What changed in this filing

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Item 1. Financial Statements

2024-10-25 compared with 2024-07-25 · 224 added, 156 removed, 911 unchanged (29% of the section changed)

3 unchanged sentences

and Subsidiaries

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

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

17 unchanged sentences

Equity in losses of unconsolidated businesses ( 24 ) ( 18 ) ( 47 ) ( 42 )

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

Other income, net 72 170 198 494

Interest expense ( 1,672 ) ( 1,433 ) ( 5,005 ) ( 3,925 )

15 unchanged sentences

and Subsidiaries

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

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

19 unchanged sentences

and Subsidiaries

At June 30, At December 31,

At September 30, At December 31,

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

51 unchanged sentences

and Subsidiaries

Six Months Ended

Nine Months Ended

September 30,

(dollars in millions) (unaudited) 2024 2023

19 unchanged sentences

Proceeds from asset-backed long-term borrowings 8,229 4,656

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

Net proceeds from short-term commercial paper — 333

Repayments of long-term borrowings and finance lease obligations ( 6,623 ) ( 5,568 )

16 unchanged sentences

For a more complete discussion of significant accounting policies and certain other information, you should refer to the financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023.

These financial statements reflect all adjustments that are necessary for a fair presentation of results of operations and financial condition for the interim periods shown, including normal recurring accruals and other items.

These financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of results of operations and financial condition for the interim periods shown.

The results for the interim periods are not necessarily indicative of results for the full year.

The condensed consolidated financial statements include our controlled subsidiaries, as well as variable interest entities (VIE) where we are deemed to be the primary beneficiary.

All significant intercompany accounts and transactions have been eliminated.

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

Earnings Per Common Share

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 .

There were a total of approximately 4.6 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 nine months ended September 30, 2024, respectively.

There were a total of approximately 3.4 million and 4.2 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 nine months ended September 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 June 30, At December 31, Increase / (Decrease)

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

(dollars in millions)

5 unchanged sentences

Cash, cash equivalents and restricted cash $ 5,387 $ 3,497 $ 1,890

Vertical Bridge Transaction

On September 27, 2024, Verizon entered into an agreement with Vertical Bridge REIT, LLC (Vertical Bridge) pursuant to which Vertical Bridge will obtain the exclusive rights to lease, operate and manage over 6,000 wireless towers from subsidiaries of Verizon.

The transaction is structured as a prepaid lease with an upfront payment of approximately $ 2.8 billion.

Under the terms of the leases, Vertical Bridge will have exclusive rights to lease, operate and manage the towers over an average term of approximately 30 years, and will have an option to acquire the towers at the end of the lease terms.

Verizon will lease back capacity on the towers from Vertical Bridge for an initial term of 10 years, with eight optional renewal terms of five years each, subject to certain early termination rights.

This transaction is expected to close by the end of 2024, subject to customary closing conditions.

Verizon plans to account for the upfront payment as a financing obligation and prepaid rent.

Revenues and Contract Costs

6 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 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.

During the three and nine months ended September 30, 2024 revenues from arrangements that were not accounted for under Topic 606 were approximately $ 809 million and $ 2.3 billion, respectively.

During the three and nine months ended September 30, 2023, revenues from arrangements that were not accounted for under Topic 606 were approximately $ 693 million and $ 2.2 billion, respectively.

Remaining Performance Obligations

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

At September 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 September 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 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.

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These contracts have varying terms spanning over approximately twenty-nine years ending in September 2053 and have aggregate contract minimum payments totaling $ 1.8 billion.

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.

At September 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 $ 7.7 billion, $ 27.1 billion and $ 23.1 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.

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

At June 30, At December 31,

At September 30, At December 31,

(dollars in millions) 2024 2023

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

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.

Revenues recognized related to contract liabilities existing at January 1, 2024 were $ 206 million and $ 4.9 billion for the three and nine months ended September 30, 2024, respectively.

Revenues recognized related to contract liabilities existing at January 1, 2023 were $ 202 million and $ 4.8 billion for the three and nine months ended September 30, 2023, respectively.

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

At June 30, At December 31,

At September 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 June 30, At December 31,

At September 30, At December 31,

(dollars in millions) 2024 2023

2 unchanged sentences

Total $ 5,481 $ 5,395

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.

