EX-99.1 2 a2023q4exhibit991.htm EX-99.1
Exhibit 99.1
News Release

FOR IMMEDIATE RELEASE | Media contacts:
January 23, 2024 | Katie Magnotta
| 201-602-9235
| katie.magnotta@verizon.com
| Eric Wilkens
| 201-572-9317
| eric.wilkens@verizon.com

Verizon finishes 2023 with strong cash flow and
wireless customer growth
Posts double-digit gains across fixed wireless and
total wireless postpaid net additions
Full-year 2023 wireless service revenue was $76.7 billion, up 3.2 percent from full-year 2022
Fixed wireless net additions for full-year 2023 were up over 31 percent year over year reflecting the increased demand driven by the strength and reliability of the product
Total wireless postpaid net additions for full-year 2023 spike 26 percent compared to 2022
Total wireless postpaid phone net additions jump to 449,000 for fourth-quarter 2023 compared to 217,000 for fourth-quarter 2022
Consumer postpaid phone gross additions for fourth-quarter 2023 increase nearly 17 percent year over year, marking the best quarterly performance in four years
2023 highlights
Consolidated:
•Full-year 2023 earnings per share (EPS) of $2.75, compared with $5.06 in 2022; adjusted EPS 1, excluding special items, of $4.71, compared with 2022 adjusted EPS 1 of $5.18.
•Total operating revenue of $134.0 billion in full-year 2023, down 2.1 percent year over year.
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•Full-year 2023 cash flow from operations of $37.5 billion, an increase from $37.1 billion in 2022.
•Full-year 2023 free cash flow 1 of $18.7 billion, an increase from $14.1 billion in 2022.
4Q 2023 highlights
Consolidated:
•Earnings per share was $(0.64), compared with earnings per share of $1.56 in fourth-quarter 2022; adjusted EPS 1, excluding special items, of $1.08, compared with $1.19 in fourth-quarter 2022.
•Total operating revenue of $35.1 billion, a decrease of 0.3 percent from fourth-quarter 2022.
•Consolidated net loss for the fourth-quarter of $2.6 billion, compared to consolidated net income of $6.7 billion in fourth-quarter 2022, and consolidated adjusted EBITDA 1 of $11.7 billion, in line with the 2022 result.
Total Broadband:
•Total broadband net additions of 413,000, represented the fifth consecutive quarter that Verizon reported more than 400,000 broadband net additions. Total broadband net additions included 375,000 fixed wireless net additions, bringing the subscriber base to over 3 million. In fourth-quarter 2023, more than 80 percent of Consumer fixed wireless gross additions were in Verizon's first 76 C-Band markets. Verizon is ahead of schedule to achieve its goal of 4 to 5 million subscribers by the end of 2025.
•55,000 Fios Internet net additions, down 4,000 from the fourth-quarter 2022.
•10.7 million total broadband subscribers as of the end of fourth-quarter 2023.
Total Wireless:
•Total wireless service revenue 2 of $19.4 billion, a 3.2 percent increase year over year.
•Retail postpaid phone net additions of 449,000, and retail postpaid net additions of 1,460,000.
•Retail postpaid churn of 1.18 percent, and retail postpaid phone churn of 0.93 percent.
NEW YORK - Verizon Communications Inc. (NYSE, Nasdaq: VZ) reported strong fourth-quarter and full-year 2023 results highlighted by total wireless postpaid net additions, fixed wireless net additions and increased wireless service revenue.
"After delivering continuous improvement throughout 2023, we ended the year strong and continue to pursue the right balance of growth and profitability," said Verizon Chairman and CEO Hans Vestberg. "2023 was a year of change. We have the right assets and the best team in place and are well-positioned for growth in 2024."
For fourth-quarter 2023, Verizon reported earnings per share of $(0.64), compared with earnings per share of $1.56 in fourth-quarter 2022. On an adjusted basis 1, excluding special
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items, EPS was $1.08 in fourth-quarter 2023, compared with adjusted EPS 1 of $1.19 in fourth-quarter 2022.
Fourth-quarter 2023 financial results reflected a pre-tax loss from special items of approximately $7.8 billion. This includes the impacts of a previously disclosed goodwill impairment charge related to our Business reporting unit of $5.8 billion, a market-to-market adjustment for our pension and Other Post Employment Benefits (OPEB) liabilities of $992 million, asset rationalization charges of $325 million primarily relating to Business network assets that Verizon has ceased the use of, a severance charge of $296 million, the amortization of intangible assets related to Tracfone and other acquisitions of $227 million, and a $100 million charge relating to the settlement of a litigation matter regarding certain administrative fees.
For full-year 2023, Verizon reported $2.75 in EPS, compared with $5.06 for full-year 2022. On an adjusted basis 1, excluding special items, 2023 EPS was $4.71, compared with $5.18 for 2022.
Consolidated results
•Total consolidated operating revenue in fourth-quarter 2023 of $35.1 billion, down 0.3 percent from fourth-quarter 2022. The decrease can be attributed to wireless equipment revenue, which was 2.0 percent lower than 2022, as total postpaid upgrades declined by 17.9 percent. Full-year 2023 consolidated operating revenue was $134.0 billion, down 2.1 percent year over year.
•Total wireless service revenue 2 in fourth-quarter 2023 was $19.4 billion, up 3.2 percent year over year, driven primarily by pricing actions implemented in recent quarters, the larger allocation of our administrative and telco recovery fees from other revenue into wireless service revenue, higher premium price plan adoption and growth from fixed wireless access offerings.
•Full-year 2023 cash flow from operations was $37.5 billion, an increase from $37.1 billion in 2022. This marks a year over year increase of over $300 million, primarily due to working capital improvements.
•Full-year 2023 capital expenditures were $18.8 billion, down from $23.1 billion in 2022.
•The company ended 2023 with free cash flow 1 of $18.7 billion, an increase from $14.1 billion in 2022.
•Consolidated net loss for the fourth-quarter 2023 was $2.6 billion, compared to consolidated net income of $6.7 billion in fourth-quarter 2022, and consolidated adjusted EBITDA 1 was $11.7 billion, in line with the 2022 result.
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•Verizon's total unsecured debt as of the end of the year was $128.5 billion, a $2.1 billion increase sequentially, but $2.1 billion lower year over year. The company's net unsecured debt 1 at the end of the year was $126.4 billion, a $4.2 billion increase from third-quarter 2023, but $1.6 billion lower year over year. At the end of fourth-quarter 2023, Verizon's ratio of unsecured debt to net income (LTM) was approximately 10.6 times and net unsecured debt to adjusted EBITDA ratio 1 was approximately 2.6 times.
Verizon Consumer results
•Total Verizon Consumer revenue in fourth-quarter 2023 was $27.0 billion, an increase of 0.7 percent year over year as growth in service revenue was offset by declines in wireless equipment revenue and other revenue. For full-year 2023, total Consumer revenue was $101.6 billion, a decrease of 1.8 percent from full-year 2022.
•Wireless service revenue in fourth-quarter 2023 increased 3.2 percent year over year driven primarily by growth in Consumer wireless postpaid Average Revenue Per Account (ARPA) resulting from pricing actions implemented in recent quarters, the larger allocation of our administrative and telco recovery fees from other revenue into wireless service revenue, higher premium price plan adoption, and growth from fixed wireless access offerings. For full-year 2023, total Consumer wireless service revenue was $63.4 billion, an increase of 3.0 percent from full-year 2022.
•Consumer wireless retail postpaid churn was 1.08 percent in fourth-quarter 2023, and wireless retail postpaid phone churn was 0.88 percent.
•In fourth-quarter 2023, Consumer reported 318,000 wireless retail postpaid phone net additions, representing an improvement of 369,000 from third-quarter 2023 and 277,000 from fourth-quarter 2022. Consumer postpaid phone gross additions in the fourth-quarter 2023 increased 16.9 percent year over year, the best performance in four years.
•Verizon continues to see better performance in the markets where C-Band is deployed. In Verizon's first 76 C-Band markets, fourth-quarter growth in Consumer postpaid phone gross additions was more than 8 percentage points better than in non C-Band markets and postpaid phone churn remains lower than non C-Band markets.
•Consumer reported 289,000 wireless retail prepaid net losses in fourth-quarter 2023.
•Consumer reported 231,000 fixed wireless net additions and 53,000 Fios Internet net additions in fourth-quarter 2023. Consumer Fios revenue was $2.9 billion in fourth-quarter 2023, an increase of 1.0 percent year over year. Full-year 2023 Consumer Fios revenue was $11.6 billion, relatively flat year over year.
•In fourth-quarter 2023, Consumer operating income was $7.0 billion, an increase of 0.1 percent year over year, and segment operating income margin was 26.1 percent, a decrease from 26.3 percent in fourth-quarter 2022. Full-year 2023 Consumer operating income was $29.0 billion, an increase of 0.6 percent year over year, and segment operating income margin was 28.5 percent, an increase from 27.9 percent in full-year 2022. Segment EBITDA 1 in fourth-quarter 2023 was $10.4 billion, an increase of 2.4 percent year over year. This improvement can be attributed to wireless service revenue growth and lower upgrade volumes. Segment EBITDA margin 1 in fourth-quarter 2023
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was 38.5 percent, an increase from 37.9 percent in fourth-quarter 2022. Full-year 2023 segment EBITDA margin 1 was 41.4 percent, an increase from 40.2 percent in 2022.
Verizon Business results
•Total Verizon Business revenue was $7.6 billion in fourth-quarter 2023, a decrease of 3.6 percent year over year as lower wireline revenue and lower wireless equipment revenue was partially offset by higher wireless service revenue. For full-year 2023, total Business revenue was $30.1 billion, a 3.1 percent decrease year over year.
•Business wireless service revenue in fourth-quarter 2023 was $3.4 billion, an increase of 3.0 percent year over year. This was driven by the larger allocation of our administration and telco recovery fees from other revenue into wireless service revenue, continued strong net additions and the benefit of pricing actions implemented earlier in the year. Full-year 2023 Business wireless service revenue was $13.4 billion, an increase of 4.1 percent compared to full-year 2022.
•Business reported 292,000 wireless retail postpaid net additions in fourth-quarter 2023, including 131,000 postpaid phone net additions. This was the 10th consecutive quarter that Business reported more than 125,000 postpaid phone net additions. Business continues to grow volumes and expand its relationships with customers strengthening its position as a wireless market share leader.
•Business wireless retail postpaid churn was 1.48 percent in fourth-quarter 2023, and wireless retail postpaid phone churn was 1.12 percent.
•Business reported 144,000 fixed wireless net additions in fourth-quarter 2023.
•In fourth-quarter 2023, Verizon Business operating income was $443 million, a decrease of 24.3 percent year over year, and segment operating income margin was 5.8 percent, a decrease from 7.4 percent in fourth-quarter 2022. Full-year 2023 segment operating income was $2.1 billion, a decrease of 21.5 percent year over year, and segment operating income margin was 6.9 percent, compared with 8.5 percent in full-year 2022. Segment EBITDA 1 in fourth-quarter 2023 was $1.6 billion, a decrease of 4.5 percent year over year, driven by continued declines in high margin wireline revenues. Segment EBITDA margin 1 in fourth-quarter 2023 was 21.1 percent, a decrease from 21.3 percent in fourth-quarter 2022. For the full year, segment EBITDA margin 1 was 21.8 percent, a decrease from 22.3 percent in 2022.
Outlook and guidance
The company does not provide a reconciliation for any of the following adjusted (non-GAAP) forecasts because it cannot, without unreasonable effort, predict the special items that could arise, and the company is unable to address the probable significance of the unavailable information.
For 2024, Verizon expects the following:
•Total wireless service revenue growth 2 of 2.0 percent to 3.5 percent.
•Adjusted EBITDA growth 1 of 1.0 percent to 3.0 percent.
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•Adjusted EPS 1 of $4.50 to $4.70.
•Capital expenditures between $17.0 billion and $17.5 billion.
•Adjusted effective income tax rate 1 in the range of 22.5 percent to 24.0 percent.
1 Non-GAAP financial measure. See the accompanying schedules and www.verizon.com/about/investors for reconciliations of non-GAAP financial measures cited in this document to most directly comparable financial measures under generally accepted accounting principles (GAAP).
2 Total wireless service revenue represents the sum of Consumer and Business segments.
Verizon Communications Inc. (NYSE, Nasdaq: VZ) was formed on June 30, 2000 and is one of the world’s leading providers of technology and communications services. Headquartered in New York City and with a presence around the world, Verizon generated revenues of $134.0 billion in 2023. The company offers data, video and voice services and solutions on its award-winning networks and platforms, delivering on customers’ demand for mobility, reliable network connectivity, security and control.
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Forward-looking statements
In this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “forecasts,” “hopes,” “intends,” “plans,” “targets” or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the “SEC”), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of competition in the markets in which we operate, including the inability to successfully respond to competitive factors such as prices, promotional incentives and evolving consumer preferences; failure to take advantage of, or respond to competitors' use of, developments in technology and address changes in consumer demand; performance issues or delays in the deployment of our 5G network resulting in significant costs or a reduction in the anticipated benefits of the enhancement to our networks; the inability to implement our business strategy; adverse conditions in the U.S. and international economies, including inflation and changing interest rates in the markets in which we operate; cyber attacks impacting our networks or systems and any resulting financial or reputational impact; damage to our infrastructure or disruption of our operations from natural disasters, extreme weather conditions, acts of war, terrorist attacks or other hostile acts and any resulting financial or reputational impact; disruption of our key suppliers’ or vendors' provisioning of products or services, including as a result of geopolitical factors or the potential impacts of global climate change; material adverse changes in labor matters and any resulting financial or operational impact; damage to our reputation or brands; the impact of public health crises on our operations, our employees and the ways in which our customers use our networks and other products and services; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; allegations regarding the release of hazardous materials or pollutants into the environment from our, or our predecessors’, network assets and any related government investigations, regulatory developments, litigation, penalties and other liability, remediation and compliance costs, operational impacts or reputational damage; our high level of indebtedness; significant litigation and any resulting material expenses incurred in defending against lawsuits or paying awards or settlements; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or regulations, or in their interpretation, or challenges to our tax positions, resulting in additional tax expense or liabilities; and changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings.
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Verizon Communications Inc.
Condensed Consolidated Statements of Income

