10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

OR

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from              to

Commission file number: 1-8606

Verizon Communications Inc.

(Exact name of registrant as specified in its charter)

Delaware	23-2259884
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1095 Avenue of the Americas		10036
New York,	New York
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (212) 395-1000

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, par value $0.10	VZ	New York Stock Exchange
Common Stock, par value $0.10	VZ	The NASDAQ Global Select Market
1.625% Notes due 2024	VZ 24B	New York Stock Exchange
4.073% Notes due 2024	VZ 24C	New York Stock Exchange
0.875% Notes due 2025	VZ 25	New York Stock Exchange
3.25% Notes due 2026	VZ 26	New York Stock Exchange
1.375% Notes due 2026	VZ 26B	New York Stock Exchange
0.875% Notes due 2027	VZ 27E	New York Stock Exchange
1.375% Notes due 2028	VZ 28	New York Stock Exchange
1.125% Notes due 2028	VZ 28A	New York Stock Exchange
2.350% Fixed Rate Notes due 2028	VZ 28C	New York Stock Exchange
1.875% Notes due 2029	VZ 29B	New York Stock Exchange
0.375% Notes due 2029	VZ 29D	New York Stock Exchange
1.250% Notes due 2030	VZ 30	New York Stock Exchange
1.875% Notes due 2030	VZ 30A	New York Stock Exchange
2.625% Notes due 2031	VZ 31	New York Stock Exchange
2.500% Notes due 2031	VZ 31A	New York Stock Exchange
3.000% Fixed Rate Notes due 2031	VZ 31D	New York Stock Exchange
0.875% Notes due 2032	VZ 32	New York Stock Exchange
0.750% Notes due 2032	VZ 32A	New York Stock Exchange
1.300% Notes due 2033	VZ 33B	New York Stock Exchange
4.75% Notes due 2034	VZ 34	New York Stock Exchange

Securities registered pursuant to Section 12(b) of the Act (continued):

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
3.125% Notes due 2035	VZ 35	New York Stock Exchange
1.125% Notes due 2035	VZ 35A	New York Stock Exchange
3.375% Notes due 2036	VZ 36A	New York Stock Exchange
2.875% Notes due 2038	VZ 38B	New York Stock Exchange
1.875% Notes due 2038	VZ 38C	New York Stock Exchange
1.500% Notes due 2039	VZ 39C	New York Stock Exchange
3.50% Fixed Rate Notes due 2039	VZ 39D	New York Stock Exchange
1.850% Notes due 2040	VZ 40	New York Stock Exchange
3.850% Fixed Rate Notes due 2041	VZ 41C	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   ☒  Yes   ☐  No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   ☒  Yes   ☐  No

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.
	Large accelerated filer	☒	Accelerated filer	☐
	Non-accelerated filer	☐	Smaller reporting company	☐
			Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   ☐  Yes   ☒  No

At September 30, 2022, 4,199,817,447 shares of the registrant’s common stock were outstanding, after deducting 91,616,199 shares held in treasury.

TABLE OF CONTENTS

Item No.		Page
PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Statements of Income	4
	Three and nine months ended September 30, 2022 and 2021
	Condensed Consolidated Statements of Comprehensive Income	5
	Three and nine months ended September 30, 2022 and 2021
	Condensed Consolidated Balance Sheets	6
	At September 30, 2022 and December 31, 2021
	Condensed Consolidated Statements of Cash Flows	7
	Nine months ended September 30, 2022 and 2021
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	34
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	59
Item 4.	Controls and Procedures	59
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	60
Item 1A.	Risk Factors	60
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	60
Item 6.	Exhibits	61
Signature		62
Certifications

Part I - Financial Information

Item 1. Financial Statements (Unaudited)

Condensed Consolidated Statements of Income

Verizon Communications Inc. and Subsidiaries

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions, except per share amounts) (unaudited)	2022		2021		2022		2021
Operating Revenues
Service revenues and other	$	27,666	$	27,565	$	81,999	$	83,709
Wireless equipment revenues	6,575		5,350		19,585		15,837
Total Operating Revenues	34,241		32,915		101,584		99,546
Operating Expenses
Cost of services (exclusive of items shown below)	7,293		7,855		21,452		24,199
Cost of wireless equipment	7,308		5,673		21,919		17,106
Selling, general and administrative expense	7,422		6,521		22,090		21,246
Depreciation and amortization expense	4,324		3,961		12,881		12,155
Total Operating Expenses	26,347		24,010		78,342		74,706
Operating Income	7,894		8,905		23,242		24,840
Equity in earnings of unconsolidated businesses	2		1		40		10
Other income (expense), net	(439)		269		(1,314)		1,172
Interest expense	(937)		(801)		(2,508)		(2,746)
Income Before Provision For Income Taxes	6,520		8,374		19,460		23,276
Provision for income taxes	(1,496)		(1,820)		(4,410)		(5,395)
Net Income	$	5,024	$	6,554	$	15,050	$	17,881
Net income attributable to noncontrolling interests	$	124	$	147	$	371	$	429
Net income attributable to Verizon	4,900		6,407		14,679		17,452
Net Income	$	5,024	$	6,554	$	15,050	$	17,881
Basic Earnings Per Common Share
Net income attributable to Verizon	$	1.17	$	1.55	$	3.49	$	4.21
Weighted-average shares outstanding (in millions)	4,202		4,142		4,201		4,141
Diluted Earnings Per Common Share
Net income attributable to Verizon	$	1.17	$	1.55	$	3.49	$	4.21
Weighted-average shares outstanding (in millions)	4,204		4,144		4,203		4,143

See Notes to Condensed Consolidated Financial Statements

4

Condensed Consolidated Statements of Comprehensive Income

Verizon Communications Inc. and Subsidiaries

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions) (unaudited)	2022		2021		2022		2021
Net Income	$	5,024	$	6,554	$	15,050	$	17,881
Other Comprehensive Income (Loss), Net of Tax (Expense) Benefit
Foreign currency translation adjustments, net of tax of $(13), $(6), $(30) and $(13)	(120)		(146)		(285)		(126)
Unrealized gain (loss) on cash flow hedges, net of tax of $(6), $61, $(97) and $15	22		(174)		301		(42)
Unrealized gain (loss) on fair value hedges, net of tax of $(30), $0, $58 and $0	105		—		(167)		—
Unrealized loss on marketable securities, net of tax of $3, $1, $10 and $2	(8)		—		(32)		(5)
Defined benefit pension and postretirement plans, net of tax of $129, $51, $201 and $154	(379)		(155)		(590)		(465)
Other comprehensive loss attributable to Verizon	(380)		(475)		(773)		(638)
Total Comprehensive Income	$	4,644	$	6,079	$	14,277	$	17,243
Comprehensive income attributable to noncontrolling interests	$	124	$	147	$	371	$	429
Comprehensive income attributable to Verizon	4,520		5,932		13,906		16,814
Total Comprehensive Income	$	4,644	$	6,079	$	14,277	$	17,243

See Notes to Condensed Consolidated Financial Statements

5

Condensed Consolidated Balance Sheets

Verizon Communications Inc. and Subsidiaries

	At September 30,		At December 31,
(dollars in millions, except per share amounts) (unaudited)	2022		2021
Assets
Current assets
Cash and cash equivalents	$	2,082	$	2,921
Accounts receivable	24,475		24,742
Less Allowance for credit losses	805		896
Accounts receivable, net	23,670		23,846
Inventories	3,133		3,055
Prepaid expenses and other	10,861		6,906
Total current assets	39,746		36,728
Property, plant and equipment	300,870		289,897
Less Accumulated depreciation	197,866		190,201
Property, plant and equipment, net	103,004		99,696
Investments in unconsolidated businesses	1,083		1,061
Wireless licenses	149,292		147,619
Goodwill	28,548		28,603
Other intangible assets, net	11,196		11,677
Operating lease right-of-use assets	26,588		27,883
Other assets	15,633		13,329
Total assets	$	375,090	$	366,596
Liabilities and Equity
Current liabilities
Debt maturing within one year	$	14,995	$	7,443
Accounts payable and accrued liabilities	22,235		24,833
Current operating lease liabilities	3,961		3,859
Other current liabilities	11,950		11,025
Total current liabilities	53,141		47,160
Long-term debt	132,912		143,425
Employee benefit obligations	15,912		15,410
Deferred income taxes	42,094		40,685
Non-current operating lease liabilities	22,175		23,203
Other liabilities	20,073		13,513
Total long-term liabilities	233,166		236,236
Commitments and Contingencies (Note 11)
Equity
Series preferred stock ($0.10 par value; 250,000,000 shares authorized; none issued)	—		—
Common stock ($0.10 par value; 6,250,000,000 shares authorized in each period; 4,291,433,646 shares issued in each period)	429		429
Additional paid in capital	13,467		13,861
Retained earnings	78,545		71,993
Accumulated other comprehensive loss	(1,700)		(927)
Common stock in treasury, at cost (91,616,199 and 93,634,725 shares outstanding)	(4,015)		(4,104)
Deferred compensation – employee stock ownership plans (ESOPs) and other	742		538
Noncontrolling interests	1,315		1,410
Total equity	88,783		83,200
Total liabilities and equity	$	375,090	$	366,596

See Notes to Condensed Consolidated Financial Statements

6

Condensed Consolidated Statements of Cash Flows

Verizon Communications Inc. and Subsidiaries

	Nine Months Ended
	September 30,
(dollars in millions) (unaudited)	2022		2021
Cash Flows from Operating Activities
Net Income	$	15,050	$	17,881
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	12,881		12,155
Employee retirement benefits	479		(1,928)
Deferred income taxes	1,595		2,970
Provision for expected credit losses	1,048		604
Equity in losses (earnings) of unconsolidated businesses, net of dividends received	(13)		32
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses	(458)		603
Other, net	(2,383)		(1,155)
Net cash provided by operating activities	28,199		31,162
Cash Flows from Investing Activities
Capital expenditures (including capitalized software)	(15,811)		(13,861)
Cash received (paid) related to acquisitions of businesses, net of cash acquired	248		(459)
Acquisitions of wireless licenses	(2,890)		(47,027)
Collateral payments related to derivative contracts, net of repayments	(4,857)		(15)
Proceeds from disposition of business	33		4,122
Other, net	(43)		222
Net cash used in investing activities	(23,320)		(57,018)
Cash Flows from Financing Activities
Proceeds from long-term borrowings	4,605		32,482
Proceeds from asset-backed long-term borrowings	5,939		2,695
Net proceeds from short-term commercial paper	4,514		—
Repayments of long-term borrowings and finance lease obligations	(8,001)		(7,904)
Repayments of asset-backed long-term borrowings	(3,647)		(3,887)
Dividends paid	(8,066)		(7,797)
Other, net	(797)		(2,120)
Net cash provided by (used in) financing activities	(5,453)		13,469
Decrease in cash, cash equivalents and restricted cash	(574)		(12,387)
Cash, cash equivalents and restricted cash, beginning of period	4,161		23,498
Cash, cash equivalents and restricted cash, end of period (Note 1)	$	3,587	$	11,111

See Notes to Condensed Consolidated Financial Statements

7

Notes to Condensed Consolidated Financial Statements (Unaudited)

Verizon Communications Inc. and Subsidiaries

Note 1. 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, 2021. 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.

Certain amounts have been reclassified to conform to the current period’s presentation.

Earnings Per Common Share

There were a total of approximately 1.6 million and 1.5 million outstanding dilutive securities, primarily consisting of restricted stock units, included in the computation of diluted earnings per common share for the three and nine months ended September 30, 2022, respectively. There were a total of approximately 1.6 million and 1.7 million outstanding dilutive securities, primarily consisting of restricted stock units, included in the computation of diluted earnings per common share for the three and nine months ended September 30, 2021, respectively.

Cash, Cash Equivalents and Restricted Cash

We consider all highly liquid investments with an original maturity of 90 days or less when purchased to be cash equivalents. Cash equivalents are stated at cost, which approximates quoted market value and includes amounts held in money market funds.

Cash collections on the device payment plan agreement receivables collateralizing our 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.

Cash, cash equivalents and restricted cash are included in the following line items in the condensed consolidated balance sheets:

	At September 30,		At December 31,		Increase / (Decrease)
(dollars in millions)	2022		2021
Cash and cash equivalents	$	2,082	$	2,921	$	(839)
Restricted cash:
Prepaid expenses and other	1,355		1,094		261
Other assets	150		146		4
Cash, cash equivalents and restricted cash	$	3,587	$	4,161	$	(574)

Note 2. Revenues and Contract Costs

We earn revenue from contracts with customers, primarily through the provision of telecommunications and other services and through the sale of wireless equipment.

Revenue by Category

We have two reportable segments that we operate and manage as strategic business units, Consumer and Business. Revenue is disaggregated by products and services within Consumer, and customer groups (Small and Medium Business, Global Enterprise, Public Sector and Other, and Wholesale) within Business. See Note 10 for additional information on revenue by segment. Corporate and other primarily includes insurance captive revenues.

We also earn revenues that are not accounted for under Accounting Standards Update (ASU) 2014-09, "Revenue from Contracts with Customers" (Topic 606) from leasing arrangements (such as those for towers and equipment), captive reinsurance arrangements primarily related to wireless device insurance and the interest on equipment financed under a device payment plan agreement when sold to the customer by an authorized agent. As allowed by the practical expedient within ASU 2016-02, "Leases" (Topic 842), we have elected to combine the lease and non-lease components for those arrangements of customer premise equipment where we are the lessor as components accounted for under Topic 606. During the three and nine months ended September 30, 2022, revenues from arrangements that were not accounted for under Topic 606 were approximately $774 million and $2.4 billion, respectively. During the three and nine months ended September 30, 2021, revenues from arrangements that were not accounted for under Topic 606 were approximately $803 million and $2.3 billion, respectively.

8

Remaining Performance Obligations

When allocating the total contract transaction price to identified performance obligations, a portion of the total transaction price may relate to service performance obligations which were not satisfied or are partially satisfied as of the end of the reporting period. Below we disclose information relating to these unsatisfied performance obligations. We apply the practical expedient available under Topic 606 that provides the option to exclude the expected revenues arising from unsatisfied performance obligations related to contracts that have an original expected duration of one year or less. This situation primarily arises with respect to certain month-to-month service contracts. At September 30, 2022, month-to-month service contracts represented approximately 94% of our wireless postpaid contracts and approximately 90% of our wireline Consumer and Small and Medium Business contracts, compared to September 30, 2021, for which month-to-month service contracts represented approximately 93% of our wireless postpaid contracts and 83% of our wireline Consumer and Small and Medium Business contracts.

Additionally, certain contracts provide customers the option to purchase additional services. The fees related to these additional services are recognized when the customer exercises the option (typically on a month-to-month basis).

Contracts for wireless services, with or without promotional credits that require maintenance of service, are generally either month-to-month and cancellable at any time, are considered to contain terms ranging from greater than one month to up to thirty-six months (typically under a device payment plan), or contain terms ranging from greater than one month to up to twenty-four months (typically under a fixed-term plan). Additionally, customers may incur charges based on usage or additional optional services purchased in conjunction with entering into a contract that can be cancelled at any time and therefore are not included in the transaction price. The transaction price allocated to service performance obligations, which are not satisfied or are partially satisfied as of the end of the reporting period, are generally related to contracts that are not accounted for as month-to-month contracts.

Our Consumer group customers also include traditional wholesale resellers that purchase and resell wireless service under their own brands to their respective customers. 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 customer contracts for wireline services are generally month-to-month; however, they may have a service term of two years or shorter than twelve months. Certain contracts with Business customers for wireline services extend into future periods, contain fixed monthly fees and usage-based fees, and can include annual commitments in each year of the contract or commitments over the entire specified contract term; however, a significant number of contracts for wireline services with our Business customers have a contract term that is twelve months or less.

Additionally, there are certain contracts with Business customers for wireline and telematics services that have a contractual minimum fee over the total contract term. We cannot predict the time period when revenue will be recognized related to those contracts; thus, they are excluded from the time bands below. These contracts have varying terms spanning over approximately nine years ending in April 2032 and have aggregate contract minimum payments totaling $1.8 billion.

At September 30, 2022, the transaction price related to unsatisfied performance obligations that are expected to be recognized for the remainder of 2022, 2023 and thereafter was $5.9 billion, $18.3 billion and $15.2 billion, respectively. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations and changes in the timing and scope of contracts, arising from contract modifications.

Accounts Receivable and Contract Balances

The timing of revenue recognition may differ from the time of billing to our customers. Receivables presented in our condensed consolidated balance sheets represent an unconditional right to consideration. Contract balances represent amounts from an arrangement when either Verizon has performed, by transferring goods or services to the customer in advance of receiving all or partial consideration for such goods and services from the customer, or the customer has made payment to Verizon in advance of obtaining control of the goods and/or services promised to the customer in the contract.

Contract assets primarily relate to our rights to consideration for goods or services provided to customers but for which we do not have an unconditional right at the reporting date. Under a fixed-term plan, total contract revenue is allocated between wireless service and equipment revenues. In conjunction with these arrangements, a contract asset is created, which represents the difference between the amount of equipment revenue recognized upon sale and the amount of consideration received from the customer when the performance obligation related to the transfer of control of the equipment is satisfied. The contract asset is reclassified to accounts receivable as wireless services are provided and billed. We have the right to bill the customer as service is provided over time, which results in our right to the payment being unconditional. The contract asset balances are presented in our condensed consolidated balance sheets as Prepaid expenses and other and Other assets. We recognize the allowance for credit losses at inception and reassess quarterly based on management’s expectation of the asset’s collectability.

Contract liabilities arise when we bill our customers and receive consideration in advance of providing the goods or services promised in the contract. We typically bill service one month in advance, which is the primary component of the contract liability

9

balance. Contract liabilities are recognized as revenue when services are provided to the customer. The contract liability balances are presented in our condensed consolidated balance sheets as Other current liabilities and Other liabilities.

The following table presents information about receivables from contracts with customers:

	At September 30,		At January 1,		At September 30,		At January 1,
(dollars in millions)	2022		2022		2021		2021
Receivables(1)	$	10,556	$	10,758	$	10,088	$	12,029
Device payment plan agreement receivables(2)	14,680		12,888		11,178		10,358

(1)Balances do not include receivables related to the following contracts: leasing arrangements (such as those for towers and equipment), captive reinsurance arrangements primarily related to wireless device insurance and the interest on equipment financed under a device payment plan agreement when sold to the customer by an authorized agent.

(2)Included in device payment plan agreement receivables presented in Note 6. Receivables derived from the sale of equipment on a device payment plan through an authorized agent are excluded.

The following table presents information about contract balances:

	At September 30,		At January 1,		At September 30,		At January 1,
(dollars in millions)	2022		2022		2021		2021
Contract asset	$	869	$	934	$	878	$	937
Contract liability(1)	7,954		7,229		6,034		5,598

(1) Revenue recognized related to contract liabilities existing at January 1, 2022 were $167 million and $4.8 billion for the three and nine months ended September 30, 2022, respectively. Revenue recognized related to contract liabilities existing at January 1, 2021 were $161 million and $4.2 billion for the three and nine months ended September 30, 2021, respectively.

The balances of contract assets and contract liabilities recorded in our condensed consolidated balance sheets were as follows:

	At September 30,		At December 31,
(dollars in millions)	2022		2021
Assets
Prepaid expenses and other	$	692	$	739
Other assets	177		195
Total	$	869	$	934
Liabilities
Other current liabilities	$	6,475	$	6,053
Other liabilities	1,479		1,176
Total	$	7,954	$	7,229

Contract Costs

Topic 606 requires the recognition of an asset for incremental costs to obtain a customer contract, which are then amortized to expense over the respective periods of expected benefit. We recognize an asset for incremental commission expenses paid to internal and external sales personnel and agents in conjunction with obtaining customer contracts. We only defer these costs when we have determined the commissions are incremental costs that would not have been incurred absent the customer contract and are expected to be recoverable. Costs to obtain a contract are amortized and recorded ratably as commission expense over the period representing the transfer of goods or services to which the assets relate. Costs to obtain wireless contracts are amortized over both of our Consumer and Business customers' estimated upgrade cycles, as such costs are typically incurred each time a customer upgrades. Costs to obtain wireline contracts are amortized as expense over the estimated customer relationship period for our Consumer customers. Incremental costs to obtain wireline contracts for our Business customers are insignificant. Costs to obtain contracts are recorded in Selling, general and administrative expense.

We also defer costs incurred to fulfill contracts that: (1) relate directly to the contract; (2) are expected to generate resources that will be used to satisfy our performance obligation under the contract; and (3) are expected to be recovered through revenue generated under the contract. Contract fulfillment costs are expensed as we satisfy our performance obligations and recorded in Cost of services. These costs principally relate to direct costs that enhance our wireline business resources, such as costs incurred to install circuits.

We determine the amortization periods for our costs incurred to obtain or fulfill a customer contract at a portfolio level due to the similarities within these customer contract portfolios.

Other costs, such as general costs or costs related to past performance obligations, are expensed as incurred.

10

Collectively, costs to obtain a contract and costs to fulfill a contract are referred to as deferred contract costs, and amortized over a two-to six-year period. Deferred contract costs are classified as current or non-current within Prepaid expenses and other and Other assets, respectively.

The balances of deferred contract costs included in our condensed consolidated balance sheets were as follows:

	At September 30,		At December 31,
(dollars in millions)	2022		2021
Assets
Prepaid expenses and other	$	2,572	$	2,432
Other assets	2,362		2,259
Total	$	4,934	$	4,691

For the three and nine months ended September 30, 2022, we recognized expense of $735 million and $2.2 billion, respectively, associated with the amortization of deferred contract costs, primarily within Selling, general and administrative expense in our condensed consolidated statements of income. For the three and nine months ended September 30, 2021, we recognized expense of $751 million and $2.3 billion, respectively, associated with the amortization of deferred contract costs, primarily within Selling, general and administrative expense in our condensed consolidated statements of income.

We assess our deferred contract costs for impairment on a quarterly basis. We recognize an impairment charge to the extent the carrying amount of a deferred cost exceeds the remaining amount of consideration we expect to receive in exchange for the goods and services related to the cost, less the expected costs related directly to providing those goods and services that have not yet been recognized as expenses. There have been no impairment charges recognized for the three and nine months ended September 30, 2022 or September 30, 2021.

Note 3. Acquisitions and Divestitures

Spectrum License Transactions

In February 2021, the Federal Communications Commission (FCC) concluded Auction 107 for C-Band wireless spectrum. Verizon paid $45.5 billion for the licenses it won, of which $44.6 billion was paid in the first quarter of 2021. In accordance with the rules applicable to the auction, Verizon is required to make payments for our allocable share of clearing costs incurred by, and incentive payments due to, the incumbent license holders associated with the auction, which are estimated to be $7.7 billion. During the year ended December 31, 2021, we made payments of $1.3 billion primarily related to certain obligations for projected clearing costs. During the three and nine months ended September 30, 2022, we made additional payments of $196 million and $1.6 billion, respectively, for obligations related to accelerated clearing incentives and clearing costs, of which $1.4 billion were accrued as of December 31, 2021. We expect to continue to make payments related to clearing cost and incentive payment obligations through 2024. These payments are dependent on the incumbent license holders accelerated clearing of the spectrum for Verizon’s use and, therefore, the final timing and amounts could differ based on the incumbent holders’ execution of their clearing process. In accordance with the FCC order, the clearing must be completed by December 2025. The carrying value of the wireless spectrum won in Auction 107 consists of all payments required to participate and purchase licenses in the auction, including Verizon’s allocable share of clearing costs incurred by, and incentive payments due to, the incumbent license holders associated with the auction that we are obligated to pay in order to acquire the licenses, as well as capitalized interest to the extent qualifying activities have occurred.

In March 2022, Verizon signed agreements with satellite operators in which operators agreed to clear C-Band spectrum in certain markets and frequencies ahead of the previously expected December 2023 timeframe. During the three and nine months ended September 30, 2022, Verizon incurred costs of approximately $115 million and $279 million, respectively, associated with these agreements. These costs were accrued for as of September 30, 2022. This early clearance, if successful, would accelerate Verizon's access to more spectrum in a number of key markets to support its fifth-generation initiatives.

During the nine months ended September 30, 2022, we entered into and completed various other wireless license acquisitions for cash consideration of an insignificant amount. During the nine months ended September 30, 2021, we recognized a pre-tax loss of $223 million ($167 million after-tax) in connection with the sale of certain wireless licenses.

TracFone Wireless, Inc.

In September 2020, we entered into a purchase agreement (TracFone Purchase Agreement) with América Móvil to acquire TracFone Wireless, Inc. (TracFone), a leading provider of prepaid and value mobile services in the U.S. The transaction closed on November 23, 2021 (the Acquisition Date). The acquisition positions Verizon as the leading prepaid, value and premium wireless carrier by expanding Verizon’s portfolio, bringing enhanced access of our wireless network and comprehensive suite of mobility products and services to a new customer base.

In accordance with the terms of the TracFone Purchase Agreement, Verizon acquired all of TracFone's outstanding stock in exchange for approximately $3.5 billion in cash, net of cash acquired and working capital and other adjustments, subject to

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customary adjustments, 57,596,544 shares of Verizon common stock valued at approximately $3.0 billion, and up to an additional $650 million in future cash contingent consideration related to the achievement of certain performance measures and other commercial arrangements. The fair value of the Verizon common stock was determined on the basis of its closing market price on the Acquisition Date. The estimated fair value of the contingent consideration as of the Acquisition Date was approximately $540 million and represents a Level 3 measurement as defined in ASC 820, Fair Value Measurements and Disclosures. See Note 7 for additional information. The contingent consideration payable is based on the achievement of certain revenue and operational targets, measured over a two-year earn out period, as defined in the TracFone Purchase Agreement.

In May 2022, Verizon received net cash proceeds of $248 million for the final settlement of working capital, which was included in our consideration as of the Acquisition Date. In August 2022, Verizon made a payment of $113 million related to the contingent consideration, which is reflected in Cash flows from financing activities in our condensed consolidated statements of cash flows for the nine months ended September 30, 2022. Contingent consideration payments are expected to continue through 2024.

The TracFone acquisition was accounted for as a business combination. The purchase consideration was preliminarily allocated to the assets acquired and liabilities assumed based on their fair values as of the Acquisition Date.

The following table summarizes the preliminary allocation of the consideration paid and payable to the identified assets acquired and liabilities assumed as of the Acquisition Date. The purchase price allocation is preliminary and is subject to revision as additional information about the fair value of the assets acquired and liabilities assumed, including related deferred income taxes, become available.

	November 23,		Measurement Period Adjustments(1)		Adjusted
(dollars in millions)	2021				Fair Value
Consideration:
Cash, net of cash acquired and working capital and other adjustments	$	3,491	$	17	$	3,508
Fair value of Verizon common stock (57,596,544 shares)	2,981		—		2,981
Fair value of contingent consideration to be paid	542		(2)		540
Total consideration	$	7,014	$	15	$	7,029
Assets acquired:
Current assets	$	1,370	$	9	$	1,379
Property, plant and equipment, net	96		(10)		86
Goodwill	3,723		(6)		3,717
Other intangible assets	4,374		—		4,374
Other assets	731		107		838
Total assets acquired	$	10,294	$	100	$	10,394
Liabilities assumed:
Current liabilities	1,433		67		1,500
Deferred income taxes	1,007		(48)		959
Other liabilities	840		66		906
Total liabilities assumed	$	3,280	$	85	$	3,365
Net assets acquired	$	7,014	$	15	$	7,029

(1) Adjustments to the fair value measurements reflect new information obtained about facts and circumstances that existed as of the Acquisition Date, that if known, would have affected the measurement of the amounts recognized as of that date. The most significant adjustments related to deferred income taxes and deferred commission costs.

Other intangible assets include $2.3 billion related to customer relationships, $1.3 billion related to distribution relationships, $744 million related to trade names and $110 million related to acquired technology.

Goodwill is calculated as the difference between the Acquisition Date fair value of the consideration paid and payable and the fair value of the net assets acquired, representing future economic benefits that we expect to achieve as a result of the acquisition. The goodwill related to this acquisition is included within the Consumer segment.

Pursuant to the TracFone Purchase Agreement, América Móvil agreed to indemnify Verizon against certain pre-acquisition tax matters and other contingencies. We have recorded total contingent liabilities and offsetting indemnification assets of $837 million for the expected reimbursement of these matters that had not been resolved as of the Acquisition Date. The liabilities are presented in Other liabilities and the indemnification assets are presented in Other assets, within our condensed consolidated balance sheets. The amounts recognized represent reasonable estimates based on an evaluation of current facts and circumstances. Actual outcome may differ significantly from these estimates. We expect that any additional liabilities that may arise related to these indemnified matters would be indemnified and reimbursed by América Móvil.

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Bluegrass Cellular

In October 2020, we entered into a definitive agreement to acquire certain assets of Bluegrass Cellular (Bluegrass), a rural wireless operator serving central Kentucky. Bluegrass provides wireless service to 210,000 customers in 34 counties in rural service areas 3, 4, and 5 in Central Kentucky. The transaction closed in March 2021. The aggregate cash consideration paid by Verizon at the closing of the transaction was approximately $412 million, net of cash acquired.

Verizon Media Divestiture

On May 2, 2021, Verizon entered into a definitive agreement with an affiliate of Apollo Global Management Inc. (the Apollo Affiliate) pursuant to which we agreed to sell Verizon Media Group (Verizon Media) in return for consideration of $4.3 billion in cash, subject to customary adjustments, $750 million in non-convertible preferred limited partnership units of the Apollo Affiliate, and 10% of the fully-diluted common limited partnership units of the Apollo Affiliate.

On September 1, 2021, we completed the sale of Verizon Media. As of the close of the transaction, cash proceeds, the fair value of the non-convertible preferred limited partnership units of the Apollo Affiliate, and the fair value of 10% of the fully-diluted common limited partnership units of the Apollo Affiliate were $4.3 billion, $496 million, and $124 million, respectively. We recorded a pre-tax gain on sale of approximately $1.1 billion (after-tax $1.1 billion) in Selling general and administrative expense in our condensed consolidated statement of income during both the three and nine months ended September 30, 2021. In addition, we incurred $346 million of various costs associated with this disposition which are primarily recorded in Selling general and administrative expense in our condensed consolidated statement of income for the three and nine months ended September 30, 2021.

On September 28, 2021, the Apollo Affiliate redeemed $100 million of Verizon’s preferred limited partnership interest. The carrying value of our preferred limited partnership interest as of September 30, 2022 was $396 million. The redemption is reflected within Net cash used in investing activities in our condensed consolidated statement of cash flows for the nine months ended September 30, 2021. Verizon’s 10% common interest in the Apollo Affiliate is accounted for as an equity method investment. The post-sale results of Verizon’s common ownership interest in the Apollo Affiliate are recorded through the equity method of accounting, within Corporate and other, which are insignificant.

In connection with the closing of the transaction, we entered into Transition Services Agreements with the Apollo Affiliate, under which Verizon will continue to provide and receive specified administrative and technical services to support operations for up to 12 months and 18 months, respectively.

Under our ownership, Verizon Media generated revenues from contracts with customers under Topic 606 of approximately $1.4 billion and $5.3 billion during the three and nine months ended September 30, 2021, respectively.

Other

During the nine months ended September 30, 2022, we entered into and completed various other insignificant transactions for net cash consideration of an insignificant amount.

In connection with divestiture and other activity we recorded a pre-tax net gain of an insignificant amount in our condensed consolidated statement of income for the nine months ended September 30, 2022.

Note 4. Wireless Licenses, Goodwill, and Other Intangible Assets

Wireless Licenses

The carrying amounts of our Wireless licenses are as follows:

	At September 30,		At December 31,
(dollars in millions)	2022		2021
Wireless licenses	$	149,292	$	147,619

At September 30, 2022 and 2021, approximately $45.4 billion and $54.8 billion, respectively, of wireless licenses were under development for commercial service for which we were capitalizing interest costs. We recorded approximately $1.3 billion and $1.1 billion of capitalized interest on wireless licenses for the nine months ended September 30, 2022 and 2021, respectively.

During the nine months ended September 30, 2022, we renewed various wireless licenses in accordance with FCC regulations. The average renewal period for these licenses was 15 years.

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Goodwill

Changes in the carrying amount of Goodwill are as follows:

(dollars in millions)	Consumer		Business		Other		Total
Balance at January 1, 2022	$	21,042	$	7,515	$	46	$	28,603
Acquisitions (1)	(6)		—		—		(6)
Reclassifications, adjustments and other (2)	—		(27)		(22)		(49)
Balance at September 30, 2022	$	21,036	$	7,488	$	24	$	28,548

(1) The change in goodwill relates to the acquisition of TracFone. See Note 3 for additional information.

(2) Includes a goodwill impairment charge of $16 million, related to an early stage development company presented within Other, recorded in Selling, general and administrative expense in our condensed consolidated statements of income for the nine months ended September 30, 2022.

Other Intangible Assets

The following table displays the composition of Other intangible assets, net as well as the respective amortization periods:

	At September 30, 2022						At December 31, 2021
(dollars in millions)	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
Customer lists (5 to 13 years)	$	4,185	$	(1,571)	$	2,614	$	4,201	$	(1,126)	$	3,075
Non-network internal-use software (7 years)	22,644		(16,017)		6,627		21,310		(14,897)		6,413
Other (4 to 25 years)	2,996		(1,041)		1,955		2,974		(785)		2,189
Total	$	29,825	$	(18,629)	$	11,196	$	28,485	$	(16,808)	$	11,677

The amortization expense for Other intangible assets was as follows: 

	Three Months Ended		Nine Months Ended
(dollars in millions)	September 30,		September 30,
2022	$	658	$	1,944
2021	430		1,539

The estimated future amortization expense for Other intangible assets for the remainder of the current year and next 5 years is as follows:

Years	(dollars in millions)
Remainder of 2022	$	652
2023	2,468
2024	2,178
2025	1,993
2026	1,734
2027	1,033

Note 5. Debt

Significant Debt Transactions

Debt or equity financing may be needed to fund additional investments or development activities or to maintain an appropriate capital structure to ensure our financial flexibility.

The following tables show the significant transactions involving the senior unsecured debt securities of Verizon and its subsidiaries that occurred during the three and nine months ended September 30, 2022.

Tender Offers

(dollars in millions)	Principal Amount Purchased		Cash Consideration(1)
Three Months Ended March 31, 2022
Verizon and subsidiary 2.987% - 8.950% notes and debentures, due 2032 - 2056	$	5,032	$	5,587
Three Months Ended March 31, 2022 total	5,032		5,587
Nine Months Ended September 30, 2022 total	$	5,032	$	5,587

(1) The total cash consideration includes the tender offer consideration, plus any accrued and unpaid interest to the date of purchase.

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Repayments and Repurchases

(dollars in millions)	Principal Repaid/ Repurchased		Amount Paid (1)
Three Months Ended March 31, 2022
Verizon floating rate (London Inter-Bank Offered Rate + 1.000%) notes due 2022	$	1,094	$	1,097
Three Months Ended March 31, 2022 total	1,094		1,097
Three Months Ended June 30, 2022
Subsidiary 8.000% debentures due 2022	103		108
Open market repurchases of various Verizon notes	359		307
Three Months Ended June 30, 2022 total	462		415
Three Months Ended September 30, 2022
Open market repurchases of various Verizon notes	260		211
Three Months Ended September 30, 2022 total	260		211
Nine Months Ended September 30, 2022 total	$	1,816	$	1,723

(1) Represents amount paid to repay or repurchase, including any accrued interest.

Issuances

(dollars in millions)	Principal Amount Issued		Net Proceeds (1)
Three Months Ended March 31, 2022
Verizon 3.875% notes due 2052 (2)	$	1,000	$	982
Verizon 4.100% notes due 2055	655		650
Three Months Ended March 31, 2022 total	1,655		1,632
Nine Months Ended September 30, 2022 total	$	1,655	$	1,632

(1) Net proceeds were net of underwriting discounts and other issuance costs.

(2) An amount equal to the net proceeds from this green bond is expected to be used to fund, in whole or in part, certain renewable energy projects, including new and existing investments made by us during the period from December 1, 2021 through the maturity date of the green bond.

Short-Term Borrowing and Commercial Paper Program

In March 2022, we entered into and fully drew from a $1.0 billion short-term uncommitted credit facility. As of September 30, 2022, the $1.0 billion borrowed under the facility remains outstanding.

During the nine months ended September 30, 2022, we issued $26.5 billion in commercial paper and we repaid $21.9 billion of commercial paper. As of September 30, 2022, we had $4.6 billion of commercial paper outstanding. These transactions are reflected within Cash flows from financing activities in our condensed consolidated statements of cash flows.

Asset-Backed Debt

As of September 30, 2022, the carrying value of our asset-backed debt was $16.5 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), a wholly-owned subsidiary of Verizon, 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 and residual interests, as applicable, 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.

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Cash collections on the device payment plan agreement receivables collateralizing our 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.

ABS Notes

During the nine months ended September 30, 2022, we completed the following ABS Notes transactions:

(dollars in millions)	Interest Rates %	Expected Weighted-average Life to Maturity (in years)	Principal Amount Issued
January 2022
Series 2022-1
A Senior class notes	1.040	1.49	$	799
B Junior class notes	1.270	1.49	64
C Junior class notes	1.390	1.49	37
Series 2022-2
A Senior class notes	1.530	2.99	710
B Junior class notes	1.830	2.99	57
C Junior class notes	2.010	2.99	33
January 2022 total			1,700
May 2022
Series 2022-3
A Senior class notes	3.010	1.49	400
B Junior class notes	3.250	1.49	—
C Junior class notes	3.500	1.49	16
Series 2022-4
A Senior class notes	3.400	2.99	488
B Junior class notes	3.640	2.99	42
C Junior class notes	3.890	2.99	20
May 2022 total			966
August 2022
Series 2022-5
A-1a Senior fixed rate class notes	3.720	1.44	351
A-1b Senior floating rate class notes	Compounded SOFR + 0.620(1)	1.44	57
B Junior class notes	3.960	1.44	—
C Junior class notes	4.210	1.44	—
Series 2022-6
A Senior class notes	3.670	2.94	479
B Junior class notes	3.910	2.94	—
C Junior class notes	4.160	2.94	—
August 2022 total			887
Total			$	3,553

(1) Compounded Secured Overnight Financing Rate (SOFR) is calculated using SOFR as published by the Federal Reserve Bank of New York in accordance with the terms of such notes. Compounded SOFR for the interest period ending in September 2022 was 2.285%.

Under the terms of each series of ABS Notes, there is a revolving period of 18 months, two years or up to three years, as applicable, during which we may transfer additional receivables to the ABS Entity. During the nine months ended September 30, 2022, we made aggregate principal repayments of $3.0 billion on ABS Notes that have entered the amortization period, including principal payments made in connection with optional clean-up redemptions.

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In October 2022, in connection with an optional acquisition of receivables and redemption of ABS Notes, we made a principal payment, in whole, for $129 million.

ABS Financing Facilities

In January 2022, we prepaid an aggregate of $515 million of the two loans outstanding in connection with the ABS Financing Facility entered into in December 2021. In March 2022, we borrowed an additional $1.9 billion under the loan agreements entered into in connection with such ABS Financing Facility. In May 2022, we prepaid an aggregate of $130 million of the two loans outstanding in connection with such ABS Financing Facility. In June 2022, we borrowed an additional $545 million under the loan agreements entered into in connection with such ABS Financing Facility. The aggregate outstanding balance under such ABS Financing Facility was $6.1 billion as of September 30, 2022.

In October 2022, we entered into an ABS financing facility with a financial institution (2022 ABS Financing Facility). Under the terms of the 2022 ABS Financing Facility, the financial institution makes advances under asset-backed loans backed by certain wireless service accounts receivables of both Consumer customers and Business customers. The loan agreement entered into in connection with the 2022 ABS Financing Facility is outstanding with a final maturity date in June 2024 and the loan agreement bears interest at a floating rate. There is an 18 month revolving period, as set forth in the loan agreement, which may be extended with the approval of the financial institution. 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 applicable ABS Entity. In October 2022, we borrowed $2.0 billion under the loan agreement entered into in connection with the 2022 ABS Financing Facility.

Variable Interest Entities (VIEs)

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.

The assets and liabilities related to our asset-backed debt arrangements included in our condensed consolidated balance sheets were as follows:

	At September 30,		At December 31,
(dollars in millions)	2022		2021
Assets
Accounts receivable, net	$	11,312	$	10,705
Prepaid expenses and other	1,357		1,094
Other assets	8,359		5,455
Liabilities
Accounts payable and accrued liabilities	8		10
Debt maturing within one year	6,587		5,024
Long-term debt	9,923		9,178

See Note 6 for additional information on device payment plan agreement receivables used to secure asset-backed debt.

Long-Term Credit Facilities

				At September 30, 2022
(dollars in millions)	Maturities	Facility Capacity		Unused Capacity		Principal Amount Outstanding
Verizon revolving credit facility (1)	2026	$	9,500	$	9,434	N/A
Various export credit facilities (2)	2024 - 2031	11,000		1,000		$	7,000
Total		$	20,500	$	10,434	$	7,000

N/A - not applicable

(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) During the nine months ended September 30, 2022 and 2021, we drew down $3.0 billion and $470 million, respectively, from these facilities. 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. Any amounts borrowed under these facilities and subsequently repaid cannot be reborrowed.

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Non-Cash Transactions

During the nine months ended September 30, 2022 and 2021, we financed, primarily through alternative financing arrangements, the purchase of approximately $583 million and $337 million, respectively, of long-lived assets consisting primarily of network equipment. As of September 30, 2022 and December 31, 2021, $1.6 billion and $1.3 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.

Debt Extinguishment Gains (Losses), Net

During the three months ended September 30, 2022, we recorded debt extinguishment gains of $50 million. During the nine months ended September 30, 2022, we recorded net debt extinguishment losses of $1.1 billion. During the three months ended September 30, 2021, we did not record debt extinguishment losses. During the nine months ended September 30, 2021, we recorded debt extinguishment losses of $1.1 billion. The gains and losses are recorded in Other income (expense), net in our condensed consolidated statements of income. The total gains and losses are reflected within Other, net cash flow from operating activities and the portion of the gains and losses representing cash payments are reflected within Other, net cash flow from financing activities in our condensed consolidated statements of cash flows.

