What changed in this filing

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Item 1. Financial Statements

2025-04-25 compared with 2024-10-25 · 190 added, 382 removed, 753 unchanged (43% of the section changed)

3 unchanged sentences

and Subsidiaries

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(dollars in millions, except per share amounts) (unaudited) 2025 2024

3 unchanged sentences

Wireless equipment revenues

5,343 5,813 15,702 16,850

Total Operating Revenues 33,485 32,981

1 unchanged sentence

Cost of services (exclusive of items shown below)

7,193 7,084 21,064 21,148

Cost of wireless equipment

6,047 6,353 17,519 18,557

Selling, general and administrative expense

9,706 7,995 25,873 23,754

Depreciation and amortization expense

4,458 4,431 13,386 13,108

Total Operating Expenses 25,507 25,460

Operating Income 7,978 7,521

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

Equity in earnings (losses) of unconsolidated businesses 6 ( 9 )

Other income, net 121 198

16 unchanged sentences

and Subsidiaries

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(dollars in millions) (unaudited) 2025 2024

2 unchanged sentences

Foreign currency translation adjustments, net of tax of $ 9 and $( 5 )

59 ( 51 ) 9 ( 31 )

Unrealized gain on cash flow hedges, net of tax of $( 7 ) and $( 11 )

Unrealized gain (loss) on fair value hedges, net of tax of $ 219 and $( 68 )

( 446 ) 584 ( 350 ) 575

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

5 ( 5 ) 2 ( 3 )

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

( 2 ) ( 56 ) ( 6 ) ( 171 )

Other comprehensive income (loss) attributable to Verizon ( 566 ) 181

7 unchanged sentences

and Subsidiaries

At September 30, At December 31,

At March 31, At December 31,

(dollars in millions, except per share amounts) (unaudited) 2025 2024

51 unchanged sentences

and Subsidiaries

Nine Months Ended

September 30,

Three Months Ended

(dollars in millions) (unaudited) 2025 2024

13 unchanged sentences

Acquisitions of wireless licenses ( 122 ) ( 449 )

Collateral receipts (payments) related to derivative contracts, net ( 332 ) 162

Other, net 515 ( 420 )

3 unchanged sentences

Proceeds from asset-backed long-term borrowings 2,781 2,510

Net proceeds from short-term commercial paper — 333

Repayments of long-term borrowings and finance lease obligations ( 2,446 ) ( 4,508 )

3 unchanged sentences

Net cash used in financing activities ( 5,893 ) ( 1,428 )

Increase in cash, cash equivalents and restricted cash 1,890 1,549

Increase (decrease) in cash, cash equivalents and restricted cash ( 1,863 ) 411

Cash, cash equivalents and restricted cash, beginning of period 4,635 3,497

6 unchanged sentences

Verizon Communications Inc.

(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.

(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.

7 unchanged sentences

Earnings Per Common Share

There were a total of approximately 4.6 million and 4.5 million outstanding dilutive securities, primarily consisting of performance stock units and restricted stock units, included in the computation of diluted earnings per common share for the three and nine months ended September 30, 2024, respectively.

There were a total of approximately 3.4 million and 4.2 million outstanding dilutive securities, primarily consisting of performance stock units and restricted stock units, included in the computation of diluted earnings per common share for the three and nine months ended September 30, 2023, respectively .

There were a total of approximately 4.4 million and 3.7 million outstanding dilutive securities, primarily consisting of performance stock units and restricted stock units, included in the computation of diluted earnings per common share for the three months ended March 31, 2025 and 2024 , respectively.

Cash, Cash Equivalents and Restricted Cash

4 unchanged sentences

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

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

At March 31, At December 31, Increase / (Decrease)

(dollars in millions)

2 unchanged sentences

Prepaid expenses and other

273 1,244 ( 971 )

127 188 ( 61 )

Assets held for sale:

Prepaid expenses and other

Cash, cash equivalents and restricted cash $ 2,772 $ 4,635 $ ( 1,863 )

Vertical Bridge Transaction

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

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

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

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

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

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

Revenues and Contract Costs

6 unchanged sentences

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

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

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

Remaining Performance Obligations

3 unchanged sentences

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

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

At March 31, 2025, 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 March 31, 2024, 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).

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.

8 unchanged sentences

We cannot predict the time period when revenue will be recognized related to those contracts;

thus, they are excluded from the time bands below.

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 September 30, 2024, the transaction price related to unsatisfied performance obligations that are expected to be recognized for the remainder of 2024, 2025 and thereafter was $ 7.7 billion, $ 27.1 billion and $ 23.1 billion, respectively.

thus, they are excluded from the expected recognition timeframe below.

These contracts have varying terms spanning over approximately twenty-eight years ending in September 2053 and have aggregate contract minimum payments totaling $ 1.6 billion.

At March 31, 2025, the aggregate amount of the transaction price related to unsatisfied performance obligations was $ 53.3 billion, of which we expect to recognize substantially all of the revenue from origination over the next thirty-six months , with the remainder recognized thereafter.

Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations and changes in the timing and scope of contracts, arising from contract modifications.

4 unchanged sentences

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

At September 30, At December 31,

At March 31, At December 31,

(dollars in millions) 2025 2024

18 unchanged sentences

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

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

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

Revenue recognized related to contract liabilities existing at January 1, 2025 and January 1, 2024 were $ 4.6 billion and $ 4.4 billion for the three months ended March 31, 2025 and March 31, 2024, respectively.

