1、 As of September 30,2023 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 Operati

2、ng Statistics 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)202120222023Unaudited

3、Full Year1Q2Q3Q4QFull Year1Q2Q3QYear to dateOperating RevenuesService revenues and other$110,449$27,218$27,115$27,666$27,626$109,625$27,152$27,319$27,523$81,994 Wireless equipment revenues 23,164 6,336 6,674 6,575 7,625 27,210 5,760 5,277 5,813 16,850 Total Operating Revenues 133,613 33,554 33,789 3

4、4,241 35,251 136,835 32,912 32,596 33,336 98,844 Operating ExpensesCost of services 31,234 7,227 6,932 7,293 7,185 28,637 7,078 6,986 7,084 21,148 Cost of wireless equipment 25,067 7,123 7,488 7,308 8,577 30,496 6,426 5,778 6,353 18,557 Selling,general and administrative expense 28,658 7,172 7,496 7

5、,422 8,046 30,136 7,506 8,253 7,995 23,754 Depreciation and amortization expense 16,206 4,236 4,321 4,324 4,218 17,099 4,318 4,359 4,431 13,108 Total Operating Expenses 101,165 25,758 26,237 26,347 28,026 106,368 25,328 25,376 25,863 76,567 Operating Income 32,448 7,796 7,552 7,894 7,225 30,467 7,58

6、4 7,220 7,473 22,277 Equity in earnings(losses)of unconsolidated businesses 145 (3)41 2 4 44 9 (33)(18)(42)Other income(expense),net 312 (924)49 (439)2,687 1,373 114 210 170 494 Interest expense(3,485)(786)(785)(937)(1,105)(3,613)(1,207)(1,285)(1,433)(3,925)Income Before Provision For Income Taxes 2

7、9,420 6,083 6,857 6,520 8,811 28,271 6,500 6,112 6,192 18,804 Provision for income taxes(6,802)(1,372)(1,542)(1,496)(2,113)(6,523)(1,482)(1,346)(1,308)(4,136)Net Income$22,618$4,711$5,315$5,024$6,698$21,748$5,018$4,766$4,884$14,668 Net income attributable to noncontrolling interests$553$131$116$124$

8、121$492$109$118$122$349 Net income attributable to Verizon 22,065 4,580 5,199 4,900 6,577 21,256 4,909 4,648 4,762 14,319 Net Income$22,618$4,711$5,315$5,024$6,698$21,748$5,018$4,766$4,884$14,668 Basic Earnings Per Common ShareNet income attributable to Verizon$5.32$1.09$1.24$1.17$1.56$5.06$1.17$1.1

9、0$1.13$3.40 Weighted-average shares outstanding(in millions)4,148 4,201 4,201 4,202 4,204 4,202 4,207 4,208 4,213 4,209 Diluted Earnings Per Common Share(1)Net income attributable to Verizon$5.32$1.09$1.24$1.17$1.56$5.06$1.17$1.10$1.13$3.40 Weighted-average shares outstanding(in millions)4,150 4,202

10、 4,202 4,204 4,207 4,204 4,211 4,213 4,216 4,214 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.EPS may not add due to rounding.Verizon Communications Inc.3Condensed

11、Consolidated Balance Sheets (dollars in millions)Unaudited12/31/213/31/226/30/229/30/2212/31/223/31/236/30/239/30/23AssetsCurrent assetsCash and cash equivalents$2,921$1,661$1,857$2,082$2,605$2,234$4,803$4,210 Accounts receivable 24,742 24,474 24,740 24,475 25,332 23,748 24,108 24,559 Less Allowance

12、 for credit losses 896 859 831 805 826 892 922 957 Accounts receivable,net 23,846 23,615 23,909 23,670 24,506 22,856 23,186 23,602 Inventories 3,055 3,659 3,646 3,133 2,388 2,381 1,896 2,240 Prepaid expenses and other 6,906 6,645 8,087 10,861 8,358 8,251 7,503 8,067 Total current assets 36,728 35,58

13、0 37,499 39,746 37,857 35,722 37,388 38,119 Property,plant and equipment 289,897 292,568 296,700 300,870 307,689 310,519 313,424 316,767 Less Accumulated depreciation 190,201 192,725 195,390 197,866 200,255 203,532 206,154 209,277 Property,plant and equipment,net 99,696 99,843 101,310 103,004 107,43

14、4 106,987 107,270 107,490 Investments in unconsolidated businesses 1,061 1,074 1,113 1,083 1,071 1,052 1,015 929 Wireless licenses 147,619 148,083 148,724 149,292 149,796 150,485 151,337 155,465 Goodwill 28,603 28,629 28,638 28,548 28,671 28,674 28,647 28,642 Other intangible assets,net 11,677 11,43

15、2 11,286 11,196 11,461 11,246 11,097 10,952 Operating lease right-of-use assets 27,883 27,494 27,098 26,588 26,130 25,947 25,345 25,086 Other assets 13,329 13,581 14,479 15,633 17,260 17,603 17,856 18,147 Total assets$366,596$365,716$370,147$375,090$379,680$377,716$379,955$384,830 Liabilities and Eq

