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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 _____________________________________________________________________________
FORM 8-K
 
 ______________________________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: January 23, 2024
(Date of earliest event reported)
 ______________________________________________________________________________
Verizon Communications Inc.
(Exact name of registrant as specified in its charter)
 _______________________________________________________________________________  
Delaware 1-8606 23-2259884
(State or other jurisdiction
of incorporation)		 (Commission File Number) (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
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


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
4.250% Notes due 2030 VZ 30D 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
4.750% Notes due 2034 VZ 34C New York Stock Exchange
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 is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐ 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. ☐
Item 2.02. Results of Operations and Financial Condition
Attached as Exhibit 99.1 hereto are a press release and financial tables, dated January 23, 2024, issued by Verizon Communications Inc. (Verizon). Attached as Exhibit 99.2 hereto is commentary, dated January 23, 2024, discussing Verizon's financial and operating results for the fourth quarter and full year of 2023.
Non-GAAP Measures
Verizon’s press release, financial tables and commentary attached to the report include financial information prepared in conformity with generally accepted accounting principles in the United States (GAAP) as well as non-GAAP financial 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.
EBITDA and EBITDA Margin Related Non-GAAP Measures
Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA), Segment EBITDA and Segment EBITDA Margin are non-GAAP financial measures that we believe are useful to management, investors and other users of our financial information as they are widely accepted financial measures used in evaluating the profitability of a company and its operating performance in relation to its competitors.
Consolidated EBITDA is calculated by adding back interest, taxes and depreciation and amortization expense to net income.
Segment EBITDA is calculated by adding back segment depreciation and amortization expense to segment operating income. Segment EBITDA Margin is calculated by dividing Segment EBITDA by total segment operating revenues.
Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA Growth Forecast
Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA Growth Forecast are non-GAAP financial measures that we believe provide relevant and useful information 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 and Consolidated Adjusted EBITDA Growth Forecast are 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.
Consolidated Adjusted EBITDA is calculated by excluding from Consolidated EBITDA the effect of the following non-operational items: equity in losses and earnings of unconsolidated businesses and other income and expense, net, and the following special items: severance charges, Verizon Business Group ("Verizon Business") goodwill impairment, asset rationalization, legal settlement, business transformation costs and non-strategic business shutdown. Severance charges recorded during 2023 and 2022 primarily relate to involuntary separations under our existing plans. Verizon Business goodwill impairment relates to an impairment charge recognized in the fourth quarter of 2023 as a result of Verizon's annual goodwill impairment test. Asset rationalization recorded during the second quarter of 2023 relates to certain real estate and non-strategic assets that we made a decision to cease use of as part of our transformation initiatives. Asset rationalization recorded during the fourth quarter of 2023 primarily relates to Verizon Business network assets that we made a decision to cease use of as part of our continued transformation initiatives. Legal settlement recorded during 2023 relates to the settlement of a litigation matter regarding certain administrative fees. Business transformation costs recorded during 2023 primarily relate to costs incurred in connection with strategic partnership initiatives in our managed network support services for certain Verizon Business customers. Non-strategic business shutdown relates to the shutdown of our BlueJeans business offering in 2023.
We have not provided a reconciliation for our Consolidated Adjusted EBITDA Growth Forecast because we cannot, without unreasonable effort, predict the special items that could arise during 2024.

Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio
Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio are non-GAAP financial measures that we believe are useful to management, investors and other users of our financial information in evaluating Verizon’s ability to service its unsecured debt from continuing operations.
Net Unsecured Debt is calculated by subtracting secured debt and cash and cash equivalents from the sum of debt maturing within one year and long-term debt. Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio is calculated by dividing Net Unsecured Debt by Consolidated Adjusted EBITDA. For purposes of Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio, Consolidated Adjusted EBITDA is calculated for the last twelve months.

Adjusted Earnings per Common Share (Adjusted EPS) and Adjusted EPS Forecast

Adjusted EPS and Adjusted EPS Forecast are non-GAAP financial measures that we believe are useful to management, investors and other users of our financial information in evaluating our operating results and understanding our operating trends without the effect of special items which could vary from period to period. We believe excluding special items provides more comparable assessment of our financial results from period to period.

Adjusted EPS is calculated by excluding from the calculation of reported EPS the effect of the following special items: amortization of acquisition-related intangible assets, severance, pension and benefits charges and credits, Verizon Business goodwill impairment, asset rationalization, legal settlement, business transformation costs, non-strategic business shutdown and early debt redemption costs.

We exclude the amortization of acquisition-related intangible assets because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions we consummate. While we have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition’s purchase price allocated to intangible assets and related amortization term are unique to each acquisition and can vary significantly from acquisition to acquisition. Exclusion of this amortization expense facilitates more consistent comparisons of operating results over time between our newly acquired and long-held businesses, and with both acquisitive and non-acquisitive peer companies. We believe that it is important for investors to understand that our non-GAAP financial measure adjusts for the intangible asset amortization but does not adjust the revenue that is generated in part from the use of such intangible assets.

We have not provided a reconciliation for our Adjusted EPS Forecast because we cannot, without unreasonable effort, predict the special items that could arise during 2024.

Adjusted Effective Income Tax Rate Attributable to Verizon Forecast (Adjusted ETR Forecast)

Adjusted ETR Forecast is a non-GAAP financial measure that we believe is useful to management, investors and other users of our financial information in assessing our effective income tax rate without the effect of special items which could vary from period to period. Adjusted ETR Forecast is calculated by dividing the provision for income taxes by net income attributable to Verizon before tax after adjusting for the effect of special items.

We have not provided a reconciliation for our Adjusted ETR Forecast because we cannot, without unreasonable effort, predict the special items that could arise during 2024.

Free Cash Flow

Free cash flow is a non-GAAP financial measure that reflects an additional way of viewing our liquidity that, when viewed with our GAAP results, provides a more complete understanding of factors and trends affecting our cash flows. 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 or expected to be made on finance lease obligations or cash payments for acquisitions of businesses or wireless licenses. Therefore, we believe it is important to view free cash flow as a complement to our entire consolidated statements of cash flows.

Free cash flow is calculated by subtracting capital expenditures (including capitalized software) from net cash provided by operating activities.


Consolidated Operating Expenses Excluding Depreciation and Amortization and Special Items

Consolidated operating expenses excluding depreciation and amortization and special items is a non-GAAP financial measure that we believe is useful to management, investors and other users of our financial information in evaluating our operating expenses and underlying operating trends in a manner that is consistent with management's evaluation of operating performance. We believe that consolidated operating expenses excluding depreciation and amortization and special items is used by investors to more accurately compare a company’s operating expenses to those of its competitors by eliminating impacts caused by differences in depreciation and amortization policies. In addition, the exclusion of the effects of special items allows for better comparability of our financial results from period to period.
Consolidated operating expenses excluding depreciation and amortization and special items is calculated by excluding from consolidated operating expenses the effects of depreciation and amortization expense and the following special items: severance charges, Verizon Business goodwill impairment, asset rationalization and legal settlement.

See the accompanying schedules for reconciliations of non-GAAP financial measures to GAAP.


Item 9.01. Financial Statements and Exhibits
(d) Exhibits.   
Exhibit
Number		    Description
Press release and financial tables, dated January 23, 2024, issued by Verizon Communications Inc.
Commentary discussing financial and operating results of Verizon Communications Inc. for the fourth quarter and full year of 2023.
104 Cover Page Interactive Data File (formatted as inline XBRL).

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.
    (Registrant)
Date: January 23, 2024   /s/ Mary-Lee Stillwell
        Mary-Lee Stillwell
         Senior Vice President and Controller

EX-99.1 2 a2023q4exhibit991.htm EX-99.1 Document

Exhibit 99.1
vzlogoa58.jpg

News Release

FOR IMMEDIATE RELEASE
Media contacts:
January 23, 2024 Katie Magnotta
201-602-9235    
katie.magnotta@verizon.com
Eric Wilkens
201-572-9317
eric.wilkens@verizon.com


Verizon finishes 2023 with strong cash flow and
wireless customer growth
Posts double-digit gains across fixed wireless and
total wireless postpaid net additions

Full-year 2023 wireless service revenue was $76.7 billion, up 3.2 percent from full-year 2022

Fixed wireless net additions for full-year 2023 were up over 31 percent year over year reflecting the increased demand driven by the strength and reliability of the product

Total wireless postpaid net additions for full-year 2023 spike 26 percent compared to 2022

Total wireless postpaid phone net additions jump to 449,000 for fourth-quarter 2023 compared to 217,000 for fourth-quarter 2022

Consumer postpaid phone gross additions for fourth-quarter 2023 increase nearly 17 percent year over year, marking the best quarterly performance in four years

2023 highlights

Consolidated:
•Full-year 2023 earnings per share (EPS) of $2.75, compared with $5.06 in 2022; adjusted EPS1, excluding special items, of $4.71, compared with 2022 adjusted EPS1 of $5.18.
•Total operating revenue of $134.0 billion in full-year 2023, down 2.1 percent year over year.
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•Full-year 2023 cash flow from operations of $37.5 billion, an increase from $37.1 billion in 2022.
•Full-year 2023 free cash flow1 of $18.7 billion, an increase from $14.1 billion in 2022.

