10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

OR

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from              to

Commission file number: 1-8606

Verizon Communications Inc.

(Exact name of registrant as specified in its charter)

Delaware	23-2259884
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1095 Avenue of the Americas		10036
New York,	New York
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (212) 395-1000

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, par value $0.10	VZ	New York Stock Exchange
Common Stock, par value $0.10	VZ	The NASDAQ Global Select Market
1.625% Notes due 2024	VZ24B	New York Stock Exchange
4.073% Notes due 2024	VZ24C	New York Stock Exchange
0.875% Notes due 2025	VZ25	New York Stock Exchange
3.250% Notes due 2026	VZ26	New York Stock Exchange
1.375% Notes due 2026	VZ26B	New York Stock Exchange
0.875% Notes due 2027	VZ27E	New York Stock Exchange
1.375% Notes due 2028	VZ28	New York Stock Exchange
1.125% Notes due 2028	VZ28A	New York Stock Exchange
2.350% Fixed Rate Notes due 2028	VZ28C	New York Stock Exchange
1.875% Notes due 2029	VZ29B	New York Stock Exchange
0.375% Notes due 2029	VZ29D	New York Stock Exchange
1.250% Notes due 2030	VZ30	New York Stock Exchange
1.875% Notes due 2030	VZ30A	New York Stock Exchange
2.625% Notes due 2031	VZ31	New York Stock Exchange
2.500% Notes due 2031	VZ31A	New York Stock Exchange
3.000% Fixed Rate Notes due 2031	VZ31D	New York Stock Exchange
0.875% Notes due 2032	VZ32	New York Stock Exchange
0.750% Notes due 2032	VZ32A	New York Stock Exchange
1.300% Notes due 2033	VZ33B	New York Stock Exchange
4.750% Notes due 2034	VZ34	New York Stock Exchange
3.125% Notes due 2035	VZ35	New York Stock Exchange
1.125% Notes due 2035	VZ35A	New York Stock Exchange
3.375% Notes due 2036	VZ36A	New York Stock Exchange
2.875% Notes due 2038	VZ38B	New York Stock Exchange
1.875% Notes due 2038	VZ38C	New York Stock Exchange
1.500% Notes due 2039	VZ39C	New York Stock Exchange
3.500% Fixed Rate Notes due 2039	VZ39D	New York Stock Exchange
1.850% Notes due 2040	VZ40	New York Stock Exchange
3.850% Fixed Rate Notes due 2041	VZ41C	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   ☒  Yes   ☐  No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   ☒  Yes   ☐  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
	Large accelerated filer	☒	Accelerated filer	☐
	Non-accelerated filer	☐	Smaller reporting company	☐
			Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   ☐  Yes   ☒  No

At June 30, 2021, 4,140,116,007 shares of the registrant’s common stock were outstanding, after deducting 151,317,639 shares held in treasury.

TABLE OF CONTENTS

Item No.		Page
PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Statements of Income	4
	Three and six months ended June 30, 2021 and 2020
	Condensed Consolidated Statements of Comprehensive Income	5
	Three and six months ended June 30, 2021 and 2020
	Condensed Consolidated Balance Sheets	6
	At June 30, 2021 and December 31, 2020
	Condensed Consolidated Statements of Cash Flows	7
	Six months ended June 30, 2021 and 2020
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	53
Item 4.	Controls and Procedures	53
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	54
Item 1A.	Risk Factors	54
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	54
Item 6.	Exhibits	55
Signature		56
Certifications

Part I - Financial Information

Item 1. Financial Statements (Unaudited)

Condensed Consolidated Statements of Income

Verizon Communications Inc. and Subsidiaries

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(dollars in millions, except per share amounts) (unaudited)	2021		2020		2021		2020
Operating Revenues
Service revenues and other	$	28,221	$	26,692	$	56,144	$	54,173
Wireless equipment revenues	5,543		3,755		10,487		7,884
Total Operating Revenues	33,764		30,447		66,631		62,057
Operating Expenses
Cost of services (exclusive of items shown below)	8,324		7,639		16,344		15,393
Cost of wireless equipment	5,931		4,110		11,433		8,652
Selling, general and administrative expense	7,324		7,156		14,725		15,741
Depreciation and amortization expense	4,020		4,181		8,194		8,331
Total Operating Expenses	25,599		23,086		50,696		48,117
Operating Income	8,165		7,361		15,935		13,940
Equity in earnings (losses) of unconsolidated businesses	1		(13)		9		(25)
Other income (expense), net	502		(72)		903		71
Interest expense	(844)		(1,089)		(1,945)		(2,123)
Income Before Provision For Income Taxes	7,824		6,187		14,902		11,863
Provision for income taxes	(1,875)		(1,348)		(3,575)		(2,737)
Net Income	$	5,949	$	4,839	$	11,327	$	9,126
Net income attributable to noncontrolling interests	$	149	$	139	$	282	$	270
Net income attributable to Verizon	5,800		4,700		11,045		8,856
Net Income	$	5,949	$	4,839	$	11,327	$	9,126
Basic Earnings Per Common Share
Net income attributable to Verizon	$	1.40	$	1.14	$	2.67	$	2.14
Weighted-average shares outstanding (in millions)	4,141		4,139		4,141		4,139
Diluted Earnings Per Common Share
Net income attributable to Verizon	$	1.40	$	1.13	$	2.67	$	2.14
Weighted-average shares outstanding (in millions)	4,143		4,141		4,143		4,141

See Notes to Condensed Consolidated Financial Statements

4

Condensed Consolidated Statements of Comprehensive Income

Verizon Communications Inc. and Subsidiaries

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(dollars in millions) (unaudited)	2021		2020		2021		2020
Net Income	$	5,949	$	4,839	$	11,327	$	9,126
Other Comprehensive Income (Loss), Net of Tax (Expense) Benefit
Foreign currency translation adjustments, net of tax of $(15), $4, $(7) and $0	58		77		20		(43)
Unrealized gain (loss) on cash flow hedges, net of tax of $294, $(133), $(46) and $659	(777)		314		132		(1,896)
Unrealized gain (loss) on marketable securities, net of tax of $0, $(2), $1 and $(1)	—		6		(5)		5
Defined benefit pension and postretirement plans, net of tax of $52, $55, $103 and $111	(155)		(169)		(310)		(338)
Other comprehensive income (loss) attributable to Verizon	(874)		228		(163)		(2,272)
Total Comprehensive Income	$	5,075	$	5,067	$	11,164	$	6,854
Comprehensive income attributable to noncontrolling interests	$	149	$	139	$	282	$	270
Comprehensive income attributable to Verizon	4,926		4,928		10,882		6,584
Total Comprehensive Income	$	5,075	$	5,067	$	11,164	$	6,854

See Notes to Condensed Consolidated Financial Statements

5

Condensed Consolidated Balance Sheets

Verizon Communications Inc. and Subsidiaries

	At June 30,		At December 31,
(dollars in millions, except per share amounts) (unaudited)	2021		2020
Assets
Current assets
Cash and cash equivalents	$	4,657	$	22,171
Accounts receivable	22,237		25,169
Less Allowance for credit losses	980		1,252
Accounts receivable, net	21,257		23,917
Inventories	1,421		1,796
Prepaid expenses and other	8,291		6,710
Total current assets	35,626		54,594
Property, plant and equipment	283,654		279,737
Less Accumulated depreciation	189,452		184,904
Property, plant and equipment, net	94,202		94,833
Investments in unconsolidated businesses	560		589
Wireless licenses	98,034		96,097
Deposits for wireless licenses	45,910		2,772
Goodwill	24,915		24,773
Other intangible assets, net	7,002		9,413
Operating lease right-of-use assets	28,180		22,531
Other assets	14,761		10,879
Total assets	$	349,190	$	316,481
Liabilities and Equity
Current liabilities
Debt maturing within one year	$	7,023	$	5,889
Accounts payable and accrued liabilities	17,328		20,658
Current operating lease liabilities	3,881		3,485
Other current liabilities	11,846		9,628
Total current liabilities	40,078		39,660
Long-term debt	144,894		123,173
Employee benefit obligations	16,713		18,657
Deferred income taxes	37,534		35,711
Non-current operating lease liabilities	23,360		18,000
Other liabilities	11,499		12,008
Total long-term liabilities	234,000		207,549
Commitments and Contingencies (Note 12)
Equity
Series preferred stock ($0.10 par value; 250,000,000 shares authorized; none issued)	—		—
Common stock ($0.10 par value; 6,250,000,000 shares authorized in each period; 4,291,433,646 shares issued)	429		429
Additional paid in capital	13,403		13,404
Retained earnings	66,310		60,464
Accumulated other comprehensive loss	(234)		(71)
Common stock in treasury, at cost (151,317,639 and 153,304,088 shares outstanding)	(6,632)		(6,719)
Deferred compensation – employee stock ownership plans (ESOPs) and other	408		335
Noncontrolling interests	1,428		1,430
Total equity	75,112		69,272
Total liabilities and equity	$	349,190	$	316,481

See Notes to Condensed Consolidated Financial Statements

6

Condensed Consolidated Statements of Cash Flows

Verizon Communications Inc. and Subsidiaries

	Six Months Ended
	June 30,
(dollars in millions) (unaudited)	2021		2020
Cash Flows from Operating Activities
Net Income	$	11,327	$	9,126
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	8,194		8,331
Employee retirement benefits	(1,819)		(32)
Deferred income taxes	1,978		(120)
Provision for expected credit losses	409		831
Equity in losses of unconsolidated businesses, net of dividends received	25		46
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses	82		3,297
Other, net	242		2,073
Net cash provided by operating activities	20,438		23,552
Cash Flows from Investing Activities
Capital expenditures (including capitalized software)	(8,716)		(9,850)
Acquisitions of businesses, net of cash acquired	(458)		(399)
Acquisitions of wireless licenses	(45,278)		(1,801)
Other, net	51		(74)
Net cash used in investing activities	(54,401)		(12,124)
Cash Flows from Financing Activities
Proceeds from long-term borrowings	31,444		9,305
Proceeds from asset-backed long-term borrowings	2,695		2,844
Repayments of long-term borrowings and finance lease obligations	(7,559)		(8,533)
Repayments of asset-backed long-term borrowings	(2,993)		(4,612)
Dividends paid	(5,198)		(5,090)
Other, net	(1,839)		(146)
Net cash provided by (used in) financing activities	16,550		(6,232)
Increase (decrease) in cash, cash equivalents and restricted cash	(17,413)		5,196
Cash, cash equivalents and restricted cash, beginning of period	23,498		3,917
Cash, cash equivalents and restricted cash, end of period (Note 1)	$	6,085	$	9,113

See Notes to Condensed Consolidated Financial Statements

7

Notes to Condensed Consolidated Financial Statements (Unaudited)

Verizon Communications Inc. and Subsidiaries

Note 1. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) in the United States (U.S.) and based upon Securities and Exchange Commission rules that permit reduced disclosure for interim periods. For a more complete discussion of significant accounting policies and certain other information, you should refer to the financial statements included in Verizon Communications Inc.'s (Verizon or the Company) Annual Report on Form 10-K for the year ended December 31, 2020. These financial statements reflect all adjustments that are necessary for a fair presentation of results of operations and financial condition for the interim periods shown, including normal recurring accruals and other items. The results for the interim periods are not necessarily indicative of results for the full year.

Certain amounts have been reclassified to conform to the current period’s presentation.

Earnings Per Common Share

There were a total of approximately 2 million outstanding dilutive securities, primarily consisting of restricted stock units, included in the computation of diluted earnings per common share for the three and six months ended June 30, 2021 and June 30, 2020.

Cash, Cash Equivalents and Restricted Cash

We consider all highly liquid investments with an original maturity of 90 days or less when purchased to be cash equivalents. Cash equivalents are stated at cost, which approximates quoted market value and includes amounts held in money market funds.

Cash collections on the device payment plan agreement receivables 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.

Assets held for sale include cash, cash equivalents and restricted cash in our media business, Verizon Media. See Note 3 for additional information.

Cash, cash equivalents and restricted cash are included in the following line items in the condensed consolidated balance sheets:

	At June 30,		At December 31,		Increase / (Decrease)
(dollars in millions)	2021		2020
Cash and cash equivalents	$	4,657	$	22,171	$	(17,514)
Restricted cash:
Prepaid expenses and other	1,189		1,195		(6)
Other assets	94		132		(38)
Assets held for sale:
Prepaid expenses and other	145		—		145
Cash, cash equivalents and restricted cash	$	6,085	$	23,498	$	(17,413)

Note 2. Revenues and Contract Costs

We earn revenue from contracts with customers, primarily through the provision of telecommunications and other services and through the sale of wireless equipment.

Revenue by Category

We have two reportable segments that we operate and manage as strategic business units - Consumer and Business. Revenue is disaggregated by products and services within Consumer and customer groups (Small and Medium Business, Global Enterprise, Public Sector and Other, and Wholesale) within Business. See Note 11 for additional information on revenue by segment.

Corporate and other includes the results of our media business, Verizon Media Group (Verizon Media), and other businesses. Verizon Media generated revenues from contracts with customers under Accounting Standards Updated (ASU) 2014-09, "Revenue from Contracts with Customers" (Topic 606) of approximately $2.1 billion and $3.9 billion during the three and six months ended June 30, 2021, respectively. Verizon Media generated revenues from contracts with customers under Topic 606 of approximately $1.4 billion and $3.1 billion during the three and six months ended June 30, 2020, respectively.     

We also earn revenues that are not accounted for under Topic 606 from leasing arrangements (such as those for towers and equipment), captive reinsurance arrangements primarily related to wireless device insurance and the interest on equipment financed under a device payment plan agreement when sold to the customer by an authorized agent. As allowed by the practical expedient within ASU 2016-02, "Leases" (Topic 842), we have elected to combine the lease and non-lease components for those arrangements of customer premise equipment where we are the lessor as components accounted for under Topic 606. During the three and six months ended June 30, 2021, revenues from

8

arrangements that were not accounted for under Topic 606 were approximately $768 million and $1.5 billion, respectively. During the three and six months ended June 30, 2020, revenues from arrangements that were not accounted for under Topic 606 were approximately $785 million and $1.6 billion, respectively.

Remaining Performance Obligations

When allocating the total contract transaction price to identified performance obligations, a portion of the total transaction price may relate to service performance obligations which were not satisfied or are partially satisfied as of the end of the reporting period. Below we disclose information relating to these unsatisfied performance obligations. We apply the practical expedient available under Topic 606 that provides the option to exclude the expected revenues arising from unsatisfied performance obligations related to contracts that have an original expected duration of one year or less. This situation primarily arises with respect to certain month-to-month service contracts. At June 30, 2021, month-to-month service contracts represented approximately 92% of our wireless postpaid contracts and approximately 80% of our wireline Consumer and Small and Medium Business contracts, compared to June 30, 2020, for which month-to-month service contracts represented approximately 89% of our wireless postpaid contracts and 67% of our wireline Consumer and Small and Medium Business contracts.

Additionally, certain contracts provide customers the option to purchase additional services. The fees related to these additional services are recognized when the customer exercises the option (typically on a month-to-month basis).

Contracts for wireless services are generally either month-to-month and cancellable at any time (typically under a device payment plan) or contain terms ranging from greater than one month to up to two years (typically under a fixed-term plan). Additionally, customers may incur charges based on usage or additional optional services purchased in conjunction with entering into a contract that can be canceled at any time and therefore are not included in the transaction price. The transaction price allocated to service performance obligations, which are not satisfied or are partially satisfied as of the end of the reporting period, are generally related to contracts that are not accounted for as month-to-month contracts.

Our Consumer group customers also include traditional wholesale resellers that purchase and resell wireless service under their own brands to their respective customers. Reseller arrangements generally include a stated contract term, which typically extends longer than two years and, in some cases, include a periodic minimum revenue commitment over the contract term for which revenues will be recognized in future periods.

Consumer customer contracts for wireline services are generally month-to-month; however, they may have a service term of two years or shorter than twelve months. Certain contracts with Business customers for wireline services extend into future periods, contain fixed monthly fees and usage-based fees, and can include annual commitments in each year of the contract or commitments over the entire specified contract term; however, a significant number of contracts for wireline services with our Business customers have a contract term that is twelve months or less.

Additionally, there are certain contracts with Business customers for wireline and telematics services and certain Verizon Media contracts with customers that have a contractual minimum fee over the total contract term. We cannot predict the time period when revenue will be recognized related to those contracts; thus, they are excluded from the time bands below. These contracts have varying terms spanning over approximately seven years ending in January 2029 and have aggregate contract minimum payments totaling $2.8 billion.

At June 30, 2021, the transaction price related to unsatisfied performance obligations for total Verizon that is expected to be recognized for the remainder of 2021, 2022 and thereafter was $9.4 billion, $11.7 billion and $3.4 billion, respectively. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations and changes in the timing and scope of contracts, arising from contract modifications.

Accounts Receivable and Contract Balances

The timing of revenue recognition may differ from the time of billing to our customers. Receivables presented in our condensed consolidated balance sheets represent an unconditional right to consideration. Contract balances represent amounts from an arrangement when either Verizon has performed, by transferring goods or services to the customer in advance of receiving all or partial consideration for such goods and services from the customer, or the customer has made payment to Verizon in advance of obtaining control of the goods and/or services promised to the customer in the contract.

Contract assets primarily relate to our rights to consideration for goods or services provided to customers but for which we do not have an unconditional right at the reporting date. Under a fixed-term plan, total contract revenue is allocated between wireless service and equipment revenues. In conjunction with these arrangements, a contract asset is created, which represents the difference between the amount of equipment revenue recognized upon sale and the amount of consideration received from the customer when the performance obligation related to the transfer of control of the equipment is satisfied. The contract asset is reclassified to accounts receivable as wireless services are provided and billed. We have the right to bill the customer as service is provided over time, which results in our right to the payment being unconditional. The contract asset balances are presented in our condensed consolidated balance sheets as Prepaid expenses and other and Other assets. We recognize the allowance for credit losses at inception and reassess quarterly based on management’s expectation of the asset’s collectability.

9

Contract liabilities arise when we bill our customers and receive consideration in advance of providing the goods or services promised in the contract. We typically bill service one month in advance, which is the primary component of the contract liability balance. Contract liabilities are recognized as revenue when services are provided to the customer. The contract liability balances are presented in our condensed consolidated balance sheets as Other current liabilities and Other liabilities.

The following table presents information about receivables from contracts with customers:

	At June 30,		At January 1,		At June 30,		At January 1,
(dollars in millions)	2021		2021		2020		2020
Receivables(1)	$	9,387	$	12,029	$	10,967	$	12,078
Device payment plan agreement receivables(2)	10,836		10,358		10,047		11,741

(1)Balances do not include receivables related to the following contracts: leasing arrangements (such as those for towers and equipment), captive reinsurance arrangements primarily related to wireless device insurance and the interest on equipment financed under a device payment plan agreement when sold to the customer by an authorized agent.

(2)Included in device payment plan agreement receivables presented in Note 7. Balances do not include receivables derived from the sale of equipment on a device payment plan through an authorized agent.

The following table presents information about contract balances:

	At June 30,		At January 1,		At June 30,		At January 1,
(dollars in millions)	2021		2021		2020		2020
Contract asset	$	972	$	937	$	993	$	1,150
Contract liability (1)	5,846		5,598		5,275		5,307

(1) Revenue recognized related to contract liabilities existing at January 1, 2021 were $199 million and $4.1 billion for the three and six months ended June 30, 2021, respectively. Revenue recognized related to contract liabilities existing at January 1, 2020 were $204 million and $4.0 billion, for the three and six months ended June 30, 2020, respectively.

The balance of contract assets and contract liabilities recorded in our condensed consolidated balance sheets were as follows:

	At June 30,		At December 31,
(dollars in millions)	2021		2020
Assets
Prepaid expenses and other	$	772	$	733
Other assets	200		204
Total	$	972	$	937
Liabilities
Other current liabilities	$	4,985	$	4,843
Other liabilities	861		755
Total	$	5,846	$	5,598

Contract Costs

Topic 606 requires the recognition of an asset for incremental costs to obtain a customer contract, which are then amortized to expense over the respective periods of expected benefit. We recognize an asset for incremental commission expenses paid to internal and external sales personnel and agents in conjunction with obtaining customer contracts. We only defer these costs when we have determined the commissions are incremental costs that would not have been incurred absent the customer contract and are expected to be recoverable. Costs to obtain a contract are amortized and recorded ratably as commission expense over the period representing the transfer of goods or services to which the assets relate. Costs to obtain wireless contracts are amortized over both of our Consumer and Business customers' estimated device upgrade cycles, as such costs are typically incurred each time a customer upgrades. Costs to obtain wireline contracts are amortized as expense over the estimated customer relationship period for our Consumer customers. Incremental costs to obtain wireline contracts for our Business customers are insignificant. Costs to obtain contracts are recorded in Selling, general and administrative expense.

We also defer costs incurred to fulfill contracts that: (1) relate directly to the contract; (2) are expected to generate resources that will be used to satisfy our performance obligation under the contract; and (3) are expected to be recovered through revenue generated under the contract. Contract fulfillment costs are expensed as we satisfy our performance obligations and recorded in Cost of services. These costs principally relate to direct costs that enhance our wireline business resources, such as costs incurred to install circuits.

We determine the amortization periods for our costs incurred to obtain or fulfill a customer contract at a portfolio level due to the similarities within these customer contract portfolios.

Other costs, such as general costs or costs related to past performance obligations, are expensed as incurred.

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Collectively, costs to obtain a contract and costs to fulfill a contract are referred to as deferred contract costs, and amortized over a two-to six-year period. Deferred contract costs are classified as current or non-current within Prepaid expenses and other and Other assets, respectively.

The balances of deferred contract costs included in our condensed consolidated balance sheets were as follows:

	At June 30,		At December 31,
(dollars in millions)	2021		2020
Assets
Prepaid expenses and other	$	2,401	$	2,472
Other assets	2,113		2,070
Total	$	4,514	$	4,542

For the three and six months ended June 30, 2021, we recognized expense of $743 million and $1.5 billion, respectively, associated with the amortization of deferred contract costs, primarily within Selling, general and administrative expense in our condensed consolidated statements of income. For the three and six months ended June 30, 2020, we recognized expense of $767 million and $1.5 billion, respectively, associated with the amortization of deferred contract costs, primarily within Selling, general and administrative expense in our condensed consolidated statements of income.

We assess our deferred contract costs for impairment on a quarterly basis. We recognize an impairment charge to the extent the carrying amount of a deferred cost exceeds the remaining amount of consideration we expect to receive in exchange for the goods and services related to the cost, less the expected costs related directly to providing those goods and services that have not yet been recognized as expenses. There have been no impairment charges recognized for the three and six months ended June 30, 2021 or June 30, 2020.

Note 3. Acquisitions and Divestitures

Spectrum License Transactions

In March 2020, the Federal Communications Commission's (FCC) incentive auction, Auction 103, for spectrum licenses in the upper 37 Gigahertz (GHz), 39 GHz, and 47 GHz bands concluded. Verizon participated in this incentive auction and was the high bidder on 4,940 licenses, which primarily consisted of 37 GHz and, to a lesser extent, 39 GHz spectrum. As an incumbent licensee, our 39 GHz licenses provided us with incentive payments that were applied towards the purchase price of spectrum in the auction. The value of the licenses won by Verizon amounted to $3.4 billion, of which $1.8 billion was settled with the relinquished 39 GHz licenses. The remaining balance was settled in cash of $1.6 billion, of which $101 million was paid in December 2019. In connection with the incentive auction, a pre-tax net loss of $1.2 billion ($914 million after-tax) was recorded in Selling, general and administrative expense in the condensed consolidated statement of income during the six months ended June 30, 2020 because the exchange of the previously held licenses for new licenses had commercial substance. See Note 4 for additional information. The new reconfigured licenses were received in the second quarter 2020 and are included in Wireless licenses in our condensed consolidated balance sheet.

In September 2020, the FCC completed Auction 105 for Priority Access Licenses. Verizon participated in the auction and was the high bidder on 557 licenses in the 3.5 GHz band valued at approximately $1.9 billion. Verizon made payments for these licenses in 2020 and received them from the FCC in March 2021. The purchase cost for these licenses and related capitalized interest, to the extent qualifying activities have occurred, are included in Wireless licenses in our condensed consolidated balance sheet.

In February 2021, the FCC concluded Auction 107 for C-Band wireless spectrum. Verizon was the winning bidder on 3,511 licenses, consisting of contiguous C-Band spectrum bands ranging between 140 and 200 megahertz of C-Band spectrum in all 406 markets available in the auction. Verizon paid $45.5 billion for the licenses it won, of which $44.6 billion was paid in the first quarter of 2021. In accordance with the rules applicable to the auction, Verizon is required to make additional payments to acquire the licenses. The payments are for our allocable share of clearing costs incurred by, and incentive payments due to, the incumbent license holders associated with the auction, which are estimated to be $7.4 billion. We expect to begin making these payments in 2021 for the initial 46 markets and continue to do so for the remaining markets through 2024. These payments are dependent on the incumbent license holders accelerated clearing of the spectrum for Verizon’s use and, therefore, the final timing and amounts could differ based on the incumbent holders’ execution of their clearing process. Per FCC order, the clearing must be completed by December 2025.

The carrying value of the wireless spectrum won in Auction 107 will consist of all payments required to participate and purchase licenses in the auction, including Verizon’s allocable share of clearing costs incurred by, and incentive payments due to, the incumbent license holders associated with the auction that we are obligated to pay in order to acquire the licenses. Carrying value will also include capitalized interest to the extent qualifying activities have occurred. On July 23, 2021 Verizon received the wireless licenses from the FCC. The carrying value is recorded within Deposits for wireless licenses in our condensed consolidated balance sheet as of June 30, 2021, and has been subsequently reclassified to Wireless licenses upon receipt of the corresponding licenses in July 2021.

Refer to Note 6 for further details on significant debt transactions.

During the three and six months ended June 30, 2021, we entered into and completed various other wireless license acquisitions for cash consideration of an insignificant amount and approximately $90 million, respectively. In March 2021, we reached two agreements to sell certain wireless licenses for insignificant cash consideration. As of June 30, 2021, these wireless licenses are classified as assets held for sale

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within Other assets and we recognized a pre-tax loss during the six months ended June 30, 2021 of $223 million ($167 million after-tax). The agreements are subject to regulatory approval and buyer financing conditions.

Blue Jeans Network, Inc.

In April 2020, we entered into a definitive purchase agreement to acquire Blue Jeans Network, Inc. (BlueJeans), an enterprise-grade video conferencing and event platform, whose services are sold to Business customers globally. The transaction closed in May 2020. The aggregate cash consideration paid by Verizon at the closing of the transaction was approximately $397 million, net of cash acquired.

TracFone Wireless, Inc.

In September 2020, we entered into a purchase agreement (Tracfone Purchase Agreement) with América Móvil to acquire TracFone Wireless, Inc. (Tracfone), a provider of prepaid and value mobile services in the U.S. Under the terms of the Tracfone Purchase Agreement, we will acquire all of the stock of Tracfone for approximately $3.1 billion in cash and $3.1 billion in Verizon common stock, subject to customary adjustments, at closing. The number of shares issued will be based on an average trading price determined as of the closing date and is subject to a minimum number of shares issuable of 47,124,445 and a maximum number of shares issuable of 57,596,544. The Tracfone Purchase Agreement also includes up to an additional $650 million in future cash consideration related to the achievement of certain performance measures and other commercial arrangements. The transaction is subject to regulatory approvals and closing conditions and is expected to close in the second half of 2021.

Bluegrass Cellular

In October 2020, we entered into a definitive agreement to acquire certain assets of Bluegrass Cellular (Bluegrass), a rural wireless operator serving central Kentucky. Bluegrass provides wireless service to 210,000 customers in 34 counties in rural service areas 3, 4, and 5 in Central Kentucky. The transaction closed in March 2021. The aggregate cash consideration paid by Verizon at the closing of the transaction was approximately $410 million, net of cash acquired, which is subject to customary closing adjustments.

The financial results of Bluegrass are included in the consolidated results of Verizon from the date of acquisition. These amounts are insignificant for the three months and six months ended June 30, 2021.

The acquisition of Bluegrass was accounted for as a business combination. We are currently assessing the identification and measurement of the assets acquired and liabilities assumed based on their fair values as of the close of the acquisition. Preliminarily, we recorded approximately $141 million of plant, property and equipment, $135 million of intangible assets and $91 million of goodwill. Goodwill is calculated as the difference between the acquisition date fair value of the consideration transferred and the fair value of the net assets acquired. The goodwill represents future economic benefits that we expect to achieve as a result of the acquisition. The goodwill related to this acquisition is included within Consumer.

Verizon Media

On May 2, 2021, Verizon entered into a definitive agreement with an affiliate of Apollo Global Management Inc. pursuant to which we agreed to sell Verizon Media in return for consideration of $4.3 billion in cash, subject to customary adjustments, $750 million in non-convertible preferred limited partnership units of the affiliate, and 10% of the fully-diluted common limited partnership units of the affiliate. The sale is subject to customary regulatory approvals and closing conditions and is expected to close in the second half of 2021.

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The following table summarizes the major classes of assets and liabilities of Verizon Media which are currently included in Verizon's continuing operations and classified as held for sale in our condensed consolidated balance sheet as of June 30, 2021:

	At June 30,
(dollars in millions)	2021
Assets held for sale:
Prepaid expenses and other
Cash and cash equivalents	$	100
Restricted cash	45
Accounts receivable	1,843
Other	127
	$	2,115
Other assets
Property, plant and equipment, net	$	1,140
Other intangible assets, net	2,469
Other	227
	$	3,836
Liabilities held for sale:
Other current liabilities
Accounts payable and accrued liabilities	$	1,665
Other	280
	$	1,945
Other liabilities	$	390

The sale includes all of the assets of Verizon Media, including its brands, businesses, and web domains. The operating results of this business are included within our Corporate and other segment for all periods presented. Refer to Note 2 for further details on revenues generated by Verizon Media under Topic 606.

Other

During the three and six months ended June 30, 2021, we completed other acquisitions for insignificant amounts of cash consideration.

Note 4. Wireless Licenses, Goodwill, and Other Intangible Assets

Wireless Licenses

The carrying amounts of our Wireless licenses, as well as wireless spectrum for which licenses have not yet been received, are as follows:

	At June 30,		At December 31,
(dollars in millions)	2021		2020
Wireless licenses	$	98,034	$	96,097
Deposits for wireless licenses	45,910		2,772

At June 30, 2021 and 2020, approximately $53.5 billion and $3.5 billion, respectively, of wireless licenses were under development for commercial service for which we were capitalizing interest costs. At June 30, 2021, the $53.5 billion was comprised of $8.0 billion recorded in Wireless licenses and $45.5 billion recorded in Deposits for wireless licenses. At June 30, 2020, $3.5 billion was recorded in Wireless licenses. We recorded approximately $154 million and $101 million of capitalized interest on wireless licenses for the six months ended June 30, 2021 and 2020, respectively. We recorded approximately $455 million of capitalized interest on Deposits for wireless licenses during the six months ended June 30, 2021.

In the first quarter of 2020, we reclassified substantially all of our 39 GHz wireless licenses, including capitalized interest, with a carrying value of $2.8 billion to assets held for sale in connection with the FCC's incentive auction, Auction 103. As a result, these wireless licenses were adjusted down to their fair value of $1.6 billion resulting in a pre-tax loss of $1.2 billion ($914 million after-tax) in 2020. The new reconfigured licenses were received in the second quarter 2020 and had a value of $3.4 billion.

During the six months ended June 30, 2021, we renewed various wireless licenses in accordance with FCC regulations. The average renewal period for these licenses was 10 years.

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Goodwill

Changes in the carrying amount of Goodwill are as follows:

(dollars in millions)	Consumer		Business		Other		Total
Balance at January 1, 2021 (1)	$	17,222	$	7,535	$	16	$	24,773
Acquisitions (2)	91		—		37		128
Reclassifications, adjustments and other	3		11		—		14
Balance at June 30, 2021 (1)	$	17,316	$	7,546	$	53	$	24,915

(1) Goodwill is net of accumulated impairment charges of $4.8 billion, related to our Media reporting unit.

(2) The change in goodwill due to acquisitions is related to Bluegrass and other insignificant transactions. See Note 3 for additional information.

Other Intangible Assets

The following table displays the composition of Other intangible assets, net as well as the respective amortization period:

	At June 30, 2021						At December 31, 2020
(dollars in millions)	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
Customer lists (8 to 13 years)	$	1,951	$	(996)	$	955	$	4,021	$	(1,961)	$	2,060
Non-network internal-use software (5 to 7 years)	20,080		(14,182)		5,898		21,685		(15,104)		6,581
Other (4 to 25 years)	901		(752)		149		1,771		(999)		772
Total	$	22,932	$	(15,930)	$	7,002	$	27,477	$	(18,064)	$	9,413

The amortization expense for Other intangible assets was as follows: 

	Three Months Ended		Six Months Ended
(dollars in millions)	June 30,		June 30,
2021	$	480	$	1,109
2020	605		1,197

The estimated future amortization expense for Other intangible assets for the remainder of the current year and next 5 years is as follows:

Years	(dollars in millions)
Remainder of 2021	$	786
2022	1,565
2023	1,350
2024	1,114
2025	911
2026	538

Note 5. Leasing Arrangements

We enter into various lease arrangements for network equipment including towers, distributed antenna systems, small cells, real estate and connectivity mediums including dark fiber, equipment, and other various types of assets for use in our operations. Our leases have remaining lease terms ranging from 1 year to 30 years, some of which include options that we can elect to extend the leases term for up to 25 years, and some of which include options to terminate the leases. For the majority of leases entered into during the current period, we have concluded it is not reasonably certain that we would exercise the options to extend the lease or terminate the lease. Therefore, as of the lease commencement date, our lease terms generally do not include these options. We include options to extend the lease when it is reasonably certain that we will exercise that option.

In April 2021, Verizon executed agreements that modified the tenure and payment terms for certain existing cell tower operating leases to support the build out of our fifth generation wireless network.

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The components of net lease cost were as follows:

		Three Months Ended				Six Months Ended
		June 30,				June 30,
(dollars in millions)	Classification	2021		2020		2021		2020
Operating lease cost (1)	Cost of services Selling, general and administrative expense	$	1,341	$	1,254	$	2,585	$	2,475
Finance lease cost:
Amortization of right-of-use assets	Depreciation and amortization expense	66		40		133		291
Interest on lease liabilities	Interest expense	9		10		17		20
Short-term lease cost (1)	Cost of services Selling, general and administrative expense	4		5		9		12
Variable lease cost (1)	Cost of services Selling, general and administrative expense	78		76		159		163
Sublease income	Service revenues and other	(49)		(74)		(97)		(144)
Total net lease cost		$	1,449	$	1,311	$	2,806	$	2,817

(1) All operating lease costs, including short-term and variable lease costs, are split between Cost of services and Selling, general and administrative expense in the condensed consolidated statements of income based on the use of the facility or equipment that the rent is being paid on. Refer to the consolidated financial statements included in Verizon's Annual Report on Form 10-K for the year ended December 31, 2020 for additional information. Variable lease costs represent payments that are dependent on a rate or index, or on usage of the asset.

The Company's maturity analysis of operating and finance lease liabilities as of June 30, 2021 were as follows:

			(dollars in millions)
Years	Operating Leases		Finance Leases
Remainder of 2021	$	2,186	$	204
2022	4,148		376
2023	3,924		310
2024	3,663		241
2025	3,292		120
Thereafter	14,516		97
Total lease payments	31,729		1,348
Less interest	4,488		73
Present value of lease liabilities	27,241		1,275
Less current obligation	3,881		377
Long-term obligation at June 30, 2021	$	23,360	$	898

Note 6. 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 Verizon and its subsidiaries that occurred during the six months ended June 30, 2021.

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Repayments, Redemptions and Repurchases

(dollars in millions)	Principal Repaid/ Redeemed/ Repurchased		Amount Paid (1)
Three Months Ended June 30, 2021
Verizon 2.946% notes due 2022	$	713	$	730
Verizon 2.450% notes due 2022	794		819
Verizon 5.150% notes due 2023	3,190		3,519
Open market repurchases of various Verizon and subsidiary notes	1,994		2,440
Three Months Ended June 30, 2021 total	6,691		7,508
Six Months Ended June 30, 2021 total	$	6,691	$	7,508

(1) Represents amount paid to repay, redeem, or repurchase, excluding interest or dividend.

Issuances

(amounts in millions)	Principal Amount Issued		Net Proceeds (1)
Three Months Ended March 31, 2021
Verizon 0.750% notes due 2024	$	1,750	$	1,746
Verizon floating rate (Compounded SOFR(2) + 0.500%) notes due 2024	750		748
Verizon 1.450% notes due 2026	2,750		2,737
Verizon floating rate (Compounded SOFR(2) + 0.790%) notes due 2026	750		748
Verizon 2.100% notes due 2028	3,000		2,988
Verizon 2.550% notes due 2031	4,250		4,216
Verizon 3.400% notes due 2041	3,750		3,726
Verizon 3.550% notes due 2051	4,500		4,426
Verizon 3.700% notes due 2061	3,500		3,439
Verizon 0.375% notes due 2029 (3)	€	1,000	1,186
Verizon 0.750% notes due 2032 (3)	€	1,000	1,181
Verizon 1.125% notes due 2035 (3)	€	750	878
Verizon 2.375% notes due 2028 (3)	C$	1,000	800
Verizon 4.050% notes due 2051 (3)	C$	500	399
Verizon 2.350% notes due 2028 (3)	A$	600	463
Verizon 3.000% notes due 2031 (3)	A$	500	385
Verizon 3.850% notes due 2041 (3)	A$	150	116
Verizon 0.193% bonds due 2028 (3)	CHF	375	403
Verizon 0.555% bonds due 2031 (3)	CHF	325	349
Three Months Ended March 31, 2021 total			30,934
Six Months Ended June 30, 2021 total			$	30,934

(1) Net proceeds were net of underwriting discounts and other issuance costs. In addition, for securities denominated in a currency other than the U.S. dollar, net proceeds are shown on a U.S. dollar equivalent basis.

(2) Compounded Secured Overnight Financing Rate (SOFR) is calculated using the SOFR Index published by the Federal Reserve Bank of New York in accordance with the terms of the notes. The Compounded SOFR for the initial interest period ending in June 2021 was 0.010%.

(3) See Note 8 for information on derivative transactions related to the issuances.

Asset-Backed Debt

As of June 30, 2021, the carrying value of our asset-backed debt was $10.3 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 Verizon, and certain other affiliates of Verizon (collectively, the Originators) transfer device payment plan agreement receivables to one of the ABS Entities, which in turn transfers such receivables 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 device payment plan agreement receivables and future collections on such receivables. The device payment plan agreement receivables 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

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of device payment plan agreement receivables, 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, Verizon has agreed to guarantee certain of the payment obligations of Cellco and the Originators to the ABS Entities.

Cash collections on the device payment plan agreement receivables 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 and the assets securing this debt are included in our condensed consolidated balance sheets.

ABS Notes

During the six months ended June 30, 2021, we completed the following ABS Notes transactions:

(dollars in millions)	Interest Rates %	Expected Weighted-average Life to Maturity (in years)	Principal Amount Issued
May 2021
A Senior class notes	0.500	2.99	$	1,500
B Junior class notes	0.690	2.99	119
C Junior class notes	0.890	2.99	81
Total			$	1,700

Under the terms of each series of ABS Notes, there is a revolving period that is two years or up to three years, as applicable, during which we may transfer additional receivables to the ABS Entity. During the three and six months ended June 30, 2021, we made aggregate principal repayments of $761 million and $1.5 billion, respectively, on ABS Notes that have entered the amortization period, including principal payments made in connection with clean-up redemptions. In July 2021, in connection with an optional acquisition of receivables and redemption of ABS Notes, we made a principal payment, in whole, for $125 million.

