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 March 31, 2022

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

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

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
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 March 31, 2022, 4,199,643,701 shares of the registrant’s common stock were outstanding, after deducting 91,789,945 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 months ended March 31, 2022 and 2021
	Condensed Consolidated Statements of Comprehensive Income	5
	Three months ended March 31, 2022 and 2021
	Condensed Consolidated Balance Sheets	6
	At March 31, 2022 and December 31, 2021
	Condensed Consolidated Statements of Cash Flows	7
	Three months ended March 31, 2022 and 2021
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	50
Item 4.	Controls and Procedures	50
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	51
Item 1A.	Risk Factors	51
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	51
Item 6.	Exhibits	52
Signature		53
Certifications

Part I - Financial Information

Item 1. Financial Statements (Unaudited)

Condensed Consolidated Statements of Income

Verizon Communications Inc. and Subsidiaries

	Three Months Ended
	March 31,
(dollars in millions, except per share amounts) (unaudited)	2022		2021
Operating Revenues
Service revenues and other	$	27,218	$	27,923
Wireless equipment revenues	6,336		4,944
Total Operating Revenues	33,554		32,867
Operating Expenses
Cost of services (exclusive of items shown below)	7,227		8,020
Cost of wireless equipment	7,123		5,502
Selling, general and administrative expense	7,172		7,401
Depreciation and amortization expense	4,236		4,174
Total Operating Expenses	25,758		25,097
Operating Income	7,796		7,770
Equity in earnings (losses) of unconsolidated businesses	(3)		8
Other income (expense), net	(924)		401
Interest expense	(786)		(1,101)
Income Before Provision For Income Taxes	6,083		7,078
Provision for income taxes	(1,372)		(1,700)
Net Income	$	4,711	$	5,378
Net income attributable to noncontrolling interests	$	131	$	133
Net income attributable to Verizon	4,580		5,245
Net Income	$	4,711	$	5,378
Basic Earnings Per Common Share
Net income attributable to Verizon	$	1.09	$	1.27
Weighted-average shares outstanding (in millions)	4,201		4,141
Diluted Earnings Per Common Share
Net income attributable to Verizon	$	1.09	$	1.27
Weighted-average shares outstanding (in millions)	4,202		4,142

See Notes to Condensed Consolidated Financial Statements

4

Condensed Consolidated Statements of Comprehensive Income

Verizon Communications Inc. and Subsidiaries

	Three Months Ended
	March 31,
(dollars in millions) (unaudited)	2022		2021
Net Income	$	4,711	$	5,378
Other Comprehensive Income (Loss), Net of Tax (Expense) Benefit
Foreign currency translation adjustments, net of tax of $(6) and $8	(29)		(38)
Unrealized gain on cash flow hedges, net of tax of $(72) and $(340)	207		909
Unrealized loss on marketable securities, net of tax of $5 and $1	(18)		(5)
Defined benefit pension and postretirement plans, net of tax of $48 and $51	(139)		(155)
Other comprehensive income attributable to Verizon	21		711
Total Comprehensive Income	$	4,732	$	6,089
Comprehensive income attributable to noncontrolling interests	$	131	$	133
Comprehensive income attributable to Verizon	4,601		5,956
Total Comprehensive Income	$	4,732	$	6,089

See Notes to Condensed Consolidated Financial Statements

5

Condensed Consolidated Balance Sheets

Verizon Communications Inc. and Subsidiaries

	At March 31,		At December 31,
(dollars in millions, except per share amounts) (unaudited)	2022		2021
Assets
Current assets
Cash and cash equivalents	$	1,661	$	2,921
Accounts receivable	24,474		24,742
Less Allowance for credit losses	859		896
Accounts receivable, net	23,615		23,846
Inventories	3,659		3,055
Prepaid expenses and other	6,645		6,906
Total current assets	35,580		36,728
Property, plant and equipment	292,568		289,897
Less Accumulated depreciation	192,725		190,201
Property, plant and equipment, net	99,843		99,696
Investments in unconsolidated businesses	1,074		1,061
Wireless licenses	148,083		147,619
Goodwill	28,629		28,603
Other intangible assets, net	11,432		11,677
Operating lease right-of-use assets	27,494		27,883
Other assets	13,581		13,329
Total assets	$	365,716	$	366,596
Liabilities and Equity
Current liabilities
Debt maturing within one year	$	13,421	$	7,443
Accounts payable and accrued liabilities	18,169		24,833
Current operating lease liabilities	3,847		3,859
Other current liabilities	11,148		11,025
Total current liabilities	46,585		47,160
Long-term debt	139,961		143,425
Employee benefit obligations	15,104		15,410
Deferred income taxes	41,341		40,685
Non-current operating lease liabilities	22,932		23,203
Other liabilities	14,618		13,513
Total long-term liabilities	233,956		236,236
Commitments and Contingencies (Note 11)
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 in each period)	429		429
Additional paid in capital	13,874		13,861
Retained earnings	73,891		71,993
Accumulated other comprehensive loss	(906)		(927)
Common stock in treasury, at cost (91,789,945 and 93,634,725 shares outstanding)	(4,023)		(4,104)
Deferred compensation – employee stock ownership plans (ESOPs) and other	497		538
Noncontrolling interests	1,413		1,410
Total equity	85,175		83,200
Total liabilities and equity	$	365,716	$	366,596

See Notes to Condensed Consolidated Financial Statements

6

Condensed Consolidated Statements of Cash Flows

Verizon Communications Inc. and Subsidiaries

	Three Months Ended
	March 31,
(dollars in millions) (unaudited)	2022		2021
Cash Flows from Operating Activities
Net Income	$	4,711	$	5,378
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	4,236		4,174
Employee retirement benefits	(210)		(253)
Deferred income taxes	627		762
Provision for expected credit losses	328		224
Equity in losses of unconsolidated businesses, net of dividends received	7		19
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses	(3,492)		(41)
Other, net	614		(569)
Net cash provided by operating activities	6,821		9,694
Cash Flows from Investing Activities
Capital expenditures (including capitalized software)	(5,821)		(4,494)
Acquisitions of businesses, net of cash acquired	—		(408)
Acquisitions of wireless licenses	(1,838)		(44,783)
Other, net	(336)		32
Net cash used in investing activities	(7,995)		(49,653)
Cash Flows from Financing Activities
Proceeds from long-term borrowings	3,604		31,383
Proceeds from asset-backed long-term borrowings	3,545		1,000
Repayments of long-term borrowings and finance lease obligations	(6,556)		(302)
Repayments of asset-backed long-term borrowings	(1,650)		(732)
Dividends paid	(2,654)		(2,601)
Other, net	3,956		(792)
Net cash provided by financing activities	245		27,956
Decrease in cash, cash equivalents and restricted cash	(929)		(12,003)
Cash, cash equivalents and restricted cash, beginning of period	4,161		23,498
Cash, cash equivalents and restricted cash, end of period (Note 1)	$	3,232	$	11,495

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, 2021. 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.

Earnings Per Common Share

There were a total of approximately 1.5 million outstanding dilutive securities, primarily consisting of restricted stock units, included in the computation of diluted earnings per common share for the three months ended March 31, 2022. There were a total of approximately 1.6 million outstanding dilutive securities, primarily consisting of restricted stock units, included in the computation of diluted earnings per common share for the three months ended March 31, 2021.

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.

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

	At March 31,		At December 31,		Increase / (Decrease)
(dollars in millions)	2022		2021
Cash and cash equivalents	$	1,661	$	2,921	$	(1,260)
Restricted cash:
Prepaid expenses and other	1,430		1,094		336
Other assets	141		146		(5)
Cash, cash equivalents and restricted cash	$	3,232	$	4,161	$	(929)

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 10 for additional information on revenue by segment. Corporate and other primarily includes insurance captive revenues.

We also earn revenues that are not accounted for under Accounting Standards Update (ASU) 2014-09, "Revenue from Contracts with Customers" (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 months ended March 31, 2022 and March 31, 2021, revenues from arrangements that were not accounted for under Topic 606 were approximately $830 million and $735 million, 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

8

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 March 31, 2022, month-to-month service contracts represented approximately 94% of our wireless postpaid contracts and approximately 88% of our wireline Consumer and Small and Medium Business contracts, compared to March 31, 2021, for which month-to-month service contracts represented approximately 91% of our wireless postpaid contracts and 78% 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, with or without promotional credits that require maintenance of service, are generally either month-to-month and cancellable at any time, considered to contain terms ranging from greater than one month to up to thirty-six months (typically under a device payment plan), or contain terms ranging from greater than one month to up to twenty-four months (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 cancelled 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 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 nine years ending in August 2031 and have aggregate contract minimum payments totaling $2.1 billion.

