(Mark one) | ||||||||
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||
For the transition period from to |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. | |||||||||||||||||
☒ | Accelerated filer | ☐ | |||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||||||||
Emerging growth company |
TABLE OF CONTENTS |
Item No. | Page | |||||||
Item 1. | ||||||||
Three and six months ended June 30, 2020 and 2019 | ||||||||
Three and six months ended June 30, 2020 and 2019 | ||||||||
At June 30, 2020 and December 31, 2019 | ||||||||
Six months ended June 30, 2020 and 2019 | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 6. | ||||||||
Part I - Financial Information |
Item 1. Financial Statements (Unaudited) |
Condensed Consolidated Statements of Income Verizon Communications Inc. and Subsidiaries |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(dollars in millions, except per share amounts) (unaudited) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Operating Revenues | |||||||||||||||||||||||
Service revenues and other | $ | $ | $ | $ | |||||||||||||||||||
Wireless equipment revenues | |||||||||||||||||||||||
Total Operating Revenues | |||||||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||
Cost of services (exclusive of items shown below) | |||||||||||||||||||||||
Cost of wireless equipment | |||||||||||||||||||||||
Selling, general and administrative expense | |||||||||||||||||||||||
Depreciation and amortization expense | |||||||||||||||||||||||
Total Operating Expenses | |||||||||||||||||||||||
Operating Income | |||||||||||||||||||||||
Equity in losses of unconsolidated businesses | ( | ( | ( | ( | |||||||||||||||||||
Other income (expense), net | ( | ( | ( | ||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Income Before Provision For Income Taxes | |||||||||||||||||||||||
Provision for income taxes | ( | ( | ( | ( | |||||||||||||||||||
Net Income | $ | $ | $ | $ | |||||||||||||||||||
Net income attributable to noncontrolling interests | $ | $ | $ | $ | |||||||||||||||||||
Net income attributable to Verizon | |||||||||||||||||||||||
Net Income | $ | $ | $ | $ | |||||||||||||||||||
Basic Earnings Per Common Share | |||||||||||||||||||||||
Net income attributable to Verizon | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average shares outstanding (in millions) | |||||||||||||||||||||||
Diluted Earnings Per Common Share | |||||||||||||||||||||||
Net income attributable to Verizon | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average shares outstanding (in millions) |
Condensed Consolidated Statements of Comprehensive Income Verizon Communications Inc. and Subsidiaries |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(dollars in millions) (unaudited) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net Income | $ | $ | $ | $ | |||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax (Expense) Benefit | |||||||||||||||||||||||
Foreign currency translation adjustments, net of tax of $ | ( | ( | ( | ||||||||||||||||||||
Unrealized gain (loss) on cash flow hedges, net of tax of $( | ( | ( | ( | ||||||||||||||||||||
Unrealized gain on marketable securities, net of tax of $( | |||||||||||||||||||||||
Defined benefit pension and postretirement plans, net of tax of $ | ( | ( | ( | ( | |||||||||||||||||||
Other comprehensive income (loss) attributable to Verizon | ( | ( | ( | ||||||||||||||||||||
Total Comprehensive Income | $ | $ | $ | $ | |||||||||||||||||||
Comprehensive income attributable to noncontrolling interests | $ | $ | $ | $ | |||||||||||||||||||
Comprehensive income attributable to Verizon | |||||||||||||||||||||||
Total Comprehensive Income | $ | $ | $ | $ |
Condensed Consolidated Balance Sheets Verizon Communications Inc. and Subsidiaries |
At June 30, | At December 31, | ||||||||||
(dollars in millions, except per share amounts) (unaudited) | 2020 | 2019 | |||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable | |||||||||||
Less Allowance for credit losses | |||||||||||
Less Allowance for doubtful accounts | |||||||||||
Accounts receivable, net (Note 1) | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment | |||||||||||
Less Accumulated depreciation | |||||||||||
Property, plant and equipment, net | |||||||||||
Investments in unconsolidated businesses | |||||||||||
Wireless licenses | |||||||||||
Goodwill | |||||||||||
Other intangible assets, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Equity | |||||||||||
Current liabilities | |||||||||||
Debt maturing within one year | $ | $ | |||||||||
Accounts payable and accrued liabilities | |||||||||||
Current operating lease liabilities | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Employee benefit obligations | |||||||||||
Deferred income taxes | |||||||||||
Non-current operating lease liabilities | |||||||||||
Other liabilities | |||||||||||
Total long-term liabilities | |||||||||||
Commitments and Contingencies (Note 11) | |||||||||||
Equity | |||||||||||
Series preferred stock ($ | |||||||||||
Common stock ($ | |||||||||||
Additional paid in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive income (loss) | ( | ||||||||||
Common stock in treasury, at cost ( | ( | ( | |||||||||
Deferred compensation – employee stock ownership plans and other | |||||||||||
Noncontrolling interests | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Condensed Consolidated Statements of Cash Flows Verizon Communications Inc. and Subsidiaries |
Six Months Ended | |||||||||||
June 30, | |||||||||||
(dollars in millions) (unaudited) | 2020 | 2019 | |||||||||
Cash Flows from Operating Activities | |||||||||||
Net Income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization expense | |||||||||||
Employee retirement benefits | ( | ( | |||||||||
Deferred income taxes | ( | ||||||||||
Provision for expected credit losses | |||||||||||
Equity in losses of unconsolidated businesses, net of dividends received | |||||||||||
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses | ( | ||||||||||
Discretionary employee benefits contributions | ( | ||||||||||
Other, net | |||||||||||
Net cash provided by operating activities | |||||||||||
Cash Flows from Investing Activities | |||||||||||
Capital expenditures (including capitalized software) | ( | ( | |||||||||
Acquisitions of businesses, net of cash acquired | ( | ( | |||||||||
Acquisitions of wireless licenses | ( | ( | |||||||||
Other, net | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash Flows from Financing Activities | |||||||||||
Proceeds from long-term borrowings | |||||||||||
Proceeds from asset-backed long-term borrowings | |||||||||||
Repayments of long-term borrowings and finance lease obligations | ( | ( | |||||||||
Repayments of asset-backed long-term borrowings | ( | ( | |||||||||
Dividends paid | ( | ( | |||||||||
Other, net | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash, beginning of period | |||||||||||
Cash, cash equivalents and restricted cash, end of period (Note 1) | $ | $ |
Notes to Condensed Consolidated Financial Statements (Unaudited) Verizon Communications Inc. and Subsidiaries |
Note 1. Basis of Presentation |
At June 30, | At December 31, | Increase / (Decrease) | |||||||||||||||
(dollars in millions) | 2020 | 2019 | |||||||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||||||||
Restricted cash: | |||||||||||||||||
Prepaid expenses and other | ( | ||||||||||||||||
Other assets | |||||||||||||||||
Cash, cash equivalents and restricted cash | $ | $ | $ |
Description | Date of Adoption | Effect on Financial Statements | ||||||||||||
ASU 2016-13, ASU 2018-19, ASU 2019-04, and ASU 2019-05, Financial Instruments - Credit Losses (Topic 326) | ||||||||||||||
In June 2016, the FASB issued Topic 326 which requires certain financial assets to be measured at amortized cost net of an allowance for estimated credit losses, such that the net receivable represents the present value of expected cash collection. In addition, 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. An entity applies the update through a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (January 1, 2020). A prospective transition approach is required for debt securities for which an other-than-temporary impairment has been recognized before the effective date. Early adoption of this standard is permitted. | 1/1/2020 | We adopted Topic 326 beginning on January 1, 2020 using the modified retrospective approach with a cumulative effect adjustment to opening retained earnings recorded at the beginning of the period of adoption. Therefore upon adoption, we recognized and measured estimated credit losses without revising comparative period information or disclosures. We recorded the pre-tax cumulative effect of $ | ||||||||||||
ASU 2020-04, Reference Rate Reform (Topic 848) | ||||||||||||||
Topic 848 provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. Topic 848 provides optional expedients and exceptions for applying U.S. GAAP to transactions affected by reference rate reform if certain criteria are met. | 3/12/2020 | Topic 848 was effective for the Company beginning on March 12, 2020, and we will apply the amendments prospectively through December 31, 2022. There was no impact to our condensed consolidated financial statements for the current period as a result of adopting this standard update. |
(dollars in millions) | At December 31, 2019 | Adjustments due to Topic 326 | At January 1, 2020 | ||||||||||||||
Allowance for credit losses | $ | $ | $ | ||||||||||||||
Allowance for doubtful accounts | ( | ||||||||||||||||
Other assets | ( | ||||||||||||||||
Deferred income taxes | ( | ||||||||||||||||
Retained earnings | ( |
Note 2. Revenues and Contract Costs |
At June 30, | At January 1, | At June 30, | At January 1, | ||||||||||||||||||||
(dollars in millions) | 2020 | 2020 | 2019 | 2019 | |||||||||||||||||||
Receivables(1) | $ | $ | $ | $ | |||||||||||||||||||
Device payment plan agreement receivables(2) |
At June 30, | At January 1, | At June 30, | At January 1, | ||||||||||||||||||||
(dollars in millions) | 2020 | 2020 | 2019 | 2019 | |||||||||||||||||||
Contract asset | $ | $ | $ | $ | |||||||||||||||||||
Contract liability (1) |
At June 30, | At December 31, | ||||||||||
(dollars in millions) | 2020 | 2019 | |||||||||
Assets | |||||||||||
Prepaid expenses and other | $ | $ | |||||||||
Other assets | |||||||||||
Total | $ | $ | |||||||||
Liabilities | |||||||||||
Other current liabilities | $ | $ | |||||||||
Other liabilities | |||||||||||
Total | $ | $ |
At June 30, | At December 31, | ||||||||||
(dollars in millions) | 2020 | 2019 | |||||||||
Assets | |||||||||||
Prepaid expenses and other | $ | $ | |||||||||
Other assets | |||||||||||
Total | $ | $ |
Note 3. Acquisitions and Divestitures |
Note 4. Wireless Licenses, Goodwill, and Other Intangible Assets |
At June 30, | At December 31, | |||||||
(dollars in millions) | 2020 | 2019 | ||||||
Wireless licenses | $ | $ |
(dollars in millions) | Consumer | Business | Other | Total | |||||||||||||||||||
Balance at January 1, 2020 (1) | $ | $ | $ | $ | |||||||||||||||||||
Acquisitions (Note 3) | |||||||||||||||||||||||
Reclassifications, adjustments and other | ( | ( | |||||||||||||||||||||
Balance at June 30, 2020 (1) | $ | $ | $ | $ |
At June 30, 2020 | At December 31, 2019 | ||||||||||||||||||||||||||||||||||
(dollars in millions) | Gross Amount | Accumulated Amortization | Net Amount | Gross Amount | Accumulated Amortization | Net Amount | |||||||||||||||||||||||||||||
Customer lists ( | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Non-network internal-use software ( | ( | ( | |||||||||||||||||||||||||||||||||
Other ( | ( | ( | |||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | $ | ( | $ |
Three Months Ended | Six Months Ended | ||||||||||
(dollars in millions) | June 30, | June 30, | |||||||||
2020 | $ | $ | |||||||||
2019 |
Years | (dollars in millions) | ||||
Remainder of 2020 | $ | ||||
2021 | |||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 |
Note 5. Debt |
(dollars in millions) | Principal Redeemed/ Repurchased/ Repaid | Amount Paid (1) | |||||||||
Three Months Ended March 31, 2020 | |||||||||||
Verizon | $ | $ | |||||||||
Three Months Ended March 31, 2020 total | $ | $ | |||||||||
Three Months Ended June 30, 2020 | |||||||||||
Verizon | $ | $ | |||||||||
Verizon floating rate (LIBOR + | |||||||||||
Verizon | |||||||||||
Verizon | |||||||||||
Open market repurchases of various Verizon notes | |||||||||||
Verizon | € | $ | |||||||||
Verizon | € | $ | |||||||||
Three Months Ended June 30, 2020 total | |||||||||||
Six Months Ended June 30, 2020 total | $ | ||||||||||
(amounts in millions) | Principal Amount Issued | Net Proceeds (1) | |||||||||
Three Months Ended March 31, 2020 | |||||||||||
Verizon | $ | $ | |||||||||
Verizon | |||||||||||
Verizon | |||||||||||
Verizon | |||||||||||
Three Months Ended March 31, 2020 total | $ | $ | |||||||||
