6 unchanged sentences
In our opinion, Verizon maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on the COSO criteria.
−Removed: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of Verizon as of December 31, 2023 and 2022, the related consolidated statements of income, comprehensive income, cash flows, and changes in equity for each of the three years in the period ended December 31, 2023, and the related notes and the financial statement schedule listed in the Index at Item 15(a) and our report dated February 9, 2024 expressed an unqualified opinion thereon.
+Added: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of Verizon as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, cash flows, and changes in equity for each of the three years in the period ended December 31, 2024, and the related notes and financial statement schedule listed in the Index at Item 15(a) and our report dated February 12, 2025 expressed an unqualified opinion thereon.
Basis for Opinion
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We have audited the accompanying consolidated balance sheets of Verizon Communications Inc.
−Removed: and subsidiaries (Verizon or the Company) as of December 31, 2023 and 2022, the related consolidated statements of income, comprehensive income, cash flows, and changes in equity for each of the three years in the period ended December 31, 2023, and the related notes and the financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”).
+Added: and subsidiaries (Verizon or the Company) as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, cash flows, and changes in equity for each of the three years in the period ended December 31, 2024, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”).
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Verizon at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with U.S.
12 unchanged sentences
We believe that our audits provide a reasonable basis for our opinion.
−Removed: Critical Audit Matters
−Removed: The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that:
−Removed: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.
−Removed: The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
+Added: Critical Audit Matter
+Added: The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that:
+Added: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.
+Added: The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Valuation of Employee Benefit Obligations
12 unchanged sentences
We also tested the completeness and accuracy of the underlying data.
−Removed: Impairment Evaluation for Verizon Business Group Goodwill
−Removed: Description of the Matter At December 31, 2023, the Company’s goodwill related to its Verizon Business Group (Business) reporting unit was $1.7 billion and represented 0.4% of total assets.
−Removed: As discussed in Notes 1 and 4 of the consolidated financial statements, goodwill is not amortized but rather is tested for impairment at the reporting unit level at least annually, or more frequently if impairment indicators are present.
−Removed: The impairment test compares the fair value of the reporting unit (calculated using a combination of a market approach and an income approach) to its carrying amount.
−Removed: As described in Note 4 to the consolidated financial statements, an impairment charge of $5.8 billion in the Business reporting unit was recorded during the year.
−Removed: Auditing management’s goodwill impairment test was complex and highly judgmental due to the inherent subjectivity of developing an estimate of the fair value of the reporting unit, which is based on assumptions about future conditions, transactions, or events whose outcome is uncertain and will therefore be subject to change over time.
−Removed: In particular, the fair value estimate was sensitive to significant assumptions such as the discount rate, revenue growth rates and earnings before interest, taxes, depreciation and amortization (EBITDA) margins, which are affected by expected future market and economic conditions.
−Removed: How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s goodwill impairment review process.
−Removed: For example, we tested controls over management’s review of the valuation models and the significant assumptions described above.
−Removed: To test the estimated fair value of the Company’s Business reporting unit, our audit procedures included, among others, assessing the suitability and application of the valuation methodologies selected and evaluating the significant assumptions discussed above and underlying data used by the Company in its analysis.
−Removed: We compared the significant assumptions used by management to current industry and economic trends, market information, and other relevant factors.
−Removed: We performed sensitivity analyses of significant assumptions to determine what changes in assumptions are particularly sensitive when assessing the likelihood of impairment, or when calculating the amount of an impairment.
−Removed: In addition, we involved a valuation specialist to assist in the evaluation of the assumptions and other relevant information that are most significant to the fair value estimate.
−Removed: We also assessed the historical accuracy of management’s forecasts of financial results used in developing prior fair value estimates to assist in evaluating the reliability of the current forecasts.
/s/ Ernst & Young LLP
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( 97 ) 62 ( 153 )
−Removed: Unrealized gain (loss) on cash flow hedges, net of tax of $( 30 ), $( 111 ) and $ 30
−Removed: 88 322 ( 85 )
+Added: Unrealized gain on cash flow hedges, net of tax of $( 27 ), $( 30 ) and $( 111 )
Unrealized gain (loss) on fair value hedges, net of tax of $( 162 ), $( 181 ) and $ 148
99 unchanged sentences
Other, net ( 1,075 ) ( 1,470 ) ( 2,072 )
−Removed: Net cash provided by (used in) financing activities ( 14,657 ) ( 8,529 ) 8,277
−Removed: Decrease in cash, cash equivalents and restricted cash ( 614 ) ( 50 ) ( 19,337 )
+Added: Net cash used in financing activities ( 17,100 ) ( 14,657 ) ( 8,529 )
+Added: Increase (decrease) in cash, cash equivalents and restricted cash 1,138 ( 614 ) ( 50 )
Cash, cash equivalents and restricted cash, beginning of period 3,497 4,111 4,161
11 unchanged sentences
Balance at beginning of year 13,631 13,420 13,861
−Removed: Other 211 ( 441 ) 457
+Added: Other (Note 14)
+Added: ( 165 ) 211 ( 441 )
Balance at end of year 13,466 13,631 13,420
10 unchanged sentences
Foreign currency translation adjustments ( 97 ) 62 ( 153 )
−Removed: Unrealized gain (loss) on cash flow hedges 88 322 ( 85 )
+Added: Unrealized gain on cash flow hedges 81 88 322
Unrealized gain (loss) on fair value hedges 484 536 ( 431 )
8 unchanged sentences
Shareholder plans (Note 14) 13 1 19 1 15 1
−Removed: Acquisitions (Note 3) — — — — 57,597 2,524
Balance at end of year ( 81,753 ) ( 3,583 ) ( 87,173 ) ( 3,821 ) ( 91,572 ) ( 4,013 )
7 unchanged sentences
Total comprehensive income 443 481 492
−Removed: Distributions and other ( 431 ) ( 583 ) ( 573 )
+Added: Distributions and other (Note 14)
+Added: ( 474 ) ( 431 ) ( 583 )
Balance at end of year 1,338 1,369 1,319
7 unchanged sentences
Verizon Communications Inc.
−Removed: (the Company) is a holding company that, acting through its subsidiaries (together with the Company, collectively, Verizon), is one of the world’s leading providers of communications, technology, information and entertainment products and services to consumers, businesses and government entities.
+Added: (the Company) is a holding company that, acting through its subsidiaries (together with the Company, collectively, Verizon), is one of the world’s leading providers of communications, technology, information and streaming products and services to consumers, businesses and government entities.
With a presence around the world, we offer data, video and voice services and solutions on our networks and platforms that are designed to meet customers’ demand for mobility, reliable network connectivity and security.
4 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.
−Removed: 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.
−Removed: 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 Internet of Things (IoT) services and products.
−Removed: We provide these products and services to businesses, government customers and wireless and wireline carriers across the U.S.
+Added: Our Business segment provides wireless and wireline communications services and products, including FWA broadband, data, video and advanced communication services, corporate networking solutions, security and managed network services, local and long distance voice services and network access to deliver various Internet of Things (IoT) services and products.
+Added: We provide these products and services to businesses, public sector customers and wireless and wireline carriers across the U.S.
and a subset of these products and services to customers around the world.
−Removed: During the first quarter of 2023, Verizon reorganized the customer groups within its Business segment .
−Removed: See Note 13 for additional information.
Consolidation
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generally accepted accounting principles (GAAP), which requires management to make estimates and assumptions that affect reported amounts and disclosures.
−Removed: These estimates and assumptions take into account historical and forward-looking factors that the Company believes are reasonable, including but not limited to public health crises and related economic implications.
+Added: These estimates and assumptions take into account historical and forward-looking factors that the Company believes are reasonable.
Actual results could differ significantly from those estimates.
−Removed: Examples of significant estimates include the allowance for credit losses, the recoverability of intangible assets, property, plant and equipment, and other long-lived assets, the incremental borrowing rate for the lease liability, fair value measurements, including those related to financial instruments, goodwill, spectrum licenses and intangible assets, unrecognized tax benefits, valuation allowances on tax assets, pension and postretirement benefit obligations, contingencies and the identification and valuation of assets acquired and liabilities assumed in connection with business combinations.
+Added: Examples of significant estimates include the allowance for credit losses, the recoverability of property, plant and equipment and other long-lived assets, the incremental borrowing rate for the lease liability, fair value measurements, including those related to financial instruments, goodwill, spectrum licenses and intangible assets, unrecognized tax benefits, valuation allowances on tax assets, pension and postretirement benefit obligations, contingencies and the identification and valuation of assets acquired and liabilities assumed in connection with business combinations.
Revenue Recognition
33 unchanged sentences
We account for this trade-in right as a guarantee obligation.
−Removed: The full amount of the trade-in right's fair value
−Removed: is recognized as a guarantee liability and results in a reduction to the revenue recognized upon the sale of the device.
−Removed: The total transaction price is reduced by the guarantee, which is accounted for outside the scope of Topic 606, and the remaining transaction price is allocated between the performance obligations within the contract.
+Added: The full amount of the trade-in right's fair value is recognized as a guarantee liability and results in a reduction to the revenue recognized upon the sale of the device.
+Added: transaction price is reduced by the guarantee, which is accounted for outside the scope of Topic 606, and the remaining transaction price is allocated between the performance obligations within the contract.
Our fixed-term plans generally include the sale of a wireless device at subsidized prices.
17 unchanged sentences
To evaluate if we have control, we consider various factors including whether we are primarily responsible for fulfillment, bear risk of loss and have discretion over pricing.
−Removed: Advertising revenues are generated through display advertising and search advertising.
−Removed: Display advertising revenue is generated by the display of graphical advertisements and other performance-based advertising.
−Removed: Search advertising revenue is generated when a consumer clicks on a text-based advertisement on the search results page.
−Removed: The divested Verizon Media Group (Verizon Media), primarily earned revenue through display advertising on Verizon Media properties, as well as on third-party properties through our advertising platforms, search advertising, and subscription arrangements.
−Removed: Revenue for display and search advertising contracts is recognized as ads are delivered, while subscription contracts are recognized over time.
−Removed: We are generally the principal in transactions carried out through our advertising platforms, and therefore report gross revenue based on the amount billed to our customers.
−Removed: The control and transfer of digital advertising inventory occurs in a rapid, real-time environment, where our proprietary technology enables us to identify, enhance, verify and solely control digital advertising inventory that we then sell to our customers.
−Removed: Our control is further supported by us being primarily responsible to our customers for fulfillment and the fact that we can exercise a level of discretion over pricing.
−Removed: We completed the sale of Verizon Media on September 1, 2021.
−Removed: See Note 3 for additional information on the sale of Verizon Media.
We offer telematics services including smart fleet management and optimization software.
10 unchanged sentences
Where appropriate, diluted earnings per common share include the dilutive effect of shares issuable under our stock-based compensation plans.
−Removed: There was a total of approximately 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 year ended December 31, 2023.
−Removed: There were a total of approximately 1.9 million and 1.7 million outstanding dilutive securities, primarily consisting of restricted stock units, included in the computation of diluted earnings per common share for the years ended December 31, 2022 and 2021, respectively.
+Added: There were a total of approximately 4.7 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 years ended December 31, 2024 and 2023, respectively.
+Added: There was a total of approximately 1.9 million outstanding dilutive securities, primarily consisting of restricted stock units, included in the computation of diluted earnings per common share for the year ended December 31, 2022 .
Cash, Cash Equivalents and Restricted Cash
2 unchanged sentences
Cash collections on the receivables and on the underlying receivables related to the participation interest collateralizing our asset-backed debt securities are required at certain specified times to be placed into segregated accounts.
−Removed: Deposits to the segregated accounts are considered restricted cash and are included in Prepaid expenses and other and Other assets in our consolidated balance sheets.
+Added: Deposits to the segregated accounts are considered restricted cash.
Cash, cash equivalents and restricted cash are included in the following line items in the consolidated balance sheets:
23 unchanged sentences
The expected loss rate is determined based on customer credit scores and other qualitative factors as noted above.
−Removed: The loss rate is assigned
−Removed: individually on a customer by customer basis and the custom credit scores are then aggregated by vintage and used in our proprietary loss model to calculate the weighted-average loss rate used for determining the allowance balance.
+Added: The loss rate is assigned individually on a customer by customer basis and the custom credit scores are then aggregated by vintage and used in our proprietary loss model to calculate the weighted-average loss rate used for determining the allowance balance.
We monitor the collectability of our wireless service receivables as one overall pool.
