Verizon Communications (VZ) 10-Q 29 Oct 09 2009 Q3 Quarterly report Financial data

Statement Of Income Alternative

Statement Of Income Alternative (USD $)
In Millions, except Per Share data	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Operating Revenues	$27,265	$24,752	$80,717	$72,709
Operating Expenses
Cost of services and sales (exclusive of items shown below)	10,996	10,048	31,785	29,031
Selling, general and administrative expense	8,111	6,879	23,543	19,808
Depreciation and amortization expense	4,172	3,652	12,291	10,818
Total Operating Expenses	23,279	20,579	67,619	59,657
Operating Income	3,986	4,173	13,098	13,052
Equity in earnings of unconsolidated businesses	166	211	422	458
Other income and (expense), net	13	105	77	220
Interest expense	(704)	(440)	(2,416)	(1,302)
Income Before Provision For Income Taxes	3,461	4,049	11,181	12,428
Provision for income taxes	(574)	(850)	(1,924)	(2,776)
Net Income	2,887	3,199	9,257	9,652
Net income attributable to noncontrolling interest	1,711	1,530	4,953	4,459
Net income attributable to Verizon	1,176	1,669	4,304	5,193
Net Income	$2,887	$3,199	$9,257	$9,652
Basic Earnings Per Common Share
Net income attributable to Verizon	0.41	0.59	1.51	1.82
Weighted-average shares outstanding (in millions)	2,841	2,844	2,841	2,852
Diluted Earnings Per Common Share
Net income attributable to Verizon	0.41	0.59	1.51	1.82
Weighted-average shares outstanding (in millions)	2,841	2,845	2,841	2,854
Dividends declared per common share	0.475	0.46	1.395	1.32

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	Sep. 30, 2009	Dec. 31, 2008
Current assets
Cash and cash equivalents	$1,216	$9,782
Short-term investments	474	509
Accounts receivable, net of allowances of $964 and $941	12,489	11,703
Inventories	2,554	2,092
Prepaid expenses and other	5,290	1,989
Total current assets	22,023	26,075
Plant, property and equipment	226,470	215,605
Less accumulated depreciation	135,636	129,059
Property, Plant and Equipment, Net, Total	90,834	86,546
Investments in unconsolidated businesses	3,808	3,393
Wireless licenses	71,899	61,974
Goodwill	22,190	6,035
Other intangible assets, net	6,948	5,199
Other investments	0	4,781
Other assets	8,702	8,349
Total assets	226,404	202,352
Current liabilities
Debt maturing within one year	5,443	4,993
Accounts payable and accrued liabilities	14,643	13,814
Other	7,219	7,099
Total current liabilities	27,305	25,906
Long-term debt	57,374	46,959
Employee benefit obligations	31,881	32,512
Deferred income taxes	18,652	11,769
Other liabilities	6,610	6,301
Equity
Series preferred stock ($.10 par value; none issued)	0	0
Common stock ($.10 par value; 2,967,610,119 shares and 2,967,610,119 shares issued)	297	297
Contributed capital	40,100	40,291
Reinvested earnings	19,591	19,250
Accumulated other comprehensive loss	(12,058)	(13,372)
Common stock in treasury, at cost	(4,834)	(4,839)
Deferred compensation - employee stock ownership plans and other	90	79
Noncontrolling interest	41,396	37,199
Total equity	84,582	78,905
Total liabilities and equity	$226,404	$202,352

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
In Millions, except Share data	Sep. 30, 2009	Dec. 31, 2008
Accounts receivable, allowances	$964	$941
Series preferred stock, par value	0.1	0.1
Series preferred stock, issued	0	0
Common stock, par value	0.1	0.1
Common stock, shares issued	2,967,610,119	2,967,610,119