Three Months Ended June 30, 2020 | |||||||||||
Verizon | C$ | $ | |||||||||
Verizon | C$ | $ | |||||||||
Verizon | € | $ | |||||||||
Verizon | € | $ | |||||||||
Three Months Ended June 30, 2020 total | |||||||||||
Six Months Ended June 30, 2020 total | $ | ||||||||||
(dollars in millions) | Interest Rates % | Expected Weighted-average Life to Maturity (in years) | Principal Amount Issued | |||||||||||
March 2020 | ||||||||||||||
A-1a Senior class notes | $ | |||||||||||||
A-1b Senior floating rate class notes | LIBOR + | (1) | ||||||||||||
B Junior class notes | ||||||||||||||
C Junior class notes | ||||||||||||||
Total | $ |
At June 30, | At December 31, | ||||||||||
(dollars in millions) | 2020 | 2019 | |||||||||
Assets | |||||||||||
Account receivable, net | $ | $ | |||||||||
Prepaid expenses and other | |||||||||||
Other assets | |||||||||||
Liabilities | |||||||||||
Accounts payable and accrued liabilities | |||||||||||
Short-term portion of long-term debt | |||||||||||
Long-term debt |
At June 30, 2020 | |||||||||||||||||||||||
(dollars in millions) | Maturities | Facility Capacity | Unused Capacity | Principal Amount Outstanding | |||||||||||||||||||
Verizon revolving credit facility (1) | 2022 | $ | $ | n/a | |||||||||||||||||||
Various export credit facilities (2) | 2022-2027 | $ | |||||||||||||||||||||
Total | $ | $ | $ |
Note 6. Device Payment Plan Agreement and Wireless Service Receivables |
At June 30, 2020 | |||||||||||||||||||||||
(dollars in millions) | Device payment plan agreement | Wireless service | Other receivables(1) | Total | |||||||||||||||||||
Accounts receivable(2) | $ | $ | $ | $ | |||||||||||||||||||
Less Allowance for credit losses | |||||||||||||||||||||||
Accounts receivable, net of allowance | $ | $ | $ | $ |
At June 30, | At December 31, | ||||||||||
(dollars in millions) | 2020 | 2019(1) | |||||||||
Device payment plan agreement receivables, gross | $ | $ | |||||||||
Unamortized imputed interest | ( | ( | |||||||||
Device payment plan agreement receivables, at amortized cost | |||||||||||
Allowance (2) | ( | ( | |||||||||
Device payment plan agreement receivables, net | $ | $ | |||||||||
Classified in our condensed consolidated balance sheets: | |||||||||||
Accounts receivable, net | $ | $ | |||||||||
Other assets | |||||||||||
Device payment plan agreement receivables, net | $ | $ |
Year of Origination | |||||||||||||||||||||||||||||
(dollars in millions) | 2020 | 2019 | 2018 | Prior to 2018 | Total | ||||||||||||||||||||||||
New customers | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Existing customers | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
(dollars in millions) | Device Payment Plan Agreement Receivables(1) | Wireless Service Plan Receivables | |||||||||
Balance at January 1, 2020 | $ | $ | |||||||||
Opening balance sheet adjustment related to Topic 326 adoption | |||||||||||
Adjusted opening balance, January 1, 2020 | |||||||||||
Current period provision for expected credit losses | |||||||||||
Write-offs charged against the allowance | ( | ( | |||||||||
Recoveries collected | |||||||||||
Balance at June 30, 2020 | $ | $ |
At June 30, | |||||
(dollars in millions) | 2020 | ||||
Unbilled | $ | ||||
Billed: | |||||
Current | |||||
Past due | |||||
Device payment plan agreement receivables, at amortized cost | $ |
Note 7. Fair Value Measurements |
(dollars in millions) | Level 1(1) | Level 2(2) | Level 3(3) | Total | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Prepaid expenses and other: | |||||||||||||||||||||||
Foreign exchange forwards | $ | $ | $ | $ | |||||||||||||||||||
Other assets: | |||||||||||||||||||||||
Fixed income securities | |||||||||||||||||||||||
Interest rate swaps | |||||||||||||||||||||||
Cross currency swaps | |||||||||||||||||||||||
Interest rate caps | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Other current liabilities: | |||||||||||||||||||||||
Forward starting interest rate swaps | $ | $ | $ | $ | |||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||
Interest rate swaps | |||||||||||||||||||||||
Cross currency swaps | |||||||||||||||||||||||
Forward starting interest rate swaps | |||||||||||||||||||||||
Interest rate caps | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
(dollars in millions) | Level 1(1) | Level 2(2) | Level 3(3) | Total | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||
Fixed income securities | $ | $ | $ | $ | |||||||||||||||||||
Interest rate swaps | |||||||||||||||||||||||
Cross currency swaps | |||||||||||||||||||||||
Foreign exchange forwards | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||
Interest rate swaps | $ | $ | $ | $ | |||||||||||||||||||
Cross currency swaps | |||||||||||||||||||||||
Forward starting interest rate swaps | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Fair Value | |||||||||||||||||||||||||||||
(dollars in millions) | Carrying Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
At December 31, 2019 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
At June 30, 2020 |
At June 30, | At December 31, | ||||||||||
(dollars in millions) | 2020 | 2019 | |||||||||
Interest rate swaps | $ | $ | |||||||||
Cross currency swaps | |||||||||||
Forward starting interest rate swaps | |||||||||||
Interest rate caps | |||||||||||
Foreign exchange forwards | |||||||||||
At June 30, | At December 31, | ||||||||||
(dollars in millions) | 2020 | 2019 | |||||||||
Carrying amount of hedged liabilities | $ | $ | |||||||||
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities |
Note 8. Employee Benefits |
(dollars in millions) | |||||||||||||||||||||||
Pension | Health Care and Life | ||||||||||||||||||||||
Three Months Ended June 30, | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Service cost - Cost of services | $ | $ | $ | $ | |||||||||||||||||||
Service cost - Selling, general and administrative expense | |||||||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Amortization of prior service cost (credit) | $ | $ | $ | ( | $ | ( | |||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Remeasurement loss, net | |||||||||||||||||||||||
Other components | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Total | $ | $ | ( | $ | ( | $ | ( |
(dollars in millions) | |||||||||||||||||||||||
Pension | Health Care and Life | ||||||||||||||||||||||
Six Months Ended June 30, | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Service cost - Cost of services | $ | $ | $ | $ | |||||||||||||||||||
Service cost - Selling, general and administrative expense | |||||||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Amortization of prior service cost (credit) | $ | $ | $ | ( | $ | ( | |||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Remeasurement loss (gain), net | ( | ||||||||||||||||||||||
Other components | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Total | $ | $ | ( | $ | ( | $ | ( |
Note 9. Equity and Accumulated Other Comprehensive Income |
(dollars in millions, except per share amounts, and shares in thousands) | ||||||||||||||||||||||||||
Three months ended June 30, | 2020 | 2019 | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||
Balance at beginning of period | $ | $ | ||||||||||||||||||||||||
Balance at end of period | ||||||||||||||||||||||||||
Additional Paid In Capital | ||||||||||||||||||||||||||
Balance at beginning of period | ||||||||||||||||||||||||||
Other | ( | |||||||||||||||||||||||||
Balance at end of period | ||||||||||||||||||||||||||
Retained Earnings | ||||||||||||||||||||||||||
Balance at beginning of period | ||||||||||||||||||||||||||
Net income attributable to Verizon | ||||||||||||||||||||||||||
Dividends declared ($ | ( | ( | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Balance at end of period | ||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||
Balance at beginning of period attributable to Verizon | ( | |||||||||||||||||||||||||
Foreign currency translation adjustments | ( | |||||||||||||||||||||||||
Unrealized gain (loss) on cash flow hedges | ( | |||||||||||||||||||||||||
Unrealized gain on marketable securities | ||||||||||||||||||||||||||
Defined benefit pension and postretirement plans | ( | ( | ||||||||||||||||||||||||
Other comprehensive income (loss) | ( | |||||||||||||||||||||||||
Balance at end of period attributable to Verizon | ( | |||||||||||||||||||||||||
Treasury Stock | ||||||||||||||||||||||||||
Balance at beginning of period | ( | ( | ( | ( | ||||||||||||||||||||||
Employee plans | ||||||||||||||||||||||||||
Balance at end of period | ( | ( | ( | ( | ||||||||||||||||||||||
Deferred Compensation-ESOPs and Other | ||||||||||||||||||||||||||
Balance at beginning of period | ||||||||||||||||||||||||||
Restricted stock equity grant | ||||||||||||||||||||||||||
Amortization | ( | ( | ||||||||||||||||||||||||
Balance at end of period | ||||||||||||||||||||||||||
Noncontrolling Interests | ||||||||||||||||||||||||||
Balance at beginning of period | ||||||||||||||||||||||||||
Total comprehensive income | ||||||||||||||||||||||||||
Distributions and other | ( | ( | ||||||||||||||||||||||||
Balance at end of period | ||||||||||||||||||||||||||
Total Equity | $ | $ |
(dollars in millions, except per share amounts, and shares in thousands) | ||||||||||||||||||||||||||
Six months ended June 30, | 2020 | 2019 | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||
Balance at beginning of year | $ | $ | ||||||||||||||||||||||||
Balance at end of period | ||||||||||||||||||||||||||
Additional Paid In Capital | ||||||||||||||||||||||||||
Balance at beginning of year | ||||||||||||||||||||||||||
Other | ( | ( | ||||||||||||||||||||||||
Balance at end of period | ||||||||||||||||||||||||||
Retained Earnings | ||||||||||||||||||||||||||
Balance at beginning of year | ||||||||||||||||||||||||||
Opening balance sheet adjustment | ( | (1) | (2) | |||||||||||||||||||||||
Adjusted opening balance | ||||||||||||||||||||||||||
Net income attributable to Verizon | ||||||||||||||||||||||||||
Dividends declared ($ | ( | ( | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Balance at end of period | ||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||
Balance at beginning of year attributable to Verizon | ||||||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ||||||||||||||||||||||||
Unrealized loss on cash flow hedges | ( | ( | ||||||||||||||||||||||||
Unrealized gain on marketable securities | ||||||||||||||||||||||||||
Defined benefit pension and postretirement plans | ( | ( | ||||||||||||||||||||||||
Other comprehensive loss | ( | ( | ||||||||||||||||||||||||
Balance at end of period attributable to Verizon | ( | |||||||||||||||||||||||||
Treasury Stock | ||||||||||||||||||||||||||
Balance at beginning of year | ( | ( | ( | ( | ||||||||||||||||||||||
Employee plans | ||||||||||||||||||||||||||
Shareholder plans | ||||||||||||||||||||||||||
Balance at end of period | ( | ( | ( | ( | ||||||||||||||||||||||
Deferred Compensation-ESOPs and Other | ||||||||||||||||||||||||||
Balance at beginning of year | ||||||||||||||||||||||||||
Restricted stock equity grant | ||||||||||||||||||||||||||
Amortization | ( | ( | ||||||||||||||||||||||||
Balance at end of period | ||||||||||||||||||||||||||
Noncontrolling Interests | ||||||||||||||||||||||||||
Balance at beginning of year | ||||||||||||||||||||||||||
Opening balance sheet adjustment | (2) | |||||||||||||||||||||||||
Adjusted opening balance | ||||||||||||||||||||||||||
Total comprehensive income | ||||||||||||||||||||||||||
Distributions and other | ( | ( | ||||||||||||||||||||||||
Balance at end of period | ||||||||||||||||||||||||||
Total Equity | $ | $ |
(dollars in millions) | Foreign currency translation adjustments | Unrealized loss on cash flow hedges | Unrealized gain on marketable securities | Defined benefit pension and postretirement plans | Total | ||||||||||||||||||||||||
Balance at January 1, 2020 | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||
Other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||||||||
Amounts reclassified to net income | ( | ( | |||||||||||||||||||||||||||
Net other comprehensive income (loss) | ( | ( | ( | ( | |||||||||||||||||||||||||
Balance at June 30, 2020 | $ | ( | $ | ( | $ | $ | $ | ( |
Note 10. Segment Information |
Segment | Description | |||||||
Verizon Consumer Group | Our Consumer segment provides consumer-focused wireless and wireline communications services and products. Our wireless services are provided across one of the most extensive wireless networks in the U.S. under the Verizon brand and through wholesale and other arrangements. Our wireline services are provided in nine states in the Mid-Atlantic and Northeastern U.S., as well as Washington D.C., over our 100% fiber-optic network by our Verizon Fios product portfolio and over a traditional copper-based network to customers who are not served by Fios. | |||||||