ABS Financing Facility

In March 2021, we borrowed an additional $1.0 billion under the loan agreement outstanding in connection with the ABS Financing Facility. In May 2021, the aggregate outstanding balance of $1.5 billion was fully repaid and there was no outstanding balance under the ABS Financing Facility as of June 30, 2021.

Variable Interest Entities (VIEs)

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)	2021		2020
Assets
Account receivable, net	$	8,877	$	9,257
Prepaid expenses and other	1,189		1,128
Other assets	3,248		2,950
Liabilities
Accounts payable and accrued liabilities	9		8
Debt maturing within one year	4,344		4,191
Long-term debt	5,971		6,413

See Note 7 for additional information on device payment plan agreement receivables used to secure asset-backed debt.

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Long-Term Credit Facilities

				At June 30, 2021
(dollars in millions)	Maturities	Facility Capacity		Unused Capacity		Principal Amount Outstanding
Verizon revolving credit facility (1)	2024	$	9,500	$	9,392	N/A
Various export credit facilities (2)	2022 - 2029	7,500		530		$	5,029
Total		$	17,000	$	9,922	$	5,029

N/A - not applicable

(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.

(2) During the six months ended June 30, 2021, we drew down $470 million from these facilities. These credit facilities are used to finance equipment-related purchases. Borrowings under certain of these facilities amortize 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, 2021 and 2020, we financed, primarily through alternative financing arrangements, the purchase of approximately $145 million and $673 million, respectively, of long-lived assets consisting primarily of network equipment. As of June 30, 2021 and December 31, 2020, $1.3 billion and $1.6 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.

Debt Extinguishment Losses

During both the three and six months ended June 30, 2021 and June 30, 2020, we recorded debt extinguishment losses of $1.1 billion and $102 million, respectively. The losses are recorded in Other income (expense), net in our condensed consolidated statements of income.

Guarantees

We guarantee the debentures of our operating telephone company subsidiaries. As of June 30, 2021, $765 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 Verizon.

We also guarantee the debt obligations of GTE LLC as successor in interest to GTE Corporation that were issued and outstanding prior to July 1, 2003. As of June 30, 2021, $391 million aggregate principal amount of these obligations remained outstanding.

Covenants

We and our consolidated subsidiaries are in compliance with all of our restrictive covenants in our debt agreements.

Note 7. Device Payment Plan Agreement and Wireless Service Receivables

The following table presents information about accounts receivable, net of allowances, recorded in our condensed consolidated balance sheet:

	At June 30, 2021
(dollars in millions)	Device payment plan agreement		Wireless service		Other receivables(1)		Total
Accounts receivable	$	12,157	$	5,006	$	5,074	$	22,237
Less Allowance for credit losses	575		145		260		980
Accounts receivable, net of allowance	$	11,582	$	4,861	$	4,814	$	21,257

(1) Other receivables primarily include wireline receivables and other receivables, the allowances for which are individually insignificant.

Under the Verizon device payment program, our eligible wireless customers purchase wireless devices under a device payment plan agreement. Customers that activate service on devices purchased under the device payment program pay lower service fees as compared to those under our fixed-term service plans, and their device payment plan charge is included on their wireless monthly bill. We no longer offer Consumer customers new fixed-term, subsidized service plans for devices; however, we continue to offer subsidized plans to our Business customers. We also continue to service existing plans for customers who have not yet purchased and activated devices under the Verizon device payment program.

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The following table displays device payment plan agreement receivables, net, recognized in our condensed consolidated balance sheets:

	At June 30,		At December 31,
(dollars in millions)	2021		2020
Device payment plan agreement receivables, gross	$	18,537	$	17,959
Unamortized imputed interest	(397)		(453)
Device payment plan agreement receivables, at amortized cost	18,140		17,506
Allowance (1)	(833)		(940)
Device payment plan agreement receivables, net	$	17,307	$	16,566
Classified in our condensed consolidated balance sheets:
Accounts receivable, net	$	11,582	$	11,601
Other assets	5,725		4,965
Device payment plan agreement receivables, net	$	17,307	$	16,566

(1) Includes allowance for both short-term and long-term device payment plan agreement receivables.

Included in our device payment plan agreement receivables at June 30, 2021 and December 31, 2020, are net device payment plan agreement receivables of $12.0 billion and $12.1 billion, respectively, which have been transferred to ABS Entities and continue to be reported in our condensed consolidated balance sheets. See Note 6 for additional information. We believe the carrying value of these receivables approximate their fair value using a Level 3 expected cash flow model.

For indirect channel wireless contracts with customers, we impute risk adjusted interest on the device payment plan agreement receivables. We record the imputed interest as a reduction to the related accounts receivable. Interest income, which is included within Service revenues and other in our condensed consolidated statements of income, is recognized over the financed device payment term.

Promotions

In connection with certain device payment plan agreements, we may offer a promotion to allow our customers to upgrade to a new device after paying down a certain specified portion of the required device payment plan agreement amount as well as trading in their device in good working order. When a customer enters into a device payment plan agreement with the right to upgrade to a new device, we account for this trade-in right as a guarantee obligation. We recognize a liability measured at fair value for the customer’s right to trade in the device which is determined by considering several factors, including the weighted-average selling prices obtained in recent resales of similar devices eligible for trade-in. At June 30, 2021 and December 31, 2020, the amount of the guarantee liability was $52 million and insignificant, respectively.

We may offer certain promotions that allow a customer to trade in their owned device in connection with the purchase of a new device. Under these types of promotions, the customer receives a credit for the value of the trade-in device. At June 30, 2021 and December 31, 2020, the amount of trade-in liability was $174 million and $70 million, respectively.

In addition, we may provide the customer with additional future billing credits that will be applied against the customer’s monthly bill as long as service is maintained. These future billing credits are accounted for as consideration payable to a customer and are included in the determination of total transaction price, resulting in a contract liability.

Device payment plan agreement receivables, net, does not reflect the trade-in liability, additional future credits or the guarantee liability.

Origination of Device Payment Plan Agreements

When originating device payment plan agreements, we use internal and external data sources to create a credit risk score to measure the credit quality of a customer and to determine eligibility for the device payment program. Verizon’s experience has been that the payment attributes of longer tenured customers are highly predictive for estimating their reliability to make future payments. Customers with longer tenures tend to exhibit similar risk characteristics to other customers with longer tenures, and receivables due from customers with longer tenures tend to perform better than receivables from customers that have not previously been Verizon customers. As a result of this experience, we make initial lending decisions based upon whether the customers are "established customers" or "short-tenured customers." If a Consumer customer has been a customer for 45 days or more, or if a Business customer has been a customer for 12 months or more, the customer is considered an "established customer." For established customers, the credit decision and ongoing credit monitoring processes rely on a combination of internal and external data sources. If a Consumer customer has been a customer less than 45 days, or a Business customer has been a customer for less than 12 months, the customer is considered a "short-tenured customer." For short-tenured customers, the credit decision and credit monitoring processes rely more heavily on external data sources.

Internal data and/or external credit data are obtained from the credit reporting agencies, if available, to create a custom credit risk score for Consumer customers. The custom credit risk score is generated automatically from the applicant’s credit data using proprietary custom credit models. The credit risk score measures the likelihood that the potential customer will become severely delinquent and be disconnected for non-payment. For a small portion of short-tenured customer applications, a traditional credit report is not available from one of the national credit reporting agencies because the potential customer does not have sufficient credit history. In those instances, alternative credit data is used for the risk assessment. For Business customers, we also verify the existence of the business with external data sources.

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Based on the custom credit risk score, we assign each customer to a credit class, each of which has specified offers of credit including an account level spending limit and either a maximum amount of credit allowed per device or a required down payment percentage.

Credit Quality Information

Subsequent to origination, we assess indicators for the quality of our wireless device payment plan agreement portfolio using two models, one for new customers and one for existing customers. The model for new customers pools all Consumer and Business wireless customers based on 210 days and 12 months or less, respectively, as "new customers." The model for existing customers pools all Consumer and Business wireless customers based on 210 days and 12 months or more, respectively, as "existing customers."

The following table presents device payment plan agreement receivables, at amortized cost, as of June 30, 2021, by credit quality indicator and year of origination:

	Year of Origination
(dollars in millions)	2021		2020		Prior to 2020(1)		Total
New customers	$	1,335	$	1,183	$	218	$	2,736
Existing customers	7,074		7,072		1,258		15,404
Total	$	8,409	$	8,255	$	1,476	$	18,140

(1) Includes accounts that have been suspended at a point in time.

The data presented in the table above was last updated on June 30, 2021.

We assess indicators for the quality of our wireless service receivables portfolio as one overall pool. As of June 30, 2021, wireless service receivables, at amortized cost, originating in 2021 and 2020 were $5.0 billion and an insignificant amount, respectively.

Allowance for Credit Losses

The credit quality indicators are used in determining the estimated amount and the timing of expected credit losses for the device payment plan agreement and wireless service receivables portfolios.

For device payment plan agreement receivables, we record bad debt expense based on a default and loss calculation using our proprietary loss model. The expected loss rate is determined based on customer credit scores and other qualitative factors as noted above. The loss rate is assigned individually on a customer by customer basis and the custom credit scores are then aggregated by vintage and used in our proprietary loss model to calculate the weighted-average loss rate used for determining the allowance balance.

We monitor the collectability of our wireless service receivables as one overall pool. Wireline service receivables are disaggregated and pooled by the following customer groups: consumer, small and medium business, global enterprise, public sector and wholesale. For wireless service receivables and wireline consumer and small and medium business receivables, the allowance is calculated based on a 12 month rolling average write-off balance multiplied by the average life-cycle of an account from billing to write-off. The risk of loss is assessed over the contractual life of the receivables and is adjusted based on the historical loss amounts for current and future conditions based on management’s qualitative considerations. For global enterprise, public sector and wholesale wireline receivables, the allowance for credit losses is based on historical write-off experience and individual customer credit risk, if applicable.

Activity in the allowance for credit losses by portfolio segment of receivables were as follows:

(dollars in millions)	Device Payment Plan Agreement Receivables(1)		Wireless Service Plan Receivables
Balance at January 1, 2021	$	940	$	262
Current period provision for expected credit losses	235		87
Write-offs charged against the allowance	(365)		(238)
Recoveries collected	23		34
Balance at June 30, 2021	$	833	$	145

(1) Includes allowance for both short-term and long-term device payment plan agreement receivables.

We monitor delinquency and write-off experience based on the quality of our device payment plan agreement and wireless service receivables portfolios. The extent of our collection efforts with respect to a particular customer are based on the results of our proprietary custom internal scoring models that analyze the customer’s past performance to predict the likelihood of the customer falling further delinquent. These custom scoring models assess a number of variables, including origination characteristics, customer account history and payment patterns. Since our customers’ behaviors may be impacted by general economic conditions, we analyzed whether changes in macroeconomic conditions impact our credit loss experience and have concluded that our credit loss estimates are generally not materially impacted by reasonable and supportable forecasts of future economic conditions. Based on the score derived from these models, accounts are grouped by risk category to determine the collection strategy to be applied to such accounts. For device payment plan agreement receivables, we consider an account to be delinquent and in default status if there are unpaid charges remaining on the account on the day after the bill’s due date. For wireless service receivables, an account is considered delinquent 34 days after the bill cycle date. The risk class determines the speed and severity of the collections effort including initiatives taken to facilitate customer payment.

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The balance and aging of the device payment plan agreement receivables, at amortized cost, were as follows:

	At June 30,
(dollars in millions)	2021
Unbilled	$	17,040
Billed:
Current	948
Past due	152
Device payment plan agreement receivables, at amortized cost	$	18,140

Note 8. Fair Value Measurements

Recurring Fair Value Measurements

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2021:

(dollars in millions)	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Prepaid expenses and other:
Interest rate swaps	$	—	$	184	$	—	$	184
Cross currency swaps	—		12		—		12
Other assets:
Fixed income securities	—		464		—		464
Interest rate swaps	—		330		—		330
Cross currency swaps	—		1,068		—		1,068
Total	$	—	$	2,058	$	—	$	2,058
Liabilities:
Other current liabilities:
Foreign exchange forwards	$	—	$	13	$	—	$	13
Cross currency swaps	—		295		—		295
Forward starting interest rate swaps	—		281		—		281
Other liabilities:
Interest rate swaps	—		572		—		572
Cross currency swaps	—		462		—		462
Total	$	—	$	1,623	$	—	$	1,623

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The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2020:

(dollars in millions)	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Prepaid expenses and other:
Foreign exchange forwards	$	—	$	12	$	—	$	12
Other assets:
Fixed income securities	—		459		—		459
Interest rate swaps	—		787		—		787
Cross currency swaps	—		1,446		—		1,446
Total	$	—	$	2,704	$	—	$	2,704
Liabilities:
Other current liabilities:
Forward starting interest rate swaps	$	—	$	409	$	—	$	409
Foreign exchange forwards	—		2		—		2
Other liabilities:
Interest rate swaps	—		303		—		303
Cross currency swaps	—		196		—		196
Forward starting interest rate swaps	—		388		—		388
Total	$	—	$	1,298	$	—	$	1,298

(1)Quoted prices in active markets for identical assets or liabilities.

(2)Observable inputs other than quoted prices in active markets for identical assets and liabilities.

(3)Unobservable pricing inputs in the market.

Certain of our equity investments do not have readily determinable fair values and are excluded from the tables above. Such investments are measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer and are included in Investments in unconsolidated businesses in our condensed consolidated balance sheets. As of June 30, 2021 and December 31, 2020, the carrying amount of our investments without readily determinable fair values were $413 million and $402 million, respectively. During both the three and six months ended June 30, 2021, there were insignificant adjustments due to observable price changes. Cumulative adjustments due to observable price changes were $87 million.

Fixed income securities consist primarily of investments in municipal bonds. The valuation of the fixed income securities are based on the quoted prices for similar assets in active markets or identical assets in inactive markets or models that apply inputs from observable market data. The valuation determines that these securities are classified as Level 2.

Derivative contracts are valued using models based on readily observable market parameters for all substantial terms of our derivative contracts and thus are classified within Level 2. We use mid-market pricing for fair value measurements of our derivative instruments. Our derivative instruments are recorded on a gross basis.

We recognize transfers between levels of the fair value hierarchy as of the end of the reporting period.

Fair Value of Short-term and Long-term Debt

The fair value of our debt is determined using various methods, including quoted prices for identical debt instruments, which is a Level 1 measurement, as well as quoted prices for similar debt instruments with comparable terms and maturities, which is a Level 2 measurement.

The fair value of our short-term and long-term debt, excluding finance leases, was as follows:

			Fair Value
(dollars in millions)	Carrying Amount		Level 1		Level 2		Level 3		Total
At December 31, 2020	$	127,778	$	103,967	$	52,785	$	—	$	156,752
At June 30, 2021	150,641		112,613		61,703		—		174,316

Derivative Instruments

We enter into derivative transactions primarily to manage our exposure to fluctuations in foreign currency exchange rates and interest rates. We employ risk management strategies, which may include the use of a variety of derivatives including interest rate swaps, cross currency swaps, forward starting interest rate swaps, treasury rate locks, interest rate caps and foreign exchange forwards. We do not hold derivatives for trading purposes.

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The following table sets forth the notional amounts of our outstanding derivative instruments:

	At June 30,		At December 31,
(dollars in millions)	2021		2020
Interest rate swaps	$	17,608	$	17,768
Cross currency swaps	32,502		26,288
Forward starting interest rate swaps	1,000		2,000
Foreign exchange forwards	1,490		1,405

Interest Rate Swaps

We enter into interest rate swaps to achieve a targeted mix of fixed and variable rate debt. We principally receive fixed rates and pay variable rates, resulting in a net increase or decrease to Interest expense. These swaps are designated as fair value hedges and hedge against interest rate risk exposure of designated debt issuances. We record the interest rate swaps at fair value in our condensed consolidated balance sheets as assets and liabilities. Changes in the fair value of the interest rate swaps are recorded to Interest expense, which are offset by changes in the fair value of the hedged debt due to changes in interest rates.

During the three months ended June 30, 2021, we entered into and settled interest rate swaps with a total notional value of $1.6 billion and $1.8 billion, respectively. During the six months ended June 30, 2021, we entered into and settled interest rate swaps with a total notional value of $2.6 billion and $2.7 billion, respectively. During the three months ended June 30, 2020, we did not enter into any interest rate swaps and we settled interest rate swaps with a total notional value of $929 million. During the six months ended June 30, 2020, we entered into and settled interest rate swaps with a total notional value of $2.4 billion.

The ineffective portion of these interest rate swaps were zero and an insignificant amount of gains for the three and six months ended June 30, 2021, respectively. The ineffective portion of these interest rate swaps were losses of an insignificant amount and gains of $56 million for the three and six months ended June 30, 2020, respectively.

The following amounts were recorded in Long-term debt in our condensed consolidated balance sheets related to cumulative basis adjustments for fair value hedges:

	At June 30,		At December 31,
(dollars in millions)	2021		2020
Carrying amount of hedged liabilities	$	18,021	$	18,849
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities	25		557
Cumulative amount of fair value hedging adjustment remaining for which hedge accounting has been discontinued	637		627

Cross Currency Swaps

We have entered into cross currency swaps designated as cash flow hedges to exchange our British Pound Sterling, Euro, Swiss Franc, Canadian Dollar and Australian Dollar-denominated cash flows into U.S. dollars and to fix our cash payments in U.S. dollars, as well as to mitigate the impact of foreign currency transaction gains or losses.

During the three months ended June 30, 2021, we did not enter into or settle any cross currency swaps. During the six months ended June 30, 2021, we entered into cross currency swaps with a total notional value of $6.2 billion and we did not settle any cross currency swaps. During the three and six months ended June 30, 2021, a pre-tax loss of $701 million and $927 million, respectively, was recognized in Other comprehensive income (loss). During both the three and six months ended June 30, 2020, we entered into cross currency swaps with a total notional value of $3.3 billion and we settled cross currency swaps with a total notional value of $1.6 billion. During the three and six months ended June 30, 2020, a pre-tax gain of $1.0 billion and a pre-tax loss of $1.9 billion, respectively, were recognized in Other comprehensive income (loss). A portion of the gains recognized in Other comprehensive income (loss) was reclassified to Other income (expense), net to offset the related pre-tax foreign currency transaction gain or loss on the underlying hedged item. See Note 10 for additional information.

Forward Starting Interest Rate Swaps

We have entered into forward starting interest rate swaps designated as cash flow hedges in order to manage our exposure to interest rate changes on future forecasted transactions. We hedge our exposure to the variability in future cash flows based on the expected maturities of the related forecasted debt issuance.

During both the three and six months ended June 30, 2021 and 2020, we did not enter into any new forward starting interest rate swaps. During both the three months ended June 30, 2021 and 2020, we did not settle any forward starting interest rate swaps. During both the six months ended June 30, 2021 and 2020, we settled forward starting interest rate swaps with a total notional value of $1.0 billion. During the six months ended June 30, 2021 and 2020, we paid $237 million and $293 million, respectively, for the settlement of forward starting interest rate swaps, which was recorded in Other, net within Cash Flow from Operating Activities. During the three and six months ended June 30, 2021, a pre-tax loss of $121 million and a pre-tax gain of $279 million, respectively, were recognized in Other comprehensive income (loss),

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resulting from interest rate movements. During the three and six months ended June 30, 2020, an insignificant pre-tax gain and a pre-tax loss of $809 million, respectively, was recognized in Other comprehensive income (loss), resulting from interest rate movements.

Treasury Rate Locks

We enter into treasury rate locks to mitigate our future interest rate risk. During both the three months ended June 30, 2021 and 2020, we did not enter into or settle any treasury rate locks designated as cash flow hedges, and we did not recognize any amount in Other comprehensive income (loss). During the six months ended June 30, 2021, we entered into and settled treasury rate locks designated as cash flow hedges with a total notional value of $4.7 billion, and we recognized $251 million in Other comprehensive income (loss). During the six months ended June 30, 2021, we received $251 million from the settlement of treasury rate locks designated as cash flow hedges, which was recorded in Other, net within Cash Flow from Operating Activities. During the six months ended June 30, 2020, we entered into and settled treasury rate locks designated as cash flow hedges with a total notional value of $500 million, and we recognized an insignificant pre-tax loss in Other comprehensive income (loss).

Net Investment Hedges

We have designated certain foreign currency debt instruments as net investment hedges to mitigate foreign exchange exposure related to non-U.S. dollar net investments in certain foreign subsidiaries against changes in foreign exchange rates. In March 2021, we de-designated the existing net investment hedge and designated a new net investment hedge using a different Euro-denominated note. The notional amount of Euro-denominated debt designated as a net investment hedge was €750 million as of both June 30, 2021 and December 31, 2020.

Undesignated Derivatives

We also have the following derivative contracts which we use as economic hedges but for which we have elected not to apply hedge accounting.

Foreign Exchange Forwards

We enter into British Pound Sterling and Euro foreign exchange forwards to mitigate our foreign exchange rate risk related to non-functional currency denominated monetary assets and liabilities of international subsidiaries, as well as foreign exchange risk related to debt settlements. During the three months ended June 30, 2021, we entered into and settled foreign exchange forwards with a total notional value of $3.7 billion and $3.5 billion, respectively. During the six months ended June 30, 2021, we entered into and settled foreign exchange forwards with a total notional value of $7.2 billion and $7.1 billion, respectively. During the three months ended June 30, 2020, we entered into and settled foreign exchange forwards with a total notional value of $4.3 billion and $4.2 billion, respectively. During the six months ended June 30, 2020, we entered into and settled foreign exchange forwards with a total notional value of $6.9 billion and $7.1 billion, respectively. During the three and six months ended June 30, 2021, insignificant pre-tax gains and insignificant pre-tax losses, respectively, were recognized in Other income (expense), net. During the three and six months ended June 30, 2020, pre-tax gains of $81 million and an insignificant amount, respectively, were recognized in Other income (expense), net.

Treasury Rate Locks

We enter into treasury rate locks to mitigate our future interest rate risk. During both the three and six months ended June 30, 2021, we did not enter into or settle any treasury rate locks that were not designated in hedging relationships, and we did not recognize any amount in our condensed consolidated financial statement. During the three months ended June 30, 2020, we did not enter into or settle any treasury rate locks, and we did not recognize any amount in our condensed consolidated financial statements. During the six months ended June 30, 2020, we entered into and settled treasury rate locks with a total notional value of $1.6 billion, and we recognized an insignificant pre-tax gain in Interest expense.

Concentrations of Credit Risk

Financial instruments that subject us to concentrations of credit risk consist primarily of temporary cash investments, short-term and long-term investments, trade receivables, including device payment plan agreement receivables, certain notes receivable, including lease receivables, and derivative contracts.

Counterparties to our derivative contracts are major financial institutions with whom we have negotiated derivatives agreements (ISDA master agreements) and credit support annex (CSA) agreements which provide rules for collateral exchange. The CSA agreements contain rating based thresholds such that we or our counterparties may be required to hold or post collateral based upon changes in outstanding positions as compared to established thresholds and changes in credit ratings. We do not offset fair value amounts recognized for derivative instruments and fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments recognized at fair value. At June 30, 2021, we held $0.1 billion and posted an insignificant amount of collateral related to derivative contracts under collateral exchange agreements, which were recorded as Other current liabilities and Prepaid expenses and other, respectively, in our condensed consolidated balance sheet. At December 31, 2020, we held $0.2 billion of collateral related to derivative contracts under collateral exchange arrangements, which were recorded as Other current liabilities in our condensed consolidated balance sheet. While we may be exposed to credit losses due to the nonperformance of our counterparties, we consider the risk remote and do not expect that any such nonperformance would result in a significant effect on our results of operations or financial condition due to our diversified pool of counterparties.

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Note 9. 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 to reflect actual return on plan assets and updated actuarial assumptions or upon a remeasurement event. The adjustment is recognized in the income statement during the fourth quarter or upon a remeasurement event pursuant to our accounting policy for the recognition of actuarial gains and losses.

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)
	Pension				Health Care and Life
Three Months Ended June 30,	2021		2020		2021		2020
Service cost - Cost of services	$	62	$	59	$	23	$	23
Service cost - Selling, general and administrative expense	9		14		5		5
Service cost	$	71	$	73	$	28	$	28
Amortization of prior service cost (credit)	$	15	$	15	$	(224)	$	(242)
Expected return on plan assets	(309)		(296)		(5)		(6)
Interest cost	99		137		73		107
Remeasurement loss (gain), net	(1,314)		153		—		—
Other components	$	(1,509)	$	9	$	(156)	$	(141)
Total	$	(1,438)	$	82	$	(128)	$	(113)

	(dollars in millions)
	Pension				Health Care and Life
Six Months Ended June 30,	2021		2020		2021		2020
Service cost - Cost of services	$	127	$	118	$	47	$	45
Service cost - Selling, general and administrative expense	18		28		10		10
Service cost	$	145	$	146	$	57	$	55
Amortization of prior service cost (credit)	$	30	$	30	$	(447)	$	(483)
Expected return on plan assets	(618)		(593)		(11)		(13)
Interest cost	194		277		145		214
Remeasurement loss (gain), net	(1,314)		335		—		—
Other components	$	(1,708)	$	49	$	(313)	$	(282)
Total	$	(1,563)	$	195	$	(256)	$	(227)

The service cost component of net periodic benefit cost (income) is recorded in Cost of services and Selling, general and administrative expense in the condensed consolidated statements of income while the other components, including remeasurement adjustments, if any, are recorded in Other income (expense), net.

Severance Payments

During the three and six months ended June 30, 2021, we paid severance benefits of an insignificant amount and $129 million, respectively. During the six months ended June 30, 2021, we recorded pre-tax severance charges of an insignificant amount. At June 30, 2021, we had a remaining severance liability of $490 million, a portion of which includes future contractual payments to separated employees.

Employer Contributions

During both the three and six months ended June 30, 2021 and June 30, 2020, we made no contributions to our qualified pension plans and made insignificant contributions to our nonqualified pension plans. We do not expect mandatory pension funding through December 31, 2021. There have been no significant changes with respect to the nonqualified pension and other postretirement benefit plans contributions in 2021.

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Remeasurement loss (gain), net

During both the three and six months ended June 30, 2021, we recorded a pre-tax remeasurement gain of $1.3 billion in our pension plans triggered by settlements, primarily driven by a $1.2 billion credit mainly due to changes in our discount rate and changes in our lump sum interest rate assumptions used to determine the current year liabilities of our pension plans and a $122 million credit resulting from the difference between our estimated and our actual return on assets.

During the three months ended June 30, 2020, we recorded a net pre-tax remeasurement loss of $153 million primarily driven by a $163 million charge mainly resulting from the difference between our estimated and our actual return on assets and changes in our lump sum interest rate assumptions used to determine the current year liabilities of our pension plans, offset by a credit due to changes in our discount rate.

During the three months ended March 31, 2020, we recorded a net pre-tax remeasurement loss of $182 million primarily driven by a $196 million charge mainly due to changes in our discount rate and lump sum interest rate assumptions used to determine the current year liabilities of our pension plans, offset by a credit resulting from the difference between our estimated and our actual return on assets.

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Note 10. Equity and Accumulated Other Comprehensive Income (Loss)

Equity

Changes in the components of Total equity were as follows:

(dollars in millions, except per share amounts, and shares in thousands)
Three months ended June 30,	2021			2020
	Shares	Amount		Shares	Amount
Common Stock
Balance at beginning of period	4,291,434	$	429	4,291,434	$	429
Balance at end of period	4,291,434	429		4,291,434	429
Additional Paid In Capital
Balance at beginning of period		13,408			13,302
Other		(5)			(21)
Balance at end of period		13,403			13,281
Retained Earnings
Balance at beginning of period		63,107			54,557
Net income attributable to Verizon		5,800			4,700
Dividends declared ($0.6275, $0.6150 per share)		(2,597)			(2,544)
Other		—			33
Balance at end of period		66,310			56,746
Accumulated Other Comprehensive Income (Loss)
Balance at beginning of period attributable to Verizon		640			(1,502)
Foreign currency translation adjustments		58			77
Unrealized gain (loss) on cash flow hedges		(777)			314
Unrealized gain (loss) on marketable securities		—			6
Defined benefit pension and postretirement plans		(155)			(169)
Other comprehensive income (loss)		(874)			228
Balance at end of period attributable to Verizon		(234)			(1,274)
Treasury Stock
Balance at beginning of period	(151,366)	(6,634)		(153,438)	(6,725)
Employee plans	48	2		58	3
Balance at end of period	(151,318)	(6,632)		(153,380)	(6,722)
Deferred Compensation-ESOPs and Other
Balance at beginning of period		282			149
Restricted stock equity grant		131			157
Amortization		(5)			(69)
Balance at end of period		408			237
Noncontrolling Interests
Balance at beginning of period		1,451			1,443
Total comprehensive income		149			139
Distributions and other		(172)			(166)
Balance at end of period		1,428			1,416
Total Equity		$	75,112		$	64,113

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(dollars in millions, except per share amounts, and shares in thousands)
Six months ended June 30,	2021			2020
	Shares	Amount		Shares	Amount
Common Stock
Balance at beginning of year	4,291,434	$	429	4,291,434	$	429
Balance at end of period	4,291,434	429		4,291,434	429
Additional Paid In Capital
Balance at beginning of year		13,404			13,419
Other		(1)			(138)
Balance at end of period		13,403			13,281
Retained Earnings
Balance at beginning of year		60,464			53,147
Opening balance sheet adjustment		—			(200)		(1)
Adjusted opening balance		60,464			52,947
Net income attributable to Verizon		11,045			8,856
Dividends declared ($1.2550, $1.2300 per share)		(5,199)			(5,090)
Other		—			33
Balance at end of period		66,310			56,746
Accumulated Other Comprehensive Income (Loss)
Balance at beginning of year attributable to Verizon		(71)			998
Foreign currency translation adjustments		20			(43)
Unrealized gain (loss) on cash flow hedges		132			(1,896)
Unrealized gain (loss) on marketable securities		(5)			5
Defined benefit pension and postretirement plans		(310)			(338)
Other comprehensive loss		(163)			(2,272)
Balance at end of period attributable to Verizon		(234)			(1,274)
Treasury Stock
Balance at beginning of year	(153,304)	(6,719)		(155,606)	(6,820)
Employee plans	1,983	87		2,222	98
Shareholder plans	3	—		4	—
Balance at end of period	(151,318)	(6,632)		(153,380)	(6,722)
Deferred Compensation-ESOPs and Other
Balance at beginning of year		335			222
Restricted stock equity grant		230			172
Amortization		(157)			(157)
Balance at end of period		408			237
Noncontrolling Interests
Balance at beginning of year		1,430			1,440
Total comprehensive income		282			270
Distributions and other		(284)			(294)
Balance at end of period		1,428			1,416
Total Equity		$	75,112		$	64,113

(1) Opening balance sheet adjustment for the six months ended June 30, 2020 is due to the adoption of Topic 326, ASU 2016-13, Financial Instruments-Credit Losses and other ASUs on January 1, 2020. Refer to the consolidated financial statements included in Verizon's Annual Report on Form 10-K for the year ended December 31, 2020 for additional information.

Common Stock

Verizon did not repurchase any shares of Verizon common stock through its previously authorized share buyback program during the six months ended June 30, 2021. At June 30, 2021, the maximum number of shares that could be purchased by or on behalf of Verizon under our share buyback program was 100 million.

Common stock has been used from time to time to satisfy some of the funding requirements of employee and shareowner plans, including 2.0 million common shares issued from Treasury stock during the six months ended June 30, 2021.

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Accumulated Other Comprehensive Income (Loss)

The changes in the balances of Accumulated other comprehensive income (loss) by component were as follows:

(dollars in millions)	Foreign  currency translation adjustments		Unrealized gain (loss) on cash flow hedges		Unrealized gain (loss) on marketable securities		Defined benefit pension and postretirement plans		Total
Balance at January 1, 2021	$	(404)	$	(1,387)	$	25	$	1,695	$	(71)
Other comprehensive income (loss)	20		(294)		(5)		—		(279)
Amounts reclassified to net income	—		426		—		(310)		116
Net other comprehensive income (loss)	20		132		(5)		(310)		(163)
Balance at June 30, 2021	$	(384)	$	(1,255)	$	20	$	1,385	$	(234)

The amounts presented above in net other comprehensive income (loss) are net of taxes. The amounts reclassified to net income related to unrealized loss on cash flow hedges in the table above are included in Other income (expense), net and Interest expense in our condensed consolidated statements of income. See Note 8 for additional information. The amounts reclassified to net income related to defined benefit pension and postretirement plans in the table above are included in Other income (expense), net in our condensed consolidated statements of income. See Note 9 for additional information.

Note 11. 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 brand and through wholesale and other arrangements. 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 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 IoT services and products. We provide these products and services to businesses, government customers and wireless and wireline carriers across the U.S. and select 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: Small and Medium Business, Global Enterprise, Public Sector and Other, and Wholesale.

Corporate and other includes the results of our media business, Verizon Media, and other businesses, investments in unconsolidated businesses, 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 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 as these items are included in the chief operating decision maker’s assessment of segment performance.

The reconciliation of segment operating revenues and expenses to consolidated operating revenues and expenses 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.

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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)	2021		2020		2021		2020
External Operating Revenues
Consumer
Service	$	16,704	$	15,898	$	33,270	$	32,241
Wireless equipment	4,739		3,209		8,931		6,586
Other	1,973		1,946		3,955		3,932
Total Consumer	23,416		21,053		46,156		42,759
Business
Small and Medium Business	2,890		2,597		5,715		5,395
Global Enterprise	2,582		2,587		5,139		5,217
Public Sector and Other	1,614		1,523		3,259		2,997
Wholesale	658		756		1,393		1,516
Total Business	7,744		7,463		15,506		15,125
Total reportable segments	$	31,160	$	28,516	$	61,662	$	57,884
Intersegment Revenues
Consumer	$	61	$	60	$	119	$	119
Business	18		19		37		38
Total reportable segments	$	79	$	79	$	156	$	157
Total Operating Revenues
Consumer	$	23,477	$	21,113	$	46,275	$	42,878
Business(1)	7,762		7,482		15,543		15,163
Total reportable segments	$	31,239	$	28,595	$	61,818	$	58,041
Operating Income
Consumer	$	7,497	$	7,064	$	15,016	$	14,346
Business	856		946		1,755		1,900
Total reportable segments	$	8,353	$	8,010	$	16,771	$	16,246

(1) Service and other revenues included in our Business segment amounted to approximately $7.0 billion for both the three months ended June 30, 2021 and 2020, respectively. Service and other revenues included in our Business segment amounted to approximately $14.0 billion and $13.9 billion for the six months ended June 30, 2021 and 2020, respectively. Wireless equipment revenues included in our Business segment amounted to approximately $804 million and $546 million for the three months ended June 30, 2021 and 2020, respectively. Wireless equipment revenues included in our Business segment amounted to approximately $1.6 billion and $1.3 billion for the six months ended June 30, 2021 and 2020, respectively.

The following table provides Fios revenue for our two reportable segments:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(dollars in millions)	2021		2020		2021		2020
Consumer	$	2,895	$	2,754	$	5,755	$	5,553
Business	281		260		557		522
Total Fios revenue	$	3,176	$	3,014	$	6,312	$	6,075

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)	2021		2020		2021		2020
Consumer	$	13,794	$	13,087	$	27,478	$	26,563
Business	3,090		2,861		6,150		5,742
Total Wireless service revenue	$	16,884	$	15,948	$	33,628	$	32,305

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Reconciliation to Consolidated Financial Information

A reconciliation of the reportable segment operating revenues to consolidated operating revenues is as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(dollars in millions)	2021		2020		2021		2020
Total reportable segment operating revenues	$	31,239	$	28,595	$	61,818	$	58,041
Corporate and other	2,662		1,967		5,084		4,239
Eliminations	(137)		(115)		(271)		(223)
Total consolidated operating revenues	$	33,764	$	30,447	$	66,631	$	62,057

A reconciliation of the total reportable segment's 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)	2021		2020		2021		2020
Total reportable segment operating income	$	8,353	$	8,010	$	16,771	$	16,246
Corporate and other	4		(445)		(229)		(704)
Other components of net periodic benefit charges (Note 9)	(192)		(204)		(384)		(407)
Loss on spectrum licenses (Note 3)	—		—		(223)		(1,195)
Total consolidated operating income	8,165		7,361		15,935		13,940
Equity in earnings (losses) of unconsolidated businesses	1		(13)		9		(25)
Other income (expense), net	502		(72)		903		71
Interest expense	(844)		(1,089)		(1,945)		(2,123)
Income Before Provision For Income Taxes	$	7,824	$	6,187	$	14,902	$	11,863

No single customer accounted for more than 10% of our total operating revenues during the three and six months ended June 30, 2021 or 2020.

The chief operating decision maker does not review disaggregated assets on a segment basis; therefore, such information is not presented. Depreciation included in the measure of segment profitability is primarily allocated based on proportional usage.

Note 12. Commitments and Contingencies

In the ordinary course of business, Verizon is involved in various commercial litigation and regulatory proceedings at the state and federal level. Where it is determined, in consultation with counsel based on litigation and settlement risks, that a loss is probable and estimable in a given matter, the Company establishes an accrual. In none of the currently pending matters is the amount of accrual material. An estimate of the reasonably possible loss or range of loss in excess of the amounts already accrued cannot be made at this time due to various factors typical in contested proceedings, including: (1) uncertain damage theories and demands; (2) a less than complete factual record; (3) uncertainty concerning legal theories and their resolution by courts or regulators; and (4) the unpredictable nature of the opposing party and its demands. We continuously monitor these proceedings as they develop and adjust any accrual or disclosure as needed. We do not expect that the ultimate resolution of any pending regulatory or legal matter in future periods will have a material effect on our financial condition, but it could have a material effect on our results of operations for a given reporting period.

Verizon is currently involved in approximately 20 federal district court actions alleging that Verizon is infringing various patents. Most of these cases are brought by non-practicing entities and effectively seek only monetary damages; a small number are brought by companies that have sold products and could seek injunctive relief as well. These cases have progressed to various stages and a small number may go to trial in the coming 12 months if they are not otherwise resolved.

In connection with the execution of agreements for the sales of businesses and investments, Verizon ordinarily provides representations and warranties to the purchasers pertaining to a variety of nonfinancial matters, such as ownership of the securities being sold, as well as indemnity from certain financial losses. From time to time, counterparties may make claims under these provisions, and Verizon will seek to defend against those claims and resolve them in the ordinary course of business.

Subsequent to the sale of Verizon Information Services Canada in 2004, we continue to provide a guarantee to publish directories, which was issued when the directory business was purchased in 2001 and had a 30-year term (before extensions). The preexisting guarantee continues, without modification, despite the subsequent sale of Verizon Information Services Canada and the spin-off of our domestic print and internet yellow pages directories business. The possible financial impact of the guarantee, which is not expected to be adverse, cannot be reasonably estimated as a variety of the potential outcomes available under the guarantee result in costs and revenues or benefits that may offset each other. We do not believe performance under the guarantee is likely.

