What changed in this filing

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Item 1. Financial Statements

2024-07-25 compared with 2024-04-25 · 268 added, 140 removed, 799 unchanged (34% of the section changed)

3 unchanged sentences

and Subsidiaries

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(dollars in millions, except per share amounts) (unaudited) 2024 2023 2024 2023

3 unchanged sentences

Wireless equipment revenues

4,998 5,277 10,359 11,037

Total Operating Revenues 32,796 32,596 65,777 65,508

1 unchanged sentence

Cost of services (exclusive of items shown below)

6,904 6,986 13,871 14,064

Cost of wireless equipment

5,567 5,778 11,472 12,204

Selling, general and administrative expense

8,024 8,253 16,167 15,759

Depreciation and amortization expense

4,483 4,359 8,928 8,677

Total Operating Expenses 24,978 25,376 50,438 50,704

Operating Income 7,818 7,220 15,339 14,804

Equity in earnings (losses) of unconsolidated businesses ( 9 ) 9

Other income, net 198 114

Equity in losses of unconsolidated businesses ( 14 ) ( 33 ) ( 23 ) ( 24 )

Other income (expense), net ( 72 ) 210 126 324

Interest expense ( 1,698 ) ( 1,285 ) ( 3,333 ) ( 2,492 )

15 unchanged sentences

and Subsidiaries

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(dollars in millions) (unaudited) 2024 2023 2024 2023

2 unchanged sentences

Foreign currency translation adjustments, net of tax of $( 1 ), $ 1 , $( 6 ) and $ 4

— ( 6 ) ( 50 ) 20

Unrealized gain on cash flow hedges, net of tax of $( 7 ), $( 8 ), $( 18 ) and $( 15 )

Unrealized gain (loss) on fair value hedges, net of tax of $ 36 , $( 100 ), $( 32 ) and $ 3

( 104 ) 293 96 ( 9 )

Unrealized gain (loss) on marketable securities, net of tax of $ 0 , $ 0 , $ 1 and $( 1 )

( 1 ) ( 2 ) ( 3 ) 2

Defined benefit pension and postretirement plans, net of tax of $ 1 , $ 21 , $ 2 and $ 36

( 2 ) ( 54 ) ( 4 ) ( 115 )

Other comprehensive income (loss) attributable to Verizon ( 88 ) 256 93 ( 56 )

7 unchanged sentences

and Subsidiaries

At March 31, At December 31,

At June 30, At December 31,

(dollars in millions, except per share amounts) (unaudited) 2024 2023

51 unchanged sentences

and Subsidiaries

Three Months Ended

Six Months Ended

(dollars in millions) (unaudited) 2024 2023

6 unchanged sentences

Provision for expected credit losses 1,119 1,061

Equity in losses of unconsolidated businesses, net of dividends received 14 10

Equity in losses of unconsolidated businesses, inclusive of dividends received 33 49

Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses ( 3,572 ) ( 620 )

10 unchanged sentences

Proceeds from asset-backed long-term borrowings 5,828 3,705

Net proceeds from short-term commercial paper 2,347 342

Net proceeds from (repayments of) short-term commercial paper 603 ( 167 )

Repayments of long-term borrowings and finance lease obligations ( 5,719 ) ( 2,600 )

3 unchanged sentences

Net cash used in financing activities ( 7,062 ) ( 5,586 )

Increase (decrease) in cash, cash equivalents and restricted cash 411 ( 204 )

Increase in cash, cash equivalents and restricted cash 397 2,234

Cash, cash equivalents and restricted cash, beginning of period 3,497 4,111

13 unchanged sentences

Earnings Per Common Share

There were a total of approximately 3.7 million and 3.6 million outstanding dilutive securities, primarily consisting of performance stock units and restricted stock units, included in the computation of diluted earnings per common share for the three months ended March 31, 2024 and 2023, respectively .

There were a total of approximately 5.3 million and 4.5 million outstanding dilutive securities, primarily consisting of performance stock units and restricted stock units, included in the computation of diluted earnings per common share for the three and six months ended June 30, 2024, respectively.

There were a total of approximately 5.6 million and 4.6 million outstanding dilutive securities, primarily consisting of performance stock units and restricted stock units, included in the computation of diluted earnings per common share for the three and six months ended June 30, 2023, respectively .

Cash, Cash Equivalents and Restricted Cash

4 unchanged sentences

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

At March 31, At December 31, Increase

At June 30, At December 31, Increase / (Decrease)

(dollars in millions)

3 unchanged sentences

1,354 1,244 110

108 188 ( 80 )

Cash, cash equivalents and restricted cash $ 3,894 $ 3,497 $ 397

7 unchanged sentences

We have elected the practical expedient within Topic 842, to combine the lease and non-lease components for those customer arrangements under Topic 606 that involve customer premise equipment where we are the lessor.

During the three months ended March 31, 2024 and March 31, 2023, revenues from arrangements that were not accounted for under Topic 606 were approximately $ 724 million and $ 749 million, respectively.

During the three and six months ended June 30, 2024 revenues from arrangements that were not accounted for under Topic 606 were approximately $ 753 million and $ 1.5 billion,

respectively.

During the three and six months ended June 30, 2023, revenues from arrangements that were not accounted for under Topic 606 were approximately $ 754 million and $ 1.5 billion, respectively.

Remaining Performance Obligations

3 unchanged sentences

This situation primarily arises with respect to certain month-to-month service contracts.

At March 31, 2024, month-to-month service contracts represented approximately 95 % of our wireless postpaid contracts and approximately 94 % of our wireline Consumer and our Business Markets and Other contracts, compared to March 31, 2023, for which month-to-month service contracts represented approximately 94 % of our wireless postpaid contracts and 92 % of our wireline Consumer and our Business Markets and Other contracts .

