Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 31, 2017 | Jun. 30, 2016 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | VZ | ||
Entity Registrant Name | VERIZON COMMUNICATIONS INC | ||
Entity Central Index Key | 732,712 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 4,076,731,752 | ||
Entity Public Float | $ 227,584,340,225 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Revenues | |||
Service revenues and other | $ 108,468 | $ 114,696 | $ 116,122 |
Wireless equipment revenues | 17,512 | 16,924 | 10,957 |
Total Operating Revenues | 125,980 | 131,620 | 127,079 |
Operating Expenses | |||
Cost of services (exclusive of items shown below) | 29,186 | 29,438 | 28,306 |
Wireless cost of equipment | 22,238 | 23,119 | 21,625 |
Selling, general and administrative expense, net | 31,569 | 29,986 | 41,016 |
Depreciation and amortization expense | 15,928 | 16,017 | 16,533 |
Total Operating Expenses | 98,921 | 98,560 | 107,480 |
Operating Income | 27,059 | 33,060 | 19,599 |
Equity in (losses) earnings of unconsolidated businesses | (98) | (86) | 1,780 |
Other income and (expense), net | (1,599) | 186 | (1,194) |
Interest expense | (4,376) | (4,920) | (4,915) |
Income Before Provision For Income Taxes | 20,986 | 28,240 | 15,270 |
Provision for income taxes | (7,378) | (9,865) | (3,314) |
Net Income | 13,608 | 18,375 | 11,956 |
Net income attributable to noncontrolling interests | 481 | 496 | 2,331 |
Net income attributable to Verizon | $ 13,127 | $ 17,879 | $ 9,625 |
Basic Earnings Per Common Share | |||
Net income attributable to Verizon | $ 3.22 | $ 4.38 | $ 2.42 |
Weighted-average shares outstanding (in millions) | 4,080 | 4,085 | 3,974 |
Diluted Earnings Per Common Share | |||
Net income attributable to Verizon | $ 3.21 | $ 4.37 | $ 2.42 |
Weighted-average shares outstanding (in millions) | 4,086 | 4,093 | 3,981 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Income | $ 13,608 | $ 18,375 | $ 11,956 |
Other Comprehensive Income, net of taxes | |||
Foreign currency translation adjustments | (159) | (208) | (1,199) |
Unrealized gains (losses) on cash flow hedges | 198 | (194) | (197) |
Unrealized losses on marketable securities | (55) | (11) | (5) |
Defined benefit pension and postretirement plans | 2,139 | (148) | 154 |
Other comprehensive income (loss) attributable to Verizon | 2,123 | (561) | (1,247) |
Other comprehensive loss attributable to noncontrolling interests | (23) | ||
Total Comprehensive Income | 15,731 | 17,814 | 10,686 |
Comprehensive income attributable to noncontrolling interests | 481 | 496 | 2,308 |
Comprehensive income attributable to Verizon | $ 15,250 | $ 17,318 | $ 8,378 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 2,880 | $ 4,470 |
Short-term investments | 350 | |
Accounts receivable, net of allowances of $845 and $882 | 17,513 | 13,457 |
Inventories | 1,202 | 1,252 |
Assets held for sale | 882 | 792 |
Prepaid expenses and other | 3,918 | 2,034 |
Total current assets | 26,395 | 22,355 |
Plant, property and equipment | 232,215 | 220,163 |
Less accumulated depreciation | 147,464 | 136,622 |
Plant, property and equipment, net | 84,751 | 83,541 |
Investments in unconsolidated businesses | 1,110 | 796 |
Wireless licenses | 86,673 | 86,575 |
Goodwill | 27,205 | 25,331 |
Other intangible assets, net | 8,897 | 7,592 |
Non-current assets held for sale | 613 | 10,267 |
Other assets | 8,536 | 7,718 |
Total assets | 244,180 | 244,175 |
Current liabilities | ||
Debt maturing within one year | 2,645 | 6,489 |
Accounts payable and accrued liabilities | 19,593 | 19,362 |
Liabilities related to assets held for sale | 24 | 463 |
Other | 8,078 | 8,738 |
Total current liabilities | 30,340 | 35,052 |
Long-term debt | 105,433 | 103,240 |
Employee benefit obligations | 26,166 | 29,957 |
Deferred income taxes | 45,964 | 45,484 |
Non-current liabilities related to assets held for sale | 6 | 959 |
Other liabilities | 12,239 | 11,641 |
Equity | ||
Series preferred stock ($.10 par value; none issued) | ||
Common stock ($.10 par value; 4,242,374,240 shares issued in each period) | 424 | 424 |
Contributed capital | 11,182 | 11,196 |
Reinvested earnings | 15,059 | 11,246 |
Accumulated other comprehensive income | 2,673 | 550 |
Common stock in treasury, at cost | (7,263) | (7,416) |
Deferred compensation - employee stock ownership plans and other | 449 | 428 |
Noncontrolling interests | 1,508 | 1,414 |
Total equity | 24,032 | 17,842 |
Total liabilities and equity | $ 244,180 | $ 244,175 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts receivable, allowances | $ 845 | $ 882 |
Series preferred stock, par value | $ 0.10 | $ 0.10 |
Series preferred stock, issued | 0 | 0 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares issued | 4,242,374,240 | 4,242,374,240 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from Operating Activities | |||
Net Income | $ 13,608 | $ 18,375 | $ 11,956 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 15,928 | 16,017 | 16,533 |
Employee retirement benefits | 2,705 | (1,747) | 8,130 |
Deferred income taxes | (1,063) | 3,516 | (92) |
Provision for uncollectible accounts | 1,420 | 1,610 | 1,095 |
Equity in losses (earnings) of unconsolidated businesses, net of dividends received | 138 | 127 | (1,743) |
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses | |||
Accounts receivable | (5,067) | (945) | (2,745) |
Inventories | 61 | (99) | (132) |
Other assets | 449 | 942 | (695) |
Accounts payable and accrued liabilities | (1,079) | 2,545 | 1,412 |
Other, net | (4,385) | (1,411) | (3,088) |
Net cash provided by operating activities | 22,715 | 38,930 | 30,631 |
Cash Flows from Investing Activities | |||
Capital expenditures (including capitalized software) | (17,059) | (17,775) | (17,191) |
Acquisitions of businesses, net of cash acquired | (3,765) | (3,545) | (182) |
Acquisitions of wireless licenses | (534) | (9,942) | (354) |
Proceeds from dispositions of wireless licenses | 2,367 | ||
Proceeds from dispositions of businesses | 9,882 | 48 | 120 |
Other, net | 493 | 1,171 | (616) |
Net cash used in investing activities | (10,983) | (30,043) | (15,856) |
Cash Flows from Financing Activities | |||
Proceeds from long-term borrowings | 12,964 | 6,667 | 30,967 |
Proceeds from asset-backed long-term borrowings | 4,986 | ||
Repayments of long-term borrowings and capital lease obligations | (19,159) | (9,340) | (17,669) |
Decrease in short-term obligations, excluding current maturities | (149) | (344) | (475) |
Dividends paid | (9,262) | (8,538) | (7,803) |
Proceeds from sale of common stock | 3 | 40 | 34 |
Purchase of common stock for treasury | (5,134) | ||
Acquisition of noncontrolling interest | (58,886) | ||
Other, net | (2,705) | 1,634 | (3,873) |
Net cash used in financing activities | (13,322) | (15,015) | (57,705) |
Decrease in cash and cash equivalents | (1,590) | (6,128) | (42,930) |
Cash and cash equivalents, beginning of period | 4,470 | 10,598 | 53,528 |
Cash and cash equivalents, end of period | $ 2,880 | $ 4,470 | $ 10,598 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Contributed Capital | Reinvested Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Deferred Compensation-ESOPs and Other | Noncontrolling Interests |
Balance at beginning of year (in shares) at Dec. 31, 2013 | 2,967,610 | (105,610) | ||||||
Balance at beginning of year at Dec. 31, 2013 | $ 297 | $ 37,939 | $ 1,782 | $ 2,358 | $ (3,961) | $ 421 | $ 56,580 | |
Foreign currency translation adjustments | $ (1,199) | (1,199) | ||||||
Acquisition of noncontrolling interest (Note 2) | (26,898) | (55,960) | ||||||
Net income attributable to Verizon | 9,625 | 9,625 | ||||||
Restricted stock equity grant | 166 | |||||||
Unrealized gains (losses) on cash flow hedges | (197) | |||||||
Net income attributable to noncontrolling interests | 2,331 | 2,331 | ||||||
Dividends declared ($2.285, $2.23, $2.16) per share | (8,960) | |||||||
Amortization | (163) | |||||||
Common shares issued (Note 2) (in shares) | 1,274,764 | |||||||
Employee plans (Note 14) (in Shares) | 14,132 | |||||||
Unrealized losses on marketable securities | (5) | (5) | ||||||
Other comprehensive loss | (23) | (23) | ||||||
Employee plans (Note 14) | $ 541 | |||||||
Defined benefit pension and postretirement plans | 154 | 154 | ||||||
Total comprehensive income | 2,308 | 2,308 | ||||||
Shareowner plans (in shares)(Note 14) | 4,105 | |||||||
Other comprehensive income (loss) | (1,247) | |||||||
Distributions and other | (1,550) | |||||||
Shareowner plans (Note 14) | $ 157 | |||||||
Other (in Shares) | (37) | |||||||
Other | 114 | |||||||
Balance at end of year (in shares) at Dec. 31, 2014 | 4,242,374 | (87,410) | ||||||
Balance at end of year at Dec. 31, 2014 | 13,676 | $ 424 | 11,155 | 2,447 | 1,111 | $ (3,263) | 424 | 1,378 |
Common shares issued (Note 2) | $ 127 | |||||||
Shares purchased, in Shares | (104,402) | |||||||
Foreign currency translation adjustments | (208) | (208) | ||||||
Net income attributable to Verizon | 17,879 | 17,879 | ||||||
Restricted stock equity grant | 208 | |||||||
Shares purchased | $ (5,134) | |||||||
Unrealized gains (losses) on cash flow hedges | (194) | |||||||
Net income attributable to noncontrolling interests | 496 | 496 | ||||||
Dividends declared ($2.285, $2.23, $2.16) per share | (9,080) | |||||||
Amortization | (204) | |||||||
Employee plans (Note 14) (in Shares) | 17,072 | |||||||
Unrealized losses on marketable securities | (11) | (11) | ||||||
Employee plans (Note 14) | $ 740 | |||||||
Defined benefit pension and postretirement plans | (148) | (148) | ||||||
Total comprehensive income | $ 496 | 496 | ||||||
Shareowner plans (in shares)(Note 14) | 22,600 | 5,541 | ||||||
Other comprehensive income (loss) | (561) | |||||||
Distributions and other | (460) | |||||||
Shareowner plans (Note 14) | $ 900 | $ 241 | ||||||
Other | 41 | |||||||
Balance at end of year (in shares) at Dec. 31, 2015 | 4,242,374 | (169,199) | ||||||
Balance at end of year at Dec. 31, 2015 | 17,842 | $ 424 | 11,196 | 11,246 | 550 | $ (7,416) | 428 | 1,414 |
Foreign currency translation adjustments | (159) | (159) | ||||||
Net income attributable to Verizon | 13,127 | 13,127 | ||||||
Restricted stock equity grant | 223 | |||||||
Unrealized gains (losses) on cash flow hedges | 198 | |||||||
Net income attributable to noncontrolling interests | 481 | 481 | ||||||
Dividends declared ($2.285, $2.23, $2.16) per share | (9,314) | |||||||
Amortization | (202) | |||||||
Employee plans (Note 14) (in Shares) | 3,439 | |||||||
Unrealized losses on marketable securities | (55) | (55) | ||||||
Employee plans (Note 14) | $ 150 | |||||||
Defined benefit pension and postretirement plans | 2,139 | 2,139 | ||||||
Total comprehensive income | $ 481 | 481 | ||||||
Shareowner plans (in shares)(Note 14) | 3,500 | 70 | ||||||
Other comprehensive income (loss) | 2,123 | |||||||
Distributions and other | (387) | |||||||
Shareowner plans (Note 14) | $ 3 | |||||||
Other | (14) | |||||||
Balance at end of year (in shares) at Dec. 31, 2016 | 4,242,374 | (165,690) | ||||||
Balance at end of year at Dec. 31, 2016 | $ 24,032 | $ 424 | $ 11,182 | $ 15,059 | $ 2,673 | $ (7,263) | $ 449 | $ 1,508 |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Dividends declared, per share | $ 2.285 | $ 2.230 | $ 2.160 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Schedule II - Valuation and Qualifying Accounts | Schedule II - Valuation and Qualifying Accounts Verizon Communications Inc. and Subsidiaries For the Years Ended December 31, 2016, 2015 and 2014 (dollars in millions) Additions Description Balance at Charged to Charged to Deductions Balance at Allowance for Uncollectible Accounts Receivable: Year 2016 (e) $ 1,037 $ 1,420 $ 204 $ 1,515 $ 1,146 Year 2015 (e) 739 1,610 200 1,512 1,037 Year 2014 645 1,095 141 1,142 739 Valuation Allowance for Deferred Tax Assets: Year 2016 $ 3,414 $ 146 $ 47 $ 1,134 $ 2,473 Year 2015 1,841 237 1,701 365 3,414 Year 2014 1,685 505 5 354 1,841 (a) Allowance for Uncollectible Accounts Receivable primarily includes amounts previously written off which were credited directly to this account when recovered. (b) Valuation Allowance for Deferred Tax Assets includes an increase to the valuation allowance as a result of the acquisition of AOL in 2015 and amounts charged to equity and reclassifications from other balance sheet accounts. (c) Amounts written off as uncollectible or transferred to other accounts or utilized. (d) Reductions to valuation allowances related to deferred tax assets. (e) Allowance for Uncollectible Accounts Receivable includes approximately $301 million and $155 million at December 31, 2016 and 2015, respectively, related to long-term device payment plan receivables. |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Description of Business and Summary of Significant Accounting Policies | Note 1 Description of Business and Summary of Significant Accounting Policies Description of Business Verizon Communications Inc. (Verizon or the Company) is a holding company that, acting through its subsidiaries, is one of the world’s leading providers of communications, information and entertainment products and services to consumers, businesses and governmental agencies with a presence around the world. We have two reportable segments, Wireless and Wireline. For further information concerning our business segments, see Note 12. The Wireless segment provides wireless communications services and products across one of the most extensive wireless networks in the United States (U.S.). We provide these services and equipment sales to consumer, business and government customers in the United States on a postpaid and prepaid basis. The Wireline segment provides voice, data and video communications products and enhanced services, including broadband video and data, corporate networking solutions, data center and cloud services, security and managed network services and local and long distance voice services. We provide these products and services to consumers in the United States, as well as to carriers, businesses and government customers both in the United States and around the world. Consolidation The method of accounting applied to investments, whether consolidated, equity or cost, involves an evaluation of all significant terms of the investments that explicitly grant or suggest evidence of control or influence over the operations of the investee. The consolidated financial statements include our controlled subsidiaries, as well as variable interest entities (VIE) where we are deemed to be the primary beneficiary. For controlled subsidiaries that are not wholly-owned, the noncontrolling interests are included in Net income and Total equity. Investments in businesses which we do not control, but have the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. Investments in which we do not have the ability to exercise significant influence over operating and financial policies are accounted for under the cost method. Equity and cost method investments are included in Investments in unconsolidated businesses in our consolidated balance sheets. All significant intercompany accounts and transactions have been eliminated. Basis of Presentation We have reclassified certain prior year amounts to conform to the current year presentation. Use of Estimates We prepare our financial statements using U.S. generally accepted accounting principles (GAAP), which requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Examples of significant estimates include: the allowance for doubtful accounts, the recoverability of plant, property and equipment, the recoverability of intangible assets and other long-lived assets, fair values of financial instruments, unrecognized tax benefits, valuation allowances on tax assets, accrued expenses, pension and postretirement benefit obligations, contingencies and the identification and valuation of assets acquired and liabilities assumed in connection with business combinations. Revenue Recognition Multiple Deliverable Arrangements We offer products and services to our wireless and wireline customers through bundled arrangements. These arrangements involve multiple deliverables which may include products, services, or a combination of products and services. Wireless Our Wireless segment earns revenue primarily by providing access to and usage of its network as well as the sale of equipment. In general, access revenue is billed one month in advance and recognized when earned. Usage revenue is generally billed in arrears and recognized when service is rendered. Equipment sales revenue associated with the sale of wireless devices and accessories is generally recognized when the products are delivered to and accepted by the customer, as this is considered to be a separate earnings process from providing wireless services. For agreements involving the resale of third-party services in which we are considered the primary obligor in the arrangements, we record the revenue gross at the time of the sale. Under the Verizon device payment program, our eligible wireless customers purchase wireless devices under a device payment plan agreement. On select devices, certain marketing promotions have been revocably offered to customers to upgrade to a new device after paying down a certain specified portion of the required device payment plan agreement amount as well as trading in their device in good working order. When a customer enters into a device payment plan agreement with the right to upgrade to a new device, we account for this trade-in trade-in We may offer our customers certain promotions where a customer can trade-in trade-in trade-in trade-in. In multiple element arrangements that bundle devices and monthly wireless service, revenue is allocated to each unit of accounting using a relative selling price method. At the inception of the arrangement, the amount allocable to the delivered units of accounting is limited to the amount that is not contingent upon the delivery of the monthly wireless service (the noncontingent amount). We effectively recognize revenue on the delivered device at the lesser of the amount allocated based on the relative selling price of the device or the noncontingent amount owed when the device is sold. Wireline Our Wireline segment earns revenue based upon usage of its network and facilities and contract fees. In general, fixed monthly fees for voice, video, data and certain other services are billed one month in advance and recognized when earned. Revenue from services that are not fixed in amount and are based on usage is generally billed in arrears and recognized when service is rendered. We sell each of the services offered in bundled arrangements (i.e., voice, video and data), as well as separately; therefore each product or service has a standalone selling price. For these arrangements, revenue is allocated to each deliverable using a relative selling price method. Under this method, arrangement consideration is allocated to each separate deliverable based on our standalone selling price for each product or service. These services include Fios services, individually or in bundles, and high-speed Internet. When we bundle equipment with maintenance and monitoring services, we recognize equipment revenue when the equipment is installed in accordance with contractual specifications and ready for the customer’s use. The maintenance and monitoring services are recognized monthly over the term of the contract as we provide the services. Installation-related fees, along with the associated costs up to but not exceeding these fees, are deferred and amortized over the estimated customer relationship period. Other Advertising revenues are generated through display advertising and search advertising. Display advertising revenue is generated by the display of graphical advertisements and other performance-based advertising. Search advertising revenue is generated when a consumer clicks on a text-based advertisement on their screen. Agreements for advertising typically take the forms of impression-based contracts, time-based contracts or performance-based contracts. Advertising revenues derived from impression-based contracts, in which we provide impressions in exchange for a fixed fee, are generally recognized as the impressions are delivered. Advertising revenues derived from time-based contracts, in which we provide promotions over a specified time period for a fixed fee, are recognized on a straight-line basis over the term of the contract, provided that we meet and will continue to meet our obligations under the contract. Advertising revenues derived from contracts where we are compensated based on certain performance criteria are recognized as we complete the contractually specified performance. We report taxes imposed by governmental authorities on revenue-producing transactions between us and our customers, which we pass through to our customers, on a net basis. Maintenance and Repairs We charge the cost of maintenance and repairs, including the cost of replacing minor items not constituting substantial betterments, principally to Cost of services as these costs are incurred. Advertising Costs Costs for advertising products and services as well as other promotional and sponsorship costs are charged to Selling, general and administrative expense in the periods in which they are incurred (see Note 14). Earnings Per Common Share Basic earnings per common share are based on the weighted-average number of shares outstanding during the period. Where appropriate, diluted earnings per common share include the dilutive effect of shares issuable under our stock-based compensation plans. There were a total of approximately 6 million, 8 million and 7 million outstanding dilutive securities, primarily consisting of restricted stock units, included in the computation of diluted earnings per common share for the years ended December 31, 2016, 2015 and 2014, respectively. For the years ended December 31, 2016 and 2015, respectively, there were no outstanding options to purchase shares that would have been anti-dilutive. Outstanding options to purchase shares that were not included in the computation of diluted earnings per common share, because to do so would have been anti-dilutive for the period, were not significant for the year ended December 31, 2014. On January 28, 2014, at a special meeting of our shareholders, we received shareholder approval to increase our authorized shares of common stock by 2 billion shares to an aggregate of 6.25 billion authorized shares of common stock. On February 4, 2014, this authorization became effective. On February 21, 2014, we issued approximately 1.27 billion shares of common stock upon completing the acquisition of Vodafone Group Plc’s (Vodafone) indirect 45% interest in Cellco Partnership d/b/a Verizon Wireless. See Note 2 for additional information. Cash and Cash Equivalents We consider all highly liquid investments with a maturity of 90 days or less when purchased to be cash equivalents. Cash equivalents are stated at cost, which approximates quoted market value and include amounts held in money market funds. Marketable Securities We have investments in marketable securities, which are considered “available-for-sale” Allowance for Doubtful Accounts Accounts receivable are recorded in the consolidated financial statements at cost net of an allowance for credit losses, with the exception of device payment plan agreement receivables which are initially recorded at fair value. We maintain allowances for uncollectible accounts receivable, including our device payment plan agreement receivables, for estimated losses resulting from the failure or inability of our customers to make required payments. Our allowance for uncollectible accounts receivable is based on management’s assessment of the collectability of specific customer accounts and includes consideration of the credit worthiness and financial condition of those customers. We record an allowance to reduce the receivables to the amount that is reasonably believed to be collectible. We also record an allowance for all other receivables based on multiple factors including historical experience with bad debts, the general economic environment and the aging of such receivables. Similar to traditional service revenue accounting treatment, we record device payment plan agreement bad debt expense based on an estimate of the percentage of equipment revenue that will not be collected. This estimate is based on a number of factors including historical write-off write-off Inventories Inventory consists of wireless and wireline equipment held for sale, which is carried at the lower of cost (determined principally on either an average cost or first-in, first-out Plant and Depreciation We record plant, property and equipment at cost. Plant, property and equipment are generally depreciated on a straight-line basis. Leasehold improvements are amortized over the shorter of the estimated life of the improvement or the remaining term of the related lease, calculated from the time the asset was placed in service. When depreciable assets are retired or otherwise disposed of, the related cost and accumulated depreciation are deducted from the plant accounts and any gains or losses on disposition are recognized in income. We capitalize and depreciate network software purchased or developed along with related plant assets. We also capitalize interest associated with the acquisition or construction of network-related assets. Capitalized interest is reported as a reduction in interest expense and depreciated as part of the cost of the network-related assets. In connection with our ongoing review of the estimated useful lives of plant, property and equipment during 2016, we determined that the average useful lives of certain leasehold improvements would be increased from 5 to 7 years. This change resulted in a decrease to depreciation expense of $0.2 billion in 2016. We determined that changes were also necessary to the remaining estimated useful lives of certain assets as a result of technology upgrades, enhancements, and planned retirements. These changes resulted in an increase in depreciation expense of $0.3 billion, $0.4 billion and $0.6 billion in 2016, 2015 and 2014, respectively. While the timing and extent of current deployment plans are subject to ongoing analysis and modification, we believe the current estimates of useful lives are reasonable. Computer Software Costs We capitalize the cost of internal-use non-network internal-use non-network internal-use non-network non-network internal-use internal-use non-network Goodwill and Other Intangible Assets Goodwill Goodwill is the excess of the acquisition cost of businesses over the fair value of the identifiable net assets acquired. Impairment testing for goodwill is performed annually in the fourth fiscal quarter or more frequently if impairment indicators are present. To determine if goodwill is potentially impaired, we have the option to perform a qualitative assessment. However, we may elect to bypass the qualitative assessment and perform an impairment test even if no indications of a potential impairment exist. The impairment test for goodwill uses a two-step Intangible Assets Not Subject to Amortization A significant portion of our intangible assets are wireless licenses that provide our wireless operations with the exclusive right to utilize designated radio frequency spectrum to provide wireless communication services. While licenses are issued for only a fixed time, generally ten years, such licenses are subject to renewal by the Federal Communications Commission (FCC). License renewals have occurred routinely and at nominal cost. 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. We re-evaluate We test our wireless licenses for potential impairment annually or more frequently if impairment indicators are present. We have the option to first perform a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. However, we may elect to bypass the qualitative assessment in any period and proceed directly to performing the quantitative impairment test. In 2016 and 2014, we performed a qualitative assessment to determine whether it is more likely than not that the fair value of our wireless licenses was less than the carrying amount. As part of our assessment, we considered several qualitative factors including the business enterprise value of our Wireless segment, macroeconomic conditions (including changes in interest rates and discount rates), industry and market considerations (including industry revenue and EBITDA (Earnings before interest, taxes, depreciation and amortization) margin projections), the projected financial performance of our Wireless segment, as well as other factors. The most recent quantitative assessments of our wireless licenses occurred in 2015. Our quantitative assessment consisted of comparing the estimated fair value of our aggregate wireless licenses to the aggregated carrying amount as of the test date. Using a quantitative assessment, we estimated the fair value of our aggregate wireless licenses using the Greenfield approach. The Greenfield approach is an income based valuation approach that values the wireless licenses by calculating the cash flow generating potential of a hypothetical start-up Interest expense incurred while qualifying activities are performed to ready wireless licenses for their intended use is capitalized as part of wireless licenses. The capitalization period ends when the development is discontinued or substantially complete and the license is ready for its intended use. Intangible Assets Subject to Amortization and Long-Lived Assets Our intangible assets that do not have indefinite lives (primarily customer lists and non-network internal-use re-evaluate For information related to the carrying amount of goodwill, wireless licenses and other intangible assets, as well as the major components and average useful lives of our other acquired intangible assets, see Note 3. Fair Value Measurements Fair value of financial and non-financial Level 1—Quoted prices in active markets for identical assets or liabilities Level 2—Observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3—No observable pricing inputs in the market Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurements. Our assessment of the significance of a particular input to the fair value measurements requires judgment, and may affect the valuation of the assets and liabilities being measured and their categorization within the fair value hierarchy. Income Taxes Our effective tax rate is based on pre-tax Deferred income taxes are provided for temporary differences in the basis between financial statement and income tax assets and liabilities. Deferred income taxes are recalculated annually at tax rates then in effect. We record valuation allowances to reduce our deferred tax assets to the amount that is more likely than not to be realized. We use a two-step more-likely-than-not more-likely-than-not Significant management judgment is required in evaluating our tax positions and in determining our effective tax rate. Stock-Based Compensation We measure and recognize compensation expense for all stock-based compensation awards made to employees and directors based on estimated fair values. See Note 9 for further details. Foreign Currency Translation The functional currency of our foreign operations is generally the local currency. For these foreign entities, we translate income statement amounts at average exchange rates for the period, and we translate assets and liabilities at end-of-period Employee Benefit Plans Pension and postretirement health care and life insurance benefits earned during the year as well as interest on projected benefit obligations are accrued currently. Prior service costs and credits resulting from changes in plan benefits are generally amortized over the average remaining service period of the employees expected to receive benefits. Expected return on plan assets is determined by applying the return on assets assumption to the actual fair value of plan assets. Actuarial gains and losses are recognized in operating results in the year in which they occur. These gains and losses are measured annually as of December 31 or upon a remeasurement event. Verizon management employees no longer earn pension benefits or earn service towards the company retiree medical subsidy (see Note 10). We recognize a pension or a postretirement plan’s funded status as either an asset or liability on the consolidated balance sheets. Also, we measure any unrecognized prior service costs and credits that arise during the period as a component of Accumulated other comprehensive income, net of applicable income tax. Derivative Instruments We enter into derivative transactions primarily to manage our exposure to fluctuations in foreign currency exchange rates and interest rates. 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, interest rate swap agreements and interest rate caps. We do not hold derivatives for trading purposes. See Note 8. We measure all derivatives at fair value and recognize them as either assets or liabilities on our consolidated balance sheets. Our derivative instruments 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. Changes in the fair value of the effective portion of net investment hedges of certain of our foreign operations are reported in Other comprehensive income (loss) as part of the cumulative translation adjustment and partially offset the impact of foreign currency changes on the value of our net investment. Variable Interest Entities VIEs are entities which lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, have equity investors which do not have the ability to make significant decisions relating to the entity’s operations through voting rights, do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. We consolidate the assets and liabilities of VIEs when we are deemed to be the primary beneficiary. The primary beneficiary is the party which has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Recently Adopted Accounting Standards During the first quarter of 2016, we adopted the accounting standard update related to the simplification of the accounting for measurement-period adjustments in business combinations. This standard update requires an acquirer to recognize measurement-period adjustments in the reporting period in which the adjustments are determined and to record the effects on earnings of any changes resulting from the change in provisional amounts, calculated as if the accounting had been completed at the acquisition date. The prospective adoption of this standard update did not have a significant impact on our consolidated financial statements. During the first quarter of 2016, we adopted the accounting standard update related to disclosures for investments in certain entities that calculate net asset value (NAV) per share. This standard update removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The standard update limits the required disclosures to investments for which the entity has elected to measure the fair value using the practical expedient. The retrospective adoption of this standard update impacted our presentation of pension and other postretirement benefit plan assets in the notes to the consolidated financial statements but did not have an impact on the measurement of the assets. During the first quarter of 2016, we adopted the accounting standard update related to the simplification of the presentation of debt issuance costs. This standard update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. During the first quarter of 2016, we also adopted the accounting standard update related to the presentation and subsequent measurement of debt issuance costs associated with line-of-credit line-of-credit During the first quarter of 2016, we adopted the accounting standard update related to the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The standard requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The prospective adoption of this standard update did not have an impact on our consolidated financial statements. During the second quarter of 2016, we prospectively changed our method for determining the date at which we remeasure plan assets and obligations as a result of a significant event during an interim period in accordance with Accounting Standards Update (ASU) 2015-04, Compensation – Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets month-end Recently Issued Accounting Standards In January 2017, the accounting standard update related to the simplification of the accounting for goodwill impairment was issued. The amendments in this update eliminate the requirement to perform step two of the goodwill impairment test, which requires a hypothetical purchase price allocation when an impairment is determined to have occurred. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This standard update is effective as of the first quarter of 2020; however, early adoption is permitted for any interim or annual impairment tests performed after January 1, 2017. Verizon expects to early adopt this standard as of January 1, 2017. The prospective adoption of this standard update is not expected to have a significant impact on our consolidated financial statements. In November 2016, the accounting standard update related to the classification and presentation of changes in restricted cash was issued. The amendments in this update require that cash and cash equivalent balances in a statement of cash flows include those amounts deemed to be restricted cash and restricted cash equivalents. This standard update is effective as of the first quarter of 2018; however, early adoption is permitted. We are currently evaluating the impact that this standard update will have on our consolidated financial statements. In August 2016, the accounting standard update related to the classification of certain cash receipts and cash payments was issued. This standard update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice for these issues. Among the updates, this standard update requires cash receipts from payments on a transferor’s beneficial interests in securitized trade receivables to be classified as cash inflows from investing activities. This standard update is effective as of the first quarter of 2018; however, early adoption is permitted. We are currently evaluating the impact that this standard update will have on our consolidated financial statements. We expect the amendment relating to beneficial interests in securitization transactions will have an impact on our presentation of collections of the deferred purchase price from sales of wireless device payment plan agreement receivables in our consolidated statements of cash flows. Upon adoption of this standard update in the first quarter of 2018, we expect to retrospectively reclassify approximately $1.1 billion of collections of deferred purchase price related to collections from customers for the year ended December 31, 2016 from Cash flows from operating activities to Cash flows from investing activities in our consolidated statements of cash flows. In June 2016, the standard update related to the measurement of credit losses on financial instruments was issued. This standard update requires that certain financial assets be measured at amortized cost reflecting an allowance for estimated credit losses expected to occur over the life of the assets. The estimate of credit losses must be based on all relevant information including historical information, current conditions and reasonable and supportable forecasts that affect the collectability of the amounts. This standard update is effective as of the first quarter of 2020; however, early adoption is permitted. We are currently evaluating the impact that this standard update will have on our consolidated financial statements. In March 2016, the accounting standard update related to employee share-based payment accounting was issued. This standard update intends to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This standard update is effective as of the first quarter of 2017. The retrospective adoption of this standard update is not expected to have a significant impact on our consolidated financial statements. In February 2016, the accounting standard update related to leases was issued. This standard update intends to increase transparency and improve comparability by requiring entities to recognize assets and liabilities on the balance sheet for all leases, with certain exceptions. In addition, through improved disclosure requirements, the standard update will enable users of financial statements to further understand the amount, timing, and uncertainty of cash flows arising from leases. This standard update is effective as of the first quarter of 2019; however, early adoption is permitted. Verizon’s current operating lease portfolio is primarily comprised of network, real estate, and equipment leases. Upon adoption of this standard, we expect our balance sheet to include a right of use asset and liability related to substantially all operating lease arrangements. We have established a cross-functional coordinated implementation team to implement the standard update related to leases. We are in the process of assessing the impact to our systems, processes and internal controls to meet the standard update’s reporting and disclosure requirements. In May 2014, the accounting standard update related to the recognition of revenue from contracts with customers was issued. This standard update along with related subsequently issued updates clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP. The standard update also amends current guidance for the recognition of costs to obtain and fulfill contracts with customers such that incremental costs of obtaining and direct costs of fulfilling contracts with customers will be deferred and amortized consistent with the transfer of the related good or service. The standard update intends to provide a more robust framework for addressing revenue issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; and provide more useful information to users of financial statements through improved disclosure requirements. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized at the earliest period shown, or the modified retrospective method, in which case the standard is applied only to the most current period presented and the cumulative effect of applying the standard |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2016 | |