−Removed: Wireline service receivables are disaggregated and pooled by the following customer groups:
+Added: 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.
1 unchanged sentence
The risk of loss is assessed over the contractual life of the receivables and is adjusted based on the historical loss amounts for current and future conditions based on management’s qualitative considerations.
−Removed: For enterprise, public sector and wholesale wireline receivables, the allowance for credit losses is based on historical write-off experience and individual customer credit risk, as applicable.
+Added: For enterprise, public sector and wholesale wireline receivables, the allowance for credit losses is based on historical write-off experience and individual customer credit risk, if applicable.
We consider multiple factors in determining the allowance as discussed above.
9 unchanged sentences
Computer Software and Cloud Computing Costs
−Removed: We capitalize the cost of internal-use network and non-network software and defer the costs associated with cloud computing arrangements that have a useful life and term in excess of one year.
+Added: We capitalize the cost of internal-use network and non-network software and defer the costs associated with cloud computing service arrangements that have a useful life and term in excess of one year.
Subsequent additions, modifications or upgrades to internal-use network and non-network software are capitalized only to the extent that they add significant new functionality.
1 unchanged sentence
We capitalize interest associated with the development of internal-use network and non-network software.
−Removed: Capitalized non-network internal-use software costs are amortized using the straight-line method over a period of 7 years and are included in Other intangible assets, net in our consolidated balance sheets.
−Removed: Costs incurred in implementing a cloud computing arrangement are deferred during the application-development stage and recorded as Prepaid expense and other in our consolidated balance sheets.
+Added: Capitalized non-network internal-use software costs are amortized using the straight-line method over a period of 3 to 7 years and are included in Other intangible assets, net in our consolidated balance sheets.
+Added: Costs incurred in implementing a cloud computing service arrangement are deferred during the application-development stage and recorded as Prepaid expense and other in our consolidated balance sheets.
Once a project is substantially complete and ready for its intended use, we stop deferring the related cloud computing arrangement costs.
8 unchanged sentences
It is our policy to perform quantitative impairment assessment at least every three years.
−Removed: Under the qualitative assessment, we consider several factors, including the business enterprise value of the reporting unit from the last quantitative test and the excess of fair value over carrying value from this test, macroeconomic conditions (including changes in interest rates and discount rates), industry and market considerations (including industry revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) margin results, projections and recent merger and acquisition activity), the recent and projected financial performance of the reporting unit, as well as other factors.
+Added: Under the qualitative assessment, we consider several factors, including the enterprise value of the reporting unit from the last quantitative test and the excess of fair value over carrying value from this test, macroeconomic conditions (including changes in interest rates and discount rates), industry and market considerations (including industry revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) margin results, projections and recent merger and acquisition activity), the recent and projected financial performance of the reporting unit, as well as other factors.
The quantitative impairment test for goodwill is performed at the reporting unit level and compares the fair value of the reporting unit (calculated using a combination of a market approach and a discounted cash flow method, as a form of the income approach) to its carrying value.
6 unchanged sentences
If the carrying value exceeds the fair value, an impairment charge is booked for the excess carrying value over fair value, limited to the total amount of goodwill of that reporting unit.
−Removed: During the fourth quarter each year, we update our five-year strategic planning review for each of our reporting units.
+Added: During the fourth quarter each year, we update our three-year strategic planning review for each of our reporting units.
Those plans consider current economic conditions and trends, estimated future operating results, our view of growth-rates and anticipated future economic and regulatory conditions.
12 unchanged sentences
It is our policy to perform quantitative impairment assessment at least every three years.
−Removed: As part of our qualitative assessment we consider several factors including the business enterprise value of our combined wireless business, macroeconomic conditions (including changes in interest rates and discount rates), industry and market considerations (including industry revenue and EBITDA margin results, projections and recent merger and acquisition activity), the recent and projected financial performance of our combined wireless business as a whole, as well as other factors including the result of our last quantitative assessment.
+Added: As part of our qualitative assessment we consider several factors including the enterprise value of our combined wireless business, macroeconomic conditions (including changes in interest rates and discount rates), industry and market considerations (including industry revenue and EBITDA margin results, projections and recent merger and acquisition activity), the recent and projected financial performance of our combined wireless business as a whole, as well as other factors including the result of our last quantitative assessment.
See Note 4 for additional information regarding our impairment tests.
12 unchanged sentences
If any indications of impairment are present, we would test for recoverability by comparing the carrying amount of the asset group to the net undiscounted cash flows expected to be generated from the asset group.
−Removed: If those net undiscounted cash flows do not exceed the carrying amount, we would perform the next step, which is to determine the fair value of the asset
−Removed: and record an impairment, if any.
+Added: If those net undiscounted cash flows do not exceed the carrying amount, we would perform the next step, which is to determine the fair value of the asset group and record an impairment, if any.
We re-evaluate the useful life determinations for these intangible assets each year to determine whether events and circumstances warrant a revision to their remaining useful lives.
5 unchanged sentences
The present value of the lease payments is calculated using the incremental borrowing rate for operating and finance leases.
−Removed: The incremental borrowing rate is determined using a portfolio approach based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term.
+Added: The incremental borrowing rate is determined using a portfolio approach based on the rate of interest that the Company
+Added: would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term.
Management uses the unsecured borrowing rate and risk-adjusts that rate to approximate a collateralized rate, which is updated on a quarterly basis.
67 unchanged sentences
The primary beneficiary is the party that has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.
−Removed: Recently Issued Accounting Standards
−Removed: The following Accounting Standards Updates (ASUs) have been recently issued by the Financial Accounting Standards Board (FASB).
+Added: Recently Adopted Accounting Standards
+Added: The following Accounting Standards Update (ASU) was issued by the Financial Accounting Standards Board (FASB), and has been early adopted by Verizon.
Description Effect on Financial Statements
−Removed: ASU 2023-07, Segment Reporting (Topic 280)
−Removed: In November 2023, the FASB issued this standard update which requires additional information about a public company’s significant segment expenses and more timely and detailed segment information reporting throughout the fiscal period.
−Removed: The standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.
−Removed: A retrospective transition approach is required.
−Removed: Early adoption of this standard is permitted.
−Removed: Upon adoption of this standard, we expect to include the required disclosures in our notes to the financial statements for our segment reporting.
−Removed: This standard update will not affect our operating results.
ASU 2023-09, Income Taxes (Topic 740)
4 unchanged sentences
Early adoption of this standard is permitted.
−Removed: Upon adoption of this standard, we expect to include the required disclosures in our notes to the financial statements for our income taxes.
−Removed: This standard update will not affect our operating results.
+Added: Verizon has elected to early adopt this Topic effective December 31, 2024 using a retrospective approach and included the required disclosures in our notes to the financial statements for our income taxes.
+Added: This standard update did not affect our operating results.
Revenue and Contract Costs
12 unchanged sentences
This situation primarily arises with respect to certain month-to-month service contracts.
−Removed: At December 31, 2023, 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 December 31, 2022, 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 .
+Added: At December 31, 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 December 31, 2023, for which month-to-month service contracts represented approximately 95 % of our wireless postpaid contracts and 94 % of 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).
−Removed: 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).
+Added: 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 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.
4 unchanged sentences
however, they may have a service term of two years or shorter than twelve months .
−Removed: Certain contracts with Business customers for wireline services extend into future periods, contain fixed monthly fees and usage-based fees, and can include annual commitments in each year of the contract or commitments over the entire specified contract term;
+Added: Certain contracts with Business customers for wireline services extend into future periods, contain fixed monthly fees and usage-based fees, and can include annual commitments in each year of the contract or
+Added: commitments over the entire specified contract term;
however, a significant number of contracts for wireline services with our Business customers have a contract term that is twelve months or less.
2 unchanged sentences
thus, they are excluded from the time bands below.
−Removed: These contracts have varying terms spanning over approximately thirty years ending in September 2053 and have aggregate contract minimum payments totaling $ 2.1 billion.
+Added: 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 December 31, 2024, the transaction price related to unsatisfied performance obligations that are expected to be recognized for 2025, 2026 and thereafter was $ 28.5 billion, $ 17.5 billion and $ 7.2 billion, respectively.
22 unchanged sentences
We recognize the allowance for credit losses at inception and reassess quarterly based on management's expectation of the asset's collectability.
−Removed: Contract assets remained relatively flat during the year ended December 31, 2023.
+Added: Contract assets increased $ 128 million during the year ended December 31, 2024.
+Added: The change in contract assets was primarily due to new contracts and increases in sales promotions recognized upfront, driven by customer activity related to wireless and Fios services.
+Added: These items were partially offset by reclassifications to accounts receivable due to billings on existing contracts and impairment charges of $ 53 million.
Contract liabilities arise when we bill our customers and receive consideration in advance of providing the goods or services promised in the contract.
3 unchanged sentences
Contract liabilities increased $ 776 million during the year ended December 31, 2024.
−Removed: The change in contract liabilities was primarily due to increases in sales promotions recognized over time and upfront fees.
+Added: The change in contract liabilities was primarily due to increases in sales promotions recognized over time, upfront fees and wireless pricing actions.
Revenue recognized during the years ended December 31, 2024 and 2023 related to contract liabilities existing at January 1, 2024 and 2023 were $ 5.0 billion and $ 4.9 billion, respectively, as performance obligations related to services were satisfied.
26 unchanged sentences
Other costs, such as general costs or costs related to past performance obligations, are expensed as incurred.
−Removed: Collectively, costs to obtain a contract and costs to fulfill a contract are referred to as deferred contract costs, and amortized over a one -to seven-year period.
+Added: Collectively, costs to obtain a contract and costs to fulfill a contract are referred to as deferred contract costs, and amortized over a two -to- seven year period.
Deferred contract costs are classified as current or non-current within Prepaid expenses and other and Other assets, respectively.
8 unchanged sentences
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.
−Removed: There were insignificant impairment charges recognized for the year ended December 31, 2023.
There were no impairment charges recognized for the year ended December 31, 2024.
+Added: There were insignificant impairment charges recognized for the year ended December 31, 2023.
Acquisitions and Divestitures
1 unchanged sentence
In February 2021, the FCC concluded Auction 107 for C-Band wireless spectrum.
−Removed: Verizon paid $ 45.5 billion for the licenses it won, of which $ 44.6 billion was paid in the first quarter of 2021.
In accordance with the rules applicable to the auction, Verizon is required to make payments for our allocable share of clearing costs incurred by, and incentive payments due to, the incumbent license holders associated with the auction, which are estimated to be $ 7.5 billion.
−Removed: During 2023 and 2022, we made payments of $ 4.3 billion and $ 1.6 billion, respectively, for obligations related to clearing costs and accelerated clearing incentives.
−Removed: During 2021, we made payments of $ 1.3 billion primarily related to certain obligations for clearing costs.
−Removed: We expect to continue to make payments of approximately $ 400 million for the remaining obligations through 2024.
−Removed: 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.
+Added: During 2024, 2023 and 2022, we made payments of $ 269 million, $ 4.3 billion and $ 1.6 billion 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.
2 unchanged sentences
This early clearance accelerated Verizon's access to more spectrum in a number of key markets to support its 5G network initiatives.
+Added: 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.
+Added: 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.
Business Acquisitions and Divestitures
3 unchanged sentences
The fair value of the common stock was determined on the basis of its closing market price on the Acquisition Date.
−Removed: The estimated fair value of the contingent consideration as of the Acquisition Date was approximately $ 560 million and represents a Level 3 measurement as defined in ASC 820, Fair Value Measurements and Disclosures.
+Added: 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.
See Note 9 for additional information.
−Removed: The contingent consideration payable is based on the achievement of certain revenue and operational targets, measured over a two-year earn out period.
+Added: The contingent consideration payable was based on the achievement of certain revenue and operational targets, measured over a two-year earn out period.
Contingent consideration payments were completed in January of 2024.
−Removed: During 2023 and 2022, Verizon made payments of $ 257 million and $ 188 million, respectively, related to the contingent consideration, which is reflected in Cash flows from financing activities in our consolidated statements of cash flows.
+Added: During 2024, 2023 and 2022, Verizon made payments of $ 52 million, $ 257 million and $ 188 million, respectively, related to the contingent consideration, which are reflected in Cash flows from financing activities in our consolidated statements of cash flows.
During 2022, Verizon received net cash proceeds of $ 248 million for the final settlement of working capital, which was included in our consideration as of the Acquisition Date.