For the three and nine months ended September 30, 2024, we recognized expense of $ 865 million and $ 2.5 billion, respectively, associated with the amortization of deferred contract costs, primarily within Selling, general and administrative expense in our condensed consolidated statements of income.

For the three and nine months ended September 30, 2023, we recognized expense of $ 799 million and $ 2.4 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 and six months ended June 30, 2024 or June 30, 2023.

There were no impairment charges recognized for the three and nine months ended September 30, 2024.

There were insignificant impairment charges recognized for the three and nine months ended September 30, 2023.

Acquisitions and Divestitures

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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 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.

During the nine months ended September 30, 2024 and September 30, 2023, we made payments of $ 269 million and $ 578 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.

On October 17, 2024, Verizon entered into a license purchase agreement to acquire select spectrum licenses of United States Cellular Corporation and certain of its subsidiaries (UScellular) for total consideration of $ 1.0 billion, subject to certain potential adjustments.

The closing of this transaction is subject to the receipt of regulatory approvals and other closing conditions, including the consummation of UScellular's proposed sale of its wireless operations and select spectrum assets to T-Mobile US, Inc., and the termination of certain post-closing arrangements with respect to that sale.

TracFone Wireless, Inc.

1 unchanged sentence

Verizon acquired all of TracFone's outstanding stock in exchange for approximately $ 3.5 billion in cash, net of cash acquired and working capital and other adjustments, 57,596,544 shares of common stock of the Company valued at approximately $ 3.0 billion, and up to an additional $ 650 million in future cash contingent consideration related to the achievement of certain performance measures and other commercial arrangements.

The fair value of the Verizon common stock was determined on the basis of its closing market price on the Acquisition Date.

The fair value of the Verizon common stock was determined on the basis of its closing

market price on the Acquisition Date.

The estimated fair value of the contingent consideration as of the Acquisition Date was approximately $ 560 million and represented a Level 3 measurement as defined in ASC 820, Fair Value Measurements and Disclosures.

2 unchanged sentences

Contingent consideration payments were completed in January of 2024.

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.

During the nine months ended September 30, 2024 and September 30, 2023, Verizon made payments of $ 52 million and $ 182 million, respectively, related to the contingent consideration, which are reflected in Cash flows from financing activities in our condensed consolidated statements of cash flows.

Frontier Communications Parent, Inc.

On September 4, 2024, Verizon entered into an Agreement and Plan of Merger (the Merger Agreement) to acquire Frontier Communications Parent, Inc.

(Frontier), a U.S.

provider of broadband internet and other communication services.

The transaction is structured as a merger of the Company's subsidiary with and into Frontier, as a result of which Frontier will become a wholly owned subsidiary of the Company and shares of Frontier common stock outstanding immediately prior to the effective time of merger (subject to certain limited exceptions) will be cancelled and converted into the right to receive a per share merger consideration of $ 38.50 , in cash.

Consummation of the transaction is subject to approval by Frontier shareholders, receipt of certain regulatory approvals and other customary closing conditions.

Under certain circumstances, if the Merger Agreement is terminated, Frontier may be required to pay Verizon a termination fee of $ 320 million.

Under certain other specified circumstances, Verizon may be required to pay Frontier a termination fee of $ 590 million.

Wireless Licenses, Goodwill, and Other Intangible Assets

1 unchanged sentence

The carrying amounts of our Wireless licenses are as follows:

At June 30, At December 31,

At September 30, At December 31,

(dollars in millions) 2024 2023

Wireless licenses $ 156,481 $ 155,667

See Note 3 for additional information.

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.

At September 30, 2024 and 2023, approximately $ 11.3 billion and $ 22.1 billion, respectively, of wireless licenses were under development for commercial service for which we were capitalizing interest costs.

We recorded $ 485 million and $ 1.2 billion of capitalized interest on wireless licenses for the nine months ended September 30, 2024 and 2023, respectively.

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

The average renewal period for these licenses was 10 years.