At March 31, 2022, the transaction price related to unsatisfied performance obligations that are expected to be recognized for the remainder of 2022, 2023 and thereafter was $14.4 billion, $11.3 billion and $4.8 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.

9

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

	At March 31,		At January 1,		At March 31,		At January 1,
(dollars in millions)	2022		2022		2021		2021
Receivables(1)	$	10,419	$	10,758	$	10,821	$	12,029
Device payment plan agreement receivables(2)	13,478		12,888		10,409		10,358

(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 6. Receivables derived from the sale of equipment on a device payment plan through an authorized agent are excluded.

The following table presents information about contract balances:

	At March 31,		At January 1,		At March 31,		At January 1,
(dollars in millions)	2022		2022		2021		2021
Contract asset	$	909	$	934	$	923	$	937
Contract liability(1)	7,504		7,229		5,783		5,598

(1) Revenue recognized related to contract liabilities existing at January 1, 2022 and January 1, 2021 were $4.3 billion and $3.9 billion for the three months ended March 31, 2022 and March 31, 2021, respectively.

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

	At March 31,		At December 31,
(dollars in millions)	2022		2021
Assets
Prepaid expenses and other	$	720	$	739
Other assets	189		195
Total	$	909	$	934
Liabilities
Other current liabilities	$	6,222	$	6,053
Other liabilities	1,282		1,176
Total	$	7,504	$	7,229

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.

10

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

	At March 31,		At December 31,
(dollars in millions)	2022		2021
Assets
Prepaid expenses and other	$	2,454	$	2,432
Other assets	2,262		2,259
Total	$	4,716	$	4,691

For the three months ended March 31, 2022 and 2021, we recognized expense of $749 million and $765 million, 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 months ended March 31, 2022 or March 31, 2021.

Note 3. Acquisitions and Divestitures

Spectrum License Transactions

In February 2021, the FCC concluded Auction 107 for C-Band wireless spectrum. 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 payments 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 $7.7 billion. During the year ended December 31, 2021, we made payments of $1.3 billion primarily related to certain obligations for projected clearing costs. In January 2022, we made additional payments of $1.4 billion for obligations related to accelerated clearing incentives, which were accrued as of December 31, 2021. We expect to continue to make payments related to clearing cost and incentive payment obligations 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. In accordance with the FCC order, the clearing must be completed by December 2025. The carrying value of the wireless spectrum won in Auction 107 consists 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, as well as capitalized interest to the extent qualifying activities have occurred.

In March 2022, Verizon signed agreements with satellite operators in which operators agreed to clear C-Band spectrum in certain markets and frequencies ahead of the previously expected December 2023 timeframe. This early clearance, if successful, would accelerate Verizon's access to more spectrum in a number of key markets to support its 5G initiatives.

During the three months ended March 31, 2022 and 2021, we entered into and completed various other wireless license acquisitions for cash consideration of an insignificant amount and $90 million, respectively. We recognized a pre-tax loss in connection with the sale of certain wireless licenses during the three months ended March 31, 2021 of $223 million ($167 million after-tax).

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 leading provider of prepaid and value mobile services in the U.S. The transaction closed on November 23, 2021 (the Acquisition Date). The acquisition positions Verizon as the leading prepaid, value and premium wireless carrier by expanding Verizon’s portfolio, bringing enhanced access of our wireless network and comprehensive suite of mobility products and services to a new customer base.

In accordance with the terms of the TracFone Purchase Agreement, Verizon acquired all of TracFone's outstanding stock in exchange for approximately $3.5 billion in cash, net of cash acquired and working capital and other adjustments, subject to customary adjustments, 57,596,544 shares of Verizon common stock valued at approximately $3.0 billion, and up to an additional $650 million in future cash contingent consideration related to the achievement of certain performance measures and other commercial arrangements. The fair value of the Verizon common stock was determined on the basis of its closing market price on the Acquisition Date. The estimated fair value of the contingent consideration as of the Acquisition Date was approximately $542 million and represents a Level 3 measurement as defined in ASC 820, Fair Value Measurements and Disclosures. See Note 7 for additional information. The contingent consideration payable is based on the achievement of certain revenue and operational targets, measured over a two-year earn out period, as defined in the TracFone Purchase Agreement. Payments related to the contingent consideration are expected to begin in 2022 and continue through 2024.

11

The TracFone acquisition was accounted for as a business combination. The purchase consideration was preliminarily allocated to the assets acquired and liabilities assumed based on their fair values as of the Acquisition Date.

The following table summarizes the preliminary allocation of the consideration paid and payable to the identified assets acquired and liabilities assumed as of the Acquisition Date. The purchase price allocation is preliminary and is subject to revision as additional information about the fair value of the assets acquired and liabilities assumed, including related deferred income taxes, become available.

	November 23,		Measurement Period Adjustments(1)		Adjusted
(dollars in millions)	2021				Fair Value
Consideration:
Cash, net of cash acquired and working capital and other adjustments	$	3,491	$	—	$	3,491
Fair value of Verizon common stock (57,596,544 shares)	2,981		—		2,981
Fair value of contingent consideration to be paid	542		—		542
Total consideration	$	7,014	$	—	$	7,014
Assets acquired:
Current assets	$	1,370	$	(4)	$	1,366
Property, plant and equipment, net	96		(1)		95
Goodwill	3,723		30		3,753
Other intangible assets	4,374		—		4,374
Other assets	731		(3)		728
Total assets acquired	$	10,294	$	22	$	10,316
Liabilities assumed:
Current liabilities	1,433		32		1,465
Deferred income taxes	1,007		(10)		997
Other liabilities	840		—		840
Total liabilities assumed	$	3,280	$	22	$	3,302
Net assets acquired	$	7,014	$	—	$	7,014

(1) Adjustments to the fair value measurements reflect new information obtained about facts and circumstances that existed as of the Acquisition Date, that if known, would have affected the measurement of the amounts recognized as of that date. The most significant adjustments related to an increase in goodwill and deferred commission costs.

Other intangible assets include $2.3 billion related to customer relationships, $1.3 billion related to distribution relationships, $744 million related to trade names and $110 million related to acquired technology.

Goodwill is calculated as the difference between the Acquisition Date fair value of the consideration paid and payable and the fair value of the net assets acquired, representing future economic benefits that we expect to achieve as a result of the acquisition. The goodwill related to this acquisition is included within the Consumer segment.

Pursuant to the TracFone Purchase Agreement, América Móvil agreed to indemnify Verizon against pre-acquisition tax matters. As of the Acquisition Date, we have recorded uncertain tax liabilities and offsetting indemnification assets of $730 million, for the expected reimbursement of tax related matters that had not been resolved as of the Acquisition Date. The liabilities are presented in Other liabilities, and the indemnification assets are presented in Other assets, within our condensed consolidated balance sheets. We expect that any additional liabilities that may arise related to these indemnified matters would be indemnified and reimbursed by América Móvil.

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 $412 million, net of cash acquired.

The acquisition of Bluegrass was accounted for as a business combination. The consideration was allocated to the assets acquired and liabilities assumed based on their fair values as of the close of the acquisition. We recorded approximately $141 million of plant, property and equipment, $135 million of intangible assets and $92 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 the Consumer segment.

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Verizon Media Divestiture

On May 2, 2021, Verizon entered into a definitive agreement with an affiliate of Apollo Global Management Inc. (the Apollo Affiliate) pursuant to which we agreed to sell Verizon Media Group (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 Apollo Affiliate, and 10% of the fully-diluted common limited partnership units of the Apollo Affiliate.

On September 1, 2021, we completed the sale of Verizon Media. As of the close of the transaction, cash proceeds, the fair value of the non-convertible preferred limited partnership units of the Apollo Affiliate, and the fair value of 10% of the fully-diluted common limited partnership units of the Apollo Affiliate were $4.3 billion, $496 million, and $124 million, respectively.

