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Debt | 12 Months Ended
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Dec. 31, 2023
Debt Disclosure [Abstract] |
Debt |
Note 7. Debt
Outstanding long-term debt obligations as of December 31, 2023 and 2022 are as follows:
|  |  |  |  | (dollars in millions)
At December 31, | Maturities |  | Interest Rates % |  | 2023 |  | 2022
Verizon Communications | < 5 Years |  | 0.75 - 6.94 |  | $ | 33,316 |  |  | $ | 23,929 |
| 5-10 Years |  | 1.50 - 7.88 |  | 37,229 |  |  | 42,637 |
| > 10 Years |  | 1.13 - 8.95 |  | 55,355 |  |  | 60,134 |
| < 5 Years |  | Floating(1) |  | 2,099 |  |  | 2,992 |
| 5-10 Years |  | Floating(1) |  | 2,029 |  |  | 3,029 |
Alltel Corporation | 5-10 Years |  | 6.80 - 7.88 |  | 94 |  |  | 94 |
Operating telephone company subsidiaries—debentures | < 5 Years |  | 6.00 - 6.50 |  | 79 |  |  | — |
| 5-10 Years |  | 5.13 - 8.75 |  | 535 |  |  | 475 |
| > 10 Years |  | 5.13 |  | — |  |  | 139 |
Other subsidiaries—asset-backed debt | < 5 Years |  | 0.41 - 6.09 |  | 14,048 |  |  | 9,767 |
| < 5 Years |  | Floating(1) |  | 8,163 |  |  | 10,271 |
Finance lease obligations (average rate of 2.9% and 2.5% in 2023 and 2022, respectively)(2) |  |  |  |  | 2,091 |  |  | 1,732 |
Vendor financing arrangements(2) |  |  |  |  | 64 |  |  | — |
Unamortized discount, net of premium |  |  |  |  | (3,812) |  |  | (4,039) |
Unamortized debt issuance costs |  |  |  |  | (616) |  |  | (671) |
Total long-term debt, including current maturities |  |  |  |  | 150,674 |  |  | 150,489 |
Less long-term debt maturing within one year |  |  |  |  | 12,973 |  |  | 9,813 |
Total long-term debt |  |  |  |  | $ | 137,701 |  |  | $ | 140,676 |
Long-term debt maturing within one year |  |  |  |  | $ | 12,973 |  |  | $ | 9,813 |
Add commercial paper |  |  |  |  | — |  |  | 150 |
Debt maturing within one year |  |  |  |  | 12,973 |  |  | 9,963 |
Add long-term debt |  |  |  |  | 137,701 |  |  | 140,676 |
Total debt |  |  |  |  | $ | 150,674 |  |  | $ | 150,639 |
(1) For the period ending December 2023, the debt obligations bore interest at floating rates, including floating rates associated with the Secured Overnight Financing Rate (SOFR) for the interest period plus an applicable interest margin per annum. Floating rates associated with SOFR for the interest payments made in December 2023 ranged from 5.338% to 6.142%. For the period ending December 2022, the debt obligations bore interest at a floating rate associated with SOFR for the interest period or the London Interbank Offered Rate plus an applicable interest margin per annum, as applicable. (2) Finance lease and vendor financing obligations are part of alternative financing arrangements. Maturities of long-term debt (secured and unsecured) outstanding, including current maturities, excluding finance lease obligations and unamortized debt issuance costs, at December 31, 2023 are as follows:
Years | (dollars in millions)
2024 | $ | 12,253 |
2025 | 17,783 |
2026 | 10,586 |
2027 | 7,198 |
2028 | 12,467 |
Thereafter | 88,912 |
During 2023, we received $8.6 billion of proceeds from long-term borrowings, which included $6.6 billion of proceeds from asset-backed debt transactions. The net proceeds were primarily used for general corporate purposes including the repayment of debt and the funding of certain renewable energy projects. We used $10.6 billion of cash to repay and repurchase long-term borrowings and finance lease obligations, including $4.4 billion to prepay and repay asset-backed, long-term borrowings. The net proceeds of approximately $1.0 billion from the notes issued in 2023 are expected to be used to fund certain renewable energy projects. During 2022, we received $17.8 billion of proceeds from long-term borrowings, which included $10.7 billion of proceeds from asset-backed debt transactions. The net proceeds were primarily used for general corporate purposes including the repayment of debt and the funding of certain renewable energy projects. We used $13.6 billion of cash to repay, redeem and repurchase long-term borrowings and finance lease obligations, including $4.9 billion to prepay and repay asset-backed, long-term borrowings. The net proceeds of approximately $1.0 billion from the notes issued in 2022 were used to fund certain renewable energy projects. 2023 Significant Debt Transactions Debt or equity financing may be needed to fund additional investments or development activities or to maintain an appropriate capital structure to ensure our financial flexibility. The following tables show the significant transactions involving the senior unsecured debt securities of the Company and its subsidiaries that occurred during the year ended December 31, 2023. Tender Offers
(dollars in millions) | Principal Amount Purchased |  | Cash Consideration(1)