Acquisitions and Divestitures | Note 2 Acquisitions and Divestitures Wireless Wireless Transaction On September 2, 2013, Verizon entered into a stock purchase agreement (the Stock Purchase Agreement) with Vodafone and Vodafone 4 Limited (Seller), pursuant to which Verizon agreed to acquire Vodafone’s indirect 45% interest in Cellco Partnership d/b/a Verizon Wireless (the Partnership, and such interest, the Vodafone Interest) for aggregate consideration of approximately $130 billion. On February 21, 2014, pursuant to the terms and subject to the conditions set forth in the Stock Purchase Agreement, Verizon acquired (the Wireless Transaction) from Seller all of the issued and outstanding capital stock (the Transferred Shares) of Vodafone Americas Finance 1 Inc., a subsidiary of Seller (VF1 Inc.), which indirectly through certain subsidiaries (together with VF1 Inc., the Purchased Entities) owned the Vodafone Interest. In consideration for the Transferred Shares, upon completion of the Wireless Transaction, Verizon (i) paid approximately $58.89 billion in cash, (ii) issued approximately 1.27 billion shares of Verizon’s common stock, par value $0.10 per share, which was valued at approximately $61.3 billion at the closing of the Wireless Transaction, (iii) issued senior unsecured Verizon notes in an aggregate principal amount of $5.0 billion (the Verizon Notes), (iv) sold Verizon’s indirectly owned 23.1% interest in Vodafone Omnitel N.V. (Omnitel, and such interest, the Omnitel Interest), valued at $3.5 billion and (v) provided other consideration, which included the assumption of preferred stock valued at approximately $1.7 billion. The total cash paid to Vodafone and the other costs of the Wireless Transaction, including financing, legal and bank fees, were financed through the incurrence of third-party indebtedness. In accordance with the accounting standard on consolidation, a change in a parent’s ownership interest while the parent retains a controlling financial interest in its subsidiary is accounted for as an equity transaction and remeasurement of assets and liabilities of previously controlled and consolidated subsidiaries is not permitted. As a result, we accounted for the Wireless Transaction by adjusting the carrying amount of the noncontrolling interest to reflect the change in Verizon’s ownership interest in the Partnership. Any difference between the fair value of the consideration paid and the amount by which the noncontrolling interest is adjusted has been recognized in equity attributable to Verizon. Omnitel Transaction On February 21, 2014, Verizon and Vodafone also consummated the sale of the Omnitel Interest (the Omnitel Transaction) by a subsidiary of Verizon to a subsidiary of Vodafone in connection with the Wireless Transaction pursuant to a separate share purchase agreement. As a result, during 2014, we recognized a pre-tax Verizon Notes (Non-Cash The Verizon Notes were issued pursuant to Verizon’s existing indenture. The Verizon Notes were issued in two separate series, with $2.5 billion due February 21, 2022 (the eight-year Verizon Notes) and $2.5 billion due February 21, 2025 (the eleven-year Verizon Notes). The Verizon Notes bear interest at a floating rate, which will be reset quarterly, with interest payable quarterly in arrears, beginning May 21, 2014. The eight-year Verizon notes bear interest at a floating rate equal to the three-month London Interbank Offered Rate (LIBOR), plus 1.222%, and the eleven-year Verizon notes bear interest at a floating rate equal to the three-month LIBOR, plus 1.372%. On December 7, 2016, we redeemed the eight-year Verizon Notes (see Note 6 for additional details). Other Consideration (Non-Cash Included in the other consideration provided to Vodafone is the indirect assumption of long-term obligations with respect to 5.143% Class D and Class E cumulative preferred stock issued by one of the Purchased Entities. Both the Class D shares (825,000 shares outstanding) and Class E shares (825,000 shares outstanding) are mandatorily redeemable in April 2020 at $1,000 per share plus any accrued and unpaid dividends. Dividends accrue at 5.143% per annum and will be treated as interest expense. Both the Class D and Class E shares have been classified as liability instruments and were recorded at fair value as determined at the closing of the Wireless Transaction. Deferred Tax Liabilities Certain deferred taxes directly attributable to the Wireless Transaction have been calculated based on an analysis of taxes attributable to the difference between the tax basis of the investment in the noncontrolling interest that is assumed compared to Verizon’s book basis. As a result, Verizon recorded a deferred tax liability of approximately $13.5 billion. Spectrum License Transactions Since 2014, we have entered into several strategic spectrum transactions including: • During the second quarter of 2014, we completed license exchange transactions with T-Mobile (T-Mobile • During the second quarter of 2014, we completed transactions pursuant to two additional agreements with T-Mobile T-Mobile pre-tax • During the third quarter of 2014, we entered into a license exchange agreement with affiliates of AT&T Inc. (AT&T) to exchange certain AWS and PCS spectrum licenses. This non-cash • On January 29, 2015, the FCC completed an auction of 65 MHz of spectrum, which it identified as the AWS-3 • During the fourth quarter of 2015, we completed a license exchange transaction with an affiliate of T-Mobile pre-tax • During the fourth quarter of 2015, we entered into a license exchange agreement with affiliates of AT&T to exchange certain AWS and PCS spectrum licenses. This non-cash pre-tax • During the first quarter of 2016, we entered into a license exchange agreement with affiliates of Sprint Corporation, which provides for the exchange of certain AWS and PCS spectrum licenses. This non-cash • During the fourth quarter of 2016, we entered into a license exchange agreement with affiliates of AT&T to exchange certain AWS and PCS spectrum licenses. As a result of this agreement, $0.9 billion of Wireless licenses are classified as held for sale on our consolidated balance sheet as of December 31, 2016. This non-cash Tower Monetization Transaction During March 2015, we completed a transaction with American Tower Corporation (American Tower) pursuant to which American Tower acquired the exclusive rights to lease and operate approximately 11,300 of our wireless towers for an upfront payment of $5.0 billion. Under the terms of the leases, American Tower has exclusive rights to lease and operate the towers over an average term of approximately 28 years. As the leases expire, American Tower has fixed-price purchase options to acquire these towers based on their anticipated fair market values at the end of the lease terms. As part of this transaction, we also sold 162 towers for $0.1 billion. We have subleased capacity on the towers from American Tower for a minimum of 10 years at current market rates, with options to renew. The upfront payment, including the towers sold, which is primarily included within Other liabilities on our consolidated balance sheet, is accounted for as deferred rent and as a financing obligation. The $2.4 billion accounted for as deferred rent, which is presented within Other, net cash flows provided by operating activities, relates to the portion of the towers for which the right-of-use Other During 2016, 2015 and 2014, we acquired various other wireless licenses and markets for cash consideration that was not significant. Wireline Access Line Sale On February 5, 2015, we entered into a definitive agreement with Frontier Communications Corporation (Frontier) pursuant to which Verizon sold its local exchange business and related landline activities in California, Florida and Texas, including Fios Internet and video customers, switched and special access lines and high-speed Internet service and long distance voice accounts in these three states, for approximately $10.5 billion (approximately $7.3 billion net of income taxes), subject to certain adjustments and including the assumption of $0.6 billion of indebtedness from Verizon by Frontier (Access Line Sale). The transaction, which included the acquisition by Frontier of the equity interests of Verizon’s incumbent local exchange carriers (ILECs) in California, Florida and Texas, did not involve any assets or liabilities of Verizon Wireless. The transaction closed on April 1, 2016. The transaction resulted in Frontier acquiring approximately 3.3 million voice connections, 1.6 million Fios Internet subscribers, 1.2 million Fios video subscribers and the related ILEC businesses from Verizon. For the years ended December 31, 2016, 2015 and 2014, these businesses generated revenues of approximately $1.3 billion, $5.3 billion and $5.4 billion, respectively, and operating income of $0.7 billion, $2.8 billion and $2.0 billion, respectively, for Verizon. The operating results of these businesses are excluded from our Wireline segment for all periods presented to reflect comparable segment operating results consistent with the information regularly reviewed by our chief operating decision maker. During April 2016, Verizon used the net cash proceeds received of $9.9 billion to reduce its consolidated indebtedness (see Note 6). The assets and liabilities that were sold were included in Verizon’s continuing operations and classified as assets held for sale and liabilities related to assets held for sale on our consolidated balance sheets through the completion of the transaction on April 1, 2016. As a result of the closing of the transaction, we derecognized plant, property, and equipment of $9.0 billion, goodwill of $1.3 billion, $0.7 billion of defined benefit pension and other postretirement benefit plan obligations and $0.6 billion of indebtedness assumed by Frontier. We recorded a pre-tax pre-tax XO Holdings On February 20, 2016, we entered into a purchase agreement to acquire XO Holdings’ wireline business, which owns and operates one of the largest fiber-based Internet Protocol (IP) and Ethernet networks, for approximately $1.8 billion, subject to adjustment. We completed the acquisition on February 1, 2017. Separately, we entered into an agreement to lease certain wireless spectrum from a wholly-owned subsidiary of XO Holdings that holds its wireless spectrum. Verizon has an option, exercisable under certain circumstances, to buy that subsidiary. The acquisition of XO Holdings’ wireline business will be accounted for as a business combination. While we have commenced the appraisals necessary to identify the tangible and intangible assets acquired and liabilities assumed and the amount of goodwill to be recognized as of the acquisition date, the initial identification of the assets acquired and liabilities assumed is not yet available. Data Center Sale On December 6, 2016, we entered into a definitive agreement with Equinix, Inc. (Equinix) pursuant to which Verizon will sell 24 customer-facing data center sites in the United States and Latin America, for approximately $3.6 billion, subject to certain adjustments. The sale does not affect Verizon’s data center services delivered from 27 sites in Europe, Asia-Pacific and Canada, or its managed hosting and cloud offerings. We plan to account for a portion of the transaction, consisting of the data center buildings, land and related assets, as a sale of real estate. The real estate assets to be sold of $0.7 billion are currently included in Verizon’s continuing operations and classified as held and used within Plant, property and equipment, net on our consolidated balance sheet at December 31, 2016. The non-real Non-current Other On July 1, 2014, we sold a non-strategic During the fourth quarter of 2015, we completed a sale of real estate for which we received total gross proceeds of $0.2 billion and recognized an immaterial deferred gain. The proceeds received as a result of this transaction have been classified within Cash flows used in investing activities on our consolidated statement of cash flows for the year ended December 31, 2015. Other Acquisition of AOL Inc. On May 12, 2015, we entered into an Agreement and Plan of Merger (the Merger Agreement) with AOL Inc. (AOL) pursuant to which we commenced a tender offer to acquire all of the outstanding shares of common stock of AOL at a price of $50.00 per share, net to the seller in cash, without interest and less any applicable withholding taxes. On June 23, 2015, we completed the tender offer and merger, and AOL became a wholly-owned subsidiary of Verizon. The aggregate cash consideration paid by Verizon at the closing of these transactions was approximately $3.8 billion. Holders of approximately 6.6 million shares exercised appraisal rights under Delaware law. If they had not exercised these rights, Verizon would have paid an additional $330 million for such shares at the closing. AOL is a leader in the digital content and advertising platform space. Verizon has been investing in emerging technology that taps into the market shift to digital content and advertising. AOL’s business model aligns with this approach, and we believe that its combination of owned and operated content properties plus a digital advertising platform enhances our ability to further develop future revenue streams. The acquisition of AOL has been accounted for as a business combination. The identification of the assets acquired and liabilities assumed are finalized. The fair values of the assets acquired and liabilities assumed were 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 and thus represent a Level 3 measurement as defined in Accounting Standards Codification (ASC) 820, other than long-term debt assumed in the acquisition. The income approach was primarily used to value the intangible assets, consisting primarily of acquired technology and customer relationships. The income approach indicates value for an asset based on the present value of cash flow projected to be generated by the asset. Projected cash flow is discounted at a required rate of return that reflects the relative risk of achieving the cash flow 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 appropriate, for plant, property and equipment. The cost to replace a given asset reflects the estimated reproduction or replacement cost for the property, less an allowance for loss in value due to depreciation. The following table summarizes the consideration to AOL’s shareholders and the identification of the assets acquired, including cash acquired of $0.5 billion, and liabilities assumed as of the close of the acquisition, as well as the fair value at the acquisition date of AOL’s noncontrolling interests: (dollars in millions) As of June 23, 2015 Cash payment to AOL’s equity holders $ 3,764 Estimated liabilities to be paid (1) 377 Total consideration $ 4,141 Assets acquired: Goodwill $ 1,938 Intangible assets subject to amortization 2,504 Other 1,551 Total assets acquired 5,993 Liabilities assumed: Total liabilities assumed 1,851 Net assets acquired: 4,142 Noncontrolling interest (1 ) Total consideration $ 4,141 (1) During the year ended December 31, 2016, we made cash payments of $179 million in respect of acquisition-date estimated liabilities to be paid. As of December 31, 2016, the remaining balance of estimated liabilities to be paid was $198 million. Goodwill is calculated as the difference between the acquisition date fair value of the consideration transferred and the fair value of the net assets acquired. The goodwill recorded as a result of the AOL transaction represents future economic benefits we expect to achieve as a result of combining the operations of AOL and Verizon as well as assets acquired that could not be individually identified and separately recognized. The goodwill related to this acquisition is included within Corporate and other (see Note 3 for additional details). Acquisition of Yahoo! Inc.’s Operating Business On July 23, 2016, Verizon entered into a stock purchase agreement (the Purchase Agreement) with Yahoo! Inc. (Yahoo). Pursuant to the Purchase Agreement, upon the terms and subject to the conditions thereof, we agreed to acquire the stock of one or more subsidiaries of Yahoo holding all of Yahoo’s operating business for approximately $4.83 billion in cash, subject to certain adjustments (the Transaction). Prior to the closing of the Transaction, pursuant to a related reorganization agreement, Yahoo will transfer all of the assets and liabilities constituting Yahoo’s operating business to the subsidiaries to be acquired in the Transaction. The assets to be acquired will not include Yahoo’s cash, its ownership interests in Alibaba, Yahoo! Japan and certain other investments, certain undeveloped land recently divested by Yahoo or certain non-core intellectual property. We will receive for our benefit and that of our current and certain future affiliates a non-exclusive, worldwide, perpetual, royalty-free license to all of Yahoo’s intellectual property that is not being conveyed with the business. Yahoo employees who transfer to Verizon will have any unvested Yahoo restricted stock units that they hold converted into cash-settleable Verizon restricted stock units, which will have the same vesting schedule as their Yahoo restricted stock units. The value of those outstanding restricted stock units on the date of signing was approximately $1.1 billion. On February 20, 2017, Verizon and Yahoo entered into an amendment to the Purchase Agreement, pursuant to which the Transaction purchase price will be reduced by $350 million to approximately $4.48 billion in cash, subject to certain adjustments. Subject to certain exceptions, the parties also agreed that certain user security and data breaches incurred by Yahoo (and the losses arising therefrom) will be disregarded (1) for purposes of specified conditions to Verizon’s obligations to close the Transaction and (2) in determining whether a “Business Material Adverse Effect” under the Purchase Agreement has occurred. Concurrently with the amendment of the Purchase Agreement, Yahoo and Yahoo Holdings, Inc., a wholly owned subsidiary of Yahoo that Verizon has agreed to purchase pursuant to the Transaction, also entered into an amendment to the related reorganization agreement, pursuant to which Yahoo (which has announced that it intends to change its name to Altaba Inc. following the closing of the Transaction) will retain 50% of certain post-closing liabilities arising out of governmental or third party investigations, litigations or other claims related to certain user security and data breaches incurred by Yahoo. In accordance with the original Transaction Agreements, Yahoo will continue to retain 100% of any liabilities arising out of any shareholder lawsuits (including derivative claims) and investigations and actions by the SEC. The Transaction remains subject to customary closing conditions, including the approval of Yahoo’s stockholders, and is expected to close in the second quarter of 2017. Fleetmatics Group PLC On July 30, 2016, we entered into an agreement (the Transaction Agreement) to acquire Fleetmatics Group PLC, a public limited company incorporated in Ireland (Fleetmatics). Fleetmatics is a leading global provider of fleet and mobile workforce management solutions. Pursuant to the terms of the Transaction Agreement, we acquired Fleetmatics for $60.00 per ordinary share in cash. The aggregate merger consideration was approximately $2.5 billion, including cash acquired of $0.1 billion. We completed the acquisition on November 7, 2016. As a result of the transaction, Fleetmatics became a wholly-owned subsidiary of Verizon. The consolidated financial statements include the results of Fleetmatics’ operations from the date the acquisition closed. Had this acquisition been completed on January 1, 2016 or 2015, the results of the acquired operations of Fleetmatics would not have had a significant impact on the consolidated net income attributable to Verizon. Upon closing, we recorded approximately $1.4 billion of goodwill and $1.1 billion of other intangibles. The acquisition of Fleetmatics was accounted for as a business combination. The consideration was allocated to the assets acquired and liabilities assumed based on their fair values as of the close of the acquisition. Goodwill is calculated as the difference between the acquisition date fair value of the consideration transferred and the fair value of the net assets acquired. The goodwill recorded as a result of the Fleetmatics transaction represents future economic benefits we expect to achieve as a result of the acquisition. The goodwill related to this acquisition is included within Corporate and other (see Note 3 for additional details). Other On July 29, 2016, we acquired Telogis, Inc., a global cloud-based mobile enterprise management software business, for $0.9 billion of cash consideration. Upon closing, we recorded $0.5 billion of goodwill that is included within Corporate and other. On September 12, 2016, we announced an agreement to acquire a leading provider of IoT solutions for smart communities for cash consideration that is not significant. The transaction was completed in October 2016. On September 3, 2015, AOL announced an agreement to acquire an advertising technology business for cash consideration that was not significant. The transaction was completed in October 2015. On October 7, 2014, Redbox Instant by Verizon, a venture between Verizon and Redbox Automated Retail, LLC (Redbox), a wholly-owned subsidiary of Outerwall Inc., ceased providing service to its customers. In accordance with an agreement between the parties, Redbox withdrew from the venture on October 20, 2014 and Verizon wound down and dissolved the venture during the fourth quarter of 2014. As a result of the termination of the venture, we recorded a pre-tax During February 2014, we acquired a business dedicated to the development of IP television for cash consideration that was not significant. Real Estate Transaction On May 19, 2015, we consummated a sale-leaseback transaction with a financial services firm for the buildings and real estate at our Basking Ridge, New Jersey location. We received total gross proceeds of $0.7 billion resulting in a deferred gain of $0.4 billion, which will be amortized over the initial leaseback term of twenty years. The leaseback of the buildings and real estate is accounted for as an operating lease. The proceeds received as a result of this transaction have been classified within Cash flows used in investing activities on our consolidated statement of cash flows for the year ended December 31, 2015. |
Wireless Licenses, Goodwill and
Wireless Licenses, Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Wireless Licenses, Goodwill and Other Intangible Assets | Note 3 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 January 1, 2015 $ 75,341 Acquisitions (Note 2) 10,474 Capitalized interest on wireless licenses 389 Reclassifications, adjustments and other 371 Balance at December 31, 2015 $ 86,575 Acquisitions (Note 2) 28 Capitalized interest on wireless licenses 506 Reclassifications, adjustments and other (436 ) Balance at December 31, 2016 $ 86,673 Reclassifications, adjustments and other includes the exchanges of wireless licenses in 2016 and 2015 as well as $0.9 billion and $0.3 billion of Wireless licenses that are classified as Assets held for sale on our consolidated balance sheets at December 31, 2016 and 2015, respectively. See Note 2 for additional details. At December 31, 2016 and 2015, approximately $10.0 billion and $10.4 billion, respectively, of wireless licenses were under development for commercial service for which we were capitalizing interest costs. The average remaining renewal period of our wireless license portfolio was 5.1 years as of December 31, 2016. See Note 1 for additional details. Goodwill Changes in the carrying amount of Goodwill are as follows: (dollars in millions) Wireless Wireline Other Total Balance at January 1, 2015 $ 18,390 $ 6,249 $ – $ 24,639 Acquisitions (Note 2) 3 – 2,035 2,038 Reclassifications, adjustments and other – (1,918 ) 572 (1,346 ) Balance at December 31, 2015 $ 18,393 $ 4,331 $ 2,607 $ 25,331 Acquisitions (Note 2) – – 2,310 2,310 Reclassifications, adjustments and other – (547 ) 111 (436 ) Balance at December 31, 2016 $ 18,393 $ 3,784 $ 5,028 $ 27,205 During the second quarter of 2016, we allocated $0.1 billion of Goodwill on a relative fair value basis from Wireline to Other as a result of the reclassification of our telematics businesses (see Note 12 for additional details). During the fourth quarter of 2016, we allocated $0.4 billion of Goodwill on a relative fair value basis from Wireline to Non-current As a result of the acquisition of AOL in the second quarter of 2015, we recognized Goodwill of $1.9 billion, which is included within Other (see Note 2 for additional details). We also allocated $0.6 billion of goodwill on a relative fair value basis from Wireline to Other as a result of an internal reorganization. This increase was partially offset by a decrease in Goodwill in Wireline primarily due to the reclassification of $1.3 billion of Goodwill to Non-current Other Intangible Assets The following table displays the composition of Other intangible assets, net: (dollars in millions) 2016 2015 At December 31, Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Customer lists (6 to 14 years) $ 2,884 $ (480 ) $ 2,404 $ 4,139 $ (2,365 ) $ 1,774 Non-network internal-use 16,135 (10,913 ) 5,222 14,542 (9,620 ) 4,922 Other (5 to 25 years) 1,854 (583 ) 1,271 1,346 (450 ) 896 Total $ 20,873 $ (11,976 ) $ 8,897 $ 20,027 $ (12,435 ) $ 7,592 The amortization expense for Other intangible assets was as follows: Years (dollars in millions) 2016 $ 1,701 2015 1,694 2014 1,567 Estimated annual amortization expense for Other intangible assets is as follows: Years (dollars in millions) 2017 $ 1,749 2018 1,564 2019 1,358 2020 1,121 2021 938 |
Plant, Property and Equipment
Plant, Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Plant, Property and Equipment | Note 4 Plant, Property and Equipment The following table displays the details of Plant, property and equipment, which is stated at cost: (dollars in millions) At December 31, Lives (years) 2016 2015 Land – $ 667 $ 709 Buildings and equipment 7-45 27,117 25,587 Central office and other network equipment 3-50 136,737 129,201 Cable, poles and conduit 7-50 45,639 44,290 Leasehold improvements 5-20 7,627 7,104 Work in progress – 5,710 4,907 Furniture, vehicles and other 3-20 8,718 8,365 232,215 220,163 Less accumulated depreciation 147,464 136,622 Plant, property and equipment, net $ 84,751 $ 83,541 |
Leasing Arrangements
Leasing Arrangements | 12 Months Ended |
Dec. 31, 2016 | |
Leasing Arrangements | Note 5 Leasing Arrangements As Lessee We lease certain facilities and equipment for use in our operations under both capital and operating leases. Total rent expense under operating leases amounted to $3.6 billion in 2016, $3.2 billion in 2015 and $2.7 billion in 2014. Amortization of capital leases is included in Depreciation and amortization expense in the consolidated statements of income. Capital lease amounts included in Plant, property and equipment are as follows: (dollars in millions) At December 31, 2016 2015 Capital leases $ 1,277 $ 1,046 Less accumulated amortization (524 ) (318 ) Total $ 753 $ 728 The aggregate minimum rental commitments under noncancelable leases for the periods shown at December 31, 2016, are as follows: (dollars in millions) Years Capital Leases Operating Leases 2017 $ 366 $ 2,822 2018 272 2,583 2019 149 2,304 2020 111 1,927 2021 62 1,515 Thereafter 79 6,724 Total minimum rental commitments 1,039 $ 17,875 Less interest and executory costs 89 Present value of minimum lease payments 950 Less current installments 335 Long-term obligation at December 31, 2016 $ 615 Tower Monetization Transaction During March 2015, we completed a transaction with American Tower pursuant to which American Tower acquired the exclusive rights to lease and operate approximately 11,300 of our wireless towers for an upfront payment of $5.0 billion. We have subleased capacity on the towers from American Tower for a minimum of 10 years at current market rates, with options to renew. Under this agreement, total rent payments amounted to $0.3 billion and $0.2 billion for the years ended December 31, 2016 and 2015, respectively. We expect to make minimum future lease payments of approximately $2.4 billion. We continue to include the towers in Plant, property and equipment, net in our consolidated balance sheets and depreciate them accordingly. At December 31, 2016 and 2015, $0.5 billion of towers related to this transaction were included in Plant, property and equipment, net. See Note 2 for additional information. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt | Note 6 Debt Changes to debt during 2016 are as follows: (dollars in millions) Debt Maturing within One Year Long-term Debt Total Balance at January 1, 2016 $ 6,489 $ 103,240 $ 109,729 Proceeds from long-term borrowings 120 12,844 12,964 Proceeds from asset-backed long-term borrowings – 4,986 4,986 Repayments of long-term borrowings and capital leases obligations (8,125 ) (11,034 ) (19,159 ) Decrease in short-term obligations, excluding current maturities (149 ) – (149 ) Reclassifications of long-term debt 4,088 (4,088 ) – Other 222 (515 ) (293 ) Balance at December 31, 2016 $ 2,645 $ 105,433 $ 108,078 Debt maturing within one year is as follows: (dollars in millions) At December 31, 2016 2015 Long-term debt maturing within one year $ 2,477 $ 6,325 Short-term notes payable 168 158 Commercial paper and other – 6 Total debt maturing within one year $ 2,645 $ 6,489 Credit facilities On September 23, 2016, we amended our $8.0 billion credit facility to increase the availability to $9.0 billion and extend the maturity to September 23, 2020. As of December 31, 2016, the unused borrowing capacity under our $9.0 billion credit facility was approximately $8.9 billion. The credit facility does not require us to comply with financial covenants or maintain specified credit ratings, and it permits us to borrow even if our business has incurred a material adverse change. We use the credit facility for the issuance of letters of credit and for general corporate purposes. In March 2016, we entered into an equipment credit facility insured by Eksportkreditnamnden Stockholm, Sweden (EKN), the Swedish export credit agency, with the ability to borrow up to $1 billion to finance locally-sourced network equipment-related purchases. The facility has borrowings available through June 2017, contingent upon the amount of equipment-related purchases made by Verizon. As of December 31, 2016 we had drawn $0.5 billion on the facility and the unused borrowing capacity was $0.5 billion. Long-Term Debt Outstanding long-term debt obligations are as follows: (dollars in millions) At December 31, Interest Rates % Maturities 2016 2015 Verizon Communications—notes payable and other 0.50 – 3.85 2017 – 2042 $ 28,491 $ 26,281 4.11 – 5.50 2018 – 2055 53,909 51,156 5.85 – 6.90 2018 – 2054 11,295 16,420 7.35 – 8.95 2018 – 2039 1,860 2,300 Floating 2017 – 2025 9,750 14,100 Verizon Wireless—Alltel assumed notes 6.80 – 7.88 2029 – 2032 525 686 Telephone subsidiaries—debentures 5.13 – 6.50 2028 – 2033 319 575 7.38 – 7.88 2022 – 2032 561 1,099 8.00 – 8.75 2022 – 2031 328 780 Other subsidiaries—notes payable, debentures and other 6.84 – 8.75 2018 – 2028 1,102 1,500 Verizon Wireless and other subsidiaries—asset-backed debt 1.42 – 2.36 2021 2,485 – Floating 2021 2,520 – Capital lease obligations (average rate of 3.5% and 3.4% in 2016 and 2015, respectively) 950 957 Unamortized discount, net of premium (5,716 ) (5,824) Unamortized debt issuance costs (469 ) (465) Total long-term debt, including current maturities 107,910 109,565 Less long-term debt maturing within one year 2,477 6,325 Total long-term debt $ 105,433 $ 103,240 2016 April Tender Offers On March 4, 2016, we announced the commencement of three concurrent, but separate, tender offers (the April Tender Offers) to purchase for cash (1) any and all of the series of notes listed below in the Group 1 Any and All Offer, (2) any and all of the series of notes listed below in the Group 2 Any and All Offer and (3) up to $5.5 billion aggregate purchase price, excluding accrued and unpaid interest and any fees or commissions, of the series of notes listed below in the Group 3 Offer. The April Tender Offers for each series of notes were conditioned upon the closing of the sale of our local exchange business and related landline activities in California, Florida and Texas to Frontier and the receipt of at least $9.5 billion of the purchase price cash at closing (the Sale Condition). The Sale Condition was satisfied and the April Tender Offers were settled on April 4, 2016, resulting in the notes listed below being repurchased and cancelled for $10.2 billion, inclusive of accrued interest of $0.1 billion. The table below lists the series of notes included in the Group 1 Any and All Offer: (dollars in millions, except for Purchase Price) Interest Rate Maturity Principal Amount Outstanding Purchase Price (1) Principal Amount Purchased Verizon Communications Inc. 2.50 % 2016 $ 2,182 $ 1,007.60 $ 1,272 2.00 % 2016 1,250 1,007.20 731 6.35 % 2019 1,750 1,133.32 970 $ 2,973 (1) Per $1,000 principal amount of notes tendered and not withdrawn prior to early expiration The table below lists the series of notes included in the Group 2 Any and All Offer: (dollars in millions, except for Purchase Price) Interest Rate Maturity Principal Amount Outstanding Purchase Price (1) Principal Amount Purchased Verizon Delaware LLC 8.375 % 2019 $ 15 $ 1,182.11 $ 15 8.625 % 2031 15 1,365.39 5 Verizon Maryland LLC 8.00 % 2029 50 1,301.32 22 8.30 % 2031 100 1,347.26 76 5.125 % 2033 350 1,012.50 171 Verizon New England Inc. 7.875 % 2029 349 1,261.63 176 Verizon New Jersey Inc. 8.00 % 2022 200 1,238.65 54 7.85 % 2029 149 1,311.32 63 Verizon New York Inc. 6.50 % 2028 100 1,151.71 28 7.375 % 2032 500 1,201.92 256 Verizon Pennsylvania LLC 6.00 % 2028 125 1,110.47 57 8.35 % 2030 175 1,324.10 127 8.75 % 2031 125 1,356.47 72 Verizon Virginia LLC 7.875 % 2022 100 1,227.79 43 8.375 % 2029 100 1,319.78 81 $ 1,246 (1) Per $1,000 principal amount of notes tendered and not withdrawn prior to early expiration The table below lists the series of notes included in the Group 3 Offer: (dollars in millions, except for Purchase Price) Interest Rate Maturity Principal Amount Outstanding Purchase Price (1) Principal Amount Purchased Verizon Communications Inc. 8.95 % 2039 $ 353 $ 1,506.50 $ 63 7.75 % 2032 251 1,315.19 33 7.35 % 2039 480 1,293.50 68 7.75 % 2030 1,206 1,377.92 276 6.55 % 2043 6,585 1,291.74 2,340 6.40 % 2033 2,196 1,220.28 466 6.90 % 2038 477 1,243.29 92 6.25 % 2037 750 1,167.66 114 6.40 % 2038 866 1,176.52 116 5.85 % 2035 1,500 1,144.68 250 6.00 % 2041 1,000 1,164.56 – 5.15 % 2023 8,517 1,152.83 – Alltel Corporation 7.875 % 2032 452 1,322.92 115 6.80 % 2029 235 1,252.93 47 GTE Corporation 6.94 % 2028 800 1,261.35 237 8.75 % 2021 300 1,307.34 93 $ 4,310 (1) Per $1,000 principal amount of notes April Early Debt Redemption On April 8, 2016, we redeemed in whole the following series of outstanding notes which were called for redemption on April 5, 2016 (collectively, April Early Debt Redemption): $0.9 billion aggregate principal amount of Verizon Communications 2.50% Notes due 2016 at 100.8% of the principal amount of such notes, $0.5 billion aggregate principal amount of Verizon Communications 2.00% Notes due 2016 at 100.8% of the principal amount of such notes, and $0.8 billion aggregate principal amount of Verizon Communications 6.35% Notes due 2019 at 113.5% of the principal amount of such notes. These notes were repurchased and cancelled for $2.3 billion, inclusive of an immaterial amount of accrued interest. Debt Issuances and Redemptions During August 2016, we issued $6.2 billion aggregate principal amount of fixed and floating rate notes. The issuance of these Notes resulted in cash proceeds of approximately $6.1 billion, net of discounts and issuance costs and after reimbursement of certain expenses. The issuance consisted of the following series of notes: $0.4 billion aggregate principal amount of Verizon Communications Floating Rate Notes due 2019, $1.0 billion aggregate principal amount of Verizon Communications 1.375% Notes due 2019, $1.0 billion aggregate principal amount of Verizon Communications 1.750% Notes due 2021, $2.3 billion aggregate principal amount of Verizon Communications 2.625% Notes due 2026, and $1.5 billion aggregate principal amount of Verizon Communications 4.125% Notes due 2046. The floating rate notes bear interest at a rate equal to the three-month LIBOR plus 0.370%, which rate will be reset quarterly. The net proceeds were used for general corporate purposes, including to repay at maturity on September 15, 2016, $2.3 billion aggregate principal amount of our floating rate notes, plus accrued interest on the notes. During September 2016, we issued $2.1 billion aggregate principal amount of 4.20% Notes due 2046. The issuance of these Notes resulted in cash proceeds of approximately $2.0 billion, net of discounts and issuance costs and after reimbursement of certain expenses. The net proceeds were used to redeem in whole $0.9 billion aggregate principal amount of Verizon Communications 4.80% Notes due 2044 at 100% of the principal amount of such notes, plus any accrued and unpaid interest to the date of redemption, for an immaterial loss. Proceeds not used for the redemption of these notes were used for general corporate purposes. During October 2016, we issued the following series of notes: €1.0 billion aggregate principal amount of Verizon Communications 0.500% Notes due 2022, €1.0 billion aggregate principal amount of Verizon Communications 0.875% Notes due 2025, €1.25 billion aggregate principal amount of Verizon Communications 1.375% Notes due 2028, and £0.45 billion aggregate principal amount of Verizon Communications 3.125% Notes due 2035. The issuance of these notes resulted in cash proceeds of approximately $4.1 billion, net of discounts and issuance costs and after reimbursement of certain expenses. The net proceeds from the sale of the notes were used for general corporate purposes, including the financing of our acquisition of Fleetmatics and the repayment of outstanding indebtedness. During December 2016, we redeemed in whole $2.0 billion aggregate principal amount of Verizon Communications 1.35% Notes due 2017 at 100.321% of the principal amount of such notes, plus any accrued and unpaid interest to the date of redemption, for an immaterial loss. Also in December 2016, we repurchased $2.5 billion aggregate principal amount of the eight-year Verizon Notes at 100% of the aggregate principal amount of such notes plus accrued and unpaid interest to the date of redemption. During February 2017, we issued $1.5 billion aggregate principal amount of 4.95% Notes due 2047. The issuance of these Notes resulted in cash proceeds of approximately $1.5 billion, net of discounts and issuance costs and after reimbursement of certain expenses. The net proceeds were used for general corporate purposes. 2017 Term Loan Agreement During January 2017, we entered into a term loan credit agreement with a syndicate of major financial institutions, pursuant to which we can borrow up to $5.5 billion for (i) the acquisition of Yahoo and (ii) general corporate purposes. Borrowings under the term loan credit agreement mature 18 months following the funding date, with a partial mandatory prepayment required within six months following the funding date. The term loan agreement contains certain negative covenants, including a negative pledge covenant, a merger or similar transaction covenant and an accounting changes covenant, affirmative covenants and events of default that are customary for companies maintaining an investment grade credit rating. In addition, the term loan credit agreement requires us to maintain a leverage ratio (as defined in the term loan credit agreement) not in excess of 3.50:1.00, until our credit ratings are equal to or higher than A3 and A- January 2017 Exchange Offers and Cash Offers On January 25, 2017, we commenced eighteen separate private offers to exchange (the January 2017 Exchange Offers) specified series of outstanding Notes issued by Verizon Communications (the Old Notes) for new Notes to be issued by Verizon Communications. In connection with the January 2017 Exchange Offers, which expired on January 31, 2017 and settled on February 3, 2017, we issued $3.2 billion aggregate principal amount of Verizon Communications 2.946% Notes due 2022, $1.7 billion aggregate principal amount of Verizon Communications 4.812% Notes due 2039 and $4.1 billion aggregate principal amount of Verizon Communications 5.012% Notes due 2049 (collectively, the New Notes) plus applicable cash of $0.6 billion (not including accrued and unpaid interest on the Old Notes) in exchange for $8.3 billion aggregate principal amount of tendered Old Notes. We concurrently commenced eighteen separate offers to purchase for cash (the January 2017 Cash Offers) the Old Notes. In connection with the January 2017 Cash Offers, which expired on January 31, 2017 and settled on February 3, 2017, we repurchased $0.5 billion aggregate principal amount of Old Notes for $0.5 billion, exclusive of accrued interest. 