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

At September 30, At December 31,

At March 31, At December 31,

(dollars in millions) 2025 2024

25 unchanged sentences

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

At September 30, At December 31,

At March 31, At December 31,

(dollars in millions) 2025 2024

2 unchanged sentences

Total $ 5,708 $ 5,740

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

For the three and nine months ended September 30, 2023, we recognized expense of $ 799 million and $ 2.4 billion, respectively, associated with the amortization of deferred contract costs, primarily within Selling, general and administrative expense in our condensed consolidated statements of income.

For the three months ended March 31, 2025 and March 31, 2024, we recognized expense of $ 877 million and $ 829 million, respectively, associated with the amortization of deferred contract costs, primarily within Selling, general and administrative expense in our condensed consolidated statements of income.

We assess our deferred contract costs for impairment on a quarterly basis.

We recognize an impairment charge to the extent the carrying amount of a deferred cost exceeds the remaining amount of consideration we expect to receive in exchange for the goods and services related to the cost, less the expected costs related directly to providing those goods and services that have not yet been recognized as expenses.

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

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

There were no impairment charges recognized for the three months ended March 31, 2025 or March 31, 2024.

Acquisitions and Divestitures

2 unchanged sentences

In accordance with the rules applicable to the auction, Verizon is required to make payments for our allocable share of clearing costs incurred by, and incentive payments due to, the incumbent license holders associated with the auction, which are estimated to be $ 7.5 billion.

During the nine months ended September 30, 2024 and September 30, 2023, we made payments of $ 269 million and $ 578 million, respectively, for obligations related to clearing costs and accelerated clearing incentives.

During the three months ended March 31, 2024, we made payments of $ 269 million 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.

1 unchanged sentence

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

TracFone Wireless, Inc.

On November 23, 2021 (the Acquisition Date), we completed the acquisition of TracFone Wireless, Inc.

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

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

market price on the Acquisition Date.

The 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 7 for additional information.

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.

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

Frontier Communications Parent, Inc.

3 unchanged sentences

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

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

In November 2024, Frontier shareholders approved the transaction.

Consummation of the transaction is subject to receipt of certain regulatory approvals and other customary closing conditions.

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

3 unchanged sentences

The carrying amounts of our Wireless licenses are as follows:

At September 30, At December 31,

At March 31, At December 31,

(dollars in millions) 2025 2024

Wireless licenses $ 156,726 $ 156,613

See Note 3 for additional information.

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

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

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

At March 31, 2025 and 2024, approximately $ 9.4 billion and $ 13.9 billion, respectively, of wireless licenses were under development for commercial service for which we were capitalizing interest costs.

We recorded $ 122 million and $ 180 million of capitalized interest on wireless licenses for the three months ended March 31, 2025 and 2024, respectively.

During the three months ended March 31, 2025, we renewed various wireless licenses in accordance with FCC regulations.

The average renewal period for these licenses was 15 years.

4 unchanged sentences

Reclassifications, adjustments and other

Balance at September 30, 2024

Balance at March 31, 2025

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

2 unchanged sentences

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

At September 30, 2024 At December 31, 2023

At March 31, 2025 At December 31, 2024

(dollars in millions) Gross

11 unchanged sentences

The amortization expense for Other intangible assets was as follows:

Three Months Ended Nine Months Ended

(dollars in millions) September 30, September 30,

2024 $ 676 $ 2,080

2023 690 1,990

Three Months Ended

(dollars in millions) March 31,

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

3 unchanged sentences

Debt or equity financing may be needed to fund additional investments or development activities or to maintain an appropriate capital structure to ensure our financial flexibility.

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

Exchange Offers

(dollars in millions) Principal Amount Exchanged

Principal Amount Issued

Three Months Ended September 30, 2024

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

Verizon 4.780 % notes due 2035 (1)

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

$ 2,256 $ 2,191

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

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

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

Tender Offers

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

Three Months Ended March 31, 2024

Verizon 0.875 % - 3.250 % notes due 2025 - 2028

€ 1,981 $ 2,237

Three Months Ended March 31, 2024 total 2,237

Nine Months Ended September 30, 2024 total

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

In addition, for securities denominated in a currency other than the U.S.

dollar, cash consideration is shown on a U.S.

dollar equivalent basis and includes the amount payable per the derivatives entered into in connection with the transaction.

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

Repayments and Repurchases

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

Three Months Ended March 31, 2024

The following table shows the significant transactions involving the senior unsecured debt securities of the Company and its subsidiaries that occurred during the three months ended March 31, 2025.

Repayments, Redemptions and Repurchases

(dollars in millions) Principal Repaid/ Redeemed/ Repurchased

Amount Paid (1)

Verizon 4.050 % notes due 2025

2 unchanged sentences

Open market repurchases of various Verizon notes 410 317

Three Months Ended March 31, 2024 total 2,028

Three Months Ended June 30, 2024

Verizon 4.073 % notes due 2024

Open market repurchases of various Verizon notes $ 306 214

Three Months Ended June 30, 2024 total 796

Three Months Ended September 30, 2024

Open market repurchases of various Verizon notes $ 450 $ 362

Three Months Ended September 30, 2024 total

Nine Months Ended September 30, 2024 total

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

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

In addition, for securities denominated in a currency other than the U.S.