Verizon Business Group | Our Business segment provides wireless and wireline communications services and products, including data, video and conferencing services, corporate networking solutions, security and managed network services, local and long distance voice services and network access to deliver various IoT services and products. We provide these products and services to businesses, government customers and wireless and wireline carriers across the U.S. and select products and services to customers around the world. |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(dollars in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
External Operating Revenues | |||||||||||||||||||||||
Consumer | |||||||||||||||||||||||
Service | $ | $ | $ | $ | |||||||||||||||||||
Wireless equipment | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total Consumer | |||||||||||||||||||||||
Business | |||||||||||||||||||||||
Small and Medium Business | |||||||||||||||||||||||
Global Enterprise | |||||||||||||||||||||||
Public Sector and Other | |||||||||||||||||||||||
Wholesale | |||||||||||||||||||||||
Total Business | |||||||||||||||||||||||
Total reportable segments | $ | $ | $ | $ | |||||||||||||||||||
Intersegment Revenues | |||||||||||||||||||||||
Consumer | $ | $ | $ | $ | |||||||||||||||||||
Business | |||||||||||||||||||||||
Total reportable segments | $ | $ | $ | $ | |||||||||||||||||||
Total Operating Revenues | |||||||||||||||||||||||
Consumer | $ | $ | $ | $ | |||||||||||||||||||
Business(1) | |||||||||||||||||||||||
Total reportable segments | $ | $ | $ | $ | |||||||||||||||||||
Operating Income | |||||||||||||||||||||||
Consumer | $ | $ | $ | $ | |||||||||||||||||||
Business | |||||||||||||||||||||||
Total reportable segments | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(dollars in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Consumer | $ | $ | $ | $ | |||||||||||||||||||
Business | |||||||||||||||||||||||
Total Fios revenue | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(dollars in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Consumer | $ | $ | $ | $ | |||||||||||||||||||
Business | |||||||||||||||||||||||
Total Wireless service revenue | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(dollars in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Total reportable segment operating revenues | $ | $ | $ | $ | |||||||||||||||||||
Corporate and other | |||||||||||||||||||||||
Eliminations | ( | ( | ( | ( | |||||||||||||||||||
Total consolidated operating revenues | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(dollars in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Total reportable segment operating income | $ | $ | $ | $ | |||||||||||||||||||
Corporate and other | ( | ( | ( | ( | |||||||||||||||||||
Other components of net periodic benefit charges (Note 8) | ( | ( | ( | ( | |||||||||||||||||||
Loss on spectrum license transaction (Note 3) | ( | ||||||||||||||||||||||
Total consolidated operating income | |||||||||||||||||||||||
Equity in losses of unconsolidated businesses | ( | ( | ( | ( | |||||||||||||||||||
Other income (expense), net | ( | ( | ( | ||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Income Before Provision For Income Taxes | $ | $ | $ | $ |
Note 11. Commitments and Contingencies |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Overview |
Verizon Business Group | |||||||||||||||||||||||||||||
Verizon Consumer Group | Small and Medium Business | Global Enterprise | Public Sector and Other | ||||||||||||||||||||||||||
2Q 2020 | June 2020 | 2Q 2020 | June 2020 | 2Q 2020 | June 2020 | 2Q 2020 | June 2020 | ||||||||||||||||||||||
Wireless retail postpaid gross additions | (29) | % | (21) | % | (34) | % | (23) | % | (26) | % | (8) | % | 125 | % | 48 | % | |||||||||||||
Wireless retail postpaid phone churn | (21 bps) | (18 bps) | (5 bps) | 4 bps | 1 bps | 17 bps | (22 bps) | (4 bps) | |||||||||||||||||||||
Wireless retail postpaid upgrades | (9) | % | — | % | (26) | % | (4) | % | (35) | % | (23) | % | (32) | % | (27) | % | |||||||||||||
Wireless retail postpaid device activations | (17) | % | (9) | % | (31) | % | (15) | % | (30) | % | (14) | % | 39 | % | 8 | % | |||||||||||||
Fios internet gross additions | (35) | % | (13) | % | (49) | % | (4) | % | n/a | n/a | n/a | n/a |
Verizon Media Group | |||||
Monthly active users | 4 | % | |||
Yahoo Finance | 45 | % | |||
Yahoo News | 25 | % |
Cash and cash equivalents | $ | 7.9 | billion | ||
Unsecured debt | $ | 102.2 | billion |
Consolidated Results of Operations |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, | Increase/ | June 30, | Increase/ | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2020 | 2019 | (Decrease) | 2020 | 2019 | (Decrease) | |||||||||||||||||||||||||||||||||||||||||
Consumer | $ | 21,113 | $ | 21,995 | $ | (882) | (4.0) | % | $ | 42,878 | $ | 44,143 | $ | (1,265) | (2.9) | % | |||||||||||||||||||||||||||||||
Business | 7,482 | 7,768 | (286) | (3.7) | 15,163 | 15,487 | (324) | (2.1) | |||||||||||||||||||||||||||||||||||||||
Corporate and other | 1,967 | 2,412 | (445) | (18.4) | 4,239 | 4,747 | (508) | (10.7) | |||||||||||||||||||||||||||||||||||||||
Eliminations | (115) | (104) | (11) | 10.6 | (223) | (178) | (45) | 25.3 | |||||||||||||||||||||||||||||||||||||||
Consolidated Revenues | $ | 30,447 | $ | 32,071 | $ | (1,624) | (5.1) | $ | 62,057 | $ | 64,199 | $ | (2,142) | (3.3) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, | Increase/ | June 30, | Increase/ | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2020 | 2019 | (Decrease) | 2020 | 2019 | (Decrease) | |||||||||||||||||||||||||||||||||||||||||
Cost of services | $ | 7,639 | $ | 7,702 | $ | (63) | (0.8) | % | $ | 15,393 | $ | 15,494 | $ | (101) | (0.7) | % | |||||||||||||||||||||||||||||||
Cost of wireless equipment | 4,110 | 5,019 | (909) | (18.1) | 8,652 | 10,217 | (1,565) | (15.3) | |||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expense | 7,156 | 7,268 | (112) | (1.5) | 15,741 | 14,466 | 1,275 | 8.8 | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense | 4,181 | 4,232 | (51) | (1.2) | 8,331 | 8,463 | (132) | (1.6) | |||||||||||||||||||||||||||||||||||||||
Consolidated Operating Expenses | $ | 23,086 | $ | 24,221 | $ | (1,135) | (4.7) | $ | 48,117 | $ | 48,640 | $ | (523) | (1.1) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, | Increase/ | June 30, | Increase/ | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2020 | 2019 | (Decrease) | 2020 | 2019 | (Decrease) | |||||||||||||||||||||||||||||||||||||||||
Interest income | $ | 16 | $ | 31 | $ | (15) | (48.4) | % | $ | 36 | $ | 60 | $ | (24) | (40.0) | % | |||||||||||||||||||||||||||||||
Other components of net periodic benefit cost | 132 | 185 | (53) | (28.6) | 233 | 465 | (232) | (49.9) | |||||||||||||||||||||||||||||||||||||||
Other, net | (220) | (1,528) | 1,308 | (85.6) | (198) | (1,542) | 1,344 | (87.2) | |||||||||||||||||||||||||||||||||||||||
Total | $ | (72) | $ | (1,312) | $ | 1,240 | (94.5) | $ | 71 | $ | (1,017) | $ | 1,088 | nm |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, | Increase/ | June 30, | Increase/ | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2020 | 2019 | (Decrease) | 2020 | 2019 | (Decrease) | |||||||||||||||||||||||||||||||||||||||||
Total interest costs on debt balances | $ | 1,205 | $ | 1,377 | $ | (172) | (12.5) | % | $ | 2,392 | $ | 2,744 | $ | (352) | (12.8) | % | |||||||||||||||||||||||||||||||
Less capitalized interest costs | 116 | 162 | (46) | (28.4) | 269 | 319 | (50) | (15.7) | |||||||||||||||||||||||||||||||||||||||
Total | $ | 1,089 | $ | 1,215 | $ | (126) | (10.4) | $ | 2,123 | $ | 2,425 | $ | (302) | (12.5) | |||||||||||||||||||||||||||||||||
Average debt outstanding (1) (3) | $ | 117,239 | $ | 115,163 | $ | 114,950 | $ | 114,414 | |||||||||||||||||||||||||||||||||||||||
Effective interest rate (2) (3) | 4.1 | % | 4.8 | % | 4.2 | % | 4.8 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, | Increase/ | June 30, | Increase/ | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2020 | 2019 | (Decrease) | 2020 | 2019 | (Decrease) | |||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | $ | 1,348 | $ | 1,236 | $ | 112 | 9.1 | % | $ | 2,737 | $ | 2,864 | $ | (127) | (4.4) | % | |||||||||||||||||||||||||||||||
Effective income tax rate | 21.8 | % | 23.3 | % | 23.1 | % | 23.7 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(dollars in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Consolidated Net Income | $ | 4,839 | $ | 4,074 | $ | 9,126 | $ | 9,234 | |||||||||||||||
Add: | |||||||||||||||||||||||
Provision for income taxes | 1,348 | 1,236 | 2,737 | 2,864 | |||||||||||||||||||
Interest expense (1) | 1,089 | 1,215 | 2,123 | 2,425 | |||||||||||||||||||
Depreciation and amortization expense | 4,181 | 4,232 | 8,331 | 8,463 | |||||||||||||||||||
Consolidated EBITDA | $ | 11,457 | $ | 10,757 | $ | 22,317 | $ | 22,986 | |||||||||||||||
Add (Less): | |||||||||||||||||||||||
Other (income) expense, net (2) | $ | 72 | $ | 1,312 | $ | (71) | $ | 1,017 | |||||||||||||||
Equity in losses of unconsolidated businesses | 13 | 13 | 25 | 19 | |||||||||||||||||||
Loss on spectrum license auction | — | — | 1,195 | — | |||||||||||||||||||
Consolidated Adjusted EBITDA | $ | 11,542 | $ | 12,082 | $ | 23,466 | $ | 24,022 |
Segment Results of Operations |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, | Increase/ | June 30, | Increase/ | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions, except ARPA) | 2020 | 2019 | (Decrease) | 2020 | 2019 | (Decrease) | |||||||||||||||||||||||||||||||||||||||||
Service | $ | 15,900 | $ | 16,350 | $ | (450) | (2.8)% | $ | 32,241 | $ | 32,609 | $ | (368) | (1.1)% | |||||||||||||||||||||||||||||||||
Wireless equipment | 3,209 | 3,903 | (694) | (17.8) | 6,586 | 8,069 | (1,483) | (18.4) | |||||||||||||||||||||||||||||||||||||||
Other | 2,004 | 1,742 | 262 | 15.0 | 4,051 | 3,465 | 586 | 16.9 | |||||||||||||||||||||||||||||||||||||||
Total Operating Revenues | $ | 21,113 | $ | 21,995 | $ | (882) | (4.0) | $ | 42,878 | $ | 44,143 | $ | (1,265) | (2.9) | |||||||||||||||||||||||||||||||||
Connections (‘000):(1) | |||||||||||||||||||||||||||||||||||||||||||||||
Wireless retail connections | 93,975 | 93,896 | 79 | 0.1 | |||||||||||||||||||||||||||||||||||||||||||
Wireless retail postpaid connections | 89,977 | 89,630 | 347 | 0.4 | |||||||||||||||||||||||||||||||||||||||||||
Fios internet connections | 5,971 | 5,837 | 134 | 2.3 | |||||||||||||||||||||||||||||||||||||||||||
Fios video connections | 3,987 | 4,270 | (283) | (6.6) | |||||||||||||||||||||||||||||||||||||||||||
Broadband connections | 6,468 | 6,474 | (6) | (0.1) | |||||||||||||||||||||||||||||||||||||||||||
Voice connections | 5,444 | 6,058 | (614) | (10.1) | |||||||||||||||||||||||||||||||||||||||||||
Net Additions in Period (‘000):(2) | |||||||||||||||||||||||||||||||||||||||||||||||
Wireless retail | 84 | (87) | 171 | nm | (525) | (464) | (61) | (13.1) | |||||||||||||||||||||||||||||||||||||||
Wireless retail postpaid | 72 | 126 | (54) | (42.9) | (453) | (75) | (378) | nm | |||||||||||||||||||||||||||||||||||||||
Wireless retail postpaid phones | 97 | 73 | 24 | 32.9 | (210) | (90) | (120) | nm | |||||||||||||||||||||||||||||||||||||||
Churn Rate: | |||||||||||||||||||||||||||||||||||||||||||||||
Wireless retail | 0.86 | % | 1.23 | % | 1.03 | % | 1.28 | % | |||||||||||||||||||||||||||||||||||||||
Wireless retail postpaid | 0.69 | % | 0.97 | % | 0.85 | % | 1.03 | % | |||||||||||||||||||||||||||||||||||||||
Wireless retail postpaid phones | 0.51 | % | 0.72 | % | 0.64 | % | 0.76 | % | |||||||||||||||||||||||||||||||||||||||
Account Statistics: | |||||||||||||||||||||||||||||||||||||||||||||||
Wireless retail postpaid ARPA | $ | 116.02 | $ | 118.15 | $ | (2.13) | (1.8) | $ | 117.44 | $ | 117.80 | $ | (0.36) | (0.3) | |||||||||||||||||||||||||||||||||
Wireless retail postpaid accounts (‘000) (1) | 33,695 | 33,924 | (229) | (0.7) | |||||||||||||||||||||||||||||||||||||||||||
Wireless retail postpaid connections per account (1) | 2.67 | 2.64 | 0.03 | 1.1 | |||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, | Increase/ | June 30, | Increase/ | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2020 | 2019 | (Decrease) | 2020 | 2019 | (Decrease) | |||||||||||||||||||||||||||||||||||||||||
Cost of services | $ | 3,885 | $ | 3,847 | $ | 38 | 1.0 | % | $ | 7,815 | $ | 7,726 | $ | 89 | 1.2 | % | |||||||||||||||||||||||||||||||
Cost of wireless equipment | 3,299 | 3,909 | (610) | (15.6) | 6,750 | 8,051 | (1,301) | (16.2) | |||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expense | 4,016 | 4,022 | (6) | (0.1) | 8,298 | 8,005 | 293 | 3.7 | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense | 2,849 | 2,881 | (32) | (1.1) | 5,669 | 5,775 | (106) | (1.8) | |||||||||||||||||||||||||||||||||||||||
