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Employee Benefits
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Employee Benefits
Note 11. Employee Benefits
We maintain non-contributory defined benefit pension plans for certain employees. In addition, we maintain postretirement health care and life insurance plans for certain retirees and their dependents, which are both contributory and non-contributory, and include a limit on our share of the cost for certain current and future retirees. In accordance with our accounting policy for pension and other postretirement benefits, operating expenses include service costs associated with pension and other postretirement benefits while other credits and/or charges based on actuarial assumptions, including projected discount rates, an estimated return on plan assets, and impact from health care trend rates are reported in Other income (expense), net. These estimates are updated in the fourth quarter or upon a remeasurement event, to reflect actual return on plan assets and updated actuarial assumptions. The adjustment is recognized in the income statement during the fourth quarter and upon a remeasurement event pursuant to our accounting policy for the recognition of actuarial gains and losses.

Pension and Other Postretirement Benefits
Pension and other postretirement benefits for certain employees are subject to collective bargaining agreements. Modifications in benefits have been bargained from time to time, and we may also periodically amend the benefits in the management plans. The following tables summarize benefit costs, as well as the benefit obligations, plan assets, funded status and rate assumptions associated with pension and postretirement health care and life insurance benefit plans.

Obligations and Funded Status
(dollars in millions)
PensionHealth Care and Life
At December 31,2023202220232022
Change in Benefit Obligations
Beginning of year$15,369 $20,167 $11,107 $14,710 
Service cost208 246 54 94 
Interest cost752 544 545 332 
Plan amendments— 427 (26)4 
Actuarial (gain) loss, net5 (3,865)757 (3,297)
Benefits paid(1,008)(782)(982)(736)
Curtailment and termination benefits5 2 — — 
Settlements paid(198)(1,370)— — 
End of year15,133 15,369 11,455 11,107 
Change in Plan Assets
Beginning of year13,739 20,087 450 581 
Actual return on plan assets751 (4,249)62 (87)
Company contributions252 53 936 692 
Benefits paid(1,008)(782)(982)(736)
Settlements paid(198)(1,370)— — 
End of year13,536 13,739 466 450 
Funded Status - End of year$(1,597)$(1,630)$(10,989)$(10,657)

(dollars in millions)
PensionHealth Care and Life
At December 31,2023202220232022
Amounts recognized in the balance sheets
Non-current assets$— $4 $— $— 
Current liabilities(42)(48)(685)(718)
Non-current liabilities(1,555)(1,586)(10,304)(9,939)
Total$(1,597)$(1,630)$(10,989)$(10,657)
Amounts recognized in Accumulated other comprehensive loss (pre-tax)
Prior service cost (benefit)$635 $747 $(962)$(1,355)
Total$635 $747 $(962)$(1,355)
The accumulated benefit obligation for all defined benefit pension plans was $15.1 billion and $15.3 billion at December 31, 2023 and 2022, respectively.

Actuarial (Gain) Loss, Net
The net actuarial loss in 2023 is primarily the result of a $534 million loss in our postretirement benefit plans due to an increase in our healthcare cost trend rate assumption used to determine the current year liabilities of our postretirement benefit plans from a weighted-average of 6.6% at December 31, 2022 to a weighted-average of 7.3% at December 31, 2023; and a $503 million loss ($288 million in our pension plans and $215 million in our postretirement benefit plans) due to a decrease in our discount rate assumption used to determine the current year liabilities of our pension plans and postretirement benefit plans from a weighted-average of 5.2% at December 31, 2022 to a weighted-average of 5.0% at December 31, 2023.

The net actuarial gain in 2022 is primarily the result of a $7.0 billion gain ($4.1 billion gain in our pension plans and $2.9 billion gain in our postretirement benefit plans) due to an increase in our discount rate assumption used to determine the current year liabilities of our pension plans and postretirement benefit plans from a weighted-average of 2.9% at December 31, 2021 to a weighted-average of 5.2% at December 31, 2022.

Plan Amendments
The reclassifications from the amounts recorded in Accumulated other comprehensive income (loss) as a result of collective bargaining agreements and plan amendments made in 2016, 2017, 2018 and 2022 resulted in a net decrease to net periodic benefit cost and net increase to pre-tax income of approximately $252 million, $390 million and $708 million during 2023, 2022 and 2021, respectively.