Guarantees

We guarantee the debentures of our operating telephone company subsidiaries. As of September 30, 2022, $614 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.

Debt Covenants

We and our consolidated subsidiaries are in compliance with all of our restrictive covenants in our debt agreements.

Note 6. Device Payment Plan Agreement and Wireless Service Receivables

The following table presents information about accounts receivable, net of allowances, recorded in our condensed consolidated balance sheets:

	At September 30, 2022
(dollars in millions)	Device payment plan agreement		Wireless service		Other receivables(1)		Total
Accounts receivable	$	13,281	$	5,141	$	6,053	$	24,475
Less Allowance for credit losses	455		114		236		805
Accounts receivable, net of allowance	$	12,826	$	5,027	$	5,817	$	23,670

(1) Other receivables primarily include wireline receivables and other receivables, the allowances for which are individually insignificant.

Under the Verizon device payment program, our eligible wireless customers purchase wireless devices under a device payment plan agreement. Customers that activate service on devices purchased under the device payment program pay lower service fees as compared to those under our fixed-term service plans, and their device payment plan charge is included on their wireless monthly bill. We no longer offer Consumer customers new fixed-term, subsidized service plans for devices; however, we continue to offer subsidized plans to our Business customers. We also continue to service existing plans for customers who have not yet purchased and activated devices under the Verizon device payment program.

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Wireless Device Payment Plan Agreement Receivables

The following table displays device payment plan agreement receivables, net, recognized in our condensed consolidated balance sheets:

	At September 30,		At December 31,
(dollars in millions)	2022		2021
Device payment plan agreement receivables, gross	$	24,185	$	21,303
Unamortized imputed interest	(386)		(358)
Device payment plan agreement receivables, at amortized cost	23,799		20,945
Allowance (1)	(772)		(759)
Device payment plan agreement receivables, net	$	23,027	$	20,186
Classified in our condensed consolidated balance sheets:
Accounts receivable, net	$	12,826	$	12,783
Other assets	10,201		7,403
Device payment plan agreement receivables, net	$	23,027	$	20,186

(1) Includes allowance for both short-term and long-term device payment plan agreement receivables.

Included in our device payment plan agreement receivables at both September 30, 2022 and December 31, 2021, are net device payment plan agreement receivables of $19.5 billion and $16.0 billion, respectively, which have been transferred to ABS Entities and continue to be reported in our condensed consolidated balance sheets. See Note 5 for additional information. We believe the carrying value of these receivables approximate their fair value using a Level 3 expected cash flow model.

For indirect channel wireless contracts with customers, we impute risk adjusted interest on the device payment plan agreement receivables. We record the imputed interest as a reduction to the related accounts receivable. Interest income, which is included within Service revenues and other in our condensed consolidated statements of income, is recognized over the financed device payment term.

Promotions

In connection with certain device payment plan agreements, we may offer a promotion to allow our customers to upgrade to a new device after paying down a certain specified portion of the required device payment plan agreement amount as well as trading in their device in good working order. When a customer enters into a device payment plan agreement with the right to upgrade to a new device, we account for this trade-in right as a guarantee obligation. We recognize a liability measured at fair value for the customer’s right to trade in the device which is determined by considering several factors, including the weighted-average selling prices obtained in recent resales of similar devices eligible for trade-in. At September 30, 2022 and December 31, 2021, the amount of the guarantee liability was $61 million and $77 million, respectively.

We may offer certain promotions that allow a customer to trade in their owned device in connection with the purchase of a new device. Under these types of promotions, the customer receives a credit for the value of the trade-in device. At September 30, 2022 and December 31, 2021, the amount of trade-in liability was $460 million and $366 million, respectively.

In addition, we may provide the customer with additional future billing credits that will be applied against the customer’s monthly bill as long as service is maintained. These future billing credits are accounted for as consideration payable to a customer and are included in the determination of total transaction price, resulting in a contract liability.

Device payment plan agreement receivables, net, does not reflect the trade-in liability, additional future credits or the guarantee liability.

Origination of Device Payment Plan Agreements

When originating device payment plan agreements, we use internal and external data sources to create a credit risk score to measure the credit quality of a customer and to determine eligibility for the device payment program. Verizon’s experience has been that the payment attributes of longer tenured customers are highly predictive for estimating their reliability to make future payments. Customers with longer tenures tend to exhibit similar risk characteristics to other customers with longer tenures, and receivables due from customers with longer tenures tend to perform better than receivables from customers that have not previously been Verizon customers. As a result of this experience, we make initial lending decisions based upon whether the customers are "established customers" or "short-tenured customers." If a Consumer customer has been a customer for 45 days or more, or if a Business customer has been a customer for 12 months or more, the customer is considered an "established customer." For established customers, the credit decision and ongoing credit monitoring processes rely on a combination of internal and external data sources. If a Consumer customer has been a customer less than 45 days, or a Business customer has been a customer for less than 12 months, the customer is considered a "short-tenured customer." For short-tenured customers, the credit decision and credit monitoring processes rely more heavily on external data sources.

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Available external credit data from credit reporting agencies along with internal data are used to create custom credit risk scores for Consumer customers. The custom credit risk score is generated automatically from the applicant’s credit data using proprietary custom credit models. The credit risk score measures the likelihood that the potential customer will become severely delinquent and be disconnected for non-payment. For a small portion of short-tenured customer applications, a traditional credit report is not available from one of the national credit reporting agencies because the potential customer does not have sufficient credit history. In those instances, alternative credit data is used for the risk assessment. For Business customers, we also verify the existence of the business with external data sources.

Based on the custom credit risk score, we assign each customer a credit class, each of which has specified offers of credit. This includes an account level spending limit and a maximum amount of credit allowed per device for Consumer customers or a required down payment percentage for Business customers.

Credit Quality Information

Subsequent to origination, we assess indicators for the quality of our wireless device payment plan agreement portfolio using two models, one for new customers and one for existing customers. The model for new customers pools all Consumer and Business wireless customers based on less than 210 days as "new customers." The model for existing customers pools all Consumer and Business wireless customers based on 210 days or more as "existing customers."

The following table presents device payment plan agreement receivables, at amortized cost, as of September 30, 2022, by credit quality indicator and year of origination:

	Year of Origination(1)
(dollars in millions)	2022		2021		Prior to 2021		Total
New customers	$	1,993	$	1,273	$	82	$	3,348
Existing customers	12,299		7,608		544		20,451
Total	$	14,292	$	8,881	$	626	$	23,799

(1) Includes accounts that have been suspended at a point in time.

The data presented in the table above was last updated on September 30, 2022.

We assess indicators for the quality of our wireless service receivables portfolio as one overall pool. As of September 30, 2022, wireless service receivables, at amortized cost, originating in 2022 and 2021 were $5.1 billion and $66 million, respectively.

Allowance for Credit Losses

The credit quality indicators are used in determining the estimated amount and the timing of expected credit losses for the device payment plan agreement and wireless service receivables portfolios.

For device payment plan agreement receivables, we record bad debt expense based on a default and loss calculation using our proprietary loss model. The expected loss rate is determined based on customer credit scores and other qualitative factors as noted above. The loss rate is assigned individually on a customer by customer basis and the custom credit scores are then aggregated by vintage and used in our proprietary loss model to calculate the weighted-average loss rate used for determining the allowance balance.

We monitor the collectability of our wireless service receivables as one overall pool. Wireline service receivables are disaggregated and pooled by the following customer groups: consumer, small and medium business, global enterprise, public sector and wholesale. For wireless service receivables and wireline consumer and small and medium business receivables, the allowance is calculated based on a 12 month rolling average write-off balance multiplied by the average life-cycle of an account from billing to write-off. The risk of loss is assessed over the contractual life of the receivables and is adjusted based on the historical loss amounts for current and future conditions based on management’s qualitative considerations. For global enterprise, public sector and wholesale wireline receivables, the allowance for credit losses is based on historical write-off experience and individual customer credit risk, if applicable.

Activity in the allowance for credit losses by portfolio segment of receivables was as follows:

(dollars in millions)	Device Payment Plan Agreement Receivables(1)		Wireless Service Plan Receivables
Balance at January 1, 2022	$	759	$	130
Current period provision for expected credit losses	606		275
Write-offs charged against the allowance	(619)		(324)
Recoveries collected	26		33
Balance at September 30, 2022	$	772	$	114

(1) Includes allowance for both short-term and long-term device payment plan agreement receivables.

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We monitor delinquency and write-off experience based on the quality of our device payment plan agreement and wireless service receivables portfolios. The extent of our collection efforts with respect to a particular customer are based on the results of our proprietary custom internal scoring models that analyze the customer’s past performance to predict the likelihood of the customer falling further delinquent. These custom scoring models assess a number of variables, including origination characteristics, customer account history and payment patterns. Since our customers’ behaviors may be impacted by general economic conditions, we analyzed whether changes in macroeconomic conditions impact our credit loss experience and have concluded that our credit loss estimates are generally not materially impacted by reasonable and supportable forecasts of future economic conditions. Based on the score derived from these models, accounts are grouped by risk category to determine the collection strategy to be applied to such accounts. For device payment plan agreement receivables and wireless service receivables, we consider an account to be delinquent and in default status if there are unpaid charges remaining on the account on the day after the bill’s due date. The risk class determines the speed and severity of the collections effort including initiatives taken to facilitate customer payment.

The balance and aging of the device payment plan agreement receivables, at amortized cost, were as follows:

	At September 30,
(dollars in millions)	2022
Unbilled	$	22,567
Billed:
Current	1,022
Past due	210
Device payment plan agreement receivables, at amortized cost	$	23,799

Note 7. Fair Value Measurements and Financial Instruments

Recurring Fair Value Measurements

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of September 30, 2022:

(dollars in millions)	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Prepaid expenses and other:
Fixed income securities	$	—	$	32	$	—	$	32
Cross currency swaps	—		1		—		1
Interest rate caps	—		33		—		33
Other assets:
Fixed income securities	—		341		—		341
Cross currency swaps	—		53		—		53
Interest rate caps	—		11		—		11
Total	$	—	$	471	$	—	$	471
Liabilities:
Other current liabilities:
Interest rate swaps	$	—	$	704	$	—	$	704
Foreign exchange forwards	—		10		—		10
Cross currency swaps	—		346		—		346
Interest rate caps	—		32		—		32
Contingent consideration	—		—		313		313
Other liabilities:
Interest rate swaps	—		3,850		—		3,850
Cross currency swaps	—		5,190		—		5,190
Interest rate caps	—		10		—		10
Contingent consideration	—		—		114		114
Total	$	—	$	10,142	$	427	$	10,569

(1)Quoted prices in active markets for identical assets or liabilities.

(2)Observable inputs other than quoted prices in active markets for identical assets and liabilities.

(3)Unobservable pricing inputs in the market.

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The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2021:

(dollars in millions)	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Prepaid expenses and other:
Fixed income securities	$	—	$	18	$	—	$	18
Interest rate swaps	—		188		—		188
Cross currency swaps	—		9		—		9
Foreign exchange forwards	—		12		—		12
Other assets:
Fixed income securities	—		391		—		391
Interest rate swaps	—		285		—		285
Cross currency swaps	—		580		—		580
Interest rate caps	—		44		—		44
Total	$	—	$	1,527	$	—	$	1,527
Liabilities:
Other current liabilities:
Interest rate swaps	$	—	$	1	$	—	$	1
Forward starting interest rate swaps	—		302		—		302
Cross currency swaps	—		218		—		218
Contingent consideration	—		—		231		231
Other liabilities:
Interest rate swaps	—		665		—		665
Cross currency swaps	—		1,406		—		1,406
Interest rate caps	—		44		—		44
Contingent consideration	—		—		313		313
Total	$	—	$	2,636	$	544	$	3,180

(1)Quoted prices in active markets for identical assets or liabilities.

(2)Observable inputs other than quoted prices in active markets for identical assets and liabilities.

(3)Unobservable pricing inputs in the market.

Certain of our equity investments do not have readily determinable fair values and are excluded from the tables above. Such investments are measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer and are included in Investments in unconsolidated businesses in our condensed consolidated balance sheets. As of September 30, 2022 and December 31, 2021, the carrying amount of our investments without readily determinable fair values was $814 million and $808 million, respectively. During both the three and nine months ended September 30, 2022, there were insignificant adjustments due to observable price changes and there were insignificant impairment charges. As of September 30, 2022, cumulative adjustments due to observable price changes and impairment charges were approximately $157 million and $82 million, respectively.

Verizon has a liability for contingent consideration related to its acquisition of TracFone, completed in November 2021. The fair value is calculated using a probability-weighted discounted cash flow model and represents a Level 3 measurement. Level 3 instruments include valuation based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. Subsequent to the Acquisition Date, at each reporting date, the contingent consideration liability is remeasured to fair value with changes recorded within Selling, general and administrative expense in our condensed consolidated statements of income. During the three months ended September 30, 2022, we made a payment of $113 million related to the contingent consideration. Refer to Note 3 for additional information.

Fixed income securities consist primarily of investments in municipal bonds. The valuation of the fixed income securities is based on the quoted prices for similar assets in active markets or identical assets in inactive markets or models that apply inputs from observable market data. The valuation determines that these securities are classified as Level 2.

Derivative contracts are valued using models based on readily observable market parameters for all substantial terms of our derivative contracts and thus are classified within Level 2. We use mid-market pricing for fair value measurements of our derivative instruments. Our derivative instruments are recorded on a gross basis.

We recognize transfers between levels of the fair value hierarchy as of the end of the reporting period.

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Fair Value of Short-term and Long-term Debt

The fair value of our debt is determined using various methods, including quoted prices for identical debt instruments, which is a Level 1 measurement, as well as quoted prices for similar debt instruments with comparable terms and maturities, which is a Level 2 measurement.

The fair value of our short-term and long-term debt, excluding finance leases, was as follows:

			Fair Value
(dollars in millions)	Carrying Amount		Level 1		Level 2		Level 3		Total
At December 31, 2021	$	149,543	$	106,599	$	62,606	$	—	$	169,205
At September 30, 2022	146,326		82,250		51,393		—		133,643

Derivative Instruments

We enter into derivative transactions primarily to manage our exposure to fluctuations in foreign currency exchange rates and interest rates. We employ risk management strategies, which may include the use of a variety of derivatives including interest rate swaps, cross currency swaps, forward starting interest rate swaps, treasury rate locks, interest rate caps, swaptions and foreign exchange forwards. We do not hold derivatives for trading purposes.

The following table sets forth the notional amounts of our outstanding derivative instruments:

	At September 30,		At December 31,
(dollars in millions)	2022		2021
Interest rate swaps	$	26,071	$	19,779
Cross currency swaps	32,502		32,502
Forward starting interest rate swaps	—		1,000
Foreign exchange forwards	940		932

The following tables summarize the activities of our designated derivatives:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions)	2022		2021		2022		2021
Interest Rate Swaps:
Notional value entered into	$	—	$	—	$	7,155	$	2,550
Notional value settled	—		851		863		3,540
Pre-tax gain recognized in Interest expense	2		—		2		1
Cross Currency Swaps:
Notional value entered into	—		—		—		6,214
Notional value settled	—		—		—		—
Pre-tax loss recognized in Other comprehensive loss (1)	N/A		(1,057)		(430)		(1,984)
Pre-tax loss on cross currency swaps recognized in Interest expense	(2,039)		N/A		(3,847)		N/A
Pre-tax gain on hedged debt recognized in Interest expense	2,039		N/A		3,847		N/A
Excluded components recognized in Other comprehensive loss	169		N/A		(171)		N/A
Initial value of the excluded component amortized into Interest expense	27		N/A		54		N/A
Forward Starting Interest Rate Swaps:
Notional value entered into	—		—		—		—
Notional value settled	—		—		1,000		1,000
Pre-tax gain recognized in Other comprehensive loss	—		—		196		279
Treasury Rate Locks:
Notional value entered into	—		—		—		4,650
Notional value settled	—		—		—		4,650
Pre-tax gain recognized in Other comprehensive loss	—		—		—		251

N/A - not applicable

(1) Represents amounts recorded under the cash flow hedge model. These instruments were re-designated as fair value hedges on March 31, 2022.

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	Nine Months Ended
	September 30,
(dollars in millions)	2022		2021
Other, net Cash Flows from Operating Activities:
Cash received for settlement of interest rate swaps	$	40	$	110
Cash paid for settlement of forward starting interest rate swaps	(107)		(237)
Cash received for settlement of treasury rate locks	—		251

The following table displays the amounts recorded in Long-term debt in our condensed consolidated balance sheets related to cumulative basis adjustments for fair value hedges. The cumulative amounts exclude cumulative basis adjustments related to foreign exchange risk.

	At September 30,		At December 31,
(dollars in millions)	2022		2021
Carrying amount of hedged liabilities	$	21,836	$	20,027
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities	(4,432)		(113)
Cumulative amount of fair value hedging adjustment remaining for which hedge accounting has been discontinued	510		575

Interest Rate Swaps

We enter into interest rate swaps to achieve a targeted mix of fixed and variable rate debt. We principally receive fixed rates and pay variable rates, resulting in a net increase or decrease to Interest expense. These swaps are designated as fair value hedges and hedge against interest rate risk exposure of designated debt issuances. We record the interest rate swaps at fair value in our condensed consolidated balance sheets as assets and liabilities. Changes in the fair value of the interest rate swaps are recorded to Interest expense, which are primarily offset by changes in the fair value of the hedged debt due to changes in interest rates.

Cross Currency Swaps

We have entered into cross currency swaps previously designated as cash flow hedges through March 31, 2022 to exchange our British Pound Sterling, Euro, Swiss Franc, Canadian Dollar and Australian Dollar-denominated cash flows into U.S. dollars and to fix our cash payments in U.S. dollars, as well as to mitigate the impact of foreign currency transaction gains or losses. A portion of the loss recognized in Other comprehensive loss was reclassified to Interest expense to offset the related pre-tax foreign currency transaction gain or loss on the underlying hedged item.

On March 31, 2022, we elected to de-designate our cross currency swaps as cash flow hedges and re-designated these swaps as fair value hedges. For these hedges, we have elected to exclude the change in fair value of the cross currency swaps related to both time value and cross currency basis spread from the assessment of hedge effectiveness (the excluded components). The initial value of the excluded components of $1.0 billion as of March 31, 2022 will continue to be amortized into Interest expense over the remaining life of the hedging instruments. We estimate that $108 million will be amortized into Interest expense within the next 12 months.

We record the cross currency swaps at fair value in our condensed consolidated balance sheets as assets and liabilities. Changes in the fair value of the cross currency swaps attributable to changes in the spot rate of the hedged item and changes in the recorded value of the hedged debt due to changes in spot rates are recorded in the same income statement line item. We present exchange gains and losses from the conversion of foreign currency denominated debt as a part of Interest expense. During the three and nine months ended September 30, 2022, these amounts completely offset each other and no net gain or loss was recorded.

Changes in the fair value of cross currency swaps attributable to time value and cross currency basis spread are initially recorded to Other comprehensive loss. Unrealized gains or losses on excluded components are recorded in Other comprehensive loss and are recognized into Interest expense on a systematic and rational basis through the swap accrual over the life of the hedging instrument. The amount remaining in Accumulated other comprehensive loss related to cash flow hedges on the date of transition will be reclassified to earnings when the hedged item is recognized in earnings or when it becomes probable that the forecasted transactions will not occur. During the three and nine months ended September 30, 2022, the amortization of the initial value of the excluded component completely offset the amortization related to the amount remaining in Other comprehensive loss related to cash flow hedges. See Note 9 for additional information.

Forward Starting Interest Rate Swaps

We have entered into forward starting interest rate swaps designated as cash flow hedges in order to manage our exposure to interest rate changes on future forecasted transactions. We hedge our exposure to the variability in future cash flows based on

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the expected maturities of the related forecasted debt issuance. We recognize gains and losses resulting from interest rate movements in Other comprehensive loss.

Treasury Rate Locks

We enter into treasury rate locks to mitigate our interest rate risk. We recognize gains and losses resulting from interest rate movements in Other comprehensive loss.

Net Investment Hedges

We have designated certain foreign currency debt instruments as net investment hedges to mitigate foreign exchange exposure related to non-U.S. dollar net investments in certain foreign subsidiaries against changes in foreign exchange rates. The notional amount of Euro-denominated debt designated as a net investment hedge was €750 million as of both September 30, 2022 and December 31, 2021.

Undesignated Derivatives

We also have the following derivative contracts which we use as economic hedges but for which we have elected not to apply hedge accounting.

The following table summarizes the activity of our derivatives not designated in hedging relationships:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions)	2022		2021		2022		2021
Foreign Exchange Forwards:
Notional value entered into	$	2,642	$	2,745	$	8,144	$	9,970
Notional value settled	2,703		3,365		8,136		10,505
Pre-tax loss recognized in Other income (expense), net	(75)		(29)		(169)		(51)
Swaptions:
Notional value sold	—		1,000		1,000		1,000
Notional value settled	—		—		1,000		—
Pre-tax loss recognized in Interest expense	—		—		(33)		—

Foreign Exchange Forwards

We enter into British Pound Sterling and Euro foreign exchange forwards to mitigate our foreign exchange rate risk related to non-functional currency denominated monetary assets and liabilities of international subsidiaries.

Swaptions

We enter into swaptions to achieve a targeted mix of fixed and variable rate debt.

Concentrations of Credit Risk

Financial instruments that subject us to concentrations of credit risk consist primarily of temporary cash investments, short-term and long-term investments, trade receivables, including device payment plan agreement receivables, certain notes receivable, including lease receivables, and derivative contracts.

Counterparties to our derivative contracts are major financial institutions with whom we have negotiated derivatives agreements (ISDA master agreements) and credit support annex (CSA) agreements which provide rules for collateral exchange. The CSA agreements contain rating based thresholds such that we or our counterparties may be required to hold or post collateral based upon changes in outstanding positions as compared to established thresholds and changes in credit ratings. We do not offset fair value amounts recognized for derivative instruments and fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments recognized at fair value. At September 30, 2022, we did not hold any collateral. At September 30, 2022, we posted $4.9 billion of collateral related to derivative contracts under collateral exchange agreements, which was recorded as Prepaid expenses and other in our condensed consolidated balance sheets. At December 31, 2021, we held and posted $0.1 billion and an insignificant amount, respectively, of collateral related to derivative contracts under collateral exchange arrangements, which were recorded as Other current liabilities and Prepaid expenses and other, respectively, in our condensed consolidated balance sheets. While we may be exposed to credit losses due to the nonperformance of our counterparties, we consider the risk remote and do not expect that any such nonperformance would result in a significant effect on our results of operations or financial condition due to our diversified pool of counterparties.

Note 8. Employee Benefits

We maintain non-contributory defined benefit pension plans for certain employees. In addition, we maintain postretirement health care and life insurance plans for certain retirees and their dependents, which are both contributory and non-contributory, and

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include a limit on our share of the cost for certain current and future retirees. In accordance with our accounting policy for pension and other postretirement benefits, operating expenses include service costs associated with pension and other postretirement benefits while other credits and/or charges based on actuarial assumptions, including projected discount rates, an estimated return on plan assets, and impact from health care trend rates are reported in Other income (expense), net. These estimates are updated in the fourth quarter to reflect actual return on plan assets and updated actuarial assumptions or upon a remeasurement event. The adjustment is recognized in the income statement during the fourth quarter or upon a remeasurement event pursuant to our accounting policy for the recognition of actuarial gains and losses.

Net Periodic Benefit Cost (Income)

The following table summarizes the components of net periodic benefit cost (income) related to our pension and postretirement health care and life insurance plans:

	(dollars in millions)
	Pension				Health Care and Life
Three Months Ended September 30,	2022		2021		2022		2021
Service cost - Cost of services	$	52	$	59	$	20	$	24
Service cost - Selling, general and administrative expense	7		8		4		4
Service cost	$	59	$	67	$	24	$	28
Amortization of prior service cost (credit)	$	24	$	16	$	(106)	$	(223)
Expected return on plan assets	(274)		(309)		(6)		(6)
Interest cost	151		102		83		72
Remeasurement loss, net	645		144		—		—
Other components	$	546	$	(47)	$	(29)	$	(157)
Total	$	605	$	20	$	(5)	$	(129)

	(dollars in millions)
	Pension				Health Care and Life
Nine Months Ended September 30,	2022		2021		2022		2021
Service cost - Cost of services	$	168	$	186	$	60	$	71
Service cost - Selling, general and administrative expense	23		26		11		14
Service cost	$	191	$	212	$	71	$	85
Amortization of prior service cost (credit)	$	54	$	46	$	(419)	$	(670)
Expected return on plan assets	(865)		(927)		(20)		(17)
Interest cost	375		296		249		217
Remeasurement loss (gain), net	843		(1,170)		—		—
Other components	$	407	$	(1,755)	$	(190)	$	(470)
Total	$	598	$	(1,543)	$	(119)	$	(385)

The service cost component of net periodic benefit cost (income) is recorded in Cost of services and Selling, general and administrative expense in the condensed consolidated statements of income while the other components, including mark-to-market adjustments, if any, are recorded in Other income (expense), net.

During the three months ended September 30, 2022, we updated the expected return on plan assets assumption for our pension plans from 6.25% at December 31, 2021 to 7.25% based upon the expected market returns for our targeted asset allocation.

Severance Payments

During the three and nine months ended September 30, 2022, we paid severance benefits of an insignificant amount and $155 million, respectively. At September 30, 2022, we had a remaining severance liability of $400 million, a portion of which includes future contractual payments to separated employees.

Employer Contributions

During both the three and nine months ended September 30, 2022 and September 30, 2021, we made no contributions to our qualified pension plans and made insignificant contributions to our nonqualified pension plans. We do not expect mandatory pension funding through December 31, 2022. There have been no significant changes with respect to the nonqualified pension and other postretirement benefit plans contributions in 2022.

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Remeasurement loss (gain), net

During the three and nine months ended September 30, 2022, we recorded a net pre-tax remeasurement loss of $645 million and $843 million, respectively, in our pension plans triggered by settlements as well as amendments to our collective bargaining agreements.

During the three months ended September 30, 2022, we recorded a net pre-tax remeasurement loss of $645 million in our pension plans triggered by settlements as well as amendments to our collective bargaining agreements, primarily driven by a $3.5 billion charge resulting from the difference between our estimated and actual return on assets, partially offset by a credit of $2.9 billion mainly due to changes in our discount rate and changes in our lump sum interest rate assumptions used to determine the current year liabilities of our pension plans.

During the three months ended June 30, 2022, we recorded a net pre-tax remeasurement loss of $198 million in our pension plans triggered by settlements, primarily driven by a $654 million charge resulting from the difference between our estimated and actual return on assets, partially offset by a credit of $456 million mainly due to changes in our discount rate and changes in our lump sum interest rate assumptions used to determine the current year liabilities of our pension plans.

During the three and nine months ended September 30, 2021, we recorded a net pre-tax remeasurement loss of $144 million and a net pre-tax remeasurement gain of $1.2 billion, respectively, in our pension plans triggered by settlements.

During the three months ended September 30, 2021, we recorded a pre-tax remeasurement loss of $144 million in our pension plans driven by a $667 million charge due to changes in our discount rate and other assumption changes, offset by a $523 million credit resulting from the difference between our estimated and our actual return on assets.

During the three months ended June 30, 2021, we recorded a pre-tax remeasurement gain of $1.3 billion in our pension plans triggered by settlements, primarily driven by a $1.2 billion credit mainly due to changes in our discount rate and changes in our lump sum interest rate assumptions used to determine the current year liabilities of our pension plans and a $122 million credit resulting from the difference between our estimated and our actual return on assets.

2022 Collective Bargaining Negotiations

In July 2022, union members ratified the extension of our collective bargaining agreements with the Communications Workers of America and the International Brotherhood of Electrical Workers for three years, from August 5, 2023 until August 1, 2026.

Change in Defined Benefit Pension Plans

During the three months ended September 30, 2022, amendments were made to certain pension plans for certain union represented employees. The impact of the plan amendments was an increase in our defined benefit pension plan obligations of approximately $427 million, which has been recorded as a net decrease to Accumulated other comprehensive income of $317 million (net of taxes of $110 million). The impact of the amount recorded in Accumulated other comprehensive income that will be reclassified to net periodic benefit cost is minimal.

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Note 9. Equity and Accumulated Other Comprehensive Loss

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,	2022			2021
	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		13,872			13,403
Other (1)		(405)			(1)
Balance at end of period		13,467			13,402
Retained Earnings
Balance at beginning of period		76,401			66,310
Net income attributable to Verizon		4,900			6,407
Dividends declared ($0.6525, $0.6400 per share)		(2,741)			(2,651)
Other		(15)			(4)
Balance at end of period		78,545			70,062
Accumulated Other Comprehensive Loss
Balance at beginning of period attributable to Verizon		(1,320)			(234)
Foreign currency translation adjustments		(120)			(146)
Unrealized gain (loss) on cash flow hedges		22			(174)
Unrealized gain on fair value hedges		105			—
Unrealized loss on marketable securities		(8)			—
Defined benefit pension and postretirement plans		(379)			(155)
Other comprehensive loss		(380)			(475)
Balance at end of period attributable to Verizon		(1,700)			(709)
Treasury Stock
Balance at beginning of period	(91,719)	(4,020)		(151,318)	(6,632)
Employee plans	103	5		48	2
Balance at end of period	(91,616)	(4,015)		(151,270)	(6,630)
Deferred Compensation-ESOPs and Other
Balance at beginning of period		654			408
Restricted stock equity grant		98			85
Amortization		(10)			(3)
Balance at end of period		742			490
Noncontrolling Interests
Balance at beginning of period		1,341			1,428
Total comprehensive income		124			147
Distributions and other (1)		(150)			(130)
Balance at end of period		1,315			1,445
Total Equity		$	88,783		$	78,489

(1) 2022 period includes adjustments related to the acquisition of additional interests in certain controlled wireless partnerships.

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(dollars in millions, except per share amounts, and shares in thousands)
Nine months ended September 30,	2022			2021
	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		13,861			13,404
Other (1)		(394)			(2)
Balance at end of period		13,467			13,402
Retained Earnings
Balance at beginning of period		71,993			60,464
Net income attributable to Verizon		14,679			17,452
Dividends declared ($1.9325, $1.8950 per share)		(8,120)			(7,850)
Other		(7)			(4)
Balance at end of period		78,545			70,062
Accumulated Other Comprehensive Loss
Balance at beginning of period attributable to Verizon		(927)			(71)
Foreign currency translation adjustments		(285)			(126)
Unrealized gain (loss) on cash flow hedges		301			(42)
Unrealized loss on fair value hedges		(167)			—
Unrealized loss on marketable securities		(32)			(5)
Defined benefit pension and postretirement plans		(590)			(465)
Other comprehensive loss		(773)			(638)
Balance at end of period attributable to Verizon		(1,700)			(709)
Treasury Stock
Balance at beginning of period	(93,635)	(4,104)		(153,304)	(6,719)
Employee plans	2,016	89		2,031	89
Shareholder plans	3	—		3	—
Balance at end of period	(91,616)	(4,015)		(151,270)	(6,630)
Deferred Compensation-ESOPs and Other
Balance at beginning of period		538			335
Restricted stock equity grant		368			315
Amortization		(164)			(160)
Balance at end of period		742			490
Noncontrolling Interests
Balance at beginning of period		1,410			1,430
Total comprehensive income		371			429
Distributions and other (1)		(466)			(414)
Balance at end of period		1,315			1,445
Total Equity		$	88,783		$	78,489

(1) 2022 period includes adjustments related to the acquisition of additional interests in certain controlled wireless partnerships.

Common Stock

Verizon did not repurchase any shares of Verizon common stock through its previously authorized share buyback program during the nine months ended September 30, 2022. At September 30, 2022, 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 2.0 million shares of common stock issued from Treasury stock during the nine months ended September 30, 2022.

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Noncontrolling Interests

During the three months ended September 30, 2022, Verizon entered into and completed an agreement to acquire additional interests in certain controlled wireless partnerships for cash consideration of $458 million. Verizon continues to retain controlling financial interest within these partnerships, therefore the changes in ownership interest were accounted for as equity transactions which resulted in a reduction of additional paid-in capital of $406 million and noncontrolling interest of $52 million for both the three and nine months ended September 30, 2022. These transactions were recorded within Other, net cash flow from financing activities in our condensed consolidated statements of cash flows for the nine months ended September 30, 2022.

Accumulated Other Comprehensive Loss

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

(dollars in millions)	Foreign  currency translation adjustments		Unrealized gain (loss) on cash flow hedges		Unrealized loss on fair value hedges		Unrealized gain (loss) on marketable securities		Defined benefit pension and postretirement plans		Total
Balance at January 1, 2022	$	(545)	$	(1,472)	$	—	$	16	$	1,074	$	(927)
Excluded components recognized in other comprehensive income	—		—		(127)		—		—		(127)
Other comprehensive loss	(285)		(174)		—		(32)		(317)		(808)
Amounts reclassified to net income	—		475		(40)		—		(273)		162
Net other comprehensive income (loss)	(285)		301		(167)		(32)		(590)		(773)
Balance at September 30, 2022	$	(830)	$	(1,171)	$	(167)	$	(16)	$	484	$	(1,700)

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

Note 10. 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, TracFone brands 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.

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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. Refer to Note 3 for additional information on the sale of Verizon Media.

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions)	2022		2021		2022		2021
External Operating Revenues
Consumer
Service	$	18,421	$	16,889	$	54,696	$	50,159
Wireless equipment	5,558		4,530		16,640		13,461
Other(1)	1,809		1,852		5,247		5,807
Total Consumer	25,788		23,271		76,583		69,427
Business
Small and Medium Business	3,191		2,929		9,315		8,644
Global Enterprise	2,449		2,551		7,310		7,690
Public Sector and Other	1,531		1,548		4,587		4,807
Wholesale	656		645		1,926		2,038
Total Business	7,827		7,673		23,138		23,179
Total reportable segments	$	33,615	$	30,944	$	99,721	$	92,606
Intersegment Revenues
Consumer	$	52	$	57	$	153	$	176
Business	10		16		34		53
Total reportable segments	$	62	$	73	$	187	$	229
Total Operating Revenues
Consumer	$	25,840	$	23,328	$	76,736	$	69,603
Business(2)	7,837		7,689		23,172		23,232
Total reportable segments	$	33,677	$	31,017	$	99,908	$	92,835
Operating Income
Consumer	$	7,349	$	7,590	$	21,818	$	22,606
Business	698		886		2,046		2,641
Total reportable segments	$	8,047	$	8,476	$	23,864	$	25,247

(1) Other revenue includes fees that partially recover the direct and indirect costs of complying with regulatory and industry obligations and programs, revenues associated with certain products included in our device protection offerings, leasing and interest on equipment financed under a device payment plan agreement when sold to the customer by an authorized agent.

(2) Service and other revenues included in our Business segment amounted to $6.8 billion and $6.9 billion for the three months ended September 30, 2022 and 2021, respectively, and $20.2 billion and $20.9 billion for the nine months ended September 30, 2022 and 2021, respectively. Wireless equipment revenues included in our Business segment amounted to $1.0 billion and $820 million for the three months ended September 30, 2022 and 2021, respectively, and $2.9 billion and $2.4 billion for the nine months ended September 30, 2022 and 2021, respectively.

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions)	2022		2021		2022		2021
Consumer	$	2,902	$	2,893	$	8,708	$	8,648
Business	304		287		897		844
Total Fios revenue	$	3,206	$	3,180	$	9,605	$	9,492

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions)	2022		2021		2022		2021
Consumer	$	15,517	$	13,982	$	45,970	$	41,460
Business	3,273		3,097		9,580		9,247
Total Wireless service revenue	$	18,790	$	17,079	$	55,550	$	50,707

Reconciliation to Consolidated Financial Information

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

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions)	2022		2021		2022		2021
Total reportable segment operating revenues	$	33,677	$	31,017	$	99,908	$	92,835
Corporate and other	627		2,009		1,868		7,093
Eliminations	(63)		(111)		(192)		(382)
Total consolidated operating revenues	$	34,241	$	32,915	$	101,584	$	99,546

A reconciliation of the total reportable segment's operating income to consolidated income before provision for income taxes is as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions)	2022		2021		2022		2021
Total reportable segment operating income	$	8,047	$	8,476	$	23,864	$	25,247
Corporate and other	(85)		621		(299)		392
Other components of net periodic benefit charges (Note 8)	(68)		(192)		(323)		(576)
Loss on spectrum licenses (Note 3)	—		—		—		(223)
Total consolidated operating income	7,894		8,905		23,242		24,840
Equity in earnings of unconsolidated businesses	2		1		40		10
Other income (expense), net	(439)		269		(1,314)		1,172
Interest expense	(937)		(801)		(2,508)		(2,746)
Income Before Provision For Income Taxes	$	6,520	$	8,374	$	19,460	$	23,276

No single customer accounted for more than 10% of our total operating revenues during the three and nine months ended September 30, 2022 or 2021.

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

Note 11. Commitments and Contingencies

In the ordinary course of business, Verizon is involved in various commercial litigation and regulatory proceedings at the state and federal level. Where it is determined, in consultation with counsel based on litigation and settlement risks, that a loss is probable and estimable in a given matter, the Company establishes an accrual. In none of the currently pending matters is the amount of accrual material. An estimate of the reasonably possible loss or range of loss in excess of the amounts already accrued cannot be made at this time due to various factors typical in contested proceedings, including: (1) uncertain damage theories and demands; (2) a less than complete factual record; (3) uncertainty concerning legal theories and their resolution by courts or regulators; and (4) the unpredictable nature of the opposing party and its demands. We continuously monitor these proceedings as they develop and adjust any accrual or disclosure as needed. We do not expect that the ultimate resolution of any pending regulatory or legal matter in future periods will have a material effect on our financial condition, but it could have a material effect on our results of operations for a given reporting period.

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Verizon is currently involved in approximately 20 federal district court actions alleging that Verizon is infringing various patents. Most of these cases are brought by non-practicing entities and effectively seek only monetary damages; a small number are brought by companies that have sold products and could seek injunctive relief as well. These cases have progressed to various stages and a small number may go to trial in the coming 12 months if they are not otherwise resolved.

In connection with the execution of agreements for the sales of businesses and investments, Verizon ordinarily provides representations and warranties to the purchasers pertaining to a variety of nonfinancial matters, such as ownership of the securities being sold, as well as indemnity from certain financial losses. From time to time, counterparties may make claims under these provisions, and Verizon will seek to defend against those claims and resolve them in the ordinary course of business.

During the nine months ended September 30, 2022, Verizon entered into two renewable energy purchase agreements (REPAs) with third parties. Each of the REPAs is based on the expected operation of a renewable energy-generating facility and has a fixed price term from 12 to 15 years from commencement of the facility's entry into commercial operation. The REPAs generally are expected to be financially settled based on the prevailing market price as energy is generated by the facilities.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

Verizon Communications Inc. (Verizon or the Company) is a holding company that, acting through its subsidiaries, is one of the world’s leading providers of communications, technology, information and entertainment products and services to consumers, businesses and government entities. With a presence around the world, we offer data, video and voice services and solutions on our networks and platforms that are designed to meet customers’ demand for mobility, reliable network connectivity, security and control.

To compete effectively in today’s dynamic marketplace, we are focused on the capabilities of our high-performing networks to drive growth based on delivering what customers want and need in the digital world. In 2022, we are focused on leveraging our network leadership; retaining and growing our high-quality customer base while balancing profitability; enhancing ecosystems in growth businesses; and driving monetization of our networks, platforms and solutions. We are creating business value by earning customers', employees' and shareholders' trust, limiting our environmental impact and continuing our customer base growth while creating social benefit through our products and services. Our strategy requires significant capital investments primarily to acquire wireless spectrum, put the spectrum into service, provide additional capacity for growth in our networks, invest in the fiber that supports our businesses, evolve and maintain our networks and develop and maintain significant advanced information technology systems and data system capabilities. We believe that 2022 is a peak year of capital investment for us as we are rapidly deploying C-Band spectrum, which, together with our industry leading millimeter wave deployment, 4G LTE network, fiber infrastructure and other network deployments, will drive innovative products and services and fuel our growth.

We are consistently deploying new network architecture and technologies to secure our leadership in both fourth-generation (4G) and fifth-generation (5G) wireless networks. We expect that our next-generation multi-use platform, which we call the Intelligent Edge Network, will simplify operations by eliminating legacy network elements, speed the deployment of 5G wireless technology and create new opportunities in the business market in a cost efficient manner. Our network leadership is the hallmark of our brand and the foundation for the connectivity, platforms and solutions upon which we build our competitive advantage.

Highlights of Our Financial Results for the Three Months Ended September 30, 2022 and 2021

(dollars in millions)

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Highlights of Our Financial Results for the Nine Months Ended September 30, 2022 and 2021

(dollars in millions)

Business Overview

We have two reportable segments that we operate and manage as strategic business units - Verizon Consumer Group (Consumer) and Verizon Business Group (Business).

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Revenue by Segment for the Three Months Ended September 30, 2022 and 2021

Revenue by Segment for the Nine Months Ended September 30, 2022 and 2021

———

Note: Excludes eliminations.

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 United States (U.S.) under the Verizon brand, TracFone Wireless, Inc. (TracFone) brands 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. 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.

Customers can obtain our wireless services on a postpaid or prepaid basis. Our postpaid service is generally billed one month in advance for a monthly access charge in return for access to and usage of network services. Our prepaid service is offered only to Consumer customers and enables individuals to obtain wireless services without credit verification by paying for all services in advance. The Consumer segment also offers several categories of wireless equipment to customers, including a variety of smartphones and other handsets, wireless-enabled internet devices, such as tablets, and other wireless-enabled connected devices, such as smart watches.

In addition to the wireless services and equipment discussed above, Consumer sells residential fixed connectivity solutions, including internet, video and voice services, and wireless network access to resellers on a wholesale basis. The Consumer segment's operating revenues for the three and nine months ended September 30, 2022 totaled $25.8 billion and $76.7 billion, respectively, representing an increase of 10.8% and 10.2%, respectively, compared to the similar periods in 2021. See "Segment Results of Operations" for additional information regarding our Consumer segment’s operating performance and selected operating statistics.

