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1、 As of June 30,2024 Table of ContentsCondensed Consolidated Statements of Income 3 Condensed Consolidated Balance Sheets 4 Consolidated-Selected Financial and Operating Statistics 5 Condensed Consolidated Statements of Cash Flows 6 Consumer Selected Financial Results 7 Consumer Selected Operating St

2、atistics 8 Business Selected Financial Results 9 Business Selected Operating Statistics 10 Supplemental Information 11 Non-GAAP Reconciliations and Notes 12 Verizon Communications Inc.Condensed Consolidated Statements of Income (dollars in millions,except per share amounts)202220232024UnauditedFull

3、Year1Q2Q3Q4QFull Year1Q2QYear to dateOperating RevenuesService revenues and other$109,625$27,152$27,319$27,523$27,658$109,652$27,620$27,798$55,418 Wireless equipment revenues 27,210 5,760 5,277 5,813 7,472 24,322 5,361 4,998 10,359 Total Operating Revenues 136,835 32,912 32,596 33,336 35,130 133,974

4、 32,981 32,796 65,777 Operating ExpensesCost of services 28,637 7,078 6,986 7,084 6,952 28,100 6,967 6,904 13,871 Cost of wireless equipment 30,496 6,426 5,778 6,353 8,230 26,787 5,905 5,567 11,472 Selling,general and administrative expense 30,136 7,506 8,253 7,995 8,991 32,745 8,143 8,024 16,167 De

5、preciation and amortization expense 17,099 4,318 4,359 4,431 4,516 17,624 4,445 4,483 8,928 Verizon Business Group goodwill impairment 5,841 5,841 Total Operating Expenses 106,368 25,328 25,376 25,863 34,530 111,097 25,460 24,978 50,438 Operating Income 30,467 7,584 7,220 7,473 600 22,877 7,521 7,81

6、8 15,339 Equity in earnings(losses)of unconsolidated businesses 44 9 (33)(18)(11)(53)(9)(14)(23)Other income(expense),net 1,373 114 210 170 (807)(313)198 (72)126 Interest expense(3,613)(1,207)(1,285)(1,433)(1,599)(5,524)(1,635)(1,698)(3,333)Income(Loss)Before Provision For Income Taxes 28,271 6,500

7、6,112 6,192 (1,817)16,987 6,075 6,034 12,109 Provision for income taxes(6,523)(1,482)(1,346)(1,308)(756)(4,892)(1,353)(1,332)(2,685)Net Income(Loss)$21,748$5,018$4,766$4,884$(2,573)$12,095$4,722$4,702$9,424 Net income attributable to noncontrolling interests$492$109$118$122$132$481$120$109$229 Net i

8、ncome(loss)attributable to Verizon 21,256 4,909 4,648 4,762 (2,705)11,614 4,602 4,593 9,195 Net Income(Loss)$21,748$5,018$4,766$4,884$(2,573)$12,095$4,722$4,702$9,424 Basic Earnings Per Common ShareNet income(loss)attributable to Verizon$5.06$1.17$1.10$1.13$(0.64)$2.76$1.09$1.09$2.18 Weighted-averag

9、e shares outstanding(in millions)4,202 4,207 4,208 4,213 4,214 4,211 4,215 4,215 4,215 Diluted Earnings Per Common Share(1)Net income(loss)attributable to Verizon$5.06$1.17$1.10$1.13$(0.64)$2.75$1.09$1.09$2.18 Weighted-average shares outstanding(in millions)4,204 4,211 4,213 4,216 4,214 4,215 4,219

10、4,221 4,220 Footnotes:(1)Where applicable,Diluted Earnings per Common Share includes the dilutive effect of shares issuable under our stock-based compensation plans,which represents the only potential dilution.EPS may not add due to rounding.Verizon Communications Inc.3Condensed Consolidated Balance

11、 Sheets (dollars in millions)Unaudited12/31/223/31/236/30/239/30/2312/31/233/31/246/30/24AssetsCurrent assetsCash and cash equivalents$2,605$2,234$4,803$4,210$2,065$2,365$2,432 Accounts receivable 25,332 23,748 24,108 24,559 26,102 26,380 26,702 Less Allowance for credit losses 826 892 922 957 1,017

12、 1,061 1,095 Accounts receivable,net 24,506 22,856 23,186 23,602 25,085 25,319 25,607 Inventories 2,388 2,381 1,896 2,240 2,057 2,076 1,841 Prepaid expenses and other 8,358 8,251 7,503 8,067 7,607 8,197 8,176 Total current assets 37,857 35,722 37,388 38,119 36,814 37,957 38,056 Property,plant and eq

13、uipment 307,689 310,519 313,424 316,767 320,108 322,266 324,978 Less Accumulated depreciation 200,255 203,532 206,154 209,277 211,798 214,403 217,088 Property,plant and equipment,net 107,434 106,987 107,270 107,490 108,310 107,863 107,890 Investments in unconsolidated businesses 1,071 1,052 1,015 92