At June 30, 2024, month-to-month service contracts represented approximately 95 % of both our wireless postpaid contracts and our wireline Consumer and our Business Markets and Other contracts, compared to June 30, 2023, for which month-to-month service contracts represented approximately 94 % of both our wireless postpaid contracts and our wireline Consumer and our Business Markets and Other 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, or 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).

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, or 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 thirty-six 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.

10 unchanged sentences

These contracts have varying terms spanning over approximately twenty-nine years ending in September 2053 and have aggregate contract minimum payments totaling $ 2.0 billion.

At March 31, 2024, the transaction price related to unsatisfied performance obligations that are expected to be recognized for the remainder of 2024, 2025 and thereafter was $ 21.1 billion, $ 23.2 billion and $ 13.3 billion, respectively.

At June 30, 2024, the transaction price related to unsatisfied performance obligations that are expected to be recognized for the remainder of 2024, 2025 and thereafter was $ 14.8 billion, $ 24.5 billion and $ 17.0 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.

4 unchanged sentences

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

At March 31, At December 31,

At June 30, At December 31,

(dollars in millions) 2024 2023

18 unchanged sentences

The contract liability balances are presented in our condensed consolidated balance sheets as Other current liabilities and Other liabilities.

Revenue recognized related to contract liabilities existing at January 1, 2024 and January 1, 2023 were $ 4.4 billion and $ 4.3 billion for the three months ended March 31, 2024 and March 31, 2023, respectively.

Revenues recognized related to contract liabilities existing at January 1, 2024 were $ 262 million and $ 4.7 billion for the three and six months ended June 30, 2024, respectively.

Revenues recognized related to contract liabilities existing at January 1, 2023 were $ 258 million and $ 4.6 billion for the three and six months ended June 30, 2023, respectively.

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

At March 31, At December 31,

At June 30, At December 31,

(dollars in millions) 2024 2023

25 unchanged sentences

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

At March 31, At December 31,

At June 30, At December 31,

(dollars in millions) 2024 2023

2 unchanged sentences

Total $ 5,409 $ 5,395

For the three months ended March 31, 2024 and March 31, 2023, we recognized expense of $ 829 million and $ 795 million, 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 six months ended June 30, 2024, we recognized expense of $ 829 million and $ 1.7 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 six months ended June 30, 2023, we recognized expense of $ 791 million and $ 1.6 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 were no impairment charges recognized for the three months ended March 31, 2024 or March 31, 2023.

There were no impairment charges recognized for the three and six months ended June 30, 2024 or June 30, 2023.

Acquisitions and Divestitures

2 unchanged sentences

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 $ 7.5 billion.

During the three months ended March 31, 2024 and March 31, 2023, we made payments of $ 269 million and $ 114 million, respectively, for obligations related to clearing costs and accelerated clearing incentives.

We expect to continue to make payments of approximately $ 100 million for the remaining obligations in 2024.

The final timing and amounts of these payments could differ based on the actual amount of incumbent holders’ reimbursement claims and the speed with which those claims are approved and processed.

During the six months ended June 30, 2024 and June 30, 2023, we made payments of $ 269 million and $ 114 million, respectively, for obligations related to clearing costs and accelerated clearing incentives.

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.

7 unchanged sentences

Contingent consideration payments were completed in January of 2024.

During the three months ended March 31, 2024 and March 31, 2023, Verizon made payments of $ 52 million and $ 102 million, respectively, related to the contingent consideration, which is reflected in Cash flows from financing activities in our condensed consolidated statements of cash flows.

During the six months ended June 30, 2024 and June 30, 2023, Verizon made payments of $ 52 million and $ 102 million, respectively, related to the contingent consideration, which are reflected in Cash flows from financing activities in our condensed consolidated statements of cash flows.

Wireless Licenses, Goodwill, and Other Intangible Assets

1 unchanged sentence

The carrying amounts of our Wireless licenses are as follows:

At March 31, At December 31,

At June 30, At December 31,

(dollars in millions) 2024 2023

Wireless licenses $ 156,291 $ 155,667

See Note 3 for additional information.

At March 31, 2024 and 2023, approximately $ 13.9 billion and $ 38.9 billion, respectively, of wireless licenses were under development for commercial service for which we were capitalizing interest costs.

We recorded approximately $ 180 million and $ 449 million of capitalized interest on wireless licenses for the three months ended March 31, 2024 and 2023, respectively.

During the three months ended March 31, 2024, we renewed various wireless licenses in accordance with FCC regulations.

At June 30, 2024 and 2023, approximately $ 11.8 billion and $ 38.4 billion, respectively, of wireless licenses were under development for commercial service for which we were capitalizing interest costs.

We recorded approximately $ 338 million and $ 905 million of capitalized interest on wireless licenses for the six months ended June 30, 2024 and 2023, respectively.

During the six months ended June 30, 2024, we renewed various wireless licenses in accordance with FCC regulations.

The average renewal period for these licenses was 10 years.

5 unchanged sentences

— ( 1 ) ( 1 )

Balance at March 31, 2024

Balance at June 30, 2024

$ 21,177 $ 1,665 $ 22,842

2 unchanged sentences

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

At March 31, 2024 At December 31, 2023

At June 30, 2024 At December 31, 2023

(dollars in millions) Gross

5 unchanged sentences

$ 4,238 $ ( 2,382 ) $ 1,856 $ 4,335 $ ( 2,193 ) $ 2,142

Non-network internal-use software ( 7 years)

Non-network internal-use software ( 3 to 7 years)

26,393 ( 18,776 ) 7,617 25,524 ( 17,949 ) 7,575

3 unchanged sentences

The amortization expense for Other intangible assets was as follows:

Three Months Ended

(dollars in millions) March 31,

Three Months Ended Six Months Ended

(dollars in millions) June 30, June 30,

2024 $ 706 $ 1,404

2023 653 1,300

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

3 unchanged sentences

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 the Company and its subsidiaries that occurred during the three months ended March 31, 2024.

