What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-02-17 compared with 2025-02-12 · 257 added, 226 removed, 1889 unchanged (20% of the section changed)

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Description of the Matter The Company sponsors several pension plans and other post-employment benefit plans.

At December 31, 2024, the Company’s aggregate defined benefit pension obligation was $7.9 billion and exceeded the fair value of pension plan assets of $6.8 billion, resulting in an unfunded defined benefit pension obligation of $1.1 billion.

At December 31, 2025, the Company’s aggregate defined benefit pension obligation was $8.0 billion and exceeded the fair value of pension plan assets of $7.9 billion, resulting in an unfunded defined benefit pension obligation of $50 million.

Also, at December 31, 2025, the other postretirement benefits obligation was approximately $10.6 billion.

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126 ( 97 ) 62

Unrealized gain on cash flow hedges, net of tax of $( 27 ), $( 30 ) and $( 111 )

Unrealized gain (loss) on cash flow hedges, net of tax of $ 3 , $( 27 ) and $( 30 )

Unrealized gain (loss) on fair value hedges, net of tax of $ 306 , $( 162 ) and $( 181 )

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Unrealized gain (loss) on marketable securities, net of tax of $( 1 ), $ 1 and $( 2 )

( 3 ) 7 ( 25 )

Defined benefit pension and postretirement plans, net of tax of $ 4 , $ 4 and $ 68

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Provision for expected credit losses 2,349 2,338 2,214

Equity in losses (earnings) of unconsolidated businesses, net of dividends received 75 84 ( 10 )

Equity in losses of unconsolidated businesses, inclusive of dividends received 42 75 84

Verizon Business Group goodwill impairment — — 5,841

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Capital expenditures (including capitalized software) ( 17,011 ) ( 17,090 ) ( 18,767 )

Cash received (paid) related to acquisitions of businesses, net of cash acquired — ( 30 ) 248

Cash paid related to acquisitions of businesses, net of cash acquired — — ( 30 )

Acquisitions of wireless licenses ( 450 ) ( 900 ) ( 5,796 )

Collateral receipts (payments) related to derivative contracts, net ( 712 ) 880 ( 2,265 )

Proceeds from disposition of business — — 33

Other, net 801 ( 684 ) 1,161

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Proceeds from asset-backed long-term borrowings 9,338 12,422 6,594

Net proceeds from (repayments of) short-term commercial paper — ( 150 ) 106

Repayments of long-term borrowings and finance lease obligations ( 11,352 ) ( 11,854 ) ( 6,181 )

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Balance at beginning of year 13,466 13,631 13,420

Other (Note 14)

( 94 ) ( 165 ) 211

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Foreign currency translation adjustments 126 ( 97 ) 62

Unrealized gain on cash flow hedges 81 88 322

Unrealized gain (loss) on cash flow hedges ( 8 ) 81 88

Unrealized gain (loss) on fair value hedges ( 917 ) 484 536

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Employee plans (Note 14)

7,482 328 5,407 237 4,380 191

Shareholder plans (Note 14)

13 — 13 1 19 1

Balance at end of year ( 74,258 ) ( 3,255 ) ( 81,753 ) ( 3,583 ) ( 87,173 ) ( 3,821 )

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Total comprehensive income 434 443 481

Distributions and other (Note 14)

Distributions and other

( 491 ) ( 474 ) ( 431 )

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We also provide fixed wireless access (FWA) broadband through our fifth-generation (5G) or fourth-generation (4G) Long-Term Evolution (LTE) networks as an alternative to traditional landline internet access.

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.

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.

As of December 31, 2025, 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.

Our Business segment provides wireless and wireline communications services and products, including mobility communication services, FWA and wireline broadband, Internet of Things (IoT) connectivity solutions, advanced communication services, corporate networking solutions, local and long distance voice services, and security and managed network services.

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

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Where appropriate, diluted earnings per common share include the dilutive effect of shares issuable under our stock-based compensation plans.

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.

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 .

There were a total of approximately 4.7 million, 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, 2025, 2024, and 2023, respectively.

Cash, Cash Equivalents and Restricted Cash

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Computer Software and Cloud Computing Costs

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.

We capitalize the cost of internal-use network and non-network software and defer certain 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.

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It is our policy to perform quantitative impairment assessment at least every three years .

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.

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, 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.

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However, we may elect to bypass the qualitative assessment in any period and proceed directly to performing the quantitative impairment test.

It is our policy to perform quantitative impairment assessment at least every three years.

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.

It is our policy to perform a quantitative impairment assessment at least every three years.

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 subscriber growth, as well as 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.

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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.

Recently Adopted Accounting Standards

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

ASU 2023-09, Income Taxes (Topic 740)

In December 2023, the FASB issued this standard update which requires enhanced disclosures primarily related to rate reconciliation and income taxes paid information.

The standard is effective for annual periods beginning after December 15, 2024.

A prospective transition approach should be applied;

however, a retrospective application is permitted.

Early adoption of this standard is permitted.

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.

This standard update did not affect our operating results.

Revenue and Contract Costs

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

Revenue is disaggregated by products and services within Consumer, and customer groups (Enterprise and Public Sector, Business Markets and Other, and Wholesale) within Business.

Revenue is disaggregated by products and services within Consumer, and customer groups (Enterprise and Public Sector, Business

Markets and Other, and Wholesale) within Business.

See Note 13 for additional information on revenue by segment, including Corporate and other.

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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.

Revenues from arrangements that were not accounted for under Topic 606 were approximately $ 3.1 billion, $ 2.9 billion and $ 3.2 billion for the years ended December 31, 2024, 2023 and 2022, respectively.

Remaining Performance Obligations

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

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 .

At December 31, 2025, 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, 2024, for which 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 .

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.

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however, they may have a service term of two years or shorter than twelve months .

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;

however, a significant number of contracts for wireline services with our Business customers have a contract term that is twelve months or less.

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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 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.

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 $ 1.3 billion.