Verizon 2.550% - 5.050% notes and floating rate notes, due 2024 - 2036 | $ | 2,579 |  |  | $ | 2,471 |
(1) The total cash consideration includes the tender offer consideration, plus any accrued and unpaid interest to the date of purchase. Repayments and Repurchases
(dollars in millions) | Principal Repaid/ Repurchased |  | Amount Paid(1)
Verizon 3.500% notes and floating rate notes due 2023(2) | A$ | 1,050 |  |  | $ | 850 |
Verizon 0.375% bonds due 2023(2) | CHF | 600 |  |  | 633 |
Open market repurchases of various Verizon notes(3) | $ | 774 |  |  | 539 |
Total |  |  | $ | 2,022 |
(1) Represents amount paid to repay or repurchase, including any accrued interest. In addition, for securities denominated in a currency other than the U.S. dollar, amount paid is shown on a U.S. dollar equivalent basis. (2) U.S. dollar amount paid represents the amount payable at maturity per the derivatives entered into in connection with the transaction. See Note 9 for additional information on cross currency swap transactions related to the repayment. (3) During 2023, we recorded gains of $235 million in connection with the open market repurchases, which were reflected within Other income (expense), net in our consolidated statement of income. Issuances
(dollars in millions) | Principal Amount Issued |  | Net Proceeds(1)
Verizon 5.050% notes due 2033(2) | $ | 1,000 |  |  | $ | 994 |
(1) Net proceeds were net of underwriting discounts and other issuance costs. (2) An amount equal to the net proceeds from these notes is expected to be used to fund, in whole or in part, certain renewable energy projects, including new and existing investments made by us during the period from January 1, 2023 through the maturity date of the notes. Short-Term Borrowing and Commercial Paper Program In March 2023, we entered into and fully drew from a $500 million short-term revolving credit facility. In July 2023, the short-term revolving credit facility matured and was fully repaid. As of December 31, 2023, we had no short-term borrowing outstanding. In 2023, we issued $15.9 billion in commercial paper and we repaid $16.1 billion of commercial paper. As of December 31, 2023, we had no commercial paper outstanding. These transactions are reflected within Cash flows from financing activities in our consolidated statements of cash flows on a net basis. Asset-Backed Debt As of December 31, 2023, the carrying value of our asset-backed debt was $22.2 billion. Our asset-backed debt includes Asset-Backed Notes (ABS Notes) issued to third-party investors (Investors) and loans (ABS Financing Facilities) received from banks and their conduit facilities (collectively, the Banks). Our consolidated asset-backed debt bankruptcy remote legal entities (each, an ABS Entity, or collectively, the ABS Entities) issue the debt or are otherwise party to the transaction documentation in connection with our asset-backed debt transactions. Under the terms of our asset-backed debt, Cellco Partnership (Cellco), a wholly-owned subsidiary of the Company, and certain other Company affiliates (collectively, the Originators) transfer device payment plan agreement receivables and certain other receivables (collectively referred to as certain receivables) or a participation interest in certain other receivables to one of the ABS Entities, which in turn transfers such receivables and participation interest to another ABS Entity that issues the debt. Verizon entities retain the equity interests and residual interests, as applicable, in the ABS Entities, which represent the rights to all funds not needed to make required payments on the asset-backed debt and other related payments and expenses. Our asset-backed debt is secured by the transferred receivables and participation interest, and future collections on such receivables and underlying receivables related to such participation interest. These receivables and participation interest transferred to the ABS Entities and related assets, consisting primarily of restricted cash, will only be available for payment of asset-backed debt and expenses related thereto, payments to the Originators in respect of additional transfers of certain receivables and participation interest, and other obligations arising from our asset-backed debt transactions, and will not be available to pay other obligations or claims of Verizon’s creditors until the associated asset-backed debt and other obligations are satisfied. The Investors or Banks, as applicable, which hold our asset-backed debt have legal recourse to the assets securing the debt, but do not have any recourse to Verizon with respect to the payment of principal and interest on the debt. Under a parent support agreement, the Company has agreed to guarantee certain of the payment obligations of Cellco and the Originators to the ABS Entities. Cash collections