The following tables show the significant transactions involving the senior unsecured debt securities of the Company and its subsidiaries that occurred during the three and six months ended June 30, 2024.

Tender Offers

(dollars in millions) Principal Amount Purchased Cash Consideration (1)

Three Months Ended March 31, 2024

Verizon 0.875 % - 3.250 % notes due 2025 - 2028

€ 1,981 $ 2,237

Three Months Ended March 31, 2024 total 2,237

Six Months Ended June 30, 2024 total $ 2,237

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

5 unchanged sentences

(dollars in millions) Principal Repaid/ Repurchased Amount Paid (1)

Three Months Ended March 31, 2024

Verizon 1.625 % notes due 2024

2 unchanged sentences

Open market repurchases of various Verizon notes 117 89

Total $ 2,028

Three Months Ended March 31, 2024 total 2,028

Three Months Ended June 30, 2024

Verizon 4.073 % notes due 2024

Open market repurchases of various Verizon notes $ 306 214

Three Months Ended June 30, 2024 total 796

Six Months Ended June 30, 2024 total $ 2,824

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

4 unchanged sentences

(dollars in millions) Principal Amount Issued Net Proceeds (1)

Three Months Ended March 31, 2024

Verizon 3.500 % notes due 2032

3 unchanged sentences

Verizon 5.500 % notes due 2054 (2)

Total $ 3,103

Three Months Ended March 31, 2024 total 3,103

Six Months Ended June 30, 2024 total $ 3,103

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

3 unchanged sentences

See Note 7 for additional information on cross currency swap transactions related to the issuances.

(2) An amount equal to the net proceeds from these notes 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 May 1, 2023 through the maturity date of the notes.

(2) An amount equal to the net proceeds from these notes is expected to be used to fund certain renewable energy projects, including new and existing investments made by us during the period from May 1, 2023 through the maturity date of the notes.

Commercial Paper Program

During the three months ended March 31, 2024, we issued $ 9.6 billion in commercial paper and we repaid $ 7.2 billion of commercial paper.

As of March 31, 2024, we had $ 2.4 billion of commercial paper outstanding.

These transactions are reflected within Cash flows from financing activities in our condensed consolidated statements of cash flows on a net basis.

During the six months ended June 30, 2024, we issued $ 22.4 billion in net proceeds and made $ 21.8 billion in principal repayments of commercial paper.

These transactions are reflected within Cash flows from financing activities in our condensed

consolidated statements of cash flows on a net basis.

As of June 30, 2024, we had $ 605 million principal amount outstanding for commercial paper.

Asset-Backed Debt

As of March 31, 2024 , the carrying value of our asset-backed debt was $ 23.3 billion.

As of June 30, 2024 , the carrying value of our asset-backed debt was $ 24.0 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).

3 unchanged sentences

Our asset-backed debt is secured by the transferred receivables and participation interest, and future collections on such receivables and underlying receivables related to such participation interest.

These receivables and participation interest 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 certain receivables and participation interest, 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

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.

4 unchanged sentences

The asset-backed debt issued is included in Debt maturing within one year and Long-term debt in our condensed consolidated balance sheets.

During the three months ended March 31, 2024 , we completed the following ABS Notes transactions:

During the six months ended June 30, 2024 , we completed the following ABS Notes transactions:

(dollars in millions) Interest Rates % Expected Weighted-average Life to Maturity (in years) Principal Amount Issued

8 unchanged sentences

C Junior class notes 5.320 4.92 31

January 2024 total 1,915

Series 2024-3

A-1a Senior class notes 5.340 2.99 605

A-1b Senior class notes Compounded SOFR + 0.580 (1)

B Junior class notes 5.540 2.99 59

C Junior class notes 5.730 2.99 36

April 2024 total 875

Series 2024-4

A-1a Senior class notes 5.210 1.98 289

A-1b Senior class notes Compounded SOFR + 0.550 (1)

B Junior class notes 5.400 1.98 41

C Junior class notes 5.600 1.98 25

Series 2024-5

A Senior class notes 5.000 4.98 512

B Junior class notes 5.250 4.98 39

C Junior class notes 5.490 4.98 24

June 2024 total 1,176

Total $ 3,966

(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 payment made in March 2024 was 5.319 %.

Under the terms of each series of ABS Notes outstanding as of March 31, 2024, there is a revolving period of up to two years , three years , or five years , as applicable, during which we may transfer additional receivables to the ABS Entity.

During the three months ended March 31, 2024 , we made aggregate principal repayments of $ 508 million in connection with an anticipated redemption of ABS Notes and notes that have entered the amortization period, including payments in connection with any note redemptions.

In April 2024, we issued $ 875 million aggregate principal amount of senior and junior ABS Notes, with a blended interest rate of approximately 5.370 %, through an ABS Entity.

Compounded SOFR for the interest payment made in June 2024 was 5.333 %.

Under the terms of each series of ABS Notes outstanding as of June 30, 2024, there is a revolving period of up to two years , three years , or five years , as applicable, during which we may transfer additional receivables to the ABS Entity.

During the six months ended June 30, 2024 , we made aggregate principal repayments of $ 2.2 billion in connection with anticipated redemptions of ABS Notes and notes that have entered the amortization period, including payments in connection with any note redemptions.

ABS Financing Facilities

Under the two loan agreements outstanding in connection with the ABS Financing Facility originally entered into in 2021 and most recently renewed in 2023 (2021 ABS Financing Facility), we prepaid an aggregate of $ 900 million in January 2024 and borrowed an additional $ 600 million in March 2024 .