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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 Internet of Things (IoT) services and products, including solutions that support fleet tracking management, compliance management, field service management, asset tracking and other types of mobile resource management. 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. The Business segment's operating revenues for the three and nine months ended September 30, 2022 totaled $7.8 billion and $23.2 billion, respectively, representing an increase of 1.9% and a decrease of 0.3%, respectively, compared to the similar periods in 2021. See "Segment Results of Operations" for additional information regarding our Business segment’s operating performance and selected operating statistics.

Corporate and Other

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 Group (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. See "Consolidated Results of Operations" for additional information regarding Corporate and other results.

Capital Expenditures and Investments

We continue to invest in our wireless networks, high-speed fiber and other advanced technologies to position ourselves at the center of growth trends for the future. During the nine months ended September 30, 2022, these investments included $15.8 billion for capital expenditures, inclusive of the C-Band capital expenditures described below. See "Cash Flows Used in Investing Activities" for additional information. Capital expenditures for 2022 are currently expected to be in the range of $16.5 billion to $17.5 billion, including the further expansion of our 5G network in new and existing markets, the densification of our 4G Long-Term Evolution (LTE) wireless network to manage future traffic demands, and the continued deployment of our fiber infrastructure. Expenditures related to the deployment of our C-Band spectrum will be in addition to this amount and are expected to be $5.0 billion to $6.0 billion in 2022. As of September 30, 2022, our capital expenditures include approximately $4.5 billion related to our C-Band spectrum deployment. We believe that our investments aimed at expanding our portfolio of products and services will provide our customers with an efficient, reliable infrastructure for participating in the information economy.

Global Network and Technology

We are focusing our capital spending on adding capacity and density to our 4G LTE network, while also building our next generation 5G network. We are densifying our networks by utilizing small cell technology, in-building solutions and distributed antenna systems. Network densification enables us to add capacity to address increasing mobile video consumption and the growing demand for IoT products and services on our 4G LTE and 5G networks. Over the past several years, we have been leading the development of 5G wireless technology industry standards and the ecosystems for fixed and mobile 5G wireless services. 5G technology can enable higher throughput and lower latency than the current 4G LTE technology and allows our networks to handle more traffic as the number of internet-connected devices grows. In January 2022, we began deploying C-Band spectrum, which as of September 30, 2022, covers approximately 163 million points of presence in the U.S. We expect to continue deploying C-Band spectrum as it becomes available to us through 2025. Our 5G Nationwide service uses low and mid-band spectrum and dynamic spectrum sharing (DSS) technology, which allows 5G service to run simultaneously with 4G LTE on multiple spectrum bands. With DSS, whenever customers move outside Verizon’s high-band Ultra Wideband coverage area, their 5G-enabled devices will remain on 5G technology using the lower spectrum bands where the 5G Nationwide network is available. This allows us to more fully and effectively utilize our current spectrum resources to serve both 4G and 5G customers.

To compensate for the shrinking market for traditional copper-based products, we continue to build fiber-based networks supporting data, video and advanced business services - areas where demand for reliable high-speed connections is growing. We are transforming the architecture of our networks into our Intelligent Edge Network, providing improved efficiency and virtualization, increased automation and opportunities for edge computing services that will support our fiber-based and radio access network technologies. We expect that this new architecture will simplify operations by eliminating legacy network elements, speed the deployment of 5G wireless technology and create new opportunities in the business market in a cost-efficient manner.

Impact of the COVID-19 Pandemic

The COVID-19 pandemic continues to evolve, and certain challenges across the economy remain, including as a result of new virus variants. We continue to monitor the evolution of the COVID-19 pandemic and remain committed to caring for the health

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and safety of our employees and customers while supporting the communities in which we operate. For a discussion of the impacts on and the risks to our business from the COVID-19 pandemic, refer to Part I, Item 1A "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2021.

Impact of Inflation

As a result of the inflationary environment in 2022 to date, we have experienced increases in our direct costs, including electricity and other energy-related costs for our network operations, transportation and labor costs, as well as increased interest expenses related to rising interest rates. We believe that this inflationary environment and the resulting decline in real wages in the U.S. are altering consumer preferences, and causing consumers to become more price conscious. We expect the inflationary environment and the resulting pressures to continue for the remainder of this year and potentially beyond. For a discussion of the risks relating to unfavorable economic conditions and inflation to our business, refer to Part I, Item 1A "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2021.

Consolidated Results of Operations

In this section, we discuss our overall results of operations and highlight special items, some of which are not included in our segment results. In "Segment Results of Operations" we review the performance of our two reportable segments in more detail.

Consolidated Revenues

	Three Months Ended								Nine Months Ended
	September 30,				Increase/				September 30,				Increase/
(dollars in millions)	2022		2021		(Decrease)				2022		2021		(Decrease)
Consumer	$	25,840	$	23,328	$	2,512	10.8	%	$	76,736	$	69,603	$	7,133	10.2	%
Business	7,837		7,689		148		1.9		23,172		23,232		(60)		(0.3)
Corporate and other	627		2,009		(1,382)		(68.8)		1,868		7,093		(5,225)		(73.7)
Eliminations	(63)		(111)		48		(43.2)		(192)		(382)		190		(49.7)
Consolidated Revenues	$	34,241	$	32,915	$	1,326	4.0		$	101,584	$	99,546	$	2,038	2.0

Consolidated revenues increased during both the three and nine months ended September 30, 2022, compared to the similar periods in 2021. The increase during the three months ended September 30, 2022 was due to revenue increases in our Consumer and Business segments, partially offset by a decrease in Corporate and other. The increase during the nine months ended September 30, 2022 was due to revenue increases in our Consumer segment, partially offset by decreases in our Business segment and Corporate and other.

Revenues for our segments are discussed separately below under the heading "Segment Results of Operations."

Corporate and other revenues decreased during both the three and nine months ended September 30, 2022 compared to the similar periods in 2021, primarily due to the Verizon Media sale which was completed in September 2021. Verizon Media's total operating revenues were approximately $1.4 billion and $5.3 billion for the three and nine months ended September 30, 2021, respectively. See Note 3 to the condensed consolidated financial statements for additional information on the Verizon Media sale.

Consolidated Operating Expenses

	Three Months Ended								Nine Months Ended
	September 30,				Increase/				September 30,				Increase/
(dollars in millions)	2022		2021		(Decrease)				2022		2021		(Decrease)
Cost of services	$	7,293	$	7,855	$	(562)	(7.2)	%	$	21,452	$	24,199	$	(2,747)	(11.4)	%
Cost of wireless equipment	7,308		5,673		1,635		28.8		21,919		17,106		4,813		28.1
Selling, general and administrative expense	7,422		6,521		901		13.8		22,090		21,246		844		4.0
Depreciation and amortization expense	4,324		3,961		363		9.2		12,881		12,155		726		6.0
Consolidated Operating Expenses	$	26,347	$	24,010	$	2,337	9.7		$	78,342	$	74,706	$	3,636	4.9

Operating expenses for our segments are discussed separately below under the heading "Segment Results of Operations."

Cost of Services

Cost of services includes the following costs directly attributable to a service: salaries and wages, benefits, materials and supplies, content costs, contracted services, network access and transport costs, customer provisioning costs, computer systems support, costs to support our outsourcing contracts and technical facilities and traffic acquisition costs. Aggregate customer service costs, which include billing and service provisioning, are allocated between Cost of services and Selling, general and administrative expense.

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Cost of services decreased during both the three and nine months ended September 30, 2022 compared to the similar periods in 2021.

The decrease during the three months ended September 30, 2022 was primarily due to:

•a decrease in traffic acquisition costs of $577 million primarily related to the sale of Verizon Media;

•a decrease in personnel costs of $166 million primarily related to the sale of Verizon Media;

•a decrease in digital content of $110 million primarily driven by the sale of Verizon Media;

•a decrease in other direct costs of $80 million primarily related to the sale of Verizon Media;

•an increase in access costs of $192 million primarily due to the inclusion of TracFone results, partially offset by a decline in voice services; and

•an increase in regulatory fees of $48 million related to a higher Federal Universal Service Fund (FUSF) volume and the inclusion of TracFone results.

The decrease during the nine months ended September 30, 2022 was primarily due to:

•a decrease in traffic acquisition costs of $2.2 billion primarily related to the sale of Verizon Media;

•a decrease in personnel costs of $726 million primarily related to the sale of Verizon Media;

•a decrease in other direct costs of $317 million primarily related to the sale of Verizon Media;

•a decrease in regulatory fees of $247 million due to a lower FUSF volume and rate;

•a decrease in digital content of $240 million primarily driven by the sale of Verizon Media;

•an increase in access costs of $529 million primarily due to the inclusion of TracFone results, partially offset by a decline in voice services; and

•an increase in rent expense of $178 million related to adding capacity to the networks to support demand and lease modifications for certain existing cell towers in April 2021 to support the build out of our 5G wireless network.

See Note 3 to the condensed consolidated financial statements for additional information on both the sale of Verizon Media and the acquisition of TracFone.

Cost of Wireless Equipment

Cost of wireless equipment increased during both the three and nine months ended September 30, 2022 compared to the similar periods in 2021.

The increase during the three months ended September 30, 2022 was primarily due to:

•an increase of $620 million driven by a higher volume of wireless devices sold primarily related to upgrades;

•an increase of $533 million due to the inclusion of TracFone results; and

•an increase of $456 million related to a shift to higher priced equipment in the mix of wireless devices sold.

The increase during the nine months ended September 30, 2022 was primarily due to:

•an increase of $2.0 billion driven by a higher volume of wireless devices sold primarily related to upgrades;

•an increase of $1.7 billion due to the inclusion of TracFone results; and

•an increase of $1.2 billion related to a shift to higher priced equipment in the mix of wireless devices sold.

Selling, General and Administrative Expense

Selling, general and administrative expense includes salaries and wages and benefits not directly attributable to a service or product, the provision for credit losses, taxes other than income taxes, advertising and sales commission costs, call center and information technology costs, regulatory fees, professional service fees and rent and utilities for administrative space. Also included is a portion of the aggregate customer care costs as discussed above in "Cost of Services."

Selling, general and administrative expense increased during both the three and nine months ended September 30, 2022 compared to the similar periods in 2021.

The increase during the three months ended September 30, 2022 was primarily due to:

•the $706 million net gain on the sale of Verizon Media in 2021 that did not reoccur; and

•an increase in the provision for credit losses of $189 million driven by increased device payment loan volume and an increase in the expected loss rate primarily as a result of the change in device payment plan terms to 36 months, as well as actions taken in prior years in response to the COVID-19 pandemic.

The increase during the nine months ended September 30, 2022 was primarily due to:

•the $706 million net gain on the sale of Verizon Media in 2021 that did not reoccur;

•an increase in the provision for credit losses of $445 million driven by increased device payment loan volume and an increase in the expected loss rate primarily as a result of the change in device payment plan terms to 36 months, as well as actions taken in prior years in response to the COVID-19 pandemic;

•an increase in personnel costs of $180 million primarily related to higher compensation and the inclusion of TracFone results, partially offset by a decrease due to the sale of Verizon Media;

39

•an increase in advertising expense of $171 million primarily due to the inclusion of TracFone results and the launch of the 5G Ultra campaign;

•a decrease of $251 million in other general expenses, primarily driven by lease terminations; and

•the $223 million loss resulting from agreements entered into to sell certain wireless licenses in 2021.

See Note 3 to the condensed consolidated financial statements for additional information on loss on spectrum licenses, the sale of Verizon Media and the acquisition of TracFone.

Depreciation and Amortization Expense

Depreciation and amortization expense increased during both the three and nine months ended September 30, 2022, compared to the similar periods in 2021. The increases were primarily due to the change in the mix of net depreciable and amortizable assets, including acquisition-related intangible assets, as well as deployment of C-Band.

Other Consolidated Results

Other Income (Expense), Net

Additional information relating to Other income (expense), net is as follows:

	Three Months Ended							Nine Months Ended
	September 30,				Increase/			September 30,				Increase/
(dollars in millions)	2022		2021		(Decrease)			2022		2021		(Decrease)
Interest income	$	32	$	11	$	21	nm	$	63	$	37	$	26	70.3	%
Other components of net periodic benefit income (cost)	(517)		204		(721)		nm	(217)		2,225		(2,442)		nm
Other, net	46		54		(8)		(14.8)	(1,160)		(1,090)		(70)		6.4
Total	$	(439)	$	269	$	(708)	nm	$	(1,314)	$	1,172	$	(2,486)	nm

nm - not meaningful

Other income (expense), net, reflects certain items not directly related to our core operations, including interest income, gains and losses from non-operating asset dispositions, debt extinguishment costs, components of net periodic pension and postretirement benefit cost and income and certain foreign exchange gains and losses.

Other income (expense), net changed during both the three and nine months ended September 30, 2022 compared to the similar periods in 2021.

The change during the three months ended September 30, 2022 was primarily due to:

•a pension remeasurement loss of $645 million in 2022 compared to a pension remeasurement loss of $144 million in 2021.

The change during the nine months ended September 30, 2022 was primarily due to:

•a pension remeasurement loss of $843 million in 2022 compared to a pension remeasurement gain of $1.2 billion in 2021.

Interest Expense

	Three Months Ended										Nine Months Ended
	September 30,						Increase/				September 30,						Increase/
(dollars in millions)	2022			2021			(Decrease)				2022			2021			(Decrease)
Total interest costs on debt balances	$	1,423		$	1,348		$	75	5.6	%	$	4,013		$	4,020		$	(7)	(0.2)	%
Less capitalized interest costs	486			547			(61)		(11.2)		1,505			1,274			231		18.1
Total	$	937		$	801		$	136	17.0		$	2,508		$	2,746		$	(238)	(8.7)
Average debt outstanding (1) (3)	$	148,729		$	151,347						$	151,762		$	145,984
Effective interest rate (2) (3)	3.8		%	3.6		%					3.5		%	3.7		%

(1)The average debt outstanding is a financial measure and is calculated by applying a simple average of prior months end balances of total short-term and long-term debt, net of discounts, premiums and unamortized debt issuance costs.

(2)The effective interest rate is the rate of actual interest incurred on debt. It is calculated by dividing the total interest costs on debt balances by the average debt outstanding.

(3)We believe that this measure is useful to management, investors and other users of our financial information in evaluating our debt financing cost and trends in our debt leverage management.

Total interest expense increased and decreased during the three and nine months ended September 30, 2022, respectively, compared to the similar periods in 2021.

40

The increase during the three months ended September 30, 2022 was primarily due to:

•an increase in interest costs due to higher average interest rates, partially offset by lower average debt balances; and

•a decrease in capitalized interest costs due to a higher amount of C-Band placed in service in 2022 and not being eligible for capitalization.

The decrease during the nine months ended September 30, 2022 was primarily due to:

•an increase in capitalized interest costs as a result of qualifying activities performed on C-Band licenses.

Provision for Income Taxes

	Three Months Ended										Nine Months Ended
	September 30,						Increase/				September 30,						Increase/
(dollars in millions)	2022			2021			(Decrease)				2022			2021			(Decrease)
Provision for income taxes	$	1,496		$	1,820		$	(324)	(17.8)	%	$	4,410		$	5,395		$	(985)	(18.3)	%
Effective income tax rate	22.9		%	21.7		%					22.7		%	23.2		%

The effective income tax rate is calculated by dividing the provision for income taxes by income before the provision for income taxes. The decrease in the provision for income taxes during the three and nine months ended September 30, 2022, compared to the similar periods in 2021, was primarily due to the decrease in income before income taxes in each of the current periods. The increase in the effective income tax rate during the three months ended September 30, 2022, compared to the similar period in 2021, was primarily due to a larger effective income tax rate benefit recognized in the prior period related to the sale of Verizon Media, partially offset by the effective income tax rate impact of lower income before income taxes in the current period. The decrease in the effective income tax rate during the nine months ended September 30, 2022, compared to similar period in 2021, was primarily due to the favorable resolution of various income tax matters as well as the effective income tax rate impact of lower income before income taxes in the current period, partially offset by the effective income tax rate benefit recognized in the prior period related to the sale of Verizon Media.

Unrecognized Tax Benefits

Unrecognized tax benefits were $2.9 billion and $3.1 billion at September 30, 2022 and December 31, 2021, respectively. Interest and penalties related to unrecognized tax benefits were $552 million (after-tax) and $551 million (after-tax) at September 30, 2022 and December 31, 2021, respectively.

Verizon and/or its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state, local and foreign jurisdictions. As a large taxpayer, we are under audit by the Internal Revenue Service and multiple state and foreign jurisdictions for various open tax years. It is reasonably possible that the amount of the liability for unrecognized tax benefits could change by a significant amount in the next twelve months. An estimate of the range of the possible change cannot be made until these tax matters are further developed or resolved.

Consolidated Net Income, Consolidated EBITDA and Consolidated Adjusted EBITDA

Consolidated earnings before interest, taxes, depreciation and amortization expense (Consolidated EBITDA) and Consolidated Adjusted EBITDA, which are presented below, are non-generally accepted accounting principles (GAAP) measures that we believe are useful to management, investors and other users of our financial information in evaluating operating profitability on a more variable cost basis as they exclude the depreciation and amortization expense related primarily to capital expenditures and acquisitions that occurred in prior years, as well as in evaluating operating performance in relation to Verizon’s competitors. Consolidated EBITDA is calculated by adding back interest, taxes, depreciation and amortization expense to net income.

Consolidated Adjusted EBITDA is calculated by excluding from Consolidated EBITDA the effect of the following non-operational items: equity in earnings of unconsolidated businesses and other income and expense, net, as well as the effect of certain special items. We believe that this measure is useful to management, investors and other users of our financial information in evaluating the effectiveness of our operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance. We believe that Consolidated Adjusted EBITDA is widely used by investors to compare a company’s operating performance to its competitors by minimizing impacts caused by differences in capital structure, taxes, and depreciation and amortization policies. Further, the exclusion of non-operational items and special items enables comparability to prior period performance and trend analysis. See "Special Items" for additional information.

It is management’s intent to provide non-GAAP financial information to enhance the understanding of Verizon’s GAAP financial information, and it should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure. We believe that providing these non-GAAP measures in addition to the GAAP measures allows management, investors and other users of our financial information to more fully and accurately assess both consolidated and segment performance. The non-GAAP financial information presented may be determined or calculated differently by other companies and may not be directly comparable to that of other companies.

41

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions)	2022		2021		2022		2021
Consolidated Net Income	$	5,024	$	6,554	$	15,050	$	17,881
Add:
Provision for income taxes	1,496		1,820		4,410		5,395
Interest expense	937		801		2,508		2,746
Depreciation and amortization expense (1)	4,324		3,961		12,881		12,155
Consolidated EBITDA	$	11,781	$	13,136	$	34,849	$	38,177
Add (Less):
Other (income) expense, net (2) (3)	$	439	$	(269)	$	1,314	$	(1,172)
Equity in earnings of unconsolidated businesses	(2)		(1)		(40)		(10)
Loss on spectrum licenses	—		—		—		223
Severance charges	—		103		—		103
Net gain from sale of Media	—		(706)		—		(706)
Consolidated Adjusted EBITDA	$	12,218	$	12,263	$	36,123	$	36,615

(1) Includes Amortization of acquisition-related intangible assets, which were $236 million and $711 million during the three and nine months ended September 30, 2022, respectively, and $57 million and $459 million during the three and nine months ended September 30, 2021, respectively. See "Special Items" for additional information.

(2) Includes Pension and benefits remeasurement charges of $645 million and $843 million during the three and nine months ended September 30, 2022, respectively, and charges of $144 million during the three months ended September 30, 2021 and credits of $1.2 billion during the nine months ended September 30, 2021. See "Special Items" and "Other Income (Expense), Net" for additional information.

(3) Includes Early debt redemption costs, which were $1.2 billion during the nine months ended September 30, 2022 and $1.1 billion during the nine months ended September 30, 2021. See "Special Items" and "Other Income (Expense), Net" for additional information.

The changes in Consolidated Net Income, Consolidated EBITDA and Consolidated Adjusted EBITDA in the table above during the three and nine months ended September 30, 2022, compared to the similar periods in 2021, were primarily a result of the factors described in connection with operating revenues and operating expenses.

Segment Results of Operations

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

To aid in the understanding of segment performance as it relates to segment operating income, management uses the following operating statistics to evaluate the overall effectiveness of our segments. We believe these operating statistics are useful to investors and other users of our financial information because they provide additional insight into drivers of our segments’ operating results, key trends and performance relative to our peers. These operating statistics may be determined or calculated differently by other companies and may not be directly comparable to those statistics of other companies.

Wireless retail connections are retail customer device postpaid and prepaid connections as of the end of the period. Retail connections under an account may include those from smartphones and basic phones (collectively, phones), as well as tablets and other internet devices, including FWA, wearables and retail IoT devices. Wireless retail connections are calculated by adding total retail postpaid and prepaid new connections in the period to prior period retail connections, and subtracting total retail postpaid and prepaid disconnects in the period.

Wireless retail postpaid connections are retail postpaid customer device connections as of the end of the period. Retail connections under an account may include those from phones, as well as tablets and other internet devices, including FWA, wearables and retail IoT devices. Wireless retail postpaid connections are calculated by adding retail postpaid new connections in the period to prior period retail postpaid connections, and subtracting retail postpaid disconnects in the period.

Wireless retail prepaid connections are retail prepaid customer device connections as of the end of the period. Wireless retail prepaid connections are calculated by adding retail prepaid new connections in the period to prior period retail prepaid connections, and subtracting retail prepaid disconnects in the period.

Fios internet connections are the total number of connections to the internet using Fios internet services as of the end of the period. Fios internet connections are calculated by adding Fios internet new connections in the period to prior period Fios internet connections, and subtracting Fios internet disconnects in the period.

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Fios video connections are the total number of connections to traditional linear video programming using Fios video services as of the end of the period. Fios video connections are calculated by adding Fios video net additions in the period to prior period Fios video connections. Fios video net additions are calculated by subtracting the Fios video disconnects from the Fios video new connections.

Total broadband connections are the total number of connections to the internet using Fios internet services, Digital Subscriber Line (DSL), and FWA as of the end of the period. Total broadband connections are calculated by adding total broadband connections, net additions in the period to prior period total broadband connections.

Wireless retail connections, net additions are the total number of additional retail customer device postpaid and prepaid connections, less the number of device disconnects in the period. Wireless retail connections, net additions in each period presented are calculated by subtracting the total retail postpaid and prepaid disconnects, net of certain adjustments, from the total retail postpaid and prepaid new connections in the period.

Wireless retail postpaid connections, net additions are the total number of additional retail customer device postpaid connections, less the number of device disconnects in the period. Wireless retail postpaid connections, net additions in each period presented are calculated by subtracting the retail postpaid disconnects, net of certain adjustments, from the retail postpaid new connections in the period.

Wireless retail prepaid connections, net additions are the total number of additional retail customer device prepaid connections, less the number of device disconnects in the period. Wireless retail prepaid connections, net additions in each period presented are calculated by subtracting the retail prepaid disconnects, net of certain adjustments, from the retail prepaid new connections in the period.

Wireless retail postpaid phone connections, net additions are the total number of additional retail customer postpaid phone connections, less the number of phone disconnects in the period. Wireless retail postpaid phone connections, net additions in each period presented are calculated by subtracting the retail postpaid phone disconnects, net of certain adjustments, from the retail postpaid phone new connections in the period.

Total broadband connections, net additions are the total number of additional total broadband connections, less the number of total broadband disconnects in the period. Total broadband connections, net additions in each period presented are calculated by subtracting the total broadband disconnects, net of certain adjustments, from the total broadband new connections in the period.

Wireless Churn is the rate at which service to retail, retail postpaid, or retail postpaid phone connections is terminated on average in the period. The churn rate in each period presented is calculated by dividing retail disconnects, retail postpaid disconnects, or retail postpaid phone disconnects by the average retail connections, average retail postpaid connections, or average retail postpaid phone connections, respectively, in the period.

Wireless retail postpaid ARPA is the calculated average retail postpaid service revenue per account (ARPA) from retail postpaid accounts in the period. Wireless retail postpaid service revenue does not include recurring device payment plan billings related to the Verizon device payment program, plan billings related to device warranty and insurance or regulatory fees. Wireless retail postpaid ARPA in each period presented is calculated by dividing retail postpaid service revenue by the average retail postpaid accounts in the period.

Wireless retail postpaid accounts are wireless retail customers that are directly served and managed under the Verizon brand and use its services as of the end of the period. Accounts include unlimited plans, shared data plans and corporate accounts, as well as legacy single connection plans and multi-connection family plans. A single account may include monthly wireless services for a variety of connected devices. Wireless retail postpaid accounts are calculated by adding retail postpaid new accounts to the prior period retail postpaid accounts.

Wireless retail postpaid connections per account is the calculated average number of retail postpaid connections per retail postpaid account as of the end of the period. Wireless retail postpaid connections per account is calculated by dividing the total number of retail postpaid connections by the number of retail postpaid accounts as of the end of the period.

Segment operating income margin reflects the profitability of the segment as a percentage of revenue. Segment operating income margin is calculated by dividing total segment operating income by total segment operating revenues.

Segment earnings before interest, taxes, depreciation and amortization (Segment EBITDA), which is presented below, is a non-GAAP measure and does not purport to be an alternative to operating income (loss) as a measure of operating performance. We believe this measure is useful to management, investors and other users of our financial information in evaluating operating profitability on a more variable cost basis as it excludes the depreciation and amortization expense related primarily to capital expenditures and acquisitions that occurred in prior years, as well as in evaluating operating performance in relation to our competitors. Segment EBITDA is calculated by adding back depreciation and amortization expense to segment operating income

43

(loss). Segment EBITDA margin is calculated by dividing Segment EBITDA by total segment operating revenues. See Note 10 to the condensed consolidated financial statements for additional information.

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, TracFone brands and through wholesale and other arrangements. We also provide 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.

Operating Revenues and Selected Operating Statistics

	Three Months Ended									Nine Months Ended
	September 30,						Increase/			September 30,						Increase/
(dollars in millions, except ARPA)	2022			2021			(Decrease)			2022			2021			(Decrease)
Service	$	18,421		$	16,891		$	1,530	9.1%	$	54,696		$	50,169		$	4,527	9.0%
Wireless equipment	5,558			4,530			1,028		22.7	16,640			13,461			3,179		23.6
Other	1,861			1,907			(46)		(2.4)	5,400			5,973			(573)		(9.6)
Total Operating Revenues	$	25,840		$	23,328		$	2,512	10.8	$	76,736		$	69,603		$	7,133	10.2
Connections (‘000):(1)
Wireless retail postpaid										91,478			90,916			562		0.6
Wireless retail prepaid (2)(3)										23,076			4,072			19,004		nm
Total wireless retail										114,554			94,988			19,566		20.6
Fios internet										6,684			6,490			194		3.0
Fios video										3,314			3,642			(328)		(9.0)
Total broadband										7,597			6,921			676		9.8
Net Additions in Period (‘000):(4)
Wireless retail postpaid	28			423			(395)		(93.4)	(14)			447			(461)		nm
Wireless retail prepaid (2)(5)	39			(4)			43		nm	(270)			33			(303)		nm
Total wireless retail	67			419			(352)		(84.0)	(284)			480			(764)		nm
Wireless retail postpaid phones	(189)			267			(456)		nm	(696)			239			(935)		nm
Total broadband	272			101			171		nm	602			260			342		nm
Churn Rate:
Wireless retail (5)	1.66		%	0.98		%				1.57		%	1.02		%
Wireless retail postpaid	1.10		%	0.84		%				0.99		%	0.88		%
Wireless retail postpaid phones	0.88		%	0.67		%				0.80		%	0.69		%
Account Statistics:
Wireless retail postpaid ARPA	$	127.76		$	123.04		$	4.72	3.8	$	125.29		$	121.71		$	3.58	2.9
Wireless retail postpaid accounts (‘000) (1)										33,251			33,640			(389)		(1.2)
Wireless retail postpaid connections per account (1)										2.75			2.70			0.05		1.9

(1)As of end of period

(2)Acquisition of TracFone was completed on November 23, 2021. See Note 3 to the condensed consolidated financial statements for additional information.

(3)Reflects a decline in the customer base for wireless retail prepaid connections of approximately 504,000, primarily related to the shutdown of our competitors' 3G networks.

(4)Includes certain adjustments

(5)Excludes the impact primarily related to the shutdown of our competitors' 3G networks resulting in approximately 402,000 retail prepaid disconnects in the second quarter of 2022 and 102,000 retail prepaid disconnects in the third quarter of 2022.

nm - not meaningful

Consumer’s total operating revenues increased during both the three and nine months ended September 30, 2022, compared to the similar periods in 2021, as a result of increases in Service revenue and Wireless equipment revenue, partially offset by decreases in Other revenues.

44

Service Revenue

Service revenue increased during both the three and nine months ended September 30, 2022, compared to the similar periods in 2021, primarily driven by increases in wireless service revenue and Fios service revenue.

Wireless service revenue increased $1.5 billion during the three months ended September 30, 2022 primarily due to:

•an increase of $1.1 billion, representing the net impact of the acquisition of TracFone in the fourth quarter of 2021;

•an increase of $252 million in access revenues related to our postpaid plans driven by recent pricing actions, mobile security products included in certain protection packages, cloud services, additional connections and migrations to higher priced plans, partially offset by related promotions;

•an increase of $102 million in TravelPass revenues due to an increase in customer international travel; and

•an increase of $55 million related to growth in non-retail service revenue.

Wireless service revenue increased $4.5 billion during the nine months ended September 30, 2022 primarily due to:

•an increase of $3.4 billion, representing the net impact of the acquisition of TracFone in the fourth quarter of 2021;

•an increase of $647 million in access revenues related to our postpaid plans driven by mobile security products included in certain protection packages, recent pricing actions, cloud services, and additional connections and migrations to higher priced plans, partially offset by related promotions;

•an increase of $271 million in TravelPass revenues due to an increase in customer international travel; and

•an increase of $201 million related to growth in non-retail service revenue.

For the three and nine months ended September 30, 2022, Fios service revenue totaled $2.7 billion and $8.2 billion, respectively, representing an increase of $22 million and $117 million, respectively, compared to the similar periods in 2021. The increases are primarily due to an increase in Fios internet connections, reflecting increased demand for higher broadband speeds, partially offset by a decrease in Fios voice and video revenues.

Wireless Equipment Revenue

Wireless equipment revenue increased during both the three and nine months ended September 30, 2022 compared to the similar periods in 2021.

The increase during the three months ended September 30, 2022 was primarily due to:

•an increase of $426 million driven by a higher volume of wireless devices sold, primarily related to a higher rate of upgrades, partially offset by related promotions;

•an increase of $415 million related to a shift to higher priced equipment in the mix of wireless devices sold; and

•an increase of $187 million due to the inclusion of TracFone results.

The increase during the nine months ended September 30, 2022 was primarily due to:

•an increase of $1.3 billion driven by a higher volume of wireless devices sold, primarily related to a higher rate of upgrades, partially offset by related promotions;

•an increase of $1.2 billion related to a shift to higher priced equipment in the mix of wireless devices sold; and

•an increase of $650 million due to the inclusion of TracFone results.

Other Revenue

Other revenue includes fees that partially recover the direct and indirect costs of complying with regulatory and industry obligations and programs, revenues associated with certain products included in our device protection offerings, leasing and interest on equipment financed under a device payment plan agreement when sold to the customer by an authorized agent.

Other revenue decreased during both the three and nine months ended September 30, 2022 compared to the similar periods in 2021.

The decrease during the three months ended September 30, 2022 was primarily due to:

•a decrease of $69 million that resulted from an update to our device protection offering which increased the price of the bundled offering and changed the product mix within the offering such that a smaller amount of the overall device protection revenue is recognized in Other revenue;

•a decrease of $20 million related to financing revenues from our device payment program mainly due to an increase in contract terms to 36 months;

•a decrease of $18 million in other regulatory surcharges; and

•an increase in FUSF revenue of $66 million related to volumes and the inclusion of TracFone results.

The decrease during the nine months ended September 30, 2022 was primarily due to:

•a decrease of $435 million that resulted from an update to our device protection offering which increased the price of the bundled offering and changed the product mix within the offering such that a smaller amount of the overall device protection revenue is recognized in Other revenue;

45

•a decrease of $62 million related to financing revenues from our device payment program mainly due to an increase in contract terms to 36 months;

•a decrease of $49 million related to a lower FUSF rate and resulting surcharges, offset by the inclusion of TracFone results; and

•a decrease of $34 million in other regulatory surcharges.

Operating Expenses

	Three Months Ended								Nine Months Ended
	September 30,				Increase/				September 30,				Increase/
(dollars in millions)	2022		2021		(Decrease)				2022		2021		(Decrease)
Cost of services	$	4,566	$	4,149	$	417	10.1	%	$	13,296	$	12,330	$	966	7.8	%
Cost of wireless equipment	5,963		4,611		1,352		29.3		17,997		13,857		4,140		29.9
Selling, general and administrative expense	4,730		4,060		670		16.5		14,020		12,131		1,889		15.6
Depreciation and amortization expense	3,232		2,918		314		10.8		9,605		8,679		926		10.7
Total Operating Expenses	$	18,491	$	15,738	$	2,753	17.5		$	54,918	$	46,997	$	7,921	16.9

Cost of Services

Cost of services increased during both the three and nine months ended September 30, 2022 compared to the similar periods in 2021.

The increase during the three months ended September 30, 2022 was primarily due to:

•an increase in access costs of $233 million primarily due to the inclusion of TracFone results; and

•an increase in regulatory fees of $66 million related to higher FUSF volumes and the inclusion of TracFone results.

The increase during the nine months ended September 30, 2022 was primarily due to:

•an increase in access costs of $764 million primarily due to the inclusion of TracFone results; and

•an increase in rent expense of $164 million related to adding capacity to the networks to support demand and lease modifications for certain existing cell towers in April 2021 in connection with the build out of our 5G wireless network.

Cost of Wireless Equipment

Cost of wireless equipment increased during both the three and nine months ended September 30, 2022 compared to the similar periods in 2021.

The increase during the three months ended September 30, 2022 was primarily due to:

•an increase of $533 million due to the inclusion of TracFone results;

•an increase of $456 million driven by a higher volume of wireless devices sold, primarily related to a higher rate of upgrades; and

•an increase of $350 million related to a shift to higher priced equipment in the mix of wireless devices sold.

The increase during the nine months ended September 30, 2022 was primarily due to:

•an increase of $1.7 billion due to the inclusion of TracFone results;

•an increase of $1.6 billion driven by a higher volume of wireless devices sold, primarily related to a higher rate of upgrades; and

•an increase of $917 million related to a shift to higher priced equipment in the mix of wireless devices sold.

Selling, General and Administrative Expense

Selling, general and administrative expense increased during both the three and nine months ended September 30, 2022 compared to the similar periods in 2021.

The increase during the three months ended September 30, 2022 was primarily due to:

•an increase in personnel costs of $360 million primarily due to higher compensation and the inclusion of TracFone results;

•an increase in provision for credit losses of $173 million driven by increased device payment loan volume and an increase in the expected loss rate primarily as a result of the change in device payment plan terms to 36 months, as well as actions taken in prior years in response to the COVID-19 pandemic; and

•an increase in advertising expenses of $101 million primarily due to the inclusion of TracFone results and brand marketing.

The increase during the nine months ended September 30, 2022 was primarily due to:

•an increase in personnel costs of $1.0 billion primarily due to the inclusion of TracFone results and higher compensation;

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•an increase in advertising expense of $438 million primarily due to the inclusion of TracFone results and brand marketing, including the launch of the 5G Ultra campaign earlier in the year; and

•an increase in provision for credit losses of $403 million driven by increased device payment loan volume and an increase in the expected loss rate primarily as a result of the change in device payment plan terms to 36 months, as well as actions taken in prior years in response to the COVID-19 pandemic.

Depreciation and Amortization Expense

Depreciation and amortization expense increased during both the three and nine months ended September 30, 2022, compared to the similar periods in 2021, driven by the change in the mix of total Verizon depreciable and amortizable assets and Consumer's usage of those assets.

Segment Operating Income and EBITDA 

	Three Months Ended										Nine Months Ended
	September 30,						Increase/				September 30,						Increase/
(dollars in millions)	2022			2021			(Decrease)				2022			2021			(Decrease)
Segment Operating Income	$	7,349		$	7,590		$	(241)	(3.2)	%	$	21,818		$	22,606		$	(788)	(3.5)	%
Add Depreciation and amortization expense	3,232			2,918			314		10.8		9,605			8,679			926		10.7
Segment EBITDA	$	10,581		$	10,508		$	73	0.7		$	31,423		$	31,285		$	138	0.4
Segment operating income margin	28.4		%	32.5		%					28.4		%	32.5		%
Segment EBITDA margin	40.9		%	45.0		%					40.9		%	44.9		%

The changes in the table above during the three and nine months ended September 30, 2022, compared to the similar periods in 2021, were primarily a result of the factors described in connection with operating revenues and operating expenses.

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. The Business segment is organized in four customer groups: Small and Medium Business, Global Enterprise, Public Sector and Other, and Wholesale.

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Operating Revenues and Selected Operating Statistics

	Three Months Ended										Nine Months Ended
	September 30,						Increase/				September 30,				Increase/
(dollars in millions)	2022			2021			(Decrease)				2022		2021		(Decrease)
Small and Medium Business	$	3,196		$	2,937		$	259	8.8	%	$	9,329	$	8,662	$	667	7.7	%
Global Enterprise	2,449			2,552			(103)		(4.0)		7,311		7,694		(383)		(5.0)
Public Sector and Other	1,531			1,547			(16)		(1.0)		4,587		4,807		(220)		(4.6)
Wholesale	661			653			8		1.2		1,945		2,069		(124)		(6.0)
Total Operating Revenues(1)	$	7,837		$	7,689		$	148	1.9		$	23,172	$	23,232	$	(60)	(0.3)
Connections (‘000):(2)
Wireless retail postpaid											28,584		26,998		1,586		5.9
Fios internet											370		352		18		5.1
Fios video											69		72		(3)		(4.2)
Total broadband											913		555		358		64.5
Net Additions in Period (‘000):(3)
Wireless retail postpaid	360			276			84		30.4		1,185		610		575		94.3
Wireless retail postpaid phones	197			162			35		21.6		680		287		393		nm
Total broadband	105			28			77		nm		272		43		229		nm
Churn Rate:
Wireless retail postpaid	1.42		%	1.29		%					1.38%		1.28%
Wireless retail postpaid phones	1.10		%	1.04		%					1.08%		1.04%

(1)Service and other revenues included in our Business segment amounted to approximately $6.8 billion and $6.9 billion for the three months ended September 30, 2022 and 2021, respectively. Service and other revenues included in our Business segment amounted to approximately $20.2 billion and $20.9 billion for the nine months ended September 30, 2022 and 2021, respectively. Wireless equipment revenues included in our Business segment amounted to approximately $1.0 billion and $820 million for the three months ended September 30, 2022 and 2021, respectively, and $2.9 billion and $2.4 billion for the nine months ended September 30, 2022 and 2021, respectively.

(2)As of end of period

(3)Includes certain adjustments

nm - not meaningful

Business’s total operating revenues increased during the three months ended September 30, 2022, and decreased during the nine months ended September 30, 2022, compared to the similar periods in 2021. The increase during the three months ended September 30, 2022 was a result of increases in Small and Medium Business and Wholesale revenues, partially offset by decreases in Global Enterprise and Public Sector and Other revenues. The decrease during the nine months ended September 30, 2022 was a result of decreases in Global Enterprise, Public Sector and Other and Wholesale revenues, partially offset by an increase in Small and Medium Business revenues.

Small and Medium Business

Small and Medium Business offers wireless services and equipment, conferencing services, tailored voice and networking products, Fios services, Internet Protocol networking, advanced voice solutions and security and managed information technology services to our U.S.-based small and medium businesses that do not meet the requirements to be categorized as Global Enterprise, as described below.

Small and Medium Business revenues increased during both the three and nine months ended September 30, 2022 compared to the similar periods in 2021.

The increase during the three months ended September 30, 2022 was primarily due to:

•an increase in wireless equipment revenue of $144 million driven by a higher volume of devices sold and a shift to higher priced equipment in the mix of devices sold;

•an increase in wireless service revenue of $124 million primarily driven by an increase in the amount of wireless retail postpaid connections as well as the economic adjustment charge that went into place in the second quarter of 2022; and

•a decrease of $22 million related to the loss of voice and DSL service connections.

The increase during the nine months ended September 30, 2022 was primarily due to:

•an increase of $418 million in wireless equipment revenue driven by a higher volume of devices sold and a shift to higher priced equipment in the mix of devices sold;

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•an increase in wireless service revenue of $293 million driven by an increase in the amount of wireless retail postpaid connections as well as the economic adjustment charge that went into place in the second quarter of 2022; and

•a decrease of $63 million related to the loss of voice and DSL service connections.

For the three and nine months ended September 30, 2022, Fios revenues totaled $259 million and $767 million, respectively, which represents an increase of $11 million and $35 million, respectively, compared to the similar periods in 2021. The increase was primarily related to increases in total connections, as well as increased demand for higher broadband speeds.

Global Enterprise

Global Enterprise offers services to large businesses, which are identified based on their size and volume of business with Verizon, as well as non-U.S. public sector customers.

Global Enterprise revenues decreased during both the three and nine months ended September 30, 2022 compared to the similar periods in 2021.

The decrease during the three months ended September 30, 2022 was primarily due to:

•a decrease of $100 million in traditional data and voice communication services related to secular pressures in the marketplace.

The decrease during the nine months ended September 30, 2022 was primarily due to:

•a decrease of $319 million in traditional data and voice communication services related to secular pressures in the marketplace;

•a decrease of $113 million due to lower FUSF volume and rate along with resulting surcharges; and

•an increase of $125 million in wireless equipment revenue driven by a shift to higher priced equipment in the mix of devices sold and a higher volume of devices sold.

Public Sector and Other

Public Sector and Other offers wireless products and services as well as wireline connectivity and managed solutions to U.S. federal, state and local governments and educational institutions. These services include business services and connectivity similar to the products and services offered by Global Enterprise, in each case, with features and pricing designed to address the needs of governments and educational institutions.