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Reclassifications, adjustments and other

— ( 1 ) ( 1 )

Balance at June 30, 2024

Balance at September 30, 2024

$ 21,177 $ 1,667 $ 22,844

2 unchanged sentences

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

At June 30, 2024 At December 31, 2023

At September 30, 2024 At December 31, 2023

(dollars in millions) Gross

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The amortization expense for Other intangible assets was as follows:

Three Months Ended Six Months Ended

(dollars in millions) June 30, June 30,

Three Months Ended Nine Months Ended

(dollars in millions) September 30, September 30,

2024 $ 676 $ 2,080

5 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 and six months ended June 30, 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 nine months ended September 30, 2024.

Exchange Offers

(dollars in millions) Principal Amount Exchanged

Principal Amount Issued

Three Months Ended September 30, 2024

Verizon 0.850 % - 4.329 % notes and floating rate notes, due 2025 - 2028

Verizon 4.780 % notes due 2035 (1)

Three and Nine Months Ended September 30, 2024 total (2)

$ 2,256 $ 2,191

(1) The principal amount issued in exchange does not include either an insignificant amount of cash paid in lieu of the issuance of fractional new notes or accrued and unpaid interest paid on the old notes accepted for exchange to the date of exchange.

(2) The debt exchange offers above meet the criteria to be accounted for as a modification of debt.

As a result, the excess of the principal amount of notes exchanged over the principal amount of new notes issued of $ 65 million was recorded as a premium to Long-term debt in the condensed consolidated balance sheets.

Tender Offers

4 unchanged sentences

Three Months Ended March 31, 2024 total 2,237

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

Nine Months Ended September 30, 2024 total

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

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Three Months Ended June 30, 2024 total 796

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

Three Months Ended September 30, 2024

Open market repurchases of various Verizon notes $ 450 $ 362

Three Months Ended September 30, 2024 total

Nine Months Ended September 30, 2024 total

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

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Three Months Ended March 31, 2024 total 3,103

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

Nine Months Ended September 30, 2024 total

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

5 unchanged sentences

Commercial Paper Program

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.

During the nine months ended September 30, 2024, we issued $ 23.6 billion in net proceeds and made $ 23.6 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 September 30, 2024, we had no commercial paper outstanding.

Asset-Backed Debt

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

As of September 30, 2024 , the carrying value of our asset-backed debt was $ 24.3 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 satisfied.

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 satisfied.

The Investors or Banks, as applicable, which hold our asset-backed debt have legal recourse to the assets securing the debt, but do not have any recourse to Verizon with respect to the payment of principal and interest on the debt.

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

During the nine months ended September 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

25 unchanged sentences

June 2024 total 1,176

September 2024

Series 2024-6

A-1a Senior class notes 4.170 2.92 1,069

A-1b Senior class notes Compounded SOFR + 0.670 (1)

B Junior class notes 4.420 2.92 —

C Junior class notes 4.670 2.92 61

Series 2024-7

A Senior class notes 4.350 4.92 535

B Junior class notes 4.600 4.92 —

C Junior class notes 4.840 4.92 25

September 2024 total

Total $ 5,923

(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 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.

Compounded SOFR for the interest payment made in September 2024 was 5.342 %.

Under the terms of each series of ABS Notes outstanding as of September 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 nine months ended September 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.

In October 2024, in connection with an anticipated redemption of ABS Notes, we made a principal repayment, in whole, for $ 1.4 billion.

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, 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 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, borrowed an additional $ 225 million in June 2024, prepaid an aggregate of $ 1.2 billion in August 2024, prepaid an aggregate of $ 950 million and borrowed an additional $ 450 million in September 2024.

The aggregate outstanding balance under the 2021 ABS Financing Facility was $ 5.8 billion as of September 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)

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

Variable Interest Entities

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.

1 unchanged sentence

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

At September 30,

At December 31,

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Long-Term Credit Facilities

At June 30, 2024

At September 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 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.

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

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

During the nine months ended September 30, 2023, we drew down $ 1.0 billion 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 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.

During the nine months ended September 30, 2024 and 2023, we financed, primarily through alternative financing arrangements, the purchase of approximately $ 1.2 billion and $ 942 million, respectively, of long-lived assets consisting primarily of network equipment.

As of September 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 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.

During the three months ended September 30, 2024 and 2023 , we recorded net debt extinguishment gains of $ 90 million and $ 85 million, respectively.

During the nine months ended September 30, 2024 and 2023 , we recorded net debt extinguishment gains of $ 289 million and $ 224 million, respectively.