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During the six months ended June 30, 2021, Verizon entered into one renewable energy purchase agreement (REPA) with a third party. The REPA is based on the expected operation of a renewable energy-generating facility and has a fixed price term of 15 years from the commencement of the facility's entry into commercial operation, which is expected to occur in 2022. The REPA generally is expected to be financially settled based on the prevailing market price as energy is generated by the facility.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

Verizon Communications Inc. (Verizon or the Company) is a holding company that, acting through its subsidiaries, is one of the world’s leading providers of communications, technology, information and entertainment products and services to consumers, businesses and government entities. With a presence around the world, we offer data, video and voice services and solutions on our networks and platforms that are designed to meet customers’ demand for mobility, reliable network connectivity, security and control.

To compete effectively in today’s dynamic marketplace, we are focused on the capabilities of our high-performing networks to drive growth based on delivering what customers want and need in the new digital world. In 2021, we are focused on leveraging our network leadership; retaining and growing our high-quality customer base while balancing profitability; enhancing ecosystems in growth businesses; and driving monetization of our networks, platforms and solutions. We are creating business value by earning customers', employees' and shareholders' trust, limiting our environmental impact and continuing our customer base growth while creating social benefit through our products and services. Our strategy requires significant capital investments primarily to acquire wireless spectrum, put the spectrum into service, provide additional capacity for growth in our networks, invest in the fiber that supports our businesses, evolve and maintain our networks and develop and maintain significant advanced information technology systems and data system capabilities. We believe that steady and consistent investments in our networks and platforms will drive innovative products and services and fuel our growth.

We are consistently deploying new network architecture and technologies to secure our leadership in both fourth-generation (4G) and fifth-generation (5G) wireless networks. We expect that our next-generation multi-use platform, which we call the Intelligent Edge Network, will simplify operations by eliminating legacy network elements, speed the deployment of 5G wireless technology and create new opportunities in the business market in a cost efficient manner. Our network leadership is the hallmark of our brand and the foundation for the connectivity, platforms and solutions upon which we build our competitive advantage.

Highlights of Our Financial Results for the Three Months Ended June 30, 2021 and 2020

(dollars in millions)

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Highlights of Our Financial Results for the Six Months Ended June 30, 2021 and 2020

(dollars in millions)

Business Overview

We have two reportable segments that we operate and manage as strategic business units - Verizon Consumer Group (Consumer) and Verizon Business Group (Business).

Revenue by Segment for the Three Months Ended June 30, 2021 and 2020

———

Note: Excludes eliminations.

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Revenue by Segment for the Six Months Ended June 30, 2021 and 2020

———

Note: Excludes eliminations.

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 United States (U.S.) under the Verizon brand and through wholesale and other arrangements. Fixed wireless access (FWA) is also provided to consumers for broadband access through our wireless networks. 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. 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.

Customers can obtain our wireless services on a postpaid or prepaid basis. Our postpaid service is generally billed one month in advance for a monthly access charge in return for access to and usage of network services. Our prepaid service is offered only to Consumer customers and enables individuals to obtain wireless services without credit verification by paying for all services in advance. The Consumer segment also offers several categories of wireless equipment to customers, including a variety of smartphones and other handsets, wireless-enabled internet devices, such as tablets and other wireless-enabled connected devices, such as smart watches.

In addition to the wireless services and equipment discussed above, Consumer sells residential fixed connectivity solutions, including internet, video and voice services, and wireless network access to resellers on a wholesale basis. The Consumer segment's operating revenues for the three and six months ended June 30, 2021 totaled $23.5 billion and $46.3 billion, respectively, representing an increase of 11.2% and 7.9%, respectively, compared to the similar periods in 2020. See "Segment Results of Operations" for additional information regarding our Consumer segment’s operating performance and selected operating statistics.

Verizon Business Group

Our Business segment provides wireless and wireline communications services and products, including 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 (IoT) services and products, including solutions that support fleet tracking management, compliance management, field service management, asset tracking and other types of mobile resource management. FWA is also provided to business customers for broadband access through our wireless networks. We provide these products and services to businesses, government customers and wireless and wireline carriers across the U.S. and select products and services to customers around the world. The Business segment's operating revenues for the three and six months ended June 30, 2021 totaled $7.8 billion and $15.5 billion, respectively, representing an increase of 3.7% and 2.5%, respectively, compared to the similar periods in 2020. See "Segment Results of Operations" for additional information regarding our Business segment’s operating performance and selected operating statistics.

Corporate and Other

Corporate and other includes the results of our media business, Verizon Media, and other businesses, investments in unconsolidated businesses, insurance captives, 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 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 transactions that are not individually significant are included in segment results as these items are included in the chief operating decision maker’s assessment of segment performance.

Verizon Media includes diverse media and technology brands that serve both consumers and businesses. Verizon Media provides consumers with owned and operated and third-party search properties as well as mail, news, finance, sports and entertainment content, e-commerce and subscription offerings, and provides other businesses and partners access to consumers through digital advertising, content delivery and video streaming platforms. Verizon Media's total operating revenues were $2.1 billion and $3.9 billion, respectively, for the three and six months ended June 30, 2021, which represents an increase of 49.7% and 28.1%, respectively, compared to the similar periods in 2020. On May 2,

35

2021, Verizon entered into a definitive agreement with an affiliate of Apollo Global Management Inc. pursuant to which we agreed to sell Verizon Media to the affiliate. The sale is subject to customary regulatory approvals and closing conditions and is expected to close in the second half of 2021. See Note 3 to the condensed consolidated financial statements for additional information.

Capital Expenditures and Investments

We continue to invest in our wireless networks, high-speed fiber and other advanced technologies to position ourselves at the center of growth trends for the future. During the six months ended June 30, 2021, these investments included $8.7 billion for capital expenditures. See "Cash Flows Used in Investing Activities" for additional information. Capital expenditures for 2021 are currently expected to be in the range of $17.5 billion to $18.5 billion, including the further expansion of our 5G network in new and existing markets, the densification of our 4G Long-Term Evolution (LTE) wireless network to manage future traffic demands, and the continued deployment of our fiber infrastructure. Expenditures related to the deployment of our C-Band spectrum will be in addition to this amount, and are expected to be approximately $10 billion over three years, with $2 billion to $3 billion expected in 2021. As of June 30, 2021, our capital expenditures include $164 million related to our C-Band deployment. We believe that our investments aimed at expanding our portfolio of products and services will provide our customers with an efficient, reliable infrastructure for competing in the information economy.

Global Network and Technology

We are focusing our capital spending on adding capacity and density to our 4G LTE network, while also building our next generation 5G network. We are densifying our networks by utilizing small cell technology, in-building solutions and distributed antenna systems. Network densification enables us to add capacity to address increasing mobile video consumption and the growing demand for IoT products and services on our 4G LTE and 5G networks. Over the past several years, we have been leading the development of 5G wireless technology industry standards and the ecosystems for fixed and mobile 5G wireless services. We expect that 5G technology will provide higher throughput and lower latency than the current 4G LTE technology and enable our networks to handle more traffic as the number of internet-connected devices grows. As of June 30, 2021, 5G Ultra Wideband is available in parts of 75 U.S. cities and 5G Home is available in parts of 40 U.S. cities. 5G Nationwide is available in over 2,700 U.S. markets. 5G Nationwide uses low and mid-band spectrum and dynamic spectrum sharing (DSS) technology, which allows 5G service to run simultaneously with 4G LTE on multiple spectrum bands. With DSS, whenever customers move outside Verizon’s high-band Ultra Wideband coverage area, their 5G-enabled devices will remain on 5G technology using the lower spectrum bands where the 5G Nationwide network is available. This allows us to more fully and effectively utilize our current spectrum resources to serve both 4G and 5G customers.

To compensate for the shrinking market for traditional copper-based products, we continue to build fiber-based networks supporting data, video and advanced business services - areas where demand for reliable high-speed connections is growing. We are evolving the architecture of our networks to our Intelligent Edge Network, providing improved efficiency and virtualization, increased automation and opportunities for edge computing services that will support both our fiber-based and radio access network technologies. We expect that this new architecture will simplify operations by eliminating legacy network elements, speed the deployment of 5G wireless technology and create new opportunities in the business market in a cost efficient manner.

Impact of the Novel Coronavirus (COVID-19) Pandemic

For a discussion of the impacts on and the risks to our business from COVID-19, refer to Item 1A Risk Factors and "Impacts of the Novel Coronavirus (COVID-19) Pandemic" in Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2020. The impacts from the COVID-19 Pandemic on our operations were most significant during the second quarter of 2020, which also significantly impact the comparability of the results from the second quarter of 2021 to the second quarter of 2020.

Recent Development

On July 23, 2021 Verizon received the wireless licenses from the Federal Communications Commission (FCC) in connection with C-Band wireless spectrum Auction 107. Following the receipt of the corresponding wireless licenses, the purchase cost for these licenses inclusive of related capitalized interest was reclassified from Deposits for wireless licenses to Wireless licenses in our condensed consolidated balance sheet.

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Consolidated Results of Operations

In this section, we discuss our overall results of operations and highlight special items that are not included in our segment results. In "Segment Results of Operations," we review the performance of our two reportable segments in more detail.

Consolidated Revenues

	Three Months Ended								Six Months Ended
	June 30,				Increase/				June 30,				Increase/
(dollars in millions)	2021		2020		(Decrease)				2021		2020		(Decrease)
Consumer	$	23,477	$	21,113	$	2,364	11.2	%	$	46,275	$	42,878	$	3,397	7.9	%
Business	7,762		7,482		280		3.7		15,543		15,163		380		2.5
Corporate and other	2,662		1,967		695		35.3		5,084		4,239		845		19.9
Eliminations	(137)		(115)		(22)		19.1		(271)		(223)		(48)		21.5
Consolidated Revenues	$	33,764	$	30,447	$	3,317	10.9		$	66,631	$	62,057	$	4,574	7.4

Consolidated revenues increased during both the three and six months ended June 30, 2021, compared to the similar periods in 2020, due to revenue increases in our Consumer segment, Business segment and Corporate and other.

Revenues for our segments are discussed separately below under the heading "Segment Results of Operations."

Corporate and other revenues increased during both the three and six months ended June 30, 2021, compared to the similar periods in 2020, primarily due to an increase of $687 million and $862 million, respectively, in revenues within Verizon Media.

Consolidated Operating Expenses

	Three Months Ended								Six Months Ended
	June 30,				Increase/				June 30,				Increase/
(dollars in millions)	2021		2020		(Decrease)				2021		2020		(Decrease)
Cost of services	$	8,324	$	7,639	$	685	9.0	%	$	16,344	$	15,393	$	951	6.2	%
Cost of wireless equipment	5,931		4,110		1,821		44.3		11,433		8,652		2,781		32.1
Selling, general and administrative expense	7,324		7,156		168		2.3		14,725		15,741		(1,016)		(6.5)
Depreciation and amortization expense	4,020		4,181		(161)		(3.9)		8,194		8,331		(137)		(1.6)
Consolidated Operating Expenses	$	25,599	$	23,086	$	2,513	10.9		$	50,696	$	48,117	$	2,579	5.4

Operating expenses for our segments are discussed separately below under the heading "Segment Results of Operations."

Cost of Services

Cost of services includes the following costs directly attributable to a service: salaries and wages, benefits, materials and supplies, content costs, contracted services, network access and transport costs, customer provisioning costs, computer systems support, costs to support our outsourcing contracts and technical facilities and traffic acquisition costs. Aggregate customer service costs, which include billing and service provisioning, are allocated between Cost of services and Selling, general and administrative expense.

Cost of services increased during both the three and six months ended June 30, 2021, compared to the similar periods in 2020, primarily due to increases in traffic acquisition costs, professional services, and costs related to the device protection offerings to our wireless retail postpaid customers. These increases were further driven by increases in regulatory fees as a result of an increase in the Federal Universal Service Fund (FUSF) rate, rent expense as a result of both adding capacity to the networks to support demand and lease modifications for certain existing cell towers, and building and facilities costs primarily due to increased utility rates. See Note 5 to the condensed consolidated financial statements for additional information on the lease modifications. These increases were partially offset by a decrease in access costs resulting from a decline in voice services.

Cost of Wireless Equipment

Cost of wireless equipment increased during both the three and six months ended June 30, 2021, compared to the similar periods in 2020, primarily due to increases in the number of wireless devices sold as well as a shift to higher priced devices in the mix of wireless devices sold. For the six months ended June 30, 2021, a further increase was driven by a recall undertaken for certain jetpack units.

Selling, General and Administrative Expense

Selling, general and administrative expense includes salaries and wages and benefits not directly attributable to a service or product, the provision for credit losses, taxes other than income taxes, advertising and sales commission costs, call center and information technology costs, regulatory fees, professional service fees and rent and utilities for administrative space. Also included is a portion of the aggregate customer care costs as discussed above in "Cost of Services."

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Selling, general and administrative expense increased and decreased during the three and six months ended June 30, 2021, respectively, compared to the similar periods in 2020. The increase during the three months ended June 30, 2021 was primarily due to an increase in advertising expense from brand messaging in 2021 as well as lower expenses in 2020 as a result of customer behavior during the COVID-19 pandemic, insurance and regulatory settlements, and costs related to data and network systems. The increase was partially offset by a decrease in sales commission expense as a result of actions taken in 2020 in response to the COVID-19 pandemic, and provision for credit losses as a result of both improvement in payment trends in 2021 as well as actions taken in 2020 in response to the COVID-19 pandemic. The decrease during the six months ended June 30, 2021 was primarily due to a $1.2 billion loss during the six months ended June 30, 2020 resulting from the spectrum license Auction 103, compared to the $223 million loss recognized during the six months ended June 30, 2021 resulting from agreements we entered into to sell certain wireless licenses. See "Special Items" for additional information. This decrease was further driven by a decrease in sales commission expense as a result of actions taken in 2020 in response to the COVID-19 pandemic, and provision for credit losses as a result of both improvement in payment trends in 2021 as well as actions taken in 2020 in response to the COVID-19 pandemic. The decreases were partially offset by increases in advertising expense due to brand messaging in 2021 as well as lower expenses in 2020 as a result of customer behavior during the COVID-19 pandemic and costs related to data and network systems.

Depreciation and Amortization Expense

Depreciation and amortization expense decreased during both the three and six months ended June 30, 2021, compared to the similar periods in 2020, primarily as a result of ceasing depreciation and amortization of certain assets of Verizon Media that were reclassified as assets held for sale during the quarter. See Note 3 to the condensed consolidated financial statements for additional information on the Verizon Media sale.

Other Consolidated Results

Other Income (Expense), Net

Additional information relating to Other income (expense), net is as follows:

	Three Months Ended								Six Months Ended
	June 30,				Increase/				June 30,				Increase/
(dollars in millions)	2021		2020		(Decrease)				2021		2020		(Decrease)
Interest income	$	11	$	16	$	(5)	(31.3)	%	$	26	$	36	$	(10)	(27.8)	%
Other components of net periodic benefit income	1,665		132		1,533		nm		2,021		233		1,788		nm
Other, net	(1,174)		(220)		(954)		nm		(1,144)		(198)		(946)		nm
Total	$	502	$	(72)	$	574	nm		$	903	$	71	$	832	nm

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Other income (expense), net, reflects certain items not directly related to our core operations, including interest income, gains and losses from non-operating asset dispositions, debt extinguishment costs, components of net periodic pension and postretirement benefit cost and income and foreign exchange gains and losses.

The changes in Other income (expense), net during the three and six months ended June 30, 2021, compared to the similar periods in 2020, were primarily attributable to a pension remeasurement gain of $1.3 billion recorded during both the three and six months ended June 30, 2021, compared with pension remeasurement losses of $153 million and $335 million recorded during the three and six months ended June 30, 2020, respectively. This was partially offset by an increase in early debt redemption costs of $1.0 billion recorded during both the three and six months ended June 30, 2021. See "Special Items" for additional information.

Interest Expense

	Three Months Ended										Six Months Ended
	June 30,						Increase/				June 30,						Increase/
(dollars in millions)	2021			2020			(Decrease)				2021			2020			(Decrease)
Total interest costs on debt balances	$	1,397		$	1,205		$	192	15.9	%	$	2,672		$	2,392		$	280	11.7	%
Less capitalized interest costs	553			116			437		nm		727			269			458		nm
Total Interest Expense	$	844		$	1,089		$	(245)	(22.5)	%	$	1,945		$	2,123		$	(178)	(8.4)	%
Average debt outstanding (1) (3)	$	155,251		$	117,239						$	143,767		$	114,950
Effective interest rate (2) (3)	3.6		%	4.1		%					3.7		%	4.2		%

(1)The average debt outstanding is a financial measure and is calculated by applying a simple average of prior months end balances of total short-term and long-term debt, net of discounts, premiums and unamortized debt issuance costs.

(2)The effective interest rate is the rate of actual interest incurred on debt. It is calculated by dividing the total interest costs on debt balances by the average debt outstanding.

(3)We believe that this measure is useful to management, investors and other users of our financial information in evaluating our debt financing cost and trends in our debt leverage management.

nm - not meaningful

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Total interest expense decreased during both the three and six months ended June 30, 2021, compared to the similar periods in 2020, primarily due to higher capitalized interest costs related to C-Band licenses won, partially offset by higher interest costs on higher average debt balances, which was partially offset by lower average interest rates as a result of our continued focus on optimizing our debt footprint and total borrowing costs. See Note 4 and Note 6 to the condensed consolidated financial statements for additional information.

Provision for Income Taxes

	Three Months Ended										Six Months Ended
	June 30,						Increase/				June 30,						Increase/
(dollars in millions)	2021			2020			(Decrease)				2021			2020			(Decrease)
Provision for income taxes	$	1,875		$	1,348		$	527	39.1	%	$	3,575		$	2,737		$	838	30.6	%
Effective income tax rate	24.0		%	21.8		%					24.0		%	23.1		%

The effective income tax rate is calculated by dividing the provision for income taxes by income before the provision for income taxes. The increase in the effective income tax rate during both the three and six months ended June 30, 2021 compared to the similar periods in 2020 was primarily due to a larger tax benefit recognized in the prior period from a series of legal entity restructurings compared to the current period. The increase in the provision for income taxes during both the three and six months ended June 30, 2021, compared to the similar periods in 2020, was primarily due to the increase in income before income taxes in the current period.    

Unrecognized Tax Benefits

Unrecognized tax benefits were $2.7 billion and $2.9 billion at June 30, 2021 and December 31, 2020, respectively. Interest and penalties related to unrecognized tax benefits were $352 million (after-tax) and $388 million (after-tax) at June 30, 2021 and December 31, 2020, respectively.

Verizon and/or its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state, local and foreign jurisdictions. As a large taxpayer, we are under audit by the Internal Revenue Service and multiple state and foreign jurisdictions for various open tax years. It is reasonably possible that the amount of the liability for unrecognized tax benefits could change by a significant amount in the next twelve months. An estimate of the range of the possible change cannot be made until these tax matters are further developed or resolved.

Consolidated Net Income, Consolidated EBITDA and Consolidated Adjusted EBITDA

Consolidated earnings before interest, taxes, depreciation and amortization expenses (Consolidated EBITDA) and Consolidated Adjusted EBITDA, which are presented below, are non-generally accepted accounting principles (GAAP) measures that we believe are useful to management, investors and other users of our financial information in evaluating operating profitability on a more variable cost basis as they exclude the depreciation and amortization expense related primarily to capital expenditures and acquisitions that occurred in prior years, as well as in evaluating operating performance in relation to Verizon’s competitors. Consolidated EBITDA is calculated by adding back interest, taxes, depreciation and amortization expenses to net income.

Consolidated Adjusted EBITDA is calculated by excluding from Consolidated EBITDA the effect of the following non-operational items: equity in losses of unconsolidated businesses and other income and expense, net, as well as the effect of special items. We believe that this measure is useful to management, investors and other users of our financial information in evaluating the effectiveness of our operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance. We believe that Consolidated Adjusted EBITDA is widely used by investors to compare a company’s operating performance to its competitors by minimizing impacts caused by differences in capital structure, taxes, and depreciation and amortization policies. Further, the exclusion of non-operational items and special items enables comparability to prior period performance and trend analysis. See "Special Items" for additional information.

It is management’s intent to provide non-GAAP financial information to enhance the understanding of Verizon’s GAAP financial information, and it should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure. We believe that providing these non-GAAP measures in addition to the GAAP measures allows management, investors and other users of our financial information to more fully and accurately assess both consolidated and segment performance. The non-GAAP financial information presented may be determined or calculated differently by other companies and may not be directly comparable to that of other companies.

39

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(dollars in millions)	2021		2020		2021		2020
Consolidated Net Income	$	5,949	$	4,839	$	11,327	$	9,126
Add:
Provision for income taxes	1,875		1,348		3,575		2,737
Interest expense (1)	844		1,089		1,945		2,123
Depreciation and amortization expense	4,020		4,181		8,194		8,331
Consolidated EBITDA	$	12,688	$	11,457	$	25,041	$	22,317
Add (Less):
Other (income) expense, net (2)	$	(502)	$	72	$	(903)	$	(71)
Equity in losses (earnings) of unconsolidated businesses	(1)		13		(9)		25
Loss on spectrum licenses	—		—		223		1,195
Consolidated Adjusted EBITDA	$	12,185	$	11,542	$	24,352	$	23,466

(1) Includes Early debt redemption costs, where applicable. See "Special Items" for additional information.

(2) Includes Pension and benefits mark-to-market adjustments and Early debt redemption costs, where applicable. See "Special Items" for additional information.

The changes in Consolidated Net Income, Consolidated EBITDA and Consolidated Adjusted EBITDA in the table above during the three and six months ended June 30, 2021, compared to the similar periods in 2020, were primarily a result of the factors described in connection with operating revenues and operating expenses.

Segment Results of Operations

We have three segments that we operate and manage as strategic business units, Consumer, Business and Media, of which Consumer and Business are our reportable segments. We measure and evaluate our segments based on segment operating income. The use of segment operating income is consistent with the chief operating decision maker’s assessment of segment performance.

To aid in the understanding of segment performance as it relates to segment operating income, management uses the following operating statistics to evaluate the overall effectiveness of our segments. We believe these operating statistics are useful to investors and other users of our financial information because they provide additional insight into drivers of our segments’ operating results, key trends and performance relative to our peers. These operating statistics may be determined or calculated differently by other companies and may not be directly comparable to those statistics of other companies.

Wireless retail connections are retail customer device postpaid and prepaid connections as of the end of the period. Retail connections under an account may include those from smartphones and basic phones (collectively, phones), as well as tablets and other internet devices, including wearables and retail IoT devices. Wireless retail connections are calculated by adding total retail postpaid and prepaid new connections in the period to prior period retail connections, and subtracting total retail postpaid and prepaid disconnects in the period.

Wireless retail postpaid connections are retail postpaid customer device connections as of the end of the period. Retail connections under an account may include those from phones, as well as tablets and other internet devices, including wearables and retail IoT devices. Wireless retail postpaid connections are calculated by adding retail postpaid new connections in the period to prior period retail postpaid connections, and subtracting retail postpaid disconnects in the period.

Fios internet connections are the total number of connections to the internet using Fios internet services as of the end of the period. Fios internet connections are calculated by adding Fios internet new connections in the period to prior period Fios internet connections, and subtracting Fios internet disconnects in the period.

Fios video connections are the total number of connections to traditional linear video programming using Fios video services as of the end of the period. Fios video connections are calculated by adding Fios video net additions in the period to prior period Fios video connections. Fios video net additions are calculated by subtracting the Fios video disconnects from the Fios video new connections.

Broadband connections are the total number of connections to the internet using Digital Subscriber Line (DSL) and Fios internet services as of the end of the period. Broadband connections are calculated by adding broadband net additions in the period to prior period broadband connections. Broadband net additions are calculated by subtracting the broadband disconnects from the broadband new connections.

Wireless retail connections, net additions are the total number of additional retail customer device postpaid and prepaid connections, less the number of device disconnects in the period. Wireless retail connections, net additions in each period presented are calculated by subtracting the total retail postpaid and prepaid disconnects, net of certain adjustments, from the total retail postpaid and prepaid new connections in the period.

40

Wireless retail postpaid connections, net additions are the total number of additional retail customer device postpaid connections, less the number of device disconnects in the period. Wireless retail postpaid connections, net additions in each period presented are calculated by subtracting the retail postpaid disconnects, net of certain adjustments, from the retail postpaid new connections in the period.

Wireless retail postpaid phone connections, net additions are the total number of additional retail customer postpaid phone connections, less the number of phone disconnects in the period. Wireless retail postpaid phone connections, net additions in each period presented are calculated by subtracting the retail postpaid phone disconnects, net of certain adjustments, from the retail postpaid phone new connections in the period.

Wireless Churn is the rate at which service to retail, retail postpaid, or retail postpaid phone connections is terminated on average in the period. The churn rate in each period presented is calculated by dividing retail disconnections, retail postpaid disconnections, or retail postpaid phone disconnections by the average retail connections, average retail postpaid connections, or average retail postpaid phone connections, respectively, in the period.

Wireless retail postpaid ARPA is the calculated average retail postpaid service revenue per account (ARPA) from retail postpaid accounts in the period. Wireless retail postpaid service revenue does not include recurring device payment plan billings related to the Verizon device payment program, plan billings related to Total Mobile Protection packages or regulatory fees. Wireless retail postpaid ARPA in each period presented is calculated by dividing retail postpaid service revenue by the average retail postpaid accounts in the period.

Wireless retail postpaid accounts are wireless retail customers that are directly served and managed under the Verizon brand and use its services as of the end of the period. Accounts include unlimited plans, shared data plans and corporate accounts, as well as legacy single connection plans and multi-connection family plans. A single account may include monthly wireless services for a variety of connected devices. Wireless retail postpaid accounts are calculated by adding retail postpaid new accounts to the prior period retail postpaid accounts.

Wireless retail postpaid connections per account is the calculated average number of retail postpaid connections per retail postpaid account as of the end of the period. Wireless retail postpaid connections per account is calculated by dividing the total number of retail postpaid connections by the number of retail postpaid accounts as of the end of the period.

Segment operating income margin reflects the profitability of the segment as a percentage of revenue. Segment operating income margin is calculated by dividing total segment operating income by total segment operating revenues.

Segment earnings before interest, taxes, depreciation and amortization (Segment EBITDA), which is presented below, is a non-GAAP measure and does not purport to be an alternative to operating income (loss) as a measure of operating performance. We believe this measure is useful to management, investors and other users of our financial information in evaluating operating profitability on a more variable cost basis as it excludes the depreciation and amortization expenses related primarily to capital expenditures and acquisitions that occurred in prior years, as well as in evaluating operating performance in relation to our competitors. Segment EBITDA is calculated by adding back depreciation and amortization expense to segment operating income (loss). Segment EBITDA margin is calculated by dividing Segment EBITDA by total segment operating revenues. You can find additional information about our segments in Note 11 to the condensed consolidated financial statements.

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 brand and through wholesale and other arrangements. 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.

41

Operating Revenues and Selected Operating Statistics

	Three Months Ended										Six Months Ended
	June 30,						Increase/				June 30,						Increase/
(dollars in millions, except ARPA)	2021			2020			(Decrease)				2021			2020			(Decrease)
Service	$	16,709		$	15,900		$	809	5.1	%	$	33,278		$	32,241		$	1,037	3.2	%
Wireless equipment	4,739			3,209			1,530		47.7		8,931			6,586			2,345		35.6
Other	2,029			2,004			25		1.2		4,066			4,051			15		0.4
Total Operating Revenues	$	23,477		$	21,113		$	2,364	11.2		$	46,275		$	42,878		$	3,397	7.9
Connections (‘000):(1)
Wireless retail connections											94,589			93,975			614		0.7
Wireless retail postpaid connections											90,514			89,977			537		0.6
Fios internet connections											6,392			5,971			421		7.1
Fios video connections											3,710			3,987			(277)		(6.9)
Broadband connections											6,783			6,468			315		4.9
Net Additions in Period (‘000):(2)
Wireless retail	368			84			284		nm		61			(525)			586		nm
Wireless retail postpaid	350			72			278		nm		24			(453)			477		nm
Wireless retail postpaid phones	197			97			100		nm		(28)			(210)			182		86.7
Churn Rate:
Wireless retail	0.97		%	0.86		%					1.04		%	1.03		%
Wireless retail postpaid	0.83		%	0.69		%					0.90		%	0.85		%
Wireless retail postpaid phones	0.65		%	0.51		%					0.71		%	0.64		%
Account Statistics:
Wireless retail postpaid ARPA	$	121.24		$	116.02		$	5.22	4.5		$	121.05		$	117.44		$	3.61	3.1
Wireless retail postpaid accounts (‘000) (1)											33,606			33,695			(89)		(0.3)
Wireless retail postpaid connections per account (1)											2.69			2.67			0.02		0.7

(1)As of end of period

(2)Includes certain adjustments

nm - not meaningful

Consumer’s total operating revenues increased during both the three and six months ended June 30, 2021, compared to the similar periods in 2020, as a result of increases in Service, Wireless equipment and Other revenues.

Service Revenue

Service revenue increased during both the three and six months ended June 30, 2021, compared to the similar periods in 2020. These increases were primarily driven by increases in wireless service revenues.

Wireless service revenue increased $707 million, or 5.4%, and $915 million, or 3.4%, during the three and six months ended June 30, 2021, respectively, compared to the similar periods in 2020. These increases were primarily due to growth in mobile security products included in certain protection packages, growth from reseller accounts, growth in revenues related to content offerings and growth in access revenues related to our postpaid plans. These increases were further driven by waived fees as part of customer assistance initiatives taken by Verizon in 2020 due to the COVID-19 pandemic that did not repeat.

For the three and six months ended June 30, 2021, Fios service revenue totaled $2.7 billion and $5.4 billion, respectively, and increased $124 million, or 4.8%, and $171 million, or 3.3%, respectively, compared to the similar periods in 2020. These increases were due to increases in Fios internet connections, reflecting increased demand for higher broadband speeds. The increases were partially offset by decreases in Fios video revenues, reflecting the ongoing shift from traditional linear video to over-the-top offerings, and decreases in Fios voice revenues.

Wireless Equipment Revenue

Wireless equipment revenue increased during both the three and six months ended June 30, 2021, compared to the similar periods in 2020, due to increases in the number of wireless devices sold partially as a result of increased promotions and a shift to higher priced devices in the mix of wireless devices sold.

42

Operating Expenses

	Three Months Ended								Six Months Ended
	June 30,				Increase/				June 30,				Increase/
(dollars in millions)	2021		2020		(Decrease)				2021		2020		(Decrease)
Cost of services	$	4,181	$	3,885	$	296	7.6	%	$	8,181	$	7,815	$	366	4.7	%
Cost of wireless equipment	4,854		3,299		1,555		47.1		9,246		6,750		2,496		37.0
Selling, general and administrative expense	4,045		4,016		29		0.7		8,071		8,298		(227)		(2.7)
Depreciation and amortization expense	2,900		2,849		51		1.8		5,761		5,669		92		1.6
Total Operating Expenses	$	15,980	$	14,049	$	1,931	13.7		$	31,259	$	28,532	$	2,727	9.6

Cost of Services

Cost of services increased during both the three and six months ended June 30, 2021, compared to the similar periods in 2020. These increases were primarily due to increases in costs related to the device protection offerings to our wireless retail postpaid customers, rent expense as a result of both adding capacity to the networks to support demand and lease modifications for certain existing cell towers, regulatory fees as a result of an increase in the FUSF rate and personnel costs due to increase in compensation costs.

Cost of Wireless Equipment

Cost of wireless equipment increased during both the three and six months ended June 30, 2021, compared to the similar periods in 2020, due to increases in the number of wireless devices sold as well as a shift to higher priced devices in the mix of wireless devices sold. For the six months ended June 30, 2021, a further increase was driven by a recall undertaken for certain jetpack units.

Selling, General and Administrative Expense

Selling, general and administrative expense remained relatively flat and decreased during the three and six months ended June 30, 2021, respectively, compared to the similar periods in 2020. The changes during the three and six months ended June 30, 2021 were primarily due to decreases in sales commission expense as a result of actions taken in 2020 in response to the COVID-19 pandemic, and provision for credit losses as a result of both improvement in payment trends in 2021 as well as actions taken in 2020 in response to the COVID-19 pandemic. For the three and six months ended June 30, 2021, the decreases were more than offset and partially offset, respectively, by increases in advertising expense due to brand messaging in 2021 as well as lower expenses in 2020 as a result of customer behavior during the COVID-19 pandemic.

Depreciation and Amortization Expense

Depreciation and amortization expense increased during both the three and six months ended June 30, 2021, compared to the similar periods in 2020, driven by the change in the mix of total Verizon depreciable assets and Consumer's usage of those assets.

Segment Operating Income and EBITDA 

	Three Months Ended										Six Months Ended
	June 30,						Increase/				June 30,						Increase/
(dollars in millions)	2021			2020			(Decrease)				2021			2020			(Decrease)
Segment Operating Income	$	7,497		$	7,064		$	433	6.1	%	$	15,016		$	14,346		$	670	4.7	%
Add Depreciation and amortization expense	2,900			2,849			51		1.8		5,761			5,669			92		1.6
Segment EBITDA	$	10,397		$	9,913		$	484	4.9		$	20,777		$	20,015		$	762	3.8
Segment operating income margin	31.9		%	33.5		%					32.4		%	33.5		%
Segment EBITDA margin	44.3		%	47.0		%					44.9		%	46.7		%

The changes in the table above during the three and six months ended June 30, 2021, compared to the similar periods in 2020, were primarily a result of the factors described in connection with operating revenues and operating expenses.

Verizon Business Group

Our Business segment provides wireless and wireline communications services and products, including 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 IoT services and products. We provide these products and services to businesses, government customers and wireless and wireline carriers across the U.S. and select products and services to customers around the world. The Business segment is organized in four customer groups: Small and Medium Business, Global Enterprise, Public Sector and Other, and Wholesale.

43

Operating Revenues and Selected Operating Statistics

	Three Months Ended										Six Months Ended
	June 30,						Increase/				June 30,						Increase/
(dollars in millions)	2021			2020			(Decrease)				2021			2020			(Decrease)
Small and Medium Business	$	2,895		$	2,601		$	294	11.3	%	$	5,725		$	5,405		$	320	5.9	%
Global Enterprise	2,583			2,589			(6)		(0.2)		5,142			5,220			(78)		(1.5)
Public Sector and Other	1,614			1,523			91		6.0		3,260			2,997			263		8.8
Wholesale	670			769			(99)		(12.9)		1,416			1,541			(125)		(8.1)
Total Operating Revenues(1)	$	7,762		$	7,482		$	280	3.7		$	15,543		$	15,163		$	380	2.5
Connections (‘000):(2)
Wireless retail postpaid connections											26,740			25,897			843		3.3
Fios internet connections											346			327			19		5.8
Fios video connections											72			75			(3)		(4.0)
Broadband connections											480			491			(11)		(2.2)
Net Additions in Period (‘000):(3)
Wireless retail postpaid	178			280			(102)		(36.4)		334			755			(421)		(55.8)
Wireless retail postpaid phones	78			76			2		2.6		125			315			(190)		(60.3)
Churn Rate:
Wireless retail postpaid	1.30		%	1.12		%					1.27		%	1.21		%
Wireless retail postpaid phones	1.07		%	0.90		%					1.04		%	0.96		%

(1)Service and other revenues included in our Business segment amounted to approximately $7.0 billion for both the three months ended June 30, 2021 and 2020. Service and other revenues included in our Business segment amounted to approximately $14.0 billion and $13.9 billion for the six months ended June 30, 2021 and 2020, respectively. Wireless equipment revenues included in our Business segment amounted to $804 million and $1.6 billion for the three and six months ended June 30, 2021, respectively, and $546 million and $1.3 billion for the three and six months ended June 30, 2020, respectively.

(2)As of end of period

(3)Includes certain adjustments

Business’s total operating revenues increased during both the three and six months ended June 30, 2021, compared to the similar periods in 2020, primarily as a result of increases in Public Sector and Other and Small and Medium Business revenues, partially offset by decreases in Global Enterprise and Wholesale revenues.

Small and Medium Business

Small and Medium Business offers wireless services and equipment, conferencing services, tailored voice and networking products, Fios services, Internet Protocol networking, advanced voice solutions and security and managed information technology services to our U.S.-based small and medium businesses that do not meet the requirements to be categorized as Global Enterprise, as described below.

Small and Medium Business revenues increased during both the three and six months ended June 30, 2021, compared to the similar periods in 2020. The increases are due to higher wireless retail postpaid service revenue as a result of increases in the amount of wireless retail postpaid connections, as well as increases in usage and non-recurring fees due to the impacts of the COVID-19 pandemic in the prior year. This was further driven by increases in wireless equipment revenue primarily due to an increase in the number of wireless devices sold and a shift to higher priced devices in the mix of wireless devices sold. The increases were partially offset by declines related to the loss of voice and DSL service connections.

For the three and six months ended June 30, 2021, Fios revenues totaled $244 million and $483 million, respectively, which represents an increase of 7.5% and 4.6%, respectively, compared to the similar periods in 2020. This change reflects the increase in total connections, as well as increased demand for higher broadband speeds.

Global Enterprise

Global Enterprise offers services to large businesses, which are identified based on their size and volume of business with Verizon, as well as non-U.S. public sector customers.

Global Enterprise revenues decreased during both the three and six months ended June 30, 2021, compared to the similar periods in 2020, primarily due to declines in both traditional data and voice communication services as a result of competitive price pressures. The decreases were further driven by decreases in advanced communication services due to a decline in usage, as a result of the COVID-19 pandemic, partially offset by increases due to the BlueJeans Network, Inc. (BlueJeans) acquisition. The decreases in revenue were partially offset by increases in wireless equipment revenue due to an increase in the number of wireless devices sold and a shift to higher priced devices in the

44

mix of wireless devices, customer premise equipment due to volumes, and FUSF surcharges due to a rate increase. See Note 3 to the condensed consolidated financial statements for additional information on the BlueJeans acquisition.

Public Sector and Other

Public Sector and Other offers wireless products and services as well as wireline connectivity and managed solutions to U.S. federal, state and local governments and educational institutions. These services include business services and connectivity similar to the products and services offered by Global Enterprise, in each case, with features and pricing designed to address the needs of governments and educational institutions.

Public Sector and Other revenues increased during both the three and six months ended June 30, 2021, compared to the similar periods in 2020, primarily driven by increases in wireless service revenue as a result of an increase in wireless connections. These increases were driven by shifting technology needs in remote business environments, particularly in education.

Wholesale

Wholesale offers wireline communications services including data, voice, local dial tone and broadband services primarily to local, long distance, and wireless carriers that use our facilities to provide services to their customers.

Wholesale revenues decreased during both the three and six months ended June 30, 2021, compared to the similar periods in 2020, primarily due to decreases in traditional voice communication and network connectivity due to technology substitution. For the six months ended June 30, 2021, the decrease was partially offset by increases in core data due to minimum commitment payments.

Operating Expenses

	Three Months Ended								Six Months Ended
	June 30,				Increase/				June 30,				Increase/
(dollars in millions)	2021		2020		(Decrease)				2021		2020		(Decrease)
Cost of services	$	2,729	$	2,641	$	88	3.3	%	$	5,419	$	5,230	$	189	3.6	%
Cost of wireless equipment	1,076		812		264		32.5		2,187		1,902		285		15.0
Selling, general and administrative expense	2,086		2,069		17		0.8		4,154		4,103		51		1.2
Depreciation and amortization expense	1,015		1,014		1		0.1		2,028		2,028		—		—
Total Operating Expenses	$	6,906	$	6,536	$	370	5.7		$	13,788	$	13,263	$	525	4.0

Cost of Services

Cost of services increased during both the three and six months ended June 30, 2021, compared to the similar periods in 2020, primarily driven by increases in direct costs related to increases in professional services, building and facilities costs due to increased utility rates, and increased regulatory fees as a result of an increase in the FUSF rate. These increases were partially offset by decreases in access costs resulting from a decline in voice services.