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Cash Flows from Operating Activities
Net Income	$9,257	$9,652
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	12,291	10,818
Employee retirement benefits	2,533	1,232
Deferred income taxes	2,672	2,240
Provision for uncollectible accounts	917	724
Equity in earnings of unconsolidated businesses, net of dividends received	21	303
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses	(2,337)	(2,458)
Other, net	(2,236)	(2,577)
Net cash provided by operating activities	23,118	19,934
Cash Flows from Investing Activities
Capital expenditures (including capitalized software)	(12,450)	(12,575)
Acquisitions of licenses, investments and businesses, net of cash acquired	(5,627)	(15,978)
Net change in short-term investments	78	1,238
Other, net	51	(567)
Net cash used in investing activities	(17,948)	(27,882)
Cash Flows from Financing Activities
Proceeds from long-term borrowings	12,040	12,552
Repayments of long-term borrowings and capital lease obligations	(18,966)	(3,398)
Increase (decrease) in short-term obligations, excluding current maturities	(1,454)	4,132
Dividends paid	(3,920)	(3,687)
Proceeds from sale of common stock	0	16
Purchase of common stock for treasury	0	(1,369)
Other, net	(1,436)	(755)
Net cash provided by (used in) financing activities	(13,736)	7,491
Decrease in cash and cash equivalents	(8,566)	(457)
Cash and cash equivalents, beginning of period	9,782	1,153
Cash and cash equivalents, end of period	$1,216	$696

1.Basis of Presentation

1.Basis of Presentation
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
1.Basis of Presentation	1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared based upon Securities and Exchange Commission (SEC) rules that permit reduced disclosure for interim periods. For a more complete discussion of significant accounting policies and certain other information, you should refer to the financial statements included in the Verizon Communications Inc. (Verizon, or the Company) Annual Report on Form 10-K for the year ended December31, 2008. These financial statements reflect all adjustments that are necessary for a fair presentation of results of operations and financial condition for the interim periods shown including normal recurring accruals and other items. We have evaluated subsequent events through October29, 2009, the date these condensed consolidated financial statements were filed with the SEC. The results for the interim periods are not necessarily indicative of results for the full year. We have reclassified prior year amounts to conform to the current year presentation. Recently Adopted Accounting Standards On January1, 2009, we adopted the accounting standard relating to noncontrolling interests in consolidated financial statements, which establishes accounting and reporting standards for the noncontrolling interest in a subsidiary and for the retained interest and gain or loss when a subsidiary is deconsolidated. As required by this standard, we retrospectively changed the classification and presentation of noncontrolling interest in our financial statements for all prior periods, which we previously referred to as minority interest. The adoption of this standard also resulted in a lower effective income tax rate for the Company due to the inclusion of income attributable to Vodafone Group Plc.s (Vodafone), noncontrolling partnership interest in Income before the provision for income taxes. However, the income tax provision was not adjusted as a result of adopting this standard. The adoption of the following accounting standards and updates during the first nine months of 2009 did not result in a significant impact to our condensed consolidated financial statements: On January1, 2009, we adopted the accounting standard relating to business combinations, including assets acquired and liabilities assumed arising from contingencies. This standard requires the use of the acquisition method of accounting, defines the acquirer, establishes the acquisition date and applies to all transactions and other events in which one entity obtains control over one or more other businesses. Upon our adoption of this standard, we were required to expense certain transaction costs and related fees associated with business combinations that were previously capitalized. In addition, with the adoption of this standard, changes to valuation allowances for acquired deferred income tax assets and adjustments to unrecognized tax benefits acquired generally are to be recognized as adjustments to income tax expense rather than goodwill. On January1, 2009, we adopted the accounting standard relating to disclosures about derivative instruments and hedging activities, which r