2015 February Exchange Offers On February 11, 2015, we announced the commencement of seven separate private offers to exchange (the February Exchange Offers) specified series of outstanding notes and debentures issued by Verizon and GTE Corporation (collectively, the Old Notes) for new Notes to be issued by Verizon (the New Notes) and, in the case of the 6.94% debentures due 2028 of GTE Corporation, cash. The February Exchange Offers have been accounted for as a modification of debt. On March 13, 2015, Verizon issued $2.9 billion aggregate principal amount of 4.272% Notes due 2036 (the 2036 New Notes), $5.0 billion aggregate principal amount of 4.522% Notes due 2048 (the 2048 New Notes) and $5.5 billion aggregate principal amount of 4.672% Notes due 2055 (the 2055 New Notes) in satisfaction of the exchange offer consideration on tendered Old Notes (not including accrued and unpaid interest on the Old Notes). The following tables list the series of Old Notes included in the February Exchange Offers and the principal amount of each such series accepted by Verizon for exchange. The table below lists the series of Old Notes included in the February Exchange Offers for the 2036 New Notes: (dollars in millions) Interest Rate Maturity Principal Amount Outstanding Principal Amount Accepted For Verizon Communications Inc. 5.15 % 2023 $ 11,000 $ 2,483 The table below lists the series of Old Notes included in the February Exchange Offers for the 2048 New Notes: (dollars in millions) Interest Rate Maturity Principal Amount Outstanding Principal Amount Accepted For Verizon Communications Inc. 6.90 % 2038 $ 1,250 $ 773 6.40 % 2038 1,750 884 6.40 % 2033 4,355 2,159 6.25 % 2037 750 – GTE Corporation 6.94 % 2028 800 – $ 3,816 The table below lists the series of Old Notes included in the February Exchange Offers for the 2055 New Notes: (dollars in millions) Interest Rate Maturity Principal Amount Outstanding Principal Amount Accepted For Exchange Verizon Communications Inc. 6.55 % 2043 $ 10,670 $ 4,084 Term Loan Agreement During the first quarter of 2015, we entered into a term loan agreement with a major financial institution, pursuant to which we borrowed $6.5 billion for general corporate purposes, including the acquisition of spectrum licenses. Borrowings under the term loan agreement were to mature in March 2016, with a $4.0 billion mandatory prepayment required in June 2015. The term loan agreement contained certain negative covenants, including a negative pledge covenant, a merger or similar transaction covenant and an accounting changes covenant, affirmative covenants and events of default that are customary for companies maintaining an investment grade credit rating. In addition, the term loan agreement required us to maintain a leverage ratio (as defined in the term loan agreement) not in excess of 3.50:1.00, until our credit ratings were equal to or higher than A3 and A- During March 2015, we prepaid approximately $5.0 billion of the term loan agreement, which satisfied the mandatory prepayment. During the third and fourth quarters of 2015, respectively, we made repayments of approximately $1.0 billion and $0.5 billion. As of December 31, 2015, no amounts remained outstanding under the term loan agreement. Other During June 2015, as part of the Merger Agreement with AOL, we assumed approximately $0.6 billion of debt and capital lease obligations. During 2015, approximately $0.4 billion of the assumed debt and capital lease obligations were repaid. During October 2015, we executed a $0.2 billion, 1.5% loan due 2018. Also, during March 2015, $0.5 billion of floating rate Verizon Communications Notes matured and were repaid. During November 2015, $1.0 billion of 0.7% Verizon Communications Notes matured and were repaid. During December 2015, we repaid $0.6 billion upon maturity for €0.5 billion aggregate principal amount of Cellco Partnership and Verizon Wireless Capital LLC 8.750% Notes due 2015, and the related cross currency swap was settled. Asset-Backed Debt As of December 31, 2016, the carrying value of our asset-backed debt was $5.0 billion. Our asset-backed debt includes notes (the Asset-Backed Notes) issued to third-party investors (Investors) and loans (ABS Financing Facility) received from banks and their conduit facilities (collectively, the Banks). Our consolidated asset-backed securitization bankruptcy remote legal entities (each, an ABS Entity or collectively, the ABS Entities) issue the debt or are otherwise party to the transaction documentation in connection with our asset-backed debt transactions. Under the terms of our asset-backed debt, we transfer device payment plan agreement receivables from Cellco Partnership and certain other affiliates of Verizon (collectively, the Originators) to one of the ABS Entities, which in turn transfer such receivables to another ABS Entity that issues the debt. Verizon entities retain the equity interests in the ABS Entities, which represent the rights to all funds not needed to make required payments on the asset-backed debt and other related payments and expenses. Our asset-backed debt is secured by the transferred device payment plan agreement receivables and future collections on such receivables. The device payment plan agreement receivables transferred to the ABS Entities and related assets, consisting primarily of restricted cash, will only be available for payment of asset-backed debt and expenses related thereto, payments to the Originators in respect of additional transfers of device payment plan agreement receivables, and other obligations arising from our asset-backed debt transactions, and will not be available to pay other obligations or claims of Verizon’s creditors until the associated asset-backed debt and other obligations are satisfied. The Investors or Banks, as applicable, which hold our asset-backed debt have legal recourse to the assets securing the debt, but do not have any recourse to Verizon with respect to the payment of principal and interest on the debt. Under a parent support agreement, Verizon has agreed to guarantee certain of the payment obligations of Cellco Partnership and the Originators to the ABS Entities. Cash collections on the device payment plan agreement receivables are required at certain specified times to be placed into segregated accounts. Deposits to the segregated accounts are considered restricted cash and are included in Prepaid expenses and other and Other assets on our consolidated balance sheets. Proceeds from our asset-backed debt transactions, deposits to the segregated accounts and payments to the Originators in respect of additional transfers of device payment plan agreement receivables, are reflected in Cash flows from financing activities in our consolidated statements of cash flows. Repayments of our asset-backed debt and related interest payments made from the segregated accounts are non-cash Asset-Backed Notes In July 2016, we issued $1.2 billion aggregate principal amount of senior and junior asset-backed notes through an ABS Entity, of which $1.1 billion of notes were sold to Investors. The senior asset-backed notes have an expected weighted-average life of about 2.5 years and bear interest at 1.42% per annum. The junior asset-backed notes have an expected weighted-average life of about 3.2 years and bear interest at a weighted-average rate of 1.53%. In November 2016, we issued $1.4 billion aggregate principal amount of senior and junior asset-backed notes through an ABS Entity. The senior asset-backed notes have an expected weighted-average life of about 2.6 years and bear interest at 1.68% per annum. The junior asset-backed notes have an expected weighted-average life of about 3.3 years and bear interest at a weighted-average rate of 2.26%. Under the terms of the asset-backed notes, there is a two year revolving period during which we may transfer additional receivables to the ABS Entity. ABS Financing Facility During September 2016, we entered into a device payment plan agreement financing facility through an ABS Entity with a number of financial institutions. Under the terms of the ABS Financing Facility, such counterparties made advances under asset-backed loans backed by device payment plan agreement receivables for proceeds of $1.5 billion. We had the option of requesting an additional $1.5 billion of committed funding. During December 2016, we received additional funding of $1.0 billion under this option. These loans have an expected weighted-average life of about 2.4 years and bear interest at floating rates. There is a two year revolving period, which may be extended, during which we may transfer additional receivables to the ABS Entity. Subject to certain conditions, we may also remove receivables from the ABS Entity. We may prepay the outstanding amounts of the loans without penalty, but in certain cases, with breakage costs. As of December 31, 2016, outstanding borrowings under the ABS Financing Facility were $2.5 billion. Although the ABS Financing Facility is fully drawn as of December 31, 2016, we have the right to prepay all or a portion thereof at any time. If we choose to prepay, the amount prepaid shall be available for further drawdowns until September 2018, except in certain circumstances. Variable Interest Entities (VIEs) The ABS Entities meet the definition of a VIE for which we have determined we are the primary beneficiary as we have both the power to direct the activities of the entity that most significantly impact the entity’s performance and the obligation to absorb losses or the right to receive benefits of the entity. Therefore, the assets, liabilities and activities of the ABS Entities are consolidated in our financial results and are included in amounts presented on the face of our consolidated balance sheets. The assets and liabilities related to our asset-backed debt arrangements included on our consolidated balance sheets were as follows: (dollars in millions) At December 31, 2016 2015 Assets Account receivable, net $ 3,383 $ – Prepaid expenses and other 236 – Other Assets 2,383 – Liabilities Accounts payable and accrued liabilities 4 – Long-term debt 4,988 – See Note 7 for more information on device payment plan agreement receivables used to secure asset-backed debt. Early Debt Redemption and Other Costs During 2016, we recorded net pre-tax We recognize early debt redemption costs in Other income and (expense), net on our consolidated statements of income and within our Net cash used in financing activities on our consolidated statements of cash flows. Additional Financing Activities (Non-Cash During the years ended December 31, 2016 and 2015, we financed, primarily through vendor financing arrangements, the purchase of approximately $0.5 billion and $0.7 billion, respectively, of long-lived assets consisting primarily of network equipment. At December 31, 2016, $1.1 billion relating to vendor financing arrangements, including those entered into in prior years, remained outstanding. These purchases are non-cash Guarantees We guarantee the debentures of our operating telephone company subsidiaries. As of December 31, 2016, $1.2 billion aggregate principal amount of these obligations remained outstanding. Each guarantee will remain in place for the life of the obligation unless terminated pursuant to its terms, including the operating telephone company no longer being a wholly-owned subsidiary of Verizon. As a result of the closing of the Access Line Sale on April 1, 2016, GTE Southwest Inc., Verizon California Inc. and Verizon Florida LLC are no longer wholly-owned subsidiaries of Verizon, and the guarantees of $0.6 billion aggregate principal amount of debentures and first mortgage bonds of those entities have terminated pursuant to their terms. We also guarantee the debt obligations of GTE LLC as successor in interest to GTE Corporation that were issued and outstanding prior to July 1, 2003. As of December 31, 2016, $1.1 billion aggregate principal amount of these obligations remain outstanding. Debt Covenants We and our consolidated subsidiaries are in compliance with all of our financial and restrictive covenants. Maturities of Long-Term Debt Maturities of long-term debt outstanding, excluding unamortized debt issuance costs, at December 31, 2016 are as follows: Years (dollars in millions) 2017 $ 2,477 2018 7,229 2019 5,548 2020 9,040 2021 12,097 Thereafter 71,988 |
Wireless Device Payment Plans
Wireless Device Payment Plans | 12 Months Ended |
Dec. 31, 2016 | |
Wireless Device Payment Plans | Note 7 Wireless Device Payment Plans Under the Verizon device payment program, our eligible wireless customers purchase wireless devices under a device payment plan agreement. Customers that activate service on devices purchased under the device payment program pay lower service fees as compared to those under our fixed-term service plans, and their device payment plan charge is included on their standard wireless monthly bill. Wireless Device Payment Plan Agreement Receivables The following table displays device payment plan receivables, net, that continue to be recognized in our consolidated balance sheets: (dollars in millions) At December 31, 2016 2015 Device payment plan agreement receivables, gross $ 11,797 $ 3,720 Unamortized imputed interest (511 ) (142 ) Device payment plan agreement receivables, net of unamortized imputed interest 11,286 3,578 Allowance for credit losses (688 ) (444 ) Device payment plan agreement receivables, net $ 10,598 $ 3,134 Classified on our consolidated balance sheets: Accounts receivable, net $ 6,140 $ 1,979 Other assets 4,458 1,155 Device payment plan agreement receivables, net $ 10,598 $ 3,134 Included in our device payment plan agreement receivables, net at December 31, 2016 are net device payment plan agreement receivables of $5.7 billion that have been transferred to ABS Entities and continue to be reported in our consolidated financial statements. We may offer our customers certain promotions where a customer can trade-in trade-in trade-in trade-in. trade-in trade-in At the time of sale of a device, we impute risk adjusted interest on the device payment plan agreement receivables. We record the imputed interest as a reduction to the related accounts receivable. Interest income, which is included within Service revenues and other on our consolidated statements of income, is recognized over the financed device payment term. When originating device payment plan agreements, we use internal and external data sources to create a credit risk score to measure the credit quality of a customer and to determine eligibility for the device payment program. If a customer is either new to Verizon Wireless or has less than 210 days of customer tenure with Verizon Wireless (a new customer), the credit decision process relies more heavily on external data sources. If the customer has 210 days or more of customer tenure with Verizon Wireless (an existing customer), the credit decision process relies on internal data sources. Verizon Wireless’ experience has been that the payment attributes of longer tenured customers are highly predictive when considering their ability to pay in the future. External data sources include obtaining a credit report from a national consumer credit reporting agency, if available. Verizon Wireless uses its internal data and/or credit data obtained from the credit reporting agencies to create a custom credit risk score. The custom credit risk score is generated automatically (except with respect to a small number of applications where the information needs manual intervention) from the applicant’s credit data using Verizon Wireless’ proprietary custom credit models, which are empirically derived, demonstrably and statistically sound. The credit risk score measures the likelihood that the potential customer will become severely delinquent and be disconnected for non-payment. Based on the custom credit risk score, we assign each customer to a credit class, each of which has a specified required down payment percentage and specified credit limits. Device payment plan agreement receivables originated from customers assigned to credit classes requiring no down payment represent the lowest risk. Device payment plan agreement receivables originated from customers assigned to credit classes requiring a down payment represent a higher risk. Subsequent to origination, Verizon Wireless monitors delinquency and write-off The balance and aging of the device payment plan agreement receivables on a gross basis was as follows: (dollars in millions) At December 31, 2016 2015 Unbilled $ 11,089 $ 3,420 Billed: Current 557 227 Past due 151 73 Device payment plan agreement receivables, gross $ 11,797 $ 3,720 Activity in the allowance for credit losses for the device payment plan agreement receivables was as follows: (dollars in millions) Balance at January 1, 2016 $ 444 Bad debt expense 692 Write-offs (479 ) Allowance related to receivables sold 28 Other 3 Balance at December 31, 2016 $ 688 Customers that entered into device payment plan agreements prior to May 31, 2015 have the right to upgrade their device, subject to certain conditions, including making a stated portion of the required device payment plan agreement payments and trading in their device in good working order. Generally, customers entering into device payment plan agreements on or after June 1, 2015 are required to repay all amounts due under their device payment plan agreements before being eligible to upgrade their device. However, on select devices, certain marketing promotions have been revocably offered to customers to upgrade to a new device after paying down a certain specified portion of the required device payment plan agreement amount as well as trading in their device in good working order. When a customer enters into a device payment plan agreement with the right to upgrade to a new device, we record a guarantee liability in accordance with our accounting policy. Sales of Wireless Device Payment Plan Agreement Receivables During 2015 and 2016, we established programs pursuant to a Receivables Purchase Agreement, or RPA, to sell from time to time, on an uncommitted basis, eligible device payment plan agreement receivables to a group of primarily relationship banks (Purchasers) on both a revolving (Revolving Program) and non-revolving (Non-Revolving Under the Non-Revolving We continue to bill and collect on the receivables in exchange for a monthly servicing fee, which is not material. Eligible receivables under the RPA excluded device payment plan agreements where a new customer was required to provide a down payment. The sales of receivables under the RPA did not have a material impact on our consolidated statements of income. The cash proceeds received from the Purchasers are recorded within Cash flows provided by operating activities on our consolidated statements of cash flows. During 2016, we sold $3.3 billion of receivables, net of allowance and imputed interest, under the Revolving Program. We received cash proceeds from new transfers of $2.0 billion and cash proceeds from reinvested collections of $0.9 billion, and recorded a deferred purchase price of $0.4 billion. During 2015, we sold $6.1 billion of receivables, net of allowances and imputed interest, under the Non-Revolving Deferred Purchase Price Under the RPA, the deferred purchase price was initially recorded at fair value, based on the remaining device payment amounts expected to be collected, adjusted, as applicable, for the time value of money and by the timing and estimated value of the device trade-in trade-in Variable Interest Entities (VIEs) Under the RPA, the Sellers’ sole business consists of the acquisition of the receivables from Cellco Partnership and certain other affiliates of Verizon and the resale of the receivables to the Purchasers. The assets of the Sellers are not available to be used to satisfy obligations of any Verizon entities other than the Sellers. We determined that the Sellers are VIEs as they lack sufficient equity to finance their activities. Given that we have the power to direct the activities of the Sellers that most significantly impact the Sellers’ economic performance, we are deemed to be the primary beneficiary of the Sellers. As a result, we consolidate the assets and liabilities of the Sellers into our consolidated financial statements. Continuing Involvement Verizon has continuing involvement with the sold receivables as it services the receivables. We continue to service the customer and their related receivables on behalf of the Purchasers, including facilitating customer payment collection, in exchange for a monthly servicing fee. While servicing the receivables, the same policies and procedures are applied to the sold receivables that apply to owned receivables, and we continue to maintain normal relationships with our customers. The credit quality of the customers we continue to service is consistent throughout the periods presented. To date, we have collected and remitted approximately $7.1 billion, net of fees. To date, cash proceeds received, net of remittances, were $3.0 billion. During 2016, credit losses on receivables sold were $0.2 billion. In addition, we have continuing involvement related to the sold receivables as we may be responsible for absorbing additional credit losses pursuant to the agreements. The Company’s maximum exposure to loss related to the involvement with the Sellers is limited to the amount of the outstanding deferred purchase price, which was $1.6 billion as of December 31, 2016. The maximum exposure to loss represents an estimated loss that would be incurred under severe, hypothetical circumstances whereby the Company would not receive the portion of the proceeds withheld by the Purchasers. As we believe the probability of these circumstances occurring is remote, the maximum exposure to loss is not an indication of the Company’s expected loss. |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurements and Financial Instruments | Note 8 Fair Value Measurements and Financial Instruments Recurring Fair Value Measurements The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2016: (dollars in millions) Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Other assets: Equity securities $ 123 $ – $ – $ 123 Fixed income securities 10 566 – 576 Interest rate swaps – 71 – 71 Cross currency swaps – 45 – 45 Interest rate cap – 10 – 10 Total $ 133 $ 692 $ – $ 825 Liabilities: Other liabilities: Interest rate swaps $ – $ 236 $ – $ 236 Cross currency swaps – 1,803 – 1,803 Total $ – $ 2,039 $ – $ 2,039 The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2015: (dollars in millions) Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Short-term investments: Equity securities $ 265 $ – $ – $ 265 Fixed income securities – 85 – 85 Other current assets: Fixed income securities 250 – – 250 Other assets: Fixed income securities – 928 – 928 Interest rate swaps – 128 – 128 Net investment hedges – 13 – 13 Cross currency swaps – 1 – 1 Total $ 515 $ 1,155 $ – $ 1,670 Liabilities: Other liabilities: Interest rate swaps $ – $ 19 $ – $ 19 Cross currency swaps – 1,638 – 1,638 Forward interest rate swaps – 24 – 24 Total $ – $ 1,681 $ – $ 1,681 (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 Equity securities consist of investments in common stock of domestic and international corporations measured using quoted prices in active markets. Fixed income securities consist primarily of investments in municipal bonds as well as U.S. Treasury securities. We use quoted prices in active markets for our U.S. Treasury securities, therefore these securities are classified as Level 1. For all other fixed income securities that do not have quoted prices in active markets, we use alternative matrix pricing resulting in these debt securities being classified as Level 2. Derivative contracts are valued using models based on readily observable market parameters for all substantial terms of our derivative contracts and thus are classified within Level 2. We use mid-market We recognize transfers between levels of the fair value hierarchy as of the end of the reporting period. There were no transfers within the fair value hierarchy during 2016. Fair Value of Short-term and Long-term Debt The fair value of our debt is determined using various methods, including quoted prices for identical terms and maturities, which is a Level 1 measurement, as well as quoted prices for similar terms and maturities in inactive markets and future cash flows discounted at current rates, which are Level 2 measurements. The fair value of our short-term and long-term debt, excluding capital leases, was as follows: (dollars in millions) At December 31, 2016 2015 Carrying Amount Fair Value Carrying Amount Fair Value Short- and long-term debt, excluding capital leases $ 107,128 $ 117,584 $ 108,772 $ 118,216 Derivative Instruments Interest Rate Swaps We enter into interest rate swaps to achieve a targeted mix of fixed and variable rate debt. We principally receive fixed rates and pay variable rates based on LIBOR, resulting in a net increase or decrease to Interest expense. These swaps are designated as fair value hedges and hedge against interest rate risk exposure of designated debt issuances. We record the interest rate swaps at fair value on our consolidated balance sheets as assets and liabilities. Changes in the fair value of the interest rate swaps are recorded to Interest expense, which are offset by changes in the fair value of the hedged debt due to changes in interest rates. During 2015, we entered into interest rate swaps with a total notional value of $5.8 billion. During 2016, we entered into interest rate swaps with a total notional value of $6.3 billion and settled $0.9 billion notional amount of interest rate swaps. The ineffective portion of these interest rate swaps was not material at December 31, 2016 and 2015. Forward Interest Rate Swaps In order to manage our exposure to future interest rate changes, we have entered into forward interest rate swaps. We designated these contracts as cash flow hedges. During 2015, we settled $2.0 billion notional amount of forward interest rate swaps for a pre-tax pre-tax pre-tax Cross Currency Swaps We have entered into cross currency swaps designated as cash flow hedges to exchange our British Pound Sterling and Euro-denominated debt into U.S. dollars and to fix our future interest and principal payments in U.S. dollars, as well as to mitigate the impact of foreign currency transaction gains or losses. During 2015, we settled $0.6 billion of cross currency swaps on maturity. During 2016, we entered into cross currency swaps with a total notional value of $3.3 billion and settled $0.1 billion notional amount of cross currency swaps upon redemption of the related debt. A portion of the gains and losses recognized in Other comprehensive income (loss) was reclassified to Other income and (expense), net to offset the related pre-tax pre-tax Net Investment Hedges We have designated certain foreign currency instruments as net investment hedges to mitigate foreign exchange exposure related to non-U.S. de-designated Undesignated Derivatives We also have the following derivative which we use as an economic hedge but for which we have elected not to apply hedge accounting. Interest Rate Caps We enter into interest rate caps to mitigate our interest exposure to interest rate increases on our ABS Financing Facility. During 2016, we entered into such interest rate caps with a notional value of $2.5 billion and recognized an immaterial reduction in Interest expense. The following table sets forth the notional amounts of our outstanding derivative instruments: At December 31, 2016 At December 31, 2015 (dollars in millions) Notional Amount Notional Amount Interest rate swaps $ 13,099 $ 7,620 Forward interest rate swaps – 750 Cross currency swaps 12,890 9,675 Net investment hedge – 864 Interest rate caps 2,540 – Concentrations of Credit Risk Financial instruments that subject us to concentrations of credit risk consist primarily of temporary cash investments, short-term and long-term investments, trade receivables, including device payment plan agreement receivables, certain notes receivable, including lease receivables, and derivative contracts. Our policy is to deposit our temporary cash investments with major financial institutions. Counterparties to our derivative contracts are also major financial institutions with whom we have negotiated derivatives agreements (ISDA master agreement) and credit support annex agreements which provide rules for collateral exchange. We generally apply collateralized arrangements with our counterparties for uncleared derivatives to mitigate credit risk. At December 31, 2016 and 2015, we posted collateral of approximately $0.2 billion and $0.1 billion, respectively, related to derivative contracts under collateral exchange arrangements, which were recorded as Prepaid expenses and other in our consolidated balance sheets. During the first and second quarters of 2015, we paid an immaterial amount of cash to enter into amendments to certain collateral exchange arrangements. These amendments suspend cash collateral posting for a specified period of time by both counterparties. We are in the process of negotiating extensions to amendments expiring during 2017. We may enter into swaps on an uncollateralized basis in certain circumstances. While we may be exposed to credit losses due to the nonperformance of our counterparties, we consider the risk remote and do not expect the settlement of these transactions to have a material effect on our results of operations or financial condition. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Stock-Based Compensation | Note 9 Stock-Based Compensation Verizon Communications Long-Term Incentive Plan The Verizon Communications Inc. Long-Term Incentive Plan (the Plan) permits the granting of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance stock units and other awards. The maximum number of shares available for awards from the Plan is 119.6 million shares. 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 generally classified as equity awards because the RSUs will be paid in Verizon common stock upon vesting. The RSU equity awards are measured using the grant date fair value of Verizon common stock and are not remeasured at the end of each reporting period. Dividend equivalent units are also paid to participants at the time the RSU award is paid, and in the same proportion as the RSU award. Performance Stock Units The Plan also provides for grants of Performance Stock Units (PSUs) that generally vest at the end of the third year after the grant. As defined by the Plan, the Human Resources Committee of the Board of Directors determines the number of PSUs a participant earns based on the extent to which the corresponding performance goals have been achieved over the three-year performance cycle. The PSUs are classified as liability awards because the PSU awards are 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 Verizon common 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 granted and cancelled activity for the PSU award includes adjustments for the performance goals achieved. The following table summarizes Verizon’s Restricted Stock Unit and Performance Stock Unit activity: (shares in thousands) Restricted Stock Units Performance Stock Units Outstanding January 1, 2014 16,193 23,724 Granted 5,278 7,359 Payments (6,202 ) (9,153 ) Cancelled/Forfeited (262 ) (1,964 ) Outstanding December 31, 2014 15,007 19,966 Granted 4,958 7,044 Payments (5,911 ) (6,732 ) Cancelled/Forfeited (151 ) (3,075 ) Outstanding December 31, 2015 13,903 17,203 Granted 4,409 6,391 Payments (4,890 ) (4,702 ) Cancelled/Forfeited (114 ) (1,143 ) Adjustments – 170 Outstanding December 31, 2016 13,308 17,919 As of December 31, 2016, unrecognized compensation expense related to the unvested portion of Verizon’s RSUs and PSUs was approximately $0.3 billion and is expected to be recognized over approximately two years. The RSUs granted in 2016 and 2015 have weighted-average grant date fair values of $51.86 and $48.15 per unit, respectively. During 2016, 2015 and 2014, we paid $0.4 billion, $0.4 billion and $0.6 billion, respectively, to settle RSUs and PSUs classified as liability awards. Stock-Based Compensation Expense After-tax |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2016 | |
Employee Benefits | Note 10 Employee Benefits We maintain non-contributory non-contributory, Pension and Other Postretirement Benefits Pension and other postretirement benefits for certain employees are subject to collective bargaining agreements. Modifications in benefits have been bargained from time to time, and we may also periodically amend the benefits in the management plans. The following tables summarize benefit costs, as well as the benefit obligations, plan assets, funded status and rate assumptions associated with pension and postretirement health care and life insurance benefit plans. Obligations and Funded Status (dollars in millions) Pension Health Care and Life At December 31, 2016 2015 2016 2015 Change in Benefit Obligations Beginning of year $ 22,016 $ 25,320 $ 24,223 $ 27,097 Service cost 322 374 193 324 Interest cost 677 969 746 1,117 Plan amendments 428 – (5,142 ) (45 ) Actuarial (gain) loss, net 1,017 (1,361 ) 1,289 (2,733 ) Benefits paid (938 ) (971 ) (1,349 ) (1,370 ) Curtailment and termination benefits 4 – – – Settlements paid (1,270 ) (2,315 ) – – Divestiture (Note 2) (1,144 ) – (310 ) (167 ) End of year $ 21,112 $ 22,016 $ 19,650 $ 24,223 Change in Plan Assets Beginning of year $ 16,124 $ 18,548 $ 1,760 $ 2,435 Actual return on plan assets 882 118 35 28 Company contributions 837 744 917 667 Benefits paid (938 ) (971 ) (1,349 ) (1,370 ) Settlements paid (1,270 ) (2,315 ) – – Divestiture (Note 2) (972 ) – – – End of year $ 14,663 $ 16,124 $ 1,363 $ 1,760 Funded Status End of year $ (6,449 ) $ (5,892 ) $ (18,287 ) $ (22,463 ) As a result of the Access Line Sale which closed on April 1, 2016, we derecognized $0.7 billion of defined benefit pension and other postretirement benefit plan obligations, including $0.2 billion that had been reclassified to Non-current (dollars in millions) Pension Health Care and Life At December 31, 2016 2015 2016 2015 Amounts recognized on the balance sheet Noncurrent assets $ 2 $ 349 $ – $ – Current liabilities (88 ) (93 ) (639 ) (695 ) Noncurrent liabilities (6,363 ) (6,148 ) (17,648 ) (21,768 ) Total $ (6,449 ) $ (5,892 ) $ (18,287 ) $ (22,463 ) Amounts recognized in Accumulated Other (Pre-tax) Prior Service Cost (Benefit) $ 443 $ (51 ) $ (6,072 ) $ (2,038 ) Total $ 443 $ (51 ) $ (6,072 ) $ (2,038 ) The accumulated benefit obligation for all defined benefit pension plans was $21.1 billion and $22.0 billion at December 31, 2016 and 2015, respectively. 2016 Collective Bargaining Negotiations In the collective bargaining agreements ratified in June 2016, Verizon’s annual postretirement benefit obligation for retiree healthcare remains capped at the levels established by the previous contracts ratified in 2012. Effective January 2016, prior to reaching these new collective bargaining agreements, certain retirees began to pay for the costs of retiree healthcare in accordance with the provisions relating to caps in the previous contracts. In reaching new collective bargaining agreements in 2016, there is a mutual understanding that the substantive postretirement benefit plans provide that Verizon’s annual postretirement benefit obligation for retiree healthcare is capped and, accordingly, we began accounting for the contractual healthcare caps in June 2016. We also adopted changes to our defined benefit pension plans and other postretirement benefit plans to reflect the agreed upon terms and conditions of the collective bargaining agreements. The impact was a reduction in our postretirement benefit plan obligations of approximately $5.1 billion and an increase in our defined benefit pension plan obligations of approximately $0.4 billion, which have been recorded as a net increase to Accumulated other comprehensive income of $2.9 billion (net of taxes of $1.8 billion). The amount recorded in Accumulated other comprehensive income will be reclassified to net periodic benefit cost on a straight-line basis over the average remaining service period of the respective plans’ participants which, on a weighted-average basis, is 12.2 years for defined benefit pension plans and 7.8 years for other postretirement benefit plans. The above-noted reclassification resulted in a decrease to net periodic benefit cost and increase to pre-tax Information for pension plans with an accumulated benefit obligation in excess of plan assets follows: (dollars in millions) At December 31, 2016 2015 Projected benefit obligation $ 21,048 $ 21,694 Accumulated benefit obligation 20,990 21,636 Fair value of plan assets 14,596 15,452 Net Periodic 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 Health Care and Life Years Ended December 31, 2016 2015 2014 2016 2015 2014 Service cost $ 322 $ 374 $ 327 $ 193 $ 324 $ 258 Amortization of prior service cost (credit) 21 (5 ) (8 ) (657 ) (287 ) (253 ) Expected return on plan assets (1,045 ) (1,270 ) (1,181 ) (54 ) (101 ) (161 ) Interest cost 677 969 1,035 746 1,117 1,107 Remeasurement (gain) loss, net 1,198 (209 ) 2,380 1,300 (2,659 ) 4,615 Net periodic benefit (income) cost 1,173 (141 ) 2,553 1,528 (1,606 ) 5,566 Curtailment and termination benefits 4 – 11 – – – Total $ 1,177 $ (141 ) $ 2,564 $ 1,528 $ (1,606 ) $ 5,566 Other pre-tax (dollars in millions) Pension Health Care and Life At December 31, 2016 2015 2016 2015 Prior service cost (benefit) $ 428 $ – $ (5,142 ) $ (45 ) Reversal of amortization items Prior service cost (benefit) (21 ) 5 657 287 Amounts reclassified to net income 87 – 451 – Total recognized in other comprehensive (income) loss (pre-tax) $ 494 $ 5 $ (4,034 ) $ 242 Amounts reclassified to net income for the year ended December 31, 2016 includes the reclassification to Selling, general and administrative expense of a pre-tax The estimated prior service cost for the defined benefit pension plans that will be amortized from Accumulated other comprehensive income into net periodic benefit (income) cost over the next fiscal year is not significant. The estimated prior service cost for the defined benefit postretirement plans that will be amortized from Accumulated other comprehensive income into net periodic benefit (income) cost over the next fiscal year is ($0.9) billion. Assumptions The weighted-average assumptions used in determining benefit obligations follow: Pension Health Care and Life At December 31, 2016 2015 2016 2015 Discount Rate 4.30 % 4.60 % 4.20 % 4.60 % Rate of compensation increases 3.00 3.00 N/A N/A The weighted-average assumptions used in determining net periodic cost follow: Pension Health Care and Life At December 31, 2016 2015 2014 2016 2015 2014 Discount rate in effect for determining service cost 4.50 % 4.20 % 5.00 % 4.50 % 4.20 % 5.00 % Discount rate in effect for determining interest cost 3.20 4.20 5.00 3.40 4.20 5.00 Expected return on plan assets 7.00 7.25 7.25 3.80 4.80 5.50 Rate of compensation increases 3.00 3.00 3.00 N/A N/A N/A Effective January 1, 2016, we changed the method we use to estimate the interest component of net periodic benefit cost for pension and other postretirement benefits. Historically, we estimated the interest cost component utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. We have elected to utilize a full yield curve approach in the estimation of interest cost by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. We have made this change to provide a more precise measurement of interest cost by improving the correlation between projected benefit cash flows to the corresponding spot yield curve rates. We have accounted for this change as a change in accounting estimate and accordingly accounted for it prospectively. For the year ended December 31, 2016, the impact of this change on our consolidated GAAP results was a reduction of the interest cost component of net periodic benefit cost by approximately $0.4 billion. The use of the full yield curve approach does not impact how we measure our total benefit obligations at year end or our annual net periodic benefit cost as any change in the interest cost component is completely offset by the actuarial gain or loss measured at year end which is immediately recognized in the income statement. Accordingly, this change in estimate did not impact our income from continuing operations, net income or earnings per share as measured on an annual basis. In determining our pension and other postretirement benefit obligations, we used a weighted-average discount rate of 4.2%. The rate was selected to approximate the composite interest rates available on a selection of high-quality bonds available in the market at December 31, 2016. The bonds selected had maturities that coincided with the time periods during which benefits payments are expected to occur, were non-callable In order to project the long-term target investment return for the total portfolio, estimates are prepared for the total return of each major asset class over the subsequent 10-year The assumed health care cost trend rates follow: Health Care and Life At December 31, 2016 2015 2014 Healthcare cost trend rate assumed for next year 6.50 % 6.00 % 6.50 % Rate to which cost trend rate gradually declines 4.50 4.50 4.75 Year the rate reaches the level it is assumed to remain thereafter 2025 2024 2022 A one-percentage (dollars in millions) One-Percentage Increase Decrease Effect on 2016 service and interest cost $ 100 $ (81 ) Effect on postretirement benefit obligation as of December 31, 2016 609 (616 ) Plan Assets The company’s overall investment strategy is to achieve a mix of assets which allows us to meet projected benefit payments while taking into consideration risk and return. While target allocation percentages will vary over time, the current target allocation for plan assets is designed so that 65% of the assets have the objective of achieving a return in excess of the growth in liabilities (comprised of public equities, private equities, real estate, hedge funds and emerging debt) and 35% of the assets are invested as liability hedging assets (where cash flows from investments better match projected benefit payments, typically longer duration fixed income). This allocation will shift as funded status improves to a higher allocation of liability hedging assets. Target policies will be revisited periodically to ensure they are in line with fund objectives. Both active and passive management approaches are used depending on perceived market efficiencies and various other factors. Due to our diversification and risk control processes, there are no significant concentrations of risk, in terms of sector, industry, geography or company names. Pension and healthcare and life plans assets do not include significant amounts of Verizon common stock. Pension Plans The fair values for the pension plans by asset category at December 31, 2016 are as follows: (dollars in millions) Asset Category Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 1,228 $ 1,219 $ 9 $ – Equity securities 1,883 1,883 – – Fixed income securities U.S. Treasuries and agencies 1,251 880 371 – Corporate bonds 2,375 152 2,126 97 International bonds 713 20 679 14 Real estate 655 – – 655 Other Private equity 624 – – 624 Hedge funds 526 – 522 4 Total investments at fair value 9,255 4,154 3,707 1,394 Investments measured at NAV 5,408 Total $ 14,663 $ 4,154 $ 3,707 $ 1,394 The fair values for the pension plans by asset category at December 31, 2015 are as follows: (dollars in millions) Asset Category Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 1,387 $ 1,375 $ 12 $ – Equity securities 2,237 2,234 – 3 Fixed income securities U.S. Treasuries and agencies 1,265 884 381 – Corporate bonds 2,350 192 2,030 128 International bonds 710 33 657 20 Other 2 – 2 – Real estate 873 – – 873 Other Private equity 609 – – 609 Hedge funds 194 – 194 – Total investments at fair value 9,627 4,718 3,276 1,633 Investments measured at NAV 6,497 Total $ 16,124 $ 4,718 $ 3,276 $ 1,633 The following is a reconciliation of the beginning and ending balance of pension plan assets that are measured at fair value using significant unobservable inputs: (dollars in millions) Equity Corporate International Real Estate Private Hedge Total Balance at January 1, 2015 $ 1 $ 100 $ 18 $ 692 $ 624 $ – $ 1,435 Actual gain (loss) on plan assets – 6 (2 ) 93 45 – 142 Purchases and sales – 18 5 (24 ) (60 ) – (61 ) Transfers in (out) 2 4 (1 ) 112 – – 117 Balance at December 31, 2015 $ 3 $ 128 $ 20 $ 873 $ 609 $ – $ 1,633 Actual gain (loss) on plan assets (1 ) (9 ) (2 ) 169 12 – 169 Purchases and sales (2 ) (22 ) (4 ) (387 ) 3 4 (408 ) Balance at December 31, 2016 $ – $ 97 $ 14 $ 655 $ 624 $ 4 $ 1,394 Health Care and Life Plans The fair values for the other postretirement benefit plans by asset category at December 31, 2016 are as follows: (dollars in millions) Asset Category Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 131 $ 1 $ 130 $ – Equity securities 463 463 – – Fixed income securities U.S. Treasuries and agencies 23 22 1 – Corporate bonds 170 145 25 – International bonds 60 30 30 – Total investments at fair value 847 661 186 – Investments measured at NAV 516 Total $ 1,363 $ 661 $ 186 $ – The fair values for the other postretirement benefit plans by asset category at December 31, 2015 are as follows: (dollars in millions) Asset Category Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 162 $ – $ 162 $ – Equity securities 768 752 16 – Fixed income securities U.S. Treasuries and agencies 21 19 2 – Corporate bonds 208 133 75 – International bonds 79 19 60 – Total investments at fair value 1,238 923 315 – Investments measured at NAV 522 Total $ 1,760 $ 923 $ 315 $ – The following are general descriptions of asset categories, as well as the valuation methodologies and inputs used to determine the fair value of each major category of assets. Cash and cash equivalents include short-term investment funds, primarily in diversified portfolios of investment grade money market instruments and are valued using quoted market prices or other valuation methods. Investments in securities traded on national and foreign securities exchanges are valued by the trustee at the last reported sale prices on the last business day of the year or, if no sales were reported on that date, at the last reported bid prices. Government obligations, corporate bonds, international bonds and asset-backed securities are valued using matrix prices with input from independent third-party valuation sources. Over-the-counter Commingled funds not traded on national exchanges are priced by the funds’ custodian or administrator at NAV. Commingled funds held by third-party custodians appointed by the fund managers provide the fund managers with a NAV. The fund managers have the responsibility for providing this information to the custodian of the respective plan. The investment manager of the entity values venture capital, corporate finance, and natural resource limited partnership investments. Real estate investments are valued at amounts based upon appraisal reports prepared by either independent real estate appraisers or the investment manager using discounted cash flows or market comparable data. Loans secured by mortgages are carried at the lesser of the unpaid balance or appraised value of the underlying properties. The values assigned to these investments are based