16、uityCurrent liabilitiesDebt maturing within one year$7,443$13,421$12,873$14,995$9,963$12,081$14,827$12,950 Accounts payable and accrued liabilities 24,833 18,169 20,956 22,235 23,977 19,273 20,067 26,140 Current operating lease liabilities 3,859 3,847 3,912 3,961 4,134 4,177 4,211 3,906 Other curren

17、t liabilities 11,025 11,148 11,483 11,950 12,097 12,237 12,299 12,681 Total current liabilities 47,160 46,585 49,224 53,141 50,171 47,768 51,404 55,677 Long-term debt 143,425 139,961 136,184 132,912 140,676 140,772 137,871 134,441 Employee benefit obligations 15,410 15,104 15,125 15,912 12,974 12,75

18、0 12,357 12,226 Deferred income taxes 40,685 41,341 42,154 42,094 43,441 43,667 44,055 44,434 Non-current operating lease liabilities 23,203 22,932 22,597 22,175 21,558 21,303 20,745 20,773 Other liabilities 13,513 14,618 17,506 20,073 18,397 17,237 17,021 18,191 Total long-term liabilities 236,236

19、233,956 233,566 233,166 237,046 235,729 232,049 230,065 EquityCommon stock 429 429 429 429 429 429 429 429 Additional paid in capital 13,861 13,874 13,872 13,467 13,420 13,523 13,523 13,524 Retained earnings 71,993 73,891 76,401 78,545 82,380 84,543 86,448 88,416 Accumulated other comprehensive loss

20、(927)(906)(1,320)(1,700)(1,865)(2,177)(1,921)(1,428)Common stock in treasury,at cost(4,104)(4,023)(4,020)(4,015)(4,013)(3,832)(3,830)(3,828)Deferred compensation employee stock ownership plans and other 538 497 654 742 793 397 544 628 Noncontrolling interests 1,410 1,413 1,341 1,315 1,319 1,336 1,30

21、9 1,347 Total equity 83,200 85,175 87,357 88,783 92,463 94,219 96,502 99,088 Total liabilities and equity$366,596$365,716$370,147$375,090$379,680$377,716$379,955$384,830 Verizon Communications Inc.4Consolidated-Selected Financial and Operating Statistics (dollars in millions)Unaudited12/31/213/31/22

22、6/30/229/30/2212/31/223/31/236/30/239/30/23Total debt$150,868$153,382$149,057$147,907$150,639$152,853$152,698$147,391 Unsecured debt$136,666$137,280$132,485$131,397$130,631$132,018$131,356$126,440 Net unsecured debt(1)$133,745$135,619$130,628$129,315$128,026$129,784$126,553$122,230 Unsecured debt/Co

23、nsolidated Net Income(LTM)6.6x 6.0 x 6.0 x 6.1x 5.9x Net unsecured debt/Consolidated Adjusted EBITDA(1)(2)2.7x 2.7x 2.7x 2.6x 2.6x Common shares outstanding end of period(in millions)4,198 4,200 4,200 4,200 4,200 4,204 4,204 4,204 Total employees(000)118.4 118.5 119.4 119.5 117.1 115.5 114.2 110.5 Q

24、uarterly cash dividends declared per common share$0.6400$0.6400$0.6400$0.6525$0.6525$0.6525$0.6525$0.6650 Footnotes:(1)Non-GAAP financial measure.(2)Consolidated Adjusted EBITDA excludes the effects of non-operational items and special items.Verizon Communications Inc.5Condensed Consolidated Stateme

25、nts of Cash Flows (dollars in millions)12 Mos.Ended3 Mos.Ended6 Mos.Ended9 Mos.Ended12 Mos.Ended3 Mos.Ended6 Mos.Ended9 Mos.EndedUnaudited12/31/213/31/226/30/229/30/2212/31/223/31/236/30/239/30/23Cash Flows from Operating ActivitiesNet Income$22,618$4,711$10,026$15,050$21,748$5,018$9,784$14,668 Adju

26、stments to reconcile net income to net cash provided by operating activities:Depreciation and amortization expense 16,206 4,236 8,557 12,881 17,099 4,318 8,677 13,108 Employee retirement benefits(3,391)(210)(121)479 (2,046)54 108 161 Deferred income taxes 4,264 627 1,514 1,595 2,973 331 633 822 Prov

27、ision for expected credit losses 789 328 665 1,048 1,611 530 1,061 1,596 Equity in losses(earnings)of unconsolidated businesses,net of dividends received 36 7 (18)(13)(10)10 49 69 Changes in current assets and liabilities,net of effects from acquisition/disposition of businesses(890)(3,492)(1,959)(4

28、58)(456)(774)(620)972 Other,net(93)614 (999)(2,383)(3,778)(1,198)(1,672)(2,598)Net cash provided by operating activities 39,539 6,821 17,665 28,199 37,141 8,289 18,020 28,798 Cash Flows from Investing ActivitiesCapital expenditures(including capitalized software)(20,286)(5,821)(10,491)(15,811)(23,08