4Q 2023 highlights

Consolidated:
•Earnings per share was $(0.64), compared with earnings per share of $1.56 in fourth-quarter 2022; adjusted EPS1, excluding special items, of $1.08, compared with $1.19 in fourth-quarter 2022.
•Total operating revenue of $35.1 billion, a decrease of 0.3 percent from fourth-quarter 2022.
•Consolidated net loss for the fourth-quarter of $2.6 billion, compared to consolidated net income of $6.7 billion in fourth-quarter 2022, and consolidated adjusted EBITDA1 of $11.7 billion, in line with the 2022 result.

Total Broadband:
•Total broadband net additions of 413,000, represented the fifth consecutive quarter that Verizon reported more than 400,000 broadband net additions. Total broadband net additions included 375,000 fixed wireless net additions, bringing the subscriber base to over 3 million. In fourth-quarter 2023, more than 80 percent of Consumer fixed wireless gross additions were in Verizon's first 76 C-Band markets. Verizon is ahead of schedule to achieve its goal of 4 to 5 million subscribers by the end of 2025.
•55,000 Fios Internet net additions, down 4,000 from the fourth-quarter 2022.
•10.7 million total broadband subscribers as of the end of fourth-quarter 2023.

Total Wireless:
•Total wireless service revenue2 of $19.4 billion, a 3.2 percent increase year over year.
•Retail postpaid phone net additions of 449,000, and retail postpaid net additions of 1,460,000.
•Retail postpaid churn of 1.18 percent, and retail postpaid phone churn of 0.93 percent.

NEW YORK - Verizon Communications Inc. (NYSE, Nasdaq: VZ) reported strong fourth-quarter and full-year 2023 results highlighted by total wireless postpaid net additions, fixed wireless net additions and increased wireless service revenue.
"After delivering continuous improvement throughout 2023, we ended the year strong and continue to pursue the right balance of growth and profitability," said Verizon Chairman and CEO Hans Vestberg. "2023 was a year of change. We have the right assets and the best team in place and are well-positioned for growth in 2024."
For fourth-quarter 2023, Verizon reported earnings per share of $(0.64), compared with earnings per share of $1.56 in fourth-quarter 2022. On an adjusted basis1, excluding special items, EPS was $1.08 in fourth-quarter 2023, compared with adjusted EPS1 of $1.19 in fourth-quarter 2022.
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Fourth-quarter 2023 financial results reflected a pre-tax loss from special items of approximately $7.8 billion. This includes the impacts of a previously disclosed goodwill impairment charge related to our Business reporting unit of $5.8 billion, a market-to-market adjustment for our pension and Other Post Employment Benefits (OPEB) liabilities of $992 million, asset rationalization charges of $325 million primarily relating to Business network assets that Verizon has ceased the use of, a severance charge of $296 million, the amortization of intangible assets related to Tracfone and other acquisitions of $227 million, and a $100 million charge relating to the settlement of a litigation matter regarding certain administrative fees.
For full-year 2023, Verizon reported $2.75 in EPS, compared with $5.06 for full-year 2022. On an adjusted basis1, excluding special items, 2023 EPS was $4.71, compared with $5.18 for 2022.
Consolidated results
•Total consolidated operating revenue in fourth-quarter 2023 of $35.1 billion, down 0.3 percent from fourth-quarter 2022. The decrease can be attributed to wireless equipment revenue, which was 2.0 percent lower than 2022, as total postpaid upgrades declined by 17.9 percent. Full-year 2023 consolidated operating revenue was $134.0 billion, down 2.1 percent year over year.
•Total wireless service revenue2 in fourth-quarter 2023 was $19.4 billion, up 3.2 percent year over year, driven primarily by pricing actions implemented in recent quarters, the larger allocation of our administrative and telco recovery fees from other revenue into wireless service revenue, higher premium price plan adoption and growth from fixed wireless access offerings.
•Full-year 2023 cash flow from operations was $37.5 billion, an increase from $37.1 billion in 2022. This marks a year over year increase of over $300 million, primarily due to working capital improvements.
•Full-year 2023 capital expenditures were $18.8 billion, down from $23.1 billion in 2022.
•The company ended 2023 with free cash flow1 of $18.7 billion, an increase from $14.1 billion in 2022.
•Consolidated net loss for the fourth-quarter 2023 was $2.6 billion, compared to consolidated net income of $6.7 billion in fourth-quarter 2022, and consolidated adjusted EBITDA1 was $11.7 billion, in line with the 2022 result.
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•Verizon's total unsecured debt as of the end of the year was $128.5 billion, a $2.1 billion increase sequentially, but $2.1 billion lower year over year. The company's net unsecured debt1 at the end of the year was $126.4 billion, a $4.2 billion increase from third-quarter 2023, but $1.6 billion lower year over year. At the end of fourth-quarter 2023, Verizon's ratio of unsecured debt to net income (LTM) was approximately 10.6 times and net unsecured debt to adjusted EBITDA ratio1 was approximately 2.6 times.
Verizon Consumer results
•Total Verizon Consumer revenue in fourth-quarter 2023 was $27.0 billion, an increase of 0.7 percent year over year as growth in service revenue was offset by declines in wireless equipment revenue and other revenue. For full-year 2023, total Consumer revenue was $101.6 billion, a decrease of 1.8 percent from full-year 2022.
•Wireless service revenue in fourth-quarter 2023 increased 3.2 percent year over year driven primarily by growth in Consumer wireless postpaid Average Revenue Per Account (ARPA) resulting from pricing actions implemented in recent quarters, the larger allocation of our administrative and telco recovery fees from other revenue into wireless service revenue, higher premium price plan adoption, and growth from fixed wireless access offerings. For full-year 2023, total Consumer wireless service revenue was $63.4 billion, an increase of 3.0 percent from full-year 2022.
•Consumer wireless retail postpaid churn was 1.08 percent in fourth-quarter 2023, and wireless retail postpaid phone churn was 0.88 percent.
•In fourth-quarter 2023, Consumer reported 318,000 wireless retail postpaid phone net additions, representing an improvement of 369,000 from third-quarter 2023 and 277,000 from fourth-quarter 2022. Consumer postpaid phone gross additions in the fourth-quarter 2023 increased 16.9 percent year over year, the best performance in four years.
•Verizon continues to see better performance in the markets where C-Band is deployed. In Verizon's first 76 C-Band markets, fourth-quarter growth in Consumer postpaid phone gross additions was more than 8 percentage points better than in non C-Band markets and postpaid phone churn remains lower than non C-Band markets.
•Consumer reported 289,000 wireless retail prepaid net losses in fourth-quarter 2023.
•Consumer reported 231,000 fixed wireless net additions and 53,000 Fios Internet net additions in fourth-quarter 2023. Consumer Fios revenue was $2.9 billion in fourth-quarter 2023, an increase of 1.0 percent year over year. Full-year 2023 Consumer Fios revenue was $11.6 billion, relatively flat year over year.
•In fourth-quarter 2023, Consumer operating income was $7.0 billion, an increase of 0.1 percent year over year, and segment operating income margin was 26.1 percent, a decrease from 26.3 percent in fourth-quarter 2022. Full-year 2023 Consumer operating income was $29.0 billion, an increase of 0.6 percent year over year, and segment operating income margin was 28.5 percent, an increase from 27.9 percent in full-year 2022. Segment EBITDA1 in fourth-quarter 2023 was $10.4 billion, an increase of 2.4 percent year over year. This improvement can be attributed to wireless service revenue growth and lower upgrade volumes. Segment EBITDA margin1 in fourth-quarter 2023
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was 38.5 percent, an increase from 37.9 percent in fourth-quarter 2022. Full-year 2023 segment EBITDA margin1 was 41.4 percent, an increase from 40.2 percent in 2022.
Verizon Business results
•Total Verizon Business revenue was $7.6 billion in fourth-quarter 2023, a decrease of 3.6 percent year over year as lower wireline revenue and lower wireless equipment revenue was partially offset by higher wireless service revenue. For full-year 2023, total Business revenue was $30.1 billion, a 3.1 percent decrease year over year.
•Business wireless service revenue in fourth-quarter 2023 was $3.4 billion, an increase of 3.0 percent year over year. This was driven by the larger allocation of our administration and telco recovery fees from other revenue into wireless service revenue, continued strong net additions and the benefit of pricing actions implemented earlier in the year. Full-year 2023 Business wireless service revenue was $13.4 billion, an increase of 4.1 percent compared to full-year 2022.
•Business reported 292,000 wireless retail postpaid net additions in fourth-quarter 2023, including 131,000 postpaid phone net additions. This was the 10th consecutive quarter that Business reported more than 125,000 postpaid phone net additions. Business continues to grow volumes and expand its relationships with customers strengthening its position as a wireless market share leader.
•Business wireless retail postpaid churn was 1.48 percent in fourth-quarter 2023, and wireless retail postpaid phone churn was 1.12 percent.
•Business reported 144,000 fixed wireless net additions in fourth-quarter 2023.
•In fourth-quarter 2023, Verizon Business operating income was $443 million, a decrease of 24.3 percent year over year, and segment operating income margin was 5.8 percent, a decrease from 7.4 percent in fourth-quarter 2022. Full-year 2023 segment operating income was $2.1 billion, a decrease of 21.5 percent year over year, and segment operating income margin was 6.9 percent, compared with 8.5 percent in full-year 2022. Segment EBITDA1 in fourth-quarter 2023 was $1.6 billion, a decrease of 4.5 percent year over year, driven by continued declines in high margin wireline revenues. Segment EBITDA margin1 in fourth-quarter 2023 was 21.1 percent, a decrease from 21.3 percent in fourth-quarter 2022. For the full year, segment EBITDA margin1 was 21.8 percent, a decrease from 22.3 percent in 2022.
Outlook and guidance
The company does not provide a reconciliation for any of the following adjusted (non-GAAP) forecasts because it cannot, without unreasonable effort, predict the special items that could arise, and the company is unable to address the probable significance of the unavailable information.
For 2024, Verizon expects the following:
•Total wireless service revenue growth2 of 2.0 percent to 3.5 percent.
•Adjusted EBITDA growth1 of 1.0 percent to 3.0 percent.
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•Adjusted EPS1 of $4.50 to $4.70.
•Capital expenditures between $17.0 billion and $17.5 billion.
•Adjusted effective income tax rate1 in the range of 22.5 percent to 24.0 percent.
1 Non-GAAP financial measure. See the accompanying schedules and www.verizon.com/about/investors for reconciliations of non-GAAP financial measures cited in this document to most directly comparable financial measures under generally accepted accounting principles (GAAP).
2 Total wireless service revenue represents the sum of Consumer and Business segments.
Verizon Communications Inc. (NYSE, Nasdaq: VZ) was formed on June 30, 2000 and is one of the world’s leading providers of technology and communications services. Headquartered in New York City and with a presence around the world, Verizon generated revenues of $134.0 billion in 2023. The company offers data, video and voice services and solutions on its award-winning networks and platforms, delivering on customers’ demand for mobility, reliable network connectivity, security and control.
####
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Forward-looking statements
In this communication 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,” “assumes,” “believes,” “estimates,” “expects,” “forecasts,” “hopes,” “intends,” “plans,” “targets” 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 in our filings with the Securities and Exchange Commission (the “SEC”), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of competition in the markets in which we operate, including the inability to successfully respond to competitive factors such as prices, promotional incentives and evolving consumer preferences; failure to take advantage of, or respond to competitors' use 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 and changing interest rates in the markets in which we operate; 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, acts of war, terrorist attacks or other hostile acts and any resulting financial or reputational impact; disruption of our key suppliers’ or vendors' provisioning of products or services, including as a result of geopolitical factors or the potential impacts of global climate change; material adverse changes in labor matters and any resulting financial or operational impact; damage to our reputation or brands; the impact of public health crises on our operations, our employees and the ways in which our customers use our networks and other products and services; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; allegations regarding the release of hazardous materials or pollutants into the environment from our, or our predecessors’, network assets and any related government investigations, regulatory developments, litigation, penalties and other liability, remediation and compliance costs, operational impacts or reputational damage; our high level of indebtedness; 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 regulations, or in their interpretation, or challenges to our tax positions, resulting in additional tax expense or liabilities; 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.
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Verizon Communications Inc.