On September 28, 2021, the Apollo Affiliate redeemed $100 million of Verizon’s preferred limited partnership interest. The carrying value of our preferred limited partnership interest as of March 31, 2022 was $396 million. Verizon’s 10% common interest in the Apollo Affiliate is accounted for as an equity method investment. The post-sale results of Verizon’s common ownership interest in the Apollo Affiliate are recorded through the equity method of accounting, within Corporate and other.

In connection with the closing of the transaction, we entered into Transition Services Agreements with the Apollo Affiliate, under which Verizon will continue to provide and receive specified administrative and technical services to support operations for up to 12 months and 18 months, respectively.

Under our ownership, Verizon Media generated revenues from contracts with customers under Topic 606 of approximately $1.9 billion during the three months ended March 31, 2021.

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

Wireless Licenses

The carrying amounts of our Wireless licenses are as follows:

	At March 31,		At December 31,
(dollars in millions)	2022		2021
Wireless licenses	$	148,083	$	147,619

At March 31, 2022 and 2021, approximately $53.2 billion and $53.5 billion, respectively, of wireless licenses were under development for commercial service for which we were capitalizing interest costs. We recorded approximately $452 million and $79 million of capitalized interest on wireless licenses for the three months ended March 31, 2022 and 2021, respectively. We recorded $35 million of capitalized interest on Deposits for wireless licenses during the three months ended March 31, 2021.

During the three months ended March 31, 2022, we renewed various wireless licenses in accordance with FCC regulations. The average renewal period for these licenses was 15 years.

Goodwill

Changes in the carrying amount of Goodwill are as follows:

(dollars in millions)	Consumer		Business		Other		Total
Balance at January 1, 2022	$	21,042	$	7,515	$	46	$	28,603
Acquisitions (1)	30		—		—		30
Reclassifications, adjustments and other	—		(2)		(2)		(4)
Balance at March 31, 2022	$	21,072	$	7,513	$	44	$	28,629

(1) The change in goodwill relates to the acquisition of TracFone. 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 March 31, 2022						At December 31, 2021
(dollars in millions)	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
Customer lists (5 to 13 years)	$	4,202	$	(1,281)	$	2,921	$	4,201	$	(1,126)	$	3,075
Non-network internal-use software (5 to 7 years)	21,659		(15,258)		6,401		21,310		(14,897)		6,413
Other (4 to 25 years)	2,984		(874)		2,110		2,974		(785)		2,189
Total	$	28,845	$	(17,413)	$	11,432	$	28,485	$	(16,808)	$	11,677

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The amortization expense for Other intangible assets was as follows: 

	Three Months Ended
(dollars in millions)	March 31,
2022	$	635
2021	629

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 2022	$	1,886
2023	2,329
2024	2,037
2025	1,848
2026	1,577
2027	842

Note 5. Debt

Significant Debt Transactions

Debt or equity financing may be needed to fund additional investments or development activities or to maintain an appropriate capital structure to ensure our financial flexibility.

The following tables show the significant transactions involving the senior unsecured debt securities of Verizon and its subsidiaries that occurred during the three months ended March 31, 2022.

Tender Offers

(dollars in millions)	Principal Amount Purchased		Cash Consideration(1)
Verizon and subsidiary 2.987% - 8.950% notes, due 2032 - 2056	$	5,032	$	5,587

(1) The total cash consideration includes the tender offer consideration, plus any accrued and unpaid interest to the date of purchase.

Repayments, Redemptions and Repurchases

(dollars in millions)	Principal Repaid/ Redeemed/ Repurchased		Amount Paid (1)
Verizon floating rate (London Inter-Bank Offered Rate + 1.000%) notes due 2022	$	1,094	$	1,097

(1) Represents amount paid to repay, redeem, or repurchase, including any accrued interest.

Issuances

(dollars in millions)	Principal Amount Issued		Net Proceeds (1)
Verizon 3.875% notes due 2052 (2)	$	1,000	$	982
Verizon 4.100% notes due 2055	655		650
Total	$	1,655	$	1,632

(1) Net proceeds were net of underwriting discounts and other issuance costs.

(2) An amount equal to the net proceeds from this green bond is expected to be used to fund, in whole or in part, certain renewable energy projects, including new and existing investments made by us during the period from December 1, 2021 through the maturity date of the green bond.

Short-Term Borrowing and Commercial Paper Program

In March 2022, we entered into a short-term uncommitted credit facility with the ability to borrow up to $1.0 billion. As of March 31, 2022, there was an outstanding balance of $1.0 billion under the facility.

During the three months ended March 31, 2022, we issued $9.4 billion in commercial paper and we repaid $5.6 billion of commercial paper. As of March 31, 2022, we had $3.8 billion of commercial paper outstanding. These transactions were recorded within Other, net cash flow from financing in our condensed consolidated statements of cash flows.

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Asset-Backed Debt

As of March 31, 2022, the carrying value of our asset-backed debt was $16.1 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 three months ended March 31, 2022, we completed the following ABS Notes transactions:

(dollars in millions)	Interest Rates %	Expected Weighted-average Life to Maturity (in years)	Principal Amount Issued
January 2022
Series 2022-1
A Senior class notes	1.040	1.49	$	799
B Junior class notes	1.270	1.49	64
C Junior class notes	1.390	1.49	37
Series 2022-2
A Senior class notes	1.530	2.99	710
B Junior class notes	1.830	2.99	57
C Junior class notes	2.010	2.99	33
Total			$	1,700

Under the terms of each series of ABS Notes, there is a revolving period of 18 months, two years or up to three years, as applicable, during which we may transfer additional receivables to the ABS Entity. During the three months ended March 31, 2022, we made aggregate principal repayments of $1.1 billion on ABS Notes that have entered the amortization period, including principal payments made in connection with clean-up redemptions.

ABS Financing Facility

In January 2022, we prepaid an aggregate of $515 million of the two loans outstanding in connection with the ABS Financing Facility entered into in December 2021. In March 2022, we borrowed an additional $1.9 billion under the loan agreements entered into in connection with such ABS Financing Facility. The aggregate outstanding balance under such ABS Financing Facility was $5.6 billion as of March 31, 2022.

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

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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 March 31,		At December 31,
(dollars in millions)	2022		2021
Assets
Accounts receivable, net	$	11,682	$	10,705
Prepaid expenses and other	1,432		1,094
Other assets	7,050		5,455
Liabilities
Accounts payable and accrued liabilities	10		10
Debt maturing within one year	6,357		5,024
Long-term debt	9,745		9,178

See Note 6 for additional information on device payment plan agreement receivables used to secure asset-backed debt.

Long-Term Credit Facilities

				At March 31, 2022
(dollars in millions)	Maturities	Facility Capacity		Unused Capacity		Principal Amount Outstanding
Verizon revolving credit facility (1)	2024	$	9,500	$	9,424	N/A
Various export credit facilities (2)	2024 - 2030	9,000		—		$	6,471
Total		$	18,500	$	9,424	$	6,471

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 three months ended March 31, 2022 and 2021, we drew down $2.0 billion and $470 million, respectively, 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 three months ended March 31, 2022 and 2021, we financed, primarily through alternative financing arrangements, the purchase of approximately $150 million and $117 million, respectively, of long-lived assets consisting primarily of network equipment. As of March 31, 2022 and December 31, 2021, $1.4 billion and $1.3 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 the three months ended March 31, 2022, we recorded debt extinguishment losses of $1.2 billion. The losses are recorded in Other income (expense), net in our condensed consolidated statements of income. The total losses are reflected as an adjustment to reconcile net income to Net cash provided by operating activities and the portion of the losses representing cash payments are reflected within Net cash provided by financing activities in our condensed consolidated statements of cash flows.

Guarantees

We guarantee the debentures of our operating telephone company subsidiaries. As of March 31, 2022, $717 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.

Debt Covenants

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

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Note 6. 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 sheets:

	At March 31, 2022
(dollars in millions)	Device payment plan agreement		Wireless service		Other receivables(1)		Total
Accounts receivable	$	13,385	$	4,790	$	6,299	$	24,474
Less Allowance for credit losses	456		145		258		859
Accounts receivable, net of allowance	$	12,929	$	4,645	$	6,041	$	23,615

(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.