29、7)(5,958)(10,070)(14,164)Cash received(paid)related to acquisitions of businesses,net of cash acquired(4,065)247 248 248 Acquisitions of wireless licenses(47,596)(1,838)(2,275)(2,890)(3,653)(598)(1,085)(1,859)Collateral receipts(payments)related to derivative contracts,net(21)(277)(2,075)(4,857)(2,2

30、65)367 824 162 Proceeds from disposition of business 4,122 33 33 Other,net 693 (59)(62)(43)62 79 131 253 Net cash used in investing activities(67,153)(7,995)(14,656)(23,320)(28,662)(6,110)(10,200)(15,608)Cash Flows from Financing ActivitiesProceeds from long-term borrowings 33,034 3,604 3,617 4,605

31、7,074 504 1,503 1,999 Proceeds from asset-backed long-term borrowings 8,383 3,545 5,053 5,939 10,732 1,754 3,705 4,656 Net proceeds from(repayments of)short-term commercial paper 3,791 2,560 4,514 106 342 (167)333 Repayments of long-term borrowings and finance lease obligations(14,063)(6,556)(7,405)

32、(8,001)(8,616)(1,325)(2,600)(5,568)Repayments of asset-backed long-term borrowings(4,800)(1,650)(2,695)(3,647)(4,948)(931)(2,383)(3,729)Dividends paid(10,445)(2,654)(5,378)(8,066)(10,805)(2,744)(5,487)(8,231)Other,net(3,832)165 411 (797)(2,072)17 (157)(1,101)Net cash provided by(used in)financing ac

33、tivities 8,277 245 (3,837)(5,453)(8,529)(2,383)(5,586)(11,641)Increase(decrease)in cash,cash equivalents and restricted cash(19,337)(929)(828)(574)(50)(204)2,234 1,549 Cash,cash equivalents and restricted cash,beginning of period 23,498 4,161 4,161 4,161 4,161 4,111 4,111 4,111 Cash,cash equivalents

34、 and restricted cash,end of period$4,161$3,232$3,333$3,587$4,111$3,907$6,345$5,660 Footnotes:Certain amounts have been reclassified to conform to the current period presentation.Verizon Communications Inc.6Consumer-Selected Financial Results (dollars in millions)20222023Unaudited1Q2Q3Q4Q1Q2Q3QOperat

35、ing RevenuesService$18,126$18,149$18,421$18,443$18,456$18,641$18,850 Wireless equipment 5,374 5,708 5,558 6,528 4,878 4,430 4,902 Other 1,792 1,747 1,861 1,799 1,523 1,487 1,505 Total Operating Revenues 25,292 25,604 25,840 26,770 24,857 24,558 25,257 Operating ExpensesCost of services 4,446 4,284 4

36、,566 4,450 4,432 4,367 4,419 Cost of wireless equipment 5,813 6,221 5,963 7,137 5,191 4,626 5,133 Selling,general and administrative expense 4,552 4,738 4,730 5,044 4,921 4,988 4,886 Depreciation and amortization expense 3,162 3,211 3,232 3,111 3,214 3,247 3,272 Total Operating Expenses 17,973 18,45

37、4 18,491 19,742 17,758 17,228 17,710 Operating Income$7,319$7,150$7,349$7,028$7,099$7,330$7,547 Operating Income Margin 28.9%27.9%28.4%26.3%28.6%29.8%29.9%Segment EBITDA(1)$10,481$10,361$10,581$10,139$10,313$10,577$10,819 Segment EBITDA Margin(1)41.4%40.5%40.9%37.9%41.5%43.1%42.8%Footnotes:(1)Non-GA

38、AP financial 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 interseg

39、ment transactions with corporate entities have not been eliminated.Verizon Communications Inc.7Consumer-Selected Operating Statistics 20222023Unaudited1Q2Q3Q4Q1Q2Q3QConnections(000):Wireless retail postpaid 91,414 91,475 91,478 91,856 92,192 92,474 92,704 Wireless retail prepaid 23,772 23,138 23,076

40、 22,664 22,331 21,646 21,420 Total wireless retail 115,186 114,613 114,554 114,520 114,523 114,120 114,124 Wireless retail postpaid phones 75,422 75,197 74,997 74,857 74,611 74,465 74,407 Fios video 3,495 3,409 3,314 3,234 3,160 3,091 3,013 Fios internet 6,596 6,626 6,684 6,740 6,803 6,854 6,923 Fix

41、ed wireless access(FWA)broadband 216 384 621 884 1,140 1,390 1,641 Wireline broadband 6,925 6,938 6,976 7,016 7,062 7,098 7,151 Total broadband 7,141 7,322 7,597 7,900 8,202 8,488 8,792 Gross Additions(000):Wireless retail postpaid 2,481 2,622 3,045 3,889 3,210 2,928 3,152 Net Additions Detail(000):