The aggregate outstanding balance under the 2021 ABS Financing Facility was $ 8.2 billion as of March 31, 2024.

In April 2024, we prepaid an aggregate of $ 900 million under a loan agreement outstanding in connection with the 2021 ABS Financing Facility.

Under the loan agreement outstanding in connection with the ABS Financing Facility originally entered into in 2022 and most recently renewed in 2023 (2022 ABS Financing Facility), t he aggregate outstanding balance was $ 3.0 billion as of March 31, 2024 .

Under the two loan agreements outstanding in connection with the ABS Financing Facility originally entered into in 2021 and most recently renewed in 2023 (2021 ABS Financing Facility), we prepaid an aggregate of $ 900 million in January 2024, borrowed an additional $ 600 million in March 2024, prepaid an aggregate of $ 900 million in April 2024 and borrowed an additional $ 225 million in June 2024.

The aggregate outstanding balance under the 2021 ABS Financing Facility was $ 7.5 billion as of June 30, 2024.

Under the loan agreement outstanding in connection with the ABS Financing Facility originally entered into in 2022 and most recently renewed in 2023 (2022 ABS Financing Facility), we borrowed an additional $ 1.1 billion in June 2024.

T he aggregate outstanding balance under the 2022 ABS Financing Facility was $ 4.0 billion as of June 30, 2024 .

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.

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:

10 unchanged sentences

Long-Term Credit Facilities

At March 31, 2024

At June 30, 2024

(dollars in millions) Maturities Facility Capacity Unused Capacity Principal Amount Outstanding

6 unchanged sentences

The revolving credit facility provides for the issuance of letters of credit.

As of March 31, 2024 , there have been no drawings against the revolving credit facility since its inception.

(2) During the three months ended March 31, 2024, there were no drawings from these facilities.

During the three months ended March 31, 2023, we drew down $ 515 million from these facilities.

As of June 30, 2024 , there have been no drawings against the revolving credit facility since its inception.

(2) During the six months ended June 30, 2024, there were no drawings from these facilities.

During the six months ended June 30, 2023, we drew down $ 515 million from these facilities.

Borrowings under certain of these facilities are repaid semi-annually in equal installments up to the applicable maturity dates.

3 unchanged sentences

Non-Cash Transactions

During the three months ended March 31, 2024 and 2023, we financed, primarily through alternative financing arrangements, the purchase of approximately $ 463 million and $ 284 million, respectively, of long-lived assets consisting primarily of network equipment.

As of March 31, 2024 and December 31, 2023 , $ 2.4 billion and $ 2.2 billion, respectively, relating to these financing arrangements, including those entered into in prior years and liabilities assumed through acquisitions, remained outstanding.

During the six months ended June 30, 2024 and 2023, we financed, primarily through alternative financing arrangements, the purchase of approximately $ 941 million and $ 719 million, respectively, of long-lived assets consisting primarily of network equipment.

As of June 30, 2024 and December 31, 2023 , $ 2.4 billion and $ 2.2 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.

Net Debt Extinguishment Gains

During the three months ended March 31, 2024 and 2023 , we recorded net debt extinguishment gains of $ 110 million and $ 70 million, respectively.

The net gains are recorded in Other income, net in our condensed consolidated statements of income.

Additionally, during the three months ended March 31, 2024 and 2023, we recorded insignificant transaction fees and interest expense as a result of the debt extinguishments.

The total debt extinguishment gains are reflected within Other, net cash flow from operating activities, and the cash payments to extinguish the debt are reflected within Other, net cash flow from financing activities in our condensed consolidated statements of cash flows.

During the three months ended June 30, 2024 and 2023 , we recorded net debt extinguishment gains of $ 89 million and $ 69 million, respectively.

During the six months ended June 30, 2024 and 2023 , we recorded net debt extinguishment gains of

$ 199 million and $ 139 million, respectively.

The net gains are recorded in Other income (expense), net in our condensed consolidated statements of income.

The total non-cash debt extinguishment gains are reflected within Other, net cash flow from operating activities, and the cash payments to extinguish the debt are reflected within Other, net cash flow from financing activities in our condensed consolidated statements of cash flows.

We guarantee the debentures of our operating telephone company subsidiaries.

As of March 31, 2024 , $ 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 the Company.

As of June 30, 2024 , $ 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 the Company.

Debt Covenants

2 unchanged sentences

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

At March 31, 2024

(dollars in millions) Device payment plan agreement Wireless

service Other receivables (1)

At June 30, 2024

(dollars in millions) Device payment plan agreement Wireless service

Other receivables (1)

Accounts receivable $ 14,773 $ 5,935 $ 5,994 $ 26,702

2 unchanged sentences

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

Included in Other assets and Accounts receivable, net at March 31, 2024 and December 31, 2023, are net device payment plan agreement receivables and net wireless service receivables of $ 27.6 billion and $ 26.1 billion, respectively, which have been transferred to ABS Entities and continue to be reported in our condensed consolidated balance sheets.

Included in Accounts receivable, net at March 31, 2024 and December 31, 2023, are net other receivables of $ 767 million and $ 911 million, respectively, on which a participation interest has been transferred to ABS Entities and continue to be reported in our condensed consolidated balance sheets.

Included in Other assets and Accounts receivable, net at June 30, 2024, are net device payment plan agreement receivables, net wireless service receivables and net other receivables of $ 28.6 billion, which have been transferred to ABS Entities and continue to be reported in our condensed consolidated balance sheet.

Included in Other assets and Accounts receivable, net at December 31, 2023, are net device payment plan agreement receivables and net wireless service receivables of $ 26.1 billion, which have been transferred to ABS Entities and continue to be reported in our condensed consolidated balance sheet.