At December 31, 2025, the aggregate amount of the transaction price related to unsatisfied performance obligations was $ 58.1 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.

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We recognize the allowance for credit losses at inception and reassess quarterly based on management's expectation of the asset's collectability.

Contract assets increased $ 128 million during the year ended December 31, 2024.

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.

These items were partially offset by reclassifications to accounts receivable due to billings on existing contracts and impairment charges of $ 53 million.

Contract assets decreased $ 165 million during the year ended December 31, 2025.

The change in contract assets was primarily due to increased promotional activity.

Contract liabilities arise when we bill our customers and receive consideration in advance of providing the goods or services promised in the contract.

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Contract liabilities increased $ 331 million during the year ended December 31, 2025.

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.

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

The change in contract liabilities was primarily due to increases in sales promotions recognized over time.

Revenues recognized related to contract liabilities existing at January 1, 2025 and 2024 were $ 5.2 billion and $ 5.0 billion for the years ended December 31, 2025 and 2024, respectively.

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

At December 31, At December 31,

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Costs to obtain a contract are amortized and recorded ratably as commission expense over the period representing the transfer of goods or services to which the assets relate.

Costs to obtain wireless contracts are amortized over both of our Consumer and Business customers' estimated upgrade cycles, as such costs are typically incurred each time a customer upgrades.

Costs to obtain wireline contracts are amortized as expense over the estimated customer relationship period for our Consumer customers.

Costs to obtain postpaid wireless contracts are amortized over both of our Consumer and Business customers' estimated upgrade cycles, as such costs are typically incurred each time a customer upgrades.

Costs to obtain prepaid wireless contracts and wireline contracts are amortized as expense over the estimated customer relationship period for our Consumer customers.

Incremental costs to obtain wireline contracts for our Business customers are insignificant.

Costs to obtain contracts are recorded in Selling, general and administrative expense.

Costs to obtain contracts are recorded in Selling, general and administrative expense in our consolidated statements of income.

We also defer costs incurred to fulfill contracts that:

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Other costs, such as general costs or costs related to past performance obligations, are expensed as incurred.

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.

Collectively, costs to obtain a contract and costs to fulfill a contract are referred to as deferred contract costs, and amortized between a one -to- seven year period.

Deferred contract costs are classified as current or non-current within Prepaid expenses and other and Other assets, respectively.

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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 year ended December 31, 2024.

There were insignificant impairment charges recognized for the year ended December 31, 2023.

There were no impairment charges recognized for the years ended December 31, 2025 and December 31, 2024.

Acquisitions and Divestitures

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In February 2021, the FCC concluded Auction 107 for C-Band wireless spectrum.

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 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.

In March 2022, Verizon signed agreements with satellite operators in which operators agreed to clear C-Band spectrum in certain markets and frequencies ahead of the previously expected timeframe.

During 2022, Verizon incurred costs associated with these agreements of approximately $ 340 million, of which $ 310 million was paid as of December 31, 2022 and the remainder was paid in 2023.

This early clearance accelerated Verizon's access to more spectrum in a number of key markets to support its 5G network initiatives.

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

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

In accordance with the rules applicable to the auction, Verizon was 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 were approximately $ 7.5 billion.

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.

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 were obligated to pay in order to acquire the licenses, as well as capitalized interest to the extent qualifying activities have occurred.

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

The closing of this transaction is subject to the receipt of regulatory approvals and other closing conditions, including the sale of UScellular's wireless operations and select spectrum assets to T-Mobile US, Inc., which concluded in August 2025, and the termination of certain post-closing arrangements with respect to that sale.

Business Acquisitions and Divestitures

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 common stock was determined on the basis of its closing market price on the Acquisition Date.

On November 23, 2021, we completed the acquisition of TracFone Wireless, Inc.

The acquisition agreement provided for up to an additional $ 650 million in future cash contingent consideration related to the achievement of certain performance measures and other commercial arrangements.

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.

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 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.

During 2024 and 2023, Verizon made payments of $ 52 million and $ 257 million, respectively, related to the contingent consideration, which are reflected in Cash flows from financing activities in our consolidated statements of cash flows.

Frontier Communications Parent, Inc.

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provider of broadband internet and other communication services.

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

In November 2024, Frontier shareholders approved the transaction.

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

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

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

The transaction closed on January 20, 2026.

Pursuant to the Merger Agreement, the Company's subsidiary merged with and into Frontier, with Frontier surviving such merger as a wholly owned subsidiary of the Company.

At the effective time of the merger, each share of Frontier common stock issued and outstanding immediately prior to such time (subject to certain limited exceptions) was cancelled and converted into the right to receive an amount in cash equal to $ 38.50 per share, without interest.

At closing, Verizon paid approximately $ 9.4 billion in cash, net of cash acquired, and assumed approximately $ 12.9 billion of Frontier's debt, resulting in a total aggregate consideration of approximately $ 22.3 billion.

Due to the timing of the transaction, the preliminary purchase price allocation is incomplete.

As such, it is not practicable to provide a summary of the recognized amounts of assets acquired and liabilities assumed, however, we expect that most of the purchase price will be allocated to property, plant and equipment, other identifiable intangible assets and goodwill.

The financial results of Frontier will be included in the Company's consolidated results beginning on January 20, 2026, the date of the closing of the acquisition.

In January 2026, we repaid approximately $ 5.7 billion of the debt assumed as part of the Frontier acquisition.

On January 30, 2026, Verizon completed the acquisition of Starry Group Holdings, Inc., a fixed wireless broadband provider serving multi-dwelling units in five markets across the U.S.

The aggregate cash consideration paid by Verizon at the closing of the transaction was insignificant.

Wireless Licenses, Goodwill and Other Intangible Assets

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Wireless licenses $ 157,039 $ 156,613

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, 2025 and 2024, approximately $ 7.0 billion and $ 10.1 billion, respectively, of wireless licenses were under development for commercial service for which we were capitalizing interest costs.