on the receivables and on the underlying receivables related to the participation interest collateralizing our asset-backed debt securities are required at certain specified times to be placed into segregated accounts. Deposits to the segregated accounts are considered restricted cash and are included in Prepaid expenses and other and Other assets in our consolidated balance sheets. Proceeds from our asset-backed debt transactions are reflected in Cash flows from financing activities in our consolidated statements of cash flows. The asset-backed debt issued is included in Debt maturing within one year and Long-term debt in our consolidated balance sheets. ABS Notes During the year ended December 31, 2023, we completed the following ABS Notes transactions:
(dollars in millions) | Interest Rates % |  | Expected Weighted-average Life to Maturity (in years) | Principal Amount Issued
January 2023 |  |  |  |
Series 2023-1 |  |  |  |
A Senior class notes | 4.490 |  | 2.98 | $ | 891 |
B Junior class notes | 4.740 |  | 2.98 | — |
C Junior class notes | 4.980 |  | 2.98 | 41 |
January 2023 total |  |  |  | 932 |
April 2023 |  |  |  |
Series 2023-2 |  |  |  |
A Senior class notes | 4.890 |  | 1.99 | 891 |
B Junior class notes | 5.130 |  | 1.99 | — |
C Junior class notes | 5.380 |  | 1.99 | 41 |
Series 2023-3 |  |  |  |
A Senior class notes | 4.730 |  | 4.99 | 268 |
B Junior class notes | 4.970 |  | 4.99 | — |
C Junior class notes | 5.220 |  | 4.99 | 12 |
April 2023 total |  |  |  | 1,212 |
June 2023 |  |  |  |
Series 2023-4 |  |  |  |
A-1a Senior fixed rate class notes | 5.160 |  | 2.97 | 538 |
A-1b Senior floating rate class notes | Compounded SOFR + 0.850 |  | 2.97 | 175 |
B Junior class notes | 5.400 |  | 2.97 | — |
C Junior class notes | 5.650 |  | 2.97 | 33 |
June 2023 total |  |  |  | 746 |
September 2023 |  |  |  |
Series 2023-5 |  |  |  |
A-1a Senior fixed rate class notes | 5.610 |  | 2.00 | 265 |
A-1b Senior floating rate class notes | Compounded SOFR + 0.680 |  | 2.00 | 114 |
B Junior class notes | 5.850 |  | 2.00 | — |
C Junior class notes | 6.090 |  | 2.00 | 17 |
Series 2023-6 |  |  |  |
A Senior class notes | 5.350 |  | 5.00 | 557 |
B Junior class notes | 5.590 |  | 5.00 | — |
C Junior class notes | 5.840 |  | 5.00 | — |
September 2023 total |  |  |  | 953 |
November 2023 |  |  |  |
Series 2023-7 |  |  |  |
A-1a Senior fixed rate class notes | 5.670 |  | 3.00 | 435 |
A-1b Senior floating rate class notes | Compounded SOFR + 0.950 |  | 3.00 | 100 |
B Junior class notes | 5.960 |  | 3.00 | 41 |
C Junior class notes | 6.210 |  | 3.00 | — |
November 2023 total |  |  |  | 576 |
Total |  |  |  | $ | 4,419 |
Under the terms of each series of ABS Notes outstanding as of December 31, 2023, there is a revolving period of up to 18 months, two years, three years, or five years, as applicable, during which we may transfer additional receivables to the ABS Entity. During the year ended December 31, 2023, we made aggregate principal repayments of $3.7 billion in connection with anticipated redemptions of ABS Notes and notes that have entered the amortization period, including payments in connection with any note redemptions. During the year ended December 31, 2022, we made aggregate principal repayments of $4.3 billion in connection with ABS Notes that have entered the amortization period, including payments in connection with any note redemptions. In January 2024, we issued $1.9 billion aggregate principal amount of two series of senior and junior ABS Notes, with a blended interest rate of approximately 4.867% and 5.028%, through an ABS Entity. In addition, in connection with an anticipated redemption of ABS Notes, we made a principal repayment, in whole, for $408 million. ABS Financing Facilities Under the two loan agreements outstanding in connection with the ABS Financing Facility originally entered into in December 2021 and previously renewed in 2022 (2021 ABS Financing Facility), we borrowed an additional $325 million in March 2023 and prepaid an aggregate of $700 million in April 2023. In December 2023, we renewed the loan agreements in connection with the 2021 ABS Financing Facility which reset the revolving periods by 18 months, and we borrowed an additional $925 million. The aggregate outstanding balance under the 2021 ABS Financing Facility was $8.5 billion as of December 31, 2023. In January 2024, we prepaid an aggregate of $900 million under the loan agreements outstanding in connection with the 2021 ABS Financing Facility. In March 2023, we borrowed an additional $500 million under the loan agreement outstanding in connection with the ABS Financing Facility that we originally entered into in 2022 (2022 ABS Financing Facility). In December 2023, we renewed the loan agreement in connection with the 2022 ABS Financing Facility which reset the revolving period