Public Sector and Other revenues remained relatively flat during the three months ended September 30, 2022 and decreased during the nine months ended September 30, 2022, compared to the similar periods in 2021.

The decrease during the nine months ended September 30, 2022 was primarily due to:

•a decrease of $124 million in networking revenue and traditional voice communication services;

•a decrease of $40 million related to lower FUSF volume and rate along with resulting surcharges; and

•a decrease of $29 million in customer premise equipment due to lower volumes sold.

Wholesale

Wholesale offers wireline communications services including data, voice, local dial tone and broadband services primarily to local, long distance, and wireless carriers that use our facilities to provide services to their customers.

Wholesale revenues remained relatively flat during the three months ended September 30, 2022 and decreased during the nine months ended September 30, 2022, compared to the similar periods in 2021.

The decrease during the nine months ended September 30, 2022 was primarily due to:

•a decrease of $124 million related to declines in traditional voice communication and network connectivity as a result of technology substitution and rationalization of international traffic, as well as a decrease in core data.

Operating Expenses

	Three Months Ended								Nine Months Ended
	September 30,				Increase/				September 30,				Increase/
(dollars in millions)	2022		2021		(Decrease)				2022		2021		(Decrease)
Cost of services	$	2,653	$	2,647	$	6	0.2	%	$	7,818	$	8,066	$	(248)	(3.1)	%
Cost of wireless equipment	1,344		1,061		283		26.7		3,922		3,248		674		20.8
Selling, general and administrative expense	2,063		2,077		(14)		(0.7)		6,172		6,231		(59)		(0.9)
Depreciation and amortization expense	1,079		1,018		61		6.0		3,214		3,046		168		5.5
Total Operating Expenses	$	7,139	$	6,803	$	336	4.9		$	21,126	$	20,591	$	535	2.6

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Cost of Services

Cost of services remained relatively flat during the three months ended September 30, 2022 and decreased during the nine months ended September 30, 2022, compared to the similar periods in 2021.

The decrease during the nine months ended September 30, 2022 was primarily due to:

•a decrease in access costs of $220 million resulting from a decline in voice services;

•a decrease in regulatory fees of $212 million primarily related to lower FUSF volume and rate;

•an increase in building and facilities costs of $55 million due to higher utility rates;

•an increase in network and equipment maintenance of $47 million primarily related to fleet maintenance; and

•an increase in other direct costs of $31 million driven by professional services.

Cost of Wireless Equipment

Cost of wireless equipment increased during both the three and nine months ended September 30, 2022 compared to the similar periods in 2021.

The increase during the three months ended September 30, 2022 was primarily due to:

•an increase of $148 million driven by a higher volume of wireless devices sold; and

•an increase of $119 million related to a shift to higher priced equipment in the mix of wireless devices sold.

The increase during the nine months ended September 30, 2022 was primarily due to:

•an increase of $415 million driven by a higher volume of wireless devices sold;

•an increase of $329 million related to a shift to higher priced equipment in the mix of wireless devices sold; and

•a decrease of $68 million due to a product recall undertaken for certain jetpack units in 2021.

Selling, General and Administrative Expense

Selling, general and administrative expense remained relatively flat during the three months ended September 30, 2022 and decreased during the nine months ended September 30, 2022, compared to the similar periods in 2021.

The decrease during the nine months ended September 30, 2022 was primarily due to:

•a decrease of $73 million primarily due to gains recognized in connection with insignificant divestiture and other activity;

•a decrease of $56 million primarily due to taxes other than income mainly driven by a one-time international tax benefit;

•a decrease in regulatory fees of $25 million primarily due to rate changes; and

•an increase in personnel expense of $116 million primarily related to higher compensation.

Depreciation and Amortization Expense

Depreciation and amortization expense increased during both the three and nine months ended September 30, 2022, compared to the similar periods in 2021, driven by the change in the mix of total Verizon depreciable and amortizable assets and Business usage of those assets.

Segment Operating Income and EBITDA 

	Three Months Ended										Nine Months Ended
	September 30,						Increase/				September 30,						Increase/
(dollars in millions)	2022			2021			(Decrease)				2022			2021			(Decrease)
Segment Operating Income	$	698		$	886		$	(188)	(21.2)	%	$	2,046		$	2,641		$	(595)	(22.5)	%
Add Depreciation and amortization expense	1,079			1,018			61		6.0		3,214			3,046			168		5.5
Segment EBITDA	$	1,777		$	1,904		$	(127)	(6.7)		$	5,260		$	5,687		$	(427)	(7.5)
Segment operating income margin	8.9		%	11.5		%					8.8		%	11.4		%
Segment EBITDA margin	22.7		%	24.8		%					22.7		%	24.5		%

The changes in the table above during the three and nine months ended September 30, 2022 compared to the similar period in 2021 were primarily a result of the factors described in connection with operating revenues and operating expenses.

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Special Items

Special items included in Income Before Provision For Income Taxes were as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions)	2022		2021		2022		2021
Amortization of acquisition-related intangible assets(1) (2)
Depreciation and amortization expense	$	236	$	57	$	711	$	459
Severance, pension and benefits charges (credits)
Selling, general and administrative expense	—		103		—		103
Other (income) expense, net	645		144		843		(1,170)
Early debt redemption costs
Other (income) expense, net	—		—		1,241		1,132
Net gain from sale of Media
Selling, general and administrative expense	—		(706)		—		(706)
Loss on spectrum licenses
Selling, general and administrative expense	—		—		—		223
Total	$	881	$	(402)	$	2,795	$	41

(1) Certain amounts have been reclassified to conform to the current period presentation.

(2) Amounts are included in segment results of operations.

Consolidated Adjusted EBITDA (non-GAAP measure) presented in the section titled "Consolidated Net Income, Consolidated EBITDA and Consolidated Adjusted EBITDA" excludes all of the amounts listed above.

The income and expenses related to special items included in our condensed consolidated results of operations were as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions)	2022		2021		2022		2021
Within Total Operating Expenses(1)	$	236	$	(546)	$	711	$	79
Within Other (income) expense, net	645		144		2,084		(38)
Total	$	881	$	(402)	$	2,795	$	41

(1) Certain amounts have been reclassified to conform to the current period presentation.

Amortization of Acquisition-Related Intangible Assets

During the three and nine months ended September 30, 2022, we recorded pre-tax amortization expense of $236 million and $711 million, respectively, related to acquired intangible assets.

During the three and nine months ended September 30, 2021, we recorded pre-tax amortization expense of $57 million and $459 million, respectively, related to acquired intangible assets.

Severance, Pension and Benefits Charges (Credits)

During the three and nine months ended September 30, 2022, we recorded a net pre-tax remeasurement loss of $645 million and $843 million, respectively, in our pension plans triggered by settlements as well as amendments to our collective bargaining agreements. Pension and benefit activity is recognized in the income statement during the fourth quarter or upon a remeasurement event pursuant to our accounting policy for the recognition of actuarial gains and losses.

During the three months ended September 30, 2022, we recorded a net pre-tax remeasurement loss of $645 million in our pension plans triggered by settlements as well as amendments to our collective bargaining agreements, primarily driven by a $3.5 billion charge resulting from the difference between our estimated and actual return on assets, partially offset by a credit of $2.9 billion mainly due to changes in our discount rate and changes in our lump sum interest rate assumptions used to determine the current year liabilities of our pension plans.

During the three months ended June 30, 2022, we recorded a net pre-tax remeasurement loss of $198 million in our pension plans triggered by settlements, primarily driven by a $654 million charge resulting from the difference between our estimated and actual return on assets, partially offset by a credit of $456 million mainly due to changes in our discount rate and changes in our lump sum interest rate assumptions used to determine the current year liabilities of our pension plans

During the three and nine months ended September 30, 2021, we recorded a net pre-tax remeasurement loss of $144 million and a net pre-tax remeasurement gain of $1.2 billion, respectively, in our pension plans triggered by settlements. During both the three and nine months ended September 30, 2021, we also recorded pre-tax severance charges of $103 million related to

51

voluntary separations under our existing plans in Selling, general and administrative expense in our condensed consolidated statements of income.

During the three months ended September 30, 2021, we recorded a net pre-tax remeasurement loss of $144 million driven by a $667 million charge due to changes in our discount rate and other assumption changes, offset by a $523 million credit resulting from the difference between our estimated and our actual return on assets.

During the three months ended June 30, 2021, we recorded a pre-tax remeasurement gain of $1.3 billion in our pension plans triggered by settlements, primarily driven by a $1.2 billion credit mainly due to changes in our discount rate and changes in our lump sum interest rate assumptions used to determine the current year liabilities of our pension plans and a $122 million credit resulting from the difference between our estimated and our actual return on assets.

See Note 8 to the condensed consolidated financial statements for additional information.

Early Debt Redemption Costs

During the nine months ended September 30, 2022, we recorded pre-tax early debt redemption costs of $1.2 billion primarily in connection with tender offers. See Note 5 to the condensed consolidated financial statements for additional information.

During the nine months ended September 30, 2021, we recorded pre-tax early debt redemption costs of $1.1 billion in connection with the redemptions of securities issued by Verizon and open market repurchases of various Verizon and subsidiary notes.

Net Gain from Sale of Media

During both the three and nine months ended September 30, 2021, we recorded a net pre-tax gain of $706 million in connection with the sale of Verizon Media. See Note 3 to the condensed consolidated financial statements for additional information.

Loss on Spectrum Licenses

During the nine months ended September 30, 2021, we recognized a pre-tax loss of $223 million as a result of signing two agreements to sell certain wireless licenses. See Note 3 to the condensed consolidated financial statements for additional information.

Consolidated Financial Condition

	Nine Months Ended
	September 30,
(dollars in millions)	2022		2021		Change
Cash Flows Provided By (Used In)
Operating activities	$	28,199	$	31,162	$	(2,963)
Investing activities	(23,320)		(57,018)		33,698
Financing activities	(5,453)		13,469		(18,922)
Decrease in cash, cash equivalents and restricted cash	$	(574)	$	(12,387)	$	11,813

We use the net cash generated from our operations to fund expansion and modernization of our networks, service and repay external financing, pay dividends, invest in new businesses and spectrum and, when appropriate, buy back shares of our outstanding common stock. Our sources of funds, primarily from operations and, to the extent necessary, from external financing arrangements, are sufficient to meet ongoing operating and investing requirements over the next 12 months and beyond.

Our cash and cash equivalents are held both domestically and internationally, and are invested to maintain principal and provide liquidity. See "Market Risk" for additional information regarding our foreign currency risk management strategies.

We expect that our capital spending requirements will continue to be financed primarily through internally generated funds. Debt or equity financing may be needed to fund additional investments or development activities, or to maintain an appropriate capital structure to ensure our financial flexibility. Our external financing arrangements include credit facilities and other bank lines of credit, an active commercial paper program, vendor financing arrangements, issuances of registered debt or equity securities, U.S. retail medium-term notes and other securities that are privately-placed or offered overseas. In addition, we monetize certain receivables through asset-backed debt transactions.

Cash Flows Provided By Operating Activities

Our primary source of funds continues to be cash generated from operations. Net cash provided by operating activities decreased $3.0 billion during the nine months ended September 30, 2022, compared to the similar period in 2021, primarily due to changes in working capital driven by a change in receivables due to an increase in activation volumes and the change in

52

device payment plan terms to 36 months, as well as impacts from increased inventory levels to manage the supply chain. This decrease was further driven by a decrease in earnings. As a result of prior years' discretionary contributions, strong long-term asset returns, and liability hedging asset strategies (where the performance of the assets is expected to closely match the performance of the liabilities), we expect that there will be no required pension funding through 2031, subject to changes in market conditions.

Cash Flows Used In Investing Activities

Capital Expenditures

Capital expenditures continue to relate primarily to the use of capital resources to increase the operating efficiency and productivity of our networks, maintain our existing infrastructure, facilitate the introduction of new products and services and enhance responsiveness to competitive challenges.

Capital expenditures, including capitalized software, for the nine months ended September 30, 2022 and 2021 were $15.8 billion and $13.9 billion, respectively. Capital expenditures increased approximately $2.0 billion during the nine months ended September 30, 2022, compared to the similar period in 2021, primarily due to accelerating our 5G technology deployment. See "Global Network and Technology" for more details.

Acquisitions of Wireless Licenses

During the nine months ended September 30, 2021, we paid approximately $45.9 billion for spectrum licenses in connection with Auction 107, of which $1.3 billion was paid for certain obligations related to projected clearing costs. During the nine months ended September 30, 2022, we made additional payments of $1.6 billion for obligations related to accelerated clearing incentives and clearing costs associated with the auction.

During the nine months ended September 30, 2022 and 2021, we recorded capitalized interest related to wireless licenses of $1.3 billion and $1.1 billion, respectively.

During the nine months ended September 30, 2022 and 2021, we entered into and completed various other wireless license acquisitions for cash consideration of an insignificant amount and $95 million, respectively.

Cash Received (Paid) Related to Acquisitions of Businesses, Net of Cash Acquired

In September 2020, we entered into a purchase agreement to acquire TracFone, a provider of prepaid and value mobile services in the U.S. The transaction closed in November 2021. In May 2022, Verizon received net cash proceeds of $248 million for the final settlement of working capital, which was included in our consideration as of the Acquisition Date. See Note 3 to the condensed consolidated financial statements for additional information.

In October 2020, we entered into a definitive agreement to acquire certain assets of Bluegrass Cellular (Bluegrass), a rural wireless operator serving central Kentucky. The transaction closed in March 2021. The aggregate cash consideration paid by Verizon at the closing of the transaction was approximately $412 million, net of cash acquired.

Collateral Payments Related to Derivative Contracts, Net of Repayments

During the nine months ended September 30, 2022 and 2021, we posted $4.9 billion and an insignificant amount of derivative collateral, respectively. See Note 7 to the condensed consolidated financial statements for additional information.

Proceeds from Disposition of Business

During the nine months ended September 30, 2021, we received net cash proceeds of $4.1 billion in connection with the sale of Verizon Media. See Note 3 to the condensed consolidated financial statements for additional information.

Cash Flows Provided By (Used In) Financing Activities

We seek to maintain a mix of fixed and variable rate debt to lower borrowing costs within reasonable risk parameters and to protect against earnings and cash flow volatility resulting from changes in market conditions. During the nine months ended September 30, 2022, net cash used in financing activities was $5.5 billion. During the nine months ended September 30, 2021, net cash provided by financing activities was $13.5 billion.

During the nine months ended September 30, 2022, our net cash used in financing activities was primarily driven by repayments and repurchases of long-term borrowings and finance lease obligations of $8.0 billion, cash dividends of $8.1 billion and repayments of asset-backed long-term borrowings of $3.6 billion. These payments were partially offset by proceeds from asset-backed long-term borrowings of $5.9 billion, proceeds from long-term borrowings of $4.6 billion and net proceeds from short-term commercial paper of $4.5 billion.

At September 30, 2022, our total debt of $147.9 billion included unsecured debt of $131.4 billion and secured debt of $16.5 billion. At December 31, 2021, our total debt of $150.9 billion included unsecured debt of $136.7 billion and secured debt of $14.2 billion. During the nine months ended September 30, 2022 and 2021, our effective interest rate was 3.5% and 3.7%,

53

respectively. See Note 5 to the condensed consolidated financial statements for additional information regarding our debt activity, which excludes the impact from mark-to-market adjustments on foreign currency denominated debt.

Verizon may acquire debt securities issued by Verizon and its affiliates through open market purchases, redemptions, privately negotiated transactions, tender offers, exchange offers, or otherwise, upon such terms and at such prices as Verizon may from time to time determine, for cash or other consideration.

Asset-Backed Debt

Cash collections on the receivables collateralizing our 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.

See Note 5 to the condensed consolidated financial statements for additional information.

Long-Term Credit Facilities

				At September 30, 2022
(dollars in millions)	Maturities	Facility Capacity		Unused Capacity		Principal Amount Outstanding
Verizon revolving credit facility (1)	2026	$	9,500	$	9,434	N/A
Various export credit facilities (2)	2024 - 2031	11,000		1,000		$	7,000
Total		$	20,500	$	10,434	$	7,000

N/A - not applicable

(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) During the nine months ended September 30, 2022 and 2021, we drew down $3.0 billion and $470 million, respectively, from these facilities. 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. Any amounts borrowed under these facilities and subsequently repaid cannot be reborrowed.

Other, Net

Other, net financing activities during the nine months ended September 30, 2022 includes $1.0 billion in proceeds from a short-term uncommitted credit facility, $458 million in cash consideration payments to acquire additional interests in certain controlled wireless partnerships and early debt redemption costs. See Note 9 to the condensed consolidated financial statements for additional information on noncontrolling interests. See "Special Items" for additional information on the early debt redemption costs.    

Dividends

As in prior periods, dividend payments were a significant use of capital resources. We paid $8.1 billion and $7.8 billion in cash dividends during the nine months ended September 30, 2022 and 2021, respectively.

Covenants

Our credit agreements contain covenants that are typical for large, investment grade companies. These covenants include requirements to pay interest and principal in a timely fashion, pay taxes, maintain insurance with responsible and reputable insurance companies, preserve our corporate existence, keep appropriate books and records of financial transactions, maintain our properties, provide financial and other reports to our lenders, limit pledging and disposition of assets and mergers and consolidations, and other similar covenants.

We and our consolidated subsidiaries are in compliance with all of our restrictive covenants in our debt agreements.

Change In Cash, Cash Equivalents and Restricted Cash

Our Cash and cash equivalents at September 30, 2022 totaled $2.1 billion, a $839 million decrease compared to December 31, 2021, primarily as a result of the factors discussed above.

Restricted cash totaled $1.5 billion and $1.2 billion as of September 30, 2022 and December 31, 2021, respectively, primarily related to cash collections on the device payment plan agreement receivables that are required at certain specified times to be

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placed into segregated accounts. The increase of $265 million was primarily driven by the completion of asset-backed debt transactions during the nine months ended September 30, 2022.

Free Cash Flow

Free cash flow is a non-GAAP financial measure that reflects an additional way of viewing our liquidity that, we believe, when viewed with our GAAP results, provides management, investors and other users of our financial information with a more complete understanding of factors and trends affecting our cash flows. Free cash flow is calculated by subtracting capital expenditures (including capitalized software) from net cash provided by operating activities. We believe it is a more conservative measure of cash flow since capital expenditures are necessary for ongoing operations. Free cash flow has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures. For example, free cash flow does not incorporate payments made on finance lease obligations or cash payments for business acquisitions or wireless licenses. Therefore, we believe it is important to view free cash flow as a complement to our entire condensed consolidated statements of cash flows.

The following table reconciles net cash provided by operating activities to free cash flow:

	Nine Months Ended
	September 30,
(dollars in millions)	2022		2021		Change
Net cash provided by operating activities	$	28,199	$	31,162	$	(2,963)
Less Capital expenditures (including capitalized software)	15,811		13,861		1,950
Free cash flow	$	12,388	$	17,301	$	(4,913)

The decrease in free cash flow during the nine months ended September 30, 2022, compared to the similar period in 2021, is a reflection of the decrease in operating cash flows and the increase in capital expenditures, both of which are discussed above.

Other Future Obligations

As of September 30, 2022, Verizon had 22 renewable energy purchase agreements (REPAs) with third parties. Each of the REPAs is based on the expected operation of a renewable energy-generating facility and has a fixed price term ranging from 12 to 18 years following the facility's entry into commercial operation. Three of the facilities have entered into commercial operation and the remainder are under development. The REPAs generally are expected to be financially settled based on the prevailing market price as energy is generated by the facilities. Under the REPAs, we plan to purchase the energy generated by up to an aggregate of approximately 2.8 gigawatts of capacity across multiple states, including Arizona, Illinois, Indiana, Iowa, Maryland, Nebraska, New York, North Carolina, Ohio, Pennsylvania, Texas and West Virginia.

Market Risk

We are exposed to various types of market risk in the normal course of business, including the impact of interest rate changes, foreign currency exchange rate fluctuations, changes in investment, equity and commodity prices and changes in corporate tax rates. We employ risk management strategies, which may include the use of a variety of derivatives including cross currency swaps, forward starting interest rate swaps, interest rate swaps, interest rate caps, treasury rate locks and foreign exchange forwards. We do not hold derivatives for trading purposes.

It is our general policy to enter into interest rate, foreign currency and other derivative transactions only to the extent necessary to achieve our desired objectives in optimizing exposure to various market risks. Our objectives include maintaining a mix of fixed and variable rate debt to lower borrowing costs within reasonable risk parameters and to protect against earnings and cash flow volatility resulting from changes in market conditions. We do not hedge our market risk exposure in a manner that would completely eliminate the effect of changes in interest rates and foreign exchange rates on our earnings.

Counterparties to our derivative contracts are major financial institutions with whom we have negotiated derivatives agreements (ISDA master agreements) and credit support annex (CSA) agreements which provide rules for collateral exchange. The CSA agreements contain rating based thresholds such that we or our counterparties may be required to hold or post collateral based upon changes in outstanding positions as compared to established thresholds and changes in credit ratings. We do not offset fair value amounts recognized for derivative instruments and fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments recognized at fair value. At September 30, 2022, we did not hold any collateral. At September 30, 2022, we posted $4.9 billion of collateral related to derivative contracts under collateral exchange agreements, which was recorded as Prepaid expenses and other in our condensed consolidated balance sheets. At December 31, 2021, we held and posted $0.1 billion and an insignificant amount, respectively, of collateral related to derivative contracts under collateral exchange arrangements, which were recorded as Other current liabilities and Prepaid expenses and other, respectively, in our condensed consolidated balance sheets. While we may be exposed to credit losses due to the nonperformance of our counterparties, we consider the risk remote and do not expect that any such nonperformance would result in a significant effect on our results of operations or financial condition due to our diversified pool of counterparties. See Note 7 to the condensed consolidated financial statements for additional information regarding the derivative portfolio.

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Interest Rate Risk

We are exposed to changes in interest rates, primarily on our short-term debt and the portion of long-term debt that carries floating interest rates. As of September 30, 2022, approximately 73% of the aggregate principal amount of our total debt portfolio consisted of fixed-rate indebtedness, including the effect of interest rate swap agreements designated as hedges. The impact of a 100-basis-point change in interest rates affecting our floating rate debt would result in a change in annual interest expense, including our interest rate swap agreements that are designated as hedges, of approximately $434 million. The interest rates on our existing long-term debt obligations are unaffected by changes to our credit ratings.

Certain of our floating rate debt and certain of our interest rate derivative transactions utilize interest rates that are linked to the London Inter-Bank Offered Rate (LIBOR) as the benchmark rate. The U.S. dollar LIBOR rates utilized in these transactions will cease publication after June 30, 2023, in accordance with recent U.S. and international regulatory guidance for reform. The consequences of these developments cannot be entirely predicted but could include an increase in the cost of our floating rate debt or exposure under our interest rate derivative transactions. We do not anticipate a significant impact to our financial position given our current mix of variable and fixed-rate debt and taking into account the impact of our interest rate hedging. In 2021, we began utilizing interest rates that are linked to the Secured Overnight Financing Rate as the benchmark rate for various floating rate transactions.

Interest Rate Swaps

We enter into interest rate swaps to achieve a targeted mix of fixed and variable rate debt. We principally receive fixed rates and pay variable rates, resulting in a net increase or decrease to Interest expense. These swaps are designated as fair value hedges and hedge against interest rate risk exposure of designated debt issuances. At September 30, 2022, there was no amount related to the fair value of the asset and the fair value of the liability of these contracts was $4.6 billion. At December 31, 2021, the fair value of the asset and liability of these contracts was $473 million and $666 million, respectively. The increase in the fair value of the liability of these contracts is primarily due to interest rate changes during the nine month period ended September 30, 2022. At September 30, 2022 and December 31, 2021, the total notional amount of the interest rate swaps was $26.1 billion and $19.8 billion, respectively.

Forward Starting Interest Rate Swaps

We have entered into forward starting interest rate swaps designated as cash flow hedges in order to manage our exposure to interest rate changes on future forecasted transactions. At September 30, 2022, there was no amount related to the fair value of the liability of these contracts. At December 31, 2021, the fair value of the liability of these contracts was $302 million. At September 30, 2022, there was no outstanding notional amount for forward starting interest rate swaps. At December 31, 2021, the total notional amount of the forward starting interest rate swaps was $1.0 billion.

Treasury Rate Locks

From time to time we enter into treasury rate locks to mitigate our future interest rate risk. There was no outstanding notional amount for treasury rate locks at September 30, 2022 or December 31, 2021.

Foreign Currency Risk

The functional currency for our foreign operations is primarily the local currency. The translation of income statement and balance sheet amounts of our foreign operations into U.S. dollars is recorded as cumulative translation adjustments, which are included in Accumulated other comprehensive loss in our condensed consolidated balance sheets. Gains and losses on foreign currency transactions are recorded in the condensed consolidated statements of income. At September 30, 2022, our primary translation exposure was to the British Pound Sterling, Euro, Australian Dollar and Japanese Yen.

Cross Currency Swaps

We have entered into cross currency swaps to exchange our British Pound Sterling, Euro, Swiss Franc, Canadian Dollar and Australian Dollar-denominated cash flows into U.S. dollars and to fix our cash payments in U.S. dollars, as well as to mitigate the impact of foreign currency transaction gains or losses. On March 31, 2022, we voluntarily elected to de-designate our cross currency swaps previously designated as cash flow hedges and re-designated the swaps as fair value hedges. At September 30, 2022, the fair value of the asset and liability of these contracts was $54 million and $5.5 billion, respectively. At December 31, 2021, the fair value of the asset and liability of these contracts was $589 million and $1.6 billion, respectively. At both September 30, 2022 and December 31, 2021, the total notional amount of the cross currency swaps was $32.5 billion.

Foreign Exchange Forwards

We also have foreign exchange forwards which we use as an economic hedge but for which we have elected not to apply hedge accounting. We enter into British Pound Sterling and Euro foreign exchange forwards to mitigate our foreign exchange rate risk related to non-functional currency denominated monetary assets and liabilities of international subsidiaries.

At September 30, 2022, the fair value of the asset and liability of these contracts was zero and insignificant, respectively. At December 31, 2021, the fair value of the asset of these contracts was insignificant and there was no amount related to the

56

liability of these contracts. At September 30, 2022 and December 31, 2021, the total notional amount of the foreign exchange forwards was $940 million and $932 million, respectively.

Acquisitions and Divestitures

Spectrum License Transactions

From time to time, we enter into agreements to buy, sell or exchange spectrum licenses. We believe these spectrum license transactions have allowed us to continue to enhance the reliability of our wireless network while also resulting in a more efficient use of spectrum.

In February 2021, the Federal Communications Commission (FCC) concluded Auction 107 for C-Band wireless spectrum. Verizon paid $45.5 billion for the licenses it won, of which $44.6 billion was paid in the first quarter of 2021. In accordance with the rules applicable to the auction, Verizon is required to make payments for our allocable share of clearing costs incurred by, and incentive payments due to, the incumbent license holders associated with the auction, which are estimated to be $7.7 billion. During the year ended December 31, 2021, we made payments of $1.3 billion primarily related to certain obligations for projected clearing costs. During the three and nine months ended September 30, 2022, we made additional payments of $196 million and $1.6 billion, respectively, for obligations related to accelerated clearing incentives and clearing costs, of which $1.4 billion were accrued as of December 31, 2021. We expect to continue to make payments related to clearing cost and incentive payment obligations through 2024. These payments are dependent on the incumbent license holders accelerated clearing of the spectrum for Verizon’s use and, therefore, the final timing and amounts could differ based on the incumbent holders’ execution of their clearing process. In accordance with the FCC order, the clearing must be completed by December 2025. The carrying value of the wireless spectrum won in Auction 107 consists of all payments required to participate and purchase licenses in the auction, including Verizon’s allocable share of clearing costs incurred by, and incentive payments due to, the incumbent license holders associated with the auction that we are obligated to pay in order to acquire the licenses. The carrying value also includes capitalized interest to the extent qualifying activities have occurred.

In March 2022, Verizon signed agreements with satellite operators in which operators agreed to clear C-Band spectrum in certain markets and frequencies ahead of the previously expected December 2023 timeframe. During the three and nine months ended September 30, 2022, Verizon incurred costs of approximately $115 million and $279 million, respectively, associated with these agreements. These costs were accrued for as of September 30, 2022. Our estimated costs relating to these agreements could reach $340 million. This early clearance, if successful, would accelerate Verizon's access to more spectrum in a number of key markets to support its 5G initiatives.

See Note 3 to the condensed consolidated financial statements for additional information regarding our spectrum license transactions.

TracFone Wireless, Inc.

In September 2020, we entered into a purchase agreement (TracFone Purchase Agreement) with América Móvil to acquire TracFone, a leading provider of prepaid and value mobile services in the U.S. The transaction closed on November 23, 2021 (the Acquisition Date). In accordance with the terms of the TracFone Purchase Agreement, Verizon acquired all of TracFone's outstanding stock in exchange for approximately $3.5 billion in cash, net of cash acquired and working capital and other adjustments, subject to customary adjustments, 57,596,544 shares of Verizon common stock valued at approximately $3.0 billion, and up to an additional $650 million in future cash contingent consideration related to the achievement of certain performance measures and other commercial arrangements. The fair value of the Verizon common stock was determined on the basis of its closing market price on the Acquisition Date. The estimated fair value of the contingent consideration as of the Acquisition Date was approximately $540 million, and represents a Level 3 measurement. The contingent consideration payable is based on the achievement of certain revenue and operational targets, measured over a two-year earn out period, as defined in the TracFone Purchase Agreement. In August 2022, Verizon made a payment of $113 million related to the contingent consideration, which is reflected in Cash flows from financing activities in our condensed consolidated statements of cash flows for the nine months ended September 30, 2022. Contingent consideration payments are expected to continue through 2024. See Note 3 to the condensed consolidated financial statements for additional information.

Bluegrass Cellular

In October 2020, we entered into a definitive agreement to acquire certain assets of Bluegrass, a rural wireless operator serving central Kentucky. Bluegrass provides wireless service to 210,000 customers in 34 counties in rural service areas 3, 4, and 5 in Central Kentucky. The transaction closed in March 2021. The aggregate cash consideration paid by Verizon at the closing of the transaction was approximately $412 million, net of cash acquired. See Note 3 to the condensed consolidated financial statements for additional information.

Verizon Media Divestiture

On May 2, 2021, Verizon entered into a definitive agreement with an affiliate of Apollo Global Management Inc. (the Apollo Affiliate) pursuant to which we agreed to sell Verizon Media in return for consideration of $4.3 billion in cash, subject to

57

customary adjustments, $750 million in non-convertible preferred limited partnership units of the Apollo Affiliate, and 10% of the fully-diluted common limited partnership units of the Apollo Affiliate.

On September 1, 2021, we completed the sale of Verizon Media. As of the close of the transaction, cash proceeds, the fair value of the non-convertible preferred limited partnership units of the Apollo Affiliate, and the fair value of 10% of the fully-diluted common limited partnership units of the Apollo Affiliate were $4.3 billion, $496 million, and $124 million, respectively. We recorded a pre-tax gain on sale of approximately $1.1 billion (after-tax $1.1 billion) in Selling general and administrative expense in our condensed consolidated statement of income for the three and nine months ended September 30, 2021. In addition, we incurred $346 million of various costs associated with this disposition which are primarily recorded in Selling general and administrative expense in our condensed consolidated statement of income for the three and nine months ended September 30, 2021. See Note 3 to the condensed consolidated financial statements for additional information.

Other

From time to time, we enter into strategic agreements to acquire various other business and investments. See Note 3 to the condensed consolidated financial statements for additional information.

Other Factors That May Affect Future Results

Regulatory and Competitive Trends

There have been no material changes to Regulatory and Competitive Trends as previously disclosed in Part I, Item 1. "Business" in our Annual Report on Form 10-K for the year ended December 31, 2021, except as disclosed under “Overview” in Part I, Item 2 of this quarterly report on Form 10-Q.

 Cautionary Statement Concerning Forward-Looking Statements

In this report we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words "anticipates," "believes," "estimates," "expects," "hopes," "forecasts," "plans" or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

The following important factors, along with those discussed elsewhere in this report and in other filings with the Securities and Exchange Commission (SEC), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements:

•cyber attacks impacting our networks or systems and any resulting financial or reputational impact;

•damage to our infrastructure or disruption of our operations from natural disasters, extreme weather conditions or terrorist attacks and any resulting financial or reputational impact;

•the impact of public health crises, including the COVID-19 pandemic, on our operations, our employees and the ways in which our customers use our networks and other products and services;

•disruption of our key suppliers’ or vendors' provisioning of products or services, including as a result of geopolitical factors, the COVID-19 pandemic or the potential impacts of global climate change;

•material adverse changes in labor matters and any resulting financial or operational impact;

•the effects of competition in the markets in which we operate;

•failure to take advantage of developments in technology and address changes in consumer demand;

•performance issues or delays in the deployment of our 5G network resulting in significant costs or a reduction in the anticipated benefits of the enhancement to our networks;

•the inability to implement our business strategy;

•adverse conditions in the U.S. and international economies, including inflation in the markets in which we operate;

•changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses;

•our high level of indebtedness;

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•significant litigation and any resulting material expenses incurred in defending against lawsuits or paying awards or settlements;

•an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing;

•significant increases in benefit plan costs or lower investment returns on plan assets;

•changes in tax laws or treaties, or in their interpretation; and

•changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Information relating to market risk is included in Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations under the caption "Market Risk."

Item 4. Controls and Procedures

Our Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934), as of the end of the period covered by this quarterly report, that ensure that information relating to the registrant which is required to be disclosed in this report is recorded, processed, summarized and reported within required time periods using the criteria for effective internal control established in Internal Control–Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that the registrant’s disclosure controls and procedures were effective as of September 30, 2022.

In the ordinary course of business, we routinely review our system of internal control over financial reporting and make changes to our systems and processes that are intended to ensure an effective internal control environment. In the third quarter of 2020, we began a multi-year implementation of a new global enterprise resource planning (ERP) system, which will replace many of our existing core financial systems. The ERP system is designed to enhance the flow of financial information, facilitate data analysis and accelerate information reporting. The implementation is expected to occur in phases over the next several years.

As the phased implementation of the new ERP system continues, we could have changes to our processes and procedures which, in turn, could result in changes to our internal controls over financial reporting. As such changes occur, we will evaluate quarterly whether such changes materially affect our internal control over financial reporting.

There were no changes in the Company’s internal control over financial reporting during the third quarter 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Part II – Other Information

Item 1. Legal Proceedings

Verizon is not subject to any administrative or judicial proceeding arising under any Federal, State or local provisions that have been enacted or adopted regulating the discharge of materials into the environment or primarily for the purpose of protecting the environment that is likely to result in monetary sanctions of $1 million or more.

See Note 11 to the condensed consolidated financial statements for additional information regarding legal proceedings.

Item 1A. Risk Factors

There have been no material changes to our risk factors as previously disclosed in Part I, Item 1A. included in our Annual Report on Form 10-K for the year ended December 31, 2021.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

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. Under the program, shares may be repurchased in privately negotiated transactions, on the open market, or otherwise, including through plans complying with Rule 10b5-1 under the Exchange Act. The timing and number of shares purchased under the program, if any, will depend on market conditions and the Company's capital allocation priorities.

Verizon did not repurchase any shares of Verizon common stock during the three months ended September 30, 2022. At September 30, 2022, the maximum number of shares that could be purchased by or on behalf of Verizon under our share buyback program was 100 million.

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Item 6. Exhibits

Exhibit Number	Description
3b	Bylaws of Verizon Communications Inc., as amended and restated, effective as of September 30, 2022 (filed as Exhibit 3b to Form 8-K filed on September 30, 2022 and incorporated herein by reference).
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).

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Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	VERIZON COMMUNICATIONS INC.
Date: October 25, 2022	By	/s/	Anthony T. Skiadas
			Anthony T. Skiadas
			Senior Vice President and Controller
			(Principal Accounting Officer)

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EX-31.1

EXHIBIT 31.1

I, Hans E. Vestberg, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Verizon Communications Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 25, 2022	/s/ Hans E. Vestberg
	Hans E. Vestberg
	Chairman and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

I, Matthew D. Ellis, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Verizon Communications Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 25, 2022	/s/ Matthew D. Ellis
	Matthew D. Ellis
	Executive Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002, PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE

I, Hans E. Vestberg, Chairman and Chief Executive Officer of Verizon Communications Inc. (the Company), certify that:

(1)the report of the Company on Form 10-Q for the quarterly period ending September 30, 2022 (the Report) fully complies with the requirements of section 13(a) of the Securities Exchange Act of 1934 (the Exchange Act); and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods referred to in the Report.

Date: October 25, 2022	/s/ Hans E. Vestberg
	Hans E. Vestberg
	Chairman and Chief Executive Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Verizon Communications Inc. and will be retained by Verizon Communications Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002, PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE

I, Matthew D. Ellis, Executive Vice President and Chief Financial Officer of Verizon Communications Inc. (the Company), certify that:

(1)the report of the Company on Form 10-Q for the quarterly period ending September 30, 2022 (the Report) fully complies with the requirements of section 13(a) of the Securities Exchange Act of 1934 (the Exchange Act); and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods referred to in the Report.