The net gains are recorded in Other income, 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 June 30, 2024 , $ 614 million aggregate principal amount of these obligations remained outstanding.

As of September 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.

3 unchanged sentences

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

At June 30, 2024

At September 30, 2024

(dollars in millions) Device payment plan agreement Wireless service

4 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 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.

Included in Other assets and Accounts receivable, net at September 30, 2024, are net device payment plan agreement receivables, net wireless service receivables and net other receivables of $ 27.8 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 September 30, 2024 and December 31, 2023, are net other receivables of $ 840 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 June 30, At December 31,

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

At September 30, 2024 and December 31, 2023, the amount of trade-in liability was $ 341 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.

5 unchanged sentences

Customers with longer tenures tend to exhibit similar risk characteristics to other customers with longer tenures, and receivables due from customers with longer tenures tend to perform better than receivables from customers that have not previously been Verizon customers.

As a result of this experience, we make initial lending decisions based upon whether the customers are "established customers" or "short-tenured customers." If a Consumer customer has been a customer for 45 days or more, or if a Business customer has been a customer for 12 months or more, the customer is considered an "established customer." For established customers, the credit decision and ongoing credit monitoring processes rely on a combination of internal and external data sources.

customer." For established customers, the credit decision and ongoing credit monitoring processes rely on a combination of internal and external data sources.

If a Consumer customer has been a customer less than 45 days, or a Business customer has been a customer for less than 12 months, the customer is considered a "short-tenured customer." For short-tenured customers, the credit decision and credit monitoring processes rely more heavily on external data sources.

10 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 six months ended June 30, 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 nine months ended September 30, 2024, by credit quality indicator and year of origination:

Year of Origination (1)

(dollars in millions) 2024 2023 2022 and prior

(dollars in millions) 2024 2023 2022 and prior Total

Device payment plan agreement receivables, at amortized cost

7 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 June 30, 2024.

The data presented in the table above was last updated on September 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 six months ended June 30, 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 nine months ended September 30, 2024, by year of origination:

Year of Origination

2 unchanged sentences

Gross write-offs 226 182 408

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

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

Allowance for Credit Losses

5 unchanged sentences

Wireline service receivables are disaggregated and pooled by the following types of customers and related contracts:

consumer, small and medium business, enterprise, public sector and wholesale.

consumer, small and medium business,

enterprise, public sector and wholesale.

For wireless service receivables and wireline consumer and small and medium business receivables, the allowance is calculated based on a 12 month rolling average write-off balance multiplied by the average life-cycle of an account from billing to write-off.

9 unchanged sentences

Recoveries collected 28 32

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

Balance at September 30, 2024 $ 1,130 $ 237

(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.

3 unchanged sentences

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

At September 30,

(dollars in millions) 2024

3 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 June 30, 2024:

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

(dollars in millions) Level 1 (1)

50 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 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.

As of September 30, 2024 and December 31, 2023, the carrying amount of our investments without readily determinable fair values was $ 738 million and $ 764 million, respectively.

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

As of September 30, 2024, cumulative adjustments due to observable price changes and impairment charges were $ 194 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 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.

During the nine months ended September 30, 2024 and September 30, 2023 , we made payments of $ 52 million and $ 182 million, respectively, related to the contingent consideration.

See Note 3 for additional information.

10 unchanged sentences

(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 September 30, 2024 $ 148,364 $ 91,148 $ 55,665 $ — $ 146,813

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 June 30, At December 31,

At September 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 Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

(dollars in millions) 2024 2023 2024 2023

2 unchanged sentences

Notional value settled 1,254 — 1,254 —

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

Pre-tax gain (loss) recognized in Interest expense

Cross Currency Swaps:

11 unchanged sentences

Notional value settled 1,000 — 1,000 500

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

Six Months Ended

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

( 21 ) — ( 21 ) 5

Nine Months Ended

September 30,

(dollars in millions) 2024 2023

Other, net Cash Flows from Operating Activities:

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

Cash paid for settlement of interest rate swaps, net

Cash received (paid) for settlement of treasury rate locks

Other, net Cash Flows from Financing Activities:

2 unchanged sentences

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

At June 30, At December 31,

At September 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 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.