(dollars in millions, except per share amounts)
Unaudited |  | 3 Mos. Ended 12/31/23 |  | 3 Mos. Ended 12/31/22 |  | % Change |  | 12 Mos. Ended 12/31/23 |  | 12 Mos. Ended 12/31/22 |  | % Change
Operating Revenues |  |  |  |  |  |  |  |  |  |  |  |
Service revenues and other |  | $ | 27,658 |  |  | $ | 27,626 |  |  | 0.1 |  | $ | 109,652 |  |  | $ | 109,625 |  |  | —
Wireless equipment revenues |  | 7,472 |  |  | 7,625 |  |  | (2.0) |  | 24,322 |  |  | 27,210 |  |  | (10.6)
Total Operating Revenues |  | 35,130 |  |  | 35,251 |  |  | (0.3) |  | 133,974 |  |  | 136,835 |  |  | (2.1)
Operating Expenses |  |  |  |  |  |  |  |  |  |  |  |
Cost of services |  | 6,952 |  |  | 7,185 |  |  | (3.2) |  | 28,100 |  |  | 28,637 |  |  | (1.9)
Cost of wireless equipment |  | 8,230 |  |  | 8,577 |  |  | (4.0) |  | 26,787 |  |  | 30,496 |  |  | (12.2)
Selling, general and administrative expense |  | 8,991 |  |  | 8,046 |  |  | 11.7 |  | 32,745 |  |  | 30,136 |  |  | 8.7
Depreciation and amortization expense |  | 4,516 |  |  | 4,218 |  |  | 7.1 |  | 17,624 |  |  | 17,099 |  |  | 3.1
Verizon Business Group goodwill impairment |  | 5,841 |  |  | — |  |  | * |  | 5,841 |  |  | — |  |  | *
Total Operating Expenses |  | 34,530 |  |  | 28,026 |  |  | 23.2 |  | 111,097 |  |  | 106,368 |  |  | 4.4
Operating Income |  | 600 |  |  | 7,225 |  |  | (91.7) |  | 22,877 |  |  | 30,467 |  |  | (24.9)
Equity in earnings (losses) of unconsolidated businesses |  | (11) |  |  | 4 |  |  | * |  | (53) |  |  | 44 |  |  | *
Other income (expense), net |  | (807) |  |  | 2,687 |  |  | * |  | (313) |  |  | 1,373 |  |  | *
Interest expense |  | (1,599) |  |  | (1,105) |  |  | 44.7 |  | (5,524) |  |  | (3,613) |  |  | 52.9
Income (Loss) Before Provision For Income Taxes |  | (1,817) |  |  | 8,811 |  |  | * |  | 16,987 |  |  | 28,271 |  |  | (39.9)
Provision for income taxes |  | (756) |  |  | (2,113) |  |  | (64.2) |  | (4,892) |  |  | (6,523) |  |  | (25.0)
Net Income (Loss) |  | $ | (2,573) |  |  | $ | 6,698 |  |  | * |  | $ | 12,095 |  |  | $ | 21,748 |  |  | (44.4)
Net income attributable to noncontrolling interests |  | $ | 132 |  |  | $ | 121 |  |  | 9.1 |  | $ | 481 |  |  | $ | 492 |  |  | (2.2)
Net income (loss) attributable to Verizon |  | (2,705) |  |  | 6,577 |  |  | * |  | 11,614 |  |  | 21,256 |  |  | (45.4)
Net Income (Loss) |  | $ | (2,573) |  |  | $ | 6,698 |  |  | * |  | $ | 12,095 |  |  | $ | 21,748 |  |  | (44.4)
Basic Earnings Per Common Share |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Verizon |  | $ | (0.64) |  |  | $ | 1.56 |  |  | * |  | $ | 2.76 |  |  | $ | 5.06 |  |  | (45.5)
Weighted-average shares outstanding (in millions) |  | 4,214 |  |  | 4,204 |  |  |  |  | 4,211 |  |  | 4,202 |  |  |
Diluted Earnings Per Common Share (1) |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Verizon |  | $ | (0.64) |  |  | $ | 1.56 |  |  | * |  | $ | 2.75 |  |  | $ | 5.06 |  |  | (45.7)
Weighted-average shares outstanding (in millions) |  | 4,214 |  |  | 4,207 |  |  |  |  | 4,215 |  |  | 4,204 |  |  |