2.Acquisitions

2.Acquisitions
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
2.Acquisitions	2. Acquisitions Acquisition of Alltel Corporation On June5, 2008, Cellco Partnership doing business as Verizon Wireless (Verizon Wireless) entered into an agreement and plan of merger with Alltel Corporation (Alltel), a provider of wireless voice and data services to consumer and business customers in 34 states, and its controlling stockholder, Atlantis Holdings LLC, an affiliate of private investment firms TPG Capital and GS Capital Partners, to acquire, in an all-cash merger, 100% of the equity of Alltel for cash consideration of $5.9 billion. Verizon Wireless closed the transaction on January9, 2009. We expect to experience substantial operational benefits from the acquisition of Alltel, including additional combined overall cost savings from reduced roaming costs by moving more traffic to our own network, reduced network-related costs from the elimination of duplicate facilities, consolidation of platforms, efficient traffic consolidation, and reduced overall expenses relating to advertising, overhead and headcount. We expect reduced combined capital expenditures as a result of greater economies of scale and the rationalization of network assets. We believe that the use of the same technology platform is facilitating the integration of Alltels network operations with ours. The acquisition of Alltel has been accounted for as a business combination under the acquisition method. We have commenced the appraisals necessary to assess the fair values of the tangible and intangible assets acquired and liabilities assumed, the fair value of noncontrolling interests, and the amount of goodwill recognized as of the acquisition date. As the values of certain assets, liabilities and noncontrolling interests are preliminary in nature, they are subject to adjustment as additional information is obtained about the facts and circumstances that existed as of the acquisition date. The valuations will be finalized within 12 months of the close of the acquisition. When the valuations are finalized, any changes to the preliminary valuation of assets acquired, liabilities or noncontrolling interests assumed may result in significant adjustments to the fair value of the net identifiable assets acquired and goodwill. The fair values of the assets acquired and liabilities assumed were preliminarily determined using the income, cost, and market approaches. The fair value measurements were primarily based on significant inputs that are not observable in the market other than interest rate swaps (see Note 5) and long-term debt assumed in the acquisition. The income approach was primarily used to value the intangible assets, consisting primarily of wireless licenses and customer relationships. The income approach indicates value for a subject asset based on the present value of cash flows projected to be generated by the asset. Projected cash flows are discounted at a required market rate of return that reflects the relative risk of achieving the cash flows and the time value of money. The cost approach, which estimates value by determining the current cost of replacing an asset with another of equivalent economic utility, was used, as appropr

3.Dispositions

3.Dispositions
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
3.Dispositions	3. Dispositions 2009 On May13, 2009, we announced that we will spin-off a subsidiary of Verizon (Spinco) to our stockholders.Spinco will hold defined assets and liabilities of the local exchange business and related landline activities of Verizon in Arizona, Idaho, Illinois, Indiana, Michigan, Nevada, North Carolina, Ohio, Oregon, South Carolina, Washington, West Virginia and Wisconsin, and in portions of California bordering Arizona, Nevada and Oregon, including Internet access and long distance services and broadband video provided to designated customers in those areas.Immediately following the spin-off, Spinco will merge with Frontier Communications Corporation (Frontier) pursuant to a definitive agreement with Frontier, and Frontier will be the surviving corporation.The transactions do not involve any assets or liabilities of Verizon Wireless. Depending on the trading prices of Frontier common stock prior to the closing of the merger, Verizon stockholders will collectively own between approximately 66% and 71% of Frontiers outstanding equity immediately following the closing of the merger, and Frontier stockholders will collectively own between approximately 29% and 34% of Frontiers outstanding equity immediately following the closing of the merger (in each case, before any closing adjustments).The actual number of shares of common stock to be issued by Frontier in the merger will be calculated based upon several factors, including the average trading price of Frontier common stock during a pre-closing measuring period (subject to a collar) and other closing adjustments.Verizon will not own any shares of Frontier after the merger. Both the spin-off and merger are expected to qualify as tax-free transactions, except to the extent that cash is paid to Verizon stockholders in lieu of fractional shares. In connection with the spin-off, Verizon will receive from Spinco approximately $3.3 billion in value through a combination of a special cash payment to Verizon, a reduction in Verizons consolidated indebtedness, and, in certain circumstances, the issuance to Verizon of debt securities of Spinco.In the merger, Verizon stockholders are expected to receive approximately $5.3 billion of Frontier common stock, assuming the average trading price of Frontier common stock during the pre-closing measuring period is within the collar and no closing adjustments. The transaction is subject to the satisfaction of certain conditions, including receipt of state and federal telecommunications regulatory approvals. If the conditions are satisfied, we expect this transaction to close during the second quarter of 2010. During the three and nine months ended September30, 2009, we recorded pretax charges of $62 million ($41 million after-tax), for costs incurred related to the separation of the wireline facilities and operations in the markets to be divested to operate on a stand-alone basis subsequent to the closing of the transaction with Frontier, as well as professional advisory and legal fees in connection with this transaction. 2008 On March31, 2008, we completed the spin-off of the shares of Northern New England Spinco