2 unchanged sentences

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

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

Three Months Ended March 31, 2024

Verizon 3.500 % notes due 2032

€ 1,000 $ 1,062

Verizon 3.750 % notes due 2036

€ 1,000 1,061

Verizon 5.500 % notes due 2054 (2)

Three Months Ended March 31, 2024 total 3,103

Nine Months Ended September 30, 2024 total

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

In addition, for securities denominated in a currency other than the U.S.

dollar, net proceeds are shown on a U.S.

dollar equivalent basis.

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

(2) An amount equal to the net proceeds from these notes is expected to be used to fund 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.

In April 2025, we repaid at maturity € 747 million of outstanding aggregate principal amount of 0.875 % notes.

We also redeemed all of the $ 985 million outstanding aggregate principal amount of 2.625 % notes due 2026.

See Note 7 for additional information on derivative activity related to the transactions.

In April 2025, we issued $ 2.3 billion aggregate principal amount of notes due 2035, with an interest rate of 5.250 % per year.

We contributed $ 563 million principal amount of the notes to our pension trust.

See Note 8 for additional information.

Commercial Paper Program

During the nine months ended September 30, 2024, we issued $ 23.6 billion in net proceeds and made $ 23.6 billion in principal repayments of commercial paper.

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

As of September 30, 2024, we had no commercial paper outstanding.

During the three months ended March 31, 2025, we issued $ 4.8 billion in net proceeds and made $ 4.8 billion in principal repayments of commercial paper.

These transactions were recorded within Other, net cash flow from financing activities in our condensed consolidated statements of cash flows on a net basis.

As of March 31, 2025, we had no commercial paper outstanding.

Asset-Backed Debt

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

As of March 31, 2025 , the carrying value of our asset-backed debt was $ 26.3 billion.

Our asset-backed debt includes Asset-Backed Notes (ABS Notes) issued to third-party investors (Investors) and loans (ABS Financing Facilities) received from banks and their conduit facilities (collectively, the Banks).

3 unchanged sentences

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

These receivables and participation interest transferred to the ABS Entities and related assets, consisting primarily of restricted cash, will only be available for payment of

asset-backed debt and expenses related thereto, payments to the Originators in respect of additional transfers of certain receivables and participation interest, and other obligations arising from our asset-backed debt transactions, and will not be available to pay other obligations or claims of Verizon’s creditors until the associated asset-backed debt and other obligations are satisfied.

These receivables and participation interest transferred to the ABS Entities and related assets, consisting primarily of restricted cash, will only be available for payment of asset-backed debt and expenses related thereto, payments to the Originators in respect of additional transfers of certain receivables and participation interest, and other obligations arising from our asset-backed debt transactions, and will not be available to pay other obligations or claims of Verizon’s creditors until the associated asset-backed debt and other obligations are satisfied.

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

4 unchanged sentences

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

During the nine months ended September 30, 2024 , we completed the following ABS Notes transactions:

During the three months ended March 31, 2025 , we completed the following ABS Notes transactions:

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

Series 2025-1

A-1a Senior class notes 5.000 1.92 $ 835

A-1b Senior class notes Compounded SOFR + 0.650 (1)

B Junior class notes 5.240 1.92 —

C Junior class notes 5.490 1.92 51

Series 2024-2

A Senior class notes

B Junior class notes 5.080 4.92 51

C Junior class notes 5.320 4.92 31

January 2024 total 1,915

Series 2024-3

A-1a Senior class notes 5.340 2.99 605

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

B Junior class notes 5.540 2.99 59

C Junior class notes 5.730 2.99 36

April 2024 total 875

Series 2024-4

A-1a Senior class notes 5.210 1.98 289

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

4.710 2.99 $ 535

B Junior class notes 4.940 2.99 41

4 unchanged sentences

C Junior class notes 5.340 5.00 20

June 2024 total 1,176

September 2024

January 2025 total

Series 2025-3

A-1a Senior class notes

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

4.510 1.97 706

A-1b Senior class notes

Compounded SOFR + 0.550 (1)

B Junior class notes 4.770 1.97 68

2 unchanged sentences

A Senior class notes

4.760 4.97 446

B Junior class notes

5.020 4.97 34

C Junior class notes

September 2024 total

5.200 4.97 20

March 2025 total

Total $ 2,601

(1) Compounded Secured Overnight Financing Rate (SOFR) is calculated using SOFR as published by the Federal Reserve Bank of New York in accordance with the terms of such notes.

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

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

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

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

Under the terms of each series of ABS Notes outstanding as of March 31, 2025, there is a revolving period of up to two years , three years , or five years , as applicable, during which we may transfer additional receivables to the ABS Entity.

During the three months ended March 31, 2025 , we made aggregate principal repayments of $ 800 million in connection with an anticipated redemption of ABS Notes and notes that have entered the amortization period.

In April 2025, in connection with an anticipated redemption of ABS Notes, we made a principal repayment, in whole, for $ 932 million.

ABS Financing Facilities

Under the two loan agreements outstanding in connection with the ABS Financing Facility originally entered into in 2021 and most recently renewed in 2023 (2021 ABS Financing Facility), we prepaid an aggregate of $ 900 million in January 2024, borrowed an additional $ 600 million in March 2024, prepaid an aggregate of $ 900 million in April 2024, borrowed an additional $ 225 million in June 2024, prepaid an aggregate of $ 1.2 billion in August 2024, prepaid an aggregate of $ 950 million and borrowed an additional $ 450 million in September 2024.