Wireless Device Payment Plan Agreement Receivables

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

	At March 31,		At December 31,
(dollars in millions)	2022		2021
Device payment plan agreement receivables, gross	$	21,982	$	21,303
Unamortized imputed interest	(337)		(358)
Device payment plan agreement receivables, at amortized cost	21,645		20,945
Allowance (1)	(754)		(759)
Device payment plan agreement receivables, net	$	20,891	$	20,186
Classified in our condensed consolidated balance sheets:
Accounts receivable, net	$	12,929	$	12,783
Other assets	7,962		7,403
Device payment plan agreement receivables, net	$	20,891	$	20,186

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

Included in our device payment plan agreement receivables at both March 31, 2022 and December 31, 2021, are net device payment plan agreement receivables of $18.5 billion and $16.0 billion, respectively, which have been transferred to ABS Entities and continue to be reported in our condensed consolidated balance sheets. See Note 5 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 March 31, 2022 and December 31, 2021, the amount of the guarantee liability was $67 million and $77 million, 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 March 31, 2022 and December 31, 2021, the amount of trade-in liability was $372 million and $366 million, respectively.

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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 a credit class, each of which has specified offers of credit. This includes an account level spending limit and a maximum amount of credit allowed per device for Consumer customers or a required down payment percentage for Business customers.

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 less than 210 days as "new customers." The model for existing customers pools all Consumer and Business wireless customers based on 210 days or more as "existing customers."

The following table presents device payment plan agreement receivables, at amortized cost, as of March 31, 2022, by credit quality indicator and year of origination:

	Year of Origination(1)
(dollars in millions)	2022		2021		Prior to 2021		Total
New customers	$	751	$	2,098	$	364	$	3,213
Existing customers	4,222		11,853		2,357		18,432
Total	$	4,973	$	13,951	$	2,721	$	21,645

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

The data presented in the table above was last updated on March 31, 2022.

We assess indicators for the quality of our wireless service receivables portfolio as one overall pool. As of March 31, 2022, wireless service receivables, at amortized cost, originating in 2022 and 2021 were $4.6 billion and $226 million, 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.

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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 was as follows:

(dollars in millions)	Device Payment Plan Agreement Receivables(1)		Wireless Service Plan Receivables
Balance at January 1, 2022	$	759	$	130
Current period provision for expected credit losses	175		98
Write-offs charged against the allowance	(190)		(93)
Recoveries collected	10		10
Balance at March 31, 2022	$	754	$	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 and wireless service 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. 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 March 31,
(dollars in millions)	2022
Unbilled	$	20,468
Billed:
Current	963
Past due	214
Device payment plan agreement receivables, at amortized cost	$	21,645

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Note 7. Fair Value Measurements and Financial Instruments

Recurring Fair Value Measurements

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of March 31, 2022:

(dollars in millions)	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Prepaid expenses and other:
Fixed income securities	$	—	$	17	$	—	$	17
Interest rate swaps	—		70		—		70
Cross currency swaps	—		12		—		12
Foreign exchange forwards	—		4		—		4
Interest rate caps	—		41		—		41
Other assets:
Fixed income securities	—		370		—		370
Interest rate swaps	—		1		—		1
Cross currency swaps	—		370		—		370
Interest rate caps	—		139		—		139
Total	$	—	$	1,024	$	—	$	1,024
Liabilities:
Other current liabilities:
Interest rate swaps	$	—	$	86	$	—	$	86
Foreign exchange forwards	—		4		—		4
Cross currency swaps	—		322		—		322
Interest rate caps	—		41		—		41
Forward starting interest rate swaps	—		99		—		99
Contingent consideration	—		—		327		327
Other liabilities:
Interest rate swaps	—		1,787		—		1,787
Cross currency swaps	—		1,524		—		1,524
Interest rate caps	—		139		—		139
Contingent consideration	—		—		212		212
Total	$	—	$	4,002	$	539	$	4,541

(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.

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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, 2021:

(dollars in millions)	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Prepaid expenses and other:
Fixed income securities	$	—	$	18	$	—	$	18
Interest rate swaps	—		188		—		188
Cross currency swaps	—		9		—		9
Foreign exchange forwards	—		12		—		12
Other assets:
Fixed income securities	—		391		—		391
Interest rate swaps	—		285		—		285
Cross currency swaps	—		580		—		580
Interest rate caps	—		44		—		44
Total	$	—	$	1,527	$	—	$	1,527
Liabilities:
Other current liabilities:
Interest rate swaps	$	—	$	1	$	—	$	1
Forward starting interest rate swaps	—		302		—		302
Cross currency swaps	—		218		—		218
Contingent consideration	—		—		231		231
Other liabilities:
Interest rate swaps	—		665		—		665
Cross currency swaps	—		1,406		—		1,406
Interest rate caps	—		44		—		44
Contingent consideration	—		—		313		313
Total	$	—	$	2,636	$	544	$	3,180

(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 March 31, 2022 and December 31, 2021, the carrying amount of our investments without readily determinable fair values were $828 million and $808 million, respectively. During the three months ended March 31, 2022, there were insignificant adjustments due to observable price changes and there were no impairment charges. As of March 31, 2022, cumulative adjustments due to observable price changes and impairment charges were approximately $157 million and $63 million, respectively.

Verizon has a liability for contingent consideration related to its acquisition of TracFone, completed in November 2021. The fair value is calculated using a probability-weighted discounted cash flow model and represents a Level 3 measurement. Level 3 instruments include valuation based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. Subsequent to the Acquisition Date, at each reporting date, the contingent consideration liability is remeasured to fair value with changes recorded within Selling, general and administrative expense in our condensed consolidated statements of income.

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.

21

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, 2021	$	149,543	$	106,599	$	62,606	$	—	$	169,205
At March 31, 2022	152,009		95,790		62,912		—		158,702

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, swaptions 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 March 31,		At December 31,
(dollars in millions)	2022		2021
Interest rate swaps	$	25,571	$	19,779
Cross currency swaps	32,502		32,502
Forward starting interest rate swaps	600		1,000
Foreign exchange forwards	975		932

The following tables summarize the activities of our designated derivatives:

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021
Interest Rate Swaps:
Notional value entered into	$	6,655	$	1,000
Notional value settled	863		895
Gain recognized in Interest expense	—		1
Cross Currency Swaps:
Notional value entered into	—		6,214
Notional value settled	—		—
Pre-tax loss recognized in Other comprehensive income	(430)		(226)
Forward Starting Interest Rate Swaps:
Notional value entered into	—		—
Notional value settled	400		1,000
Pre-tax gain recognized in Other comprehensive income	128		400
Treasury Rate Locks:
Notional value entered into	—		4,650
Notional value settled	—		4,650
Pre-tax gain recognized in Other comprehensive income	—		251

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021
Other, net Cash Flows from Operating Activities:
Cash received for settlement of interest rate swaps	$	40	$	57
Cash paid for settlement of forward starting interest rate swaps	(76)		(237)
Cash received for settlement of treasury rate locks	—		251

22

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 March 31,		At December 31,
(dollars in millions)	2022		2021
Carrying amount of hedged liabilities	$	23,653	$	20,027
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities	(1,677)		(113)
Cumulative amount of fair value hedging adjustment remaining for which hedge accounting has been discontinued	553		575

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.

In April 2022, we entered into interest rate swaps for a total notional amount of $500 million.

Cross Currency Swaps

We have entered into cross currency swaps previously designated as cash flow hedges through March 31, 2022 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. A portion of the gains recognized in Other comprehensive income was reclassified to Interest expense to offset the related pre-tax foreign currency transaction gain or loss on the underlying hedged item. See Note 9 for additional information.

On March 31, 2022, we elected to de-designate our cross currency swaps and re-designated these swaps as fair value hedges. For these hedges, we have elected to exclude the change in fair value of the cross currency swap related to both time value and cross currency basis spread from the assessment of hedge effectiveness (the excluded components). Changes in the fair value of the cross currency swaps attributable to changes in the spot rate of the hedged item and changes in the recorded value of the hedged debt due to changes in spot rates are recorded in the same income statement line item. We present exchange gains and losses from the conversion of foreign currency denominated debt as part of Interest expense.

Changes in the fair value of cross currency swaps attributable to the excluded components are recorded to Other comprehensive income and will be amortized to Interest expense on a systematic and rational basis over the remaining life of the hedging instrument. The amount remaining in Accumulated other comprehensive loss amounting to $1.0 billion related to cash flow hedges on the date of transition will be reclassified to earnings when the hedged item is recognized in earnings or when it becomes probable that the forecasted transactions will not occur.

