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Debt | 6 Months Ended
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Jun. 30, 2025
Debt Disclosure [Abstract] |
Debt |
Note 5. Debt
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 three and six months ended June 30, 2025. Exchange Offers
(dollars in millions) | Principal Amount Exchanged |  | Principal Amount Issued
Three Months Ended June 30, 2025 total |  |  |
Verizon 1.450% - 7.750% notes and floating rate notes, due 2026 - 2030 | $ | 2,207 |  |  | $ | — |
Verizon 5.401% notes due 2037(1) | — |  |  | 2,162 |
Three and Six Months Ended June 30, 2025 total | 2,207 |  |  | 2,162 |
Total(2) | $ | 2,207 |  |  | $ | 2,162 |
(1) The principal amount issued in exchange does not include either an insignificant amount of cash paid in lieu of the issuance of fractional new notes or accrued and unpaid interest paid on the old notes accepted for exchange to the date of exchange. (2) The debt exchange offers above meet the criteria to be accounted for as a modification of debt. As a result, the excess of the principal amount of notes exchanged over the principal amount of new notes issued of $45 million was recorded as a premium to Long-term debt in the consolidated balance sheets. Tender Offers
(dollars in millions) | Principal Amount Purchased |  | Cash Consideration(1)
Three Months Ended June 30, 2025 total |  |  |
Verizon 1.450% - 7.750% notes and floating rate notes, due 2026 - 2030(2) | $ | 503 |  |  | $ | 501 |
Three and Six Months Ended June 30, 2025 total | $ | 503 |  |  | $ | 501 |
(1) The total cash consideration includes the tender offer consideration, plus any accrued and unpaid interest to the date of purchase. (2) The tender offer was launched concurrently with the exchange offer discussed above and made available to different holders of the same series of notes. Repayments, Redemptions and Repurchases
(dollars in millions) | Principal Repaid/ Redeemed/ Repurchased |  | Amount Paid(1)
Three Months Ended March 31, 2025 |  |  |
Verizon 4.050% notes due 2025 | A$ | 450 |  |  | $ | 365 |
Verizon 3.376% notes due 2025 | $ | 793 |  |  | 806 |
Verizon floating rate notes due 2025 | 487 |  |  | 490 |
Open market repurchases of various Verizon notes | 410 |  |  | 317 |
Three Months Ended March 31, 2025 total |  |  | $ | 1,978 |
Three Months Ended June 30, 2025 |  |  |
Verizon 0.875% notes due 2025 | € | 747 |  |  | $ | 840 |
Verizon 2.625% notes due 2026 | $ | 985 |  |  | 990 |
Open market repurchases of various Verizon notes | 438 |  |  | 328 |
Three Months Ended June 30, 2025 total |  |  | 2,158 |
Six Months Ended June 30, 2025 total |  |  | $ | 4,136 |
(1) Represents amount paid to repay, redeem 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 and includes the amount payable per the derivatives entered into in connection with the transaction. See Note 7 for additional information on cross currency swap transactions related to the transaction. Issuances
(dollars in millions) | Principal Amount Issued |  | Net Proceeds(1)
Three Months Ended June 30, 2025 |  |  |
Verizon 5.250% notes due 2035(2) | $ | 2,250 |  |  | $ | 1,676 |
Three and Six Months Ended June 30, 2025 total(1) |  |  | $ | 1,676 |
(1) Net proceeds were net of underwriting discounts and other issuance costs. See Note 7 for additional information on derivative activity related to the transactions. (2) We contributed $563 million principal amount of the notes to our pension plans, as discussed below. Commercial Paper Program During the six months ended June 30, 2025, we issued $10.4 billion in net proceeds and made $10.4 billion in principal repayments of commercial paper. These transactions were recorded within Other, net cash flow from financing activities in our condensed consolidated statements of cash flows on a net basis. As of June 30, 2025, we had no commercial paper outstanding. Asset-Backed Debt As of June 30, 2025, the carrying value of our asset-backed debt was $26.6 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 condensed consolidated balance sheets. Proceeds from our asset-backed debt transactions are reflected in Cash flows from financing activities in our condensed consolidated statements of cash flows. The asset-backed debt issued is included in Debt maturing within one year and Long-term debt in our condensed consolidated balance sheets. ABS Notes During the six months ended June 30, 2025, we completed the following ABS Notes transactions:
(dollars in millions) | Interest Rates % |  | Expected Weighted-average Life to Maturity (in years) | Principal Amount Issued
January 2025 |  |  |  |
Series 2025-1 |  |  |  |
A Senior class notes | 4.710 |  | 2.99 | $ | 535 |
B Junior class notes | 4.940 |  | 2.99 | 41 |
C Junior class notes | 5.090 |  | 2.99 | 25 |
Series 2025-2 |  |  |  |
A Senior class notes | 4.940 |  | 5.00 | 446 |
B Junior class notes | 5.160 |  | 5.00 | 34 |
C Junior class notes | 5.340 |  | 5.00 | 20 |
January 2025 total |  |  |  | 1,101 |
March 2025 |  |  |  |
Series 2025-3 |  |  |  |
A-1a Senior class notes | 4.510 |  | 1.97 | 706 |
A-1b Senior class notes | Compounded SOFR + 0.550(1) |  | 1.97 | 185 |
B Junior class notes | 4.770 |  | 1.97 | 68 |
C Junior class notes | 4.900 |  | 1.97 | 41 |
Series 2025-4 |  |  |  |
A Senior class notes | 4.760 |  | 4.97 | 446 |
B Junior class notes | 5.020 |  | 4.97 | 34 |
C Junior class notes | 5.200 |  | 4.97 | 20 |
March 2025 total |  |  |  | 1,500 |
June 2025 |  |  |  |
Series 2025-5 |  |  |  |
A-1a Senior class notes | 4.400 |  | 2.99 | 401 |
A-1b Senior class notes | Compounded SOFR + 0.550(1) |  | 2.99 | 134 |
B Junior class notes | 4.640 |  | 2.99 | — |
C Junior class notes | 4.840 |  | 2.99 | 25 |
Series 2025-6 |  |  |  |
A Senior class notes | 4.620 |  | 4.99 | 267 |
B Junior class notes | 4.860 |  | 4.99 | — |