We recorded $ 616 million and $ 1.4 billion of capitalized interest on wireless licenses for the years ended December 31, 2024 and 2023, respectively.

We recorded $ 428 million and $ 616 million of capitalized interest on wireless licenses for the years ended December 31, 2025 and 2024, respectively.

During 2025 and 2024, we renewed various wireless licenses in accordance with FCC regulations with an average renewal period of 10 years.

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As discussed in Note 1, we test our wireless licenses for potential impairment annually or more frequently if impairment indicators are present.

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.

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.

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.

In 2025, 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.

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 fiber, 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:

(dollars in millions) Consumer

Business Other Total

Business Total

Balance at January 1, 2024 (1)

$ 21,177 $ 1,666 $ 22,843

Verizon Business Group goodwill impairment

— ( 5,841 ) — ( 5,841 )

Reclassifications, adjustments and other

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21,177 1,664 22,841

Reclassifications, adjustments and other — ( 2 ) — ( 2 )

Balance at December 31, 2025 (1)

$ 21,177 $ 1,664 $ 22,841

(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.

(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.

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.

(1) Goodwill balances are net of accumulated impairment charges of $ 5.8 billion related to our Business reporting unit.

During the fourth quarter of 2024, we performed a quantitative impairment assessment for our Consumer reporting unit in accordance with our policy.

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.

Our assessment indicated that the fair value of our Consumer reporting unit exceeded its carrying value and, therefore, did not result in an impairment.

Our assessment indicated that the fair value of our Consumer reporting unit substantially exceeded its carrying value and, therefore, did not result in an impairment.

During the fourth quarter of 2025, we performed a qualitative impairment assessment for our Consumer reporting unit.

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.

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.

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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.

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.

In addition, the Business reporting unit has continued to experience competitive and market pressures throughout 2024, that may persist over the near term.

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.

During the fourth quarters of both 2024 and 2025, we performed quantitative impairment assessments for our Business reporting unit.

We performed a quantitative impairment assessment in 2024 as a result of the goodwill impairment recorded in 2023 and the competitive and market pressures experienced throughout 2024.

We elected to perform a quantitative impairment assessment in 2025 given that the 2024 impairment assessment resulted in a fair value that was marginally in excess of the carrying value, as well as the sustained competitive pressures and market conditions that continued throughout 2025.

In both years, we applied a combination of a market approach and a discounted cash flow method reflecting current assumptions and inputs, including our revised projections, discount rates and expected growth rates.

These analyses both indicated that the fair value of our Business reporting unit exceeded its carrying value and, therefore, did not result in an impairment in either 2024 or 2025.

We do not anticipate reasonable changes in significant assumptions to change the outcome of the quantitative impairment assessment.

However, management believes there is a continued risk that our Business reporting unit may be required to recognize an impairment charge in the future.

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.

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 future impairment charges.

Such a decline could be driven by, among other things:

(1) decreases in sales volumes or long-term growth rate as a result of competitive pressures or other factors;

or (2) the inability to achieve or delays in achieving the goals in strategic initiatives.

or (2) the inability to achieve or delays in achieving its goals or strategic initiatives including, but not limited to, cost savings efforts.

Adverse changes to macroeconomic factors, such as increases in long-term interest rates, would also negatively impact the fair value of the reporting unit.

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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.

We continue to include the towers in Property, plant and equipment, net in our consolidated balance sheets and depreciate them accordingly.

We continue to include the towers in

Property, plant and equipment, net in our consolidated balance sheets and depreciate them accordingly.

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.

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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.

We have subleased capacity on the towers from American Tower for a minimum of 10 years at current market rates in 2015, with options to renew.

In March 2025, we renewed our lease with American Tower Corporation (American Tower) originally entered into in March 2015.

Pursuant to the original transaction, American Tower acquired the exclusive rights to lease and operate approximately 11,300 of our wireless towers.

The renewal extends our subleased capacity on the towers from American Tower for an additional 5 years, with options to renew.

We continue to include the towers in Property, plant and equipment, net in our consolidated balance sheets and depreciate them accordingly.

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Thereafter 96,753

During 2024, we received $ 15.6 billion of proceeds from long-term borrowings, which included $ 12.4 billion of proceeds from asset-backed debt transactions.

The net proceeds were primarily used for general corporate purposes including the repayment of debt and the funding of certain renewable energy projects.

We used $ 20.3 billion of cash to repay and repurchase long-term borrowings and finance lease obligations, including $ 8.5 billion to prepay and repay asset-backed, long-term borrowings.

The net proceeds of approximately $ 1.0 billion from the notes issued in 2024 are expected to be used to fund certain renewable energy projects.

During 2025, we received $ 27.6 billion of proceeds from long-term borrowings including current maturities, which included $ 9.3 billion of proceeds from asset-backed debt transactions.

The net proceeds were primarily used for general corporate purposes including the repayment of debt.

We used $ 19.8 billion of cash to repay and repurchase long-term borrowings including current maturities and finance lease obligations, including $ 8.4 billion to prepay and repay asset-backed borrowings.

The net proceeds of approximately $ 10.2 billion from the notes issued in 2025 were primarily used to fund the acquisition of Frontier.

During 2024, we received $ 15.6 billion of proceeds from long-term borrowings, which included $ 12.4 billion of proceeds from asset-backed debt transactions.

4 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 year ended December 31, 2024.

The following tables show the significant transactions involving the unsecured debt securities of the Company and its subsidiaries that occurred during the year ended December 31, 2025.

Exchange Offers

9 unchanged sentences

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

Verizon 0.875 % - 3.250 % notes due 2025 - 2028

€ 1,981 $ 2,237

Verizon 1.450 % - 7.750 % notes and floating rate notes, due 2026 - 2030 (2)

$ 3,314 3,267

(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 9 for additional information on cross currency swap transactions related to the transaction.

(2) The tender offer was launched concurrently with the exchange offer discussed above and made available to different holders of the same series of notes.