The aggregate outstanding balance under the 2021 ABS Financing Facility was $ 5.8 billion as of September 30, 2024.

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

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

The aggregate outstanding balance under the 2021 ABS Financing Facility was $ 6.4 billion as of March 31, 2025.

Under the loan agreement outstanding in connection with the ABS Financing Facility originally entered into in 2022 and most recently renewed in 2024 (2022 ABS Financing Facility), we prepaid an aggregate of $ 163 million in February 2025 and we borrowed an additional $ 189 million in March 2025.

T he aggregate outstanding balance under the 2022 ABS Financing Facility was $ 5.0 billion as of March 31, 2025 .

In April 2025, we prepaid an aggregate of $ 241 million under the loan agreement outstanding in connection with the 2022 ABS Financing Facility.

Variable Interest Entities

2 unchanged sentences

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

At September 30,

At December 31,

6 unchanged sentences

Long-term debt 10,490 8,827

The Accounts receivable, net amounts above does not include underlying receivables for which a participation interest has been transferred to the ABS Entities.

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 6 for additional information on certain receivables and participation interest used to secure asset-backed debt.

Long-Term Credit Facilities

At September 30, 2024

At March 31, 2025

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

6 unchanged sentences

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

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

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

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

As of March 31, 2025 , there have been no drawings against the revolving credit facility since its inception.

(2) During the three months ended March 31, 2025 and 2024 , there were no drawings from these facilities.

Borrowings under certain of these facilities are repaid 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.

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

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

As of September 30, 2024 and December 31, 2023 , $ 2.4 billion and $ 2.2 billion, respectively, relating to these financing arrangements, including those entered into in prior years and liabilities assumed through acquisitions, remained outstanding.

During the three months ended March 31, 2025 and 2024, we financed, primarily through alternative financing arrangements, the purchase of approximately $ 627 million and $ 463 million, respectively, consisting primarily of network equipment.

As of March 31, 2025 and December 31, 2024 , $ 2.6 billion and $ 2.5 billion, respectively, relating to these financing arrangements, including those entered into in prior years and liabilities assumed through acquisitions, remained outstanding.

These purchases are non-cash financing activities and therefore are not reflected within Capital expenditures in our condensed consolidated statements of cash flows.

Net Debt Extinguishment Gains

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

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

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

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

During the three months ended March 31, 2025 and 2024 , we recorded net debt extinguishment gains of $ 90 million and $ 110 million, respectively.

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

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

We guarantee the debentures of our operating telephone company subsidiaries.

As of September 30, 2024 , $ 614 million aggregate principal amount of these obligations remained outstanding.

Each guarantee will remain in place for the life of the obligation unless terminated pursuant to its terms, including the operating telephone company no longer being a wholly-owned subsidiary of the Company.

As of March 31, 2025 , $ 614 million aggregate principal amount of these obligations remained outstanding.

Each guarantee will remain in place for the life of the obligation

unless terminated pursuant to its terms, including the operating telephone company no longer being a wholly-owned subsidiary of the Company.

Debt Covenants

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

At September 30, 2024

At March 31, 2025

(dollars in millions) Device payment plan agreement Wireless service

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

Included in Other assets and Accounts receivable, net at September 30, 2024, are net device payment plan agreement receivables, net wireless service receivables and net other receivables of $ 27.8 billion, which have been transferred to ABS Entities and continue to be reported in our condensed consolidated balance sheet.

Included in Other assets and Accounts

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

Included in Accounts receivable, net at September 30, 2024 and December 31, 2023, are net other receivables of $ 840 million and $ 911 million, respectively, on which a participation interest has been transferred to ABS Entities and continue to be reported in our condensed consolidated balance sheets.

Included in Other assets and Accounts receivable, net at March 31, 2025 and December 31, 2024, are net device payment plan agreement receivables, net wireless service receivables and net other receivables of $ 28.8 billion and $ 29.9 billion, respectively, which have been transferred to ABS Entities and continue to be reported in our condensed consolidated balance sheets.

Included in Accounts receivable, net at March 31, 2025 and December 31, 2024, are net other receivables of $ 815 million and $ 1.2 billion, respectively, on which a participation interest has been transferred to ABS Entities and continue to be reported in our condensed consolidated balance sheets.

See Note 5 for additional information.

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

At September 30, At December 31,

At March 31, At December 31,

(dollars in millions) 2025 2024

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

At September 30, 2024 and December 31, 2023, the amount of trade-in liability was $ 341 million and $ 566 million, respectively.

At March 31, 2025 and December 31, 2024, the amount of trade-in liability was $ 325 million and $ 396 million, respectively.

In addition, we may provide the customer with additional future billing credits that will be applied against the customer’s monthly bill as long as service is maintained.

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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.

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

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.

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.

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The model for new customers pools all Consumer and Business wireless customers based on less than 210 days as "new customers." The model for existing customers pools all Consumer and Business wireless customers based on 210 days or more as "existing customers."

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

The following table presents device payment plan agreement receivables, at amortized cost, and gross write-offs recorded, as of and for the three months ended March 31, 2025, by credit quality indicator and year of origination:

Year of Origination (1)

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

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

The data presented in the table above was last updated on March 31, 2025.

