Exhibit 99
Verizon Communications Inc.
Selected Consolidated Financial Information
Note:
In order to comply with regulatory conditions related to the acquisition of Alltel Corporation in January 2009, Cellco Partnership d/b/a Verizon Wireless divested overlapping properties in 105 operating markets in 24 states during the first half of 2010. In addition, on July 1, 2010, certain of Verizon Communications Inc.’s (Verizon) local exchange and related landline assets in 14 states were spun off.
As a convenience to investors who may want to consider the effects of these transactions, we are making available unaudited selected consolidated financial information for the past six quarters excluding the results associated with these divested properties from our consolidated operating results. This information is also posted to the Verizon Investor Relations website at www.verizon.com/investor.
(dollars in millions) | ||||||||||||||||||||||||
2009 | 2010 | |||||||||||||||||||||||
Unaudited | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | 1st Quarter | 2nd Quarter | ||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||
Domestic Wireless | $ | 14,690 | $ | 15,029 | $ | 15,331 | $ | 15,275 | $ | 15,312 | $ | 15,697 | ||||||||||||
Wireline | 10,640 | 10,563 | 10,667 | 10,581 | 10,375 | 10,277 | ||||||||||||||||||
Other | (67 | ) | (81 | ) | (64 | ) | (53 | ) | (52 | ) | (330 | ) | ||||||||||||
Total Operating Revenues | 25,263 | 25,511 | 25,934 | 25,803 | 25,635 | 25,644 | ||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||
Cost of services and sales | 9,987 | 10,146 | 10,685 | 12,193 | 10,411 | 11,971 | ||||||||||||||||||
Selling, general & administrative expense | 7,249 | 7,543 | 7,778 | 9,024 | 7,372 | 8,006 | ||||||||||||||||||
Depreciation and amortization expense | 3,811 | 3,870 | 3,945 | 4,022 | 3,916 | 3,968 | ||||||||||||||||||
Total Operating Expenses | 21,047 | 21,559 | 22,408 | 25,239 | 21,699 | 23,945 | ||||||||||||||||||
Operating Income | $ | 4,216 | $ | 3,952 | $ | 3,526 | $ | 564 | $ | 3,936 | $ | 1,699 | ||||||||||||
Operating Income Margin % | 16.7 | 15.5 | 13.6 | 2.2 | 15.4 | 6.6 | ||||||||||||||||||
Adjusted EBITDA | $ | 8,027 | $ | 7,822 | $ | 7,471 | $ | 4,586 | $ | 7,852 | $ | 5,667 | ||||||||||||
Adjusted EBITDA Margin % | 31.8 | 30.7 | 28.8 | 17.8 | 30.6 | 22.1 |
Verizon Communications Inc.
Selected Consolidated Financial Information - Reconciliations
Note:
In order to comply with regulatory conditions related to the acquisition of Alltel Corporation in January 2009, Cellco Partnership d/b/a Verizon Wireless divested overlapping properties in 105 operating markets in 24 states during the first half of 2010. In addition, on July 1, 2010, certain of Verizon Communications Inc.’s (Verizon) local exchange and related landline assets in 14 states were spun off.
As a convenience to investors who may want to consider the effects of these transactions, we are making available unaudited selected consolidated financial information for the past six quarters excluding the results associated with these divested properties from our consolidated operating results. This information is also posted to the Verizon Investor Relations website at www.verizon.com/investor.