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. We recognize gains and losses resulting from interest rate movements in Other comprehensive income.

In April 2022, we settled forward starting interest rate swaps with a total notional amount of $600 million.

Treasury Rate Locks

We enter into treasury rate locks to mitigate our interest rate risk. We recognize gains and losses resulting from interest rate movements in Other comprehensive income.

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. The notional amount of Euro-denominated debt designated as a net investment hedge was €750 million as of both March 31, 2022 and December 31, 2021.

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.

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The following table summarizes the activity of our derivatives not designated in hedging relationships:

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021
Foreign Exchange Forwards:
Notional value entered into	$	2,646	$	3,525
Notional value settled	2,603		3,630
Pre-tax loss recognized in Other income (expense), net	(28)		(30)
Swaptions:
Notional value sold	1,000		—
Notional value settled	1,000		—
Pre-tax loss recognized in Interest expense	(33)		—

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.

Swaptions

We enter into swaptions to achieve a targeted mix of fixed and variable rate debt.

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 March 31, 2022, we did not hold any collateral and posted $0.3 billion of collateral related to derivative contracts under collateral exchange agreements, which were recorded as Prepaid expenses and other in our condensed consolidated balance sheets. At December 31, 2021, we held and posted $0.1 billion and an insignificant amount, respectively, of collateral related to derivative contracts under collateral exchange arrangements, which were recorded as Other current liabilities and Prepaid expenses and other, respectively, in our condensed consolidated balance sheets. 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.

Note 8. 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.

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Net Periodic Benefit Income

The following table summarizes the components of net periodic benefit income related to our pension and postretirement health care and life insurance plans:

	(dollars in millions)
	Pension				Health Care and Life
Three Months Ended March 31,	2022		2021		2022		2021
Service cost - Cost of services	$	58	$	65	$	19	$	24
Service cost - Selling, general and administrative expense	8		9		4		5
Service cost	66		74		23		29
Amortization of prior service cost (credit)	15		15		(203)		(223)
Expected return on plan assets	(297)		(309)		(7)		(6)
Interest cost	110		95		83		72
Other components	(172)		(199)		(127)		(157)
Total	$	(106)	$	(125)	$	(104)	$	(128)

The service cost component of net periodic benefit 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 mark-to-market adjustments, if any, are recorded in Other income (expense), net.

Severance Payments

During the three months ended March 31, 2022, we paid severance benefits of $94 million. During the three months ended March 31, 2022, we recorded pre-tax severance activity of an insignificant amount. At March 31, 2022, we had a remaining severance liability of $444 million, a portion of which includes future contractual payments to separated employees.

Employer Contributions

During the three months ended March 31, 2022 and March 31, 2021, 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, 2022. There have been no significant changes with respect to the nonqualified pension and other postretirement benefit plans contributions in 2022.

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Note 9. Equity and Accumulated Other Comprehensive 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 March 31,	2022			2021
	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		13,861			13,404
Other		13			4
Balance at end of period		13,874			13,408
Retained Earnings
Balance at beginning of period		71,993			60,464
Net income attributable to Verizon		4,580			5,245
Dividends declared ($0.6400, $0.6275 per share)		(2,692)			(2,602)
Other		10			—
Balance at end of period		73,891			63,107
Accumulated Other Comprehensive Income (Loss)
Balance at beginning of period attributable to Verizon		(927)			(71)
Foreign currency translation adjustments		(29)			(38)
Unrealized gain on cash flow hedges		207			909
Unrealized loss on marketable securities		(18)			(5)
Defined benefit pension and postretirement plans		(139)			(155)
Other comprehensive income		21			711
Balance at end of period attributable to Verizon		(906)			640
Treasury Stock
Balance at beginning of period	(93,635)	(4,104)		(153,304)	(6,719)
Employee plans	1,842	81		1,935	85
Shareholder plans	3	—		3	—
Balance at end of period	(91,790)	(4,023)		(151,366)	(6,634)
Deferred Compensation-ESOPs and Other
Balance at beginning of period		538			335
Restricted stock equity grant		109			99
Amortization		(150)			(152)
Balance at end of period		497			282
Noncontrolling Interests
Balance at beginning of period		1,410			1,430
Total comprehensive income		131			133
Distributions and other		(128)			(112)
Balance at end of period		1,413			1,451
Total Equity		$	85,175		$	72,683

Common Stock

Verizon did not repurchase any shares of Verizon common stock through its previously authorized share buyback program during the three months ended March 31, 2022. At March 31, 2022, 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 1.8 million shares of common stock issued from Treasury stock during the three months ended March 31, 2022.

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Accumulated Other Comprehensive Loss

The changes in the balances of Accumulated other comprehensive 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, 2022	$	(545)	$	(1,472)	$	16	$	1,074	$	(927)
Other comprehensive loss	(29)		(224)		(18)		—		(271)
Amounts reclassified to net income	—		431		—		(139)		292
Net other comprehensive income (loss)	(29)		207		(18)		(139)		21
Balance at March 31, 2022	$	(574)	$	(1,265)	$	(2)	$	935	$	(906)

    

The amounts presented above in Net other comprehensive income (loss) are net of taxes. The amounts reclassified to net income related to unrealized gain (loss) on cash flow hedges in the table above are included in Interest expense in our condensed consolidated statements of income. See Note 7 for additional information. The amounts reclassified to net income related to unrealized gain (loss) on marketable securities in the table above are included in Other income (expense), net in our condensed consolidated statements of income. 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 8 for additional information.

Note 10. Segment Information

Reportable Segments

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

Our segments and their principal activities consist of the following:

Segment	Description
Verizon Consumer Group	Our Consumer segment provides consumer-focused wireless and wireline communications services and products. Our wireless services are provided across one of the most extensive wireless networks in the U.S. under the Verizon brand, TracFone brands and through wholesale and other arrangements. We also provide fixed wireless access (FWA) broadband 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.
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 also provide FWA broadband 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.

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 primarily includes insurance captives, investments in unconsolidated businesses and development stage businesses that support our strategic initiatives, as well as unallocated corporate expenses, certain pension and other employee benefit related costs and interest and financing expenses. Corporate and other also includes the historical results of divested businesses, including Verizon Media, 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.

We completed the sale of Verizon Media on September 1, 2021. Refer to Note 3 for additional information on the sale of Verizon Media.

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The following table provides operating financial information for our two reportable segments:

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021
External Operating Revenues
Consumer
Service	$	18,126	$	16,566
Wireless equipment	5,374		4,192
Other	1,742		1,982
Total Consumer	25,242		22,740
Business
Small and Medium Business	3,037		2,825
Global Enterprise	2,460		2,557
Public Sector and Other	1,552		1,645
Wholesale	647		735
Total Business	7,696		7,762
Total reportable segments	$	32,938	$	30,502
Intersegment Revenues
Consumer	$	50	$	58
Business	13		19
Total reportable segments	$	63	$	77
Total Operating Revenues
Consumer	$	25,292	$	22,798
Business(1)	7,709		7,781
Total reportable segments	$	33,001	$	30,579
Operating Income
Consumer	$	7,319	$	7,519
Business	673		899
Total reportable segments	$	7,992	$	8,418

(1) Service and other revenues and Wireless equipment revenues included in our Business segment amounted to approximately $6.7 billion and $962 million, respectively, for the three months ended March 31, 2022, and approximately $7.0 billion and $752 million, respectively, for the three months ended March 31, 2021.

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

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021
Consumer	$	2,911	$	2,860
Business	295		276
Total Fios revenue	$	3,206	$	3,136

The following table provides Wireless service revenue for our reportable segments and includes intersegment activity:

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021
Consumer	$	15,217	$	13,684
Business	3,125		3,060
Total Wireless service revenue	$	18,342	$	16,744

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Reconciliation to Consolidated Financial Information

The reconciliation of segment operating revenues and operating income to consolidated operating revenues and operating income below includes the effects of the special items that the chief operating decision maker does not consider in assessing segment performance, primarily due to their nature.