14、9 953 941 908 Wireless licenses 149,796 150,485 151,337 155,465 155,667 156,111 156,291 Goodwill 28,671 28,674 28,647 28,642 22,843 22,842 22,842 Other intangible assets,net 11,461 11,246 11,097 10,952 11,057 10,835 10,680 Operating lease right-of-use assets 26,130 25,947 25,345 25,086 24,726 24,351

15、 24,064 Other assets 17,260 17,603 17,856 18,147 19,885 19,258 18,415 Total assets$379,680$377,716$379,955$384,830$380,255$380,158$379,146 Liabilities and EquityCurrent liabilitiesDebt maturing within one year$9,963$12,081$14,827$12,950$12,973$15,594$23,255 Accounts payable and accrued liabilities 2

16、3,977 19,273 20,067 26,140 23,453 20,139 19,727 Current operating lease liabilities 4,134 4,177 4,211 3,906 4,266 4,282 4,247 Other current liabilities 12,097 12,237 12,299 12,681 12,531 13,616 13,577 Total current liabilities 50,171 47,768 51,404 55,677 53,223 53,631 60,806 Long-term debt 140,676 1

17、40,772 137,871 134,441 137,701 136,104 126,022 Employee benefit obligations 12,974 12,750 12,357 12,226 13,189 12,805 12,812 Deferred income taxes 43,441 43,667 44,055 44,434 45,781 45,980 46,082 Non-current operating lease liabilities 21,558 21,303 20,745 20,773 20,002 19,654 19,456 Other liabiliti

18、es 18,397 17,237 17,021 18,191 16,560 16,258 16,429 Total long-term liabilities 237,046 235,729 232,049 230,065 233,233 230,801 220,801 EquityCommon stock 429 429 429 429 429 429 429 Additional paid in capital 13,420 13,523 13,523 13,524 13,631 13,571 13,539 Retained earnings 82,380 84,543 86,448 88

19、,416 82,915 84,714 86,504 Accumulated other comprehensive loss(1,865)(2,177)(1,921)(1,428)(1,380)(1,199)(1,287)Common stock in treasury,at cost(4,013)(3,832)(3,830)(3,828)(3,821)(3,602)(3,590)Deferred compensation employee stock ownership plans and other 793 397 544 628 656 421 577 Noncontrolling in

20、terests 1,319 1,336 1,309 1,347 1,369 1,392 1,367 Total equity 92,463 94,219 96,502 99,088 93,799 95,726 97,539 Total liabilities and equity$379,680$377,716$379,955$384,830$380,255$380,158$379,146 Verizon Communications Inc.4Consolidated-Selected Financial and Operating Statistics (dollars in millio

21、ns)Unaudited12/31/223/31/236/30/239/30/2312/31/233/31/246/30/24Total debt$150,639$152,853$152,698$147,391$150,674$151,698$149,277 Unsecured debt$130,631$132,018$131,356$126,440$128,491$128,408$125,262 Net unsecured debt(1)$128,026$129,784$126,553$122,230$126,426$126,043$122,830 Unsecured debt/Consol

22、idated Net Income(LTM)6.1x 5.9x 10.6x 10.9x 10.7x Net unsecured debt/Consolidated Adjusted EBITDA(1)(2)2.6x 2.6x 2.6x 2.6x 2.5x Common shares outstanding end of period(in millions)4,200 4,204 4,204 4,204 4,204 4,209 4,210 Total employees(000)(3)117.1 115.5 114.2 110.5 105.4 104.4 103.9 Quarterly cas

23、h dividends declared per common share$0.6525$0.6525$0.6525$0.6650$0.6650$0.6650$0.6650 Footnotes:(1)Non-GAAP financial measure.(2)Consolidated Adjusted EBITDA excludes the effects of non-operational items and special items.(3)Number of employees on a full-time equivalent basis.Verizon Communications

24、 Inc.5Condensed Consolidated Statements of Cash Flows (dollars in millions)12 Mos.Ended3 Mos.Ended6 Mos.Ended9 Mos.Ended12 Mos.Ended3 Mos.Ended6 Mos.EndedUnaudited12/31/223/31/236/30/239/30/2312/31/233/31/246/30/24Cash Flows from Operating ActivitiesNet Income$21,748$5,018$9,784$14,668$12,095$4,722$

25、9,424 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization expense 17,099 4,318 8,677 13,108 17,624 4,445 8,928 Employee retirement benefits(2,046)54 108 161 1,206 62 354 Deferred income taxes 2,973 331 633 822 2,388 141 282 Provision for exp

26、ected credit losses 1,611 530 1,061 1,596 2,214 567 1,119 Equity in(earnings)losses of unconsolidated businesses,net of dividends received(10)10 49 69 84 14 33 Verizon Business Group goodwill impairment 5,841 Changes in current assets and liabilities,net of effects from acquisition/disposition of bu

27、sinesses(456)(774)(620)972 (267)(2,531)(3,572)Other,net(3,778)(1,198)(1,672)(2,598)(3,710)(336)1 Net cash provided by operating activities 37,141 8,289 18,020 28,798 37,475 7,084 16,569 Cash Flows from Investing ActivitiesCapital expenditures(including capitalized software)(23,087)(5,958)(10,070)(14

28、,164)(18,767)(4,376)(8,071)Cash received(paid)related to acquisitions of businesses,net of cash acquired 248 (30)Acquisitions of wireless licenses(3,653)(598)(1,085)(1,859)(5,796)(449)(613)Collateral receipts(payments)related to derivative contracts,net(2,265)367 824 162 880 (432)(424)Proceeds from

29、disposition of business 33 Other,net 62 79 131 253 281 12 (2)Net cash used in investing activities(28,662)(6,110)(10,200)(15,608)(23,432)(5,245)(9,110)Cash Flows from Financing ActivitiesProceeds from long-term borrowings 7,074 504 1,503 1,999 2,018 3,110 3,122 Proceeds from asset-backed long-term b

30、orrowings 10,732 1,754 3,705 4,656 6,594 2,510 5,828 Net proceeds from(repayments of)short-term commercial paper 106 342 (167)333 (150)2,347 603 Repayments of long-term borrowings and finance lease obligations(8,616)(1,325)(2,600)(5,568)(6,181)(4,508)(5,719)Repayments of asset-backed long-term borro

31、wings(4,948)(931)(2,383)(3,729)(4,443)(1,408)(4,008)Dividends paid(10,805)(2,744)(5,487)(8,231)(11,025)(2,796)(5,598)Other,net(2,072)17 (157)(1,101)(1,470)(683)(1,290)Net cash used in financing activities(8,529)(2,383)(5,586)(11,641)(14,657)(1,428)(7,062)Increase(decrease)in cash,cash equivalents an

32、d restricted cash(50)(204)2,234 1,549 (614)411 397 Cash,cash equivalents and restricted cash,beginning of period 4,161 4,111 4,111 4,111 4,111 3,497 3,497 Cash,cash equivalents and restricted cash,end of period$4,111$3,907$6,345$5,660$3,497$3,908$3,894 Verizon Communications Inc.6Consumer-Selected F

33、inancial Results (dollars in millions)20232024Unaudited1Q2Q3Q4Q1Q2QOperating RevenuesService$18,456$18,641$18,850$18,927$18,998$19,208 Wireless equipment 4,878 4,430 4,902 6,435 4,490 4,143 Other 1,523 1,487 1,505 1,592 1,569 1,576 Total Operating Revenues 24,857 24,558 25,257 26,954 25,057 24,927 O

34、perating ExpensesCost of services 4,432 4,367 4,419 4,362 4,537 4,450 Cost of wireless equipment 5,191 4,626 5,133 6,877 4,750 4,432 Selling,general and administrative expense 4,921 4,988 4,886 5,336 5,089 5,047 Depreciation and amortization expense 3,214 3,247 3,272 3,344 3,309 3,394 Total Operatin

35、g Expenses 17,758 17,228 17,710 19,919 17,685 17,323 Operating Income$7,099$7,330$7,547$7,035$7,372$7,604 Operating Income Margin 28.6%29.8%29.9%26.1%29.4%30.5%Segment EBITDA(1)$10,313$10,577$10,819$10,379$10,681$10,998 Segment EBITDA Margin(1)41.5%43.1%42.8%38.5%42.6%44.1%Footnotes:(1)Non-GAAP fina

36、ncial measure.The segment financial results and metrics above exclude the effects of special items(other than the effects of acquisition-related intangible asset amortization),which the Companys chief operating decision maker does not consider in assessing segment performance.Certain intersegment tr

37、ansactions with corporate entities have not been eliminated.Verizon Communications Inc.7Consumer-Selected Operating Statistics 20232024Unaudited1Q2Q3Q4Q1Q2QConnections(000):Wireless retail postpaid 92,192 92,474 92,704 93,850 93,905 93,960 Wireless retail prepaid 22,331 21,646 21,420 21,122 20,904 2

38、0,276 Total wireless retail 114,523 114,120 114,124 114,972 114,809 114,236 Wireless retail prepaid excl.SafeLink 19,758 19,362 19,123 18,851 18,717 18,702 Wireless retail postpaid phone 74,611 74,465 74,407 74,720 74,561 74,551 Fios video 3,160 3,091 3,013 2,951 2,883 2,818 Fios internet 6,803 6,85

39、4 6,923 6,976 7,025 7,049 Fixed wireless access(FWA)broadband 1,140 1,390 1,641 1,866 2,070 2,292 Wireline broadband 7,062 7,098 7,151 7,190 7,227 7,238 Total broadband 8,202 8,488 8,792 9,056 9,297 9,530 Gross Additions(000):Wireless retail postpaid 3,210 2,928 3,152 4,185 2,983 2,901 Wireless reta

40、il postpaid phone 1,624 1,570 1,843 2,293 1,710 1,758 Net Additions Detail(000):Wireless retail postpaid 321 304 251 1,168 75 72 Wireless retail prepaid(351)(304)(207)(289)(216)(624)Total wireless retail(30)44 879 (141)(552)Wireless retail prepaid excl.SafeLink(277)(317)(221)(263)(131)(12)Wireless r

41、etail postpaid phone(263)(136)(51)318 (158)(8)Fios video (74)(69)(78)(62)(68)(65)Fios internet 63 51 69 53 49 24 FWA broadband 256 251 251 231 203 218 Wireline broadband 46 36 53 39 36 13 Total broadband 302 287 304 270 239 231 Churn Rate:Wireless retail postpaid 1.05%0.95%1.04%1.08%1.03%1.00%Wirele

42、ss retail postpaid phone 0.84%0.76%0.85%0.88%0.83%0.79%Wireless retail prepaid 4.31%4.24%4.39%4.55%4.26%4.49%Wireless retail prepaid excl.SafeLink 3.72%3.71%3.85%3.94%3.61%3.59%Wireless retail 1.69%1.58%1.68%1.73%1.62%1.63%Revenue Statistics(in millions):Wireless service revenue$15,599$15,762$15,963

43、$16,034$16,134$16,342 Fios revenue$2,889$2,886$2,897$2,942$2,896$2,896 Other Wireless Statistics:Wireless retail postpaid ARPA(1)$130.06$131.83$133.47$134.10$135.75$138.44 Wireless retail postpaid upgrade rate 4.0%3.5%3.6%4.4%3.1%2.9%Wireless retail postpaid accounts(000)(2)33,034 32,976 32,938 32,9

44、90 32,876 32,769 Wireless retail postpaid connections per account(2)2.79 2.80 2.81 2.84 2.86 2.87 Wireless retail prepaid ARPU(3)$30.71$31.42$31.87$31.87$31.17$30.90 Wireless retail prepaid ARPU(3)excl.SafeLink$32.15$32.90$33.13$33.11$32.26$32.48 Footnotes:(1)Wireless retail postpaid ARPA-average se

45、rvice revenue per account from retail postpaid accounts.(2)Statistics presented as of end of period.(3)Wireless retail prepaid ARPU-average service revenue per unit from retail prepaid connections.Where applicable,the operating results reflect certain adjustments,including those related to the 3G ne

46、twork shutdowns,migration activity among different types of devices and plans,customer profile changes,and adjustments in connection with mergers,acquisitions and divestitures.Certain intersegment transactions with corporate entities have not been eliminated.Verizon Communications Inc.8Business-Sele

47、cted Financial Results (dollars in millions)20232024Unaudited1Q2Q3Q4Q1Q2QOperating RevenuesEnterprise and Public Sector$3,787$3,784$3,787$3,718$3,587$3,545 Business Markets and Other 3,104 3,109 3,184 3,318 3,195 3,203 Wholesale 603 590 556 582 594 552 Total Operating Revenues 7,494 7,483 7,527 7,61

48、8 7,376 7,300 Operating ExpensesCost of services 2,582 2,543 2,536 2,519 2,432 2,455 Cost of wireless equipment 1,234 1,152 1,220 1,353 1,155 1,135 Selling,general and administrative expense 2,033 2,152 2,105 2,139 2,262 2,132 Depreciation and amortization expense 1,094 1,103 1,127 1,164 1,128 1,078

49、 Total Operating Expenses 6,943 6,950 6,988 7,175 6,977 6,800 Operating Income$551$533$539$443$399$500 Operating Income Margin 7.4%7.1%7.2%5.8%5.4%6.8%Segment EBITDA(1)$1,645$1,636$1,666$1,607$1,527$1,578 Segment EBITDA Margin(1)22.0%21.9%22.1%21.1%20.7%21.6%Footnotes:(1)Non-GAAP financial measure.T

50、he segment financial results and metrics above exclude the effects of special items(other than the effects of acquisition-related intangible asset amortization),which the Companys chief operating decision maker does not consider in assessing segment performance.Certain intersegment transactions with

51、 corporate entities have not been eliminated.Verizon Communications Inc.9Business-Selected Operating Statistics 20232024Unaudited1Q2Q3Q4Q1Q2QConnections(000):Wireless retail postpaid 28,820 29,105 29,455 29,779 29,947 30,230 Wireless retail postpaid phone 17,703 17,856 18,019 18,170 18,306 18,480 Fi

52、os video 65 64 63 61 59 58 Fios internet 377 380 383 385 389 393 FWA broadband 726 870 1,038 1,201 1,358 1,523 Wireline broadband 466 464 461 460 458 458 Total broadband 1,192 1,334 1,499 1,661 1,816 1,981 Gross Additions(000):Wireless retail postpaid 1,607 1,590 1,618 1,605 1,531 1,579 Wireless ret

53、ail postpaid phone 757 733 761 738 705 760 Net Additions Detail(000):Wireless retail postpaid 312 308 330 292 178 268 Wireless retail postpaid phone 136 144 151 131 90 156 Fios video(2)(1)(1)(2)(2)(1)Fios internet 4 3 3 2 4 4 FWA broadband 137 133 133 144 151 160 Wireline broadband(2)(2)(3)(1)(1)Tot

54、al broadband 135 131 130 143 150 160 Churn Rate:Wireless retail postpaid 1.50%1.48%1.47%1.48%1.51%1.45%Wireless retail postpaid phone 1.16%1.10%1.14%1.12%1.13%1.10%Revenue Statistics(in millions):Wireless service revenue$3,290$3,351$3,367$3,364$3,379$3,431 Fios revenue$307$308$308$312$311$313 Other

55、Operating Statistics:Wireless retail postpaid upgrade rate 2.8%2.7%2.9%3.1%2.5%2.4%Footnotes:Where applicable,the operating results reflect certain adjustments,including those related to the 3G network shutdowns,migration activity among different types of devices and plans,customer profile changes,a

56、nd adjustments in connection with mergers,acquisitions and divestitures.Certain intersegment transactions with corporate entities have not been eliminated.Verizon Communications Inc.10Supplemental Information-Total Wireless Operating and Financial Statistics The following supplemental schedule conta

57、ins certain financial and operating metrics which reflect an aggregation of our Consumer and Business segments wireless results.20232024Unaudited1Q2Q3Q4Q1Q2QConnections(000)Retail postpaid 121,012 121,579 122,159 123,629 123,852 124,190 Retail prepaid 22,331 21,646 21,420 21,122 20,904 20,276 Total

58、retail 143,343 143,225 143,579 144,751 144,756 144,466 Retail prepaid excl.SafeLink 19,758 19,362 19,123 18,851 18,717 18,702 Retail postpaid phone 92,314 92,321 92,426 92,890 92,867 93,031 Net Additions Detail(000)Retail postpaid phone(127)8 100 449 (68)148 Retail postpaid 633 612 581 1,460 253 340

59、 Retail prepaid(351)(304)(207)(289)(216)(624)Total retail 282 308 374 1,171 37 (284)Retail prepaid excl.SafeLink(277)(317)(221)(263)(131)(12)Account StatisticsRetail postpaid accounts(000)(1)34,877 34,855 34,855 34,958 34,839 34,766 Retail postpaid connections per account(1)3.47 3.49 3.50 3.54 3.55

60、3.57 Retail postpaid ARPA(2)$152.27$154.51$156.13$156.48$158.25$161.20 Retail prepaid ARPU(3)$30.71$31.42$31.87$31.87$31.17$30.90 Retail prepaid ARPU(3)excl.SafeLink$32.15$32.90$33.13$33.11$32.26$32.48 Churn DetailRetail postpaid phone 0.90%0.83%0.90%0.93%0.89%0.85%Retail postpaid 1.15%1.07%1.15%1.1

61、8%1.15%1.11%Retail prepaid 4.31%4.24%4.39%4.55%4.26%4.49%Retail prepaid excl.SafeLink 3.72%3.71%3.85%3.94%3.61%3.59%Retail 1.65%1.56%1.63%1.67%1.60%1.59%Retail Postpaid Connection Statistics Upgrade rate 3.7%3.3%3.4%4.1%3.0%2.8%Revenue Statistics(in millions)(4)FWA revenue$255$297$347$403$452$514 Wi

62、reless service$18,889$19,113$19,330$19,398$19,513$19,773 Wireless equipment 5,760 5,277 5,813 7,472 5,361 4,998 Wireless other 1,515 1,486 1,507 1,575 1,585 1,600 Total Wireless$26,164$25,876$26,650$28,445$26,459$26,371 Footnotes:(1)Statistics presented as of end of period.(2)Wireless retail postpai

63、d ARPA-average service revenue per account from retail postpaid accounts.(3)Wireless retail prepaid ARPU-average service revenue per unit from retail prepaid connections.(4)Intersegment transactions between Consumer or Business segment with corporate entities have not been eliminated.Where applicabl

64、e,the operating results reflect certain adjustments,including those related to the 3G network shutdowns,migration activity among different types of devices and plans,customer profile changes,and adjustments in connection with mergers,acquisitions and divestitures.Verizon Communications Inc.11Non-GAA

65、P MeasuresVerizons Financial and Operating Information includes financial information prepared in conformity with generally accepted accounting principles in the United States(GAAP)as well as non-GAAP financial information.It is managements intent to provide non-GAAP financial information to enhance

66、 the understanding of Verizons GAAP financial information and it should be considered by the reader in addition to,but not instead of,the financial statements prepared in accordance with GAAP.Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as not to imply th

67、at more emphasis should be placed on the non-GAAP measure.We believe that providing these non-GAAP measures in addition to the GAAP measures allows management,investors and other users of our financial information to more fully and accurately assess both consolidated and segment performance.The non-

68、GAAP financial information presented may be determined or calculated differently by other companies and may not be directly comparable to that of other companies.EBITDA and EBITDA Margin Related Non-GAAP Measures Consolidated earnings before interest,taxes,depreciation and amortization(EBITDA),Segme

69、nt EBITDA and Segment EBITDA Margin are non-GAAP financial measures that we believe are useful to management,investors and other users of our financial information as they are widely accepted financial measures used in evaluating the profitability of a company and its operating performance in relati

70、on to its competitors.Consolidated EBITDA is calculated by adding back interest,taxes and depreciation and amortization expense to net income.Segment EBITDA is calculated by adding back segment depreciation and amortization expense to segment operating income.Segment EBITDA Margin is calculated by d

71、ividing Segment EBITDA by total segment operating revenues.Consolidated Adjusted EBITDA,Consolidated Adjusted EBITDA Margin and Consolidated Adjusted EBITDA Growth ForecastConsolidated Adjusted EBITDA,Consolidated Adjusted EBITDA Margin and Consolidated Adjusted EBITDA Growth Forecast are non-GAAP f

72、inancial measures that we believe provide relevant and useful information to management,investors and other users of our financial information in evaluating the effectiveness of our operations and underlying business trends.We believe that Consolidated Adjusted EBITDA,Consolidated Adjusted EBITDA Ma

73、rgin and Consolidated Adjusted EBITDA Growth Forecast are used by investors to compare a companys operating performance to its competitors by minimizing impacts caused by differences in capital structure,taxes and depreciation and amortization policies.Further,the exclusion of non-operational items

74、and special items enables comparability to prior period performance and trend analysis.Consolidated Adjusted EBITDA is calculated by excluding from Consolidated EBITDA the effect of the following non-operational items:equity in earnings and losses of unconsolidated businesses and other income and ex

75、pense,net,and the following special items:legacy legal matter,severance charges,Verizon Business Group(Verizon Business)goodwill impairment,asset rationalization,legal settlement,business transformation costs and non-strategic business shutdown.Legacy legal matter recorded during 2024 relates to a l

76、itigation matter associated with a legacy contract for the production of telephone directories in Costa Rica by a subsidiary of Verizon.Severance charges recorded during 2023 and 2022 primarily relate to involuntary separations under our existing plans.Verizon Business goodwill impairment relates to

77、 an impairment charge recognized in the fourth quarter of 2023 as a result of Verizons annual goodwill impairment test.Asset rationalization recorded during the second quarter of 2023 relates to certain real estate and non-strategic assets that we made a decision to cease use of as part of our trans

78、formation initiatives.Asset rationalization recorded during the fourth quarter of 2023 primarily relates to Verizon Business network assets that we made a decision to cease use of as part of our continued transformation initiatives.Legal settlement recorded during 2023 relates to the settlement of a

79、 litigation matter regarding certain administrative fees.Business transformation costs recorded during 2023 primarily relate to costs incurred in connection with strategic partnership initiatives in our managed network support services for certain Verizon Business customers.Non-strategic business sh

80、utdown relates to the shutdown of our BlueJeans business offering in 2023.Consolidated Adjusted EBITDA Margin is calculated by dividing Consolidated Adjusted EBITDA by consolidated operating revenues.We have not provided a reconciliation for our Consolidated Adjusted EBITDA Growth Forecast because w

81、e cannot,without unreasonable effort,predict the special items that could arise during 2024.Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA RatioNet Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio are non-GAAP financial measures that we believe a

82、re useful to management,investors and other users of our financial information in evaluating Verizons ability to service its unsecured debt from continuing operations.Net Unsecured Debt is calculated by subtracting secured debt and cash and cash equivalents,from the sum of debt maturing within one y

83、ear and long-term debt.Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio is calculated by dividing Net Unsecured Debt by Consolidated Adjusted EBITDA.For purposes of Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio,Consolidated Adjusted EBITDA is calculated for the last twelve months.

84、Adjusted Earnings per Common Share(Adjusted EPS)and Adjusted EPS ForecastAdjusted EPS and Adjusted EPS Forecast are non-GAAP financial measures that we believe are useful to management,investors and other users of our financial information in evaluating our operating results and understanding our op

85、erating trends without the effect of special items which could vary from period to period.We believe excluding special items provides more comparable assessment of our financial results from period to period.Adjusted EPS is calculated by excluding from the calculation of reported EPS the effect of t

86、he following special items:amortization of acquisition-related intangible assets,severance,pension and benefits charges and asset rationalization.We exclude the amortization of acquisition-related intangible assets because the amount and timing of such charges are significantly impacted by the timin

87、g,size,number and nature of the acquisitions we consummate.While we have a history of significant acquisition activity,we do not acquire businesses on a predictable cycle,and the amount of an acquisitions purchase price allocated to intangible assets and related amortization term are unique to each

88、acquisition and can vary significantly from acquisition to acquisition.Exclusion of this amortization expense facilitates more consistent comparisons of operating results over time between our newly acquired and long-held businesses,and with both acquisitive and non-acquisitive peer companies.We bel

89、ieve that it is important for investors to Verizon Communications Inc.Definitions-Non-GAAP Measures 12understand that our non-GAAP financial measure adjusts for the intangible asset amortization but does not adjust the revenue that is generated in part from the use of such intangible assets.We have

90、not provided a reconciliation for our Adjusted EPS Forecast because we cannot,without unreasonable effort,predict the special items that could arise during 2024.Adjusted Effective Income Tax Rate Attributable to Verizon Forecast(Adjusted ETR Forecast)Adjusted ETR Forecast is a non-GAAP financial mea

91、sure that we believe is useful to management,investors and other users of our financial information in assessing our effective income tax rate without the effect of special items which could vary from period to period.Adjusted ETR Forecast is calculated by dividing the provision for income taxes by

92、net income attributable to Verizon before tax after adjusting for the effect of special items.We have not provided a reconciliation for our Adjusted ETR Forecast because we cannot,without unreasonable effort,predict the special items that could arise during 2024.Free Cash FlowFree cash flow is a non

93、-GAAP financial measure that reflects an additional way of viewing our liquidity that,when viewed with our GAAP results,provides a more complete understanding of factors and trends affecting our cash flows.We believe it is a more conservative measure of cash flow since capital expenditures are neces

94、sary for ongoing operations.Free cash flow has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures.For example,free cash flow does not incorporate payments made or expected to be made on finance lease obligations or cash payments for

95、 acquisitions of businesses or wireless licenses.Therefore,we believe it is important to view free cash flow as a complement to our entire consolidated statements of cash flows.Free cash flow is calculated by subtracting capital expenditures(including capitalized software)from net cash provided by o

96、perating activities.Consolidated Operating Expenses Excluding Depreciation and Amortization and Special ItemsConsolidated operating expenses excluding depreciation and amortization and special items is a non-GAAP financial measure that we believe is useful to management,investors and other users of

97、our financial information in evaluating our operating expenses and underlying operating trends.We believe that consolidated operating expenses excluding depreciation and amortization and special items is used by investors to more accurately compare a companys operating expenses to those of its compe

98、titors by eliminating impacts caused by differences in depreciation and amortization policies.In addition,the exclusion of the effects of special items allows for better comparability of our financial results from period to period.Consolidated operating expenses excluding depreciation and amortizati

99、on and special items is calculated by excluding from consolidated operating expenses the effects of depreciation and amortization expense and the following special items:severance charges and asset rationalization.Verizon Communications Inc.Definitions-Non-GAAP Measures 13Consolidated EBITDA,Consoli

100、dated Adjusted EBITDA and Consolidated Adjusted EBITDA Margin(dollars in millions)202220232024Unaudited3Q4Q1Q2Q3Q4Q1Q2QConsolidated Net Income(Loss)$5,024$6,698$5,018$4,766$4,884$(2,573)$4,722$4,702 Add:Provision for income taxes 1,496 2,113 1,482 1,346 1,308 756 1,353 1,332 Interest expense 937 1,1

101、05 1,207 1,285 1,433 1,599 1,635 1,698 Depreciation and amortization expense(1)4,324 4,218 4,318 4,359 4,431 4,516 4,445 4,483 Consolidated EBITDA$11,781$14,134$12,025$11,756$12,056$4,298$12,155$12,215 Add/(subtract):Other(income)expense,net(2)$439$(2,687)$(114)$(210)$(170)$807$(198)$72 Equity in(ea

102、rnings)losses of unconsolidated businesses (2)(4)(9)33 18 11 9 14 Severance charges 304 237 296 Legacy legal matter 106 Verizon Business Group goodwill impairment 5,841 Asset rationalization 155 325 Legal settlement 100 Business transformation costs 176 Non-strategic business shutdown 158 Consolidat

103、ed Adjusted EBITDA$12,218$11,747$11,902$11,971$12,238$11,678$12,072$12,301 Consolidated Operating Revenues$32,596$33,336$35,130$32,981$32,796 Consolidated Net Income(Loss)Margin 14.6%14.7%(7.3)%14.3%14.3%Consolidated Adjusted EBITDA Margin 36.7%36.7%33.2%36.6%37.5%Consolidated Adjusted EBITDA-Year o

104、ver year change%2.8%Footnotes:(1)Includes Amortization of acquisition-related intangible assets and a portion of the Non-strategic business shutdown,where applicable.(2)Includes Pension and benefits remeasurement adjustments,where applicable.Verizon Communications Inc.Non-GAAP Reconciliations-Consol

105、idated14 Consolidated EBITDA and Consolidated Adjusted EBITDA(LTM)(dollars in millions)12 Mos.Ended12 Mos.Ended12 Mos.Ended12 Mos.Ended12 Mos.EndedUnaudited6/30/239/30/2312/31/233/31/246/30/24Consolidated Net Income$21,506$21,366$12,095$11,799$11,735 Add:Provision for income taxes 6,437 6,249 4,892

106、4,763 4,749 Interest expense 4,534 5,030 5,524 5,952 6,365 Depreciation and amortization expense(1)17,219 17,326 17,624 17,751 17,875 Consolidated EBITDA$49,696$49,971$40,135$40,265$40,724 Add/(subtract):Other(income)expense,net(2)$(2,572)$(3,181)$313$229$511 Equity in losses of unconsolidated busin

107、esses 18 38 53 71 52 Severance charges 541 541 533 533 296 Legacy legal matter 106 106 Verizon Business Group goodwill impairment 5,841 5,841 5,841 Asset rationalization 155 155 480 480 325 Legal settlement 100 100 100 Business transformation costs 176 176 176 176 Non-strategic business shutdown 158

108、 158 158 158 Consolidated Adjusted EBITDA$47,838$47,858$47,789$47,959$48,289 Footnotes:(1)Includes Amortization of acquisition-related intangible assets and a portion of the Non-strategic business shutdown,where applicable.(2)Includes Pension and benefits remeasurement adjustments,where applicable.N

109、et Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio(dollars in millions)Unaudited12/31/223/31/236/30/239/30/2312/31/233/31/246/30/24Debt maturing within one year$9,963$12,081$14,827$12,950$12,973$15,594$23,255 Long-term debt 140,676 140,772 137,871 134,441 137,701 136,104

