
(dollars in millions)	Principal Redeemed/ Repurchased/ Repaid		Amount Paid ⁽¹⁾
Three Months Ended March 31, 2020
Verizon 4.950% notes due 2047	$	1,475	$	1,475





Three Months Ended March 31, 2020 total	$	1,475	$	1,475


Three Months Ended June 30, 2020
Verizon 5.143% preferred stock due 2020	$	1,650	$	1,650
Verizon floating rate (LIBOR +0.550%) notes due 2020⁽²⁾	1,018		1,018
Verizon 4.600% notes due 2021	920		949
Verizon 3.125% notes due 2022	1,256		1,314
Open market repurchases of various Verizon notes	121		143
Verizon 2.375% notes due 2022 ⁽³⁾	€	935	$	1,199
Verizon 0.500% notes due 2022 ⁽⁴⁾	€	454	$	517
Three Months Ended June 30, 2020 total			6,790
Six Months Ended June 30, 2020 total			$	8,265

⁽³⁾ Principal and premium amount repaid was €980 million. US dollar amount paid includes cash settlement from derivatives entered in connection with the transaction. See Note 7 for information on cross currency swaps.

⁽⁴⁾ Principal and premium amount repaid was €463 million. US dollar amount paid includes cash settlement from derivatives entered in connection with the transaction. See Note 7 for information on cross currency swaps.


(amounts in millions)	Principal Amount Issued		Net Proceeds ⁽¹⁾
Three Months Ended March 31, 2020
Verizon 3.600% notes due 2060	$	2,385	$	2,369
Verizon 3.000% notes due 2027	750		747
Verizon 3.150% notes due 2030	1,500		1,489
Verizon 4.000% notes due 2050	1,250		1,241
Three Months Ended March 31, 2020 total	$	5,885	$	5,846


Three Months Ended June 30, 2020
Verizon 2.500% due 2030 ⁽²⁾	C$	1,000	$	705
Verizon 3.625% due 2050 ⁽²⁾	C$	300	$	209
Verizon 1.300% notes due 2033 ⁽²⁾	€	1,350	$	1,464
Verizon 1.850% notes due 2040 ⁽²⁾	€	800	$	869


Three Months Ended June 30, 2020 total			3,247
Six Months Ended June 30, 2020 total			$	9,093

In April 2020, we issued $3.5 billion in commercial paper. During the three months ended June 30, 2020, we repaid $2.5 billion of commercial paper. As of June 30, 2020, we had $1.0 billion of commercial paper outstanding. In July 2020, we repaid $460 million of commercial paper.

As of June 30, 2020, the carrying value of our asset-backed debt was $10.6 billion. Our asset-backed debt includes Asset-Backed Notes (ABS Notes) issued to third-party investors (Investors) and loans (ABS Financing Facilities) received from banks and their conduit facilities (collectively, the Banks). Our consolidated asset-backed debt bankruptcy remote legal entities (each, an ABS Entity or collectively, the ABS Entities) issue the debt or are otherwise party to the transaction documentation in connection with our asset-backed debt transactions. Under the terms of our asset-backed debt, Cellco Partnership (Cellco) and certain other affiliates of Verizon (collectively, the Originators) transfer device payment plan agreement receivables to one of the ABS Entities, which in turn transfers such receivables to another ABS Entity that issues the debt. Verizon entities retain the equity interests in the ABS Entities, which represent the rights to all funds not needed to make required payments on the asset-backed debt and other related payments and expenses.

Our asset-backed debt is secured by the transferred device payment plan agreement receivables and future collections on such receivables. The device payment plan agreement receivables transferred to the ABS Entities and related assets, consisting primarily of restricted cash, will only be available for payment of asset-backed debt and expenses related thereto, payments to the Originators in respect of additional transfers of device payment plan agreement receivables, and other obligations arising from our asset-backed debt transactions, and will not be available to pay other obligations or claims of Verizon’s creditors until the associated asset-backed debt and other obligations are satisfied. The Investors or Banks, as applicable, which hold our asset-backed debt have legal recourse to the assets securing the debt, but do not have any recourse to Verizon with respect to the payment of principal and interest on the debt. Under a parent support agreement, Verizon has agreed to guarantee certain of the payment obligations of Cellco and the Originators to the ABS Entities.