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

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021
Total reportable segment operating revenues	$	33,001	$	30,579
Corporate and other	618		2,422
Eliminations	(65)		(134)
Total consolidated operating revenues	$	33,554	$	32,867

A reconciliation of the total reportable segment's operating income to consolidated income before provision for income taxes is as follows:

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021
Total reportable segment operating income	$	7,992	$	8,418
Corporate and other	(24)		(233)
Other components of net periodic benefit charges (Note 8)	(172)		(192)
Loss on spectrum licenses (Note 3)	—		(223)
Total consolidated operating income	7,796		7,770
Equity in earnings (losses) of unconsolidated businesses	(3)		8
Other income (expense), net	(924)		401
Interest expense	(786)		(1,101)
Income Before Provision For Income Taxes	$	6,083	$	7,078

No single customer accounted for more than 10% of our total operating revenues during the three months ended March 31, 2022 or 2021.

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

Note 11. 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.

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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 2022, 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 2022 will be a peak year of capital investment for us as we look to rapidly deploy C-Band spectrum, which, together with our industry leading millimeter wave deployment, 4G LTE network, fiber infrastructure and other network deployments, 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 March 31, 2022 and 2021

(dollars in millions)

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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 March 31, 2022 and 2021

———

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, TracFone Wireless, Inc. (TracFone) brands and through wholesale and other arrangements. We also provide fixed wireless access (FWA) broadband 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 months ended March 31, 2022 totaled $25.3 billion, representing an increase of 10.9% compared to the similar period in 2021. 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. We also provide FWA broadband 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 months ended March 31, 2022 totaled $7.7 billion, representing a decrease of 0.9% compared to the similar period in 2021. See "Segment Results of Operations" for additional information regarding our Business segment’s operating performance and selected operating statistics.

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Corporate and Other

Corporate and other primarily includes insurance captives, investments in unconsolidated businesses and development stage businesses that support our strategic initiatives, as well as unallocated corporate expenses, certain pension and other employee benefit related costs and interest and financing expenses. Corporate and other also includes the historical results of divested businesses, including Verizon Media Group (Verizon Media), 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. See "Consolidated Results of Operations" for additional information regarding Corporate and other results.

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 three months ended March 31, 2022, these investments included $5.8 billion for capital expenditures, inclusive of the C-Band capital expenditures described below. See "Cash Flows Used in Investing Activities" for additional information. Capital expenditures for 2022 are currently expected to be in the range of $16.5 billion to $17.5 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 $5.0 billion to $6.0 billion in 2022. As of March 31, 2022, our capital expenditures include approximately $1.5 billion 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. In January 2022, we successfully deployed C-Band spectrum, which as of March 31, 2022, covers approximately 113 million points of presence in the U.S. 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 transforming the architecture of our networks into our Intelligent Edge Network, providing improved efficiency and virtualization, increased automation and opportunities for edge computing services that will support 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 COVID-19 Pandemic

For a discussion of the impacts on and the risks to our business from the COVID-19 pandemic, refer to Part I, Item 1A "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2021. The COVID-19 pandemic continues to be dynamic, and challenges across the economy remain, including as a result of new virus variants. We remain committed to caring for the health and safety of our employees and our customers through these challenges while supporting the communities in which we operate. While we have not experienced a material impact on our business from these new variants to date, we cannot predict with certainty the ultimate impact they may have on our results of operations in the future, and will continue to monitor their evolution.

Impact of Inflation

As a result of the inflationary environment during the first quarter of 2022, we have begun to experience increases in our direct costs, including energy-related costs for our network operations and transportation, as well as labor-related costs, and we expect to see continued inflationary cost pressures throughout the remainder of the year. We believe that this inflationary environment and the resulting decline in real wages in the U.S. may begin to negatively impact the consumer and business landscape of our industry. While these developments have not had a material impact on our financial condition or results of operations to date, we cannot predict with certainty how long this altered environment will last or how it will impact our results in the near- or long-term.

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Consolidated Results of Operations

In this section, we discuss our overall results of operations and highlight special items, some of which 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
	March 31,				Increase/
(dollars in millions)	2022		2021		(Decrease)
Consumer	$	25,292	$	22,798	$	2,494	10.9	%
Business	7,709		7,781		(72)		(0.9)
Corporate and other	618		2,422		(1,804)		(74.5)
Eliminations	(65)		(134)		69		(51.5)
Consolidated Revenues	$	33,554	$	32,867	$	687	2.1

Consolidated revenues increased during the three months ended March 31, 2022 compared to the similar period in 2021, due to an increase in our Consumer segment, partially offset by decreases in our 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 decreased during the three months ended March 31, 2022 compared to the similar period in 2021, primarily due to the Verizon Media sale completed in September 2021. Verizon Media's total operating revenues were approximately $1.9 billion for the three months ended March 31, 2021. See Note 3 to the condensed consolidated financial statements for additional information on the Verizon Media sale.

Consolidated Operating Expenses

	Three Months Ended
	March 31,				Increase/
(dollars in millions)	2022		2021		(Decrease)
Cost of services	$	7,227	$	8,020	$	(793)	(9.9)	%
Cost of wireless equipment	7,123		5,502		1,621		29.5
Selling, general and administrative expense	7,172		7,401		(229)		(3.1)
Depreciation and amortization expense	4,236		4,174		62		1.5
Consolidated Operating Expenses	$	25,758	$	25,097	$	661	2.6

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 decreased during the three months ended March 31, 2022, compared to the similar period in 2021, primarily due to:

•a decrease in traffic acquisition costs of $729 million primarily related to the sale of Verizon Media;

•a decrease in personnel costs of $231 million primarily related to the sale of Verizon Media;

•a decrease in regulatory fees of $122 million due to a lower Federal Universal Service Fund (FUSF) rate;

•an increase in access costs of $182 million primarily due to the inclusion of TracFone results, partially offset by a decline in voice services; and

•an increase in rent expense of $117 million related to adding capacity to the networks to support demand and lease modifications for certain existing cell towers in April 2021 to support the build out of our 5G wireless network.

See Note 3 to the condensed consolidated financial statements for additional information on both the sale of Verizon Media and the acquisition of TracFone.

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Cost of Wireless Equipment

Cost of wireless equipment increased during the three months ended March 31, 2022, compared to the similar period in 2021, primarily due to:

•an increase of $863 million driven by a higher volume of wireless devices sold;

•an increase of $546 million due to the inclusion of TracFone results; and

•an increase of $365 million related to a shift to higher priced equipment in the mix of wireless devices sold.

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."

Selling, general and administrative expense decreased during the three months ended March 31, 2022, compared to the similar period in 2021, primarily due to:

•the $223 million loss resulting from agreements entered into to sell certain wireless licenses in 2021;

•a decrease of $123 million in other general expenses, primarily driven by rent and rebates;

•a decrease in personnel costs of $89 million primarily related to the sale of Verizon Media, partially offset by the inclusion of TracFone results;

•an increase in advertising expenses of $152 million primarily due to the inclusion of TracFone results and the launch of the 5G Ultra campaign; and

•an increase in the provision for credit losses of $105 million driven by volume and an increase in the expected loss rate partially as a result of change in device payment plan terms to 36 months.

See Note 3 to the condensed consolidated financial statements for additional information on loss on spectrum licenses, the sale of Verizon Media and the acquisition of TracFone.

Depreciation and Amortization Expense

Depreciation and amortization expense increased during the three months ended March 31, 2022, compared to the similar period in 2021. The increase was primarily due to the change in the mix of net depreciable and amortizable assets, including acquisition-related intangible assets, as well as deployment of C-Band.

Other Consolidated Results

Other Income (Expense), Net

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

	Three Months Ended
	March 31,				Increase/
(dollars in millions)	2022		2021		(Decrease)
Interest income	$	10	$	15	$	(5)	(33.3)	%
Other components of net periodic benefit income	299		356		(57)		(16.0)
Other, net	(1,233)		30		(1,263)		nm
Total	$	(924)	$	401	$	(1,325)	nm

nm - not meaningful

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 certain foreign exchange gains and losses.

Other income (expense), net changed during the three months ended March 31, 2022, compared to the similar period in 2021, primarily due to:

•the $1.2 billion early debt redemption costs in the first quarter of 2022 primarily in connection with tender offers.

