Segment Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Information

Note 13. Segment Information

Reportable Segments

We have two reportable segments that we operate and manage as strategic business units - Consumer and Business. We measure and evaluate our reportable segments based on segment operating income, consistent with the chief operating decision maker’s assessment of segment performance.

Our segments and their principal activities consist of the following:

Segment	Description
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. We also provide fixed wireless access (FWA) broadband through our wireless networks. 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 through 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 also provide FWA broadband through our wireless networks. 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.

Our Consumer segment's wireless and wireline products and services are available to our retail customers, as well as resellers that purchase wireless network access from us on a wholesale basis. Our Business segment’s wireless and wireline products and services are organized by the primary customer groups targeted by these offerings: Small and Medium Business, Global Enterprise, Public Sector and Other, and Wholesale.

Corporate and other primarily includes insurance captives, investments in unconsolidated businesses and development stage businesses that support our strategic initiatives, as well as unallocated corporate expenses, certain pension and other employee benefit related costs and interest and financing expenses. Corporate and other also includes the historical results of divested businesses including Verizon Media, and other adjustments and gains and losses that are not allocated in assessing segment performance due to their nature. Although such transactions are excluded from the business segment results, they are included in reported consolidated earnings. Gains and losses from these transactions that are not individually significant are included in segment results as these items are included in the chief operating decision maker’s assessment of segment performance.

We completed the sale of Verizon Media on September 1, 2021. See Note 3 for additional information on the sale of Verizon Media.

The reconciliation of segment operating revenues and expenses to consolidated operating revenues and expenses below includes the effects of special items that the chief operating decision maker does not consider in assessing segment performance, primarily because of their nature.

The following tables provides operating financial information for our two reportable segments:

	(dollars in millions)
2021	Consumer		Business		Total  Reportable Segments
External Operating Revenues
Service	$	67,723	$	—	$	67,723
Wireless equipment	19,781		—		19,781
Other	7,568		—		7,568
Small and Medium Business	—		11,751		11,751
Global Enterprise	—		10,218		10,218
Public Sector and Other	—		6,324		6,324
Wholesale	—		2,680		2,680
Intersegment revenues	228		69		297
Total Operating Revenues(1)	95,300		31,042		126,342
Cost of services	16,581		10,653		27,234
Cost of wireless equipment	20,523		4,544		25,067
Selling, general and administrative expense	16,562		8,324		24,886
Depreciation and amortization expense	11,679		4,084		15,763
Total Operating Expenses	65,345		27,605		92,950
Operating Income	$	29,955	$	3,437	$	33,392

(1) Service and other revenues and Wireless equipment revenues included in our Business segment amounted to approximately $27.7 billion and $3.4 billion, respectively, for the year ended December 31, 2021.

	(dollars in millions)
2020	Consumer		Business		Total  Reportable Segments
External Operating Revenues
Service	$	64,884	$	—	$	64,884
Wireless equipment	15,492		—		15,492
Other	7,916		—		7,916
Small and Medium Business	—		11,112		11,112
Global Enterprise	—		10,405		10,405
Public Sector and Other	—		6,362		6,362
Wholesale	—		3,013		3,013
Intersegment revenues	241		70		311
Total Operating Revenues(1)	88,533		30,962		119,495
Cost of services	15,610		10,659		26,269
Cost of wireless equipment	15,736		4,064		19,800
Selling, general and administrative expense	16,936		8,380		25,316
Depreciation and amortization expense	11,395		4,086		15,481
Total Operating Expenses	59,677		27,189		86,866
Operating Income	$	28,856	$	3,773	$	32,629

(1) Service and other revenues and Wireless equipment revenues included in our Business segment amounted to approximately $28.1 billion and $2.9 billion, respectively, for the year ended December 31, 2020.

	(dollars in millions)
2019	Consumer		Business		Total  Reportable Segments
External Operating Revenues
Service	$	65,384	$	—	$	65,384
Wireless equipment	18,048		—		18,048
Other	7,384		—		7,384
Small and Medium Business	—		11,447		11,447
Global Enterprise	—		10,815		10,815
Public Sector and Other	—		5,922		5,922
Wholesale	—		3,198		3,198
Intersegment revenues	240		61		301
Total Operating Revenues(1)	91,056		31,443		122,499
Cost of services	15,884		10,655		26,539
Cost of wireless equipment	18,219		4,733		22,952
Selling, general and administrative expense	16,639		8,188		24,827
Depreciation and amortization expense	11,353		4,105		15,458
Total Operating Expenses	62,095		27,681		89,776
Operating Income	$	28,961	$	3,762	$	32,723

(1) Service and other revenues and Wireless equipment revenues included in our Business segment amounted to approximately $27.9 billion and $3.5 billion, respectively, for the year ended December 31, 2019.

The following table provides Fios revenues for our two reportable segments:

	(dollars in millions)
Years Ended December 31,	2021		2020		2019
Consumer	$	11,558	$	11,082	$	11,175
Business	1,136		1,057		967
Total Fios revenue	$	12,694	$	12,139	$	12,142

The following table provides Wireless service revenue for our reportable segments and includes intersegment activity:

	(dollars in millions)
Years Ended December 31,	2021		2020		2019
Consumer	$	56,103	$	53,605	$	53,791
Business	12,366		11,805		11,188
Total Wireless service revenue	$	68,469	$	65,410	$	64,979

Reconciliation to Consolidated Financial Information

A reconciliation of the reportable segment operating revenues to consolidated operating revenues is as follows:

	(dollars in millions)
Years Ended December 31,	2021		2020		2019
Operating Revenues
Total reportable segments	$	126,342	$	119,495	$	122,499
Corporate and other	7,722		9,334		9,812
Reconciling items:
Eliminations	(451)		(537)		(443)
Consolidated Operating Revenues	$	133,613	$	128,292	$	131,868

A reconciliation of the total reportable segments’ operating income to consolidated income before provision for income taxes is as follows:

	(dollars in millions)
Years Ended December 31,	2021		2020		2019
Operating Income
Total reportable segments	$	33,392	$	32,629	$	32,723
Corporate and other	(449)		(1,472)		(1,403)
Reconciling items:
Severance charges	(209)		(221)		(204)
Other components of net periodic pension and benefit charges (Note 11)	(769)		(817)		(813)
Loss on spectrum licenses (Note 3)	(223)		(1,195)		—
Impairment charges	—		—		(186)
Net gain (loss) from dispositions of assets and businesses	706		(126)		261
Consolidated operating income	32,448		28,798		30,378
Equity in earnings (losses) of unconsolidated businesses	145		(45)		(15)
Other income (expense), net	312		(539)		(2,900)
Interest expense	(3,485)		(4,247)		(4,730)
Income Before Provision For Income Taxes	$	29,420	$	23,967	$	22,733

No single customer accounted for more than 10% of our total operating revenues during the years ended December 31, 2021, 2020 and 2019. International operating revenues were not significant during the years ended December 31, 2021, 2020 and 2019. As of December 31, 2021 and 2020, international long-lived assets were not significant.

The chief operating decision maker does not review disaggregated assets on a segment basis; therefore, such information is not presented. Depreciation included in the measure of segment profitability is primarily allocated based on proportional usage.