Footnotes:
(1)Where applicable, Diluted Earnings per Common Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represents the only potential dilution.
*Not meaningful

Verizon Communications Inc.
Condensed Consolidated Balance Sheets

(dollars in millions)
Unaudited |  | 12/31/23 |  | 12/31/22 |  | $ Change
Assets |  |  |  |  |  |
Current assets |  |  |  |  |  |
Cash and cash equivalents |  | $ | 2,065 |  |  | $ | 2,605 |  |  | $ | (540) |
Accounts receivable |  | 26,102 |  |  | 25,332 |  |  | 770 |
Less Allowance for credit losses |  | 1,017 |  |  | 826 |  |  | 191 |
Accounts receivable, net |  | 25,085 |  |  | 24,506 |  |  | 579 |
Inventories |  | 2,057 |  |  | 2,388 |  |  | (331) |
Prepaid expenses and other |  | 7,607 |  |  | 8,358 |  |  | (751) |
Total current assets |  | 36,814 |  |  | 37,857 |  |  | (1,043) |
Property, plant and equipment |  | 320,108 |  |  | 307,689 |  |  | 12,419 |
Less Accumulated depreciation |  | 211,798 |  |  | 200,255 |  |  | 11,543 |
Property, plant and equipment, net |  | 108,310 |  |  | 107,434 |  |  | 876 |
Investments in unconsolidated businesses |  | 953 |  |  | 1,071 |  |  | (118) |
Wireless licenses |  | 155,667 |  |  | 149,796 |  |  | 5,871 |
Goodwill |  | 22,843 |  |  | 28,671 |  |  | (5,828) |
Other intangible assets, net |  | 11,057 |  |  | 11,461 |  |  | (404) |
Operating lease right-of-use assets |  | 24,726 |  |  | 26,130 |  |  | (1,404) |
Other assets |  | 19,885 |  |  | 17,260 |  |  | 2,625 |
Total assets |  | $ | 380,255 |  |  | $ | 379,680 |  |  | $ | 575 |
Liabilities and Equity |  |  |  |  |  |
Current liabilities |  |  |  |  |  |
Debt maturing within one year |  | $ | 12,973 |  |  | $ | 9,963 |  |  | $ | 3,010 |
Accounts payable and accrued liabilities |  | 23,453 |  |  | 23,977 |  |  | (524) |
Current operating lease liabilities |  | 4,266 |  |  | 4,134 |  |  | 132 |
Other current liabilities |  | 12,531 |  |  | 12,097 |  |  | 434 |
Total current liabilities |  | 53,223 |  |  | 50,171 |  |  | 3,052 |
Long-term debt |  | 137,701 |  |  | 140,676 |  |  | (2,975) |
Employee benefit obligations |  | 13,189 |  |  | 12,974 |  |  | 215 |
Deferred income taxes |  | 45,781 |  |  | 43,441 |  |  | 2,340 |
Non-current operating lease liabilities |  | 20,002 |  |  | 21,558 |  |  | (1,556) |
Other liabilities |  | 16,560 |  |  | 18,397 |  |  | (1,837) |
Total long-term liabilities |  | 233,233 |  |  | 237,046 |  |  | (3,813) |
Equity |  |  |  |  |  |
Common stock |  | 429 |  |  | 429 |  |  | — |
Additional paid in capital |  | 13,631 |  |  | 13,420 |  |  | 211 |
Retained earnings |  | 82,915 |  |  | 82,380 |  |  | 535 |
Accumulated other comprehensive loss |  | (1,380) |  |  | (1,865) |  |  | 485 |
Common stock in treasury, at cost |  | (3,821) |  |  | (4,013) |  |  | 192 |
Deferred compensation – employee stock ownership plans and other |  | 656 |  |  | 793 |  |  | (137) |
Noncontrolling interests |  | 1,369 |  |  | 1,319 |  |  | 50 |
Total equity |  | 93,799 |  |  | 92,463 |  |  | 1,336 |
Total liabilities and equity |  | $ | 380,255 |  |  | $ | 379,680 |  |  | $ | 575 |

Verizon Communications Inc.
Consolidated - Selected Financial and Operating Statistics

(dollars in millions, except per share amounts) |  |  |  |
Unaudited |  | 12/31/23 |  | 12/31/22 |  |  |  |
Total debt |  | $ | 150,674 |  |  | $ | 150,639 |  |  |  |  |
Unsecured debt |  | $ | 128,491 |  |  | $ | 130,631 |  |  |  |  |
Net unsecured debt(1) |  | $ | 126,426 |  |  | $ | 128,026 |  |  |  |  |
Unsecured debt / Consolidated Net Income (LTM) |  | 10.6 | x |  | 6.0 | x |  |  |  |
Net unsecured debt / Consolidated Adjusted EBITDA(1)(2) |  | 2.6 | x |  | 2.7 | x |  |  |  |
Common shares outstanding end of period (in millions) |  | 4,204 |  |  | 4,200 |  |  |  |  |
Total employees (‘000) |  | 105.4 |  |  | 117.1 |  |  |  |  |
Quarterly cash dividends declared per common share |  | $ | 0.6650 |  |  | $ | 0.6525 |  |  |  |  |

Footnotes:
(1)Non-GAAP financial measure.
(2)Consolidated Adjusted EBITDA excludes the effects of non-operational items and special items.