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

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

The following table presents wireless service receivables, at amortized cost, and gross write-offs recorded, as of and for the three months ended March 31, 2025, by year of origination:

Year of Origination

(dollars in millions) 2024 2023 and prior

(dollars in millions) 2025 2024 and prior Total

Wireless service receivables, at amortized cost $ 5,687 $ 248 $ 5,935

Gross write-offs 21 123 144

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

The data presented in the table above was last updated on March 31, 2025.

Allowance for Credit Losses

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

consumer, small and medium business,

enterprise, public sector and wholesale.

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

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

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Balance at January 1, 2025 $ 1,315 $ 240

$ 1,151 $ 213

Current period provision for expected credit losses 393 136

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Recoveries collected 11 13

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

Balance at March 31, 2025 $ 1,348 $ 245

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

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

At September 30,

(dollars in millions) 2025

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Recurring Fair Value Measurements

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

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of March 31, 2025:

(dollars in millions) Level 1 (1)

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Fixed income securities $ — $ 26 $ — $ 26

Cross currency swaps — 16 — 16

Foreign exchange forwards — 3 — 3

Interest rate caps — 1 — 1

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Fixed income securities $ — $ 16 $ — $ 16

Cross currency swaps — 4 — 4

Foreign exchange forwards — 4 — 4

Interest rate caps — 3 — 3

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Cross currency swaps — 500 — 500

Interest rate caps — 7 — 7

Total $ — $ 788 $ — $ 788

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Interest rate caps

Contingent consideration — — 52 52

Other liabilities:

3 unchanged sentences

— 2,344 — 2,344

Interest rate caps

Total $ — $ 7,999 $ — $ 7,999

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Certain of our equity investments do not have readily determinable fair values and are excluded from the tables above.

Such investments are measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer and are included in Investments in unconsolidated businesses in our condensed consolidated balance sheets.

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

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

As of September 30, 2024, cumulative adjustments due to observable price changes and impairment charges were $ 194 million and $ 115 million, respectively.

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

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.

Subsequent to the Acquisition Date, at each reporting date, the contingent consideration liability was remeasured to fair value.

Contingent consideration payments were completed in January of 2024.

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

See Note 3 for additional information.

Such investments are measured at cost, less any impairment, plus or minus changes resulting from observable price changes in

orderly transactions for an identical or similar investment of the same issuer and are included in Investments in unconsolidated businesses in our condensed consolidated balance sheets.

As of March 31, 2025 and December 31, 2024, the carrying amount of our investments without readily determinable fair values was $ 717 million and $ 724 million, respectively.

During the three months ended March 31, 2025, there were insignificant adjustments due to observable price changes and there were no impairment charges.

As of March 31, 2025, cumulative adjustments due to observable price changes and impairment charges were $ 180 million and $ 120 million, respectively.

Fixed income securities consist primarily of investments in municipal bonds.

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

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

At March 31, 2025 $ 141,217 $ 82,646 $ 54,369 $ — $ 137,015

At December 31, 2024 141,665 81,552 55,464 — 137,016

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

At September 30, At December 31,

At March 31, At December 31,

(dollars in millions) 2025 2024

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The following tables summarize the activities of our designated derivatives:

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(dollars in millions) 2025 2024

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Notional value settled — —

Pre-tax gain (loss) recognized in Interest expense

Pre-tax gain recognized in Interest expense

Cross Currency Swaps:

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Excluded components recognized in Other comprehensive income (loss)

( 573 ) 809 ( 407 ) 851

Initial value of the excluded component amortized into Interest expense 23 26

Treasury Rate Locks:

Notional value entered into 1,000 — 1,000 500

Notional value settled 1,000 — 1,000 500

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

( 21 ) — ( 21 ) 5

Nine Months Ended

September 30,

Three Months Ended

(dollars in millions) 2025 2024

Other, net Cash Flows from Operating Activities:

Cash paid for settlement of interest rate swaps, net

Cash received (paid) for settlement of treasury rate locks

Other, net Cash Flows from Financing Activities:

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

At September 30, At December 31,

At March 31, At December 31,

(dollars in millions) 2025 2024

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Changes in the fair value of the interest rate swaps are recorded to Interest expense, which are primarily offset by changes in the fair value of the hedged debt due to changes in interest rates.

In April 2025, we settled interest rate swaps with a total notional amount of $ 985 million.

Cross Currency Swaps

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

During both the three and nine months ended September 30, 2024 and September 30, 2023 , these amounts completely offset each other and no net gain or loss was recorded.

During the three months ended March 31, 2025 and March 31, 2024 , these amounts completely offset each other and no net gain or loss was recorded.

Changes in the fair value of cross currency swaps attributable to time value and cross currency basis spread are initially recorded to Other comprehensive income (loss).

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.

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.

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.

For these 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).

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).

The initial value of the excluded components of $ 1.0 billion as of March 31, 2022 will continue to be amortized into Interest expense over the remaining life of the hedging instruments.

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

During the three months ended March 31, 2025 and March 31, 2024 , the amortization of the initial value of the excluded component completely offset the amortization related to the amount remaining in Other comprehensive income (loss) related to cash flow hedges.

See Note 9 for additional information.

We estimate that $ 94 million will be amortized into Interest expense within the next 12 months.

Treasury Rate Locks

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) .

In April 2025, we settled cross currency swaps with a total notional amount of $ 817 million.

Net Investment Hedges

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dollar net investments in certain foreign subsidiaries against changes in foreign exchange rates.