4.Wireless Licenses, Goodwill a

4.Wireless Licenses, Goodwill and Other Intangible Assets
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
4.Wireless Licenses, Goodwill and Other Intangible Assets	4. Wireless Licenses, Goodwill and Other Intangible Assets Wireless Licenses Changes in the carrying amount of wireless licenses are as follows: (dollars in millions) Balance at December31, 2008 $ 61,974 Wireless licenses acquired (Note 2) 9,444 Capitalized interest on wireless licenses 548 Reclassifications, adjustments and other (67 ) Balance at September30, 2009 $ 71,899 Reclassifications, adjustments and other primarily include the reclassification of wireless licenses associated with the pre-merger operations of Verizon Wireless that are included in the Alltel Divestiture Markets (see Note 2) and included in Prepaid expenses and other in the accompanying condensed consolidated financial statements. As of September30, 2009, and December31, 2008, $12.1 billion and $12.4 billion, respectively, of wireless licenses were under development for commercial service for which we are capitalizing interest costs. Renewals of licenses have occurred routinely and at nominal costs, which are expensed as incurred. Moreover, we have determined that there are currently no legal, regulatory, contractual, competitive, economic or other factors that limit the useful life of our wireless licenses. As a result, we treat the wireless licenses as an indefinite-lived intangible asset. The average remaining renewal period of our wireless license portfolio was 8.1 years as of September30, 2009. Goodwill Changes in the carrying amount of goodwill are as follows: (dollars in millions) Domestic Wireless Wireline Total Balance at December31, 2008 $ 1,297 $ 4,738 $ 6,035 Acquisitions (Note 2) 16,207 16,207 Reclassifications, adjustments and other (49 ) (3 ) (52 ) Balance at September30, 2009 $ 17,455 $ 4,735 $ 22,190 Reclassifications, adjustments and other primarily include the reclassification of goodwill associated with the pre-merger operations of Verizon Wireless that are included in the Alltel Divestiture Markets (see Note 2) as held for sale and included in Prepaid expenses and other in the accompanying condensed consolidated financial statements. Other Intangible Assets The following table displays the details of other intangible assets: At September30, 2009 At December31, 2008 (dollars in millions) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Other intangible assets: Customer lists (6 to 8 years) $ 3,133 $ (865 ) $ 2,268 $ 1,415 $ (595 ) $ 820 Non-network internal-use software (2 to 7 years) 8,335 (4,244 ) 4,091 8,099 (4,102 ) 3,997 Other (1 to 25 years) 855 (266 ) 589 465 (83 ) 382 Total $ 12,323 $ (5,375 ) $ 6,948 $ 9,979 $ (4,780 ) $ 5,199 Customer lists, Non-network software and Other at September30, 2009, include $2,392 million related to

5.Fair Value Measurements

5.Fair Value Measurements
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
5.Fair Value Measurements	5. Fair Value Measurements The following table presents the assets measured at fair value on a recurring basis as of September30, 2009: (dollars in millions) Level1(1) Level2(2) Level3(3) Total Assets: Short-term investments $ 267 $ 207 $ $ 474 Investments in unconsolidated businesses 376 376 Other assets 1,422 1,422 (1) quoted prices in active markets for identical assets or liabilities (2) observable inputs other than quoted prices in active markets for identical assets and liabilities (3) no observable pricing inputs in the market Upon closing of the Alltel acquisition (see Note 2), the $4.8 billion investment in Alltel debt, which was classified as Level 3 at December31, 2008, became an intercompany loan and is eliminated in consolidation. The fair value of our short-term and long-term debt, excluding capital leases, is determined based on market quotes for similar terms and maturities or future cash flows discounted at current rates. The fair value of our long-term and short-term debt, excluding capital leases, was approximately $68 billion and $53 billion at September30, 2009 and December31, 2008, respectively, as compared to the carrying value of approximately $63 billion and $52 billion at September30, 2009 and December31, 2008, respectively. Derivative Instruments We have entered into derivative transactions primarily to manage our exposure to fluctuations in foreign currency exchange rates, interest rates, equity and commodity prices. We employ risk management strategies which may include the use of a variety of derivatives including cross currency swaps, foreign currency and prepaid forwards and collars, equity options, interest rate and commodity swap agreements and interest rate locks. We do not hold derivatives for trading purposes. We measure all derivatives, including derivatives embedded in other financial instruments, at fair value and recognize them as either assets or liabilities on our consolidated balance sheets. The derivative instruments discussed below are valued primarily using models based on readily observable market parameters for all substantial terms of our derivative contracts and thus are classified as Level 2. Changes in the fair values of derivative instruments not qualifying as hedges or any ineffective portion of hedges are recognized in earnings in the current period. Changes in the fair values of derivative instruments used effectively as fair value hedges are recognized in earnings, along with changes in the fair value of the hedged item. Changes in the fair value of the effective portions of cash flow hedges are reported in Other comprehensive income (loss) and recognized in earnings when the hedged item is recognized in earnings. Interest Rate Swaps We have entered into domestic interest rate swaps to achieve a targeted mix of fixed and variable rate debt, where we principally receive fixed rates and pay variable rates based on London Interbank Offered Rate (LIBOR). These swaps are designated as fair value hedges and hedge against changes in the