Repayments and Repurchases

3 unchanged sentences

Verizon 3.250 % notes due 2026

Verizon 3.376 % notes due 2025

Verizon floating rate notes due 2025

Verizon 0.850 % notes due 2025

Verizon 2.625 % notes due 2026

Verizon 1.450 % notes due 2026

Verizon 4.125 % notes due 2027

Verizon 3.000 % notes due 2027

Open market repurchases of various Verizon notes (2)

Total $ 4,688

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

8 unchanged sentences

Verizon 3.750 % notes due 2037

Verizon 3.996 % junior subordinated notes due 2056 (2)

Verizon 5.742 % junior subordinated notes due 2056 (2)

£ 1,000 1,298

Verizon 5.250 % notes due 2035 (3)

$ 2,250 1,676

Verizon 4.750 % notes due 2033

Verizon 5.000 % notes due 2036

Verizon 5.750 % notes due 2045

Verizon 5.875 % notes due 2055 (3)

Verizon 6.000 % notes due 2065 (3)

Total $ 18,021

4 unchanged sentences

See Note 9 for additional information on cross currency swap transactions related to the issuances.

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

(2) Notes are subordinate to our senior unsecured notes and have an interest rate reset and deferral features.

See Note 9 for additional information on derivative activity related to these transactions.

(3) We contributed $ 1.3 billion principal amount in aggregate of the notes to our pension plans, as discussed below.

Commercial Paper Program

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As of December 31, 2025, the carrying value of our asset-backed debt was $ 27.1 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).

Our asset-backed debt includes Asset-Backed Notes (ABS Notes) issued to third-party investors (Investors), loans (ABS Financing Facilities) received from banks and their conduit facilities (collectively, the Banks), and sales of residual interests under our ABS Notes and certain ABS Financing Facilities (Class R Interest) under a master repurchase agreement (master repurchase agreement) with a bank (the Counterparty).

Our consolidated asset-backed debt bankruptcy remote legal entities (each, an ABS Entity, or collectively, the ABS Entities) issue the debt or are otherwise party to the transaction documentation in connection with our asset-backed debt transactions.

Under the terms of our asset-backed debt, Cellco Partnership (Cellco), a wholly-owned subsidiary of the Company, and certain other Company affiliates (collectively, the Originators) transfer device payment plan agreement receivables and certain other receivables (collectively referred to as certain receivables) or a participation interest in certain other receivables to one of the ABS Entities, which in turn transfers such receivables and participation interest to another ABS Entity that issues the debt.

Verizon entities retain the equity interests and residual interests, as applicable, in the ABS Entities, which represent the rights to all funds not needed to make required payments on the asset-backed debt and other related payments and expenses.

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.

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.

Under a parent support agreement, the Company has agreed to guarantee certain of the payment obligations of Cellco and the Originators to the ABS Entities.

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.

Under the terms of our asset-backed debt for ABS Notes and ABS Financing Facilities, Cellco Partnership (Cellco), a wholly-owned subsidiary of the Company, and certain other Company affiliates (collectively, the Originators) transfer device payment plan agreement receivables and certain other receivables (collectively referred to as certain receivables) or a participation interest in certain other receivables to one of the ABS Entities, which in turn transfers such receivables and participation interest to another ABS Entity that issues the debt.

Verizon entities retain the equity interests and residual interests, as applicable, in the ABS Entities and the ABS Notes and ABS Financing Facilities, as applicable, which represent the rights to all funds not needed to make required payments on such asset-backed debt and other related payments and expenses.

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

These receivables and participation interest transferred to the ABS Entities, such Class R Interest 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, as applicable, 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, Banks or Counterparty, as applicable, which hold our asset-backed debt have legal recourse to the assets securing the debt, but in the case of our ABS Notes and ABS Financing Facilities, do not have any recourse to Verizon with respect to the payment of principal and interest on the debt.

Under a parent support agreement, the Company has agreed to guarantee certain of the payment obligations of Cellco and the Originators to the ABS Entities in connection with our ABS Notes and ABS Financing Facilities.

In connection with the master repurchase agreement, the Company has agreed to unconditionally and irrevocably guarantee payment obligations of the related ABS Entity, including to repurchase Class R Interest from the Counterparty.

Cash collections on the receivables and on the underlying receivables related to the participation interest collateralizing our ABS Notes and ABS Financing Facilities are required at certain specified times to be placed into segregated accounts.

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.

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Series 2025-1

A-1a Senior class notes 5.000 1.92 $ 835

A-1b Senior class notes Compounded SOFR + 0.650

A Senior class notes

4.710 2.99 $ 535

B Junior class notes 4.940 2.99 41

7 unchanged sentences

A-1a Senior class notes

A-1b Senior class notes Compounded SOFR + 0.580

4.510 1.97 706

A-1b Senior class notes

Compounded SOFR + 0.550 (1)

B Junior class notes 4.770 1.97 68

C Junior class notes 4.900 1.97 41

April 2024 total 875

Series 2025-4

A Senior class notes

4.760 4.97 446

B Junior class notes

5.020 4.97 34

C Junior class notes

5.200 4.97 20

March 2025 total

Series 2025-5

A-1a Senior class notes

A-1b Senior class notes Compounded SOFR + 0.550

4.400 2.99 401

A-1b Senior class notes

Compounded SOFR + 0.550 (1)

B Junior class notes 4.640 2.99 —

2 unchanged sentences

A Senior class notes

4.620 4.99 267

B Junior class notes

C Junior class notes

5.060 4.99 12

June 2025 total

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

September 2025

1 unchanged sentence

A-1a Senior class notes

A-1b Senior class notes Compounded SOFR + 0.670

3.960 2.93 601

A-1b Senior class notes

Compounded SOFR + 0.520 (1)

B Junior class notes 4.210 2.93 —

2 unchanged sentences

A Senior class notes

4.160 4.93 356

B Junior class notes

4.410 4.93 27

C Junior class notes

4.600 4.93 16

September 2025 total

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

November 2025

1 unchanged sentence

A-1a Senior class notes

A-1b Senior class notes Compounded SOFR + 0.420

3.960 1.90 638

A-1b Senior class notes

Compounded SOFR + 0.420 1)

B Junior class notes 4.240 1.90 54

C Junior class notes 4.410 1.90 33

Series 2025-10

A Senior class notes

4.280 4.91 446

B Junior class notes

C Junior class notes

4.670 4.91 20

November 2025 total

Total $ 5,943

(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 December 2025 was 3.94 %.