42、Wireless retail postpaid(126)84 28 979 321 304 251 Wireless retail prepaid(80)(229)39 (175)(351)(304)(207)Total wireless retail(206)(145)67 804 (30)44 Wireless retail postpaid phones(292)(215)(189)41 (263)(136)(51)Fios video (78)(86)(95)(80)(74)(69)(78)Fios internet 55 30 58 56 63 51 69 FWA broadban

43、d 112 168 234 262 256 251 251 Wireline broadband 37 13 38 40 46 36 53 Total broadband 149 181 272 302 302 287 304 Churn Rate:Wireless retail postpaid 0.95%0.93%1.10%1.06%1.05%0.95%1.04%Wireless retail postpaid phones 0.77%0.75%0.88%0.86%0.84%0.76%0.85%Wireless retail prepaid 3.69%3.90%3.90%4.90%4.31

44、%4.24%4.39%Wireless retail 1.51%1.53%1.66%1.83%1.69%1.58%1.68%Revenue Statistics(in millions):Wireless service revenue$15,217$15,236$15,517$15,539$15,599$15,762$15,963 Fios revenues$2,911$2,895$2,902$2,914$2,889$2,886$2,897 Other Wireless Statistics:Wireless retail postpaid ARPA(1)$123.96$124.16$127

45、.76$128.02$130.06$131.83$133.47 Wireless retail postpaid upgrade rate 4.8%5.6%5.1%5.6%4.0%3.5%3.6%Wireless retail postpaid accounts(000)(2)33,514 33,386 33,251 33,183 33,034 32,976 32,938 Wireless retail postpaid connections per account(2)2.73 2.74 2.75 2.77 2.79 2.80 2.81 Wireless retail prepaid AR

46、PU(3)$30.89$31.26$31.18$31.53$30.71$31.42$31.87 Footnotes:(1)Wireless retail postpaid ARPA-average service 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.Wh

47、ere 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,and adjustments in connection with mergers,acquisitions and divestitures.Certain intersegment tr

48、ansactions with corporate entities have not been eliminated.Verizon Communications Inc.8Business-Selected Financial Results (dollars in millions)20222023Unaudited1Q2Q3Q4Q1Q2Q3QOperating RevenuesEnterprise and Public Sector$3,978$3,867$3,940$3,908$3,787$3,784$3,787 Business Markets and Other 3,076 3,

49、130 3,236 3,330 3,104 3,109 3,184 Wholesale 655 629 661 662 603 590 556 Total Operating Revenues 7,709 7,626 7,837 7,900 7,494 7,483 7,527 Operating ExpensesCost of services 2,606 2,559 2,653 2,665 2,582 2,543 2,536 Cost of wireless equipment 1,310 1,268 1,344 1,440 1,234 1,152 1,220 Selling,general

50、 and administrative expense 2,059 2,050 2,063 2,112 2,033 2,152 2,105 Depreciation and amortization expense 1,061 1,074 1,079 1,098 1,094 1,103 1,127 Total Operating Expenses 7,036 6,951 7,139 7,315 6,943 6,950 6,988 Operating Income$673$675$698$585$551$533$539 Operating Income Margin 8.7%8.9%8.9%7.

51、4%7.4%7.1%7.2%Segment EBITDA(1)$1,734$1,749$1,777$1,683$1,645$1,636$1,666 Segment EBITDA Margin(1)22.5%22.9%22.7%21.3%22.0%21.9%22.1%Footnotes:(1)Non-GAAP financial measure.Our Business segments wireless and wireline products and services are organized by the primary customer groups targeted by thes

52、e offerings.During the first quarter of 2023,Verizon reorganized the customer groups within its Business segment.Previously,this segment was comprised of four customer groups:Small and Medium Business,Global Enterprise,Public Sector and Other,and Wholesale.Following the reorganization,there are now

53、three customer groups:Enterprise and Public Sector,Business Markets and Other,and Wholesale.Enterprise and Public Sector combines the customers previously included in Global Enterprise and Public Sector and Other(excluding BlueJeans and Connect customers)as well as the commercial wireline customers

54、previously included in Small and Medium Business.Business Markets and Other combines the customers previously included in Small and Medium Business(excluding commercial wireline customers),the BlueJeans customers previously included in Global Enterprise and Public Sector and Other,and the Connect cu

55、stomers previously included in Public Sector and Other.The Wholesale customer group remained unchanged.Prior period operating revenue results within the Business segment have been recast for these reorganized customer groups.There was no change to the composition of our reportable segments and total

56、 segment results,nor the determination of segment profit.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

57、segment performance.Certain intersegment transactions with corporate entities have not been eliminated.Verizon Communications Inc.9Business-Selected Operating Statistics 20222023Unaudited1Q2Q3Q4Q1Q2Q3QConnections(000):Wireless retail postpaid 27,809 28,208 28,584 28,733 28,820 29,105 29,455 Wireless