−Removed: Verizon Media Divestiture
−Removed: On September 1, 2021, we completed the sale of Verizon Media.
−Removed: As of the close of the transaction, cash proceeds, the fair value of the non-convertible preferred limited partnership units of an affiliate of Apollo Global Management Inc.
−Removed: (the Apollo Affiliate) and the fair value of 10 % of the fully-diluted common limited partnership units of the Apollo Affiliate were $ 4.3 billion, $ 496 million, and $ 124 million, respectively.
−Removed: We recorded a pre-tax gain on sale of approximately $ 1.0 billion (after-tax $ 1.0 billion) in Selling general and administrative expense in our consolidated statement of income for the year ended December 31, 2021.
−Removed: In addition, we incurred $ 346 million of various costs associated with this disposition which are primarily recorded in Selling general and administrative expense in our consolidated statement of income for the year ended December 31, 2021.
−Removed: Under our ownership, Verizon Media generated revenues from contracts with customers under Topic 606 of approximately $ 5.3 billion for the year ended December 31, 2021, reflected within our Corporate and Other segment.
+Added: Frontier Communications Parent, Inc.
+Added: On September 4, 2024, Verizon entered into an Agreement and Plan of Merger (the Merger Agreement) to acquire Frontier Communications Parent, Inc.
+Added: (Frontier), a U.S.
+Added: provider of broadband internet and other communication services.
+Added: 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.
+Added: In November 2024, Frontier shareholders approved the transaction.
+Added: Consummation of the transaction is subject to the receipt of certain regulatory approvals and other customary closing conditions.
+Added: Under certain circumstances, if the Merger Agreement is terminated, Frontier may be required to pay Verizon a termination fee of $ 320 million.
+Added: 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
4 unchanged sentences
Wireless licenses $ 156,613 $ 155,667
−Removed: During 2023 and 2022, we made payments of $ 4.3 billion and $ 1.6 billion, respectively, for obligations related to clearing costs and accelerated clearing incentives for wireless licenses in connection with Auction 107.
−Removed: During 2022, we made additional payments of $ 310 million related to accelerated clearing agreements for C-Band spectrum.
+Added: During 2024 and 2023, we made payments of $ 269 million and $ 4.3 billion, respectively, for obligations related to clearing costs and accelerated clearing incentives for wireless licenses in connection with Auction 107.
See Note 3 for additional information.
At December 31, 2024 and 2023, approximately $ 10.1 billion and $ 15.0 billion, respectively, of wireless licenses were under development for commercial service for which we were capitalizing interest costs.
−Removed: We recorded approximately $ 1.4 billion and $ 1.7 billion of capitalized interest on wireless licenses for the years ended December 31, 2023 and 2022, respectively.
−Removed: During 2023 and 2022, we renewed various wireless licenses in accordance with FCC regulations with an average renewal period of 10 years and 15 years, respectively.
+Added: We recorded $ 616 million and $ 1.4 billion of capitalized interest on wireless licenses for the years ended December 31, 2024 and 2023, respectively.
+Added: During 2024 and 2023, we renewed various wireless licenses in accordance with FCC regulations with an average renewal period of 10 years.
See Note 1 for additional information.
As discussed in Note 1, we test our wireless licenses for potential impairment annually or more frequently if impairment indicators are present.
−Removed: In 2023 and 2022, we performed a qualitative impairment assessment, which indicated it was more likely than not that the fair value of our wireless licenses remained above their carrying amount and, therefore, did not result in an impairment.
+Added: In 2023, we performed a qualitative impairment assessment, which indicated it was more likely than not that the fair value of our wireless licenses remained above their carrying amount and, therefore, did not result in an impairment.
+Added: In 2024, we performed a quantitative impairment assessment, in accordance with our policy, which compared the estimated fair value of our aggregate wireless licenses, estimated using the Greenfield approach, to the aggregate carrying amount of the licenses as of the test date.
+Added: Our annual assessment in 2024 indicated that the fair value of our wireless licenses exceeded the carrying value and, therefore, did not result in an impairment.
Our strategy requires significant capital investments primarily to acquire wireless spectrum, put the spectrum into service, provide additional capacity for growth in our networks, invest in the fiber that supports our businesses, evolve and maintain our networks and develop and maintain significant advanced information technology systems and data system capabilities.
Changes in the carrying amount of Goodwill are as follows:
−Removed: (dollars in millions)
−Removed: Consumer Business Other Total
+Added: (dollars in millions) Consumer
+Added: Business Other Total
Balance at January 1, 2023 (1)
−Removed: Acquisitions (1)
−Removed: Reclassifications, adjustments and others (2)
$ 21,142 $ 7,502 $ 27 $ 28,671
−Removed: Balance at December 31, 2022 (3)
−Removed: 21,142 7,502 27 28,671
−Removed: Acquisitions 35 — — 35
Verizon Business Group goodwill impairment
4 unchanged sentences
21,177 1,666 — 22,843
−Removed: (1) Changes in goodwill due to acquisitions is related to TracFone.
−Removed: See Note 3 for additional information.
−Removed: (2) Includes a goodwill impairment charge of $ 16 million related to an early stage development company presented within Other, recorded in Selling, general and administrative expense in our consolidated statement of income for the year ended December 31, 2022.
−Removed: (3) Goodwill balances are net of an accumulated impairment charge of $ 16 million presented within both Other and Total at December 31, 2022.
+Added: Reclassifications, adjustments and other — ( 2 ) — ( 2 )
+Added: Balance at December 31, 2024 (3)
+Added: $ 21,177 $ 1,664 $ — $ 22,841
+Added: (1) Goodwill balances are net of an accumulated impairment charge of $ 16 million presented within both Other and Total.
(2) Includes a goodwill impairment charge of $ 27 million related to non-strategic businesses presented within Other, recorded in Selling, general and administrative expense in our consolidated statement of income for the year ended December 31, 2023.
−Removed: (5) Goodwill balances are net of accumulated impairment charges of $ 5.8 billion, $ 43 million and $ 5.9 billion presented within Business, Other and Total, respectively, at December 31, 2023.
+Added: (3) Goodwill balances are net of accumulated impairment charges of $ 5.8 billion, $ 43 million and $ 5.9 billion presented within Business, Other and Total, respectively.
During the fourth quarter of 2023, we performed a qualitative impairment assessment for our Consumer reporting unit.
−Removed: Our qualitative impairment assessment indicated that it was more likely than not that the fair value of our Consumer reporting unit exceeded its carrying value and, therefore, did not result in an impairment.
−Removed: During the fourth quarter of 2023, we performed a quantitative impairment assessment for our Business reporting unit given the low excess of fair value over carrying value identified in our prior annual impairment assessment and increased competitive and market pressures experienced throughout 2023.
−Removed: These pressures have resulted in lower projected cash flows primarily driven by secular declines in wireline services and products across our Business customer groups.
−Removed: In connection with Verizon’s annual budget process in the fourth quarter, leadership completed a comprehensive five-year strategic planning review of our Business
−Removed: reporting unit resulting in declines in financial projections driven by market dynamics as compared to the prior year five-year strategic planning cycle.
−Removed: The revised projections were used as a key input into the Business reporting unit’s annual goodwill impairment test performed in the fourth quarter.
−Removed: In addition, changes in the macroeconomic environment, including interest rate and inflationary pressures have also impacted the fair value of the reporting unit.
−Removed: We applied a combination of a market approach and a discounted cash flow method, as a form of the income approach, reflecting current assumptions and inputs, including our revised projections, discount rate and expected growth rates, which resulted in the determination that the fair value of our Business reporting unit was less than its carrying amount.
−Removed: As a result, in the fourth quarter of 2023, we recorded a non-cash goodwill impairment charge of approximately $ 5.8 billion ($ 5.8 billion after-tax) in our consolidated statement of income.
−Removed: We performed a qualitative impairment assessment for our Consumer reporting unit in 2022.
Our qualitative assessment indicated that it was more likely than not that the fair value of our Consumer reporting unit exceeded its carrying value and, therefore, did not result in an impairment.
−Removed: We performed a quantitative impairment assessment for our Business reporting unit in 2022.
−Removed: At the goodwill impairment measurement date of October 31, 2022, our quantitative assessment indicated that the fair value for our Business reporting unit exceeded its carrying amount and, therefore, did not result in an impairment.
+Added: During the fourth quarter of 2024, we performed a quantitative impairment assessment for our Consumer reporting unit in accordance with our policy.
+Added: We applied a combination of a market approach and a discounted cash flow method reflecting current assumptions and inputs, including our revised projections, discount rate and expected growth rates.
+Added: Our assessment indicated that the fair value of our Consumer reporting unit exceeded its carrying value and, therefore, did not result in an impairment.
+Added: During the fourth quarter of 2023, we performed a quantitative impairment assessment for our Business reporting unit given the low excess of fair value over carrying value identified in our 2022 annual impairment assessment and increased competitive and market pressures experienced throughout 2023.
+Added: These pressures resulted in lower projected cash flows primarily driven by secular declines in wireline services and products across our Business customer groups.
+Added: In connection with Verizon’s annual budget process in the fourth quarter of 2023, leadership completed a comprehensive five-year strategic planning review of our Business reporting unit resulting in declines in financial projections driven by market dynamics as compared to the prior year five-year strategic planning cycle.
+Added: The revised projections were used as a key input into the Business reporting unit’s annual goodwill impairment test performed in the fourth quarter of 2023.
+Added: In addition, changes in the macroeconomic environment, including interest rate and inflationary pressures also impacted the fair value of the reporting unit.
+Added: We applied a combination of a market approach and a discounted cash flow method reflecting current assumptions and inputs, including our revised projections, discount rate and expected growth rates, which resulted in the determination that the fair value of our Business reporting unit was less than its carrying amount.
+Added: As a result, in the fourth quarter of 2023, we recorded a noncash goodwill impairment charge of approximately $ 5.8 billion ($ 5.8 billion after-tax) in our consolidated statement of income.
+Added: During the fourth quarter of 2024, we performed a quantitative impairment assessment for our Business reporting unit given the impairment of the Business reporting unit's goodwill in the prior year.
+Added: In addition, the Business reporting unit has continued to experience competitive and market pressures throughout 2024, that may persist over the near term.
+Added: We applied a combination of a market approach and a discounted cash flow method reflecting current assumptions and inputs, including our revised projections, discount rate and expected growth rates, which indicated that the fair value of our Business reporting unit exceeded its carrying value and, therefore, did not result in an impairment.
+Added: We do not anticipate reasonable changes in significant assumptions to change the outcome of the quantitative impairment assessment.
+Added: However, management believes there is a continued risk that our Business reporting unit may be required to recognize an impairment charge in the future.
+Added: A projected sustained decline in the reporting unit's revenues and earnings could have a significant negative impact on its fair value and could result in impairment charges.
+Added: Such a decline could be driven by, among other things:
+Added: (1) decreases in sales volumes or long-term growth rate as a result of competitive pressures or other factors;
+Added: or (2) the inability to achieve or delays in achieving the goals in strategic initiatives.
+Added: Adverse changes to macroeconomic factors, such as increases in long-term interest rates, would also negatively impact the fair value of the reporting unit.
Other Intangible Assets
7 unchanged sentences
$ 4,242 $ ( 2,629 ) $ 1,613 $ 4,335 $ ( 2,193 ) $ 2,142
−Removed: Non-network internal-use software ( 7 years)
+Added: Non-network internal-use software ( 3 to 7 years)
28,136 ( 19,743 ) 8,393 25,524 ( 17,949 ) 7,575
31 unchanged sentences
We include options to extend the lease when it is reasonably certain that we will exercise that option.
+Added: During December 2024, we completed a transaction with Vertical Bridge REIT, LLC (Vertical Bridge) pursuant to which Vertical Bridge obtained the exclusive rights to lease, operate and manage over 6,000 wireless towers from Verizon in exchange for an upfront payment of $ 2.8 billion.
+Added: Under the terms of the agreement, Vertical Bridge has exclusive rights to lease, operate and manage the towers over an average term of approximately 30 years, with the option to acquire the towers at the end of the lease terms.
+Added: We have leased back a portion of the 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.
+Added: We continue to include the towers in Property, plant and equipment, net in our consolidated balance sheets and depreciate them accordingly.
+Added: The upfront payment, which is primarily included within Other liabilities on our consolidated balance sheet, is accounted for as prepaid rent and as a financing obligation.
+Added: We recorded prepaid rent of $ 2.0 billion related to the portion of the towers for which the right-of-use has passed to Vertical Bridge, which is reflected in Cash flows from operating activities in our consolidated statements of cash flows.