Date: October 25, 2022	/s/ Matthew D. Ellis
	Matthew D. Ellis
	Executive Vice President and Chief Financial Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Verizon Communications Inc. and will be retained by Verizon Communications Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

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Cover	9 Months Ended
	Sep. 30, 2022 shares
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	1-8606
Entity Registrant Name	Verizon Communications Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	23-2259884
Entity Address, Address Line One	1095 Avenue of the Americas
Entity Address, City or Town	New York,
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10036
City Area Code	212
Local Phone Number	395-1000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	4,199,817,447
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000732712
Current Fiscal Year End Date	--12-31
Common Stock | New York Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.10
Trading Symbol	VZ
Security Exchange Name	NYSE
Common Stock | The NASDAQ Global Select Market
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.10
Trading Symbol	VZ
Security Exchange Name	NASDAQ
1.625% Notes due 2024
Entity Information [Line Items]
Title of 12(b) Security	1.625% Notes due 2024
Trading Symbol	VZ 24B
Security Exchange Name	NYSE
4.073% Notes due 2024
Entity Information [Line Items]
Title of 12(b) Security	4.073% Notes due 2024
Trading Symbol	VZ 24C
Security Exchange Name	NYSE
0.875% Notes due 2025
Entity Information [Line Items]
Title of 12(b) Security	0.875% Notes due 2025
Trading Symbol	VZ 25
Security Exchange Name	NYSE
3.25% Notes due 2026
Entity Information [Line Items]
Title of 12(b) Security	3.25% Notes due 2026
Trading Symbol	VZ 26
Security Exchange Name	NYSE
1.375% Notes due 2026
Entity Information [Line Items]
Title of 12(b) Security	1.375% Notes due 2026
Trading Symbol	VZ 26B
Security Exchange Name	NYSE
0.875% Notes due 2027
Entity Information [Line Items]
Title of 12(b) Security	0.875% Notes due 2027
Trading Symbol	VZ 27E
Security Exchange Name	NYSE
1.375% Notes due 2028
Entity Information [Line Items]
Title of 12(b) Security	1.375% Notes due 2028
Trading Symbol	VZ 28
Security Exchange Name	NYSE
1.125% Notes due 2028
Entity Information [Line Items]
Title of 12(b) Security	1.125% Notes due 2028
Trading Symbol	VZ 28A
Security Exchange Name	NYSE
2.350% Fixed Rate Notes due 2028
Entity Information [Line Items]
Title of 12(b) Security	2.350% Fixed Rate Notes due 2028
Trading Symbol	VZ 28C
Security Exchange Name	NYSE
1.875% Notes due 2029
Entity Information [Line Items]
Title of 12(b) Security	1.875% Notes due 2029
Trading Symbol	VZ 29B
Security Exchange Name	NYSE
0.375% Notes due 2029
Entity Information [Line Items]
Title of 12(b) Security	0.375% Notes due 2029
Trading Symbol	VZ 29D
Security Exchange Name	NYSE
1.250% Notes due 2030
Entity Information [Line Items]
Title of 12(b) Security	1.250% Notes due 2030
Trading Symbol	VZ 30
Security Exchange Name	NYSE
1.875% Notes due 2030
Entity Information [Line Items]
Title of 12(b) Security	1.875% Notes due 2030
Trading Symbol	VZ 30A
Security Exchange Name	NYSE
2.625% Notes due 2031
Entity Information [Line Items]
Title of 12(b) Security	2.625% Notes due 2031
Trading Symbol	VZ 31
Security Exchange Name	NYSE
2.500% Notes due 2031
Entity Information [Line Items]
Title of 12(b) Security	2.500% Notes due 2031
Trading Symbol	VZ 31A
Security Exchange Name	NYSE
3.000% Fixed Rate Notes due 2031
Entity Information [Line Items]
Title of 12(b) Security	3.000% Fixed Rate Notes due 2031
Trading Symbol	VZ 31D
Security Exchange Name	NYSE
0.875% Notes due 2032
Entity Information [Line Items]
Title of 12(b) Security	0.875% Notes due 2032
Trading Symbol	VZ 32
Security Exchange Name	NYSE
0.750% Notes due 2032
Entity Information [Line Items]
Title of 12(b) Security	0.750% Notes due 2032
Trading Symbol	VZ 32A
Security Exchange Name	NYSE
1.300% Notes due 2033
Entity Information [Line Items]
Title of 12(b) Security	1.300% Notes due 2033
Trading Symbol	VZ 33B
Security Exchange Name	NYSE
4.75% Notes due 2034
Entity Information [Line Items]
Title of 12(b) Security	4.75% Notes due 2034
Trading Symbol	VZ 34
Security Exchange Name	NYSE
3.125% Notes due 2035
Entity Information [Line Items]
Title of 12(b) Security	3.125% Notes due 2035
Trading Symbol	VZ 35
Security Exchange Name	NYSE
1.125% Notes due 2035
Entity Information [Line Items]
Title of 12(b) Security	1.125% Notes due 2035
Trading Symbol	VZ 35A
Security Exchange Name	NYSE
3.375% Notes due 2036
Entity Information [Line Items]
Title of 12(b) Security	3.375% Notes due 2036
Trading Symbol	VZ 36A
Security Exchange Name	NYSE
2.875% Notes due 2038
Entity Information [Line Items]
Title of 12(b) Security	2.875% Notes due 2038
Trading Symbol	VZ 38B
Security Exchange Name	NYSE
1.875% Notes due 2038
Entity Information [Line Items]
Title of 12(b) Security	1.875% Notes due 2038
Trading Symbol	VZ 38C
Security Exchange Name	NYSE
1.500% Notes due 2039
Entity Information [Line Items]
Title of 12(b) Security	1.500% Notes due 2039
Trading Symbol	VZ 39C
Security Exchange Name	NYSE
3.50% Fixed Rate Notes due 2039
Entity Information [Line Items]
Title of 12(b) Security	3.50% Fixed Rate Notes due 2039
Trading Symbol	VZ 39D
Security Exchange Name	NYSE
1.850% Notes due 2040
Entity Information [Line Items]
Title of 12(b) Security	1.850% Notes due 2040
Trading Symbol	VZ 40
Security Exchange Name	NYSE
3.850% Fixed Rate Notes due 2041
Entity Information [Line Items]
Title of 12(b) Security	3.850% Fixed Rate Notes due 2041
Trading Symbol	VZ 41C
Security Exchange Name	NYSE

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Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Operating Revenues
Operating Revenues	$ 34,241	$ 32,915	$ 101,584	$ 99,546
Operating Expenses
Selling, general and administrative expense	7,422	6,521	22,090	21,246
Depreciation and amortization expense	4,324	3,961	12,881	12,155
Total Operating Expenses	26,347	24,010	78,342	74,706
Operating Income	7,894	8,905	23,242	24,840
Equity in earnings of unconsolidated businesses	2	1	40	10
Other income (expense), net	(439)	269	(1,314)	1,172
Interest expense	(937)	(801)	(2,508)	(2,746)
Income Before Provision For Income Taxes	6,520	8,374	19,460	23,276
Provision for income taxes	(1,496)	(1,820)	(4,410)	(5,395)
Net Income	5,024	6,554	15,050	17,881
Net income attributable to noncontrolling interests	124	147	371	429
Net income attributable to Verizon	4,900	6,407	14,679	17,452
Net Income	$ 5,024	$ 6,554	$ 15,050	$ 17,881
Basic Earnings Per Common Share
Net income attributable to Verizon (USD per share)	$ 1.17	$ 1.55	$ 3.49	$ 4.21
Weighted-average shares outstanding (in shares)	4,202	4,142	4,201	4,141
Diluted Earnings Per Common Share
Net income attributable to Verizon (USD per share)	$ 1.17	$ 1.55	$ 3.49	$ 4.21
Weighted-average shares outstanding (in shares)	4,204	4,144	4,203	4,143
Service revenues and other
Operating Revenues
Operating Revenues	$ 27,666	$ 27,565	$ 81,999	$ 83,709
Wireless equipment
Operating Revenues
Operating Revenues	6,575	5,350	19,585	15,837
Operating Expenses
Cost of services and equipment	7,308	5,673	21,919	17,106
Service
Operating Expenses
Cost of services and equipment	$ 7,293	$ 7,855	$ 21,452	$ 24,199

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Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net Income	$ 5,024	$ 6,554	$ 15,050	$ 17,881
Other Comprehensive Income (Loss), Net of Tax (Expense) Benefit
Foreign currency translation adjustments, net of tax of $(13), $(6), $(30) and $(13)	(120)	(146)	(285)	(126)
Unrealized gain (loss) on cash flow hedges, net of tax of $(6), $61, $(97) and $15	22	(174)	301	(42)
Unrealized gain (loss) on fair value hedges, net of tax of $(30), $0, $58 and $0	105	0	(167)	0
Unrealized loss on marketable securities, net of tax of $3, $1, $10 and $2	(8)	0	(32)	(5)
Defined benefit pension and postretirement plans, net of tax of $129, $51, $201 and $154	(379)	(155)	(590)	(465)
Other comprehensive loss attributable to Verizon	(380)	(475)	(773)	(638)
Total Comprehensive Income	4,644	6,079	14,277	17,243
Comprehensive income attributable to noncontrolling interests	124	147	371	429
Comprehensive income attributable to Verizon	4,520	5,932	13,906	16,814
Total Comprehensive Income	$ 4,644	$ 6,079	$ 14,277	$ 17,243

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Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, tax	$ (13)	$ (6)	$ (30)	$ (13)
Unrealized gain (loss) on cash flow hedges, tax	(6)	61	(97)	15
Unrealized gain (loss) from fair value hedges, tax	(30)	0	58	0
Unrealized gain (loss) on marketable securities, tax	3	1	10	2
Defined benefit pension and postretirement plans, tax	$ 129	$ 51	$ 201	$ 154

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Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 2,082	$ 2,921
Accounts receivable	24,475	24,742
Less Allowance for credit losses	805	896
Accounts receivable, net of allowance	23,670	23,846
Inventories	3,133	3,055
Prepaid expenses and other	10,861	6,906
Total current assets	39,746	36,728
Property, plant and equipment	300,870	289,897
Less Accumulated depreciation	197,866	190,201
Property, plant and equipment, net	103,004	99,696
Investments in unconsolidated businesses	1,083	1,061
Wireless licenses	149,292	147,619
Goodwill	28,548	28,603
Other intangible assets, net	11,196	11,677
Operating lease right-of-use assets	26,588	27,883
Other assets	15,633	13,329
Total assets	375,090	366,596
Current liabilities
Debt maturing within one year	14,995	7,443
Accounts payable and accrued liabilities	22,235	24,833
Current operating lease liabilities	3,961	3,859
Other current liabilities	11,950	11,025
Total current liabilities	53,141	47,160
Long-term debt	132,912	143,425
Employee benefit obligations	15,912	15,410
Deferred income taxes	42,094	40,685
Non-current operating lease liabilities	22,175	23,203
Other liabilities	20,073	13,513
Total long-term liabilities	233,166	236,236
Commitments and Contingencies
Equity
Series preferred stock ($0.10 par value; 250,000,000 shares authorized; none issued)	0	0
Common stock ($0.10 par value; 6,250,000,000 shares authorized in each period; 4,291,433,646 shares issued in each period)	429	429
Additional paid in capital	13,467	13,861
Retained earnings	78,545	71,993
Accumulated other comprehensive loss	(1,700)	(927)
Common stock in treasury, at cost (91,616,199 and 93,634,725 shares outstanding)	(4,015)	(4,104)
Deferred compensation – employee stock ownership plans (ESOPs) and other	742	538
Noncontrolling interests	1,315	1,410
Total equity	88,783	83,200
Total liabilities and equity	$ 375,090	$ 366,596

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
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)	91,616,199	93,634,725

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash Flows from Operating Activities
Net Income	$ 15,050	$ 17,881
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	12,881	12,155
Employee retirement benefits	479	(1,928)
Deferred income taxes	1,595	2,970
Provision for expected credit losses	1,048	604
Equity in losses (earnings) of unconsolidated businesses, net of dividends received	(13)	32
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses	(458)	603
Other, net	(2,383)	(1,155)
Net cash provided by operating activities	28,199	31,162
Cash Flows from Investing Activities
Capital expenditures (including capitalized software)	(15,811)	(13,861)
Cash received (paid) related to acquisitions of businesses, net of cash acquired	248	(459)
Acquisitions of wireless licenses	(2,890)	(47,027)
Collateral payments related to derivative contracts, net of repayments	(4,857)	(15)
Proceeds from disposition of business	33	4,122
Other, net	(43)	222
Net cash used in investing activities	(23,320)	(57,018)
Cash Flows from Financing Activities
Proceeds from long-term borrowings	4,605	32,482
Proceeds from asset-backed long-term borrowings	5,939	2,695
Net proceeds from short-term commercial paper	4,514	0
Repayments of long-term borrowings and finance lease obligations	(8,001)	(7,904)
Repayments of asset-backed long-term borrowings	(3,647)	(3,887)
Dividends paid	(8,066)	(7,797)
Other, net	(797)	(2,120)
Net cash provided by (used in) financing activities	(5,453)	13,469
Decrease in cash, cash equivalents and restricted cash	(574)	(12,387)
Cash, cash equivalents and restricted cash, beginning of period	4,161	23,498
Cash, cash equivalents and restricted cash, end of period	$ 3,587	$ 11,111

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Basis of Presentation

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Note 1. 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, 2021. 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.

Certain amounts have been reclassified to conform to the current period’s presentation.

Earnings Per Common Share

There were a total of approximately 1.6 million and 1.5 million outstanding dilutive securities, primarily consisting of restricted stock units, included in the computation of diluted earnings per common share for the three and nine months ended September 30, 2022, respectively. There were a total of approximately 1.6 million and 1.7 million outstanding dilutive securities, primarily consisting of restricted stock units, included in the computation of diluted earnings per common share for the three and nine months ended September 30, 2021, respectively.

Cash, Cash Equivalents and Restricted Cash

We consider all highly liquid investments with an original maturity of 90 days or less when purchased to be cash equivalents. Cash equivalents are stated at cost, which approximates quoted market value and includes amounts held in money market funds.

Cash collections on the device payment plan agreement receivables collateralizing our 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.

Cash, cash equivalents and restricted cash are included in the following line items in the condensed consolidated balance sheets:

	At September 30,		At December 31,		Increase / (Decrease)
(dollars in millions)	2022		2021
Cash and cash equivalents	$	2,082	$	2,921	$	(839)
Restricted cash:
Prepaid expenses and other	1,355		1,094		261
Other assets	150		146		4
Cash, cash equivalents and restricted cash	$	3,587	$	4,161	$	(574)

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Revenues and Contract Costs

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenues and Contract Costs

Note 2. Revenues and Contract Costs

We earn revenue from contracts with customers, primarily through the provision of telecommunications and other services and through the sale of wireless equipment.

Revenue by Category

We have two reportable segments that we operate and manage as strategic business units, Consumer and Business. Revenue is disaggregated by products and services within Consumer, and customer groups (Small and Medium Business, Global Enterprise, Public Sector and Other, and Wholesale) within Business. See Note 10 for additional information on revenue by segment. Corporate and other primarily includes insurance captive revenues.

We also earn revenues that are not accounted for under Accounting Standards Update (ASU) 2014-09, "Revenue from Contracts with Customers" (Topic 606) from leasing arrangements (such as those for towers and equipment), captive reinsurance arrangements primarily related to wireless device insurance and the interest on equipment financed under a device payment plan agreement when sold to the customer by an authorized agent. As allowed by the practical expedient within ASU 2016-02, "Leases" (Topic 842), we have elected to combine the lease and non-lease components for those arrangements of customer premise equipment where we are the lessor as components accounted for under Topic 606. During the three and nine months ended September 30, 2022, revenues from arrangements that were not accounted for under Topic 606 were approximately $774 million and $2.4 billion, respectively. During the three and nine months ended September 30, 2021, revenues from arrangements that were not accounted for under Topic 606 were approximately $803 million and $2.3 billion, respectively.

Remaining Performance Obligations

When allocating the total contract transaction price to identified performance obligations, a portion of the total transaction price may relate to service performance obligations which were not satisfied or are partially satisfied as of the end of the reporting period. Below we disclose information relating to these unsatisfied performance obligations. We apply the practical expedient available under Topic 606 that provides the option to exclude the expected revenues arising from unsatisfied performance obligations related to contracts that have an original expected duration of one year or less. This situation primarily arises with respect to certain month-to-month service contracts. At September 30, 2022, month-to-month service contracts represented approximately 94% of our wireless postpaid contracts and approximately 90% of our wireline Consumer and Small and Medium Business contracts, compared to September 30, 2021, for which month-to-month service contracts represented approximately 93% of our wireless postpaid contracts and 83% of our wireline Consumer and Small and Medium Business contracts.

Additionally, certain contracts provide customers the option to purchase additional services. The fees related to these additional services are recognized when the customer exercises the option (typically on a month-to-month basis).

Contracts for wireless services, with or without promotional credits that require maintenance of service, are generally either month-to-month and cancellable at any time, are considered to contain terms ranging from greater than one month to up to thirty-six months (typically under a device payment plan), or contain terms ranging from greater than one month to up to twenty-four months (typically under a fixed-term plan). Additionally, customers may incur charges based on usage or additional optional services purchased in conjunction with entering into a contract that can be cancelled at any time and therefore are not included in the transaction price. The transaction price allocated to service performance obligations, which are not satisfied or are partially satisfied as of the end of the reporting period, are generally related to contracts that are not accounted for as month-to-month contracts.

Our Consumer group customers also include traditional wholesale resellers that purchase and resell wireless service under their own brands to their respective customers. 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 customer contracts for wireline services are generally month-to-month; however, they may have a service term of two years or shorter than twelve months. Certain contracts with Business customers for wireline services extend into future periods, contain fixed monthly fees and usage-based fees, and can include annual commitments in each year of the contract or commitments over the entire specified contract term; however, a significant number of contracts for wireline services with our Business customers have a contract term that is twelve months or less.

Additionally, there are certain contracts with Business customers for wireline and telematics services that have a contractual minimum fee over the total contract term. We cannot predict the time period when revenue will be recognized related to those contracts; thus, they are excluded from the time bands below. These contracts have varying terms spanning over approximately nine years ending in April 2032 and have aggregate contract minimum payments totaling $1.8 billion.

At September 30, 2022, the transaction price related to unsatisfied performance obligations that are expected to be recognized for the remainder of 2022, 2023 and thereafter was $5.9 billion, $18.3 billion and $15.2 billion, respectively. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations and changes in the timing and scope of contracts, arising from contract modifications.

Accounts Receivable and Contract Balances

The timing of revenue recognition may differ from the time of billing to our customers. Receivables presented in our condensed consolidated balance sheets represent an unconditional right to consideration. Contract balances represent amounts from an arrangement when either Verizon has performed, by transferring goods or services to the customer in advance of receiving all or partial consideration for such goods and services from the customer, or the customer has made payment to Verizon in advance of obtaining control of the goods and/or services promised to the customer in the contract.

Contract assets primarily relate to our rights to consideration for goods or services provided to customers but for which we do not have an unconditional right at the reporting date. Under a fixed-term plan, total contract revenue is allocated between wireless service and equipment revenues. In conjunction with these arrangements, a contract asset is created, which represents the difference between the amount of equipment revenue recognized upon sale and the amount of consideration received from the customer when the performance obligation related to the transfer of control of the equipment is satisfied. The contract asset is reclassified to accounts receivable as wireless services are provided and billed. We have the right to bill the customer as service is provided over time, which results in our right to the payment being unconditional. The contract asset balances are presented in our condensed consolidated balance sheets as Prepaid expenses and other and Other assets. We recognize the allowance for credit losses at inception and reassess quarterly based on management’s expectation of the asset’s collectability.

Contract liabilities arise when we bill our customers and receive consideration in advance of providing the goods or services promised in the contract. We typically bill service one month in advance, which is the primary component of the contract liability

balance. Contract liabilities are recognized as revenue when services are provided to the customer. The contract liability balances are presented in our condensed consolidated balance sheets as Other current liabilities and Other liabilities.

The following table presents information about receivables from contracts with customers:

	At September 30,		At January 1,		At September 30,		At January 1,
(dollars in millions)	2022		2022		2021		2021
Receivables(1)	$	10,556	$	10,758	$	10,088	$	12,029
Device payment plan agreement receivables(2)	14,680		12,888		11,178		10,358

(1)Balances do not include receivables related to the following contracts: leasing arrangements (such as those for towers and equipment), captive reinsurance arrangements primarily related to wireless device insurance and the interest on equipment financed under a device payment plan agreement when sold to the customer by an authorized agent.

(2)Included in device payment plan agreement receivables presented in Note 6. Receivables derived from the sale of equipment on a device payment plan through an authorized agent are excluded.

The following table presents information about contract balances:

	At September 30,		At January 1,		At September 30,		At January 1,
(dollars in millions)	2022		2022		2021		2021
Contract asset	$	869	$	934	$	878	$	937
Contract liability(1)	7,954		7,229		6,034		5,598

(1) Revenue recognized related to contract liabilities existing at January 1, 2022 were $167 million and $4.8 billion for the three and nine months ended September 30, 2022, respectively. Revenue recognized related to contract liabilities existing at January 1, 2021 were $161 million and $4.2 billion for the three and nine months ended September 30, 2021, respectively.

The balances of contract assets and contract liabilities recorded in our condensed consolidated balance sheets were as follows:

	At September 30,		At December 31,
(dollars in millions)	2022		2021
Assets
Prepaid expenses and other	$	692	$	739
Other assets	177		195
Total	$	869	$	934
Liabilities
Other current liabilities	$	6,475	$	6,053
Other liabilities	1,479		1,176
Total	$	7,954	$	7,229

Contract Costs

Topic 606 requires the recognition of an asset for incremental costs to obtain a customer contract, which are then amortized to expense over the respective periods of expected benefit. We recognize an asset for incremental commission expenses paid to internal and external sales personnel and agents in conjunction with obtaining customer contracts. We only defer these costs when we have determined the commissions are incremental costs that would not have been incurred absent the customer contract and are expected to be recoverable. Costs to obtain a contract are amortized and recorded ratably as commission expense over the period representing the transfer of goods or services to which the assets relate. Costs to obtain wireless contracts are amortized over both of our Consumer and Business customers' estimated upgrade cycles, as such costs are typically incurred each time a customer upgrades. Costs to obtain wireline contracts are amortized as expense over the estimated customer relationship period for our Consumer customers. Incremental costs to obtain wireline contracts for our Business customers are insignificant. Costs to obtain contracts are recorded in Selling, general and administrative expense.

We also defer costs incurred to fulfill contracts that: (1) relate directly to the contract; (2) are expected to generate resources that will be used to satisfy our performance obligation under the contract; and (3) are expected to be recovered through revenue generated under the contract. Contract fulfillment costs are expensed as we satisfy our performance obligations and recorded in Cost of services. These costs principally relate to direct costs that enhance our wireline business resources, such as costs incurred to install circuits.

We determine the amortization periods for our costs incurred to obtain or fulfill a customer contract at a portfolio level due to the similarities within these customer contract portfolios.

Other costs, such as general costs or costs related to past performance obligations, are expensed as incurred.

Collectively, costs to obtain a contract and costs to fulfill a contract are referred to as deferred contract costs, and amortized over a two-to six-year period. Deferred contract costs are classified as current or non-current within Prepaid expenses and other and Other assets, respectively.

The balances of deferred contract costs included in our condensed consolidated balance sheets were as follows:

	At September 30,		At December 31,
(dollars in millions)	2022		2021
Assets
Prepaid expenses and other	$	2,572	$	2,432
Other assets	2,362		2,259
Total	$	4,934	$	4,691

For the three and nine months ended September 30, 2022, we recognized expense of $735 million and $2.2 billion, respectively, associated with the amortization of deferred contract costs, primarily within Selling, general and administrative expense in our condensed consolidated statements of income. For the three and nine months ended September 30, 2021, we recognized expense of $751 million and $2.3 billion, respectively, associated with the amortization of deferred contract costs, primarily within Selling, general and administrative expense in our condensed consolidated statements of income.

We assess our deferred contract costs for impairment on a quarterly basis. We recognize an impairment charge to the extent the carrying amount of a deferred cost exceeds the remaining amount of consideration we expect to receive in exchange for the goods and services related to the cost, less the expected costs related directly to providing those goods and services that have not yet been recognized as expenses. There have been no impairment charges recognized for the three and nine months ended September 30, 2022 or September 30, 2021.

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Acquisitions and Divestitures

9 Months Ended

Sep. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisitions and Divestitures

Note 3. Acquisitions and Divestitures

Spectrum License Transactions

In February 2021, the Federal Communications Commission (FCC) concluded Auction 107 for C-Band wireless spectrum. Verizon paid $45.5 billion for the licenses it won, of which $44.6 billion was paid in the first quarter of 2021. In accordance with the rules applicable to the auction, Verizon is required to make payments for our allocable share of clearing costs incurred by, and incentive payments due to, the incumbent license holders associated with the auction, which are estimated to be $7.7 billion. During the year ended December 31, 2021, we made payments of $1.3 billion primarily related to certain obligations for projected clearing costs. During the three and nine months ended September 30, 2022, we made additional payments of $196 million and $1.6 billion, respectively, for obligations related to accelerated clearing incentives and clearing costs, of which $1.4 billion were accrued as of December 31, 2021. We expect to continue to make payments related to clearing cost and incentive payment obligations through 2024. These payments are dependent on the incumbent license holders accelerated clearing of the spectrum for Verizon’s use and, therefore, the final timing and amounts could differ based on the incumbent holders’ execution of their clearing process. In accordance with the FCC order, the clearing must be completed by December 2025. The carrying value of the wireless spectrum won in Auction 107 consists of all payments required to participate and purchase licenses in the auction, including Verizon’s allocable share of clearing costs incurred by, and incentive payments due to, the incumbent license holders associated with the auction that we are obligated to pay in order to acquire the licenses, as well as capitalized interest to the extent qualifying activities have occurred.

In March 2022, Verizon signed agreements with satellite operators in which operators agreed to clear C-Band spectrum in certain markets and frequencies ahead of the previously expected December 2023 timeframe. During the three and nine months ended September 30, 2022, Verizon incurred costs of approximately $115 million and $279 million, respectively, associated with these agreements. These costs were accrued for as of September 30, 2022. This early clearance, if successful, would accelerate Verizon's access to more spectrum in a number of key markets to support its fifth-generation initiatives.

During the nine months ended September 30, 2022, we entered into and completed various other wireless license acquisitions for cash consideration of an insignificant amount. During the nine months ended September 30, 2021, we recognized a pre-tax loss of $223 million ($167 million after-tax) in connection with the sale of certain wireless licenses.

TracFone Wireless, Inc.

In September 2020, we entered into a purchase agreement (TracFone Purchase Agreement) with América Móvil to acquire TracFone Wireless, Inc. (TracFone), a leading provider of prepaid and value mobile services in the U.S. The transaction closed on November 23, 2021 (the Acquisition Date). The acquisition positions Verizon as the leading prepaid, value and premium wireless carrier by expanding Verizon’s portfolio, bringing enhanced access of our wireless network and comprehensive suite of mobility products and services to a new customer base.

In accordance with the terms of the TracFone Purchase Agreement, Verizon acquired all of TracFone's outstanding stock in exchange for approximately $3.5 billion in cash, net of cash acquired and working capital and other adjustments, subject to

customary adjustments, 57,596,544 shares of Verizon common stock valued at approximately $3.0 billion, and up to an additional $650 million in future cash contingent consideration related to the achievement of certain performance measures and other commercial arrangements. The fair value of the Verizon common stock was determined on the basis of its closing market price on the Acquisition Date. The estimated fair value of the contingent consideration as of the Acquisition Date was approximately $540 million and represents a Level 3 measurement as defined in ASC 820, Fair Value Measurements and Disclosures. See Note 7 for additional information. The contingent consideration payable is based on the achievement of certain revenue and operational targets, measured over a two-year earn out period, as defined in the TracFone Purchase Agreement.

In May 2022, Verizon received net cash proceeds of $248 million for the final settlement of working capital, which was included in our consideration as of the Acquisition Date. In August 2022, Verizon made a payment of $113 million related to the contingent consideration, which is reflected in Cash flows from financing activities in our condensed consolidated statements of cash flows for the nine months ended September 30, 2022. Contingent consideration payments are expected to continue through 2024.

The TracFone acquisition was accounted for as a business combination. The purchase consideration was preliminarily allocated to the assets acquired and liabilities assumed based on their fair values as of the Acquisition Date.

The following table summarizes the preliminary allocation of the consideration paid and payable to the identified assets acquired and liabilities assumed as of the Acquisition Date. The purchase price allocation is preliminary and is subject to revision as additional information about the fair value of the assets acquired and liabilities assumed, including related deferred income taxes, become available.

	November 23,		Measurement Period Adjustments(1)		Adjusted
(dollars in millions)	2021				Fair Value
Consideration:
Cash, net of cash acquired and working capital and other adjustments	$	3,491	$	17	$	3,508
Fair value of Verizon common stock (57,596,544 shares)	2,981		—		2,981
Fair value of contingent consideration to be paid	542		(2)		540
Total consideration	$	7,014	$	15	$	7,029
Assets acquired:
Current assets	$	1,370	$	9	$	1,379
Property, plant and equipment, net	96		(10)		86
Goodwill	3,723		(6)		3,717
Other intangible assets	4,374		—		4,374
Other assets	731		107		838
Total assets acquired	$	10,294	$	100	$	10,394
Liabilities assumed:
Current liabilities	1,433		67		1,500
Deferred income taxes	1,007		(48)		959
Other liabilities	840		66		906
Total liabilities assumed	$	3,280	$	85	$	3,365
Net assets acquired	$	7,014	$	15	$	7,029

(1) Adjustments to the fair value measurements reflect new information obtained about facts and circumstances that existed as of the Acquisition Date, that if known, would have affected the measurement of the amounts recognized as of that date. The most significant adjustments related to deferred income taxes and deferred commission costs.

Other intangible assets include $2.3 billion related to customer relationships, $1.3 billion related to distribution relationships, $744 million related to trade names and $110 million related to acquired technology.

Goodwill is calculated as the difference between the Acquisition Date fair value of the consideration paid and payable and the fair value of the net assets acquired, representing future economic benefits that we expect to achieve as a result of the acquisition. The goodwill related to this acquisition is included within the Consumer segment.

Pursuant to the TracFone Purchase Agreement, América Móvil agreed to indemnify Verizon against certain pre-acquisition tax matters and other contingencies. We have recorded total contingent liabilities and offsetting indemnification assets of $837 million for the expected reimbursement of these matters that had not been resolved as of the Acquisition Date. The liabilities are presented in Other liabilities and the indemnification assets are presented in Other assets, within our condensed consolidated balance sheets. The amounts recognized represent reasonable estimates based on an evaluation of current facts and circumstances. Actual outcome may differ significantly from these estimates. We expect that any additional liabilities that may arise related to these indemnified matters would be indemnified and reimbursed by América Móvil.

Bluegrass Cellular

In October 2020, we entered into a definitive agreement to acquire certain assets of Bluegrass Cellular (Bluegrass), a rural wireless operator serving central Kentucky. Bluegrass provides wireless service to 210,000 customers in 34 counties in rural service areas 3, 4, and 5 in Central Kentucky. The transaction closed in March 2021. The aggregate cash consideration paid by Verizon at the closing of the transaction was approximately $412 million, net of cash acquired.

Verizon Media Divestiture

On May 2, 2021, Verizon entered into a definitive agreement with an affiliate of Apollo Global Management Inc. (the Apollo Affiliate) pursuant to which we agreed to sell Verizon Media Group (Verizon Media) in return for consideration of $4.3 billion in cash, subject to customary adjustments, $750 million in non-convertible preferred limited partnership units of the Apollo Affiliate, and 10% of the fully-diluted common limited partnership units of the Apollo Affiliate.

On September 1, 2021, we completed the sale of Verizon Media. As of the close of the transaction, cash proceeds, the fair value of the non-convertible preferred limited partnership units of the Apollo Affiliate, and the fair value of 10% of the fully-diluted common limited partnership units of the Apollo Affiliate were $4.3 billion, $496 million, and $124 million, respectively. We recorded a pre-tax gain on sale of approximately $1.1 billion (after-tax $1.1 billion) in Selling general and administrative expense in our condensed consolidated statement of income during both the three and nine months ended September 30, 2021. In addition, we incurred $346 million of various costs associated with this disposition which are primarily recorded in Selling general and administrative expense in our condensed consolidated statement of income for the three and nine months ended September 30, 2021.

On September 28, 2021, the Apollo Affiliate redeemed $100 million of Verizon’s preferred limited partnership interest. The carrying value of our preferred limited partnership interest as of September 30, 2022 was $396 million. The redemption is reflected within Net cash used in investing activities in our condensed consolidated statement of cash flows for the nine months ended September 30, 2021. Verizon’s 10% common interest in the Apollo Affiliate is accounted for as an equity method investment. The post-sale results of Verizon’s common ownership interest in the Apollo Affiliate are recorded through the equity method of accounting, within Corporate and other, which are insignificant.

In connection with the closing of the transaction, we entered into Transition Services Agreements with the Apollo Affiliate, under which Verizon will continue to provide and receive specified administrative and technical services to support operations for up to 12 months and 18 months, respectively.

Under our ownership, Verizon Media generated revenues from contracts with customers under Topic 606 of approximately $1.4 billion and $5.3 billion during the three and nine months ended September 30, 2021, respectively.

Other

During the nine months ended September 30, 2022, we entered into and completed various other insignificant transactions for net cash consideration of an insignificant amount.

In connection with divestiture and other activity we recorded a pre-tax net gain of an insignificant amount in our condensed consolidated statement of income for the nine months ended September 30, 2022.

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Wireless Licenses, Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Wireless Licenses, Goodwill, and Other Intangible Assets

Note 4. Wireless Licenses, Goodwill, and Other Intangible Assets

Wireless Licenses

The carrying amounts of our Wireless licenses are as follows:

	At September 30,		At December 31,
(dollars in millions)	2022		2021
Wireless licenses	$	149,292	$	147,619

At September 30, 2022 and 2021, approximately $45.4 billion and $54.8 billion, respectively, of wireless licenses were under development for commercial service for which we were capitalizing interest costs. We recorded approximately $1.3 billion and $1.1 billion of capitalized interest on wireless licenses for the nine months ended September 30, 2022 and 2021, respectively.

During the nine months ended September 30, 2022, we renewed various wireless licenses in accordance with FCC regulations. The average renewal period for these licenses was 15 years.

Goodwill

Changes in the carrying amount of Goodwill are as follows:

(dollars in millions)	Consumer		Business		Other		Total
Balance at January 1, 2022	$	21,042	$	7,515	$	46	$	28,603
Acquisitions (1)	(6)		—		—		(6)
Reclassifications, adjustments and other (2)	—		(27)		(22)		(49)
Balance at September 30, 2022	$	21,036	$	7,488	$	24	$	28,548

(1) The change in goodwill relates to the acquisition of TracFone. See Note 3 for additional information.

(2) Includes a goodwill impairment charge of $16 million, related to an early stage development company presented within Other, recorded in Selling, general and administrative expense in our condensed consolidated statements of income for the nine months ended September 30, 2022.

Other Intangible Assets

The following table displays the composition of Other intangible assets, net as well as the respective amortization periods:

	At September 30, 2022						At December 31, 2021
(dollars in millions)	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
Customer lists (5 to 13 years)	$	4,185	$	(1,571)	$	2,614	$	4,201	$	(1,126)	$	3,075
Non-network internal-use software (7 years)	22,644		(16,017)		6,627		21,310		(14,897)		6,413
Other (4 to 25 years)	2,996		(1,041)		1,955		2,974		(785)		2,189
Total	$	29,825	$	(18,629)	$	11,196	$	28,485	$	(16,808)	$	11,677

The amortization expense for Other intangible assets was as follows: 

	Three Months Ended		Nine Months Ended
(dollars in millions)	September 30,		September 30,
2022	$	658	$	1,944
2021	430		1,539

The estimated future amortization expense for Other intangible assets for the remainder of the current year and next 5 years is as follows:

Years	(dollars in millions)
Remainder of 2022	$	652
2023	2,468
2024	2,178
2025	1,993
2026	1,734
2027	1,033

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Debt

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Debt

Note 5. Debt

Significant Debt Transactions

Debt or equity financing may be needed to fund additional investments or development activities or to maintain an appropriate capital structure to ensure our financial flexibility.

The following tables show the significant transactions involving the senior unsecured debt securities of Verizon and its subsidiaries that occurred during the three and nine months ended September 30, 2022.

Tender Offers

(dollars in millions)	Principal Amount Purchased		Cash Consideration(1)
Three Months Ended March 31, 2022
Verizon and subsidiary 2.987% - 8.950% notes and debentures, due 2032 - 2056	$	5,032	$	5,587
Three Months Ended March 31, 2022 total	5,032		5,587
Nine Months Ended September 30, 2022 total	$	5,032	$	5,587

(1) The total cash consideration includes the tender offer consideration, plus any accrued and unpaid interest to the date of purchase.

Repayments and Repurchases

(dollars in millions)	Principal Repaid/ Repurchased		Amount Paid (1)
Three Months Ended March 31, 2022
Verizon floating rate (London Inter-Bank Offered Rate + 1.000%) notes due 2022	$	1,094	$	1,097
Three Months Ended March 31, 2022 total	1,094		1,097
Three Months Ended June 30, 2022
Subsidiary 8.000% debentures due 2022	103		108
Open market repurchases of various Verizon notes	359		307
Three Months Ended June 30, 2022 total	462		415
Three Months Ended September 30, 2022
Open market repurchases of various Verizon notes	260		211
Three Months Ended September 30, 2022 total	260		211
Nine Months Ended September 30, 2022 total	$	1,816	$	1,723

(1) Represents amount paid to repay or repurchase, including any accrued interest.

Issuances

(dollars in millions)	Principal Amount Issued		Net Proceeds (1)
Three Months Ended March 31, 2022
Verizon 3.875% notes due 2052 (2)	$	1,000	$	982
Verizon 4.100% notes due 2055	655		650
Three Months Ended March 31, 2022 total	1,655		1,632
Nine Months Ended September 30, 2022 total	$	1,655	$	1,632

(1) Net proceeds were net of underwriting discounts and other issuance costs.

(2) An amount equal to the net proceeds from this green bond is expected to be used to fund, in whole or in part, certain renewable energy projects, including new and existing investments made by us during the period from December 1, 2021 through the maturity date of the green bond.

Short-Term Borrowing and Commercial Paper Program

In March 2022, we entered into and fully drew from a $1.0 billion short-term uncommitted credit facility. As of September 30, 2022, the $1.0 billion borrowed under the facility remains outstanding.

During the nine months ended September 30, 2022, we issued $26.5 billion in commercial paper and we repaid $21.9 billion of commercial paper. As of September 30, 2022, we had $4.6 billion of commercial paper outstanding. These transactions are reflected within Cash flows from financing activities in our condensed consolidated statements of cash flows.

Asset-Backed Debt

As of September 30, 2022, the carrying value of our asset-backed debt was $16.5 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), a wholly-owned subsidiary of Verizon, 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 and residual interests, as applicable, 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 our 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.

ABS Notes

During the nine months ended September 30, 2022, we completed the following ABS Notes transactions:

(dollars in millions)	Interest Rates %	Expected Weighted-average Life to Maturity (in years)	Principal Amount Issued
January 2022
Series 2022-1
A Senior class notes	1.040	1.49	$	799
B Junior class notes	1.270	1.49	64
C Junior class notes	1.390	1.49	37
Series 2022-2
A Senior class notes	1.530	2.99	710
B Junior class notes	1.830	2.99	57
C Junior class notes	2.010	2.99	33
January 2022 total			1,700
May 2022
Series 2022-3
A Senior class notes	3.010	1.49	400
B Junior class notes	3.250	1.49	—
C Junior class notes	3.500	1.49	16
Series 2022-4
A Senior class notes	3.400	2.99	488
B Junior class notes	3.640	2.99	42
C Junior class notes	3.890	2.99	20
May 2022 total			966
August 2022
Series 2022-5
A-1a Senior fixed rate class notes	3.720	1.44	351
A-1b Senior floating rate class notes	Compounded SOFR + 0.620(1)	1.44	57
B Junior class notes	3.960	1.44	—
C Junior class notes	4.210	1.44	—
Series 2022-6
A Senior class notes	3.670	2.94	479
B Junior class notes	3.910	2.94	—
C Junior class notes	4.160	2.94	—
August 2022 total			887
Total			$	3,553

(1) Compounded Secured Overnight Financing Rate (SOFR) is calculated using SOFR as published by the Federal Reserve Bank of New York in accordance with the terms of such notes. Compounded SOFR for the interest period ending in September 2022 was 2.285%.

Under the terms of each series of ABS Notes, there is a revolving period of 18 months, two years or up to three years, as applicable, during which we may transfer additional receivables to the ABS Entity. During the nine months ended September 30, 2022, we made aggregate principal repayments of $3.0 billion on ABS Notes that have entered the amortization period, including principal payments made in connection with optional clean-up redemptions.

In October 2022, in connection with an optional acquisition of receivables and redemption of ABS Notes, we made a principal payment, in whole, for $129 million.

ABS Financing Facilities

In January 2022, we prepaid an aggregate of $515 million of the two loans outstanding in connection with the ABS Financing Facility entered into in December 2021. In March 2022, we borrowed an additional $1.9 billion under the loan agreements entered into in connection with such ABS Financing Facility. In May 2022, we prepaid an aggregate of $130 million of the two loans outstanding in connection with such ABS Financing Facility. In June 2022, we borrowed an additional $545 million under the loan agreements entered into in connection with such ABS Financing Facility. The aggregate outstanding balance under such ABS Financing Facility was $6.1 billion as of September 30, 2022.

In October 2022, we entered into an ABS financing facility with a financial institution (2022 ABS Financing Facility). Under the terms of the 2022 ABS Financing Facility, the financial institution makes advances under asset-backed loans backed by certain wireless service accounts receivables of both Consumer customers and Business customers. The loan agreement entered into in connection with the 2022 ABS Financing Facility is outstanding with a final maturity date in June 2024 and the loan agreement bears interest at a floating rate. There is an 18 month revolving period, as set forth in the loan agreement, which may be extended with the approval of the financial institution. 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 applicable ABS Entity. In October 2022, we borrowed $2.0 billion under the loan agreement entered into in connection with the 2022 ABS Financing Facility.

Variable Interest Entities (VIEs)

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.

The assets and liabilities related to our asset-backed debt arrangements included in our condensed consolidated balance sheets were as follows:

	At September 30,		At December 31,
(dollars in millions)	2022		2021
Assets
Accounts receivable, net	$	11,312	$	10,705
Prepaid expenses and other	1,357		1,094
Other assets	8,359		5,455
Liabilities
Accounts payable and accrued liabilities	8		10
Debt maturing within one year	6,587		5,024
Long-term debt	9,923		9,178

See Note 6 for additional information on device payment plan agreement receivables used to secure asset-backed debt.

Long-Term Credit Facilities

				At September 30, 2022
(dollars in millions)	Maturities	Facility Capacity		Unused Capacity		Principal Amount Outstanding
Verizon revolving credit facility (1)	2026	$	9,500	$	9,434	N/A
Various export credit facilities (2)	2024 - 2031	11,000		1,000		$	7,000
Total		$	20,500	$	10,434	$	7,000

N/A - not applicable

(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) During the nine months ended September 30, 2022 and 2021, we drew down $3.0 billion and $470 million, respectively, from these facilities. 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. Any amounts borrowed under these facilities and subsequently repaid cannot be reborrowed.

Non-Cash Transactions

During the nine months ended September 30, 2022 and 2021, we financed, primarily through alternative financing arrangements, the purchase of approximately $583 million and $337 million, respectively, of long-lived assets consisting primarily of network equipment. As of September 30, 2022 and December 31, 2021, $1.6 billion and $1.3 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.

Debt Extinguishment Gains (Losses), Net

During the three months ended September 30, 2022, we recorded debt extinguishment gains of $50 million. During the nine months ended September 30, 2022, we recorded net debt extinguishment losses of $1.1 billion. During the three months ended September 30, 2021, we did not record debt extinguishment losses. During the nine months ended September 30, 2021, we recorded debt extinguishment losses of $1.1 billion. The gains and losses are recorded in Other income (expense), net in our condensed consolidated statements of income. The total gains and losses are reflected within Other, net cash flow from operating activities and the portion of the gains and losses representing cash payments are reflected within Other, net cash flow from financing activities in our condensed consolidated statements of cash flows.

Guarantees

We guarantee the debentures of our operating telephone company subsidiaries. As of September 30, 2022, $614 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.

Debt Covenants

We and our consolidated subsidiaries are in compliance with all of our restrictive covenants in our debt agreements.

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Device Payment Plan Agreement and Wireless Service Receivables

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

Device Payment Plan Agreement and Wireless Service Receivables

Note 6. Device Payment Plan Agreement and Wireless Service Receivables

The following table presents information about accounts receivable, net of allowances, recorded in our condensed consolidated balance sheets:

	At September 30, 2022
(dollars in millions)	Device payment plan agreement		Wireless service		Other receivables(1)		Total
Accounts receivable	$	13,281	$	5,141	$	6,053	$	24,475
Less Allowance for credit losses	455		114		236		805
Accounts receivable, net of allowance	$	12,826	$	5,027	$	5,817	$	23,670

(1) Other receivables primarily include wireline receivables and other receivables, the allowances for which are individually insignificant.

Under the Verizon device payment program, our eligible wireless customers purchase wireless devices under a device payment plan agreement. Customers that activate service on devices purchased under the device payment program pay lower service fees as compared to those under our fixed-term service plans, and their device payment plan charge is included on their wireless monthly bill. We no longer offer Consumer customers new fixed-term, subsidized service plans for devices; however, we continue to offer subsidized plans to our Business customers. We also continue to service existing plans for customers who have not yet purchased and activated devices under the Verizon device payment program.

Wireless Device Payment Plan Agreement Receivables

The following table displays device payment plan agreement receivables, net, recognized in our condensed consolidated balance sheets:

	At September 30,		At December 31,
(dollars in millions)	2022		2021
Device payment plan agreement receivables, gross	$	24,185	$	21,303
Unamortized imputed interest	(386)		(358)
Device payment plan agreement receivables, at amortized cost	23,799		20,945
Allowance (1)	(772)		(759)
Device payment plan agreement receivables, net	$	23,027	$	20,186
Classified in our condensed consolidated balance sheets:
Accounts receivable, net	$	12,826	$	12,783
Other assets	10,201		7,403
Device payment plan agreement receivables, net	$	23,027	$	20,186

(1) Includes allowance for both short-term and long-term device payment plan agreement receivables.

Included in our device payment plan agreement receivables at both September 30, 2022 and December 31, 2021, are net device payment plan agreement receivables of $19.5 billion and $16.0 billion, respectively, which have been transferred to ABS Entities and continue to be reported in our condensed consolidated balance sheets. See Note 5 for additional information. We believe the carrying value of these receivables approximate their fair value using a Level 3 expected cash flow model.