58、 retail postpaid phones 17,353 17,586 17,795 17,782 17,703 17,856 18,019 Fios video 71 70 69 67 65 64 63 Fios internet 361 367 370 373 377 380 383 FWA broadband 217 316 442 568 726 870 1,038 Wireline broadband 475 474 471 468 466 464 461 Total broadband 692 790 913 1,036 1,192 1,334 1,499 Gross Addi

59、tions(000):Wireless retail postpaid 1,502 1,582 1,566 1,644 1,607 1,590 1,618 Net Additions Detail(000):Wireless retail postpaid 395 430 360 455 312 308 330 Wireless retail postpaid phones 256 227 197 176 136 144 151 Fios video (1)(1)(2)(2)(1)(1)Fios internet 5 6 3 3 4 3 3 FWA broadband 82 88 108 11

60、7 137 133 133 Wireline broadband(2)(1)(3)(3)(2)(2)(3)Total broadband 80 87 105 114 135 131 130 Churn Rate:Wireless retail postpaid 1.34%1.37%1.42%1.38%1.50%1.48%1.47%Wireless retail postpaid phones 1.06%1.07%1.10%1.06%1.16%1.10%1.14%Revenue Statistics(in millions):Wireless service revenue$3,125$3,18

61、2$3,273$3,265$3,290$3,351$3,367 Fios revenues$295$298$304$304$307$308$308 Other Operating Statistics:Wireless retail postpaid upgrade rate 3.4%3.1%3.3%3.6%2.8%2.7%2.9%Footnotes:Where applicable,the operating results reflect certain adjustments,including those related to the 3G network shutdowns,migr

62、ation 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.10Supplemental Information-Total W

63、ireless 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.20222023Unaudited1Q2Q3Q4Q1Q2Q3QConnections(000)Retail postpaid 119,223 119,683 120,062 1

64、20,589 121,012 121,579 122,159 Retail prepaid 23,772 23,138 23,076 22,664 22,331 21,646 21,420 Total retail 142,995 142,821 143,138 143,253 143,343 143,225 143,579 Retail postpaid phones 92,775 92,783 92,792 92,639 92,314 92,321 92,426 Net Additions Detail(000)Retail postpaid phones(36)12 8 217 (127

65、)8 100 Retail postpaid 269 514 388 1,434 633 612 581 Retail prepaid(80)(229)39 (175)(351)(304)(207)Total retail 189 285 427 1,259 282 308 374 Account StatisticsRetail postpaid accounts(000)(1)35,224 35,132 35,034 35,002 34,877 34,855 34,855 Retail postpaid connections per account(1)3.38 3.41 3.43 3.

66、45 3.47 3.49 3.50 Retail postpaid ARPA(2)$144.87$145.50$149.82$149.95$152.27$154.51$156.13 Retail prepaid ARPU(3)$30.89$31.26$31.18$31.53$30.71$31.42$31.87 Churn DetailRetail postpaid phone 0.83%0.81%0.92%0.89%0.90%0.83%0.90%Retail postpaid 1.04%1.03%1.17%1.14%1.15%1.07%1.15%Retail prepaid 3.69%3.90

67、%3.90%4.90%4.31%4.24%4.39%Retail 1.48%1.50%1.62%1.74%1.65%1.56%1.63%Retail Postpaid Connection Statistics Upgrade rate 4.5%5.0%4.7%5.1%3.7%3.3%3.4%Revenue Statistics(in millions)(4)Wireless service$18,342$18,418$18,790$18,804$18,889$19,113$19,330 Wireless equipment 6,336 6,674 6,575 7,625 5,760 5,27

68、7 5,813 Wireless other 1,818 1,800 1,922 1,851 1,515 1,486 1,507 Total Wireless$26,496$26,892$27,287$28,280$26,164$25,876$26,650 Footnotes:(1)Statistics presented as of end of period.(2)Wireless retail postpaid ARPA-average service revenue per account from retail postpaid accounts.(3)Wireless retail

69、 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 applicable,the operating results reflect certain adjustments,including those related to the 3G netwo

70、rk 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-GAAP MeasuresVerizons Financial and Operating Information includes financial information prepa

71、red 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 the understanding of Verizons GAAP financial information and it should be considered by th

72、e 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 that more emphasis should be placed on the non-GAAP measure.We believe that providing these n

73、on-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-GAAP financial information presented may be determined or calculated differently by other c

74、ompanies 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),Segment EBITDA and Segment EBITDA Margin are non-GAAP financial measures that we believe are use

75、ful 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 relation to its competitors.Consolidated EBITDA is calculated by adding back interest,taxes and d

76、epreciation 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 dividing Segment EBITDA by total segment operating revenues.Consolidated Adjusted EBITDA,Con

77、solidated Adjusted EBITDA Margin and Consolidated Adjusted EBITDA ForecastConsolidated Adjusted EBITDA,Consolidated Adjusted EBITDA Margin and Consolidated Adjusted EBITDA Forecast are non-GAAP financial measures that we believe provide relevant and useful information to management,investors and oth