+Added: In addition, we recorded a financing obligation of $ 830 million related to the portion of the towers that we continue to occupy and use for network operations, which is reflected in Cash flows from financing activities in our consolidated statements of cash flows.
During March 2015, we completed a transaction with American Tower Corporation (American Tower) pursuant to which American Tower acquired the exclusive rights to lease and operate approximately 11,300 of our wireless towers for an upfront payment of $ 5.0 billion.
1 unchanged sentence
We continue to include the towers in Property, plant and equipment, net in our consolidated balance sheets and depreciate them accordingly.
−Removed: In addition to the rights to lease and operate the towers, American Tower assumed the interest in the underlying ground leases related to these towers.
−Removed: While American Tower can renegotiate the terms of and is responsible for paying the ground leases, we are still the primary obligor for these leases and accordingly, the present value of these ground leases are included in our operating lease right-of-use assets and operating lease liabilities.
−Removed: We do not expect to be required to make ground lease payments unless American Tower defaults, which we determined to be remote.
+Added: In addition to the rights to lease and operate the towers, Vertical Bridge and American Tower assumed the interest in the underlying ground leases related to these towers.
+Added: While Vertical Bridge and American Tower can renegotiate the terms of and are responsible for paying the ground leases, we are still the primary obligor for these leases and accordingly, the present value of these ground leases are included in our operating lease right-of-use assets and operating lease liabilities.
+Added: We do not expect to be required to make ground lease payments unless Vertical Bridge or American Tower defaults, which we determined to be remote.
The components of net lease cost were as follows:
76 unchanged sentences
Alltel Corporation < 5 Years 6.80
−Removed: Operating telephone company subsidiaries—debentures < 5 Years 6.00 - 6.50
5-10 Years 6.80 - 7.88
+Added: Operating telephone company subsidiaries – debentures
< 5 Years 6.00 - 8.38
+Added: 5-10 Years 5.13 - 8.75
Other subsidiaries – asset-backed debt
< 5 Years 0.50 - 6.09
+Added: 16,363 14,048
< 5 Years Floating (1)
7 unchanged sentences
Long-term debt maturing within one year $ 22,568 $ 12,973
−Removed: Add commercial paper — 150
+Added: Add short-term vendor financing arrangements (2)
Debt maturing within one year $ 22,633 $ 12,973
1 unchanged sentence
Total debt $ 144,014 $ 150,674
+Added: N/A - not applicable
(1) For the period ending December 2024, the debt obligations bore interest at floating rates, including floating rates associated with the Secured Overnight Financing Rate (SOFR) for the interest period plus an applicable interest margin per annum.
Floating rates associated with SOFR for the interest payments made in December 2024 ranged from 4.598 % to 5.556 %.
−Removed: For the period ending December 2022, the debt obligations bore interest at a floating rate associated with SOFR for the interest period or the London Interbank Offered Rate plus an applicable interest margin per annum, as applicable.
(2) Finance lease and vendor financing obligations are part of alternative financing arrangements.
9 unchanged sentences
The net proceeds were primarily used for general corporate purposes including the repayment of debt and the funding of certain renewable energy projects.
−Removed: We used $ 13.6 billion of cash to repay, redeem and repurchase long-term borrowings and finance lease obligations, including $ 4.9 billion to prepay and repay asset-backed, long-term
+Added: We used $ 10.6 billion of cash to repay and repurchase long-term borrowings and finance lease obligations, including $ 4.4 billion to prepay and repay asset-backed, long-term borrowings.
The net proceeds of approximately $ 1.0 billion from the notes issued in 2023 were used to fund certain renewable energy projects.
2 unchanged sentences
The following tables show the significant transactions involving the senior unsecured debt securities of the Company and its subsidiaries that occurred during the year ended December 31, 2024.
+Added: Exchange Offers
+Added: (dollars in millions) Principal Amount Exchanged
+Added: Principal Amount Issued
+Added: Verizon 0.850 % - 4.329 % notes and floating rate notes, due 2025 - 2028
+Added: Verizon 4.780 % notes due 2035 (1)
+Added: $ 2,256 $ 2,191
+Added: (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.
+Added: (2) The debt exchange offers above meet the criteria to be accounted for as a modification of debt.
+Added: 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 consolidated balance sheets.
Tender Offers
(dollars in millions) Principal Amount Purchased Cash Consideration (1)
+Added: Verizon 0.875 % - 3.250 % notes due 2025 - 2028
+Added: € 1,981 $ 2,237
Verizon 0.850 % - 3.376 % notes and floating rate notes, due 2025 - 2026
1 unchanged sentence
(1) The total cash consideration includes the tender offer consideration, plus any accrued and unpaid interest to the date of purchase.
+Added: In addition, for securities denominated in a currency other than the U.S.
+Added: dollar, cash consideration is shown on a U.S.
+Added: dollar equivalent basis and includes the amount payable per the derivatives entered into in connection with the transaction.
+Added: See Note 9 for additional information on cross currency swap transactions related to the transaction.
Repayments and Repurchases
(dollars in millions) Principal Repaid/ Repurchased Amount Paid (1)
−Removed: Verizon 3.500 % notes and floating rate notes due 2023 (2)
−Removed: A$ 1,050 $ 850
−Removed: Verizon 0.375 % bonds due 2023 (2)
+Added: Verizon 1.625 % notes due 2024
+Added: Verizon 4.073 % notes due 2024
+Added: Verizon 0.750 % notes due 2024
+Added: Verizon floating rate notes due 2024 95 96
+Added: Verizon 3.500 % notes due 2024
Open market repurchases of various Verizon notes (2)
3 unchanged sentences
dollar, amount paid is shown on a U.S.
−Removed: dollar equivalent basis.
−Removed: dollar amount paid represents the amount payable at maturity per the derivatives entered into in connection with the transaction.
−Removed: See Note 9 for additional information on cross currency swap transactions related to the repayment.
+Added: dollar equivalent basis and includes the amount payable per the derivatives entered into in connection with the transaction.
+Added: See Note 9 for additional information on cross currency swap transactions related to the transaction.
(2) During 2024, we recorded gains of $ 267 million in connection with the open market repurchases, which were reflected within Other income (expense), net in our consolidated statement of income.
2 unchanged sentences
€ 1,000 $ 1,062
+Added: Verizon 3.750 % notes due 2036
+Added: € 1,000 1,061
+Added: Verizon 5.500 % notes due 2054 (2)
+Added: Total $ 3,103
(1) Net proceeds were net of underwriting discounts and other issuance costs.
−Removed: (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 January 1, 2023 through the maturity date of the notes.
−Removed: Short-Term Borrowing and Commercial Paper Program
−Removed: In March 2023, we entered into and fully drew from a $ 500 million short-term revolving credit facility.
−Removed: In July 2023, the short-term revolving credit facility matured and was fully repaid.
−Removed: As of December 31, 2023, we had no short-term borrowing outstanding.
−Removed: In 2023, we issued $ 15.9 billion in commercial paper and we repaid $ 16.1 billion of commercial paper.
−Removed: As of December 31, 2023, we had no commercial paper outstanding.
+Added: In addition, for securities denominated in a currency other than the U.S.
+Added: dollar, net proceeds are shown on a U.S.
+Added: dollar equivalent basis.
+Added: See Note 9 for additional information on cross currency swap transactions related to the issuances.
+Added: (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.
+Added: Commercial Paper Program
+Added: In 2024, we issued $ 27.5 billion in net proceeds and made $ 27.5 billion in principal repayments of commercial paper.
These transactions are reflected within Cash flows from financing activities in our consolidated statements of cash flows on a net basis.
+Added: As of December 31, 2024, we had no commercial paper outstanding.
Asset-Backed Debt
15 unchanged sentences
Series 2024-1
−Removed: A Senior class notes 4.490 2.98 $ 891
+Added: A-1a Senior class notes 5.000 1.92 $ 835
+Added: A-1b Senior class notes Compounded SOFR + 0.650
B Junior class notes 5.240 1.92 —
C Junior class notes 5.490 1.92 51
−Removed: January 2023 total 932
Series 2024-2
2 unchanged sentences
C Junior class notes 5.320 4.92 31
+Added: January 2024 total 1,915
Series 2024-3
−Removed: A Senior class notes 4.730 4.99 268
+Added: A-1a Senior class notes 5.340 2.99 605
+Added: A-1b Senior class notes Compounded SOFR + 0.580
B Junior class notes 5.540 2.99 59
2 unchanged sentences
Series 2024-4
−Removed: A-1a Senior fixed rate class notes 5.160 2.97 538
−Removed: A-1b Senior floating rate class notes Compounded SOFR + 0.850
+Added: A-1a Senior class notes 5.210 1.98 289
+Added: A-1b Senior class notes Compounded SOFR + 0.550
B Junior class notes 5.400 1.98 41
C Junior class notes 5.600 1.98 25
+Added: Series 2024-5
+Added: A Senior class notes 5.000 4.98 512
+Added: B Junior class notes 5.250 4.98 39
+Added: C Junior class notes 5.490 4.98 24
June 2024 total 1,176
1 unchanged sentence
Series 2024-6
−Removed: A-1a Senior fixed rate class notes 5.610 2.00 265
−Removed: A-1b Senior floating rate class notes Compounded SOFR + 0.680
+Added: A-1a Senior class notes 4.170 2.92 1,069
+Added: A-1b Senior class notes Compounded SOFR + 0.670
B Junior class notes 4.420 2.92 —
5 unchanged sentences
September 2024 total
+Added: (dollars in millions) Interest Rates % Expected Weighted-average Life to Maturity (in years) Principal Amount Issued
November 2024
Series 2024-8
−Removed: A-1a Senior fixed rate class notes 5.670 3.00 435
−Removed: A-1b Senior floating rate class notes Compounded SOFR + 0.950
+Added: A-1a Senior class notes 4.620 2.98 $ 816
+Added: A-1b Senior class notes Compounded SOFR + 0.420
B Junior class notes 4.820 2.98 68
2 unchanged sentences
Total $ 6,923
−Removed: Under the terms of each series of ABS Notes outstanding as of December 31, 2023, there is a revolving period of up to 18 months, two years , three years , or five years , as applicable, during which we may transfer additional receivables to the ABS
−Removed: During the year ended December 31, 2023 , we made aggregate principal repayments of $ 3.7 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.
−Removed: During the year ended December 31, 2022 , we made aggregate principal repayments of $ 4.3 billion in connection with ABS Notes that have entered the amortization period, including payments in connection with any note redemptions.
+Added: Under the terms of each series of ABS Notes outstanding as of December 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.
+Added: During the years ended December 31, 2024 and 2023 , we made aggregate principal repayments of $ 4.5 billion and $ 3.7 billion, respectively, 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 January 2025, we issued $ 1.1 billion aggregate principal amount of two series of senior and junior ABS Notes, with a blended interest rate of approximately 4.740 % and 4.970 %, through an ABS Entity.
1 unchanged sentence
ABS Financing Facilities
−Removed: Under the two loan agreements outstanding in connection with the ABS Financing Facility originally entered into in December 2021 and previously renewed in 2022 (2021 ABS Financing Facility), we borrowed an additional $ 325 million in March 2023 and prepaid an aggregate of $ 700 million in April 2023.
−Removed: In December 2023, we renewed the loan agreements in connection with the 2021 ABS Financing Facility which reset the revolving periods by 18 months, and we borrowed an additional $ 925 million.
+Added: 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 in September 2024, borrowed an additional $ 450 million in September 2024, borrowed an additional $ 1.6 billion in October 2024 and borrowed an additional $ 650 million in December 2024.
The aggregate outstanding balance under the 2021 ABS Financing Facility was $ 8.0 billion as of December 31, 2024.
−Removed: In January 2024, we prepaid an aggregate of $ 900 million under the loan agreements outstanding in connection with the 2021 ABS Financing Facility.
−Removed: In March 2023, we borrowed an additional $ 500 million under the loan agreement outstanding in connection with the ABS Financing Facility that we originally entered into in 2022 (2022 ABS Financing Facility).
−Removed: In December 2023, we renewed the loan agreement in connection with the 2022 ABS Financing Facility which reset the revolving period by one year , and we borrowed an additional $ 450 million.
+Added: Under the loan agreement outstanding in connection with the ABS Financing Facility originally entered into in 2022 and initially renewed in 2023 (2022 ABS Financing Facility), we borrowed an additional $ 1.1 billion in June 2024.