Total Operating Expenses | $ | 14,049 | $ | 14,659 | $ | (610) | (4.2) | $ | 28,532 | $ | 29,557 | $ | (1,025) | (3.5) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, | Increase/ | June 30, | Increase/ | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2020 | 2019 | (Decrease) | 2020 | 2019 | (Decrease) | |||||||||||||||||||||||||||||||||||||||||
Segment Operating Income | $ | 7,064 | $ | 7,336 | $ | (272) | (3.7) | % | $ | 14,346 | $ | 14,586 | $ | (240) | (1.6) | % | |||||||||||||||||||||||||||||||
Add Depreciation and amortization expense | 2,849 | 2,881 | (32) | (1.1) | 5,669 | 5,775 | (106) | (1.8) | |||||||||||||||||||||||||||||||||||||||
Segment EBITDA | $ | 9,913 | $ | 10,217 | $ | (304) | (3.0) | $ | 20,015 | $ | 20,361 | $ | (346) | (1.7) | |||||||||||||||||||||||||||||||||
Segment operating income margin | 33.5 | % | 33.4 | % | 33.5 | % | 33.0 | % | |||||||||||||||||||||||||||||||||||||||
Segment EBITDA margin | 47.0 | % | 46.5 | % | 46.7 | % | 46.1 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, | Increase/ | June 30, | Increase/ | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2020 | 2019 | (Decrease) | 2020 | 2019 | (Decrease) | |||||||||||||||||||||||||||||||||||||||||
Small and Medium Business | $ | 2,601 | $ | 2,785 | $ | (184) | (6.6) | % | $ | 5,405 | $ | 5,493 | $ | (88) | (1.6) | % | |||||||||||||||||||||||||||||||
Global Enterprise | 2,589 | 2,673 | (84) | (3.1) | 5,220 | 5,364 | (144) | (2.7) | |||||||||||||||||||||||||||||||||||||||
Public Sector and Other | 1,523 | 1,492 | 31 | 2.1 | 2,997 | 2,963 | 34 | 1.1 | |||||||||||||||||||||||||||||||||||||||
Wholesale | 769 | 818 | (49) | (6.0) | 1,541 | 1,667 | (126) | (7.6) | |||||||||||||||||||||||||||||||||||||||
Total Operating Revenues(1) | $ | 7,482 | $ | 7,768 | $ | (286) | (3.7) | $ | 15,163 | $ | 15,487 | $ | (324) | (2.1) | |||||||||||||||||||||||||||||||||
Connections (‘000):(2) | |||||||||||||||||||||||||||||||||||||||||||||||
Wireless retail postpaid connections | 25,897 | 24,144 | 1,753 | 7.3 | |||||||||||||||||||||||||||||||||||||||||||
Fios internet connections | 327 | 316 | 11 | 3.5 | |||||||||||||||||||||||||||||||||||||||||||
Fios video connections | 75 | 76 | (1) | (1.3) | |||||||||||||||||||||||||||||||||||||||||||
Broadband connections | 491 | 494 | (3) | (0.6) | |||||||||||||||||||||||||||||||||||||||||||
Voice connections | 4,758 | 5,163 | (405) | (7.8) | |||||||||||||||||||||||||||||||||||||||||||
Net Additions in Period (‘000):(3) | |||||||||||||||||||||||||||||||||||||||||||||||
Wireless retail postpaid | 280 | 326 | (46) | (14.1) | 755 | 590 | 165 | 28.0 | |||||||||||||||||||||||||||||||||||||||
Wireless retail postpaid phones | 76 | 171 | (95) | (55.6) | 315 | 291 | 24 | 8.2 | |||||||||||||||||||||||||||||||||||||||
Churn Rate: | |||||||||||||||||||||||||||||||||||||||||||||||
Wireless retail postpaid | 1.12 | % | 1.21 | % | 1.21 | % | 1.23 | % | |||||||||||||||||||||||||||||||||||||||
Wireless retail postpaid phones | 0.90 | % | 0.97 | % | 0.96 | % | 0.99 | % | |||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, | Increase/ | June 30, | Increase/ | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2020 | 2019 | (Decrease) | 2020 | 2019 | (Decrease) | |||||||||||||||||||||||||||||||||||||||||
Cost of services | $ | 2,641 | $ | 2,581 | $ | 60 | 2.3 | % | $ | 5,230 | $ | 5,172 | $ | 58 | 1.1 | % | |||||||||||||||||||||||||||||||
Cost of wireless equipment | 812 | 1,109 | (297) | (26.8) | 1,902 | 2,166 | (264) | (12.2) | |||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expense | 2,069 | 1,961 | 108 | 5.5 | 4,103 | 3,942 | 161 | 4.1 | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense | 1,014 | 1,046 | (32) | (3.1) | 2,028 | 2,088 | (60) | (2.9) | |||||||||||||||||||||||||||||||||||||||
Total Operating Expenses | $ | 6,536 | $ | 6,697 | $ | (161) | (2.4) | $ | 13,263 | $ | 13,368 | $ | (105) | (0.8) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, | Increase/ | June 30, | Increase/ | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2020 | 2019 | (Decrease) | 2020 | 2019 | (Decrease) | |||||||||||||||||||||||||||||||||||||||||
Segment Operating Income | $ | 946 | $ | 1,071 | $ | (125) | (11.7) | % | $ | 1,900 | $ | 2,119 | $ | (219) | (10.3) | % | |||||||||||||||||||||||||||||||
Add Depreciation and amortization expense | 1,014 | 1,046 | (32) | (3.1) | % | 2,028 | 2,088 | (60) | (2.9) | ||||||||||||||||||||||||||||||||||||||
Segment EBITDA | $ | 1,960 | $ | 2,117 | $ | (157) | (7.4) | $ | 3,928 | $ | 4,207 | $ | (279) | (6.6) | |||||||||||||||||||||||||||||||||
Segment operating income margin | 12.6 | % | 13.8 | % | 12.5 | % | 13.7 | % | |||||||||||||||||||||||||||||||||||||||
Segment EBITDA margin | 26.2 | % | 27.3 | % | 25.9 | % | 27.2 | % |
Special Items |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(dollars in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Severance, pension and benefits charges (credits) | |||||||||||||||||||||||
Other income (expense), net | $ | 153 | $ | — | $ | 335 | $ | (96) | |||||||||||||||
Early debt redemption costs | |||||||||||||||||||||||
Other income (expense), net | 129 | 1,544 | 129 | 1,544 | |||||||||||||||||||
Interest expense | (27) | — | (27) | — | |||||||||||||||||||
Loss on spectrum license auction | |||||||||||||||||||||||
Selling, general and administrative expense | — | — | 1,195 | — | |||||||||||||||||||
Total | $ | 255 | $ | 1,544 | $ | 1,632 | $ | 1,448 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(dollars in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Within Total Operating Expenses | $ | — | $ | — | $ | 1,195 | $ | — | |||||||||||||||
Within Other income (expense), net | 282 | 1,544 | 464 | 1,448 | |||||||||||||||||||
Within Interest expense | (27) | — | (27) | — | |||||||||||||||||||
Total | $ | 255 | $ | 1,544 | $ | 1,632 | $ | 1,448 |
Consolidated Financial Condition |
Six Months Ended | |||||||||||||||||
June 30, | |||||||||||||||||
(dollars in millions) | 2020 | 2019 | Change | ||||||||||||||
Cash Flows Provided By (Used In) | |||||||||||||||||
Operating activities | $ | 23,552 | $ | 15,836 | $ | 7,716 | |||||||||||
Investing activities | (12,124) | (8,589) | (3,535) | ||||||||||||||
Financing activities | (6,232) | (8,043) | 1,811 | ||||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | $ | 5,196 | $ | (796) | $ | 5,992 |
At June 30, 2020 | |||||||||||||||||||||||
(dollars in millions) | Maturities | Facility Capacity | Unused Capacity | Principal Amount Outstanding | |||||||||||||||||||
Verizon revolving credit facility (1) | 2022 | $ | 9,500 | $ | 9,392 | n/a | |||||||||||||||||
Various export credit facilities (2) | 2022-2027 | 7,000 | 1,500 | 4,206 | |||||||||||||||||||
Total | $ | 16,500 | $ | 10,892 | $ | 4,206 |
Six Months Ended | |||||||||||||||||
June 30, | |||||||||||||||||
(dollars in millions) | 2020 | 2019 | Change | ||||||||||||||
Net cash provided by operating activities | $ | 23,552 | $ | 15,836 | $ | 7,716 | |||||||||||
Less Capital expenditures (including capitalized software) | 9,850 | 7,967 | 1,883 | ||||||||||||||
Free cash flow | $ | 13,702 | $ | 7,869 | $ | 5,833 |
Market Risk |
Acquisitions and Divestitures |
Other Factors That May Affect Future Results |
Cautionary Statement Concerning Forward-Looking Statements |
Item 3. Quantitative and Qualitative Disclosures About Market Risk |
Item 4. Controls and Procedures |
Part II – Other Information |
Item 1. Legal Proceedings |
Item 1A. Risk Factors |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
Item 6. Exhibits |
Exhibit Number | Description | |||||||
4.1 | Fifth Supplemental Indenture between Verizon, both individually and as successor in interest to Verizon Global Funding Corp., and U.S. Bank National Association, as successor trustee to Wachovia Bank, National Association, formerly known as First Union National Bank, as Trustee, dated as of May 15, 2020 (incorporated by reference to Form 8-K filed on May 15, 2020, Exhibit 4.1). | |||||||
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||
31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||
32.1 | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||
32.2 | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||
101.INS | XBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document. | |||||||
101.PRE | XBRL Taxonomy Presentation Linkbase Document. | |||||||
101.CAL | XBRL Taxonomy Calculation Linkbase Document. | |||||||
101.LAB | XBRL Taxonomy Label Linkbase Document. | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101). |
Signature |
VERIZON COMMUNICATIONS INC. | ||||||||||||||
Date: July 28, 2020 | By | /s/ | Anthony T. Skiadas | |||||||||||
Anthony T. Skiadas | ||||||||||||||
Senior Vice President and Controller | ||||||||||||||
(Principal Accounting Officer) |
Exhibit Number | Description | |||||||
Fifth Supplemental Indenture between Verizon, both individually and as successor in interest to Verizon Global Funding Corp., and U.S. Bank National Association, as successor trustee to Wachovia Bank, National Association, formerly known as First Union National Bank, as Trustee, dated as of May 15, 2020 (incorporated by reference to Form 8-K filed on May 15, 2020, Exhibit 4.1). | ||||||||
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document. | |||||||
101.PRE | XBRL Taxonomy Presentation Linkbase Document. | |||||||
101.CAL | XBRL Taxonomy Calculation Linkbase Document. | |||||||
101.LAB | XBRL Taxonomy Label Linkbase Document. | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101). | |||||||
Date: July 28, 2020 | /s/ Hans E. Vestberg | ||||
Hans E. Vestberg | |||||
Chairman and Chief Executive Officer |
Date: July 28, 2020 | /s/ Matthew D. Ellis | ||||
Matthew D. Ellis | |||||
Executive Vice President and Chief Financial Officer |
Date: July 28, 2020 | /s/ Hans E. Vestberg | ||||
Hans E. Vestberg | |||||
Chairman and Chief Executive Officer |
Date: July 28, 2020 | /s/ Matthew D. Ellis | ||||
Matthew D. Ellis | |||||
Executive Vice President and Chief Financial Officer |
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$ in Millions3 Months Ended
6 Months Ended
Statement of Comprehensive Income [Abstract]
Net Income
$ 4,839
$ 4,074
$ 9,126
$ 9,234
Other Comprehensive Income (Loss), Net of Tax (Expense) Benefit
Foreign currency translation adjustments, net of tax of
77
(67)
(43)
(43)
Unrealized gain (loss) on cash flow hedges, net of tax of
314
(537)
(1,896)
(550)
Unrealized gain on marketable securities, net of tax of
6
4
5
8
Defined benefit pension and postretirement plans, net of tax of
(169)
(169)
(338)
(338)
Other comprehensive income (loss) attributable to Verizon
228
(769)
(2,272)
(923)
Total Comprehensive Income
5,067
3,305
6,854
8,311
Comprehensive income attributable to noncontrolling interests
139
130
270
258
Comprehensive income attributable to Verizon
4,928
3,175
6,584
8,053
Total Comprehensive Income
$ 5,067
$ 3,305
$ 6,854
$ 8,311
$ in Millions3 Months Ended
6 Months Ended
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, tax
$ 4
$ 3
$ 0
$ (2)
Unrealized gain (loss) on cash flow hedges, tax
(133)
193
659
198
Unrealized gain (loss) on marketable securities, tax
(2)
0
(1)
(2)
Defined benefit pension and postretirement plans, tax
$ 55
$ 56
$ 111
$ 112
Statement of Financial Position [Abstract]
Series preferred stock, par value (USD per share)
$ 0.10
$ 0.10
Series preferred stock, shares authorized (in shares)
250,000,000
250,000,000
Series preferred stock, shares issued (in shares)
0
0
Common stock, par value (USD per share)
$ 0.10
$ 0.10
Common stock, shares authorized (in shares)
6,250,000,000
6,250,000,000
Common stock, shares issued (in shares)
4,291,433,646
4,291,433,646
Treasury stock, shares issued (in shares)
153,379,776
155,605,527
6 Months Ended
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation
Note 1. Basis of Presentation At June 30, At December 31, Increase / (Decrease) 2020 2019 Cash and cash equivalents $ 7,882 $ 2,594 $ 5,288 Restricted cash: 1,101 1,221 (120) 130 102 28 Cash, cash equivalents and restricted cash $ 9,113 $ 3,917 $ 5,196 Description Date of Adoption Effect on Financial Statements ASU 2016-13, ASU 2018-19, ASU 2019-04, and ASU 2019-05, Financial Instruments - Credit Losses (Topic 326) In June 2016, the FASB issued Topic 326 which requires certain financial assets to be measured at amortized cost net of an allowance for estimated credit losses, such that the net receivable represents the present value of expected cash collection. In addition, 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. An entity applies the update through a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (January 1, 2020). A prospective transition approach is required for debt securities for which an other-than-temporary impairment has been recognized before the effective date. Early adoption of this standard is permitted. ASU 2020-04, Reference Rate Reform (Topic 848) Topic 848 provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. Topic 848 provides optional expedients and exceptions for applying U.S. GAAP to transactions affected by reference rate reform if certain criteria are met. Topic 848 was effective for the Company beginning on March 12, 2020, and we will apply the amendments prospectively through December 31, 2022. There was no impact to our condensed consolidated financial statements for the current period as a result of adopting this standard update. (dollars in millions) At December 31, 2019 Adjustments due to