Verizon Communications Inc.
Condensed Consolidated Statements of Cash Flows

(dollars in millions)
Unaudited |  | 12 Mos. Ended 12/31/23 |  | 12 Mos. Ended 12/31/22 |  | $ Change
Cash Flows from Operating Activities |  |  |  |  |  |
Net Income |  | $ | 12,095 |  |  | $ | 21,748 |  |  | $ | (9,653) |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |
Depreciation and amortization expense |  | 17,624 |  |  | 17,099 |  |  | 525 |
Employee retirement benefits |  | 1,206 |  |  | (2,046) |  |  | 3,252 |
Deferred income taxes |  | 2,388 |  |  | 2,973 |  |  | (585) |
Provision for expected credit losses |  | 2,214 |  |  | 1,611 |  |  | 603 |
Equity in losses (earnings) of unconsolidated businesses, net of dividends received |  | 84 |  |  | (10) |  |  | 94 |
Verizon Business Group goodwill impairment |  | 5,841 |  |  | — |  |  | 5,841 |
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses |  | (267) |  |  | (456) |  |  | 189 |
Other, net |  | (3,710) |  |  | (3,778) |  |  | 68 |
Net cash provided by operating activities |  | 37,475 |  |  | 37,141 |  |  | 334 |
Cash Flows from Investing Activities |  |  |  |  |  |
Capital expenditures (including capitalized software) |  | (18,767) |  |  | (23,087) |  |  | 4,320 |
Cash received (paid) related to acquisitions of businesses, net of cash acquired |  | (30) |  |  | 248 |  |  | (278) |
Acquisitions of wireless licenses |  | (5,796) |  |  | (3,653) |  |  | (2,143) |
Collateral receipts (payments) related to derivative contracts, net |  | 880 |  |  | (2,265) |  |  | 3,145 |
Proceeds from disposition of business |  | — |  |  | 33 |  |  | (33) |
Other, net |  | 281 |  |  | 62 |  |  | 219 |
Net cash used in investing activities |  | (23,432) |  |  | (28,662) |  |  | 5,230 |
Cash Flows from Financing Activities |  |  |  |  |  |
Proceeds from long-term borrowings |  | 2,018 |  |  | 7,074 |  |  | (5,056) |
Proceeds from asset-backed long-term borrowings |  | 6,594 |  |  | 10,732 |  |  | (4,138) |
Net proceeds from (repayments of) short-term commercial paper |  | (150) |  |  | 106 |  |  | (256) |
Repayments of long-term borrowings and finance lease obligations |  | (6,181) |  |  | (8,616) |  |  | 2,435 |
Repayments of asset-backed long-term borrowings |  | (4,443) |  |  | (4,948) |  |  | 505 |
Dividends paid |  | (11,025) |  |  | (10,805) |  |  | (220) |
Other, net |  | (1,470) |  |  | (2,072) |  |  | 602 |
Net cash used in financing activities |  | (14,657) |  |  | (8,529) |  |  | (6,128) |
Decrease in cash, cash equivalents and restricted cash |  | (614) |  |  | (50) |  |  | (564) |
Cash, cash equivalents and restricted cash, beginning of period |  | 4,111 |  |  | 4,161 |  |  | (50) |
Cash, cash equivalents and restricted cash, end of period |  | $ | 3,497 |  |  | $ | 4,111 |  |  | $ | (614) |

Verizon Communications Inc.
Consumer - Selected Financial Results

(dollars in millions)
Unaudited |  | 3 Mos. Ended 12/31/23 |  | 3 Mos. Ended 12/31/22 |  | % Change |  | 12 Mos. Ended 12/31/23 |  | 12 Mos. Ended 12/31/22 |  | % Change
Operating Revenues |  |  |  |  |  |  |  |  |  |  |  |
Service |  | $ | 18,927 |  |  | $ | 18,443 |  |  | 2.6 |  | $ | 74,874 |  |  | $ | 73,139 |  |  | 2.4
Wireless equipment |  | 6,435 |  |  | 6,528 |  |  | (1.4) |  | 20,645 |  |  | 23,168 |  |  | (10.9)
Other |  | 1,592 |  |  | 1,799 |  |  | (11.5) |  | 6,107 |  |  | 7,199 |  |  | (15.2)
Total Operating Revenues |  | 26,954 |  |  | 26,770 |  |  | 0.7 |  | 101,626 |  |  | 103,506 |  |  | (1.8)
Operating Expenses |  |  |  |  |  |  |  |  |  |  |  |
Cost of services |  | 4,362 |  |  | 4,450 |  |  | (2.0) |  | 17,580 |  |  | 17,746 |  |  | (0.9)
Cost of wireless equipment |  | 6,877 |  |  | 7,137 |  |  | (3.6) |  | 21,827 |  |  | 25,134 |  |  | (13.2)
Selling, general and administrative expense |  | 5,336 |  |  | 5,044 |  |  | 5.8 |  | 20,131 |  |  | 19,064 |  |  | 5.6
Depreciation and amortization expense |  | 3,344 |  |  | 3,111 |  |  | 7.5 |  | 13,077 |  |  | 12,716 |  |  | 2.8
Total Operating Expenses |  | 19,919 |  |  | 19,742 |  |  | 0.9 |  | 72,615 |  |  | 74,660 |  |  | (2.7)
Operating Income |  | $ | 7,035 |  |  | $ | 7,028 |  |  | 0.1 |  | $ | 29,011 |  |  | $ | 28,846 |  |  | 0.6
Operating Income Margin |  | 26.1 | % |  | 26.3 | % |  |  |  | 28.5 | % |  | 27.9 | % |  |
Segment EBITDA(1) |  | $ | 10,379 |  |  | $ | 10,139 |  |  | 2.4 |  | $ | 42,088 |  |  | $ | 41,562 |  |  | 1.3
Segment EBITDA Margin(1) |  | 38.5 | % |  | 37.9 | % |  |  |  | 41.4 | % |  | 40.2 | % |  |

Footnotes:
(1) Non-GAAP 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 Company’s chief operating decision maker does not consider in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.