Under the terms of each series of ABS Notes outstanding as of December 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 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.

In addition, in connection with an anticipated redemption of ABS Notes, we made a principal repayment, in whole, for $ 800 million.

During the years ended December 31, 2025 and 2024, we made aggregate principal repayments of $ 4.4 billion and $ 4.5 billion, respectively, in connection with anticipated redemptions of ABS Notes.

During 2025, we sold certain of our initially offered but retained ABS Notes for cash of $ 523 million.

In January 2026, in connection with an anticipated redemption of ABS Notes, we made a principal repayment, in whole, for $ 1.0 billion.

ABS Financing Facilities

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

Under the two loan agreements outstanding in connection with the ABS Financing Facility originally entered into in 2021 and most recently renewed in 2025 (2021 ABS Financing Facility) we prepaid an aggregate of $ 250 million in February 2025, prepaid an aggregate of $ 1.4 billion in March 2025, borrowed an additional $ 1.1 billion in April 2025, prepaid an aggregate of $ 200 million and borrowed an additional $ 125 million in June 2025, prepaid an aggregate of $ 1.1 billion in September 2025 and prepaid an aggregate of $ 750 million in November 2025.

The aggregate outstanding balance under the 2021 ABS Financing Facility was $ 5.6 billion as of December 31, 2025.

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.

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.

Under the loan agreement outstanding in connection with the ABS Financing Facility originally entered into in 2022 and most recently renewed in 2025 (2022 ABS Financing Facility), we prepaid an aggregate of $ 163 million in February 2025, borrowed an additional $ 189 million in March 2025, prepaid an aggregate of $ 241 million in April 2025 and borrowed an additional $ 241 million in December 2025.

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

In January and February 2026, we borrowed an aggregate of $ 2.3 billion and $ 1.0 billion, respectively, under the loan agreement outstanding in connection with the 2021 ABS Financing Facility.

Master Repurchase Agreement

In September 2025, we entered into a master repurchase agreement with the Counterparty to sell residual interests under our ABS Notes and certain ABS Financing Facilities for a maximum of $ 750 million w ith a simultaneous agreement to repurchase the Class R Interest at a later date for a specific price.

In December 2025, we amended the master repurchase agreement to increase the maximum to approximately $ 1.3 billion.

Under the terms of the master repurchase agreement, which is accounted for as a secured borrowing, the Counterparty is sold certain Class R Interest for a specific period of time without the right to further sell or repledge such Class R Interest.

However, we have the right and obligation to repurchase the Class R Interest, or substantially similar assets sold to the Counterparty, upon the maturity of the master repurchase agreement.

During 2025, we received approximately $ 1.3 billion under the master repurchase agreement which remained outstanding as of December 31, 2025 and is collateralized by certain Class R interest.

The master repurchase agreement has a remaining maturity of less than one year and is classified as Debt maturing within one year in our consolidated balance sheets.

The estimated fair value of such Class R Interest was $ 1.8 billion as of December 31, 2025 .

In January 2026, we amended the master repurchase agreement to increase the maximum to $ 2.5 billion.

In connection with the amendment, we received approximately $ 1.3 billion in proceeds.

Variable Interest Entities

22 unchanged sentences

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

(2) During 2025, we drew down $ 270 million .

During 2024, there were no drawings from these facilities.

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.

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.

In January 2026, there was a $ 1.6 billion drawing from one of the export credit facilities.

Non-Cash Transactions

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.

During the years ended December 31, 2025, 2024 and 2023, we financed, primarily through alternative financing arrangements, the purchase of approximately $ 2.1 billion, $ 1.6 billion and $ 1.3 billion, respectively, of long-lived assets consisting primarily of network equipment.

As of December 31, 2025 and 2024, $ 3.0 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 consolidated statements of cash flows.

During 2025 , we made discretionary non-cash contributions to our qualified pension plans in the amount of $ 1.3 billion.

The contributions were made from the principal amounts of aggregate notes due 2035, 2055 and 2065.

These contributions are non-cash operating activities and therefore are not reflected within cash flow from operating activities in our consolidated statements of cash flows.

Net Debt Extinguishment Gains (Losses)

During the years ended December 31, 2024 and 2023, we recorded net debt extinguishment gains of $ 385 million and $ 308 million, respectively.

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.

During the years ended December 31, 2025, 2024 and 2023, we recorded net debt extinguishment gains of $ 368 million, $ 385 million and $ 308 million, respectively.

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

13 unchanged sentences

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

Included in Other assets and Accounts receivable, net at 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.

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.

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.

Included in Other assets and Accounts receivable, net at December 31, 2025 and December 31, 2024 are net device payment plan agreement receivables, net wireless service receivables and net other receivables of $ 30.0 billion and $ 29.9 billion, which have been transferred to ABS Entities and continue to be reported in our consolidated balance sheet.

Included in Accounts receivable, net at December 31, 2025 and December 31, 2024 are net other receivables of $ 1.4 billion and $ 1.2 billion, 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.

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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.

Wireless Device Payment Plan Agreement Receivables

27 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.

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

previously been Verizon customers.