For indirect channel wireless contracts with customers, we impute risk adjusted interest on the device payment plan agreement receivables. We record the imputed interest as a reduction to the related accounts receivable. Interest income, which is included within Service revenues and other in our condensed consolidated statements of income, is recognized over the financed device payment term.

Promotions

In connection with certain device payment plan agreements, we may offer a promotion to allow our customers to upgrade to a new device after paying down a certain specified portion of the required device payment plan agreement amount as well as trading in their device in good working order. When a customer enters into a device payment plan agreement with the right to upgrade to a new device, we account for this trade-in right as a guarantee obligation. We recognize a liability measured at fair value for the customer’s right to trade in the device which is determined by considering several factors, including the weighted-average selling prices obtained in recent resales of similar devices eligible for trade-in. At September 30, 2022 and December 31, 2021, the amount of the guarantee liability was $61 million and $77 million, respectively.

We may offer certain promotions that allow a customer to trade in their owned device in connection with the purchase of a new device. Under these types of promotions, the customer receives a credit for the value of the trade-in device. At September 30, 2022 and December 31, 2021, the amount of trade-in liability was $460 million and $366 million, respectively.

In addition, we may provide the customer with additional future billing credits that will be applied against the customer’s monthly bill as long as service is maintained. These future billing credits are accounted for as consideration payable to a customer and are included in the determination of total transaction price, resulting in a contract liability.

Device payment plan agreement receivables, net, does not reflect the trade-in liability, additional future credits or the guarantee liability.

Origination of Device Payment Plan Agreements

When originating device payment plan agreements, we use internal and external data sources to create a credit risk score to measure the credit quality of a customer and to determine eligibility for the device payment program. Verizon’s experience has been that the payment attributes of longer tenured customers are highly predictive for estimating their reliability to make future payments. Customers with longer tenures tend to exhibit similar risk characteristics to other customers with longer tenures, and receivables due from customers with longer tenures tend to perform better than receivables from customers that have not previously been Verizon customers. As a result of this experience, we make initial lending decisions based upon whether the customers are "established customers" or "short-tenured customers." If a Consumer customer has been a customer for 45 days or more, or if a Business customer has been a customer for 12 months or more, the customer is considered an "established customer." For established customers, the credit decision and ongoing credit monitoring processes rely on a combination of internal and external data sources. If a Consumer customer has been a customer less than 45 days, or a Business customer has been a customer for less than 12 months, the customer is considered a "short-tenured customer." For short-tenured customers, the credit decision and credit monitoring processes rely more heavily on external data sources.

Available external credit data from credit reporting agencies along with internal data are used to create custom credit risk scores for Consumer customers. The custom credit risk score is generated automatically from the applicant’s credit data using proprietary custom credit models. The credit risk score measures the likelihood that the potential customer will become severely delinquent and be disconnected for non-payment. For a small portion of short-tenured customer applications, a traditional credit report is not available from one of the national credit reporting agencies because the potential customer does not have sufficient credit history. In those instances, alternative credit data is used for the risk assessment. For Business customers, we also verify the existence of the business with external data sources.

Based on the custom credit risk score, we assign each customer a credit class, each of which has specified offers of credit. This includes an account level spending limit and a maximum amount of credit allowed per device for Consumer customers or a required down payment percentage for Business customers.

Credit Quality Information

Subsequent to origination, we assess indicators for the quality of our wireless device payment plan agreement portfolio using two models, one for new customers and one for existing customers. The model for new customers pools all Consumer and Business wireless customers based on less than 210 days as "new customers." The model for existing customers pools all Consumer and Business wireless customers based on 210 days or more as "existing customers."

The following table presents device payment plan agreement receivables, at amortized cost, as of September 30, 2022, by credit quality indicator and year of origination:

	Year of Origination(1)
(dollars in millions)	2022		2021		Prior to 2021		Total
New customers	$	1,993	$	1,273	$	82	$	3,348
Existing customers	12,299		7,608		544		20,451
Total	$	14,292	$	8,881	$	626	$	23,799

(1) Includes accounts that have been suspended at a point in time.

The data presented in the table above was last updated on September 30, 2022.

We assess indicators for the quality of our wireless service receivables portfolio as one overall pool. As of September 30, 2022, wireless service receivables, at amortized cost, originating in 2022 and 2021 were $5.1 billion and $66 million, respectively.

Allowance for Credit Losses

The credit quality indicators are used in determining the estimated amount and the timing of expected credit losses for the device payment plan agreement and wireless service receivables portfolios.

For device payment plan agreement receivables, we record bad debt expense based on a default and loss calculation using our proprietary loss model. The expected loss rate is determined based on customer credit scores and other qualitative factors as noted above. The loss rate is assigned individually on a customer by customer basis and the custom credit scores are then aggregated by vintage and used in our proprietary loss model to calculate the weighted-average loss rate used for determining the allowance balance.

We monitor the collectability of our wireless service receivables as one overall pool. Wireline service receivables are disaggregated and pooled by the following customer groups: consumer, small and medium business, global enterprise, public sector and wholesale. For wireless service receivables and wireline consumer and small and medium business receivables, the allowance is calculated based on a 12 month rolling average write-off balance multiplied by the average life-cycle of an account from billing to write-off. The risk of loss is assessed over the contractual life of the receivables and is adjusted based on the historical loss amounts for current and future conditions based on management’s qualitative considerations. For global enterprise, public sector and wholesale wireline receivables, the allowance for credit losses is based on historical write-off experience and individual customer credit risk, if applicable.

Activity in the allowance for credit losses by portfolio segment of receivables was as follows:

(dollars in millions)	Device Payment Plan Agreement Receivables(1)		Wireless Service Plan Receivables
Balance at January 1, 2022	$	759	$	130
Current period provision for expected credit losses	606		275
Write-offs charged against the allowance	(619)		(324)
Recoveries collected	26		33
Balance at September 30, 2022	$	772	$	114

(1) Includes allowance for both short-term and long-term device payment plan agreement receivables.

We monitor delinquency and write-off experience based on the quality of our device payment plan agreement and wireless service receivables portfolios. The extent of our collection efforts with respect to a particular customer are based on the results of our proprietary custom internal scoring models that analyze the customer’s past performance to predict the likelihood of the customer falling further delinquent. These custom scoring models assess a number of variables, including origination characteristics, customer account history and payment patterns. Since our customers’ behaviors may be impacted by general economic conditions, we analyzed whether changes in macroeconomic conditions impact our credit loss experience and have concluded that our credit loss estimates are generally not materially impacted by reasonable and supportable forecasts of future economic conditions. Based on the score derived from these models, accounts are grouped by risk category to determine the collection strategy to be applied to such accounts. For device payment plan agreement receivables and wireless service receivables, we consider an account to be delinquent and in default status if there are unpaid charges remaining on the account on the day after the bill’s due date. The risk class determines the speed and severity of the collections effort including initiatives taken to facilitate customer payment.

The balance and aging of the device payment plan agreement receivables, at amortized cost, were as follows:

	At September 30,
(dollars in millions)	2022
Unbilled	$	22,567
Billed:
Current	1,022
Past due	210
Device payment plan agreement receivables, at amortized cost	$	23,799

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Fair Value Measurements and Financial Instruments

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements and Financial Instruments

Note 7. Fair Value Measurements and Financial Instruments

Recurring Fair Value Measurements

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of September 30, 2022:

(dollars in millions)	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Prepaid expenses and other:
Fixed income securities	$	—	$	32	$	—	$	32
Cross currency swaps	—		1		—		1
Interest rate caps	—		33		—		33
Other assets:
Fixed income securities	—		341		—		341
Cross currency swaps	—		53		—		53
Interest rate caps	—		11		—		11
Total	$	—	$	471	$	—	$	471
Liabilities:
Other current liabilities:
Interest rate swaps	$	—	$	704	$	—	$	704
Foreign exchange forwards	—		10		—		10
Cross currency swaps	—		346		—		346
Interest rate caps	—		32		—		32
Contingent consideration	—		—		313		313
Other liabilities:
Interest rate swaps	—		3,850		—		3,850
Cross currency swaps	—		5,190		—		5,190
Interest rate caps	—		10		—		10
Contingent consideration	—		—		114		114
Total	$	—	$	10,142	$	427	$	10,569

(1)Quoted prices in active markets for identical assets or liabilities.

(2)Observable inputs other than quoted prices in active markets for identical assets and liabilities.

(3)Unobservable pricing inputs in the market.

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2021:

(dollars in millions)	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Prepaid expenses and other:
Fixed income securities	$	—	$	18	$	—	$	18
Interest rate swaps	—		188		—		188
Cross currency swaps	—		9		—		9
Foreign exchange forwards	—		12		—		12
Other assets:
Fixed income securities	—		391		—		391
Interest rate swaps	—		285		—		285
Cross currency swaps	—		580		—		580
Interest rate caps	—		44		—		44
Total	$	—	$	1,527	$	—	$	1,527
Liabilities:
Other current liabilities:
Interest rate swaps	$	—	$	1	$	—	$	1
Forward starting interest rate swaps	—		302		—		302
Cross currency swaps	—		218		—		218
Contingent consideration	—		—		231		231
Other liabilities:
Interest rate swaps	—		665		—		665
Cross currency swaps	—		1,406		—		1,406
Interest rate caps	—		44		—		44
Contingent consideration	—		—		313		313
Total	$	—	$	2,636	$	544	$	3,180

(1)Quoted prices in active markets for identical assets or liabilities.

(2)Observable inputs other than quoted prices in active markets for identical assets and liabilities.

(3)Unobservable pricing inputs in the market.

Certain of our equity investments do not have readily determinable fair values and are excluded from the tables above. Such investments are measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer and are included in Investments in unconsolidated businesses in our condensed consolidated balance sheets. As of September 30, 2022 and December 31, 2021, the carrying amount of our investments without readily determinable fair values was $814 million and $808 million, respectively. During both the three and nine months ended September 30, 2022, there were insignificant adjustments due to observable price changes and there were insignificant impairment charges. As of September 30, 2022, cumulative adjustments due to observable price changes and impairment charges were approximately $157 million and $82 million, respectively.

Verizon has a liability for contingent consideration related to its acquisition of TracFone, completed in November 2021. The fair value is calculated using a probability-weighted discounted cash flow model and represents a Level 3 measurement. Level 3 instruments include valuation based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. Subsequent to the Acquisition Date, at each reporting date, the contingent consideration liability is remeasured to fair value with changes recorded within Selling, general and administrative expense in our condensed consolidated statements of income. During the three months ended September 30, 2022, we made a payment of $113 million related to the contingent consideration. Refer to Note 3 for additional information.

Fixed income securities consist primarily of investments in municipal bonds. The valuation of the fixed income securities is based on the quoted prices for similar assets in active markets or identical assets in inactive markets or models that apply inputs from observable market data. The valuation determines that these securities are classified as Level 2.

Derivative contracts are valued using models based on readily observable market parameters for all substantial terms of our derivative contracts and thus are classified within Level 2. We use mid-market pricing for fair value measurements of our derivative instruments. Our derivative instruments are recorded on a gross basis.

We recognize transfers between levels of the fair value hierarchy as of the end of the reporting period.

Fair Value of Short-term and Long-term Debt

The fair value of our debt is determined using various methods, including quoted prices for identical debt instruments, which is a Level 1 measurement, as well as quoted prices for similar debt instruments with comparable terms and maturities, which is a Level 2 measurement.

The fair value of our short-term and long-term debt, excluding finance leases, was as follows:

			Fair Value
(dollars in millions)	Carrying Amount		Level 1		Level 2		Level 3		Total
At December 31, 2021	$	149,543	$	106,599	$	62,606	$	—	$	169,205
At September 30, 2022	146,326		82,250		51,393		—		133,643

Derivative Instruments

We enter into derivative transactions primarily to manage our exposure to fluctuations in foreign currency exchange rates and interest rates. We employ risk management strategies, which may include the use of a variety of derivatives including interest rate swaps, cross currency swaps, forward starting interest rate swaps, treasury rate locks, interest rate caps, swaptions and foreign exchange forwards. We do not hold derivatives for trading purposes.

The following table sets forth the notional amounts of our outstanding derivative instruments:

	At September 30,		At December 31,
(dollars in millions)	2022		2021
Interest rate swaps	$	26,071	$	19,779
Cross currency swaps	32,502		32,502
Forward starting interest rate swaps	—		1,000
Foreign exchange forwards	940		932

The following tables summarize the activities of our designated derivatives:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions)	2022		2021		2022		2021
Interest Rate Swaps:
Notional value entered into	$	—	$	—	$	7,155	$	2,550
Notional value settled	—		851		863		3,540
Pre-tax gain recognized in Interest expense	2		—		2		1
Cross Currency Swaps:
Notional value entered into	—		—		—		6,214
Notional value settled	—		—		—		—
Pre-tax loss recognized in Other comprehensive loss (1)	N/A		(1,057)		(430)		(1,984)
Pre-tax loss on cross currency swaps recognized in Interest expense	(2,039)		N/A		(3,847)		N/A
Pre-tax gain on hedged debt recognized in Interest expense	2,039		N/A		3,847		N/A
Excluded components recognized in Other comprehensive loss	169		N/A		(171)		N/A
Initial value of the excluded component amortized into Interest expense	27		N/A		54		N/A
Forward Starting Interest Rate Swaps:
Notional value entered into	—		—		—		—
Notional value settled	—		—		1,000		1,000
Pre-tax gain recognized in Other comprehensive loss	—		—		196		279
Treasury Rate Locks:
Notional value entered into	—		—		—		4,650
Notional value settled	—		—		—		4,650
Pre-tax gain recognized in Other comprehensive loss	—		—		—		251

N/A - not applicable

(1) Represents amounts recorded under the cash flow hedge model. These instruments were re-designated as fair value hedges on March 31, 2022.

	Nine Months Ended
	September 30,
(dollars in millions)	2022		2021
Other, net Cash Flows from Operating Activities:
Cash received for settlement of interest rate swaps	$	40	$	110
Cash paid for settlement of forward starting interest rate swaps	(107)		(237)
Cash received for settlement of treasury rate locks	—		251

The following table displays the amounts recorded in Long-term debt in our condensed consolidated balance sheets related to cumulative basis adjustments for fair value hedges. The cumulative amounts exclude cumulative basis adjustments related to foreign exchange risk.

	At September 30,		At December 31,
(dollars in millions)	2022		2021
Carrying amount of hedged liabilities	$	21,836	$	20,027
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities	(4,432)		(113)
Cumulative amount of fair value hedging adjustment remaining for which hedge accounting has been discontinued	510		575

Interest Rate Swaps

We enter into interest rate swaps to achieve a targeted mix of fixed and variable rate debt. We principally receive fixed rates and pay variable rates, resulting in a net increase or decrease to Interest expense. These swaps are designated as fair value hedges and hedge against interest rate risk exposure of designated debt issuances. We record the interest rate swaps at fair value in our condensed consolidated balance sheets as assets and liabilities. Changes in the fair value of the interest rate swaps are recorded to Interest expense, which are primarily offset by changes in the fair value of the hedged debt due to changes in interest rates.

Cross Currency Swaps

We have entered into cross currency swaps previously designated as cash flow hedges through March 31, 2022 to exchange our British Pound Sterling, Euro, Swiss Franc, Canadian Dollar and Australian Dollar-denominated cash flows into U.S. dollars and to fix our cash payments in U.S. dollars, as well as to mitigate the impact of foreign currency transaction gains or losses. A portion of the loss recognized in Other comprehensive loss was reclassified to Interest expense to offset the related pre-tax foreign currency transaction gain or loss on the underlying hedged item.

On March 31, 2022, we elected to de-designate our cross currency swaps as cash flow hedges and re-designated these swaps as fair value hedges. For these hedges, we have elected to exclude the change in fair value of the cross currency swaps related to both time value and cross currency basis spread from the assessment of hedge effectiveness (the excluded components). The initial value of the excluded components of $1.0 billion as of March 31, 2022 will continue to be amortized into Interest expense over the remaining life of the hedging instruments. We estimate that $108 million will be amortized into Interest expense within the next 12 months.

We record the cross currency swaps at fair value in our condensed consolidated balance sheets as assets and liabilities. Changes in the fair value of the cross currency swaps attributable to changes in the spot rate of the hedged item and changes in the recorded value of the hedged debt due to changes in spot rates are recorded in the same income statement line item. We present exchange gains and losses from the conversion of foreign currency denominated debt as a part of Interest expense. During the three and nine months ended September 30, 2022, these amounts completely offset each other and no net gain or loss was recorded.

Changes in the fair value of cross currency swaps attributable to time value and cross currency basis spread are initially recorded to Other comprehensive loss. Unrealized gains or losses on excluded components are recorded in Other comprehensive loss and are recognized into Interest expense on a systematic and rational basis through the swap accrual over the life of the hedging instrument. The amount remaining in Accumulated other comprehensive loss related to cash flow hedges on the date of transition will be reclassified to earnings when the hedged item is recognized in earnings or when it becomes probable that the forecasted transactions will not occur. During the three and nine months ended September 30, 2022, the amortization of the initial value of the excluded component completely offset the amortization related to the amount remaining in Other comprehensive loss related to cash flow hedges. See Note 9 for additional information.

Forward Starting Interest Rate Swaps

We have entered into forward starting interest rate swaps designated as cash flow hedges in order to manage our exposure to interest rate changes on future forecasted transactions. We hedge our exposure to the variability in future cash flows based on

the expected maturities of the related forecasted debt issuance. We recognize gains and losses resulting from interest rate movements in Other comprehensive loss.

Treasury Rate Locks

We enter into treasury rate locks to mitigate our interest rate risk. We recognize gains and losses resulting from interest rate movements in Other comprehensive loss.

Net Investment Hedges

We have designated certain foreign currency debt instruments as net investment hedges to mitigate foreign exchange exposure related to non-U.S. dollar net investments in certain foreign subsidiaries against changes in foreign exchange rates. The notional amount of Euro-denominated debt designated as a net investment hedge was €750 million as of both September 30, 2022 and December 31, 2021.

Undesignated Derivatives

We also have the following derivative contracts which we use as economic hedges but for which we have elected not to apply hedge accounting.

The following table summarizes the activity of our derivatives not designated in hedging relationships:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions)	2022		2021		2022		2021
Foreign Exchange Forwards:
Notional value entered into	$	2,642	$	2,745	$	8,144	$	9,970
Notional value settled	2,703		3,365		8,136		10,505
Pre-tax loss recognized in Other income (expense), net	(75)		(29)		(169)		(51)
Swaptions:
Notional value sold	—		1,000		1,000		1,000
Notional value settled	—		—		1,000		—
Pre-tax loss recognized in Interest expense	—		—		(33)		—

Foreign Exchange Forwards

We enter into British Pound Sterling and Euro foreign exchange forwards to mitigate our foreign exchange rate risk related to non-functional currency denominated monetary assets and liabilities of international subsidiaries.

Swaptions

We enter into swaptions to achieve a targeted mix of fixed and variable rate debt.

Concentrations of Credit Risk

Financial instruments that subject us to concentrations of credit risk consist primarily of temporary cash investments, short-term and long-term investments, trade receivables, including device payment plan agreement receivables, certain notes receivable, including lease receivables, and derivative contracts.

Counterparties to our derivative contracts are major financial institutions with whom we have negotiated derivatives agreements (ISDA master agreements) and credit support annex (CSA) agreements which provide rules for collateral exchange. The CSA agreements contain rating based thresholds such that we or our counterparties may be required to hold or post collateral based upon changes in outstanding positions as compared to established thresholds and changes in credit ratings. We do not offset fair value amounts recognized for derivative instruments and fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments recognized at fair value. At September 30, 2022, we did not hold any collateral. At September 30, 2022, we posted $4.9 billion of collateral related to derivative contracts under collateral exchange agreements, which was recorded as Prepaid expenses and other in our condensed consolidated balance sheets. At December 31, 2021, we held and posted $0.1 billion and an insignificant amount, respectively, of collateral related to derivative contracts under collateral exchange arrangements, which were recorded as Other current liabilities and Prepaid expenses and other, respectively, in our condensed consolidated balance sheets. While we may be exposed to credit losses due to the nonperformance of our counterparties, we consider the risk remote and do not expect that any such nonperformance would result in a significant effect on our results of operations or financial condition due to our diversified pool of counterparties.

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Employee Benefits

9 Months Ended

Sep. 30, 2022

Retirement Benefits [Abstract]

Employee Benefits

Note 8. Employee Benefits

We maintain non-contributory defined benefit pension plans for certain employees. In addition, we maintain postretirement health care and life insurance plans for certain retirees and their dependents, which are both contributory and non-contributory, and

include a limit on our share of the cost for certain current and future retirees. In accordance with our accounting policy for pension and other postretirement benefits, operating expenses include service costs associated with pension and other postretirement benefits while other credits and/or charges based on actuarial assumptions, including projected discount rates, an estimated return on plan assets, and impact from health care trend rates are reported in Other income (expense), net. These estimates are updated in the fourth quarter to reflect actual return on plan assets and updated actuarial assumptions or upon a remeasurement event. The adjustment is recognized in the income statement during the fourth quarter or upon a remeasurement event pursuant to our accounting policy for the recognition of actuarial gains and losses.

Net Periodic Benefit Cost (Income)

The following table summarizes the components of net periodic benefit cost (income) related to our pension and postretirement health care and life insurance plans:

	(dollars in millions)
	Pension				Health Care and Life
Three Months Ended September 30,	2022		2021		2022		2021
Service cost - Cost of services	$	52	$	59	$	20	$	24
Service cost - Selling, general and administrative expense	7		8		4		4
Service cost	$	59	$	67	$	24	$	28
Amortization of prior service cost (credit)	$	24	$	16	$	(106)	$	(223)
Expected return on plan assets	(274)		(309)		(6)		(6)
Interest cost	151		102		83		72
Remeasurement loss, net	645		144		—		—
Other components	$	546	$	(47)	$	(29)	$	(157)
Total	$	605	$	20	$	(5)	$	(129)

	(dollars in millions)
	Pension				Health Care and Life
Nine Months Ended September 30,	2022		2021		2022		2021
Service cost - Cost of services	$	168	$	186	$	60	$	71
Service cost - Selling, general and administrative expense	23		26		11		14
Service cost	$	191	$	212	$	71	$	85
Amortization of prior service cost (credit)	$	54	$	46	$	(419)	$	(670)
Expected return on plan assets	(865)		(927)		(20)		(17)
Interest cost	375		296		249		217
Remeasurement loss (gain), net	843		(1,170)		—		—
Other components	$	407	$	(1,755)	$	(190)	$	(470)
Total	$	598	$	(1,543)	$	(119)	$	(385)

The service cost component of net periodic benefit cost (income) is recorded in Cost of services and Selling, general and administrative expense in the condensed consolidated statements of income while the other components, including mark-to-market adjustments, if any, are recorded in Other income (expense), net.

During the three months ended September 30, 2022, we updated the expected return on plan assets assumption for our pension plans from 6.25% at December 31, 2021 to 7.25% based upon the expected market returns for our targeted asset allocation.

Severance Payments

During the three and nine months ended September 30, 2022, we paid severance benefits of an insignificant amount and $155 million, respectively. At September 30, 2022, we had a remaining severance liability of $400 million, a portion of which includes future contractual payments to separated employees.

Employer Contributions

During both the three and nine months ended September 30, 2022 and September 30, 2021, we made no contributions to our qualified pension plans and made insignificant contributions to our nonqualified pension plans. We do not expect mandatory pension funding through December 31, 2022. There have been no significant changes with respect to the nonqualified pension and other postretirement benefit plans contributions in 2022.

Remeasurement loss (gain), net

During the three and nine months ended September 30, 2022, we recorded a net pre-tax remeasurement loss of $645 million and $843 million, respectively, in our pension plans triggered by settlements as well as amendments to our collective bargaining agreements.

During the three months ended September 30, 2022, we recorded a net pre-tax remeasurement loss of $645 million in our pension plans triggered by settlements as well as amendments to our collective bargaining agreements, primarily driven by a $3.5 billion charge resulting from the difference between our estimated and actual return on assets, partially offset by a credit of $2.9 billion mainly due to changes in our discount rate and changes in our lump sum interest rate assumptions used to determine the current year liabilities of our pension plans.

During the three months ended June 30, 2022, we recorded a net pre-tax remeasurement loss of $198 million in our pension plans triggered by settlements, primarily driven by a $654 million charge resulting from the difference between our estimated and actual return on assets, partially offset by a credit of $456 million mainly due to changes in our discount rate and changes in our lump sum interest rate assumptions used to determine the current year liabilities of our pension plans.

During the three and nine months ended September 30, 2021, we recorded a net pre-tax remeasurement loss of $144 million and a net pre-tax remeasurement gain of $1.2 billion, respectively, in our pension plans triggered by settlements.

During the three months ended September 30, 2021, we recorded a pre-tax remeasurement loss of $144 million in our pension plans driven by a $667 million charge due to changes in our discount rate and other assumption changes, offset by a $523 million credit resulting from the difference between our estimated and our actual return on assets.

During the three months ended June 30, 2021, we recorded a pre-tax remeasurement gain of $1.3 billion in our pension plans triggered by settlements, primarily driven by a $1.2 billion credit mainly due to changes in our discount rate and changes in our lump sum interest rate assumptions used to determine the current year liabilities of our pension plans and a $122 million credit resulting from the difference between our estimated and our actual return on assets.

2022 Collective Bargaining Negotiations

In July 2022, union members ratified the extension of our collective bargaining agreements with the Communications Workers of America and the International Brotherhood of Electrical Workers for three years, from August 5, 2023 until August 1, 2026.

Change in Defined Benefit Pension Plans

During the three months ended September 30, 2022, amendments were made to certain pension plans for certain union represented employees. The impact of the plan amendments was an increase in our defined benefit pension plan obligations of approximately $427 million, which has been recorded as a net decrease to Accumulated other comprehensive income of $317 million (net of taxes of $110 million). The impact of the amount recorded in Accumulated other comprehensive income that will be reclassified to net periodic benefit cost is minimal.

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Equity and Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2022

Stockholders' Equity Note [Abstract]

Equity and Accumulated Other Comprehensive Loss

Note 9. Equity and Accumulated Other Comprehensive Loss

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,	2022			2021
	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		13,872			13,403
Other (1)		(405)			(1)
Balance at end of period		13,467			13,402
Retained Earnings
Balance at beginning of period		76,401			66,310
Net income attributable to Verizon		4,900			6,407
Dividends declared ($0.6525, $0.6400 per share)		(2,741)			(2,651)
Other		(15)			(4)
Balance at end of period		78,545			70,062
Accumulated Other Comprehensive Loss
Balance at beginning of period attributable to Verizon		(1,320)			(234)
Foreign currency translation adjustments		(120)			(146)
Unrealized gain (loss) on cash flow hedges		22			(174)
Unrealized gain on fair value hedges		105			—
Unrealized loss on marketable securities		(8)			—
Defined benefit pension and postretirement plans		(379)			(155)
Other comprehensive loss		(380)			(475)
Balance at end of period attributable to Verizon		(1,700)			(709)
Treasury Stock
Balance at beginning of period	(91,719)	(4,020)		(151,318)	(6,632)
Employee plans	103	5		48	2
Balance at end of period	(91,616)	(4,015)		(151,270)	(6,630)
Deferred Compensation-ESOPs and Other
Balance at beginning of period		654			408
Restricted stock equity grant		98			85
Amortization		(10)			(3)
Balance at end of period		742			490
Noncontrolling Interests
Balance at beginning of period		1,341			1,428
Total comprehensive income		124			147
Distributions and other (1)		(150)			(130)
Balance at end of period		1,315			1,445
Total Equity		$	88,783		$	78,489

(1) 2022 period includes adjustments related to the acquisition of additional interests in certain controlled wireless partnerships.

(dollars in millions, except per share amounts, and shares in thousands)
Nine months ended September 30,	2022			2021
	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		13,861			13,404
Other (1)		(394)			(2)
Balance at end of period		13,467			13,402
Retained Earnings
Balance at beginning of period		71,993			60,464
Net income attributable to Verizon		14,679			17,452
Dividends declared ($1.9325, $1.8950 per share)		(8,120)			(7,850)
Other		(7)			(4)
Balance at end of period		78,545			70,062
Accumulated Other Comprehensive Loss
Balance at beginning of period attributable to Verizon		(927)			(71)
Foreign currency translation adjustments		(285)			(126)
Unrealized gain (loss) on cash flow hedges		301			(42)
Unrealized loss on fair value hedges		(167)			—
Unrealized loss on marketable securities		(32)			(5)
Defined benefit pension and postretirement plans		(590)			(465)
Other comprehensive loss		(773)			(638)
Balance at end of period attributable to Verizon		(1,700)			(709)
Treasury Stock
Balance at beginning of period	(93,635)	(4,104)		(153,304)	(6,719)
Employee plans	2,016	89		2,031	89
Shareholder plans	3	—		3	—
Balance at end of period	(91,616)	(4,015)		(151,270)	(6,630)
Deferred Compensation-ESOPs and Other
Balance at beginning of period		538			335
Restricted stock equity grant		368			315
Amortization		(164)			(160)
Balance at end of period		742			490
Noncontrolling Interests
Balance at beginning of period		1,410			1,430
Total comprehensive income		371			429
Distributions and other (1)		(466)			(414)
Balance at end of period		1,315			1,445
Total Equity		$	88,783		$	78,489

(1) 2022 period includes adjustments related to the acquisition of additional interests in certain controlled wireless partnerships.

Common Stock

Verizon did not repurchase any shares of Verizon common stock through its previously authorized share buyback program during the nine months ended September 30, 2022. At September 30, 2022, 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 2.0 million shares of common stock issued from Treasury stock during the nine months ended September 30, 2022.

Noncontrolling Interests

During the three months ended September 30, 2022, Verizon entered into and completed an agreement to acquire additional interests in certain controlled wireless partnerships for cash consideration of $458 million. Verizon continues to retain controlling financial interest within these partnerships, therefore the changes in ownership interest were accounted for as equity transactions which resulted in a reduction of additional paid-in capital of $406 million and noncontrolling interest of $52 million for both the three and nine months ended September 30, 2022. These transactions were recorded within Other, net cash flow from financing activities in our condensed consolidated statements of cash flows for the nine months ended September 30, 2022.

Accumulated Other Comprehensive Loss

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

(dollars in millions)	Foreign  currency translation adjustments		Unrealized gain (loss) on cash flow hedges		Unrealized loss on fair value hedges		Unrealized gain (loss) on marketable securities		Defined benefit pension and postretirement plans		Total
Balance at January 1, 2022	$	(545)	$	(1,472)	$	—	$	16	$	1,074	$	(927)
Excluded components recognized in other comprehensive income	—		—		(127)		—		—		(127)
Other comprehensive loss	(285)		(174)		—		(32)		(317)		(808)
Amounts reclassified to net income	—		475		(40)		—		(273)		162
Net other comprehensive income (loss)	(285)		301		(167)		(32)		(590)		(773)
Balance at September 30, 2022	$	(830)	$	(1,171)	$	(167)	$	(16)	$	484	$	(1,700)

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

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Segment Information

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Information

Note 10. 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, TracFone brands 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. Refer to Note 3 for additional information on the sale of Verizon Media.

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions)	2022		2021		2022		2021
External Operating Revenues
Consumer
Service	$	18,421	$	16,889	$	54,696	$	50,159
Wireless equipment	5,558		4,530		16,640		13,461
Other(1)	1,809		1,852		5,247		5,807
Total Consumer	25,788		23,271		76,583		69,427
Business
Small and Medium Business	3,191		2,929		9,315		8,644
Global Enterprise	2,449		2,551		7,310		7,690
Public Sector and Other	1,531		1,548		4,587		4,807
Wholesale	656		645		1,926		2,038
Total Business	7,827		7,673		23,138		23,179
Total reportable segments	$	33,615	$	30,944	$	99,721	$	92,606
Intersegment Revenues
Consumer	$	52	$	57	$	153	$	176
Business	10		16		34		53
Total reportable segments	$	62	$	73	$	187	$	229
Total Operating Revenues
Consumer	$	25,840	$	23,328	$	76,736	$	69,603
Business(2)	7,837		7,689		23,172		23,232
Total reportable segments	$	33,677	$	31,017	$	99,908	$	92,835
Operating Income
Consumer	$	7,349	$	7,590	$	21,818	$	22,606
Business	698		886		2,046		2,641
Total reportable segments	$	8,047	$	8,476	$	23,864	$	25,247

(1) Other revenue includes fees that partially recover the direct and indirect costs of complying with regulatory and industry obligations and programs, revenues associated with certain products included in our device protection offerings, leasing and interest on equipment financed under a device payment plan agreement when sold to the customer by an authorized agent.

(2) Service and other revenues included in our Business segment amounted to $6.8 billion and $6.9 billion for the three months ended September 30, 2022 and 2021, respectively, and $20.2 billion and $20.9 billion for the nine months ended September 30, 2022 and 2021, respectively. Wireless equipment revenues included in our Business segment amounted to $1.0 billion and $820 million for the three months ended September 30, 2022 and 2021, respectively, and $2.9 billion and $2.4 billion for the nine months ended September 30, 2022 and 2021, respectively.

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions)	2022		2021		2022		2021
Consumer	$	2,902	$	2,893	$	8,708	$	8,648
Business	304		287		897		844
Total Fios revenue	$	3,206	$	3,180	$	9,605	$	9,492

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions)	2022		2021		2022		2021
Consumer	$	15,517	$	13,982	$	45,970	$	41,460
Business	3,273		3,097		9,580		9,247
Total Wireless service revenue	$	18,790	$	17,079	$	55,550	$	50,707

Reconciliation to Consolidated Financial Information

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

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions)	2022		2021		2022		2021
Total reportable segment operating revenues	$	33,677	$	31,017	$	99,908	$	92,835
Corporate and other	627		2,009		1,868		7,093
Eliminations	(63)		(111)		(192)		(382)
Total consolidated operating revenues	$	34,241	$	32,915	$	101,584	$	99,546

A reconciliation of the total reportable segment's operating income to consolidated income before provision for income taxes is as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions)	2022		2021		2022		2021
Total reportable segment operating income	$	8,047	$	8,476	$	23,864	$	25,247
Corporate and other	(85)		621		(299)		392
Other components of net periodic benefit charges (Note 8)	(68)		(192)		(323)		(576)
Loss on spectrum licenses (Note 3)	—		—		—		(223)
Total consolidated operating income	7,894		8,905		23,242		24,840
Equity in earnings of unconsolidated businesses	2		1		40		10
Other income (expense), net	(439)		269		(1,314)		1,172
Interest expense	(937)		(801)		(2,508)		(2,746)
Income Before Provision For Income Taxes	$	6,520	$	8,374	$	19,460	$	23,276

No single customer accounted for more than 10% of our total operating revenues during the three and nine months ended September 30, 2022 or 2021.

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

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 11. Commitments and Contingencies

In the ordinary course of business, Verizon is involved in various commercial litigation and regulatory proceedings at the state and federal level. Where it is determined, in consultation with counsel based on litigation and settlement risks, that a loss is probable and estimable in a given matter, the Company establishes an accrual. In none of the currently pending matters is the amount of accrual material. An estimate of the reasonably possible loss or range of loss in excess of the amounts already accrued cannot be made at this time due to various factors typical in contested proceedings, including: (1) uncertain damage theories and demands; (2) a less than complete factual record; (3) uncertainty concerning legal theories and their resolution by courts or regulators; and (4) the unpredictable nature of the opposing party and its demands. We continuously monitor these proceedings as they develop and adjust any accrual or disclosure as needed. We do not expect that the ultimate resolution of any pending regulatory or legal matter in future periods will have a material effect on our financial condition, but it could have a material effect on our results of operations for a given reporting period.

Verizon is currently involved in approximately 20 federal district court actions alleging that Verizon is infringing various patents. Most of these cases are brought by non-practicing entities and effectively seek only monetary damages; a small number are brought by companies that have sold products and could seek injunctive relief as well. These cases have progressed to various stages and a small number may go to trial in the coming 12 months if they are not otherwise resolved.

In connection with the execution of agreements for the sales of businesses and investments, Verizon ordinarily provides representations and warranties to the purchasers pertaining to a variety of nonfinancial matters, such as ownership of the securities being sold, as well as indemnity from certain financial losses. From time to time, counterparties may make claims under these provisions, and Verizon will seek to defend against those claims and resolve them in the ordinary course of business.

During the nine months ended September 30, 2022, Verizon entered into two renewable energy purchase agreements (REPAs) with third parties. Each of the REPAs is based on the expected operation of a renewable energy-generating facility and has a fixed price term from 12 to 15 years from commencement of the facility's entry into commercial operation. The REPAs generally are expected to be financially settled based on the prevailing market price as energy is generated by the facilities.

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Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2022

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, 2021. 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.

Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash

We consider all highly liquid investments with an original maturity of 90 days or less when purchased to be cash equivalents. Cash equivalents are stated at cost, which approximates quoted market value and includes amounts held in money market funds.

Cash collections on the device payment plan agreement receivables collateralizing our 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.

Revenues

We earn revenue from contracts with customers, primarily through the provision of telecommunications and other services and through the sale of wireless equipment.

Revenue by Category

We have two reportable segments that we operate and manage as strategic business units, Consumer and Business. Revenue is disaggregated by products and services within Consumer, and customer groups (Small and Medium Business, Global Enterprise, Public Sector and Other, and Wholesale) within Business. See Note 10 for additional information on revenue by segment. Corporate and other primarily includes insurance captive revenues.

We also earn revenues that are not accounted for under Accounting Standards Update (ASU) 2014-09, "Revenue from Contracts with Customers" (Topic 606) from leasing arrangements (such as those for towers and equipment), captive reinsurance arrangements primarily related to wireless device insurance and the interest on equipment financed under a device payment plan agreement when sold to the customer by an authorized agent. As allowed by the practical expedient within ASU 2016-02, "Leases" (Topic 842), we have elected to combine the lease and non-lease components for those arrangements of customer premise equipment where we are the lessor as components accounted for under Topic 606.Remaining Performance ObligationsWhen allocating the total contract transaction price to identified performance obligations, a portion of the total transaction price may relate to service performance obligations which were not satisfied or are partially satisfied as of the end of the reporting period. Below we disclose information relating to these unsatisfied performance obligations. We apply the practical expedient available under Topic 606 that provides the option to exclude the expected revenues arising from unsatisfied performance obligations related to contracts that have an original expected duration of one year or less. This situation primarily arises with respect to certain month-to-month service contracts.

Accounts Receivable and Contract Balances

The timing of revenue recognition may differ from the time of billing to our customers. Receivables presented in our condensed consolidated balance sheets represent an unconditional right to consideration. Contract balances represent amounts from an arrangement when either Verizon has performed, by transferring goods or services to the customer in advance of receiving all or partial consideration for such goods and services from the customer, or the customer has made payment to Verizon in advance of obtaining control of the goods and/or services promised to the customer in the contract.

Contract assets primarily relate to our rights to consideration for goods or services provided to customers but for which we do not have an unconditional right at the reporting date. Under a fixed-term plan, total contract revenue is allocated between wireless service and equipment revenues. In conjunction with these arrangements, a contract asset is created, which represents the difference between the amount of equipment revenue recognized upon sale and the amount of consideration received from the customer when the performance obligation related to the transfer of control of the equipment is satisfied. The contract asset is reclassified to accounts receivable as wireless services are provided and billed. We have the right to bill the customer as service is provided over time, which results in our right to the payment being unconditional. The contract asset balances are presented in our condensed consolidated balance sheets as Prepaid expenses and other and Other assets. We recognize the allowance for credit losses at inception and reassess quarterly based on management’s expectation of the asset’s collectability.

Contract liabilities arise when we bill our customers and receive consideration in advance of providing the goods or services promised in the contract. We typically bill service one month in advance, which is the primary component of the contract liability

Contract Costs

Topic 606 requires the recognition of an asset for incremental costs to obtain a customer contract, which are then amortized to expense over the respective periods of expected benefit. We recognize an asset for incremental commission expenses paid to internal and external sales personnel and agents in conjunction with obtaining customer contracts. We only defer these costs when we have determined the commissions are incremental costs that would not have been incurred absent the customer contract and are expected to be recoverable. Costs to obtain a contract are amortized and recorded ratably as commission expense over the period representing the transfer of goods or services to which the assets relate. Costs to obtain wireless contracts are amortized over both of our Consumer and Business customers' estimated upgrade cycles, as such costs are typically incurred each time a customer upgrades. Costs to obtain wireline contracts are amortized as expense over the estimated customer relationship period for our Consumer customers. Incremental costs to obtain wireline contracts for our Business customers are insignificant. Costs to obtain contracts are recorded in Selling, general and administrative expense.

We also defer costs incurred to fulfill contracts that: (1) relate directly to the contract; (2) are expected to generate resources that will be used to satisfy our performance obligation under the contract; and (3) are expected to be recovered through revenue generated under the contract. Contract fulfillment costs are expensed as we satisfy our performance obligations and recorded in Cost of services. These costs principally relate to direct costs that enhance our wireline business resources, such as costs incurred to install circuits.

We determine the amortization periods for our costs incurred to obtain or fulfill a customer contract at a portfolio level due to the similarities within these customer contract portfolios.

Other costs, such as general costs or costs related to past performance obligations, are expensed as incurred.

We assess our deferred contract costs for impairment on a quarterly basis. We recognize an impairment charge to the extent the carrying amount of a deferred cost exceeds the remaining amount of consideration we expect to receive in exchange for the goods and services related to the cost, less the expected costs related directly to providing those goods and services that have not yet been recognized as expenses.