+Added: In December 2024, we renewed the loan agreement in connection with the 2022 ABS Financing Facility which reset the revolving period by one year and we borrowed an additional $ 1.0 billion.
T he aggregate outstanding balance under the 2022 ABS Financing Facility was $ 5.0 billion as of December 31, 2024 .
11 unchanged sentences
Long-term debt 8,827 14,700
−Removed: The Accounts receivable, net amount above does not include underlying receivables for which a participation interest has been transferred to the ABS Entities.
+Added: The Accounts receivable, net amounts above do not include underlying receivables for which a participation interest has been transferred to the ABS Entities.
See Note 8 for additional information on certain receivables and participation interest used to secure asset-backed debt.
5 unchanged sentences
Various export credit facilities (2)
−Removed: 2024 - 2031 11,000 —
Total $ 22,000 $ 11,963 $ 5,441
1 unchanged sentence
The revolving credit facility provides for the issuance of letters of credit.
−Removed: As of December 31, 2023, there have been no drawings against the $ 9.5 billion revolving credit facility since its inception.
−Removed: (2) During 2023 and 2022, we drew down $ 1.0 billion and $ 3.0 billion, respectively, from these facilities.
+Added: As of December 31, 2024, there have been no drawings against the revolving credit facility since its inception.
+Added: (2) During 2024, there were no drawings from these facilities.
+Added: During 2023, we drew down $ 1.0 billion from these facilities.
Borrowings under certain of these facilities are amortized semi-annually in equal installments up to the applicable maturity dates.
1 unchanged sentence
Any amounts borrowed under these facilities and subsequently repaid cannot be reborrowed.
+Added: In March 2024, we amended our $ 9.5 billion revolving credit facility to increase the capacity to $ 12.0 billion and extended its maturity to 2028.
Non-Cash Transactions
−Removed: During the years ended December 31, 2023, 2022 and 2021, we financed, primarily through alternative financing arrangements, the purchase of approximately $ 1.3 billion, $ 832 million, and $ 461 million, respectively, of long-lived assets consisting primarily of network equipment.
+Added: During the years ended December 31, 2024, 2023 and 2022, we financed, primarily through alternative financing arrangements, the purchase of approximately $ 1.6 billion, $ 1.3 billion and $ 832 million, respectively, of long-lived assets consisting primarily of network equipment.
As of December 31, 2024 and 2023, $ 2.5 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.
1 unchanged sentence
Net Debt Extinguishment Gains (Losses)
−Removed: During the year ended December 31, 2023 , we recorded net debt extinguishment gains of $ 308 million.
−Removed: During the years ended December 31, 2022 and 2021, we recorded net debt extinguishment losses of $ 1.1 billion and $ 3.6 billion, respectively.
+Added: During the years ended December 31, 2024 and 2023, we recorded net debt extinguishment gains of $ 385 million and $ 308 million, respectively.
+Added: During the year ended December 31, 2022, we recorded net debt extinguishment losses of $ 1.1 billion.
The net gains and losses are recorded in Other income (expense), net in our consolidated statements of income.
−Removed: The total gains and losses are reflected within Other, net cash flow from operating activities, and the portion of the gains and losses representing cash payments are reflected within Other, net cash flow from financing activities in our consolidated statements of cash flows.
+Added: The total non-cash debt extinguishment gains are reflected within Other, net cash flow from operating activities, and the total cash payments to extinguish the debt are reflected within Other, net cash flow from financing activities in our consolidated statements of cash flows.
We guarantee the debentures of our operating telephone company subsidiaries.
12 unchanged sentences
(1) Other receivables primarily include wireline and other receivables, of which the allowances are individually insignificant.
−Removed: Included in Other assets and Accounts receivable, net at December 31, 2023 and December 31, 2022 are net device payment plan agreement receivables and net wireless service receivables of $ 26.1 billion and $ 23.6 billion, respectively, which have been transferred to ABS Entities and continue to be reported in our consolidated balance sheets.
−Removed: Included in Accounts receivable, net at December 31, 2023 are net other receivables of $ 911 million, on which a participation interest has been transferred to ABS Entities and continue to be reported in our consolidated balance sheet.
+Added: Included in Other assets and Accounts receivable, net at December 31, 2024 are net device payment plan agreement receivables, net wireless service receivables and net other receivables of $ 29.9 billion, which have been transferred to ABS Entities and continue to be reported in our consolidated balance sheet.
+Added: 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 consolidated balance sheet.
+Added: Included in Accounts receivable, net at December 31, 2024 and December 31, 2023 are net other receivables of $ 1.2 billion and $ 911 million, respectively, on which a participation interest has been transferred to ABS Entities and continue to be reported in our consolidated balance sheets.
See Note 7 for additional information.
1 unchanged sentence
Under the Verizon device payment program, our eligible wireless customers purchase wireless devices under a device payment plan agreement.
−Removed: Customers that activate service on devices purchased under the device payment program pay lower service fees as compared to those under our fixed-term service plans, and their device payment plan charge is included on their wireless monthly bill.
−Removed: We no longer offer Consumer customers new fixed-term, subsidized service plans for devices;
−Removed: however, we continue to offer subsidized plans to our Business customers.
+Added: Customers that activate service on devices purchased under the device payment program generally pay lower service fees as compared to those under our fixed-term service plans, and their device payment plan charge is included on their wireless monthly bill.
+Added: While we no longer offer Consumer customers fixed-term subsidized service plans for devices, we continue to offer subsidized plans to our Business customers.
We also continue to service existing plans for customers who have not yet purchased and activated devices under the Verizon device payment program.
19 unchanged sentences
When a customer enters into a device payment plan agreement with the right to upgrade to a new device, we account for this trade-in right as a guarantee obligation.
−Removed: We recognize a liability measured at fair value for the customer’s right to trade in the device which is determined by considering several factors, including the weighted-average selling prices obtained in recent resales of similar devices eligible for trade-in.
−Removed: At December 31, 2023 and December 31, 2022, the amount of the guarantee liability was insignificant and $ 54 million, respectively.
We may offer certain promotions that allow a customer to trade in their owned device in connection with the purchase of a new device.
7 unchanged sentences
Verizon’s experience has been that the payment attributes of longer tenured customers are highly predictive for estimating their reliability to make future payments.
−Removed: 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.
+Added: 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
+Added: 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.
−Removed: If a Consumer customer has been a customer less than 45 days, or a Business customer has
−Removed: 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.
+Added: If a Consumer customer has been a customer less than 45 days, or a Business customer has been a customer for less than 12 months, the customer is considered a "short-tenured customer." For short-tenured customers, the credit decision and credit monitoring processes rely more heavily on external data sources.
Available external credit data from credit reporting agencies along with internal data are used to create custom credit risk scores for Consumer customers.
11 unchanged sentences
Year of Origination (1)
−Removed: (dollars in millions) 2023 2022 2021 and prior Total
+Added: (dollars in millions) 2024 2023 2022 and prior
Device payment plan agreement receivables, at amortized cost
11 unchanged sentences
Year of Origination
−Removed: (dollars in millions) 2023 2022 and prior Total
+Added: (dollars in millions) 2024 2023 and prior
Wireless service receivables, at amortized cost $ 5,760 $ 49 $ 5,809
5 unchanged sentences
The expected loss rate is determined based on customer credit scores and other qualitative factors as noted above.
−Removed: The loss rate is assigned individually on a customer by customer basis and the custom credit scores are then aggregated by vintage and used in our proprietary loss model to calculate the weighted-average loss rate used for determining the allowance balance.
+Added: The loss rate is assigned individually on a customer by customer basis and the custom credit scores are then
+Added: aggregated by vintage and used in our proprietary loss model to calculate the weighted-average loss rate used for determining the allowance balance.
We monitor the collectability of our wireless service receivables as one overall pool.
Wireline service receivables are disaggregated and pooled by the following types of customers and related contracts:
−Removed: consumer, small and medium business,
−Removed: enterprise, public sector and wholesale.
+Added: 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.
6 unchanged sentences
Balance at January 1, 2024
+Added: $ 1,151 $ 213
Current period provision for expected credit losses 1,585 538
21 unchanged sentences
Fixed income securities $ — $ 16 $ — $ 16
−Removed: Cross currency swaps — 4 — 4
−Removed: Foreign exchange forwards — 4 — 4
Interest rate caps — 3 — 3
2 unchanged sentences
Cross currency swaps — 500 — 500
−Removed: Interest rate caps — 7 — 7
Total $ — $ 788 $ — $ 788
2 unchanged sentences
Cross currency swaps — 345 — 345
−Removed: Interest rate caps — 37 — 37
Foreign exchange forwards — 5 — 5
−Removed: Contingent consideration — — 52 52
+Added: Interest rate caps — 3 — 3
Other liabilities:
1 unchanged sentence
Cross currency swaps — 2,344 — 2,344
−Removed: Interest rate caps — 7 — 7
Total $ — $ 7,999 $ — $ 7,999
17 unchanged sentences
Cross currency swaps — 294 — 294
−Removed: Interest rate caps — 63 — 63
Foreign exchange forwards — 1 — 1
+Added: Interest rate caps — 37 — 37
Contingent consideration — — 52 52
3 unchanged sentences
Interest rate caps — 7 — 7
−Removed: Contingent consideration — — 43 43
Total $ — $ 6,601 $ 52 $ 6,653
7 unchanged sentences
Cumulative adjustments due to observable price changes and impairment charges were approximately $ 186 million and $ 120 million, respectively.
−Removed: Verizon has a liability for contingent consideration related to its acquisition of TracFone, completed in November 2021.
−Removed: The fair value is calculated using a probability-weighted discounted cash flow model and represents a Level 3 measurement.
+Added: Verizon had a liability for contingent consideration related to its acquisition of TracFone, completed in November 2021.
+Added: The fair value was calculated using a probability-weighted discounted cash flow model and represented a Level 3 measurement.
Level 3 instruments include valuation based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants.
−Removed: Subsequent to the Acquisition Date, at each reporting date, the contingent consideration liability is remeasured to fair value.
+Added: Subsequent to the Acquisition Date, at each reporting date, the contingent consideration liability was remeasured to fair value.
+Added: Contingent consideration payments were completed in January of 2024.
During 2024 and 2023, we made payments of $ 52 million and $ 257 million, respectively, related to the contingent consideration.
−Removed: The payments were completed in January of 2024.
See Note 3 for additional information.
12 unchanged sentences
At December 31, 2024
+Added: $ 141,665 $ 81,552 $ 55,464 $ — $ 137,016
At December 31, 2023
+Added: 148,583 86,806 58,804 — 145,610
Derivative Instruments
18 unchanged sentences
Notional value settled 3,619 1,450
−Removed: Pre-tax loss recognized in Other comprehensive income (loss) (1)
Pre-tax gain (loss) on cross currency swaps recognized in Interest expense ( 1,839 ) 1,119
2 unchanged sentences
Initial value of the excluded component amortized into Interest expense 96 109
−Removed: Forward Starting Interest Rate Swaps:
−Removed: Notional value entered into — —
−Removed: Notional value settled — 1,000
−Removed: Pre-tax gain recognized in Other comprehensive income (loss)
Treasury Rate Locks:
1 unchanged sentence
Notional value settled 1,000 500
−Removed: Pre-tax gain recognized in Other comprehensive income (loss)
−Removed: N/A - not applicable
−Removed: (1) Represents amounts recorded under the cash flow hedge model.
−Removed: These instruments were re-designated as fair value hedges on March 31, 2022.
+Added: Pre-tax gain (loss) recognized in Other comprehensive income (loss)
(dollars in millions)
1 unchanged sentence
Other, net Cash Flows from Operating Activities:
−Removed: Cash received for settlement of interest rate swaps $ — $ 40
−Removed: Cash paid for settlement of forward starting interest rate swaps — ( 107 )
−Removed: Cash received for settlement of treasury rate locks 5 —
+Added: Cash paid for settlement of interest rate swaps
+Added: Cash received (paid) for settlement of treasury rate locks
Other, net Cash Flows from Financing Activities:
14 unchanged sentences
Cross Currency Swaps
−Removed: We have entered into cross currency swaps previously designated as cash flow hedges through March 31, 2022 to exchange our British Pound Sterling, Euro, Swiss Franc, Canadian Dollar and Australian Dollar-denominated cash flows into U.S.