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

13 unchanged sentences

Year of Origination (1)

(dollars in millions) 2024 2023 2022 and prior

(dollars in millions) 2025 2024 2023 and prior Total

Device payment plan agreement receivables, at amortized cost

11 unchanged sentences

Year of Origination

(dollars in millions) 2024 2023 and prior

(dollars in millions) 2025 2024 and prior Total

Wireless service receivables, at amortized cost $ 6,002 $ 60 $ 6,062

5 unchanged sentences

The expected loss rate is determined based on customer credit scores and other qualitative factors as noted above.

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.

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.

33 unchanged sentences

Fixed income securities $ — $ 40 $ — $ 40

Interest rate caps — 3 — 3

Cross currency swaps — 4 — 4

Foreign exchange forwards — 1 — 1

Other assets:

Marketable equity securities

Fixed income securities — 344 — 344

5 unchanged sentences

Foreign exchange forwards — 1 — 1

Interest rate caps — 3 — 3

Other liabilities:

9 unchanged sentences

Fixed income securities $ — $ 16 $ — $ 16

Cross currency swaps — 4 — 4

Foreign exchange forwards — 4 — 4

Interest rate caps — 3 — 3

2 unchanged sentences

Cross currency swaps — 500 — 500

Interest rate caps — 7 — 7

Total $ — $ 788 $ — $ 788

4 unchanged sentences

Interest rate caps — 3 — 3

Contingent consideration — — 52 52

Other liabilities:

1 unchanged sentence

Cross currency swaps — 2,344 — 2,344

Interest rate caps — 7 — 7

Total $ — $ 7,999 $ — $ 7,999

7 unchanged sentences

Cumulative adjustments due to observable price changes and impairment charges were approximately $ 191 million and $ 144 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 2024 and 2023, we made payments of $ 52 million and $ 257 million, respectively, related to the contingent consideration.

See Note 3 for additional information.

Marketable equity securities are valued using quoted prices in active markets for identical assets and thus are classified within Level 1.

Fixed income securities consist primarily of investments in municipal bonds.

30 unchanged sentences

Notional value settled 985 2,046

Pre-tax gain recognized in Interest expense 4 1

Pre-tax gain (loss) recognized in Interest expense ( 10 ) 4

Cross Currency Swaps:

4 unchanged sentences

Excluded components recognized in Other comprehensive income (loss)

( 1,131 ) 730

Initial value of the excluded component amortized into Interest expense 92 96

3 unchanged sentences

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

( 121 ) ( 21 )

(dollars in millions)

2 unchanged sentences

Cash paid for settlement of interest rate swaps

$ ( 45 ) $ ( 57 )

Cash received (paid) for settlement of treasury rate locks (1)

1 unchanged sentence

Cash paid for settlement of cross currency swaps, net ( 91 ) ( 243 )

(1) In 2025, treasury rate locks settlement payments amounting to $ 121 million were deferred by incorporating the settlement amounts into the cash flows due of certain fixed-to-float interest rate swaps executed in November 2025.

Inclusion of the treasury rate locks settlement amounts into the cash flows of these fixed-to-float interest rate swaps resulted in an other-than-insignificant financing element at inception.

As such, the cash flows associated with these interest rate swaps will be classified as financing activities in the consolidated statements of cash flows.

The following table displays the amounts recorded in Long-term debt in our consolidated balance sheets related to cumulative basis adjustments for our interest rate swaps designated as fair value hedges.

29 unchanged sentences

We estimate that $ 86 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).

Net Investment Hedges

2 unchanged sentences

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

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).

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

We recognize gains and losses resulting from interest rate movements in Interest expense.

Undesignated Derivatives

7 unchanged sentences

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

Treasury Rate Locks:

Notional value entered into 1,250 —

Notional value settled 1,250 —

Pre-tax gain (loss) recognized in Interest expense ( 5 ) —

Foreign Exchange Forwards

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.

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.

Concentrations of Credit Risk

2 unchanged sentences

The CSA agreements contain fixed cap amounts or rating based thresholds such that we or our counterparties may be required to hold or post collateral based upon changes in outstanding positions as compared to established thresholds or caps and changes in credit ratings.

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 both December 31, 2025 and 2024, we did no t hold any collateral.

20 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.

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.

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.

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.

61 unchanged sentences

Amounts recognized in the balance sheets

Non-current assets $ 254 $ — $ — $ —

Current liabilities $ ( 36 ) $ ( 38 ) $ ( 612 ) $ ( 643 )

4 unchanged sentences

Total $ 412 $ 523 $ ( 703 ) $ ( 833 )

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.

The accumulated benefit obligation for all defined benefit pension plans was $ 7.9 billion at both December 31, 2025 and 2024.

Pension Annuitization

4 unchanged sentences

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 $ 5.6 billion, of assets of the Pension Plans, net of certain settlements.

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.

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.

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 consolidated balance sheets.

Actuarial (Gain) Loss, Net

The net actuarial loss in 2025 is primarily the result of a $ 375 million loss ($ 106 million in our pension plans and $ 269 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 5.8 % for our pension plans and 5.6 % for our postretirement plans at December 31, 2024 to a weighted-average of 5.7 % for our pension plans and 5.4 % for our postretirement plans at December 31, 2025.

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.

Plan Amendments

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.

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.

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.

Information for pension plans with an accumulated benefit obligation in excess of plan assets follows:

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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.

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.

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.

The assumed health care cost trend rates are as follows:

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The Company’s overall investment strategy is to achieve a mix of assets that allows us to meet projected benefit payments while taking into consideration risk and return.

While target allocation percentages will vary over time, the current target allocation for plan assets is designed so that 53 % to 63 % of the assets have the objective of achieving a return in excess of the growth in liabilities (comprised of public equities, private equities, real estate, hedge funds, high yield bonds and emerging market debt) and 41 % to 51 % of the assets are invested as liability hedging assets (where interest rate sensitivity of the liability hedging assets better match the interest rate sensitivity of the liability) and a maximum of 10 % is in cash.