78、er users of our financial information in evaluating the effectiveness of our operations and underlying business trends in a manner that is consistent with managements evaluation of business performance.We believe that Consolidated Adjusted EBITDA,Consolidated Adjusted EBITDA Margin and Consolidated

79、Adjusted EBITDA 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 and special items enables com

80、parability 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 losses and earnings of unconsolidated businesses and other income and expense,net,and the following s

81、pecial items:severance charges,asset rationalization,business transformation costs and non-strategic business shutdown.Severance charges recorded during 2023 and 2022 relate to involuntary separations under our existing plans.Severance charges recorded during 2021 relate to voluntary separations und

82、er our existing plans.Asset rationalization relates to certain real estate and non-strategic assets that we have made a decision to cease use of as part of our transformation initiatives in 2023.Business transformation costs recorded during 2023 primarily relate to costs incurred in connection with

83、strategic partnership initiatives in our managed network support services for certain Verizon Business customers.Non-strategic business shutdown relates to the shutdown of our BlueJeans business offering in 2023.Consolidated Adjusted EBITDA Margin is calculated by dividing Consolidated Adjusted EBIT

84、DA by consolidated operating revenues.We have not provided a reconciliation for our Consolidated Adjusted EBITDA Forecast because we cannot,without unreasonable effort,predict the special items that could arise during 2023.Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Rat

85、ioNet Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio are non-GAAP financial measures that we believe are useful to management,investors and other users of our financial information in evaluating Verizons ability to service its unsecured debt from continuing operations.Ne

86、t Unsecured Debt is calculated by subtracting secured debt and cash and cash equivalents,from the sum of debt maturing within one year 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

87、 of Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio,Consolidated Adjusted EBITDA is calculated for the last twelve months.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 usefu

88、l to management,investors and other users of our financial information in evaluating our operating results and understanding our operating 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 f

89、inancial results from period to period.Adjusted EPS is calculated by excluding from the calculation of reported EPS the effect of the following special items:amortization of acquisition-related intangible assets,business transformation costs,non-strategic business shutdown and severance,pension and

90、benefits charges.We exclude the amortization of acquisition-related intangible assets because the amount and timing of such charges are significantly impacted by the timing,size,number and nature of the acquisitions we consummate.While we have a history of significant acquisition activity,we do not

91、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 acquisition and can vary significantly from acquisition to acquisition.Exclusion of this amortization expense facilitates more co

92、nsistent comparisons of operating results over time between our newly acquired and long-held businesses,and with both acquisitive and non-acquisitive peer companies.We believe that it is important for investors to understand that our non-GAAP financial measure adjusts for the intangible asset amorti

93、zation but does not adjust the revenue that is generated in part from the use of such intangible assets.We have not provided a reconciliation for our Adjusted EPS Forecast because we cannot,without unreasonable effort,predict the special items that could arise during 2023.Verizon Communications Inc.

94、Definitions-Non-GAAP Measures 12Adjusted Effective Income Tax Rate Attributable to Verizon Forecast(Adjusted ETR Forecast)Adjusted ETR Forecast is a non-GAAP financial measure that we believe is useful to management,investors and other users of our financial information in assessing our effective in

95、come 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 net income attributable to Verizon before tax after adjusting for the effect of special items.We have not provided a reconciliati

96、on for our Adjusted ETR Forecast because we cannot,without unreasonable effort,predict the special items that could arise during 2023.Free Cash Flow,Free Cash Flow Dividend Payout Ratio and Free Cash Flow ForecastFree cash flow and free cash flow forecast are non-GAAP financial measures that reflect

97、 an additional way of viewing our liquidity that,when viewed with our GAAP results,provide a more complete understanding of factors and trends affecting our cash flows.We believe they are more conservative measures of cash flow since capital expenditures are necessary for ongoing operations.Free cas

98、h flow and free cash flow forecast have limitations due to the fact that they do not represent the residual cash flow available for discretionary expenditures.For example,free cash flow and free cash flow forecast do not incorporate payments made or expected to be made on finance lease obligations o

99、r cash payments for acquisitions of businesses or wireless licenses.Therefore,we believe it is important to view free cash flow and free cash flow forecast as complements to our entire consolidated statements of cash flows.Free cash flow is calculated by subtracting capital expenditures(including ca

100、pitalized software)from net cash provided by operating activities.Free cash flow forecast is calculated by subtracting capital expenditures forecast(including capitalized software)from forecasted net cash provided by operating activities.Free cash flow dividend payout ratio is a non-GAAP financial m

101、easure that we believe is useful to management,investors and other users of our financial information in evaluating Verizons cash available for return to shareholders.We believe this is a more conservative measure of our ability to fund our dividend payments to shareholders.Free cash flow dividend p

102、ayout ratio has limitations consistent with free cash flow as discussed above.Free cash flow dividend payout ratio is calculated by dividing dividends paid to shareholders by free cash flow.Consolidated Operating Expenses Excluding Depreciation and Amortization and Special ItemsConsolidated operatin