Topic 326At January 1, 2020 Allowance for credit losses $ — $ 919 $ 919 Allowance for doubtful accounts 733 (733) — Other assets 10,141 (79) 10,062 Deferred income taxes 34,703 (65) 34,638 Retained earnings 53,147 (200) 52,947
6 Months Ended
Revenue from Contract with Customer [Abstract]
Revenues and Contract Costs
Note 2. Revenues and Contract Costs At June 30, At January 1, At June 30, At January 1, (dollars in millions) 2020 2020 2019 2019 $ 10,967 $ 12,078 $ 12,173 $ 12,104 10,047 11,741 10,053 8,940 At June 30, At January 1, At June 30, At January 1, (dollars in millions) 2020 2020 2019 2019 Contract asset $ 993 $ 1,150 $ 1,059 $ 1,003 5,275 5,307 4,946 4,943 At June 30, At December 31, (dollars in millions) 2020 2019 Assets Prepaid expenses and other $ 762 $ 848 Other assets 231 302 Total $ 993 $ 1,150 Liabilities Other current liabilities $ 4,636 $ 4,651 Other liabilities 639 656 Total $ 5,275 $ 5,307 At June 30, At December 31, (dollars in millions) 2020 2019 Assets Prepaid expenses and other $ 2,455 $ 2,578 Other assets 1,791 1,911 Total $ 4,246 $ 4,489
6 Months Ended
Business Combinations [Abstract]
Acquisitions and Divestitures
Note 3. Acquisitions and Divestitures
6 Months Ended
Goodwill and Intangible Assets Disclosure [Abstract]
Wireless Licenses, Goodwill and Other Intangible Assets
Note 4. Wireless Licenses, Goodwill, and Other Intangible Assets At June 30, At December 31, (dollars in millions) 2020 2019 Wireless licenses $ 95,767 $ 95,059 (dollars in millions) Consumer Business Other Total $ 17,104 $ 7,269 $ 16 $ 24,389 Acquisitions (Note 3) — 282 — 282 Reclassifications, adjustments and other — (4) — (4) $ 17,104 $ 7,547 $ 16 $ 24,667 At June 30, 2020 At December 31, 2019 (dollars in millions) Gross
AmountAccumulated
AmortizationNet
AmountGross
AmountAccumulated
AmortizationNet
Amount$ 4,009 $ (1,740) $ 2,269 $ 3,896 $ (1,511) $ 2,385 21,670 (15,292) 6,378 20,530 (14,418) 6,112 1,981 (1,028) 953 1,967 (966) 1,001 Total $ 27,660 $ (18,060) $ 9,600 $ 26,393 $ (16,895) $ 9,498 Three Months Ended Six Months Ended (dollars in millions) June 30, June 30, 2020 $ 605 $ 1,197 2019 569 1,124 Years (dollars in millions) Remainder of 2020 $ 1,194 2021 2,136 2022 1,838 2023 1,476 2024 1,105 2025 746
6 Months Ended
Debt Disclosure [Abstract]
Debt
Note 5. Debt (dollars in millions) Principal Redeemed/ Repurchased/ Repaid Three Months Ended March 31, 2020 $ 1,475 $ 1,475 Three Months Ended March 31, 2020 total $ 1,475 $ 1,475 Three Months Ended June 30, 2020 $ 1,650 $ 1,650 1,018 1,018 920 949 1,256 1,314 Open market repurchases of various Verizon notes 121 143 € 935 $ 1,199 € 454 $ 517 Three Months Ended June 30, 2020 total 6,790 Six Months Ended June 30, 2020 total $ 8,265 (amounts in millions) Principal Amount Issued Three Months Ended March 31, 2020 $ 2,385 $ 2,369 750 747 1,500 1,489 1,250 1,241 Three Months Ended March 31, 2020 total $ 5,885 $ 5,846 Three Months Ended June 30, 2020 C$ 1,000 $ 705 C$ 300 $ 209 € 1,350 $ 1,464 € 800 $ 869 Three Months Ended June 30, 2020 total 3,247 Six Months Ended June 30, 2020 total $ 9,093 (dollars in millions) Interest Rates % Expected Weighted-average Life to Maturity (in years) Principal Amount Issued March 2020 A-1a Senior class notes 1.850 2.46 $ 1,326 A-1b Senior floating rate class notes 2.46 100 B Junior class notes 1.980 3.18 98 C Junior class notes 2.060 3.36 76 Total $ 1,600 At June 30, At December 31, (dollars in millions) 2020 2019 Assets Account receivable, net $ 9,981 $ 10,525 Prepaid expenses and other 1,053 1,180 Other assets 3,584 3,856 Liabilities Accounts payable and accrued liabilities 10 11 Short-term portion of long-term debt 3,894 5,578 Long-term debt 6,713 6,791 At June 30, 2020 (dollars in millions) Maturities Facility Capacity Unused Capacity Principal Amount Outstanding 2022 $ 9,500 $ 9,392 n/a 2022-2027 7,000 1,500 $ 4,206 Total $ 16,500 $ 10,892 $ 4,206
6 Months Ended
Receivables [Abstract]
Device Payment Plan and Wireless Service Receivables
Note 6. Device Payment Plan Agreement and Wireless Service Receivables At June 30, 2020 (dollars in millions) Device payment plan agreement Wireless
serviceTotal $ 12,017 $ 5,089 $ 6,636 $ 23,742 Less Allowance for credit losses 584 234 252 1,070 Accounts receivable, net of allowance $ 11,433 $ 4,855 $ 6,384 $ 22,672 At June 30, At December 31, (dollars in millions) 2020 Device payment plan agreement receivables, gross $ 17,079 $ 19,493 Unamortized imputed interest (429) (454) Device payment plan agreement receivables, at amortized cost 16,650 19,039 (795) (472) Device payment plan agreement receivables, net $ 15,855 $ 18,567 Classified in our condensed consolidated balance sheets: Accounts receivable, net $ 11,433 $ 13,045 Other assets 4,422 5,522 Device payment plan agreement receivables, net $ 15,855 $ 18,567 Year of Origination (dollars in millions) 2020 2019 2018 Prior to 2018 Total New customers $ 1,042 $ 1,360 $ 169 $ 43 $ 2,614 Existing customers 4,964 7,857 1,186 29 14,036 Total $ 6,006 $ 9,217 $ 1,355 $ 72 $ 16,650 (dollars in millions) Wireless Service Plan Receivables Balance at January 1, 2020 $ 472 $ 156 Opening balance sheet adjustment related to Topic 326 adoption 265 — Adjusted opening balance, January 1, 2020 737 156 Current period provision for expected credit losses 449 252 Write-offs charged against the allowance (415) (208) Recoveries collected 24 34 Balance at June 30, 2020 $ 795 $ 234 At June 30, (dollars in millions) 2020 Unbilled $ 15,720 Billed: 832 98 Device payment plan agreement receivables, at amortized cost $ 16,650
6 Months Ended
Fair Value Disclosures [Abstract]
Fair Value Measurements
Note 7. Fair Value Measurements (dollars in millions) Total Assets: Prepaid expenses and other: Foreign exchange forwards $ — $ 5 $ — $ 5 Other assets: Fixed income securities — 458 — 458 Interest rate swaps — 1,935 — 1,935 Cross currency swaps — 89 — 89 Interest rate caps — 1 — 1 Total $ — $ 2,488 $ — $ 2,488 Liabilities: Other current liabilities: Forward starting interest rate swaps $ — $ 568 $ — $ 568 Other liabilities: Interest rate swaps — 340 — 340 Cross currency swaps — 2,590 — 2,590 Forward starting interest rate swaps — 552 — 552 Interest rate caps — 1 — 1 Total $ — $ 4,051 $ — $ 4,051 (dollars in millions) Total Assets: Other assets: Fixed income securities $ — $ 442 $ — $ 442 Interest rate swaps — 568 — 568 Cross currency swaps — 211 — 211 Foreign exchange forwards — 5 — 5 Total $ — $ 1,226 $ — $ 1,226 Liabilities: Other liabilities: $ — $ 173 $ — $ 173 — 912 — 912 — 604 — 604 Total $ — $ 1,689 $ — $ 1,689 Fair Value (dollars in millions) Carrying
AmountLevel 1 Level 2 Level 3 Total At December 31, 2019 $ 110,373 $ 86,712 $ 42,488 $ — $ 129,200 At June 30, 2020 111,631 89,504 47,916 — 137,420 At June 30, At December 31, (dollars in millions) 2020 2019 Interest rate swaps $ 16,996 $ 17,004 Cross currency swaps 24,740 23,070 Forward starting interest rate swaps 2,000 3,000 Interest rate caps 158 679 Foreign exchange forwards 960 1,130 At June 30, At December 31, (dollars in millions) 2020 2019 Carrying amount of hedged liabilities $ 18,438 $ 17,337 Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities 1,544 433
6 Months Ended
Retirement Benefits [Abstract]
Employee Benefits
Note 8. Employee Benefits (dollars in millions) Pension Health Care and Life Three Months Ended June 30, 2020 2019 2020 2019 Service cost - Cost of services $ 59 $ 50 $ 23 $ 19 Service cost - Selling, general and administrative expense 14 12 5 5 Service cost $ 73 $ 62 $ 28 $ 24 Amortization of prior service cost (credit) $ 15 $ 16 $ (242) $ (243) Expected return on plan assets (296) (282) (6) (10) Interest cost 137 176 107 158 Remeasurement loss, net 153 — — — Other components $ 9 $ (90) $ (141) $ (95) Total $ 82 $ (28) $ (113) $ (71) (dollars in millions) Pension Health Care and Life Six Months Ended June 30, 2020 2019 2020 2019 Service cost - Cost of services $ 118 $ 100 $ 45 $ 39 Service cost - Selling, general and administrative expense 28 23 10 9 Service cost $ 146 $ 123 $ 55 $ 48 Amortization of prior service cost (credit) $ 30 $ 31 $ (483) $ (486) Expected return on plan assets (593) (564) (13) (19) Interest cost 277 354 214 315 Remeasurement loss (gain), net 335 (96) — — Other components $ 49 $ (275) $ (282) $ (190) Total $ 195 $ (152) $ (227) $ (142)
6 Months Ended
Stockholders' Equity Note [Abstract]
Equity and Accumulated Other Comprehensive Income
Note 9. Equity and Accumulated Other Comprehensive Income (dollars in millions, except per share amounts, and shares in thousands) Three months ended June 30, 2020 2019 Shares Amount Shares Amount Common Stock Balance at beginning of period 4,291,434 $ 429 4,291,434 $ 429 Balance at end of period 4,291,434 429 4,291,434 429 Additional Paid In Capital Balance at beginning of period 13,302 13,418 Other (21) 1 Balance at end of period 13,281 13,419 Retained Earnings Balance at beginning of period 54,557 46,493 Net income attributable to Verizon 4,700 3,944 (2,544) (2,492) Other 33 — Balance at end of period 56,746 47,945 Accumulated Other Comprehensive Income (Loss) Balance at beginning of period attributable to Verizon (1,502) 2,216 Foreign currency translation adjustments 77 (67) Unrealized gain (loss) on cash flow hedges 314 (537) Unrealized gain on marketable securities 6 4 Defined benefit pension and postretirement plans (169) (169) Other comprehensive income (loss) 228 (769) Balance at end of period attributable to Verizon (1,274) 1,447 Treasury Stock Balance at beginning of period (153,438) (6,725) (155,727) (6,825) Employee plans 58 3 58 2 Balance at end of period (153,380) (6,722) (155,669) (6,823) Deferred Compensation-ESOPs and Other Balance at beginning of period 149 125 Restricted stock equity grant 157 44 Amortization (69) (4) Balance at end of period 237 165 Noncontrolling Interests Balance at beginning of period 1,443 1,604 Total comprehensive income 139 130 Distributions and other (166) (369) Balance at end of period 1,416 1,365 Total Equity $ 64,113 $ 57,947 (dollars in millions, except per share amounts, and shares in thousands) Six months ended June 30, 2020 2019 Shares Amount Shares Amount Common Stock Balance at beginning of year 4,291,434 $ 429 4,291,434 $ 429 Balance at end of period 4,291,434 429 4,291,434 429 Additional Paid In Capital Balance at beginning of year 13,419 13,437 Other (138) (18) Balance at end of period 13,281 13,419 Retained Earnings Balance at beginning of year 53,147 43,542 Opening balance sheet adjustment (200) 410 Adjusted opening balance 52,947 43,952 Net income attributable to Verizon 8,856 8,976 (5,090) (4,983) Other 33 — Balance at end of period 56,746 47,945 Accumulated Other Comprehensive Income (Loss) Balance at beginning of year attributable to Verizon 998 2,370 Foreign currency translation adjustments (43) (43) Unrealized loss on cash flow hedges (1,896) (550) Unrealized gain on marketable securities 5 8 Defined benefit pension and postretirement plans (338) (338) Other comprehensive loss (2,272) (923) Balance at end of period attributable to Verizon (1,274) 1,447 Treasury Stock Balance at beginning of year (155,606) (6,820) (159,400) (6,986) Employee plans 2,222 98 3,726 163 Shareholder plans 4 — 5 — Balance at end of period (153,380) (6,722) (155,669) (6,823) Deferred Compensation-ESOPs and Other Balance at beginning of year 222 353 Restricted stock equity grant 172 79 Amortization (157) (267) Balance at end of period 237 165 Noncontrolling Interests Balance at beginning of year 1,440 1,565 Opening balance sheet adjustment — 1 Adjusted opening balance 1,440 1,566 Total comprehensive income 270 258 Distributions and other (294) (459) Balance at end of period 1,416 1,365 Total Equity $ 64,113 $ 57,947 (dollars in millions) Foreign
currency
translation
adjustmentsUnrealized loss on cash flow hedges Unrealized gain on marketable securities Defined
benefit
pension and
postretirement
plansTotal Balance at January 1, 2020 $ (584) $ (816) $ 27 $ 2,371 $ 998 Other comprehensive income (loss) (43) (2,065) 5 — (2,103) Amounts reclassified to net income — 169 — (338) (169) Net other comprehensive income (loss) (43) (1,896) 5 (338) (2,272) Balance at June 30, 2020 $ (627) $ (2,712) $ 32 $ 2,033 $ (1,274)
6 Months Ended
Segment Reporting [Abstract]
Segment Information
Note 10. Segment Information Segment Description Verizon