+Added: We have entered into cross currency swaps to exchange our British Pound Sterling, Euro, Swiss Franc, Canadian Dollar and Australian Dollar-denominated cash flows into U.S.
dollars and to fix our cash payments in U.S.
dollars, as well as to mitigate the impact of foreign currency transaction gains or losses.
−Removed: A portion of the loss recognized in Other comprehensive income (loss) was reclassified to Interest expense to offset the related pre-tax foreign currency transaction gain or loss on the underlying hedged item.
−Removed: On March 31, 2022, we elected to de-designate our cross currency swaps as cash flow hedges and re-designated these swaps as fair value hedges.
−Removed: For these hedges, we have elected to exclude the change in fair value of the cross currency swaps related to both time value and cross currency basis spread from the assessment of hedge effectiveness (the excluded components).
−Removed: 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 .
−Removed: We estimate that $ 104 million will be amortized into Interest expense within the next 12 months.
−Removed: In addition to the previously mentioned cross currency swaps, we have executed additional cross currency swaps to exchange Euro-denominated cash flows into U.S.
−Removed: dollars to fix our cash payments in U.S.
These swaps are designated as fair value hedges.
5 unchanged sentences
Unrealized gains or losses on excluded components are recorded in Other comprehensive income (loss) and are recognized into Interest expense on a systematic and rational basis through the swap accrual over the life of the hedging instrument.
+Added: On March 31, 2022, we elected to de-designate our cross currency swaps previously designated as cash flow hedges and re-designated these swaps as fair value hedges.
The amount remaining in Accumulated other comprehensive loss related to cash flow hedges on the date of transition will be reclassified to earnings when the hedged item is recognized in earnings or when it becomes probable that the forecasted transactions will not occur.
+Added: For the fair value hedges, we elected to exclude the change in fair value of the cross currency swaps related to both time value and cross currency basis spread from the assessment of hedge effectiveness (the excluded components).
+Added: 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 years ended December 31, 2024 and 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 14 for additional information.
−Removed: Forward Starting Interest Rate Swaps
−Removed: From time to time we enter into forward starting interest rate swaps designated as cash flow hedges in order to manage our exposure to interest rate changes on future forecasted transactions .
−Removed: We hedge our exposure to the variability in future cash flows based on the expected maturities of the related forecasted debt issuance.
−Removed: We recognize gains and losses resulting from interest rate movements in Other comprehensive income (loss).
+Added: We estimate that $ 94 million will be amortized into Interest expense within the next 12 months.
Treasury Rate Locks
−Removed: We have entered into treasury rate locks designated as cash flow hedges to mitigate our interest rate risk on future transactions.
+Added: 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).
12 unchanged sentences
Pre-tax gain (loss) recognized in Other income (expense), net
−Removed: Notional value sold — 1,000
−Removed: Notional value settled — 1,000
−Removed: Pre-tax loss recognized in Interest expense — ( 33 )
Foreign Exchange Forwards
−Removed: We enter into British Pound Sterling and Euro foreign exchange forwards to mitigate our foreign exchange rate risk related to non-functional currency denominated monetary assets and liabilities of international subsidiaries.
−Removed: We enter into swaptions to achieve a targeted mix of fixed and variable rate debt.
+Added: We entered into British Pound Sterling and Euro foreign exchange forwards to mitigate our foreign exchange rate risk related to non-functional currency denominated monetary assets and liabilities of international subsidiaries.
Concentrations of Credit Risk
25 unchanged sentences
The PSUs that are paid in stock upon vesting and are classified as equity awards are measured using the grant date fair value of Verizon common stock and are not remeasured at the end of each reporting period.
−Removed: The PSUs that are settled in cash and are classified as liability awards are measured at its fair value at the end of each reporting period and, therefore, will fluctuate based on the price of Verizon common stock as well as performance relative to the targets.
+Added: The PSUs that
+Added: are settled in cash and are classified as liability awards are measured at its fair value at the end of each reporting period and, therefore, will fluctuate based on the price of Verizon common stock as well as performance relative to the targets.
All PSUs granted under the 2017 Plan have DEUs, which will be paid to participants if, and only to the extent the applicable PSU award vests, and is paid at the time that PSU award is paid, and in the same proportion as the PSU award.
44 unchanged sentences
Settlements paid ( 725 ) ( 198 ) — —
+Added: Annuity contracts transfer
+Added: ( 5,611 ) — — —
End of year 7,918 15,133 10,539 11,455
5 unchanged sentences
Settlements paid ( 725 ) ( 198 ) — —
+Added: Annuity contracts transfer
+Added: ( 5,611 ) — — —
End of year 6,802 13,536 466 466
4 unchanged sentences
Amounts recognized in the balance sheets
−Removed: Non-current assets $ — $ 4 $ — $ —
Current liabilities $ ( 38 ) $ ( 42 ) $ ( 643 ) $ ( 685 )
5 unchanged sentences
The accumulated benefit obligation for all defined benefit pension plans was $ 7.9 billion and $ 15.1 billion at December 31, 2024 and 2023, respectively.
+Added: Pension Annuitization
+Added: 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 $ 5.8 billion of benefit liabilities of the Pension Plans, net of certain adjustments, resulting in a net pre-tax settlement gain of $ 200 million.
+Added: The purchase of the group annuity contracts closed on March 6, 2024.
+Added: The group annuity contracts primarily cover a population that includes 56,000 retirees who commenced benefit payments from the Pension Plans prior to January 1, 2023 (Transferred Participants).
+Added: Prudential and RGA each irrevocably guarantee and assume the sole obligation to make future payments to the Transferred Participants as provided under their respective group annuity contracts, with direct payments beginning July 1, 2024.
+Added: The aggregate amount of each Transferred Participant's payment under the group annuity contracts will be equal to the amount of each individual’s payment under the Pension Plans.
+Added: The purchase of the group annuity contracts was funded directly by transferring $ 5.6 billion, of assets of the Pension Plans, net of certain settlements.
+Added: The Company made additional contributions to the Pension Plans prior to the closing date of the transaction, as discussed below.
+Added: With these contributions, the funded ratio of each of the Pension Plans does not change as a result of this transaction.
+Added: Pension plan assets and liabilities are primarily presented within Employee benefit obligations in our consolidated balance sheets.
Actuarial (Gain) Loss, Net
+Added: The net actuarial gain in 2024 is primarily the result of a $ 1.4 billion gain ($ 764 million in our pension plans and $ 656 million in our postretirement benefit plans) due to an increase in our discount rate assumption used to determine the current year liabilities of our pension plans and postretirement benefit plans from a weighted-average of 5.0 % for both our pension and postretirement plans at December 31, 2023 to a weighted-average of 5.8 % for our pension plans and 5.6 % for our postretirement plans at December 31, 2024, as well as a net pre-tax settlement gain of $ 200 million resulting from the pension annuitization transaction discussed above.
The net actuarial loss in 2023 is primarily the result of a $ 534 million loss in our postretirement benefit plans due to an increase in our healthcare cost trend rate assumption used to determine the current year liabilities of our postretirement benefit plans from a weighted-average of 6.6 % at December 31, 2022 to a weighted-average of 7.3 % at December 31, 2023;
and a $ 503 million loss ($ 288 million in our pension plans and $ 215 million in our postretirement benefit plans) due to a decrease in our discount rate assumption used to determine the current year liabilities of our pension plans and postretirement benefit plans from a weighted-average of 5.2 % at December 31, 2022 to a weighted-average of 5.0 % at December 31, 2023.
−Removed: The net actuarial gain in 2022 is primarily the result of a $ 7.0 billion gain ($ 4.1 billion gain in our pension plans and $ 2.9 billion gain in our postretirement benefit plans) due to an increase in our discount rate assumption used to determine the current year liabilities of our pension plans and postretirement benefit plans from a weighted-average of 2.9 % at December 31, 2021 to a weighted-average of 5.2 % at December 31, 2022.
Plan Amendments
−Removed: The reclassifications from the amounts recorded in Accumulated other comprehensive income (loss) as a result of collective bargaining agreements and plan amendments made in 2016, 2017, 2018 and 2022 resulted in a net decrease to net periodic benefit cost and net increase to pre-tax income of approximately $ 252 million, $ 390 million and $ 708 million during 2023, 2022 and 2021, respectively.
+Added: The reclassifications from the amounts recorded in Accumulated other comprehensive income (loss) as a result of collective bargaining agreements and plan amendments made in 2016, 2017, 2018 and 2022 resulted in a net increase to net periodic benefit cost and net decrease to pre-tax income of an insignificant amount during 2024.
+Added: The similar reclassifications resulted in a net decrease to net periodic benefit cost and net increase to pre-tax income of $ 252 million during 2023 and $ 390 million during 2022.
Information for pension plans with an accumulated benefit obligation in excess of plan assets follows:
52 unchanged sentences
Those estimates are based on a combination of factors including the current market interest rates and valuation levels, consensus earnings expectations and historical long-term risk premiums.
−Removed: To determine the aggregate return for the pension trust, the projected return of each individual asset class is then weighted according to the allocation to that investment area in the trust’s long-term asset allocation policy.
+Added: determine the aggregate return for the pension trust, the projected return of each individual asset class is then weighted according to the allocation to that investment area in the trust’s long-term asset allocation policy.
The assumed health care cost trend rates are as follows:
48 unchanged sentences
Balance at January 1, 2023 $ 1,002 $ 569 $ 52 $ 1,623
−Removed: Actual gain on plan assets 19 30 19 68
+Added: Actual gain (loss) on plan assets ( 54 ) 14 4 ( 36 )
Purchases (sales) 48 ( 67 ) ( 1 ) ( 20 )
54 unchanged sentences
Employer Contributions
−Removed: In 2023, we made a $ 200 million discretionary contribution to one of our qualified pension plans, $ 52 million of contributions to our nonqualified pension plans and $ 936 million of contributions to our other postretirement benefit plans.
+Added: In 2024, we made discretionary contributions in the aggregate amount of $ 365 million to the Pension Plans, $ 56 million of contributions to our nonqualified pension plans and $ 935 million of contributions to our other postretirement benefit plans.
For 2025, we expect no required qualified pension plan contributions and insignificant nonqualified pension plan contributions.
5 unchanged sentences
2025 $ 1,024 $ 754
−Removed: 2025 1,681 824
−Removed: 2026 1,639 829
2030 to 2034 2,448 4,364
10 unchanged sentences
Year Beginning of Year Charged to
−Removed: Expense Payments Other End of Year
+Added: Expense Payments End of Year
2022 $ 548 $ 319 $ ( 214 ) $ 653
1 unchanged sentence
2024 567 1,494 ( 966 ) 1,095
−Removed: Severance, Pension and Benefits (Credits) Charges
−Removed: During 2023, in accordance with our accounting policy to recognize actuarial gains and losses in the period in which they occur, we recorded net pre-tax pension and benefits charges of $ 992 million in our pension and postretirement benefit plans.
+Added: Severance, Pension and Benefits Charges (Credits)
+Added: During 2024, we recorded net pre-tax severance charges of $ 1.5 billion, p rincipally as a result of our voluntary separation program, but also as a result of other headcount reduction initiatives, in Selling, general and administrative expense in our consolidated statements of income.
+Added: In June 2024, we announced a voluntary separation program for select U.S.-based management employees.
+Added: Approximately 4,800 eligible employees will separate from Verizon under this program by the end of March 2025, with the majority of these employees having exited through December 31, 2024.
+Added: During 2023 and 2022, we recorded net pre-tax severance charges of $ 531 million and $ 319 million, respectively in Selling, general and administrative expense in our consolidated statements of income.
+Added: During 2024, in accordance with our accounting policy to recognize actuarial gains and losses in the period in which they occur, we recorded net pre-tax pension and benefits credits of $ 657 million in our pension and postretirement benefit plans.
+Added: The net gain was recorded in Other income (expense), net, in our consolidated statement of income.
+Added: This was primarily driven by a credit of $ 1.4 billion ($ 764 million for pension plans and $ 656 million for postretirement benefit plans) due to an increase in our discount rate assumption used to determine the current year liabilities of our pension plans from a weighted-average of 5.0 % for both our pension and post retirement plans at December 31, 2023 to a weighted-average of 5.8 % for our pension plans and 5.6 % for our postretirement benefit plans at December 31, 2024;
+Added: a charge of $ 1.0 billion due to the difference between our estimated and our actual return on plan assets;
+Added: and a net pre-tax settlement credit of $ 200 million resulting from the pension annuitization transaction discussed above.
