Segment Information (Tables)

12 Months Ended

Dec. 31, 2022

Summary of Operating Financial Information for Reportable Segments

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 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 tables provides operating financial information for our two reportable segments:


	(dollars in millions)
2022	Consumer		Business		Total Reportable Segments
External Operating Revenues
Service	$	73,139	$	—	$	73,139
Wireless equipment	23,168		—		23,168
Other(1)	6,996		—		6,996
Small and Medium Business	—		12,595		12,595
Global Enterprise	—		9,733		9,733
Public Sector and Other	—		6,117		6,117
Wholesale	—		2,584		2,584
Intersegment revenues	203		43		246
Total Operating Revenues(2)	103,506		31,072		134,578

Cost of services	17,746		10,483		28,229
Cost of wireless equipment	25,134		5,362		30,496
Selling, general and administrative expense	19,064		8,284		27,348
Depreciation and amortization expense	12,716		4,312		17,028
Total Operating Expenses	74,660		28,441		103,101
Operating Income	$	28,846	$	2,631	$	31,477

(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 when equipment is sold to the customer by an authorized agent under a device payment plan agreement.

(2) Service and other revenues and Wireless equipment revenues included in our Business segment amounted to approximately $27.0 billion and $4.0 billion, respectively, for the year ended December 31, 2022.


	(dollars in millions)
2021	Consumer		Business		Total Reportable Segments
External Operating Revenues
Service	$	67,723	$	—	$	67,723
Wireless equipment	19,781		—		19,781
Other(1)	7,568		—		7,568
Small and Medium Business	—		11,751		11,751
Global Enterprise	—		10,218		10,218
Public Sector and Other	—		6,324		6,324
Wholesale	—		2,680		2,680
Intersegment revenues	228		69		297
Total Operating Revenues(2)	95,300		31,042		126,342

Cost of services	16,581		10,653		27,234
Cost of wireless equipment	20,523		4,544		25,067
Selling, general and administrative expense	16,562		8,324		24,886
Depreciation and amortization expense	11,679		4,084		15,763
Total Operating Expenses	65,345		27,605		92,950
Operating Income	$	29,955	$	3,437	$	33,392

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


	(dollars in millions)
2020	Consumer		Business		Total Reportable Segments
External Operating Revenues
Service	$	64,884	$	—	$	64,884
Wireless equipment	15,492		—		15,492
Other(1)	7,916		—		7,916
Small and Medium Business	—		11,112		11,112
Global Enterprise	—		10,405		10,405
Public Sector and Other	—		6,362		6,362
Wholesale	—		3,013		3,013
Intersegment revenues	241		70		311
Total Operating Revenues(2)	88,533		30,962		119,495

Cost of services	15,610		10,659		26,269
Cost of wireless equipment	15,736		4,064		19,800
Selling, general and administrative expense	16,936		8,380		25,316
Depreciation and amortization expense	11,395		4,086		15,481
Total Operating Expenses	59,677		27,189		86,866
Operating Income	$	28,856	$	3,773	$	32,629

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

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


	(dollars in millions)
Years Ended December 31,	2022		2021		2020
Consumer	$	11,622	$	11,558	$	11,082
Business	1,201		1,136		1,057
Total Fios revenue	$	12,823	$	12,694	$	12,139

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


	(dollars in millions)
Years Ended December 31,	2022		2021		2020
Consumer	$	61,509	$	56,103	$	53,605
Business	12,845		12,366		11,805
Total Wireless service revenue	$	74,354	$	68,469	$	65,410

Summary of Reconciliation of Segment Operating Revenues

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


	(dollars in millions)
Years Ended December 31,	2022		2021		2020
Operating Revenues
Total reportable segments	$	134,578	$	126,342	$	119,495
Corporate and other	2,510		7,722		9,334
Reconciling items:

Eliminations	(253)		(451)		(537)
Consolidated Operating Revenues	$	136,835	$	133,613	$	128,292

Summary of Reconciliation of Segment Operating Income

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


	(dollars in millions)
Years Ended December 31,	2022		2021		2020
Operating Income
Total reportable segments	$	31,477	$	33,392	$	32,629
Corporate and other	(319)		(449)		(1,472)
Reconciling items:
Severance charges	(304)		(209)		(221)
Other components of net periodic pension and benefit charges (Note 11)	(387)		(769)		(817)


Loss on spectrum licenses	—		(223)		(1,195)



Net gain (loss) from disposition of business	—		706		(126)
Consolidated operating income	30,467		32,448		28,798
Equity in earnings (losses) of unconsolidated businesses	44		145		(45)
Other income (expense), net	1,373		312		(539)
Interest expense	(3,613)		(3,485)		(4,247)
Income Before Provision For Income Taxes	$	28,271	$	29,420	$	23,967