(dollars in millions, | ||||||||||||||||||||||||
2009 | 2010 | |||||||||||||||||||||||
Unaudited | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | 1st Quarter | 2nd Quarter | ||||||||||||||||||
Operating Revenues, Reported | $ | 26,591 | $ | 26,861 | $ | 27,265 | $ | 27,091 | $ | 26,913 | $ | 26,773 | ||||||||||||
Less: Impact of Divested Operations | 1,328 | 1,350 | 1,331 | 1,288 | 1,278 | 1,129 | ||||||||||||||||||
Adjusted Operating Revenues | 25,263 | 25,511 | 25,934 | 25,803 | 25,635 | 25,644 | ||||||||||||||||||
Cost of Services and Sales, Reported | 10,308 | 10,481 | 10,996 | 12,514 | 10,717 | 12,239 | ||||||||||||||||||
Less: Impact of Divested Operations | 321 | 335 | 311 | 321 | 306 | 268 | ||||||||||||||||||
Adjusted Cost of Services and Sales | 9,987 | 10,146 | 10,685 | 12,193 | 10,411 | 11,971 | ||||||||||||||||||
Selling, General & Administrative Expense, Reported | 7,561 | 7,871 | 8,111 | 9,407 | 7,724 | 8,319 | ||||||||||||||||||
Less: Impact of Divested Operations | 312 | 328 | 333 | 383 | 352 | 313 | ||||||||||||||||||
Adjusted Selling, General & Administrative Expense | 7,249 | 7,543 | 7,778 | 9,024 | 7,372 | 8,006 | ||||||||||||||||||
Depreciation and Amortization Expense, Reported | 4,028 | 4,091 | 4,172 | 4,241 | 4,121 | 4,176 | ||||||||||||||||||
Less: Impact of Divested Operations | 217 | 221 | 227 | 219 | 205 | 208 | ||||||||||||||||||
Adjusted Depreciation and Amortization Expense | 3,811 | 3,870 | 3,945 | 4,022 | 3,916 | 3,968 | ||||||||||||||||||
Operating Income, Reported | 4,694 | 4,418 | 3,986 | 929 | 4,351 | 2,039 | ||||||||||||||||||
Less: Impact of Divested Operations | 478 | 466 | 460 | 365 | 415 | 340 | ||||||||||||||||||
Adjusted Operating Income | $ | 4,216 | $ | 3,952 | $ | 3,526 | $ | 564 | $ | 3,936 | $ | 1,699 | ||||||||||||
Adjusted Operating Income Margin % | 16.7 | 15.5 | 13.6 | 2.2 | 15.4 | 6.6 | ||||||||||||||||||
Consolidated EBITDA | ||||||||||||||||||||||||
Net Income | $ | 3,210 | $ | 3,160 | $ | 2,887 | $ | 1,101 | $ | 2,284 | $ | 1,547 | ||||||||||||
Add/Subtract: | ||||||||||||||||||||||||
Provision/(Benefit) for Income Taxes | 740 | 610 | 574 | (714 | ) | 1,565 | (49 | ) | ||||||||||||||||
Interest Expense | 925 | 787 | 704 | 686 | 680 | 679 | ||||||||||||||||||
Other Income/(Expense), net | (53 | ) | (11 | ) | (13 | ) | (13 | ) | (45 | ) | (17 | ) | ||||||||||||
Equity in Earnings of Unconsolidated Businesses | (128 | ) | (128 | ) | (166 | ) | (131 | ) | (133 | ) | (121 | ) | ||||||||||||
Operating Income | 4,694 | 4,418 | 3,986 | 929 | 4,351 | 2,039 | ||||||||||||||||||
Add: Depreciation and Amortization Expense, Reported | 4,028 | 4,091 | 4,172 | 4,241 | 4,121 | 4,176 | ||||||||||||||||||
Consolidated EBITDA | 8,722 | 8,509 | 8,158 | 5,170 | 8,472 | 6,215 | ||||||||||||||||||
Less: Impact of Divested Operations | 695 | 687 | 687 | 584 | 620 | 548 | ||||||||||||||||||
Adjusted EBITDA | $ | 8,027 | $ | 7,822 | $ | 7,471 | $ | 4,586 | $ | 7,852 | $ | 5,667 | ||||||||||||
Adjusted EBITDA Margin % | 31.8 | 30.7 | 28.8 | 17.8 | 30.6 | 22.1 | ||||||||||||||||||
Earnings (Loss) Per Share | $ | 0.58 | $ | 0.52 | $ | 0.41 | $ | (0.23 | ) | $ | 0.14 | $ | (0.07 | ) | ||||||||||
Selected Items Included in Earnings Per Share: | ||||||||||||||||||||||||
Merger Integration and Acquisition Related Charges | $ | 0.05 | $ | 0.02 | $ | 0.04 | $ | 0.02 | $ | 0.01 | $ | 0.06 | ||||||||||||
Access Line Spin-Off and Other Charges | — | — | 0.02 | 0.09 | 0.04 | 0.04 | ||||||||||||||||||
Severance, Pension, and Benefit Charges | — | 0.09 | 0.13 | 0.66 | 0.03 | 0.52 | ||||||||||||||||||
Medicare Part D Subsidy Charges | — | — | — | — | 0.34 | — | ||||||||||||||||||
Deferred Revenue Adjustment | — | — | — | — | — | 0.03 | ||||||||||||||||||
Impact of Divested Operations | (0.09 | ) | (0.08 | ) | (0.08 | ) | (0.06 | ) | (0.07 | ) | (0.06 | ) | ||||||||||||
Total Selected Items Included in Earnings (Loss) Per Share | $ | (0.04 | ) | $ | 0.03 | $ | 0.11 | $ | 0.71 | $ | 0.35 | $ | 0.59 | |||||||||||