Included in Accounts receivable, net at June 30, 2024 and December 31, 2023, are net other receivables of $ 749 million and $ 911 million, respectively, on which a participation interest has been transferred to ABS Entities and continue to be reported in our condensed consolidated balance sheets.

See Note 5 for additional information.

6 unchanged sentences

The following table displays both the current and non-current portions of device payment plan agreement receivables, net, recognized in our condensed consolidated balance sheets:

At March 31, At December 31,

At June 30, At December 31,

(dollars in millions) 2024 2023

17 unchanged sentences

Under these types of promotions, the customer receives a credit for the value of the trade-in device.

At March 31, 2024 and December 31, 2023, the amount of trade-in liability was $ 522 million and $ 566 million, respectively.

At June 30, 2024 and December 31, 2023, the amount of trade-in liability was $ 421 million and $ 566 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.

18 unchanged sentences

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, and gross write-offs recorded, as of and for the three months ended March 31, 2024, by credit quality indicator and year of origination:

The following table presents device payment plan agreement receivables, at amortized cost, and gross write-offs recorded, as of and for the six months ended June 30, 2024, by credit quality indicator and year of origination:

Year of Origination (1)

9 unchanged sentences

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

The data presented in the table above was last updated on March 31, 2024.

The data presented in the table above was last updated on June 30, 2024.

We assess indicators for the quality of our wireless service receivables portfolio as one overall pool.

The following table presents wireless service receivables, at amortized cost, and gross write-offs recorded, as of and for the three months ended March 31, 2024, by year of origination:

The following table presents wireless service receivables, at amortized cost, and gross write-offs recorded, as of and for the six months ended June 30, 2024, by year of origination:

Year of Origination

2 unchanged sentences

Gross write-offs 89 179 268

The data presented in the table above was last updated on March 31, 2024.

The data presented in the table above was last updated on June 30, 2024.

Allowance for Credit Losses

10 unchanged sentences

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

(dollars in millions) Device Payment

Plan Agreement Receivables (1)

(dollars in millions) Device Payment Plan Agreement Receivables (1)

Wireless Service Plan Receivables

4 unchanged sentences

Recoveries collected 20 23

Balance at March 31, 2024 $ 1,194 $ 218

Balance at June 30, 2024 $ 1,210 $ 229

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

1 unchanged sentence

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.

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.

8 unchanged sentences

Recurring Fair Value Measurements

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of March 31, 2024:

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2024:

(dollars in millions) Level 1 (1)

6 unchanged sentences

Cross currency swaps — 518 — 518

Interest rate caps — 5 — 5

Total $ — $ 846 $ — $ 846

7 unchanged sentences

Cross currency swaps — 1,948 — 1,948

Interest rate caps — 5 — 5

Total $ — $ 7,621 $ — $ 7,621

33 unchanged sentences

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 both March 31, 2024 and December 31, 2023, the carrying amount of our investments without readily determinable fair values was $ 764 million.

During the three months ended March 31, 2024, there were insignificant adjustments due to observable price changes and there were insignificant amounts of impairment charges.

As of March 31, 2024, cumulative adjustments due to observable price changes and impairment charges were $ 209 million and $ 99 million, respectively.

As of June 30, 2024 and December 31, 2023, the carrying amount of our investments without readily determinable fair values was $ 750 million and $ 764 million, respectively.

During both the three and six months ended June 30, 2024, there were insignificant adjustments due to observable price changes and there were insignificant amounts of impairment charges.

As of June 30, 2024, cumulative adjustments due to observable price changes and impairment charges were $ 209 million and $ 115 million, respectively.

Verizon had a liability for contingent consideration related to its acquisition of TracFone, completed in November 2021.

3 unchanged sentences

Contingent consideration payments were completed in January of 2024.

During the three months ended March 31, 2024 and March 31, 2023 , we made payments of $ 52 million and $ 102 million, respectively, related to the contingent consideration.

During the six months ended June 30, 2024 and June 30, 2023 , we made payments of $ 52 million and $ 102 million, respectively, related to the contingent consideration.

See Note 3 for additional information.

9 unchanged sentences

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

(dollars in millions) Carrying

Amount Level 1 Level 2 Level 3 Total

At March 31, 2024 $ 149,515 $ 86,574 $ 58,724 $ — $ 145,298

(dollars in millions) Carrying Amount Level 1 Level 2 Level 3 Total

At June 30, 2024 $ 147,047 $ 85,231 $ 56,030 $ — $ 141,261

At December 31, 2023 148,583 86,806 58,804 — 145,610

4 unchanged sentences

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

At March 31, At December 31,

At June 30, At December 31,

(dollars in millions) 2024 2023

3 unchanged sentences

The following tables summarize the activities of our designated derivatives:

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(dollars in millions) 2024 2023 2024 2023

2 unchanged sentences

Notional value settled — — — —

Pre-tax gain (loss) recognized in Interest expense 2 ( 1 )

Pre-tax gain recognized in Interest expense 1 2 3 1

Cross Currency Swaps:

2 unchanged sentences

Pre-tax gain/(loss) on cross currency swaps recognized in Interest expense

( 92 ) 370 ( 834 ) 725

Pre-tax gain/(loss) on hedged debt recognized in Interest expense

92 ( 370 ) 834 ( 725 )

Excluded components recognized in Other comprehensive income (loss)

( 116 ) 420 166 42

Initial value of the excluded component amortized into Interest expense 24 27 50 54

Three Months Ended

Treasury Rate Locks:

Notional value entered into — 500 — 500

Notional value settled — 500 — 500

Pre-tax gain recognized in Other comprehensive income (loss)

Six Months Ended

(dollars in millions) 2024 2023

Other, net Cash Flows from Operating Activities:

Cash received for settlement of treasury rate locks $ — $ 5

Other, net Cash Flows from Financing Activities:

2 unchanged sentences

The cumulative amounts exclude cumulative basis adjustments related to foreign exchange risk.