Condensed Consolidated Statements of Income
(dollars in millions, except per share amounts)
Unaudited 3 Mos. Ended 12/31/23 3 Mos. Ended 12/31/22 %
Change		 12 Mos. Ended 12/31/23 12 Mos. Ended 12/31/22 %
Change
Operating Revenues
Service revenues and other $ 27,658  $ 27,626  0.1 $ 109,652  $ 109,625  —
Wireless equipment revenues 7,472  7,625  (2.0) 24,322  27,210  (10.6)
Total Operating Revenues 35,130  35,251  (0.3) 133,974  136,835  (2.1)
Operating Expenses
Cost of services 6,952  7,185  (3.2) 28,100  28,637  (1.9)
Cost of wireless equipment 8,230  8,577  (4.0) 26,787  30,496  (12.2)
Selling, general and administrative expense 8,991  8,046  11.7 32,745  30,136  8.7
Depreciation and amortization expense 4,516  4,218  7.1 17,624  17,099  3.1
Verizon Business Group goodwill impairment 5,841  —  * 5,841  —  *
Total Operating Expenses 34,530  28,026  23.2 111,097  106,368  4.4
Operating Income 600  7,225  (91.7) 22,877  30,467  (24.9)
Equity in earnings (losses) of unconsolidated businesses (11) 4  * (53) 44  *
Other income (expense), net (807) 2,687  * (313) 1,373  *
Interest expense (1,599) (1,105) 44.7 (5,524) (3,613) 52.9
Income (Loss) Before Provision For Income Taxes (1,817) 8,811  * 16,987  28,271  (39.9)
Provision for income taxes (756) (2,113) (64.2) (4,892) (6,523) (25.0)
Net Income (Loss) $ (2,573) $ 6,698  * $ 12,095  $ 21,748  (44.4)
Net income attributable to noncontrolling interests $ 132  $ 121  9.1 $ 481  $ 492  (2.2)
Net income (loss) attributable to Verizon (2,705) 6,577  * 11,614  21,256  (45.4)
Net Income (Loss) $ (2,573) $ 6,698  * $ 12,095  $ 21,748  (44.4)
Basic Earnings Per Common Share
Net income (loss) attributable to Verizon $ (0.64) $ 1.56  * $ 2.76  $ 5.06  (45.5)
Weighted-average shares outstanding (in millions) 4,214  4,204  4,211  4,202 
Diluted Earnings Per Common Share (1)
Net income (loss) attributable to Verizon $ (0.64) $ 1.56  * $ 2.75  $ 5.06  (45.7)
Weighted-average shares outstanding (in millions) 4,214  4,207  4,215  4,204 
Footnotes:
(1)Where applicable, Diluted Earnings per Common Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represents the only potential dilution.
*Not meaningful

Verizon Communications Inc.


Condensed Consolidated Balance Sheets

(dollars in millions)
Unaudited 12/31/23 12/31/22 $ Change
Assets
Current assets
Cash and cash equivalents $ 2,065  $ 2,605  $ (540)
Accounts receivable 26,102  25,332  770 
Less Allowance for credit losses 1,017  826  191 
Accounts receivable, net 25,085  24,506  579 
Inventories 2,057  2,388  (331)
Prepaid expenses and other 7,607  8,358  (751)
Total current assets 36,814  37,857  (1,043)
Property, plant and equipment 320,108  307,689  12,419 
Less Accumulated depreciation 211,798  200,255  11,543 
Property, plant and equipment, net 108,310  107,434  876 
Investments in unconsolidated businesses 953  1,071  (118)
Wireless licenses 155,667  149,796  5,871 
Goodwill 22,843  28,671  (5,828)
Other intangible assets, net 11,057  11,461  (404)
Operating lease right-of-use assets 24,726  26,130  (1,404)
Other assets 19,885  17,260  2,625 
Total assets $ 380,255  $ 379,680  $ 575 
Liabilities and Equity
Current liabilities
Debt maturing within one year $ 12,973  $ 9,963  $ 3,010 
Accounts payable and accrued liabilities 23,453  23,977  (524)
Current operating lease liabilities 4,266  4,134  132 
Other current liabilities 12,531  12,097  434 
Total current liabilities 53,223  50,171  3,052 
Long-term debt 137,701  140,676  (2,975)
Employee benefit obligations 13,189  12,974  215 
Deferred income taxes 45,781  43,441  2,340 
Non-current operating lease liabilities 20,002  21,558  (1,556)
Other liabilities 16,560  18,397  (1,837)
Total long-term liabilities 233,233  237,046  (3,813)
Equity
Common stock 429  429  — 
Additional paid in capital 13,631  13,420  211 
Retained earnings 82,915  82,380  535 
Accumulated other comprehensive loss (1,380) (1,865) 485 
Common stock in treasury, at cost (3,821) (4,013) 192 
Deferred compensation – employee stock ownership plans and other 656  793  (137)
Noncontrolling interests 1,369  1,319  50 
Total equity 93,799  92,463  1,336 
Total liabilities and equity $ 380,255  $ 379,680  $ 575 







Verizon Communications Inc.