Cost of Wireless Equipment

Cost of wireless equipment increased during both the three and six months ended June 30, 2021, compared to the similar periods in 2020. For the three months ended June 30, 2021, the increase was primarily due to increases in the number of wireless devices sold and a shift to higher priced devices in the mix of wireless devices sold. For the six months ended June 30, 2021, the increase was primarily due to a shift to higher priced devices in the mix of wireless devices sold and an increase in expenses as a result of a recall undertaken for certain jetpack units partially offset by a decline in the volume of wireless equipment sold.

Selling, General and Administrative Expense

Selling, general and administrative expense remained relatively flat and increased during the three and six months ended June 30, 2021, respectively, compared to the similar periods in 2020. For the six months ended June 30, 2021 the increases were primarily driven by an increase in costs related to data and network systems.

Segment Operating Income and EBITDA 

	Three Months Ended										Six Months Ended
	June 30,						Increase/				June 30,						Increase/
(dollars in millions)	2021			2020			(Decrease)				2021			2020			(Decrease)
Segment Operating Income	$	856		$	946		$	(90)	(9.5)	%	$	1,755		$	1,900		$	(145)	(7.6)	%
Add Depreciation and amortization expense	1,015			1,014			1		0.1		2,028			2,028			—		—
Segment EBITDA	$	1,871		$	1,960		$	(89)	(4.5)		$	3,783		$	3,928		$	(145)	(3.7)
Segment operating income margin	11.0		%	12.6		%					11.3		%	12.5		%
Segment EBITDA margin	24.1		%	26.2		%					24.3		%	25.9		%

45

The changes in the table above during the three and six months ended June 30, 2021, compared to the similar periods in 2020, were primarily a result of the factors described in connection with operating revenues and operating expenses.

Special Items

Special items included in Income Before Provision For Income Taxes were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(dollars in millions)	2021		2020		2021		2020
Pension and benefits charges (credits)
Other income (expense), net	$	(1,314)	$	153	$	(1,314)	$	335
Early debt redemption costs
Other income (expense), net	1,132		129		1,132		129
Interest expense	—		(27)		—		(27)
Loss on spectrum licenses
Selling, general and administrative expense	—		—		223		1,195
Total	$	(182)	$	255	$	41	$	1,632

The Consolidated Adjusted EBITDA non-GAAP measure presented in the Consolidated Net Income, Consolidated EBITDA and Consolidated Adjusted EBITDA discussion (see "Consolidated Results of Operations") excludes all of the amounts included above, as described below.

The income and expenses related to special items included in our condensed consolidated results of operations were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(dollars in millions)	2021		2020		2021		2020
Within Total Operating Expenses	$	—	$	—	$	223	$	1,195
Within Other income (expense), net	(182)		282		(182)		464
Within Interest expense	—		(27)		—		(27)
Total	$	(182)	$	255	$	41	$	1,632

Pension and Benefits Charges (Credits)

During both the three and six months ended June 30, 2021, we recorded a pre-tax remeasurement gain of $1.3 billion in our pension plans triggered by settlements, primarily driven by a $1.2 billion credit mainly due to changes in our discount rate and changes in our lump sum interest rate assumptions used to determine the current year liabilities of our pension plans and a $122 million credit resulting from the difference between our estimated and our actual return on assets. Pension and benefit activity is recognized in the income statement during the fourth quarter or upon a remeasurement event pursuant to our accounting policy for the recognition of actuarial gains and losses

During the three and six months ended June 30, 2020, we recorded net pre-tax remeasurement losses of $153 million and $335 million, respectively, in our pension plans triggered by settlements.

During the three months ended June 30, 2020, we recorded a net pre-tax remeasurement loss of $153 million primarily driven by a $163 million charge mainly resulting from the difference between our estimated and our actual return on assets and changes in our lump sum interest rate assumptions used to determine the current year liabilities of our pension plans, offset by a credit due to changes in our discount rate.

During the three months ended March 31, 2020, we recorded a net pre-tax remeasurement loss of $182 million, primarily driven by a $196 million charge mainly due to changes in our discount rate and lump sum interest rate assumptions used to determine the current year liabilities of our pension plans, offset by a credit resulting from the difference between our estimated and our actual return on assets.

See Note 9 to the condensed consolidated financial statements for additional information related to our pension and benefits charges and credits.

Early Debt Redemption Costs

During both the three and six months ended June 30, 2021, we recorded pre-tax early debt redemption costs of $1.1 billion in connection with the redemptions of securities issued by Verizon and open market repurchases of various Verizon and subsidiary notes.

During both the three and six months ended June 30, 2020, we recorded net pre-tax early debt redemption costs of $102 million in connection with the redemptions of securities issued by Verizon and open market repurchases.

See Note 6 to the condensed consolidated financial statements for additional information on these redemptions.

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Loss on Spectrum Licenses

During the six months ended June 30, 2021, we recognized a pre-tax loss of $223 million as a result of signing two agreements to sell certain wireless licenses.

During the six months ended June 30, 2020, we recorded a pre-tax net loss of $1.2 billion as a result of the conclusion of the FCC incentive auction, Auction 103, for spectrum licenses in the upper 37 Gigahertz (GHz), 39 GHz and 47 GHz bands.

See Note 3 to the condensed consolidated financial statements for additional information.

Consolidated Financial Condition

	Six Months Ended
	June 30,
(dollars in millions)	2021		2020		Change
Cash Flows Provided By (Used In)
Operating activities	$	20,438	$	23,552	$	(3,114)
Investing activities	(54,401)		(12,124)		(42,277)
Financing activities	16,550		(6,232)		22,782
Increase (decrease) in cash, cash equivalents and restricted cash	$	(17,413)	$	5,196	$	(22,609)

We use the net cash generated from our operations to fund expansion and modernization of our networks, service and repay external financing, pay dividends, invest in new businesses and spectrum and, when appropriate, buy back shares of our outstanding common stock. Our sources of funds, primarily from operations and, to the extent necessary, from external financing arrangements, are sufficient to meet ongoing operating and investing requirements. We expect that our capital spending requirements will continue to be financed primarily through internally generated funds. 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. Our cash and cash equivalents are held both domestically and internationally, and are invested to maintain principal and provide liquidity. See "Market Risk" for additional information regarding our foreign currency risk management strategies.

Our available external financing arrangements include an active commercial paper program, credit available under credit facilities and other bank lines of credit, vendor financing arrangements, issuances of registered debt or equity securities, U.S. retail medium-term notes and other capital market securities that are privately-placed or offered overseas. In addition, we monetize our device payment plan agreement receivables through asset-backed debt transactions.

We made the decision at the beginning of the COVID-19 pandemic to maintain a higher cash balance than our historical norm to further protect the Company against the economic uncertainties associated with the pandemic. Based on the state of the economic recovery, in the second quarter of 2021 we significantly reduced our cash balance. We expect to continue to evaluate our cash balance throughout 2021 and may determine to adjust it further depending on economic conditions.

Cash Flows Provided By Operating Activities

Our primary source of funds continues to be cash generated from operations. Net cash provided by operating activities decreased $3.1 billion during the six months ended June 30, 2021, compared to the similar period in 2020, primarily due to changes in working capital, which includes higher volumes in 2021, as well as activity during 2020 including tax benefits of approximately $2.0 billion from the postponement of second quarter 2020 tax payments and the receipt of a $2.2 billion cash tax benefit related to the sale of preferred shares in a foreign affiliate, both of which did not repeat in 2021. In addition, we made a payment of $237 million for the settlement of forward starting interest rate swaps in 2021. These decreases were partially offset by an increase in earnings of $2.2 billion and the receipt of $251 million from the settlement of treasury rate locks. As a result of prior years' discretionary contributions and the fact that actual asset returns have been higher than expected, we expect that there will be no required pension funding through 2030, subject to changes in market conditions.

Cash Flows Used In Investing Activities

Capital Expenditures

Capital expenditures continue to relate primarily to the use of capital resources to increase the operating efficiency and productivity of our networks, maintain our existing infrastructure, facilitate the introduction of new products and services and enhance responsiveness to competitive challenges.

Capital expenditures, including capitalized software, for the six months ended June 30, 2021 and 2020 were $8.7 billion and $9.9 billion, respectively. Capital expenditures decreased approximately $1.1 billion, or 11.5%, during the six months ended June 30, 2021, compared to the similar period in 2020, primarily due to the timing of investments, as well as capital efficiencies from our business excellence initiatives. Our investments primarily relate to our network assets which support the business.

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Acquisitions of Wireless Licenses

In February 2021, the FCC completed an auction, Auction 107, for mid-band spectrum known as C-Band. During the six months ended June 30, 2021, we paid approximately $44.6 billion for spectrum licenses in connection with this auction.

During the six months ended June 30, 2021, we entered into and completed various other wireless license acquisitions for cash consideration of $90 million.

During the six months ended June 30, 2021, we recorded capitalized interest related to wireless licenses and deposits for wireless licenses of $154 million and $455 million, respectively.

Acquisitions of Businesses, Net of Cash Acquired

In October 2020, we entered into a definitive agreement to acquire certain assets of Bluegrass Cellular, a rural wireless operator serving central Kentucky. The transaction closed in March 2021. The aggregate cash consideration paid by Verizon at the closing of the transaction was approximately $410 million, net of cash acquired, which is subject to customary closing adjustments.

Cash Flows Provided By (Used In) Financing Activities

We seek to maintain a mix of fixed and variable rate debt to lower borrowing costs within reasonable risk parameters and to protect against earnings and cash flow volatility resulting from changes in market conditions. During the six months ended June 30, 2021, net cash provided by financing activities was $16.6 billion. During the six months ended June 30, 2020, net cash used in financing activities was $6.2 billion.

During the six months ended June 30, 2021, our net cash provided by financing activities was primarily driven by proceeds from long-term borrowings of $31.4 billion and proceeds from asset-backed long-term borrowings of $2.7 billion. These proceeds were partially offset by repayments, redemptions and repurchases of long-term borrowings and finance lease obligations of $7.6 billion, cash dividends of $5.2 billion, and repayments of asset-backed long-term borrowings of $3.0 billion.

At June 30, 2021, our total debt of $151.9 billion included unsecured debt of $141.6 billion and secured debt of $10.3 billion. At December 31, 2020, our total debt of $129.1 billion included unsecured debt of $118.5 billion and secured debt of $10.6 billion. During the six months ended June 30, 2021 and 2020, our effective interest rate was 3.7% and 4.2%, respectively. See Note 6 to the condensed consolidated financial statements for additional information regarding our debt activity.

Verizon may acquire debt securities issued by Verizon and its affiliates through open market purchases, redemptions, privately negotiated transactions, tender offers, exchange offers, or otherwise, upon such terms and at such prices as Verizon may from time to time determine, for cash or other consideration.

Asset-Backed Debt

Cash collections on the device payment plan agreement receivables 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 and the assets securing this debt are included in our condensed consolidated balance sheets.

See Note 6 to the condensed consolidated financial statements for additional information.

Long-Term Credit Facilities

				At June 30, 2021
(dollars in millions)	Maturities	Facility Capacity		Unused Capacity		Principal Amount Outstanding
Verizon revolving credit facility (1)	2024	$	9,500	$	9,392	N/A
Various export credit facilities (2)	2022 - 2029	7,500		530		$	5,029
Total		$	17,000	$	9,922	$	5,029

N/A - not applicable

(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.

(2) During the six months ended June 30, 2021, we drew down $470 million from these facilities. These credit facilities are used to finance equipment-related purchases. Borrowings under certain of these facilities amortize 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.

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Other, Net

Other, net financing activities during the six months ended June 30, 2021 includes $295 million in payments related to vendor financing arrangements, $150 million in postings of derivative collateral and early debt redemption costs. See "Special Items" for additional information on the early debt redemption costs.

Dividends

As in prior periods, dividend payments were a significant use of capital resources. We paid $5.2 billion and $5.1 billion in cash dividends during the six months ended June 30, 2021 and 2020, respectively.

Covenants

Our credit agreements contain covenants that are typical for large, investment grade companies. These covenants include requirements to pay interest and principal in a timely fashion, pay taxes, maintain insurance with responsible and reputable insurance companies, preserve our corporate existence, keep appropriate books and records of financial transactions, maintain our properties, provide financial and other reports to our lenders, limit pledging and disposition of assets and mergers and consolidations, and other similar covenants.

We and our consolidated subsidiaries are in compliance with all of our restrictive covenants in our debt agreements.

Change In Cash, Cash Equivalents and Restricted Cash

Our Cash and cash equivalents at June 30, 2021 totaled $4.7 billion, a $17.5 billion decrease compared to December 31, 2020, primarily as a result of the factors discussed above.

Restricted cash totaled $1.3 billion as of both June 30, 2021 and December 31, 2020, primarily related to cash collections on the device payment plan agreement receivables that are required at certain specified times to be placed into segregated accounts.

Assets held for sale includes cash, cash equivalents and restricted cash in our media business, Verizon Media, and totaled $145 million as of June 30, 2021. See Note 3 to the condensed consolidated financial statements for additional information.

Free Cash Flow

Free cash flow is a non-GAAP financial measure that reflects an additional way of viewing our liquidity that, we believe, when viewed with our GAAP results, provides management, investors and other users of our financial information with a more complete understanding of factors and trends affecting our cash flows. Free cash flow is calculated by subtracting capital expenditures (including capitalized software) from net cash provided by operating activities. We believe it is a more conservative measure of cash flow since purchases of fixed assets are necessary for ongoing operations. Free cash flow has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures. For example, free cash flow does not incorporate payments made on finance lease obligations or cash payments for business acquisitions or wireless licenses. Therefore, we believe it is important to view free cash flow as a complement to our entire condensed consolidated statements of cash flows.

The following table reconciles net cash provided by operating activities to free cash flow:

	Six Months Ended
	June 30,
(dollars in millions)	2021		2020		Change
Net cash provided by operating activities	$	20,438	$	23,552	$	(3,114)
Less Capital expenditures (including capitalized software)	8,716		9,850		(1,134)
Free cash flow	$	11,722	$	13,702	$	(1,980)

The decrease in free cash flow during the six months ended June 30, 2021, compared to the similar period in 2020, is a reflection of the decrease in operating cash flows, as well as the decrease in capital expenditures discussed above.

Market Risk

We are exposed to various types of market risk in the normal course of business, including the impact of interest rate changes, foreign currency exchange rate fluctuations, changes in investment, equity and commodity prices and changes in corporate tax rates. We employ risk management strategies, which may include the use of a variety of derivatives including cross currency swaps, forward starting interest rate swaps, interest rate swaps, interest rate caps, treasury rate locks and foreign exchange forwards. We do not hold derivatives for trading purposes.

It is our general policy to enter into interest rate, foreign currency and other derivative transactions only to the extent necessary to achieve our desired objectives in optimizing exposure to various market risks. Our objectives include maintaining a mix of fixed and variable rate debt to lower borrowing costs within reasonable risk parameters and to protect against earnings and cash flow volatility resulting from changes in market conditions. We do not hedge our market risk exposure in a manner that would completely eliminate the effect of changes in interest rates and foreign exchange rates on our earnings.

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Counterparties to our derivative contracts are major financial institutions with whom we have negotiated derivatives agreements (ISDA master agreements) and credit support annex (CSA) agreements which provide rules for collateral exchange. The CSA agreements contain rating based thresholds such that we or our counterparties may be required to hold or post collateral based upon changes in outstanding positions as compared to established thresholds and changes in credit ratings. We do not offset fair value amounts recognized for derivative instruments and fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments recognized at fair value. At June 30, 2021, we held $0.1 billion and posted an insignificant amount of collateral related to derivative contracts under collateral exchange agreements, which were recorded as Other current liabilities and Prepaid expenses and other, respectively, in our condensed consolidated balance sheet. At December 31, 2020, we held $0.2 billion of collateral related to derivative contracts under collateral exchange arrangements, which were recorded as Other current liabilities in our condensed consolidated balance sheet. While we may be exposed to credit losses due to the nonperformance of our counterparties, we consider the risk remote and do not expect that any such nonperformance would result in a significant effect on our results of operations or financial condition due to our diversified pool of counterparties. See Note 8 to the condensed consolidated financial statements for additional information regarding the derivative portfolio.

Interest Rate Risk

We are exposed to changes in interest rates, primarily on our short-term debt and the portion of long-term debt that carries floating interest rates. As of June 30, 2021, approximately 85% of the aggregate principal amount of our total debt portfolio consisted of fixed-rate indebtedness, including the effect of interest rate swap agreements designated as hedges. The impact of a 100-basis-point change in interest rates affecting our floating rate debt would result in a change in annual interest expense, including our interest rate swap agreements that are designated as hedges, of approximately $229 million. The interest rates on our existing long-term debt obligations are unaffected by changes to our credit ratings.

Certain of our floating rate debt and certain of our interest rate derivative transactions utilize interest rates that are linked to the London Inter-Bank Offered Rate (LIBOR) as the benchmark rate. LIBOR is the subject of recent U.S. and international regulatory guidance for reform. Regulators have announced that one-week and two-month U.S. dollar LIBOR rates will cease publication after December 31, 2021, and other U.S. dollar LIBOR rates will cease publication after June 30, 2023. The consequences of these developments cannot be entirely predicted but could include an increase in the cost of our floating rate debt or exposure under our interest rate derivative transactions. We do not anticipate a significant impact to our financial position given our current mix of variable and fixed-rate debt, taking into account the impact of our interest rate hedging. The floating rate senior unsecured notes issued in March 2021 and certain of our interest rate derivative transactions utilize interest rates that are linked to the Secured Overnight Financing Rate as the benchmark rate.

Interest Rate Swaps

We enter into interest rate swaps to achieve a targeted mix of fixed and variable rate debt. We principally receive fixed rates and pay variable rates, resulting in a net increase or decrease to Interest expense. These swaps are designated as fair value hedges and hedge against interest rate risk exposure of designated debt issuances. At June 30, 2021, the fair value of the asset and liability of these contracts were $514 million and $572 million, respectively. At December 31, 2020, the fair value of the asset and liability of these contracts were $787 million and $303 million, respectively. At June 30, 2021 and December 31, 2020, the total notional amount of the interest rate swaps was $17.6 billion and $17.8 billion, respectively.

Forward Starting Interest Rate Swaps

We have entered into forward starting interest rate swaps designated as cash flow hedges in order to manage our exposure to interest rate changes on future forecasted transactions. At June 30, 2021, the fair value of the liability of these contracts was $281 million. At December 31, 2020, the fair value of the liability of these contracts was $797 million. At June 30, 2021 and December 31, 2020, the total notional amount of the forward starting interest rate swaps was $1.0 billion and $2.0 billion, respectively.

Treasury Rate Locks

We enter into treasury rate locks to mitigate our future interest rate risk. There was no outstanding notional amount for treasury rate locks at June 30, 2021 or December 31, 2020.

Foreign Currency Risk

The functional currency for our foreign operations is primarily the local currency. The translation of income statement and balance sheet amounts of our foreign operations into U.S. dollars is recorded as cumulative translation adjustments, which are included in Accumulated other comprehensive loss in our condensed consolidated balance sheets. Gains and losses on foreign currency transactions are recorded in the condensed consolidated statements of income in Other income (expense), net. At June 30, 2021, our primary translation exposure was to the British Pound Sterling, Euro, Australian Dollar, Canadian Dollar and Japanese Yen.

Cross Currency Swaps

We have entered into cross currency swaps designated as cash flow hedges to exchange our British Pound Sterling, Euro, Swiss Franc, Canadian Dollar and Australian Dollar-denominated cash flows into U.S. dollars and to fix our cash payments in U.S. dollars, as well as to mitigate the impact of foreign currency transaction gains or losses. At June 30, 2021, the fair value of the asset and liability of these contracts was $1.1 billion and $757 million, respectively. At December 31, 2020, the fair value of the asset and liability of these contracts was

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$1.4 billion and $196 million, respectively. At June 30, 2021 and December 31, 2020, the total notional amount of the cross currency swaps was $32.5 billion and $26.3 billion, respectively.

Foreign Exchange Forwards

We also have foreign exchange forwards which we use as an economic hedge but for which we have elected not to apply hedge accounting. We enter into British Pound Sterling and Euro foreign exchange forwards to mitigate our foreign exchange rate risk related to non-functional currency denominated monetary assets and liabilities of international subsidiaries, as well as foreign exchange risk related to debt settlements. At June 30, 2021, the fair value of the asset and liability of these contracts was zero and insignificant, respectively. At December 31, 2020, the fair value of the asset and liability of these contracts was insignificant. At June 30, 2021 and December 31, 2020, the total notional amount of the foreign exchange forwards was $1.5 billion and $1.4 billion, respectively.

Acquisitions and Divestitures

Spectrum License Transactions

From time to time, we enter into agreements to buy, sell or exchange spectrum licenses. We believe these spectrum license transactions have allowed us to continue to enhance the reliability of our wireless network, while also resulting in a more efficient use of spectrum.

In March 2020, the FCC's incentive auction, Auction 103, for spectrum licenses in the upper 37 GHz, 39 GHz, and 47 GHz bands concluded. Verizon participated in this incentive auction and was the high bidder on 4,940 licenses, which primarily consisted of 37 GHz and, to a lesser extent, 39 GHz spectrum. As an incumbent licensee, our 39 GHz licenses provided us with incentive payments that were applied towards the purchase price of spectrum in the auction. The value of the licenses won by Verizon amounted to $3.4 billion, of which $1.8 billion was settled with the relinquished 39 GHz licenses. The new reconfigured licenses were received in the second quarter 2020 and are included in Wireless licenses in our condensed consolidated balance sheet.

In September 2020, the FCC completed Auction 105 for Priority Access Licenses. Verizon participated in the auction and was the high bidder on 557 licenses in the 3.5 GHz band valued at approximately $1.9 billion. Verizon made payments for these licenses in 2020 and received them from the FCC in March 2021. The purchase cost for these licenses and related capitalized interest, to the extent qualifying activities have occurred, are included in Wireless licenses in our condensed consolidated balance sheet.

In February 2021, the FCC concluded Auction 107 for C-Band wireless spectrum. Verizon was the winning bidder on 3,511 licenses, consisting of contiguous C-Band spectrum bands ranging between 140 and 200 megahertz of C-Band spectrum in all 406 markets available in the auction. Verizon paid $45.5 billion for the licenses it won, of which $44.6 billion was paid in the first quarter of 2021. The carrying value of the wireless spectrum won in Auction 107 will consist of all payments required to participate and purchase licenses in the auction, including Verizon’s allocable share of clearing costs incurred by, and incentive payments due to, the incumbent license holders associated with the auction that we are obligated to pay in order to acquire the licenses. Carrying value will also include capitalized interest to the extent qualifying activities have occurred. On July 23, 2021 Verizon received the wireless licenses from the FCC. The carrying value is recorded within Deposits for wireless licenses in our condensed consolidated balance sheet as of June 30, 2021, and has been subsequently reclassified to Wireless licenses upon receipt of the corresponding licenses in July 2021.

See Note 3 to the condensed consolidated financial statements for additional information regarding our spectrum license transactions.

Blue Jeans Network, Inc.

In April 2020, we entered into a definitive purchase agreement to acquire Blue Jeans Network, Inc. (BlueJeans), an enterprise-grade video conferencing and event platform, whose services are sold to Business customers globally. The transaction closed in May 2020. The aggregate cash consideration paid by Verizon at the closing of the transaction was approximately $397 million, net of cash acquired.

TracFone Wireless, Inc.

In September 2020, we entered into a purchase agreement (Tracfone Purchase Agreement) with América Móvil to acquire Tracfone, a provider of prepaid and value mobile services in the U.S. Under the terms of the Tracfone Purchase Agreement, we will acquire all of the stock of Tracfone for approximately $3.1 billion in cash and $3.1 billion in Verizon common stock, subject to customary adjustments, at closing. The number of shares issued will be based on an average trading price determined as of the closing date and is subject to a minimum number of shares issuable of 47,124,445 and a maximum number of shares issuable of 57,596,544. The Tracfone Purchase Agreement also includes up to an additional $650 million in future cash consideration related to the achievement of certain performance measures and other commercial arrangements. The transaction is subject to regulatory approvals and closing conditions and is expected to close in the second half of 2021.

Bluegrass Cellular

In October 2020, we entered into a definitive agreement to acquire certain assets of Bluegrass Cellular (Bluegrass), a rural wireless operator serving central Kentucky. Bluegrass provides wireless service to 210,000 customers in 34 counties in rural service areas 3, 4, and 5 in Central Kentucky. The transaction closed in March 2021. The aggregate cash consideration paid by Verizon at the closing of the transaction was approximately $410 million, net of cash acquired, which is subject to customary closing adjustments. See Note 3 to the condensed consolidated financial statements for additional information.

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Verizon Media

On May 2, 2021, Verizon entered into a definitive agreement with an affiliate of Apollo Global Management Inc. pursuant to which we agreed to sell Verizon Media in return for consideration of $4.3 billion in cash, subject to customary adjustments, $750 million in non-convertible preferred limited partnership units of the affiliate, and 10% of the fully-diluted common limited partnership units of the affiliate. The sale is subject to customary regulatory approvals and closing conditions and is expected to close in the second half of 2021. See Note 3 to the condensed consolidated financial statements for additional information.

Other

From time to time, we enter into strategic agreements to acquire various other businesses and investments. See Note 3 to the condensed consolidated financial statements for additional information.

Other Factors That May Affect Future Results

Regulatory and Competitive Trends

There have been no material changes to Regulatory and Competitive Trends as previously disclosed in Part I, Item I. "Business" in our Annual Report on Form 10-K for the year ended December 31, 2020.

 Cautionary Statement Concerning Forward-Looking Statements

In this report 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," "believes," "estimates," "expects," "hopes," "forecasts," "plans" 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 elsewhere in this report and in other filings with the Securities and Exchange Commission (SEC), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements:

•cyber attacks impacting our networks or systems and any resulting financial or reputational impact;

•natural disasters, terrorist attacks or acts of war or significant litigation and any resulting financial or reputational impact;

•the impact of the COVID-19 pandemic on our operations, our employees and the ways in which our customers use our networks and other products and services;

•disruption of our key suppliers’ or vendors' provisioning of products or services, including as a result of the COVID-19 pandemic;

•material adverse changes in labor matters and any resulting financial or operational impact;

•the effects of competition in the markets in which we operate;

•failure to take advantage 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;

•changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses;

•our high level of indebtedness;

•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 treaties, or in their interpretation; and

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•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.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Information relating to market risk is included in Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations under the caption "Market Risk."

Item 4. Controls and Procedures

Our Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934), as of the end of the period covered by this quarterly report, that ensure that information relating to the registrant which is required to be disclosed in this report is recorded, processed, summarized and reported within required time periods using the criteria for effective internal control established in Internal Control–Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that the registrant’s disclosure controls and procedures were effective as of June 30, 2021.

In the ordinary course of business, we routinely review our system of internal control over financial reporting and make changes to our systems and processes that are intended to ensure an effective internal control environment. In the third quarter of 2020, we began a multi-year implementation of a new global enterprise resource planning (ERP) system, which will replace many of our existing core financial systems. The ERP system is designed to enhance the flow of financial information, facilitate data analysis and accelerate information reporting. The implementation is expected to occur in phases over the next several years. During the second quarter of 2021, we have made changes to our internal controls to address processes impacted by the ERP system implementation.

As the phased implementation of the new ERP system continues, we could have changes to our processes and procedures which, in turn, could result in changes to our internal controls over financial reporting. As such changes occur, we will evaluate quarterly whether such changes materially affect our internal control over financial reporting.

Other than the above-noted changes, there were no changes in the Company’s internal control over financial reporting during the second quarter 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.    

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Part II – Other Information

Item 1. Legal Proceedings

Verizon is not subject to any administrative or judicial proceeding arising under any Federal, State or local provisions that have been enacted or adopted regulating the discharge of materials into the environment or primarily for the purpose of protecting the environment that is likely to result in monetary sanctions of $1 million or more.

See Note 12 to the condensed consolidated financial statements for additional information regarding legal proceedings.

Item 1A. Risk Factors

There have been no material changes to our risk factors as previously disclosed in Part I, Item 1A. included in our Annual Report on Form 10-K for the year ended December 31, 2020.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

In February 2020, the Verizon Board of Directors authorized a share buyback program to repurchase up to 100 million shares of the Company's common stock. The program will terminate when the aggregate number of shares purchased reaches 100 million or a new share repurchase plan superseding the current plan is authorized, whichever is sooner. Under the program, shares may be repurchased in privately negotiated transactions, on the open market, or otherwise, including through plans complying with Rule 10b5-1 under the Exchange Act. The timing and number of shares purchased under the program, if any, will depend on market conditions and the Company's capital allocation priorities.

Verizon did not repurchase any shares of Verizon common stock during the three months ended June 30, 2021. At June 30, 2021, the maximum number of shares that could be purchased by or on behalf of Verizon under our share buyback program was 100 million.

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Item 6. Exhibits

Exhibit Number	Description
10	Description of Special Cash Retention Award for G. Gowrappan.
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.PRE	XBRL Taxonomy Presentation Linkbase Document.
101.CAL	XBRL Taxonomy Calculation Linkbase Document.
101.LAB	XBRL Taxonomy Label Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
104	Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101).

55

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	VERIZON COMMUNICATIONS INC.
Date: July 28, 2021	By	/s/	Anthony T. Skiadas
			Anthony T. Skiadas
			Senior Vice President and Controller
			(Principal Accounting Officer)

56

Exhibit Number	Description
10	Description of Special Cash Retention Award for G. Gowrappan.
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.PRE	XBRL Taxonomy Presentation Linkbase Document.
101.CAL	XBRL Taxonomy Calculation Linkbase Document.
101.LAB	XBRL Taxonomy Label Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
104	Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101).

57

EX-10

EXHIBIT 10

DESCRIPTION OF SPECIAL CASH RETENTION AWARD FOR G. GOWRAPPAN

On May 2, 2021, Verizon Communications Inc. (“Verizon”) entered into a purchase agreement (“Purchase Agreement”) with College Parent, L.P., (“Purchaser”), pursuant to which Verizon agreed to sell to Purchaser all of the outstanding equity interests of Verizon’s Verizon Media Group business (“Verizon Media”). In connection with entering into the Purchase Agreement, on May 2, 2021, the Human Resources Committee of the Board of Directors of Verizon approved a special cash retention award for Mr. Guru Gowrappan, Executive Vice President and Group CEO - Verizon Media, in the amount of $3,000,000, which will vest and be payable by Verizon to Mr. Gowrappan if he remains continuously employed with Verizon Media on the six-month anniversary of the date the transactions contemplated by the Purchase Agreement are consummated (the “Closing Date”), or if his employment is involuntarily terminated by Verizon Media without cause after the Closing Date, but prior to the six-month anniversary of the Closing Date.

EX-31.1

EXHIBIT 31.1

I, Hans E. Vestberg, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Verizon Communications Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 28, 2021	/s/ Hans E. Vestberg
	Hans E. Vestberg
	Chairman and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

I, Matthew D. Ellis, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Verizon Communications Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 28, 2021	/s/ Matthew D. Ellis
	Matthew D. Ellis
	Executive Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002, PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE

I, Hans E. Vestberg, Chairman and Chief Executive Officer of Verizon Communications Inc. (the Company), certify that:

(1)the report of the Company on Form 10-Q for the quarterly period ending June 30, 2021 (the Report) fully complies with the requirements of section 13(a) of the Securities Exchange Act of 1934 (the Exchange Act); and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods referred to in the Report.

Date: July 28, 2021	/s/ Hans E. Vestberg
	Hans E. Vestberg
	Chairman and Chief Executive Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Verizon Communications Inc. and will be retained by Verizon Communications Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002, PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE

I, Matthew D. Ellis, Executive Vice President and Chief Financial Officer of Verizon Communications Inc. (the Company), certify that:

(1)the report of the Company on Form 10-Q for the quarterly period ending June 30, 2021 (the Report) fully complies with the requirements of section 13(a) of the Securities Exchange Act of 1934 (the Exchange Act); and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods referred to in the Report.

Date: July 28, 2021	/s/ Matthew D. Ellis
	Matthew D. Ellis
	Executive Vice President and Chief Financial Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Verizon Communications Inc. and will be retained by Verizon Communications Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover	6 Months Ended
	Jun. 30, 2021 shares
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	1-8606
Entity Registrant Name	Verizon Communications Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	23-2259884
Entity Address, Address Line One	1095 Avenue of the Americas
Entity Address, City or Town	New York,
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10036
City Area Code	212
Local Phone Number	395-1000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	4,140,116,007
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000732712
Current Fiscal Year End Date	--12-31
Common Stock | New York Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.10
Trading Symbol	VZ
Security Exchange Name	NYSE
Common Stock | The NASDAQ Global Select Market
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.10
Trading Symbol	VZ
Security Exchange Name	NASDAQ
1.625% Notes due 2024
Entity Information [Line Items]
Title of 12(b) Security	1.625% Notes due 2024
Trading Symbol	VZ24B
Security Exchange Name	NYSE
4.073% Notes due 2024
Entity Information [Line Items]
Title of 12(b) Security	4.073% Notes due 2024
Trading Symbol	VZ24C
Security Exchange Name	NYSE
0.875% Notes due 2025
Entity Information [Line Items]
Title of 12(b) Security	0.875% Notes due 2025
Trading Symbol	VZ25
Security Exchange Name	NYSE
3.250% Notes due 2026
Entity Information [Line Items]
Title of 12(b) Security	3.250% Notes due 2026
Trading Symbol	VZ26
Security Exchange Name	NYSE
1.375% Notes due 2026
Entity Information [Line Items]
Title of 12(b) Security	1.375% Notes due 2026
Trading Symbol	VZ26B
Security Exchange Name	NYSE
0.875% Notes due 2027
Entity Information [Line Items]
Title of 12(b) Security	0.875% Notes due 2027
Trading Symbol	VZ27E
Security Exchange Name	NYSE
1.375% Notes due 2028
Entity Information [Line Items]
Title of 12(b) Security	1.375% Notes due 2028
Trading Symbol	VZ28
Security Exchange Name	NYSE
1.125% Notes due 2028
Entity Information [Line Items]
Title of 12(b) Security	1.125% Notes due 2028
Trading Symbol	VZ28A
Security Exchange Name	NYSE
2.350% Fixed Rate Notes due 2028
Entity Information [Line Items]
Title of 12(b) Security	2.350% Fixed Rate Notes due 2028
Trading Symbol	VZ28C
Security Exchange Name	NYSE
1.875% Notes due 2029
Entity Information [Line Items]
Title of 12(b) Security	1.875% Notes due 2029
Trading Symbol	VZ29B
Security Exchange Name	NYSE
0.375% Notes due 2029
Entity Information [Line Items]
Title of 12(b) Security	0.375% Notes due 2029
Trading Symbol	VZ29D
Security Exchange Name	NYSE
1.250% Notes due 2030
Entity Information [Line Items]
Title of 12(b) Security	1.250% Notes due 2030
Trading Symbol	VZ30
Security Exchange Name	NYSE
1.875% Notes due 2030
Entity Information [Line Items]
Title of 12(b) Security	1.875% Notes due 2030
Trading Symbol	VZ30A
Security Exchange Name	NYSE
2.625% Notes due 2031
Entity Information [Line Items]
Title of 12(b) Security	2.625% Notes due 2031
Trading Symbol	VZ31
Security Exchange Name	NYSE
2.500% Notes due 2031
Entity Information [Line Items]
Title of 12(b) Security	2.500% Notes due 2031
Trading Symbol	VZ31A
Security Exchange Name	NYSE
3.000% Fixed Rate Notes due 2031
Entity Information [Line Items]
Title of 12(b) Security	3.000% Fixed Rate Notes due 2031
Trading Symbol	VZ31D
Security Exchange Name	NYSE
0.875% Notes due 2032
Entity Information [Line Items]
Title of 12(b) Security	0.875% Notes due 2032
Trading Symbol	VZ32
Security Exchange Name	NYSE
0.750% Notes due 2032
Entity Information [Line Items]
Title of 12(b) Security	0.750% Notes due 2032
Trading Symbol	VZ32A
Security Exchange Name	NYSE
1.300% Notes due 2033
Entity Information [Line Items]
Title of 12(b) Security	1.300% Notes due 2033
Trading Symbol	VZ33B
Security Exchange Name	NYSE
4.750% Notes due 2034
Entity Information [Line Items]
Title of 12(b) Security	4.750% Notes due 2034
Trading Symbol	VZ34
Security Exchange Name	NYSE
3.125% Notes due 2035
Entity Information [Line Items]
Title of 12(b) Security	3.125% Notes due 2035
Trading Symbol	VZ35
Security Exchange Name	NYSE
1.125% Notes due 2035
Entity Information [Line Items]
Title of 12(b) Security	1.125% Notes due 2035
Trading Symbol	VZ35A
Security Exchange Name	NYSE
3.375% Notes due 2036
Entity Information [Line Items]
Title of 12(b) Security	3.375% Notes due 2036
Trading Symbol	VZ36A
Security Exchange Name	NYSE
2.875% Notes due 2038
Entity Information [Line Items]
Title of 12(b) Security	2.875% Notes due 2038
Trading Symbol	VZ38B
Security Exchange Name	NYSE
1.875% Notes due 2038
Entity Information [Line Items]
Title of 12(b) Security	1.875% Notes due 2038
Trading Symbol	VZ38C
Security Exchange Name	NYSE
1.500% Notes due 2039
Entity Information [Line Items]
Title of 12(b) Security	1.500% Notes due 2039
Trading Symbol	VZ39C
Security Exchange Name	NYSE
3.500% Fixed Rate Notes due 2039
Entity Information [Line Items]
Title of 12(b) Security	3.500% Fixed Rate Notes due 2039
Trading Symbol	VZ39D
Security Exchange Name	NYSE
1.850% Notes due 2040
Entity Information [Line Items]
Title of 12(b) Security	1.850% Notes due 2040
Trading Symbol	VZ40
Security Exchange Name	NYSE
3.850% Fixed Rate Notes due 2041
Entity Information [Line Items]
Title of 12(b) Security	3.850% Fixed Rate Notes due 2041
Trading Symbol	VZ41C
Security Exchange Name	NYSE

XML

Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Operating Revenues
Operating Revenues	$ 33,764	$ 30,447	$ 66,631	$ 62,057
Operating Expenses
Selling, general and administrative expense	7,324	7,156	14,725	15,741
Depreciation and amortization expense	4,020	4,181	8,194	8,331
Total Operating Expenses	25,599	23,086	50,696	48,117
Operating Income	8,165	7,361	15,935	13,940
Equity in earnings (losses) of unconsolidated businesses	1	(13)	9	(25)
Other income (expense), net	502	(72)	903	71
Interest expense	(844)	(1,089)	(1,945)	(2,123)
Income Before Provision For Income Taxes	7,824	6,187	14,902	11,863
Provision for income taxes	(1,875)	(1,348)	(3,575)	(2,737)
Net Income	5,949	4,839	11,327	9,126
Net income attributable to noncontrolling interests	149	139	282	270
Net income attributable to Verizon	5,800	4,700	11,045	8,856
Net Income	$ 5,949	$ 4,839	$ 11,327	$ 9,126
Basic Earnings Per Common Share
Net income attributable to Verizon (USD per share)	$ 1.40	$ 1.14	$ 2.67	$ 2.14
Weighted-average shares outstanding (in shares)	4,141	4,139	4,141	4,139
Diluted Earnings Per Common Share
Net income attributable to Verizon (USD per share)	$ 1.40	$ 1.13	$ 2.67	$ 2.14
Weighted-average shares outstanding (in shares)	4,143	4,141	4,143	4,141
Service and Other
Operating Revenues
Operating Revenues	$ 28,221	$ 26,692	$ 56,144	$ 54,173
Service
Operating Expenses
Cost of services and equipment	8,324	7,639	16,344	15,393
Wireless equipment
Operating Revenues
Operating Revenues	5,543	3,755	10,487	7,884
Operating Expenses
Cost of services and equipment	$ 5,931	$ 4,110	$ 11,433	$ 8,652