At March 31, At December 31,

At June 30, At December 31,

(dollars in millions) 2024 2023

16 unchanged sentences

We present exchange gains and losses from the conversion of foreign currency denominated debt as a part of Interest expense.

During the three months ended March 31, 2024 and March 31, 2023 , these amounts completely offset each other and no net gain or loss was recorded.

During both the three and six months ended June 30, 2024 and June 30, 2023 , 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 income (loss).

4 unchanged sentences

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.

During the three months ended March 31, 2024 and March 31, 2023 , the amortization of the initial value of the excluded component completely offset the amortization related to the amount remaining in Other comprehensive income (loss) related to cash flow hedges.

During both the three and six months ended June 30, 2024 and June 30, 2023 , the amortization of the initial value of the excluded component completely offset the amortization related to the amount remaining in Other comprehensive income (loss) related to cash flow hedges.

See Note 9 for additional information.

We estimate that $ 92 million will be amortized into Interest expense within the next 12 months.

Treasury Rate Locks

We have entered into treasury rate locks designated as cash flow hedges to mitigate our interest rate risk on future transactions.

We recognize gains and losses resulting from interest rate movements in Other comprehensive income (loss) .

Net Investment Hedges

1 unchanged sentence

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 March 31, 2024 and December 31, 2023.

The notional amount of Euro-denominated debt designated as a net investment hedge was € 750 million as of both June 30, 2024 and December 31, 2023.

Undesignated Derivatives

1 unchanged sentence

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

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(dollars in millions) 2024 2023 2024 2023

2 unchanged sentences

Notional value settled 2,670 2,770 5,730 5,365

Pre-tax gain (loss) recognized in Other income, net ( 22 ) 10

Pre-tax gain (loss) recognized in Other income (expense), net

( 1 ) 12 ( 23 ) 22

Foreign Exchange Forwards

5 unchanged sentences

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 March 31, 2024, we did no t hold any collateral.

At March 31, 2024, we posted $ 1.8 billion of collateral related to derivative contracts under collateral exchange agreements, which was recorded as Prepaid expenses and other in our condensed consolidated balance sheet.

At June 30, 2024, we did no t hold any collateral.

At June 30, 2024, we posted $ 1.8 billion of collateral related to derivative contracts under collateral exchange agreements, which was recorded as Prepaid expenses and other in our condensed consolidated balance sheet.

At December 31, 2023, we did no t hold any collateral.

4 unchanged sentences

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, net.

These estimates are updated in the fourth quarter or upon a remeasurement event, to reflect actual return on plan assets and updated actuarial assumptions.

4 unchanged sentences

Pension Health Care and Life

Three Months Ended March 31, 2024 2023 2024 2023

Three Months Ended June 30, 2024 2023 2024 2023

Service cost - Cost of services $ 39 $ 45 $ 11 $ 12

4 unchanged sentences

Interest cost 112 188 136 136

Remeasurement gain, net ( 73 ) — — —

Remeasurement loss, net 136 — — —

Other components $ 136 $ ( 37 ) $ 97 $ 24

Total $ 181 $ 15 $ 110 $ 38

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, net.

During the three months ended March 31, 2024, we updated the expected return on plan assets assumption for our pension plans from 7.50 % at December 31, 2023 to 8.00 % based upon the expected market returns from the March 31, 2024 asset allocation.

(dollars in millions)

Pension Health Care and Life

Six Months Ended June 30, 2024 2023 2024 2023

Service cost - Cost of services $ 80 $ 91 $ 22 $ 23

Service cost - Selling, general and administrative expense 13 14 4 4

Service cost $ 93 $ 105 $ 26 $ 27

Amortization of prior service cost (credit) $ 56 $ 56 $ ( 64 ) $ ( 209 )

Expected return on plan assets ( 348 ) ( 506 ) ( 14 ) ( 15 )

Interest cost 269 376 271 272

Remeasurement loss, net 63 — — —

Other components $ 40 $ ( 74 ) $ 193 $ 48

Total $ 133 $ 31 $ 219 $ 75

During the six months ended June 30, 2024, we updated the expected return on plan assets assumption for our pension plans from 7.50 % at December 31, 2023 to 8.00 % based upon the expected market returns from the March 31, 2024 asset allocation.

Pension Annuitization

On February 29, 2024, we entered into two separate commitment agreements, one by and between the Company, State Street Global Advisors Trust Company (“State Street”), as independent fiduciary of the Verizon Management Pension Plan and Verizon Pension Plan for Associates (the “Pension Plans”), and The Prudential Insurance Company of America (“Prudential”), and one by and between the Company, State Street and RGA Reinsurance Company (“RGA”), under which the Pension Plans purchased

nonparticipating single premium group annuity contracts from Prudential and RGA, respectively, to settle approximately $ 5.9 billion of benefit liabilities of the Pension Plans.

On February 29, 2024, we entered into two separate commitment agreements, one by and between the Company, State Street Global Advisors Trust Company ("State Street"), as independent fiduciary of the Verizon Management Pension Plan and Verizon Pension Plan for Associates (the "Pension Plans"), and The Prudential Insurance Company of America ("Prudential"), and one by and between the Company, State Street and RGA Reinsurance Company ("RGA"), under which the Pension Plans purchased nonparticipating single premium group annuity contracts from Prudential and RGA, respectively, to settle approximately $ 5.9 billion of benefit liabilities of the Pension Plans.

The purchase of the group annuity contracts closed on March 6, 2024.

8 unchanged sentences

Severance Payments

During the three months ended March 31, 2024, we paid severance benefits of $ 118 million.

At March 31, 2024, we had a remaining severance liability of $ 456 million, a portion of which includes future contractual payments to separated employees.