+Added: During 2023, we recorded net pre-tax pension and benefits charges of $ 992 million in our pension and postretirement benefit plans.
The charges were recorded in Other income (expense), net, in our consolidated statement of income and were primarily driven by a charge of $ 534 million due to an increase in our healthcare cost trend rate assumption used to determine the current year liabilities of our postretirement benefit plans from a weighted-average of 6.6 % at December 31, 2022 to a weighted-average of 7.3 % at December 31, 2023;
a charge of $ 503 million due to a decrease in our discount rate assumption used to determine the current year liabilities of our pension plans ($ 288 million) and postretirement benefit plans ($ 215 million) from a weighted-average of 5.2 % at December 31, 2022 to a weighted-average of 5.0 % at December 31, 2023;
−Removed: a net credit of $ 45 million primarily due to changes in other actuarial adjustments, which includes the difference between our estimated and our actual return on plan assets.
−Removed: During 2023, we also recorded net pre-tax severance charges of $ 531 million in Selling, general and administrative expense in our consolidated statements of income.
−Removed: During 2022, we recorded net pre-tax pension and benefits credits of $ 1.7 billion in our pension and postretirement benefit plans.
−Removed: The credits were recorded in Other income (expense), net in our consolidated statement of income and were primarily driven by a credit of $ 7.0 billion due to an increase in our discount rate assumption used to determine the current year liabilities of our pension plans ($ 4.1 billion) and postretirement benefit plans ($ 2.9 billion) from a weighted-average of 2.9 % at December 31, 2021 to a weighted-average of 5.2 % at December 31, 2022, a charge of $ 5.5 billion due to the difference between our estimated and our actual return on assets and a credit of $ 206 million due to other actuarial assumption adjustments.
−Removed: During 2022, we also
−Removed: recorded net pre-tax severance charges of $ 319 million in Selling, general and administrative expense in our consolidated statements of income.
+Added: a net credit of $ 45 million primarily due to changes in other actuarial assumption adjustments, which includes the difference between our estimated and our actual return on plan assets.
During 2022, we recorded net pre-tax pension and benefits credits of $ 1.7 billion in our pension and postretirement benefit plans.
−Removed: The credits were recorded in Other income (expense), net in our consolidated statement of income and were primarily driven by a credit of $ 1.1 billion due to an increase in our discount rate assumption used to determine the current year liabilities of our pension plans and postretirement benefit plans from a weighted-average of 2.6 % at December 31, 2020 to a weighted-average of 2.9 % at December 31, 2021, a credit of $ 847 million due to the difference between our estimated and our actual return on assets and a credit of $ 453 million due to other actuarial assumption adjustments.
−Removed: During 2021, we also recorded net pre-tax severance charges of $ 233 million in Selling, general and administrative expense in our consolidated statements of income.
+Added: The credits were recorded in Other income (expense), net in our consolidated statement of income and were primarily driven by
+Added: a credit of $ 7.0 billion due to an increase in our discount rate assumption used to determine the current year liabilities of our pension plans ($ 4.1 billion) and postretirement benefit plans ($ 2.9 billion) from a weighted-average of 2.9 % at December 31, 2021 to a weighted-average of 5.2 % at December 31, 2022, a charge of $ 5.5 billion due to the difference between our estimated and our actual return on assets and a credit of $ 206 million due to other actuarial assumption adjustments.
The components of income before provision for income taxes are as follows:
17 unchanged sentences
The following table shows the principal reasons for the difference between the effective income tax rate and the statutory federal income tax rate:
−Removed: Years Ended December 31, 2023 2022 2021
−Removed: Statutory federal income tax rate 21.0 % 21.0 % 21.0 %
−Removed: State and local income tax rate, net of federal tax benefits 3.6 3.9 3.8
−Removed: Noncontrolling interest ( 0.6 ) ( 0.4 ) ( 0.4 )
−Removed: Goodwill impairment 7.0 — —
−Removed: Divestitures — — ( 0.6 )
+Added: (dollars in millions)
+Added: 2024 2023 2022
+Added: Years Ended December 31, Amount Percent Amount Percent Amount Percent
+Added: federal statutory tax rate $ 4,825 21.0 % $ 3,567 21.0 % $ 5,937 21.0 %
+Added: State and local income taxes, net of federal income tax effect (1)
+Added: 566 2.5 664 3.9 1,104 3.9
+Added: Foreign tax effects ( 68 ) ( 0.3 ) ( 16 ) ( 0.1 ) ( 120 ) ( 0.4 )
+Added: Effect of cross-border tax laws — — 18 0.1 15 0.1
Tax credits ( 27 ) ( 0.1 ) ( 27 ) ( 0.2 ) ( 30 ) ( 0.1 )
−Removed: Other, net ( 1.4 ) ( 0.9 ) ( 0.2 )
+Added: Changes in valuation allowances 15 0.1 — — 11 —
+Added: Nontaxable or nondeductible items
+Added: Goodwill impairment — — 1,149 6.8 — —
+Added: Other ( 116 ) ( 0.5 ) ( 133 ) ( 0.8 ) ( 145 ) ( 0.5 )
+Added: Changes in unrecognized tax benefits 40 0.2 ( 27 ) ( 0.2 ) ( 118 ) ( 0.4 )
+Added: Other adjustments
+Added: Federal refund claims ( 17 ) ( 0.1 ) ( 245 ) ( 1.4 ) — —
+Added: Other ( 188 ) ( 0.9 ) ( 58 ) ( 0.3 ) ( 131 ) ( 0.5 )
Effective income tax rate $ 5,030 21.9 % $ 4,892 28.8 % $ 6,523 23.1 %
+Added: (1) The states that contribute to the majority (greater than 50%) of the tax effect in this category include California, Maryland and Pennsylvania for 2024, California, Georgia, Illinois, Maryland and Virginia for 2023, and California, Florida, Georgia, Illinois, New Jersey, Oregon and Pennsylvania for 2022.
The effective income tax rate for 2024 was 21.9 % compared to 28.8 % for 2023.
−Removed: The increase in the effective income tax rate was primarily due to the Verizon Business Group goodwill impairment charge of $ 5.8 billion that substantially decreased income before income taxes and is not deductible.
−Removed: The decrease in the provision for income taxes was primarily due to the decrease in income before income taxes in the current period.
−Removed: The effective income tax rate for 2022 and 2021 was 23.1 %.
−Removed: The effective income tax rate for the twelve months ended December 31, 2022 was comparable to the similar period in 2021.
+Added: The decrease in the effective income tax rate was primarily due to the Verizon Business Group goodwill impairment charge of $ 5.8 billion in 2023 that substantially decreased income before income taxes and was not deductible.
+Added: The increase in the provision for income taxes was primarily due to the increase in income before income taxes in the current period.
+Added: The effective income tax rate for 2023 was 28.8 % compared to 23.1 % for 2022.
+Added: The increase in the effective income tax rate was primarily due to the Verizon Business Group goodwill impairment charge of $ 5.8 billion that substantially decreased income before income taxes and was not deductible.
The decrease in the provision for income taxes was primarily due to the decrease in income before income taxes in the current period.
2 unchanged sentences
Years Ended December 31, 2024 2023 2022
+Added: Federal $ 4,745 $ 1,447 $ 1,865
+Added: State 665 672 670
+Added: Ireland 156 143 147
+Added: All other foreign 66 81 54
Income taxes, net of amounts refunded 5,632 2,343 2,736
2 unchanged sentences
Total $ 8,460 $ 5,366 $ 5,940
+Added: In 2024, there were no individual jurisdictions with cash taxes paid that equaled or exceeded 5% of total income taxes paid.
+Added: In 2022 and 2023, the only jurisdiction with cash taxes paid that equaled or exceeded 5% of total income taxes paid was Ireland.
Deferred Tax Assets and Liabilities
18 unchanged sentences
Net deferred tax liability $ 46,583 $ 45,633
−Removed: At December 31, 2023, undistributed earnings of our foreign subsidiaries indefinitely invested outside the U.S.
−Removed: amounted to approximately $ 2.4 billion.
+Added: Undistributed earnings of certain foreign subsidiaries continue to be indefinitely invested outside the U.S.
The majority of Verizon's cash flow is generated from domestic operations and we are not dependent on foreign cash or earnings to meet our funding requirements, nor do we intend to repatriate these undistributed foreign earnings to fund U.S.
6 unchanged sentences
Of these net after-tax loss, credit, and other carry forwards, approximately $ 1.1 billion will expire between 2025 and 2044 and approximately $ 591 million may be carried forward indefinitely.
−Removed: During 2023, the valuation allowance decreased by an insignificant amount.
+Added: During 2024, the valuation allowance increased by $ 59 million.
The $ 1.4 billion valuation allowance at December 31, 2024 is primarily related to state and foreign taxes.
15 unchanged sentences
At December 31, (dollars in millions)
−Removed: The decrease in unrecognized tax benefits in 2023 was primarily due to lapses of statutes of limitations in the current period.
−Removed: The decrease in unrecognized tax benefits for 2022 was primarily related to the resolution of issues with the Internal Revenue Service (IRS) involving tax years 2015-2016 as well as final purchase accounting adjustments made in connection with the 2021 acquisition of TracFone.
+Added: The decrease in unrecognized tax benefits in 2024 was primarily due to the resolution of issues under income tax examinations.
+Added: The decrease in unrecognized tax benefits for 2023 was primarily due to lapses of statutes of limitations.
Verizon and/or its subsidiaries file income tax returns in the U.S.
3 unchanged sentences
income tax returns for tax years 2017 through 2019 and Cellco's U.S.
−Removed: income tax return for tax years 2017 through 2020.
+Added: income tax return for tax year 2020.
Tax controversies are ongoing for tax years as early as 2009 in certain states and as early as 2000 outside the U.S.
−Removed: The amount of the liability for unrecognized tax benefits will change in the next twelve months due to the expiration of the statute of limitations in various jurisdictions and it is reasonably possible that various current tax examinations will conclude or require reevaluations of the Company’s tax positions during this period.
−Removed: An estimate of the range of the possible change cannot be made until these tax matters are further developed or resolved.
Segment Information
1 unchanged sentence
We have two reportable segments that we operate and manage as strategic business units - Consumer and Business.
−Removed: We measure and evaluate our reportable segments based on segment operating income, consistent with the chief operating decision maker’s assessment of segment performance.
+Added: We measure and evaluate our reportable segments based on segment operating income, consistent with the chief operating decision maker's (CODM) assessment of segment performance.
+Added: The Company's CODM is the Chief Executive Officer.
+Added: The CODM uses segment operating income to allocate resources (including employees, financial or capital resources) and to assess performance during the monthly and quarterly financial strategic review process.
+Added: When assessing segment performance and how to allocate resources, the CODM focuses on evaluating whether revenues generated are sufficient to cover variable and fixed costs with an appropriate return on investment.
+Added: Key decisions considered by the CODM using segment operating income include prioritization and timing of changes to network technologies, allocation of capital expenditures based on the Company's priorities, geographic expansion of wireline and wireless networks, establishment of key financial and operational targets, pricing decisions, branding matters and people management.
Our segments and their principal activities consist of the following:
5 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.
−Removed: 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.
−Removed: We provide these products and services to businesses, government customers and wireless and wireline carriers across the U.S.
+Added: Business Group Our Business segment provides wireless and wireline communications services and products, including FWA broadband, data, video and advanced communication 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.
+Added: We provide these products and services to businesses, public sector customers and wireless and wireline carriers across the U.S.
and a subset of these products and services to customers around the world.
Our Consumer segment's wireless and wireline products and services are available to our retail customers, as well as resellers that purchase wireless network access from us on a wholesale basis.
−Removed: Our Business segment’s wireless and wireline products and services are organized by the primary customer groups targeted by these offerings.
−Removed: During the first quarter of 2023, Verizon reorganized the customer groups within its Business segment.
−Removed: Previously, this segment was comprised of four customer groups:
−Removed: Small and Medium Business, Global Enterprise, Public Sector and Other, and Wholesale.
−Removed: Following the reorganization, there are now three customer groups:
+Added: Our Business segment’s wireless and wireline products and services are organized by the primary customer groups for these offerings:
Enterprise and Public Sector, Business Markets and Other, and Wholesale.
−Removed: Enterprise and Public Sector combines the customers previously included in Global Enterprise and Public Sector and Other (excluding BlueJeans and Connect customers) as well as the commercial wireline customers previously included in Small and Medium Business.