Consolidated - Selected Financial and Operating Statistics

(dollars in millions, except per share amounts)
Unaudited 12/31/23 12/31/22
Total debt $ 150,674  $ 150,639 
Unsecured debt $ 128,491  $ 130,631 
Net unsecured debt(1)
 $ 126,426  $ 128,026 
Unsecured debt / Consolidated Net Income (LTM) 10.6  x 6.0  x
Net unsecured debt / Consolidated Adjusted EBITDA(1)(2)
 2.6  x 2.7  x
Common shares outstanding end of period (in millions) 4,204  4,200 
Total employees (‘000) 105.4  117.1 
Quarterly cash dividends declared per common share $ 0.6650  $ 0.6525 
Footnotes: 
(1)Non-GAAP financial measure.
(2)Consolidated Adjusted EBITDA excludes the effects of non-operational items and special items.

Verizon Communications Inc.


Condensed Consolidated Statements of Cash Flows
(dollars in millions)
Unaudited 12 Mos. Ended 12/31/23 12 Mos. Ended 12/31/22 $ Change
Cash Flows from Operating Activities
Net Income $ 12,095  $ 21,748  $ (9,653)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense 17,624  17,099  525 
Employee retirement benefits 1,206  (2,046) 3,252 
Deferred income taxes 2,388  2,973  (585)
Provision for expected credit losses 2,214  1,611  603 
Equity in losses (earnings) of unconsolidated businesses, net of dividends received 84  (10) 94 
Verizon Business Group goodwill impairment 5,841  —  5,841 
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses
 (267) (456) 189 
Other, net (3,710) (3,778) 68 
Net cash provided by operating activities 37,475  37,141  334 
Cash Flows from Investing Activities
Capital expenditures (including capitalized software) (18,767) (23,087) 4,320 
Cash received (paid) related to acquisitions of businesses, net of cash acquired (30) 248  (278)
Acquisitions of wireless licenses (5,796) (3,653) (2,143)
Collateral receipts (payments) related to derivative contracts, net 880  (2,265) 3,145 
Proceeds from disposition of business —  33  (33)
Other, net 281  62  219 
Net cash used in investing activities (23,432) (28,662) 5,230 
Cash Flows from Financing Activities
Proceeds from long-term borrowings 2,018  7,074  (5,056)
Proceeds from asset-backed long-term borrowings 6,594  10,732  (4,138)
Net proceeds from (repayments of) short-term commercial paper (150) 106  (256)
Repayments of long-term borrowings and finance lease obligations (6,181) (8,616) 2,435 
Repayments of asset-backed long-term borrowings (4,443) (4,948) 505 
Dividends paid (11,025) (10,805) (220)
Other, net (1,470) (2,072) 602 
Net cash used in financing activities (14,657) (8,529) (6,128)
Decrease in cash, cash equivalents and restricted cash (614) (50) (564)
Cash, cash equivalents and restricted cash, beginning of period 4,111  4,161  (50)
Cash, cash equivalents and restricted cash, end of period $ 3,497  $ 4,111  $ (614)


Verizon Communications Inc.


Consumer - Selected Financial Results
(dollars in millions)
Unaudited 3 Mos. Ended 12/31/23 3 Mos. Ended 12/31/22 %
Change		 12 Mos. Ended 12/31/23 12 Mos. Ended 12/31/22 %
Change
Operating Revenues
Service $ 18,927  $ 18,443  2.6 $ 74,874  $ 73,139  2.4
Wireless equipment 6,435  6,528  (1.4) 20,645  23,168  (10.9)
Other 1,592  1,799  (11.5) 6,107  7,199  (15.2)
Total Operating Revenues 26,954  26,770  0.7 101,626  103,506  (1.8)
Operating Expenses
Cost of services 4,362  4,450  (2.0) 17,580  17,746  (0.9)
Cost of wireless equipment 6,877  7,137  (3.6) 21,827  25,134  (13.2)
Selling, general and administrative expense 5,336  5,044  5.8 20,131  19,064  5.6
Depreciation and amortization expense 3,344  3,111  7.5 13,077  12,716  2.8
Total Operating Expenses 19,919  19,742  0.9 72,615  74,660  (2.7)
Operating Income $ 7,035  $ 7,028  0.1 $ 29,011  $ 28,846  0.6
Operating Income Margin 26.1  % 26.3  % 28.5  % 27.9  %
Segment EBITDA(1)
 $ 10,379  $ 10,139  2.4 $ 42,088  $ 41,562  1.3
Segment EBITDA Margin(1)
 38.5  % 37.9  % 41.4  % 40.2  %
Footnotes:
(1) Non-GAAP financial measure.
The segment financial results and metrics above exclude the effects of special items (other than the effects of acquisition-related intangible asset amortization), which the Company’s chief operating decision maker does not consider in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.
 

Verizon Communications Inc.


Consumer - Selected Operating Statistics
Unaudited 12/31/23 12/31/22 % Change
Connections (‘000):
Wireless retail postpaid 93,850  91,856  2.2
Wireless retail prepaid 21,122  22,664  (6.8)
Total wireless retail 114,972  114,520  0.4
Wireless retail postpaid phones 74,720  74,857  (0.2)
Fios video 2,951  3,234  (8.8)
Fios internet 6,976  6,740  3.5
Fixed wireless access (FWA) broadband 1,866  884  *
Wireline broadband 7,190  7,016  2.5
Total broadband 9,056  7,900  14.6
Unaudited 3 Mos. Ended 12/31/23 3 Mos. Ended 12/31/22 %
Change		 12 Mos. Ended 12/31/23 12 Mos. Ended 12/31/22 %
Change
Gross Additions (‘000):
Wireless retail postpaid 4,185  3,889  7.6 13,475  12,037  11.9
Net Additions Detail (‘000):
Wireless retail postpaid 1,168  979  19.3 2,044  965  *
Wireless retail prepaid (289) (175) (65.1) (1,151) (445) *
Total wireless retail 879  804  9.3 893  520  71.7
Wireless retail postpaid phones 318  41  * (132) (655) 79.8
Fios video (62) (80) 22.5 (283) (339) 16.5
Fios internet 53  56  (5.4) 236  199  18.6
FWA broadband 231  262  (11.8) 989  776  27.4
Wireline broadband 39  40  (2.5) 174  128  35.9
Total broadband 270  302  (10.6) 1,163  904  28.7
Churn Rate:
Wireless retail postpaid 1.08  % 1.06  % 1.03  % 1.01  %
Wireless retail postpaid phones 0.88  % 0.86  % 0.83  % 0.81  %
Wireless retail prepaid 4.55  % 4.90  % 4.37  % 4.09  %
Wireless retail 1.73  % 1.83  % 1.67  % 1.63  %
Revenue Statistics (in millions):
Wireless service revenue $ 16,034  $ 15,539  3.2 $ 63,358  $ 61,509  3.0
Fios revenues $ 2,942  $ 2,914  1.0 $ 11,614  $ 11,622  (0.1)

Verizon Communications Inc.


Consumer - Selected Operating Statistics (continued)
Unaudited 3 Mos. Ended 12/31/23 3 Mos. Ended 12/31/22 %
Change		 12 Mos. Ended 12/31/23 12 Mos. Ended 12/31/22 %
Change
Other Wireless Statistics:
Wireless retail postpaid ARPA (1)
 $ 134.10  $ 128.02  4.7 $ 132.36  $ 125.97  5.1
Wireless retail postpaid upgrade rate
 4.4  % 5.6  %
Wireless retail postpaid accounts (‘000) (2)
 32,990  33,183  (0.6)
Wireless retail postpaid connections per account (2)
 2.84  2.77  2.5
Wireless retail prepaid ARPU (3)
$ 31.87  $ 31.53  1.1 $ 31.46  $ 31.21  0.8
Footnotes:
(1) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
(2) Statistics presented as of end of period.
(3) Wireless retail prepaid ARPU - average service revenue per unit from retail prepaid connections.
Where applicable, the operating results reflect certain adjustments, including those related to the 3G network shutdowns, migration activity among different types of devices and plans, customer profile changes, and adjustments in connection with mergers, acquisitions and divestitures.
Certain intersegment transactions with corporate entities have not been eliminated.
* Not meaningful


Verizon Communications Inc.