upon available and current market information and do not necessarily represent amounts which might ultimately be realized. Because of the inherent uncertainty of valuation, estimated fair values might differ significantly from the values that would have been used had a ready market for the securities existed. These differences could be material. Forward currency contracts, futures, and options are valued by the trustee at the exchange rates and market prices prevailing on the last business day of the year. Both exchange rates and market prices are readily available from published sources. These securities are classified by the asset class of the underlying holdings. Hedge funds are valued by the custodian at NAV based on statements received from the investment manager. These funds are valued in accordance with the terms of their corresponding offering or private placement memoranda. Commingled funds, hedge funds, venture capital, corporate finance, natural resource and real estate limited partnership investments for which fair value is measured using the NAV per share as a practical expedient are not leveled within the fair value hierarchy and are included as a reconciling item to total investments. Employer Contributions In 2016, we contributed $0.8 billion to our qualified pension plans which included $0.2 billion of discretionary contributions, $0.1 billion to our nonqualified pension plans and $1.1 billion to our other postretirement benefit plans. We anticipate a minimum contribution of $0.6 billion to our qualified pension plans in 2017. Nonqualified pension plans contributions are estimated to be $0.1 billion and contributions to our other postretirement benefit plans are estimated to be $0.8 billion in 2017. Estimated Future Benefit Payments The benefit payments to retirees are expected to be paid as follows: (dollars in millions) Year Pension Benefits Health Care and Life 2017 $ 2,356 $ 1,259 2018 1,790 1,284 2019 1,722 1,290 2020 1,204 1,302 2021 1,189 1,327 2022-2026 5,777 6,616 Savings Plan and Employee Stock Ownership Plans We maintain four leveraged employee stock ownership plans (ESOP). We match a certain percentage of eligible employee contributions to the savings plans with shares of our common stock from this ESOP. At December 31, 2016, the number of allocated shares of common stock in this ESOP was 55 million. There were no unallocated shares of common stock in this ESOP at December 31, 2016. All leveraged ESOP shares are included in earnings per share computations. Total savings plan costs were $0.7 billion in 2016, $0.9 billion in 2015 and $0.9 billion in 2014. Severance Benefits The following table provides an analysis of our actuarially determined severance liability recorded in accordance with the accounting standard regarding employers’ accounting for postemployment benefits: (dollars in millions) Year Beginning of Year Charged to Payments Other End of Year 2014 $ 757 $ 531 $ (406 ) $ (7 ) $ 875 2015 875 551 (619 ) (7 ) 800 2016 800 417 (583 ) 22 656 Severance, Pension and Benefit Charges (Credits) During 2016, we recorded net pre-tax (MP-2016) The net pre-tax pre-tax lump-sum pre-tax pre-tax pre-tax lump-sum pre-tax lump-sum pre-tax During 2015, we recorded net pre-tax (MP-2015) During 2014, we recorded net pre-tax (RP-2014 MP-2014) |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Taxes | Note 11 Taxes The components of income before provision for income taxes are as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Domestic $ 20,047 $ 27,639 $ 12,992 Foreign 939 601 2,278 Total $ 20,986 $ 28,240 $ 15,270 The components of the provision for income taxes are as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Current Federal $ 7,451 $ 5,476 $ 2,657 Foreign 148 70 81 State and Local 842 803 668 Total 8,441 6,349 3,406 Deferred Federal (933 ) 3,377 (51 ) Foreign (2 ) 9 (9 ) State and Local (128 ) 130 (32 ) Total (1,063 ) 3,516 (92 ) Total income tax provision $ 7,378 $ 9,865 $ 3,314 The following table shows the principal reasons for the difference between the effective income tax rate and the statutory federal income tax rate: Years Ended December 31, 2016 2015 2014 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % State and local income tax rate, net of federal tax benefits 2.2 2.1 2.7 Affordable housing credit (0.7 ) (0.5 ) (1.0 ) Employee benefits including ESOP dividend (0.5 ) (0.4 ) (0.7 ) Disposition of Omnitel Interest – – (5.9 ) Noncontrolling interests (0.6 ) (0.5 ) (5.0 ) Non-deductible 2.2 – – Other, net (2.4 ) (0.8 ) (3.4 ) Effective income tax rate 35.2 % 34.9 % 21.7 % The effective income tax rate for 2016 was 35.2% compared to 34.9% for 2015. The increase in the effective income tax rate was primarily due to the impact of $527 million included in the provision for income taxes from goodwill not deductible for tax purposes in connection with the Access Line Sale on April 1, 2016. This increase was partially offset by the impact that lower income before income taxes in the current period has on each of the reconciling items specified in the table above. The decrease in the provision for income taxes was primarily due to lower income before income taxes due to severance, pension and benefit charges recorded in 2016 compared to severance, pension and benefit credits recorded in 2015. The effective income tax rate for 2015 was 34.9% compared to 21.7% for 2014. The increase in the effective income tax rate and provision for income taxes was primarily due to the impact of higher income before income taxes due to severance, pension and benefit credits recorded in 2015 compared to severance, pension and benefit charges recorded in 2014, as well as tax benefits associated with the utilization of certain tax credits in connection with the Omnitel Transaction in 2014. The amounts of cash taxes paid are as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Income taxes, net of amounts refunded $ 9,577 $ 5,293 $ 4,093 Employment taxes 1,196 1,284 1,290 Property and other taxes 1,796 1,868 1,797 Total $ 12,569 $ 8,445 $ 7,180 The increase in cash taxes paid during 2016 compared to 2015 was due to a $3.2 billion increase in income taxes paid primarily as a result of the Access Line Sale. Deferred taxes arise because of differences in the book and tax bases of certain assets and liabilities. Significant components of deferred tax assets and liabilities are as follows: (dollars in millions) At December 31, 2016 2015 Employee benefits $ 10,453 $ 12,220 Tax loss and credit carry forwards 3,318 4,099 Other - assets 2,632 2,504 16,403 18,823 Valuation allowances (2,473 ) (3,414 ) Deferred tax assets 13,930 15,409 Spectrum and other intangible amortization 31,404 29,945 Depreciation 22,848 24,725 Other - liabilities 5,642 6,125 Deferred tax liabilities 59,894 60,795 Net deferred tax liability $ 45,964 $ 45,386 At December 31, 2016, undistributed earnings of our foreign subsidiaries indefinitely invested outside the United States amounted to approximately $2.3 billion. The majority of Verizon’s cash flow is generated from domestic operations and we are not dependent on foreign cash or earnings to meet our funding requirements, nor do we intend to repatriate these undistributed foreign earnings to fund U.S. operations. Furthermore, a portion of these undistributed earnings represent amounts that legally must be kept in reserve in accordance with certain foreign jurisdictional requirements and are unavailable for distribution or repatriation. As a result, we have not provided U.S. deferred taxes on these undistributed earnings because we intend that they will remain indefinitely reinvested outside of the United States and therefore unavailable for use in funding U.S. operations. Determination of the amount of unrecognized deferred taxes related to these undistributed earnings is not practicable. At December 31, 2016, we had net after-tax after-tax During 2016, the valuation allowance decreased approximately $0.9 billion. The balance of the valuation allowance at December 31, 2016 is primarily related to state and foreign tax losses and the 2016 activity is primarily the result of the utilization and expiration of certain tax attributes. Unrecognized Tax Benefits A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows: (dollars in millions) 2016 2015 2014 Balance at January 1, $ 1,635 $ 1,823 $ 2,130 Additions based on tax positions related to the current year 338 194 80 Additions for tax positions of prior years 188 330 627 Reductions for tax positions of prior years (153 ) (412 ) (278 ) Settlements (18 ) (79 ) (239 ) Lapses of statutes of limitations (88 ) (221 ) (497 ) Balance at December 31, $ 1,902 $ 1,635 $ 1,823 Included in the total unrecognized tax benefits at December 31, 2016, 2015 and 2014 is $1.5 billion, $1.2 billion and $1.3 billion, respectively, that if recognized, would favorably affect the effective income tax rate. We recognized the following net after-tax Years Ended December 31, (dollars in millions) 2016 $ (25 ) 2015 43 2014 92 The after-tax At December 31, (dollars in millions) 2016 $ 142 2015 125 Verizon and/or its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state, local and foreign jurisdictions. As a large taxpayer, we are under audit by the Internal Revenue Service (IRS) and multiple state and foreign jurisdictions for various open tax years. The IRS is currently examining the Company’s U.S. income tax returns for tax years 2013-2014, Cellco Partnership’s U.S. income tax return for tax year 2013, and AOL’s U.S. income tax returns for tax years 2011-2012. Tax controversies are ongoing for tax years as early as 2006. The amount of the liability for unrecognized tax benefits will change in the next twelve months due to the expiration of the statute of limitations in various jurisdictions and it is reasonably possible that various current tax examinations will conclude or require reevaluations of the Company’s tax positions during this period. An estimate of the range of the possible change cannot be made until these tax matters are further developed or resolved. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Information | Note 12 Segment Information Reportable Segments We have two reportable segments, Wireless and Wireline, 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, consistent with the chief operating decision maker’s assessment of segment performance. Our segments and their principal activities consist of the following: Segment Description Wireless Wireless’ communications products and services include wireless voice and data services and equipment sales, which are provided to consumer, business and government customers across the United States. Wireline Wireline’s voice, data and video communications products and enhanced services include broadband video and data, corporate networking solutions, data center and cloud services, security and managed network services and local and long distance voice services. We provide these products and services to consumers in the United States, as well as to carriers, businesses and government customers both in the United States and around the world. Corporate and other includes the results of our digital media, including AOL, telematics and other businesses, investments in unconsolidated businesses, unallocated corporate expenses, pension and other employee benefit related costs and lease financing. Corporate and other also includes the historical results of divested operations and other adjustments and gains and losses that are not allocated in assessing segment performance due to their non-operational On April 1, 2016, we completed the Access Line Sale. On July 1, 2014, our Wireline segment sold a non-strategic In addition, Corporate and other includes the results of our telematics businesses for all periods presented, which were reclassified from our Wireline segment effective April 1, 2016. The impact of this reclassification was not material to our consolidated financial statements or our segment results of operations. The reconciliation of segment operating revenues and expenses to consolidated operating revenues and expenses below also includes those items of a non-operational non-operational We have adjusted prior period consolidated and segment information, where applicable, to conform to current year presentation. The following table provides operating financial information for our two reportable segments: (dollars in millions) 2016 Wireless Wireline Total Reportable External Operating Revenues Service $ 66,362 $ – $ 66,362 Equipment 17,511 – 17,511 Other 4,915 – 4,915 Consumer retail – 12,751 12,751 Small business – 1,651 1,651 Mass Markets – 14,402 14,402 Global Enterprise – 11,620 11,620 Global Wholesale – 4,052 4,052 Other – 320 320 Intersegment revenues 398 951 1,349 Total operating revenues 89,186 31,345 120,531 Cost of services 7,988 18,619 26,607 Wireless cost of equipment 22,238 – 22,238 Selling, general and administrative expense 19,924 6,585 26,509 Depreciation and amortization expense 9,183 6,101 15,284 Total operating expenses 59,333 31,305 90,638 Operating income $ 29,853 $ 40 $ 29,893 Assets $ 211,345 $ 66,679 $ 278,024 Plant, property and equipment, net 42,898 40,205 83,103 Capital expenditures 11,240 4,504 15,744 (dollars in millions) 2015 Wireless Wireline Total Reportable External Operating Revenues Service $ 70,305 $ – $ 70,305 Equipment 16,924 – 16,924 Other 4,294 – 4,294 Consumer retail – 12,696 12,696 Small business – 1,744 1,744 Mass Markets – 14,440 14,440 Global Enterprise – 12,048 12,048 Global Wholesale – 4,301 4,301 Other – 338 338 Intersegment revenues 157 967 1,124 Total operating revenues 91,680 32,094 123,774 Cost of services 7,803 18,816 26,619 Wireless cost of equipment 23,119 – 23,119 Selling, general and administrative expense 21,805 7,256 29,061 Depreciation and amortization expense 8,980 6,543 15,523 Total operating expenses 61,707 32,615 94,322 Operating income (loss) $ 29,973 $ (521 ) $ 29,452 Assets $ 185,405 $ 78,305 $ 263,710 Plant, property and equipment, net 40,911 41,044 81,955 Capital expenditures 11,725 5,049 16,774 (dollars in millions) 2014 Wireless Wireline Total Reportable External Operating Revenues Service $ 72,555 $ – $ 72,555 Equipment 10,957 – 10,957 Other 4,021 – 4,021 Consumer retail – 12,168 12,168 Small business – 1,829 1,829 Mass Markets – 13,997 13,997 Global Enterprise – 12,802 12,802 Global Wholesale – 4,520 4,520 Other – 527 527 Intersegment revenues 113 947 1,060 Total operating revenues 87,646 32,793 120,439 Cost of services 7,200 19,413 26,613 Wireless cost of equipment 21,625 – 21,625 Selling, general and administrative expense 23,602 7,394 30,996 Depreciation and amortization expense 8,459 6,817 15,276 Total operating expenses 60,886 33,624 94,510 Operating income (loss) $ 26,760 $ (831 ) $ 25,929 Assets $ 160,333 $ 76,629 $ 236,962 Plant, property and equipment, net 38,276 50,318 88,594 Capital expenditures 10,515 5,750 16,265 Reconciliation to Consolidated Financial Information A reconciliation of the reportable segment operating revenues to consolidated operating revenues is as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Operating Revenues Total reportable segments $ 120,531 $ 123,774 $ 120,439 Corporate and other 5,663 3,738 2,106 Reconciling items: Impact of divested operations (Note 2) 1,280 5,280 5,625 Eliminations (1,494 ) (1,172 ) (1,091 ) Consolidated operating revenues $ 125,980 $ 131,620 $ 127,079 Fios revenues are included within our Wireline segment and amounted to approximately $11.2 billion, $10.7 billion, and $9.8 billion for the years ended December 31, 2016, 2015 and 2014, respectively. A reconciliation of the total of the reportable segments’ operating income to consolidated Income before provision for income taxes is as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Operating Income Total reportable segments $ 29,893 $ 29,452 $ 25,929 Corporate and other (1,721 ) (1,720 ) (1,217 ) Reconciling items: Severance, pension and benefit credits (charges) (Note 10) (2,923 ) 2,256 (7,507 ) Gain on access line sale (Note 2) 1,007 – – Gain on spectrum license transactions (Note 2) 142 254 707 Impact of divested operations (Note 2) 661 2,818 2,021 Other costs – – (334 ) Consolidated operating income 27,059 33,060 19,599 Equity in (losses) earnings of unconsolidated businesses (98 ) (86 ) 1,780 Other income and (expense), net (1,599 ) 186 (1,194 ) Interest expense (4,376 ) (4,920 ) (4,915 ) Income Before Provision for Income Taxes $ 20,986 $ 28,240 $ 15,270 A reconciliation of the total of the reportable segments’ assets to consolidated assets is as follows: (dollars in millions) At December 31, 2016 2015 Assets Total reportable segments $ 278,024 $ 263,710 Corporate and other 213,787 205,476 Eliminations (247,631 ) (225,011 ) Total consolidated $ 244,180 $ 244,175 No single customer accounted for more than 10% of our total operating revenues during the years ended December 31, 2016, 2015 and 2014. International operating revenues and long-lived assets are not significant. |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2016 | |
Comprehensive Income | Note 13 Comprehensive Income Comprehensive income consists of net income and other gains and losses affecting equity that, under U.S. GAAP, are excluded from net income. Significant changes in the components of Other comprehensive income, net of provision for income taxes are described below. Accumulated Other Comprehensive Income The changes in the balances of Accumulated other comprehensive income by component are as follows: (dollars in millions) Foreign Unrealized gain (loss) on cash flow Unrealized gain (loss) on Defined benefit pension and Total Balance at January 1, 2014 $ 853 $ 113 $ 117 $ 1,275 $ 2,358 Other comprehensive income (loss) (288 ) (89 ) 14 – (363 ) Amounts reclassified to net income (911 ) (108 ) (19 ) 154 (884 ) Net other comprehensive income (loss) (1,199 ) (197 ) (5 ) 154 (1,247 ) Balance at December 31, 2014 (346 ) (84 ) 112 1,429 1,111 Other comprehensive loss (208 ) (1,063 ) (5 ) – (1,276 ) Amounts reclassified to net income – 869 (6 ) (148 ) 715 Net other comprehensive loss (208 ) (194 ) (11 ) (148 ) (561 ) Balance at December 31, 2015 (554 ) (278 ) 101 1,281 550 Other comprehensive income (loss) (159 ) (225 ) (13 ) 2,881 2,484 Amounts reclassified to net income – 423 (42 ) (742 ) (361 ) Net other comprehensive income (loss) (159 ) 198 (55 ) 2,139 2,123 Balance at December 31, 2016 $ (713 ) $ (80 ) $ 46 $ 3,420 $ 2,673 The amounts presented above in net other comprehensive income (loss) are net of taxes. The amounts reclassified to net income related to foreign currency translation adjustments in the table above are included in Equity in (losses) earnings of unconsolidated businesses (see Note 2 for additional information). The amounts reclassified to net income related to defined benefit pension and postretirement plans in the table above are included in Cost of services and Selling, general and administrative expense on our consolidated statements of income (see Note 10 for additional information). The amounts reclassified to net income related to unrealized gain (loss) on marketable securities in the table above are included in Other income and (expense), net on our consolidated statements of income. The amounts reclassified to net income related to unrealized gain (loss) on cash flow hedges in the table above are included in Other income and (expense), net and Interest expense on our consolidated statements of income (see Note 8 for additional information). |
Additional Financial Informatio
Additional Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Additional Financial Information | Note 14 Additional Financial Information The tables that follow provide additional financial information related to our consolidated financial statements: Income Statement Information (dollars in millions) Years Ended December 31, 2016 2015 2014 Depreciation expense $ 14,227 $ 14,323 $ 14,966 Interest costs on debt balances 5,080 5,504 5,291 Capitalized interest costs (704 ) (584 ) (376 ) Advertising expense 2,744 2,749 2,526 Balance Sheet Information (dollars in millions) At December 31, 2016 2015 Accounts Payable and Accrued Liabilities Accounts payable $ 7,084 $ 5,700 Accrued expenses 5,717 5,659 Accrued vacation, salaries and wages 3,813 4,420 Interest payable 1,463 1,529 Taxes payable 1,516 2,054 $ 19,593 $ 19,362 Other Current Liabilities Advance billings and customer deposits $ 2,914 $ 2,969 Dividends payable 2,375 2,323 Other 2,789 3,446 $ 8,078 $ 8,738 Cash Flow Information (dollars in millions) Years Ended December 31, 2016 2015 2014 Cash Paid Interest, net of amounts capitalized $ 4,085 $ 4,491 $ 4,429 Other, net Cash Flows from Operating Activities Changes in device payment plan agreement receivables-non-current $ (3,303 ) $ (23 ) $ (1,010 ) Proceeds from Tower Monetization Transaction – 2,346 – Other, net (1,082 ) (3,734 ) (2,078 ) $ (4,385 ) $ (1,411 ) $ (3,088 ) During the year ended December 31, 2016, Verizon did not repurchase any shares of Verizon’s common stock under our authorized share buyback program. During the year ended December 31, 2015, Verizon repurchased approximately 2.8 million shares of the Company’s common stock under our authorized share buyback program for approximately $0.1 billion. At December 31, 2016, the maximum number of shares that could be purchased by or on behalf of Verizon under our share buyback program was 97.2 million. In addition to the previously authorized three-year share buyback program, in 2015, the Verizon Board of Directors authorized Verizon to enter into an accelerated share repurchase (ASR) agreement to repurchase $5.0 billion of the Company’s common stock. On February 10, 2015, in exchange for an up-front Common stock has been used from time to time to satisfy some of the funding requirements of employee and shareowner plans. During the year ended December 31, 2016, we issued 3.5 million common shares from Treasury stock, which had an immaterial aggregate value. During the year ended December 31, 2015, we issued 22.6 million common shares from Treasury stock, which had an aggregate value of $0.9 billion. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies | Note 15 Commitments and Contingencies In the ordinary course of business, Verizon is involved in various commercial litigation and regulatory proceedings at the state and federal level. Where it is determined, in consultation with counsel based on litigation and settlement risks, that a loss is probable and estimable in a given matter, the Company establishes an accrual. In none of the currently pending matters is the amount of accrual material. An estimate of the reasonably possible loss or range of loss in excess of the amounts already accrued cannot be made at this time due to various factors typical in contested proceedings, including (1) uncertain damage theories and demands; (2) a less than complete factual record; (3) uncertainty concerning legal theories and their resolution by courts or regulators; and (4) the unpredictable nature of the opposing party and its demands. We continuously monitor these proceedings as they develop and adjust any accrual or disclosure as needed. We do not expect that the ultimate resolution of any pending regulatory or legal matter 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. Reserves have been established to cover environmental matters relating to discontinued businesses and past telecommunications activities. These reserves include funds to address contamination at the site of a former Sylvania facility in Hicksville NY, which had processed nuclear fuel rods in the 1950s and 1960s. In September 2005, the Army Corps of Engineers (ACE) accepted the site into its Formerly Utilized Sites Remedial Action Program. As a result, the ACE has taken primary responsibility for addressing the contamination at the site. An adjustment to the reserves may be made after a cost allocation is conducted with respect to the past and future expenses of all of the parties. Adjustments to the environmental reserve may also be made based upon the actual conditions found at other sites requiring remediation. Verizon is currently involved in approximately 35 federal district court actions alleging that Verizon is infringing various patents. Most of these cases are brought by non-practicing 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. From time to time, counterparties may make claims under these provisions, and Verizon will seek to defend against those claims and resolve them in the ordinary course of business. 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 spin-off As of December 31, 2016, letters of credit totaling approximately $0.4 billion, which were executed in the normal course of business and support several financing arrangements and payment obligations to third parties, were outstanding. We have several commitments primarily to purchase programming and network services, equipment, software and marketing services, which will be used or sold in the ordinary course of business, from a variety of suppliers totaling $16.8 billion. Of this total amount, $6.9 billion is attributable to 2017, $6.4 billion is attributable to 2018 through 2019, $1.3 billion is attributable to 2020 through 2021 and $2.2 billion is attributable to years thereafter. These amounts do not represent our entire anticipated purchases in the future, but represent only those items that are the subject of contractual obligations. Our commitments are generally determined based on the noncancelable quantities or termination amounts. Purchases against our commitments totaled approximately $8.1 billion for 2016, $10.2 billion for 2015, and $21.0 billion for 2014. Since the commitments to purchase programming services from television networks and broadcast stations have no minimum volume requirement, we estimated our obligation based on number of subscribers at December 31, 2016, and applicable rates stipulated in the contracts in effect at that time. We also purchase products and services as needed with no firm commitment. |
Quarterly Financial Information
Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information | Note 16 Quarterly Financial Information (Unaudited) (dollars in millions, except per share amounts) Net Income attributable to Verizon (1) Quarter Ended Operating Operating Amount Per Share- Per Share- Net 2016 March 31 $ 32,171 $ 7,942 $ 4,310 $ 1.06 $ 1.06 $ 4,430 June 30 30,532 4,554 702 .17 .17 831 September 30 30,937 6,540 3,620 .89 .89 3,747 December 31 32,340 8,023 4,495 1.10 1.10 4,600 2015 March 31 $ 31,984 $ 7,960 $ 4,219 $ 1.03 $ 1.02 $ 4,338 June 30 32,224 7,821 4,231 1.04 1.04 4,353 September 30 33,158 7,535 4,038 .99 .99 4,171 December 31 34,254 9,744 5,391 1.32 1.32 5,513 • Results of operations for the first quarter of 2016 include after-tax after-tax • Results of operations for the second quarter of 2016 include after-tax after-tax after-tax • Results of operations for the third quarter of 2016 include after-tax • Results of operations for the fourth quarter of 2016 include after-tax • Results of operations for the third quarter of 2015 include after-tax • Results of operations for the fourth quarter of 2015 include after-tax after-tax (1) Net income attributable to Verizon per common share is computed independently for each quarter and the sum of the quarters may not equal the annual amount. |
Description of Business and S26
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Consolidation | Consolidation The method of accounting applied to investments, whether consolidated, equity or cost, involves an evaluation of all significant terms of the investments that explicitly grant or suggest evidence of control or influence over the operations of the investee. The consolidated financial statements include our controlled subsidiaries, as well as variable interest entities (VIE) where we are deemed to be the primary beneficiary. For controlled subsidiaries that are not wholly-owned, the noncontrolling interests are included in Net income and Total equity. Investments in businesses which we do not control, but have the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. Investments in which we do not have the ability to exercise significant influence over operating and financial policies are accounted for under the cost method. Equity and cost method investments are included in Investments in unconsolidated businesses in our consolidated balance sheets. All significant intercompany accounts and transactions have been eliminated. |
Basis of Presentation | Basis of Presentation We have reclassified certain prior year amounts to conform to the current year presentation. |
Use of Estimates | Use of Estimates We prepare our financial statements using U.S. generally accepted accounting principles (GAAP), which requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Examples of significant estimates include: the allowance for doubtful accounts, the recoverability of plant, property and equipment, the recoverability of intangible assets and other long-lived assets, fair values of financial instruments, unrecognized tax benefits, valuation allowances on tax assets, accrued expenses, pension and postretirement benefit obligations, contingencies and the identification and valuation of assets acquired and liabilities assumed in connection with business combinations. |
Revenue Recognition | Revenue Recognition Multiple Deliverable Arrangements We offer products and services to our wireless and wireline customers through bundled arrangements. These arrangements involve multiple deliverables which may include products, services, or a combination of products and services. Wireless Our Wireless segment earns revenue primarily by providing access to and usage of its network as well as the sale of equipment. In general, access revenue is billed one month in advance and recognized when earned. Usage revenue is generally billed in arrears and recognized when service is rendered. Equipment sales revenue associated with the sale of wireless devices and accessories is generally recognized when the products are delivered to and accepted by the customer, as this is considered to be a separate earnings process from providing wireless services. For agreements involving the resale of third-party services in which we are considered the primary obligor in the arrangements, we record the revenue gross at the time of the sale. Under the Verizon device payment program, our eligible wireless customers purchase wireless devices under a device payment plan agreement. On select devices, certain marketing promotions have been revocably offered to customers to upgrade to a new device after paying down a certain specified portion of the required device payment plan agreement amount as well as trading in their device in good working order. When a customer enters into a device payment plan agreement with the right to upgrade to a new device, we account for this trade-in trade-in We may offer our customers certain promotions where a customer can trade-in trade-in trade-in trade-in. In multiple element arrangements that bundle devices and monthly wireless service, revenue is allocated to each unit of accounting using a relative selling price method. At the inception of the arrangement, the amount allocable to the delivered units of accounting is limited to the amount that is not contingent upon the delivery of the monthly wireless service (the noncontingent amount). We effectively recognize revenue on the delivered device at the lesser of the amount allocated based on the relative selling price of the device or the noncontingent amount owed when the device is sold. Wireline Our Wireline segment earns revenue based upon usage of its network and facilities and contract fees. In general, fixed monthly fees for voice, video, data and certain other services are billed one month in advance and recognized when earned. Revenue from services that are not fixed in amount and are based on usage is generally billed in arrears and recognized when service is rendered. We sell each of the services offered in bundled arrangements (i.e., voice, video and data), as well as separately; therefore each product or service has a standalone selling price. For these arrangements, revenue is allocated to each deliverable using a relative selling price method. Under this method, arrangement consideration is allocated to each separate deliverable based on our standalone selling price for each product or service. These services include Fios services, individually or in bundles, and high-speed Internet. When we bundle equipment with maintenance and monitoring services, we recognize equipment revenue when the equipment is installed in accordance with contractual specifications and ready for the customer’s use. The maintenance and monitoring services are recognized monthly over the term of the contract as we provide the services. Installation-related fees, along with the associated costs up to but not exceeding these fees, are deferred and amortized over the estimated customer relationship period. Other Advertising revenues are generated through display advertising and search advertising. Display advertising revenue is generated by the display of graphical advertisements and other performance-based advertising. Search advertising revenue is generated when a consumer clicks on a text-based advertisement on their screen. Agreements for advertising typically take the forms of impression-based contracts, time-based contracts or performance-based contracts. Advertising revenues derived from impression-based contracts, in which we provide impressions in exchange for a fixed fee, are generally recognized as the impressions are delivered. Advertising revenues derived from time-based contracts, in which we provide promotions over a specified time period for a fixed fee, are recognized on a straight-line basis over the term of the contract, provided that we meet and will continue to meet our obligations under the contract. Advertising revenues derived from contracts where we are compensated based on certain performance criteria are recognized as we complete the contractually specified performance. We report taxes imposed by governmental authorities on revenue-producing transactions between us and our customers, which we pass through to our customers, on a net basis. |
Maintenance and Repairs | Maintenance and Repairs We charge the cost of maintenance and repairs, including the cost of replacing minor items not constituting substantial betterments, principally to Cost of services as these costs are incurred. |
Advertising Costs | Advertising Costs Costs for advertising products and services as well as other promotional and sponsorship costs are charged to Selling, general and administrative expense in the periods in which they are incurred (see Note 14). |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share are based on the weighted-average number of shares outstanding during the period. Where appropriate, diluted earnings per common share include the dilutive effect of shares issuable under our stock-based compensation plans. There were a total of approximately 6 million, 8 million and 7 million outstanding dilutive securities, primarily consisting of restricted stock units, included in the computation of diluted earnings per common share for the years ended December 31, 2016, 2015 and 2014, respectively. For the years ended December 31, 2016 and 2015, respectively, there were no outstanding options to purchase shares that would have been anti-dilutive. Outstanding options to purchase shares that were not included in the computation of diluted earnings per common share, because to do so would have been anti-dilutive for the period, were not significant for the year ended December 31, 2014. On January 28, 2014, at a special meeting of our shareholders, we received shareholder approval to increase our authorized shares of common stock by 2 billion shares to an aggregate of 6.25 billion authorized shares of common stock. On February 4, 2014, this authorization became effective. On February 21, 2014, we issued approximately 1.27 billion shares of common stock upon completing the acquisition of Vodafone Group Plc’s (Vodafone) indirect 45% interest in Cellco Partnership d/b/a Verizon Wireless. See Note 2 for additional information. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments with a maturity of 90 days or less when purchased to be cash equivalents. Cash equivalents are stated at cost, which approximates quoted market value and include amounts held in money market funds. |
Marketable Securities | Marketable Securities We have investments in marketable securities, which are considered “available-for-sale” |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Accounts receivable are recorded in the consolidated financial statements at cost net of an allowance for credit losses, with the exception of device payment plan agreement receivables which are initially recorded at fair value. We maintain allowances for uncollectible accounts receivable, including our device payment plan agreement receivables, for estimated losses resulting from the failure or inability of our customers to make required payments. Our allowance for uncollectible accounts receivable is based on management’s assessment of the collectability of specific customer accounts and includes consideration of the credit worthiness and financial condition of those customers. We record an allowance to reduce the receivables to the amount that is reasonably believed to be collectible. We also record an allowance for all other receivables based on multiple factors including historical experience with bad debts, the general economic environment and the aging of such receivables. Similar to traditional service revenue accounting treatment, we record device payment plan agreement bad debt expense based on an estimate of the percentage of equipment revenue that will not be collected. This estimate is based on a number of factors including historical write-off write-off |
Inventories | Inventories Inventory consists of wireless and wireline equipment held for sale, which is carried at the lower of cost (determined principally on either an average cost or first-in, first-out |
Plant and Depreciation | Plant and Depreciation We record plant, property and equipment at cost. Plant, property and equipment are generally depreciated on a straight-line basis. Leasehold improvements are amortized over the shorter of the estimated life of the improvement or the remaining term of the related lease, calculated from the time the asset was placed in service. When depreciable assets are retired or otherwise disposed of, the related cost and accumulated depreciation are deducted from the plant accounts and any gains or losses on disposition are recognized in income. We capitalize and depreciate network software purchased or developed along with related plant assets. We also capitalize interest associated with the acquisition or construction of network-related assets. Capitalized interest is reported as a reduction in interest expense and depreciated as part of the cost of the network-related assets. In connection with our ongoing review of the estimated useful lives of plant, property and equipment during 2016, we determined that the average useful lives of certain leasehold improvements would be increased from 5 to 7 years. This change resulted in a decrease to depreciation expense of $0.2 billion in 2016. We determined that changes were also necessary to the remaining estimated useful lives of certain assets as a result of technology upgrades, enhancements, and planned retirements. These changes resulted in an increase in depreciation expense of $0.3 billion, $0.4 billion and $0.6 billion in 2016, 2015 and 2014, respectively. While the timing and extent of current deployment plans are subject to ongoing analysis and modification, we believe the current estimates of useful lives are reasonable. |
Computer Software Costs | Computer Software Costs We capitalize the cost of internal-use non-network internal-use non-network internal-use non-network non-network internal-use internal-use non-network |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill Goodwill is the excess of the acquisition cost of businesses over the fair value of the identifiable net assets acquired. Impairment testing for goodwill is performed annually in the fourth fiscal quarter or more frequently if impairment indicators are present. To determine if goodwill is potentially impaired, we have the option to perform a qualitative assessment. However, we may elect to bypass the qualitative assessment and perform an impairment test even if no indications of a potential impairment exist. The impairment test for goodwill uses a two-step Intangible Assets Not Subject to Amortization A significant portion of our intangible assets are wireless licenses that provide our wireless operations with the exclusive right to utilize designated radio frequency spectrum to provide wireless communication services. While licenses are issued for only a fixed time, generally ten years, such licenses are subject to renewal by the Federal Communications Commission (FCC). License renewals have occurred routinely and at nominal cost. 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. We re-evaluate We test our wireless licenses for potential impairment annually or more frequently if impairment indicators are present. We have the option to first perform a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. However, we may elect to bypass the qualitative assessment in any period and proceed directly to performing the quantitative impairment test. In 2016 and 2014, we performed a qualitative assessment to determine whether it is more likely than not that the fair value of our wireless licenses was less than the carrying amount. As part of our assessment, we considered several qualitative factors including the business enterprise value of our Wireless segment, macroeconomic conditions (including changes in interest rates and discount rates), industry and market considerations (including industry revenue and EBITDA (Earnings before interest, taxes, depreciation and amortization) margin projections), the projected financial performance of our Wireless segment, as well as other factors. The most recent quantitative assessments of our wireless licenses occurred in 2015. Our quantitative assessment consisted of comparing the estimated fair value of our aggregate wireless licenses to the aggregated carrying amount as of the test date. Using a quantitative assessment, we estimated the fair value of our aggregate wireless licenses using the Greenfield approach. The Greenfield approach is an income based valuation approach that values the wireless licenses by calculating the cash flow generating potential of a hypothetical start-up Interest expense incurred while qualifying activities are performed to ready wireless licenses for their intended use is capitalized as part of wireless licenses. The capitalization period ends when the development is discontinued or substantially complete and the license is ready for its intended use. Intangible Assets Subject to Amortization and Long-Lived Assets Our intangible assets that do not have indefinite lives (primarily customer lists and non-network internal-use re-evaluate For information related to the carrying amount of goodwill, wireless licenses and other intangible assets, as well as the major components and average useful lives of our other acquired intangible assets, see Note 3. |