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net Income	$ 5,949	$ 4,839	$ 11,327	$ 9,126
Other Comprehensive Income (Loss), Net of Tax (Expense) Benefit
Foreign currency translation adjustments, net of tax of $(15), $4, $(7) and $0	58	77	20	(43)
Unrealized gain (loss) on cash flow hedges, net of tax of $294, $(133), $(46) and $659	(777)	314	132	(1,896)
Unrealized gain (loss) on marketable securities, net of tax of $0, $(2), $1 and $(1)	0	6	(5)	5
Defined benefit pension and postretirement plans, net of tax of $52, $55, $103 and $111	(155)	(169)	(310)	(338)
Other comprehensive income (loss) attributable to Verizon	(874)	228	(163)	(2,272)
Total Comprehensive Income	5,075	5,067	11,164	6,854
Comprehensive income attributable to noncontrolling interests	149	139	282	270
Comprehensive income attributable to Verizon	4,926	4,928	10,882	6,584
Total comprehensive income	$ 5,075	$ 5,067	$ 11,164	$ 6,854

XML

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, tax	$ (15)	$ 4	$ (7)	$ 0
Unrealized gain (loss) on cash flow hedges, tax	294	(133)	(46)	659
Unrealized gain (loss) on marketable securities, tax	0	(2)	1	(1)
Defined benefit pension and postretirement plans, tax	$ 52	$ 55	$ 103	$ 111

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 4,657	$ 22,171
Accounts receivable	22,237	25,169
Less Allowance for credit losses	980	1,252
Accounts receivable, net	21,257	23,917
Inventories	1,421	1,796
Prepaid expenses and other	8,291	6,710
Total current assets	35,626	54,594
Property, plant and equipment	283,654	279,737
Less Accumulated depreciation	189,452	184,904
Property, plant and equipment, net	94,202	94,833
Investments in unconsolidated businesses	560	589
Wireless licenses	98,034	96,097
Deposits for wireless licenses	45,910	2,772
Goodwill	24,915	24,773
Other intangible assets, net	7,002	9,413
Operating lease right-of-use assets	28,180	22,531
Other assets	14,761	10,879
Total assets	349,190	316,481
Current liabilities
Debt maturing within one year	7,023	5,889
Accounts payable and accrued liabilities	17,328	20,658
Current operating lease liabilities	3,881	3,485
Other current liabilities	11,846	9,628
Total current liabilities	40,078	39,660
Long-term debt	144,894	123,173
Employee benefit obligations	16,713	18,657
Deferred income taxes	37,534	35,711
Non-current operating lease liabilities	23,360	18,000
Other liabilities	11,499	12,008
Total long-term liabilities	234,000	207,549
Commitments and Contingencies (Note 12)
Equity
Series preferred stock ($0.10 par value; 250,000,000 shares authorized; none issued)	0	0
Common stock ($0.10 par value; 6,250,000,000 shares authorized in each period; 4,291,433,646 shares issued)	429	429
Additional paid in capital	13,403	13,404
Retained earnings	66,310	60,464
Accumulated other comprehensive loss	(234)	(71)
Common stock in treasury, at cost 151,317,639 and 153,304,088 shares outstanding)	(6,632)	(6,719)
Deferred compensation – employee stock ownership plans (ESOPs) and other	408	335
Noncontrolling interests	1,428	1,430
Total equity	75,112	69,272
Total liabilities and equity	$ 349,190	$ 316,481

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Series preferred stock, par value (USD per share)	$ 0.10	$ 0.10
Series preferred stock, shares authorized (in shares)	250,000,000	250,000,000
Series preferred stock, shares issued (in shares)	0	0
Common stock, par value (USD per share)	$ 0.10	$ 0.10
Common stock, shares authorized (in shares)	6,250,000,000	6,250,000,000
Common stock, shares issued (in shares)	4,291,433,646	4,291,433,646
Treasury stock, shares issued (in shares)	151,317,639	153,304,088

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash Flows from Operating Activities
Net Income	$ 11,327	$ 9,126
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	8,194	8,331
Employee retirement benefits	(1,819)	(32)
Deferred income taxes	1,978	(120)
Provision for expected credit losses	409	831
Equity in losses of unconsolidated businesses, net of dividends received	25	46
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses	82	3,297
Other, net	242	2,073
Net cash provided by operating activities	20,438	23,552
Cash Flows from Investing Activities
Capital expenditures (including capitalized software)	(8,716)	(9,850)
Acquisitions of businesses, net of cash acquired	(458)	(399)
Acquisitions of wireless licenses	(45,278)	(1,801)
Other, net	51	(74)
Net cash used in investing activities	(54,401)	(12,124)
Cash Flows from Financing Activities
Proceeds from long-term borrowings	31,444	9,305
Proceeds from asset-backed long-term borrowings	2,695	2,844
Repayments of long-term borrowings and finance lease obligations	(7,559)	(8,533)
Repayments of asset-backed long-term borrowings	(2,993)	(4,612)
Dividends paid	(5,198)	(5,090)
Other, net	(1,839)	(146)
Net cash provided by (used in) financing activities	16,550	(6,232)
Increase (decrease) in cash, cash equivalents and restricted cash	(17,413)	5,196
Cash, cash equivalents and restricted cash, beginning of period	23,498	3,917
Cash, Cash equivalents and restricted cash, end of period (Note 1)	$ 6,085	$ 9,113

XML

Basis of Presentation

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Note 1. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) in the United States (U.S.) and based upon Securities and Exchange Commission rules that permit reduced disclosure for interim periods. For a more complete discussion of significant accounting policies and certain other information, you should refer to the financial statements included in Verizon Communications Inc.'s (Verizon or the Company) Annual Report on Form 10-K for the year ended December 31, 2020. These financial statements reflect all adjustments that are necessary for a fair presentation of results of operations and financial condition for the interim periods shown, including normal recurring accruals and other items. The results for the interim periods are not necessarily indicative of results for the full year.

Certain amounts have been reclassified to conform to the current period’s presentation.

Earnings Per Common Share

There were a total of approximately 2 million outstanding dilutive securities, primarily consisting of restricted stock units, included in the computation of diluted earnings per common share for the three and six months ended June 30, 2021 and June 30, 2020.

Cash, Cash Equivalents and Restricted Cash

We consider all highly liquid investments with an original maturity of 90 days or less when purchased to be cash equivalents. Cash equivalents are stated at cost, which approximates quoted market value and includes amounts held in money market funds.

Cash collections on the device payment plan agreement receivables 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.

Assets held for sale include cash, cash equivalents and restricted cash in our media business, Verizon Media. See Note 3 for additional information.

Cash, cash equivalents and restricted cash are included in the following line items in the condensed consolidated balance sheets:

	At June 30,		At December 31,		Increase / (Decrease)
(dollars in millions)	2021		2020
Cash and cash equivalents	$	4,657	$	22,171	$	(17,514)
Restricted cash:
Prepaid expenses and other	1,189		1,195		(6)
Other assets	94		132		(38)
Assets held for sale:
Prepaid expenses and other	145		—		145
Cash, cash equivalents and restricted cash	$	6,085	$	23,498	$	(17,413)

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Revenues and Contract Costs

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenues and Contract Costs

Note 2. Revenues and Contract Costs

We earn revenue from contracts with customers, primarily through the provision of telecommunications and other services and through the sale of wireless equipment.

Revenue by Category

We have two reportable segments that we operate and manage as strategic business units - Consumer and Business. Revenue is disaggregated by products and services within Consumer and customer groups (Small and Medium Business, Global Enterprise, Public Sector and Other, and Wholesale) within Business. See Note 11 for additional information on revenue by segment.

Corporate and other includes the results of our media business, Verizon Media Group (Verizon Media), and other businesses. Verizon Media generated revenues from contracts with customers under Accounting Standards Updated (ASU) 2014-09, "Revenue from Contracts with Customers" (Topic 606) of approximately $2.1 billion and $3.9 billion during the three and six months ended June 30, 2021, respectively. Verizon Media generated revenues from contracts with customers under Topic 606 of approximately $1.4 billion and $3.1 billion during the three and six months ended June 30, 2020, respectively.     

We also earn revenues that are not accounted for under Topic 606 from leasing arrangements (such as those for towers and equipment), captive reinsurance arrangements primarily related to wireless device insurance and the interest on equipment financed under a device payment plan agreement when sold to the customer by an authorized agent. As allowed by the practical expedient within ASU 2016-02, "Leases" (Topic 842), we have elected to combine the lease and non-lease components for those arrangements of customer premise equipment where we are the lessor as components accounted for under Topic 606. During the three and six months ended June 30, 2021, revenues from

arrangements that were not accounted for under Topic 606 were approximately $768 million and $1.5 billion, respectively. During the three and six months ended June 30, 2020, revenues from arrangements that were not accounted for under Topic 606 were approximately $785 million and $1.6 billion, respectively.

Remaining Performance Obligations

When allocating the total contract transaction price to identified performance obligations, a portion of the total transaction price may relate to service performance obligations which were not satisfied or are partially satisfied as of the end of the reporting period. Below we disclose information relating to these unsatisfied performance obligations. We apply the practical expedient available under Topic 606 that provides the option to exclude the expected revenues arising from unsatisfied performance obligations related to contracts that have an original expected duration of one year or less. This situation primarily arises with respect to certain month-to-month service contracts. At June 30, 2021, month-to-month service contracts represented approximately 92% of our wireless postpaid contracts and approximately 80% of our wireline Consumer and Small and Medium Business contracts, compared to June 30, 2020, for which month-to-month service contracts represented approximately 89% of our wireless postpaid contracts and 67% of our wireline Consumer and Small and Medium Business contracts.

Additionally, certain contracts provide customers the option to purchase additional services. The fees related to these additional services are recognized when the customer exercises the option (typically on a month-to-month basis).

Contracts for wireless services are generally either month-to-month and cancellable at any time (typically under a device payment plan) or contain terms ranging from greater than one month to up to two years (typically under a fixed-term plan). Additionally, customers may incur charges based on usage or additional optional services purchased in conjunction with entering into a contract that can be canceled at any time and therefore are not included in the transaction price. The transaction price allocated to service performance obligations, which are not satisfied or are partially satisfied as of the end of the reporting period, are generally related to contracts that are not accounted for as month-to-month contracts.

Our Consumer group customers also include traditional wholesale resellers that purchase and resell wireless service under their own brands to their respective customers. Reseller arrangements generally include a stated contract term, which typically extends longer than two years and, in some cases, include a periodic minimum revenue commitment over the contract term for which revenues will be recognized in future periods.

Consumer customer contracts for wireline services are generally month-to-month; however, they may have a service term of two years or shorter than twelve months. Certain contracts with Business customers for wireline services extend into future periods, contain fixed monthly fees and usage-based fees, and can include annual commitments in each year of the contract or commitments over the entire specified contract term; however, a significant number of contracts for wireline services with our Business customers have a contract term that is twelve months or less.

Additionally, there are certain contracts with Business customers for wireline and telematics services and certain Verizon Media contracts with customers that have a contractual minimum fee over the total contract term. We cannot predict the time period when revenue will be recognized related to those contracts; thus, they are excluded from the time bands below. These contracts have varying terms spanning over approximately seven years ending in January 2029 and have aggregate contract minimum payments totaling $2.8 billion.

At June 30, 2021, the transaction price related to unsatisfied performance obligations for total Verizon that is expected to be recognized for the remainder of 2021, 2022 and thereafter was $9.4 billion, $11.7 billion and $3.4 billion, respectively. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations and changes in the timing and scope of contracts, arising from contract modifications.

Accounts Receivable and Contract Balances

The timing of revenue recognition may differ from the time of billing to our customers. Receivables presented in our condensed consolidated balance sheets represent an unconditional right to consideration. Contract balances represent amounts from an arrangement when either Verizon has performed, by transferring goods or services to the customer in advance of receiving all or partial consideration for such goods and services from the customer, or the customer has made payment to Verizon in advance of obtaining control of the goods and/or services promised to the customer in the contract.

Contract assets primarily relate to our rights to consideration for goods or services provided to customers but for which we do not have an unconditional right at the reporting date. Under a fixed-term plan, total contract revenue is allocated between wireless service and equipment revenues. In conjunction with these arrangements, a contract asset is created, which represents the difference between the amount of equipment revenue recognized upon sale and the amount of consideration received from the customer when the performance obligation related to the transfer of control of the equipment is satisfied. The contract asset is reclassified to accounts receivable as wireless services are provided and billed. We have the right to bill the customer as service is provided over time, which results in our right to the payment being unconditional. The contract asset balances are presented in our condensed consolidated balance sheets as Prepaid expenses and other and Other assets. We recognize the allowance for credit losses at inception and reassess quarterly based on management’s expectation of the asset’s collectability.

Contract liabilities arise when we bill our customers and receive consideration in advance of providing the goods or services promised in the contract. We typically bill service one month in advance, which is the primary component of the contract liability balance. Contract liabilities are recognized as revenue when services are provided to the customer. The contract liability balances are presented in our condensed consolidated balance sheets as Other current liabilities and Other liabilities.

The following table presents information about receivables from contracts with customers:

	At June 30,		At January 1,		At June 30,		At January 1,
(dollars in millions)	2021		2021		2020		2020
Receivables(1)	$	9,387	$	12,029	$	10,967	$	12,078
Device payment plan agreement receivables(2)	10,836		10,358		10,047		11,741

(1)Balances do not include receivables related to the following contracts: leasing arrangements (such as those for towers and equipment), captive reinsurance arrangements primarily related to wireless device insurance and the interest on equipment financed under a device payment plan agreement when sold to the customer by an authorized agent.

(2)Included in device payment plan agreement receivables presented in Note 7. Balances do not include receivables derived from the sale of equipment on a device payment plan through an authorized agent.

The following table presents information about contract balances:

	At June 30,		At January 1,		At June 30,		At January 1,
(dollars in millions)	2021		2021		2020		2020
Contract asset	$	972	$	937	$	993	$	1,150
Contract liability (1)	5,846		5,598		5,275		5,307

(1) Revenue recognized related to contract liabilities existing at January 1, 2021 were $199 million and $4.1 billion for the three and six months ended June 30, 2021, respectively. Revenue recognized related to contract liabilities existing at January 1, 2020 were $204 million and $4.0 billion, for the three and six months ended June 30, 2020, respectively.

The balance of contract assets and contract liabilities recorded in our condensed consolidated balance sheets were as follows:

	At June 30,		At December 31,
(dollars in millions)	2021		2020
Assets
Prepaid expenses and other	$	772	$	733
Other assets	200		204
Total	$	972	$	937
Liabilities
Other current liabilities	$	4,985	$	4,843
Other liabilities	861		755
Total	$	5,846	$	5,598

Contract Costs

Topic 606 requires the recognition of an asset for incremental costs to obtain a customer contract, which are then amortized to expense over the respective periods of expected benefit. We recognize an asset for incremental commission expenses paid to internal and external sales personnel and agents in conjunction with obtaining customer contracts. We only defer these costs when we have determined the commissions are incremental costs that would not have been incurred absent the customer contract and are expected to be recoverable. Costs to obtain a contract are amortized and recorded ratably as commission expense over the period representing the transfer of goods or services to which the assets relate. Costs to obtain wireless contracts are amortized over both of our Consumer and Business customers' estimated device upgrade cycles, as such costs are typically incurred each time a customer upgrades. Costs to obtain wireline contracts are amortized as expense over the estimated customer relationship period for our Consumer customers. Incremental costs to obtain wireline contracts for our Business customers are insignificant. Costs to obtain contracts are recorded in Selling, general and administrative expense.

We also defer costs incurred to fulfill contracts that: (1) relate directly to the contract; (2) are expected to generate resources that will be used to satisfy our performance obligation under the contract; and (3) are expected to be recovered through revenue generated under the contract. Contract fulfillment costs are expensed as we satisfy our performance obligations and recorded in Cost of services. These costs principally relate to direct costs that enhance our wireline business resources, such as costs incurred to install circuits.

We determine the amortization periods for our costs incurred to obtain or fulfill a customer contract at a portfolio level due to the similarities within these customer contract portfolios.

Other costs, such as general costs or costs related to past performance obligations, are expensed as incurred.

Collectively, costs to obtain a contract and costs to fulfill a contract are referred to as deferred contract costs, and amortized over a two-to six-year period. Deferred contract costs are classified as current or non-current within Prepaid expenses and other and Other assets, respectively.

The balances of deferred contract costs included in our condensed consolidated balance sheets were as follows:

	At June 30,		At December 31,
(dollars in millions)	2021		2020
Assets
Prepaid expenses and other	$	2,401	$	2,472
Other assets	2,113		2,070
Total	$	4,514	$	4,542

For the three and six months ended June 30, 2021, we recognized expense of $743 million and $1.5 billion, respectively, associated with the amortization of deferred contract costs, primarily within Selling, general and administrative expense in our condensed consolidated statements of income. For the three and six months ended June 30, 2020, we recognized expense of $767 million and $1.5 billion, respectively, associated with the amortization of deferred contract costs, primarily within Selling, general and administrative expense in our condensed consolidated statements of income.

We assess our deferred contract costs for impairment on a quarterly basis. We recognize an impairment charge to the extent the carrying amount of a deferred cost exceeds the remaining amount of consideration we expect to receive in exchange for the goods and services related to the cost, less the expected costs related directly to providing those goods and services that have not yet been recognized as expenses. There have been no impairment charges recognized for the three and six months ended June 30, 2021 or June 30, 2020.

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Acquisitions and Divestitures

6 Months Ended

Jun. 30, 2021

Business Combinations [Abstract]

Acquisitions and Divestitures

Note 3. Acquisitions and Divestitures

Spectrum License Transactions

In March 2020, the Federal Communications Commission's (FCC) incentive auction, Auction 103, for spectrum licenses in the upper 37 Gigahertz (GHz), 39 GHz, and 47 GHz bands concluded. Verizon participated in this incentive auction and was the high bidder on 4,940 licenses, which primarily consisted of 37 GHz and, to a lesser extent, 39 GHz spectrum. As an incumbent licensee, our 39 GHz licenses provided us with incentive payments that were applied towards the purchase price of spectrum in the auction. The value of the licenses won by Verizon amounted to $3.4 billion, of which $1.8 billion was settled with the relinquished 39 GHz licenses. The remaining balance was settled in cash of $1.6 billion, of which $101 million was paid in December 2019. In connection with the incentive auction, a pre-tax net loss of $1.2 billion ($914 million after-tax) was recorded in Selling, general and administrative expense in the condensed consolidated statement of income during the six months ended June 30, 2020 because the exchange of the previously held licenses for new licenses had commercial substance. See Note 4 for additional information. The new reconfigured licenses were received in the second quarter 2020 and are included in Wireless licenses in our condensed consolidated balance sheet.

In September 2020, the FCC completed Auction 105 for Priority Access Licenses. Verizon participated in the auction and was the high bidder on 557 licenses in the 3.5 GHz band valued at approximately $1.9 billion. Verizon made payments for these licenses in 2020 and received them from the FCC in March 2021. The purchase cost for these licenses and related capitalized interest, to the extent qualifying activities have occurred, are included in Wireless licenses in our condensed consolidated balance sheet.

In February 2021, the FCC concluded Auction 107 for C-Band wireless spectrum. Verizon was the winning bidder on 3,511 licenses, consisting of contiguous C-Band spectrum bands ranging between 140 and 200 megahertz of C-Band spectrum in all 406 markets available in the auction. Verizon paid $45.5 billion for the licenses it won, of which $44.6 billion was paid in the first quarter of 2021. In accordance with the rules applicable to the auction, Verizon is required to make additional payments to acquire the licenses. The payments are for our allocable share of clearing costs incurred by, and incentive payments due to, the incumbent license holders associated with the auction, which are estimated to be $7.4 billion. We expect to begin making these payments in 2021 for the initial 46 markets and continue to do so for the remaining markets through 2024. These payments are dependent on the incumbent license holders accelerated clearing of the spectrum for Verizon’s use and, therefore, the final timing and amounts could differ based on the incumbent holders’ execution of their clearing process. Per FCC order, the clearing must be completed by December 2025.

The carrying value of the wireless spectrum won in Auction 107 will consist of all payments required to participate and purchase licenses in the auction, including Verizon’s allocable share of clearing costs incurred by, and incentive payments due to, the incumbent license holders associated with the auction that we are obligated to pay in order to acquire the licenses. Carrying value will also include capitalized interest to the extent qualifying activities have occurred. On July 23, 2021 Verizon received the wireless licenses from the FCC. The carrying value is recorded within Deposits for wireless licenses in our condensed consolidated balance sheet as of June 30, 2021, and has been subsequently reclassified to Wireless licenses upon receipt of the corresponding licenses in July 2021.

Refer to Note 6 for further details on significant debt transactions.

During the three and six months ended June 30, 2021, we entered into and completed various other wireless license acquisitions for cash consideration of an insignificant amount and approximately $90 million, respectively. In March 2021, we reached two agreements to sell certain wireless licenses for insignificant cash consideration. As of June 30, 2021, these wireless licenses are classified as assets held for sale

within Other assets and we recognized a pre-tax loss during the six months ended June 30, 2021 of $223 million ($167 million after-tax). The agreements are subject to regulatory approval and buyer financing conditions.

Blue Jeans Network, Inc.

In April 2020, we entered into a definitive purchase agreement to acquire Blue Jeans Network, Inc. (BlueJeans), an enterprise-grade video conferencing and event platform, whose services are sold to Business customers globally. The transaction closed in May 2020. The aggregate cash consideration paid by Verizon at the closing of the transaction was approximately $397 million, net of cash acquired.

TracFone Wireless, Inc.

In September 2020, we entered into a purchase agreement (Tracfone Purchase Agreement) with América Móvil to acquire TracFone Wireless, Inc. (Tracfone), a provider of prepaid and value mobile services in the U.S. Under the terms of the Tracfone Purchase Agreement, we will acquire all of the stock of Tracfone for approximately $3.1 billion in cash and $3.1 billion in Verizon common stock, subject to customary adjustments, at closing. The number of shares issued will be based on an average trading price determined as of the closing date and is subject to a minimum number of shares issuable of 47,124,445 and a maximum number of shares issuable of 57,596,544. The Tracfone Purchase Agreement also includes up to an additional $650 million in future cash consideration related to the achievement of certain performance measures and other commercial arrangements. The transaction is subject to regulatory approvals and closing conditions and is expected to close in the second half of 2021.

Bluegrass Cellular

In October 2020, we entered into a definitive agreement to acquire certain assets of Bluegrass Cellular (Bluegrass), a rural wireless operator serving central Kentucky. Bluegrass provides wireless service to 210,000 customers in 34 counties in rural service areas 3, 4, and 5 in Central Kentucky. The transaction closed in March 2021. The aggregate cash consideration paid by Verizon at the closing of the transaction was approximately $410 million, net of cash acquired, which is subject to customary closing adjustments.

The financial results of Bluegrass are included in the consolidated results of Verizon from the date of acquisition. These amounts are insignificant for the three months and six months ended June 30, 2021.

The acquisition of Bluegrass was accounted for as a business combination. We are currently assessing the identification and measurement of the assets acquired and liabilities assumed based on their fair values as of the close of the acquisition. Preliminarily, we recorded approximately $141 million of plant, property and equipment, $135 million of intangible assets and $91 million of goodwill. Goodwill is calculated as the difference between the acquisition date fair value of the consideration transferred and the fair value of the net assets acquired. The goodwill represents future economic benefits that we expect to achieve as a result of the acquisition. The goodwill related to this acquisition is included within Consumer.

Verizon Media

On May 2, 2021, Verizon entered into a definitive agreement with an affiliate of Apollo Global Management Inc. pursuant to which we agreed to sell Verizon Media in return for consideration of $4.3 billion in cash, subject to customary adjustments, $750 million in non-convertible preferred limited partnership units of the affiliate, and 10% of the fully-diluted common limited partnership units of the affiliate. The sale is subject to customary regulatory approvals and closing conditions and is expected to close in the second half of 2021.

The following table summarizes the major classes of assets and liabilities of Verizon Media which are currently included in Verizon's continuing operations and classified as held for sale in our condensed consolidated balance sheet as of June 30, 2021:

	At June 30,
(dollars in millions)	2021
Assets held for sale:
Prepaid expenses and other
Cash and cash equivalents	$	100
Restricted cash	45
Accounts receivable	1,843
Other	127
	$	2,115
Other assets
Property, plant and equipment, net	$	1,140
Other intangible assets, net	2,469
Other	227
	$	3,836
Liabilities held for sale:
Other current liabilities
Accounts payable and accrued liabilities	$	1,665
Other	280
	$	1,945
Other liabilities	$	390

The sale includes all of the assets of Verizon Media, including its brands, businesses, and web domains. The operating results of this business are included within our Corporate and other segment for all periods presented. Refer to Note 2 for further details on revenues generated by Verizon Media under Topic 606.

Other

During the three and six months ended June 30, 2021, we completed other acquisitions for insignificant amounts of cash consideration.

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Wireless Licenses, Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Wireless Licenses, Goodwill, and Other Intangible Assets

Note 4. Wireless Licenses, Goodwill, and Other Intangible Assets

Wireless Licenses

The carrying amounts of our Wireless licenses, as well as wireless spectrum for which licenses have not yet been received, are as follows:

	At June 30,		At December 31,
(dollars in millions)	2021		2020
Wireless licenses	$	98,034	$	96,097
Deposits for wireless licenses	45,910		2,772

At June 30, 2021 and 2020, approximately $53.5 billion and $3.5 billion, respectively, of wireless licenses were under development for commercial service for which we were capitalizing interest costs. At June 30, 2021, the $53.5 billion was comprised of $8.0 billion recorded in Wireless licenses and $45.5 billion recorded in Deposits for wireless licenses. At June 30, 2020, $3.5 billion was recorded in Wireless licenses. We recorded approximately $154 million and $101 million of capitalized interest on wireless licenses for the six months ended June 30, 2021 and 2020, respectively. We recorded approximately $455 million of capitalized interest on Deposits for wireless licenses during the six months ended June 30, 2021.

In the first quarter of 2020, we reclassified substantially all of our 39 GHz wireless licenses, including capitalized interest, with a carrying value of $2.8 billion to assets held for sale in connection with the FCC's incentive auction, Auction 103. As a result, these wireless licenses were adjusted down to their fair value of $1.6 billion resulting in a pre-tax loss of $1.2 billion ($914 million after-tax) in 2020. The new reconfigured licenses were received in the second quarter 2020 and had a value of $3.4 billion.

During the six months ended June 30, 2021, we renewed various wireless licenses in accordance with FCC regulations. The average renewal period for these licenses was 10 years.

Goodwill

Changes in the carrying amount of Goodwill are as follows:

(dollars in millions)	Consumer		Business		Other		Total
Balance at January 1, 2021 (1)	$	17,222	$	7,535	$	16	$	24,773
Acquisitions (2)	91		—		37		128
Reclassifications, adjustments and other	3		11		—		14
Balance at June 30, 2021 (1)	$	17,316	$	7,546	$	53	$	24,915

(1) Goodwill is net of accumulated impairment charges of $4.8 billion, related to our Media reporting unit.

(2) The change in goodwill due to acquisitions is related to Bluegrass and other insignificant transactions. See Note 3 for additional information.

Other Intangible Assets

The following table displays the composition of Other intangible assets, net as well as the respective amortization period:

	At June 30, 2021						At December 31, 2020
(dollars in millions)	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
Customer lists (8 to 13 years)	$	1,951	$	(996)	$	955	$	4,021	$	(1,961)	$	2,060
Non-network internal-use software (5 to 7 years)	20,080		(14,182)		5,898		21,685		(15,104)		6,581
Other (4 to 25 years)	901		(752)		149		1,771		(999)		772
Total	$	22,932	$	(15,930)	$	7,002	$	27,477	$	(18,064)	$	9,413

The amortization expense for Other intangible assets was as follows: 

	Three Months Ended		Six Months Ended
(dollars in millions)	June 30,		June 30,
2021	$	480	$	1,109
2020	605		1,197

The estimated future amortization expense for Other intangible assets for the remainder of the current year and next 5 years is as follows:

Years	(dollars in millions)
Remainder of 2021	$	786
2022	1,565
2023	1,350
2024	1,114
2025	911
2026	538

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Leasing Arrangements

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Leasing Arrangements

Note 5. Leasing Arrangements

We enter into various lease arrangements for network equipment including towers, distributed antenna systems, small cells, real estate and connectivity mediums including dark fiber, equipment, and other various types of assets for use in our operations. Our leases have remaining lease terms ranging from 1 year to 30 years, some of which include options that we can elect to extend the leases term for up to 25 years, and some of which include options to terminate the leases. For the majority of leases entered into during the current period, we have concluded it is not reasonably certain that we would exercise the options to extend the lease or terminate the lease. Therefore, as of the lease commencement date, our lease terms generally do not include these options. We include options to extend the lease when it is reasonably certain that we will exercise that option.

In April 2021, Verizon executed agreements that modified the tenure and payment terms for certain existing cell tower operating leases to support the build out of our fifth generation wireless network.

The components of net lease cost were as follows:

		Three Months Ended				Six Months Ended
		June 30,				June 30,
(dollars in millions)	Classification	2021		2020		2021		2020
Operating lease cost (1)	Cost of services Selling, general and administrative expense	$	1,341	$	1,254	$	2,585	$	2,475
Finance lease cost:
Amortization of right-of-use assets	Depreciation and amortization expense	66		40		133		291
Interest on lease liabilities	Interest expense	9		10		17		20
Short-term lease cost (1)	Cost of services Selling, general and administrative expense	4		5		9		12
Variable lease cost (1)	Cost of services Selling, general and administrative expense	78		76		159		163
Sublease income	Service revenues and other	(49)		(74)		(97)		(144)
Total net lease cost		$	1,449	$	1,311	$	2,806	$	2,817

(1) All operating lease costs, including short-term and variable lease costs, are split between Cost of services and Selling, general and administrative expense in the condensed consolidated statements of income based on the use of the facility or equipment that the rent is being paid on. Refer to the consolidated financial statements included in Verizon's Annual Report on Form 10-K for the year ended December 31, 2020 for additional information. Variable lease costs represent payments that are dependent on a rate or index, or on usage of the asset.

The Company's maturity analysis of operating and finance lease liabilities as of June 30, 2021 were as follows:

			(dollars in millions)
Years	Operating Leases		Finance Leases
Remainder of 2021	$	2,186	$	204
2022	4,148		376
2023	3,924		310
2024	3,663		241
2025	3,292		120
Thereafter	14,516		97
Total lease payments	31,729		1,348
Less interest	4,488		73
Present value of lease liabilities	27,241		1,275
Less current obligation	3,881		377
Long-term obligation at June 30, 2021	$	23,360	$	898

Leasing Arrangements

Note 5. Leasing Arrangements

We enter into various lease arrangements for network equipment including towers, distributed antenna systems, small cells, real estate and connectivity mediums including dark fiber, equipment, and other various types of assets for use in our operations. Our leases have remaining lease terms ranging from 1 year to 30 years, some of which include options that we can elect to extend the leases term for up to 25 years, and some of which include options to terminate the leases. For the majority of leases entered into during the current period, we have concluded it is not reasonably certain that we would exercise the options to extend the lease or terminate the lease. Therefore, as of the lease commencement date, our lease terms generally do not include these options. We include options to extend the lease when it is reasonably certain that we will exercise that option.

In April 2021, Verizon executed agreements that modified the tenure and payment terms for certain existing cell tower operating leases to support the build out of our fifth generation wireless network.

The components of net lease cost were as follows:

		Three Months Ended				Six Months Ended
		June 30,				June 30,
(dollars in millions)	Classification	2021		2020		2021		2020
Operating lease cost (1)	Cost of services Selling, general and administrative expense	$	1,341	$	1,254	$	2,585	$	2,475
Finance lease cost:
Amortization of right-of-use assets	Depreciation and amortization expense	66		40		133		291
Interest on lease liabilities	Interest expense	9		10		17		20
Short-term lease cost (1)	Cost of services Selling, general and administrative expense	4		5		9		12
Variable lease cost (1)	Cost of services Selling, general and administrative expense	78		76		159		163
Sublease income	Service revenues and other	(49)		(74)		(97)		(144)
Total net lease cost		$	1,449	$	1,311	$	2,806	$	2,817

(1) All operating lease costs, including short-term and variable lease costs, are split between Cost of services and Selling, general and administrative expense in the condensed consolidated statements of income based on the use of the facility or equipment that the rent is being paid on. Refer to the consolidated financial statements included in Verizon's Annual Report on Form 10-K for the year ended December 31, 2020 for additional information. Variable lease costs represent payments that are dependent on a rate or index, or on usage of the asset.

The Company's maturity analysis of operating and finance lease liabilities as of June 30, 2021 were as follows:

			(dollars in millions)
Years	Operating Leases		Finance Leases
Remainder of 2021	$	2,186	$	204
2022	4,148		376
2023	3,924		310
2024	3,663		241
2025	3,292		120
Thereafter	14,516		97
Total lease payments	31,729		1,348
Less interest	4,488		73
Present value of lease liabilities	27,241		1,275
Less current obligation	3,881		377
Long-term obligation at June 30, 2021	$	23,360	$	898

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Debt

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Debt

Note 6. 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 Verizon and its subsidiaries that occurred during the six months ended June 30, 2021.

Repayments, Redemptions and Repurchases

(dollars in millions)	Principal Repaid/ Redeemed/ Repurchased		Amount Paid (1)
Three Months Ended June 30, 2021
Verizon 2.946% notes due 2022	$	713	$	730
Verizon 2.450% notes due 2022	794		819
Verizon 5.150% notes due 2023	3,190		3,519
Open market repurchases of various Verizon and subsidiary notes	1,994		2,440
Three Months Ended June 30, 2021 total	6,691		7,508
Six Months Ended June 30, 2021 total	$	6,691	$	7,508

(1) Represents amount paid to repay, redeem, or repurchase, excluding interest or dividend.

Issuances

(amounts in millions)	Principal Amount Issued		Net Proceeds (1)
Three Months Ended March 31, 2021
Verizon 0.750% notes due 2024	$	1,750	$	1,746
Verizon floating rate (Compounded SOFR(2) + 0.500%) notes due 2024	750		748
Verizon 1.450% notes due 2026	2,750		2,737
Verizon floating rate (Compounded SOFR(2) + 0.790%) notes due 2026	750		748
Verizon 2.100% notes due 2028	3,000		2,988
Verizon 2.550% notes due 2031	4,250		4,216
Verizon 3.400% notes due 2041	3,750		3,726
Verizon 3.550% notes due 2051	4,500		4,426
Verizon 3.700% notes due 2061	3,500		3,439
Verizon 0.375% notes due 2029 (3)	€	1,000	1,186
Verizon 0.750% notes due 2032 (3)	€	1,000	1,181
Verizon 1.125% notes due 2035 (3)	€	750	878
Verizon 2.375% notes due 2028 (3)	C$	1,000	800
Verizon 4.050% notes due 2051 (3)	C$	500	399
Verizon 2.350% notes due 2028 (3)	A$	600	463
Verizon 3.000% notes due 2031 (3)	A$	500	385
Verizon 3.850% notes due 2041 (3)	A$	150	116
Verizon 0.193% bonds due 2028 (3)	CHF	375	403
Verizon 0.555% bonds due 2031 (3)	CHF	325	349
Three Months Ended March 31, 2021 total			30,934
Six Months Ended June 30, 2021 total			$	30,934

(1) Net proceeds were net of underwriting discounts and other issuance costs. In addition, for securities denominated in a currency other than the U.S. dollar, net proceeds are shown on a U.S. dollar equivalent basis.

(2) Compounded Secured Overnight Financing Rate (SOFR) is calculated using the SOFR Index published by the Federal Reserve Bank of New York in accordance with the terms of the notes. The Compounded SOFR for the initial interest period ending in June 2021 was 0.010%.

(3) See Note 8 for information on derivative transactions related to the issuances.

Asset-Backed Debt

As of June 30, 2021, the carrying value of our asset-backed debt was $10.3 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 Verizon, and certain other affiliates of Verizon (collectively, the Originators) transfer device payment plan agreement receivables to one of the ABS Entities, which in turn transfers such receivables 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 device payment plan agreement receivables and future collections on such receivables. The device payment plan agreement receivables 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 device payment plan agreement receivables, 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, Verizon has agreed to guarantee certain of the payment obligations of Cellco and the Originators to the ABS Entities.

Cash collections on the device payment plan agreement receivables 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 and the assets securing this debt are included in our condensed consolidated balance sheets.

ABS Notes

During the six months ended June 30, 2021, we completed the following ABS Notes transactions:

(dollars in millions)	Interest Rates %	Expected Weighted-average Life to Maturity (in years)	Principal Amount Issued
May 2021
A Senior class notes	0.500	2.99	$	1,500
B Junior class notes	0.690	2.99	119
C Junior class notes	0.890	2.99	81
Total			$	1,700

Under the terms of each series of ABS Notes, there is a revolving period that is two years or up to three years, as applicable, during which we may transfer additional receivables to the ABS Entity. During the three and six months ended June 30, 2021, we made aggregate principal repayments of $761 million and $1.5 billion, respectively, on ABS Notes that have entered the amortization period, including principal payments made in connection with clean-up redemptions. In July 2021, in connection with an optional acquisition of receivables and redemption of ABS Notes, we made a principal payment, in whole, for $125 million.

ABS Financing Facility

In March 2021, we borrowed an additional $1.0 billion under the loan agreement outstanding in connection with the ABS Financing Facility. In May 2021, the aggregate outstanding balance of $1.5 billion was fully repaid and there was no outstanding balance under the ABS Financing Facility as of June 30, 2021.

Variable Interest Entities (VIEs)

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)	2021		2020
Assets
Account receivable, net	$	8,877	$	9,257
Prepaid expenses and other	1,189		1,128
Other assets	3,248		2,950
Liabilities
Accounts payable and accrued liabilities	9		8
Debt maturing within one year	4,344		4,191
Long-term debt	5,971		6,413

See Note 7 for additional information on device payment plan agreement receivables used to secure asset-backed debt.

Long-Term Credit Facilities

				At June 30, 2021
(dollars in millions)	Maturities	Facility Capacity		Unused Capacity		Principal Amount Outstanding
Verizon revolving credit facility (1)	2024	$	9,500	$	9,392	N/A
Various export credit facilities (2)	2022 - 2029	7,500		530		$	5,029
Total		$	17,000	$	9,922	$	5,029

N/A - not applicable

(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.

(2) During the six months ended June 30, 2021, we drew down $470 million from these facilities. These credit facilities are used to finance equipment-related purchases. Borrowings under certain of these facilities amortize 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, 2021 and 2020, we financed, primarily through alternative financing arrangements, the purchase of approximately $145 million and $673 million, respectively, of long-lived assets consisting primarily of network equipment. As of June 30, 2021 and December 31, 2020, $1.3 billion and $1.6 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.

