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Segment Information | 6 Months Ended
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Jun. 30, 2024
Segment Reporting [Abstract] |
Segment Information |
Note 10. Segment Information
Reportable Segments We have two reportable segments that we operate and manage as strategic business units - Consumer and Business. We measure and evaluate our reportable segments based on segment operating income, consistent with the chief operating decision maker’s assessment of segment performance. Our segments and their principal activities consist of the following:
Segment |  | Description
Verizon Consumer Group |  | Our Consumer segment provides consumer-focused wireless and wireline communications services and products. Our wireless services are provided across one of the most extensive wireless networks in the U.S. under the Verizon family of brands and through wholesale and other arrangements. We also provide fixed wireless access (FWA) broadband through our 5G or 4G LTE networks as an alternative to traditional landline internet access. Our wireline services are provided in nine states in the Mid-Atlantic and Northeastern U.S., as well as Washington D.C., over our 100% fiber-optic network through our Verizon Fios product portfolio and over a traditional copper-based network to customers who are not served by Fios.
Verizon Business Group |  | Our Business segment provides wireless and wireline communications services and products, including FWA broadband, data, video and conferencing services, corporate networking solutions, security and managed network services, local and long distance voice services and network access to deliver various Internet of Things services and products. We provide these products and services to businesses, government customers and wireless and wireline carriers across the U.S. and a subset of these products and services to customers around the world.
Our Consumer segment's wireless and wireline products and services are available to our retail customers, as well as resellers that purchase wireless network access from us on a wholesale basis. Our Business segment's wireless and wireline products and services are organized by the primary customer groups targeted by these offerings: Enterprise and Public Sector, Business Markets and Other, and Wholesale. Corporate and other primarily includes device insurance programs, investments in unconsolidated businesses and development stage businesses that support our strategic initiatives, as well as unallocated corporate expenses, certain pension and other employee benefit related costs and interest and financing expenses. Corporate and other also includes the historical results of divested businesses and other adjustments and gains and losses that are not allocated or used in assessing segment performance due to their nature. Although such transactions are excluded from the business segment results, they are included in reported consolidated earnings. Gains and losses from these transactions that are not individually significant are included in segment results and therefore included in the chief operating decision maker’s assessment of segment performance. The following table provides operating financial information for our two reportable segments:
| Three Months Ended |  | Six Months Ended
| June 30, |  | June 30,
(dollars in millions) | 2024 |  | 2023 |  | 2024 |  | 2023
External Operating Revenues |  |  |  |  |  |  |
Consumer |  |  |  |  |  |  |
Service | $ | 19,208 |  |  | $ | 18,641 |  |  | $ | 38,206 |  |  | $ | 37,097 |
Wireless equipment | 4,143 |  |  | 4,430 |  |  | 8,633 |  |  | 9,308 |
Other(1) | 1,521 |  |  | 1,435 |  |  | 3,038 |  |  | 2,909 |
Total Consumer | 24,872 |  |  | 24,506 |  |  | 49,877 |  |  | 49,314 |
Business |  |  |  |  |  |  |
Enterprise and Public Sector | 3,545 |  |  | 3,784 |  |  | 7,132 |  |  | 7,571 |
Business Markets and Other | 3,199 |  |  | 3,104 |  |  | 6,389 |  |  | 6,203 |
Wholesale | 547 |  |  | 587 |  |  | 1,137 |  |  | 1,186 |
Total Business | 7,291 |  |  | 7,475 |  |  | 14,658 |  |  | 14,960 |
Total reportable segments | $ | 32,163 |  |  | $ | 31,981 |  |  | $ | 64,535 |  |  | $ | 64,274 |
Intersegment Revenues |  |  |  |  |  |  |
Consumer | $ | 55 |  |  | $ | 52 |  |  | $ | 107 |  |  | $ | 101 |
Business | 9 |  |  | 8 |  |  | 18 |  |  | 17 |
Total reportable segments | $ | 64 |  |  | $ | 60 |  |  | $ | 125 |  |  | $ | 118 |
Total Operating Revenues |  |  |  |  |  |  |
Consumer | $ | 24,927 |  |  | $ | 24,558 |  |  | $ | 49,984 |  |  | $ | 49,415 |
Business(2) | 7,300 |  |  | 7,483 |  |  | 14,676 |  |  | 14,977 |
Total reportable segments | $ | 32,227 |  |  | $ | 32,041 |  |  | $ | 64,660 |  |  | $ | 64,392 |