While target allocation percentages will vary over time, the current target allocation for plan assets is designed so that 45 % to 55 % of the assets have the objective of achieving a return in excess of the growth in liabilities (comprised of public equities, private equities, real estate, hedge funds, and high yield bonds) and 52 % to 62 % of the assets are invested as liability hedging assets (where interest rate sensitivity of the liability hedging assets better match the interest rate sensitivity of the liability) and a maximum of 10 % is in cash.

This allocation will shift as funded status improves to a higher allocation of liability hedging assets.

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Due to our diversification and risk control processes, there are no significant concentrations of risk, in terms of sector, industry, geography or company names.

Pension and healthcare and life plans assets do not include significant amounts of Verizon bonds or common stock.

As of December 31, 2025, approximately 8 % of pension plan assets consist of Verizon bonds and common stock.

Healthcare and life plan assets do not include significant amounts of Verizon bonds or common stock.

Pension Plans

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Employer Contributions

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.

In 2025, we made discretionary non-cash contributions in the aggregate principal amount of $ 1.3 billion to our qualified pension plans.

We made contributions of $ 54 million to our nonqualified pension plans and $ 762 million of contributions to our other postretirement benefit plans.

For 2026, we expect no required qualified pension plan contributions and insignificant nonqualified pension plan contributions.

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Severance, Pension and Benefits Charges (Credits)

During 2025, we recorded net pre-tax severance charges of $ 1.5 billion, principally as a result of separations in connection with workforce reduction initiatives, in Selling, general and administrative expense in our consolidated statements of income.

More than 13,000 employees separated from Verizon under this initiative, with the majority of these employees having exited through December 31, 2025.

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.

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 the majority of these employees having exited through December 31, 2024.

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.

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.

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

During 2023, we recorded net pre-tax severance charges of $ 531 million in Selling, general and administrative expense in our consolidated statements of income.

During 2025, 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 benefit charges of $ 453 million in our pension and postretirement benefit plans.

The net charge was recorded in Other income (expense), net, in our consolidated statement of income.

This was primarily driven by a charge of $ 375 million ($ 106 million for pension plans and $ 269 million for postretirement benefit plans) due to a decrease in our

discount rate assumption used to determine the current year liabilities of our plans from a weighted-average of 5.8 % for our pension plans and 5.6 % for our postretirement plans at December 31, 2024 to a weighted-average of 5.7 % for our pension plans and 5.4 % for our postretirement plans at December 31, 2025, and a net charge of $ 78 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 2024, we recorded net pre-tax pension and benefits credits of $ 657 million in our pension and postretirement benefit plans.

The net gain was recorded in Other income (expense), net, in our consolidated statement of income.

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;

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 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;

a charge of $ 1.0 billion due to the difference between our estimated and our actual return on plan assets;

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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.

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.

The components of income before provision for income taxes are as follows:

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Effective income tax rate $ 5,064 22.3 % $ 5,030 21.9 % $ 4,892 28.8 %

(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.

(1) The states that contribute to the majority (greater than 50%) of the tax effect in this category include California, Illinois, Maryland, Pennsylvania and Virginia for 2025, California, Maryland and Pennsylvania for 2024, California, Georgia, Illinois, Maryland and Virginia for 2023.

The effective income tax rate for 2025 was 22.3 % compared to 21.9 % for 2024.

The increase in the effective income tax rate and provision for income taxes was primarily due to higher tax benefits resulting from the favorable resolution of various income tax matters and a reduction in deferred income taxes due to changes in state apportionment during the prior period.

The effective income tax rate for 2024 was 21.9 % compared to 28.8 % for 2023.

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.

The increase in the provision for income taxes was primarily due to the increase in income before income taxes in the current period.

The effective income tax rate for 2023 was 28.8 % compared to 23.1 % for 2022.

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.

The amounts of cash taxes paid by Verizon are as follows:

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Total $ 6,468 $ 8,460 $ 5,366

In 2024, there were no individual jurisdictions with cash taxes paid that equaled or exceeded 5% of total income taxes paid.

In 2025 and 2023, the only jurisdiction with cash taxes paid that equaled or exceeded 5% of total income taxes paid was Ireland.

In 2024, there were no individual jurisdictions with cash taxes paid that equaled or exceeded 5% of total income taxes paid.

Deferred Tax Assets and Liabilities

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At December 31, 2025, we had net after-tax loss, credit, and other carry forwards for income tax purposes of approximately $ 1.4 billion that relate to federal, state and foreign taxes.

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.

During 2024, the valuation allowance increased by $ 59 million.

Of these net after-tax loss, credit, and other carry forwards, approximately $ 854 million will expire between 2026 and 2045 and approximately $ 570 million may be carried forward indefinitely.

During 2025, the valuation allowance decreased by $ 238 million, primarily related to state income taxes.

The $ 1.2 billion valuation allowance at December 31, 2025 is primarily related to state and foreign taxes.

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Balance at December 31, $ 2,647 $ 2,635 $ 2,705

Included in the total unrecognized tax benefits at December 31, 2024, 2023 and 2022 is $ 2.3 billion, $ 2.3 billion and $ 2.5 billion, respectively, that if recognized, would favorably affect the effective income tax rate.

At December 31, 2025, 2024, and 2023 the total unrecognized tax benefits included $ 2.3 billion, in each respective period, that if recognized, would favorably affect the effective income tax rate.

We recognized the following net after-tax expenses (benefit) related to interest and penalties in the provision for income taxes:

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At December 31, (dollars in millions)

The decrease in unrecognized tax benefits in 2024 was primarily due to the resolution of issues under income tax examinations.

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.

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The IRS is currently examining the Company’s U.S.

income tax returns for tax years 2017 through 2019 and Cellco's U.S.

income tax return for tax year 2020.

income tax returns for tax years 2017 through 2019.

Tax controversies are ongoing for tax years as early as 2011 in certain states and as early as 2000 outside the U.S.

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We also provide FWA broadband through our 5G or 4G LTE networks as an alternative to traditional landline internet access.

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.