6.Debt

6.Debt
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
6.Debt	6. Debt Verizon Wireless On December19, 2008, Verizon Wireless and Verizon Wireless Capital LLC, as the borrowers, entered into a $17.0 billion credit facility (Bridge Facility). On January9, 2009, Verizon Wireless borrowed $12.4 billion under the Bridge Facility in order to complete the acquisition of Alltel and repay certain of Alltels outstanding debt as described below. Verizon Wireless used cash generated from operations and the net proceeds from the sale of the notes described below to repay all of the borrowings under the Bridge Facility. No borrowings are outstanding under the Bridge Facility and the commitments under the Bridge Facility have been terminated. In connection with the Alltel acquisition, Verizon Wireless assumed approximately $23.9 billion of debt, of which approximately $2.3 billion remains outstanding to third parties as of September30, 2009. Under the terms of a tender offer that was completed on March20, 2009, $0.2 billion aggregate principal amount was redeemed for a loss that was not significant. In February 2009, Verizon Wireless and Verizon Wireless Capital LLC co-issued $4.3 billion aggregate principal amount of three and five-year fixed rate notes in a private placement resulting in cash proceeds of $4.2 billion, net of discounts and issuance costs. In May 2009, Verizon Wireless and Verizon Wireless Capital LLC co-issued $4.0 billion aggregate principal amount of two-year fixed and floating rate notes in a private placement resulting in cash proceeds of approximately $4.0 billion, net of discounts and issuance costs. In June 2009, Verizon Wireless issued $1.0 billion aggregate principal amount of floating rate notes due 2011. Commencing on December27, 2009 and on each quarterly interest payment date thereafter, both the holders of the notes and Verizon Wireless have the right to require settlement of all or a portion of these notes at par. Accordingly, these notes are classified as current maturities in the condensed consolidated balance sheet. On August28, 2009, Verizon Wireless repaid $0.4 billion due under a three-year term loan facility, reducing the outstanding borrowings to $4.0 billion. On October14, 2009, a registration statement of Verizon Wireless and Verizon Wireless Capital LLC, which registers a total of approximately $11.8 billion of new notes, was declared effective by the SEC, and Verizon Wireless and Verizon Wireless Capital LLC commenced an exchange offer to exchange the privately placed notes issued in November of 2008, as well as February and May of 2009 for new notes with similar terms, pursuant to the requirements of registration rights agreements. These condensed consolidated financial statements do not constitute an offer of any securities for sale. Verizon Communications In March 2009, Verizon issued $1.8 billion of 6.35% notes due 2019 and $1.0 billion of 7.35% notes due 2039, resulting in cash proceeds of $2.7 billion, net of discounts and issuance costs, which were used to reduce our commercial paper borrowings, repay maturing debt and for general corporate purposes. In December 2008, we entered into a $0.2 billion vendor provided credit facility