−Removed: Business Markets and Other combines the customers previously
−Removed: included in Small and Medium Business (excluding commercial wireline customers), the BlueJeans customers previously included in Global Enterprise and Public Sector and Other, and the Connect customers previously included in Public Sector and Other.
−Removed: The Wholesale customer group remained unchanged.
−Removed: Prior period operating revenue results within the Business segment have been recast for these reorganized customer groups.
−Removed: There was no change to the composition of our reportable segments and total segment results, nor the determination of segment profit.
Corporate and other primarily includes device insurance programs, investments in unconsolidated businesses and development stage businesses that support our strategic initiatives, as well as unallocated corporate expenses, certain pension and other employee benefit related costs and interest and financing expenses.
−Removed: Corporate and other also includes the historical results of divested businesses including Verizon Media, and other adjustments and gains and losses that are not allocated or used in assessing segment performance due to their nature.
+Added: Corporate and other also includes the historical results of divested businesses and other adjustments and gains and losses that are not allocated or used in assessing segment performance due to their nature.
Although such transactions are excluded from the business segment results, they are included in reported consolidated earnings.
−Removed: Gains and losses from these transactions that are not individually significant are included in segment results and therefore included in the chief operating decision maker’s assessment of segment performance.
−Removed: We completed the sale of Verizon Media on September 1, 2021.
−Removed: See Note 3 for additional information on the sale of Verizon Media.
+Added: Gains and losses from these transactions that are not individually significant are included in segment results and therefore included in the CODM’s assessment of segment performance.
The following tables provide operating financial information for our two reportable segments:
11 unchanged sentences
102,904 29,531 132,435
−Removed: Cost of services 17,580 10,180 27,760
+Added: Operating Expenses (3)
Cost of wireless equipment 21,259 4,841 26,100
−Removed: Selling, general and administrative expense 20,131 8,429 28,560
+Added: Centrally managed network and shared service costs (4)
+Added: 17,781 10,200 27,981
Depreciation and amortization expense 13,552 4,307 17,859
+Added: Other segment expenses (5)
+Added: 20,828 8,125 28,953
Total Operating Expenses
3 unchanged sentences
(2) Service and other revenues and Wireless equipment revenues included in our Business segment amounted to approximately $ 25.9 billion and $ 3.6 billion, respectively, for the year ended December 31, 2024.
+Added: (3) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
+Added: Intersegment expenses are included within the amounts shown.
+Added: (4) Centrally managed network and shared service costs include costs for network and leased assets, supply chain and other centralized services that are allocated to our Consumer and Business segments based on proportionate usage of services.
+Added: (5) Other segment expenses for each reportable segment include certain personnel, digital content, sales-related, overhead, other direct and operating costs.
(dollars in millions)
10 unchanged sentences
101,626 30,122 131,748
−Removed: Cost of services 17,746 10,483 28,229
+Added: Operating Expenses (3)
Cost of wireless equipment 21,827 4,959 26,786
−Removed: Selling, general and administrative expense 19,064 8,284 27,348
+Added: Centrally managed network and shared service costs (4)
+Added: 17,496 10,590 28,086
Depreciation and amortization expense 13,077 4,488 17,565
+Added: Other segment expenses (5)
+Added: 20,215 8,019 28,234
Total Operating Expenses
3 unchanged sentences
(2) Service and other revenues and Wireless equipment revenues included in our Business segment amounted to approximately $ 26.4 billion and $ 3.7 billion, respectively, for the year ended December 31, 2023.
+Added: (3) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
+Added: Intersegment expenses are included within the amounts shown.
+Added: (4) Centrally managed network and shared service costs include costs for network and leased assets, supply chain and other centralized services that are allocated to our Consumer and Business segments based on proportionate usage of services.
+Added: (5) Other segment expenses for each reportable segment include certain personnel, digital content, sales-related, overhead, other direct and operating costs.
(dollars in millions)
10 unchanged sentences
103,506 31,072 134,578
−Removed: Cost of services 16,581 10,653 27,234
+Added: Operating Expenses (3)
Cost of wireless equipment 25,134 5,362 30,496
−Removed: Selling, general and administrative expense 16,562 8,324 24,886
+Added: Centrally managed network and shared service costs (4)
+Added: 16,997 10,840 27,837
Depreciation and amortization expense 12,716 4,312 17,028
+Added: Other segment expenses (5)
+Added: 19,813 7,927 27,740
Total Operating Expenses
3 unchanged sentences
(2) Service and other revenues and Wireless equipment revenues included in our Business segment amounted to approximately $ 27.0 billion and $ 4.0 billion, respectively, for the year ended December 31, 2022.
−Removed: The following table provides Fios revenues for our two reportable segments:
+Added: (3) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
+Added: Intersegment expenses are included within the amounts shown.
+Added: (4) Centrally managed network and shared service costs include costs for network and leased assets, supply chain and other centralized services that are allocated to our Consumer and Business segments based on proportionate usage of services.
+Added: (5) Other segment expenses for each reportable segment include certain personnel, digital content, sales-related, overhead, other direct and operating costs.
+Added: The following table provides Fios revenues for our two reportable segments and includes intersegment activity:
(dollars in millions)
10 unchanged sentences
Reconciliation to Consolidated Financial Information
−Removed: The reconciliation of segment operating revenues and operating income to consolidated operating revenues and operating income below includes the effects of special items that the chief operating decision maker does not consider in assessing segment performance, primarily because of their nature.
+Added: The reconciliation of segment operating revenues and operating income to consolidated operating revenues and operating income below includes the effects of special items that the CODM does not consider in assessing segment performance, primarily because of their nature.
A reconciliation of the total reportable segments’ operating revenues to consolidated operating revenues is as follows:
16 unchanged sentences
Other components of net periodic pension and benefit charges (Note 11) ( 33 ) ( 248 ) ( 387 )
+Added: Asset and business rationalization
+Added: ( 374 ) ( 480 ) —
+Added: Legacy legal matter
Verizon Business Group goodwill impairment — ( 5,841 ) —
−Removed: Asset rationalization ( 480 ) — —
−Removed: Non-strategic business shutdown ( 179 ) — —
−Removed: Business transformation costs ( 176 ) — —
Legal settlement — ( 100 ) —
−Removed: Loss on spectrum licenses — — ( 223 )
−Removed: Net gain from disposition of business — — 706
+Added: Business transformation costs — ( 176 ) —
+Added: Non-strategic business shutdown — ( 179 ) —
Consolidated operating income 28,686 22,877 30,467
6 unchanged sentences
As of December 31, 2024 and 2023, international long-lived assets were not significant.
−Removed: The chief operating decision maker does not review disaggregated assets on a segment basis;
+Added: The CODM does not review disaggregated assets on a segment basis;
therefore, such information is not presented.
2 unchanged sentences
In February 2020, the Board of Directors of the Company authorized a share buyback program to repurchase up to 100 million shares of our common stock.
−Removed: The program will terminate when the aggregate number of shares purchased reaches 100 million
−Removed: or a new share repurchase plan superseding the current plan is authorized, whichever is sooner.
+Added: The program will terminate when the aggregate number of shares purchased reaches 100 million or a new share repurchase plan superseding the current plan is authorized, whichever is sooner.
During the years ended December 31, 2024, 2023, and 2022, we did no t repurchase any shares of our common stock under our authorized share buyback program.
2 unchanged sentences
During the years ended December 31, 2024, 2023, and 2022, we issued 5.4 million, 4.4 million and 2.1 million shares of common stock from treasury stock, which had aggregate values of $ 238 million, $ 192 million and $ 91 million, respectively.
−Removed: In connection with our acquisition of TracFone in November 2021, we issued approximately 57.6 million shares of our common stock from treasury stock valued at approximately $ 3.0 billion.
−Removed: See Note 3 for additional information.
+Added: Noncontrolling Interests
+Added: During the year ended December 31, 2024, Verizon entered into and completed agreements to acquire additional interests in certain controlled entities for cash consideration of $ 280 million.
+Added: Verizon continues to retain controlling financial interest within these entities;
+Added: therefore, the changes in ownership interest were accounted for as equity transactions.
+Added: This resulted in a reduction of additional paid-in capital of $ 228 million, reflected in Other, and a reduction of noncontrolling interest of $ 52 million,
+Added: reflected in Distributions and other, both within our consolidated statement of changes in equity for the year ended December 31, 2024.
+Added: These transactions were recorded within Other, net cash flow from financing activities in our consolidated statement of cash flows for the year ended December 31, 2024.
Accumulated Other Comprehensive Income (Loss)
5 unchanged sentences
Balance at January 1, 2022 $ ( 545 ) $ ( 1,472 ) $ — $ 16 $ 1,074 $ ( 927 )
+Added: Excluded components recognized in other comprehensive income — — ( 371 ) — — ( 371 )
Other comprehensive loss ( 153 ) ( 174 ) — ( 25 ) ( 317 ) ( 669 )
3 unchanged sentences
Excluded components recognized in other comprehensive income — — 617 — — 617
−Removed: Other comprehensive loss ( 153 ) ( 174 ) — ( 25 ) ( 317 ) ( 669 )
+Added: Other comprehensive income 62 3 — 5 — 70
Amounts reclassified to net income — 85 ( 81 ) 2 ( 208 ) ( 202 )
2 unchanged sentences
Excluded components recognized in other comprehensive income — — 547 — — 547
−Removed: Other comprehensive income 62 3 — 5 — 70
+Added: Other comprehensive loss ( 97 ) ( 16 ) — ( 3 ) — ( 116 )
Amounts reclassified to net income — 97 ( 63 ) — ( 8 ) 26
47 unchanged sentences
$ 14,349 $ 12,531
−Removed: As of December 31, 2023 and 2022, Property, plant and equipment includes approximately $ 3.8 billion and $ 6.0 billion of additions that have not yet been paid.
+Added: As of December 31, 2024 and 2023, Property, plant and equipment includes approximately $ 3.3 billion and $ 3.8 billion, respectively, of additions that have not yet been paid.
Cash Flow Information
6 unchanged sentences
Net debt extinguishment (gains) losses ( 385 ) ( 308 ) 1,077
−Removed: Loss on spectrum licenses — — 223
−Removed: Gain on disposition of Media business — — ( 1,051 )
Other, net 1,096 ( 427 ) 64
13 unchanged sentences
The SFP can be terminated by Verizon or the financial institution with a 60-day notice period.
+Added: The following table presents the confirmed obligations in the SFP and the related activities:
+Added: (dollars in millions)
+Added: Year Ended December 31,
+Added: Confirmed obligations outstanding at the beginning of the year $ 817
+Added: Invoices added during the year 3,549
+Added: Invoices paid during the year ( 3,594 )
+Added: Confirmed obligations outstanding at the end of year $ 772
Confirmed obligations outstanding related to suppliers participating in the SFP are recorded within Accounts payable and accrued liabilities in our consolidated balance sheets and the associated payments are reflected in the operating activities section of our consolidated statements of cash flows.
−Removed: As of December 31, 2023 and 2022 , $ 817 million and $ 1.0 billion, respectively, remained as confirmed obligations outstanding related to suppliers participating in the SFP.
+Added: As of December 31, 2024 and 2023 , $ 772 million and $ 817 million, respectively, remained as confirmed obligations outstanding related to suppliers participating in the SFP.
Commitments and Contingencies
12 unchanged sentences
a small number are brought by companies that have sold products and could seek injunctive relief as well.
−Removed: 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.
+Added: These cases have progressed to various stages and a small number may 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.
3 unchanged sentences
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.
−Removed: Thirteen of the facilities have entered into commercial operation, and the remainder are under development.
+Added: Nineteen 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.
We have various unconditional purchase obligations, which represent agreements to purchase goods or services that are enforceable and legally binding.
−Removed: We estimate that these unconditional purchase obligations, for contracts with terms in excess of one year, total $ 21.7 billion, and primarily represent commitments to purchase network equipment, software and services, content, marketing services and other items which will be used or sold in the ordinary course of business from a variety of suppliers.
+Added: We estimate that these unconditional purchase obligations, for contracts with terms in excess of one year, total $ 16.7 billion, and primarily represent commitments to purchase content, network equipment, software and services, marketing services and other items which will be used or sold in the ordinary course of business from a variety of suppliers.
Of this total amount, $ 6.2 billion is attributable to 2025, $ 5.5 billion is attributable to 2026, $ 3.1 billion is attributable to 2027, $ 1.3 billion is attributable to 2028, $ 291 million is attributable to 2029 and $ 363 million is attributable to years thereafter.
5 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.