Verizon Communications Inc.
Consumer - Selected Operating Statistics

Unaudited |  |  |  |  |  |  |  | 12/31/23 |  | 12/31/22 |  | % Change
Connections (‘000): |  |  |  |  |  |  |  |  |  |  |  |
Wireless retail postpaid |  |  |  |  |  |  |  | 93,850 |  |  | 91,856 |  |  | 2.2
Wireless retail prepaid |  |  |  |  |  |  |  | 21,122 |  |  | 22,664 |  |  | (6.8)
Total wireless retail |  |  |  |  |  |  |  | 114,972 |  |  | 114,520 |  |  | 0.4
Wireless retail postpaid phones |  |  |  |  |  |  |  | 74,720 |  |  | 74,857 |  |  | (0.2)
Fios video |  |  |  |  |  |  |  | 2,951 |  |  | 3,234 |  |  | (8.8)
Fios internet |  |  |  |  |  |  |  | 6,976 |  |  | 6,740 |  |  | 3.5
Fixed wireless access (FWA) broadband |  |  |  |  |  |  |  | 1,866 |  |  | 884 |  |  | *
Wireline broadband |  |  |  |  |  |  |  | 7,190 |  |  | 7,016 |  |  | 2.5
Total broadband |  |  |  |  |  |  |  | 9,056 |  |  | 7,900 |  |  | 14.6
Unaudited |  | 3 Mos. Ended 12/31/23 |  | 3 Mos. Ended 12/31/22 |  | % Change |  | 12 Mos. Ended 12/31/23 |  | 12 Mos. Ended 12/31/22 |  | % Change
Gross Additions (‘000): |  |  |  |  |  |  |  |  |  |  |  |
Wireless retail postpaid |  | 4,185 |  |  | 3,889 |  |  | 7.6 |  | 13,475 |  |  | 12,037 |  |  | 11.9
Net Additions Detail (‘000): |  |  |  |  |  |  |  |  |  |  |  |
Wireless retail postpaid |  | 1,168 |  |  | 979 |  |  | 19.3 |  | 2,044 |  |  | 965 |  |  | *
Wireless retail prepaid |  | (289) |  |  | (175) |  |  | (65.1) |  | (1,151) |  |  | (445) |  |  | *
Total wireless retail |  | 879 |  |  | 804 |  |  | 9.3 |  | 893 |  |  | 520 |  |  | 71.7
Wireless retail postpaid phones |  | 318 |  |  | 41 |  |  | * |  | (132) |  |  | (655) |  |  | 79.8
Fios video |  | (62) |  |  | (80) |  |  | 22.5 |  | (283) |  |  | (339) |  |  | 16.5
Fios internet |  | 53 |  |  | 56 |  |  | (5.4) |  | 236 |  |  | 199 |  |  | 18.6
FWA broadband |  | 231 |  |  | 262 |  |  | (11.8) |  | 989 |  |  | 776 |  |  | 27.4
Wireline broadband |  | 39 |  |  | 40 |  |  | (2.5) |  | 174 |  |  | 128 |  |  | 35.9
Total broadband |  | 270 |  |  | 302 |  |  | (10.6) |  | 1,163 |  |  | 904 |  |  | 28.7
Churn Rate: |  |  |  |  |  |  |  |  |  |  |  |
Wireless retail postpaid |  | 1.08 | % |  | 1.06 | % |  |  |  | 1.03 | % |  | 1.01 | % |  |
Wireless retail postpaid phones |  | 0.88 | % |  | 0.86 | % |  |  |  | 0.83 | % |  | 0.81 | % |  |
Wireless retail prepaid |  | 4.55 | % |  | 4.90 | % |  |  |  | 4.37 | % |  | 4.09 | % |  |
Wireless retail |  | 1.73 | % |  | 1.83 | % |  |  |  | 1.67 | % |  | 1.63 | % |  |
Revenue Statistics (in millions): |  |  |  |  |  |  |  |  |  |  |  |
Wireless service revenue |  | $ | 16,034 |  |  | $ | 15,539 |  |  | 3.2 |  | $ | 63,358 |  |  | $ | 61,509 |  |  | 3.0
Fios revenues |  | $ | 2,942 |  |  | $ | 2,914 |  |  | 1.0 |  | $ | 11,614 |  |  | $ | 11,622 |  |  | (0.1)

Verizon Communications Inc.
Consumer - Selected Operating Statistics (continued)

Unaudited |  | 3 Mos. Ended 12/31/23 |  | 3 Mos. Ended 12/31/22 |  | % Change |  | 12 Mos. Ended 12/31/23 |  | 12 Mos. Ended 12/31/22 |  | % Change
Other Wireless Statistics: |  |  |  |  |  |  |  |  |  |  |  |
Wireless retail postpaid ARPA (1) |  | $ | 134.10 |  |  | $ | 128.02 |  |  | 4.7 |  | $ | 132.36 |  |  | $ | 125.97 |  |  | 5.1
Wireless retail postpaid upgrade rate |  | 4.4 | % |  | 5.6 | % |  |  |  |  |  |  |  |
Wireless retail postpaid accounts (‘000) (2) |  |  |  |  |  |  |  | 32,990 |  |  | 33,183 |  |  | (0.6)
Wireless retail postpaid connections per account (2) |  |  |  |  |  |  |  | 2.84 |  |  | 2.77 |  |  | 2.5
Wireless retail prepaid ARPU (3) |  | $ | 31.87 |  |  | $ | 31.53 |  |  | 1.1 |  | $ | 31.46 |  |  | $ | 31.21 |  |  | 0.8

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.
Where 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 transactions with corporate entities have not been eliminated.
* Not meaningful

Verizon Communications Inc.
Business - Selected Financial Results

(dollars in millions)
Unaudited |  | 3 Mos. Ended 12/31/23 |  | 3 Mos. Ended 12/31/22 |  | % Change |  | 12 Mos. Ended 12/31/23 |  | 12 Mos. Ended 12/31/22 |  | % Change
Operating Revenues |  |  |  |  |  |  |  |  |  |  |  |
Enterprise and Public Sector |  | $ | 3,718 |  |  | $ | 3,908 |  |  | (4.9) |  | $ | 15,076 |  |  | $ | 15,693 |  |  | (3.9)
Business Markets and Other |  | 3,318 |  |  | 3,330 |  |  | (0.4) |  | 12,715 |  |  | 12,772 |  |  | (0.4)
Wholesale |  | 582 |  |  | 662 |  |  | (12.1) |  | 2,331 |  |  | 2,607 |  |  | (10.6)
Total Operating Revenues |  | 7,618 |  |  | 7,900 |  |  | (3.6) |  | 30,122 |  |  | 31,072 |  |  | (3.1)
Operating Expenses |  |  |  |  |  |  |  |  |  |  |  |
Cost of services |  | 2,519 |  |  | 2,665 |  |  | (5.5) |  | 10,180 |  |  | 10,483 |  |  | (2.9)
Cost of wireless equipment |  | 1,353 |  |  | 1,440 |  |  | (6.0) |  | 4,959 |  |  | 5,362 |  |  | (7.5)
Selling, general and administrative expense |  | 2,139 |  |  | 2,112 |  |  | 1.3 |  | 8,429 |  |  | 8,284 |  |  | 1.8
Depreciation and amortization expense |  | 1,164 |  |  | 1,098 |  |  | 6.0 |  | 4,488 |  |  | 4,312 |  |  | 4.1
Total Operating Expenses |  | 7,175 |  |  | 7,315 |  |  | (1.9) |  | 28,056 |  |  | 28,441 |  |  | (1.4)
Operating Income |  | $ | 443 |  |  | $ | 585 |  |  | (24.3) |  | $ | 2,066 |  |  | $ | 2,631 |  |  | (21.5)
Operating Income Margin |  | 5.8 | % |  | 7.4 | % |  |  |  | 6.9 | % |  | 8.5 | % |  |
Segment EBITDA(1) |  | $ | 1,607 |  |  | $ | 1,683 |  |  | (4.5) |  | $ | 6,554 |  |  | $ | 6,943 |  |  | (5.6)
Segment EBITDA Margin(1) |  | 21.1 | % |  | 21.3 | % |  |  |  | 21.8 | % |  | 22.3 | % |  |

Footnotes:
(1) Non-GAAP financial measure.
Our Business segment’s wireless and wireline products and services are organized by the primary customer groups targeted by these 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 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 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 customers 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 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 Company’s chief operating decision maker does not consider in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.