Debt Extinguishment Losses

During both the three and six months ended June 30, 2021 and June 30, 2020, we recorded debt extinguishment losses of $1.1 billion and $102 million, respectively. The losses are recorded in Other income (expense), net in our condensed consolidated statements of income.

Guarantees

We guarantee the debentures of our operating telephone company subsidiaries. As of June 30, 2021, $765 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 Verizon.

We also guarantee the debt obligations of GTE LLC as successor in interest to GTE Corporation that were issued and outstanding prior to July 1, 2003. As of June 30, 2021, $391 million aggregate principal amount of these obligations remained outstanding.

Covenants

We and our consolidated subsidiaries are in compliance with all of our restrictive covenants in our debt agreements.

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Device Payment Plan Agreement and Wireless Service Receivables

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Device Payment Plan Agreement and Wireless Service Receivables

Note 7. Device Payment Plan Agreement and Wireless Service Receivables

The following table presents information about accounts receivable, net of allowances, recorded in our condensed consolidated balance sheet:

	At June 30, 2021
(dollars in millions)	Device payment plan agreement		Wireless service		Other receivables(1)		Total
Accounts receivable	$	12,157	$	5,006	$	5,074	$	22,237
Less Allowance for credit losses	575		145		260		980
Accounts receivable, net of allowance	$	11,582	$	4,861	$	4,814	$	21,257

(1) Other receivables primarily include wireline receivables and other receivables, the allowances for which are individually insignificant.

Under the Verizon device payment program, our eligible wireless customers purchase wireless devices under a device payment plan agreement. Customers that activate service on devices purchased under the device payment program pay lower service fees as compared to those under our fixed-term service plans, and their device payment plan charge is included on their wireless monthly bill. We no longer offer Consumer customers new fixed-term, subsidized service plans for devices; however, we continue to offer subsidized plans to our Business customers. We also continue to service existing plans for customers who have not yet purchased and activated devices under the Verizon device payment program.

The following table displays device payment plan agreement receivables, net, recognized in our condensed consolidated balance sheets:

	At June 30,		At December 31,
(dollars in millions)	2021		2020
Device payment plan agreement receivables, gross	$	18,537	$	17,959
Unamortized imputed interest	(397)		(453)
Device payment plan agreement receivables, at amortized cost	18,140		17,506
Allowance (1)	(833)		(940)
Device payment plan agreement receivables, net	$	17,307	$	16,566
Classified in our condensed consolidated balance sheets:
Accounts receivable, net	$	11,582	$	11,601
Other assets	5,725		4,965
Device payment plan agreement receivables, net	$	17,307	$	16,566

(1) Includes allowance for both short-term and long-term device payment plan agreement receivables.

Included in our device payment plan agreement receivables at June 30, 2021 and December 31, 2020, are net device payment plan agreement receivables of $12.0 billion and $12.1 billion, respectively, which have been transferred to ABS Entities and continue to be reported in our condensed consolidated balance sheets. See Note 6 for additional information. We believe the carrying value of these receivables approximate their fair value using a Level 3 expected cash flow model.

For indirect channel wireless contracts with customers, we impute risk adjusted interest on the device payment plan agreement receivables. We record the imputed interest as a reduction to the related accounts receivable. Interest income, which is included within Service revenues and other in our condensed consolidated statements of income, is recognized over the financed device payment term.

Promotions

In connection with certain device payment plan agreements, we may offer a promotion to allow our customers to upgrade to a new device after paying down a certain specified portion of the required device payment plan agreement amount as well as trading in their device in good working order. When a customer enters into a device payment plan agreement with the right to upgrade to a new device, we account for this trade-in right as a guarantee obligation. We recognize a liability measured at fair value for the customer’s right to trade in the device which is determined by considering several factors, including the weighted-average selling prices obtained in recent resales of similar devices eligible for trade-in. At June 30, 2021 and December 31, 2020, the amount of the guarantee liability was $52 million and insignificant, respectively.

We may offer certain promotions that allow a customer to trade in their owned device in connection with the purchase of a new device. Under these types of promotions, the customer receives a credit for the value of the trade-in device. At June 30, 2021 and December 31, 2020, the amount of trade-in liability was $174 million and $70 million, respectively.

In addition, we may provide the customer with additional future billing credits that will be applied against the customer’s monthly bill as long as service is maintained. These future billing credits are accounted for as consideration payable to a customer and are included in the determination of total transaction price, resulting in a contract liability.

Device payment plan agreement receivables, net, does not reflect the trade-in liability, additional future credits or the guarantee liability.

Origination of Device Payment Plan Agreements

When originating device payment plan agreements, we use internal and external data sources to create a credit risk score to measure the credit quality of a customer and to determine eligibility for the device payment program. Verizon’s experience has been that the payment attributes of longer tenured customers are highly predictive for estimating their reliability to make future payments. Customers with longer tenures tend to exhibit similar risk characteristics to other customers with longer tenures, and receivables due from customers with longer tenures tend to perform better than receivables from customers that have not previously been Verizon customers. As a result of this experience, we make initial lending decisions based upon whether the customers are "established customers" or "short-tenured customers." If a Consumer customer has been a customer for 45 days or more, or if a Business customer has been a customer for 12 months or more, the customer is considered an "established customer." For established customers, the credit decision and ongoing credit monitoring processes rely on a combination of internal and external data sources. If a Consumer customer has been a customer less than 45 days, or a Business customer has been a customer for less than 12 months, the customer is considered a "short-tenured customer." For short-tenured customers, the credit decision and credit monitoring processes rely more heavily on external data sources.

Internal data and/or external credit data are obtained from the credit reporting agencies, if available, to create a custom credit risk score for Consumer customers. The custom credit risk score is generated automatically from the applicant’s credit data using proprietary custom credit models. The credit risk score measures the likelihood that the potential customer will become severely delinquent and be disconnected for non-payment. For a small portion of short-tenured customer applications, a traditional credit report is not available from one of the national credit reporting agencies because the potential customer does not have sufficient credit history. In those instances, alternative credit data is used for the risk assessment. For Business customers, we also verify the existence of the business with external data sources.

Based on the custom credit risk score, we assign each customer to a credit class, each of which has specified offers of credit including an account level spending limit and either a maximum amount of credit allowed per device or a required down payment percentage.

Credit Quality Information

Subsequent to origination, we assess indicators for the quality of our wireless device payment plan agreement portfolio using two models, one for new customers and one for existing customers. The model for new customers pools all Consumer and Business wireless customers based on 210 days and 12 months or less, respectively, as "new customers." The model for existing customers pools all Consumer and Business wireless customers based on 210 days and 12 months or more, respectively, as "existing customers."

The following table presents device payment plan agreement receivables, at amortized cost, as of June 30, 2021, by credit quality indicator and year of origination:

	Year of Origination
(dollars in millions)	2021		2020		Prior to 2020(1)		Total
New customers	$	1,335	$	1,183	$	218	$	2,736
Existing customers	7,074		7,072		1,258		15,404
Total	$	8,409	$	8,255	$	1,476	$	18,140

(1) Includes accounts that have been suspended at a point in time.

The data presented in the table above was last updated on June 30, 2021.

We assess indicators for the quality of our wireless service receivables portfolio as one overall pool. As of June 30, 2021, wireless service receivables, at amortized cost, originating in 2021 and 2020 were $5.0 billion and an insignificant amount, respectively.

Allowance for Credit Losses

The credit quality indicators are used in determining the estimated amount and the timing of expected credit losses for the device payment plan agreement and wireless service receivables portfolios.

For device payment plan agreement receivables, we record bad debt expense based on a default and loss calculation using our proprietary loss model. The expected loss rate is determined based on customer credit scores and other qualitative factors as noted above. The loss rate is assigned individually on a customer by customer basis and the custom credit scores are then aggregated by vintage and used in our proprietary loss model to calculate the weighted-average loss rate used for determining the allowance balance.

We monitor the collectability of our wireless service receivables as one overall pool. Wireline service receivables are disaggregated and pooled by the following customer groups: consumer, small and medium business, global enterprise, public sector and wholesale. For wireless service receivables and wireline consumer and small and medium business receivables, the allowance is calculated based on a 12 month rolling average write-off balance multiplied by the average life-cycle of an account from billing to write-off. The risk of loss is assessed over the contractual life of the receivables and is adjusted based on the historical loss amounts for current and future conditions based on management’s qualitative considerations. For global enterprise, public sector and wholesale wireline receivables, the allowance for credit losses is based on historical write-off experience and individual customer credit risk, if applicable.

Activity in the allowance for credit losses by portfolio segment of receivables were as follows:

(dollars in millions)	Device Payment Plan Agreement Receivables(1)		Wireless Service Plan Receivables
Balance at January 1, 2021	$	940	$	262
Current period provision for expected credit losses	235		87
Write-offs charged against the allowance	(365)		(238)
Recoveries collected	23		34
Balance at June 30, 2021	$	833	$	145

(1) Includes allowance for both short-term and long-term device payment plan agreement receivables.

We monitor delinquency and write-off experience based on the quality of our device payment plan agreement and wireless service receivables portfolios. The extent of our collection efforts with respect to a particular customer are based on the results of our proprietary custom internal scoring models that analyze the customer’s past performance to predict the likelihood of the customer falling further delinquent. These custom scoring models assess a number of variables, including origination characteristics, customer account history and payment patterns. Since our customers’ behaviors may be impacted by general economic conditions, we analyzed whether changes in macroeconomic conditions impact our credit loss experience and have concluded that our credit loss estimates are generally not materially impacted by reasonable and supportable forecasts of future economic conditions. Based on the score derived from these models, accounts are grouped by risk category to determine the collection strategy to be applied to such accounts. For device payment plan agreement receivables, we consider an account to be delinquent and in default status if there are unpaid charges remaining on the account on the day after the bill’s due date. For wireless service receivables, an account is considered delinquent 34 days after the bill cycle date. The risk class determines the speed and severity of the collections effort including initiatives taken to facilitate customer payment.

The balance and aging of the device payment plan agreement receivables, at amortized cost, were as follows:

	At June 30,
(dollars in millions)	2021
Unbilled	$	17,040
Billed:
Current	948
Past due	152
Device payment plan agreement receivables, at amortized cost	$	18,140

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Fair Value Measurements

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 8. Fair Value Measurements

Recurring Fair Value Measurements

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2021:

(dollars in millions)	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Prepaid expenses and other:
Interest rate swaps	$	—	$	184	$	—	$	184
Cross currency swaps	—		12		—		12
Other assets:
Fixed income securities	—		464		—		464
Interest rate swaps	—		330		—		330
Cross currency swaps	—		1,068		—		1,068
Total	$	—	$	2,058	$	—	$	2,058
Liabilities:
Other current liabilities:
Foreign exchange forwards	$	—	$	13	$	—	$	13
Cross currency swaps	—		295		—		295
Forward starting interest rate swaps	—		281		—		281
Other liabilities:
Interest rate swaps	—		572		—		572
Cross currency swaps	—		462		—		462
Total	$	—	$	1,623	$	—	$	1,623

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2020:

(dollars in millions)	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Prepaid expenses and other:
Foreign exchange forwards	$	—	$	12	$	—	$	12
Other assets:
Fixed income securities	—		459		—		459
Interest rate swaps	—		787		—		787
Cross currency swaps	—		1,446		—		1,446
Total	$	—	$	2,704	$	—	$	2,704
Liabilities:
Other current liabilities:
Forward starting interest rate swaps	$	—	$	409	$	—	$	409
Foreign exchange forwards	—		2		—		2
Other liabilities:
Interest rate swaps	—		303		—		303
Cross currency swaps	—		196		—		196
Forward starting interest rate swaps	—		388		—		388
Total	$	—	$	1,298	$	—	$	1,298

(1)Quoted prices in active markets for identical assets or liabilities.

(2)Observable inputs other than quoted prices in active markets for identical assets and liabilities.

(3)Unobservable pricing inputs in the market.

Certain of our equity investments do not have readily determinable fair values and are excluded from the tables above. Such investments are measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer and are included in Investments in unconsolidated businesses in our condensed consolidated balance sheets. As of June 30, 2021 and December 31, 2020, the carrying amount of our investments without readily determinable fair values were $413 million and $402 million, respectively. During both the three and six months ended June 30, 2021, there were insignificant adjustments due to observable price changes. Cumulative adjustments due to observable price changes were $87 million.

Fixed income securities consist primarily of investments in municipal bonds. The valuation of the fixed income securities are based on the quoted prices for similar assets in active markets or identical assets in inactive markets or models that apply inputs from observable market data. The valuation determines that these securities are classified as Level 2.

Derivative contracts are valued using models based on readily observable market parameters for all substantial terms of our derivative contracts and thus are classified within Level 2. We use mid-market pricing for fair value measurements of our derivative instruments. Our derivative instruments are recorded on a gross basis.

We recognize transfers between levels of the fair value hierarchy as of the end of the reporting period.

Fair Value of Short-term and Long-term Debt

The fair value of our debt is determined using various methods, including quoted prices for identical debt instruments, which is a Level 1 measurement, as well as quoted prices for similar debt instruments with comparable terms and maturities, which is a Level 2 measurement.

The fair value of our short-term and long-term debt, excluding finance leases, was as follows:

			Fair Value
(dollars in millions)	Carrying Amount		Level 1		Level 2		Level 3		Total
At December 31, 2020	$	127,778	$	103,967	$	52,785	$	—	$	156,752
At June 30, 2021	150,641		112,613		61,703		—		174,316

Derivative Instruments

We enter into derivative transactions primarily to manage our exposure to fluctuations in foreign currency exchange rates and interest rates. We employ risk management strategies, which may include the use of a variety of derivatives including interest rate swaps, cross currency swaps, forward starting interest rate swaps, treasury rate locks, interest rate caps and foreign exchange forwards. We do not hold derivatives for trading purposes.

The following table sets forth the notional amounts of our outstanding derivative instruments:

	At June 30,		At December 31,
(dollars in millions)	2021		2020
Interest rate swaps	$	17,608	$	17,768
Cross currency swaps	32,502		26,288
Forward starting interest rate swaps	1,000		2,000
Foreign exchange forwards	1,490		1,405

Interest Rate Swaps

We enter into interest rate swaps to achieve a targeted mix of fixed and variable rate debt. We principally receive fixed rates and pay variable rates, resulting in a net increase or decrease to Interest expense. These swaps are designated as fair value hedges and hedge against interest rate risk exposure of designated debt issuances. We record the interest rate swaps at fair value in our condensed consolidated balance sheets as assets and liabilities. Changes in the fair value of the interest rate swaps are recorded to Interest expense, which are offset by changes in the fair value of the hedged debt due to changes in interest rates.

During the three months ended June 30, 2021, we entered into and settled interest rate swaps with a total notional value of $1.6 billion and $1.8 billion, respectively. During the six months ended June 30, 2021, we entered into and settled interest rate swaps with a total notional value of $2.6 billion and $2.7 billion, respectively. During the three months ended June 30, 2020, we did not enter into any interest rate swaps and we settled interest rate swaps with a total notional value of $929 million. During the six months ended June 30, 2020, we entered into and settled interest rate swaps with a total notional value of $2.4 billion.

The ineffective portion of these interest rate swaps were zero and an insignificant amount of gains for the three and six months ended June 30, 2021, respectively. The ineffective portion of these interest rate swaps were losses of an insignificant amount and gains of $56 million for the three and six months ended June 30, 2020, respectively.

The following amounts were recorded in Long-term debt in our condensed consolidated balance sheets related to cumulative basis adjustments for fair value hedges:

	At June 30,		At December 31,
(dollars in millions)	2021		2020
Carrying amount of hedged liabilities	$	18,021	$	18,849
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities	25		557
Cumulative amount of fair value hedging adjustment remaining for which hedge accounting has been discontinued	637		627

Cross Currency Swaps

We have entered into cross currency swaps designated as cash flow hedges to exchange our British Pound Sterling, Euro, Swiss Franc, Canadian Dollar and Australian Dollar-denominated cash flows into U.S. dollars and to fix our cash payments in U.S. dollars, as well as to mitigate the impact of foreign currency transaction gains or losses.

During the three months ended June 30, 2021, we did not enter into or settle any cross currency swaps. During the six months ended June 30, 2021, we entered into cross currency swaps with a total notional value of $6.2 billion and we did not settle any cross currency swaps. During the three and six months ended June 30, 2021, a pre-tax loss of $701 million and $927 million, respectively, was recognized in Other comprehensive income (loss). During both the three and six months ended June 30, 2020, we entered into cross currency swaps with a total notional value of $3.3 billion and we settled cross currency swaps with a total notional value of $1.6 billion. During the three and six months ended June 30, 2020, a pre-tax gain of $1.0 billion and a pre-tax loss of $1.9 billion, respectively, were recognized in Other comprehensive income (loss). A portion of the gains recognized in Other comprehensive income (loss) was reclassified to Other income (expense), net to offset the related pre-tax foreign currency transaction gain or loss on the underlying hedged item. See Note 10 for additional information.

Forward Starting Interest Rate Swaps

We have entered into forward starting interest rate swaps designated as cash flow hedges in order to manage our exposure to interest rate changes on future forecasted transactions. We hedge our exposure to the variability in future cash flows based on the expected maturities of the related forecasted debt issuance.

During both the three and six months ended June 30, 2021 and 2020, we did not enter into any new forward starting interest rate swaps. During both the three months ended June 30, 2021 and 2020, we did not settle any forward starting interest rate swaps. During both the six months ended June 30, 2021 and 2020, we settled forward starting interest rate swaps with a total notional value of $1.0 billion. During the six months ended June 30, 2021 and 2020, we paid $237 million and $293 million, respectively, for the settlement of forward starting interest rate swaps, which was recorded in Other, net within Cash Flow from Operating Activities. During the three and six months ended June 30, 2021, a pre-tax loss of $121 million and a pre-tax gain of $279 million, respectively, were recognized in Other comprehensive income (loss),

resulting from interest rate movements. During the three and six months ended June 30, 2020, an insignificant pre-tax gain and a pre-tax loss of $809 million, respectively, was recognized in Other comprehensive income (loss), resulting from interest rate movements.

Treasury Rate Locks

We enter into treasury rate locks to mitigate our future interest rate risk. During both the three months ended June 30, 2021 and 2020, we did not enter into or settle any treasury rate locks designated as cash flow hedges, and we did not recognize any amount in Other comprehensive income (loss). During the six months ended June 30, 2021, we entered into and settled treasury rate locks designated as cash flow hedges with a total notional value of $4.7 billion, and we recognized $251 million in Other comprehensive income (loss). During the six months ended June 30, 2021, we received $251 million from the settlement of treasury rate locks designated as cash flow hedges, which was recorded in Other, net within Cash Flow from Operating Activities. During the six months ended June 30, 2020, we entered into and settled treasury rate locks designated as cash flow hedges with a total notional value of $500 million, and we recognized an insignificant pre-tax loss in Other comprehensive income (loss).

Net Investment Hedges

We have designated certain foreign currency debt instruments as net investment hedges to mitigate foreign exchange exposure related to non-U.S. dollar net investments in certain foreign subsidiaries against changes in foreign exchange rates. In March 2021, we de-designated the existing net investment hedge and designated a new net investment hedge using a different Euro-denominated note. The notional amount of Euro-denominated debt designated as a net investment hedge was €750 million as of both June 30, 2021 and December 31, 2020.

Undesignated Derivatives

We also have the following derivative contracts which we use as economic hedges but for which we have elected not to apply hedge accounting.

Foreign Exchange Forwards

We enter into British Pound Sterling and Euro foreign exchange forwards to mitigate our foreign exchange rate risk related to non-functional currency denominated monetary assets and liabilities of international subsidiaries, as well as foreign exchange risk related to debt settlements. During the three months ended June 30, 2021, we entered into and settled foreign exchange forwards with a total notional value of $3.7 billion and $3.5 billion, respectively. During the six months ended June 30, 2021, we entered into and settled foreign exchange forwards with a total notional value of $7.2 billion and $7.1 billion, respectively. During the three months ended June 30, 2020, we entered into and settled foreign exchange forwards with a total notional value of $4.3 billion and $4.2 billion, respectively. During the six months ended June 30, 2020, we entered into and settled foreign exchange forwards with a total notional value of $6.9 billion and $7.1 billion, respectively. During the three and six months ended June 30, 2021, insignificant pre-tax gains and insignificant pre-tax losses, respectively, were recognized in Other income (expense), net. During the three and six months ended June 30, 2020, pre-tax gains of $81 million and an insignificant amount, respectively, were recognized in Other income (expense), net.

Treasury Rate Locks

We enter into treasury rate locks to mitigate our future interest rate risk. During both the three and six months ended June 30, 2021, we did not enter into or settle any treasury rate locks that were not designated in hedging relationships, and we did not recognize any amount in our condensed consolidated financial statement. During the three months ended June 30, 2020, we did not enter into or settle any treasury rate locks, and we did not recognize any amount in our condensed consolidated financial statements. During the six months ended June 30, 2020, we entered into and settled treasury rate locks with a total notional value of $1.6 billion, and we recognized an insignificant pre-tax gain in Interest expense.

Concentrations of Credit Risk

Financial instruments that subject us to concentrations of credit risk consist primarily of temporary cash investments, short-term and long-term investments, trade receivables, including device payment plan agreement receivables, certain notes receivable, including lease receivables, and derivative contracts.

Counterparties to our derivative contracts are major financial institutions with whom we have negotiated derivatives agreements (ISDA master agreements) and credit support annex (CSA) agreements which provide rules for collateral exchange. The CSA agreements contain rating based thresholds such that we or our counterparties may be required to hold or post collateral based upon changes in outstanding positions as compared to established thresholds and changes in credit ratings. We do not offset fair value amounts recognized for derivative instruments and fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments recognized at fair value. At June 30, 2021, we held $0.1 billion and posted an insignificant amount of collateral related to derivative contracts under collateral exchange agreements, which were recorded as Other current liabilities and Prepaid expenses and other, respectively, in our condensed consolidated balance sheet. At December 31, 2020, we held $0.2 billion of collateral related to derivative contracts under collateral exchange arrangements, which were recorded as Other current liabilities in our condensed consolidated balance sheet. While we may be exposed to credit losses due to the nonperformance of our counterparties, we consider the risk remote and do not expect that any such nonperformance would result in a significant effect on our results of operations or financial condition due to our diversified pool of counterparties.

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Employee Benefits

6 Months Ended

Jun. 30, 2021

Retirement Benefits [Abstract]

Employee Benefits

Note 9. 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 to reflect actual return on plan assets and updated actuarial assumptions or upon a remeasurement event. The adjustment is recognized in the income statement during the fourth quarter or upon a remeasurement event pursuant to our accounting policy for the recognition of actuarial gains and losses.

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)
	Pension				Health Care and Life
Three Months Ended June 30,	2021		2020		2021		2020
Service cost - Cost of services	$	62	$	59	$	23	$	23
Service cost - Selling, general and administrative expense	9		14		5		5
Service cost	$	71	$	73	$	28	$	28
Amortization of prior service cost (credit)	$	15	$	15	$	(224)	$	(242)
Expected return on plan assets	(309)		(296)		(5)		(6)
Interest cost	99		137		73		107
Remeasurement loss (gain), net	(1,314)		153		—		—
Other components	$	(1,509)	$	9	$	(156)	$	(141)
Total	$	(1,438)	$	82	$	(128)	$	(113)

	(dollars in millions)
	Pension				Health Care and Life
Six Months Ended June 30,	2021		2020		2021		2020
Service cost - Cost of services	$	127	$	118	$	47	$	45
Service cost - Selling, general and administrative expense	18		28		10		10
Service cost	$	145	$	146	$	57	$	55
Amortization of prior service cost (credit)	$	30	$	30	$	(447)	$	(483)
Expected return on plan assets	(618)		(593)		(11)		(13)
Interest cost	194		277		145		214
Remeasurement loss (gain), net	(1,314)		335		—		—
Other components	$	(1,708)	$	49	$	(313)	$	(282)
Total	$	(1,563)	$	195	$	(256)	$	(227)

The service cost component of net periodic benefit cost (income) is recorded in Cost of services and Selling, general and administrative expense in the condensed consolidated statements of income while the other components, including remeasurement adjustments, if any, are recorded in Other income (expense), net.

Severance Payments

During the three and six months ended June 30, 2021, we paid severance benefits of an insignificant amount and $129 million, respectively. During the six months ended June 30, 2021, we recorded pre-tax severance charges of an insignificant amount. At June 30, 2021, we had a remaining severance liability of $490 million, a portion of which includes future contractual payments to separated employees.

Employer Contributions

During both the three and six months ended June 30, 2021 and June 30, 2020, we made no contributions to our qualified pension plans and made insignificant contributions to our nonqualified pension plans. We do not expect mandatory pension funding through December 31, 2021. There have been no significant changes with respect to the nonqualified pension and other postretirement benefit plans contributions in 2021.

Remeasurement loss (gain), net

During both the three and six months ended June 30, 2021, we recorded a pre-tax remeasurement gain of $1.3 billion in our pension plans triggered by settlements, primarily driven by a $1.2 billion credit mainly due to changes in our discount rate and changes in our lump sum interest rate assumptions used to determine the current year liabilities of our pension plans and a $122 million credit resulting from the difference between our estimated and our actual return on assets.

During the three months ended June 30, 2020, we recorded a net pre-tax remeasurement loss of $153 million primarily driven by a $163 million charge mainly resulting from the difference between our estimated and our actual return on assets and changes in our lump sum interest rate assumptions used to determine the current year liabilities of our pension plans, offset by a credit due to changes in our discount rate.

During the three months ended March 31, 2020, we recorded a net pre-tax remeasurement loss of $182 million primarily driven by a $196 million charge mainly due to changes in our discount rate and lump sum interest rate assumptions used to determine the current year liabilities of our pension plans, offset by a credit resulting from the difference between our estimated and our actual return on assets.

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Equity and Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2021

Stockholders' Equity Note [Abstract]

Equity and Accumulated Other Comprehensive Income (Loss)

Note 10. Equity and Accumulated Other Comprehensive Income (Loss)

Equity

Changes in the components of Total equity were as follows:

(dollars in millions, except per share amounts, and shares in thousands)
Three months ended June 30,	2021			2020
	Shares	Amount		Shares	Amount
Common Stock
Balance at beginning of period	4,291,434	$	429	4,291,434	$	429
Balance at end of period	4,291,434	429		4,291,434	429
Additional Paid In Capital
Balance at beginning of period		13,408			13,302
Other		(5)			(21)
Balance at end of period		13,403			13,281
Retained Earnings
Balance at beginning of period		63,107			54,557
Net income attributable to Verizon		5,800			4,700
Dividends declared ($0.6275, $0.6150 per share)		(2,597)			(2,544)
Other		—			33
Balance at end of period		66,310			56,746
Accumulated Other Comprehensive Income (Loss)
Balance at beginning of period attributable to Verizon		640			(1,502)
Foreign currency translation adjustments		58			77
Unrealized gain (loss) on cash flow hedges		(777)			314
Unrealized gain (loss) on marketable securities		—			6
Defined benefit pension and postretirement plans		(155)			(169)
Other comprehensive income (loss)		(874)			228
Balance at end of period attributable to Verizon		(234)			(1,274)
Treasury Stock
Balance at beginning of period	(151,366)	(6,634)		(153,438)	(6,725)
Employee plans	48	2		58	3
Balance at end of period	(151,318)	(6,632)		(153,380)	(6,722)
Deferred Compensation-ESOPs and Other
Balance at beginning of period		282			149
Restricted stock equity grant		131			157
Amortization		(5)			(69)
Balance at end of period		408			237
Noncontrolling Interests
Balance at beginning of period		1,451			1,443
Total comprehensive income		149			139
Distributions and other		(172)			(166)
Balance at end of period		1,428			1,416
Total Equity		$	75,112		$	64,113

(dollars in millions, except per share amounts, and shares in thousands)
Six months ended June 30,	2021			2020
	Shares	Amount		Shares	Amount
Common Stock
Balance at beginning of year	4,291,434	$	429	4,291,434	$	429
Balance at end of period	4,291,434	429		4,291,434	429
Additional Paid In Capital
Balance at beginning of year		13,404			13,419
Other		(1)			(138)
Balance at end of period		13,403			13,281
Retained Earnings
Balance at beginning of year		60,464			53,147
Opening balance sheet adjustment		—			(200)		(1)
Adjusted opening balance		60,464			52,947
Net income attributable to Verizon		11,045			8,856
Dividends declared ($1.2550, $1.2300 per share)		(5,199)			(5,090)
Other		—			33
Balance at end of period		66,310			56,746
Accumulated Other Comprehensive Income (Loss)
Balance at beginning of year attributable to Verizon		(71)			998
Foreign currency translation adjustments		20			(43)
Unrealized gain (loss) on cash flow hedges		132			(1,896)
Unrealized gain (loss) on marketable securities		(5)			5
Defined benefit pension and postretirement plans		(310)			(338)
Other comprehensive loss		(163)			(2,272)
Balance at end of period attributable to Verizon		(234)			(1,274)
Treasury Stock
Balance at beginning of year	(153,304)	(6,719)		(155,606)	(6,820)
Employee plans	1,983	87		2,222	98
Shareholder plans	3	—		4	—
Balance at end of period	(151,318)	(6,632)		(153,380)	(6,722)
Deferred Compensation-ESOPs and Other
Balance at beginning of year		335			222
Restricted stock equity grant		230			172
Amortization		(157)			(157)
Balance at end of period		408			237
Noncontrolling Interests
Balance at beginning of year		1,430			1,440
Total comprehensive income		282			270
Distributions and other		(284)			(294)
Balance at end of period		1,428			1,416
Total Equity		$	75,112		$	64,113

(1) Opening balance sheet adjustment for the six months ended June 30, 2020 is due to the adoption of Topic 326, ASU 2016-13, Financial Instruments-Credit Losses and other ASUs on January 1, 2020. Refer to the consolidated financial statements included in Verizon's Annual Report on Form 10-K for the year ended December 31, 2020 for additional information.

Common Stock

Verizon did not repurchase any shares of Verizon common stock through its previously authorized share buyback program during the six months ended June 30, 2021. At June 30, 2021, the maximum number of shares that could be purchased by or on behalf of Verizon under our share buyback program was 100 million.

Common stock has been used from time to time to satisfy some of the funding requirements of employee and shareowner plans, including 2.0 million common shares issued from Treasury stock during the six months ended June 30, 2021.

Accumulated Other Comprehensive Income (Loss)

The changes in the balances of Accumulated other comprehensive income (loss) by component were as follows:

(dollars in millions)	Foreign  currency translation adjustments		Unrealized gain (loss) on cash flow hedges		Unrealized gain (loss) on marketable securities		Defined benefit pension and postretirement plans		Total
Balance at January 1, 2021	$	(404)	$	(1,387)	$	25	$	1,695	$	(71)
Other comprehensive income (loss)	20		(294)		(5)		—		(279)
Amounts reclassified to net income	—		426		—		(310)		116
Net other comprehensive income (loss)	20		132		(5)		(310)		(163)
Balance at June 30, 2021	$	(384)	$	(1,255)	$	20	$	1,385	$	(234)

The amounts presented above in net other comprehensive income (loss) are net of taxes. The amounts reclassified to net income related to unrealized loss on cash flow hedges in the table above are included in Other income (expense), net and Interest expense in our condensed consolidated statements of income. See Note 8 for additional information. The amounts reclassified to net income related to defined benefit pension and postretirement plans in the table above are included in Other income (expense), net in our condensed consolidated statements of income. See Note 9 for additional information.

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Segment Information

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Information

Note 11. 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 brand and through wholesale and other arrangements. 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 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 IoT services and products. We provide these products and services to businesses, government customers and wireless and wireline carriers across the U.S. and select 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: Small and Medium Business, Global Enterprise, Public Sector and Other, and Wholesale.

Corporate and other includes the results of our media business, Verizon Media, and other businesses, investments in unconsolidated businesses, 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 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 as these items are included in the chief operating decision maker’s assessment of segment performance.

The reconciliation of segment operating revenues and expenses to consolidated operating revenues and expenses 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.

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)	2021		2020		2021		2020
External Operating Revenues
Consumer
Service	$	16,704	$	15,898	$	33,270	$	32,241
Wireless equipment	4,739		3,209		8,931		6,586
Other	1,973		1,946		3,955		3,932
Total Consumer	23,416		21,053		46,156		42,759
Business
Small and Medium Business	2,890		2,597		5,715		5,395
Global Enterprise	2,582		2,587		5,139		5,217
Public Sector and Other	1,614		1,523		3,259		2,997
Wholesale	658		756		1,393		1,516
Total Business	7,744		7,463		15,506		15,125
Total reportable segments	$	31,160	$	28,516	$	61,662	$	57,884
Intersegment Revenues
Consumer	$	61	$	60	$	119	$	119
Business	18		19		37		38
Total reportable segments	$	79	$	79	$	156	$	157
Total Operating Revenues
Consumer	$	23,477	$	21,113	$	46,275	$	42,878
Business(1)	7,762		7,482		15,543		15,163
Total reportable segments	$	31,239	$	28,595	$	61,818	$	58,041
Operating Income
Consumer	$	7,497	$	7,064	$	15,016	$	14,346
Business	856		946		1,755		1,900
Total reportable segments	$	8,353	$	8,010	$	16,771	$	16,246

(1) Service and other revenues included in our Business segment amounted to approximately $7.0 billion for both the three months ended June 30, 2021 and 2020, respectively. Service and other revenues included in our Business segment amounted to approximately $14.0 billion and $13.9 billion for the six months ended June 30, 2021 and 2020, respectively. Wireless equipment revenues included in our Business segment amounted to approximately $804 million and $546 million for the three months ended June 30, 2021 and 2020, respectively. Wireless equipment revenues included in our Business segment amounted to approximately $1.6 billion and $1.3 billion for the six months ended June 30, 2021 and 2020, respectively.

The following table provides Fios revenue for our two reportable segments:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(dollars in millions)	2021		2020		2021		2020
Consumer	$	2,895	$	2,754	$	5,755	$	5,553
Business	281		260		557		522
Total Fios revenue	$	3,176	$	3,014	$	6,312	$	6,075

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)	2021		2020		2021		2020
Consumer	$	13,794	$	13,087	$	27,478	$	26,563
Business	3,090		2,861		6,150		5,742
Total Wireless service revenue	$	16,884	$	15,948	$	33,628	$	32,305

Reconciliation to Consolidated Financial Information

A reconciliation of the reportable segment operating revenues to consolidated operating revenues is as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(dollars in millions)	2021		2020		2021		2020
Total reportable segment operating revenues	$	31,239	$	28,595	$	61,818	$	58,041
Corporate and other	2,662		1,967		5,084		4,239
Eliminations	(137)		(115)		(271)		(223)
Total consolidated operating revenues	$	33,764	$	30,447	$	66,631	$	62,057

A reconciliation of the total reportable segment's 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)	2021		2020		2021		2020
Total reportable segment operating income	$	8,353	$	8,010	$	16,771	$	16,246
Corporate and other	4		(445)		(229)		(704)
Other components of net periodic benefit charges (Note 9)	(192)		(204)		(384)		(407)
Loss on spectrum licenses (Note 3)	—		—		(223)		(1,195)
Total consolidated operating income	8,165		7,361		15,935		13,940
Equity in earnings (losses) of unconsolidated businesses	1		(13)		9		(25)
Other income (expense), net	502		(72)		903		71
Interest expense	(844)		(1,089)		(1,945)		(2,123)
Income Before Provision For Income Taxes	$	7,824	$	6,187	$	14,902	$	11,863

No single customer accounted for more than 10% of our total operating revenues during the three and six months ended June 30, 2021 or 2020.

The chief operating decision maker does not review disaggregated assets on a segment basis; therefore, such information is not presented. Depreciation included in the measure of segment profitability is primarily allocated based on proportional usage.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 12. Commitments and Contingencies

In the ordinary course of business, Verizon is involved in various commercial litigation and regulatory proceedings at the state and federal level. Where it is determined, in consultation with counsel based on litigation and settlement risks, that a loss is probable and estimable in a given matter, the Company establishes an accrual. In none of the currently pending matters is the amount of accrual material. An estimate of the reasonably possible loss or range of loss in excess of the amounts already accrued cannot be made at this time due to various factors typical in contested proceedings, including: (1) uncertain damage theories and demands; (2) a less than complete factual record; (3) uncertainty concerning legal theories and their resolution by courts or regulators; and (4) the unpredictable nature of the opposing party and its demands. We continuously monitor these proceedings as they develop and adjust any accrual or disclosure as needed. We do not expect that the ultimate resolution of any pending regulatory or legal matter in future periods will have a material effect on our financial condition, but it could have a material effect on our results of operations for a given reporting period.

Verizon is currently involved in approximately 20 federal district court actions alleging that Verizon is infringing various patents. Most of these cases are brought by non-practicing entities and effectively seek only monetary damages; a small number are brought by companies that have sold products and could seek injunctive relief as well. These cases have progressed to various stages and a small number may go to trial in the coming 12 months if they are not otherwise resolved.

In connection with the execution of agreements for the sales of businesses and investments, Verizon ordinarily provides representations and warranties to the purchasers pertaining to a variety of nonfinancial matters, such as ownership of the securities being sold, as well as indemnity from certain financial losses. From time to time, counterparties may make claims under these provisions, and Verizon will seek to defend against those claims and resolve them in the ordinary course of business.

Subsequent to the sale of Verizon Information Services Canada in 2004, we continue to provide a guarantee to publish directories, which was issued when the directory business was purchased in 2001 and had a 30-year term (before extensions). The preexisting guarantee continues, without modification, despite the subsequent sale of Verizon Information Services Canada and the spin-off of our domestic print and internet yellow pages directories business. The possible financial impact of the guarantee, which is not expected to be adverse, cannot be reasonably estimated as a variety of the potential outcomes available under the guarantee result in costs and revenues or benefits that may offset each other. We do not believe performance under the guarantee is likely.

During the six months ended June 30, 2021, Verizon entered into one renewable energy purchase agreement (REPA) with a third party. The REPA is based on the expected operation of a renewable energy-generating facility and has a fixed price term of 15 years from the commencement of the facility's entry into commercial operation, which is expected to occur in 2022. The REPA generally is expected to be financially settled based on the prevailing market price as energy is generated by the facility.

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Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) in the United States (U.S.) and based upon Securities and Exchange Commission rules that permit reduced disclosure for interim periods. For a more complete discussion of significant accounting policies and certain other information, you should refer to the financial statements included in Verizon Communications Inc.'s (Verizon or the Company) Annual Report on Form 10-K for the year ended December 31, 2020. These financial statements reflect all adjustments that are necessary for a fair presentation of results of operations and financial condition for the interim periods shown, including normal recurring accruals and other items. The results for the interim periods are not necessarily indicative of results for the full year.

Reclassifications

Certain amounts have been reclassified to conform to the current period’s presentation.

Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash

We consider all highly liquid investments with an original maturity of 90 days or less when purchased to be cash equivalents. Cash equivalents are stated at cost, which approximates quoted market value and includes amounts held in money market funds.

Cash collections on the device payment plan agreement receivables 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.