Fair Value Measurements | Fair Value Measurements Fair value of financial and non-financial Level 1—Quoted prices in active markets for identical assets or liabilities Level 2—Observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3—No observable pricing inputs in the market Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurements. Our assessment of the significance of a particular input to the fair value measurements requires judgment, and may affect the valuation of the assets and liabilities being measured and their categorization within the fair value hierarchy. |
Income Taxes | Income Taxes Our effective tax rate is based on pre-tax Deferred income taxes are provided for temporary differences in the basis between financial statement and income tax assets and liabilities. Deferred income taxes are recalculated annually at tax rates then in effect. We record valuation allowances to reduce our deferred tax assets to the amount that is more likely than not to be realized. We use a two-step more-likely-than-not more-likely-than-not Significant management judgment is required in evaluating our tax positions and in determining our effective tax rate. |
Stock-Based Compensation | Stock-Based Compensation We measure and recognize compensation expense for all stock-based compensation awards made to employees and directors based on estimated fair values. See Note 9 for further details. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of our foreign operations is generally the local currency. For these foreign entities, we translate income statement amounts at average exchange rates for the period, and we translate assets and liabilities at end-of-period |
Employee Benefit Plans | Employee Benefit Plans Pension and postretirement health care and life insurance benefits earned during the year as well as interest on projected benefit obligations are accrued currently. Prior service costs and credits resulting from changes in plan benefits are generally amortized over the average remaining service period of the employees expected to receive benefits. Expected return on plan assets is determined by applying the return on assets assumption to the actual fair value of plan assets. Actuarial gains and losses are recognized in operating results in the year in which they occur. These gains and losses are measured annually as of December 31 or upon a remeasurement event. Verizon management employees no longer earn pension benefits or earn service towards the company retiree medical subsidy (see Note 10). We recognize a pension or a postretirement plan’s funded status as either an asset or liability on the consolidated balance sheets. Also, we measure any unrecognized prior service costs and credits that arise during the period as a component of Accumulated other comprehensive income, net of applicable income tax. |
Derivative Instruments | Derivative Instruments We enter into derivative transactions primarily to manage our exposure to fluctuations in foreign currency exchange rates and interest rates. 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, interest rate swap agreements and interest rate caps. We do not hold derivatives for trading purposes. See Note 8. We measure all derivatives at fair value and recognize them as either assets or liabilities on our consolidated balance sheets. Our derivative instruments 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. Changes in the fair value of the effective portion of net investment hedges of certain of our foreign operations are reported in Other comprehensive income (loss) as part of the cumulative translation adjustment and partially offset the impact of foreign currency changes on the value of our net investment. |
Variable Interest Entities | Variable Interest Entities VIEs are entities which lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, have equity investors which do not have the ability to make significant decisions relating to the entity’s operations through voting rights, do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. We consolidate the assets and liabilities of VIEs when we are deemed to be the primary beneficiary. The primary beneficiary is the party which has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards During the first quarter of 2016, we adopted the accounting standard update related to the simplification of the accounting for measurement-period adjustments in business combinations. This standard update requires an acquirer to recognize measurement-period adjustments in the reporting period in which the adjustments are determined and to record the effects on earnings of any changes resulting from the change in provisional amounts, calculated as if the accounting had been completed at the acquisition date. The prospective adoption of this standard update did not have a significant impact on our consolidated financial statements. During the first quarter of 2016, we adopted the accounting standard update related to disclosures for investments in certain entities that calculate net asset value (NAV) per share. This standard update removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The standard update limits the required disclosures to investments for which the entity has elected to measure the fair value using the practical expedient. The retrospective adoption of this standard update impacted our presentation of pension and other postretirement benefit plan assets in the notes to the consolidated financial statements but did not have an impact on the measurement of the assets. During the first quarter of 2016, we adopted the accounting standard update related to the simplification of the presentation of debt issuance costs. This standard update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. During the first quarter of 2016, we also adopted the accounting standard update related to the presentation and subsequent measurement of debt issuance costs associated with line-of-credit line-of-credit During the first quarter of 2016, we adopted the accounting standard update related to the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The standard requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The prospective adoption of this standard update did not have an impact on our consolidated financial statements. During the second quarter of 2016, we prospectively changed our method for determining the date at which we remeasure plan assets and obligations as a result of a significant event during an interim period in accordance with Accounting Standards Update (ASU) 2015-04, Compensation – Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets month-end |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In January 2017, the accounting standard update related to the simplification of the accounting for goodwill impairment was issued. The amendments in this update eliminate the requirement to perform step two of the goodwill impairment test, which requires a hypothetical purchase price allocation when an impairment is determined to have occurred. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This standard update is effective as of the first quarter of 2020; however, early adoption is permitted for any interim or annual impairment tests performed after January 1, 2017. Verizon expects to early adopt this standard as of January 1, 2017. The prospective adoption of this standard update is not expected to have a significant impact on our consolidated financial statements. In November 2016, the accounting standard update related to the classification and presentation of changes in restricted cash was issued. The amendments in this update require that cash and cash equivalent balances in a statement of cash flows include those amounts deemed to be restricted cash and restricted cash equivalents. This standard update is effective as of the first quarter of 2018; however, early adoption is permitted. We are currently evaluating the impact that this standard update will have on our consolidated financial statements. In August 2016, the accounting standard update related to the classification of certain cash receipts and cash payments was issued. This standard update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice for these issues. Among the updates, this standard update requires cash receipts from payments on a transferor’s beneficial interests in securitized trade receivables to be classified as cash inflows from investing activities. This standard update is effective as of the first quarter of 2018; however, early adoption is permitted. We are currently evaluating the impact that this standard update will have on our consolidated financial statements. We expect the amendment relating to beneficial interests in securitization transactions will have an impact on our presentation of collections of the deferred purchase price from sales of wireless device payment plan agreement receivables in our consolidated statements of cash flows. Upon adoption of this standard update in the first quarter of 2018, we expect to retrospectively reclassify approximately $1.1 billion of collections of deferred purchase price related to collections from customers for the year ended December 31, 2016 from Cash flows from operating activities to Cash flows from investing activities in our consolidated statements of cash flows. In June 2016, the standard update related to the measurement of credit losses on financial instruments was issued. This standard update requires that certain financial assets be measured at amortized cost reflecting an allowance for estimated credit losses expected to occur over the life of the assets. The estimate of credit losses must be based on all relevant information including historical information, current conditions and reasonable and supportable forecasts that affect the collectability of the amounts. This standard update is effective as of the first quarter of 2020; however, early adoption is permitted. We are currently evaluating the impact that this standard update will have on our consolidated financial statements. In March 2016, the accounting standard update related to employee share-based payment accounting was issued. This standard update intends to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This standard update is effective as of the first quarter of 2017. The retrospective adoption of this standard update is not expected to have a significant impact on our consolidated financial statements. In February 2016, the accounting standard update related to leases was issued. This standard update intends to increase transparency and improve comparability by requiring entities to recognize assets and liabilities on the balance sheet for all leases, with certain exceptions. In addition, through improved disclosure requirements, the standard update will enable users of financial statements to further understand the amount, timing, and uncertainty of cash flows arising from leases. This standard update is effective as of the first quarter of 2019; however, early adoption is permitted. Verizon’s current operating lease portfolio is primarily comprised of network, real estate, and equipment leases. Upon adoption of this standard, we expect our balance sheet to include a right of use asset and liability related to substantially all operating lease arrangements. We have established a cross-functional coordinated implementation team to implement the standard update related to leases. We are in the process of assessing the impact to our systems, processes and internal controls to meet the standard update’s reporting and disclosure requirements. In May 2014, the accounting standard update related to the recognition of revenue from contracts with customers was issued. This standard update along with related subsequently issued updates clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP. The standard update also amends current guidance for the recognition of costs to obtain and fulfill contracts with customers such that incremental costs of obtaining and direct costs of fulfilling contracts with customers will be deferred and amortized consistent with the transfer of the related good or service. The standard update intends to provide a more robust framework for addressing revenue issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; and provide more useful information to users of financial statements through improved disclosure requirements. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized at the earliest period shown, or the modified retrospective method, in which case the standard is applied only to the most current period presented and the cumulative effect of applying the standard would be recognized at the date of initial application. In August 2015, an accounting standard update was issued that delayed the effective date of this standard until the first quarter of 2018, at which time we plan to adopt the standard. We are in process of evaluating the impact of the standard update. The ultimate impact on revenue resulting from the application of the new standard will be subject to assessments that are dependent on many variables, including, but not limited to, the terms of our contractual arrangements and our mix of business. Upon adoption, we expect that the allocation of revenue between equipment and service for our wireless fixed-term service plans will result in more revenue allocated to equipment and recognized earlier as compared with current GAAP. We expect the timing of recognition of our sales commission expenses will also be impacted, as a substantial portion of these costs (which are currently expensed) will be capitalized and amortized as described above. In 2016, total sales commission expenses were approximately $4.2 billion. In 2017, we expect total sales commission expenses to decline as our wireless customers continue to migrate from our fixed-term service plans to device payment plans which have lower commission structures. We continue to evaluate the available transition methods. Our considerations include, but are not limited to, the comparability of our financial statements and the comparability within our industry from application of the new standard to our contractual arrangements. We plan to select a transition method by the second half of 2017. We have established a cross-functional coordinated implementation team to implement the standard update related to the recognition of revenue from contracts with customers. We have identified and are in the process of implementing changes to our systems, processes and internal controls to meet the standard update’s reporting and disclosure requirements. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
AOL Inc | |
Purchase Price Identified Based on Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the consideration to AOL’s shareholders and the identification of the assets acquired, including cash acquired of $0.5 billion, and liabilities assumed as of the close of the acquisition, as well as the fair value at the acquisition date of AOL’s noncontrolling interests: (dollars in millions) As of June 23, 2015 Cash payment to AOL’s equity holders $ 3,764 Estimated liabilities to be paid (1) 377 Total consideration $ 4,141 Assets acquired: Goodwill $ 1,938 Intangible assets subject to amortization 2,504 Other 1,551 Total assets acquired 5,993 Liabilities assumed: Total liabilities assumed 1,851 Net assets acquired: 4,142 Noncontrolling interest (1 ) Total consideration $ 4,141 (1) During the year ended December 31, 2016, we made cash payments of $179 million in respect of acquisition-date estimated liabilities to be paid. As of December 31, 2016, the remaining balance of estimated liabilities to be paid was $198 million. |
Wireless Licenses, Goodwill a28
Wireless Licenses, Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Changes in Carrying Amount of Wireless Licenses | Changes in the carrying amount of Wireless licenses are as follows: (dollars in millions) Balance at January 1, 2015 $ 75,341 Acquisitions (Note 2) 10,474 Capitalized interest on wireless licenses 389 Reclassifications, adjustments and other 371 Balance at December 31, 2015 $ 86,575 Acquisitions (Note 2) 28 Capitalized interest on wireless licenses 506 Reclassifications, adjustments and other (436 ) Balance at December 31, 2016 $ 86,673 |
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of Goodwill are as follows: (dollars in millions) Wireless Wireline Other Total Balance at January 1, 2015 $ 18,390 $ 6,249 $ – $ 24,639 Acquisitions (Note 2) 3 – 2,035 2,038 Reclassifications, adjustments and other – (1,918 ) 572 (1,346 ) Balance at December 31, 2015 $ 18,393 $ 4,331 $ 2,607 $ 25,331 Acquisitions (Note 2) – – 2,310 2,310 Reclassifications, adjustments and other – (547 ) 111 (436 ) Balance at December 31, 2016 $ 18,393 $ 3,784 $ 5,028 $ 27,205 |
Composition of Other Intangible Assets, Net | The following table displays the composition of Other intangible assets, net: (dollars in millions) 2016 2015 At December 31, Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Customer lists (6 to 14 years) $ 2,884 $ (480 ) $ 2,404 $ 4,139 $ (2,365 ) $ 1,774 Non-network internal-use 16,135 (10,913 ) 5,222 14,542 (9,620 ) 4,922 Other (5 to 25 years) 1,854 (583 ) 1,271 1,346 (450 ) 896 Total $ 20,873 $ (11,976 ) $ 8,897 $ 20,027 $ (12,435 ) $ 7,592 |
Amortization Expense for Other Intangible Assets | The amortization expense for Other intangible assets was as follows: Years (dollars in millions) 2016 $ 1,701 2015 1,694 2014 1,567 |
Estimated Future Amortization Expense for Other Intangible Assets | Estimated annual amortization expense for Other intangible assets is as follows: Years (dollars in millions) 2017 $ 1,749 2018 1,564 2019 1,358 2020 1,121 2021 938 |
Plant, Property and Equipment (
Plant, Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Plant, Property and Equipment | The following table displays the details of Plant, property and equipment, which is stated at cost: (dollars in millions) At December 31, Lives (years) 2016 2015 Land – $ 667 $ 709 Buildings and equipment 7-45 27,117 25,587 Central office and other network equipment 3-50 136,737 129,201 Cable, poles and conduit 7-50 45,639 44,290 Leasehold improvements 5-20 7,627 7,104 Work in progress – 5,710 4,907 Furniture, vehicles and other 3-20 8,718 8,365 232,215 220,163 Less accumulated depreciation 147,464 136,622 Plant, property and equipment, net $ 84,751 $ 83,541 |
Leasing Arrangements (Tables)
Leasing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Capital Leased Assets | Capital lease amounts included in Plant, property and equipment are as follows: (dollars in millions) At December 31, 2016 2015 Capital leases $ 1,277 $ 1,046 Less accumulated amortization (524 ) (318 ) Total $ 753 $ 728 |
Schedule of Aggregate Minimum Rental Commitments under Noncancelable Operating Leases | The aggregate minimum rental commitments under noncancelable leases for the periods shown at December 31, 2016, are as follows: (dollars in millions) Years Capital Leases Operating Leases 2017 $ 366 $ 2,822 2018 272 2,583 2019 149 2,304 2020 111 1,927 2021 62 1,515 Thereafter 79 6,724 Total minimum rental commitments 1,039 $ 17,875 Less interest and executory costs 89 Present value of minimum lease payments 950 Less current installments 335 Long-term obligation at December 31, 2016 $ 615 |
Schedule of Aggregate Minimum Rental Commitments under Noncancelable Capital Leases | The aggregate minimum rental commitments under noncancelable leases for the periods shown at December 31, 2016, are as follows: (dollars in millions) Years Capital Leases Operating Leases 2017 $ 366 $ 2,822 2018 272 2,583 2019 149 2,304 2020 111 1,927 2021 62 1,515 Thereafter 79 6,724 Total minimum rental commitments 1,039 $ 17,875 Less interest and executory costs 89 Present value of minimum lease payments 950 Less current installments 335 Long-term obligation at December 31, 2016 $ 615 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Combined Schedule of Current and Noncurrent Debt and Capital Lease Obligations | Changes to debt during 2016 are as follows: (dollars in millions) Debt Maturing within One Year Long-term Debt Total Balance at January 1, 2016 $ 6,489 $ 103,240 $ 109,729 Proceeds from long-term borrowings 120 12,844 12,964 Proceeds from asset-backed long-term borrowings – 4,986 4,986 Repayments of long-term borrowings and capital leases obligations (8,125 ) (11,034 ) (19,159 ) Decrease in short-term obligations, excluding current maturities (149 ) – (149 ) Reclassifications of long-term debt 4,088 (4,088 ) – Other 222 (515 ) (293 ) Balance at December 31, 2016 $ 2,645 $ 105,433 $ 108,078 |
Debt Maturing within One Year | Debt maturing within one year is as follows: (dollars in millions) At December 31, 2016 2015 Long-term debt maturing within one year $ 2,477 $ 6,325 Short-term notes payable 168 158 Commercial paper and other – 6 Total debt maturing within one year $ 2,645 $ 6,489 |
Long-term Debt Table | Outstanding long-term debt obligations are as follows: (dollars in millions) At December 31, Interest Rates % Maturities 2016 2015 Verizon Communications—notes payable and other 0.50 – 3.85 2017 – 2042 $ 28,491 $ 26,281 4.11 – 5.50 2018 – 2055 53,909 51,156 5.85 – 6.90 2018 – 2054 11,295 16,420 7.35 – 8.95 2018 – 2039 1,860 2,300 Floating 2017 – 2025 9,750 14,100 Verizon Wireless—Alltel assumed notes 6.80 – 7.88 2029 – 2032 525 686 Telephone subsidiaries—debentures 5.13 – 6.50 2028 – 2033 319 575 7.38 – 7.88 2022 – 2032 561 1,099 8.00 – 8.75 2022 – 2031 328 780 Other subsidiaries—notes payable, debentures and other 6.84 – 8.75 2018 – 2028 1,102 1,500 Verizon Wireless and other subsidiaries—asset-backed debt 1.42 – 2.36 2021 2,485 – Floating 2021 2,520 – Capital lease obligations (average rate of 3.5% and 3.4% in 2016 and 2015, respectively) 950 957 Unamortized discount, net of premium (5,716 ) (5,824) Unamortized debt issuance costs (469 ) (465) Total long-term debt, including current maturities 107,910 109,565 Less long-term debt maturing within one year 2,477 6,325 Total long-term debt $ 105,433 $ 103,240 |
Schedule of Notes included in the Tender Offers | The table below lists the series of notes included in the Group 1 Any and All Offer: (dollars in millions, except for Purchase Price) Interest Rate Maturity Principal Amount Outstanding Purchase Price (1) Principal Amount Purchased Verizon Communications Inc. 2.50 % 2016 $ 2,182 $ 1,007.60 $ 1,272 2.00 % 2016 1,250 1,007.20 731 6.35 % 2019 1,750 1,133.32 970 $ 2,973 (1) Per $1,000 principal amount of notes tendered and not withdrawn prior to early expiration The table below lists the series of notes included in the Group 2 Any and All Offer: (dollars in millions, except for Purchase Price) Interest Rate Maturity Principal Amount Outstanding Purchase Price (1) Principal Amount Purchased Verizon Delaware LLC 8.375 % 2019 $ 15 $ 1,182.11 $ 15 8.625 % 2031 15 1,365.39 5 Verizon Maryland LLC 8.00 % 2029 50 1,301.32 22 8.30 % 2031 100 1,347.26 76 5.125 % 2033 350 1,012.50 171 Verizon New England Inc. 7.875 % 2029 349 1,261.63 176 Verizon New Jersey Inc. 8.00 % 2022 200 1,238.65 54 7.85 % 2029 149 1,311.32 63 Verizon New York Inc. 6.50 % 2028 100 1,151.71 28 7.375 % 2032 500 1,201.92 256 Verizon Pennsylvania LLC 6.00 % 2028 125 1,110.47 57 8.35 % 2030 175 1,324.10 127 8.75 % 2031 125 1,356.47 72 Verizon Virginia LLC 7.875 % 2022 100 1,227.79 43 8.375 % 2029 100 1,319.78 81 $ 1,246 (1) Per $1,000 principal amount of notes tendered and not withdrawn prior to early expiration The table below lists the series of notes included in the Group 3 Offer: (dollars in millions, except for Purchase Price) Interest Rate Maturity Principal Amount Outstanding Purchase Price (1) Principal Amount Purchased Verizon Communications Inc. 8.95 % 2039 $ 353 $ 1,506.50 $ 63 7.75 % 2032 251 1,315.19 33 7.35 % 2039 480 1,293.50 68 7.75 % 2030 1,206 1,377.92 276 6.55 % 2043 6,585 1,291.74 2,340 6.40 % 2033 2,196 1,220.28 466 6.90 % 2038 477 1,243.29 92 6.25 % 2037 750 1,167.66 114 6.40 % 2038 866 1,176.52 116 5.85 % 2035 1,500 1,144.68 250 6.00 % 2041 1,000 1,164.56 – 5.15 % 2023 8,517 1,152.83 – Alltel Corporation 7.875 % 2032 452 1,322.92 115 6.80 % 2029 235 1,252.93 47 GTE Corporation 6.94 % 2028 800 1,261.35 237 8.75 % 2021 300 1,307.34 93 $ 4,310 (1) Per $1,000 principal amount of notes |
Schedule of Assets and Liabilities Related to Asset-backed Debt Arrangements | The assets and liabilities related to our asset-backed debt arrangements included on our consolidated balance sheets were as follows: (dollars in millions) At December 31, 2016 2015 Assets Account receivable, net $ 3,383 $ – Prepaid expenses and other 236 – Other Assets 2,383 – Liabilities Accounts payable and accrued liabilities 4 – Long-term debt 4,988 – |
Maturities of Long-term Debt excluding Unamortized Debt Issuance Costs | Maturities of long-term debt outstanding, excluding unamortized debt issuance costs, at December 31, 2016 are as follows: Years (dollars in millions) 2017 $ 2,477 2018 7,229 2019 5,548 2020 9,040 2021 12,097 Thereafter 71,988 |
February Exchange Offers | |
Schedule of Notes Included in Exchange Offer | The table below lists the series of Old Notes included in the February Exchange Offers for the 2036 New Notes: (dollars in millions) Interest Rate Maturity Principal Amount Outstanding Principal Amount Accepted For Verizon Communications Inc. 5.15 % 2023 $ 11,000 $ 2,483 The table below lists the series of Old Notes included in the February Exchange Offers for the 2048 New Notes: (dollars in millions) Interest Rate Maturity Principal Amount Outstanding Principal Amount Accepted For Verizon Communications Inc. 6.90 % 2038 $ 1,250 $ 773 6.40 % 2038 1,750 884 6.40 % 2033 4,355 2,159 6.25 % 2037 750 – GTE Corporation 6.94 % 2028 800 – $ 3,816 The table below lists the series of Old Notes included in the February Exchange Offers for the 2055 New Notes: (dollars in millions) Interest Rate Maturity Principal Amount Outstanding Principal Amount Accepted For Exchange Verizon Communications Inc. 6.55 % 2043 $ 10,670 $ 4,084 |
Wireless Device Payment Plans (
Wireless Device Payment Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Device Payment Plan Receivables, Net | The following table displays device payment plan receivables, net, that continue to be recognized in our consolidated balance sheets: (dollars in millions) At December 31, 2016 2015 Device payment plan agreement receivables, gross $ 11,797 $ 3,720 Unamortized imputed interest (511 ) (142 ) Device payment plan agreement receivables, net of unamortized imputed interest 11,286 3,578 Allowance for credit losses (688 ) (444 ) Device payment plan agreement receivables, net $ 10,598 $ 3,134 Classified on our consolidated balance sheets: Accounts receivable, net $ 6,140 $ 1,979 Other assets 4,458 1,155 Device payment plan agreement receivables, net $ 10,598 $ 3,134 |
Balance and Aging of Device Payment Plan Agreement Receivables on Gross Basis | The balance and aging of the device payment plan agreement receivables on a gross basis was as follows: (dollars in millions) At December 31, 2016 2015 Unbilled $ 11,089 $ 3,420 Billed: Current 557 227 Past due 151 73 Device payment plan agreement receivables, gross $ 11,797 $ 3,720 |
Activity in Allowance for Credit Losses for Device Payment Plan Agreement Receivables | Activity in the allowance for credit losses for the device payment plan agreement receivables was as follows: (dollars in millions) Balance at January 1, 2016 $ 444 Bad debt expense 692 Write-offs (479 ) Allowance related to receivables sold 28 Other 3 Balance at December 31, 2016 $ 688 |
Fair Value Measurements and F33
Fair Value Measurements and Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2016: (dollars in millions) Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Other assets: Equity securities $ 123 $ – $ – $ 123 Fixed income securities 10 566 – 576 Interest rate swaps – 71 – 71 Cross currency swaps – 45 – 45 Interest rate cap – 10 – 10 Total $ 133 $ 692 $ – $ 825 Liabilities: Other liabilities: Interest rate swaps $ – $ 236 $ – $ 236 Cross currency swaps – 1,803 – 1,803 Total $ – $ 2,039 $ – $ 2,039 The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2015: (dollars in millions) Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Short-term investments: Equity securities $ 265 $ – $ – $ 265 Fixed income securities – 85 – 85 Other current assets: Fixed income securities 250 – – 250 Other assets: Fixed income securities – 928 – 928 Interest rate swaps – 128 – 128 Net investment hedges – 13 – 13 Cross currency swaps – 1 – 1 Total $ 515 $ 1,155 $ – $ 1,670 Liabilities: Other liabilities: Interest rate swaps $ – $ 19 $ – $ 19 Cross currency swaps – 1,638 – 1,638 Forward interest rate swaps – 24 – 24 Total $ – $ 1,681 $ – $ 1,681 (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 |
Schedule of Fair Value of Short-Term and Long-Term Debt, Excluding Capital Leases | The fair value of our short-term and long-term debt, excluding capital leases, was as follows: (dollars in millions) At December 31, 2016 2015 Carrying Amount Fair Value Carrying Amount Fair Value Short- and long-term debt, excluding capital leases $ 107,128 $ 117,584 $ 108,772 $ 118,216 |
Notional Amounts of Outstanding Derivative Instruments | The following table sets forth the notional amounts of our outstanding derivative instruments: At December 31, 2016 At December 31, 2015 (dollars in millions) Notional Amount Notional Amount Interest rate swaps $ 13,099 $ 7,620 Forward interest rate swaps – 750 Cross currency swaps 12,890 9,675 Net investment hedge – 864 Interest rate caps 2,540 – |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Restricted and Performance Stock Unit Activity | The following table summarizes Verizon’s Restricted Stock Unit and Performance Stock Unit activity: (shares in thousands) Restricted Stock Units Performance Stock Units Outstanding January 1, 2014 16,193 23,724 Granted 5,278 7,359 Payments (6,202 ) (9,153 ) Cancelled/Forfeited (262 ) (1,964 ) Outstanding December 31, 2014 15,007 19,966 Granted 4,958 7,044 Payments (5,911 ) (6,732 ) Cancelled/Forfeited (151 ) (3,075 ) Outstanding December 31, 2015 13,903 17,203 Granted 4,409 6,391 Payments (4,890 ) (4,702 ) Cancelled/Forfeited (114 ) (1,143 ) Adjustments – 170 Outstanding December 31, 2016 13,308 17,919 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Change In Benefit Obligations, Change In Plan Assets, Funded Status, Amounts Recognized on Balance Sheet, and Amounts Recognized In Accumulated Other Comprehensive Income (Pretax) | The following tables summarize benefit costs, as well as the benefit obligations, plan assets, funded status and rate assumptions associated with pension and postretirement health care and life insurance benefit plans. Obligations and Funded Status (dollars in millions) Pension Health Care and Life At December 31, 2016 2015 2016 2015 Change in Benefit Obligations Beginning of year $ 22,016 $ 25,320 $ 24,223 $ 27,097 Service cost 322 374 193 324 Interest cost 677 969 746 1,117 Plan amendments 428 – (5,142 ) (45 ) Actuarial (gain) loss, net 1,017 (1,361 ) 1,289 (2,733 ) Benefits paid (938 ) (971 ) (1,349 ) (1,370 ) Curtailment and termination benefits 4 – – – Settlements paid (1,270 ) (2,315 ) – – Divestiture (Note 2) (1,144 ) – (310 ) (167 ) End of year $ 21,112 $ 22,016 $ 19,650 $ 24,223 Change in Plan Assets Beginning of year $ 16,124 $ 18,548 $ 1,760 $ 2,435 Actual return on plan assets 882 118 35 28 Company contributions 837 744 917 667 Benefits paid (938 ) (971 ) (1,349 ) (1,370 ) Settlements paid (1,270 ) (2,315 ) – – Divestiture (Note 2) (972 ) – – – End of year $ 14,663 $ 16,124 $ 1,363 $ 1,760 Funded Status End of year $ (6,449 ) $ (5,892 ) $ (18,287 ) $ (22,463 ) As a result of the Access Line Sale which closed on April 1, 2016, we derecognized $0.7 billion of defined benefit pension and other postretirement benefit plan obligations, including $0.2 billion that had been reclassified to Non-current (dollars in millions) Pension Health Care and Life At December 31, 2016 2015 2016 2015 Amounts recognized on the balance sheet Noncurrent assets $ 2 $ 349 $ – $ – Current liabilities (88 ) (93 ) (639 ) (695 ) Noncurrent liabilities (6,363 ) (6,148 ) (17,648 ) (21,768 ) Total $ (6,449 ) $ (5,892 ) $ (18,287 ) $ (22,463 ) Amounts recognized in Accumulated Other (Pre-tax) Prior Service Cost (Benefit) $ 443 $ (51 ) $ (6,072 ) $ (2,038 ) Total $ 443 $ (51 ) $ (6,072 ) $ (2,038 ) |
Information for Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets | Information for pension plans with an accumulated benefit obligation in excess of plan assets follows: (dollars in millions) At December 31, 2016 2015 Projected benefit obligation $ 21,048 $ 21,694 Accumulated benefit obligation 20,990 21,636 Fair value of plan assets 14,596 15,452 |
Benefit or (Income) Cost Related to Pension and Postretirement Health Care and Life Insurance | The following table summarizes the benefit (income) cost related to our pension and postretirement health care and life insurance plans: (dollars in millions) Pension Health Care and Life Years Ended December 31, 2016 2015 2014 2016 2015 2014 Service cost $ 322 $ 374 $ 327 $ 193 $ 324 $ 258 Amortization of prior service cost (credit) 21 (5 ) (8 ) (657 ) (287 ) (253 ) Expected return on plan assets (1,045 ) (1,270 ) (1,181 ) (54 ) (101 ) (161 ) Interest cost 677 969 1,035 746 1,117 1,107 Remeasurement (gain) loss, net 1,198 (209 ) 2,380 1,300 (2,659 ) 4,615 Net periodic benefit (income) cost 1,173 (141 ) 2,553 1,528 (1,606 ) 5,566 Curtailment and termination benefits 4 – 11 – – – Total $ 1,177 $ (141 ) $ 2,564 $ 1,528 $ (1,606 ) $ 5,566 |
Other Pretax Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss | Other pre-tax (dollars in millions) Pension Health Care and Life At December 31, 2016 2015 2016 2015 Prior service cost (benefit) $ 428 $ – $ (5,142 ) $ (45 ) Reversal of amortization items Prior service cost (benefit) (21 ) 5 657 287 Amounts reclassified to net income 87 – 451 – Total recognized in other comprehensive (income) loss (pre-tax) $ 494 $ 5 $ (4,034 ) $ 242 |
Weighted Average Assumptions Used in Determining Benefit Obligations and Net Periodic Cost | The weighted-average assumptions used in determining benefit obligations follow: Pension Health Care and Life At December 31, 2016 2015 2016 2015 Discount Rate 4.30 % 4.60 % 4.20 % 4.60 % Rate of compensation increases 3.00 3.00 N/A N/A The weighted-average assumptions used in determining net periodic cost follow: Pension Health Care and Life At December 31, 2016 2015 2014 2016 2015 2014 Discount rate in effect for determining service cost 4.50 % 4.20 % 5.00 % 4.50 % 4.20 % 5.00 % Discount rate in effect for determining interest cost 3.20 4.20 5.00 3.40 4.20 5.00 Expected return on plan assets 7.00 7.25 7.25 3.80 4.80 5.50 Rate of compensation increases 3.00 3.00 3.00 N/A N/A N/A |
Health Care Cost Trend Rates | The assumed health care cost trend rates follow: Health Care and Life At December 31, 2016 2015 2014 Healthcare cost trend rate assumed for next year 6.50 % 6.00 % 6.50 % Rate to which cost trend rate gradually declines 4.50 4.50 4.75 Year the rate reaches the level it is assumed to remain thereafter 2025 2024 2022 |
Effects of One Percentage Point Change in Assumed Health Care Cost Trend Rates | A one-percentage (dollars in millions) One-Percentage Increase Decrease Effect on 2016 service and interest cost $ 100 $ (81 ) Effect on postretirement benefit obligation as of December 31, 2016 609 (616 ) |
Expected Benefit Payments to Retirees | The benefit payments to retirees are expected to be paid as follows: (dollars in millions) Year Pension Benefits Health Care and Life 2017 $ 2,356 $ 1,259 2018 1,790 1,284 2019 1,722 1,290 2020 1,204 1,302 2021 1,189 1,327 2022-2026 5,777 6,616 |
Schedule of Recorded Severance Liability | The following table provides an analysis of our actuarially determined severance liability recorded in accordance with the accounting standard regarding employers’ accounting for postemployment benefits: (dollars in millions) Year Beginning of Year Charged to Payments Other End of Year 2014 $ 757 $ 531 $ (406 ) $ (7 ) $ 875 2015 875 551 (619 ) (7 ) 800 2016 800 417 (583 ) 22 656 |
Pension | |
Fair Values for Plans by Asset Category | The fair values for the pension plans by asset category at December 31, 2016 are as follows: (dollars in millions) Asset Category Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 1,228 $ 1,219 $ 9 $ – Equity securities 1,883 1,883 – – Fixed income securities U.S. Treasuries and agencies 1,251 880 371 – Corporate bonds 2,375 152 2,126 97 International bonds 713 20 679 14 Real estate 655 – – 655 Other Private equity 624 – – 624 Hedge funds 526 – 522 4 Total investments at fair value 9,255 4,154 3,707 1,394 Investments measured at NAV 5,408 Total $ 14,663 $ 4,154 $ 3,707 $ 1,394 The fair values for the pension plans by asset category at December 31, 2015 are as follows: (dollars in millions) Asset Category Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 1,387 $ 1,375 $ 12 $ – Equity securities 2,237 2,234 – 3 Fixed income securities U.S. Treasuries and agencies 1,265 884 381 – Corporate bonds 2,350 192 2,030 128 International bonds 710 33 657 20 Other 2 – 2 – Real estate 873 – – 873 Other Private equity 609 – – 609 Hedge funds 194 – 194 – Total investments at fair value 9,627 4,718 3,276 1,633 Investments measured at NAV 6,497 Total $ 16,124 $ 4,718 $ 3,276 $ 1,633 |
Reconciliation of Beginning and Ending Balance of Plan Assets Measured at Fair Value | The following is a reconciliation of the beginning and ending balance of pension plan assets that are measured at fair value using significant unobservable inputs: (dollars in millions) Equity Corporate International Real Estate Private Hedge Total Balance at January 1, 2015 $ 1 $ 100 $ 18 $ 692 $ 624 $ – $ 1,435 Actual gain (loss) on plan assets – 6 (2 ) 93 45 – 142 Purchases and sales – 18 5 (24 ) (60 ) – (61 ) Transfers in (out) 2 4 (1 ) 112 – – 117 Balance at December 31, 2015 $ 3 $ 128 $ 20 $ 873 $ 609 $ – $ 1,633 Actual gain (loss) on plan assets (1 ) (9 ) (2 ) 169 12 – 169 Purchases and sales (2 ) (22 ) (4 ) (387 ) 3 4 (408 ) Balance at December 31, 2016 $ – $ 97 $ 14 $ 655 $ 624 $ 4 $ 1,394 |
Other Postretirement Benefit Plan | |
Fair Values for Plans by Asset Category | Health Care and Life Plans The fair values for the other postretirement benefit plans by asset category at December 31, 2016 are as follows: (dollars in millions) Asset Category Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 131 $ 1 $ 130 $ – Equity securities 463 463 – – Fixed income securities U.S. Treasuries and agencies 23 22 1 – Corporate bonds 170 145 25 – International bonds 60 30 30 – Total investments at fair value 847 661 186 – Investments measured at NAV 516 Total $ 1,363 $ 661 $ 186 $ – The fair values for the other postretirement benefit plans by asset category at December 31, 2015 are as follows: (dollars in millions) Asset Category Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 162 $ – $ 162 $ – Equity securities 768 752 16 – Fixed income securities U.S. Treasuries and agencies 21 19 2 – Corporate bonds 208 133 75 – International bonds 79 19 60 – Total investments at fair value 1,238 923 315 – Investments measured at NAV 522 Total $ 1,760 $ 923 $ 315 $ – |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Components of Income before Provision for Income Taxes | The components of income before provision for income taxes are as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Domestic $ 20,047 $ 27,639 $ 12,992 Foreign 939 601 2,278 Total $ 20,986 $ 28,240 $ 15,270 |
Components of Provision for Income Taxes | The components of the provision for income taxes are as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Current Federal $ 7,451 $ 5,476 $ 2,657 Foreign 148 70 81 State and Local 842 803 668 Total 8,441 6,349 3,406 Deferred Federal (933 ) 3,377 (51 ) Foreign (2 ) 9 (9 ) State and Local (128 ) 130 (32 ) Total (1,063 ) 3,516 (92 ) Total income tax provision $ 7,378 $ 9,865 $ 3,314 |
Schedule for Principal Reasons for Difference in Effective and Statutory Tax Rates | The following table shows the principal reasons for the difference between the effective income tax rate and the statutory federal income tax rate: Years Ended December 31, 2016 2015 2014 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % State and local income tax rate, net of federal tax benefits 2.2 2.1 2.7 Affordable housing credit (0.7 ) (0.5 ) (1.0 ) Employee benefits including ESOP dividend (0.5 ) (0.4 ) (0.7 ) Disposition of Omnitel Interest – – (5.9 ) Noncontrolling interests (0.6 ) (0.5 ) (5.0 ) Non-deductible 2.2 – – Other, net (2.4 ) (0.8 ) (3.4 ) Effective income tax rate 35.2 % 34.9 % 21.7 % |
Schedule of Cash Taxes Paid | The amounts of cash taxes paid are as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Income taxes, net of amounts refunded $ 9,577 $ 5,293 $ 4,093 Employment taxes 1,196 1,284 1,290 Property and other taxes 1,796 1,868 1,797 Total $ 12,569 $ 8,445 $ 7,180 |
Schedule of Deferred Taxes | Deferred taxes arise because of differences in the book and tax bases of certain assets and liabilities. Significant components of deferred tax assets and liabilities are as follows: (dollars in millions) At December 31, 2016 2015 Employee benefits $ 10,453 $ 12,220 Tax loss and credit carry forwards 3,318 4,099 Other - assets 2,632 2,504 16,403 18,823 Valuation allowances (2,473 ) (3,414 ) Deferred tax assets 13,930 15,409 Spectrum and other intangible amortization 31,404 29,945 Depreciation 22,848 24,725 Other - liabilities 5,642 6,125 Deferred tax liabilities 59,894 60,795 Net deferred tax liability $ 45,964 $ 45,386 |
Reconciliation of Beginning and Ending Balance of Unrecognized Tax Benefits | A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows: (dollars in millions) 2016 2015 2014 Balance at January 1, $ 1,635 $ 1,823 $ 2,130 Additions based on tax positions related to the current year 338 194 80 Additions for tax positions of prior years 188 330 627 Reductions for tax positions of prior years (153 ) (412 ) (278 ) Settlements (18 ) (79 ) (239 ) Lapses of statutes of limitations (88 ) (221 ) (497 ) Balance at December 31, $ 1,902 $ 1,635 $ 1,823 |
Schedule of After Tax (Expenses) Benefits Related to Interest and Penalties in Provision for Income Taxes | We recognized the following net after-tax Years Ended December 31, (dollars in millions) 2016 $ (25 ) 2015 43 2014 92 |
Schedule of After Tax Accrual for Payment of Interest and Penalties in Consolidated Balance Sheet | The after-tax At December 31, (dollars in millions) 2016 $ 142 2015 125 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Operating Financial Information for Reportable Segments | The following table provides operating financial information for our two reportable segments: (dollars in millions) 2016 Wireless Wireline Total Reportable External Operating Revenues Service $ 66,362 $ – $ 66,362 Equipment 17,511 – 17,511 Other 4,915 – 4,915 Consumer retail – 12,751 12,751 Small business – 1,651 1,651 Mass Markets – 14,402 14,402 Global Enterprise – 11,620 11,620 Global Wholesale – 4,052 4,052 Other – 320 320 Intersegment revenues 398 951 1,349 Total operating revenues 89,186 31,345 120,531 Cost of services 7,988 18,619 26,607 Wireless cost of equipment 22,238 – 22,238 Selling, general and administrative expense 19,924 6,585 26,509 Depreciation and amortization expense 9,183 6,101 15,284 Total operating expenses 59,333 31,305 90,638 Operating income $ 29,853 $ 40 $ 29,893 Assets $ 211,345 $ 66,679 $ 278,024 Plant, property and equipment, net 42,898 40,205 83,103 Capital expenditures 11,240 4,504 15,744 (dollars in millions) 2015 Wireless Wireline Total Reportable External Operating Revenues Service $ 70,305 $ – $ 70,305 Equipment 16,924 – 16,924 Other 4,294 – 4,294 Consumer retail – 12,696 12,696 Small business – 1,744 1,744 Mass Markets – 14,440 14,440 Global Enterprise – 12,048 12,048 Global Wholesale – 4,301 4,301 Other – 338 338 Intersegment revenues 157 967 1,124 Total operating revenues 91,680 32,094 123,774 Cost of services 7,803 18,816 26,619 Wireless cost of equipment 23,119 – 23,119 Selling, general and administrative expense 21,805 7,256 29,061 Depreciation and amortization expense 8,980 6,543 15,523 Total operating expenses 61,707 32,615 94,322 Operating income (loss) $ 29,973 $ (521 ) $ 29,452 Assets $ 185,405 $ 78,305 $ 263,710 Plant, property and equipment, net 40,911 41,044 81,955 Capital expenditures 11,725 5,049 16,774 (dollars in millions) 2014 Wireless Wireline Total Reportable External Operating Revenues Service $ 72,555 $ – $ 72,555 Equipment 10,957 – 10,957 Other 4,021 – 4,021 Consumer retail – 12,168 12,168 Small business – 1,829 1,829 Mass Markets – 13,997 13,997 Global Enterprise – 12,802 12,802 Global Wholesale – 4,520 4,520 Other – 527 527 Intersegment revenues 113 947 1,060 Total operating revenues 87,646 32,793 120,439 Cost of services 7,200 19,413 26,613 Wireless cost of equipment 21,625 – 21,625 Selling, general and administrative expense 23,602 7,394 30,996 Depreciation and amortization expense 8,459 6,817 15,276 Total operating expenses 60,886 33,624 94,510 Operating income (loss) $ 26,760 $ (831 ) $ 25,929 Assets $ 160,333 $ 76,629 $ 236,962 Plant, property and equipment, net 38,276 50,318 88,594 Capital expenditures 10,515 5,750 16,265 |