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Basis of Presentation (Tables)

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Cash and Cash Equivalents

Cash, cash equivalents and restricted cash are included in the following line items in the condensed consolidated balance sheets:

	At September 30,		At December 31,		Increase / (Decrease)
(dollars in millions)	2022		2021
Cash and cash equivalents	$	2,082	$	2,921	$	(839)
Restricted cash:
Prepaid expenses and other	1,355		1,094		261
Other assets	150		146		4
Cash, cash equivalents and restricted cash	$	3,587	$	4,161	$	(574)

Schedule of Restricted Cash

Cash, cash equivalents and restricted cash are included in the following line items in the condensed consolidated balance sheets:

	At September 30,		At December 31,		Increase / (Decrease)
(dollars in millions)	2022		2021
Cash and cash equivalents	$	2,082	$	2,921	$	(839)
Restricted cash:
Prepaid expenses and other	1,355		1,094		261
Other assets	150		146		4
Cash, cash equivalents and restricted cash	$	3,587	$	4,161	$	(574)

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Revenues and Contract Costs (Tables)

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Contract with Customer, Asset and Liability

The following table presents information about receivables from contracts with customers:

	At September 30,		At January 1,		At September 30,		At January 1,
(dollars in millions)	2022		2022		2021		2021
Receivables(1)	$	10,556	$	10,758	$	10,088	$	12,029
Device payment plan agreement receivables(2)	14,680		12,888		11,178		10,358

(1)Balances do not include receivables related to the following contracts: leasing arrangements (such as those for towers and equipment), captive reinsurance arrangements primarily related to wireless device insurance and the interest on equipment financed under a device payment plan agreement when sold to the customer by an authorized agent.

(2)Included in device payment plan agreement receivables presented in Note 6. Receivables derived from the sale of equipment on a device payment plan through an authorized agent are excluded.

The following table presents information about contract balances:

	At September 30,		At January 1,		At September 30,		At January 1,
(dollars in millions)	2022		2022		2021		2021
Contract asset	$	869	$	934	$	878	$	937
Contract liability(1)	7,954		7,229		6,034		5,598

(1) Revenue recognized related to contract liabilities existing at January 1, 2022 were $167 million and $4.8 billion for the three and nine months ended September 30, 2022, respectively. Revenue recognized related to contract liabilities existing at January 1, 2021 were $161 million and $4.2 billion for the three and nine months ended September 30, 2021, respectively.

The balances of contract assets and contract liabilities recorded in our condensed consolidated balance sheets were as follows:

	At September 30,		At December 31,
(dollars in millions)	2022		2021
Assets
Prepaid expenses and other	$	692	$	739
Other assets	177		195
Total	$	869	$	934
Liabilities
Other current liabilities	$	6,475	$	6,053
Other liabilities	1,479		1,176
Total	$	7,954	$	7,229

Capitalized Contract Cost

The balances of deferred contract costs included in our condensed consolidated balance sheets were as follows:

	At September 30,		At December 31,
(dollars in millions)	2022		2021
Assets
Prepaid expenses and other	$	2,572	$	2,432
Other assets	2,362		2,259
Total	$	4,934	$	4,691

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Acquisitions and Divestitures (Tables)

9 Months Ended

Sep. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary allocation of the consideration paid and payable to the identified assets acquired and liabilities assumed as of the Acquisition Date. The purchase price allocation is preliminary and is subject to revision as additional information about the fair value of the assets acquired and liabilities assumed, including related deferred income taxes, become available.

	November 23,		Measurement Period Adjustments(1)		Adjusted
(dollars in millions)	2021				Fair Value
Consideration:
Cash, net of cash acquired and working capital and other adjustments	$	3,491	$	17	$	3,508
Fair value of Verizon common stock (57,596,544 shares)	2,981		—		2,981
Fair value of contingent consideration to be paid	542		(2)		540
Total consideration	$	7,014	$	15	$	7,029
Assets acquired:
Current assets	$	1,370	$	9	$	1,379
Property, plant and equipment, net	96		(10)		86
Goodwill	3,723		(6)		3,717
Other intangible assets	4,374		—		4,374
Other assets	731		107		838
Total assets acquired	$	10,294	$	100	$	10,394
Liabilities assumed:
Current liabilities	1,433		67		1,500
Deferred income taxes	1,007		(48)		959
Other liabilities	840		66		906
Total liabilities assumed	$	3,280	$	85	$	3,365
Net assets acquired	$	7,014	$	15	$	7,029

(1) Adjustments to the fair value measurements reflect new information obtained about facts and circumstances that existed as of the Acquisition Date, that if known, would have affected the measurement of the amounts recognized as of that date. The most significant adjustments related to deferred income taxes and deferred commission costs.

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Wireless Licenses, Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Carrying Amount of Wireless Licenses

The carrying amounts of our Wireless licenses are as follows:

	At September 30,		At December 31,
(dollars in millions)	2022		2021
Wireless licenses	$	149,292	$	147,619

Changes in Carrying Amount of Goodwill

Changes in the carrying amount of Goodwill are as follows:

(dollars in millions)	Consumer		Business		Other		Total
Balance at January 1, 2022	$	21,042	$	7,515	$	46	$	28,603
Acquisitions (1)	(6)		—		—		(6)
Reclassifications, adjustments and other (2)	—		(27)		(22)		(49)
Balance at September 30, 2022	$	21,036	$	7,488	$	24	$	28,548

(1) The change in goodwill relates to the acquisition of TracFone. See Note 3 for additional information.

(2) Includes a goodwill impairment charge of $16 million, related to an early stage development company presented within Other, recorded in Selling, general and administrative expense in our condensed consolidated statements of income for the nine months ended September 30, 2022.

Composition of Other Intangible Assets, Net

The following table displays the composition of Other intangible assets, net as well as the respective amortization periods:

	At September 30, 2022						At December 31, 2021
(dollars in millions)	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
Customer lists (5 to 13 years)	$	4,185	$	(1,571)	$	2,614	$	4,201	$	(1,126)	$	3,075
Non-network internal-use software (7 years)	22,644		(16,017)		6,627		21,310		(14,897)		6,413
Other (4 to 25 years)	2,996		(1,041)		1,955		2,974		(785)		2,189
Total	$	29,825	$	(18,629)	$	11,196	$	28,485	$	(16,808)	$	11,677

Amortization Expense for Other Intangible Assets

The amortization expense for Other intangible assets was as follows: 

	Three Months Ended		Nine Months Ended
(dollars in millions)	September 30,		September 30,
2022	$	658	$	1,944
2021	430		1,539

Estimated Future Amortization Expense for Other Intangible Assets

The estimated future amortization expense for Other intangible assets for the remainder of the current year and next 5 years is as follows:

Years	(dollars in millions)
Remainder of 2022	$	652
2023	2,468
2024	2,178
2025	1,993
2026	1,734
2027	1,033

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Debt (Tables)

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Schedule of Debt Transactions

The following tables show the significant transactions involving the senior unsecured debt securities of Verizon and its subsidiaries that occurred during the three and nine months ended September 30, 2022.

Tender Offers

(dollars in millions)	Principal Amount Purchased		Cash Consideration(1)
Three Months Ended March 31, 2022
Verizon and subsidiary 2.987% - 8.950% notes and debentures, due 2032 - 2056	$	5,032	$	5,587
Three Months Ended March 31, 2022 total	5,032		5,587
Nine Months Ended September 30, 2022 total	$	5,032	$	5,587

(1) The total cash consideration includes the tender offer consideration, plus any accrued and unpaid interest to the date of purchase.

Repayments and Repurchases

(dollars in millions)	Principal Repaid/ Repurchased		Amount Paid (1)
Three Months Ended March 31, 2022
Verizon floating rate (London Inter-Bank Offered Rate + 1.000%) notes due 2022	$	1,094	$	1,097
Three Months Ended March 31, 2022 total	1,094		1,097
Three Months Ended June 30, 2022
Subsidiary 8.000% debentures due 2022	103		108
Open market repurchases of various Verizon notes	359		307
Three Months Ended June 30, 2022 total	462		415
Three Months Ended September 30, 2022
Open market repurchases of various Verizon notes	260		211
Three Months Ended September 30, 2022 total	260		211
Nine Months Ended September 30, 2022 total	$	1,816	$	1,723

(1) Represents amount paid to repay or repurchase, including any accrued interest.

Issuances

(dollars in millions)	Principal Amount Issued		Net Proceeds (1)
Three Months Ended March 31, 2022
Verizon 3.875% notes due 2052 (2)	$	1,000	$	982
Verizon 4.100% notes due 2055	655		650
Three Months Ended March 31, 2022 total	1,655		1,632
Nine Months Ended September 30, 2022 total	$	1,655	$	1,632

(1) Net proceeds were net of underwriting discounts and other issuance costs.

(2) An amount equal to the net proceeds from this green bond is expected to be used to fund, in whole or in part, certain renewable energy projects, including new and existing investments made by us during the period from December 1, 2021 through the maturity date of the green bond.

During the nine months ended September 30, 2022, we completed the following ABS Notes transactions:

(dollars in millions)	Interest Rates %	Expected Weighted-average Life to Maturity (in years)	Principal Amount Issued
January 2022
Series 2022-1
A Senior class notes	1.040	1.49	$	799
B Junior class notes	1.270	1.49	64
C Junior class notes	1.390	1.49	37
Series 2022-2
A Senior class notes	1.530	2.99	710
B Junior class notes	1.830	2.99	57
C Junior class notes	2.010	2.99	33
January 2022 total			1,700
May 2022
Series 2022-3
A Senior class notes	3.010	1.49	400
B Junior class notes	3.250	1.49	—
C Junior class notes	3.500	1.49	16
Series 2022-4
A Senior class notes	3.400	2.99	488
B Junior class notes	3.640	2.99	42
C Junior class notes	3.890	2.99	20
May 2022 total			966
August 2022
Series 2022-5
A-1a Senior fixed rate class notes	3.720	1.44	351
A-1b Senior floating rate class notes	Compounded SOFR + 0.620(1)	1.44	57
B Junior class notes	3.960	1.44	—
C Junior class notes	4.210	1.44	—
Series 2022-6
A Senior class notes	3.670	2.94	479
B Junior class notes	3.910	2.94	—
C Junior class notes	4.160	2.94	—
August 2022 total			887
Total			$	3,553

(1) Compounded Secured Overnight Financing Rate (SOFR) is calculated using SOFR as published by the Federal Reserve Bank of New York in accordance with the terms of such notes. Compounded SOFR for the interest period ending in September 2022 was 2.285%.

Schedule of Assets and Liabilities Related to Asset-backed Debt Arrangements

The assets and liabilities related to our asset-backed debt arrangements included in our condensed consolidated balance sheets were as follows:

	At September 30,		At December 31,
(dollars in millions)	2022		2021
Assets
Accounts receivable, net	$	11,312	$	10,705
Prepaid expenses and other	1,357		1,094
Other assets	8,359		5,455
Liabilities
Accounts payable and accrued liabilities	8		10
Debt maturing within one year	6,587		5,024
Long-term debt	9,923		9,178

Schedule of Line of Credit Facilities

Long-Term Credit Facilities

				At September 30, 2022
(dollars in millions)	Maturities	Facility Capacity		Unused Capacity		Principal Amount Outstanding
Verizon revolving credit facility (1)	2026	$	9,500	$	9,434	N/A
Various export credit facilities (2)	2024 - 2031	11,000		1,000		$	7,000
Total		$	20,500	$	10,434	$	7,000

N/A - not applicable

(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) During the nine months ended September 30, 2022 and 2021, we drew down $3.0 billion and $470 million, respectively, from these facilities. 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. Any amounts borrowed under these facilities and subsequently repaid cannot be reborrowed.

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Device Payment Plan and Wireless Service Receivables (Tables)

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

Schedule of Receivables, Net

The following table presents information about accounts receivable, net of allowances, recorded in our condensed consolidated balance sheets:

	At September 30, 2022
(dollars in millions)	Device payment plan agreement		Wireless service		Other receivables(1)		Total
Accounts receivable	$	13,281	$	5,141	$	6,053	$	24,475
Less Allowance for credit losses	455		114		236		805
Accounts receivable, net of allowance	$	12,826	$	5,027	$	5,817	$	23,670

(1) Other receivables primarily include wireline receivables and other receivables, the allowances for which are individually insignificant.

The following table displays device payment plan agreement receivables, net, recognized in our condensed consolidated balance sheets:

	At September 30,		At December 31,
(dollars in millions)	2022		2021
Device payment plan agreement receivables, gross	$	24,185	$	21,303
Unamortized imputed interest	(386)		(358)
Device payment plan agreement receivables, at amortized cost	23,799		20,945
Allowance (1)	(772)		(759)
Device payment plan agreement receivables, net	$	23,027	$	20,186
Classified in our condensed consolidated balance sheets:
Accounts receivable, net	$	12,826	$	12,783
Other assets	10,201		7,403
Device payment plan agreement receivables, net	$	23,027	$	20,186

(1) Includes allowance for both short-term and long-term device payment plan agreement receivables.

Financing Receivable Credit Quality Indicators

The following table presents device payment plan agreement receivables, at amortized cost, as of September 30, 2022, by credit quality indicator and year of origination:

	Year of Origination(1)
(dollars in millions)	2022		2021		Prior to 2021		Total
New customers	$	1,993	$	1,273	$	82	$	3,348
Existing customers	12,299		7,608		544		20,451
Total	$	14,292	$	8,881	$	626	$	23,799

(1) Includes accounts that have been suspended at a point in time.

Activity in Allowance for Credit Losses for Device Payment Plan Agreement Receivables

Activity in the allowance for credit losses by portfolio segment of receivables was as follows:

(dollars in millions)	Device Payment Plan Agreement Receivables(1)		Wireless Service Plan Receivables
Balance at January 1, 2022	$	759	$	130
Current period provision for expected credit losses	606		275
Write-offs charged against the allowance	(619)		(324)
Recoveries collected	26		33
Balance at September 30, 2022	$	772	$	114

(1) Includes allowance for both short-term and long-term device payment plan agreement receivables.

Balance and Aging of Device Payment Plan Agreement Receivables on Gross Basis

The balance and aging of the device payment plan agreement receivables, at amortized cost, were as follows:

	At September 30,
(dollars in millions)	2022
Unbilled	$	22,567
Billed:
Current	1,022
Past due	210
Device payment plan agreement receivables, at amortized cost	$	23,799

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Fair Value Measurements and Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of September 30, 2022:

(dollars in millions)	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Prepaid expenses and other:
Fixed income securities	$	—	$	32	$	—	$	32
Cross currency swaps	—		1		—		1
Interest rate caps	—		33		—		33
Other assets:
Fixed income securities	—		341		—		341
Cross currency swaps	—		53		—		53
Interest rate caps	—		11		—		11
Total	$	—	$	471	$	—	$	471
Liabilities:
Other current liabilities:
Interest rate swaps	$	—	$	704	$	—	$	704
Foreign exchange forwards	—		10		—		10
Cross currency swaps	—		346		—		346
Interest rate caps	—		32		—		32
Contingent consideration	—		—		313		313
Other liabilities:
Interest rate swaps	—		3,850		—		3,850
Cross currency swaps	—		5,190		—		5,190
Interest rate caps	—		10		—		10
Contingent consideration	—		—		114		114
Total	$	—	$	10,142	$	427	$	10,569

(1)Quoted prices in active markets for identical assets or liabilities.

(2)Observable inputs other than quoted prices in active markets for identical assets and liabilities.

(3)Unobservable pricing inputs in the market.

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2021:

(dollars in millions)	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Prepaid expenses and other:
Fixed income securities	$	—	$	18	$	—	$	18
Interest rate swaps	—		188		—		188
Cross currency swaps	—		9		—		9
Foreign exchange forwards	—		12		—		12
Other assets:
Fixed income securities	—		391		—		391
Interest rate swaps	—		285		—		285
Cross currency swaps	—		580		—		580
Interest rate caps	—		44		—		44
Total	$	—	$	1,527	$	—	$	1,527
Liabilities:
Other current liabilities:
Interest rate swaps	$	—	$	1	$	—	$	1
Forward starting interest rate swaps	—		302		—		302
Cross currency swaps	—		218		—		218
Contingent consideration	—		—		231		231
Other liabilities:
Interest rate swaps	—		665		—		665
Cross currency swaps	—		1,406		—		1,406
Interest rate caps	—		44		—		44
Contingent consideration	—		—		313		313
Total	$	—	$	2,636	$	544	$	3,180

(1)Quoted prices in active markets for identical assets or liabilities.

(2)Observable inputs other than quoted prices in active markets for identical assets and liabilities.

(3)Unobservable pricing inputs in the market.

Schedule of Fair Value of Short-Term and Long-Term Debt, Excluding Capital Leases

The fair value of our short-term and long-term debt, excluding finance leases, was as follows:

			Fair Value
(dollars in millions)	Carrying Amount		Level 1		Level 2		Level 3		Total
At December 31, 2021	$	149,543	$	106,599	$	62,606	$	—	$	169,205
At September 30, 2022	146,326		82,250		51,393		—		133,643

Notional Amounts of Outstanding Derivative Instruments

The following table sets forth the notional amounts of our outstanding derivative instruments:

	At September 30,		At December 31,
(dollars in millions)	2022		2021
Interest rate swaps	$	26,071	$	19,779
Cross currency swaps	32,502		32,502
Forward starting interest rate swaps	—		1,000
Foreign exchange forwards	940		932

Schedule Of Derivative Instruments Activity

The following tables summarize the activities of our designated derivatives:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions)	2022		2021		2022		2021
Interest Rate Swaps:
Notional value entered into	$	—	$	—	$	7,155	$	2,550
Notional value settled	—		851		863		3,540
Pre-tax gain recognized in Interest expense	2		—		2		1
Cross Currency Swaps:
Notional value entered into	—		—		—		6,214
Notional value settled	—		—		—		—
Pre-tax loss recognized in Other comprehensive loss (1)	N/A		(1,057)		(430)		(1,984)
Pre-tax loss on cross currency swaps recognized in Interest expense	(2,039)		N/A		(3,847)		N/A
Pre-tax gain on hedged debt recognized in Interest expense	2,039		N/A		3,847		N/A
Excluded components recognized in Other comprehensive loss	169		N/A		(171)		N/A
Initial value of the excluded component amortized into Interest expense	27		N/A		54		N/A
Forward Starting Interest Rate Swaps:
Notional value entered into	—		—		—		—
Notional value settled	—		—		1,000		1,000
Pre-tax gain recognized in Other comprehensive loss	—		—		196		279
Treasury Rate Locks:
Notional value entered into	—		—		—		4,650
Notional value settled	—		—		—		4,650
Pre-tax gain recognized in Other comprehensive loss	—		—		—		251

N/A - not applicable

(1) Represents amounts recorded under the cash flow hedge model. These instruments were re-designated as fair value hedges on March 31, 2022.

	Nine Months Ended
	September 30,
(dollars in millions)	2022		2021
Other, net Cash Flows from Operating Activities:
Cash received for settlement of interest rate swaps	$	40	$	110
Cash paid for settlement of forward starting interest rate swaps	(107)		(237)
Cash received for settlement of treasury rate locks	—		251

The following table summarizes the activity of our derivatives not designated in hedging relationships:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions)	2022		2021		2022		2021
Foreign Exchange Forwards:
Notional value entered into	$	2,642	$	2,745	$	8,144	$	9,970
Notional value settled	2,703		3,365		8,136		10,505
Pre-tax loss recognized in Other income (expense), net	(75)		(29)		(169)		(51)
Swaptions:
Notional value sold	—		1,000		1,000		1,000
Notional value settled	—		—		1,000		—
Pre-tax loss recognized in Interest expense	—		—		(33)		—

Schedule of Cumulative Basis Adjustments for Fair Value hedges

The following table displays the amounts recorded in Long-term debt in our condensed consolidated balance sheets related to cumulative basis adjustments for fair value hedges. The cumulative amounts exclude cumulative basis adjustments related to foreign exchange risk.

	At September 30,		At December 31,
(dollars in millions)	2022		2021
Carrying amount of hedged liabilities	$	21,836	$	20,027
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities	(4,432)		(113)
Cumulative amount of fair value hedging adjustment remaining for which hedge accounting has been discontinued	510		575

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Employee Benefits (Tables)

9 Months Ended

Sep. 30, 2022

Retirement Benefits [Abstract]

Benefit or (Income) Cost Related to Pension and Postretirement Health Care and Life Insurance

The following table summarizes the components of net periodic benefit cost (income) related to our pension and postretirement health care and life insurance plans:

	(dollars in millions)
	Pension				Health Care and Life
Three Months Ended September 30,	2022		2021		2022		2021
Service cost - Cost of services	$	52	$	59	$	20	$	24
Service cost - Selling, general and administrative expense	7		8		4		4
Service cost	$	59	$	67	$	24	$	28
Amortization of prior service cost (credit)	$	24	$	16	$	(106)	$	(223)
Expected return on plan assets	(274)		(309)		(6)		(6)
Interest cost	151		102		83		72
Remeasurement loss, net	645		144		—		—
Other components	$	546	$	(47)	$	(29)	$	(157)
Total	$	605	$	20	$	(5)	$	(129)

	(dollars in millions)
	Pension				Health Care and Life
Nine Months Ended September 30,	2022		2021		2022		2021
Service cost - Cost of services	$	168	$	186	$	60	$	71
Service cost - Selling, general and administrative expense	23		26		11		14
Service cost	$	191	$	212	$	71	$	85
Amortization of prior service cost (credit)	$	54	$	46	$	(419)	$	(670)
Expected return on plan assets	(865)		(927)		(20)		(17)
Interest cost	375		296		249		217
Remeasurement loss (gain), net	843		(1,170)		—		—
Other components	$	407	$	(1,755)	$	(190)	$	(470)
Total	$	598	$	(1,543)	$	(119)	$	(385)

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Equity and Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2022

Stockholders' Equity Note [Abstract]

Schedule of Changes in Components of Total 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,	2022			2021
	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		13,872			13,403
Other (1)		(405)			(1)
Balance at end of period		13,467			13,402
Retained Earnings
Balance at beginning of period		76,401			66,310
Net income attributable to Verizon		4,900			6,407
Dividends declared ($0.6525, $0.6400 per share)		(2,741)			(2,651)
Other		(15)			(4)
Balance at end of period		78,545			70,062
Accumulated Other Comprehensive Loss
Balance at beginning of period attributable to Verizon		(1,320)			(234)
Foreign currency translation adjustments		(120)			(146)
Unrealized gain (loss) on cash flow hedges		22			(174)
Unrealized gain on fair value hedges		105			—
Unrealized loss on marketable securities		(8)			—
Defined benefit pension and postretirement plans		(379)			(155)
Other comprehensive loss		(380)			(475)
Balance at end of period attributable to Verizon		(1,700)			(709)
Treasury Stock
Balance at beginning of period	(91,719)	(4,020)		(151,318)	(6,632)
Employee plans	103	5		48	2
Balance at end of period	(91,616)	(4,015)		(151,270)	(6,630)
Deferred Compensation-ESOPs and Other
Balance at beginning of period		654			408
Restricted stock equity grant		98			85
Amortization		(10)			(3)
Balance at end of period		742			490
Noncontrolling Interests
Balance at beginning of period		1,341			1,428
Total comprehensive income		124			147
Distributions and other (1)		(150)			(130)
Balance at end of period		1,315			1,445
Total Equity		$	88,783		$	78,489

(1) 2022 period includes adjustments related to the acquisition of additional interests in certain controlled wireless partnerships.

(dollars in millions, except per share amounts, and shares in thousands)
Nine months ended September 30,	2022			2021
	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		13,861			13,404
Other (1)		(394)			(2)
Balance at end of period		13,467			13,402
Retained Earnings
Balance at beginning of period		71,993			60,464
Net income attributable to Verizon		14,679			17,452
Dividends declared ($1.9325, $1.8950 per share)		(8,120)			(7,850)
Other		(7)			(4)
Balance at end of period		78,545			70,062
Accumulated Other Comprehensive Loss
Balance at beginning of period attributable to Verizon		(927)			(71)
Foreign currency translation adjustments		(285)			(126)
Unrealized gain (loss) on cash flow hedges		301			(42)
Unrealized loss on fair value hedges		(167)			—
Unrealized loss on marketable securities		(32)			(5)
Defined benefit pension and postretirement plans		(590)			(465)
Other comprehensive loss		(773)			(638)
Balance at end of period attributable to Verizon		(1,700)			(709)
Treasury Stock
Balance at beginning of period	(93,635)	(4,104)		(153,304)	(6,719)
Employee plans	2,016	89		2,031	89
Shareholder plans	3	—		3	—
Balance at end of period	(91,616)	(4,015)		(151,270)	(6,630)
Deferred Compensation-ESOPs and Other
Balance at beginning of period		538			335
Restricted stock equity grant		368			315
Amortization		(164)			(160)
Balance at end of period		742			490
Noncontrolling Interests
Balance at beginning of period		1,410			1,430
Total comprehensive income		371			429
Distributions and other (1)		(466)			(414)
Balance at end of period		1,315			1,445
Total Equity		$	88,783		$	78,489

(1) 2022 period includes adjustments related to the acquisition of additional interests in certain controlled wireless partnerships.

Schedule of Components in Accumulated Other Comprehensive Income

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

(dollars in millions)	Foreign  currency translation adjustments		Unrealized gain (loss) on cash flow hedges		Unrealized loss on fair value hedges		Unrealized gain (loss) on marketable securities		Defined benefit pension and postretirement plans		Total
Balance at January 1, 2022	$	(545)	$	(1,472)	$	—	$	16	$	1,074	$	(927)
Excluded components recognized in other comprehensive income	—		—		(127)		—		—		(127)
Other comprehensive loss	(285)		(174)		—		(32)		(317)		(808)
Amounts reclassified to net income	—		475		(40)		—		(273)		162
Net other comprehensive income (loss)	(285)		301		(167)		(32)		(590)		(773)
Balance at September 30, 2022	$	(830)	$	(1,171)	$	(167)	$	(16)	$	484	$	(1,700)

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Schedule of Segment Operating Information

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, TracFone brands 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.

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions)	2022		2021		2022		2021
External Operating Revenues
Consumer
Service	$	18,421	$	16,889	$	54,696	$	50,159
Wireless equipment	5,558		4,530		16,640		13,461
Other(1)	1,809		1,852		5,247		5,807
Total Consumer	25,788		23,271		76,583		69,427
Business
Small and Medium Business	3,191		2,929		9,315		8,644
Global Enterprise	2,449		2,551		7,310		7,690
Public Sector and Other	1,531		1,548		4,587		4,807
Wholesale	656		645		1,926		2,038
Total Business	7,827		7,673		23,138		23,179
Total reportable segments	$	33,615	$	30,944	$	99,721	$	92,606
Intersegment Revenues
Consumer	$	52	$	57	$	153	$	176
Business	10		16		34		53
Total reportable segments	$	62	$	73	$	187	$	229
Total Operating Revenues
Consumer	$	25,840	$	23,328	$	76,736	$	69,603
Business(2)	7,837		7,689		23,172		23,232
Total reportable segments	$	33,677	$	31,017	$	99,908	$	92,835
Operating Income
Consumer	$	7,349	$	7,590	$	21,818	$	22,606
Business	698		886		2,046		2,641
Total reportable segments	$	8,047	$	8,476	$	23,864	$	25,247

(1) Other revenue includes fees that partially recover the direct and indirect costs of complying with regulatory and industry obligations and programs, revenues associated with certain products included in our device protection offerings, leasing and interest on equipment financed under a device payment plan agreement when sold to the customer by an authorized agent.

(2) Service and other revenues included in our Business segment amounted to $6.8 billion and $6.9 billion for the three months ended September 30, 2022 and 2021, respectively, and $20.2 billion and $20.9 billion for the nine months ended September 30, 2022 and 2021, respectively. Wireless equipment revenues included in our Business segment amounted to $1.0 billion and $820 million for the three months ended September 30, 2022 and 2021, respectively, and $2.9 billion and $2.4 billion for the nine months ended September 30, 2022 and 2021, respectively.

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions)	2022		2021		2022		2021
Consumer	$	2,902	$	2,893	$	8,708	$	8,648
Business	304		287		897		844
Total Fios revenue	$	3,206	$	3,180	$	9,605	$	9,492

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions)	2022		2021		2022		2021
Consumer	$	15,517	$	13,982	$	45,970	$	41,460
Business	3,273		3,097		9,580		9,247
Total Wireless service revenue	$	18,790	$	17,079	$	55,550	$	50,707

Summary of Reconciliation of Segment Operating Revenues

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions)	2022		2021		2022		2021
Total reportable segment operating revenues	$	33,677	$	31,017	$	99,908	$	92,835
Corporate and other	627		2,009		1,868		7,093
Eliminations	(63)		(111)		(192)		(382)
Total consolidated operating revenues	$	34,241	$	32,915	$	101,584	$	99,546

Summary of Reconciliation of Segment Operating Income

A reconciliation of the total reportable segment's operating income to consolidated income before provision for income taxes is as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions)	2022		2021		2022		2021
Total reportable segment operating income	$	8,047	$	8,476	$	23,864	$	25,247
Corporate and other	(85)		621		(299)		392
Other components of net periodic benefit charges (Note 8)	(68)		(192)		(323)		(576)
Loss on spectrum licenses (Note 3)	—		—		—		(223)
Total consolidated operating income	7,894		8,905		23,242		24,840
Equity in earnings of unconsolidated businesses	2		1		40		10
Other income (expense), net	(439)		269		(1,314)		1,172
Interest expense	(937)		(801)		(2,508)		(2,746)
Income Before Provision For Income Taxes	$	6,520	$	8,374	$	19,460	$	23,276

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Basis of Presentation - Earnings Per Common Share (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Dilutive securities (in shares)	1.6	1.6	1.5	1.7

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Basis of Presentation - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 2,082		$ 2,921
Cash, cash equivalents and restricted cash	3,587	$ 11,111	4,161	$ 23,498
Increase/(Decrease) in cash, cash equivalents, restricted cash and assets held for sale	(574)	$ (12,387)
Cash and cash equivalents
Cash and Cash Equivalents [Line Items]
Increase/(Decrease) in cash, cash equivalents, restricted cash and assets held for sale	(839)
Prepaid expenses and other
Cash and Cash Equivalents [Line Items]
Restricted cash	1,355		1,094
Increase/(Decrease) in cash, cash equivalents, restricted cash and assets held for sale	261
Other assets
Cash and Cash Equivalents [Line Items]
Restricted cash	150		$ 146
Increase/(Decrease) in cash, cash equivalents, restricted cash and assets held for sale	$ 4

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Revenues and Contract Costs - Additional Information (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) segment	Sep. 30, 2021 USD ($)
Disaggregation of Revenue [Line Items]
Number of reportable segments | segment			2
Revenue from arrangements not accounted for under Topic 606	$ 774,000,000	$ 803,000,000	$ 2,400,000,000	$ 2,300,000,000
Amortization of deferred contract costs	735,000,000	751,000,000	2,200,000,000	2,300,000,000
Contract assets impairment charge	$ 0	$ 0	$ 0	$ 0
Wireless postpaid contracts
Disaggregation of Revenue [Line Items]
Percentage of month-to-month contracts of total service contracts	94.00%	93.00%	94.00%	93.00%
Wireline Consumer and Small and Medium Business contracts
Disaggregation of Revenue [Line Items]
Percentage of month-to-month contracts of total service contracts	90.00%	83.00%	90.00%	83.00%
Minimum
Disaggregation of Revenue [Line Items]
Deferred contract cost, amortization period	2 years		2 years
Minimum | Wireless Service, Option One
Disaggregation of Revenue [Line Items]
Customer contracts service term			1 month
Minimum | Wireless Service, Option Two
Disaggregation of Revenue [Line Items]
Customer contracts service term			1 month
Minimum | Consumer
Disaggregation of Revenue [Line Items]
Customer contracts service term			12 months
Minimum | Consumer | Reseller Arrangements
Disaggregation of Revenue [Line Items]
Customer contracts service term			2 years
Maximum
Disaggregation of Revenue [Line Items]
Deferred contract cost, amortization period	6 years		6 years
Maximum | Wireless Service, Option One
Disaggregation of Revenue [Line Items]
Customer contracts service term			36 months
Maximum | Wireless Service, Option Two
Disaggregation of Revenue [Line Items]
Customer contracts service term			24 months
Maximum | Consumer
Disaggregation of Revenue [Line Items]
Customer contracts service term			2 years
Maximum | Business
Disaggregation of Revenue [Line Items]
Customer contracts service term			12 months

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Revenues and Contract Costs - Revenue Performance Obligations (Details) $ in Billions	Sep. 30, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 5.9
Revenue, remaining performance obligation, expected timing of satisfaction, period	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 18.3
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 15.2
Revenue, remaining performance obligation, expected timing of satisfaction, period
Customer Contracts that Have Contract Minimum over Total Contract Term | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 1.8
Revenue, remaining performance obligation, expected timing of satisfaction, period	9 years

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Revenues and Contract Costs - Schedule of Receivables from Contracts with Customers (Details) - USD ($) $ in Millions	Sep. 30, 2022	Jan. 01, 2022	Sep. 30, 2021	Jan. 01, 2021
Revenue from Contract with Customer [Abstract]
Receivables	$ 10,556	$ 10,758	$ 10,088	$ 12,029
Device payment plan agreement receivables	$ 14,680	$ 12,888	$ 11,178	$ 10,358

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Revenues and Contract Costs - Contract with Customer, Asset and Liability (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Jan. 01, 2022	Dec. 31, 2021	Jan. 01, 2021
Revenue from Contract with Customer [Abstract]
Revenue recognized related to contract liabilities existing	$ (167)	$ (161)	$ (4,800)	$ (4,200)
Contract asset, current	692		692			$ 739
Contract asset, noncurrent	177		177			195
Contract asset	869	878	869	878	$ 934	934	$ 937
Contract liability, current	6,475		6,475			6,053
Contract liability, noncurrent	1,479		1,479			1,176
Contract liability	$ 7,954	$ 6,034	$ 7,954	$ 6,034	$ 7,229	$ 7,229	$ 5,598

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Revenues and Contract Costs - Schedule of Cost Incurred to Obtain or Fulfill Contracts with Customers (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Capitalized Contract Cost [Line Items]
Cost incurred to obtain or fulfill contracts with customers, current	$ 2,572	$ 2,432
Cost incurred to obtain or fulfill contracts with customers, noncurrent	2,362	2,259
Cost incurred to obtain or fulfill contracts with customers	$ 4,934	$ 4,691

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Acquisitions and Divestitures - Acquisitions (Details) $ in Millions		1 Months Ended				3 Months Ended			9 Months Ended		12 Months Ended
	Nov. 23, 2021 USD ($) shares	Aug. 31, 2022 USD ($)	May 31, 2022 USD ($)	Mar. 31, 2021 USD ($) county customer	Feb. 28, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Business Acquisition [Line Items]
Payments for deposits									$ 2,890	$ 47,027
Loss on disposition of licenses, pre-tax						$ 0	$ 0		0	223
Business acquisition, purchase price in cash									(248)	459
Spectrum licenses | Spectrum Licenses, C-Band
Business Acquisition [Line Items]
Payments for deposits								$ 44,600			$ 45,500
Estimated clearing and incentive costs					$ 7,700
Costs incurred for license agreements acquired						115			279
Spectrum licenses | Spectrum Licenses, C-Band | Projected Clearing Costs
Business Acquisition [Line Items]
Payments for deposits						196			$ 1,600		1,300
Accrued clearing incentives and clearing costs											$ 1,400
Various Other Wireless Licenses | Spectrum licenses
Business Acquisition [Line Items]
Loss on disposition of licenses, pre-tax										223
Loss on disposition of licenses										$ 167
TracFone Wireless, Inc.
Business Acquisition [Line Items]
Business acquisition, purchase price in cash	$ 3,491
Number of shares issuable (in shares) | shares	57,596,544
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable	$ 2,981
Future cash consideration related to achievement of certain performance measures	650
Estimated fair value of the contingent consideration	$ 540
Contingent consideration, earn out period	2 years
Cash proceeds from acquisition			$ 248
Contingent consideration payment		$ 113				$ 113
Other intangible assets	$ 4,374
Contingent liability	837
Indemnification assets	837
Business acquisition consideration	7,014
TracFone Wireless, Inc. | Customer Relationships
Business Acquisition [Line Items]
Other intangible assets	2,300
TracFone Wireless, Inc. | Distribution Relationships
Business Acquisition [Line Items]
Other intangible assets	1,300
TracFone Wireless, Inc. | Trade Names
Business Acquisition [Line Items]
Other intangible assets	744
TracFone Wireless, Inc. | Acquired Technology
Business Acquisition [Line Items]
Other intangible assets	$ 110
Bluegrass Cellular, Certain Assets
Business Acquisition [Line Items]
Number of customers | customer				210,000
Number of counties customers are serviced | county				34
Business acquisition consideration				$ 412

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Acquisitions and Divestitures - TracFone Wireless, Inc. (Details) - USD ($) $ in Millions		9 Months Ended
	Nov. 23, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]
Cash, net of cash acquired and working capital and other adjustments		$ (248)	$ 459
Assets acquired:
Goodwill		28,548		$ 28,603
Measurement period adjustment, goodwill		$ (6)
TracFone Wireless, Inc.
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]
Cash, net of cash acquired and working capital and other adjustments	$ 3,491
Measurement period adjustment, cash, net of cash acquired	17
Fair value of Verizon common stock (57,596,544 shares)	2,981
Measurement period adjustment, fair value of Verizon common stock	0
Fair value of contingent consideration to be paid	542
Measurement period adjustment, fair value of contingent consideration to be paid	(2)
Total consideration	7,014
Measurement period adjustment, total consideration	15
Assets acquired:
Current assets	1,370
Measurement period adjustment, current assets	9
Property, plant and equipment, net	96
Measurement period adjustment, property, plant, ,and equipment	(10)
Goodwill	3,723
Measurement period adjustment, goodwill	(6)
Other intangible assets	4,374
Measurement period adjustment, other intangible assets	0
Other assets	731
Measurement period adjustment, other assets	107
Total assets acquired	10,294
Measurement period adjustment, total assets acquired	100
Liabilities assumed:
Current liabilities	1,433
Measurement period adjustment, current liabilities	67
Deferred income taxes	1,007
Measurement period adjustment, deferred income taxes	(48)
Other liabilities	840
Measurement period adjustment, other liabilities	66
Total liabilities assumed	3,280
Measurement period adjustment, total liabilities assumed	85
Net assets acquired	7,014
Measurement period adjustment, net assets acquired	$ 15
Number of shares issuable (in shares)	57,596,544
TracFone Wireless, Inc. | Adjusted Fair Value
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]
Cash, net of cash acquired and working capital and other adjustments	$ 3,508
Fair value of Verizon common stock (57,596,544 shares)	2,981
Fair value of contingent consideration to be paid	540
Total consideration	7,029
Assets acquired:
Current assets	1,379
Property, plant and equipment, net	86
Goodwill	3,717
Other intangible assets	4,374
Other assets	838
Total assets acquired	10,394
Liabilities assumed:
Current liabilities	1,500
Deferred income taxes	959
Other liabilities	906
Total liabilities assumed	3,365
Net assets acquired	$ 7,029

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Acquisitions and Divestitures - Verizon Media (Details) - Discontinued Operations, Disposed of by Sale - USD ($) $ in Millions			3 Months Ended	9 Months Ended
	Sep. 01, 2021	May 02, 2021	Sep. 30, 2021	Sep. 30, 2021	Sep. 30, 2022	Sep. 28, 2021
Media Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue from contract with customer			$ 1,400	$ 5,300
Media Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal costs			346	346
Media Business | Common Limited Partnership Units
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Ownership interest after disposal	10.00%
Media Business | Apollo Global Management Inc.
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash consideration	$ 4,300	$ 4,300
Pre-tax gain on sale			1,100	1,100
After-tax gain on sale			$ 1,100	$ 1,100
Administrative services support period	12 months
Technical services support period	18 months
Media Business | Apollo Global Management Inc. | Preferred Limited Partnership Units
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration, limited partnership units	$ 496	$ 750			$ 396
Limited partnership units redeemed						$ 100
Media Business | Apollo Global Management Inc. | Common Limited Partnership Units
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration, limited partnership units	$ 124
Ownership interest after disposal		10.00%

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Wireless Licenses, Goodwill and Other Intangible Assets - Carrying Amount of Wireless Licenses (Detail) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Wireless licenses	$ 149,292	$ 147,619

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Wireless Licenses, Goodwill and Other Intangible Assets - Additional Information (Detail) - Wireless Licenses - USD ($) $ in Billions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Indefinite-lived Intangible Assets [Line Items]
Wireless licenses under development	$ 45.4	$ 54.8
Interest costs capitalized	$ 1.3	$ 1.1
Average remaining renewal period of wireless license portfolio (in years)	15 years

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Wireless Licenses, Goodwill and Other Intangible Assets - Changes in Carrying Value of Goodwill (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 28,603
Acquisitions	(6)
Reclassifications, adjustments and other	(49)
Ending balance	28,548
Goodwill, impairment charge	16
Operating Segments | Consumer
Goodwill [Roll Forward]
Beginning balance	21,042
Acquisitions	(6)
Reclassifications, adjustments and other	0
Ending balance	21,036
Operating Segments | Business
Goodwill [Roll Forward]
Beginning balance	7,515
Acquisitions	0
Reclassifications, adjustments and other	(27)
Ending balance	7,488
Other
Goodwill [Roll Forward]
Beginning balance	46
Acquisitions	0
Reclassifications, adjustments and other	(22)
Ending balance	$ 24

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Wireless Licenses, Goodwill and Other Intangible Assets - Composition of Other Intangible Assets, Net (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Gross Amount	$ 29,825	$ 28,485
Accumulated Amortization	(18,629)	(16,808)
Net Amount	11,196	11,677
Customer Lists
Finite-Lived Intangible Assets [Line Items]
Gross Amount	4,185	4,201
Accumulated Amortization	(1,571)	(1,126)
Net Amount	$ 2,614	3,075
Customer Lists | Minimum
Finite-Lived Intangible Assets [Line Items]
Other intangible asset, useful life	5 years
Customer Lists | Maximum
Finite-Lived Intangible Assets [Line Items]
Other intangible asset, useful life	13 years
Non-Network Internal-Use Software
Finite-Lived Intangible Assets [Line Items]
Other intangible asset, useful life	7 years
Gross Amount	$ 22,644	21,310
Accumulated Amortization	(16,017)	(14,897)
Net Amount	6,627	6,413
Other
Finite-Lived Intangible Assets [Line Items]
Gross Amount	2,996	2,974
Accumulated Amortization	(1,041)	(785)
Net Amount	$ 1,955	$ 2,189
Other | Minimum
Finite-Lived Intangible Assets [Line Items]
Other intangible asset, useful life	4 years
Other | Maximum
Finite-Lived Intangible Assets [Line Items]
Other intangible asset, useful life	25 years