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

The notional amount of Euro-denominated debt designated as a net investment hedge was € 750 million as of both March 31, 2025 and December 31, 2024.

Undesignated Derivatives

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

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(dollars in millions) 2025 2024

3 unchanged sentences

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

21 ( 39 ) ( 2 ) ( 17 )

Treasury Rate Locks:

Notional value entered into

Notional value settled 250 —

Pre-tax gain recognized in Interest expense

Foreign Exchange Forwards

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.

We entered into Euro foreign exchange forwards, and in prior periods, British Pound Sterling foreign exchange forwards to mitigate our foreign exchange rate risk related to non-functional currency denominated monetary assets and liabilities of international subsidiaries.

Treasury Rate Locks

We enter into treasury rate locks to mitigate our interest rate risk on future transactions.

Concentrations of Credit Risk

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We do not offset fair value amounts recognized for derivative instruments and fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments recognized at fair value.

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

At September 30, 2024, we posted $ 1.7 billion of collateral related to derivative contracts under collateral exchange agreements, which was recorded as Prepaid expenses and other in our condensed consolidated balance sheet.

At March 31, 2025, we did no t hold any collateral.

At March 31, 2025, we posted $ 1.6 billion of collateral related to derivative contracts under collateral exchange agreements, which was recorded as Prepaid expenses and other in our condensed consolidated balance sheet.

At December 31, 2024, we did no t hold any collateral.

At December 31, 2023, we posted $ 1.4 billion of collateral related to derivative contracts under collateral exchange arrangements, which was recorded as Prepaid expenses and other in our condensed consolidated balance sheet.

At December 31, 2024, we posted $ 2.1 billion of collateral related to derivative contracts under collateral exchange agreements, which was recorded as Prepaid expenses and other in our condensed consolidated balance sheet.

While we may be exposed to credit losses due to the nonperformance of our counterparties, we consider the risk remote and do not expect that any such nonperformance would result in a significant effect on our results of operations or financial condition due to our diversified pool of counterparties.

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Pension Health Care and Life

Three Months Ended September 30, 2024 2023 2024 2023

Three Months Ended March 31, 2025 2024 2025 2024

Service cost - Cost of services $ 34 $ 41 $ 7 $ 11

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Total $ 36 $ ( 48 ) $ 106 $ 109

(dollars in millions)

Pension Health Care and Life

Nine Months Ended September 30, 2024 2023 2024 2023

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

Service cost - Selling, general and administrative expense 19 20 6 6

Service cost $ 138 $ 157 $ 39 $ 40

Amortization of prior service cost (credit) $ 84 $ 84 $ ( 96 ) $ ( 314 )

Expected return on plan assets ( 482 ) ( 760 ) ( 21 ) ( 24 )

Interest cost 380 564 407 409

Remeasurement loss, net 17 — — —

Other components $ ( 1 ) $ ( 112 ) $ 290 $ 71

Total $ 137 $ 45 $ 329 $ 111

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

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

Pension Annuitization

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

On February 29, 2024, we entered into two separate commitment agreements, one by and between the Company, State Street Global Advisors Trust Company (State Street), as independent fiduciary of the Verizon Management Pension Plan and Verizon Pension Plan for Associates (the Pension Plans), and The Prudential Insurance Company of America (Prudential), and one by and between the Company, State Street and RGA Reinsurance Company (RGA), under which the Pension Plans purchased nonparticipating single premium group annuity contracts from Prudential and RGA, respectively, to settle approximately $ 5.8 billion of benefit liabilities of the Pension Plans, net of certain adjustments, resulting in a net pre-tax settlement gain of $ 200 million.

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

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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.

The purchase of the group annuity contracts was funded directly by transferring $ 5.7 billion of assets of the Pension Plans.

The purchase of the group annuity contracts was funded directly by transferring $ 5.6 billion of assets of the Pension Plans, net of certain adjustments.

The Company made additional contributions to the Pension Plans prior to the closing date of the transaction, as discussed below.

With these contributions, the funded ratio of each of the Pension Plans does not change as a result of this transaction.

During the three months ended March 31, 2024, we recorded a net pre-tax settlement gain as a result of this transaction, as discussed below.

With these contributions, the funded ratio of each of the Pension Plans did not change as a result of this transaction.

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

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

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

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

Under this program approximately 4,800 eligible employees separated from Verizon through the end of March 2025.

Severance Payments

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

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

During the three months ended March 31, 2025, we paid severance benefits of $ 406 million primarily related to the voluntary separation program and an additional $ 95 million related to other severance related contractual obligations associated with the voluntary separation program.

At March 31, 2025, we had a remaining severance liability of $ 617 million, a portion of which relates to future contractual payments to separated employees under the voluntary separation program.

Employer Contributions

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

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

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

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

During the three months ended March 31, 2025, we made no contributions to our qualified pension plans.

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

$ 365 million.

During the three months ended March 31, 2025 and March 31, 2024, we made insignificant contributions to our nonqualified pension plans.

In April 2025, we made a discretionary non-cash contribution to our qualified pensions plans in the principal amount of $ 563 million.

See Note 5 for additional information.

No required qualified pension plans contributions are expected through December 31, 2025.

No significant changes are expected with respect to the nonqualified pension and other postretirement benefit plans contributions in 2025.