Summary of Reconciliation of Segment Operating Revenues | A reconciliation of the reportable segment operating revenues to consolidated operating revenues is as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Operating Revenues Total reportable segments $ 120,531 $ 123,774 $ 120,439 Corporate and other 5,663 3,738 2,106 Reconciling items: Impact of divested operations (Note 2) 1,280 5,280 5,625 Eliminations (1,494 ) (1,172 ) (1,091 ) Consolidated operating revenues $ 125,980 $ 131,620 $ 127,079 |
Summary of Reconciliation of Segment Operating Income | A reconciliation of the total of the reportable segments’ operating income to consolidated Income before provision for income taxes is as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Operating Income Total reportable segments $ 29,893 $ 29,452 $ 25,929 Corporate and other (1,721 ) (1,720 ) (1,217 ) Reconciling items: Severance, pension and benefit credits (charges) (Note 10) (2,923 ) 2,256 (7,507 ) Gain on access line sale (Note 2) 1,007 – – Gain on spectrum license transactions (Note 2) 142 254 707 Impact of divested operations (Note 2) 661 2,818 2,021 Other costs – – (334 ) Consolidated operating income 27,059 33,060 19,599 Equity in (losses) earnings of unconsolidated businesses (98 ) (86 ) 1,780 Other income and (expense), net (1,599 ) 186 (1,194 ) Interest expense (4,376 ) (4,920 ) (4,915 ) Income Before Provision for Income Taxes $ 20,986 $ 28,240 $ 15,270 |
Summary of Reconciliation of Segment Assets | A reconciliation of the total of the reportable segments’ assets to consolidated assets is as follows: (dollars in millions) At December 31, 2016 2015 Assets Total reportable segments $ 278,024 $ 263,710 Corporate and other 213,787 205,476 Eliminations (247,631 ) (225,011 ) Total consolidated $ 244,180 $ 244,175 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Components in Accumulated Other Comprehensive Income | The changes in the balances of Accumulated other comprehensive income by component are as follows: (dollars in millions) Foreign Unrealized gain (loss) on cash flow Unrealized gain (loss) on Defined benefit pension and Total Balance at January 1, 2014 $ 853 $ 113 $ 117 $ 1,275 $ 2,358 Other comprehensive income (loss) (288 ) (89 ) 14 – (363 ) Amounts reclassified to net income (911 ) (108 ) (19 ) 154 (884 ) Net other comprehensive income (loss) (1,199 ) (197 ) (5 ) 154 (1,247 ) Balance at December 31, 2014 (346 ) (84 ) 112 1,429 1,111 Other comprehensive loss (208 ) (1,063 ) (5 ) – (1,276 ) Amounts reclassified to net income – 869 (6 ) (148 ) 715 Net other comprehensive loss (208 ) (194 ) (11 ) (148 ) (561 ) Balance at December 31, 2015 (554 ) (278 ) 101 1,281 550 Other comprehensive income (loss) (159 ) (225 ) (13 ) 2,881 2,484 Amounts reclassified to net income – 423 (42 ) (742 ) (361 ) Net other comprehensive income (loss) (159 ) 198 (55 ) 2,139 2,123 Balance at December 31, 2016 $ (713 ) $ (80 ) $ 46 $ 3,420 $ 2,673 |
Additional Financial Informat39
Additional Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Statement Information | The tables that follow provide additional financial information related to our consolidated financial statements: Income Statement Information (dollars in millions) Years Ended December 31, 2016 2015 2014 Depreciation expense $ 14,227 $ 14,323 $ 14,966 Interest costs on debt balances 5,080 5,504 5,291 Capitalized interest costs (704 ) (584 ) (376 ) Advertising expense 2,744 2,749 2,526 |
Balance Sheet Information | Balance Sheet Information (dollars in millions) At December 31, 2016 2015 Accounts Payable and Accrued Liabilities Accounts payable $ 7,084 $ 5,700 Accrued expenses 5,717 5,659 Accrued vacation, salaries and wages 3,813 4,420 Interest payable 1,463 1,529 Taxes payable 1,516 2,054 $ 19,593 $ 19,362 Other Current Liabilities Advance billings and customer deposits $ 2,914 $ 2,969 Dividends payable 2,375 2,323 Other 2,789 3,446 $ 8,078 $ 8,738 |
Cash Flow Information | Cash Flow Information (dollars in millions) Years Ended December 31, 2016 2015 2014 Cash Paid Interest, net of amounts capitalized $ 4,085 $ 4,491 $ 4,429 Other, net Cash Flows from Operating Activities Changes in device payment plan agreement receivables-non-current $ (3,303 ) $ (23 ) $ (1,010 ) Proceeds from Tower Monetization Transaction – 2,346 – Other, net (1,082 ) (3,734 ) (2,078 ) $ (4,385 ) $ (1,411 ) $ (3,088 ) |
Quarterly Financial Informati40
Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information | Quarterly Financial Information (Unaudited) (dollars in millions, except per share amounts) Net Income attributable to Verizon (1) Quarter Ended Operating Operating Amount Per Share- Per Share- Net 2016 March 31 $ 32,171 $ 7,942 $ 4,310 $ 1.06 $ 1.06 $ 4,430 June 30 30,532 4,554 702 .17 .17 831 September 30 30,937 6,540 3,620 .89 .89 3,747 December 31 32,340 8,023 4,495 1.10 1.10 4,600 2015 March 31 $ 31,984 $ 7,960 $ 4,219 $ 1.03 $ 1.02 $ 4,338 June 30 32,224 7,821 4,231 1.04 1.04 4,353 September 30 33,158 7,535 4,038 .99 .99 4,171 December 31 34,254 9,744 5,391 1.32 1.32 5,513 • Results of operations for the first quarter of 2016 include after-tax after-tax • Results of operations for the second quarter of 2016 include after-tax after-tax after-tax • Results of operations for the third quarter of 2016 include after-tax • Results of operations for the fourth quarter of 2016 include after-tax • Results of operations for the third quarter of 2015 include after-tax • Results of operations for the fourth quarter of 2015 include after-tax after-tax (1) Net income attributable to Verizon per common share is computed independently for each quarter and the sum of the quarters may not equal the annual amount. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Allowance for Doubtful Accounts | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Period | $ 1,037 | [1] | $ 739 | $ 645 | ||
Charged to expenses | 1,420 | [1] | 1,610 | [1] | 1,095 | |
Charged to other Accounts | [2],[3] | 204 | [1] | 200 | [1] | 141 |
Deductions | [4],[5] | 1,515 | [1] | 1,512 | [1] | 1,142 |
Balance at End of Period | 1,146 | [1] | 1,037 | [1] | 739 | |
Valuation Allowance of Deferred Tax Assets | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Period | 3,414 | 1,841 | 1,685 | |||
Charged to expenses | 146 | 237 | 505 | |||
Charged to other Accounts | [2],[3] | 47 | 1,701 | 5 | ||
Deductions | [4],[5] | 1,134 | 365 | 354 | ||
Balance at End of Period | $ 2,473 | $ 3,414 | $ 1,841 | |||
[1] | Allowance for Uncollectible Accounts Receivable includes approximately $301 million and $155 million at December 31, 2016 and 2015, respectively, related to long-term device payment plan receivables. | |||||
[2] | Allowance for Uncollectible Accounts Receivable primarily includes amounts previously written off which were credited directly to this account when recovered. | |||||
[3] | Valuation Allowance for Deferred Tax Assets includes an increase to the valuation allowance as a result of the acquisition of AOL in 2015 and amounts charged to equity and reclassifications from other balance sheet accounts. | |||||
[4] | Amounts written off as uncollectible or transferred to other accounts or utilized. | |||||
[5] | Reductions to valuation allowances related to deferred tax assets. |
Valuation and Qualifying Acco42
Valuation and Qualifying Accounts (Parenthetical) (Detail) - Allowance for Doubtful Accounts - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Valuation allowances and reserves | $ 1,146 | [1] | $ 1,037 | [1] | $ 739 | $ 645 |
Long-term device installment plan receivable | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Valuation allowances and reserves | $ 301 | $ 155 | ||||
[1] | Allowance for Uncollectible Accounts Receivable includes approximately $301 million and $155 million at December 31, 2016 and 2015, respectively, related to long-term device payment plan receivables. |
Description of Business and S43
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | Feb. 21, 2014shares | Dec. 31, 2016USD ($)Segmentshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Jan. 28, 2014shares | Sep. 02, 2013 |
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of reportable segments | Segment | 2 | |||||
Restricted stock units outstanding to purchase shares included in diluted earnings per common share | shares | 6,000,000 | 8,000,000 | 7,000,000 | |||
Number of common stock authorized to be issued | shares | 6,250,000,000 | |||||
Increase (Decrease) in Depreciation expenses | $ 14,227 | $ 14,323 | $ 14,966 | |||
Wireless license period | 10 years | |||||
Stock Purchase Agreement | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Common shares issued | shares | 1,270,000,000 | |||||
Stock Purchase Agreement | Cellco Partnership DBA Verizon Wireless | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Percentage of noncontrolling interest by Vodafone Group Plc in Cellco Partnership joint venture | 45.00% | |||||
Accounting Standards Update 2016-15 | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
New accounting standard update | $ 1,100 | |||||
Accounting Standards Update 2014-09 | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
New accounting standard update | $ 4,200 | |||||
Minimum | Leasehold Improvements | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Useful Life (years) | 5 years | |||||
Maximum | Leasehold Improvements | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Useful Life (years) | 20 years | |||||
Property Plant and Equipment by Estimated Useful Life | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Increase (Decrease) in Depreciation expenses | $ 300 | $ 400 | $ 600 | |||
Property Plant and Equipment by Estimated Useful Life | Leasehold Improvements | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Increase (Decrease) in Depreciation expenses | $ 200 | |||||
Property, Plant and Equipment, Useful Life (years) | 7 years | 5 years | ||||
Non-Network Internal-Use Software | Minimum | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Useful life for finite-lived intangible assets, years | 3 years | |||||
Non-Network Internal-Use Software | Maximum | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Useful life for finite-lived intangible assets, years | 8 years | |||||
Increase in number of authorized common shares | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of common stock authorized to be issued | shares | 2,000,000,000 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Detail) | Feb. 20, 2017USD ($) | Dec. 06, 2016USD ($)Site | Jul. 30, 2016USD ($)$ / shares | Jul. 29, 2016USD ($) | Jul. 23, 2016USD ($) | Feb. 20, 2016USD ($) | Jun. 23, 2015USD ($)shares | May 19, 2015USD ($) | Feb. 05, 2015USD ($) | Jan. 29, 2015USD ($)Licenses | Feb. 21, 2014USD ($)$ / sharesshares | Sep. 02, 2013USD ($) | Apr. 30, 2016USD ($) | Mar. 31, 2015USD ($)Leases | Dec. 31, 2016USD ($)$ / shares | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($)$ / shares | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($)Leases | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2016USD ($)plan$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($) | Nov. 07, 2016USD ($) | Apr. 01, 2016USD ($)CustomerUnit | May 12, 2015$ / shares |
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Cash paid to complete the Wireless Transaction | $ 58,886,000,000 | |||||||||||||||||||||||||||||
Common stock, par value | $ / shares | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | ||||||||||||||||||||||||||
Deferred tax liability attributable to the Wireless Transaction | $ 45,964,000,000 | $ 45,386,000,000 | $ 45,964,000,000 | $ 45,386,000,000 | ||||||||||||||||||||||||||
License purchase and exchange transactions, net cash proceeds | 2,367,000,000 | |||||||||||||||||||||||||||||
Gain on sale of licenses | 142,000,000 | 254,000,000 | 707,000,000 | |||||||||||||||||||||||||||
Cash paid to acquire spectrum licenses | 534,000,000 | 9,942,000,000 | 354,000,000 | |||||||||||||||||||||||||||
Assets held for sale | 882,000,000 | 792,000,000 | 882,000,000 | 792,000,000 | ||||||||||||||||||||||||||
Cash proceeds from failed sale-leaseback | 2,346,000,000 | |||||||||||||||||||||||||||||
Proceeds from dispositions of businesses | 9,882,000,000 | 48,000,000 | 120,000,000 | |||||||||||||||||||||||||||
Operating Revenues | 32,340,000,000 | $ 30,937,000,000 | $ 30,532,000,000 | $ 32,171,000,000 | 34,254,000,000 | $ 33,158,000,000 | $ 32,224,000,000 | $ 31,984,000,000 | 125,980,000,000 | 131,620,000,000 | 127,079,000,000 | |||||||||||||||||||
Operating Income | 8,023,000,000 | $ 6,540,000,000 | $ 4,554,000,000 | $ 7,942,000,000 | 9,744,000,000 | $ 7,535,000,000 | $ 7,821,000,000 | 7,960,000,000 | 27,059,000,000 | 33,060,000,000 | 19,599,000,000 | |||||||||||||||||||
Real estate assets held and used | 84,751,000,000 | 83,541,000,000 | 84,751,000,000 | 83,541,000,000 | ||||||||||||||||||||||||||
Non-current assets held for sale | 613,000,000 | 10,267,000,000 | 613,000,000 | 10,267,000,000 | ||||||||||||||||||||||||||
Goodwill | 27,205,000,000 | 25,331,000,000 | $ 24,639,000,000 | 27,205,000,000 | 25,331,000,000 | 24,639,000,000 | ||||||||||||||||||||||||
Data Center Sale with Equinix | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Proceeds from dispositions of businesses | $ 3,600,000,000 | |||||||||||||||||||||||||||||
Real estate assets held and used | 700,000,000 | 700,000,000 | ||||||||||||||||||||||||||||
Non-current assets held for sale | 613,000,000 | 613,000,000 | ||||||||||||||||||||||||||||
United States and Latin America | Data Center Sale with Equinix | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Number of data center sites that will be sold | Site | 24 | |||||||||||||||||||||||||||||
Europe, Asia-Pacific and Canada | Data Center Sale with Equinix | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Number of data center sites | Site | 27 | |||||||||||||||||||||||||||||
Access Line Sale with Frontier | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Proceeds from dispositions of businesses | $ 10,500,000,000 | |||||||||||||||||||||||||||||
Net consideration from disposition of businesses | 7,300,000,000 | |||||||||||||||||||||||||||||
Debt assumed by Frontier | $ 600,000,000 | |||||||||||||||||||||||||||||
Number of FiOS Internet subscribers divested | Customer | 1,600,000 | |||||||||||||||||||||||||||||
Number of voice connections divested | Unit | 3,300,000 | |||||||||||||||||||||||||||||
Number of FiOS video subscribers divested | Customer | 1,200,000 | |||||||||||||||||||||||||||||
Operating Revenues | 1,300,000,000 | 5,300,000,000 | 5,400,000,000 | |||||||||||||||||||||||||||
Operating Income | 700,000,000 | 2,800,000,000 | 2,000,000,000 | |||||||||||||||||||||||||||
Net cash proceeds received used to reduce consolidated indebtedness | $ 9,900,000,000 | |||||||||||||||||||||||||||||
Derecognition of net assets, plant, property, and equipment | $ 9,000,000,000 | |||||||||||||||||||||||||||||
Derecognition of net assets, goodwill | 1,300,000,000 | |||||||||||||||||||||||||||||
Derecognition of net assets, defined benefit pension and other postretirement benefit plan obligations | 700,000,000 | 700,000,000 | 700,000,000 | |||||||||||||||||||||||||||
Derecognition of debt assumed by Frontier | $ 600,000,000 | |||||||||||||||||||||||||||||
Pre-tax gain (loss) on sale of business and termination of venture | $ 1,007,000,000 | |||||||||||||||||||||||||||||
Access Line Sale with Frontier | Pension | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Number of defined benefit plans from which elimination of accrual of pension benefits for some or all future services of a significant number of employees covered occurred | plan | 3 | |||||||||||||||||||||||||||||
Access Line Sale with Frontier | Other Postretirement Benefit Plan | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Number of defined benefit plans from which elimination of accrual of pension benefits for some or all future services of a significant number of employees covered occurred | plan | 1 | |||||||||||||||||||||||||||||
Access Line Sale with Frontier | Selling, general and administrative expense | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Pre-tax gain (loss) on sale of business and termination of venture | $ 1,000,000,000 | |||||||||||||||||||||||||||||
Curtailment gain | 500,000,000 | |||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Cash Proceeds from Sale-Leaseback | 200,000,000 | |||||||||||||||||||||||||||||
Advanced Wireless Services Spectrum Licenses | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Acquisitions | 400,000,000 | |||||||||||||||||||||||||||||
Gain on sale of licenses | 100,000,000 | |||||||||||||||||||||||||||||
FCC spectrum licenses auction | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
FCC auction spectrum licenses | Licenses | 181 | |||||||||||||||||||||||||||||
Cash paid to acquire spectrum licenses | $ 10,400,000,000 | $ 9,500,000,000 | 900,000,000 | |||||||||||||||||||||||||||
Wireless Licenses | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Acquisitions | 28,000,000 | 10,474,000,000 | ||||||||||||||||||||||||||||
Assets held for sale | $ 900,000,000 | 300,000,000 | 900,000,000 | $ 300,000,000 | ||||||||||||||||||||||||||
Verizon Notes | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Aggregate principal amount of Verizon Notes | $ 5,000,000,000 | |||||||||||||||||||||||||||||
Verizon Notes due February 21, 2022 | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Aggregate principal amount of Verizon Notes | 2,500,000,000 | |||||||||||||||||||||||||||||
Verizon Notes due February 21, 2025 | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Aggregate principal amount of Verizon Notes | $ 2,500,000,000 | |||||||||||||||||||||||||||||
T-Mobile Wireless licenses agreement | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
License purchase and exchange transactions, net cash proceeds | $ 2,400,000,000 | |||||||||||||||||||||||||||||
T-Mobile Wireless licenses agreement | Advanced Wireless Services Spectrum Licenses | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Acquisitions | 900,000,000 | |||||||||||||||||||||||||||||
T-Mobile USA 700 MHz A Block Wireless licenses agreements | Advanced Wireless Services Spectrum Licenses | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Acquisitions | $ 1,600,000,000 | |||||||||||||||||||||||||||||
Gain on sale of licenses | 700,000,000 | |||||||||||||||||||||||||||||
T-Mobile USA Affiliate Wireless Licenses Agreements | Advanced Wireless Services Spectrum Licenses | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Acquisitions | 400,000,000 | |||||||||||||||||||||||||||||
Gain on sale of licenses | $ 300,000,000 | |||||||||||||||||||||||||||||
Basking Ridge, New Jersey | Buildings and real estate | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Cash Proceeds from Sale-Leaseback | $ 700,000,000 | |||||||||||||||||||||||||||||
Deferred gain on sale leaseback transaction | $ 400,000,000 | |||||||||||||||||||||||||||||
Initial leaseback term | 20 years | |||||||||||||||||||||||||||||
Redbox Instant by Verizon | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Pre-tax gain (loss) on sale of business and termination of venture | $ (100,000,000) | |||||||||||||||||||||||||||||
Vodafone Omnitel N.V. | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Verizon ownership percentage | 23.10% | |||||||||||||||||||||||||||||
Selling price (fair value) of Verizon's equity method investment in Vodafone Omnitel | $ 3,500,000,000 | |||||||||||||||||||||||||||||
Pre-tax gain on sale of equity interest | $ 1,900,000,000 | |||||||||||||||||||||||||||||
Sprint Corporation | Advanced Wireless Services Spectrum Licenses | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Acquisitions | 300,000,000 | |||||||||||||||||||||||||||||
Wireless Transaction | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Business acquisition merger consideration | $ 130,000,000,000 | |||||||||||||||||||||||||||||
Cash paid to complete the Wireless Transaction | 58,890,000,000 | |||||||||||||||||||||||||||||
Aggregate value of common shares issued to Vodafone shareholders | $ 61,300,000,000 | |||||||||||||||||||||||||||||
Common stock, par value | $ / shares | $ 0.10 | |||||||||||||||||||||||||||||
Other consideration paid to Vodafone | $ 1,700,000,000 | |||||||||||||||||||||||||||||
Common shares issued | shares | 1,270,000,000 | |||||||||||||||||||||||||||||
Preferred stock redemption date | 2020-04 | |||||||||||||||||||||||||||||
Preferred stock redemption price, per share | $ / shares | $ 1,000 | |||||||||||||||||||||||||||||
Preferred stock dividend rate, percentage | 5.143% | |||||||||||||||||||||||||||||
Deferred tax liability attributable to the Wireless Transaction | $ 13,500,000,000 | |||||||||||||||||||||||||||||
Wireless Transaction | Series D Preferred Stock | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Preferred stock shares outstanding | shares | 825,000 | |||||||||||||||||||||||||||||
Wireless Transaction | Series E Preferred Stock | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Preferred stock shares outstanding | shares | 825,000 | |||||||||||||||||||||||||||||
Wireless Transaction | Verizon Notes | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Quarterly interest payment start date | May 21, 2014 | |||||||||||||||||||||||||||||
Wireless Transaction | Verizon Notes due February 21, 2022 | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument maturity date | Feb. 21, 2022 | |||||||||||||||||||||||||||||
Debt instrument, description of variable rate basis | Three-month LIBOR, plus 1.222% | |||||||||||||||||||||||||||||
Wireless Transaction | Verizon Notes due February 21, 2022 | London Interbank Offered Rate (LIBOR) | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, marginal rate | 1.222% | |||||||||||||||||||||||||||||
Wireless Transaction | Verizon Notes due February 21, 2025 | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument maturity date | Feb. 21, 2025 | |||||||||||||||||||||||||||||
Debt instrument, description of variable rate basis | Three-month LIBOR, plus 1.372% | |||||||||||||||||||||||||||||
Wireless Transaction | Verizon Notes due February 21, 2025 | London Interbank Offered Rate (LIBOR) | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, marginal rate | 1.372% | |||||||||||||||||||||||||||||
Wireless Transaction | Cellco Partnership DBA Verizon Wireless | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Percentage of noncontrolling interest by Vodafone Group Plc in Cellco Partnership joint venture | 45.00% | |||||||||||||||||||||||||||||
Tower Monetization Transaction | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Number of towers subject to failed sale-leaseback | Leases | 11,300 | 11,300 | ||||||||||||||||||||||||||||
Cash proceeds from failed sale-leaseback | $ 5,000,000,000 | |||||||||||||||||||||||||||||
Term of Lease | 28 years | |||||||||||||||||||||||||||||
Number of towers subject to disposition | Leases | 162 | 162 | ||||||||||||||||||||||||||||
Cash proceeds from disposition of towers | $ 100,000,000 | |||||||||||||||||||||||||||||
Minimum years of sublease capacity on towers | 10 years | |||||||||||||||||||||||||||||
March 2015 Tower Monetization Transaction- Other, net cash flows provided by operating activities | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Cash proceeds from failed sale-leaseback | $ 2,400,000,000 | |||||||||||||||||||||||||||||
March 2015 Tower Monetization Transaction- Other, net cash flows used in financing activities | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Cash proceeds from failed sale-leaseback | $ 2,700,000,000 | |||||||||||||||||||||||||||||
AOL Inc | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Business acquisition merger consideration | $ 4,141,000,000 | |||||||||||||||||||||||||||||
Business acquisition, purchase price in cash | $ 3,764,000,000 | $ 179,000,000 | ||||||||||||||||||||||||||||
Business acquisition, share price | $ / shares | $ 50 | |||||||||||||||||||||||||||||
Number of shares exercised under appraisal rights of Delaware law | shares | 6,600,000 | |||||||||||||||||||||||||||||
Business acquisition, potential additional payment | $ 330,000,000 | |||||||||||||||||||||||||||||
Cash acquired | 500,000,000 | |||||||||||||||||||||||||||||
Goodwill | 1,938,000,000 | |||||||||||||||||||||||||||||
Intangible assets subject to amortization | $ 2,504,000,000 | |||||||||||||||||||||||||||||
Fleetmatics Group PLC | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Business acquisition merger consideration | $ 2,500,000,000 | |||||||||||||||||||||||||||||
Business acquisition, share price | $ / shares | $ 60 | |||||||||||||||||||||||||||||
Cash acquired | $ 100,000,000 | |||||||||||||||||||||||||||||
Goodwill | $ 1,400,000,000 | |||||||||||||||||||||||||||||
Intangible assets subject to amortization | $ 1,100,000,000 | |||||||||||||||||||||||||||||
XO Holdings | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Business acquisition, purchase price in cash | $ 1,800,000,000 | |||||||||||||||||||||||||||||
Yahoo! Inc. | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Business acquisition, purchase price in cash | $ 4,830,000,000 | |||||||||||||||||||||||||||||
Yahoo! Inc. | Restricted Stock Units | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Outstanding restricted stock units to be awarded to employees who transferred from yahoo | $ 1,100,000,000 | |||||||||||||||||||||||||||||
Yahoo! Inc. | Subsequent Event | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Business acquisition, purchase price in cash | $ 4,480,000,000 | |||||||||||||||||||||||||||||
Purchase price reduction due to Purchase Agreement Amendment | $ (350,000,000) | |||||||||||||||||||||||||||||
Post-closing liabilities arising from data breach percent retained | 50.00% | |||||||||||||||||||||||||||||
Post-closing liabilities arising from shareholders percent retained | 100.00% | |||||||||||||||||||||||||||||
Telogis Inc | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Business acquisition, purchase price in cash | $ 900,000,000 | |||||||||||||||||||||||||||||
Telogis Inc | Corporate and Other | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Goodwill | $ 500,000,000 |
Consideration and Preliminary I
Consideration and Preliminary Identification of Assets Acquired, Including Cash Acquired and Liabilities Assumed as well as Fair Value Of Noncontrolling Interests (Detail) - USD ($) $ in Millions | Jun. 23, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Assets acquired: | ||||||
Goodwill | $ 27,205 | $ 25,331 | $ 24,639 | |||
AOL Inc | ||||||
Business Acquisition [Line Items] | ||||||
Cash payment to AOL's equity holders | $ 3,764 | 179 | ||||
Estimated liabilities to be paid | 377 | [1] | $ 198 | |||
Total consideration | 4,141 | |||||
Assets acquired: | ||||||
Goodwill | 1,938 | |||||
Intangible assets subject to amortization | 2,504 | |||||
Other | 1,551 | |||||
Total assets acquired | 5,993 | |||||
Liabilities assumed: | ||||||
Total liabilities assumed | 1,851 | $ 600 | ||||
Net assets acquired: | 4,142 | |||||
Noncontrolling interest | (1) | |||||
Total consideration | $ 4,141 | |||||
[1] | During the year ended December 31, 2016, we made cash payments of $179 million in respect of acquisition-date estimated liabilities to be paid. As of December 31, 2016, the remaining balance of estimated liabilities to be paid was $198 million. |
Consideration and Preliminary46
Consideration and Preliminary Identification of Assets Acquired, Including Cash Acquired and Liabilities Assumed as well as Fair Value Of Noncontrolling Interests (Parenthetical) (Detail) - AOL Inc - USD ($) $ in Millions | Jun. 23, 2015 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||
Cash payment to AOL's equity holders | $ 3,764 | $ 179 | |
Estimated liabilities to be paid | $ 377 | [1] | $ 198 |
[1] | During the year ended December 31, 2016, we made cash payments of $179 million in respect of acquisition-date estimated liabilities to be paid. As of December 31, 2016, the remaining balance of estimated liabilities to be paid was $198 million. |
Changes in Carrying Amount of W
Changes in Carrying Amount of Wireless Licenses (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Beginning balance | $ 86,575 | ||
Capitalized interest on wireless licenses | 704 | $ 584 | $ 376 |
Ending balance | 86,673 | 86,575 | |
Wireless Licenses | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Beginning balance | 86,575 | 75,341 | |
Acquisitions (Note 2) | 28 | 10,474 | |
Capitalized interest on wireless licenses | 506 | 389 | |
Reclassifications, adjustments and other | (436) | 371 | |
Ending balance | $ 86,673 | $ 86,575 | $ 75,341 |
Wireless Licenses, Goodwill a48
Wireless Licenses, Goodwill and Other Intangible Assets - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 06, 2016Site | |
Indefinite-lived Intangible Assets [Line Items] | |||||
Assets held for sale | $ 882 | $ 792 | |||
Wireless licenses under development | 5,710 | 4,907 | |||
Reclassifications, adjustments and other | (436) | (1,346) | |||
Acquisitions (Note 2) | 2,310 | 2,038 | |||
Wireless Licenses | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Assets held for sale | 900 | 300 | |||
Wireless licenses under development | $ 10,000 | 10,400 | |||
Average remaining renewal period of wireless license portfolio (in years) | 5 years 1 month 6 days | ||||
Other Operating Segments | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Reclassifications, adjustments and other | $ 100 | $ 111 | 572 | ||
Acquisitions (Note 2) | 2,310 | 2,035 | |||
United States and Latin America | Data Center Sale with Equinix | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Number of data center sites that will be sold | Site | 24 | ||||
AOL Inc | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Acquisitions (Note 2) | $ 1,900 | ||||
Held for Sale | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Goodwill held for sale | $ 400 | $ 1,300 |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | |||
Beginning balance | $ 25,331 | $ 24,639 | |
Acquisitions (Note 2) | 2,310 | 2,038 | |
Reclassifications, adjustments and other | (436) | (1,346) | |
Ending balance | 27,205 | 25,331 | |
Wireless | |||
Goodwill [Line Items] | |||
Beginning balance | 18,393 | 18,390 | |
Acquisitions (Note 2) | 3 | ||
Ending balance | 18,393 | 18,393 | |
Wireline | |||
Goodwill [Line Items] | |||
Beginning balance | 4,331 | 6,249 | |
Reclassifications, adjustments and other | (547) | (1,918) | |
Ending balance | 3,784 | 4,331 | |
Other Operating Segments | |||
Goodwill [Line Items] | |||
Beginning balance | 2,607 | ||
Acquisitions (Note 2) | 2,310 | 2,035 | |
Reclassifications, adjustments and other | $ 100 | 111 | 572 |
Ending balance | $ 5,028 | $ 2,607 |
Composition of Other Intangible
Composition of Other Intangible Assets, Net (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 20,873 | $ 20,027 |
Accumulated Amortization | (11,976) | (12,435) |
Net Amount | 8,897 | 7,592 |
Customer Lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 2,884 | 4,139 |
Accumulated Amortization | (480) | (2,365) |
Net Amount | $ 2,404 | 1,774 |
Customer Lists | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life for finite-lived intangible assets, years | 6 years | |
Customer Lists | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life for finite-lived intangible assets, years | 14 years | |
Non-Network Internal-Use Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 16,135 | 14,542 |
Accumulated Amortization | (10,913) | (9,620) |
Net Amount | $ 5,222 | 4,922 |
Non-Network Internal-Use Software | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life for finite-lived intangible assets, years | 3 years | |
Non-Network Internal-Use Software | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life for finite-lived intangible assets, years | 8 years | |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 1,854 | 1,346 |
Accumulated Amortization | (583) | (450) |
Net Amount | $ 1,271 | $ 896 |
Other Intangible Assets | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life for finite-lived intangible assets, years | 5 years | |
Other Intangible Assets | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life for finite-lived intangible assets, years | 25 years |
Amortization Expense for Other
Amortization Expense for Other Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense for other intangible assets | $ 1,701 | $ 1,694 | $ 1,567 |
Estimated Future Amortization E
Estimated Future Amortization Expense for Other Intangible Assets (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2,017 | $ 1,749 |
2,018 | 1,564 |
2,019 | 1,358 |
2,020 | 1,121 |
2,021 | $ 938 |
Summary of Plant, Property and
Summary of Plant, Property and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Land | $ 667 | $ 709 |
Buildings and equipment | 27,117 | 25,587 |
Central office and other network equipment | 136,737 | 129,201 |
Cable, poles and conduit | 45,639 | 44,290 |
Leasehold improvements | 7,627 | 7,104 |
Work in progress | 5,710 | 4,907 |
Furniture, vehicles and other | 8,718 | 8,365 |
Plant, property and equipment | 232,215 | 220,163 |
Less accumulated depreciation | 147,464 | 136,622 |
Plant, property and equipment, net | $ 84,751 | $ 83,541 |
Buildings and Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life (years) | 7 years | |
Buildings and Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life (years) | 45 years | |
Central Office and Other Network Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life (years) | 3 years | |
Central Office and Other Network Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life (years) | 50 years | |
Cable Poles and Conduit | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life (years) | 7 years | |
Cable Poles and Conduit | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life (years) | 50 years | |
Leasehold Improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life (years) | 5 years | |
Leasehold Improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life (years) | 20 years | |
Furniture Vehicles and Other | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life (years) | 3 years | |
Furniture Vehicles and Other | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life (years) | 20 years |
Leasing Arrangements - Addition
Leasing Arrangements - Additional Information (Detail) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2015USD ($)Leases | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Schedule of Operating Leases [Line Items] | ||||
Rent expense under operating leases | $ 3,600 | $ 3,200 | $ 2,700 | |
Cash proceeds from failed sale-leaseback | 2,346 | |||
Tower Monetization Transaction | ||||
Schedule of Operating Leases [Line Items] | ||||
Number of towers subject to failed sale-leaseback | Leases | 11,300 | |||
Cash proceeds from failed sale-leaseback | $ 5,000 | |||
Minimum years of sublease capacity on towers | 10 years | |||
Lease payment | 300 | 200 | ||
Financing obligation payments | 2,400 | |||
Towers in plant property and equipment net | $ 500 | $ 500 |
Schedule of Capital Leased Asse
Schedule of Capital Leased Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Capital Leased Assets [Line Items] | ||
Capital leases | $ 1,277 | $ 1,046 |
Less accumulated amortization | (524) | (318) |
Total | $ 753 | $ 728 |
Schedule of Aggregate Minimum R
Schedule of Aggregate Minimum Rental Commitments under Noncancelable Leases (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Capital Leases And Operating Leases [Line Items] | |
Contractually required capital lease payments, due within one year of the balance sheet date | $ 366 |
Contractually required capital lease payments, due within the second year from the balance sheet date | 272 |
Contractually required capital lease payments, due within the third year from the balance sheet date | 149 |
Contractually required capital lease payments, due within the fourth year from the balance sheet date | 111 |
Contractually required capital lease payments, due within the fifth year from the balance sheet date | 62 |
Contractually required capital lease payments, due after the fifth year from the balance sheet date | 79 |
Contractually required capital lease payments | 1,039 |
Less interest and executory costs | 89 |
Present value of minimum lease payments | 950 |
Less current installments | 335 |
Long-term obligation at December 31, 2016 | 615 |
Present value of minimum lease payments | 950 |
Contractually required operating lease payments, due within one year of the balance sheet date | 2,822 |
Contractually required operating lease payments, due within the second year from the balance sheet date | 2,583 |
Contractually required operating lease payments, due within the third year from the balance sheet date | 2,304 |
Contractually required operating lease payments, due within the fourth year from the balance sheet date | 1,927 |
Contractually required operating lease payments, due within the fifth year from the balance sheet date | 1,515 |
Contractually required operating lease payments, due after the fifth year from the balance sheet date | 6,724 |
Contractually required operating lease payments | $ 17,875 |
Changes to Debt (Detail)
Changes to Debt (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Balance at January 1, 2016 | $ 6,489 | ||
Balance at January 1, 2016 | 103,240 | ||
Balance at January 1, 2016 | 109,729 | ||
Proceeds from long-term borrowings | 12,964 | $ 6,667 | $ 30,967 |
Proceeds from asset-backed long-term borrowings | 4,986 | ||
Repayments of long-term borrowings and capital leases obligations | (19,159) | (9,340) | (17,669) |
Decrease in short-term obligations, excluding current maturities | (149) | (344) | $ (475) |
Other | (293) | ||
Balance at December 31, 2016 | 2,645 | 6,489 | |
Balance at December 31, 2016 | 105,433 | 103,240 | |
Balance at December 31, 2016 | 108,078 | 109,729 | |
Debt Maturing within One Year | |||
Debt Instrument [Line Items] | |||
Balance at January 1, 2016 | 6,489 | ||
Proceeds from long-term borrowings | 120 | ||
Repayments of long-term borrowings and capital leases obligations | (8,125) | ||
Decrease in short-term obligations, excluding current maturities | (149) | ||
Reclassifications of long-term debt | 4,088 | ||
Other | 222 | ||
Balance at December 31, 2016 | 2,645 | 6,489 | |
Long-term Debt | |||
Debt Instrument [Line Items] | |||
Balance at January 1, 2016 | 103,240 | ||
Proceeds from long-term borrowings | 12,844 | ||
Proceeds from asset-backed long-term borrowings | 4,986 | ||
Repayments of long-term borrowings and capital leases obligations | (11,034) | ||
Reclassifications of long-term debt | 4,088 | ||
Other | (515) | ||
Balance at December 31, 2016 | $ 105,433 | $ 103,240 |
Debt Maturing Within One Year (
Debt Maturing Within One Year (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | ||
Long-term debt maturing within one year | $ 2,477 | $ 6,325 |
Short-term notes payable | 168 | 158 |
Commercial paper and other | 6 | |
Total debt maturing within one year | $ 2,645 | $ 6,489 |
Debt - Additional Information (
Debt - Additional Information (Detail) € in Millions, £ in Millions | Jan. 25, 2017USD ($) | Sep. 15, 2016USD ($) | Apr. 08, 2016USD ($) | Apr. 05, 2016 | Apr. 04, 2016USD ($) | Apr. 01, 2016USD ($) | Mar. 31, 2015USD ($) | Feb. 21, 2017USD ($) | Jan. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Nov. 30, 2016USD ($) | Oct. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Aug. 31, 2016USD ($) | Jul. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Nov. 30, 2015USD ($) | Oct. 31, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Oct. 31, 2016EUR (€) | Oct. 31, 2016GBP (£) | Sep. 23, 2016USD ($) | Mar. 31, 2016USD ($) | Mar. 04, 2016USD ($) | Dec. 31, 2015EUR (€) | Jun. 30, 2015USD ($) | Jun. 23, 2015USD ($) | Feb. 21, 2014USD ($) |
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Net pre-tax losses on early debt redemption | $ (1,800,000,000) | ||||||||||||||||||||||||||||||||
Long-term debt maturing within one year | $ 2,477,000,000 | $ 6,325,000,000 | $ 6,325,000,000 | 2,477,000,000 | $ 6,325,000,000 | ||||||||||||||||||||||||||||
Principal amount outstanding in connection with the guarantee of debt obligations | 108,078,000,000 | 109,729,000,000 | 109,729,000,000 | 108,078,000,000 | 109,729,000,000 | ||||||||||||||||||||||||||||
Credit Facility | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Borrowing capacity | 9,000,000,000 | $ 9,000,000,000 | $ 9,000,000,000 | $ 1,000,000,000 | |||||||||||||||||||||||||||||
Credit facility expiry date | Sep. 23, 2020 | ||||||||||||||||||||||||||||||||
Amount of unused borrowing capacity under credit facility | 8,900,000,000 | $ 8,900,000,000 | |||||||||||||||||||||||||||||||
Line of credit | 500,000,000 | 500,000,000 | |||||||||||||||||||||||||||||||
Credit Facility | Letter of Credit | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Amount of unused borrowing capacity under credit facility | 500,000,000 | 500,000,000 | |||||||||||||||||||||||||||||||
Previously Disclosed | Credit Facility | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Borrowing capacity | $ 8,000,000,000 | ||||||||||||||||||||||||||||||||
2016 Tender Offers | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Aggregate purchase price | $ 9,500,000,000 | ||||||||||||||||||||||||||||||||
Tender offer for notes, settlement date | Apr. 4, 2016 | ||||||||||||||||||||||||||||||||
Repayment of debt | $ 10,200,000,000 | ||||||||||||||||||||||||||||||||
Accrued interest paid | $ 100,000,000 | ||||||||||||||||||||||||||||||||
August Debt Issuance | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Amount of notes repaid | $ 2,300,000,000 | ||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 6,200,000,000 | ||||||||||||||||||||||||||||||||
Proceeds from long-term borrowings | $ 6,100,000,000 | ||||||||||||||||||||||||||||||||
October Debt Issuance | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Proceeds from long-term borrowings | $ 4,100,000,000 | ||||||||||||||||||||||||||||||||
January 2015 Term Loan Agreement | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Borrowing capacity | $ 6,500,000,000 | $ 6,500,000,000 | $ 6,500,000,000 | ||||||||||||||||||||||||||||||
Line of credit | 0 | 0 | $ 0 | ||||||||||||||||||||||||||||||
Leverage ratio | 350.00% | ||||||||||||||||||||||||||||||||
Term loan agreement partial mandatory prepayment amount | $ 4,000,000,000 | ||||||||||||||||||||||||||||||||
Debt instrument maturity date | 2016-03 | ||||||||||||||||||||||||||||||||
Date in which a partial mandatory prepayment is required | 2015-06 | ||||||||||||||||||||||||||||||||
Term loan agreement prepaid amount | $ 5,000,000,000 | ||||||||||||||||||||||||||||||||