7.Stock-Based Compensation

7.Stock-Based Compensation
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
7.Stock-Based Compensation	7. Stock-Based Compensation Verizon Communications Long-Term Incentive Plan In May 2009, Verizon shareholders approved the 2009 Verizon Communications Inc. Long-Term Incentive Plan (the Plan) which permits the granting of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance share units and other awards. The maximum number of shares available for awards from the Plan is 115million shares. The Plan amends and restates the previous long-term incentive plan. Restricted Stock Units The Plan provides for grants of Restricted Stock Units (RSUs) that generally vest at the end of the third year after the grant. The RSUs are classified as liability awards because the RSUs will be paid in cash upon vesting. The RSU award liability is measured at its fair value at the end of each reporting period and, therefore, will fluctuate based on the performance of Verizons stock. Dividend equivalent units are also paid to participants at the time the RSU award is paid. The following table summarizes Verizons Restricted Stock Unit activity: (shares in thousands) RestrictedStock Units Weighted-Average Grant-Date Fair Value Outstanding, beginning of year 21,820 $ 35.01 Granted 6,762 31.74 Payments (9,352 ) 31.64 Cancelled/Forfeited (97 ) 35.59 Outstanding, September30, 2009 19,133 35.50 Performance Share Units The Plan also provides for grants of Performance Share Units (PSUs) that generally vest at the end of the third year after the grant if certain threshold performance requirements have been satisfied. The PSUs are classified as liability awards because the PSUs will be paid in cash upon vesting. The PSU award liability is measured at its fair value at the end of each reporting period and, therefore, will fluctuate based on the price of Verizons stock as well as performance relative to the targets. Dividend equivalent units are also paid to participants at the time that the PSU award is determined and paid, and in the same proportion as the PSU award. The following table summarizes Verizons Performance Share Unit activity: (shares in thousands) PerformanceShare Units Weighted-Average Grant-Date Fair Value Outstanding, beginning of year 33,214 $ 35.04 Granted 13,559 31.71 Payments (17,141 ) 31.58 Cancelled/Forfeited (222 ) 34.21 Outstanding, September30, 2009 29,410 35.53 As of September30, 2009, unrecognized compensation expense related to the unvested portion of RSUs and PSUs was approximately $354 million and is expected to be recognized over a weighted-average period of approximately two years. Verizon Wireless Long-Term Incentive Plan The 2000 Verizon Wireless Long-Term Incentive Plan (the Wireless Plan) provides compensation opportunities to eligible employees and other participating affiliates of Verizon Wireless. The Wireless Plan provides rewards that are tied to the long-term performance of Verizon Wireless. Under the Wireless Pla

8.Employee Benefits

8.Employee Benefits
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
8.Employee Benefits	8. Employee Benefits We maintain noncontributory defined benefit pension plans for many of our employees. In addition, we maintain postretirement health care and life insurance plans for certain of our retirees and their dependents, which are both contributory and non-contributory and include a limit on the companys share of cost for certain recent and future retirees. Net Periodic Benefit (Income) Cost The following table summarizes the benefit (income) cost related to our pension and postretirement health care and life insurance plans: (dollars in millions) Pension HealthCareandLife Three Months Ended September30, 2009 2008 2009 2008 Service cost $ 96 $ 95 $ 78 $ 72 Interest cost 481 492 441 394 Expected return on plan assets (734 ) (796 ) (76 ) (81 ) Amortization of prior service cost 28 17 101 99 Actuarial loss, net 28 9 60 34 Net periodic benefit (income) cost (101 ) (183 ) 604 518 Settlement loss 610 89 Total (income) cost $ 509 $ (94 ) $ 604 $ 518 (dollars in millions) Pension HealthCareandLife Nine Months Ended September30, 2009 2008 2009 2008 Service cost $ 288 $ 285 $ 234 $ 232 Interest cost 1,443 1,472 1,324 1,249 Expected return on plan assets (2,203 ) (2,390 ) (227 ) (241 ) Amortization of prior service cost 84 44 301 296 Actuarial loss, net 84 29 179 167 Net periodic benefit (income) cost (304 ) (560 ) 1,811 1,703 Settlement loss 1,026 89 Total (income) cost $ 722 $ (471 ) $ 1,811 $ 1,703 Severance, Pension and Benefit Charges During the three and nine months ended September30, 2009, we recorded pension settlement losses of $610 million ($372 million after-tax) and $1,026 million ($625 million after-tax), respectively, related to employees that received lump-sum distributions, primarily resulting from our previous separation plans in which prescribed payment thresholds have been reached. During the three and nine months ended September30, 2008, we recorded net pretax severance, pension and benefits charges of $265 million ($164 million after-tax). These charges included an accrual of $176 million ($110 million after-tax) for employee severance in connection with the separation of approximately 2,700 management employees that were terminated during the fourth quarter of 2008, as well as pension settlement losses of $89 million ($54 million after-tax) related to employees that received lump-sum distributions, primarily resulting from our separation plans in which prescribed payment thresholds have been reached. Employer Contributions During the three months ended September30, 2009, we contributed $146 million to our qualified pension trusts, $24 million to our n