Business - Selected Financial Results
(dollars in millions)
Unaudited 3 Mos. Ended 12/31/23 3 Mos. Ended 12/31/22 %
Change		 12 Mos. Ended 12/31/23 12 Mos. Ended 12/31/22 %
Change
Operating Revenues
Enterprise and Public Sector $ 3,718  $ 3,908  (4.9) $ 15,076  $ 15,693  (3.9)
Business Markets and Other 3,318  3,330  (0.4) 12,715  12,772  (0.4)
Wholesale 582  662  (12.1) 2,331  2,607  (10.6)
Total Operating Revenues 7,618  7,900  (3.6) 30,122  31,072  (3.1)
Operating Expenses
Cost of services 2,519  2,665  (5.5) 10,180  10,483  (2.9)
Cost of wireless equipment 1,353  1,440  (6.0) 4,959  5,362  (7.5)
Selling, general and administrative expense 2,139  2,112  1.3 8,429  8,284  1.8
Depreciation and amortization expense 1,164  1,098  6.0 4,488  4,312  4.1
Total Operating Expenses 7,175  7,315  (1.9) 28,056  28,441  (1.4)
Operating Income $ 443  $ 585  (24.3) $ 2,066  $ 2,631  (21.5)
Operating Income Margin 5.8  % 7.4  % 6.9  % 8.5  %
Segment EBITDA(1)
 $ 1,607  $ 1,683  (4.5) $ 6,554  $ 6,943  (5.6)
Segment EBITDA Margin(1)
 21.1  % 21.3  % 21.8  % 22.3  %
Footnotes:
(1) Non-GAAP financial measure.
Our Business segment’s wireless and wireline products and services are organized by the primary customer groups targeted by these offerings. During the first quarter of 2023, Verizon reorganized the customer groups within its Business segment. Previously, this segment was comprised of four customer groups: Small and Medium Business, Global Enterprise, Public Sector and Other, and Wholesale. Following the reorganization, there are now three customer groups: Enterprise and Public Sector, Business Markets and Other, and Wholesale. Enterprise and Public Sector combines the customers previously included in Global Enterprise and Public Sector and Other (excluding BlueJeans and Connect customers) as well as the commercial wireline customers previously included in Small and Medium Business. Business Markets and Other combines the customers previously included in Small and Medium Business (excluding commercial wireline customers), the BlueJeans customers previously included in Global Enterprise and Public Sector and Other, and the Connect customers previously included in Public Sector and Other. The Wholesale customer group remained unchanged. Prior period operating revenue results within the Business segment have been recast for these reorganized customer groups. There was no change to the composition of our reportable segments and total segment results, nor the determination of segment profit.
The segment financial results and metrics above exclude the effects of special items (other than the effects of acquisition-related intangible asset amortization), which the Company’s chief operating decision maker does not consider in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.

Verizon Communications Inc.


Business - Selected Operating Statistics
Unaudited 12/31/23 12/31/22 %
Change
Connections (‘000):
Wireless retail postpaid 29,779  28,733  3.6
Wireless retail postpaid phones 18,170  17,782  2.2
Fios video 61  67  (9.0)
Fios internet 385  373  3.2
FWA broadband 1,201  568  *
Wireline broadband 460  468  (1.7)
Total broadband 1,661  1,036  60.3
Unaudited 3 Mos. Ended 12/31/23 3 Mos. Ended 12/31/22 %
Change		 12 Mos. Ended 12/31/23 12 Mos. Ended 12/31/22 %
Change
Gross Additions (‘000):
Wireless retail postpaid 1,605  1,644  (2.4) 6,420  6,294  2.0
Net Additions Detail (‘000):
Wireless retail postpaid 292  455  (35.8) 1,242  1,640  (24.3)
Wireless retail postpaid phones 131  176  (25.6) 562  856  (34.3)
Fios video (2) (2) — (6) (4) (50.0)
Fios internet 2  3  (33.3) 12  17  (29.4)
FWA broadband 144  117  23.1 547  395  38.5
Wireline broadband (1) (3) 66.7 (8) (9) 11.1
Total broadband 143  114  25.4 539  386  39.6
Churn Rate:
Wireless retail postpaid 1.48  % 1.38  % 1.48  % 1.38  %
Wireless retail postpaid phones 1.12  % 1.06  % 1.13  % 1.07  %
Revenue Statistics (in millions):
Wireless service revenue $ 3,364  $ 3,265  3.0 $ 13,372  $ 12,845  4.1
Fios revenues $ 312  $ 304  2.6 $ 1,235  $ 1,201  2.8
Other Operating Statistics:
Wireless retail postpaid upgrade rate 3.1  % 3.6  %
Footnotes:
Where applicable, the operating results reflect certain adjustments, including those related to the 3G network shutdowns, migration activity among different types of devices and plans, customer profile changes, and adjustments in connection with mergers, acquisitions and divestitures.
Certain intersegment transactions with corporate entities have not been eliminated.
*Not meaningful


Verizon Communications Inc.


Supplemental Information - Total Wireless Operating and Financial Statistics

The following supplemental schedule contains certain financial and operating metrics which reflect an aggregation of our Consumer and Business segments’ wireless results.
Unaudited 12/31/23 12/31/22 % Change
Connections (‘000)
Retail postpaid 123,629  120,589  2.5
Retail prepaid
21,122  22,664  (6.8)
Total retail 144,751  143,253  1.0
Retail postpaid phones 92,890  92,639  0.3
Unaudited 3 Mos. Ended 12/31/23 3 Mos. Ended 12/31/22 %
Change		 12 Mos. Ended 12/31/23 12 Mos. Ended 12/31/22 %
Change
Net Additions Detail (‘000)
Retail postpaid phones 449  217  * 430  201  *
Retail postpaid 1,460  1,434  1.8 3,286  2,605  26.1
Retail prepaid (289) (175) (65.1) (1,151) (445) *
Total retail 1,171  1,259  (7.0) 2,135  2,160  (1.2)
Account Statistics
Retail postpaid accounts (‘000) (1)
 34,958  35,002  (0.1)
Retail postpaid connections per account (1)
 3.54  3.45  2.6
Retail postpaid ARPA (2)
 $ 156.48  $ 149.95  4.4 $ 154.84  $ 147.53  5.0
Retail prepaid ARPU (3)
$ 31.87  $ 31.53  1.1 $ 31.46  $ 31.21  0.8
Churn Detail
Retail postpaid phone 0.93  % 0.89  % 0.89  % 0.86  %
Retail postpaid 1.18  % 1.14  % 1.14  % 1.10  %
Retail prepaid 4.55  % 4.90  % 4.37  % 4.09  %
Retail 1.67  % 1.74  % 1.63  % 1.58  %
Retail Postpaid Connection Statistics
Upgrade rate 4.1  % 5.1  %
Revenue Statistics (in millions) (4)
Wireless service $ 19,398  $ 18,804  3.2 $ 76,730  $ 74,354  3.2
Wireless equipment 7,472  7,625  (2.0) 24,322  27,210  (10.6)
Wireless other 1,575  1,851  (14.9) 6,083  7,391  (17.7)
Total Wireless $ 28,445  $ 28,280  0.6 $ 107,135  $ 108,955  (1.7)
Footnotes:
(1) Statistics presented as of end of period.
(2) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
(3) Wireless retail prepaid ARPU - average service revenue per unit from retail prepaid connections.
(4) Intersegment transactions between Consumer or Business segment with corporate entities have not been eliminated.
Where applicable, the operating results reflect certain adjustments, including those related to the 3G network shutdowns, migration activity among different types of devices and plans, customer profile changes, and adjustments in connection with mergers, acquisitions and divestitures.
*Not meaningful

Verizon Communications Inc.
Non-GAAP Reconciliations - Consolidated Verizon
Consolidated EBITDA and Consolidated Adjusted EBITDA
(dollars in millions)
Unaudited 3 Mos. Ended 12/31/23 3 Mos. Ended 9/30/23 3 Mos. Ended 6/30/23 3 Mos. Ended 3/31/23 3 Mos. Ended 12/31/22 3 Mos. Ended 9/30/22 3 Mos. Ended 6/30/22 3 Mos. Ended 3/31/22
Consolidated Net Income (Loss) $ (2,573) $ 4,884  $ 4,766  $ 5,018  $ 6,698  $ 5,024  $ 5,315  $ 4,711 
  Add:
Provision for income taxes 756  1,308  1,346  1,482  2,113  1,496  1,542  1,372 
Interest expense 1,599  1,433  1,285  1,207  1,105  937  785  786 
Depreciation and amortization expense (1)
 4,516  4,431  4,359  4,318  4,218  4,324  4,321  4,236 
Consolidated EBITDA $ 4,298  $ 12,056  $ 11,756  $ 12,025  $ 14,134  $ 11,781  $ 11,963  $ 11,105 
  Add/(subtract):
Other (income) expense, net (2)
 $ 807  $ (170) $ (210) $ (114) $ (2,687) $ 439  $ (49) $ 924 
Equity in losses (earnings) of unconsolidated businesses 11  18  33  (9) (4) (2) (41) 3 
Severance charges 296  —  237  —  304  —  —  — 
Verizon Business Group goodwill impairment 5,841  —  —  —  —  —  —  — 
Asset rationalization 325  —  155  —  —  —  —  — 
Legal settlement 100  —  —  —  —  —  —  — 
Business transformation costs —  176  —  —  —  —  —  — 
Non-strategic business shutdown —  158  —  —  —  —  —  — 
7,380  182  215  (123) (2,387) 437  (90) 927 
Consolidated Adjusted EBITDA $ 11,678  $ 12,238  $ 11,971  $ 11,902  $ 11,747  $ 12,218  $ 11,873  $ 12,032 
Consolidated Adjusted EBITDA - Year over year change % (0.6) %
Footnotes:
(1) Includes Amortization of acquisition-related intangible assets and a portion of the Non-strategic business shutdown, where applicable.
(2) Includes Pension and benefits remeasurement adjustments and Early debt redemption costs, where applicable.




