense | (440) | - | - | (440) | ||||||
Income Before Provision for Income Taxes | 4,049 | 50 | 265 | 4,364 | ||||||
Provision for income taxes | (850) | (18) | (101) | (969) | ||||||
Net Income | $ 3,199 | $ | 32 | $ | 164 | $ 3,395 | ||||
Net Income Attributable To Noncontrolling Interest | 1,530 | - | - | 1,530 | ||||||
Net Income Attributable To Verizon | 1,669 | 32 | 164 | 1,865 | ||||||
Net Income | $ 3,199 | $ | 32 | $ | 164 | $ 3,395 | ||||
Basic Earnings per Common Share(1) | ||||||||||
Net income attributable to Verizon | $ .59 | $ | .01 | $ | .06 | $ .66 | ||||
Diluted Earnings per Common Share(1) | ||||||||||
Net income attributable to Verizon | $ .59 | $ | .01 | $ | .06 | $ .66 | ||||
Footnote:
(1) | EPS totals may not add due to rounding. |
Verizon Communications Inc. Condensed Consolidated Statements of Income - Reconciliations |
(dollars in millions, except per share amounts)
Special and Non-Recurring Items | ||||||||||||||||
Unaudited | 9 Mos. Ended 9/30/08 Reported (GAAP) |
| Merger Integration Costs | | Access Line Spin- Off Related Charges | | Impact of Divested Operations | | Severance, Pension and Benefit Charges | 9 Mos. Ended 9/30/08 Before Special Items | ||||||
Operating Revenues | $ 72,709 | $ | - | $ | - | $ | (258) | $ | - | $ 72,451 | ||||||
Operating Expenses | ||||||||||||||||
Cost of services and sales | 29,031 | (18) | (16) | (101) | - | 28,896 | ||||||||||
Selling, general & administrative expense | 19,808 | (97) | (87) | (53) | (265) | 19,306 | ||||||||||
Depreciation and amortization expense | 10,818 | - | - | (60) | - | 10,758 | ||||||||||
Total Operating Expenses | 59,657 | (115) | (103) | (214) | (265) | 58,960 | ||||||||||
Operating Income | 13,052 | 115 | 103 | (44) | 265 | 13,491 | ||||||||||
Operating income impact of divested operations | - | - | - | 44 | - | 44 | ||||||||||
Equity in earnings of unconsolidated businesses | 458 | - | - | - | - | 458 | ||||||||||
Other income and (expense), net | 220 | - | - | - | - | 220 | ||||||||||
Interest expense | (1,302) | - | - | - | - | (1,302) | ||||||||||
Income Before Provision for Income Taxes | 12,428 | 115 | 103 | - | 265 | 12,911 | ||||||||||
Provision for income taxes | (2,776) | (43) | (22) | - | (101) | (2,942) | ||||||||||
Net Income | $ 9,652 | $ | 72 | $ | 81 | $ | - | $ | 164 | $ 9,969 | ||||||
Net Income Attributable To Noncontrolling Interest | 4,459 | - | - | - | - | 4,459 | ||||||||||
Net Income Attributable To Verizon | 5,193 | 72 | 81 | - | 164 | 5,510 | ||||||||||
Net Income | $ 9,652 | $ | 72 | $ | 81 | $ | - | $ | 164 | $ 9,969 | ||||||
Basic Earnings per Common Share(1) | ||||||||||||||||
Net income attributable to Verizon | $ 1.82 | $ | .02 | $ | .03 | $ | - | $ | .06 | $ 1.93 | ||||||
Diluted Earnings per Common Share(1) | ||||||||||||||||
Net income attributable to Verizon | $ 1.82 | $ | .02 | $ | .03 | $ | - | $ | .06 | $ 1.93 | ||||||
Footnote:
(1) | EPS totals may not add due to rounding. |
Verizon Communications Inc. Condensed Consolidated Statements of Income - Reconciliations |
(dollars in millions, except per share amounts)
Special and Non-Recurring Items | |||||||||||||
Unaudited | 3 Mos. Ended 12/31/08Reported (GAAP) | | Merger Integration Costs | | Severance, Pension and Benefit Charges | | Investment - Related Charges | 3 Mos. Ended 12/31/08Before Special Items | |||||
Operating Revenues | $ 24,645 | $ | - | $ | - | $ | - | $ 24,645 | |||||
Operating Expenses | |||||||||||||
Cost of services and sales | 9,976 | (6) | (65) | - | 9,905 | ||||||||
Selling, general & administrative expense | 7,090 | (53) | (620) | - | 6,417 | ||||||||
Depreciation and amortization expense | 3,747 | - | - | - | 3,747 | ||||||||