Verizon Communications Inc.
Business - Selected Operating Statistics

Unaudited |  |  |  |  |  |  |  | 12/31/23 |  | 12/31/22 |  | % Change
Connections (‘000): |  |  |  |  |  |  |  |  |  |  |  |
Wireless retail postpaid |  |  |  |  |  |  |  | 29,779 |  |  | 28,733 |  |  | 3.6
Wireless retail postpaid phones |  |  |  |  |  |  |  | 18,170 |  |  | 17,782 |  |  | 2.2
Fios video |  |  |  |  |  |  |  | 61 |  |  | 67 |  |  | (9.0)
Fios internet |  |  |  |  |  |  |  | 385 |  |  | 373 |  |  | 3.2
FWA broadband |  |  |  |  |  |  |  | 1,201 |  |  | 568 |  |  | *
Wireline broadband |  |  |  |  |  |  |  | 460 |  |  | 468 |  |  | (1.7)
Total broadband |  |  |  |  |  |  |  | 1,661 |  |  | 1,036 |  |  | 60.3
Unaudited |  | 3 Mos. Ended 12/31/23 |  | 3 Mos. Ended 12/31/22 |  | % Change |  | 12 Mos. Ended 12/31/23 |  | 12 Mos. Ended 12/31/22 |  | % Change
Gross Additions (‘000): |  |  |  |  |  |  |  |  |  |  |  |
Wireless retail postpaid |  | 1,605 |  |  | 1,644 |  |  | (2.4) |  | 6,420 |  |  | 6,294 |  |  | 2.0
Net Additions Detail (‘000): |  |  |  |  |  |  |  |  |  |  |  |
Wireless retail postpaid |  | 292 |  |  | 455 |  |  | (35.8) |  | 1,242 |  |  | 1,640 |  |  | (24.3)
Wireless retail postpaid phones |  | 131 |  |  | 176 |  |  | (25.6) |  | 562 |  |  | 856 |  |  | (34.3)
Fios video |  | (2) |  |  | (2) |  |  | — |  | (6) |  |  | (4) |  |  | (50.0)
Fios internet |  | 2 |  |  | 3 |  |  | (33.3) |  | 12 |  |  | 17 |  |  | (29.4)
FWA broadband |  | 144 |  |  | 117 |  |  | 23.1 |  | 547 |  |  | 395 |  |  | 38.5
Wireline broadband |  | (1) |  |  | (3) |  |  | 66.7 |  | (8) |  |  | (9) |  |  | 11.1
Total broadband |  | 143 |  |  | 114 |  |  | 25.4 |  | 539 |  |  | 386 |  |  | 39.6
Churn Rate: |  |  |  |  |  |  |  |  |  |  |  |
Wireless retail postpaid |  | 1.48 | % |  | 1.38 | % |  |  |  | 1.48 | % |  | 1.38 | % |  |
Wireless retail postpaid phones |  | 1.12 | % |  | 1.06 | % |  |  |  | 1.13 | % |  | 1.07 | % |  |
Revenue Statistics (in millions): |  |  |  |  |  |  |  |  |  |  |  |
Wireless service revenue |  | $ | 3,364 |  |  | $ | 3,265 |  |  | 3.0 |  | $ | 13,372 |  |  | $ | 12,845 |  |  | 4.1
Fios revenues |  | $ | 312 |  |  | $ | 304 |  |  | 2.6 |  | $ | 1,235 |  |  | $ | 1,201 |  |  | 2.8
Other Operating Statistics: |  |  |  |  |  |  |  |  |  |  |  |
Wireless retail postpaid upgrade rate |  | 3.1 | % |  | 3.6 | % |  |  |  |  |  |  |  |

Footnotes:
Where 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 transactions with corporate entities have not been eliminated.
*Not meaningful

Verizon Communications Inc.
Supplemental Information - Total Wireless Operating and Financial Statistics
The following supplemental schedule contains certain financial and operating metrics which reflect an aggregation of our Consumer and Business segments’ wireless results.

Unaudited |  | 12/31/23 |  | 12/31/22 |  | % Change
Connections (‘000) |  |  |  |  |  |  |  |  |  |  |  |
Retail postpaid |  |  |  |  |  |  |  | 123,629 |  |  | 120,589 |  |  | 2.5
Retail prepaid |  |  |  |  |  |  |  | 21,122 |  |  | 22,664 |  |  | (6.8)
Total retail |  |  |  |  |  |  |  | 144,751 |  |  | 143,253 |  |  | 1.0
Retail postpaid phones |  |  |  |  |  |  |  | 92,890 |  |  | 92,639 |  |  | 0.3
Unaudited |  | 3 Mos. Ended 12/31/23 |  | 3 Mos. Ended 12/31/22 |  | % Change |  | 12 Mos. Ended 12/31/23 |  | 12 Mos. Ended 12/31/22 |  | % Change
Net Additions Detail (‘000) |  |  |  |  |  |  |  |  |  |  |  |
Retail postpaid phones |  | 449 |  |  | 217 |  |  | * |  | 430 |  |  | 201 |  |  | *
Retail postpaid |  | 1,460 |  |  | 1,434 |  |  | 1.8 |  | 3,286 |  |  | 2,605 |  |  | 26.1
Retail prepaid |  | (289) |  |  | (175) |  |  | (65.1) |  | (1,151) |  |  | (445) |  |  | *
Total retail |  | 1,171 |  |  | 1,259 |  |  | (7.0) |  | 2,135 |  |  | 2,160 |  |  | (1.2)
Account Statistics |  |  |  |  |  |  |  |  |  |  |  |
Retail postpaid accounts (‘000) (1) |  |  |  |  |  |  |  | 34,958 |  |  | 35,002 |  |  | (0.1)
Retail postpaid connections per account (1) |  |  |  |  |  |  |  | 3.54 |  |  | 3.45 |  |  | 2.6
Retail postpaid ARPA (2) |  | $ | 156.48 |  |  | $ | 149.95 |  |  | 4.4 |  | $ | 154.84 |  |  | $ | 147.53 |  |  | 5.0
Retail prepaid ARPU (3) |  | $ | 31.87 |  |  | $ | 31.53 |  |  | 1.1 |  | $ | 31.46 |  |  | $ | 31.21 |  |  | 0.8
Churn Detail |  |  |  |  |  |  |  |  |  |  |  |
Retail postpaid phone |  | 0.93 | % |  | 0.89 | % |  |  |  | 0.89 | % |  | 0.86 | % |  |
Retail postpaid |  | 1.18 | % |  | 1.14 | % |  |  |  | 1.14 | % |  | 1.10 | % |  |
Retail prepaid |  | 4.55 | % |  | 4.90 | % |  |  |  | 4.37 | % |  | 4.09 | % |  |
Retail |  | 1.67 | % |  | 1.74 | % |  |  |  | 1.63 | % |  | 1.58 | % |  |
Retail Postpaid Connection Statistics |  |  |  |  |  |  |  |  |  |  |  |
Upgrade rate |  | 4.1 | % |  | 5.1 | % |  |  |  |  |  |  |  |
Revenue Statistics (in millions) (4) |  |  |  |  |  |  |  |  |  |  |  |
Wireless service |  | $ | 19,398 |  |  | $ | 18,804 |  |  | 3.2 |  | $ | 76,730 |  |  | $ | 74,354 |  |  | 3.2
Wireless equipment |  | 7,472 |  |  | 7,625 |  |  | (2.0) |  | 24,322 |  |  | 27,210 |  |  | (10.6)
Wireless other |  | 1,575 |  |  | 1,851 |  |  | (14.9) |  | 6,083 |  |  | 7,391 |  |  | (17.7)
Total Wireless |  | $ | 28,445 |  |  | $ | 28,280 |  |  | 0.6 |  | $ | 107,135 |  |  | $ | 108,955 |  |  | (1.7)