Consumer GroupOur Consumer segment provides consumer-focused wireless and wireline communications services and products. Our wireless services are provided across one of the most extensive wireless networks in the U.S. under the Verizon brand and through wholesale and other arrangements. Our wireline services are provided in nine states in the Mid-Atlantic and Northeastern U.S., as well as Washington D.C., over our 100% fiber-optic network by our Verizon Fios product portfolio and over a traditional copper-based network to customers who are not served by Fios. Verizon
Business GroupOur Business segment provides wireless and wireline communications services and products, including data, video and conferencing services, corporate networking solutions, security and managed network services, local and long distance voice services and network access to deliver various IoT services and products. We provide these products and services to businesses, government customers and wireless and wireline carriers across the U.S. and select products and services to customers around the world. Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2020 2019 2020 2019 External Operating Revenues Consumer $ 15,898 $ 16,350 $ 32,241 $ 32,611 3,209 3,904 6,586 8,070 1,946 1,680 3,932 3,350 21,053 21,934 42,759 44,031 Business 2,597 2,781 5,395 5,485 2,587 2,673 5,217 5,363 1,523 1,492 2,997 2,963 756 810 1,516 1,650 7,463 7,756 15,125 15,461 Total reportable segments $ 28,516 $ 29,690 $ 57,884 $ 59,492 Intersegment Revenues Consumer $ 60 $ 61 $ 119 $ 112 Business 19 12 38 26 Total reportable segments $ 79 $ 73 $ 157 $ 138 Total Operating Revenues Consumer $ 21,113 $ 21,995 $ 42,878 $ 44,143 7,482 7,768 15,163 15,487 Total reportable segments $ 28,595 $ 29,763 $ 58,041 $ 59,630 Operating Income Consumer $ 7,064 $ 7,336 $ 14,346 $ 14,586 Business 946 1,071 1,900 2,119 Total reportable segments $ 8,010 $ 8,407 $ 16,246 $ 16,705 Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2020 2019 2020 2019 Consumer $ 2,754 $ 2,772 $ 5,553 $ 5,536 Business 260 239 522 482 Total Fios revenue $ 3,014 $ 3,011 $ 6,075 $ 6,018 Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2020 2019 2020 2019 Consumer $ 13,087 $ 13,456 $ 26,563 $ 26,813 Business 2,861 2,775 5,742 5,469 Total Wireless service revenue $ 15,948 $ 16,231 $ 32,305 $ 32,282 Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2020 2019 2020 2019 Total reportable segment operating revenues $ 28,595 $ 29,763 $ 58,041 $ 59,630 1,967 2,412 4,239 4,747 (115) (104) (223) (178) Total consolidated operating revenues $ 30,447 $ 32,071 $ 62,057 $ 64,199 Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2020 2019 2020 2019 Total reportable segment operating income $ 8,010 $ 8,407 $ 16,246 $ 16,705 (445) (354) (704) (740) Other components of net periodic benefit charges (Note 8) (204) (203) (407) (406) Loss on spectrum license transaction (Note 3) — — (1,195) — Total consolidated operating income 7,361 7,850 13,940 15,559 Equity in losses of unconsolidated businesses (13) (13) (25) (19) Other income (expense), net (72) (1,312) 71 (1,017) Interest expense (1,089) (1,215) (2,123) (2,425) Income Before Provision For Income Taxes $ 6,187 $ 5,310 $ 11,863 $ 12,098
6 Months Ended
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies
Note 11. Commitments and Contingencies
6 Months Ended
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) in the United States (U.S.) and based upon Securities and Exchange Commission rules that permit reduced disclosure for interim periods. For a more complete discussion of significant accounting policies and certain other information, you should refer to the financial statements included in Verizon Communications Inc.'s (Verizon or the Company) Annual Report on Form 10-K for the year ended December 31, 2019. These financial statements reflect all adjustments that are necessary for a fair presentation of results of operations and financial condition for the interim periods shown, including normal recurring accruals and other items. The results for the interim periods are not necessarily indicative of results for the full year.
Reclassifications
Certain amounts have been reclassified to conform to the current period’s presentation.
Use of Estimates
Cash, Cash Equivalents and Restricted Cash
Allowance for Credit Losses
Recently Adopted Accounting Standards
Description Date of Adoption Effect on Financial Statements ASU 2016-13, ASU 2018-19, ASU 2019-04, and ASU 2019-05, Financial Instruments - Credit Losses (Topic 326) In June 2016, the FASB issued Topic 326 which requires certain financial assets to be measured at amortized cost net of an allowance for estimated credit losses, such that the net receivable represents the present value of expected cash collection. In addition, 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. An entity applies the update through a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (January 1, 2020). A prospective transition approach is required for debt securities for which an other-than-temporary impairment has been recognized before the effective date. Early adoption of this standard is permitted. ASU 2020-04, Reference Rate Reform (Topic 848) Topic 848 provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. Topic 848 provides optional expedients and exceptions for applying U.S. GAAP to transactions affected by reference rate reform if certain criteria are met. Topic 848 was effective for the Company beginning on March 12, 2020, and we will apply the amendments prospectively through December 31, 2022. There was no impact to our condensed consolidated financial statements for the current period as a result of adopting this standard update. (dollars in millions) At December 31, 2019 Adjustments due to
Topic 326At January 1, 2020 Allowance for credit losses $ — $ 919 $ 919 Allowance for doubtful accounts 733 (733) — Other assets 10,141 (79) 10,062 Deferred income taxes 34,703 (65) 34,638 Retained earnings 53,147 (200) 52,947
6 Months Ended
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Cash and Cash Equivalents
At June 30, At December 31, Increase / (Decrease) 2020 2019 Cash and cash equivalents $ 7,882 $ 2,594 $ 5,288 Restricted cash: 1,101 1,221 (120) 130 102 28 Cash, cash equivalents and restricted cash $ 9,113 $ 3,917 $ 5,196
Schedule of Restricted Cash
At June 30, At December 31, Increase / (Decrease) 2020 2019 Cash and cash equivalents $ 7,882 $ 2,594 $ 5,288 Restricted cash: 1,101 1,221 (120) 130 102 28 Cash, cash equivalents and restricted cash $ 9,113 $ 3,917 $ 5,196
Schedule of New Accounting Pronouncements
Description Date of Adoption Effect on Financial Statements ASU 2016-13, ASU 2018-19, ASU 2019-04, and ASU 2019-05, Financial Instruments - Credit Losses (Topic 326) In June 2016, the FASB issued Topic 326 which requires certain financial assets to be measured at amortized cost net of an allowance for estimated credit losses, such that the net receivable represents the present value of expected cash collection. In addition, 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. An entity applies the update through a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (January 1, 2020). A prospective transition approach is required for debt securities for which an other-than-temporary impairment has been recognized before the effective date. Early adoption of this standard is permitted. ASU 2020-04, Reference Rate Reform (Topic 848) Topic 848 provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. Topic 848 provides optional expedients and exceptions for applying U.S. GAAP to transactions affected by reference rate reform if certain criteria are met. Topic 848 was effective for the Company beginning on March 12, 2020, and we will apply the amendments prospectively through December 31, 2022. There was no impact to our condensed consolidated financial statements for the current period as a result of adopting this standard update. (dollars in millions) At December 31, 2019 Adjustments due to
Topic 326At January 1, 2020 Allowance for credit losses $ — $ 919 $ 919 Allowance for doubtful accounts 733 (733) — Other assets 10,141 (79) 10,062 Deferred income taxes 34,703 (65) 34,638 Retained earnings 53,147 (200) 52,947
6 Months Ended
Revenue from Contract with Customer [Abstract]
Schedule of Receivables from Contracts with Customers
At June 30, At January 1, At June 30, At January 1, (dollars in millions) 2020 2020 2019 2019 $ 10,967 $ 12,078 $ 12,173 $ 12,104 10,047 11,741 10,053 8,940
Contract with Customer, Asset and Liability
At June 30, At January 1, At June 30, At January 1, (dollars in millions) 2020 2020 2019 2019 Contract asset $ 993 $ 1,150 $ 1,059 $ 1,003 5,275 5,307 4,946 4,943 At June 30, At December 31, (dollars in millions) 2020 2019 Assets Prepaid expenses and other $ 762 $ 848 Other assets 231 302 Total $ 993 $ 1,150 Liabilities Other current liabilities $ 4,636 $ 4,651 Other liabilities 639 656 Total $ 5,275 $ 5,307
Capitalized Contract Cost
At June 30, At December 31, (dollars in millions) 2020 2019 Assets Prepaid expenses and other $ 2,455 $ 2,578 Other assets 1,791 1,911 Total $ 4,246 $ 4,489
6 Months Ended
Goodwill and Intangible Assets Disclosure [Abstract]
Carrying Amount of Wireless Licenses
At June 30, At December 31, (dollars in millions) 2020 2019 Wireless licenses $ 95,767 $ 95,059
Changes in Carrying Amount of Goodwill
(dollars in millions) Consumer Business Other Total $ 17,104 $ 7,269 $ 16 $ 24,389 Acquisitions (Note 3) — 282 — 282 Reclassifications, adjustments and other — (4) — (4) $ 17,104 $ 7,547 $ 16 $ 24,667
Composition of Other Intangible Assets, Net
At June 30, 2020 At December 31, 2019 (dollars in millions) Gross
AmountAccumulated
AmortizationNet
AmountGross
AmountAccumulated
AmortizationNet
Amount$ 4,009 $ (1,740) $ 2,269 $ 3,896 $ (1,511) $ 2,385 21,670 (15,292) 6,378 20,530 (14,418) 6,112 1,981 (1,028) 953 1,967 (966) 1,001 Total $ 27,660 $ (18,060) $ 9,600 $ 26,393 $ (16,895) $ 9,498
Amortization Expense for Other Intangible Assets
Three Months Ended Six Months Ended (dollars in millions) June 30, June 30, 2020 $ 605 $ 1,197 2019 569 1,124
Estimated Future Amortization Expense for Other Intangible Assets
Years (dollars in millions) Remainder of 2020 $ 1,194 2021 2,136 2022 1,838 2023 1,476 2024 1,105 2025 746
6 Months Ended
Debt Disclosure [Abstract]
Schedule of Debt Transactions
(dollars in millions) Principal Redeemed/ Repurchased/ Repaid Three Months Ended March 31, 2020 $ 1,475 $ 1,475 Three Months Ended March 31, 2020 total $ 1,475 $ 1,475 Three Months Ended June 30, 2020 $ 1,650 $ 1,650 1,018 1,018 920 949 1,256 1,314 Open market repurchases of various Verizon notes 121 143 € 935 $ 1,199 € 454 $ 517 Three Months Ended June 30, 2020 total 6,790 Six Months Ended June 30, 2020 total $ 8,265 (amounts in millions) Principal Amount Issued Three Months Ended March 31, 2020 $ 2,385 $ 2,369 750 747 1,500 1,489 1,250 1,241 Three Months Ended March 31, 2020 total $ 5,885 $ 5,846 Three Months Ended June 30, 2020 C$ 1,000 $ 705 C$ 300 $ 209 € 1,350 $ 1,464 € 800 $ 869 Three Months Ended June 30, 2020 total 3,247 Six Months Ended June 30, 2020 total $ 9,093 (dollars in millions) Interest Rates % Expected Weighted-average Life to Maturity (in years) Principal Amount Issued March 2020 A-1a Senior class notes 1.850 2.46 $ 1,326 A-1b Senior floating rate class notes 2.46 100 B Junior class notes 1.980 3.18 98 C Junior class notes 2.060 3.36 76 Total $ 1,600
Schedule of Assets and Liabilities Related to Asset-backed Debt Arrangements
At June 30, At December 31, (dollars in millions) 2020 2019 Assets Account receivable, net $ 9,981 $ 10,525 Prepaid expenses and other 1,053 1,180 Other assets 3,584 3,856 Liabilities Accounts payable and accrued liabilities 10 11 Short-term portion of long-term debt 3,894 5,578 Long-term debt 6,713 6,791
Schedule of Line of Credit Facilities
At June 30, 2020 (dollars in millions) Maturities Facility Capacity Unused Capacity Principal Amount Outstanding 2022 $ 9,500 $ 9,392 n/a 2022-2027 7,000 1,500 $ 4,206 Total $ 16,500 $ 10,892 $ 4,206
6 Months Ended
Receivables [Abstract]
Schedule of Receivables, Net
At June 30, 2020 (dollars in millions) Device payment plan agreement Wireless
serviceTotal $ 12,017 $ 5,089 $ 6,636 $ 23,742 Less Allowance for credit losses 584 234 252 1,070 Accounts receivable, net of allowance $ 11,433 $ 4,855 $ 6,384 $ 22,672 At June 30, At December 31, (dollars in millions) 2020 Device payment plan agreement receivables, gross $ 17,079 $ 19,493 Unamortized imputed interest (429) (454) Device payment plan agreement receivables, at amortized cost 16,650 19,039 (795) (472) Device payment plan agreement receivables, net $ 15,855 $ 18,567 Classified in our condensed consolidated balance sheets: Accounts receivable, net $ 11,433 $ 13,045 Other assets 4,422 5,522 Device payment plan agreement receivables, net $ 15,855 $ 18,567
Financing Receivable Credit Quality Indicators
Year of Origination (dollars in millions) 2020 2019 2018 Prior to 2018 Total New customers $ 1,042 $ 1,360 $ 169 $ 43 $ 2,614 Existing customers 4,964 7,857 1,186 29 14,036 Total $ 6,006 $ 9,217 $ 1,355 $ 72 $ 16,650