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Interest Expense

	Three Months Ended
	March 31,						Increase/
(dollars in millions)	2022			2021			(Decrease)
Total interest costs on debt balances	$	1,308		$	1,275		$	33	2.6	%
Less capitalized interest costs	522			174			348		nm
Total	$	786		$	1,101		$	(315)	(28.6)
Average debt outstanding (1) (3)	$	153,502		$	135,967
Effective interest rate (2) (3)	3.4		%	3.8		%

(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

Total interest expense decreased during the three months ended March 31, 2022, compared to the similar period in 2021, primarily due to:

•an increase in capitalized interest costs as a result of qualifying activities performed on C-Band licenses; and

•relatively flat interest costs due to higher average debt balances with lower average interest rates as a result of our continuing focus on optimizing our debt footprint and total borrowing costs.

Provision for Income Taxes

	Three Months Ended
	March 31,						Increase/
(dollars in millions)	2022			2021			(Decrease)
Provision for income taxes	$	1,372		$	1,700		$	(328)	(19.3)	%
Effective income tax rate	22.6		%	24.0		%

The effective income tax rate is calculated by dividing the provision for income taxes by income before the provision for income taxes. The decrease in the effective income tax rate during the three months ended March 31, 2022, compared to the similar period in 2021, was primarily due to higher tax benefits from the favorable resolution of various income tax matters in the current period. The decrease in the provision for income taxes during the three months ended March 31, 2022, compared to the similar period in 2021, was primarily due to the decrease in income before income taxes as a result of early debt redemption costs in the current period.

Unrecognized Tax Benefits

Unrecognized tax benefits were $3.0 billion and $3.1 billion at March 31, 2022 and December 31, 2021, respectively. Interest and penalties related to unrecognized tax benefits were $538 million (after-tax) and $551 million (after-tax) at March 31, 2022 and December 31, 2021, 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 expense (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 expense to net income.

Consolidated Adjusted EBITDA is calculated by excluding from Consolidated EBITDA the effect of the following non-operational items: equity in earnings and losses of unconsolidated businesses and other income and expense, net, as well as the effect of certain 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

35

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.

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021
Consolidated Net Income	$	4,711	$	5,378
Add:
Provision for income taxes	1,372		1,700
Interest expense	786		1,101
Depreciation and amortization expense (1)	4,236		4,174
Consolidated EBITDA	$	11,105	$	12,353
Add (Less):
Other (income) expense, net (2)	$	924	$	(401)
Equity in (earnings) losses of unconsolidated businesses	3		(8)
Loss on spectrum licenses	—		223
Consolidated Adjusted EBITDA	$	12,032	$	12,167

(1) Includes Amortization of acquisition-related intangible assets, which was $238 million and $276 million during the three months ended March 31, 2022 and 2021, respectively. See "Special Items" for additional information.

(2) Includes Early debt redemption costs, which was $1.2 billion during the three months ended March 31, 2022. See "Special Items" and "Other Income (Expense), Net" for additional information.

The changes in Consolidated Net Income, Consolidated EBITDA and Consolidated Adjusted EBITDA in the table above during the three months ended March 31, 2022, compared to the similar period in 2021, were primarily a result of the factors described in connection with operating revenues and operating expenses.

Segment Results of Operations

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

Wireless retail prepaid connections are retail prepaid customer device connections as of the end of the period. Wireless retail prepaid connections are calculated by adding retail prepaid new connections in the period to prior period retail prepaid connections, and subtracting retail prepaid disconnects in the period.

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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.

Total broadband connections are the total number of connections to the internet using Fios internet services, Digital Subscriber Line (DSL), and Fixed Wireless Access (FWA) as of the end of the period. Total broadband connections are calculated by adding total broadband connections, net additions in the period to prior period total broadband 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.

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

Total broadband connections, net additions are the total number of additional total broadband connections, less the number of total broadband disconnects in the period. Total broadband connections, net additions in each period presented are calculated by subtracting the total broadband disconnects, net of certain adjustments, from the total broadband 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 device warranty and insurance 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

37

profitability on a more variable cost basis as it excludes 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 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. See Note 10 to the condensed consolidated financial statements for additional information.

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, TracFone brands and through wholesale and other arrangements. We also provide fixed wireless access (FWA) broadband 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.

Operating Revenues and Selected Operating Statistics

	Three Months Ended
	March 31,						Increase/
(dollars in millions, except ARPA)	2022			2021			(Decrease)
Service	$	18,126		$	16,569		$	1,557	9.4%
Wireless equipment	5,374			4,192			1,182		28.2
Other	1,792			2,037			(245)		(12.0)
Total Operating Revenues	$	25,292		$	22,798		$	2,494	10.9
Connections (‘000):(1)
Wireless retail postpaid	91,414			90,172			1,242		1.4
Wireless retail prepaid (2)	23,772			4,058			19,714		nm
Total wireless retail	115,186			94,230			20,956		22.2
Fios internet	6,596			6,300			296		4.7
Fios video	3,495			3,772			(277)		(7.3)
Total broadband	7,141			6,739			402		6.0
Net Additions in Period (‘000):(3)
Wireless retail postpaid	(126)			(326)			200		61.3
Wireless retail prepaid (2)	(80)			19			(99)		nm
Total wireless retail	(206)			(307)			101		32.9
Wireless retail postpaid phones	(292)			(225)			(67)		(29.8)
Total broadband	149			78			71		91.0
Churn Rate:
Wireless retail	1.51		%	1.11		%
Wireless retail postpaid	0.95		%	0.97		%
Wireless retail postpaid phones	0.77		%	0.77		%
Account Statistics:
Wireless retail postpaid ARPA	$	123.96		$	120.86		$	3.10	2.6
Wireless retail postpaid accounts (‘000) (1)	33,514			33,588			(74)		(0.2)
Wireless retail postpaid connections per account (1)	2.73			2.68			0.05		1.9

(1)As of end of period

(2)Acquisition of TracFone was completed on November 23, 2021. See Note 3 to the condensed consolidated financial statements for additional information.

(3)Includes certain adjustments

nm - not meaningful

Consumer’s total operating revenues increased during three months ended March 31, 2022, compared to the similar period in 2021, as a result of increases in Service revenue and Wireless equipment revenue, partially offset by a decrease in Other revenues.

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Service Revenue

Service revenue increased during the three months ended March 31, 2022, compared to the similar period in 2021, primarily driven by increases in Wireless service revenue and Fios service revenue.

Wireless service revenue increased $1.5 billion during the three months ended March 31, 2022 primarily due to:

•an increase of $1.1 billion, representing the net impact as a result of the acquisition of TracFone in the fourth quarter of 2021;

•an increase of $267 million in access revenues related to our postpaid plans driven by mobile security products included in certain protection packages, additional subscribers and migrations to higher priced plans, as well as growth related to content offerings and cloud services; and

•an increase of $83 million related to growth in non-retail service revenue.

For the three months ended March 31, 2022, Fios service revenue totaled $2.7 billion, representing an increase of $62 million, compared to the similar period in 2021, primarily resulting from an increase in Fios internet connections, reflecting increased demand for higher broadband speeds, partially offset by a decrease in Fios voice and video revenues.

Wireless Equipment Revenue

Wireless equipment revenue increased during the three months ended March 31, 2022, compared to the similar period in 2021, primarily due to:

•an increase of $571 million driven by a higher volume of wireless devices sold, partially offset by related promotions;

•an increase of $365 million related to a shift to higher priced equipment in the mix of wireless devices sold; and

•an increase of $245 million due to the inclusion of TracFone results.

Other Revenue

Other revenue includes non-service revenues such as regulatory fees, cost recovery surcharges, revenues associated with certain products included in our device protection offerings, leasing and interest on equipment financed under a device payment plan agreement when sold to the customer by an authorized agent.

Other revenue decreased during the three months ended March 31, 2022, compared to the similar period in 2021, primarily due to:

•a decrease of $184 million that resulted from an update to our device protection offering which increased the price of the bundled offering and changed the product mix within the offering such that a smaller amount of the overall device protection revenue is recognized in Other revenue; and

•a decrease of $36 million related to a lower FUSF rate and resulting surcharges.