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Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Cash and Cash Equivalents

Cash, cash equivalents and restricted cash are included in the following line items in the condensed consolidated balance sheets:

	At June 30,		At December 31,		Increase / (Decrease)
(dollars in millions)	2021		2020
Cash and cash equivalents	$	4,657	$	22,171	$	(17,514)
Restricted cash:
Prepaid expenses and other	1,189		1,195		(6)
Other assets	94		132		(38)
Assets held for sale:
Prepaid expenses and other	145		—		145
Cash, cash equivalents and restricted cash	$	6,085	$	23,498	$	(17,413)

Schedule of Restricted Cash

Cash, cash equivalents and restricted cash are included in the following line items in the condensed consolidated balance sheets:

	At June 30,		At December 31,		Increase / (Decrease)
(dollars in millions)	2021		2020
Cash and cash equivalents	$	4,657	$	22,171	$	(17,514)
Restricted cash:
Prepaid expenses and other	1,189		1,195		(6)
Other assets	94		132		(38)
Assets held for sale:
Prepaid expenses and other	145		—		145
Cash, cash equivalents and restricted cash	$	6,085	$	23,498	$	(17,413)

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Revenues and Contract Costs (Tables)

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Schedule of Receivables from Contracts with Customers

The following table presents information about receivables from contracts with customers:

	At June 30,		At January 1,		At June 30,		At January 1,
(dollars in millions)	2021		2021		2020		2020
Receivables(1)	$	9,387	$	12,029	$	10,967	$	12,078
Device payment plan agreement receivables(2)	10,836		10,358		10,047		11,741

(1)Balances do not include receivables related to the following contracts: leasing arrangements (such as those for towers and equipment), captive reinsurance arrangements primarily related to wireless device insurance and the interest on equipment financed under a device payment plan agreement when sold to the customer by an authorized agent.

(2)Included in device payment plan agreement receivables presented in Note 7. Balances do not include receivables derived from the sale of equipment on a device payment plan through an authorized agent.

Contract with Customer, Asset and Liability

The following table presents information about contract balances:

	At June 30,		At January 1,		At June 30,		At January 1,
(dollars in millions)	2021		2021		2020		2020
Contract asset	$	972	$	937	$	993	$	1,150
Contract liability (1)	5,846		5,598		5,275		5,307

(1) Revenue recognized related to contract liabilities existing at January 1, 2021 were $199 million and $4.1 billion for the three and six months ended June 30, 2021, respectively. Revenue recognized related to contract liabilities existing at January 1, 2020 were $204 million and $4.0 billion, for the three and six months ended June 30, 2020, respectively.

The balance of contract assets and contract liabilities recorded in our condensed consolidated balance sheets were as follows:

	At June 30,		At December 31,
(dollars in millions)	2021		2020
Assets
Prepaid expenses and other	$	772	$	733
Other assets	200		204
Total	$	972	$	937
Liabilities
Other current liabilities	$	4,985	$	4,843
Other liabilities	861		755
Total	$	5,846	$	5,598

Capitalized Contract Cost

The balances of deferred contract costs included in our condensed consolidated balance sheets were as follows:

	At June 30,		At December 31,
(dollars in millions)	2021		2020
Assets
Prepaid expenses and other	$	2,401	$	2,472
Other assets	2,113		2,070
Total	$	4,514	$	4,542

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Acquisitions and Divestitures (Tables)

6 Months Ended

Jun. 30, 2021

Business Combinations [Abstract]

Disposal Groups, Including Discontinued Operations

The following table summarizes the major classes of assets and liabilities of Verizon Media which are currently included in Verizon's continuing operations and classified as held for sale in our condensed consolidated balance sheet as of June 30, 2021:

	At June 30,
(dollars in millions)	2021
Assets held for sale:
Prepaid expenses and other
Cash and cash equivalents	$	100
Restricted cash	45
Accounts receivable	1,843
Other	127
	$	2,115
Other assets
Property, plant and equipment, net	$	1,140
Other intangible assets, net	2,469
Other	227
	$	3,836
Liabilities held for sale:
Other current liabilities
Accounts payable and accrued liabilities	$	1,665
Other	280
	$	1,945
Other liabilities	$	390

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Wireless Licenses, Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Carrying Amount of Wireless Licenses

The carrying amounts of our Wireless licenses, as well as wireless spectrum for which licenses have not yet been received, are as follows:

	At June 30,		At December 31,
(dollars in millions)	2021		2020
Wireless licenses	$	98,034	$	96,097
Deposits for wireless licenses	45,910		2,772

Changes in Carrying Amount of Goodwill

Changes in the carrying amount of Goodwill are as follows:

(dollars in millions)	Consumer		Business		Other		Total
Balance at January 1, 2021 (1)	$	17,222	$	7,535	$	16	$	24,773
Acquisitions (2)	91		—		37		128
Reclassifications, adjustments and other	3		11		—		14
Balance at June 30, 2021 (1)	$	17,316	$	7,546	$	53	$	24,915

(1) Goodwill is net of accumulated impairment charges of $4.8 billion, related to our Media reporting unit.

(2) The change in goodwill due to acquisitions is related to Bluegrass and other insignificant transactions. See Note 3 for additional information.

Composition of Other Intangible Assets, Net

The following table displays the composition of Other intangible assets, net as well as the respective amortization period:

	At June 30, 2021						At December 31, 2020
(dollars in millions)	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
Customer lists (8 to 13 years)	$	1,951	$	(996)	$	955	$	4,021	$	(1,961)	$	2,060
Non-network internal-use software (5 to 7 years)	20,080		(14,182)		5,898		21,685		(15,104)		6,581
Other (4 to 25 years)	901		(752)		149		1,771		(999)		772
Total	$	22,932	$	(15,930)	$	7,002	$	27,477	$	(18,064)	$	9,413

Amortization Expense for Other Intangible Assets

The amortization expense for Other intangible assets was as follows: 

	Three Months Ended		Six Months Ended
(dollars in millions)	June 30,		June 30,
2021	$	480	$	1,109
2020	605		1,197

Estimated Future Amortization Expense for Other Intangible Assets

The estimated future amortization expense for Other intangible assets for the remainder of the current year and next 5 years is as follows:

Years	(dollars in millions)
Remainder of 2021	$	786
2022	1,565
2023	1,350
2024	1,114
2025	911
2026	538

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Leasing Arrangements (Tables)

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Components of Net Lease Cost, and Supplemental Disclosure for Statement of Cash Flows related to Operating and Finance Leases

The components of net lease cost were as follows:

		Three Months Ended				Six Months Ended
		June 30,				June 30,
(dollars in millions)	Classification	2021		2020		2021		2020
Operating lease cost (1)	Cost of services Selling, general and administrative expense	$	1,341	$	1,254	$	2,585	$	2,475
Finance lease cost:
Amortization of right-of-use assets	Depreciation and amortization expense	66		40		133		291
Interest on lease liabilities	Interest expense	9		10		17		20
Short-term lease cost (1)	Cost of services Selling, general and administrative expense	4		5		9		12
Variable lease cost (1)	Cost of services Selling, general and administrative expense	78		76		159		163
Sublease income	Service revenues and other	(49)		(74)		(97)		(144)
Total net lease cost		$	1,449	$	1,311	$	2,806	$	2,817

(1) All operating lease costs, including short-term and variable lease costs, are split between Cost of services and Selling, general and administrative expense in the condensed consolidated statements of income based on the use of the facility or equipment that the rent is being paid on. Refer to the consolidated financial statements included in Verizon's Annual Report on Form 10-K for the year ended December 31, 2020 for additional information. Variable lease costs represent payments that are dependent on a rate or index, or on usage of the asset.

Lessee, Operating Lease, Liability, Maturity

The Company's maturity analysis of operating and finance lease liabilities as of June 30, 2021 were as follows:

			(dollars in millions)
Years	Operating Leases		Finance Leases
Remainder of 2021	$	2,186	$	204
2022	4,148		376
2023	3,924		310
2024	3,663		241
2025	3,292		120
Thereafter	14,516		97
Total lease payments	31,729		1,348
Less interest	4,488		73
Present value of lease liabilities	27,241		1,275
Less current obligation	3,881		377
Long-term obligation at June 30, 2021	$	23,360	$	898

Finance Lease, Liability, Maturity

The Company's maturity analysis of operating and finance lease liabilities as of June 30, 2021 were as follows:

			(dollars in millions)
Years	Operating Leases		Finance Leases
Remainder of 2021	$	2,186	$	204
2022	4,148		376
2023	3,924		310
2024	3,663		241
2025	3,292		120
Thereafter	14,516		97
Total lease payments	31,729		1,348
Less interest	4,488		73
Present value of lease liabilities	27,241		1,275
Less current obligation	3,881		377
Long-term obligation at June 30, 2021	$	23,360	$	898

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Debt (Tables)

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Schedule of Debt Transactions

The following tables show the significant transactions involving the senior unsecured debt securities of Verizon and its subsidiaries that occurred during the six months ended June 30, 2021.

Repayments, Redemptions and Repurchases

(dollars in millions)	Principal Repaid/ Redeemed/ Repurchased		Amount Paid (1)
Three Months Ended June 30, 2021
Verizon 2.946% notes due 2022	$	713	$	730
Verizon 2.450% notes due 2022	794		819
Verizon 5.150% notes due 2023	3,190		3,519
Open market repurchases of various Verizon and subsidiary notes	1,994		2,440
Three Months Ended June 30, 2021 total	6,691		7,508
Six Months Ended June 30, 2021 total	$	6,691	$	7,508

(1) Represents amount paid to repay, redeem, or repurchase, excluding interest or dividend.

Issuances

(amounts in millions)	Principal Amount Issued		Net Proceeds (1)
Three Months Ended March 31, 2021
Verizon 0.750% notes due 2024	$	1,750	$	1,746
Verizon floating rate (Compounded SOFR(2) + 0.500%) notes due 2024	750		748
Verizon 1.450% notes due 2026	2,750		2,737
Verizon floating rate (Compounded SOFR(2) + 0.790%) notes due 2026	750		748
Verizon 2.100% notes due 2028	3,000		2,988
Verizon 2.550% notes due 2031	4,250		4,216
Verizon 3.400% notes due 2041	3,750		3,726
Verizon 3.550% notes due 2051	4,500		4,426
Verizon 3.700% notes due 2061	3,500		3,439
Verizon 0.375% notes due 2029 (3)	€	1,000	1,186
Verizon 0.750% notes due 2032 (3)	€	1,000	1,181
Verizon 1.125% notes due 2035 (3)	€	750	878
Verizon 2.375% notes due 2028 (3)	C$	1,000	800
Verizon 4.050% notes due 2051 (3)	C$	500	399
Verizon 2.350% notes due 2028 (3)	A$	600	463
Verizon 3.000% notes due 2031 (3)	A$	500	385
Verizon 3.850% notes due 2041 (3)	A$	150	116
Verizon 0.193% bonds due 2028 (3)	CHF	375	403
Verizon 0.555% bonds due 2031 (3)	CHF	325	349
Three Months Ended March 31, 2021 total			30,934
Six Months Ended June 30, 2021 total			$	30,934

(1) Net proceeds were net of underwriting discounts and other issuance costs. In addition, for securities denominated in a currency other than the U.S. dollar, net proceeds are shown on a U.S. dollar equivalent basis.

(2) Compounded Secured Overnight Financing Rate (SOFR) is calculated using the SOFR Index published by the Federal Reserve Bank of New York in accordance with the terms of the notes. The Compounded SOFR for the initial interest period ending in June 2021 was 0.010%.

(3) See Note 8 for information on derivative transactions related to the issuances.

ABS Notes

During the six months ended June 30, 2021, we completed the following ABS Notes transactions:

(dollars in millions)	Interest Rates %	Expected Weighted-average Life to Maturity (in years)	Principal Amount Issued
May 2021
A Senior class notes	0.500	2.99	$	1,500
B Junior class notes	0.690	2.99	119
C Junior class notes	0.890	2.99	81
Total			$	1,700

Schedule of Assets and Liabilities Related to Asset-backed Debt Arrangements

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)	2021		2020
Assets
Account receivable, net	$	8,877	$	9,257
Prepaid expenses and other	1,189		1,128
Other assets	3,248		2,950
Liabilities
Accounts payable and accrued liabilities	9		8
Debt maturing within one year	4,344		4,191
Long-term debt	5,971		6,413

Schedule of Line of Credit Facilities

				At June 30, 2021
(dollars in millions)	Maturities	Facility Capacity		Unused Capacity		Principal Amount Outstanding
Verizon revolving credit facility (1)	2024	$	9,500	$	9,392	N/A
Various export credit facilities (2)	2022 - 2029	7,500		530		$	5,029
Total		$	17,000	$	9,922	$	5,029

N/A - not applicable

(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.

(2) During the six months ended June 30, 2021, we drew down $470 million from these facilities. These credit facilities are used to finance equipment-related purchases. Borrowings under certain of these facilities amortize 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.

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Device Payment Plan and Wireless Service Receivables (Tables)

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Schedule of Receivables, Net

The following table presents information about accounts receivable, net of allowances, recorded in our condensed consolidated balance sheet:

	At June 30, 2021
(dollars in millions)	Device payment plan agreement		Wireless service		Other receivables(1)		Total
Accounts receivable	$	12,157	$	5,006	$	5,074	$	22,237
Less Allowance for credit losses	575		145		260		980
Accounts receivable, net of allowance	$	11,582	$	4,861	$	4,814	$	21,257

(1) Other receivables primarily include wireline receivables and other receivables, the allowances for which are individually insignificant.

The following table displays device payment plan agreement receivables, net, recognized in our condensed consolidated balance sheets:

	At June 30,		At December 31,
(dollars in millions)	2021		2020
Device payment plan agreement receivables, gross	$	18,537	$	17,959
Unamortized imputed interest	(397)		(453)
Device payment plan agreement receivables, at amortized cost	18,140		17,506
Allowance (1)	(833)		(940)
Device payment plan agreement receivables, net	$	17,307	$	16,566
Classified in our condensed consolidated balance sheets:
Accounts receivable, net	$	11,582	$	11,601
Other assets	5,725		4,965
Device payment plan agreement receivables, net	$	17,307	$	16,566

(1) Includes allowance for both short-term and long-term device payment plan agreement receivables.

Financing Receivable Credit Quality Indicators

The following table presents device payment plan agreement receivables, at amortized cost, as of June 30, 2021, by credit quality indicator and year of origination:

	Year of Origination
(dollars in millions)	2021		2020		Prior to 2020(1)		Total
New customers	$	1,335	$	1,183	$	218	$	2,736
Existing customers	7,074		7,072		1,258		15,404
Total	$	8,409	$	8,255	$	1,476	$	18,140

(1) Includes accounts that have been suspended at a point in time.

Activity in Allowance for Credit Losses for Device Payment Plan Agreement Receivables

Activity in the allowance for credit losses by portfolio segment of receivables were as follows:

(dollars in millions)	Device Payment Plan Agreement Receivables(1)		Wireless Service Plan Receivables
Balance at January 1, 2021	$	940	$	262
Current period provision for expected credit losses	235		87
Write-offs charged against the allowance	(365)		(238)
Recoveries collected	23		34
Balance at June 30, 2021	$	833	$	145

(1) Includes allowance for both short-term and long-term device payment plan agreement receivables.

Balance and Aging of Device Payment Plan Agreement Receivables on Gross Basis

The balance and aging of the device payment plan agreement receivables, at amortized cost, were as follows:

	At June 30,
(dollars in millions)	2021
Unbilled	$	17,040
Billed:
Current	948
Past due	152
Device payment plan agreement receivables, at amortized cost	$	18,140

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2021:

(dollars in millions)	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Prepaid expenses and other:
Interest rate swaps	$	—	$	184	$	—	$	184
Cross currency swaps	—		12		—		12
Other assets:
Fixed income securities	—		464		—		464
Interest rate swaps	—		330		—		330
Cross currency swaps	—		1,068		—		1,068
Total	$	—	$	2,058	$	—	$	2,058
Liabilities:
Other current liabilities:
Foreign exchange forwards	$	—	$	13	$	—	$	13
Cross currency swaps	—		295		—		295
Forward starting interest rate swaps	—		281		—		281
Other liabilities:
Interest rate swaps	—		572		—		572
Cross currency swaps	—		462		—		462
Total	$	—	$	1,623	$	—	$	1,623

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2020:

(dollars in millions)	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Prepaid expenses and other:
Foreign exchange forwards	$	—	$	12	$	—	$	12
Other assets:
Fixed income securities	—		459		—		459
Interest rate swaps	—		787		—		787
Cross currency swaps	—		1,446		—		1,446
Total	$	—	$	2,704	$	—	$	2,704
Liabilities:
Other current liabilities:
Forward starting interest rate swaps	$	—	$	409	$	—	$	409
Foreign exchange forwards	—		2		—		2
Other liabilities:
Interest rate swaps	—		303		—		303
Cross currency swaps	—		196		—		196
Forward starting interest rate swaps	—		388		—		388
Total	$	—	$	1,298	$	—	$	1,298

(1)Quoted prices in active markets for identical assets or liabilities.

(2)Observable inputs other than quoted prices in active markets for identical assets and liabilities.

(3)Unobservable pricing inputs in the market.

Schedule of Fair Value of Short-Term and Long-Term Debt, Excluding Capital Leases

The fair value of our short-term and long-term debt, excluding finance leases, was as follows:

			Fair Value
(dollars in millions)	Carrying Amount		Level 1		Level 2		Level 3		Total
At December 31, 2020	$	127,778	$	103,967	$	52,785	$	—	$	156,752
At June 30, 2021	150,641		112,613		61,703		—		174,316

Notional Amounts of Outstanding Derivative Instruments

The following table sets forth the notional amounts of our outstanding derivative instruments:

	At June 30,		At December 31,
(dollars in millions)	2021		2020
Interest rate swaps	$	17,608	$	17,768
Cross currency swaps	32,502		26,288
Forward starting interest rate swaps	1,000		2,000
Foreign exchange forwards	1,490		1,405

Schedule of Cumulative Basis Adjustments for Fair Value hedges

The following amounts were recorded in Long-term debt in our condensed consolidated balance sheets related to cumulative basis adjustments for fair value hedges:

	At June 30,		At December 31,
(dollars in millions)	2021		2020
Carrying amount of hedged liabilities	$	18,021	$	18,849
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities	25		557
Cumulative amount of fair value hedging adjustment remaining for which hedge accounting has been discontinued	637		627

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Employee Benefits (Tables)

6 Months Ended

Jun. 30, 2021

Retirement Benefits [Abstract]

Benefit or (Income) Cost Related to Pension and Postretirement Health Care and Life Insurance

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)
	Pension				Health Care and Life
Three Months Ended June 30,	2021		2020		2021		2020
Service cost - Cost of services	$	62	$	59	$	23	$	23
Service cost - Selling, general and administrative expense	9		14		5		5
Service cost	$	71	$	73	$	28	$	28
Amortization of prior service cost (credit)	$	15	$	15	$	(224)	$	(242)
Expected return on plan assets	(309)		(296)		(5)		(6)
Interest cost	99		137		73		107
Remeasurement loss (gain), net	(1,314)		153		—		—
Other components	$	(1,509)	$	9	$	(156)	$	(141)
Total	$	(1,438)	$	82	$	(128)	$	(113)

	(dollars in millions)
	Pension				Health Care and Life
Six Months Ended June 30,	2021		2020		2021		2020
Service cost - Cost of services	$	127	$	118	$	47	$	45
Service cost - Selling, general and administrative expense	18		28		10		10
Service cost	$	145	$	146	$	57	$	55
Amortization of prior service cost (credit)	$	30	$	30	$	(447)	$	(483)
Expected return on plan assets	(618)		(593)		(11)		(13)
Interest cost	194		277		145		214
Remeasurement loss (gain), net	(1,314)		335		—		—
Other components	$	(1,708)	$	49	$	(313)	$	(282)
Total	$	(1,563)	$	195	$	(256)	$	(227)

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Equity and Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2021

Stockholders' Equity Note [Abstract]

Schedule of Changes in Components of Total Equity

Changes in the components of Total equity were as follows:

(dollars in millions, except per share amounts, and shares in thousands)
Three months ended June 30,	2021			2020
	Shares	Amount		Shares	Amount
Common Stock
Balance at beginning of period	4,291,434	$	429	4,291,434	$	429
Balance at end of period	4,291,434	429		4,291,434	429
Additional Paid In Capital
Balance at beginning of period		13,408			13,302
Other		(5)			(21)
Balance at end of period		13,403			13,281
Retained Earnings
Balance at beginning of period		63,107			54,557
Net income attributable to Verizon		5,800			4,700
Dividends declared ($0.6275, $0.6150 per share)		(2,597)			(2,544)
Other		—			33
Balance at end of period		66,310			56,746
Accumulated Other Comprehensive Income (Loss)
Balance at beginning of period attributable to Verizon		640			(1,502)
Foreign currency translation adjustments		58			77
Unrealized gain (loss) on cash flow hedges		(777)			314
Unrealized gain (loss) on marketable securities		—			6
Defined benefit pension and postretirement plans		(155)			(169)
Other comprehensive income (loss)		(874)			228
Balance at end of period attributable to Verizon		(234)			(1,274)
Treasury Stock
Balance at beginning of period	(151,366)	(6,634)		(153,438)	(6,725)
Employee plans	48	2		58	3
Balance at end of period	(151,318)	(6,632)		(153,380)	(6,722)
Deferred Compensation-ESOPs and Other
Balance at beginning of period		282			149
Restricted stock equity grant		131			157
Amortization		(5)			(69)
Balance at end of period		408			237
Noncontrolling Interests
Balance at beginning of period		1,451			1,443
Total comprehensive income		149			139
Distributions and other		(172)			(166)
Balance at end of period		1,428			1,416
Total Equity		$	75,112		$	64,113

(dollars in millions, except per share amounts, and shares in thousands)
Six months ended June 30,	2021			2020
	Shares	Amount		Shares	Amount
Common Stock
Balance at beginning of year	4,291,434	$	429	4,291,434	$	429
Balance at end of period	4,291,434	429		4,291,434	429
Additional Paid In Capital
Balance at beginning of year		13,404			13,419
Other		(1)			(138)
Balance at end of period		13,403			13,281
Retained Earnings
Balance at beginning of year		60,464			53,147
Opening balance sheet adjustment		—			(200)		(1)
Adjusted opening balance		60,464			52,947
Net income attributable to Verizon		11,045			8,856
Dividends declared ($1.2550, $1.2300 per share)		(5,199)			(5,090)
Other		—			33
Balance at end of period		66,310			56,746
Accumulated Other Comprehensive Income (Loss)
Balance at beginning of year attributable to Verizon		(71)			998
Foreign currency translation adjustments		20			(43)
Unrealized gain (loss) on cash flow hedges		132			(1,896)
Unrealized gain (loss) on marketable securities		(5)			5
Defined benefit pension and postretirement plans		(310)			(338)
Other comprehensive loss		(163)			(2,272)
Balance at end of period attributable to Verizon		(234)			(1,274)
Treasury Stock
Balance at beginning of year	(153,304)	(6,719)		(155,606)	(6,820)
Employee plans	1,983	87		2,222	98
Shareholder plans	3	—		4	—
Balance at end of period	(151,318)	(6,632)		(153,380)	(6,722)
Deferred Compensation-ESOPs and Other
Balance at beginning of year		335			222
Restricted stock equity grant		230			172
Amortization		(157)			(157)
Balance at end of period		408			237
Noncontrolling Interests
Balance at beginning of year		1,430			1,440
Total comprehensive income		282			270
Distributions and other		(284)			(294)
Balance at end of period		1,428			1,416
Total Equity		$	75,112		$	64,113

(1) Opening balance sheet adjustment for the six months ended June 30, 2020 is due to the adoption of Topic 326, ASU 2016-13, Financial Instruments-Credit Losses and other ASUs on January 1, 2020. Refer to the consolidated financial statements included in Verizon's Annual Report on Form 10-K for the year ended December 31, 2020 for additional information.

Schedule of Components in Accumulated Other Comprehensive Income

The changes in the balances of Accumulated other comprehensive income (loss) by component were as follows:

(dollars in millions)	Foreign  currency translation adjustments		Unrealized gain (loss) on cash flow hedges		Unrealized gain (loss) on marketable securities		Defined benefit pension and postretirement plans		Total
Balance at January 1, 2021	$	(404)	$	(1,387)	$	25	$	1,695	$	(71)
Other comprehensive income (loss)	20		(294)		(5)		—		(279)
Amounts reclassified to net income	—		426		—		(310)		116
Net other comprehensive income (loss)	20		132		(5)		(310)		(163)
Balance at June 30, 2021	$	(384)	$	(1,255)	$	20	$	1,385	$	(234)

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Schedule of Segment Operating Information

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 brand and through wholesale and other arrangements. 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 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 IoT services and products. We provide these products and services to businesses, government customers and wireless and wireline carriers across the U.S. and select products and services to customers around the world.

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)	2021		2020		2021		2020
External Operating Revenues
Consumer
Service	$	16,704	$	15,898	$	33,270	$	32,241
Wireless equipment	4,739		3,209		8,931		6,586
Other	1,973		1,946		3,955		3,932
Total Consumer	23,416		21,053		46,156		42,759
Business
Small and Medium Business	2,890		2,597		5,715		5,395
Global Enterprise	2,582		2,587		5,139		5,217
Public Sector and Other	1,614		1,523		3,259		2,997
Wholesale	658		756		1,393		1,516
Total Business	7,744		7,463		15,506		15,125
Total reportable segments	$	31,160	$	28,516	$	61,662	$	57,884
Intersegment Revenues
Consumer	$	61	$	60	$	119	$	119
Business	18		19		37		38
Total reportable segments	$	79	$	79	$	156	$	157
Total Operating Revenues
Consumer	$	23,477	$	21,113	$	46,275	$	42,878
Business(1)	7,762		7,482		15,543		15,163
Total reportable segments	$	31,239	$	28,595	$	61,818	$	58,041
Operating Income
Consumer	$	7,497	$	7,064	$	15,016	$	14,346
Business	856		946		1,755		1,900
Total reportable segments	$	8,353	$	8,010	$	16,771	$	16,246

(1) Service and other revenues included in our Business segment amounted to approximately $7.0 billion for both the three months ended June 30, 2021 and 2020, respectively. Service and other revenues included in our Business segment amounted to approximately $14.0 billion and $13.9 billion for the six months ended June 30, 2021 and 2020, respectively. Wireless equipment revenues included in our Business segment amounted to approximately $804 million and $546 million for the three months ended June 30, 2021 and 2020, respectively. Wireless equipment revenues included in our Business segment amounted to approximately $1.6 billion and $1.3 billion for the six months ended June 30, 2021 and 2020, respectively.

The following table provides Fios revenue for our two reportable segments:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(dollars in millions)	2021		2020		2021		2020
Consumer	$	2,895	$	2,754	$	5,755	$	5,553
Business	281		260		557		522
Total Fios revenue	$	3,176	$	3,014	$	6,312	$	6,075

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)	2021		2020		2021		2020
Consumer	$	13,794	$	13,087	$	27,478	$	26,563
Business	3,090		2,861		6,150		5,742
Total Wireless service revenue	$	16,884	$	15,948	$	33,628	$	32,305

Summary of Reconciliation of Segment Operating Revenues

A reconciliation of the reportable segment operating revenues to consolidated operating revenues is as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(dollars in millions)	2021		2020		2021		2020
Total reportable segment operating revenues	$	31,239	$	28,595	$	61,818	$	58,041
Corporate and other	2,662		1,967		5,084		4,239
Eliminations	(137)		(115)		(271)		(223)
Total consolidated operating revenues	$	33,764	$	30,447	$	66,631	$	62,057

Summary of Reconciliation of Segment Operating Income

A reconciliation of the total reportable segment's 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)	2021		2020		2021		2020
Total reportable segment operating income	$	8,353	$	8,010	$	16,771	$	16,246
Corporate and other	4		(445)		(229)		(704)
Other components of net periodic benefit charges (Note 9)	(192)		(204)		(384)		(407)
Loss on spectrum licenses (Note 3)	—		—		(223)		(1,195)
Total consolidated operating income	8,165		7,361		15,935		13,940
Equity in earnings (losses) of unconsolidated businesses	1		(13)		9		(25)
Other income (expense), net	502		(72)		903		71
Interest expense	(844)		(1,089)		(1,945)		(2,123)
Income Before Provision For Income Taxes	$	7,824	$	6,187	$	14,902	$	11,863

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Basis of Presentation - Earnings Per Common Share (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Accounting Policies [Abstract]
Dilutive securities (in shares)	2	2	2	2

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Basis of Presentation - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 4,657		$ 22,171
Cash, cash equivalents and restricted cash	6,085	$ 9,113	23,498	$ 3,917
Increase (decrease) in cash, cash equivalents, restricted cash and assets held for sale	(17,413)	$ 5,196
Cash and cash equivalents
Cash and Cash Equivalents [Line Items]
Increase (decrease) in cash, cash equivalents, restricted cash and assets held for sale	(17,514)
Prepaid expenses and other
Cash and Cash Equivalents [Line Items]
Restricted cash	1,189		1,195
Increase (decrease) in cash, cash equivalents, restricted cash and assets held for sale	(6)
Prepaid expenses and other | Assets held for sale
Cash and Cash Equivalents [Line Items]
Assets held-for-sale	145		0
Increase (decrease) in cash, cash equivalents, restricted cash and assets held for sale	145
Other assets
Cash and Cash Equivalents [Line Items]
Restricted cash	94		$ 132
Increase (decrease) in cash, cash equivalents, restricted cash and assets held for sale	$ (38)

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Revenues and Contract Costs - Additional Information (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) segment	Jun. 30, 2020 USD ($)
Disaggregation of Revenue [Line Items]
Number of reportable segments | segment			2
Revenue from arrangements not accounted for under Topic 606	$ 768,000,000	$ 785,000,000	$ 1,500,000,000	$ 1,600,000,000
Contract description of timing			Contracts for wireless services are generally either month-to-month and cancellable at any time (typically under a device payment plan) or contain terms ranging from greater than one month to up to two years (typically under a fixed-term plan).
Amortization of deferred contract costs	743,000,000	767,000,000	$ 1,500,000,000	1,500,000,000
Contract assets impairment charge	0	0	0	0
Media Business
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 2,100,000,000	$ 1,400,000,000	$ 3,900,000,000	$ 3,100,000,000
Wireless postpaid contracts
Disaggregation of Revenue [Line Items]
Percentage of month-to-month contracts of total service contracts	92.00%	89.00%	92.00%	89.00%
Wireline Consumer and Small and Medium Business contracts
Disaggregation of Revenue [Line Items]
Percentage of month-to-month contracts of total service contracts	80.00%	67.00%	80.00%	67.00%
Reseller Arrangements
Disaggregation of Revenue [Line Items]
Contract description of timing			Reseller arrangements generally include a stated contract term, which typically extends longer than two years and, in some cases, include a periodic minimum revenue commitment over the contract term for which revenues will be recognized in future periods.
Business
Disaggregation of Revenue [Line Items]
Contract description of timing			These contracts have varying terms spanning over approximately seven years
Minimum | Consumer
Disaggregation of Revenue [Line Items]
Customer contracts service term			12 months
Maximum | Consumer
Disaggregation of Revenue [Line Items]
Customer contracts service term			2 years
Maximum | Business
Disaggregation of Revenue [Line Items]
Customer contracts service term			12 months

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Revenues and Contract Costs - Revenue Performance Obligations (Details) $ in Billions	Jun. 30, 2021 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 9.4
Revenue, remaining performance obligation, expected timing of satisfaction, period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 11.7
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 3.4
Revenue, remaining performance obligation, expected timing of satisfaction, period
Customer Contracts that Have Contract Minimum over Total Contract Term | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 2.8
Revenue, remaining performance obligation, expected timing of satisfaction, period	7 years

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Revenues and Contract Costs - Schedule of Receivables from Contracts with Customers (Details) - USD ($) $ in Millions	Jun. 30, 2021	Jan. 01, 2021	Jun. 30, 2020	Jan. 01, 2020
Revenue from Contract with Customer [Abstract]
Receivables	$ 9,387	$ 12,029	$ 10,967	$ 12,078
Device payment plan agreement receivables	$ 10,836	$ 10,358	$ 10,047	$ 11,741

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Revenues and Contract Costs - Contract with Customer, Asset and Liability (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Jan. 01, 2021	Dec. 31, 2020	Jan. 01, 2020
Disaggregation of Revenue [Line Items]
Contract asset	$ 972	$ 993	$ 972	$ 993	$ 937	$ 937	$ 1,150
Contract liability	5,846	5,275	5,846	5,275	$ 5,598	5,598	$ 5,307
Revenue recognized related to contract liabilities existing	(199)	$ (204)	(4,100)	$ (4,000)
Prepaid expenses and other
Disaggregation of Revenue [Line Items]
Contract asset	772		772			733
Other assets
Disaggregation of Revenue [Line Items]
Contract asset	200		200			204
Other current liabilities
Disaggregation of Revenue [Line Items]
Contract liability	4,985		4,985			4,843
Other liabilities
Disaggregation of Revenue [Line Items]
Contract liability	$ 861		$ 861			$ 755

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Revenues and Contract Costs - Schedule of Cost Incurred to Obtain or Fulfill Contracts with Customers (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Capitalized Contract Cost [Line Items]
Cost incurred to obtain or fulfill contracts with customers	$ 4,514	$ 4,542
Minimum
Capitalized Contract Cost [Line Items]
Deferred contract cost, amortization period	2 years
Maximum
Capitalized Contract Cost [Line Items]
Deferred contract cost, amortization period	6 years
Prepaid expenses and other
Capitalized Contract Cost [Line Items]
Cost incurred to obtain or fulfill contracts with customers	$ 2,401	2,472
Other assets
Capitalized Contract Cost [Line Items]
Cost incurred to obtain or fulfill contracts with customers	$ 2,113	$ 2,070

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Acquisitions and Divestitures - Acquisitions (Details) customer in Thousands, $ in Millions	1 Months Ended						3 Months Ended		6 Months Ended
	Mar. 31, 2021 USD ($) agreement	Feb. 28, 2021 USD ($) license	Oct. 31, 2020 county customer	Sep. 30, 2020 USD ($) license shares	May 31, 2020 USD ($)	Mar. 31, 2020 USD ($) license	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)
Business Acquisition [Line Items]
Number of licenses acquired | license						4,940
Payments for deposits									$ 45,278	$ 1,801
Loss on disposition of licenses, pre-tax							$ 0	$ 0	223	1,195
Goodwill							24,915		24,915		$ 24,773
Spectrum licenses | Spectrum Licenses, C-Band
Business Acquisition [Line Items]
Number of licenses acquired | license		3,511
Payments for deposits		$ 45,500
Estimated clearing and incentive costs		$ 7,400
Spectrum licenses
Business Acquisition [Line Items]
Business acquisition consideration						$ 3,400
Portion of price to be settled with 39 GHz licenses						$ 1,800
Loss on disposition of licenses, pre-tax										1,200
Loss on disposition of licenses										$ 914
Priority Access Licenses
Business Acquisition [Line Items]
Number of licenses acquired | license				557
Payments for deposits				$ 1,900
Various Other Wireless Licenses | Spectrum licenses
Business Acquisition [Line Items]
Payments for deposits									90
Loss on disposition of licenses, pre-tax									223
Loss on disposition of licenses									167
Number of agreements to sell licenses | agreement	2
Blue Jeans Network
Business Acquisition [Line Items]
Business acquisition consideration					$ 397
TracFone Wireless, Inc.
Business Acquisition [Line Items]
Cash payment to acquire business				3,100
Common stock value consideration to acquire business				3,100
Future cash consideration related to achievement of certain performance measures				$ 650
TracFone Wireless, Inc. | Minimum
Business Acquisition [Line Items]
Number of shares issuable (in shares) | shares				47,124,445
TracFone Wireless, Inc. | Maximum
Business Acquisition [Line Items]
Number of shares issuable (in shares) | shares				57,596,544
Bluegrass Cellular, Certain Assets
Business Acquisition [Line Items]
Business acquisition consideration	$ 410
Number of customers | customer			210
Number of counties customers are serviced | county			34
Plant, property and equipment							141		141
Intangible assets other than goodwill							135		135
Goodwill							$ 91		$ 91

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Acquisitions and Divestitures - Verizon Media (Details) - Media Business - USD ($) $ in Millions	May 02, 2021	Jun. 30, 2021
Assets held for sale:
Cash and cash equivalents		$ 100
Restricted cash		45
Accounts receivable		1,843
Other		127
Prepaid expenses and other		2,115
Property, plant and equipment, net		1,140
Other intangible assets, net		2,469
Other		227
Other assets		3,836
Liabilities held for sale:
Accounts payable and accrued liabilities		1,665
Other		280
Other current liabilities		1,945
Other liabilities		$ 390
Apollo Global Management Inc.
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash consideration	$ 4,300
Apollo Global Management Inc. | Preferred Limited Partnership Units
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration, limited partnership units	$ 750
Apollo Global Management Inc. | Common Limited Partnership Units
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Ownership interest after disposal	10.00%

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Wireless Licenses, Goodwill and Other Intangible Assets - Carrying Amount of Wireless Licenses (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Wireless licenses	$ 98,034	$ 96,097
Deposits for wireless licenses	$ 45,910	$ 2,772

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Wireless Licenses, Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Mar. 31, 2020
Indefinite-lived Intangible Assets [Line Items]
Loss on disposition of licenses, pre-tax	$ 0	$ 0	$ 223	$ 1,195
Wireless licenses	98,034		98,034		$ 96,097
Wireless Licenses
Indefinite-lived Intangible Assets [Line Items]
Wireless licenses under development	53,500	3,500	53,500	3,500
Interest costs capitalized			$ 154	101
Assets held-for-sale						$ 2,800
Average remaining renewal period of wireless license portfolio (in years)			10 years
Wireless Licenses | Wireless Licenses
Indefinite-lived Intangible Assets [Line Items]
Wireless licenses under development	8,000		$ 8,000
Wireless Licenses | Deposits for Wireless Licenses
Indefinite-lived Intangible Assets [Line Items]
Wireless licenses under development	$ 45,500		45,500
Interest costs capitalized			$ 455
Spectrum Licenses, 39 GHz
Indefinite-lived Intangible Assets [Line Items]
Loss on disposition of licenses, pre-tax					1,200
Loss on disposition of licenses					914
Wireless licenses		$ 3,400		$ 3,400
Disposal Group, Held-for-sale, Not Discontinued Operations | Spectrum licenses
Indefinite-lived Intangible Assets [Line Items]
Other intangible assets, net					$ 1,600

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Wireless Licenses, Goodwill and Other Intangible Assets - Changes in Carrying Value of Goodwill (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Goodwill [Roll Forward]
Beginning balance	$ 24,773
Acquisitions (2)	128
Reclassifications, adjustments and other	14
Ending balance	24,915
Goodwill accumulated impairment charge	4,800	$ 4,800
Operating Segments | Consumer
Goodwill [Roll Forward]
Beginning balance	17,222
Acquisitions (2)	91
Reclassifications, adjustments and other	3
Ending balance	17,316
Operating Segments | Business
Goodwill [Roll Forward]
Beginning balance	7,535
Acquisitions (2)	0
Reclassifications, adjustments and other	11
Ending balance	7,546
Other
Goodwill [Roll Forward]
Beginning balance	16
Acquisitions (2)	37
Reclassifications, adjustments and other	0
Ending balance	$ 53