Verizon Communications Inc.
Consolidated EBITDA and Consolidated Adjusted EBITDA (LTM)
Unaudited 12 Mos. Ended 12/31/23 12 Mos. Ended 9/30/23 12 Mos. Ended 12/31/22
Consolidated Net Income $ 12,095  $ 21,366  $ 21,748 
  Add:
Provision for income taxes 4,892  6,249  6,523 
Interest expense 5,524  5,030  3,613 
Depreciation and amortization expense (1)
 17,624  17,326  17,099 
Consolidated EBITDA $ 40,135  $ 49,971  $ 48,983 
  Add/(subtract):
Other (income) expense, net (2)
 $ 313  $ (3,181) $ (1,373)
Equity in losses (earnings) of unconsolidated businesses 53  38  (44)
Severance charges 533  541  304 
Verizon Business Group goodwill impairment 5,841  —  — 
Asset rationalization 480  155  — 
Legal settlement 100  —  — 
Business transformation costs 176  176  — 
Non-strategic business shutdown 158  158  — 
7,654  (2,113) (1,113)
Consolidated Adjusted EBITDA $ 47,789  $ 47,858  $ 47,870 
Footnotes:
(1) Includes Amortization of acquisition-related intangible assets and a portion of the Non-strategic business shutdown, where applicable.
(2) Includes Pension and benefits remeasurement adjustments and Early debt redemption costs, where applicable.
Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio
(dollars in millions)
Unaudited 12/31/23 9/30/23 12/31/22
Debt maturing within one year $ 12,973  $ 12,950  $ 9,963 
Long-term debt 137,701  134,441  140,676 
Total Debt 150,674  147,391  150,639 
Less Secured debt 22,183  20,951  20,008 
Unsecured Debt 128,491  126,440  130,631 
Less Cash and cash equivalents 2,065  4,210  2,605 
Net Unsecured Debt
 $ 126,426  $ 122,230  $ 128,026 
Consolidated Net Income (LTM) $ 12,095  $ 21,748 
Unsecured Debt to Consolidated Net Income Ratio 10.6  x 6.0  x
Consolidated Adjusted EBITDA (LTM) $ 47,789  $ 47,870 
Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio 2.6  x 2.7  x
Net Unsecured Debt - Quarter over quarter change $ 4,196 
Net Unsecured Debt - Year over year change $ (1,600)


Verizon Communications Inc.
Adjusted Earnings per Common Share (Adjusted EPS)
(dollars in millions, except per share amounts)
Unaudited 3 Mos. Ended 12/31/23 3 Mos. Ended 12/31/22
Pre-tax Tax After-Tax   Pre-tax Tax After-Tax  
EPS $ (0.64) $ 1.56 
Amortization of acquisition-related intangible assets $ 227  $ (57) $ 170  0.04  $ 115  $ (34) $ 81  0.02 
Severance, pension and benefits charges (credits) 1,288  (319) 969  0.23  (2,214) 552  (1,662) (0.40)
Verizon Business Group goodwill impairment 5,841  (52) 5,789  1.37  —  —  —  — 
Asset rationalization 325  (80) 245  0.06  —  —  —  — 
Legal settlement 100  (25) 75  0.02  —  —  —  — 
$ 7,781  $ (533) $ 7,248  $ 1.72  $ (2,099) $ 518  $ (1,581) $ (0.38)
Adjusted EPS $ 1.08  $ 1.19 
Footnotes:

Adjusted EPS may not add due to rounding.
(dollars in millions, except per share amounts)
Unaudited 12 Mos. Ended 12/31/23 12 Mos. Ended 12/31/22
Pre-tax Tax After-Tax   Pre-tax Tax After-Tax  
EPS $ 2.75  $ 5.06 
Amortization of acquisition-related intangible assets $ 865  $ (219) $ 646  0.15  $ 826  $ (214) $ 612  0.15 
Severance, pension and benefits charges (credits) 1,525  (378) 1,147  0.27  (1,371) 339  (1,032) (0.25)
Verizon Business Group goodwill impairment 5,841  (52) 5,789  1.37  —  —  —  — 
Asset rationalization 480  (113) 367  0.09  —  —  —  — 
Legal settlement 100  (25) 75  0.02  —  —  —  — 
Business transformation costs 176  (45) 131  0.03  —  —  —  — 
Non-strategic business shutdown 179  (83) 96  0.02  —  —  —  — 
Early debt redemption costs —  —  —  —  1,241  (316) 925  0.22 
$ 9,166  $ (915) $ 8,251  $ 1.96  $ 696  $ (191) $ 505  $ 0.12 
Adjusted EPS $ 4.71  $ 5.18 
Footnotes:
Adjusted EPS may not add due to rounding.


Free Cash Flow
(dollars in millions)
Unaudited 12 Mos. Ended 12/31/23 12 Mos. Ended 12/31/22
Net Cash Provided by Operating Activities $ 37,475  $ 37,141 
Capital expenditures (including capitalized software) (18,767) (23,087)
Free Cash Flow $ 18,708  $ 14,054 


Verizon Communications Inc.
Non-GAAP Reconciliations - Segments
Segment EBITDA and Segment EBITDA Margin
Consumer
(dollars in millions)
Unaudited 3 Mos. Ended 12/31/23 3 Mos. Ended 12/31/22 12 Mos. Ended 12/31/23 12 Mos. Ended 12/31/22
Operating Income $ 7,035  $ 7,028  $ 29,011  $ 28,846 
Add Depreciation and amortization expense 3,344  3,111  13,077  12,716 
Segment EBITDA $ 10,379  $ 10,139  $ 42,088  $ 41,562 
Year over year change % 2.4  % 1.3  %
Total operating revenues $ 26,954  $ 26,770  $ 101,626  $ 103,506 
Operating Income Margin 26.1  % 26.3  % 28.5  % 27.9  %
Segment EBITDA Margin 38.5  % 37.9  % 41.4  % 40.2  %
Business
(dollars in millions)
Unaudited 3 Mos. Ended 12/31/23 3 Mos. Ended 12/31/22 12 Mos. Ended 12/31/23 12 Mos. Ended 12/31/22
Operating Income $ 443  $ 585  $ 2,066  $ 2,631 
Add Depreciation and amortization expense 1,164  1,098  4,488  4,312 
Segment EBITDA $ 1,607  $ 1,683  $ 6,554  $ 6,943 
Year over year change % (4.5) % (5.6) %
Total operating revenues $ 7,618  $ 7,900  $ 30,122  $ 31,072 
Operating Income Margin 5.8  % 7.4  % 6.9  % 8.5  %
Segment EBITDA Margin 21.1  % 21.3  % 21.8  % 22.3  %

EX-99.2 3 a2023q4exhibit992.htm EX-99.2 Document



Exhibit 99.2
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VZQTR20FIN
This supplemental information regarding the financial and operating results of Verizon Communications Inc. (Verizon) for the fourth quarter and full year ended December 31, 2023 contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Discussion of factors that may affect future results is included at the end of this document and is also contained in Verizon's filings with the US Securities and Exchange Commission.

Consolidated Financial Results

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* Non-GAAP financial measure.

** Total Wireless service revenue represents the sum of Consumer and Business segments.

Consolidated total operating revenue for the fourth quarter was $35.1 billion, down 0.3% year over year.
•Service and other revenue was $27.7 billion, up 0.1% year over year.
◦Total Wireless service revenue2 was $19.4 billion, up 3.2% year over year, driven primarily by pricing actions implemented in recent quarters, the larger allocation of our administrative and telco recovery fees from Other revenue into Wireless service revenue, higher premium price plan adoption, and growth from our fixed wireless access (FWA) offerings.
◦Total Fios revenue was $3.3 billion, up 1.1% year over year.

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•Wireless equipment revenue was $7.5 billion, down 2.0% year over year, predominantly due to lower upgrade rates.

Consolidated total operating revenue for the full year was $134.0 billion, down 2.1% year over year.
•Service and other revenue was $109.7 billion, relatively flat compared to the prior year.
•Total Wireless service revenue2 was $76.7 billion, up 3.2% year over year.

Consolidated net income (loss) for the fourth quarter was $(2.6) billion compared to $6.7 billion for the fourth quarter 2022, primarily due to a pre-tax loss from special items of approximately $7.8 billion in the period that are discussed below. Consolidated net income for the full year was $12.1 billion, down from $21.7 billion for the full year 2022.

Consolidated adjusted EBITDA1 for the fourth quarter was $11.7 billion, in line with the prior year period. This result was driven by Wireless service revenue growth and the benefits of lower upgrade rates, which were offset by higher marketing and bad debt expense, and ongoing declines in Verizon Business Group (Business) Wireline revenue. Consolidated adjusted EBITDA1 for the full year was $47.8 billion, down from $47.9 billion for the full year 2022.