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 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 network shutdowns, migration activity among different types of devices and plans, customer profile changes, and adjustments in connection with mergers, acquisitions and divestitures.
*Not meaningful

Verizon Communications Inc.
Non-GAAP Reconciliations - Consolidated Verizon

Consolidated EBITDA and Consolidated Adjusted EBITDA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(dollars in millions)
Unaudited |  |  |  |  |  | 3 Mos. Ended 12/31/23 |  | 3 Mos. Ended 9/30/23 |  | 3 Mos. Ended 6/30/23 |  | 3 Mos. Ended 3/31/23 |  |  |  |  |  | 3 Mos. Ended 12/31/22 |  | 3 Mos. Ended 9/30/22 |  | 3 Mos. Ended 6/30/22 |  | 3 Mos. Ended 3/31/22
Consolidated Net Income (Loss) |  |  |  |  |  | $ | (2,573) |  |  | $ | 4,884 |  |  | $ | 4,766 |  |  | $ | 5,018 |  |  |  |  |  |  | $ | 6,698 |  |  | $ | 5,024 |  |  | $ | 5,315 |  |  | $ | 4,711 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Provision for income taxes |  |  |  |  |  | 756 |  |  | 1,308 |  |  | 1,346 |  |  | 1,482 |  |  |  |  |  |  | 2,113 |  |  | 1,496 |  |  | 1,542 |  |  | 1,372 |
Interest expense |  |  |  |  |  | 1,599 |  |  | 1,433 |  |  | 1,285 |  |  | 1,207 |  |  |  |  |  |  | 1,105 |  |  | 937 |  |  | 785 |  |  | 786 |
Depreciation and amortization expense (1) |  |  |  |  |  | 4,516 |  |  | 4,431 |  |  | 4,359 |  |  | 4,318 |  |  |  |  |  |  | 4,218 |  |  | 4,324 |  |  | 4,321 |  |  | 4,236 |
Consolidated EBITDA |  |  |  |  |  | $ | 4,298 |  |  | $ | 12,056 |  |  | $ | 11,756 |  |  | $ | 12,025 |  |  |  |  |  |  | $ | 14,134 |  |  | $ | 11,781 |  |  | $ | 11,963 |  |  | $ | 11,105 |
Add/(subtract): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other (income) expense, net (2) |  |  |  |  |  | $ | 807 |  |  | $ | (170) |  |  | $ | (210) |  |  | $ | (114) |  |  |  |  |  |  | $ | (2,687) |  |  | $ | 439 |  |  | $ | (49) |  |  | $ | 924 |
Equity in losses (earnings) of unconsolidated businesses |  |  |  |  |  | 11 |  |  | 18 |  |  | 33 |  |  | (9) |  |  |  |  |  |  | (4) |  |  | (2) |  |  | (41) |  |  | 3 |
Severance charges |  |  |  |  |  | 296 |  |  | — |  |  | 237 |  |  | — |  |  |  |  |  |  | 304 |  |  | — |  |  | — |  |  | — |
Verizon Business Group goodwill impairment |  |  |  |  |  | 5,841 |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |
Asset rationalization |  |  |  |  |  | 325 |  |  | — |  |  | 155 |  |  | — |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |
Legal settlement |  |  |  |  |  | 100 |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |
Business transformation costs |  |  |  |  |  | — |  |  | 176 |  |  | — |  |  | — |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |
Non-strategic business shutdown |  |  |  |  |  | — |  |  | 158 |  |  | — |  |  | — |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |
|  |  |  |  |  | 7,380 |  |  | 182 |  |  | 215 |  |  | (123) |  |  |  |  |  |  | (2,387) |  |  | 437 |  |  | (90) |  |  | 927 |
Consolidated Adjusted EBITDA |  |  |  |  |  | $ | 11,678 |  |  | $ | 12,238 |  |  | $ | 11,971 |  |  | $ | 11,902 |  |  |  |  |  |  | $ | 11,747 |  |  | $ | 12,218 |  |  | $ | 11,873 |  |  | $ | 12,032 |
Consolidated Adjusted EBITDA - Year over year change % |  |  |  |  |  | (0.6) | % |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Footnotes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(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. |  |  |  |  |  |

Verizon Communications Inc.

Consolidated EBITDA and Consolidated Adjusted EBITDA (LTM) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaudited |  | 12 Mos. Ended 12/31/23 |  | 12 Mos. Ended 9/30/23 |  |  |  |  |  | 12 Mos. Ended 12/31/22 |  |  |  |  |  |  |  |  |  |  |  |
Consolidated Net Income |  | $ | 12,095 |  |  | $ | 21,366 |  |  |  |  |  |  | $ | 21,748 |  |  |  |  |  |  |  |  |  |  |  |  |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Provision for income taxes |  | 4,892 |  |  | 6,249 |  |  |  |  |  |  | 6,523 |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  | 5,524 |  |  | 5,030 |  |  |  |  |  |  | 3,613 |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization expense (1) |  | 17,624 |  |  | 17,326 |  |  |  |  |  |  | 17,099 |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated EBITDA |  | $ | 40,135 |  |  | $ | 49,971 |  |  |  |  |  |  | $ | 48,983 |  |  |  |  |  |  |  |  |  |  |  |  |
Add/(subtract): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other (income) expense, net (2) |  | $ | 313 |  |  | $ | (3,181) |  |  |  |  |  |  | $ | (1,373) |  |  |  |  |  |  |  |  |  |  |  |  |
Equity in losses (earnings) of unconsolidated businesses |  | 53 |  |  | 38 |  |  |  |  |  |  | (44) |  |  |  |  |  |  |  |  |  |  |  |  |
Severance charges |  | 533 |  |  | 541 |  |  |  |  |  |  | 304 |  |  |  |  |  |  |  |  |  |  |  |  |
Verizon Business Group goodwill impairment |  | 5,841 |  |  | — |  |  |  |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  |  |
Asset rationalization |  | 480 |  |  | 155 |  |  |  |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  |  |
Legal settlement |  | 100 |  |  | — |  |  |  |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  |  |
Business transformation costs |  | 176 |  |  | 176 |  |  |  |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  |  |
Non-strategic business shutdown |  | 158 |  |  | 158 |  |  |  |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 7,654 |  |  | (2,113) |  |  |  |  |  |  | (1,113) |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated Adjusted EBITDA |  | $ | 47,789 |  |  | $ | 47,858 |  |  |  |  |  |  | $ | 47,870 |  |  |  |  |  |  |  |  |  |  |  |  |
Footnotes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(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. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio |  |  |  |  |  |  |  |
(dollars in millions)
Unaudited |  | 12/31/23 |  | 9/30/23 |  |  |  | 12/31/22 |  |
Debt maturing within one year |  | $ | 12,973 |  |  | $ | 12,950 |  |  |  |  | $ | 9,963 |  |  |
Long-term debt |  | 137,701 |  |  | 134,441 |  |  |  |  | 140,676 |  |  |
Total Debt |  | 150,674 |  |  | 147,391 |  |  |  |  | 150,639 |  |  |
Less Secured debt |  | 22,183 |  |  | 20,951 |  |  |  |  | 20,008 |  |  |
Unsecured Debt |  | 128,491 |  |  | 126,440 |  |  |  |  | 130,631 |  |  |
Less Cash and cash equivalents |  | 2,065 |  |  | 4,210 |  |  |  |  | 2,605 |  |  |
Net Unsecured Debt |  | $ | 126,426 |  |  | $ | 122,230 |  |  |  |  | $ | 128,026 |  |  |
Consolidated Net Income (LTM) |  | $ | 12,095 |  |  |  |  |  |  | $ | 21,748 |  |  |
Unsecured Debt to Consolidated Net Income Ratio |  | 10.6 | x |  |  |  |  |  | 6.0 | x |  |
Consolidated Adjusted EBITDA (LTM) |  | $ | 47,789 |  |  |  |  |  |  | $ | 47,870 |  |  |
Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio |  | 2.6 | x |  |  |  |  |  | 2.7 | x |  |
Net Unsecured Debt - Quarter over quarter change |  | $ | 4,196 |  |  |  |  |  |  |  |  |
Net Unsecured Debt - Year over year change |  | $ | (1,600) |  |  |  |  |  |  |  |  |

Verizon Communications Inc.