Information for pension plans with an accumulated benefit obligation in excess of plan assets follows:
(dollars in millions)
At December 31,20232022
Accumulated benefit obligation$15,086 $15,286 
Fair value of plan assets13,534 13,694 

Information for pension plans with a projected benefit obligation in excess of plan assets follows:
(dollars in millions)
At December 31,20232022
Projected benefit obligation$15,133 $15,328 
Fair value of plan assets13,536 13,694 

Net Periodic Benefit Cost (Income)
The following table summarizes the components of net periodic benefit cost (income) related to our pension and postretirement health care and life insurance plans:
(dollars in millions)
PensionHealth Care and Life
Years Ended December 31,202320222021202320222021
Service cost - Cost of services$182 $216 $247 $46 $79 $94 
Service cost - Selling, general and administrative expense26 30 35 8 15 18 
Service cost208 246 282 54 94 112 
Amortization of prior service cost (credit)112 82 61 (419)(530)(894)
Expected return on plan assets(1,013)(1,119)(1,234)(31)(27)(22)
Interest cost752 544 394 545 332 289 
Remeasurement loss (gain), net266 1,505 (1,419)726 (3,182)(960)
Curtailment and termination benefits— 2 — — — — 
Other components117 1,014 (2,198)821 (3,407)(1,587)
Total$325 $1,260 $(1,916)$875 $(3,313)$(1,475)

The service cost component of net periodic benefit cost (income) is recorded in Cost of services and Selling, general and administrative expense in the consolidated statements of income while the other components, including mark-to-market adjustments, if any, are recorded in Other income (expense), net.
Other pre-tax changes in plan assets and benefit obligations recognized in Other comprehensive (income) loss are as follows:
(dollars in millions)
PensionHealth Care and Life
At December 31,202320222021202320222021
Reversal of amortization items
Prior service cost (benefit)$(112)$(82)$(61)$419 $530 $894 
Total recognized in Other comprehensive loss (income) (pre-tax)$(112)$(82)$(61)$419 $530 $894 

Assumptions
The weighted-average assumptions used in determining benefit obligations follow:
PensionHealth Care and Life
At December 31,2023202220232022
Discount Rate5.00 %5.20 %5.00 %5.20 %
Rate of compensation increases3.00 %3.00 %N/AN/A
N/A - not applicable

The weighted-average assumptions used in determining net periodic cost follow:
PensionHealth Care and Life
At December 31,202320222021202320222021
Discount rate in effect for determining service cost
5.30 %3.80 %3.20 %5.30 %3.20 %3.00 %
Discount rate in effect for determining interest cost
5.10 3.20 1.90 5.10 2.30 1.80 
Expected return on plan assets7.70 6.70 6.50 7.30 4.90 4.20 
Rate of compensation increases3.00 3.00 3.00 N/AN/AN/A
N/A - not applicable

In determining our pension and other postretirement benefit obligations, we used a weighted-average discount rate of 5.0% in 2023. The rates were selected to approximate the composite interest rates available on a selection of high-quality bonds available in the market at December 31, 2023. The bonds selected had maturities that coincided with the time periods during which benefits payments are expected to occur, were non-callable (or callable with certain selection criteria met) and available in sufficient quantities to ensure marketability (at least $300 million par outstanding).

In order to project the long-term target investment return for the total portfolio, estimates are prepared for the total return of each major asset class over the subsequent 10-year period. Those estimates are based on a combination of factors including the current market interest rates and valuation levels, consensus earnings expectations and historical long-term risk premiums. To determine the aggregate return for the pension trust, the projected return of each individual asset class is then weighted according to the allocation to that investment area in the trust’s long-term asset allocation policy.

The assumed health care cost trend rates are as follows:
Health Care and Life
At December 31,202320222021
Weighted-average healthcare cost trend rate assumed for next year7.30 %6.60 %6.20 %
Rate to which cost trend rate gradually declines4.50 4.50 4.50 
Year the rate reaches the level it is assumed to remain thereafter203220312029

Plan Assets
The Company’s overall investment strategy is to achieve a mix of assets that allows us to meet projected benefit payments while taking into consideration risk and return. While target allocation percentages will vary over time, the current target allocation for plan assets is designed so that 34% to 44% of the assets have the objective of achieving a return in excess of the growth in liabilities (comprised of public equities, private equities, real estate, hedge funds, high yield bonds and emerging market debt) and 62% to 72% of the assets are invested as liability hedging assets (where interest rate sensitivity of the liability hedging assets better match the interest rate sensitivity of the liability) and a maximum of 10% is in cash. This allocation will shift as funded status improves to a higher allocation of liability hedging assets. Target policies will be revisited periodically to ensure they are in line with fund objectives. Both active and passive management approaches are used depending on perceived market efficiencies and various other factors. Due to our diversification and risk control processes, there are no significant concentrations of risk, in terms of sector, industry, geography or company names.