103、g 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 our financial information in evaluating our operating expenses and underlying operating trends in a manner that is consistent with

104、 managements evaluation of operating performance.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 competitors by eliminating impacts caused by differ

105、ences 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 amortization and special items is calculated by excludin

106、g from consolidated operating expenses the effects of depreciation and amortization expense and the following special items:business transformation costs and non-strategic business shutdown.Verizon Communications Inc.Definitions-Non-GAAP Measures 13Consolidated EBITDA,Consolidated Adjusted EBITDA an

107、d Consolidated Adjusted EBITDA Margin(dollars in millions)202120222023Unaudited4Q1Q2Q3Q4Q1Q2Q3QConsolidated Net Income$4,737$4,711$5,315$5,024$6,698$5,018$4,766$4,884 Add:Provision for income taxes 1,407 1,372 1,542 1,496 2,113 1,482 1,346 1,308 Interest expense 739 786 785 937 1,105 1,207 1,285 1,4

108、33 Depreciation and amortization expense(1)4,051 4,236 4,321 4,324 4,218 4,318 4,359 4,431 Consolidated EBITDA$10,934$11,105$11,963$11,781$14,134$12,025$11,756$12,056 Add/(subtract):Other(income)expense,net(2)$860$924$(49)$439$(2,687)$(114)$(210)$(170)Equity in losses(earnings)of unconsolidated busi

109、nesses(3)(135)3 (41)(2)(4)(9)33 18 Severance charges 106 304 237 Asset rationalization 155 Business transformation costs 176 Non-strategic business shutdown 158 Consolidated Adjusted EBITDA$11,765$12,032$11,873$12,218$11,747$11,902$11,971$12,238 Consolidated Operating Revenues$34,241$35,251$32,912$3

110、2,596$33,336 Consolidated Net Income Margin 14.7%19.0%15.2%14.6%14.7%Consolidated Adjusted EBITDA Margin 35.7%33.3%36.2%36.7%36.7%Consolidated Adjusted EBITDA-Quarter over quarter change$267 Consolidated Adjusted EBITDA-Year over year change%0.2%Consolidated Adjusted EBITDA Margin-Year over year cha

111、nge100 bps(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 and Early debt redemption costs,where applicable.(3)Includes Net gain from disposition of asset

112、s,where applicable.Verizon Communications Inc.Non-GAAP Reconciliations-Consolidated14 Consolidated EBITDA and Consolidated Adjusted EBITDA(LTM)(dollars in millions)Twelve Months EndedTwelve Months EndedTwelve Months EndedTwelve Months EndedTwelve Months EndedUnaudited9/30/2212/31/223/31/236/30/239/3

113、0/23Consolidated Net Income$19,787$21,748$22,055$21,506$21,366 Add:Provision for income taxes 5,817 6,523 6,633 6,437 6,249 Interest expense 3,247 3,613 4,034 4,534 5,030 Depreciation and amortization expense(1)16,932 17,099 17,181 17,219 17,326 Consolidated EBITDA$45,783$48,983$49,903$49,696$49,971

114、 Add/(subtract):Other(income)expense,net(2)$2,174$(1,373)$(2,411)$(2,572)$(3,181)Equity in losses(earnings)of unconsolidated businesses(3)(175)(44)(56)18 38 Severance charges 106 304 304 541 541 Asset rationalization 155 155 Business transformation costs 176 Non-strategic business shutdown 158 Conso

115、lidated Adjusted EBITDA$47,888$47,870$47,740$47,838$47,858(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 and Early debt redemption costs,where applicabl

116、e.(3)Includes Net gain from disposition of assets,where applicable.Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio(dollars in millions)Unaudited12/31/213/31/226/30/229/30/2212/31/223/31/236/30/239/30/23Debt maturing within one year$7,443$13,421$12,873$14,995$9,963$12,

117、081$14,827$12,950 Long-term debt 143,425 139,961 136,184 132,912 140,676 140,772 137,871 134,441 Total Debt 150,868 153,382 149,057 147,907 150,639 152,853 152,698 147,391 Less Secured debt 14,202 16,102 16,572 16,510 20,008 20,835 21,342 20,951 Unsecured Debt 136,666 137,280 132,485 131,397 130,631

118、 132,018 131,356 126,440 Less Cash and cash equivalents 2,921 1,661 1,857 2,082 2,605 2,234 4,803 4,210 Net Unsecured Debt$133,745$135,619$130,628$129,315$128,026$129,784$126,553$122,230 Consolidated Net Income(LTM)$19,787$21,748$22,055$21,506$21,366 Unsecured Debt to Consolidated Net Income Ratio 6

119、.6x 6.0 x 6.0 x 6.1x 5.9x Consolidated Adjusted EBITDA(LTM)$47,888$47,870$47,740$47,838$47,858 Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio 2.7x 2.7x 2.7x 2.6x 2.6x Net Unsecured Debt-Quarter over quarter change$(4,323)Net Unsecured Debt-Year over year change$(7,085)Net Unsecured Debt to