Repayments of Lines of Credit | $ 500,000,000 | $ 1,000,000,000 | |||||||||||||||||||||||||||||||
1.5% loan due 2018 | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 1.50% | ||||||||||||||||||||||||||||||||
Debt instrument maturity date | 2,018 | ||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 200,000,000 | ||||||||||||||||||||||||||||||||
Asset Backed Notes | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Collateral revolving period | 2 years | 2 years | |||||||||||||||||||||||||||||||
Guarantee of Debentures of Operating Telephone Company Subsidiaries | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Principal amount outstanding in connection with the guarantee of debt obligations | 1,200,000,000 | 1,200,000,000 | |||||||||||||||||||||||||||||||
Guarantee of Debt Obligations of GTE Corporation | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Principal amount outstanding in connection with the guarantee of debt obligations | 1,100,000,000 | 1,100,000,000 | |||||||||||||||||||||||||||||||
Verizon Notes due February 21, 2022 | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 2,500,000,000 | ||||||||||||||||||||||||||||||||
Asset-Backed Debt | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Asset-backed debt, carrying value | 5,000,000,000 | 5,000,000,000 | |||||||||||||||||||||||||||||||
ABS Financing Facility | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Debt instrument maturity period | 2 years 4 months 24 days | ||||||||||||||||||||||||||||||||
Asset-backed debt, carrying value | 2,500,000,000 | $ 2,500,000,000 | |||||||||||||||||||||||||||||||
Collateral revolving period | 2 years | ||||||||||||||||||||||||||||||||
Borrowings under financing facility | 1,000,000,000 | $ 1,500,000,000 | |||||||||||||||||||||||||||||||
Additional borrowing capacity | 1,500,000,000 | ||||||||||||||||||||||||||||||||
Guarantee Of Debentures And First Mortgage Bonds Of Operating Telephone Company Subsidiaries | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Termination of guarantee for aggregate principal amount of debentures | $ 600,000,000 | ||||||||||||||||||||||||||||||||
Maximum | 2016 Tender Offers | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Aggregate purchase price | $ 5,500,000,000 | ||||||||||||||||||||||||||||||||
April Early Debt Redemption | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Extinguishment of Debt, Amount | $ 2,300,000,000 | ||||||||||||||||||||||||||||||||
April Early Debt Redemption | 2.50% Notes due 2016 | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Amount of notes repaid | $ 900,000,000 | ||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 2.50% | ||||||||||||||||||||||||||||||||
Debt instrument maturity date | 2,016 | ||||||||||||||||||||||||||||||||
Notes purchased price of principal amount of note, percentage | 100.80% | ||||||||||||||||||||||||||||||||
April Early Debt Redemption | 2.00% Notes due 2016 | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Amount of notes repaid | $ 500,000,000 | ||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 2.00% | ||||||||||||||||||||||||||||||||
Debt instrument maturity date | 2,016 | ||||||||||||||||||||||||||||||||
Notes purchased price of principal amount of note, percentage | 100.80% | ||||||||||||||||||||||||||||||||
April Early Debt Redemption | 6.35% Notes due 2019 | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Amount of notes repaid | $ 800,000,000 | ||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 6.35% | ||||||||||||||||||||||||||||||||
Debt instrument maturity date | 2,019 | ||||||||||||||||||||||||||||||||
Notes purchased price of principal amount of note, percentage | 113.50% | ||||||||||||||||||||||||||||||||
September Debt Redemption | 4.80% Notes Due 2044 | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Amount of notes repaid | $ 900,000,000 | ||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 4.80% | ||||||||||||||||||||||||||||||||
Debt instrument maturity date | 2,044 | ||||||||||||||||||||||||||||||||
Notes purchased price of principal amount of note, percentage | 100.00% | ||||||||||||||||||||||||||||||||
December Debt Redemption | 1.35% Notes due 2017 | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Amount of notes repaid | $ 2,000,000,000 | ||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 1.35% | 1.35% | |||||||||||||||||||||||||||||||
Debt instrument maturity date | 2,017 | ||||||||||||||||||||||||||||||||
Notes purchased price of principal amount of note, percentage | 100.321% | ||||||||||||||||||||||||||||||||
December Debt Redemption | Verizon Notes due February 21, 2022 | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Amount of notes repaid | $ 2,500,000,000 | ||||||||||||||||||||||||||||||||
Notes purchased price of principal amount of note, percentage | 100.00% | ||||||||||||||||||||||||||||||||
Floating Rate Notes | August Debt Issuance | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Debt instrument maturity date | 2,019 | ||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 400,000,000 | ||||||||||||||||||||||||||||||||
1.375% Notes Due 2019 | August Debt Issuance | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 1.375% | ||||||||||||||||||||||||||||||||
Debt instrument maturity date | 2,019 | ||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 1,000,000,000 | ||||||||||||||||||||||||||||||||
1.750% Notes Due 2021 | August Debt Issuance | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 1.75% | ||||||||||||||||||||||||||||||||
Debt instrument maturity date | 2,021 | ||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 1,000,000,000 | ||||||||||||||||||||||||||||||||
2.625% Notes Due 2026 | August Debt Issuance | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 2.625% | ||||||||||||||||||||||||||||||||
Debt instrument maturity date | 2,026 | ||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 2,300,000,000 | ||||||||||||||||||||||||||||||||
4.125% Notes Due 2046 | August Debt Issuance | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 4.125% | ||||||||||||||||||||||||||||||||
Debt instrument maturity date | 2,046 | ||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 1,500,000,000 | ||||||||||||||||||||||||||||||||
4.20% Notes Due 2046 | September Debt Issuance | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 4.20% | ||||||||||||||||||||||||||||||||
Debt instrument maturity date | 2,046 | ||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 2,100,000,000 | ||||||||||||||||||||||||||||||||
Proceeds from long-term borrowings | $ 2,000,000,000 | ||||||||||||||||||||||||||||||||
0.500% Notes due 2022 | October Debt Issuance | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 0.50% | 0.50% | |||||||||||||||||||||||||||||||
Debt instrument maturity date | 2,022 | ||||||||||||||||||||||||||||||||
Aggregate principal amount | € | € 1,000 | ||||||||||||||||||||||||||||||||
0.875% Notes due 2025 | October Debt Issuance | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 0.875% | 0.875% | |||||||||||||||||||||||||||||||
Debt instrument maturity date | 2,025 | ||||||||||||||||||||||||||||||||
Aggregate principal amount | € | € 1,000 | ||||||||||||||||||||||||||||||||
1.375% Notes due 2028 | October Debt Issuance | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 1.375% | 1.375% | |||||||||||||||||||||||||||||||
Debt instrument maturity date | 2,028 | ||||||||||||||||||||||||||||||||
Aggregate principal amount | € | € 1,250 | ||||||||||||||||||||||||||||||||
3.125% Notes due 2035 | October Debt Issuance | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 3.125% | 3.125% | |||||||||||||||||||||||||||||||
Debt instrument maturity date | 2,035 | ||||||||||||||||||||||||||||||||
Aggregate principal amount | £ | £ 450 | ||||||||||||||||||||||||||||||||
Senior and junior asset-backed notes | Asset Backed Notes | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 1,400,000,000 | $ 1,200,000,000 | |||||||||||||||||||||||||||||||
Senior asset-backed notes | Asset Backed Notes | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 1.68% | 1.42% | |||||||||||||||||||||||||||||||
Debt instrument maturity period | 2 years 7 months 6 days | 2 years 6 months | |||||||||||||||||||||||||||||||
Junior asset-backed notes | Asset Backed Notes | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Debt instrument maturity period | 3 years 3 months 18 days | 3 years 2 months 12 days | |||||||||||||||||||||||||||||||
Debt instrument weighted average interest rate | 2.26% | 1.53% | |||||||||||||||||||||||||||||||
GTE Corporation | Old Notes in Exchange for 2048 New Notes | 6.94% Notes due 2028 | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 6.94% | 6.94% | 6.94% | ||||||||||||||||||||||||||||||
Debt instrument maturity date | 2,028 | ||||||||||||||||||||||||||||||||
Verizon Communications | 2036 New Notes in February Exchange Offers | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 4.272% | 4.272% | 4.272% | ||||||||||||||||||||||||||||||
Debt instrument maturity date | 2,036 | ||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 2,900,000,000 | $ 2,900,000,000 | $ 2,900,000,000 | ||||||||||||||||||||||||||||||
Verizon Communications | 2048 New Notes in February Exchange Offers | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 4.522% | 4.522% | 4.522% | ||||||||||||||||||||||||||||||
Debt instrument maturity date | 2,048 | ||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 5,000,000,000 | $ 5,000,000,000 | $ 5,000,000,000 | ||||||||||||||||||||||||||||||
Verizon Communications | 2055 New Notes in February Exchange Offers | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 4.672% | 4.672% | 4.672% | ||||||||||||||||||||||||||||||
Debt instrument maturity date | 2,055 | ||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 5,500,000,000 | $ 5,500,000,000 | $ 5,500,000,000 | ||||||||||||||||||||||||||||||
Verizon Communications | Floating Rate Notes | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Amount of notes repaid | $ 500,000,000 | ||||||||||||||||||||||||||||||||
Verizon Communications | 0.70% Notes | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Amount of notes repaid | $ 1,000,000,000 | ||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 0.70% | ||||||||||||||||||||||||||||||||
Cellco Partnership and Verizon Wireless Capital LLC | 8.75% Notes due 2015 | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Amount of notes repaid | $ 600,000,000 | ||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 8.75% | 8.75% | 8.75% | 8.75% | |||||||||||||||||||||||||||||
Aggregate principal amount | € | € 500 | ||||||||||||||||||||||||||||||||
Third Party Investors | Senior and junior asset-backed notes | Asset Backed Notes | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 1,100,000,000 | ||||||||||||||||||||||||||||||||
Subsequent Event | January 2017 Term Loan Agreement | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Borrowing capacity | $ 5,500,000,000 | ||||||||||||||||||||||||||||||||
Debt instrument maturity period | 18 months | ||||||||||||||||||||||||||||||||
Term loan agreement partial mandatory prepayment period | 6 months | ||||||||||||||||||||||||||||||||
Leverage ratio | 350.00% | ||||||||||||||||||||||||||||||||
Subsequent Event | January 2017 Exchange Offers | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Exchange offer expiration date | Jan. 31, 2017 | ||||||||||||||||||||||||||||||||
Exchange Offer Settlement Date | Feb. 3, 2017 | ||||||||||||||||||||||||||||||||
Subsequent Event | January 2017 Cash Offers | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Amount of notes repaid | $ 500,000,000 | ||||||||||||||||||||||||||||||||
Cash offer expiration date | Jan. 31, 2017 | ||||||||||||||||||||||||||||||||
Cash offer settlement date | Feb. 3, 2017 | ||||||||||||||||||||||||||||||||
Subsequent Event | 4.95% Notes due 2047 | February Debt Issuance | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 4.95% | ||||||||||||||||||||||||||||||||
Debt instrument maturity date | 2,047 | ||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 1,500,000,000 | ||||||||||||||||||||||||||||||||
Proceeds from long-term borrowings | $ 1,500,000,000 | ||||||||||||||||||||||||||||||||
Subsequent Event | Old Notes in Exchange New Notes | January 2017 Exchange Offers | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 8,300,000,000 | ||||||||||||||||||||||||||||||||
Subsequent Event | Old Notes in Exchange New Notes | January 2017 Cash Offers | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Aggregate principal amount | 500,000,000 | ||||||||||||||||||||||||||||||||
Subsequent Event | Verizon Communications | January 2017 Exchange Offers | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Amount of notes repaid | $ 600,000,000 | ||||||||||||||||||||||||||||||||
Subsequent Event | Verizon Communications | 2.946% Notes due 2022 | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 2.946% | ||||||||||||||||||||||||||||||||
Debt instrument maturity date | 2,022 | ||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 3,200,000,000 | ||||||||||||||||||||||||||||||||
Subsequent Event | Verizon Communications | 4.812% Notes due 2039 | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 4.812% | ||||||||||||||||||||||||||||||||
Debt instrument maturity date | 2,039 | ||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 1,700,000,000 | ||||||||||||||||||||||||||||||||
Subsequent Event | Verizon Communications | 5.012% Notes due 2049 | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Stated interest rate on debt instrument | 5.012% | ||||||||||||||||||||||||||||||||
Debt instrument maturity date | 2,049 | ||||||||||||||||||||||||||||||||
Aggregate principal amount | $ 4,100,000,000 | ||||||||||||||||||||||||||||||||
Network Equipment | Vendor Financing Facility | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Value of purchase assets financed | $ 500,000,000 | $ 700,000,000 | |||||||||||||||||||||||||||||||
Long-term debt maturing within one year | $ 1,100,000,000 | $ 1,100,000,000 | |||||||||||||||||||||||||||||||
London Interbank Offered Rate (LIBOR) | August Debt Issuance | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Debt instrument, percentage points added to the reference rate | 0.37% | ||||||||||||||||||||||||||||||||
AOL Inc | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||
Debt acquired (Note 2) | $ 600,000,000 | $ 1,851,000,000 | |||||||||||||||||||||||||||||||
Repayments of debt and capital lease obligations | $ 400,000,000 |
Outstanding Long-Term Debt Obli
Outstanding Long-Term Debt Obligations (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Capital lease obligations (average rate of 3.5% and 3.4% in 2016 and 2015, respectively) | $ 950 | $ 957 |
Unamortized discount, net of premium | (5,716) | (5,824) |
Unamortized debt issuance costs | (469) | (465) |
Total long-term debt, including current maturities | 107,910 | 109,565 |
Less long-term debt maturing within one year | 2,477 | 6,325 |
Total long-term debt | $ 105,433 | 103,240 |
Verizon Communications | 0.50% - 3.85% Notes Payable And Other | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Maturity date range, start | 2,017 | |
Maturity date range, end | 2,042 | |
Notes payable and other | $ 28,491 | 26,281 |
Verizon Communications | 4.11% - 5.50% Notes Payable And Other | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Maturity date range, start | 2,018 | |
Maturity date range, end | 2,055 | |
Notes payable and other | $ 53,909 | 51,156 |
Verizon Communications | 5.85% - 6.90% Notes Payable and Other | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Maturity date range, start | 2,018 | |
Maturity date range, end | 2,054 | |
Notes payable and other | $ 11,295 | 16,420 |
Verizon Communications | 7.35% - 8.95% Notes Payable and Other | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Maturity date range, start | 2,018 | |
Maturity date range, end | 2,039 | |
Notes payable and other | $ 1,860 | 2,300 |
Verizon Communications | Floating Notes Payable and Other | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Maturity date range, start | 2,017 | |
Maturity date range, end | 2,025 | |
Notes payable and other | $ 9,750 | 14,100 |
Verizon Wireless | 6.80% - 7.88% Alltel assumed notes | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Maturity date range, start | 2,029 | |
Maturity date range, end | 2,032 | |
Notes payable and other | $ 525 | 686 |
Telephone Subsidiaries | 8.00% - 8.75% Debentures | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Maturity date range, start | 2,022 | |
Maturity date range, end | 2,031 | |
Notes payable and other | $ 328 | 780 |
Telephone Subsidiaries | 5.13% - 6.50% Debentures | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Maturity date range, start | 2,028 | |
Maturity date range, end | 2,033 | |
Notes payable and other | $ 319 | 575 |
Telephone Subsidiaries | 7.38% - 7.88% Debentures | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Maturity date range, start | 2,022 | |
Maturity date range, end | 2,032 | |
Notes payable and other | $ 561 | 1,099 |
Other Subsidiaries | 6.84% - 8.75% Notes Payable, Debentures and Other | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Maturity date range, start | 2,018 | |
Maturity date range, end | 2,028 | |
Notes payable and other | $ 1,102 | $ 1,500 |
Verizon Wireless and Other Subsidiaries | 1.42% - 2.36% Asset Backed Debt | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Maturity date | 2,021 | |
Asset-backed debt, carrying value | $ 2,485 | |
Verizon Wireless and Other Subsidiaries | Floating Asset-backed Debt | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Maturity date | 2,021 | |
Asset-backed debt, carrying value | $ 2,520 | |
Minimum | Verizon Communications | 0.50% - 3.85% Notes Payable And Other | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Interest Rate | 0.50% | |
Minimum | Verizon Communications | 4.11% - 5.50% Notes Payable And Other | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Interest Rate | 4.11% | |
Minimum | Verizon Communications | 5.85% - 6.90% Notes Payable and Other | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Interest Rate | 5.85% | |
Minimum | Verizon Communications | 7.35% - 8.95% Notes Payable and Other | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Interest Rate | 7.35% | |
Minimum | Verizon Wireless | 6.80% - 7.88% Alltel assumed notes | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Interest Rate | 6.80% | |
Minimum | Telephone Subsidiaries | 8.00% - 8.75% Debentures | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Interest Rate | 8.00% | |
Minimum | Telephone Subsidiaries | 5.13% - 6.50% Debentures | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Interest Rate | 5.13% | |
Minimum | Telephone Subsidiaries | 7.38% - 7.88% Debentures | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Interest Rate | 7.38% | |
Minimum | Other Subsidiaries | 6.84% - 8.75% Notes Payable, Debentures and Other | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Interest Rate | 6.84% | |
Minimum | Verizon Wireless and Other Subsidiaries | 1.42% - 2.36% Asset Backed Debt | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Interest Rate | 1.42% | |
Maximum | Verizon Communications | 0.50% - 3.85% Notes Payable And Other | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Interest Rate | 3.85% | |
Maximum | Verizon Communications | 4.11% - 5.50% Notes Payable And Other | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Interest Rate | 5.50% | |
Maximum | Verizon Communications | 5.85% - 6.90% Notes Payable and Other | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Interest Rate | 6.90% | |
Maximum | Verizon Communications | 7.35% - 8.95% Notes Payable and Other | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Interest Rate | 8.95% | |
Maximum | Verizon Wireless | 6.80% - 7.88% Alltel assumed notes | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Interest Rate | 7.88% | |
Maximum | Telephone Subsidiaries | 8.00% - 8.75% Debentures | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Interest Rate | 8.75% | |
Maximum | Telephone Subsidiaries | 5.13% - 6.50% Debentures | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Interest Rate | 6.50% | |
Maximum | Telephone Subsidiaries | 7.38% - 7.88% Debentures | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Interest Rate | 7.88% | |
Maximum | Other Subsidiaries | 6.84% - 8.75% Notes Payable, Debentures and Other | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Interest Rate | 8.75% | |
Maximum | Verizon Wireless and Other Subsidiaries | 1.42% - 2.36% Asset Backed Debt | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Interest Rate | 2.36% |
Outstanding Long-Term Debt Ob61
Outstanding Long-Term Debt Obligations (Parenthetical) (Detail) | Dec. 31, 2016 | Dec. 31, 2015 |
Capital Lease Obligations | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Capital lease obligations average rate | 3.50% | 3.40% |
Tender Offer to Purchase for Ca
Tender Offer to Purchase for Cash any and all of the Group 1 Any and All Notes (Detail) $ in Millions | Apr. 04, 2016USD ($) | |
Verizon Communications Inc | 2.50% Notes due 2016 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.50% | |
Debt instrument maturity date | 2,016 | |
Principal Amount Outstanding | $ 2,182 | |
Purchase Price | 1,007.60 | [1] |
Principal Amount Purchased | $ 1,272 | |
Verizon Communications Inc | 2.0% Notes due 2016 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.00% | |
Debt instrument maturity date | 2,016 | |
Principal Amount Outstanding | $ 1,250 | |
Purchase Price | 1,007.20 | [1] |
Principal Amount Purchased | $ 731 | |
Verizon Communications Inc | 6.35% Notes due 2019 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.35% | |
Debt instrument maturity date | 2,019 | |
Principal Amount Outstanding | $ 1,750 | |
Purchase Price | 1,133.32 | [1] |
Principal Amount Purchased | $ 970 | |
Tender Offer to Purchase for Cash Any and All of the Group 1 Any and All Notes | ||
Debt Instrument [Line Items] | ||
Principal Amount Purchased | $ 2,973 | |
[1] | Per $1,000 principal amount of notes tendered and not withdrawn prior to early expiration |
Tender Offer to Purchase for 63
Tender Offer to Purchase for Cash Any and All of the Group 2 Any and All Notes (Detail) $ in Millions | Apr. 04, 2016USD ($) | |
Verizon Delaware LLC | 8.375% Debentures due 2019 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 8.375% | |
Debt instrument maturity date | 2,019 | |
Principal Amount Outstanding | $ 15 | |
Purchase Price | 1,182.11 | [1] |
Principal Amount Purchased | $ 15 | |
Verizon Delaware LLC | 8.625% Debentures due 2031 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 8.625% | |
Debt instrument maturity date | 2,031 | |
Principal Amount Outstanding | $ 15 | |
Purchase Price | 1,365.39 | [1] |
Principal Amount Purchased | $ 5 | |
Verizon Maryland LLC | 8.00% Debentures due 2029 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 8.00% | |
Debt instrument maturity date | 2,029 | |
Principal Amount Outstanding | $ 50 | |
Purchase Price | 1,301.32 | [1] |
Principal Amount Purchased | $ 22 | |
Verizon Maryland LLC | 8.30% Debentures due 2031 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 8.30% | |
Debt instrument maturity date | 2,031 | |
Principal Amount Outstanding | $ 100 | |
Purchase Price | 1,347.26 | [1] |
Principal Amount Purchased | $ 76 | |
Verizon Maryland LLC | 5.125% Debentures due 2033 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.125% | |
Debt instrument maturity date | 2,033 | |
Principal Amount Outstanding | $ 350 | |
Purchase Price | 1,012.50 | [1] |
Principal Amount Purchased | $ 171 | |
Verizon New England Inc | 7.875% Debentures due 2029 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 7.875% | |
Debt instrument maturity date | 2,029 | |
Principal Amount Outstanding | $ 349 | |
Purchase Price | 1,261.63 | [1] |
Principal Amount Purchased | $ 176 | |
Verizon New Jersey Inc | 8.00% Debentures due 2022 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 8.00% | |
Debt instrument maturity date | 2,022 | |
Principal Amount Outstanding | $ 200 | |
Purchase Price | 1,238.65 | [1] |
Principal Amount Purchased | $ 54 | |
Verizon New Jersey Inc | 7.85% Debentures due 2029 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 7.85% | |
Debt instrument maturity date | 2,029 | |
Principal Amount Outstanding | $ 149 | |
Purchase Price | 1,311.32 | [1] |
Principal Amount Purchased | $ 63 | |
Verizon New York Inc | 6.50% Debentures due 2028 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.50% | |
Debt instrument maturity date | 2,028 | |
Principal Amount Outstanding | $ 100 | |
Purchase Price | 1,151.71 | [1] |
Principal Amount Purchased | $ 28 | |
Verizon New York Inc | 7.375% Debentures due 2032 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 7.375% | |
Debt instrument maturity date | 2,032 | |
Principal Amount Outstanding | $ 500 | |
Purchase Price | 1,201.92 | [1] |
Principal Amount Purchased | $ 256 | |
Verizon Pennsylvania LLC | 6.00% Debentures due 2028 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.00% | |
Debt instrument maturity date | 2,028 | |
Principal Amount Outstanding | $ 125 | |
Purchase Price | 1,110.47 | [1] |
Principal Amount Purchased | $ 57 | |
Verizon Pennsylvania LLC | 8.35% Debentures due 2030 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 8.35% | |
Debt instrument maturity date | 2,030 | |
Principal Amount Outstanding | $ 175 | |
Purchase Price | 1,324.10 | [1] |
Principal Amount Purchased | $ 127 | |
Verizon Pennsylvania LLC | 8.75% Debentures due 2031 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 8.75% | |
Debt instrument maturity date | 2,031 | |
Principal Amount Outstanding | $ 125 | |
Purchase Price | 1,356.47 | [1] |
Principal Amount Purchased | $ 72 | |
Verizon Virginia LLC | 7.875% Debentures due 2022 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 7.875% | |
Debt instrument maturity date | 2,022 | |
Principal Amount Outstanding | $ 100 | |
Purchase Price | 1,227.79 | [1] |
Principal Amount Purchased | $ 43 | |
Verizon Virginia LLC | 8.375% Debentures due 2029 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 8.375% | |
Debt instrument maturity date | 2,029 | |
Principal Amount Outstanding | $ 100 | |
Purchase Price | 1,319.78 | [1] |
Principal Amount Purchased | $ 81 | |
Tender Offer to Purchase for Cash Any and All of the Group 2 Any and All Notes | ||
Debt Instrument [Line Items] | ||
Principal Amount Purchased | $ 1,246 | |
[1] | Per $1,000 principal amount of notes tendered and not withdrawn prior to early expiration |
Tender Offer to Purchase for 64
Tender Offer to Purchase for Cash Group 3 Notes (Detail) $ in Millions | Apr. 04, 2016USD ($) | |
Verizon Communications Inc | 8.95% Notes due 2039 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 8.95% | |
Debt instrument maturity date | 2,039 | |
Principal Amount Outstanding | $ 353 | |
Purchase Price | 1,506.50 | [1] |
Principal Amount Purchased | $ 63 | |
Verizon Communications Inc | 7.75% Notes due 2032 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 7.75% | |
Debt instrument maturity date | 2,032 | |
Principal Amount Outstanding | $ 251 | |
Purchase Price | 1,315.19 | [1] |
Principal Amount Purchased | $ 33 | |
Verizon Communications Inc | 7.35% Notes due 2039 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 7.35% | |
Debt instrument maturity date | 2,039 | |
Principal Amount Outstanding | $ 480 | |
Purchase Price | 1,293.50 | [1] |
Principal Amount Purchased | $ 68 | |
Verizon Communications Inc | 7.75% Notes due 2030 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 7.75% | |
Debt instrument maturity date | 2,030 | |
Principal Amount Outstanding | $ 1,206 | |
Purchase Price | 1,377.92 | [1] |
Principal Amount Purchased | $ 276 | |
Verizon Communications Inc | 6.55% Notes due 2043 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.55% | |
Debt instrument maturity date | 2,043 | |
Principal Amount Outstanding | $ 6,585 | |
Purchase Price | 1,291.74 | [1] |
Principal Amount Purchased | $ 2,340 | |
Verizon Communications Inc | 6.40% Notes due 2033 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.40% | |
Debt instrument maturity date | 2,033 | |
Principal Amount Outstanding | $ 2,196 | |
Purchase Price | 1,220.28 | [1] |
Principal Amount Purchased | $ 466 | |
Verizon Communications Inc | 6.90% Notes due 2038 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.90% | |
Debt instrument maturity date | 2,038 | |
Principal Amount Outstanding | $ 477 | |
Purchase Price | 1,243.29 | [1] |
Principal Amount Purchased | $ 92 | |
Verizon Communications Inc | 6.25% Notes due 2037 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.25% | |
Debt instrument maturity date | 2,037 | |
Principal Amount Outstanding | $ 750 | |
Purchase Price | 1,167.66 | [1] |
Principal Amount Purchased | $ 114 | |
Verizon Communications Inc | 6.40% Notes due 2038 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.40% | |
Debt instrument maturity date | 2,038 | |
Principal Amount Outstanding | $ 866 | |
Purchase Price | 1,176.52 | [1] |
Principal Amount Purchased | $ 116 | |
Verizon Communications Inc | 5.85% Notes due 2035 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.85% | |
Debt instrument maturity date | 2,035 | |
Principal Amount Outstanding | $ 1,500 | |
Purchase Price | 1,144.68 | [1] |
Principal Amount Purchased | $ 250 | |
Verizon Communications Inc | 6.00% Notes due 2041 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.00% | |
Debt instrument maturity date | 2,041 | |
Principal Amount Outstanding | $ 1,000 | |
Purchase Price | 1,164.56 | [1] |
Verizon Communications Inc | 5.15% Notes Due 2023 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.15% | |
Debt instrument maturity date | 2,023 | |
Principal Amount Outstanding | $ 8,517 | |
Purchase Price | 1,152.83 | [1] |
Alltel Corporation | 7.875% Debentures due 2032 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 7.875% | |
Debt instrument maturity date | 2,032 | |
Principal Amount Outstanding | $ 452 | |
Purchase Price | 1,322.92 | [1] |
Principal Amount Purchased | $ 115 | |
Alltel Corporation | 6.80% Debentures Due 2029 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.80% | |
Debt instrument maturity date | 2,029 | |
Principal Amount Outstanding | $ 235 | |
Purchase Price | 1,252.93 | [1] |
Principal Amount Purchased | $ 47 | |
GTE Corporation | 6.94% Debentures due 2028 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.94% | |
Debt instrument maturity date | 2,028 | |
Principal Amount Outstanding | $ 800 | |
Purchase Price | 1,261.35 | [1] |
Principal Amount Purchased | $ 237 | |
GTE Corporation | 8.75% Debentures due 2021 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 8.75% | |
Debt instrument maturity date | 2,021 | |
Principal Amount Outstanding | $ 300 | |
Purchase Price | 1,307.34 | [1] |
Principal Amount Purchased | $ 93 | |
Tender Offer to Purchase for Cash Waterfall Series of Notes | ||
Debt Instrument [Line Items] | ||
Principal Amount Purchased | $ 4,310 | |
[1] | Per $1,000 principal amount of notes |
Schedule of Notes Included in E
Schedule of Notes Included in Exchange Offer (Detail) $ in Millions | Mar. 31, 2015USD ($) |
Old Notes in Exchange for 2036 New Notes | Verizon Communications | 5.15% Notes Due 2023 | |
Debt Instrument [Line Items] | |
Interest Rate | 5.15% |
Debt instrument maturity date | 2,023 |
Principal Amount Outstanding | $ 11,000 |
Principal Amount Accepted for Exchange | 2,483 |
Old Notes in Exchange for 2048 New Notes | |
Debt Instrument [Line Items] | |
Principal Amount Accepted for Exchange | $ 3,816 |
Old Notes in Exchange for 2048 New Notes | Verizon Communications | 6.90% Notes due 2038 | |
Debt Instrument [Line Items] | |
Interest Rate | 6.90% |
Debt instrument maturity date | 2,038 |
Principal Amount Outstanding | $ 1,250 |
Principal Amount Accepted for Exchange | $ 773 |
Old Notes in Exchange for 2048 New Notes | Verizon Communications | 6.40% Notes due 2038 | |
Debt Instrument [Line Items] | |
Interest Rate | 6.40% |
Debt instrument maturity date | 2,038 |
Principal Amount Outstanding | $ 1,750 |
Principal Amount Accepted for Exchange | $ 884 |
Old Notes in Exchange for 2048 New Notes | Verizon Communications | 6.40% Notes due 2033 | |
Debt Instrument [Line Items] | |
Interest Rate | 6.40% |
Debt instrument maturity date | 2,033 |
Principal Amount Outstanding | $ 4,355 |
Principal Amount Accepted for Exchange | $ 2,159 |
Old Notes in Exchange for 2048 New Notes | Verizon Communications | 6.25% Notes due 2037 | |
Debt Instrument [Line Items] | |
Interest Rate | 6.25% |
Debt instrument maturity date | 2,037 |
Principal Amount Outstanding | $ 750 |
Old Notes in Exchange for 2048 New Notes | GTE Corporation | 6.94% Notes due 2028 | |
Debt Instrument [Line Items] | |
Interest Rate | 6.94% |
Debt instrument maturity date | 2,028 |
Principal Amount Outstanding | $ 800 |
Old Notes in Exchange for 2055 New Notes | Verizon Communications | 6.55% Notes due 2043 | |
Debt Instrument [Line Items] | |
Interest Rate | 6.55% |
Debt instrument maturity date | 2,043 |
Principal Amount Outstanding | $ 10,670 |
Principal Amount Accepted for Exchange | $ 4,084 |
Schedule of Assets and Liabilit
Schedule of Assets and Liabilities Related to Asset-backed Debt Arrangements (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Accounts Receivable, net | |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |
Assets | $ 3,383 |
Prepaid Expenses and Other | |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |
Assets | 236 |
Other Assets | |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |
Assets | 2,383 |
Accounts Payable and Accrued Liabilities | |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |
Liabilities | 4 |
Long-term Debt | |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |
Liabilities | $ 4,988 |
Maturities of Long-term Debt ex
Maturities of Long-term Debt excluding Unamortized Debt Issuance Costs (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Long Term Debt Maturities Repayments Of Principal [Line Items] | |
2,017 | $ 2,477 |
2,018 | 7,229 |
2,019 | 5,548 |
2,020 | 9,040 |
2,021 | 12,097 |
Thereafter | $ 71,988 |
Device Payment Plan Receivables
Device Payment Plan Receivables, Net (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Device payment plan agreement receivables, gross | $ 11,797 | $ 3,720 |
Unamortized imputed interest | (511) | (142) |
Device payment plan agreement receivables, net of unamortized imputed interest | 11,286 | 3,578 |
Allowance for credit losses | (688) | (444) |
Device payment plan agreement receivables, net | 10,598 | 3,134 |
Accounts Receivable, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Device payment plan agreement receivables, net | 6,140 | 1,979 |
Other Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Device payment plan agreement receivables, net | $ 4,458 | $ 1,155 |
Wireless Device Payment Plans -
Wireless Device Payment Plans - Additional Information (Detail) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables transferred to ABS Entities | $ 5.7 | |
Number of customer tenure days | 210 days | |
Receivables derecognized under receivable securitization program | $ 4.3 | |
Total portfolio of device payment plan agreement receivables | 16.1 | |
Deferred purchase price receivable collected | 1.1 | |
Finance receivables collected and remitted, net of fees | 7.1 | |
Cash proceeds received, net of remittances | 3 | |
Credit losses on receivables sold | 0.2 | |
Maximum exposure to loss related to involvement with sellers | 1.6 | |
Revolving Program | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Device payment plan agreement receivables sold, net | 3.3 | $ 3.3 |
Cash proceeds received from new transfers | 2 | 2.7 |
Cash proceeds received from reinvested collections | 0.9 | |
Deferred purchase price recorded | 0.4 | 0.6 |
Non-Revolving Program | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Device payment plan agreement receivables sold, net | 6.1 | |
Cash proceeds received from new transfers | 4.5 | |
Deferred purchase price recorded | 1.7 | |
Other Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Deferred purchase price receivable | 0.4 | $ 2.2 |
Prepaid Expenses and Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Deferred purchase price receivable | $ 1.2 |
Balance and Aging of Device Pay
Balance and Aging of Device Payment Plan Agreement Receivables on Gross Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Device payment plan agreement receivables, gross | $ 11,797 | $ 3,720 |
Unbilled | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Device payment plan agreement receivables, current | 11,089 | 3,420 |
Billed | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Device payment plan agreement receivables, current | 557 | 227 |
Device payment plan agreement receivables, past due | $ 151 | $ 73 |
Activity in Allowance for Credi
Activity in Allowance for Credit Losses for Device Payment Plan Agreement Receivables (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Balance at January 1, 2016 | $ 444 |
Bad debt expense | 692 |
Write-offs | (479) |
Allowance related to receivables sold | 28 |
Other | 3 |
Balance at December 31, 2016 | $ 688 |
Schedule of Assets and Liabil72
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets measured on a recurring basis | $ 825 | $ 1,670 | |
Fair value of liabilities measured on a recurring basis | 2,039 | 1,681 | |
Short-term Investments | Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets measured on a recurring basis | 265 | ||
Short-term Investments | Fixed Income Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets measured on a recurring basis | 85 | ||
Other current assets | Fixed Income Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets measured on a recurring basis | 250 | ||
Other Assets | Interest Rate Caps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets measured on a recurring basis | 10 | ||
Other Assets | Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets measured on a recurring basis | 123 | ||
Other Assets | Fixed Income Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets measured on a recurring basis | 576 | 928 | |
Other Assets | Interest Rate Swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets measured on a recurring basis | 71 | 128 | |
Other Assets | Net Investment Hedges | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets measured on a recurring basis | 13 | ||
Other Assets | Cross Currency Swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets measured on a recurring basis | 45 | 1 | |
Other Liabilities | Interest Rate Swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of liabilities measured on a recurring basis | 236 | 19 | |
Other Liabilities | Cross Currency Swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of liabilities measured on a recurring basis | 1,803 | 1,638 | |
Other Liabilities | Forward Interest Rate Swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of liabilities measured on a recurring basis | 24 | ||
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets measured on a recurring basis | [1] | 133 | 515 |
Level 1 | Short-term Investments | Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets measured on a recurring basis | [1] | 265 | |
Level 1 | Other current assets | Fixed Income Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets measured on a recurring basis | [1] | 250 | |
Level 1 | Other Assets | Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets measured on a recurring basis | [1] | 123 | |
Level 1 | Other Assets | Fixed Income Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets measured on a recurring basis | [1] | 10 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets measured on a recurring basis | [2] | 692 | 1,155 |
Fair value of liabilities measured on a recurring basis | [2] | 2,039 | 1,681 |
Level 2 | Short-term Investments | Fixed Income Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets measured on a recurring basis | [2] | 85 | |
Level 2 | Other Assets | Interest Rate Caps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets measured on a recurring basis | [2] | 10 | |
Level 2 | Other Assets | Fixed Income Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets measured on a recurring basis | [2] | 566 | 928 |
Level 2 | Other Assets | Interest Rate Swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets measured on a recurring basis | [2] | 71 | 128 |
Level 2 | Other Assets | Net Investment Hedges | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets measured on a recurring basis | [2] | 13 | |
Level 2 | Other Assets | Cross Currency Swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets measured on a recurring basis | [2] | 45 | 1 |
Level 2 | Other Liabilities | Interest Rate Swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of liabilities measured on a recurring basis | [2] | 236 | 19 |
Level 2 | Other Liabilities | Cross Currency Swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of liabilities measured on a recurring basis | [2] | $ 1,803 | 1,638 |
Level 2 | Other Liabilities | Forward Interest Rate Swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of liabilities measured on a recurring basis | [2] | $ 24 | |
[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 |
Fair Value of Short Term and Lo
Fair Value of Short Term and Long Term Debt Excluding Capital Leases (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Estimate of Fair Value Measurement | Excluding Capital Leases | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short- and long-term debt | $ 117,584 | $ 118,216 |
Carrying Amount, Fair Value Disclosure | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short- and long-term debt | $ 107,128 | $ 108,772 |
Fair Value Measurements and F74
Fair Value Measurements and Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | ||
Derivative liability fair value of collateral | $ 200 | $ 100 |
New Net Investment Hedges | Foreign Currency Forward Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 900 | |
New Net Investment Hedges | Euro Denominated Debt | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 800 | |
Settled Net Investment Hedges | Foreign Currency Forward Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 900 | |
New Interest Rate Swaps | Fair Value Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 6,300 | 5,800 |
Settled Interest Rate Swaps | Fair Value Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 900 | |
Cross Currency Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 12,890 | 9,675 |
Pre-tax loss recognized in other comprehensive income (loss) | (100) | (1,200) |
Settled Forward Interest Rate Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 2,000 | 2,000 |
New Forward Interest Rate Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 1,300 | 800 |
Forward Interest Rate Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 750 | |
Pre-tax loss recognized in other comprehensive income (loss) | (200) | (100) |
Settled Cross Currency Swaps | Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 100 | $ 600 |
New Cross Currency Swaps | Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 3,300 | |
Interest Rate Caps | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 2,540 |
Notional Amounts of Outstanding
Notional Amounts of Outstanding Derivative Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Net Investment Hedges | ||
Derivative [Line Items] | ||
Notional amount | $ 864 | |
Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 13,099 | 7,620 |
Forward Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional amount | 750 | |
Cross Currency Swaps | ||
Derivative [Line Items] | ||
Notional amount | 12,890 | $ 9,675 |
Interest Rate Caps | ||
Derivative [Line Items] | ||