Activity in Allowance for Credit Losses for Device Payment Plan Agreement Receivables
(dollars in millions) Wireless Service Plan Receivables Balance at January 1, 2020 $ 472 $ 156 Opening balance sheet adjustment related to Topic 326 adoption 265 — Adjusted opening balance, January 1, 2020 737 156 Current period provision for expected credit losses 449 252 Write-offs charged against the allowance (415) (208) Recoveries collected 24 34 Balance at June 30, 2020 $ 795 $ 234
Balance and Aging of Device Payment Plan Agreement Receivables on Gross Basis
At June 30, (dollars in millions) 2020 Unbilled $ 15,720 Billed: 832 98 Device payment plan agreement receivables, at amortized cost $ 16,650
6 Months Ended
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis
(dollars in millions) Total Assets: Prepaid expenses and other: Foreign exchange forwards $ — $ 5 $ — $ 5 Other assets: Fixed income securities — 458 — 458 Interest rate swaps — 1,935 — 1,935 Cross currency swaps — 89 — 89 Interest rate caps — 1 — 1 Total $ — $ 2,488 $ — $ 2,488 Liabilities: Other current liabilities: Forward starting interest rate swaps $ — $ 568 $ — $ 568 Other liabilities: Interest rate swaps — 340 — 340 Cross currency swaps — 2,590 — 2,590 Forward starting interest rate swaps — 552 — 552 Interest rate caps — 1 — 1 Total $ — $ 4,051 $ — $ 4,051 (dollars in millions) Total Assets: Other assets: Fixed income securities $ — $ 442 $ — $ 442 Interest rate swaps — 568 — 568 Cross currency swaps — 211 — 211 Foreign exchange forwards — 5 — 5 Total $ — $ 1,226 $ — $ 1,226 Liabilities: Other liabilities: $ — $ 173 $ — $ 173 — 912 — 912 — 604 — 604 Total $ — $ 1,689 $ — $ 1,689
Schedule of Fair Value of Short-Term and Long-Term Debt, Excluding Capital Leases
Fair Value (dollars in millions) Carrying
AmountLevel 1 Level 2 Level 3 Total At December 31, 2019 $ 110,373 $ 86,712 $ 42,488 $ — $ 129,200 At June 30, 2020 111,631 89,504 47,916 — 137,420
Notional Amounts of Outstanding Derivative Instruments
At June 30, At December 31, (dollars in millions) 2020 2019 Interest rate swaps $ 16,996 $ 17,004 Cross currency swaps 24,740 23,070 Forward starting interest rate swaps 2,000 3,000 Interest rate caps 158 679 Foreign exchange forwards 960 1,130
Schedule of Cumulative Basis Adjustments for Fair Value hedges
At June 30, At December 31, (dollars in millions) 2020 2019 Carrying amount of hedged liabilities $ 18,438 $ 17,337 Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities 1,544 433
6 Months Ended
Retirement Benefits [Abstract]
Benefit or (Income) Cost Related to Pension and Postretirement Health Care and Life Insurance
(dollars in millions) Pension Health Care and Life Three Months Ended June 30, 2020 2019 2020 2019 Service cost - Cost of services $ 59 $ 50 $ 23 $ 19 Service cost - Selling, general and administrative expense 14 12 5 5 Service cost $ 73 $ 62 $ 28 $ 24 Amortization of prior service cost (credit) $ 15 $ 16 $ (242) $ (243) Expected return on plan assets (296) (282) (6) (10) Interest cost 137 176 107 158 Remeasurement loss, net 153 — — — Other components $ 9 $ (90) $ (141) $ (95) Total $ 82 $ (28) $ (113) $ (71) (dollars in millions) Pension Health Care and Life Six Months Ended June 30, 2020 2019 2020 2019 Service cost - Cost of services $ 118 $ 100 $ 45 $ 39 Service cost - Selling, general and administrative expense 28 23 10 9 Service cost $ 146 $ 123 $ 55 $ 48 Amortization of prior service cost (credit) $ 30 $ 31 $ (483) $ (486) Expected return on plan assets (593) (564) (13) (19) Interest cost 277 354 214 315 Remeasurement loss (gain), net 335 (96) — — Other components $ 49 $ (275) $ (282) $ (190) Total $ 195 $ (152) $ (227) $ (142)
6 Months Ended
Stockholders' Equity Note [Abstract]
Schedule of Changes in Components of Total Equity
(dollars in millions, except per share amounts, and shares in thousands) Three months ended June 30, 2020 2019 Shares Amount Shares Amount Common Stock Balance at beginning of period 4,291,434 $ 429 4,291,434 $ 429 Balance at end of period 4,291,434 429 4,291,434 429 Additional Paid In Capital Balance at beginning of period 13,302 13,418 Other (21) 1 Balance at end of period 13,281 13,419 Retained Earnings Balance at beginning of period 54,557 46,493 Net income attributable to Verizon 4,700 3,944 (2,544) (2,492) Other 33 — Balance at end of period 56,746 47,945 Accumulated Other Comprehensive Income (Loss) Balance at beginning of period attributable to Verizon (1,502) 2,216 Foreign currency translation adjustments 77 (67) Unrealized gain (loss) on cash flow hedges 314 (537) Unrealized gain on marketable securities 6 4 Defined benefit pension and postretirement plans (169) (169) Other comprehensive income (loss) 228 (769) Balance at end of period attributable to Verizon (1,274) 1,447 Treasury Stock Balance at beginning of period (153,438) (6,725) (155,727) (6,825) Employee plans 58 3 58 2 Balance at end of period (153,380) (6,722) (155,669) (6,823) Deferred Compensation-ESOPs and Other Balance at beginning of period 149 125 Restricted stock equity grant 157 44 Amortization (69) (4) Balance at end of period 237 165 Noncontrolling Interests Balance at beginning of period 1,443 1,604 Total comprehensive income 139 130 Distributions and other (166) (369) Balance at end of period 1,416 1,365 Total Equity $ 64,113 $ 57,947 (dollars in millions, except per share amounts, and shares in thousands) Six months ended June 30, 2020 2019 Shares Amount Shares Amount Common Stock Balance at beginning of year 4,291,434 $ 429 4,291,434 $ 429 Balance at end of period 4,291,434 429 4,291,434 429 Additional Paid In Capital Balance at beginning of year 13,419 13,437 Other (138) (18) Balance at end of period 13,281 13,419 Retained Earnings Balance at beginning of year 53,147 43,542 Opening balance sheet adjustment (200) 410 Adjusted opening balance 52,947 43,952 Net income attributable to Verizon 8,856 8,976 (5,090) (4,983) Other 33 — Balance at end of period 56,746 47,945 Accumulated Other Comprehensive Income (Loss) Balance at beginning of year attributable to Verizon 998 2,370 Foreign currency translation adjustments (43) (43) Unrealized loss on cash flow hedges (1,896) (550) Unrealized gain on marketable securities 5 8 Defined benefit pension and postretirement plans (338) (338) Other comprehensive loss (2,272) (923) Balance at end of period attributable to Verizon (1,274) 1,447 Treasury Stock Balance at beginning of year (155,606) (6,820) (159,400) (6,986) Employee plans 2,222 98 3,726 163 Shareholder plans 4 — 5 — Balance at end of period (153,380) (6,722) (155,669) (6,823) Deferred Compensation-ESOPs and Other Balance at beginning of year 222 353 Restricted stock equity grant 172 79 Amortization (157) (267) Balance at end of period 237 165 Noncontrolling Interests Balance at beginning of year 1,440 1,565 Opening balance sheet adjustment — 1 Adjusted opening balance 1,440 1,566 Total comprehensive income 270 258 Distributions and other (294) (459) Balance at end of period 1,416 1,365 Total Equity $ 64,113 $ 57,947
Schedule of Components in Accumulated Other Comprehensive Income
(dollars in millions) Foreign
currency
translation
adjustmentsUnrealized loss on cash flow hedges Unrealized gain on marketable securities Defined
benefit
pension and
postretirement
plansTotal Balance at January 1, 2020 $ (584) $ (816) $ 27 $ 2,371 $ 998 Other comprehensive income (loss) (43) (2,065) 5 — (2,103) Amounts reclassified to net income — 169 — (338) (169) Net other comprehensive income (loss) (43) (1,896) 5 (338) (2,272) Balance at June 30, 2020 $ (627) $ (2,712) $ 32 $ 2,033 $ (1,274)
6 Months Ended
Segment Reporting [Abstract]
Schedule of Segment Operating Information
Segment Description Verizon
Consumer GroupOur Consumer segment provides consumer-focused wireless and wireline communications services and products. Our wireless services are provided across one of the most extensive wireless networks in the U.S. under the Verizon brand and through wholesale and other arrangements. Our wireline services are provided in nine states in the Mid-Atlantic and Northeastern U.S., as well as Washington D.C., over our 100% fiber-optic network by our Verizon Fios product portfolio and over a traditional copper-based network to customers who are not served by Fios. Verizon
Business GroupOur Business segment provides wireless and wireline communications services and products, including data, video and conferencing services, corporate networking solutions, security and managed network services, local and long distance voice services and network access to deliver various IoT services and products. We provide these products and services to businesses, government customers and wireless and wireline carriers across the U.S. and select products and services to customers around the world. Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2020 2019 2020 2019 External Operating Revenues Consumer $ 15,898 $ 16,350 $ 32,241 $ 32,611 3,209 3,904 6,586 8,070 1,946 1,680 3,932 3,350 21,053 21,934 42,759 44,031 Business 2,597 2,781 5,395 5,485 2,587 2,673 5,217 5,363 1,523 1,492 2,997 2,963 756 810 1,516 1,650 7,463 7,756 15,125 15,461 Total reportable segments $ 28,516 $ 29,690 $ 57,884 $ 59,492 Intersegment Revenues Consumer $ 60 $ 61 $ 119 $ 112 Business 19 12 38 26 Total reportable segments $ 79 $ 73 $ 157 $ 138 Total Operating Revenues Consumer $ 21,113 $ 21,995 $ 42,878 $ 44,143 7,482 7,768 15,163 15,487 Total reportable segments $ 28,595 $ 29,763 $ 58,041 $ 59,630 Operating Income Consumer $ 7,064 $ 7,336 $ 14,346 $ 14,586 Business 946 1,071 1,900 2,119 Total reportable segments $ 8,010 $ 8,407 $ 16,246 $ 16,705 Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2020 2019 2020 2019 Consumer $ 2,754 $ 2,772 $ 5,553 $ 5,536 Business 260 239 522 482 Total Fios revenue $ 3,014 $ 3,011 $ 6,075 $ 6,018 Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2020 2019 2020 2019 Consumer $ 13,087 $ 13,456 $ 26,563 $ 26,813 Business 2,861 2,775 5,742 5,469 Total Wireless service revenue $ 15,948 $ 16,231 $ 32,305 $ 32,282
Summary of Reconciliation of Segment Operating Revenues
Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2020 2019 2020 2019 Total reportable segment operating revenues $ 28,595 $ 29,763 $ 58,041 $ 59,630 1,967 2,412 4,239 4,747 (115) (104) (223) (178) Total consolidated operating revenues $ 30,447 $ 32,071 $ 62,057 $ 64,199
Summary of Reconciliation of Segment Operating Income
Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2020 2019 2020 2019 Total reportable segment operating income $ 8,010 $ 8,407 $ 16,246 $ 16,705 (445) (354) (704) (740) Other components of net periodic benefit charges (Note 8) (204) (203) (407) (406) Loss on spectrum license transaction (Note 3) — — (1,195) — Total consolidated operating income 7,361 7,850 13,940 15,559 Equity in losses of unconsolidated businesses (13) (13) (25) (19) Other income (expense), net (72) (1,312) 71 (1,017) Interest expense (1,089) (1,215) (2,123) (2,425) Income Before Provision For Income Taxes $ 6,187 $ 5,310 $ 11,863 $ 12,098
$ in Millions6 Months Ended
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents
$ 7,882
$ 2,594
Cash, cash equivalents and restricted cash
9,113
$ 3,120
3,917
$ 3,916
Increase (decrease) in cash, cash equivalents and restricted cash
5,196
$ (796)
Cash and cash equivalents
Cash and Cash Equivalents [Line Items]
Increase (decrease) in cash, cash equivalents and restricted cash
5,288
Prepaid expenses and other
Cash and Cash Equivalents [Line Items]
Restricted cash
1,101
1,221
Increase (decrease) in cash, cash equivalents and restricted cash
(120)
Other assets
Cash and Cash Equivalents [Line Items]
Restricted cash
130
$ 102
Increase (decrease) in cash, cash equivalents and restricted cash
$ 28
$ in Millions
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses
$ 1,070
$ 0
Allowance for doubtful accounts
0
733
Other assets
10,178
10,141
Deferred income taxes
33,798
34,703
Retained earnings
$ 56,746
$ 53,147
Adjustments due to Topic 326
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses
$ 919
Allowance for doubtful accounts
(733)
Other assets
(79)
Deferred income taxes
(65)
Retained earnings
(200)
Cumulative Effect, Period Of Adoption, Adjusted Balance
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses
919
Allowance for doubtful accounts
0
Other assets
10,062
Deferred income taxes
34,638
Retained earnings
$ 52,947
3 Months Ended
6 Months Ended
Disaggregation of Revenue [Line Items]
Number of reportable segments | segment
2
Revenues from leasing arrangements, captive reinsurance arrangements and interest on equipment financed
$ 785,000,000
$ 797,000,000
$ 1,600,000,000
$ 1,600,000,000
Contract description of timing
Contracts for wireless services are generally either month-to-month and cancellable at any time (typically under a device payment plan) or contain terms ranging from greater than one month to up to two years (typically under a fixed-term plan).