120、 Consolidated Adjusted EBITDA Ratio-Quarter over quarter change xNet Unsecured Debt to Consolidated Adjusted EBITDA Ratio-Year over year change(0.1)xVerizon Communications Inc.Non-GAAP Reconciliations-Consolidated15Adjusted Earnings per Common Share(Adjusted EPS)(dollars in millions except per share

121、 amounts)3 Mos.Ended3 Mos.EndedUnaudited9/30/229/30/23Pre-taxTaxAfter-TaxPre-taxTaxAfter-TaxEPS$1.17$1.13 Amortization of acquisition-related intangible assets$236$(58)$178 0.04$224$(56)$168 0.04 Business transformation costs 176 (45)131 0.03 Non-strategic business shutdown 179 (83)96 0.02 Severance

122、,pension and benefits charges 645 (162)483 0.11$881$(220)$661$0.16$579$(184)$395$0.09 Adjusted EPS$1.32$1.22 Year over year change%(7.6)%Footnote:Adjusted EPS may not add due to rounding.Free Cash Flow and Free Cash Flow Dividend Payout Ratio(dollars in millions)3 Mos.Ended3 Mos.Ended9 Mos.Ended9 Mo

123、s.EndedUnaudited9/30/229/30/239/30/229/30/23Net Cash Provided by Operating Activities$10,534$10,778$28,199$28,798 Capital expenditures(including capitalized software)(5,320)(4,094)(15,811)(14,164)Free Cash Flow$5,214$6,684$12,388$14,634 Dividends Paid$8,066$8,231 Net Cash Provided by Operating Activ

124、ities Dividend Payout Ratio 28.6%28.6%Free Cash Flow Dividend Payout Ratio 65.1%56.2%Free Cash Flow for 9 Mos.Ended 9/30/23-Year over year change$2,246 Free Cash Flow for 9 Mos.Ended 9/30/23-Year over year change%18.1%Free Cash Flow Dividend Payout Ratio for 9 Mos.Ended 9/30/23-Year over year change

125、(8.9)%Free Cash Flow Forecast Full Year 2023(dollars in millions)OriginalRevisedUnauditedForecastForecastNet Cash Provided by Operating Activities Forecast$35,250-36,250$36,250-37,250Capital expenditures forecast(including capitalized software)(18,250-19,250)(18,250-19,250)Free Cash Flow Forecast$17

126、,000$18,000 Free Cash Flow Forecast Full Year 2023 change$1,000 Consolidated Operating Expenses Excluding Depreciation and Amortization and Special Items(dollars in millions)3 Mos.Ended3 Mos.EndedUnaudited9/30/229/30/23Consolidated Operating Expenses$26,347$25,863 Depreciation and amortization expen

127、se(1)4,324 4,431 Business transformation costs 176 Non-strategic business shutdown 158 Consolidated Operating Expenses Excluding Depreciation and Amortization and Special Items$22,023$21,098 Year over year change%(4.2)%(1)Includes Amortization of acquisition-related intangible assets and a portion o

128、f the Non-strategic business shutdown,where applicable.Verizon Communications Inc.Non-GAAP Reconciliations-Consolidated16Non-GAAP Reconciliations-SegmentsSegment EBITDA and Segment EBITDA MarginConsumer(dollars in millions)3 Mos.3 Mos.3 Mos.3 Mos.3 Mos.3 Mos.3 Mos.EndedEndedEndedEndedEndedEndedEnded

129、Unaudited3/31/226/30/229/30/2212/31/223/31/236/30/239/30/23Operating Income$7,319$7,150$7,349$7,028$7,099$7,330$7,547 Add Depreciation and amortization expense 3,162 3,211 3,232 3,111 3,214 3,247 3,272 Segment EBITDA$10,481$10,361$10,581$10,139$10,313$10,577$10,819 Total operating revenues$25,292$25

130、,604$25,840$26,770$24,857$24,558$25,257 Operating Income Margin 28.9%27.9%28.4%26.3%28.6%29.8%29.9%Segment EBITDA Margin 41.4%40.5%40.9%37.9%41.5%43.1%42.8%Segment EBITDA-Year over year change%2.2%Business(dollars in millions)3 Mos.3 Mos.3 Mos.3 Mos.3 Mos.3 Mos.3 Mos.EndedEndedEndedEndedEndedEndedEn

131、dedUnaudited3/31/226/30/229/30/2212/31/223/31/236/30/239/30/23Operating Income$673$675$698$585$551$533$539 Add Depreciation and amortization expense 1,061 1,074 1,079 1,098 1,094 1,103 1,127 Segment EBITDA$1,734$1,749$1,777$1,683$1,645$1,636$1,666 Total operating revenues$7,709$7,626$7,837$7,900$7,494$7,483$7,527 Operating Income Margin 8.7%8.9%8.9%7.4%7.4%7.1%7.2%Segment EBITDA Margin 22.5%22.9%22.7%21.3%22.0%21.9%22.1%Segment EBITDA-Year over year change%(6.2)%Verizon Communications Inc.17