9.Equity and Comprehensive Inco

9.Equity and Comprehensive Income
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
9.Equity and Comprehensive Income	9. Equity and Comprehensive Income Equity Changes in the components of equity were as follows: Nine months ended September30, 2009 (dollars in millions) Attributable to Verizon Noncontrolling Interest Total Equity Balance at beginning of period $ 41,706 $ 37,199 $ 78,905 Net income 4,304 4,953 9,257 Other comprehensive income (loss) 1,314 75 1,389 Comprehensive income 5,618 5,028 10,646 Contributed capital (191 ) (155 ) (346 ) Acquisition of noncontrolling interests 308 308 Dividends declared (3,963 ) (3,963 ) Common stock in treasury 5 5 Distributions and other 11 (984 ) (973 ) Balance at end of period $ 43,186 $ 41,396 $ 84,582 Noncontrolling interest included in our condensed consolidated financial statements primarily include Vodafones 45% ownership interest in our Verizon Wireless joint venture. Comprehensive Income Comprehensive income (loss) consists of net income and other gains and losses affecting equity that, under generally accepted accounting principles, are excluded from net income. Significant changes in the components of Other comprehensive income (loss), net of income tax expense (benefit), are described below. Threemonthsended September30, Ninemonthsended September30, (dollars in millions) 2009 2008 2009 2008 Net income $ 2,887 $ 3,199 $ 9,257 $ 9,652 Other Comprehensive Income (Loss), Net of Taxes Foreign currency translation adjustments 134 (277 ) 164 (128 ) Net unrealized gain (loss) on cash flow hedges (5 ) 1 80 2 Unrealized gain (loss) on marketable securities 65 (55 ) 89 (99 ) Defined benefit pension and postretirement plans 490 287 981 493 Other comprehensive income (loss) attributable to Verizon 684 (44 ) 1,314 268 Other comprehensive income (loss) attributable to noncontrolling interest (7 ) (3 ) 75 (5 ) Total Comprehensive Income $ 3,564 $ 3,152 $ 10,646 $ 9,915 Comprehensive income attributable to noncontrolling interest $ 1,704 $ 1,527 $ 5,028 $ 4,454 Comprehensive income attributable to Verizon 1,860 1,625 5,618 5,461 Total Comprehensive Income $ 3,564 $ 3,152 $ 10,646 $ 9,915 Other comprehensive income attributable to noncontrolling interest primarily reflects activity related to the cross currency swaps (see Note 5). The components of Accumulated other comprehensive loss were as follows: (dollars in millions) AtSeptember30, 2009 AtDecember31, 2008 Foreign currency translation adjustments $ 1,100 $ 936 Net unrealized gain (loss) on cash flow hedges 30 (50 ) Unrealized gain (loss) on mar