During the three and six months ended June 30, 2024, we paid severance benefits of $ 60 million and $ 178 million, respectively.

At June 30, 2024, we had a remaining severance liability of $ 402 million, a portion of which includes future contractual payments to separated employees.

Employer Contributions

During the three months ended March 31, 2024, we made discretionary contributions to the Pension Plans in the aggregate amount of $ 365 million.

During the three months ended March 31, 2023, we made no contributions to our qualified pension plans.

During the three months ended March 31, 2024 and March 31, 2023, we made insignificant contributions to our nonqualified pension plans.

During the six months ended June 30, 2024, we made discretionary contributions to the Pension Plans in the aggregate amount of $ 365 million.

During the six months ended June 30, 2023, we made a discretionary contribution to one of our qualified pension plans in the amount of $ 200 million.

During both the three and six months ended June 30, 2024 and June 30, 2023, we made insignificant contributions to our nonqualified pension plans.

No mandatory qualified pension plans contributions are expected or required through December 31, 2024.

No significant changes are expected with respect to the nonqualified pension and other postretirement benefit plans contributions in 2024.

Remeasurement gain, net

Remeasurement loss, net

During the three and six months ended June 30, 2024, we recorded a net pre-tax remeasurement loss of $ 136 million and $ 63 million, respectively, in our pension plans triggered by settlements.

During the three months ended June 30, 2024, we recorded a net pre-tax remeasurement loss of $ 136 million in our pension plans triggered by settlements.

The remeasurement loss was primarily driven by a $ 245 million charge resulting from the difference between our estimated and actual return on assets, partially offset by a credit of $ 109 million due to changes in our discount rate assumption used to determine the current year liabilities of our pension plans.

During the three months ended March 31, 2024, we recorded a net pre-tax remeasurement gain of $ 73 million in our pension plans due to a net pre-tax settlement gain of $ 200 million resulting from the pension annuitization transaction discussed above, partially offset by a net pre-tax remeasurement loss of $ 127 million triggered by settlements.

The net pre-tax remeasurement loss recorded for the three months ended March 31, 2024, was primarily driven by a $ 613 million charge resulting from the difference between our estimated and actual return on assets, partially offset by a credit of $ 486 million due to changes in our discount rate assumption used to determine the current year liabilities of our pension plans.

2024 Voluntary Separation Program

In June 2024, we announced and opened a Voluntary Separation Program for select U.S.-based management employees.

Management at its discretion will accept volunteers for separation based on the needs of the business, and these employees will be notified in August 2024.

We expect to record a severance charge related to the program in the third quarter of 2024, which could be significant.

The ultimate financial statement impact will be based on the number of volunteers accepted.

Equity and Accumulated Other Comprehensive Loss

Changes in the components of Total equity were as follows:

Three Months Ended March 31,

Three Months Ended June 30,

(dollars in millions, except per share amounts, and shares in thousands) Shares Amount Shares Amount

10 unchanged sentences

( 2,803 ) ( 2,743 )

Balance at end of period 86,504 86,448

Accumulated Other Comprehensive Loss

Balance at beginning of period attributable to Verizon ( 1,199 ) ( 2,177 )

Foreign currency translation adjustments — ( 6 )

Unrealized gain on cash flow hedges 19 25

Unrealized gain (loss) on fair value hedges ( 104 ) 293

Unrealized loss on marketable securities ( 1 ) ( 2 )

Defined benefit pension and postretirement plans ( 2 ) ( 54 )

Other comprehensive income (loss) ( 88 ) 256

Balance at end of period attributable to Verizon ( 1,287 ) ( 1,921 )

Treasury Stock

Balance at beginning of period ( 82,179 ) ( 3,602 ) ( 87,442 ) ( 3,832 )

Employee plans 265 12 48 2

Balance at end of period ( 81,914 ) ( 3,590 ) ( 87,394 ) ( 3,830 )

Deferred Compensation-ESOPs and Other

Balance at beginning of period 421 397

Restricted stock equity grant 173 150

Amortization ( 17 ) ( 3 )

Balance at end of period 577 544

Noncontrolling Interests

Balance at beginning of period 1,392 1,336

Total comprehensive income 109 118

Distributions and other ( 134 ) ( 145 )

Balance at end of period 1,367 1,309

Total Equity $ 97,539 $ 96,502

Six Months Ended June 30,

(dollars in millions, except per share amounts, and shares in thousands) Shares Amount Shares Amount

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 13,631 13,420

Other ( 92 ) 103

Balance at end of period 13,539 13,523

Retained Earnings

Balance at beginning of period 82,915 82,380

Net income attributable to Verizon 9,195 9,557

Dividends declared ($ 1.3300 , $ 1.3050 per share)

( 5,602 ) ( 5,489 )

Other ( 4 ) —

Balance at end of period 86,504 86,448

Accumulated Other Comprehensive Loss

23 unchanged sentences

Total Equity $ 97,539 $ 96,502

Verizon did not repurchase any shares of the Company's common stock through its previously authorized share buyback program during the three months ended March 31, 2024.

At March 31, 2024, 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 shareholder plans, including 5 million shares of common stock issued from treasury stock during the three months ended March 31, 2024.

Verizon did not repurchase any shares of the Company's common stock through its previously authorized share buyback program during the six months ended June 30, 2024.

At June 30, 2024, 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 shareholder plans, including 5.3 million shares of common stock issued from treasury stock during the six months ended June 30, 2024.