Operating Income |  |  |  |  |  |  |
Consumer | $ | 7,604 |  |  | $ | 7,330 |  |  | $ | 14,976 |  |  | $ | 14,429 |
Business | 500 |  |  | 533 |  |  | 899 |  |  | 1,084 |
Total reportable segments | $ | 8,104 |  |  | $ | 7,863 |  |  | $ | 15,875 |  |  | $ | 15,513 |
(1) Other revenue includes fees that partially recover the direct and indirect costs of complying with regulatory and industry obligations and programs, revenues associated with certain products included in our device protection offerings, leasing and interest recognized when equipment is sold to the customer by an authorized agent under a device payment plan agreement. (2) Service and other revenues included in our Business segment were approximately $6.4 billion and $6.6 billion for the three months ended June 30, 2024 and 2023, respectively, and $13.0 billion and $13.2 billion for the six months ended June 30, 2024 and 2023, respectively. Wireless equipment revenues included in our Business segment were $855 million and $847 million for the three months ended June 30, 2024 and 2023, respectively, and $1.7 billion for both the six months ended June 30, 2024 and 2023. The following table provides Fios revenue for our two reportable segments:
| Three Months Ended |  | Six Months Ended
| June 30, |  | June 30,
(dollars in millions) | 2024 |  | 2023 |  | 2024 |  | 2023
Consumer | $ | 2,896 |  |  | $ | 2,886 |  |  | $ | 5,792 |  |  | $ | 5,775 |
Business | 313 |  |  | 308 |  |  | 624 |  |  | 615 |
Total Fios revenue | $ | 3,209 |  |  | $ | 3,194 |  |  | $ | 6,416 |  |  | $ | 6,390 |
The following table provides Wireless service revenue for our reportable segments and includes intersegment activity:
| Three Months Ended |  | Six Months Ended
| June 30, |  | June 30,
(dollars in millions) | 2024 |  | 2023 |  | 2024 |  | 2023
Consumer | $ | 16,342 |  |  | $ | 15,762 |  |  | $ | 32,476 |  |  | $ | 31,361 |
Business | 3,431 |  |  | 3,351 |  |  | 6,810 |  |  | 6,641 |
Total Wireless service revenue | $ | 19,773 |  |  | $ | 19,113 |  |  | $ | 39,286 |  |  | $ | 38,002 |
Reconciliation to Consolidated Financial Information The reconciliation of segment operating revenues and operating income to consolidated operating revenues and operating income below includes the effects of special items that the chief operating decision maker does not consider in assessing segment performance, primarily because of their nature. A reconciliation of the reportable segments' operating revenues to consolidated operating revenues is as follows:
| Three Months Ended |  | Six Months Ended
| June 30, |  | June 30,
(dollars in millions) | 2024 |  | 2023 |  | 2024 |  | 2023
Total reportable segments operating revenues | $ | 32,227 |  |  | $ | 32,041 |  |  | $ | 64,660 |  |  | $ | 64,392 |
Corporate and other | 633 |  |  | 621 |  |  | 1,244 |  |  | 1,238 |
Eliminations | (64) |  |  | (66) |  |  | (127) |  |  | (122) |
Total consolidated operating revenues | $ | 32,796 |  |  | $ | 32,596 |  |  | $ | 65,777 |  |  | $ | 65,508 |
A reconciliation of the total reportable segments' operating income to consolidated income before provision for income taxes is as follows:
| Three Months Ended |  | Six Months Ended
| June 30, |  | June 30,
(dollars in millions) | 2024 |  | 2023 |  | 2024 |  | 2023
Total reportable segments operating income | $ | 8,104 |  |  | $ | 7,863 |  |  | $ | 15,875 |  |  | $ | 15,513 |
Corporate and other | (277) |  |  | (344) |  |  | (413) |  |  | (348) |
Severance charges | — |  |  | (237) |  |  | — |  |  | (237) |
Other components of net periodic benefit charges (Note 8) | (9) |  |  | (62) |  |  | (17) |  |  | (124) |
Legacy legal matter | — |  |  | — |  |  | (106) |  |  | — |
Total consolidated operating income | 7,818 |  |  | 7,220 |  |  | 15,339 |  |  | 14,804 |
Equity in losses of unconsolidated businesses | (14) |  |  | (33) |  |  | (23) |  |  | (24) |
Other income (expense), net | (72) |  |  | 210 |  |  | 126 |  |  | 324 |
Interest expense | (1,698) |  |  | (1,285) |  |  | (3,333) |  |  | (2,492) |
Income Before Provision For Income Taxes | $ | 6,034 |  |  | $ | 6,112 |  |  | $ | 12,109 |  |  | $ | 12,612 |
No single customer accounted for more than 10% of our total operating revenues during the three and six months ended June 30, 2024 or 2023. The chief operating decision maker does not review disaggregated assets on a segment basis; therefore, such information is not presented. Depreciation and amortization included in the measure of segment profitability is primarily allocated based on proportional usage, and is included within Total reportable segments operating income.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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