Equity and Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 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 September 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		13,403			13,281
Other		(1)			123
Balance at end of period		13,402			13,404
Retained Earnings
Balance at beginning of period		66,310			56,746
Net income attributable to Verizon		6,407			4,357
Dividends declared ($0.6400, $0.6275 per share)		(2,651)			(2,597)
Other		(4)			(33)
Balance at end of period		70,062			58,473
Accumulated Other Comprehensive Loss
Balance at beginning of period attributable to Verizon		(234)			(1,274)
Foreign currency translation adjustments		(146)			124
Unrealized gain (loss) on cash flow hedges		(174)			505
Unrealized gain on marketable securities		—			2
Defined benefit pension and postretirement plans		(155)			(169)
Other comprehensive income (loss)		(475)			462
Balance at end of period attributable to Verizon		(709)			(812)
Treasury Stock
Balance at beginning of period	(151,318)	(6,632)		(153,380)	(6,722)
Employee plans	48	2		41	1
Balance at end of period	(151,270)	(6,630)		(153,339)	(6,721)
Deferred Compensation-ESOPs and Other
Balance at beginning of period		408			237
Restricted stock equity grant		85			62
Amortization		(3)			(3)
Balance at end of period		490			296
Noncontrolling Interests
Balance at beginning of period		1,428			1,416
Total comprehensive income		147			147
Distributions and other		(130)			(102)
Balance at end of period		1,445			1,461
Total Equity		$	78,489		$	66,530

(dollars in millions, except per share amounts, and shares in thousands)
Nine months ended September 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		(2)			(15)
Balance at end of period		13,402			13,404
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		17,452			13,213
Dividends declared ($1.8950, $1.8575 per share)		(7,850)			(7,687)
Other		(4)			—
Balance at end of period		70,062			58,473
Accumulated Other Comprehensive Income (Loss)
Balance at beginning of year attributable to Verizon		(71)			998
Foreign currency translation adjustments		(126)			81
Unrealized loss on cash flow hedges		(42)			(1,391)
Unrealized gain (loss) on marketable securities		(5)			7
Defined benefit pension and postretirement plans		(465)			(507)
Other comprehensive loss		(638)			(1,810)
Balance at end of period attributable to Verizon		(709)			(812)
Treasury Stock
Balance at beginning of year	(153,304)	(6,719)		(155,606)	(6,820)
Employee plans	2,031	89		2,263	99
Shareholder plans	3	—		4	—
Balance at end of period	(151,270)	(6,630)		(153,339)	(6,721)
Deferred Compensation-ESOPs and Other
Balance at beginning of year		335			222
Restricted stock equity grant		315			234
Amortization		(160)			(160)
Balance at end of period		490			296
Noncontrolling Interests
Balance at beginning of year		1,430			1,440
Total comprehensive income		429			417
Distributions and other		(414)			(396)
Balance at end of period		1,445			1,461
Total Equity		$	78,489		$	66,530

(1) Opening balance sheet adjustment for the nine months ended September 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 nine months ended September 30, 2021. At September 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 nine months ended September 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 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 loss	(126)		(1,077)		(5)		—		(1,208)
Amounts reclassified to net income	—		1,035		—		(465)		570
Net other comprehensive loss	(126)		(42)		(5)		(465)		(638)
Balance at September 30, 2021	$	(530)	$	(1,429)	$	20	$	1,230	$	(709)

    

The amounts presented above in Net other comprehensive 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.