Notional amount | $ 2,540 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Billions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares available for awards under the Long-Term Incentive Plan | 119,600,000 | |||
Share-based compensation | $ 0.4 | $ 0.3 | $ 0.3 | |
Restricted Stock Units and Performance Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense related to the unvested portion of RSUs and PSUs | $ 0.3 | |||
Weighted-average period of unrecognized compensation expense related to the unvested portion of RSUs and PSUs (in years) | 2 years | |||
Payments made to settle compensation classified as liability awards | $ 0.4 | $ 0.4 | $ 0.6 | |
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant date fair value per unit | $ 51.86 | $ 48.15 |
Restricted and Performance Stoc
Restricted and Performance Stock Unit Activity (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning Balance | 13,903 | 15,007 | 16,193 |
Granted | 4,409 | 4,958 | 5,278 |
Payments | (4,890) | (5,911) | (6,202) |
Cancelled/Forfeited | (114) | (151) | (262) |
Ending Balance | 13,308 | 13,903 | 15,007 |
Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning Balance | 17,203 | 19,966 | 23,724 |
Granted | 6,391 | 7,044 | 7,359 |
Payments | (4,702) | (6,732) | (9,153) |
Cancelled/Forfeited | (1,143) | (3,075) | (1,964) |
Adjustments | 170 | ||
Ending Balance | 17,919 | 17,203 | 19,966 |
Change In Benefit Obligations C
Change In Benefit Obligations Change In Plan Assets Funded Status Amounts Recognized On Balance Sheet And Amounts Recognized In Accumulated Other Comprehensive Loss Pretax (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial (gain) loss, net | $ 1,900 | $ 2,500 | ||
Noncurrent liabilities | (26,166) | (26,166) | $ (29,957) | |
Pension | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning of year | 22,016 | 25,320 | ||
Service cost | 322 | 374 | $ 327 | |
Interest cost | 677 | 969 | 1,035 | |
Plan amendments | 428 | |||
Actuarial (gain) loss, net | 1,017 | (1,361) | ||
Benefits paid | (938) | (971) | ||
Curtailment and termination benefits | 4 | 11 | ||
Settlements paid | (1,270) | (2,315) | ||
Divestiture (Note 2) | (1,144) | |||
End of year | 21,112 | 21,112 | 22,016 | 25,320 |
Beginning of year | 16,124 | 18,548 | ||
Actual return on plan assets | 882 | 118 | ||
Company contributions | 837 | 744 | ||
Benefits paid | (938) | (971) | ||
Settlements paid | (1,270) | (2,315) | ||
Divestiture (Note 2) | (972) | |||
End of year | 14,663 | 14,663 | 16,124 | 18,548 |
End of year | (6,449) | (6,449) | (5,892) | |
Noncurrent assets | 2 | 2 | 349 | |
Current liabilities | (88) | (88) | (93) | |
Noncurrent liabilities | (6,363) | (6,363) | (6,148) | |
Total | (6,449) | (6,449) | (5,892) | |
Prior Service Cost (Benefit) | 443 | (51) | ||
Total | 443 | 443 | (51) | |
Health Care And Life | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning of year | 24,223 | 27,097 | ||
Service cost | 193 | 324 | 258 | |
Interest cost | 746 | 1,117 | 1,107 | |
Plan amendments | (5,142) | (45) | ||
Actuarial (gain) loss, net | 1,289 | (2,733) | ||
Benefits paid | (1,349) | (1,370) | ||
Divestiture (Note 2) | (310) | (167) | ||
End of year | 19,650 | 19,650 | 24,223 | 27,097 |
Beginning of year | 1,760 | 2,435 | ||
Actual return on plan assets | 35 | 28 | ||
Company contributions | 917 | 667 | ||
Benefits paid | (1,349) | (1,370) | ||
End of year | 1,363 | 1,363 | 1,760 | $ 2,435 |
End of year | (18,287) | (18,287) | (22,463) | |
Current liabilities | (639) | (639) | (695) | |
Noncurrent liabilities | (17,648) | (17,648) | (21,768) | |
Total | (18,287) | (18,287) | (22,463) | |
Prior Service Cost (Benefit) | (6,072) | (2,038) | ||
Total | $ (6,072) | $ (6,072) | $ (2,038) |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) shares in Millions, $ in Millions | Aug. 31, 2016USD ($)plan | May 31, 2016USD ($)plan | Apr. 01, 2016USD ($)plan | Mar. 31, 2016USD ($)plan | Dec. 31, 2016USD ($)shares | Dec. 31, 2016USD ($)planshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Accumulated benefit obligation for all defined benefit pension plans | $ 21,100 | $ 21,100 | $ 22,000 | ||||||
Defined benefits postretirement plans amortized from accumulated other comprehensive income | $ (900) | ||||||||
Discount Rate | 4.20% | 4.20% | 4.60% | 4.20% | 5.00% | ||||
Defined benefit plan, period used to determine overall expected long term rate of return on assets assumption (in years) | 10 | ||||||||
Number of allocated shares of common stock in ESOP | shares | 55 | 55 | |||||||
Total savings plan cost | $ 700 | $ 900 | $ 900 | ||||||
Severance, Pension and Benefit (Credits) Charges | 2,923 | (2,256) | 7,507 | ||||||
Pension and other postretirement benefit remeasurement (credits) charges | $ 1,900 | 2,500 | |||||||
Severance costs | 400 | 600 | 500 | ||||||
Lower negotiated prescription drug pricing | 500 | 500 | |||||||
Change method used to estimate interest component of net periodic benefit cost for pension and other Postretirement benefits | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Reduction of interest cost | 400 | ||||||||
Minimum | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Pension and other postretirement benefit obligations | 300 | 300 | |||||||
Access Line Sale with Frontier | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Derecognition of net assets, defined benefit pension and other postretirement benefit plan obligations | $ 700 | 700 | |||||||
Access Line Sale with Frontier | Selling, general and administrative expense | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Curtailment gain | 500 | ||||||||
Curtailment gain, net of tax | 300 | ||||||||
Contractual Healthcare Caps and Bargain | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Change in defined benefit and postretirement plans, due to change in prior service credit, net of taxes | 2,900 | ||||||||
Change in defined benefit and postretirement plans, due to change in prior service credit, tax | 1,800 | ||||||||
Increase in pre-tax income | 400 | ||||||||
Reclassification to net periodic cost | $ (400) | $ (400) | |||||||
Return Seeking Assets | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Target allocation percentage of assets | 65.00% | ||||||||
Liability Hedging Assets | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Target allocation percentage of assets | 35.00% | ||||||||
Credits Primarily Driven By Increase In Discount Rate Assumption | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Severance, Pension and Benefit (Credits) Charges | (2,500) | ||||||||
Credits Due to Execution of New Prescription Drug Contract | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Severance, Pension and Benefit (Credits) Charges | (1,000) | ||||||||
(Credits) Charges Primarily Driven By Use of Updated Actuarial Tables | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Severance, Pension and Benefit (Credits) Charges | $ (500) | (900) | 1,800 | ||||||
(Credits) Charges Due To Difference Between Estimated Return On Assets And Actual Return On Assets | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Severance, Pension and Benefit (Credits) Charges | $ 200 | $ 1,200 | $ (600) | ||||||
Expected return on plan assets | 7.00% | 7.25% | 7.25% | ||||||
Actual return on assets | 6.00% | 0.70% | 10.50% | ||||||
(Credits) Charges Primarily Driven By Other Assumption Adjustments | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Severance, Pension and Benefit (Credits) Charges | $ 300 | $ 300 | |||||||
Charges Primarily Driven By Decrease In Discount Rate Assumption | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Severance, Pension and Benefit (Credits) Charges | 2,100 | $ 5,200 | |||||||
Health Care And Life | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Reclassification | $ 310 | $ 167 | |||||||
Discount Rate | 4.20% | 4.20% | 4.60% | ||||||
Pension and other postretirement benefit obligations | $ 19,650 | $ 19,650 | $ 24,223 | $ 27,097 | |||||
Defined benefit plan contributions by employer | 917 | 667 | |||||||
Pension and other postretirement benefit remeasurement (credits) charges | $ 1,289 | $ (2,733) | |||||||
Expected return on plan assets | 3.80% | 4.80% | 5.50% | ||||||
Pension | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Reclassification | $ 1,144 | ||||||||
Discount Rate | 4.30% | 4.30% | 4.60% | ||||||
Pension and other postretirement benefit obligations | $ 21,112 | $ 21,112 | $ 22,016 | $ 25,320 | |||||
Defined benefit plan contributions by employer | 837 | 744 | |||||||
Pension and other postretirement benefit remeasurement (credits) charges | $ 1,017 | $ (1,361) | |||||||
Expected return on plan assets | 7.00% | 7.25% | 7.25% | ||||||
Pension | Access Line Sale with Frontier | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Number of defined benefit plans from which elimination of accrual of pension benefits for some or all future services of a significant number of employees covered occurred | plan | 3 | ||||||||
Pension | Contractual Healthcare Caps and Bargain | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Average remaining service period of defined benefit pension plans | 12 years 2 months 12 days | ||||||||
(Reduction) Increase in benefit obligation | 400 | $ 400 | |||||||
Pension | Lump Sum Distributions | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Pension and other postretirement benefit remeasurement (credits) charges | $ 600 | $ 100 | $ 200 | ||||||
Number of defined benefit pension plans | plan | 5 | 3 | 1 | ||||||
Other Postretirement Benefit Plan | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined benefit plan contributions by employer | 1,100 | ||||||||
Defined benefit plan contributions by employer in next fiscal year | $ 800 | ||||||||
Other Postretirement Benefit Plan | Access Line Sale with Frontier | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Number of defined benefit plans from which elimination of accrual of pension benefits for some or all future services of a significant number of employees covered occurred | plan | 1 | ||||||||
Other Postretirement Benefit Plan | Contractual Healthcare Caps and Bargain | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Average remaining service period of defined benefit pension plans | 7 years 9 months 18 days | ||||||||
(Reduction) Increase in benefit obligation | $ (5,100) | $ (5,100) | |||||||
Number of other postretirement benefit plans | plan | 3 | ||||||||
Qualified pension plans | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined benefit plan contributions by employer | 800 | ||||||||
Defined benefit plan discretionary contributions by employer | 200 | ||||||||
Defined benefit plan contributions by employer in next fiscal year | 600 | ||||||||
Non Qualified Pension Plan | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined benefit plan contributions by employer | 100 | ||||||||
Defined benefit plan contributions by employer in next fiscal year | 100 | ||||||||
Charges Primarily Driven by Updated Health Care Trend Cost Assumptions | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Severance, Pension and Benefit (Credits) Charges | $ 900 | ||||||||
Pension and Benefit Plans | Contractual Healthcare Caps and Bargain | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Pension and other postretirement benefit remeasurement (credits) charges | $ 2,700 | ||||||||
Number of defined benefit pension plans | plan | 2 | ||||||||
Pension and Benefit Plans | Defined Benefit Plan Curtailments | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Pension and other postretirement benefit remeasurement (credits) charges | $ 800 | ||||||||
Number of defined benefit pension plans | plan | 3 | ||||||||
Number of other postretirement benefit plans | plan | 1 |
Information for Pension Plans w
Information for Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 21,048 | $ 21,694 |
Accumulated benefit obligation | 20,990 | 21,636 |
Fair value of plan assets | $ 14,596 | $ 15,452 |
Benefit or Income Cost Related
Benefit or Income Cost Related to Pension and Postretirement Health Care and Life Insurance Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 322 | $ 374 | $ 327 |
Amortization of prior service cost (credit) | 21 | (5) | (8) |
Expected return on plan assets | (1,045) | (1,270) | (1,181) |
Interest cost | 677 | 969 | 1,035 |
Remeasurement (gain) loss, net | 1,198 | (209) | 2,380 |
Net periodic benefit (income) cost | 1,173 | (141) | 2,553 |
Curtailment and termination benefits | 4 | 11 | |
Total | 1,177 | (141) | 2,564 |
Health Care And Life | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 193 | 324 | 258 |
Amortization of prior service cost (credit) | (657) | (287) | (253) |
Expected return on plan assets | (54) | (101) | (161) |
Interest cost | 746 | 1,117 | 1,107 |
Remeasurement (gain) loss, net | 1,300 | (2,659) | 4,615 |
Net periodic benefit (income) cost | 1,528 | (1,606) | 5,566 |
Total | $ 1,528 | $ (1,606) | $ 5,566 |
Other Pretax Changes in Plan As
Other Pretax Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost (benefit) | $ 428 | |
Reversal of amortization items Prior service cost (benefit) | (21) | $ 5 |
Amounts reclassified to net income | 87 | |
Total recognized in other comprehensive (income) loss (pre-tax) | 494 | 5 |
Health Care And Life | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost (benefit) | (5,142) | (45) |
Reversal of amortization items Prior service cost (benefit) | 657 | 287 |
Amounts reclassified to net income | 451 | |
Total recognized in other comprehensive (income) loss (pre-tax) | $ (4,034) | $ 242 |
Weighted Average Assumptions Us
Weighted Average Assumptions Used In Determining Benefit Obligations (Detail) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount Rate | 4.20% | 4.60% | 4.20% | 5.00% |
Pension | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount Rate | 4.30% | 4.60% | ||
Rate of compensation increases | 3.00% | 3.00% | ||
Health Care And Life | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount Rate | 4.20% | 4.60% |
Weighted Average Assumptions 84
Weighted Average Assumptions Used In Determining Net Periodic Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate in effect for determining service cost | 4.50% | 4.20% | 5.00% |
Discount rate in effect for determining interest cost | 3.20% | 4.20% | 5.00% |
Expected return on plan assets | 7.00% | 7.25% | 7.25% |
Rate of compensation increases | 3.00% | 3.00% | 3.00% |
Health Care And Life | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate in effect for determining service cost | 4.50% | 4.20% | 5.00% |
Discount rate in effect for determining interest cost | 3.40% | 4.20% | 5.00% |
Expected return on plan assets | 3.80% | 4.80% | 5.50% |
Health Care Cost Trend Rates (D
Health Care Cost Trend Rates (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Healthcare cost trend rate assumed for next year | 6.50% | 6.00% | 6.50% |
Rate to which cost trend rate gradually declines | 4.50% | 4.50% | 4.75% |
Year the rate reaches the level it is assumed to remain thereafter | 2,025 | 2,024 | 2,022 |
Effects of One Percentage Point
Effects of One Percentage Point Change In Assumed Health Care Cost Trend Rates (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Effect on 2016 service and interest cost, Increase | $ 100 |
Effect on 2016 service and interest cost, Decrease | (81) |
Effect on postretirement benefit obligation as of December 31, 2016, Increase | 609 |
Effect on postretirement benefit obligation as of December 31, 2016, Decrease | $ (616) |
Fair Values for Plans by Asset
Fair Values for Plans by Asset Category (Detail) - Pension - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | $ 9,255 | $ 9,627 | |
Investments measured at NAV | 5,408 | 6,497 | |
Total Investments at fair value | 14,663 | 16,124 | $ 18,548 |
Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 1,228 | 1,387 | |
Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 1,883 | 2,237 | |
US Treasuries and agencies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 1,251 | 1,265 | |
Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 2,375 | 2,350 | |
International Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 713 | 710 | |
Other Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 2 | ||
Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 655 | 873 | |
Private Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 624 | 609 | |
Hedge Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 526 | 194 | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 4,154 | 4,718 | |
Total Investments at fair value | 4,154 | 4,718 | |
Level 1 | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 1,219 | 1,375 | |
Level 1 | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 1,883 | 2,234 | |
Level 1 | US Treasuries and agencies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 880 | 884 | |
Level 1 | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 152 | 192 | |
Level 1 | International Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 20 | 33 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 3,707 | 3,276 | |
Total Investments at fair value | 3,707 | 3,276 | |
Level 2 | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 9 | 12 | |
Level 2 | US Treasuries and agencies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 371 | 381 | |
Level 2 | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 2,126 | 2,030 | |
Level 2 | International Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 679 | 657 | |
Level 2 | Other Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 2 | ||
Level 2 | Hedge Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 522 | 194 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 1,394 | 1,633 | |
Total Investments at fair value | 1,394 | 1,633 | |
Level 3 | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 3 | ||
Level 3 | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 97 | 128 | |
Level 3 | International Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 14 | 20 | |
Level 3 | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 655 | 873 | |
Level 3 | Private Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | 624 | $ 609 | |
Level 3 | Hedge Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Investments at fair value | $ 4 |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Balance of Pension Plan Assets Measured at Fair Value (Detail) - Pension - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning Balance | $ 1,633 | $ 1,435 |
Actual gain (loss) on plan assets | 169 | 142 |
Purchases and sales | (408) | (61) |
Transfers in (out) | 117 | |
Ending Balance | 1,394 | 1,633 |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning Balance | 3 | 1 |
Actual gain (loss) on plan assets | (1) | |
Purchases and sales | (2) | |
Transfers in (out) | 2 | |
Ending Balance | 3 | |
Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning Balance | 128 | 100 |
Actual gain (loss) on plan assets | (9) | 6 |
Purchases and sales | (22) | 18 |
Transfers in (out) | 4 | |
Ending Balance | 97 | 128 |
International Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning Balance | 20 | 18 |
Actual gain (loss) on plan assets | (2) | (2) |
Purchases and sales | (4) | 5 |
Transfers in (out) | (1) | |
Ending Balance | 14 | 20 |
Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning Balance | 873 | 692 |
Actual gain (loss) on plan assets | 169 | 93 |
Purchases and sales | (387) | (24) |
Transfers in (out) | 112 | |
Ending Balance | 655 | 873 |
Private Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning Balance | 609 | 624 |
Actual gain (loss) on plan assets | 12 | 45 |
Purchases and sales | 3 | (60) |
Ending Balance | 624 | $ 609 |
Hedge Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Purchases and sales | 4 | |
Ending Balance | $ 4 |
Fair Values For Other Postretir
Fair Values For Other Postretirement Benefit Plans By Asset Category (Detail) - Other Postretirement Benefit Plan - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments at fair value | $ 847 | $ 1,238 |
Investments measured at NAV | 516 | 522 |
Total Investments at fair value | 1,363 | 1,760 |
Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Investments at fair value | 131 | 162 |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Investments at fair value | 463 | 768 |
US Treasuries and agencies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Investments at fair value | 23 | 21 |
Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Investments at fair value | 170 | 208 |
International Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Investments at fair value | 60 | 79 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments at fair value | 661 | 923 |
Total Investments at fair value | 661 | 923 |
Level 1 | Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Investments at fair value | 1 | |
Level 1 | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Investments at fair value | 463 | 752 |
Level 1 | US Treasuries and agencies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Investments at fair value | 22 | 19 |
Level 1 | Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Investments at fair value | 145 | 133 |
Level 1 | International Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Investments at fair value | 30 | 19 |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments at fair value | 186 | 315 |
Total Investments at fair value | 186 | 315 |
Level 2 | Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Investments at fair value | 130 | 162 |
Level 2 | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Investments at fair value | 16 | |
Level 2 | US Treasuries and agencies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Investments at fair value | 1 | 2 |
Level 2 | Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Investments at fair value | 25 | 75 |
Level 2 | International Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Investments at fair value | $ 30 | $ 60 |
Expected Benefit Payments to Re
Expected Benefit Payments to Retirees (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 2,356 |
2,018 | 1,790 |
2,019 | 1,722 |
2,020 | 1,204 |
2,021 | 1,189 |
2022-2026 | 5,777 |
Health Care And Life | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 1,259 |
2,018 | 1,284 |
2,019 | 1,290 |
2,020 | 1,302 |
2,021 | 1,327 |
2022-2026 | $ 6,616 |
Recorded Severance Liability (D
Recorded Severance Liability (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning of Year | $ 800 | $ 875 | $ 757 |
Charged to Expense | 417 | 551 | 531 |
Payments | (583) | (619) | (406) |
Other | 22 | (7) | (7) |
End of Year | $ 656 | $ 800 | $ 875 |
Components of Income before (Pr
Components of Income before (Provision) benefit for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components Of Income Tax Expense Benefit [Line Items] | |||
Domestic | $ 20,047 | $ 27,639 | $ 12,992 |
Foreign | 939 | 601 | 2,278 |
Income Before Provision For Income Taxes | $ 20,986 | $ 28,240 | $ 15,270 |
Components of Provision (benefi
Components of Provision (benefit) for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Provision of Income Taxes [Line Items] | |||
Federal | $ 7,451 | $ 5,476 | $ 2,657 |
Foreign | 148 | 70 | 81 |
State and Local | 842 | 803 | 668 |
Total | 8,441 | 6,349 | 3,406 |
Federal | (933) | 3,377 | (51) |
Foreign | (2) | 9 | (9) |
State and Local | (128) | 130 | (32) |
Total | (1,063) | 3,516 | (92) |
Total income tax provision | $ 7,378 | $ 9,865 | $ 3,314 |
Schedule for Principal Reasons
Schedule for Principal Reasons for Difference in Effective and Statutory Tax Rates (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Rate Reconciliation [Line Items] | |||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
State and local income tax rate, net of federal tax benefits | 2.20% | 2.10% | 2.70% |
Affordable housing credit | (0.70%) | (0.50%) | (1.00%) |
Employee benefits including ESOP dividend | (0.50%) | (0.40%) | (0.70%) |
Noncontrolling interests | (0.60%) | (0.50%) | (5.00%) |
Non-deductible goodwill | 2.20% | ||
Other, net | (2.40%) | (0.80%) | (3.40%) |
Effective income tax rate | 35.20% | 34.90% | 21.70% |
Vodafone Omnitel N.V. | |||
Income Tax Rate Reconciliation [Line Items] | |||
Disposition of Omnitel Interest | (5.90%) |
Taxes - Additional Information
Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Taxes [Line Items] | |||
Effective income tax rate | 35.20% | 34.90% | 21.70% |
Provision for income taxes from goodwill | $ 527 | ||
Increase in income taxes paid | 3,200 | ||
Undistributed earnings of our foreign subsidiaries | 2,300 | ||
Net tax loss and credit carry forwards (tax effected) | 3,300 | ||
Net tax loss and credit carry forwards (tax effected), portion that will expire between 2017 and 2036 | 1,900 | ||
Operating loss carry forwards amount | 1,400 | ||
Decrease in valuation allowance | (900) | ||
Unrecognized tax benefits, that if recognized, would favorably affect the effective income tax rate | $ 1,500 | $ 1,200 | $ 1,300 |
Schedule of Cash Taxes Paid (De
Schedule of Cash Taxes Paid (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||
Income taxes, net of amounts refunded | $ 9,577 | $ 5,293 | $ 4,093 |
Employment taxes | 1,196 | 1,284 | 1,290 |
Property and other taxes | 1,796 | 1,868 | 1,797 |
Total | $ 12,569 | $ 8,445 | $ 7,180 |
Schedule of Deferred Taxes (Det
Schedule of Deferred Taxes (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Employee benefits | $ 10,453 | $ 12,220 |
Tax loss and credit carry forwards | 3,318 | 4,099 |
Other - assets | 2,632 | 2,504 |
Deferred Tax Assets, Gross, Total | 16,403 | 18,823 |
Valuation allowances | (2,473) | (3,414) |
Deferred tax assets | 13,930 | 15,409 |
Spectrum and other intangible amortization | 31,404 | 29,945 |
Depreciation | 22,848 | 24,725 |
Other - liabilities | 5,642 | 6,125 |
Deferred tax liabilities | 59,894 | 60,795 |
Net deferred tax liability | $ 45,964 | $ 45,386 |
Reconciliation of Beginning a98
Reconciliation of Beginning and Ending Balance of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Contingency [Line Items] | |||
Balance at January 1, | $ 1,635 | $ 1,823 | $ 2,130 |
Additions based on tax positions related to the current year | 338 | 194 | 80 |
Additions for tax positions of prior years | 188 | 330 | 627 |
Reductions for tax positions of prior years | (153) | (412) | (278) |
Settlements | (18) | (79) | (239) |
Lapses of statutes of limitations | (88) | (221) | (497) |
Balance at December 31, | $ 1,902 | $ 1,635 | $ 1,823 |
Schedule of After Tax (Expenses
Schedule of After Tax (Expenses) Benefits Related To Interest and Penalties in Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Contingency [Line Items] | |||
Income tax examination, penalties and interest expense | $ (25) | $ 43 | $ 92 |
After Tax Accrual for Payment o
After Tax Accrual for Payment of Interest and Penalties in Consolidated Balance Sheet (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Income Taxes [Line Items] | ||
Income tax examination, penalties and interest accrued | $ 142 | $ 125 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)Segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | Segment | 2 | ||||||||||
Segment reporting information, revenue | $ 32,340 | $ 30,937 | $ 30,532 | $ 32,171 | $ 34,254 | $ 33,158 | $ 32,224 | $ 31,984 | $ 125,980 | $ 131,620 | $ 127,079 |
Number of customers individually accounting for more than ten percent of total operating revenues | No single customer accounted for more than 10% of our total operating revenues during the years ended December 31, 2016, 2015 and 2014. | ||||||||||
Fios revenues | Wireline | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment reporting information, revenue | $ 11,200 | $ 10,700 | $ 9,800 |
Operating Financial Information
Operating Financial Information for Reportable Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | $ 32,340 | $ 30,937 | $ 30,532 | $ 32,171 | $ 34,254 | $ 33,158 | $ 32,224 | $ 31,984 | $ 125,980 | $ 131,620 | $ 127,079 |
Cost of services | 29,186 | 29,438 | 28,306 | ||||||||
Wireless cost of equipment | 22,238 | 23,119 | 21,625 | ||||||||
Selling, general and administrative expense | 31,569 | 29,986 | 41,016 | ||||||||
Depreciation and amortization expense | 15,928 | 16,017 | 16,533 | ||||||||
Total operating expenses | 98,921 | 98,560 | 107,480 | ||||||||
Operating Income | $ 8,023 | $ 6,540 | $ 4,554 | $ 7,942 | $ 9,744 | $ 7,535 | $ 7,821 | $ 7,960 | 27,059 | 33,060 | 19,599 |
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 120,531 | 123,774 | 120,439 | ||||||||
Cost of services | 26,607 | 26,619 | 26,613 | ||||||||
Wireless cost of equipment | 22,238 | 23,119 | 21,625 | ||||||||
Selling, general and administrative expense | 26,509 | 29,061 | 30,996 | ||||||||
Depreciation and amortization expense | 15,284 | 15,523 | 15,276 | ||||||||
Total operating expenses | 90,638 | 94,322 | 94,510 | ||||||||
Operating Income | 29,893 | 29,452 | 25,929 | ||||||||
Operating Segments | Wireless | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 89,186 | 91,680 | 87,646 | ||||||||
Cost of services | 7,988 | 7,803 | 7,200 | ||||||||
Wireless cost of equipment | 22,238 | 23,119 | 21,625 | ||||||||
Selling, general and administrative expense | 19,924 | 21,805 | 23,602 | ||||||||
Depreciation and amortization expense | 9,183 | 8,980 | 8,459 | ||||||||
Total operating expenses | 59,333 | 61,707 | 60,886 | ||||||||
Operating Income | 29,853 | 29,973 | 26,760 | ||||||||
Operating Segments | Wireline | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 31,345 | 32,094 | 32,793 | ||||||||
Cost of services | 18,619 | 18,816 | 19,413 | ||||||||
Selling, general and administrative expense | 6,585 | 7,256 | 7,394 | ||||||||
Depreciation and amortization expense | 6,101 | 6,543 | 6,817 | ||||||||
Total operating expenses | 31,305 | 32,615 | 33,624 | ||||||||
Operating Income | 40 | (521) | (831) | ||||||||
Operating Segments | Service Revenue | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 66,362 | 70,305 | 72,555 | ||||||||
Operating Segments | Service Revenue | Wireless | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 66,362 | 70,305 | 72,555 | ||||||||
Operating Segments | Equipment Revenue | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 17,511 | 16,924 | 10,957 | ||||||||
Operating Segments | Equipment Revenue | Wireless | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 17,511 | 16,924 | 10,957 | ||||||||
Operating Segments | Other External Operating Non-Service Revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 4,915 | 4,294 | 4,021 | ||||||||
Operating Segments | Other External Operating Non-Service Revenues | Wireless | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 4,915 | 4,294 | 4,021 | ||||||||
Operating Segments | Mass Markets Consumer Retail | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 12,751 | 12,696 | 12,168 | ||||||||
Operating Segments | Mass Markets Consumer Retail | Wireline | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 12,751 | 12,696 | 12,168 | ||||||||
Operating Segments | Mass Markets Small Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 1,651 | 1,744 | 1,829 | ||||||||
Operating Segments | Mass Markets Small Business | Wireline | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 1,651 | 1,744 | 1,829 | ||||||||
Operating Segments | Mass Markets | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 14,402 | 14,440 | 13,997 | ||||||||
Operating Segments | Mass Markets | Wireline | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 14,402 | 14,440 | 13,997 | ||||||||
Operating Segments | Global Enterprise | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 11,620 | 12,048 | 12,802 | ||||||||
Operating Segments | Global Enterprise | Wireline | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 11,620 | 12,048 | 12,802 | ||||||||
Operating Segments | Global Wholesale | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 4,052 | 4,301 | 4,520 | ||||||||
Operating Segments | Global Wholesale | Wireline | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 4,052 | 4,301 | 4,520 | ||||||||
Operating Segments | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 320 | 338 | 527 | ||||||||
Operating Segments | Other | Wireline | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 320 | 338 | 527 | ||||||||
Operating Segments | Intersegment Revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 1,349 | 1,124 | 1,060 | ||||||||
Operating Segments | Intersegment Revenues | Wireless | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 398 | 157 | 113 | ||||||||
Operating Segments | Intersegment Revenues | Wireline | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | $ 951 | $ 967 | $ 947 |
Reconciliation of Segment Asset
Reconciliation of Segment Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Assets | $ 244,180 | $ 244,175 | |
Plant, property and equipment, net | 84,751 | 83,541 | |
Capital expenditures | 17,059 | 17,775 | $ 17,191 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 278,024 | 263,710 | 236,962 |
Plant, property and equipment, net | 83,103 | 81,955 | 88,594 |
Capital expenditures | 15,744 | 16,774 | 16,265 |
Operating Segments | Wireless | |||
Segment Reporting Information [Line Items] | |||
Assets | 211,345 | 185,405 | 160,333 |
Plant, property and equipment, net | 42,898 | 40,911 | 38,276 |
Capital expenditures | 11,240 | 11,725 | 10,515 |
Operating Segments | Wireline | |||
Segment Reporting Information [Line Items] | |||
Assets | 66,679 | 78,305 | 76,629 |
Plant, property and equipment, net | 40,205 | 41,044 | 50,318 |
Capital expenditures | $ 4,504 | $ 5,049 | $ 5,750 |
Summary of Reconciliation of Se
Summary of Reconciliation of Segment Operating Revenues (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Segment reporting information, revenue | $ 32,340 | $ 30,937 | $ 30,532 | $ 32,171 | $ 34,254 | $ 33,158 | $ 32,224 | $ 31,984 | $ 125,980 | $ 131,620 | $ 127,079 |
Operating Segments | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Segment reporting information, revenue | 120,531 | 123,774 | 120,439 | ||||||||
Corporate and Other | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Segment reporting information, revenue | 5,663 | 3,738 | 2,106 | ||||||||
Revenue Generated By Assets Sold | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Segment reporting information, revenue | 1,280 | 5,280 | 5,625 | ||||||||
Eliminations | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Segment reporting information, revenue | $ (1,494) | $ (1,172) | $ (1,091) |
Reconciliation of Total Reporta
Reconciliation of Total Reportable Segments Operating Income to Consolidated Income before Provision for Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Severance, pension and benefit credits (charges) (Note 10) | $ (2,923) | $ 2,256 | $ (7,507) | ||||||||
Gain on spectrum license transactions (Note 2) | 142 | 254 | 707 | ||||||||
Other costs | (334) | ||||||||||
Operating Income | $ 8,023 | $ 6,540 | $ 4,554 | $ 7,942 | $ 9,744 | $ 7,535 | $ 7,821 | $ 7,960 | 27,059 | 33,060 | 19,599 |
Equity in (losses) earnings of unconsolidated businesses | (98) | (86) | 1,780 | ||||||||
Other income and (expense), net | (1,599) | 186 | (1,194) | ||||||||
Interest expense | (4,376) | (4,920) | (4,915) | ||||||||
Income Before Provision for Income Taxes | 20,986 | 28,240 | 15,270 | ||||||||
Access Line Sale with Frontier | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gain on access line sale (Note 2) | 1,007 | ||||||||||
Operating Income | 700 | 2,800 | 2,000 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Income | 29,893 | 29,452 | 25,929 | ||||||||
Corporate and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Income | (1,721) | (1,720) | (1,217) | ||||||||
Operating Income Generated By Assets Sold | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Income | $ 661 | $ 2,818 | $ 2,021 |
Summary of Reconciliation of Re
Summary of Reconciliation of Reportable Segment Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||
Assets | $ 244,180 | $ 244,175 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 278,024 | 263,710 | $ 236,962 |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Assets | 213,787 | 205,476 | |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Assets | $ (247,631) | $ (225,011) |
Changes in Balances of Accumula
Changes in Balances of Accumulated Other Comprehensive Income by Component (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity And Accumulated Other Comprehensive Income [Line Items] | |||
Balance at beginning of year | $ 17,842 | $ 13,676 | |
Balance at end of year | 24,032 | 17,842 | $ 13,676 |
Foreign currency translation adjustments | |||
Equity And Accumulated Other Comprehensive Income [Line Items] | |||
Balance at beginning of year | (554) | (346) | 853 |
Other comprehensive income (loss) | (159) | (208) | (288) |
Amounts reclassified to net income | (911) | ||
Net other comprehensive income (loss) | (159) | (208) | (1,199) |
Balance at end of year | (713) | (554) | (346) |
Unrealized gain (loss) on cash flow hedges | |||
Equity And Accumulated Other Comprehensive Income [Line Items] | |||
Balance at beginning of year | (278) | (84) | 113 |
Other comprehensive income (loss) | (225) | (1,063) | (89) |
Amounts reclassified to net income | 423 | 869 | (108) |
Net other comprehensive income (loss) | 198 | (194) | (197) |
Balance at end of year | (80) | (278) | (84) |
Unrealized gain (loss) on marketable securities | |||
Equity And Accumulated Other Comprehensive Income [Line Items] | |||
Balance at beginning of year | 101 | 112 | 117 |
Other comprehensive income (loss) | (13) | (5) | 14 |
Amounts reclassified to net income | (42) | (6) | (19) |
Net other comprehensive income (loss) | (55) | (11) | (5) |
Balance at end of year | 46 | 101 | 112 |
Defined benefit pension and postretirement plans | |||
Equity And Accumulated Other Comprehensive Income [Line Items] | |||
Balance at beginning of year | 1,281 | 1,429 | 1,275 |
Other comprehensive income (loss) | 2,881 | ||
Amounts reclassified to net income | (742) | (148) | 154 |
Net other comprehensive income (loss) | 2,139 | (148) | 154 |
Balance at end of year | 3,420 | 1,281 | 1,429 |
Accumulated Other Comprehensive Income | |||
Equity And Accumulated Other Comprehensive Income [Line Items] | |||
Balance at beginning of year | 550 | 1,111 | 2,358 |
Other comprehensive income (loss) | 2,484 | (1,276) | (363) |
Amounts reclassified to net income | (361) | 715 | (884) |
Net other comprehensive income (loss) | 2,123 | (561) | (1,247) |
Balance at end of year | $ 2,673 | $ 550 | $ 1,111 |
Income Statement Information (D
Income Statement Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||
Depreciation expense | $ 14,227 | $ 14,323 | $ 14,966 |
Interest costs on debt balances | 5,080 | 5,504 | 5,291 |
Capitalized interest costs | (704) | (584) | (376) |
Advertising expense | $ 2,744 | $ 2,749 | $ 2,526 |
Balance Sheet Information (Deta
Balance Sheet Information (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule Of Condensed Consolidating Balance Sheets [Line Items] | ||
Accounts payable | $ 7,084 | $ 5,700 |
Accrued expenses | 5,717 | 5,659 |
Accrued vacation, salaries and wages | 3,813 | 4,420 |
Interest payable | 1,463 | 1,529 |
Taxes payable | 1,516 | 2,054 |
Total accounts payable and accrued liabilities | 19,593 | 19,362 |
Advance billings and customer deposits | 2,914 | 2,969 |
Dividends payable | 2,375 | 2,323 |
Other | 2,789 | 3,446 |
Total other current liabilities | $ 8,078 | $ 8,738 |
Cash Flow Information (Detail)
Cash Flow Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Condensed Consolidating Statement Of Cash Flows [Line Items] | |||
Interest, net of amounts capitalized | $ 4,085 | $ 4,491 | $ 4,429 |
Changes in device payment plan agreement receivables - non-current | (3,303) | (23) | (1,010) |
Proceeds from Tower Monetization Transaction | 2,346 | ||
Other, net | (1,082) | (3,734) | (2,078) |
Other, net | $ (4,385) | $ (1,411) | $ (3,088) |
Additional Financial Informa111
Additional Financial Information - Additional Information (Detail) - USD ($) | Jun. 05, 2015 | Feb. 10, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Supplemental Cash Flow Information [Line Items] | ||||
Payment for repurchase of common stock | $ 5,134,000,000 | |||
Treasury stock aggregate value | $ 900,000,000 | |||
Common shares issued from Treasury stock | 3,500,000 | 22,600,000 | ||
2015 Accelerated Stock Repurchase | ||||
Supplemental Cash Flow Information [Line Items] | ||||
Number of shares repurchased | 15,400,000 | 86,200,000 | 101,600,000 | |
Payment for repurchase of common stock | $ 4,250,000,000 | |||
Accelerated Share Repurchase | 5,000,000,000 | |||
Up-front payment for repurchase of common stock | $ (5,000,000,000) | |||
Average repurchase price | $ 49.21 | |||
Share Buyback Program | ||||
Supplemental Cash Flow Information [Line Items] | ||||
Number of shares repurchased | 0 | 2,800,000 | ||
Payment for repurchase of common stock | $ 100,000,000 | |||
Share Buyback Program | Maximum | ||||
Supplemental Cash Flow Information [Line Items] | ||||
Number of shares authorized for repurchase | 97,200,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Billions | 12 Months Ended | ||
Dec. 31, 2016USD ($)LegalMatter | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Loss Contingencies [Line Items] | |||
Approximate number of federal district court actions alleged for patent infringement | LegalMatter | 35 | ||
Guarantee obligations, year term (in years) | 30 years | ||
Letters of credit | $ 0.4 | ||
Purchase commitments | 16.8 | ||
Purchase commitments due in 2017 | 6.9 | ||
Purchase commitments due in 2018 through 2019 | 6.4 | ||
Purchase commitments due in 2020 through 2021 | 1.3 | ||
Purchase commitments due after five year | 2.2 | ||
Purchases against commitments | $ 8.1 | $ 10.2 | $ 21 |
Schedule of Quarterly Financial
Schedule of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Operating Revenues | $ 32,340 | $ 30,937 | $ 30,532 | $ 32,171 | $ 34,254 | $ 33,158 | $ 32,224 | $ 31,984 | $ 125,980 | $ 131,620 | $ 127,079 | ||||||||
Operating Income | 8,023 | 6,540 | 4,554 | 7,942 | 9,744 | 7,535 | 7,821 | 7,960 | 27,059 | 33,060 | 19,599 | ||||||||
Net Income attributable to Verizon | $ 4,495 | [1] | $ 3,620 | [1] | $ 702 | [1] | $ 4,310 | [1] | $ 5,391 | [1] | $ 4,038 | [1] | $ 4,231 | [1] | $ 4,219 | [1] | $ 13,127 | $ 17,879 | $ 9,625 |
Earnings Per Share, Basic | $ 1.10 | [1] | $ 0.89 | [1] | $ 0.17 | [1] | $ 1.06 | [1] | $ 1.32 | [1] | $ 0.99 | [1] | $ 1.04 | [1] | $ 1.03 | [1] | $ 3.22 | $ 4.38 | $ 2.42 |
Earnings Per Share, Diluted | $ 1.10 | [1] | $ 0.89 | [1] | $ 0.17 | [1] | $ 1.06 | [1] | $ 1.32 | [1] | $ 0.99 | [1] | $ 1.04 | [1] | $ 1.02 | [1] | $ 3.21 | $ 4.37 | $ 2.42 |
Net Income | $ 4,600 | $ 3,747 | $ 831 | $ 4,430 | $ 5,513 | $ 4,171 | $ 4,353 | $ 4,338 | $ 13,608 | $ 18,375 | $ 11,956 | ||||||||
[1] | Net income attributable to Verizon per common share is computed independently for each quarter and the sum of the quarters may not equal the annual amount. |
Schedule of Quarterly Financ114
Schedule of Quarterly Financial Information (Parenthetical) (Detail) - USD ($) $ in Billions | 3 Months Ended | |||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | |
Severance, Pension, and Benefit Credit (Charges) | ||||||
Quarterly Financial Information [Line Items] | ||||||
After-tax credits (charges) included in consolidated results of operations | $ 1 | $ (0.5) | $ (2.2) | $ (0.1) | $ 1.6 | $ (0.2) |
Spectrum | ||||||
Quarterly Financial Information [Line Items] | ||||||
After-tax credits (charges) included in consolidated results of operations | $ 0.1 | $ 0.2 | ||||
Early Debt Redemption Costs | ||||||
Quarterly Financial Information [Line Items] | ||||||
After-tax credits (charges) included in consolidated results of operations | (1.1) | |||||
Gain on Access Line Sale | ||||||
Quarterly Financial Information [Line Items] | ||||||
After-tax credits (charges) included in consolidated results of operations | $ 0.1 |