Equity and Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2020

Stockholders' Equity Note [Abstract]

Equity and Accumulated Other Comprehensive Income


Note 9. Equity and Accumulated Other Comprehensive Income

Equity

Changes in the components of Total equity were as follows:



(dollars in millions, except per share amounts, and shares in thousands)
Three months ended September 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		13,281			13,419

Other		123			(1)
Balance at end of period		13,404			13,418

Retained Earnings
Balance at beginning of period		56,746			47,945


Net income attributable to Verizon		4,357			5,194
Dividends declared ($0.6275, $0.6150 per share)		(2,597)			(2,544)
Other		(33)			—
Balance at end of period		58,473			50,595

Accumulated Other Comprehensive Income (Loss)
Balance at beginning of period attributable to Verizon		(1,274)			1,447


Foreign currency translation adjustments		124			(10)
Unrealized gain (loss) on cash flow hedges		505			(166)
Unrealized gain on marketable securities		2			2
Defined benefit pension and postretirement plans		(169)			(169)
Other comprehensive income (loss)		462			(343)
Balance at end of period attributable to Verizon		(812)			1,104

Treasury Stock
Balance at beginning of period	(153,380)	(6,722)		(155,669)	(6,823)

Employee plans	41	1		20	1


Balance at end of period	(153,339)	(6,721)		(155,649)	(6,822)

Deferred Compensation-ESOPs and Other
Balance at beginning of period		237			165
Restricted stock equity grant		62			32
Amortization		(3)			—
Balance at end of period		296			197

Noncontrolling Interests
Balance at beginning of period		1,416			1,365





Total comprehensive income		147			143
Distributions and other		(102)			(117)
Balance at end of period		1,461			1,391
Total Equity		$	66,530		$	60,312



(dollars in millions, except per share amounts, and shares in thousands)
Nine months ended September 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		(15)				(19)
Balance at end of period		13,404				13,418

Retained Earnings
Balance at beginning of year		53,147				43,542
Opening balance sheet adjustment		(200)		⁽¹⁾		410		⁽²⁾
Adjusted opening balance		52,947				43,952
Net income attributable to Verizon		13,213				14,170
Dividends declared ($1.8575, $1.8200 per share)		(7,687)				(7,527)

Balance at end of period		58,473				50,595

Accumulated Other Comprehensive Income (Loss)
Balance at beginning of year attributable to Verizon		998				2,370


Foreign currency translation adjustments		81				(53)
Unrealized loss on cash flow hedges		(1,391)				(716)
Unrealized gain on marketable securities		7				10
Defined benefit pension and postretirement plans		(507)				(507)
Other comprehensive loss		(1,810)				(1,266)
Balance at end of period attributable to Verizon		(812)				1,104

Treasury Stock
Balance at beginning of year	(155,606)	(6,820)			(159,400)	(6,986)

Employee plans	2,263	99			3,746	164
Shareholder plans	4	—			5	—

Balance at end of period	(153,339)	(6,721)			(155,649)	(6,822)

Deferred Compensation-ESOPs and Other
Balance at beginning of year		222				353
Restricted stock equity grant		234				111
Amortization		(160)				(267)
Balance at end of period		296				197

Noncontrolling Interests
Balance at beginning of year		1,440				1,565
Opening balance sheet adjustment		—				1		⁽²⁾
Adjusted opening balance		1,440				1,566



Total comprehensive income		417				401
Distributions and other		(396)				(576)
Balance at end of period		1,461				1,391
Total Equity		$	66,530			$	60,312

⁽¹⁾ The opening balance sheet adjustment for the nine months ended September 30, 2020 is due to the adoption of Topic 326 on January 1, 2020. See Note 1 for additional information.

⁽²⁾ Opening balance sheet adjustments for the nine months ended September 30, 2019 are due to the adoption of Topic 842 on January 1, 2019. Refer to the consolidated financial statements included in Verizon's Annual Report on Form 10-K for the year ended December 31, 2019 for additional information.

Common Stock

In February 2020, the Verizon Board of Directors authorized a share buyback program to repurchase up to 100 million shares of the Company's common stock. The program will terminate when the aggregate number of shares purchased reaches 100 million or a new share

repurchase plan superseding the current plan is authorized, whichever is sooner. Verizon did not repurchase any shares of Verizon common stock under our authorized share buyback programs during the nine months ended September 30, 2020. At September 30, 2020, the maximum number of shares that could be purchased by or on behalf of Verizon under our share buyback program was 100 million.

Common stock has been used from time to time to satisfy some of the funding requirements of employee and shareowner plans, including 2.3 million common shares issued from Treasury stock during the nine months ended September 30, 2020.

Accumulated Other Comprehensive Income (Loss)

The changes in the balances of Accumulated other comprehensive income (loss) by component were as follows:


(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	$	(584)	$	(816)	$	27	$	2,371	$	998


Other comprehensive income (loss)	81		(832)		7		—		(744)
Amounts reclassified to net income	—		(559)		—		(507)		(1,066)
Net other comprehensive income (loss)	81		(1,391)		7		(507)		(1,810)
Balance at September 30, 2020	$	(503)	$	(2,207)	$	34	$	1,864	$	(812)

The amounts presented above in net other comprehensive income (loss) are net of taxes. The amounts reclassified to net income related to unrealized loss on cash flow hedges in the table above are included in Other expense, net and Interest expense in our condensed consolidated statements of income. See Note 7 for additional information. The amounts reclassified to net income related to defined benefit pension and postretirement plans in the table above are included in Cost of services and Selling, general and administrative expense in our condensed consolidated statements of income. See Note 8 for additional information.