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Wireless Licenses, Goodwill and Other Intangible Assets - Composition of Other Intangible Assets, Net (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Gross Amount	$ 22,932	$ 27,477
Accumulated Amortization	(15,930)	(18,064)
Net Amount	7,002	9,413
Customer Lists
Finite-Lived Intangible Assets [Line Items]
Gross Amount	1,951	4,021
Accumulated Amortization	(996)	(1,961)
Net Amount	$ 955	2,060
Customer Lists | Minimum
Finite-Lived Intangible Assets [Line Items]
Other intangible asset, useful life	8 years
Customer Lists | Maximum
Finite-Lived Intangible Assets [Line Items]
Other intangible asset, useful life	13 years
Non-Network Internal-Use Software
Finite-Lived Intangible Assets [Line Items]
Gross Amount	$ 20,080	21,685
Accumulated Amortization	(14,182)	(15,104)
Net Amount	$ 5,898	6,581
Non-Network Internal-Use Software | Minimum
Finite-Lived Intangible Assets [Line Items]
Other intangible asset, useful life	5 years
Non-Network Internal-Use Software | Maximum
Finite-Lived Intangible Assets [Line Items]
Other intangible asset, useful life	7 years
Other
Finite-Lived Intangible Assets [Line Items]
Gross Amount	$ 901	1,771
Accumulated Amortization	(752)	(999)
Net Amount	$ 149	$ 772
Other | Minimum
Finite-Lived Intangible Assets [Line Items]
Other intangible asset, useful life	4 years
Other | Maximum
Finite-Lived Intangible Assets [Line Items]
Other intangible asset, useful life	25 years

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Wireless Licenses, Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense for other intangible assets	$ 480	$ 605	$ 1,109	$ 1,197
Remainder of 2021	786		786
2022	1,565		1,565
2023	1,350		1,350
2024	1,114		1,114
2025	911		911
2026	$ 538		$ 538

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Leasing Arrangements (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets	$ 28,180	$ 22,531
Operating lease, liability	$ 27,241

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Leasing Arrangements - Additional Information (Details)	6 Months Ended
	Jun. 30, 2021
Lessee, Lease, Description [Line Items]
Leases renewal term	25 years
Minimum
Lessee, Lease, Description [Line Items]
Leases remaining lease term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Leases remaining lease term	30 years

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Leasing Arrangements - Components of Net Lease Cost (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Leases [Abstract]
Operating lease cost	$ 1,341	$ 1,254	$ 2,585	$ 2,475
Amortization of right-of-use assets	66	40	133	291
Interest on lease liabilities	9	10	17	20
Short-term lease cost	4	5	9	12
Variable lease cost	78	76	159	163
Sublease income	(49)	(74)	(97)	(144)
Total net lease cost	$ 1,449	$ 1,311	$ 2,806	$ 2,817

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Leasing Arrangements - Schedule of Lease Liability Maturity (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Operating Leases
Remainder of 2021	$ 2,186
2022	4,148
2023	3,924
2024	3,663
2025	3,292
Thereafter	14,516
Total lease payments	31,729
Less interest	4,488
Present value of lease liabilities	27,241
Less current obligation	3,881	$ 3,485
Long-term obligation at June 30, 2021	23,360	$ 18,000
Finance Leases
Remainder of 2021	204
2022	376
2023	310
2024	241
2025	120
Thereafter	97
Total lease payments	1,348
Less interest	73
Present value of lease liabilities	1,275
Less current obligation	377
Long-term obligation at June 30, 2021	$ 898

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Debt - Debt Redemptions, Repurchases and Repayments (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Debt Instrument [Line Items]
Principal Repaid/ Redeemed/ Repurchased	$ 6,691
Amount Paid	$ 7,508	$ 7,508
Verizon 2.946% notes due 2022
Debt Instrument [Line Items]
Stated interest rate on debt instrument	2.946%
Principal Repaid/ Redeemed/ Repurchased	$ 713
Amount Paid	$ 730
Verizon 2.450% notes due 2022
Debt Instrument [Line Items]
Stated interest rate on debt instrument	2.45%
Principal Repaid/ Redeemed/ Repurchased	$ 794
Amount Paid	$ 819
Verizon 5.150% notes due 2023
Debt Instrument [Line Items]
Stated interest rate on debt instrument	5.15%
Principal Repaid/ Redeemed/ Repurchased	$ 3,190
Amount Paid	3,519
Open market repurchases of various Verizon and subsidiary notes
Debt Instrument [Line Items]
Principal Repaid/ Redeemed/ Repurchased	1,994
Amount Paid	$ 2,440

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Debt - Debt Issuances (Details)	3 Months Ended					6 Months Ended
	Mar. 31, 2021 USD ($)	Mar. 31, 2021 EUR (€)	Mar. 31, 2021 CAD ($)	Mar. 31, 2021 AUD ($)	Mar. 31, 2021 CHF (SFr)	Jun. 30, 2021 USD ($)	Mar. 31, 2021 EUR (€)	Mar. 31, 2021 CAD ($)	Mar. 31, 2021 AUD ($)	Mar. 31, 2021 CHF (SFr)
Debt Instrument [Line Items]
Proceeds from long-term borrowings	$ 30,934,000,000					$ 30,934,000,000
0.750% Notes Due 2024
Debt Instrument [Line Items]
Stated interest rate on debt instrument	0.75%						0.75%	0.75%	0.75%	0.75%
Principal Amount Issued	$ 1,750,000,000
Proceeds from long-term borrowings	$ 1,746,000,000
Floating Rate, SOFR Plus 0.500% Notes Due 2024
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%	0.50%	0.50%	0.50%	0.50%
Principal Amount Issued	$ 750,000,000
Proceeds from long-term borrowings	$ 748,000,000
1.450% Notes Due 2026
Debt Instrument [Line Items]
Stated interest rate on debt instrument	1.45%						1.45%	1.45%	1.45%	1.45%
Principal Amount Issued	$ 2,750,000,000
Proceeds from long-term borrowings	$ 2,737,000,000
Floating Rate, SOFR Plus 0.790% Notes Due 2026
Debt Instrument [Line Items]
Basis spread on variable rate	0.79%	0.79%	0.79%	0.79%	0.79%
Principal Amount Issued	$ 750,000,000
Proceeds from long-term borrowings	$ 748,000,000
2.100% Notes Due 2028
Debt Instrument [Line Items]
Stated interest rate on debt instrument	2.10%						2.10%	2.10%	2.10%	2.10%
Principal Amount Issued	$ 3,000,000,000
Proceeds from long-term borrowings	$ 2,988,000,000
2.550% Notes Due 2031
Debt Instrument [Line Items]
Stated interest rate on debt instrument	2.55%						2.55%	2.55%	2.55%	2.55%
Principal Amount Issued	$ 4,250,000,000
Proceeds from long-term borrowings	$ 4,216,000,000
3.400% Notes Due 2041
Debt Instrument [Line Items]
Stated interest rate on debt instrument	3.40%						3.40%	3.40%	3.40%	3.40%
Principal Amount Issued	$ 3,750,000,000
Proceeds from long-term borrowings	$ 3,726,000,000
3.550% Notes Due 2051
Debt Instrument [Line Items]
Stated interest rate on debt instrument	3.55%						3.55%	3.55%	3.55%	3.55%
Principal Amount Issued	$ 4,500,000,000
Proceeds from long-term borrowings	$ 4,426,000,000
3.700% Notes Due 2061
Debt Instrument [Line Items]
Stated interest rate on debt instrument	3.70%						3.70%	3.70%	3.70%	3.70%
Principal Amount Issued	$ 3,500,000,000
Proceeds from long-term borrowings	$ 3,439,000,000
0.375% Notes due 2029
Debt Instrument [Line Items]
Stated interest rate on debt instrument	0.375%						0.375%	0.375%	0.375%	0.375%
Principal Amount Issued | €							€ 1,000,000,000
Proceeds from long-term borrowings | €		€ 1,186,000,000
0.750% Notes due 2032
Debt Instrument [Line Items]
Stated interest rate on debt instrument	0.75%						0.75%	0.75%	0.75%	0.75%
Principal Amount Issued | €							€ 1,000,000,000
Proceeds from long-term borrowings | €		1,181,000,000
1.125% Notes due 2035
Debt Instrument [Line Items]
Stated interest rate on debt instrument	1.125%						1.125%	1.125%	1.125%	1.125%
Principal Amount Issued | €							€ 750,000,000
Proceeds from long-term borrowings | €		€ 878,000,000
2.375% Notes Due 2028
Debt Instrument [Line Items]
Stated interest rate on debt instrument	2.375%						2.375%	2.375%	2.375%	2.375%
Principal Amount Issued								$ 1,000,000,000
Proceeds from long-term borrowings			$ 800,000,000
4.050% Notes Due 2051
Debt Instrument [Line Items]
Stated interest rate on debt instrument	4.05%						4.05%	4.05%	4.05%	4.05%
Principal Amount Issued								$ 500,000,000
Proceeds from long-term borrowings			$ 399,000,000
2.350% Fixed Rate Notes due 2028
Debt Instrument [Line Items]
Stated interest rate on debt instrument	2.35%						2.35%	2.35%	2.35%	2.35%
Principal Amount Issued									$ 600,000,000
Proceeds from long-term borrowings				$ 463,000,000
3.000% Fixed Rate Notes due 2031
Debt Instrument [Line Items]
Stated interest rate on debt instrument	3.00%						3.00%	3.00%	3.00%	3.00%
Principal Amount Issued									$ 500,000,000
Proceeds from long-term borrowings				385,000,000
3.850% Fixed Rate Notes due 2041
Debt Instrument [Line Items]
Stated interest rate on debt instrument	3.85%						3.85%	3.85%	3.85%	3.85%
Principal Amount Issued									$ 150,000,000
Proceeds from long-term borrowings				$ 116,000,000
0.193% Bonds Due 2028
Debt Instrument [Line Items]
Stated interest rate on debt instrument	0.193%						0.193%	0.193%	0.193%	0.193%
Principal Amount Issued | SFr										SFr 375,000,000
Proceeds from long-term borrowings | SFr					SFr 403,000,000
0.555% Bonds Due 2031
Debt Instrument [Line Items]
Stated interest rate on debt instrument	0.555%						0.555%	0.555%	0.555%	0.555%
Principal Amount Issued | SFr										SFr 325,000,000
Proceeds from long-term borrowings | SFr					SFr 349,000,000
Verizon Floating Rate Notes Due 2024 And 2026 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Debt effective rate						0.01%

XML

Debt - Asset-Backed Debt Narrative (Detail) - USD ($)	1 Months Ended			3 Months Ended	6 Months Ended
	Jul. 28, 2021	May 31, 2021	Mar. 31, 2021	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2020
Debt Instrument [Line Items]
Repayments of debt				$ 7,508,000,000		$ 7,508,000,000
Asset-Backed Debt
Debt Instrument [Line Items]
Secured debt, carrying value				10,300,000,000	$ 10,300,000,000
2020 ABS Financing Facility
Debt Instrument [Line Items]
Repayments of debt		$ 1,500,000,000
Amount drawn from credit facilities			$ 1,000,000,000.0
Debt outstanding				0	0
Secured Debt | Asset Backed Notes
Debt Instrument [Line Items]
Repayments of debt				$ 761,000,000	$ 1,500,000,000
Secured Debt | Asset Backed Notes | Subsequent Event
Debt Instrument [Line Items]
Repayments of debt	$ 125,000,000
Secured Debt | Asset Backed Notes | Minimum
Debt Instrument [Line Items]
Revolving period					2 years
Secured Debt | Asset Backed Notes | Maximum
Debt Instrument [Line Items]
Revolving period					3 years

XML

Debt - Schedule of ABS Notes Transactions (Details) - May 2021 ABS Notes - USD ($) $ in Millions	1 Months Ended
	May 31, 2021	Jun. 30, 2021
Debt Instrument [Line Items]
Principal Amount Issued		$ 1,700
A Senior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument	50.00%
Expected Weighted-average Life to Maturity	2 years 11 months 26 days
Principal Amount Issued	$ 1,500
B Junior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument	69.00%
Expected Weighted-average Life to Maturity	2 years 11 months 26 days
Principal Amount Issued	$ 119
C Junior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument	89.00%
Expected Weighted-average Life to Maturity	2 years 11 months 26 days
Principal Amount Issued	$ 81

XML

Debt - Assets and Liabilities Related to Asset-backed Debt Arrangements (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Account receivable, net	$ 21,257	$ 23,917
Prepaid expenses and other	8,291	6,710
Other assets	14,761	10,879
Accounts payable and accrued liabilities	17,328	20,658
Debt maturing within one year	7,023	5,889
Long-term debt	144,894	123,173
Variable Interest Entity, Primary Beneficiary
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Account receivable, net	8,877	9,257
Prepaid expenses and other	1,189	1,128
Other assets	3,248	2,950
Accounts payable and accrued liabilities	9	8
Debt maturing within one year	4,344	4,191
Long-term debt	$ 5,971	$ 6,413

XML

Debt - Credit Facilities, Non-Cash Transaction, Guarantees (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Debt Instrument [Line Items]
Facility Capacity	$ 17,000,000,000		$ 17,000,000,000
Unused Capacity	9,922,000,000		9,922,000,000
Principal Amount Outstanding	5,029,000,000		5,029,000,000
Debt extinguishment losses	1,100,000,000	$ 102,000,000	(1,100,000,000)	$ (102,000,000)
Guarantee of Debentures of Operating Telephone Company Subsidiaries
Debt Instrument [Line Items]
Principal amount outstanding in connection with the guarantee of debt obligations	765,000,000		765,000,000
Guarantee of Debt Obligations of GTE Corporation
Debt Instrument [Line Items]
Principal amount outstanding in connection with the guarantee of debt obligations	391,000,000		391,000,000
Network Equipment | Alternative Financing Facility
Debt Instrument [Line Items]
Value of purchase assets financed			145,000,000	$ 673,000,000
Long-term debt maturing within one year	1,300,000,000		1,300,000,000		$ 1,600,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Facility Capacity	9,500,000,000		9,500,000,000
Unused Capacity	9,392,000,000		9,392,000,000
Equipment Credit Facilities
Debt Instrument [Line Items]
Facility Capacity	7,500,000,000		7,500,000,000
Unused Capacity	530,000,000		530,000,000
Principal Amount Outstanding	$ 5,029,000,000		5,029,000,000
Amount drawn from credit facilities			$ 470,000,000

XML

Device Payment Plan Agreement and Wireless Service Receivables - Schedule of Receivables (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 22,237	$ 25,169
Allowance for credit losses	980	1,252
Accounts receivable, net	21,257	$ 23,917
Device payment plan agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	12,157
Allowance for credit losses	575
Accounts receivable, net	11,582
Wireless service
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	5,006
Allowance for credit losses	145
Accounts receivable, net	4,861
Other receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	5,074
Allowance for credit losses	260
Accounts receivable, net	$ 4,814

XML

Device Payment Plan Agreement and Wireless Service Receivables - Schedule of Device Payment Plan Agreement Receivables (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement receivables, gross	$ 18,537	$ 17,959
Unamortized imputed interest	(397)	(453)
Device payment plan agreement receivables, at amortized cost	18,140	17,506
Allowance	(833)	(940)
Device payment plan agreement receivables, net	17,307	16,566
Account receivable, net
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement receivables, net	11,582	11,601
Other assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement receivables, net	$ 5,725	$ 4,965

XML

Device Payment Plan Agreement and Wireless Service Receivables - Additional Information (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jan. 01, 2021	Dec. 31, 2020	Jun. 30, 2020	Jan. 01, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables transferred to ABS Entities	$ 12,000		$ 12,100
Guarantee liability	52
Device payment plan agreement, trade-in liability	(5,846)	$ (5,598)	(5,598)	$ (5,275)	$ (5,307)
Product Trade-in
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement, trade-in liability	$ (174)		$ (70)
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum threshold period for new customers	210 days
Minimum threshold period for existing customers	210 days
Business
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum threshold period for new customers	12 months
Minimum threshold period for existing customers	12 months
Device payment plan agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables originating in 2021	$ 8,409
Receivables originating in 2020	$ 8,255
Device payment plan agreement | Consumer | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Customer tenure period	45 days
Device payment plan agreement | Consumer | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Customer tenure period	45 days
Device payment plan agreement | Business | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Customer tenure period	12 months
Device payment plan agreement | Business | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Customer tenure period	12 months
Wireless Service Plan Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables originating in 2021	$ 5,000
Number of days past due	34 days

XML

Device Payment Plan Agreement and Wireless Service Receivables - Schedule of Credit Quality Indicators (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
Device payment plan agreement receivables, at amortized cost	$ 18,537	$ 17,959
Device payment plan agreement
Financing Receivable, Credit Quality Indicator [Line Items]
2021	8,409
2020	8,255
Prior to 2020	1,476
Device payment plan agreement receivables, at amortized cost	18,140
Device payment plan agreement | New customers
Financing Receivable, Credit Quality Indicator [Line Items]
2021	1,335
2020	1,183
Prior to 2020	218
Device payment plan agreement receivables, at amortized cost	2,736
Device payment plan agreement | Existing customers
Financing Receivable, Credit Quality Indicator [Line Items]
2021	7,074
2020	7,072
Prior to 2020	1,258
Device payment plan agreement receivables, at amortized cost	$ 15,404

XML

Device Payment Plan Agreement and Wireless Service Receivables - Allowance for Credit Losses (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2021 USD ($)
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 940
Ending balance	833
Device payment plan agreement
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	940
Current period provision for expected credit losses	235
Write-offs charged against the allowance	(365)
Recoveries collected	23
Ending balance	833
Wireless Service Plan Receivables
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	262
Current period provision for expected credit losses	87
Write-offs charged against the allowance	(238)
Recoveries collected	34
Ending balance	$ 145

XML

Device Payment Plan Agreement and Wireless Service Receivables - Balance and Aging of Receivables (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement receivables, at amortized cost	$ 18,537	$ 17,959
Device payment plan agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement receivables, at amortized cost	18,140
Device payment plan agreement | Unbilled
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	17,040
Device payment plan agreement | Billed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	948
Past due	$ 152

XML

Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Assets:
Total	$ 2,058	$ 2,704
Other liabilities:
Total	1,623	1,298
Interest rate swaps | Prepaid expenses and other
Assets:
Derivative asset	184
Interest rate swaps | Other assets
Assets:
Derivative asset	330	787
Interest rate swaps | Other liabilities
Other liabilities:
Derivative liabilities	572	303
Cross currency swaps | Prepaid expenses and other
Assets:
Derivative asset	12
Cross currency swaps | Other assets
Assets:
Derivative asset	1,068	1,446
Cross currency swaps | Other current liabilities
Other liabilities:
Derivative liabilities	295
Cross currency swaps | Other liabilities
Other liabilities:
Derivative liabilities	462	196
Fixed income securities | Other assets
Assets:
Debt securities, available-for-sale	464	459
Foreign exchange forwards | Prepaid expenses and other
Assets:
Derivative asset		12
Foreign exchange forwards | Other current liabilities
Other liabilities:
Derivative liabilities	13	2
Forward starting interest rate swaps | Other current liabilities
Other liabilities:
Derivative liabilities	281	409
Forward starting interest rate swaps | Other liabilities
Other liabilities:
Derivative liabilities		388
Level 1
Assets:
Total	0	0
Other liabilities:
Total	0	0
Level 1 | Interest rate swaps | Prepaid expenses and other
Assets:
Derivative asset	0
Level 1 | Interest rate swaps | Other assets
Assets:
Derivative asset	0	0
Level 1 | Interest rate swaps | Other liabilities
Other liabilities:
Derivative liabilities	0	0
Level 1 | Cross currency swaps | Prepaid expenses and other
Assets:
Derivative asset	0
Level 1 | Cross currency swaps | Other assets
Assets:
Derivative asset	0	0
Level 1 | Cross currency swaps | Other current liabilities
Other liabilities:
Derivative liabilities	0
Level 1 | Cross currency swaps | Other liabilities
Other liabilities:
Derivative liabilities	0	0
Level 1 | Fixed income securities | Other assets
Assets:
Debt securities, available-for-sale	0	0
Level 1 | Foreign exchange forwards | Prepaid expenses and other
Assets:
Derivative asset		0
Level 1 | Foreign exchange forwards | Other current liabilities
Other liabilities:
Derivative liabilities	0	0
Level 1 | Forward starting interest rate swaps | Other current liabilities
Other liabilities:
Derivative liabilities	0	0
Level 1 | Forward starting interest rate swaps | Other liabilities
Other liabilities:
Derivative liabilities		0
Level 2
Assets:
Total	2,058	2,704
Other liabilities:
Total	1,623	1,298
Level 2 | Interest rate swaps | Prepaid expenses and other
Assets:
Derivative asset	184
Level 2 | Interest rate swaps | Other assets
Assets:
Derivative asset	330	787
Level 2 | Interest rate swaps | Other liabilities
Other liabilities:
Derivative liabilities	572	303
Level 2 | Cross currency swaps | Prepaid expenses and other
Assets:
Derivative asset	12
Level 2 | Cross currency swaps | Other assets
Assets:
Derivative asset	1,068	1,446
Level 2 | Cross currency swaps | Other current liabilities
Other liabilities:
Derivative liabilities	295
Level 2 | Cross currency swaps | Other liabilities
Other liabilities:
Derivative liabilities	462	196
Level 2 | Fixed income securities | Other assets
Assets:
Debt securities, available-for-sale	464	459
Level 2 | Foreign exchange forwards | Prepaid expenses and other
Assets:
Derivative asset		12
Level 2 | Foreign exchange forwards | Other current liabilities
Other liabilities:
Derivative liabilities	13	2
Level 2 | Forward starting interest rate swaps | Other current liabilities
Other liabilities:
Derivative liabilities	281	409
Level 2 | Forward starting interest rate swaps | Other liabilities
Other liabilities:
Derivative liabilities		388
Level 3
Assets:
Total	0	0
Other liabilities:
Total	0	0
Level 3 | Interest rate swaps | Prepaid expenses and other
Assets:
Derivative asset	0
Level 3 | Interest rate swaps | Other assets
Assets:
Derivative asset	0	0
Level 3 | Interest rate swaps | Other liabilities
Other liabilities:
Derivative liabilities	0	0
Level 3 | Cross currency swaps | Prepaid expenses and other
Assets:
Derivative asset	0
Level 3 | Cross currency swaps | Other assets
Assets:
Derivative asset	0	0
Level 3 | Cross currency swaps | Other current liabilities
Other liabilities:
Derivative liabilities	0
Level 3 | Cross currency swaps | Other liabilities
Other liabilities:
Derivative liabilities	0	0
Level 3 | Fixed income securities | Other assets
Assets:
Debt securities, available-for-sale	0	0
Level 3 | Foreign exchange forwards | Prepaid expenses and other
Assets:
Derivative asset		0
Level 3 | Foreign exchange forwards | Other current liabilities
Other liabilities:
Derivative liabilities	0	0
Level 3 | Forward starting interest rate swaps | Other current liabilities
Other liabilities:
Derivative liabilities	$ 0	0
Level 3 | Forward starting interest rate swaps | Other liabilities
Other liabilities:
Derivative liabilities		$ 0

XML

Fair Value Measurements - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2021 EUR (€)	Dec. 31, 2020 USD ($)	Dec. 31, 2020 EUR (€)
Derivatives, Fair Value [Line Items]
Carrying amount of our investments without readily determinable fair values	$ 413,000,000		$ 413,000,000			$ 402,000,000
Cumulative adjustments due to observable price changes	87,000,000		87,000,000
Derivative asset fair value of collateral	(100,000,000)		(100,000,000)			(200,000,000)
Interest rate swaps
Derivatives, Fair Value [Line Items]
Net investment hedge	17,608,000,000		17,608,000,000			17,768,000,000
Interest rate swaps | Fair Value Hedges
Derivatives, Fair Value [Line Items]
Notional amount of derivative instruments entered during period	1,600,000,000	$ 0	2,600,000,000	$ 2,400,000,000
Notional amount of derivative settled during period	1,800,000,000	929,000,000	2,700,000,000	2,400,000,000
Ineffectiveness portion of interest rate swaps	0			56,000,000
Cross currency swaps
Derivatives, Fair Value [Line Items]
Net investment hedge	32,502,000,000		32,502,000,000			26,288,000,000
Cross currency swaps | Cash Flow Hedging
Derivatives, Fair Value [Line Items]
Notional amount of derivative instruments entered during period	0	3,300,000,000	6,200,000,000	3,300,000,000
Notional amount of derivative settled during period	0	1,600,000,000	0	1,600,000,000
Pre-tax gains (loss) recognized in other comprehensive income (loss)	(701,000,000)	1,000,000,000.0	(927,000,000)	(1,900,000,000)
Forward starting interest rate swaps
Derivatives, Fair Value [Line Items]
Net investment hedge	1,000,000,000		1,000,000,000			2,000,000,000
Forward starting interest rate swaps | Cash Flow Hedging
Derivatives, Fair Value [Line Items]
Notional amount of derivative instruments entered during period	0	0	0	0
Notional amount of derivative settled during period	0	0	1,000,000,000.0	1,000,000,000.0
Pre-tax gains (loss) recognized in other comprehensive income (loss)	(121,000,000)		279,000,000	(809,000,000)
Payments for settlement of derivative			237,000,000	293,000,000
Treasury rate locks | Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amount of derivative instruments entered during period	0	0	0	1,600,000,000
Notional amount of derivative settled during period	0	0	0	1,600,000,000
Pre-tax gains (loss) recognized in other comprehensive income (loss)	0	0	0
Treasury rate locks | Cash Flow Hedging
Derivatives, Fair Value [Line Items]
Notional amount of derivative instruments entered during period	0	0	4,700,000,000	500,000,000
Notional amount of derivative settled during period	0	0	4,700,000,000	500,000,000
Pre-tax gains (loss) recognized in other comprehensive income (loss)	0	0	251,000,000
Proceeds from settlement of derivative			251,000,000
Euro Denominated Debt | Net Investment Hedges
Derivatives, Fair Value [Line Items]
Net investment hedge | €					€ 750,000,000		€ 750,000,000
Foreign exchange forwards
Derivatives, Fair Value [Line Items]
Net investment hedge	1,490,000,000		1,490,000,000			$ 1,405,000,000
Foreign exchange forwards | Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amount of derivative instruments entered during period	3,700,000,000	4,300,000,000	7,200,000,000	6,900,000,000
Notional amount of derivative settled during period	$ 3,500,000,000	4,200,000,000	$ 7,100,000,000	$ 7,100,000,000
Pre-tax gains (loss) recognized in other comprehensive income (loss)		$ 81,000,000

XML

Fair Value Measurements - Debt Excluding Capital Leases (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument fair value	$ 150,641	$ 127,778
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument fair value	174,316	156,752
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument fair value	112,613	103,967
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument fair value	61,703	52,785
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument fair value	$ 0	$ 0

XML

Fair Value Measurements - Notional Amounts of Outstanding Derivative Instruments (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Interest rate swaps
Derivative [Line Items]
Notional amount	$ 17,608	$ 17,768
Cross currency swaps
Derivative [Line Items]
Notional amount	32,502	26,288
Forward starting interest rate swaps
Derivative [Line Items]
Notional amount	1,000	2,000
Foreign exchange forwards
Derivative [Line Items]
Notional amount	$ 1,490	$ 1,405

XML

Fair Value Measurements - Schedule of Cumulative Basis Adjustments for Fair Value Hedges (Details) - Long-term debt - Fair Value Hedges - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Carrying amount of hedged liabilities	$ 18,021	$ 18,849
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities	25	557
Cumulative amount of fair value hedging adjustment remaining for which hedge accounting has been discontinued	$ 637	$ 627

XML

Employee Benefits - Costs by Plans (Detail) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Pension
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 71	$ 73		$ 145	$ 146
Amortization of prior service cost (credit)	15	15		30	30
Expected return on plan assets	(309)	(296)		(618)	(593)
Interest cost	99	137		194	277
Remeasurement loss (gain), net	(1,300)	153	$ 182	(1,314)	335
Other components	(1,509)	9		(1,708)	49
Total	(1,438)	82		(1,563)	195
Pension | Cost of services
Defined Benefit Plan Disclosure [Line Items]
Service cost	62	59		127	118
Pension | Selling, general and administrative expense
Defined Benefit Plan Disclosure [Line Items]
Service cost	9	14		18	28
Health Care and Life
Defined Benefit Plan Disclosure [Line Items]
Service cost	28	28		57	55
Amortization of prior service cost (credit)	(224)	(242)		(447)	(483)
Expected return on plan assets	(5)	(6)		(11)	(13)
Interest cost	73	107		145	214
Remeasurement loss (gain), net	0	0		0	0
Other components	(156)	(141)		(313)	(282)
Total	(128)	(113)		(256)	(227)
Health Care and Life | Cost of services
Defined Benefit Plan Disclosure [Line Items]
Service cost	23	23		47	45
Health Care and Life | Selling, general and administrative expense
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 5	$ 5		$ 10	$ 10

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Employee Benefits - Additional Information (Detail) - USD ($)	3 Months Ended			6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Defined Benefit Plan Disclosure [Line Items]
Amount paid in severance benefits over the period				$ 129,000,000
Post employment benefits liability	$ 490,000,000			490,000,000
Pension
Defined Benefit Plan Disclosure [Line Items]
Charge (credit) due to change in discount rate assumption	1,200,000,000		$ (196,000,000)	1,200,000,000
Remeasurement gain (loss), net	1,300,000,000	$ (153,000,000)	$ (182,000,000)	1,314,000,000	$ (335,000,000)
Credit (charge) due to difference between estimated and actual return on assets	122,000,000	(163,000,000)		122,000,000
Pension | Qualified Plan
Defined Benefit Plan Disclosure [Line Items]
Employer discretionary contribution amount	$ 0	$ 0		$ 0	$ 0

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Equity and Accumulated Other Comprehensive Income (Loss) - Changes in Components of Total equity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			$ 69,272
Net income attributable to Verizon	$ 5,800	$ 4,700	11,045	$ 8,856
Foreign currency translation adjustments	58	77	20	(43)
Unrealized gain (loss) on cash flow hedges	(777)	314	132	(1,896)
Unrealized gain (loss) on marketable securities	0	6	(5)	5
Defined benefit pension and postretirement plans	(155)	(169)	(310)	(338)
Other comprehensive income (loss)			$ (163)
Shareholder plans (in shares)			2,000
Total comprehensive income	5,075	5,067	$ 11,164	6,854
Ending Balance	$ 75,112	$ 64,113	$ 75,112	$ 64,113
Dividends declared per common share (USD per share)	$ 0.6275	$ 0.6150	$ 1.2550	$ 1.2300
Accounting standards update				us-gaap:AccountingStandardsUpdate201602Member
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	$ 429	$ 429	$ 429	$ 429
Beginning balance (in shares)	4,291,434	4,291,434	4,291,434	4,291,434
Ending Balance (in shares)	4,291,434	4,291,434	4,291,434	4,291,434
Ending Balance	$ 429	$ 429	$ 429	$ 429
Additional Paid In Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	13,408	13,302	13,404	13,419
Other	(5)	(21)	(1)	(138)
Ending Balance	13,403	13,281	13,403	13,281
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	63,107	54,557	60,464	53,147
Other	0	33	0	33
Net income attributable to Verizon	5,800	4,700	11,045	8,856
Dividends declared	(2,597)	(2,544)	(5,199)	(5,090)
Ending Balance	66,310	56,746	66,310	56,746
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			0	(200)
Retained Earnings | Cumulative Effect, Period of Adoption, Adjusted Balance
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			60,464	52,947
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	640	(1,502)	(71)	998
Foreign currency translation adjustments	58	77	20	(43)
Unrealized gain (loss) on cash flow hedges	(777)	314	132	(1,896)
Unrealized gain (loss) on marketable securities	0	6	(5)	5
Defined benefit pension and postretirement plans	(155)	(169)	(310)	(338)
Other comprehensive income (loss)	(874)	228	(163)	(2,272)
Ending Balance	(234)	(1,274)	(234)	(1,274)
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	$ (6,634)	$ (6,725)	$ (6,719)	$ (6,820)
Beginning balance (in shares)	151,366	153,438	153,304	155,606
Employee plans (in shares)	48	58	1,983	2,222
Employee plans	$ 2	$ 3	$ 87	$ 98
Shareholder plans (in shares)			3	4
Shareholder plans			$ 0	$ 0
Ending Balance (in shares)	151,318	153,380	151,318	153,380
Ending Balance	$ (6,632)	$ (6,722)	$ (6,632)	$ (6,722)
Deferred Compensation-ESOPs and Other
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	282	149	335	222
Restricted stock equity grant	131	157	230	172
Amortization	(5)	(69)	(157)	(157)
Ending Balance	408	237	408	237
Noncontrolling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	1,451	1,443	1,430	1,440
Total comprehensive income	149	139	282	270
Distributions and other	(172)	(166)	(284)	(294)
Ending Balance	$ 1,428	$ 1,416	$ 1,428	$ 1,416

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Equity and Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2021 shares
Stockholders' Equity Note [Abstract]
Stock repurchase program, remaining shares available for purchase (in shares)	100,000,000
Number of common shares issued from treasury stock (in shares)	2,000,000.0

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Equity and Accumulated Other Comprehensive Income (Loss) - Changes in AOCI (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]
Beginning Balance			$ 69,272
Other comprehensive income (loss)			(279)
Amounts reclassified to net income			116
Net other comprehensive income (loss)			(163)
Ending Balance	$ 75,112	$ 64,113	75,112	$ 64,113
Foreign  currency translation adjustments
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]
Beginning Balance			(404)
Other comprehensive income (loss)			20
Amounts reclassified to net income			0
Net other comprehensive income (loss)			20
Ending Balance	(384)		(384)
Unrealized gain (loss) on cash flow hedges
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]
Beginning Balance			(1,387)
Other comprehensive income (loss)			(294)
Amounts reclassified to net income			426
Net other comprehensive income (loss)			132
Ending Balance	(1,255)		(1,255)
Unrealized gain (loss) on marketable securities
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]
Beginning Balance			25
Other comprehensive income (loss)			(5)
Amounts reclassified to net income			0
Net other comprehensive income (loss)			(5)
Ending Balance	20		20
Defined benefit pension and postretirement plans
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]
Beginning Balance			1,695
Other comprehensive income (loss)			0
Amounts reclassified to net income			(310)
Net other comprehensive income (loss)			(310)
Ending Balance	1,385		1,385
Accumulated Other Comprehensive Income (Loss)
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]
Beginning Balance	640	(1,502)	(71)	998
Net other comprehensive income (loss)	(874)	228	(163)	(2,272)
Ending Balance	$ (234)	$ (1,274)	$ (234)	$ (1,274)

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Segment Information - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2021 segment
Segment Reporting [Abstract]
Number of reportable segments	2

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Segment Information - Operating Financial Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information [Line Items]
Operating revenues	$ 33,764	$ 30,447	$ 66,631	$ 62,057
Operating Income	8,165	7,361	15,935	13,940
Wireless equipment
Segment Reporting Information [Line Items]
Operating revenues	5,543	3,755	10,487	7,884
Service and Other
Segment Reporting Information [Line Items]
Operating revenues	28,221	26,692	56,144	54,173
Fios revenues
Segment Reporting Information [Line Items]
Operating revenues	3,176	3,014	6,312	6,075
Wireless service
Segment Reporting Information [Line Items]
Operating revenues	16,884	15,948	33,628	32,305
Consumer
Segment Reporting Information [Line Items]
Operating revenues	23,416	21,053	46,156	42,759
Consumer | Service
Segment Reporting Information [Line Items]
Operating revenues	16,704	15,898	33,270	32,241
Consumer | Wireless equipment
Segment Reporting Information [Line Items]
Operating revenues	4,739	3,209	8,931	6,586
Consumer | Other
Segment Reporting Information [Line Items]
Operating revenues	1,973	1,946	3,955	3,932
Consumer | Fios revenues
Segment Reporting Information [Line Items]
Operating revenues	2,895	2,754	5,755	5,553
Consumer | Wireless service
Segment Reporting Information [Line Items]
Operating revenues	13,794	13,087	27,478	26,563
Business
Segment Reporting Information [Line Items]
Operating revenues	7,744	7,463	15,506	15,125
Business | Wireless equipment
Segment Reporting Information [Line Items]
Operating revenues	804	546	1,600	1,300
Business | Small and Medium Business
Segment Reporting Information [Line Items]
Operating revenues	2,890	2,597	5,715	5,395
Business | Global Enterprise
Segment Reporting Information [Line Items]
Operating revenues	2,582	2,587	5,139	5,217
Business | Public Sector and Other
Segment Reporting Information [Line Items]
Operating revenues	1,614	1,523	3,259	2,997
Business | Wholesale
Segment Reporting Information [Line Items]
Operating revenues	658	756	1,393	1,516
Business | Service and Other
Segment Reporting Information [Line Items]
Operating revenues	7,000	7,000	14,000	13,900
Business | Fios revenues
Segment Reporting Information [Line Items]
Operating revenues	281	260	557	522
Business | Wireless service
Segment Reporting Information [Line Items]
Operating revenues	3,090	2,861	6,150	5,742
Total reportable segments
Segment Reporting Information [Line Items]
Operating revenues	31,160	28,516	61,662	57,884
Intersegment Eliminations
Segment Reporting Information [Line Items]
Operating revenues	79	79	156	157
Intersegment Eliminations | Consumer
Segment Reporting Information [Line Items]
Operating revenues	61	60	119	119
Intersegment Eliminations | Business
Segment Reporting Information [Line Items]
Operating revenues	18	19	37	38
Operating Segments
Segment Reporting Information [Line Items]
Operating revenues	31,239	28,595	61,818	58,041
Operating Income	8,353	8,010	16,771	16,246
Operating Segments | Consumer
Segment Reporting Information [Line Items]
Operating revenues	23,477	21,113	46,275	42,878
Operating Income	7,497	7,064	15,016	14,346
Operating Segments | Business
Segment Reporting Information [Line Items]
Operating revenues	7,762	7,482	15,543	15,163
Operating Income	$ 856	$ 946	$ 1,755	$ 1,900

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Segment Information - Reconciliation of Operating Revenues (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating revenues	$ 33,764	$ 30,447	$ 66,631	$ 62,057
Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating revenues	31,239	28,595	61,818	58,041
Corporate and other
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating revenues	2,662	1,967	5,084	4,239
Eliminations
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating revenues	$ (137)	$ (115)	$ (271)	$ (223)

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Segment Information - Reconciliation of Segments Operating Income to Consolidated Income (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information [Line Items]
Operating income	$ 8,165	$ 7,361	$ 15,935	$ 13,940
Other components of net periodic benefit charges	(192)	(204)	(384)	(407)
Loss on spectrum license transaction	0	0	(223)	(1,195)
Equity in earnings (losses) of unconsolidated businesses	1	(13)	9	(25)
Other income (expense), net	502	(72)	903	71
Interest expense	(844)	(1,089)	(1,945)	(2,123)
Income Before Provision For Income Taxes	7,824	6,187	14,902	11,863
Operating Segments
Segment Reporting Information [Line Items]
Operating income	8,353	8,010	16,771	16,246
Corporate and other
Segment Reporting Information [Line Items]
Operating income	$ 4	$ (445)	$ (229)	$ (704)

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Commitments and Contingencies (Detail)	6 Months Ended
	Jun. 30, 2021 legal_matter agreement
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
Approximate number of federal district court actions alleged for patent infringement | legal_matter	20
Number of agreements | agreement	1
Guarantee obligations, term	30 years
Payment Guarantee
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
Guarantee obligations, term	15 years

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Label	Element	Value
Spectrum Licenses, 39 GHz [Member]
Payments to Acquire Intangible Assets	us-gaap_PaymentsToAcquireIntangibleAssets	$ 101,000,000
Payments to Acquire Intangible Assets	us-gaap_PaymentsToAcquireIntangibleAssets	1,600,000,000
Spectrum Licenses, 39 GHz [Member] | Spectrum Licenses, C-Band [Member]
Payments to Acquire Intangible Assets	us-gaap_PaymentsToAcquireIntangibleAssets	$ 44,600,000,000