by one year, and we borrowed an additional $450 million. T he aggregate outstanding balance under the 2022 ABS Financing Facility was $3.0 billion as of December 31, 2023. Variable Interest Entities The ABS Entities meet the definition of a VIE for which we have determined that we are the primary beneficiary as we have both the power to direct the activities of the entity that most significantly impact the entity’s performance and the obligation to absorb losses or the right to receive benefits of the entity. Therefore, the assets, liabilities and activities of the ABS Entities are consolidated in our financial results and are included in amounts presented on the face of our consolidated balance sheets. The assets and liabilities related to our asset-backed debt arrangements included in our consolidated balance sheets were as follows:
| At December 31, |  | At December 31,
(dollars in millions) | 2023 |  | 2022
Assets |  |  |
Accounts receivable, net | $ | 14,550 |  |  | $ | 13,906 |
Prepaid expenses and other | 1,288 |  |  | 1,409 |
Other assets | 11,682 |  |  | 9,894 |
Liabilities |  |  |
Accounts payable and accrued liabilities | 29 |  |  | 22 |
Debt maturing within one year | 7,483 |  |  | 6,809 |
Long-term debt | 14,700 |  |  | 13,199 |
The Accounts receivable, net amount above does not include underlying receivables for which a participation interest has been transferred to the ABS Entities. See Note 8 for additional information on certain receivables and participation interest used to secure asset-backed debt. Long-Term Credit Facilities
|  |  |  |  | At December 31, 2023
(dollars in millions) | Maturities |  | Facility Capacity |  | Unused Capacity |  | Principal Amount Outstanding
Verizon revolving credit facility(1) | 2026 |  | $ | 9,500 |  |  | $ | 9,457 |  |  | $ | — |
Various export credit facilities(2) | 2024 - 2031 |  | 11,000 |  |  | — |  |  | 6,618 |
Total |  |  | $ | 20,500 |  |  | $ | 9,457 |  |  | $ | 6,618 |
(1) The revolving credit facility does not require us to comply with financial covenants or maintain specified credit ratings, and it permits us to borrow even if our business has incurred a material adverse change. The revolving credit facility provides for the issuance of letters of credit. As of December 31, 2023, there have been no drawings against the $9.5 billion revolving credit facility since its inception. (2) During 2023 and 2022, we drew down $1.0 billion and $3.0 billion, respectively, from these facilities. Borrowings under certain of these facilities are amortized semi-annually in equal installments up to the applicable maturity dates. Maturities reflect maturity dates of principal amounts outstanding. Any amounts borrowed under these facilities and subsequently repaid cannot be reborrowed. Non-Cash Transactions During the years ended December 31, 2023, 2022 and 2021, we financed, primarily through alternative financing arrangements, the purchase of approximately $1.3 billion, $832 million, and $461 million, respectively, of long-lived assets consisting primarily of network equipment. As of December 31, 2023 and 2022, $2.2 billion and $1.7 billion, respectively, relating to these financing arrangements, including those entered into in prior years and liabilities assumed through acquisitions, remained outstanding. These purchases are non-cash financing activities and therefore are not reflected within Capital expenditures in our consolidated statements of cash flows. Net Debt Extinguishment Gains (Losses) During the year ended December 31, 2023, we recorded net debt extinguishment gains of $308 million. During the years ended December 31, 2022 and 2021, we recorded net debt extinguishment losses of $1.1 billion and $3.6 billion, respectively. The net gains and losses are recorded in Other income (expense), net in our consolidated statements of income. The total gains and losses are reflected within Other, net cash flow from operating activities, and the portion of the gains and losses representing cash payments are reflected within Other, net cash flow from financing activities in our consolidated statements of cash flows. Guarantees We guarantee the debentures of our operating telephone company subsidiaries. As of December 31, 2023, $614 million aggregate principal amount of these obligations remained outstanding. Each guarantee will remain in place for the life of the obligation unless terminated pursuant to its terms, including the operating telephone company no longer being a wholly-owned subsidiary of the Company. Debt Covenants We and our consolidated subsidiaries are in compliance with all of our restrictive covenants in our debt agreements.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1E -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I + Details
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