Amortization of deferred contract costs
767,000,000
639,000,000
$ 1,500,000,000
1,300,000,000
Contract assets impairment charge
0
0
0
0
Media Business
Disaggregation of Revenue [Line Items]
Revenue from contract with customer
$ 1,400,000,000
$ 1,800,000,000
$ 3,100,000,000
$ 3,600,000,000
Wireless postpaid contracts
Disaggregation of Revenue [Line Items]
Percentage of month-to-month contracts of total service contracts
89.00%
87.00%
89.00%
87.00%
Wireline Consumer and Small and Medium Business contracts
Disaggregation of Revenue [Line Items]
Percentage of month-to-month contracts of total service contracts
67.00%
57.00%
67.00%
57.00%
Reseller Arrangements
Disaggregation of Revenue [Line Items]
Contract description of timing
Reseller arrangements generally include a stated contract term, which typically extends longer than two years and, in some cases, include a periodic minimum revenue commitment over the contract term for which revenues will be recognized in future periods.
Consumer
Disaggregation of Revenue [Line Items]
Customer contracts service term
2 years
Business
Disaggregation of Revenue [Line Items]
Contract description of timing
These contracts have varying terms spanning over approximately five years
Maximum | Business
Disaggregation of Revenue [Line Items]
Customer contracts service term
12 months
$ in Millions
Revenue from Contract with Customer [Abstract]
Receivables
$ 10,967
$ 12,078
$ 12,173
$ 12,104
Device payment plan agreement receivables
$ 10,047
$ 11,741
$ 10,053
$ 8,940
$ in Millions3 Months Ended
6 Months Ended
Disaggregation of Revenue [Line Items]
Contract asset
$ 993
$ 1,059
$ 993
$ 1,059
$ 1,150
$ 1,150
$ 1,003
Contract liability
5,275
4,946
5,275
4,946
$ 5,307
5,307
$ 4,943
Revenue recognized related to contract liabilities existing
204
$ 194
4,000
$ 3,900
Prepaid expenses and other
Disaggregation of Revenue [Line Items]
Contract asset
762
762
848
Other assets
Disaggregation of Revenue [Line Items]
Contract asset
231
231
302
Other current liabilities
Disaggregation of Revenue [Line Items]
Contract liability
4,636
4,636
4,651
Other liabilities
Disaggregation of Revenue [Line Items]
Contract liability
$ 639
$ 639
$ 656
3 Months Ended
6 Months Ended
Capitalized Contract Cost [Line Items]
Cost incurred to obtain or fulfill contracts with customers
$ 4,246,000,000
$ 4,246,000,000
$ 4,489,000,000
Contract with Customer, Asset, Credit Loss Expense (Reversal)
$ 0
$ 0
$ 0
$ 0
Minimum
Capitalized Contract Cost [Line Items]
Deferred contract cost, amortization period
2 years
2 years
Maximum
Capitalized Contract Cost [Line Items]
Deferred contract cost, amortization period
5 years
5 years
Prepaid expenses and other
Capitalized Contract Cost [Line Items]
Cost incurred to obtain or fulfill contracts with customers
$ 2,455,000,000
$ 2,455,000,000
2,578,000,000
Other assets
Capitalized Contract Cost [Line Items]
Cost incurred to obtain or fulfill contracts with customers
$ 1,791,000,000
$ 1,791,000,000
$ 1,911,000,000
$ in Millions
Goodwill and Intangible Assets Disclosure [Abstract]
Wireless licenses
$ 95,767
$ 95,059
$ in Millions6 Months Ended
Goodwill [Line Items]
Beginning balance
$ 24,389
Acquisitions (Note 3)
282
Reclassifications, adjustments and other
(4)
Ending balance
24,667
Goodwill accumulated impairment charge
4,800
$ 4,800
Operating Segments | Consumer
Goodwill [Line Items]
Beginning balance
17,104
Acquisitions (Note 3)
0
Reclassifications, adjustments and other
0
Ending balance
17,104
Operating Segments | Business
Goodwill [Line Items]
Beginning balance
7,269
Acquisitions (Note 3)
282
Reclassifications, adjustments and other
(4)
Ending balance
7,547
Other
Goodwill [Line Items]
Beginning balance
16
Acquisitions (Note 3)
0
Reclassifications, adjustments and other
0
Ending balance
$ 16
$ in Millions3 Months Ended
6 Months Ended
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense for other intangible assets
$ 605
$ 569
$ 1,197
$ 1,124
Remainder of 2020
1,194
1,194
2021
2,136
2,136
2022
1,838
1,838
2023
1,476
1,476
2024
1,105
1,105
2025
$ 746
$ 746
1 Months Ended
3 Months Ended
Short-term Debt [Line Items]
Principal amount outstanding
$ 4,206,000,000
Commercial paper
1,000,000,000.0
Short Term Facility
Short-term Debt [Line Items]
Repayments of Short-term Debt
700,000,000
Principal amount outstanding
0
Commercial Paper
Short-term Debt [Line Items]
Repayments of Short-term Debt
$ 2,500,000,000
Commercial paper issued
$ 3,500,000,000
Commercial Paper | Subsequent Event
Short-term Debt [Line Items]
Repayments of Short-term Debt
$ 460,000,000
$ in Millions1 Months Ended
3 Months Ended
6 Months Ended
Debt Instrument [Line Items]
Repayments of debt
$ 6,790
$ 1,475
$ 8,265
Asset-Backed Debt
Debt Instrument [Line Items]
Secured debt, carrying value
$ 10,600
10,600
$ 10,600
Asset Backed Notes
Debt Instrument [Line Items]
Revolving period
2 years
2020 ABS Financing Facility
Debt Instrument [Line Items]
Revolving period
1 year
Repayments of debt
1,500
$ 1,300
Amount drawn from credit facilities
$ 1,300
Debt outstanding
$ 1,800
1,800
$ 1,800
Secured Debt | Asset Backed Notes
Debt Instrument [Line Items]
Repayments of debt
$ 883
$ 1,900
Secured Debt | Asset Backed Notes | Subsequent Event
Debt Instrument [Line Items]
Repayments of debt
$ 137
$ in Millions
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Account receivable, net
$ 22,672
$ 25,429
Prepaid expenses and other
5,490
8,028
Other assets
10,178
10,141
Accounts payable and accrued liabilities
19,297
21,806
Short-term portion of long-term debt
6,651
10,777
Long-term debt
106,190
100,712
Variable Interest Entity, Primary Beneficiary
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Account receivable, net
9,981
10,525
Prepaid expenses and other
1,053
1,180
Other assets
3,584
3,856
Accounts payable and accrued liabilities
10
11
Short-term portion of long-term debt
3,894
5,578
Long-term debt
$ 6,713
$ 6,791
$ in Millions
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable
$ 23,742
$ 26,162
Allowance for credit losses
1,070
0
Accounts receivable, net of allowance
22,672
$ 25,429
Device payment plan agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable
12,017
Allowance for credit losses
584
Accounts receivable, net of allowance
11,433
Wireless service
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable
5,089
Allowance for credit losses
234
Accounts receivable, net of allowance
4,855
Other receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable
6,636
Allowance for credit losses
252
Accounts receivable, net of allowance
$ 6,384
$ in Millions
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement receivables, gross
$ 17,079
$ 19,493
Unamortized imputed interest
(429)
(454)
Device payment plan agreement receivables, at amortized cost
16,650
19,039
Allowance
(795)
(472)
Device payment plan agreement receivables, net
15,855
18,567
Account receivable, net
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement receivables, net
11,433
13,045
Other assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement receivables, net
$ 4,422
$ 5,522
$ in Millions
Financing Receivable, Credit Quality Indicator [Line Items]
Device payment plan agreement receivables, at amortized cost
$ 17,079
$ 19,493
Device payment plan agreement
Financing Receivable, Credit Quality Indicator [Line Items]
2020
6,006
2019
9,217
2018
1,355
Prior to 2018
72
Device payment plan agreement receivables, at amortized cost
16,650
Device payment plan agreement | New customers
Financing Receivable, Credit Quality Indicator [Line Items]
2020
1,042
2019
1,360
2018
169
Prior to 2018
43
Device payment plan agreement receivables, at amortized cost
2,614
Device payment plan agreement | Existing customers
Financing Receivable, Credit Quality Indicator [Line Items]
2020
4,964
2019
7,857
2018
1,186
Prior to 2018
29
Device payment plan agreement receivables, at amortized cost
$ 14,036
$ in Millions
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement receivables, at amortized cost
$ 17,079
$ 19,493
Device payment plan agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement receivables, at amortized cost
16,650
Device payment plan agreement | Unbilled
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current
15,720
Device payment plan agreement | Billed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current
832
Past due
$ 98
$ in Millions
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument fair value
$ 111,631
$ 110,373
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument fair value
137,420
129,200
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument fair value
89,504
86,712
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument fair value
47,916
42,488
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument fair value
$ 0
$ 0
$ in Millions
Interest rate swaps
Derivative [Line Items]
Notional amount
$ 16,996
$ 17,004
Cross currency swaps
Derivative [Line Items]
Notional amount
24,740
23,070
Forward starting interest rate swaps
Derivative [Line Items]
Notional amount
2,000
3,000
Interest rate caps
Derivative [Line Items]
Notional amount
158
679
Foreign exchange forwards
Derivative [Line Items]
Notional amount
$ 960
$ 1,130
$ in Millions
Derivatives, Fair Value [Line Items]
Carrying amount of hedged liabilities
$ 18,438
$ 17,337
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities
$ 1,544
$ 433
3 Months Ended
6 Months Ended
Defined Benefit Plan Disclosure [Line Items]
Amount paid in severance benefits over the period
$ 52,000,000
$ 175,000,000
Post employment benefits liability
443,000,000
443,000,000
Pension
Defined Benefit Plan Disclosure [Line Items]
Remeasurement loss, net
(153,000,000)
$ (182,000,000)
$ 0
(335,000,000)
$ 96,000,000
(Charge) credit due to difference between estimated and actual return on assets
$ (163,000,000)
(150,000,000)
(Credit) charge due to change in discount rate assumption
$ 196,000,000
54,000,000
Pension | Qualified Plan
Defined Benefit Plan Disclosure [Line Items]
Employer discretionary contribution amount
$ 0
$ 300,000,000
6 Months Ended
Stockholders' Equity Note [Abstract]
Stock repurchase program, number of shares authorized to be repurchased (in shares)
100,000,000
Stock repurchase program, remaining shares available for purchase (in shares)
100,000,000
Number of common shares issued from treasury stock (in shares)
2,200,000
6 Months Ended
Segment Reporting [Abstract]
Number of reportable segments
2
$ in Millions3 Months Ended
6 Months Ended
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating revenues
$ 30,447
$ 32,071
$ 62,057
$ 64,199
Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating revenues
28,595
29,763
58,041
59,630
Corporate and other
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating revenues
1,967
2,412
4,239
4,747
Eliminations
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating revenues
$ (115)
$ (104)
$ (223)
$ (178)
$ in Millions3 Months Ended
6 Months Ended
Segment Reporting Information [Line Items]
Operating income
$ 7,361
$ 7,850
$ 13,940
$ 15,559
Other components of net periodic benefit charges
(204)
(203)
(407)
(406)
Loss on spectrum license transaction
0
0
(1,195)
0
Equity in losses of unconsolidated businesses
(13)
(13)
(25)
(19)
Other income (expense), net
(72)
(1,312)
71
(1,017)
Interest expense
(1,089)
(1,215)
(2,123)
(2,425)
Income Before Provision For Income Taxes
6,187
5,310
11,863
12,098
Operating Segments
Segment Reporting Information [Line Items]
Operating income
8,010
8,407
16,246
16,705
Corporate and other
Segment Reporting Information [Line Items]
Operating income
$ (445)
$ (354)
$ (704)
$ (740)
6 Months Ended
Loss Contingencies [Line Items]
Approximate number of federal district court actions alleged for patent infringement | legal_matter
25
Guarantee obligations, term
30 years
Number of agreements | Agreement
4
Payment Guarantee | Maximum
Loss Contingencies [Line Items]
Guarantee obligations, term
18 years
Payment Guarantee | Minimum
Loss Contingencies [Line Items]
Guarantee obligations, term
12 years
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