C Junior class notes | 5.060 |  | 4.99 | 12 |
June 2025 total |  |  |  | 839 |
Total |  |  |  | $ | 3,440 |
(1) Compounded Secured Overnight Financing Rate (SOFR) is calculated using SOFR as published by the Federal Reserve Bank of New York in accordance with the terms of such notes. Compounded SOFR for the interest payment made in June 2025 was 4.30%. Under the terms of each series of ABS Notes outstanding as of June 30, 2025, there is a revolving period of up to two years, three years, or five years, as applicable, during which we may transfer additional receivables to the ABS Entity. During the six months ended June 30, 2025, we made aggregate principal repayments of $2.3 billion in connection with an anticipated redemption of ABS Notes. During the three and six months ended June 30, 2025, we sold certain of our initially offered but retained ABS Notes (collectively the "Retained Notes") for cash of $129 million. In July 2025, in connection with an anticipated redemption of ABS Notes, we made a principal repayment, in whole, for $479 million. ABS Financing Facilities Under the two loan agreements outstanding in connection with the ABS Financing Facility originally entered into in 2021 and most recently renewed in 2025 (2021 ABS Financing Facility), we prepaid an aggregate of $250 million in February 2025, prepaid an aggregate of $1.4 billion in March 2025, borrowed an additional $1.1 billion in April 2025 and prepaid an aggregate of $100 million in June 2025. The aggregate outstanding balance under the 2021 ABS Financing Facility was $7.4 billion as of June 30, 2025. Under the loan agreement outstanding in connection with the ABS Financing Facility originally entered into in 2022 and most recently renewed in 2024 (2022 ABS Financing Facility), we prepaid an aggregate of $163 million in February 2025, borrowed an additional $189 million in March 2025 and prepaid an aggregate of $241 million in April 2025. T he aggregate outstanding balance under the 2022 ABS Financing Facility was $4.8 billion as of June 30, 2025. 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 condensed consolidated balance sheets. The assets and liabilities related to our asset-backed debt arrangements included in our condensed consolidated balance sheets were as follows:
| At June 30, |  | At December 31,
(dollars in millions) | 2025 |  | 2024
Assets |  |  |
Accounts receivable, net | $ | 18,660 |  |  | $ | 18,339 |
Prepaid expenses and other | 323 |  |  | 322 |
Other assets | 12,416 |  |  | 11,647 |
Liabilities |  |  |
Accounts payable and accrued liabilities | 35 |  |  | 37 |
Debt maturing within one year | 16,487 |  |  | 17,312 |
Long-term debt | 10,114 |  |  | 8,827 |
The Accounts receivable, net amounts above do not include underlying receivables for which a participation interest has been transferred to the ABS Entities. See Note 6 for additional information on certain receivables and participation interest used to secure asset-backed debt. Long-Term Credit Facilities
|  |  |  |  | At June 30, 2025 |  |  |  |
(dollars in millions) | Maturities |  | Facility Capacity |  | Unused Capacity |  | Principal Amount Outstanding |  |  |  |
Verizon revolving credit facility(1) | 2028 |  | $ | 12,000 |  |  | $ | 11,963 |  |  | $ | — |  |  |  |  |
Various export credit facilities(2) | 2025 - 2031 |  | 10,000 |  |  | — |  |  | 4,912 |  |  |  |  |
Total |  |  | $ | 22,000 |  |  | $ | 11,963 |  |  | $ | 4,912 |  |  |  |  |
(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 June 30, 2025, there have been no drawings against the revolving credit facility since its inception. (2) During the six months ended June 30, 2025 and 2024, there were no drawings from these facilities. Borrowings under certain of these facilities are repaid 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 six months ended June 30, 2025 and 2024, we financed, primarily through alternative financing arrangements, the purchase of approximately $1.2 billion and $941 million, respectively, consisting primarily of network equipment. As of June 30, 2025 and December 31, 2024, $2.9 billion and $2.5 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 condensed consolidated statements of cash flows. During the three and six months ended June 30, 2025, we made a discretionary non-cash contribution to our qualified pension plans in the amount of $563 million. The contribution was made from the principal amount of aggregate notes issued of approximately $2.3 billion due 2035, with an interest rate of 5.250% per year. This contribution is a non-cash operating activity and therefore is not reflected within Other, net cash flow from operating activities in our condensed consolidated statements of cash flows. Net Debt Extinguishment Gains During the three months ended June 30, 2025 and 2024, we recorded net debt extinguishment gains of $88 million and $89 million, respectively. During the six months ended June 30, 2025 and 2024, we recorded net debt extinguishment gains of $178 million and $199 million, respectively. T he net gains are recorded in Other income (expense), net in our condensed consolidated statements of income. The total non-cash debt extinguishment gains are reflected within Other, net cash flow from operating activities, and the total cash payments to extinguish the debt are reflected within Other, net cash flow from financing activities in our condensed consolidated statements of cash flows. Guarantees We guarantee the debentures of our operating telephone company subsidiaries. As of June 30, 2025, $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 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 8A -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-8A Reference 2: http://www.xbrl.org/2003/role/disclosureRef 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