Remeasurement loss (gain), net

During the three and nine months ended September 30, 2024, we recorded an insignificant net pre-tax remeasurement gain and loss, respectively, in our pension plans triggered by settlements.

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

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

Remeasurement gain, net

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

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Changes in the components of Total equity were as follows:

Three Months Ended September 30,

Three Months Ended March 31,

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

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Balance at beginning of period 13,466 13,631

Balance at end of period 13,479 13,524

Retained Earnings

Balance at beginning of period 86,504 86,448

Net income attributable to Verizon 3,306 4,762

Dividends declared ($ 0.6775 , $ 0.6650 per share)

( 51 ) ( 60 )

Balance at end of period 13,415 13,571

Accumulated Other Comprehensive Loss

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

Foreign currency translation adjustments 59 ( 51 )

Unrealized gain on cash flow hedges 6 21

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

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

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

Other comprehensive income (loss) ( 378 ) 493

Balance at end of period attributable to Verizon ( 1,665 ) ( 1,428 )

Treasury Stock

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

Employee plans 107 5 62 2

Balance at end of period ( 81,807 ) ( 3,585 ) ( 87,332 ) ( 3,828 )

Deferred Compensation-ESOPs and Other

Balance at beginning of period 577 544

Restricted stock equity grant 140 89

Amortization ( 7 ) ( 5 )

Balance at end of period 710 628

Noncontrolling Interests

Balance at beginning of period 1,367 1,309

Total comprehensive income 105 122

Distributions and other (1)

( 130 ) ( 84 )

Balance at end of period 1,342 1,347

Total Equity $ 97,668 $ 99,088

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

Nine Months Ended September 30,

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

Balance at beginning of period 4,291,434 $ 429 4,291,434 $ 429

Balance at end of period 4,291,434 429 4,291,434 429

Additional Paid In Capital

Balance at beginning of period 13,631 13,420

Balance at end of period 13,479 13,524

Retained Earnings

31 unchanged sentences

Total Equity $ 102,037 $ 95,726

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

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

At September 30, 2024, the maximum number of shares that could be purchased by or on behalf of Verizon under our share buyback program was 100 million.

Common stock has been used from time to time to satisfy some of the funding requirements of employee and shareholder plans, including 5.4 million shares of common stock issued from treasury stock during the nine months ended September 30, 2024.

Noncontrolling Interests

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

Verizon continues to retain controlling financial interest within these entities;

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

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

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

Accumulated Other Comprehensive Loss

Verizon did not repurchase any shares of the Company's common stock through its previously authorized share buyback program during the three months ended March 31, 2025.

At March 31, 2025, the maximum number of shares that could be purchased by or on behalf of Verizon under our share buyback program was 100 million.

Common stock has been used from time to time to satisfy some of the funding requirements of employee and shareholder plans, including 6.6 million shares of common stock issued from treasury stock during the three months ended March 31, 2025.

Accumulated Other Comprehensive Income (Loss)

The changes in the balances of Accumulated other comprehensive loss by component were as follows:

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Excluded components recognized in other comprehensive income — — ( 636 ) — — ( 636 )

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

Other comprehensive income 67 — — 1 — 68

Amounts reclassified to net income — 21 ( 17 ) — ( 2 ) 2

Net other comprehensive income (loss) 67 21 ( 653 ) 1 ( 2 ) ( 566 )

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

Balance at March 31, 2025 $ ( 666 ) $ ( 960 ) $ ( 64 ) $ ( 4 ) $ 205 $ ( 1,489 )

The amounts presented above in Net other comprehensive income (loss) are net of taxes.

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We have two reportable segments that we operate and manage as strategic business units, Consumer and Business.

We measure and evaluate our reportable segments based on segment operating income, consistent with the chief operating decision maker's assessment of segment performance.

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.

The Company's CODM is the Chief Executive Officer.

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.

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.

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:

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Our wireline services are provided in nine states in the Mid-Atlantic and Northeastern U.S., as well as Washington D.C., over our 100% fiber-optic network through our Verizon Fios product portfolio and over a traditional copper-based network to customers who are not served by Fios.

Business Group Our Business segment provides wireless and wireline communications services and products, including FWA broadband, data, video and conferencing services, corporate networking solutions, security and managed network services, local and long distance voice services and network access to deliver various Internet of Things services and products.

We provide these products and services to businesses, government customers and wireless and wireline carriers across the U.S.

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 Internet of Things services and products.

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.

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Our Business segment's wireless and wireline products

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

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

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

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Although such transactions are excluded from the business segment results, they are included in reported consolidated earnings.

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.

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 table provides operating financial information for our two reportable segments:

Three Months Ended Nine Months Ended

September 30, September 30,

(dollars in millions) 2024 2023 2024 2023

Three Months Ended March 31,

(dollars in millions) Consumer Business Total

Segments Consumer Business Total

External Operating Revenues

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1,020 — 1,020 943 — 943

1,567 1,450 4,605 4,359

Total Consumer

25,305 25,202 75,182 74,516

Enterprise and Public Sector — 3,457 3,457 — 3,587 3,587

Business Markets and Other — 3,307 3,307 — 3,190 3,190

3,258 3,180 9,647 9,383

Wholesale — 515 515 — 590 590

Total Business 7,343 7,518 22,001 22,478

Total reportable segments $ 32,648 $ 32,720 $ 97,183 $ 96,994

Intersegment revenues 73 7 80 52 9 61

Consumer $ 55 $ 55 $ 162 $ 156

Business 8 9 26 26

Total reportable segments $ 63 $ 64 $ 188 $ 182

Total Operating Revenues (3)