Pension and healthcare and life plans assets do not include significant amounts of Verizon bonds or common stock.
Pension Plans
The fair values for the pension plans by asset category at December 31, 2023 are as follows:
(dollars in millions)
Asset CategoryTotalLevel 1Level 2Level 3
Cash and cash equivalents$1,956 $1,771 $185 $— 
Equity securities69 55 14 — 
Fixed income securities
U.S. Treasuries and agencies1,412 1,274 138 — 
Corporate bonds2,994 204 2,790 — 
International bonds341 3 338 — 
Other768 234 534 — 
Real estate996 — — 996 
Other
Private equity512 — — 512 
Hedge funds56 — 30 26 
Total investments at fair value9,104 3,541 4,029 1,534 
Investments measured at NAV4,432 
Total$13,536 $3,541 $4,029 $1,534 

The fair values for the pension plans by asset category at December 31, 2022 are as follows:
(dollars in millions)
Asset CategoryTotalLevel 1Level 2Level 3
Cash and cash equivalents$817 $779 $38 $— 
Equity securities332 318 14 — 
Fixed income securities
U.S. Treasuries and agencies1,541 1,312 229 — 
Corporate bonds2,413 13 2,400 — 
International bonds528 10 518 — 
Other711 4 707 — 
Real estate1,002 — — 1,002 
Other
Private equity569 — — 569 
Hedge funds88 — 36 52 
Total investments at fair value8,001 2,436 3,942 1,623 
Investments measured at NAV5,738 
Total$13,739 $2,436 $3,942 $1,623 

The following is a reconciliation of the beginning and ending balance of pension plan assets that are measured at fair value using significant unobservable inputs:
(dollars in millions)
Real
Estate		Private
Equity		Hedge
Funds		Total
Balance at January 1, 2022$972 $569 $110 $1,651 
Actual gain on plan assets19 30 19 68 
Purchases (sales)14 (11)6 9 
Transfers out(3)(19)(83)(105)
Balance at December 31, 20221,002 569 52 1,623 
Actual gain (loss) on plan assets(54)14 4 (36)
Purchases (sales)48 (67)(1)(20)
Transfers out— (4)(29)(33)
Balance at December 31, 2023$996 $512 $26 $1,534 
Health Care and Life Plans
The fair values for the other postretirement benefit plans by asset category at December 31, 2023 are as follows:
(dollars in millions)
Asset CategoryTotalLevel 1Level 2Level 3
Cash and cash equivalents$27 $— $27 $— 
Equity securities229 229 — — 
Fixed income securities
U.S. Treasuries and agencies138 118 20 — 
Corporate bonds41 29 12 — 
International bonds12 10 2 — 
Other14 — 14 — 
Total investments at fair value461 386 75 — 
Investments measured at NAV5 
Total$466 $386 $75 $— 
The fair values for the other postretirement benefit plans by asset category at December 31, 2022 are as follows:
(dollars in millions)
Asset CategoryTotalLevel 1Level 2Level 3
Cash and cash equivalents$30 $1 $29 $— 
Equity securities252 252 — — 
Fixed income securities
U.S. Treasuries and agencies101 82 19 — 
Corporate bonds35 25 10 — 
International bonds12 9 3 — 
Other11 — 11 — 
Total investments at fair value441 369 72 — 
Investments measured at NAV9 
Total$450 $369 $72 $— 

The following are general descriptions of asset categories, as well as the valuation methodologies and inputs used to determine the fair value of each major category of assets.

Cash and cash equivalents include short-term investment funds (less than 90 days to maturity), primarily in diversified portfolios of investment grade money market instruments and are valued using quoted market prices or other valuation methods. The carrying value of cash equivalents approximates fair value due to the short-term nature of these investments.

Investments in securities traded on national and foreign securities exchanges are valued by the trustee at the last reported sale prices on the last business day of the year or, if no sales were reported on that date, at the last reported bid prices. Government obligations, corporate bonds, international bonds and asset-backed debt are valued using matrix prices with input from independent third-party valuation sources. Over-the-counter securities are valued at the bid prices or the average of the bid and ask prices on the last business day of the year from published sources or, if not available, from other sources considered reliable such as multiple broker quotes.

Commingled funds not traded on national exchanges are priced by the custodian or fund's administrator at their net asset value (NAV). Commingled funds held by third-party custodians appointed by the fund managers provide the fund managers with a NAV. The fund managers have the responsibility for providing this information to the custodian of the respective plan.

The investment manager of the entity values venture capital, corporate finance and natural resource limited partnership investments. Real estate investments are valued at amounts based upon appraisal reports prepared by either independent real estate appraisers or the investment manager using discounted cash flows or market comparable data. Loans secured by mortgages are carried at the lesser of the unpaid balance or appraised value of the underlying properties. The values assigned to these investments are based upon available and current market information and do not necessarily represent amounts that might ultimately be realized. Because of the inherent uncertainty of valuation, estimated fair values might differ significantly from the values that would have been used had a ready market for the securities existed. These differences could be material.