Consolidated operating expenses for the fourth quarter were $34.5 billion, up 23.2% year over year. Consolidated operating expenses, excluding depreciation and amortization and special items,1 were $23.5 billion, down 0.2% year over year.

Interest expense for the fourth quarter was $1.6 billion compared to $1.1 billion for the prior year due to lower capitalized interest and higher interest rates on our outstanding debt balance.

Earnings per share (EPS) was $(0.64) compared to EPS of $1.56 in the prior year period. EPS for the full year was $2.75, compared with $5.06 for the full year 2022.
•Fourth quarter 2023 financial results reflected a pre-tax loss from special items of approximately $7.8 billion. This includes the impacts of the previously disclosed goodwill impairment charge related to our Business reporting unit of $5.8 billion, a mark-to-market adjustment for our pension and Other Post Employment Benefits (OPEB) liabilities of $992 million, asset rationalization charges of $325 million primarily relating to Business network assets that Verizon has ceased the use of, a severance charge of $296 million, the amortization of intangible assets

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VZQTR20FIN
related to Tracfone and other acquisitions of $227 million, and a $100 million charge relating to the settlement of a litigation matter regarding certain administrative fees.

Adjusted EPS1 for the fourth quarter was $1.08 compared to $1.19 in the prior year period. Adjusted EPS1 for the full year was $4.71 compared to $5.18 for the full year 2022.

Cash Flow Summary
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* Non-GAAP financial measure.

Cash flow from operating activities for the full year 2023 was $37.5 billion compared to $37.1 billion in the prior year driven by working capital improvements.
•Capital spending for the full year was $18.8 billion compared to $23.1 billion in the prior year.

Free cash flow1 for the full year was $18.7 billion compared to $14.1 billion in the prior year.

Total unsecured debt as of the end of the year was $128.5 billion, a $2.1 billion increase compared to the third quarter 2023 but $2.1 billion lower year over year. Unsecured debt to net income (LTM) ratio was 10.6x as of the end of the year, an increase of 4.7x compared to the third quarter and a 4.6x increase year over year. This increase is primarily due to unfavorable adjustments to net income in the fourth quarter 2023 discussed above.

Net unsecured debt1 as of the end of the year was $126.4 billion, a $4.2 billion increase compared to the third quarter 2023 but $1.6 billion lower year over year. The sequential increase in net unsecured debt was primarily related to settling the $3.7 billion payment to satellite operators for our remaining C-Band spectrum. Net unsecured debt to adjusted EBITDA ratio1 was 2.6x as of the Note: Where applicable, the operating results reflect certain adjustments

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VZQTR20FIN
end of the year, in line with the third quarter and a 0.1x improvement year over year.



Mobility Highlights

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Consolidated
Total postpaid net additions for the fourth quarter were approximately 1.5 million, up from 1.4 million in the prior year period, driven by strong Consumer postpaid phone performance and continued FWA momentum.

Total postpaid phone net additions for the fourth quarter were 449 thousand, up from 217 thousand in the prior year period.
•Postpaid phone gross additions were 3.0 million, up 12.1% year over year.
•Postpaid phone churn was 0.93%, up 4 basis points year over year.

Consumer Group
Postpaid net additions for the fourth quarter were 1.2 million, up from 979 thousand in the prior year period due to growth in phones and tablets, and continued adoption of FWA.
•Postpaid phone net additions were 318 thousand compared to 41 thousand in the prior year period.
◦Postpaid phone gross additions were 2.3 million, up 16.9% year over year.
◦Postpaid phone churn was 0.88%, up 2 basis points year over year.
•Prepaid net losses were 289 thousand compared to 175 thousand net losses in the prior year period.
◦Prepaid churn was 4.55%, down 35 basis points year over year.

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VZQTR20FIN
Business Group
Postpaid phone net additions for the fourth quarter were 131 thousand, down from 176 thousand in the prior year period.
•Postpaid phone churn was 1.12%, up 6 basis points year over year.

Broadband Highlights
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Total broadband net additions for the fourth quarter were 413 thousand compared to 416 thousand in the prior year period.
•FWA net additions were 375 thousand, relatively flat from the prior year period.
◦Consumer FWA net additions were 231 thousand, down 31 thousand year over year.
◦Business FWA net additions were 144 thousand, up 27 thousand year over year.
•Fios internet net additions were 55 thousand, down from 59 thousand in the prior year period.

Total broadband net additions for the full year were 1.7 million, up from 1.3 million in the prior year. FWA net additions for the full year were 1.5 million, up from 1.2 million in the prior year.


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VZQTR20FIN

Consumer Financial Results
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Total Consumer revenue for the fourth quarter was $27.0 billion, up 0.7% year over year, as gains in Service revenue were partially offset by declines in Wireless equipment revenue and Other revenue.
•Consumer Service and other revenue was $20.5 billion, up 1.4% year over year.
•Consumer Wireless service revenue was $16.0 billion, up 3.2% year over year, driven by growth in Consumer wireless postpaid average revenue per account (ARPA), which was partially offset by declines in prepaid connections.
•Consumer Fios revenue was $2.9 billion, up 1.0% year over year.
•Consumer Wireless equipment revenue was $6.4 billion, down 1.4% year over year, driven primarily by a 19.1% year over year decline in upgrades.

Consumer wireless postpaid ARPA was $134.10 for the fourth quarter, up 4.7% year over year, driven by pricing actions implemented in recent quarters, the larger allocation of our administrative and telco recovery fees from Other revenue into Wireless service revenue, more customers selecting premium Unlimited plans, and an increase in our FWA subscriber base.

Consumer operating income for the fourth quarter was $7.0 billion, up 0.1% year over year, resulting in operating income margin of 26.1%.

Consumer segment EBITDA1 for the fourth quarter was $10.4 billion, up 2.4% year over year. This improvement can be attributed to Service revenue growth and lower upgrade volumes. Consumer segment EBITDA margin1 for the fourth quarter was 38.5%.

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VZQTR20FIN
Business Financial Results

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Note: Revenue by customer group may not add due to rounding.

Total Business revenue for the fourth quarter was $7.6 billion, down 3.6% year over year, driven by lower Wireline revenue and lower Wireless equipment revenue, partially offset by higher Wireless service revenue.
•Business Wireless service revenue was $3.4 billion, up 3.0% year over year, driven by the larger allocation of our administrative and telco recovery fees from Other revenue into Wireless service revenue, continued strong net additions and the benefit of pricing actions implemented earlier in the year.
•Business wireline results reflect continued secular declines in the prevailing wireline market and our rationalization of certain legacy wireline products, consistent with prior periods.

Business operating income for the fourth quarter was $443 million, down 24.3% year over year, resulting in operating income margin of 5.8%.

Business segment EBITDA1 for the fourth quarter was $1.6 billion, down 4.5% year over year, driven by continued declines in high margin Wireline revenues. Business segment EBITDA margin1 for the fourth quarter was 21.1%.


Notes
1 Non-GAAP financial measure. See the accompanying schedules and www.verizon.com/about/investors for reconciliations of non-GAAP financial measures cited in this document to most directly comparable financial measures under generally accepted accounting principles (GAAP).

2 Total Wireless service revenue represents the sum of Consumer and Business segments.



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VZQTR20FIN
Forward-looking statements
In this communication 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,” “assumes,” “believes,” “estimates,” “expects,” “forecasts,” “hopes,” “intends,” “plans,” “targets” 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 in our filings with the Securities and Exchange Commission (the “SEC”), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of competition in the markets in which we operate, including the inability to successfully respond to competitive factors such as prices, promotional incentives and evolving consumer preferences; failure to take advantage of, or respond to competitors' use 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 and changing interest rates in the markets in which we operate; 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, acts of war, terrorist attacks or other hostile acts and any resulting financial or reputational impact; disruption of our key suppliers’ or vendors' provisioning of products or services, including as a result of geopolitical factors or the potential impacts of global climate change; material adverse changes in labor matters and any resulting financial or operational impact; damage to our reputation or brands; the impact of public health crises on our operations, our employees and the ways in which our customers use our networks and other products and services; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; allegations regarding the release of hazardous materials or pollutants into the environment from our, or our predecessors’, network assets and any related government investigations, regulatory developments, litigation, penalties and other liability, remediation and compliance costs, operational impacts or reputational damage; our high level of indebtedness; 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 regulations, or in their interpretation, or challenges to our tax positions, resulting in additional tax expense or liabilities; 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.

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Verizon Communications Inc.