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Wireless Licenses, Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense for other intangible assets	$ 658	$ 430	$ 1,944	$ 1,539
Remainder of 2022	652		652
2023	2,468		2,468
2024	2,178		2,178
2025	1,993		1,993
2026	1,734		1,734
2027	$ 1,033		$ 1,033

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Debt - Schedule of Senior Unsecured Debt Securities (Details) - Debt Tender Offers - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Mar. 31, 2022	Sep. 30, 2022
Debt Instrument [Line Items]
Principal Amount Purchased	$ 5,032	$ 5,032
Cash consideration	5,587	$ 5,587
Verizon and subsidiary 2.987% - 8.950% notes and debentures, due 2032 - 2056
Debt Instrument [Line Items]
Principal Amount Purchased	5,032
Cash consideration	$ 5,587
Minimum | Verizon and subsidiary 2.987% - 8.950% notes and debentures, due 2032 - 2056
Debt Instrument [Line Items]
Stated interest rate on debt instrument	2.987%
Maximum | Verizon and subsidiary 2.987% - 8.950% notes and debentures, due 2032 - 2056
Debt Instrument [Line Items]
Stated interest rate on debt instrument	8.95%

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Debt - Repayments, Redemptions and Repurchases (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2022
Debt Instrument [Line Items]
Principal Repaid/ Repurchased	$ 1,816		$ 1,094	$ 1,816
Amount Paid	211	$ 415	$ 1,097	1,723
Floating Rate, LIBOR plus 1.000%
Debt Instrument [Line Items]
Basis spread on variable rate			1.00%
Principal Repaid/ Repurchased			$ 1,094
Amount Paid			$ 1,097
Operating Telephone Company Subsidiary 8.000% Debentures Due 2022 And Various Verizon Notes Of Open Market Repurchase
Debt Instrument [Line Items]
Principal Repaid/ Repurchased		$ 462
Subsidiary 8.000% debentures due 2022
Debt Instrument [Line Items]
Stated interest rate on debt instrument		8.00%
Principal Repaid/ Repurchased		$ 103
Amount Paid		108
Open market repurchases of various Verizon notes
Debt Instrument [Line Items]
Principal Repaid/ Repurchased	260	359		$ 260
Amount Paid	$ 211	$ 307

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Debt - Debt Issuances (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Mar. 31, 2022	Sep. 30, 2022
Senior Notes
Debt Instrument [Line Items]
Principal Amount Issued	$ 1,655	$ 1,655
Net Proceeds	$ 1,632	$ 1,632
Verizon 3.875% notes due 2052
Debt Instrument [Line Items]
Stated interest rate on debt instrument	3.875%
Verizon 3.875% notes due 2052 | Senior Notes
Debt Instrument [Line Items]
Principal Amount Issued	$ 1,000
Net Proceeds	$ 982
Verizon 4.100% notes due 2055
Debt Instrument [Line Items]
Stated interest rate on debt instrument	4.10%
Verizon 4.100% notes due 2055 | Senior Notes
Debt Instrument [Line Items]
Principal Amount Issued	$ 655
Net Proceeds	$ 650

XML

Debt - Short-Term Borrowings and Commercial Paper Program (Details) - USD ($)	1 Months Ended	9 Months Ended
	Mar. 31, 2022	Sep. 30, 2022
Short-term Debt [Line Items]
Facility Capacity		$ 20,500,000,000
Principal Amount Outstanding		7,000,000,000
Line of Credit
Short-term Debt [Line Items]
Facility Capacity	$ 1,000,000,000
Amount drawn from credit facilities	$ 1,000,000,000
Principal Amount Outstanding		1,000,000,000
Commercial Paper
Short-term Debt [Line Items]
Commercial paper issued		26,500,000,000
Repayments of short-term debt		21,900,000,000
Commercial paper		$ 4,600,000,000

XML

Debt - Asset-Backed Debt Narrative (Detail) $ in Millions	1 Months Ended						3 Months Ended			9 Months Ended
	Oct. 25, 2022 USD ($)	Jun. 30, 2022 USD ($)	May 31, 2022 USD ($)	Mar. 31, 2022 USD ($)	Jan. 31, 2022 USD ($)	Dec. 31, 2021 agreement	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)
Debt Instrument [Line Items]
Repayments of debt							$ 211	$ 415	$ 1,097	$ 1,723
Asset-Backed Debt
Debt Instrument [Line Items]
Secured debt, carrying value							16,500			16,500
2021 ABS Financing Facility
Debt Instrument [Line Items]
Repayments of debt			$ 130		$ 515
Number of loan agreements | agreement						2
Amount drawn from credit facilities		$ 545		$ 1,900
Debt outstanding							$ 6,100			6,100
Secured Debt | Asset Backed Notes
Debt Instrument [Line Items]
Repayments of debt										$ 3,000
Secured Debt | Asset Backed Notes | Subsequent Event
Debt Instrument [Line Items]
Repayments of debt	$ 129
Secured Debt | Asset Backed Notes | Minimum
Debt Instrument [Line Items]
Revolving period										18 months
Secured Debt | Asset Backed Notes | Median
Debt Instrument [Line Items]
Revolving period										2 years
Secured Debt | Asset Backed Notes | Maximum
Debt Instrument [Line Items]
Revolving period										3 years
Secured Debt | 2022 ABS Financing Facility | Subsequent Event
Debt Instrument [Line Items]
Revolving period	18 months
Amount drawn from credit facilities	$ 2,000

XML

Debt - Schedule of ABS Notes Transactions (Details) - USD ($) $ in Millions	1 Months Ended
	Sep. 30, 2022	Aug. 31, 2022	May 31, 2022	Jan. 31, 2022
Asset Backed Notes
Debt Instrument [Line Items]
Principal Amount Issued	$ 3,553	$ 887	$ 966	$ 1,700
January 2021 ABS Notes | A Senior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument				1.04%
Expected Weighted-average Life to Maturity (in years)				1 year 5 months 26 days
Principal Amount Issued				$ 799
January 2021 ABS Notes | B Junior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument				1.27%
Expected Weighted-average Life to Maturity (in years)				1 year 5 months 26 days
Principal Amount Issued				$ 64
January 2021 ABS Notes | C Junior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument				1.39%
Expected Weighted-average Life to Maturity (in years)				1 year 5 months 26 days
Principal Amount Issued				$ 37
January 2021 ABS Notes | A Senior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument				1.53%
Expected Weighted-average Life to Maturity (in years)				2 years 11 months 26 days
Principal Amount Issued				$ 710
January 2021 ABS Notes | B Junior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument				1.83%
Expected Weighted-average Life to Maturity (in years)				2 years 11 months 26 days
Principal Amount Issued				$ 57
January 2021 ABS Notes | C Junior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument				2.01%
Expected Weighted-average Life to Maturity (in years)				2 years 11 months 26 days
Principal Amount Issued				$ 33
May 2022 ABS Notes | A Senior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument			3.01%
Expected Weighted-average Life to Maturity (in years)			1 year 5 months 26 days
Principal Amount Issued			$ 400
May 2022 ABS Notes | B Junior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument			3.25%
Expected Weighted-average Life to Maturity (in years)			1 year 5 months 26 days
Principal Amount Issued			$ 0
May 2022 ABS Notes | C Junior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument			3.50%
Expected Weighted-average Life to Maturity (in years)			1 year 5 months 26 days
Principal Amount Issued			$ 16
May 2022 ABS Notes | A Senior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument			3.40%
Expected Weighted-average Life to Maturity (in years)			2 years 11 months 26 days
Principal Amount Issued			$ 488
May 2022 ABS Notes | B Junior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument			3.64%
Expected Weighted-average Life to Maturity (in years)			2 years 11 months 26 days
Principal Amount Issued			$ 42
May 2022 ABS Notes | C Junior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument			3.89%
Expected Weighted-average Life to Maturity (in years)			2 years 11 months 26 days
Principal Amount Issued			$ 20
August 2022 ABS Notes | A-1a Senior fixed rate class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument		3.72%
Expected Weighted-average Life to Maturity (in years)		1 year 5 months 8 days
Principal Amount Issued		$ 351
August 2022 ABS Notes | A-1b Senior floating rate class notes
Debt Instrument [Line Items]
Expected Weighted-average Life to Maturity (in years)		1 year 5 months 8 days
Principal Amount Issued		$ 57
August 2022 ABS Notes | A-1b Senior floating rate class notes | Secured Overnight Financial Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate	2.285%	0.62%
August 2022 ABS Notes | B Junior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument		3.96%
Expected Weighted-average Life to Maturity (in years)		1 year 5 months 8 days
Principal Amount Issued		$ 0
August 2022 ABS Notes | C Junior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument		4.21%
Expected Weighted-average Life to Maturity (in years)		1 year 5 months 8 days
Principal Amount Issued		$ 0
August 2022 ABS Notes | A Senior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument		3.67%
Expected Weighted-average Life to Maturity (in years)		2 years 11 months 8 days
Principal Amount Issued		$ 479
August 2022 ABS Notes | B Junior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument		3.91%
Expected Weighted-average Life to Maturity (in years)		2 years 11 months 8 days
Principal Amount Issued		$ 0
August 2022 ABS Notes | C Junior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument		4.16%
Expected Weighted-average Life to Maturity (in years)		2 years 11 months 8 days
Principal Amount Issued		$ 0

XML

Debt - Assets and Liabilities Related to Asset-backed Debt Arrangements (Detail) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Prepaid expenses and other	$ 10,861	$ 6,906
Other assets	15,633	13,329
Accounts payable and accrued liabilities	22,235	24,833
Debt maturing within one year	14,995	7,443
Long-term debt	132,912	143,425
Variable Interest Entity, Primary Beneficiary
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Accounts receivable, net	11,312	10,705
Prepaid expenses and other	1,357	1,094
Other assets	8,359	5,455
Accounts payable and accrued liabilities	8	10
Debt maturing within one year	6,587	5,024
Long-term debt	$ 9,923	$ 9,178

XML

Debt - Credit Facilities, Non-Cash Transaction, Guarantees (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Debt Instrument [Line Items]
Facility Capacity	$ 20,500,000,000		$ 20,500,000,000
Unused Capacity	10,434,000,000		10,434,000,000
Principal Amount Outstanding	7,000,000,000		7,000,000,000
Debt extinguishment gains (losses)	50,000,000	$ 0	(1,100,000,000)	$ (1,100,000,000)
Guarantee of Debentures of Operating Telephone Company Subsidiaries
Debt Instrument [Line Items]
Principal amount outstanding in connection with the guarantee of debt obligations	614,000,000		614,000,000
Network Equipment | Alternative Financing Facility
Debt Instrument [Line Items]
Value of purchase assets financed			583,000,000	337,000,000
Long-term debt maturing within one year	1,600,000,000		1,600,000,000		$ 1,300,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Facility Capacity	9,500,000,000		9,500,000,000
Unused Capacity	9,434,000,000		9,434,000,000
Equipment Credit Facilities
Debt Instrument [Line Items]
Facility Capacity	11,000,000,000		11,000,000,000
Unused Capacity	1,000,000,000		1,000,000,000
Principal Amount Outstanding	$ 7,000,000,000		7,000,000,000
Amount drawn from credit facilities			$ 3,000,000,000	$ 470,000,000

XML

Device Payment Plan Agreement and Wireless Service Receivables - Schedule of Receivables (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, after Allowance for Credit Loss, Current [Abstract]
Accounts receivable, net	$ 12,826	$ 12,783
Accounts and Financing Receivable, after Allowance for Credit Loss, Current [Abstract]
Accounts receivable	24,475	24,742
Less Allowance for credit losses	805	896
Accounts receivable, net of allowance	23,670	$ 23,846
Device payment plan agreement
Financing Receivable, after Allowance for Credit Loss, Current [Abstract]
Accounts receivable	13,281
Less Allowance for credit losses	455
Accounts receivable, net	12,826
Wireless Service Plan Receivables
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract]
Accounts receivable	5,141
Less Allowance for credit losses	114
Accounts receivable, net	5,027
Other receivables
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract]
Accounts receivable	6,053
Less Allowance for credit losses	236
Accounts receivable, net	$ 5,817

XML

Device Payment Plan Agreement and Wireless Service Receivables - Schedule of Device Payment Plan Agreement Receivables (Detail) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Receivables [Abstract]
Device payment plan agreement receivables, gross	$ 24,185	$ 21,303
Unamortized imputed interest	(386)	(358)
Device payment plan agreement receivables, at amortized cost	23,799	20,945
Allowance	(772)	(759)
Device payment plan agreement receivables, net	23,027	20,186
Accounts receivable, net	12,826	12,783
Other assets	$ 10,201	$ 7,403

XML

Device Payment Plan Agreement and Wireless Service Receivables - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Jan. 01, 2022	Dec. 31, 2021	Sep. 30, 2021	Jan. 01, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables transferred to ABS Entities	$ 23,027		$ 20,186
Guarantee liability	61		77
Device payment plan agreement, trade-in liability	7,954	$ 7,229	7,229	$ 6,034	$ 5,598
Asset Pledged as Collateral without Right
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables transferred to ABS Entities	19,500		16,000
Wireless Service Plan Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables originating in 2022	5,100
Receivables originating in 2021	66
Product Trade-in
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement, trade-in liability	$ 460		$ 366
Verizon Business Group And Verizon Consumer Group
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum threshold period for new customers	210 days
Minimum threshold period for existing customers	210 days
Business | Minimum | Device payment plan agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Customer tenure period	12 months
Business | Maximum | Device payment plan agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Customer tenure period	12 months
Consumer | Minimum | Device payment plan agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Customer tenure period	45 days
Consumer | Maximum | Device payment plan agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Customer tenure period	45 days

XML

Device Payment Plan Agreement and Wireless Service Receivables - Schedule of Credit Quality Indicators (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Credit Quality Indicator [Line Items]
Device payment plan agreement receivables, at amortized cost	$ 24,185	$ 21,303
Device payment plan agreement
Financing Receivable, Credit Quality Indicator [Line Items]
2022	14,292
2021	8,881
Prior to 2021	626
Device payment plan agreement receivables, at amortized cost	23,799
New customers | Device payment plan agreement
Financing Receivable, Credit Quality Indicator [Line Items]
2022	1,993
2021	1,273
Prior to 2021	82
Device payment plan agreement receivables, at amortized cost	3,348
Existing customers | Device payment plan agreement
Financing Receivable, Credit Quality Indicator [Line Items]
2022	12,299
2021	7,608
Prior to 2021	544
Device payment plan agreement receivables, at amortized cost	$ 20,451

XML

Device Payment Plan Agreement and Wireless Service Receivables - Allowance for Credit Losses (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 759
Ending balance	772
Device payment plan agreement
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	759
Current period provision for expected credit losses	606
Write-offs charged against the allowance	(619)
Recoveries collected	26
Ending balance	772
Wireless Service Plan Receivables
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	130
Current period provision for expected credit losses	275
Write-offs charged against the allowance	(324)
Recoveries collected	33
Ending balance	$ 114

XML

Device Payment Plan Agreement and Wireless Service Receivables - Balance and Aging of Receivables (Detail) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement receivables, gross	$ 24,185	$ 21,303
Device payment plan agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement receivables, gross	23,799
Unbilled | Current | Device payment plan agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement receivables, gross	22,567
Billed | Current | Device payment plan agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement receivables, gross	1,022
Billed | Past due | Device payment plan agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement receivables, gross	$ 210

XML

Fair Value Measurements and Financial Instruments - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Assets:
Total	$ 471	$ 1,527
Liabilities:
Total	10,569	3,180
Fixed income securities | Prepaid expenses and other
Assets:
Fixed income securities	32	18
Fixed income securities | Other assets
Assets:
Fixed income securities	341	391
Interest rate swaps | Prepaid expenses and other
Assets:
Derivative asset		188
Interest rate swaps | Other assets
Assets:
Derivative asset		285
Interest rate swaps | Other current liabilities
Liabilities:
Derivative liabilities	704	1
Interest rate swaps | Other liabilities
Liabilities:
Derivative liabilities	3,850	665
Forward starting interest rate swaps
Liabilities:
Derivative liabilities		302
Cross currency swaps | Prepaid expenses and other
Assets:
Derivative asset	1	9
Cross currency swaps | Other assets
Assets:
Derivative asset	53	580
Cross currency swaps | Other current liabilities
Liabilities:
Derivative liabilities	346	218
Cross currency swaps | Other liabilities
Liabilities:
Derivative liabilities	5,190	1,406
Interest rate caps
Assets:
Derivative asset		44
Liabilities:
Derivative liabilities		44
Interest rate caps | Prepaid expenses and other
Assets:
Derivative asset	33
Interest rate caps | Other assets
Assets:
Derivative asset	11
Interest rate caps | Other current liabilities
Liabilities:
Derivative liabilities	32
Interest rate caps | Other liabilities
Liabilities:
Derivative liabilities	10
Foreign exchange forwards
Assets:
Derivative asset		12
Liabilities:
Derivative liabilities	10
Contingent consideration | Other current liabilities
Liabilities:
Derivative liabilities	313	231
Contingent consideration | Other liabilities
Liabilities:
Derivative liabilities	114	313
Level 1
Assets:
Total	0	0
Liabilities:
Total	0	0
Level 1 | Fixed income securities | Prepaid expenses and other
Assets:
Fixed income securities	0	0
Level 1 | Fixed income securities | Other assets
Assets:
Fixed income securities	0	0
Level 1 | Interest rate swaps | Prepaid expenses and other
Assets:
Derivative asset		0
Level 1 | Interest rate swaps | Other assets
Assets:
Derivative asset		0
Level 1 | Interest rate swaps | Other current liabilities
Liabilities:
Derivative liabilities	0	0
Level 1 | Interest rate swaps | Other liabilities
Liabilities:
Derivative liabilities	0	0
Level 1 | Forward starting interest rate swaps
Liabilities:
Derivative liabilities		0
Level 1 | Cross currency swaps | Prepaid expenses and other
Assets:
Derivative asset	0	0
Level 1 | Cross currency swaps | Other assets
Assets:
Derivative asset	0	0
Level 1 | Cross currency swaps | Other current liabilities
Liabilities:
Derivative liabilities	0	0
Level 1 | Cross currency swaps | Other liabilities
Liabilities:
Derivative liabilities	0	0
Level 1 | Interest rate caps
Assets:
Derivative asset		0
Liabilities:
Derivative liabilities		0
Level 1 | Interest rate caps | Prepaid expenses and other
Assets:
Derivative asset	0
Level 1 | Interest rate caps | Other assets
Assets:
Derivative asset	0
Level 1 | Interest rate caps | Other current liabilities
Liabilities:
Derivative liabilities	0
Level 1 | Interest rate caps | Other liabilities
Liabilities:
Derivative liabilities	0
Level 1 | Foreign exchange forwards
Assets:
Derivative asset		0
Liabilities:
Derivative liabilities	0
Level 1 | Contingent consideration | Other current liabilities
Liabilities:
Derivative liabilities	0	0
Level 1 | Contingent consideration | Other liabilities
Liabilities:
Derivative liabilities	0	0
Level 2
Assets:
Total	471	1,527
Liabilities:
Total	10,142	2,636
Level 2 | Fixed income securities | Prepaid expenses and other
Assets:
Fixed income securities	32	18
Level 2 | Fixed income securities | Other assets
Assets:
Fixed income securities	341	391
Level 2 | Interest rate swaps | Prepaid expenses and other
Assets:
Derivative asset		188
Level 2 | Interest rate swaps | Other assets
Assets:
Derivative asset		285
Level 2 | Interest rate swaps | Other current liabilities
Liabilities:
Derivative liabilities	704	1
Level 2 | Interest rate swaps | Other liabilities
Liabilities:
Derivative liabilities	3,850	665
Level 2 | Forward starting interest rate swaps
Liabilities:
Derivative liabilities		302
Level 2 | Cross currency swaps | Prepaid expenses and other
Assets:
Derivative asset	1	9
Level 2 | Cross currency swaps | Other assets
Assets:
Derivative asset	53	580
Level 2 | Cross currency swaps | Other current liabilities
Liabilities:
Derivative liabilities	346	218
Level 2 | Cross currency swaps | Other liabilities
Liabilities:
Derivative liabilities	5,190	1,406
Level 2 | Interest rate caps
Assets:
Derivative asset		44
Liabilities:
Derivative liabilities		44
Level 2 | Interest rate caps | Prepaid expenses and other
Assets:
Derivative asset	33
Level 2 | Interest rate caps | Other assets
Assets:
Derivative asset	11
Level 2 | Interest rate caps | Other current liabilities
Liabilities:
Derivative liabilities	32
Level 2 | Interest rate caps | Other liabilities
Liabilities:
Derivative liabilities	10
Level 2 | Foreign exchange forwards
Assets:
Derivative asset		12
Liabilities:
Derivative liabilities	10
Level 2 | Contingent consideration | Other current liabilities
Liabilities:
Derivative liabilities	0	0
Level 2 | Contingent consideration | Other liabilities
Liabilities:
Derivative liabilities	0	0
Level 3
Assets:
Total	0	0
Liabilities:
Total	427	544
Level 3 | Fixed income securities | Prepaid expenses and other
Assets:
Fixed income securities	0	0
Level 3 | Fixed income securities | Other assets
Assets:
Fixed income securities	0	0
Level 3 | Interest rate swaps | Prepaid expenses and other
Assets:
Derivative asset		0
Level 3 | Interest rate swaps | Other assets
Assets:
Derivative asset		0
Level 3 | Interest rate swaps | Other current liabilities
Liabilities:
Derivative liabilities	0	0
Level 3 | Interest rate swaps | Other liabilities
Liabilities:
Derivative liabilities	0	0
Level 3 | Forward starting interest rate swaps
Liabilities:
Derivative liabilities		0
Level 3 | Cross currency swaps | Prepaid expenses and other
Assets:
Derivative asset	0	0
Level 3 | Cross currency swaps | Other assets
Assets:
Derivative asset	0	0
Level 3 | Cross currency swaps | Other current liabilities
Liabilities:
Derivative liabilities	0	0
Level 3 | Cross currency swaps | Other liabilities
Liabilities:
Derivative liabilities	0	0
Level 3 | Interest rate caps
Assets:
Derivative asset		0
Liabilities:
Derivative liabilities		0
Level 3 | Interest rate caps | Prepaid expenses and other
Assets:
Derivative asset	0
Level 3 | Interest rate caps | Other assets
Assets:
Derivative asset	0
Level 3 | Interest rate caps | Other current liabilities
Liabilities:
Derivative liabilities	0
Level 3 | Interest rate caps | Other liabilities
Liabilities:
Derivative liabilities	0
Level 3 | Foreign exchange forwards
Assets:
Derivative asset		0
Liabilities:
Derivative liabilities	0
Level 3 | Contingent consideration | Other current liabilities
Liabilities:
Derivative liabilities	313	231
Level 3 | Contingent consideration | Other liabilities
Liabilities:
Derivative liabilities	$ 114	$ 313

XML

Fair Value Measurements and Financial Instruments - Additional Information (Detail) € in Millions	1 Months Ended	3 Months Ended	9 Months Ended	12 Months Ended
	Aug. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 EUR (€)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2021 EUR (€)
Derivatives, Fair Value [Line Items]
Carrying amount of our investments without readily determinable fair values		$ 814,000,000	$ 814,000,000				$ 808,000,000
Cumulative adjustments due to observable price changes		157,000,000	157,000,000
Cumulative adjustments due to impairment charges		82,000,000	82,000,000
Initial value of the excluded component						$ 1,000,000,000
Exchange gains and losses from the conversion of foreign currency denominated as debt		0	0
Derivative liability fair value of collateral		4,900,000,000	4,900,000,000
Derivative asset fair value of collateral		0	0				100,000,000
Scenario, Forecast | Interest Expense
Derivatives, Fair Value [Line Items]
Excluded component estimated to be amortized into interest expense				$ 108,000,000
TracFone Wireless, Inc.
Derivatives, Fair Value [Line Items]
Contingent consideration payment	$ 113,000,000	113,000,000
Cross currency swaps
Derivatives, Fair Value [Line Items]
Net investment hedge		32,502,000,000	32,502,000,000				32,502,000,000
Interest rate swaps
Derivatives, Fair Value [Line Items]
Net investment hedge		26,071,000,000	26,071,000,000				19,779,000,000
Forward starting interest rate swaps
Derivatives, Fair Value [Line Items]
Net investment hedge		$ 0	$ 0				$ 1,000,000,000
Euro Denominated Debt | Net Investment Hedges
Derivatives, Fair Value [Line Items]
Net investment hedge | €					€ 750			€ 750

XML

Fair Value Measurements and Financial Instruments - Debt Excluding Capital Leases (Detail) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument fair value	$ 146,326	$ 149,543
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument fair value	133,643	169,205
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument fair value	82,250	106,599
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument fair value	51,393	62,606
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument fair value	$ 0	$ 0

XML

Fair Value Measurements and Financial Instruments - Notional Amounts of Outstanding Derivative Instruments (Detail) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Interest rate swaps
Derivative [Line Items]
Notional amount	$ 26,071	$ 19,779
Cross currency swaps
Derivative [Line Items]
Notional amount	32,502	32,502
Forward starting interest rate swaps
Derivative [Line Items]
Notional amount	0	1,000
Foreign exchange forwards
Derivative [Line Items]
Notional amount	$ 940	$ 932

XML

Fair Value Measurements and Financial Instruments - Schedule of Designated Derivative Activity (Details) - Designated as Hedging Instrument - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Interest rate swaps | Fair Value Hedges
Derivative [Line Items]
Notional value entered into	$ 0	$ 0	$ 7,155	$ 2,550
Notional value settled	0	851	863	3,540
Cash received (paid) for settlement of derivatives			40	110
Interest rate swaps | Fair Value Hedges | Interest Expense
Derivative [Line Items]
Pre-tax gain recognized in Interest expense	2	0	2	1
Cross currency swaps | Fair Value Hedges
Derivative [Line Items]
Notional value entered into	0
Notional value settled	0
Pre-tax loss on cross currency swaps recognized in Interest expense	(2,039)		(3,847)
Pre-tax gain on hedged debt recognized in Interest expense	2,039		3,847
Excluded component	169		(171)
Cross currency swaps | Fair Value Hedges | Interest Expense
Derivative [Line Items]
Excluded component	27		54
Cross currency swaps | Cash Flow Hedging
Derivative [Line Items]
Notional value entered into		0	0	6,214
Notional value settled		0	0	0
Pre-tax gain (loss) recognized in other comprehensive loss		(1,057)	(430)	(1,984)
Forward starting interest rate swaps | Cash Flow Hedging
Derivative [Line Items]
Notional value entered into	0	0	0	0
Notional value settled	0	0	1,000	1,000
Pre-tax gain (loss) recognized in other comprehensive loss	0	0	196	279
Cash received (paid) for settlement of derivatives			(107)	(237)
Treasury rate locks | Cash Flow Hedging
Derivative [Line Items]
Notional value entered into	0	0	0	4,650
Notional value settled	0	0	0	4,650
Pre-tax gain (loss) recognized in other comprehensive loss	$ 0	$ 0	0	251
Cash received (paid) for settlement of derivatives			$ 0	$ 251

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Fair Value Measurements and Financial Instruments - Schedule of Cumulative Basis Adjustments for Fair Value Hedges (Details) - Long-term Debt - Fair Value Hedges - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Derivatives, Fair Value [Line Items]
Carrying amount of hedged liabilities	$ 21,836	$ 20,027
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities	(4,432)	(113)
Cumulative amount of fair value hedging adjustment remaining for which hedge accounting has been discontinued	$ 510	$ 575

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Fair Value Measurements and Financial Instruments - Schedule of Derivatives Not Designated as Hedges (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Foreign exchange forwards
Derivative [Line Items]
Notional value entered into	$ 2,642	$ 2,745	$ 8,144	$ 9,970
Notional value settled	2,703	3,365	8,136	10,505
Pre-tax loss recognized	(75)	(29)	(169)	(51)
Swaptions
Derivative [Line Items]
Notional value settled	0	0	1,000	0
Pre-tax loss recognized	0	0	(33)	0
Notional value sold	$ 0	$ 1,000	$ 1,000	$ 1,000

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Employee Benefits - Costs by Plans (Detail) - USD ($) $ in Millions	3 Months Ended				9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2021	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Pension
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 59		$ 67		$ 191	$ 212
Amortization of prior service cost (credit)	24		16		54	46
Expected return on plan assets	(274)		(309)		(865)	(927)
Interest cost	151		102		375	296
Remeasurement loss, net	645	$ 198	144	$ (1,300)	843	(1,170)
Other components	546		(47)		407	(1,755)
Total	605		20		598	(1,543)
Pension | Cost of services
Defined Benefit Plan Disclosure [Line Items]
Service cost	52		59		168	186
Pension | Selling, general and administrative expense
Defined Benefit Plan Disclosure [Line Items]
Service cost	7		8		23	26
Health Care and Life
Defined Benefit Plan Disclosure [Line Items]
Service cost	24		28		71	85
Amortization of prior service cost (credit)	(106)		(223)		(419)	(670)
Expected return on plan assets	(6)		(6)		(20)	(17)
Interest cost	83		72		249	217
Remeasurement loss, net	0		0		0	0
Other components	(29)		(157)		(190)	(470)
Total	(5)		(129)		(119)	(385)
Health Care and Life | Cost of services
Defined Benefit Plan Disclosure [Line Items]
Service cost	20		24		60	71
Health Care and Life | Selling, general and administrative expense
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 4		$ 4		$ 11	$ 14

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Employee Benefits - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended				6 Months Ended	9 Months Ended
	Jul. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2021	Jun. 30, 2021	Jun. 30, 2022	Sep. 30, 2022	Sep. 30, 2021
Defined Benefit Plan Disclosure [Line Items]
Amount paid in severance benefits over the period							$ 155,000,000
Post employment benefits liability		$ 400,000,000					400,000,000
Collective bargaining agreement, extension period	3 years
Pension
Defined Benefit Plan Disclosure [Line Items]
Expected return on plan assets		7.25%				6.25%
Employer discretionary contribution amount		$ 0		$ 0			0	$ 0
Remeasurement gain (loss), net		(645,000,000)	$ (198,000,000)	(144,000,000)	$ 1,300,000,000		$ (843,000,000)	$ 1,170,000,000
Credit (charge) due to difference between estimated and actual return on assets		3,500,000,000	654,000,000	523,000,000	122,000,000
Credit due to change in discount rate assumption		2,900,000,000	$ 456,000,000	$ 667,000,000	$ 1,200,000,000
Increase in defined benefit pension plan obligations due to plan amendments		427,000,000
Decrease to Accumulated other comprehensive income		317,000,000
Defined benefit plan, adjustment due to amendments, tax		$ 110,000,000

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Equity and Accumulated Other Comprehensive Loss - Changes in Components of Total equity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Accumulated Other Comprehensive Loss [Line Items]
Dividends declared per common share (USD per share)	$ 0.6525	$ 0.6400	$ 1.9325	$ 1.8950
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			$ 83,200
Net income attributable to Verizon	$ 4,900	$ 6,407	14,679	$ 17,452
Foreign currency translation adjustments	(120)	(146)	(285)	(126)
Unrealized gain (loss) on cash flow hedges	22	(174)	301	(42)
Unrealized loss on fair value hedges	105	0	(167)	0
Unrealized loss on marketable securities	(8)	0	(32)	(5)
Defined benefit pension and postretirement plans	(379)	(155)	$ (590)	(465)
Shareholder plans (in shares)			2,000
Total comprehensive income	4,644	6,079	$ 14,277	17,243
Ending balance	$ 88,783	$ 78,489	$ 88,783	$ 78,489
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	4,291,434	4,291,434	4,291,434	4,291,434
Beginning balance	$ 429	$ 429	$ 429	$ 429
Ending balance (in shares)	4,291,434	4,291,434	4,291,434	4,291,434
Ending balance	$ 429	$ 429	$ 429	$ 429
Additional Paid In Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	13,872	13,403	13,861	13,404
Other	(405)	(1)	(394)	(2)
Ending balance	13,467	13,402	13,467	13,402
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	76,401	66,310	71,993	60,464
Net income attributable to Verizon	4,900	6,407	14,679	17,452
Dividends declared ($0.6525, $0.6400 per share)	(2,741)	(2,651)	(8,120)	(7,850)
Other	(15)	(4)	(7)	(4)
Ending balance	78,545	70,062	78,545	70,062
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(1,320)	(234)	(927)	(71)
Foreign currency translation adjustments	(120)	(146)	(285)	(126)
Unrealized gain (loss) on cash flow hedges	22	(174)	301	(42)
Unrealized loss on fair value hedges	105	0	(167)	0
Unrealized loss on marketable securities	(8)	0	(32)	(5)
Defined benefit pension and postretirement plans	(379)	(155)	(590)	(465)
Other comprehensive loss	(380)	(475)	(773)	(638)
Ending balance	$ (1,700)	$ (709)	$ (1,700)	$ (709)
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	91,719	151,318	93,635	153,304
Beginning balance	$ (4,020)	$ (6,632)	$ (4,104)	$ (6,719)
Employee plans (in shares)	103	48	2,016	2,031
Employee plans	$ 5	$ 2	$ 89	$ 89
Shareholder plans (in shares)			3	3
Shareholder plans			$ 0	$ 0
Ending balance (in shares)	91,616	151,270	91,616	151,270
Ending balance	$ (4,015)	$ (6,630)	$ (4,015)	$ (6,630)
Deferred Compensation-ESOPs and Other
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	654	408	538	335
Restricted stock equity grant	98	85	368	315
Amortization	(10)	(3)	(164)	(160)
Ending balance	742	490	742	490
Noncontrolling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	1,341	1,428	1,410	1,430
Total comprehensive income	124	147	371	429
Distributions and other	(150)	(130)	(466)	(414)
Ending balance	$ 1,315	$ 1,445	$ 1,315	$ 1,445

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Equity and Accumulated Other Comprehensive Loss - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Accumulated Other Comprehensive Loss [Line Items]
Stock repurchase program, remaining shares available for purchase (in shares)	100,000,000		100,000,000
Number of common shares issued from treasury stock (in shares)			2,000,000
Controlled Wireless Partnerships
Accumulated Other Comprehensive Loss [Line Items]
Payments to acquire noncontrolling interest	$ 458
Additional Paid In Capital | Controlled Wireless Partnerships
Accumulated Other Comprehensive Loss [Line Items]
Acquisition of additional interests in certain controlled wireless partnerships	406		$ 406
Noncontrolling Interests
Accumulated Other Comprehensive Loss [Line Items]
Acquisition of additional interests in certain controlled wireless partnerships	(150)	$ (130)	(466)	$ (414)
Noncontrolling Interests | Controlled Wireless Partnerships
Accumulated Other Comprehensive Loss [Line Items]
Acquisition of additional interests in certain controlled wireless partnerships	$ 52		$ 52

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Equity and Accumulated Other Comprehensive Loss - Changes in AOCI (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]
Beginning balance			$ 83,200
Ending balance	$ 88,783	$ 78,489	88,783	$ 78,489
Accumulated Other Comprehensive Loss
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]
Beginning balance	(1,320)	(234)	(927)	(71)
Other comprehensive loss			(808)
Amounts reclassified to net income			162
Other comprehensive loss	(380)	(475)	(773)	(638)
Ending balance	(1,700)	$ (709)	(1,700)	$ (709)
Foreign  currency translation adjustments
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]
Beginning balance			(545)
Other comprehensive loss			(285)
Other comprehensive loss			(285)
Ending balance	(830)		(830)
Unrealized gain (loss) on cash flow hedges
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]
Beginning balance			(1,472)
Other comprehensive loss			(174)
Amounts reclassified to net income			475
Other comprehensive loss			301
Ending balance	(1,171)		(1,171)
Unrealized gain (loss) from fair value hedges
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]
Beginning balance			0
Other comprehensive loss			(127)
Amounts reclassified to net income			(40)
Other comprehensive loss			(167)
Ending balance	(167)		(167)
Unrealized loss on marketable securities
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]
Beginning balance			16
Other comprehensive loss			(32)
Other comprehensive loss			(32)
Ending balance	(16)		(16)
Defined benefit pension and postretirement plans
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]
Beginning balance			1,074
Other comprehensive loss			(317)
Amounts reclassified to net income			(273)
Other comprehensive loss			(590)
Ending balance	$ 484		$ 484

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Segment Information - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2022 segment
Segment Reporting [Abstract]
Number of reportable segments	2

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Segment Information - Operating Financial Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information [Line Items]
Operating revenues	$ 34,241	$ 32,915	$ 101,584	$ 99,546
Operating Income	7,894	8,905	23,242	24,840
Wireless equipment
Segment Reporting Information [Line Items]
Operating revenues	6,575	5,350	19,585	15,837
Service revenues and other
Segment Reporting Information [Line Items]
Operating revenues	27,666	27,565	81,999	83,709
Fios revenues
Segment Reporting Information [Line Items]
Operating revenues	3,206	3,180	9,605	9,492
Wireless service
Segment Reporting Information [Line Items]
Operating revenues	18,790	17,079	55,550	50,707
Consumer | Fios revenues
Segment Reporting Information [Line Items]
Operating revenues	2,902	2,893	8,708	8,648
Consumer | Wireless service
Segment Reporting Information [Line Items]
Operating revenues	15,517	13,982	45,970	41,460
Business | Wireless equipment
Segment Reporting Information [Line Items]
Operating revenues	1,000	820	2,900	2,400
Business | Service revenues and other
Segment Reporting Information [Line Items]
Operating revenues	6,800	6,900	20,200	20,900
Business | Fios revenues
Segment Reporting Information [Line Items]
Operating revenues	304	287	897	844
Business | Wireless service
Segment Reporting Information [Line Items]
Operating revenues	3,273	3,097	9,580	9,247
Operating Segments Excluding Intersegment Elimination
Segment Reporting Information [Line Items]
Operating revenues	33,615	30,944	99,721	92,606
Operating Segments Excluding Intersegment Elimination | Consumer
Segment Reporting Information [Line Items]
Operating revenues	25,788	23,271	76,583	69,427
Operating Segments Excluding Intersegment Elimination | Consumer | Service
Segment Reporting Information [Line Items]
Operating revenues	18,421	16,889	54,696	50,159
Operating Segments Excluding Intersegment Elimination | Consumer | Wireless equipment
Segment Reporting Information [Line Items]
Operating revenues	5,558	4,530	16,640	13,461
Operating Segments Excluding Intersegment Elimination | Consumer | Other
Segment Reporting Information [Line Items]
Operating revenues	1,809	1,852	5,247	5,807
Operating Segments Excluding Intersegment Elimination | Business
Segment Reporting Information [Line Items]
Operating revenues	7,827	7,673	23,138	23,179
Operating Segments Excluding Intersegment Elimination | Business | Small and Medium Business
Segment Reporting Information [Line Items]
Operating revenues	3,191	2,929	9,315	8,644
Operating Segments Excluding Intersegment Elimination | Business | Global Enterprise
Segment Reporting Information [Line Items]
Operating revenues	2,449	2,551	7,310	7,690
Operating Segments Excluding Intersegment Elimination | Business | Public Sector and Other
Segment Reporting Information [Line Items]
Operating revenues	1,531	1,548	4,587	4,807
Operating Segments Excluding Intersegment Elimination | Business | Wholesale
Segment Reporting Information [Line Items]
Operating revenues	656	645	1,926	2,038
Intersegment Eliminations
Segment Reporting Information [Line Items]
Operating revenues	62	73	187	229
Intersegment Eliminations | Consumer
Segment Reporting Information [Line Items]
Operating revenues	52	57	153	176
Intersegment Eliminations | Business
Segment Reporting Information [Line Items]
Operating revenues	10	16	34	53
Operating Segments
Segment Reporting Information [Line Items]
Operating revenues	33,677	31,017	99,908	92,835
Operating Income	8,047	8,476	23,864	25,247
Operating Segments | Consumer
Segment Reporting Information [Line Items]
Operating revenues	25,840	23,328	76,736	69,603
Operating Income	7,349	7,590	21,818	22,606
Operating Segments | Business
Segment Reporting Information [Line Items]
Operating revenues	7,837	7,689	23,172	23,232
Operating Income	$ 698	$ 886	$ 2,046	$ 2,641

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Segment Information - Reconciliation of Operating Revenues (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating revenues	$ 34,241	$ 32,915	$ 101,584	$ 99,546
Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating revenues	33,677	31,017	99,908	92,835
Corporate and other
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating revenues	627	2,009	1,868	7,093
Eliminations
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating revenues	$ (63)	$ (111)	$ (192)	$ (382)

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Segment Information - Reconciliation of Segments Operating Income to Consolidated Income (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information [Line Items]
Operating income	$ 7,894	$ 8,905	$ 23,242	$ 24,840
Other components of net periodic benefit charges	(68)	(192)	(323)	(576)
Loss on spectrum licenses	0	0	0	(223)
Equity in earnings of unconsolidated businesses	2	1	40	10
Other income (expense), net	(439)	269	(1,314)	1,172
Interest expense	(937)	(801)	(2,508)	(2,746)
Income Before Provision For Income Taxes	6,520	8,374	19,460	23,276
Operating Segments
Segment Reporting Information [Line Items]
Operating income	8,047	8,476	23,864	25,247
Corporate and other
Segment Reporting Information [Line Items]
Operating income	$ (85)	$ 621	$ (299)	$ 392

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Commitments and Contingencies (Detail)	9 Months Ended
	Sep. 30, 2022 agreement legalMatter
Guarantor Obligations [Line Items]
Approximate number of federal district court actions alleged for patent infringement | legalMatter	20
Payment Guarantee
Guarantor Obligations [Line Items]
Number of renewable energy purchase agreements | agreement	2
Payment Guarantee | Minimum
Guarantor Obligations [Line Items]
Fixed price term	12 years
Payment Guarantee | Maximum
Guarantor Obligations [Line Items]
Fixed price term	15 years