Adjusted Earnings per Common Share (Adjusted EPS) |  |  |  |  |  |  |  |
(dollars in millions, except per share amounts)
Unaudited |  | 3 Mos. Ended 12/31/23 |  | 3 Mos. Ended 12/31/22
|  | Pre-tax | Tax | After-Tax |  |  | Pre-tax | Tax | After-Tax |
EPS |  |  |  |  | $ | (0.64) |  |  |  |  |  | $ | 1.56 |
Amortization of acquisition-related intangible assets |  | $ | 227 |  | $ | (57) |  | $ | 170 |  | 0.04 |  |  | $ | 115 |  | $ | (34) |  | $ | 81 |  | 0.02 |
Severance, pension and benefits charges (credits) |  | 1,288 |  | (319) |  | 969 |  | 0.23 |  |  | (2,214) |  | 552 |  | (1,662) |  | (0.40) |
Verizon Business Group goodwill impairment |  | 5,841 |  | (52) |  | 5,789 |  | 1.37 |  |  | — |  | — |  | — |  | — |
Asset rationalization |  | 325 |  | (80) |  | 245 |  | 0.06 |  |  | — |  | — |  | — |  | — |
Legal settlement |  | 100 |  | (25) |  | 75 |  | 0.02 |  |  | — |  | — |  | — |  | — |
|  | $ | 7,781 |  | $ | (533) |  | $ | 7,248 |  | $ | 1.72 |  |  | $ | (2,099) |  | $ | 518 |  | $ | (1,581) |  | $ | (0.38) |
Adjusted EPS |  |  |  |  | $ | 1.08 |  |  |  |  |  | $ | 1.19 |
Footnotes: |  |  |  |  |  |  |  |  |  |
Adjusted EPS may not add due to rounding. |  |  |  |  |  |  |  |  |  |

(dollars in millions, except per share amounts)
Unaudited |  | 12 Mos. Ended 12/31/23 |  | 12 Mos. Ended 12/31/22
|  | Pre-tax | Tax | After-Tax |  |  | Pre-tax | Tax | After-Tax |
EPS |  |  |  |  | $ | 2.75 |  |  |  |  |  | $ | 5.06 |
Amortization of acquisition-related intangible assets |  | $ | 865 |  | $ | (219) |  | $ | 646 |  | 0.15 |  |  | $ | 826 |  | $ | (214) |  | $ | 612 |  | 0.15 |
Severance, pension and benefits charges (credits) |  | 1,525 |  | (378) |  | 1,147 |  | 0.27 |  |  | (1,371) |  | 339 |  | (1,032) |  | (0.25) |
Verizon Business Group goodwill impairment |  | 5,841 |  | (52) |  | 5,789 |  | 1.37 |  |  | — |  | — |  | — |  | — |
Asset rationalization |  | 480 |  | (113) |  | 367 |  | 0.09 |  |  | — |  | — |  | — |  | — |
Legal settlement |  | 100 |  | (25) |  | 75 |  | 0.02 |  |  | — |  | — |  | — |  | — |
Business transformation costs |  | 176 |  | (45) |  | 131 |  | 0.03 |  |  | — |  | — |  | — |  | — |
Non-strategic business shutdown |  | 179 |  | (83) |  | 96 |  | 0.02 |  |  | — |  | — |  | — |  | — |
Early debt redemption costs |  | — |  | — |  | — |  | — |  |  | 1,241 |  | (316) |  | 925 |  | 0.22 |
|  | $ | 9,166 |  | $ | (915) |  | $ | 8,251 |  | $ | 1.96 |  |  | $ | 696 |  | $ | (191) |  | $ | 505 |  | $ | 0.12 |
Adjusted EPS |  |  |  |  | $ | 4.71 |  |  |  |  |  | $ | 5.18 |
Footnotes: |  |  |  |  |  |  |  |  |  |
Adjusted EPS may not add due to rounding. |  |  |  |  |  |  |  |  |  |

Free Cash Flow |  |  |  |  |  |  |
(dollars in millions) |
Unaudited |  | 12 Mos. Ended 12/31/23 |  |  |  | 12 Mos. Ended 12/31/22 |
Net Cash Provided by Operating Activities |  | $ | 37,475 |  |  |  |  | $ | 37,141 |  |
Capital expenditures (including capitalized software) |  | (18,767) |  |  |  |  | (23,087) |  |
Free Cash Flow |  | $ | 18,708 |  |  |  |  | $ | 14,054 |  |

Verizon Communications Inc.
Non-GAAP Reconciliations - Segments

Segment EBITDA and Segment EBITDA Margin |  |  |  |  |  |  |  |
Consumer |  |  |  |  |  |  |  |
(dollars in millions)
Unaudited |  | 3 Mos. Ended 12/31/23 |  | 3 Mos. Ended 12/31/22 |  | 12 Mos. Ended 12/31/23 |  | 12 Mos. Ended 12/31/22
Operating Income |  | $ | 7,035 |  |  | $ | 7,028 |  |  | $ | 29,011 |  |  | $ | 28,846 |
Add Depreciation and amortization expense |  | 3,344 |  |  | 3,111 |  |  | 13,077 |  |  | 12,716 |
Segment EBITDA |  | $ | 10,379 |  |  | $ | 10,139 |  |  | $ | 42,088 |  |  | $ | 41,562 |
Year over year change % |  | 2.4 | % |  |  |  | 1.3 | % |  |
Total operating revenues |  | $ | 26,954 |  |  | $ | 26,770 |  |  | $ | 101,626 |  |  | $ | 103,506 |
Operating Income Margin |  | 26.1 | % |  | 26.3 | % |  | 28.5 | % |  | 27.9 | %
Segment EBITDA Margin |  | 38.5 | % |  | 37.9 | % |  | 41.4 | % |  | 40.2 | %

Business |  |  |  |  |  |  |  |
(dollars in millions)
Unaudited |  | 3 Mos. Ended 12/31/23 |  | 3 Mos. Ended 12/31/22 |  | 12 Mos. Ended 12/31/23 |  | 12 Mos. Ended 12/31/22
Operating Income |  | $ | 443 |  |  | $ | 585 |  |  | $ | 2,066 |  |  | $ | 2,631 |
Add Depreciation and amortization expense |  | 1,164 |  |  | 1,098 |  |  | 4,488 |  |  | 4,312 |
Segment EBITDA |  | $ | 1,607 |  |  | $ | 1,683 |  |  | $ | 6,554 |  |  | $ | 6,943 |
Year over year change % |  | (4.5) | % |  |  |  | (5.6) | % |  |
Total operating revenues |  | $ | 7,618 |  |  | $ | 7,900 |  |  | $ | 30,122 |  |  | $ | 31,072 |
Operating Income Margin |  | 5.8 | % |  | 7.4 | % |  | 6.9 | % |  | 8.5 | %
Segment EBITDA Margin |  | 21.1 | % |  | 21.3 | % |  | 21.8 | % |  | 22.3 | %