Non-GAAP Reconciliations - Consolidated Verizon
Consolidated EBITDA and Consolidated Adjusted EBITDA
(dollars in millions)
Unaudited 3 Mos. Ended 12/31/23 3 Mos. Ended 9/30/23 3 Mos. Ended 6/30/23 3 Mos. Ended 3/31/23 3 Mos. Ended 12/31/22 3 Mos. Ended 9/30/22 3 Mos. Ended 6/30/22 3 Mos. Ended 3/31/22
Consolidated Net Income (Loss) $ (2,573) $ 4,884  $ 4,766  $ 5,018  $ 6,698  $ 5,024  $ 5,315  $ 4,711 
  Add:
Provision for income taxes 756  1,308  1,346  1,482  2,113  1,496  1,542  1,372 
Interest expense 1,599  1,433  1,285  1,207  1,105  937  785  786 
Depreciation and amortization expense (1)
 4,516  4,431  4,359  4,318  4,218  4,324  4,321  4,236 
Consolidated EBITDA $ 4,298  $ 12,056  $ 11,756  $ 12,025  $ 14,134  $ 11,781  $ 11,963  $ 11,105 
  Add/(subtract):
Other (income) expense, net (2)
 $ 807  $ (170) $ (210) $ (114) $ (2,687) $ 439  $ (49) $ 924 
Equity in losses (earnings) of unconsolidated businesses 11  18  33  (9) (4) (2) (41) 3 
Severance charges 296  —  237  —  304  —  —  — 
Verizon Business Group goodwill impairment 5,841  —  —  —  —  —  —  — 
Asset rationalization 325  —  155  —  —  —  —  — 
Legal settlement 100  —  —  —  —  —  —  — 
Business transformation costs —  176  —  —  —  —  —  — 
Non-strategic business shutdown —  158  —  —  —  —  —  — 
7,380  182  215  (123) (2,387) 437  (90) 927 
Consolidated Adjusted EBITDA $ 11,678  $ 12,238  $ 11,971  $ 11,902  $ 11,747  $ 12,218  $ 11,873  $ 12,032 
Consolidated Adjusted EBITDA - Year over year change % (0.6) %
Footnotes:
(1) Includes Amortization of acquisition-related intangible assets and a portion of the Non-strategic business shutdown, where applicable.
(2) Includes Pension and benefits remeasurement adjustments and Early debt redemption costs, where applicable.         
Consolidated EBITDA and Consolidated Adjusted EBITDA (LTM)
Unaudited 12 Mos. Ended 12/31/23 12 Mos. Ended 9/30/23 12 Mos. Ended 12/31/22
Consolidated Net Income $ 12,095  $ 21,366  $ 21,748 
  Add:
Provision for income taxes 4,892  6,249  6,523 
Interest expense 5,524  5,030  3,613 
Depreciation and amortization expense (1)
 17,624  17,326  17,099 
Consolidated EBITDA $ 40,135  $ 49,971  $ 48,983 
  Add/(subtract):
Other (income) expense, net (2)
 $ 313  $ (3,181) $ (1,373)
Equity in losses (earnings) of unconsolidated businesses 53  38  (44)
Severance charges 533  541  304 
Verizon Business Group goodwill impairment 5,841  —  — 
Asset rationalization 480  155  — 
Legal settlement 100  —  — 
Business transformation costs 176  176  — 
Non-strategic business shutdown 158  158  — 
7,654  (2,113) (1,113)
Consolidated Adjusted EBITDA $ 47,789  $ 47,858  $ 47,870 
Footnotes:
(1) Includes Amortization of acquisition-related intangible assets and a portion of the Non-strategic business shutdown, where applicable.
(2) Includes Pension and benefits remeasurement adjustments and Early debt redemption costs, where applicable.
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Verizon Communications Inc.



Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio
(dollars in millions)
Unaudited 12/31/23 9/30/23 12/31/22
Debt maturing within one year $ 12,973  $ 12,950  $ 9,963 
Long-term debt 137,701  134,441  140,676 
Total Debt 150,674  147,391  150,639 
Less Secured debt 22,183  20,951  20,008 
Unsecured Debt 128,491  126,440  130,631 
Less Cash and cash equivalents 2,065  4,210  2,605 
Net Unsecured Debt
 $ 126,426  $ 122,230  $ 128,026 
Consolidated Net Income (LTM) $ 12,095  $ 21,366  $ 21,748 
Consolidated Adjusted EBITDA (LTM) $ 47,789  $ 47,858  $ 47,870 
Unsecured Debt to Consolidated Net Income Ratio 10.6  x 5.9  x 6.0  x
Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio 2.6  x 2.6  x 2.7  x
Net Unsecured Debt - Quarter over quarter change $ 4,196 
Net Unsecured Debt - Year over year change $ (1,600)
Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio - Quarter over quarter change
 —  x
Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio - Year over year change (0.1) x


Adjusted Earnings per Common Share (Adjusted EPS)
(dollars in millions, except per share amounts)
Unaudited 3 Mos. Ended 12/31/23 3 Mos. Ended 12/31/22
Pre-tax Tax After-Tax Pre-tax Tax After-Tax
EPS $ (0.64) $ 1.56 
Amortization of acquisition-related intangible assets $ 227  $ (57) $ 170  0.04  $ 115  $ (34) $ 81  0.02 
Severance, pension and benefits charges (credits) 1,288  (319) 969  0.23  (2,214) 552  (1,662) (0.40)
Verizon Business Group goodwill impairment 5,841  (52) 5,789  1.37  —  —  —  — 
Asset rationalization 325  (80) 245  0.06  —  —  —  — 
Legal settlement 100  (25) 75  0.02  —  —  —  — 
$ 7,781  $ (533) $ 7,248  $ 1.72  $ (2,099) $ 518  $ (1,581) $ (0.38)
Adjusted EPS $ 1.08  $ 1.19 
Footnotes:
Adjusted EPS may not add due to rounding.
(dollars in millions, except per share amounts)
Unaudited 12 Mos. Ended 12/31/23 12 Mos. Ended 12/31/22
Pre-tax Tax After-Tax   Pre-tax Tax After-Tax  
EPS $ 2.75  $ 5.06 
Amortization of acquisition-related intangible assets $ 865  $ (219) $ 646  0.15  $ 826  $ (214) $ 612  0.15 
Severance, pension and benefits charges (credits) 1,525  (378) 1,147  0.27  (1,371) 339  (1,032) (0.25)
Verizon Business Group goodwill impairment 5,841  (52) 5,789  1.37  —  —  —  — 
Asset rationalization 480  (113) 367  0.09  —  —  —  — 
Legal settlement 100  (25) 75  0.02  —  —  —  — 
Business transformation costs 176  (45) 131  0.03  —  —  —  — 
Non-strategic business shutdown 179  (83) 96  0.02  —  —  —  — 
Early debt redemption costs —  —  —  —  1,241  (316) 925  0.22 
$ 9,166  $ (915) $ 8,251  $ 1.96  $ 696  $ (191) $ 505  $ 0.12 
Adjusted EPS $ 4.71  $ 5.18 
Footnotes:
Adjusted EPS may not add due to rounding.
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Verizon Communications Inc.


Free Cash Flow
(dollars in millions)
Unaudited 12 Mos. Ended 12/31/23 12 Mos. Ended 12/31/22
Net Cash Provided by Operating Activities $ 37,475  $ 37,141 
Capital expenditures (including capitalized software) (18,767) (23,087)
Free Cash Flow $ 18,708  $ 14,054 
Consolidated Operating Expenses Excluding Depreciation and Amortization and Special Items
(dollars in millions)
Unaudited 3 Mos. Ended 12/31/23 3 Mos. Ended 12/31/22
Consolidated Operating Expenses $ 34,530  $ 28,026 
Depreciation and amortization expense(1)
 4,516  4,218 
Severance charges 296  304 
Verizon Business Group goodwill impairment 5,841  — 
Asset rationalization 325  — 
Legal settlement 100  — 
Consolidated Operating Expenses Excluding Depreciation and Amortization and Special Items $ 23,452  $ 23,504 
Year over year change % (0.2) %
Footnotes:
(1) Includes Amortization of acquisition-related intangible assets and a portion of the Non-strategic business shutdown, where applicable.
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Verizon Communications Inc.
Non-GAAP Reconciliations - Segments
Segment EBITDA and Segment EBITDA Margin
Consumer
(dollars in millions)
Unaudited 3 Mos. Ended 12/31/23 3 Mos. Ended 12/31/22
Operating Income $ 7,035  $ 7,028 
Add Depreciation and amortization expense 3,344  3,111 
Segment EBITDA $ 10,379  $ 10,139 
Year over year change % 2.4  %
Total operating revenues $ 26,954  $ 26,770 
Operating Income Margin 26.1  % 26.3  %
Segment EBITDA Margin 38.5  % 37.9  %

Business
(dollars in millions)
Unaudited 3 Mos. Ended 12/31/23 3 Mos. Ended 12/31/22
Operating Income $ 443  $ 585 
Add Depreciation and amortization expense 1,164  1,098 
Segment EBITDA $ 1,607  $ 1,683 
Year over year change % (4.5) %
Total operating revenues $ 7,618  $ 7,900 
Operating Income Margin 5.8  % 7.4  %
Segment EBITDA Margin 21.1  % 21.3  %

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