10.Segment Information

10.Segment Information
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
10.Segment Information	10. Segment Information Reportable Segments We have two reportable segments, which we operate and manage as strategic business units and organize by products and services. We measure and evaluate our reportable segments based on segment operating income. The use of segment operating income is consistent with the chief operating decision makers assessment of segment performance. Beginning in 2009, we changed the manner in which the Wireline segment reports Operating revenues to align our financial presentation to the continued evolution of the wireline business. Accordingly, there are four marketing units within the Wireline segment: Mass Markets, Global Enterprise, Global Wholesale and Other. Mass Markets includes consumer and small business revenues. Global Enterprise includes all retail revenue from enterprise customers, both domestic and international. Global Wholesale includes all wholesale revenues, both domestic and international. Other primarily includes operator services, payphone services and revenues from the former MCI mass markets customer base. Corporate, eliminations and other includes unallocated corporate expenses, intersegment eliminations recorded in consolidation, the results of other businesses, such as our investments in unconsolidated businesses, lease financing, and other adjustments and gains and losses that are not allocated in assessing segment performance due to their non-recurring or non-operational nature. Although such transactions are excluded from the business segment results, they are included in reported consolidated earnings. Gains and losses that are not individually significant are included in all segment results, since these items are included in the chief operating decision makers assessment of segment performance. The reconciliation of segment operating revenues and expenses to consolidated operating revenues and expenses below also include those items of a non-recurring or non-operational nature. We exclude from segment results the effects of certain items that management does not consider in assessing segment performance, primarily because of their non-recurring or non-operational nature. We believe that this presentation will assist readers in better understanding our results of operations and trends from period to period. During the first quarter of 2008, we completed the spin-off of our local exchange and related business assets in Maine, New Hampshire and Vermont (see Note 3). Accordingly, Wireline results from these operations have been reclassified to Corporate and Other to reflect comparable operating results. Our segments and their principal activities consist of the following: Segment Description DomesticWireless Domestic Wirelesss products and services include wireless voice, data services and other value-added services and equipment sales across the United States. Wireline Wirelines communications services include voice, Internet access, broadband video and data, next generation Internet Protocol network services, network access, long distance and other services. We provide these services to consumers, carriers, businesses and go

11.Commitments and Contingencie

11.Commitments and Contingencies
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
11.Commitments and Contingencies	11. Commitments and Contingencies Several state and federal regulatory proceedings may require our telephone operations to pay penalties or to refund to customers a portion of the revenues collected in the current and prior periods. There are also various legal actions pending to which we are a party and claims which, if asserted, may lead to other legal actions. We have established reserves for specific liabilities in connection with regulatory and legal actions, including environmental matters that we currently deem to be probable and estimable. We do not expect that the ultimate resolution of pending regulatory and legal matters in future periods, including the Hicksville matter described below, will have a material effect on our financial condition, but it could have a material effect on our results of operations for a given reporting period. During 2003, under a government-approved plan, remediation commenced at the site of a former Sylvania facility in Hicksville, New York that processed nuclear fuel rods in the 1950s and 1960s. Remediation beyond original expectations proved to be necessary and a reassessment of the anticipated remediation costs was conducted. A reassessment of costs related to remediation efforts at several other former facilities was also undertaken. In September 2005, the Army Corps of Engineers (ACE) accepted the Hicksville site into the Formerly Utilized Sites Remedial Action Program. This may result in the ACE performing some or all of the remediation effort for the Hicksville site with a corresponding decrease in costs to Verizon. To the extent that the ACE assumes responsibility for remedial work at the Hicksville site, an adjustment to a reserve previously established for the remediation may be made. Adjustments to the reserve may also be made based upon actual conditions discovered during the remediation at any of the sites requiring remediation. In connection with the execution of agreements for the sales of businesses and investments, Verizon ordinarily provides representations and warranties to the purchasers pertaining to a variety of nonfinancial matters, such as ownership of the securities being sold, as well as indemnity from certain financial losses. Subsequent to the sale of Verizon Information Services Canada in 2004, we continue to provide a guarantee to publish directories, which was issued when the directory business was purchased in 2001 and had a 30-year term (before extensions). The preexisting guarantee continues, without modification, despite the subsequent sale of Verizon Information Services Canada and the spin-off of our domestic print and Internet yellow pages directories business. The possible financial impact of the guarantee, which is not expected to be adverse, cannot be reasonably estimated since a variety of the potential outcomes available under the guarantee result in costs and revenues or benefits that may offset each other. In addition, performance under the guarantee is not likely.

Document Information

Document Information
	9 Months Ended Sep. 30, 2009 USD / shares
Document Information [Text Block]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-09-30

Entity Information

Entity Information (USD $)
	9 Months Ended Sep. 30, 2009
Entity [Text Block]
Trading Symbol	VZ
Entity Registrant Name	VERIZON COMMUNICATIONS INC
Entity Central Index Key	0000732712
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	2,840,648,086