Consumer $ 25,360 $ 25,257 $ 75,344 $ 74,672

25,618 7,286 32,904 25,057 7,376 32,433

Total reportable segments $ 32,711 $ 32,784 $ 97,371 $ 97,176

Operating Expenses (4)

Cost of wireless equipment 4,912 1,194 6,106 4,750 1,155 5,905

Centrally managed network and shared service costs (5)

4,521 2,482 7,003 4,430 2,624 7,054

Depreciation and amortization expense 3,543 1,020 4,563 3,309 1,128 4,437

Other segment expenses (6)

5,218 1,926 7,144 5,196 2,070 7,266

Total Operating Expenses

18,194 6,622 24,816 17,685 6,977 24,662

Operating Income $ 7,424 $ 664 $ 8,088 $ 7,372 $ 399 $ 7,771

Consumer $ 7,604 $ 7,547 $ 22,580 $ 21,976

Business 565 539 1,464 1,623

Total reportable segments $ 8,169 $ 8,086 $ 24,044 $ 23,599

(1) Other revenue includes fees that partially recover the direct and indirect costs of complying with regulatory and industry obligations and programs, revenues associated with certain products included in our device protection offerings, leasing and interest recognized when equipment is sold to the customer by an authorized agent under a device payment plan agreement.

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

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

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

Three Months Ended Nine Months Ended

September 30, September 30,

(1) Reflects the reclassification of recurring device protection and insurance related plan revenues from Other revenue into Wireless service revenue in the first quarter of 2025.

(2) Other revenue includes fees that partially recover the direct and indirect costs of complying with regulatory and industry obligations and programs, leasing and interest recognized when equipment is sold to the customer by an authorized agent under a device payment plan agreement.

(3) Service and other revenues and Wireless equipment revenues included in our Business segment were approximately $ 6.4 billion and $ 866 million, respectively, for the three months ended March 31, 2025 and were approximately $ 6.5 billion and $ 871 million, respectively, for the three months ended March 31, 2024.

(4) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

Intersegment expenses are included within the amounts shown.

(5) 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.

(6) Other segment expenses for each reportable segment include certain personnel, digital content, sales-related, overhead, other direct and operating costs.

The following table provides Fios revenue for our two reportable segments and includes intersegment activity:

Three Months Ended

(dollars in millions) 2025 2024

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Total Fios revenue $ 3,206 $ 3,207

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

Three Months Ended Nine Months Ended

September 30, September 30,

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

Three Months Ended

(dollars in millions) 2025 2024

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Total Wireless service revenue $ 20,764 $ 20,227

Wireless service revenue reflects the reclassification of recurring device protection and insurance related plan revenues from Other revenue into Wireless service revenue in the first quarter of 2025.

Reconciliation to Consolidated Financial Information

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.

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 reportable segments' operating revenues to consolidated operating revenues is as follows:

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(dollars in millions) 2025 2024

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( 79 ) ( 63 )

( 66 ) ( 66 ) ( 193 ) ( 188 )

Total consolidated operating revenues $ 33,485 $ 32,981

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

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(dollars in millions) 2025 2024

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Corporate and other ( 102 ) ( 136 )

Severance charges ( 1,733 ) — ( 1,733 ) ( 237 )

Other components of net periodic benefit charges (Note 8) ( 8 ) ( 8 )

Asset and business rationalization

( 374 ) — ( 374 ) ( 155 )

Legacy legal matter

— — ( 106 ) —

Non-strategic business shutdown

— ( 179 ) — ( 179 )

Business transformation costs

— ( 176 ) — ( 176 )

Total consolidated operating income 7,978 7,521

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

Equity in earnings (losses) of unconsolidated businesses 6 ( 9 )

Other income, net 121 198

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Income Before Provision For Income Taxes $ 6,473 $ 6,075

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

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

No single customer accounted for more than 10% of our total operating revenues during the three months ended March 31, 2025 or 2024.

The CODM does not review disaggregated assets on a segment basis;

therefore, such information is not presented.

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

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

As of March 31, 2025 and December 31, 2024, $ 619 million and $ 772 million, respectively, remained as confirmed obligations outstanding related to suppliers participating in the supplier finance program.

Commitments and Contingencies

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

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

estimable in a given matter, Verizon establishes an accrual.

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

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

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(1) uncertain damage theories and demands;

(2) a less than complete factual record;

less than complete factual record;

(3) uncertainty concerning legal theories and their resolution by courts or regulators;

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a small number are brought by companies that have sold products and could seek injunctive relief as well.

These cases have progressed to various stages and a small number have gone to trial or may go to trial in the coming 12 months if they are not otherwise resolved.

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

From time to time, counterparties may make claims under these provisions, and Verizon will seek to defend against those claims and resolve them in the ordinary course of business.

As of September 30, 2024, Verizon had 28 renewable energy purchase agreements (REPAs) with third parties.

As of March 31, 2025, Verizon had 28 renewable energy purchase agreements (REPAs) with third parties.

Each of the REPAs is based on the expected operation of a renewable energy-generating facility and has a fixed price term of 12 to 20 years from the commencement of the facility's entry into commercial operation.

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

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.

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

What changed 10-Q

Item 1. Financial Statements