Forward currency contracts, futures, and options are valued by the trustee at the exchange rates and market prices prevailing on the last business day of the year. Both exchange rates and market prices are readily available from published sources. These securities are classified by the asset class of the underlying holdings.

Hedge funds are valued by the custodian at NAV based on statements received from the investment manager. These funds are valued in accordance with the terms of their corresponding offering or private placement memoranda.
Commingled funds, hedge funds, venture capital, corporate finance, natural resource and real estate limited partnership investments for which fair value is measured using the NAV per share as a practical expedient are not leveled within the fair value hierarchy but are included in total investments.

Employer Contributions
In 2023, we made a $200 million discretionary contribution to one of our qualified pension plans, $52 million of contributions to our nonqualified pension plans and $936 million of contributions to our other postretirement benefit plans. For 2024, we expect no required qualified pension plan contributions and insignificant nonqualified pension plan contributions. Contributions to our other postretirement benefit plans are estimated to be approximately $770 million in 2024.

Estimated Future Benefit Payments
The benefit payments to retirees are expected to be paid as follows:
(dollars in millions)
YearPension BenefitsHealth Care and Life
2024$1,401 $812 
20251,681 824 
20261,639 829 
2027977 836 
2028974 843 
2029 to 20334,734 4,294 

Savings Plan and Employee Stock Ownership Plans
We maintain four leveraged employee stock ownership plans (ESOP). We match a certain percentage of eligible employee contributions to certain savings plans with shares of our common stock from this ESOP. At December 31, 2023, the number of allocated shares of common stock in this ESOP was 42 million. There were no unallocated shares of common stock in this ESOP at December 31, 2023. All leveraged ESOP shares are included in earnings per share computations.

Total savings plan costs were $724 million in 2023, $620 million in 2022 and $690 million in 2021.

Severance Benefits
The following table provides an analysis of our severance liability:
(dollars in millions)
YearBeginning of YearCharged to
Expense		PaymentsOtherEnd of Year
2021$602 $233 $(258)$(29)$548 
2022548 319 (214)— 653 
2023653 531 (617)— 567 

Severance, Pension and Benefits (Credits) Charges
During 2023, in accordance with our accounting policy to recognize actuarial gains and losses in the period in which they occur, we recorded net pre-tax pension and benefits charges of $992 million in our pension and postretirement benefit plans. The charges were recorded in Other income (expense), net in our consolidated statement of income and were primarily driven by a charge of $534 million due to an increase in our healthcare cost trend rate assumption used to determine the current year liabilities of our postretirement benefit plans from a weighted-average of 6.6% at December 31, 2022 to a weighted-average of 7.3% at December 31, 2023; a charge of $503 million due to a decrease in our discount rate assumption used to determine the current year liabilities of our pension plans ($288 million) and postretirement benefit plans ($215 million) from a weighted-average of 5.2% at December 31, 2022 to a weighted-average of 5.0% at December 31, 2023; a net credit of $45 million primarily due to changes in other actuarial adjustments, which includes the difference between our estimated and our actual return on plan assets. During 2023, we also recorded net pre-tax severance charges of $531 million in Selling, general and administrative expense in our consolidated statements of income.

During 2022, we recorded net pre-tax pension and benefits credits of $1.7 billion in our pension and postretirement benefit plans. The credits were recorded in Other income (expense), net in our consolidated statement of income and were primarily driven by a credit of $7.0 billion due to an increase in our discount rate assumption used to determine the current year liabilities of our pension plans ($4.1 billion) and postretirement benefit plans ($2.9 billion) from a weighted-average of 2.9% at December 31, 2021 to a weighted-average of 5.2% at December 31, 2022, a charge of $5.5 billion due to the difference between our estimated and our actual return on assets and a credit of $206 million due to other actuarial assumption adjustments. During 2022, we also
recorded net pre-tax severance charges of $319 million in Selling, general and administrative expense in our consolidated statements of income.

During 2021, we recorded net pre-tax pension and benefits credits of $2.4 billion in our pension and postretirement benefit plans. The credits were recorded in Other income (expense), net in our consolidated statement of income and were primarily driven by a credit of $1.1 billion due to an increase in our discount rate assumption used to determine the current year liabilities of our pension plans and postretirement benefit plans from a weighted-average of 2.6% at December 31, 2020 to a weighted-average of 2.9% at December 31, 2021, a credit of $847 million due to the difference between our estimated and our actual return on assets and a credit of $453 million due to other actuarial assumption adjustments. During 2021, we also recorded net pre-tax severance charges of $233 million in Selling, general and administrative expense in our consolidated statements of income.