During both the three and nine months ended September 30, 2024 and September 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 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.

During both the three and nine months ended September 30, 2024 and September 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.

1 unchanged sentence

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 enter 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) .

2 unchanged sentences

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 June 30, 2024 and December 31, 2023.

The notional amount of Euro-denominated debt designated as a net investment hedge was € 750 million as of both September 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 Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

(dollars in millions) 2024 2023 2024 2023

2 unchanged sentences

Notional value settled 1,640 2,785 7,370 8,150

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

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

21 ( 39 ) ( 2 ) ( 17 )

6 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 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 September 30, 2024, we did no t hold any collateral.

At September 30, 2024, we posted $ 1.7 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 (expense), 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 June 30, 2024 2023 2024 2023

Three Months Ended September 30, 2024 2023 2024 2023

Service cost - Cost of services $ 39 $ 46 $ 11 $ 11

4 unchanged sentences

Interest cost 111 188 136 137

Remeasurement loss, net 136 — — —

Remeasurement gain, net ( 46 ) — — —

Other components $ ( 41 ) $ ( 38 ) $ 97 $ 23

2 unchanged sentences

Pension Health Care and Life

Six Months Ended June 30, 2024 2023 2024 2023

Nine Months Ended September 30, 2024 2023 2024 2023

Service cost - Cost of services $ 119 $ 137 $ 33 $ 34

7 unchanged sentences

Total $ 137 $ 45 $ 329 $ 111

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

During the 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.

During the nine months ended September 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

9 unchanged sentences

Pension plan assets and liabilities are primarily presented within Employee benefit obligations in our condensed consolidated balance sheets.

2024 Voluntary Separation Program

In June 2024, we announced a voluntary separation program for select U.S.-based management employees.

Approximately 4,800 eligible employees will separate from Verizon under this program by the end of March 2025, with more than half of these employees having exited in September of 2024.

Principally as a result of this program, but also as a result of other headcount reduction initiatives, we recorded a severance charge of $ 1.7 billion ($ 1.3 billion after-tax) during the three and nine months ended September 30, 2024, which was recorded in Selling, general and administrative expense in our condensed consolidated statement of income.

Severance Payments

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.

During the three and nine months ended September 30, 2024, we paid severance benefits of $ 188 million and $ 366 million, respectively.

At September 30, 2024, we had a remaining severance liability of $ 1.7 billion, the majority of which relates to future contractual payments to separated employees under the voluntary separation program.

Employer Contributions

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.

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

During the nine months ended September 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 nine months ended September 30, 2024 and September 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 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.

Remeasurement loss (gain), net

During the three and nine months ended September 30, 2024, we recorded an insignificant net pre-tax remeasurement gain and loss, 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.

2 unchanged sentences

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 June 30,

Three Months Ended September 30,

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

3 unchanged sentences

Balance at beginning of period 13,539 13,523

Other ( 32 ) —

Balance at end of period 13,479 13,524

10 unchanged sentences

Unrealized gain (loss) on fair value hedges ( 446 ) 584

Unrealized loss on marketable securities ( 1 ) ( 2 )

Unrealized gain (loss) on marketable securities 5 ( 5 )

Defined benefit pension and postretirement plans ( 2 ) ( 56 )

14 unchanged sentences

Distributions and other (1)

( 130 ) ( 84 )

Balance at end of period 1,342 1,347

Total Equity $ 97,668 $ 99,088

Six Months Ended June 30,

(1) 2024 period includes adjustments related to the acquisition of additional interests in certain controlled entities.

Nine Months Ended September 30,

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

3 unchanged sentences

Balance at beginning of period 13,631 13,420

Other ( 92 ) 103

Balance at end of period 13,479 13,524

29 unchanged sentences

Distributions and other (1)

( 361 ) ( 321 )

Balance at end of period 1,342 1,347

Total Equity $ 97,668 $ 99,088

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.

(1) 2024 period includes adjustments related to the acquisition of additional interests in certain controlled entities.

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

At September 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 5.4 million shares of common stock issued from treasury stock during the nine months ended September 30, 2024.

Noncontrolling Interests

During the three and nine months ended September 30, 2024, Verizon entered into and completed agreements to acquire additional interests in certain controlled entities for cash consideration of $ 124 million and $ 266 million, respectively.