Accumulated Other Comprehensive Loss

1 unchanged sentence

(dollars in millions) Foreign

adjustments Unrealized gain (loss) on cash flow hedges Unrealized gain (loss) on fair value hedges Unrealized loss on marketable securities Defined benefit pension and postretirement plans Total

currency translation adjustments Unrealized gain (loss) on cash flow hedges Unrealized gain (loss) on fair value hedges Unrealized loss on marketable securities Defined benefit pension and postretirement plans Total

Balance at January 1, 2024 $ ( 636 ) $ ( 1,062 ) $ 105 $ ( 2 ) $ 215 $ ( 1,380 )

3 unchanged sentences

Net other comprehensive income (loss) ( 50 ) 54 96 ( 3 ) ( 4 ) 93

Balance at March 31, 2024 $ ( 686 ) $ ( 1,027 ) $ 305 $ ( 4 ) $ 213 $ ( 1,199 )

Balance at June 30, 2024 $ ( 686 ) $ ( 1,008 ) $ 201 $ ( 5 ) $ 211 $ ( 1,287 )

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 gain (loss) on fair value hedges in the table above are included in Other income, net and Interest expense in our condensed consolidated statements of income.

The amounts reclassified to net income related to unrealized gain (loss) on cash flow hedges and unrealized gain (loss) on fair value hedges in the table above are included in Other income (expense), net and Interest expense in our condensed consolidated statements of income.

See Note 7 for additional information.

The amounts reclassified to net income related to unrealized loss on marketable securities and defined benefit pension and postretirement plans in the table above are included in Other income, net in our condensed consolidated statements of income.

The amounts reclassified to net income related to unrealized loss on marketable securities and 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.

10 unchanged sentences

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.

Business Group Our Business segment provides wireless and wireline communications services and products, including FWA broadband, 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 provide these products and services to businesses, government customers and wireless and wireline carriers across the U.S.

8 unchanged sentences

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

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(dollars in millions) 2024 2023 2024 2023

2 unchanged sentences

Wireless equipment

4,143 4,430 8,633 9,308

1,521 1,435 3,038 2,909

Total Consumer

2 unchanged sentences

Business Markets and Other

3,199 3,104 6,389 6,203

Wholesale 547 587 1,137 1,186

3 unchanged sentences

Consumer $ 55 $ 52 $ 107 $ 101

Business 9 8 18 17

Total reportable segments $ 64 $ 60 $ 125 $ 118

1 unchanged sentence

Consumer $ 24,927 $ 24,558 $ 49,984 $ 49,415

7,300 7,483 14,676 14,977

Total reportable segments $ 32,227 $ 32,041 $ 64,660 $ 64,392

4 unchanged sentences

(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 recognized 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 were approximately $ 6.5 billion and $ 871 million, respectively, for the three months ended March 31, 2024, and were approximately $ 6.6 billion and $ 882 million, respectively, for the three months ended March 31, 2023.

(2) Service and other revenues included in our Business segment were approximately $ 6.4 billion and $ 6.6 billion for the three months ended June 30, 2024 and 2023, respectively, and $ 13.0 billion and $ 13.2 billion for the six months ended June 30, 2024 and 2023, respectively.

Wireless equipment revenues included in our Business segment were $ 855 million and $ 847 million for the three months ended June 30, 2024 and 2023, respectively, and $ 1.7 billion for both the six months ended June 30, 2024 and 2023.

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

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(dollars in millions) 2024 2023 2024 2023

3 unchanged sentences

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

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(dollars in millions) 2024 2023 2024 2023

5 unchanged sentences

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

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(dollars in millions) 2024 2023 2024 2023

3 unchanged sentences

633 621 1,244 1,238

( 64 ) ( 66 ) ( 127 ) ( 122 )

Total consolidated operating revenues $ 32,796 $ 32,596 $ 65,777 $ 65,508

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

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(dollars in millions) 2024 2023 2024 2023

1 unchanged sentence

Corporate and other ( 277 ) ( 344 ) ( 413 ) ( 348 )

Severance charges — ( 237 ) — ( 237 )

Other components of net periodic benefit charges (Note 8) ( 9 ) ( 62 ) ( 17 ) ( 124 )

Legacy legal matter

— — ( 106 ) —

Total consolidated operating income 7,818 7,220 15,339 14,804

Equity in earnings (losses) of unconsolidated businesses ( 9 ) 9

Other income, net 198 114

Equity in losses of unconsolidated businesses ( 14 ) ( 33 ) ( 23 ) ( 24 )

Other income (expense), net ( 72 ) 210 126 324

Interest expense ( 1,698 ) ( 1,285 ) ( 3,333 ) ( 2,492 )

Income Before Provision For Income Taxes $ 6,034 $ 6,112 $ 12,109 $ 12,612

No single customer accounted for more than 10% of our total operating revenues during the three months ended March 31, 2024 or 2023.

No single customer accounted for more than 10% of our total operating revenues during the three and six months ended June 30, 2024 or 2023.

The chief operating decision maker does not review disaggregated assets on a segment basis;

3 unchanged sentences

We maintain a voluntary supplier finance program with a financial institution which provides certain suppliers the option, at their sole discretion, to participate in the program and sell their receivables due from Verizon to the financial institution on a non-recourse basis.

As of March 31, 2024 and December 31, 2023, $ 654 million and $ 817 million, respectively, remained as confirmed obligations outstanding related to suppliers participating in the supplier finance program.

As of June 30, 2024 and December 31, 2023, $ 638 million and $ 817 million, respectively, remained as confirmed obligations outstanding related to suppliers participating in the supplier finance program.

Commitments and Contingencies

12 unchanged sentences

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.

These cases have progressed to various stages and a small number have gone to trial or 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.

As of March 31, 2024, Verizon had 27 renewable energy purchase agreements (REPAs) with third parties.

As of June 30, 2024, Verizon had 27 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 of 12 to 20 years from the commencement of the facility's entry into commercial operation.

Fifteen of the facilities have entered into commercial operation, and the remainder are under development.

Sixteen 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.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements