Verizon Communications : 4Q 2020 Condensed Consolidated Statements of Income

Verizon Communications Inc.

Condensed Consolidated Statements of Income

											(dollars in millions, except per share amounts)
Unaudited			3 Mos. Ended			3 Mos. Ended	%		12 Mos. Ended			12 Mos. Ended	%
		12/31/20			12/31/19		Change			12/31/20			12/31/19		Change
Operating Revenues
Service revenues and other	$	28,268	$	28,004	0.9	$	109,872	$	110,305	(0.4)
Wireless equipment revenues			6,424			6,771	(5.1)			18,420			21,563	(14.6)
Total Operating Revenues			34,692			34,775	(0.2)			128,292			131,868	(2.7)
Operating Expenses
Cost of services			8,053			8,376	(3.9)			31,401			31,772	(1.2)
Cost of wireless equipment			6,769			7,255	(6.7)			19,800			22,954	(13.7)
Selling, general and administrative expense			8,493			8,214	3.4			31,573			29,896	5.6
Depreciation and amortization expense			4,197			4,105	2.2			16,720			16,682	0.2
Media goodwill impairment			-			186	*			-			186	*
Total Operating Expenses			27,512			28,136	(2.2)			99,494			101,490	(2.0)
Operating Income			7,180			6,639	8.1			28,798			30,378	(5.2)
Equity in earnings (losses) of unconsolidated businesses			(11)			5	*			(45)			(15)	*
Other income (expense), net			164			(1,773)	*			(539)			(2,900)	(81.4)
Interest expense			(1,080)			(1,159)	(6.8)			(4,247)			(4,730)	(10.2)
Income Before (Provision) Benefit For Income Taxes			6,253			3,712	68.5			23,967			22,733	5.4
(Provision) benefit for income taxes			(1,535)			1,505	*			(5,619)			(2,945)	90.8
Net Income	$	4,718	$	5,217	(9.6)	$	18,348	$	19,788	(7.3)
Net income attributable to noncontrolling interests	$	130	$	122	6.6	$	547	$	523	4.6
Net income attributable to Verizon			4,588			5,095	(10.0)			17,801			19,265	(7.6)
Net Income	$	4,718	$	5,217	(9.6)	$	18,348	$	19,788	(7.3)
Basic Earnings Per Common Share
Net income attributable to Verizon	$	1.11	$	1.23	(9.8)	$	4.30	$	4.66	(7.7)
Weighted-average shares outstanding (in millions)			4,140			4,139					4,140			4,138
Diluted Earnings Per Common Share (1)
Net income attributable to Verizon	$	1.11	$	1.23	(9.8)	$	4.30	$	4.65	(7.5)
Weighted-average shares outstanding (in millions)			4,143			4,141					4,142			4,140

Footnotes:

1. Diluted Earnings per Common Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represents the only potential dilution.

• Not meaningful

Verizon Communications Inc.

Condensed Consolidated Balance Sheets

						(dollars in millions)
Unaudited			12/31/20			12/31/19	$	Change
Assets
Current assets
Cash and cash equivalents	$	22,171	$	2,594	$	19,577
Accounts receivable			25,169			26,162			(993)
Less Allowance for credit losses			1,252			-			1,252
Less Allowance for doubtful accounts			-			733			(733)
Accounts receivable, net			23,917			25,429			(1,512)
Inventories			1,796			1,422			374
Prepaid expenses and other			6,710			8,028			(1,318)
Total current assets			54,594			37,473			17,121
Property, plant and equipment			279,737			265,734			14,003
Less Accumulated depreciation			184,904			173,819			11,085
Property, plant and equipment, net			94,833			91,915			2,918
Investments in unconsolidated businesses			589			558			31
Wireless licenses			96,097			95,059			1,038
Goodwill			24,773			24,389			384
Other intangible assets, net			9,413			9,498			(85)
Operating lease right-of-use assets			22,531			22,694			(163)
Other assets			13,651			10,141			3,510
Total assets	$	316,481	$	291,727	$	24,754
Liabilities and Equity
Current liabilities
Debt maturing within one year	$	5,889	$	10,777	$	(4,888)
Accounts payable and accrued liabilities			20,658			21,806			(1,148)
Current operating lease liabilities			3,485			3,261			224
Other current liabilities			9,628			9,024			604
Total current liabilities			39,660			44,868			(5,208)
Long-term debt			123,173			100,712			22,461
Employee benefit obligations			18,657			17,952			705
Deferred income taxes			35,711			34,703			1,008
Non-current operating lease liabilities			18,000			18,393			(393)
Other liabilities			12,008			12,264			(256)
Total long-term liabilities			207,549			184,024			23,525
Equity
Common stock			429			429			-
Additional paid in capital			13,404			13,419			(15)
Retained earnings			60,464			53,147			7,317
Accumulated other comprehensive income (loss)			(71)			998			(1,069)
Common stock in treasury, at cost			(6,719)			(6,820)			101
Deferred compensation - employee stock ownership plans and other			335			222			113
Noncontrolling interests			1,430			1,440			(10)
Total equity			69,272			62,835			6,437
Total liabilities and equity	$	316,481	$	291,727	$	24,754

Verizon Communications Inc.

Consolidated - Selected Financial and Operating Statistics

	(dollars in millions, except per share amounts)
Unaudited				12/31/20			12/31/19
Total debt	$	129,062	$	111,489
Net unsecured debt	$	96,287	$	96,526
Net unsecured debt / Consolidated Adjusted EBITDA(1)				2.0x			2.0x
Common shares outstanding end of period (in millions)				4,138			4,136
Total employees ('000)				132.2			135.0
Quarterly cash dividends declared per common share	$	0.6275	$	0.6150

Footnotes:

(1) Consolidated adjusted EBITDA excludes the effects of non-operational items and special items.

Verizon Communications Inc.

Condensed Consolidated Statements of Cash Flows

						(dollars in millions)
Unaudited			12 Mos. Ended			12 Mos. Ended	$	Change
		12/31/20			12/31/19
Cash Flows from Operating Activities
Net Income	$	18,348	$	19,788	$	(1,440)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense			16,720			16,682			38
Employee retirement benefits			840			(284)			1,124
Deferred income taxes			1,553			1,232			321
Provision for expected credit losses			1,380			1,588			(208)
Equity in losses of unconsolidated businesses, net of dividends received			91			74			17
Media goodwill impairment			-			186			(186)
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses			56			(6,713)			6,769
Discretionary employee benefits contributions			-			(300)			300
Other, net			2,780			3,493			(713)
Net cash provided by operating activities			41,768			35,746			6,022
Cash Flows from Investing Activities
Capital expenditures (including capitalized software)			(18,192)			(17,939)			(253)
Acquisitions of businesses, net of cash acquired			(520)			(29)			(491)
Acquisitions of wireless licenses			(2,126)			(898)			(1,228)
Proceeds from dispositions of businesses			-			28			(28)
Other, net			(2,674)			1,257			(3,931)
Net cash used in investing activities			(23,512)			(17,581)			(5,931)
Cash Flows from Financing Activities
Proceeds from long-term borrowings			25,822			10,079			15,743
Proceeds from asset-backedlong-term borrowings			5,635			8,576			(2,941)
Repayments of long-term borrowings and finance lease obligations			(9,775)			(17,584)			7,809
Repayments of asset-backedlong-term borrowings			(7,413)			(6,302)			(1,111)
Dividends paid			(10,232)			(10,016)			(216)
Other, net			(2,712)			(2,917)			205
Net cash provided by (used in) financing activities			1,325			(18,164)			19,489
Increase in cash, cash equivalents and restricted cash			19,581			1			19,580
Cash, cash equivalents and restricted cash, beginning of period			3,917			3,916			1
Cash, cash equivalents and restricted cash, end of period	$	23,498	$	3,917	$	19,581

Verizon Communications Inc.

Consumer - Selected Financial Results

														(dollars in millions)
Unaudited			3 Mos. Ended			3 Mos. Ended	%		12 Mos. Ended		12 Mos. Ended	%
		12/31/20			12/31/19		Change			12/31/20			12/31/19		Change
Operating Revenues
Service	$	16,388	$	16,341	0.3	$	64,884	$	65,383	(0.8)
Wireless equipment			5,503			5,722	(3.8)			15,492			18,048	(14.2)
Other			2,028			2,144	(5.4)			8,157			7,625	7.0
Total Operating Revenues			23,919			24,207	(1.2)			88,533			91,056	(2.8)
Operating Expenses
Cost of services			3,824			4,123	(7.3)			15,610			15,884	(1.7)
Cost of wireless equipment			5,575			5,877	(5.1)			15,736			18,219	(13.6)
Selling, general and administrative expense			4,583			4,549	0.7			16,936			16,639	1.8
Depreciation and amortization expense			2,864			2,772	3.3			11,395			11,353	0.4
Total Operating Expenses			16,846			17,321	(2.7)			59,677			62,095	(3.9)
Operating Income	$	7,073	$	6,886	2.7	$	28,856	$	28,961	(0.4)
Operating Income Margin			29.6 %			28.4 %					32.6 %			31.8 %
Segment EBITDA	$	9,937	$	9,658	2.9	$	40,251	$	40,314	(0.2)
Segment EBITDA Margin			41.5 %			39.9 %					45.5 %			44.3 %

Footnotes:

The segment financial results and metrics above are adjusted to exclude the effects of special items, as the Company's chief operating decision maker excludes these items in assessing segment performance.

Certain intersegment transactions with corporate entities have not been eliminated.

Verizon Communications Inc.

Consumer - Selected Operating Statistics

Unaudited											12/31/20			12/31/19	%
													Change
Connections ('000):
Wireless retail postpaid connections											90,346			90,481	(0.1)
Wireless retail prepaid connections											4,027			4,063	(0.9)
Total wireless retail connections											94,373			94,544	(0.2)
Fios video connections											3,854			4,152	(7.2)
Fios internet connections											6,202			5,902	5.1
Fios digital voice residence connections											3,306			3,620	(8.7)
Fios digital connections											13,362			13,674	(2.3)
Broadband connections											6,647			6,467	2.8
Unaudited			3 Mos. Ended			3 Mos. Ended	%		12 Mos. Ended			12 Mos. Ended	%
		12/31/20			12/31/19		Change			12/31/20			12/31/19		Change
Gross Additions ('000):
Wireless retail postpaid			2,945			3,794	(22.4)			9,396			12,253	(23.3)
Net Additions Detail ('000) :
Wireless retail postpaid (1)			357			852	(58.1)			40			970	(95.9)
Wireless retail prepaid (1)			(50)			(121)	58.7			(45)			(591)	92.4
Total wireless retail (1)			307			731	(58.0)			(5)			379	*
Wireless retail postpaid phones (1)			163			588	(72.3)			95			737	(87.1)
Fios video			(72)			(51)	(41.2)			(298)			(225)	(32.4)
Fios internet			92			35	*			300			141	*
Fios digital voice residence			(78)			(52)	(50.0)			(314)			(182)	(72.5)
Fios digital			(58)			(68)	14.7			(312)			(266)	(17.3)
Broadband (1)			66			(2)	*			197			7	*
Churn Rate:
Wireless retail postpaid			0.96 %			1.09 %					0.87 %			1.05 %
Wireless retail postpaid phones			0.76 %			0.83 %					0.67 %			0.79 %
Wireless retail			1.12 %			1.30 %					1.03 %			1.28 %
Revenue Statistics (in millions):
Wireless service revenue	$	13,600	$	13,445	1.2	$	53,605	$	53,791	(0.3)
Fios revenues	$	2,756	$	2,828	(2.5)	$	11,082	$	11,175	(0.8)

Verizon Communications Inc.

Unaudited			3 Mos. Ended			3 Mos. Ended	%		12 Mos. Ended		12 Mos. Ended	%
		12/31/20			12/31/19		Change			12/31/20			12/31/19		Change
Other Wireless Statistics:
Wireless retail postpaid ARPA (2)	$	120.20	$	118.03	1.8	$	118.40	$	118.13	0.2
Wireless retail postpaid upgrade rate			6.0 %			6.3 %
Wireless retail postpaid accounts ('000) (3)											33,659			33,875	(0.6)
Wireless retail postpaid connections per account (3)											2.68			2.67	0.4
Total wireless internet postpaid base (3)											16.0 %			16.2 %

Footnotes:

1. Connection net additions include certain adjustments.
2. Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
3. Statistics presented as of end of period.

Certain intersegment transactions with corporate entities have not been eliminated.

• Not meaningful

Verizon Communications Inc.

Business - Selected Financial Results

														(dollars in millions)
Unaudited			3 Mos. Ended			3 Mos. Ended	%		12 Mos. Ended		12 Mos. Ended	%
		12/31/20			12/31/19		Change			12/31/20			12/31/19		Change
Operating Revenues
Small and Medium Business	$	2,985	$	3,072	(2.8)	$	11,132	$	11,464	(2.9)
Global Enterprise			2,595			2,740	(5.3)			10,410			10,818	(3.8)
Public Sector and Other			1,726			1,487	16.1			6,362			5,922	7.4
Wholesale			744			772	(3.6)			3,058			3,239	(5.6)
Total Operating Revenues			8,050			8,071	(0.3)			30,962			31,443	(1.5)
Operating Expenses
Cost of services			2,690			2,817	(4.5)			10,659			10,655		-
Cost of wireless equipment			1,194			1,377	(13.3)			4,064			4,733	(14.1)
Selling, general and administrative expense			2,185			2,204	(0.9)			8,380			8,188	2.3
Depreciation and amortization expense			1,031			1,007	2.4			4,086			4,105	(0.5)
Total Operating Expenses			7,100			7,405	(4.1)			27,189			27,681	(1.8)
Operating Income	$	950	$	666	42.6	$	3,773	$	3,762	0.3
Operating Income Margin			11.8 %			8.3 %					12.2 %			12.0 %
Segment EBITDA	$	1,981	$	1,673	18.4	$	7,859	$	7,867	(0.1)
Segment EBITDA Margin			24.6 %			20.7 %					25.4 %			25.0 %

Footnotes:

The segment financial results and metrics above are adjusted to exclude the effects of special items, as the Company's chief operating decision maker excludes these items in assessing segment performance.

Certain intersegment transactions with corporate entities have not been eliminated.

Verizon Communications Inc.

Business - Selected Operating Statistics

Unaudited											12/31/2020			12/31/2019	%
													Change
Connections ('000):
Wireless retail postpaid connections											26,507			25,148	5.4
Fios video connections											73			77	(5.2)
Fios internet connections											335			326	2.8
Fios digital connections											408			403	1.2
Broadband connections											482			489	(1.4)
Unaudited			3 Mos. Ended			3 Mos. Ended	%		12 Mos. Ended		12 Mos. Ended	%
		12/31/20			12/31/19		Change			12/31/20			12/31/19		Change
Gross Additions ('000):
Wireless retail postpaid			1,285			1,348	(4.7)			5,242			4,982	5.2
Net Additions Detail ('000):
Wireless retail postpaid (1)			346			411	(15.8)			1,518			1,413	7.4
Wireless retail postpaid phones (1)			116			203	(42.9)			572			700	(18.3)
Fios video			(1)			-	*			(4)			3	*
Fios internet			3			4	(25.0)			9			20	(55.0)
Fios digital			2			4	(50.0)			5			23	(78.3)
Broadband (1)			(6)			(3)	*			(24)			(12)	*
Churn Rate:
Wireless retail postpaid			1.19 %			1.25 %					1.20 %			1.23 %
Wireless retail postpaid phones			0.98 %			1.00 %					0.96 %			0.99 %
Revenue Statistics (in millions):
Wireless service revenue	$	3,073	$	2,869	7.1	$	11,805	$	11,188	5.5
Fios revenues	$	272	$	242	12.4	$	1,057	$	967	9.3
Other Operating Statistics:
Wireless retail postpaid upgrade rate			4.0 %			5.0 %
Total wireless internet postpaid base (2)											34.5 %			33.6 %

Footnotes:

1. Connection net additions include certain adjustments.
2. Statistics presented as of end of period.

Certain intersegment transactions with corporate entities have not been eliminated.

Prior year amounts revised to conform to current period presentation.

• Not meaningful

Verizon Communications Inc.

Supplemental Information - Total Wireless Operating and Financial Statistics

The following supplemental schedule contains certain financial and operating metrics which reflect an aggregation of our Consumer and Business segments' wireless results.

Unaudited											12/31/20			12/31/19		% Change
Connections ('000)
Retail postpaid											116,853			115,629	1.1
Retail prepaid											4,027			4,063	(0.9)
Total retail											120,880			119,692	1.0
Unaudited		3 Mos. Ended		3 Mos. Ended	%		12 Mos. Ended	12 Mos. Ended	%
		12/31/20			12/31/19		Change			12/31/20			12/31/19		Change
Net Additions Detail ('000) (1)
Retail postpaid phone			279			791	(64.7)			667			1,437	(53.6)
Retail postpaid			703			1,263	(44.3)			1,558			2,383	(34.6)
Retail prepaid			(50)			(121)	58.7			(45)			(591)	92.4
Total retail			653			1,142	(42.8)			1,513			1,792	(15.6)
Account Statistics
Retail postpaid accounts ('000) (2)											35,244			35,401	(0.4)
Retail postpaid connections per account (2)											3.32			3.27	1.5
Retail postpaid ARPA (3)	$	141.17	$	137.99	2.3	$	138.80		$	137.79	0.7
Churn Detail
Retail postpaid phone			0.80 %			0.86 %					0.72 %			0.82 %
Retail postpaid			1.01 %			1.13 %					0.94 %			1.09 %
Retail			1.14 %			1.29 %					1.07 %			1.27 %
Retail Postpaid Connection Statistics
Total internet postpaid base (2)											20.2 %			20.0 %
Upgrade rate			5.6 %			6.0 %
Revenue Statistics (in millions) (4)
Wireless service	$	16,673	$	16,314	2.2	$	65,410		$	64,979	0.7
Wireless equipment			6,424			6,771	(5.1)			18,420			21,563	(14.6)
Wireless other			2,029			2,150	(5.6)			8,243			7,572	8.9
Total Wireless	$	25,126	$	25,235	(0.4)	$	92,073		$	94,114	(2.2)

Footnotes:

1. Connection net additions include certain adjustments.
2. Statistics presented as of end of period.
3. Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
4. Intersegment transactions between Consumer or Business segment with corporate entities have not been eliminated. Prior year amounts revised to conform to current period presentation.