Total Operating Expenses | 20,813 | (59) | (685) | - | 20,069 | ||||||||
Operating Income | 3,832 | 59 | 685 | - | 4,576 | ||||||||
Equity in earnings of unconsolidated businesses | 109 | - | - | - | 109 | ||||||||
Other income and (expense), net | 62 | - | - | 48 | 110 | ||||||||
Interest expense | (517) | - | - | - | (517) | ||||||||
Income Before Provision for Income Taxes | 3,486 | 59 | 685 | 48 | 4,278 | ||||||||
Provision for income taxes | (555) | (22) | (261) | (17) | (855) | ||||||||
Net Income | $ 2,931 | $ | 37 | $ | 424 | $ | 31 | $ 3,423 | |||||
Net Income Attributable To Noncontrolling Interest | 1,696 | 2 | - | - | 1,698 | ||||||||
Net Income Attributable To Verizon | 1,235 | 35 | 424 | 31 | 1,725 | ||||||||
Net Income | $ 2,931 | $ | 37 | $ | 424 | $ | 31 | $ 3,423 | |||||
Basic Earnings per Common Share(1) | |||||||||||||
Net income attributable to Verizon | $ .43 | $ | .01 | $ | .15 | $ | .01 | $ .61 | |||||
Diluted Earnings per Common Share(1) | |||||||||||||
Net income attributable to Verizon | $ .43 | $ | .01 | $ | .15 | $ | .01 | $ .61 | |||||
Footnote:
(1) | EPS totals may not add across due to rounding. |
Verizon Communications Inc. Condensed Consolidated Statements of Income - Reconciliations |
(dollars in millions, except per share amounts)
Special and Non-Recurring Items | ||||||||||||||||||||||||
Unaudited | 12 Mos. Ended Reported (GAAP) | Merger Integration Costs | Access Line Spin- Off Related Charges | Investment- Related Charges | Severance, Pension and Benefit | Impact of Divested Operations | 12 Mos. Ended 12/31/08 Before Special Items | |||||||||||||||||
Operating Revenues | $ 97,354 | $ | - | $ | - | $ | - | $ | - | $ | (258 | ) | $ 97,096 | |||||||||||
Operating Expenses | ||||||||||||||||||||||||
Cost of services and sales | 39,007 | (24 | ) | (16 | ) | - | (65 | ) | (101 | ) | 38,801 | |||||||||||||
Selling, general & administrative expense | 26,898 | (150 | ) | (87 | ) | - | (885 | ) | (53 | ) | 25,723 | |||||||||||||
Depreciation and amortization expense | 14,565 | - | - | - | - | (60 | ) | 14,505 | ||||||||||||||||
Total Operating Expenses | 80,470 | (174 | ) | (103 | ) | - | (950 | ) | (214 | ) | 79,029 | |||||||||||||
Operating Income | 16,884 | 174 | 103 | - | 950 | (44 | ) | 18,067 | ||||||||||||||||
Operating income impact of divested operations | - | - | - | - | - | 44 | 44 | |||||||||||||||||
Equity in earnings of unconsolidated businesses | 567 | - | - | - | - | - | 567 | |||||||||||||||||
Other income and (expense), net | 282 | - | - | 48 | - | - | 330 | |||||||||||||||||
Interest expense | (1,819) | - | - | - | - | - | (1,819) | |||||||||||||||||
Income Before Provision for Income Taxes | 15,914 | 174 | 103 | 48 | 950 | - | 17,189 | |||||||||||||||||
Provision for income taxes | (3,331) | (65 | ) | (22 | ) | (17 | ) | (362 | ) | - | (3,797) | |||||||||||||
Net Income | $ 12,583 | $ | 109 | $ | 81 | $ | 31 | $ | 588 | $ | - | $ 13,392 | ||||||||||||
Net Income Attributable To Noncontrolling Interest | 6,155 | 2 | - | - | - | - | 6,157 | |||||||||||||||||
Net Income Attributable To Verizon | 6,428 | 107 | 81 | 31 | 588 | - | 7,235 | |||||||||||||||||
Net Income | $ 12,583 | $ | 109 | $ | 81 | $ | 31 | $ | 588 | $ | - | $ 13,392 | ||||||||||||
Basic Earnings per Common Share(1) | ||||||||||||||||||||||||
Net income attributable to Verizon | $ 2.26 | $ | .03 | $ | .03 | $ | .01 | $ | .21 | $ | - | $ 2.54 | ||||||||||||
Diluted Earnings per Common Share(1) | ||||||||||||||||||||||||
Net income attributable to Verizon | $ 2.26 | $ | .03 | $ | .03 | $ | .01 | $ | .21 | $ | - | $ 2.54 | ||||||||||||
Footnote:
(1) | EPS totals may not add due to rounding. |