Verizon continues to retain controlling financial interest within these entities;

therefore, the changes in ownership interest were accounted for as equity transactions.

This resulted in a reduction of additional paid-in capital of $ 87 million and $ 213 million and noncontrolling interest of an insignificant amount and $ 53 million for the three and nine months ended September 30, 2024, respectively.

These transactions were recorded within Other, net cash flow from financing activities in our condensed consolidated statement of cash flows for the nine months ended September 30, 2024.

Accumulated Other Comprehensive Loss

1 unchanged sentence

(dollars in millions) Foreign

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

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

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

Excluded components recognized in other comprehensive income — — ( 304 ) — — ( 304 )

Other comprehensive loss ( 50 ) — — ( 3 ) — ( 53 )

Other comprehensive income (loss) 9 ( 16 ) — 2 — ( 5 )

Amounts reclassified to net income — 76 ( 46 ) — ( 6 ) 24

Net other comprehensive income (loss) 9 60 ( 350 ) 2 ( 6 ) ( 285 )

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

Balance at September 30, 2024 $ ( 627 ) $ ( 1,002 ) $ ( 245 ) $ — $ 209 $ ( 1,665 )

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 (expense), 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, 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 (expense), net in our condensed consolidated statements of income.

The amounts reclassified to net income related to unrealized gain (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.

See Note 8 for additional information.

14 unchanged sentences

Our Consumer segment's wireless and wireline products and services are available to our retail customers, as well as resellers that purchase wireless network access from us on a wholesale basis.

Our Business segment's wireless and wireline products and services are organized by the primary customer groups targeted by these offerings:

Our Business segment's wireless and wireline products

and services are organized by the primary customer groups targeted by these offerings:

Enterprise and Public Sector, Business Markets and Other, and Wholesale.

4 unchanged sentences

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

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

(dollars in millions) 2024 2023 2024 2023

25 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 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.

(2) Service and other revenues included in our Business segment were approximately $ 6.5 billion and $ 6.6 billion for the three months ended September 30, 2024 and 2023, respectively, and $ 19.4 billion and $ 19.9 billion for the nine months ended September 30, 2024 and 2023, respectively.

Wireless equipment revenues included in our Business segment were $ 865 million and $ 911 million for the three months ended September 30, 2024 and 2023, respectively, and $ 2.6 billion for both the nine months ended September 30, 2024 and 2023.

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

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 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 Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 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 Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

(dollars in millions) 2024 2023 2024 2023

6 unchanged sentences

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

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

(dollars in millions) 2024 2023 2024 2023

3 unchanged sentences

Other components of net periodic benefit charges (Note 8) ( 8 ) ( 62 ) ( 25 ) ( 186 )

Asset and business rationalization

( 374 ) — ( 374 ) ( 155 )

Legacy legal matter

— — ( 106 ) —

Non-strategic business shutdown

— ( 179 ) — ( 179 )

Business transformation costs

— ( 176 ) — ( 176 )

Total consolidated operating income 5,926 7,473 21,265 22,277

Equity in losses of unconsolidated businesses ( 24 ) ( 18 ) ( 47 ) ( 42 )

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

Other income, net 72 170 198 494

Interest expense ( 1,672 ) ( 1,433 ) ( 5,005 ) ( 3,925 )

Income Before Provision For Income Taxes $ 4,302 $ 6,192 $ 16,411 $ 18,804

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.

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

As of September 30, 2024 and December 31, 2023, $ 558 million and $ 817 million, respectively, remained as confirmed obligations outstanding related to suppliers participating in the supplier finance program.

Commitments and Contingencies

In the ordinary course of business, Verizon is involved in various litigation and regulatory proceedings at the state and federal level.

Where it is determined, in consultation with counsel based on litigation and settlement risks, that a loss is probable and estimable in a given matter, Verizon establishes an accrual.

Where it is determined, in consultation with counsel based on litigation and settlement risks, that a loss is probable and

estimable in a given matter, Verizon establishes an accrual.

In none of the currently pending matters is the amount of accrual material.

12 unchanged sentences

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 June 30, 2024, Verizon had 27 renewable energy purchase agreements (REPAs) with third parties.

As of September 30, 2024, Verizon had 28 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.

2 unchanged sentences

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