110、126,022 Total Debt 150,639 152,853 152,698 147,391 150,674 151,698 149,277 Less Secured debt 20,008 20,835 21,342 20,951 22,183 23,290 24,015 Unsecured Debt 130,631 132,018 131,356 126,440 128,491 128,408 125,262 Less Cash and cash equivalents 2,605 2,234 4,803 4,210 2,065 2,365 2,432 Net Unsecured

111、Debt$128,026$129,784$126,553$122,230$126,426$126,043$122,830 Consolidated Net Income(LTM)$21,506$21,366$12,095$11,799$11,735 Unsecured Debt to Consolidated Net Income Ratio 6.1x 5.9x 10.6x 10.9x 10.7x Consolidated Adjusted EBITDA(LTM)$47,838$47,858$47,789$47,959$48,289 Net Unsecured Debt to Consolid

112、ated Adjusted EBITDA Ratio 2.6x 2.6x 2.6x 2.6x 2.5x Net Unsecured Debt-Quarter over quarter change$(3,213)Net Unsecured Debt-Year over year change$(3,723)Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio-Quarter over quarter change(0.1x)Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio

113、-Year over year change(0.1x)Verizon Communications Inc.Non-GAAP Reconciliations-Consolidated15Adjusted Earnings per Common Share(Adjusted EPS)(dollars in millions except per share amounts)3 Mos.Ended3 Mos.EndedUnaudited6/30/236/30/24Pre-taxTaxAfter-TaxPre-taxTaxAfter-TaxEPS$1.10$1.09 Amortization of

114、 acquisition-related intangible assets$206$(53)$153 0.04$219$(55)$164 0.04 Severance,pension and benefits charges 237 (59)178 0.04 136 (34)102 0.02 Asset rationalization 155 (33)122 0.03$598$(145)$453$0.11$355$(89)$266$0.06 Adjusted EPS$1.21$1.15 Year over year change%(5.0)%Footnote:Adjusted EPS may

115、 not add due to rounding.Free Cash Flow(dollars in millions)3 Mos.Ended3 Mos.Ended6 Mos.Ended6 Mos.EndedUnaudited6/30/236/30/246/30/236/30/24Net Cash Provided by Operating Activities$9,731$9,485$18,020$16,569 Capital expenditures(including capitalized software)(4,112)(3,695)(10,070)(8,071)Free Cash

116、Flow$5,619$5,790$7,950$8,498 Free Cash Flow for 3 Mos.Ended 6/30/24-Year over year change%3.0%Free Cash Flow for 6 Mos.Ended 6/30/24-Year over year change$548 Free Cash Flow for 6 Mos.Ended 6/30/24-Year over year change%6.9%Consolidated Operating Expenses Excluding Depreciation and Amortization and

117、Special Items(dollars in millions)3 Mos.Ended3 Mos.EndedUnaudited6/30/236/30/24Consolidated Operating Expenses$25,376$24,978 Depreciation and amortization expense(1)4,359 4,483 Severance charges 237 Asset rationalization 155 Consolidated Operating Expenses Excluding Depreciation and Amortization and

118、 Special Items$20,625$20,495 Year over year change%(0.6)%Footnote:(1)Includes Amortization of acquisition-related intangible assets.Verizon Communications Inc.Non-GAAP Reconciliations-Consolidated16Non-GAAP Reconciliations-SegmentsSegment EBITDA and Segment EBITDA MarginConsumer(dollars in millions)

119、3 Mos.3 Mos.3 Mos.3 Mos.3 Mos.3 Mos.EndedEndedEndedEndedEndedEndedUnaudited3/31/236/30/239/30/2312/31/233/31/246/30/24Operating Income$7,099$7,330$7,547$7,035$7,372$7,604 Add Depreciation and amortization expense 3,214 3,247 3,272 3,344 3,309 3,394 Segment EBITDA$10,313$10,577$10,819$10,379$10,681$1

120、0,998 Total operating revenues$24,857$24,558$25,257$26,954$25,057$24,927 Operating Income Margin 28.6%29.8%29.9%26.1%29.4%30.5%Segment EBITDA Margin 41.5%43.1%42.8%38.5%42.6%44.1%Segment EBITDA-Year over year change%4.0%Business(dollars in millions)3 Mos.3 Mos.3 Mos.3 Mos.3 Mos.3 Mos.EndedEndedEnded

121、EndedEndedEndedUnaudited3/31/236/30/239/30/2312/31/233/31/246/30/24Operating Income$551$533$539$443$399$500 Add Depreciation and amortization expense 1,094 1,103 1,127 1,164 1,128 1,078 Segment EBITDA$1,645$1,636$1,666$1,607$1,527$1,578 Total operating revenues$7,494$7,483$7,527$7,618$7,376$7,300 Operating Income Margin 7.4%7.1%7.2%5.8%5.4%6.8%Segment EBITDA Margin 22.0%21.9%22.1%21.1%20.7%21.6%Segment EBITDA-Year over year change%(3.5)%Verizon Communications Inc.17