As of December 31, 2025, our wireline services are provided in nine U.S.

states and Washington D.C.

over our 100% fiber-optic network through our fiber product portfolio, as well as over a traditional copper-based network.

Business Group Our Business segment provides wireless and wireline communications services and products, including mobility communication services, FWA and wireline broadband, Internet of Things (IoT) connectivity solutions, advanced communication services, corporate networking solutions, local and long distance voice services, and security and managed network services.

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

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External Operating Revenues

Service $ 76,880 $ — $ 76,880

$ 80,617 $ — $ 80,617

Wireless equipment 21,779 — 21,779

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Operating Income $ 29,628 $ 2,532 $ 32,160

(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.

(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 amounted to approximately $ 25.4 billion and $ 3.7 billion, respectively, for the year ended December 31, 2025.

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External Operating Revenues

Service $ 74,874 $ — $ 74,874

$ 79,245 $ — $ 79,245

Wireless equipment 19,598 — 19,598

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Operating Income $ 29,484 $ 2,058 $ 31,542

(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.

(3) 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.

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External Operating Revenues

Service $ 73,139 $ — $ 73,139

$ 77,127 $ — $ 77,127

Wireless equipment 20,645 — 20,645

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Operating Income $ 29,011 $ 2,066 $ 31,077

(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.

(3) 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.

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(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 revenues for our two reportable segments and includes intersegment activity:

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

(dollars in millions)

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Total Fios revenue $ 12,922 $ 12,899 $ 12,849

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

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

(dollars in millions)

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Total Wireless service revenue $ 83,703 $ 82,073 $ 79,534

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

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( 583 ) ( 374 ) ( 480 )

Acquisition and integration related charges

Legacy legal matter

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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.

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.

During the years ended December 31, 2025, 2024, and 2023, we did no t repurchase any shares of our common stock under our share buyback program.

At December 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.

The share buyback program authorized by the Board in February 2020 terminated upon the authorization of the new share repurchase program discussed below.

On January 30, 2026, the Board of Directors of the Company authorized a share repurchase program for up to $ 25 billion of our common stock.

The program will terminate when the aggregate consideration paid to purchase shares of our common stock reaches $ 25 billion, exclusive of any fees, commissions or other expenses, or a new share repurchase plan superseding the current plan is authorized, whichever is sooner.

Under the program, shares may be repurchased in privately negotiated transactions, on the open market, or otherwise, including through plans complying with Rule 10b5-1 or Rule 10b-18 under the Exchange Act.

The timing and number of shares purchased under the program, if any, will depend on prevailing stock prices, general economic and market conditions, and other considerations.

The share repurchase program does not obligate us to acquire any particular amount of common stock, and the program may be suspended or discontinued at any time at our discretion.

Common stock has been used from time to time to satisfy some of the funding requirements of employee and shareholder plans.

During the years ended December 31, 2025, 2024, and 2023, we issued 7.5 million, 5.4 million and 4.4 million shares of common stock from treasury stock, which had aggregate values of $ 328 million, $ 238 million and $ 192 million, respectively.

Noncontrolling Interests

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.

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 $ 228 million, reflected in Other, and a reduction of noncontrolling interest of $ 52 million,

reflected in Distributions and other, both within our consolidated statement of changes in equity for the year ended December 31, 2024.

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)

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Excluded components recognized in other comprehensive income — — 617 — — 617

Other comprehensive loss ( 153 ) ( 174 ) — ( 25 ) ( 317 ) ( 669 )

Other comprehensive income 62 3 — 5 — 70

Amounts reclassified to net income — 85 ( 81 ) 2 ( 208 ) ( 202 )

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Excluded components recognized in other comprehensive income — — 547 — — 547

Other comprehensive income 62 3 — 5 — 70

Other comprehensive loss ( 97 ) ( 16 ) — ( 3 ) — ( 116 )

Amounts reclassified to net income — 97 ( 63 ) — ( 8 ) 26

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Excluded components recognized in other comprehensive income — — ( 848 ) — — ( 848 )

Other comprehensive loss ( 97 ) ( 16 ) — ( 3 ) — ( 116 )

Other comprehensive income (loss) 126 ( 91 ) — 5 — 40

Amounts reclassified to net income — 83 ( 69 ) — ( 10 ) 4

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Other components of net periodic benefit (cost) income ( 827 ) 300 ( 938 )

Net debt extinguishment gains (losses) 385 308 ( 1,077 )

Net debt extinguishment gains 368 385 308

Other, net 237 ( 26 ) ( 37 )

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Changes in device payment plan agreement non-current receivables $ ( 2,485 ) $ ( 538 ) $ ( 2,975 )

Net debt extinguishment (gains) losses ( 385 ) ( 308 ) 1,077

Net debt extinguishment gains ( 368 ) ( 385 ) ( 308 )

Other, net 597 1,096 ( 427 )

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$ ( 1,949 ) $ ( 1,075 ) $ ( 1,470 )

(1) These costs include the premiums paid for the early extinguishment of debt, fees paid in connection with exchange and tender offers, and settlements of associated instruments.

(1) These costs include fees paid in connection with exchange and tender offers and settlements of associated instruments.

Supplier Finance Program

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Invoices paid during the year ( 3,580 ) ( 3,594 )

Confirmed obligations outstanding at the end of year $ 772

Confirmed obligations outstanding at the end of the year $ 723 $ 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.

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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.

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

Twenty-one 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.

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We estimate that these unconditional purchase obligations, for contracts with terms in excess of one year, total $ 15.0 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.

Of this total amount, $ 5.8 billion is attributable to 2026, $ 5.1 billion is attributable to 2027, $ 3.1 billion is attributable to 2028, $ 528 million is attributable to 2029, $ 282 million is attributable to 2030 and $ 207 million is attributable to years thereafter.

These amounts do not represent our entire anticipated purchases in the future, but represent only those items that are the subject of contractual obligations.

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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-K

Item 8. Financial Statements and Supplementary Data