Cash collections on the device payment plan agreement receivables collateralizing asset-backed debt securities are required at certain specified times to be placed into segregated accounts. Deposits to the segregated accounts are considered restricted cash and are included in Prepaid expenses and other and Other assets in our condensed consolidated balance sheets.

Proceeds from our asset-backed debt transactions are reflected in Cash flows from financing activities in our condensed consolidated statements of cash flows. The asset-backed debt issued and the assets securing this debt are included in our condensed consolidated balance sheets.

As mentioned above, the holders of our asset-backed debt do not have any recourse to Verizon with respect to the payment of principal and interest on the debt. However, if an early amortization of our asset-backed debt occurs, including as a result of increased customer delinquencies or losses relating to COVID-19, all collections on the securitized device payment plan agreement receivables would be used to pay principal and interest on the asset-backed debt, and our financing cash flow requirements would increase for the twelve months immediately following an early amortization event.


(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	LIBOR + 0.270	⁽¹⁾	2.46	100
B Junior class notes	1.980		3.18	98
C Junior class notes	2.060		3.36	76








Total				$	1,600

Under the terms of each series of ABS Notes, there is a two-year revolving period during which we may transfer additional receivables to the ABS Entity. During the three and six months ended June 30, 2020, we made aggregate principal repayments of $883 million and $1.9 billion, respectively, on ABS Notes that have entered the amortization period.

In May 2020, we amended and restated our outstanding ABS financing facility originally entered into in 2016, and previously amended and restated in 2019, with a number of financial institutions (ABS Financing Facility). Under the terms of the ABS Financing Facility, the financial institutions make advances under asset-backed loans backed by device payment plan agreement receivables of both consumer and business customers. One loan agreement is outstanding in connection with the ABS Financing Facility, and such loan agreement was amended and restated in May 2020. The loan agreement has a final maturity date in May 2024 and bears interest at floating rates. There is a one year revolving period until May 2021, which may be extended with the approval of the financial institutions. Under the loan agreement, we have the right to prepay all or a portion of the advances at any time without penalty, but in certain cases, with breakage costs. Subject to

certain conditions, we may also remove receivables from the ABS Entity. In January 2020, we prepaid $1.3 billion of the loan under the loan agreement. In March 2020, we borrowed an additional $1.3 billion under the loan agreement. In June 2020, we prepaid $1.5 billion of the loan under the loan agreement. The aggregate outstanding balance under the ABS Financing Facility was $1.8 billion as of June 30, 2020.

The ABS Entities meet the definition of a VIE for which we have determined that we are the primary beneficiary as we have both the power to direct the activities of the entity that most significantly impact the entity’s performance and the obligation to absorb losses or the right to receive benefits of the entity. Therefore, the assets, liabilities and activities of the ABS Entities are consolidated in our financial results and are included in amounts presented on the face of our condensed consolidated balance sheets.


	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
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

⁽¹⁾ The revolving credit facility does not require us to comply with financial covenants or maintain specified credit ratings, and it permits us to borrow even if our business has incurred a material adverse change. The revolving credit facility provides for the issuance of letters of credit.

⁽²⁾ These credit facilities are used to finance equipment-related purchases. Borrowings under certain of these facilities amortize semi-annually in equal installments up to the applicable maturity dates. Maturities reflect maturity dates of principal amounts outstanding.

During the six months ended June 30, 2020 and 2019, we financed, primarily through vendor financing arrangements, the purchase of approximately $673 million and $221 million, respectively, of long-lived assets consisting primarily of network equipment. At June 30, 2020 and December 31, 2019, $1.3 billion and $1.1 billion, respectively, relating to these financing arrangements, including those entered into in prior years and liabilities assumed through acquisitions, remained outstanding. These purchases are non-cash financing activities and therefore are not reflected within Capital expenditures in our condensed consolidated statements of cash flows.

We guarantee the debentures of our operating telephone company subsidiaries. As of June 30, 2020, $765 million aggregate principal amount of these obligations remained outstanding. Each guarantee will remain in place for the life of the obligation unless terminated pursuant to its terms, including the operating telephone company no longer being a wholly-owned subsidiary of Verizon.

We also guarantee the debt obligations of GTE LLC as successor in interest to GTE Corporation that were issued and outstanding prior to July 1, 2003. As of June 30, 2020, $391 million aggregate principal amount of these obligations remained outstanding.