Operating Expenses

	Three Months Ended
	March 31,				Increase/
(dollars in millions)	2022		2021		(Decrease)
Cost of services	$	4,446	$	4,000	$	446	11.2	%
Cost of wireless equipment	5,813		4,392		1,421		32.4
Selling, general and administrative expense	4,552		4,026		526		13.1
Depreciation and amortization expense	3,162		2,861		301		10.5
Total Operating Expenses	$	17,973	$	15,279	$	2,694	17.6

Cost of Services

Cost of services increased during the three months ended March 31, 2022, compared to the similar period in 2021, primarily due to:

•an increase in access costs of $284 million primarily due to the inclusion of TracFone results; and

•an increase in rent expense of $100 million related to adding capacity to the networks to support demand and lease modifications for certain existing cell towers in April 2021 to support the build out of our 5G wireless network.

Cost of Wireless Equipment

Cost of wireless equipment increased during the three months ended March 31, 2022, compared to the similar period in 2021, primarily due to:

•an increase of $706 million driven by a higher volume of wireless devices sold;

•an increase of $546 million due to the inclusion of TracFone results; and

•an increase of $223 million related to a shift to higher priced equipment in the mix of wireless devices sold.

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Selling, General and Administrative Expense

Selling, general and administrative expense increased during the three months ended March 31, 2022, compared to the similar period in 2021, primarily due to:

•an increase in personnel costs of $234 million primarily due to the inclusion of TracFone results;

•an increase in advertising expenses of $215 million primarily due to the inclusion of TracFone results and the launch of the 5G Ultra campaign; and

•an increase in provision for credit losses of $100 million driven by volume and an increase in the expected loss rate partially as a result of change in device payment plan terms to 36 months.

Depreciation and Amortization Expense

Depreciation and amortization expense increased during the three months ended March 31, 2022, compared to the similar period in 2021, driven by the change in the mix of total Verizon depreciable and amortizable assets and Consumer's usage of those assets.

Segment Operating Income and EBITDA 

	Three Months Ended
	March 31,						Increase/
(dollars in millions)	2022			2021			(Decrease)
Segment Operating Income	$	7,319		$	7,519		$	(200)	(2.7)	%
Add Depreciation and amortization expense	3,162			2,861			301		10.5
Segment EBITDA	$	10,481		$	10,380		$	101	1.0
Segment operating income margin	28.9		%	33.0		%
Segment EBITDA margin	41.4		%	45.5		%

The changes in the table above during the three months ended March 31, 2022, compared to the similar period in 2021, 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 also provide FWA broadband 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 is organized in four customer groups: Small and Medium Business, Global Enterprise, Public Sector and Other, and Wholesale.

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Operating Revenues and Selected Operating Statistics

	Three Months Ended
	March 31,				Increase/
(dollars in millions)	2022		2021		(Decrease)
Small and Medium Business	$	3,041	$	2,830	$	211	7.5	%
Global Enterprise	2,461		2,559		(98)		(3.8)
Public Sector and Other	1,552		1,646		(94)		(5.7)
Wholesale	655		746		(91)		(12.2)
Total Operating Revenues(1)	$	7,709	$	7,781	$	(72)	(0.9)
Connections (‘000):(2)
Wireless retail postpaid	27,809		26,621		1,188		4.5
Fios internet	361		339		22		6.5
Fios video	71		73		(2)		(2.7)
Total broadband	692		512		180		35.2
Net Additions in Period (‘000):(3)
Wireless retail postpaid	395		156		239		nm
Wireless retail postpaid phones	256		47		209		nm
Total broadband	80		3		77		nm
Churn Rate:
Wireless retail postpaid	1.34%		1.24%
Wireless retail postpaid phones	1.06%		1.01%

(1)Service and other revenues included in our Business segment amounted to approximately $6.7 billion and $7.0 billion for the three months ended March 31, 2022 and 2021, respectively. Wireless equipment revenues included in our Business segment amounted to approximately $962 million and $752 million for the three months ended March 31, 2022 and 2021, respectively.

(2)As of end of period

(3)Includes certain adjustments

nm - not meaningful

Business’s total operating revenues decreased during the three months ended March 31, 2022, compared to the similar period in 2021, as a result of decreases in Wholesale, Public Sector and Other and Global Enterprise revenues, partially offset by an increase in Small and Medium Business 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 the three months ended March 31, 2022, compared to the similar period in 2021, primarily due to:

•an increase in wireless equipment revenue of $152 million driven by a higher volume of devices sold and a shift to higher priced equipment in the mix of devices sold; and

•an increase in wireless service revenue of $76 million driven by an increase in the amount of wireless retail postpaid connections.

For the three months ended March 31, 2022, Fios revenues totaled $253 million, which represents an increase of $14 million compared to the similar period in 2021. The increase was primarily related to increases 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 the three months ended March 31, 2022, compared to the similar period in 2021, primarily due to:

•a decrease of $110 million in traditional data and voice communication services related to secular pressures in the marketplace;

•a decrease of $44 million due to a lower FUSF rate and resulting surcharges; and

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•an increase in wireless equipment revenue of $57 million driven by a higher volume of devices sold and a shift to higher priced equipment in the mix of devices sold.

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 decreased during the three months ended March 31, 2022, compared to the similar period in 2021, primarily due to:

•a decrease of $29 million in wireless service revenue primarily due to a lower level of distance learning connections, which peaked during the height of the COVID-19 pandemic in 2021;

•a decrease of $22 million in networking revenue and traditional voice communication services;

•a decrease of $14 million in customer premise equipment due to volume; and

•a decrease of $16 million related to a lower FUSF rate and resulting surcharges.

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 the three months ended March 31, 2022, compared to the similar period in 2021, primarily due to:

•a decrease of $91 million related to declines in traditional voice communication and network connectivity as a result of technology substitution and rationalization of international traffic, as well as a decrease in core data.

Operating Expenses

	Three Months Ended
	March 31,				Increase/
(dollars in millions)	2022		2021		(Decrease)
Cost of services	$	2,606	$	2,690	$	(84)	(3.1)	%
Cost of wireless equipment	1,310		1,111		199		17.9
Selling, general and administrative expense	2,059		2,068		(9)		(0.4)
Depreciation and amortization expense	1,061		1,013		48		4.7
Total Operating Expenses	$	7,036	$	6,882	$	154	2.2

Cost of Services

Cost of services decreased during the three months ended March 31, 2022, compared to the similar period in 2021, primarily due to:

•a decrease in access costs of $96 million resulting from a decline in voice services;

•a decrease in regulatory fees of $83 million related to a lower FUSF rate;

•an increase in other direct costs of $32 million related to professional services;

•an increase in building and facilities costs of $16 million due to higher utility rates; and

•an increase in rent expense of $18 million due to adding capacity to the networks to support demand.

Cost of Wireless Equipment

Cost of wireless equipment increased during the three months ended March 31, 2022, compared to the similar period in 2021, primarily due to:

•an increase of $158 million driven by a higher volume of wireless devices sold;

•an increase of $141 million related to a shift to higher priced equipment in the mix of wireless devices sold; and

•a decrease of $98 million due to a product recall undertaken for certain jetpack units in 2021.

Depreciation and Amortization Expense

Depreciation and amortization expense increased during the three months ended March 31, 2022, compared to the similar period in 2021, driven by the change in the mix of total Verizon depreciable and amortizable assets and Business usage of those assets.

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Segment Operating Income and EBITDA 

	Three Months Ended
	March 31,						Increase/
(dollars in millions)	2022			2021			(Decrease)
Segment Operating Income	$	673		$	899		$	(226)	(25.1)	%
Add Depreciation and amortization expense	1,061			1,013			48		4.7
Segment EBITDA	$	1,734		$	1,912		$	(178)	(9.3)
Segment operating income margin	8.7		%	11.6		%
Segment EBITDA margin	22.5		%	24.6		%

The changes in the table above during the three months ended March 31, 2022 compared to the similar period in 2021 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
	March 31,
(dollars in millions)	2022		2021
Amortization of acquisition-related intangible assets(1)
Depreciation and amortization expense	$	238	$	276
Early debt redemption costs
Other (income) expense, net	1,241		—
Loss on spectrum licenses
Selling, general and administrative expense	—		223
Total	$	1,479	$	499

(1) Certain amounts have been reclassified to conform to the current period presentation.

Consolidated Adjusted EBITDA (non-GAAP measure) presented in the section titled "Consolidated Net Income, Consolidated EBITDA and Consolidated Adjusted EBITDA" excludes all of the amounts listed above.

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

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021
Within Total Operating Expenses(1)	$	238	$	499
Within Other (income) expense, net	1,241		—
Total	$	1,479	$	499

(1) Certain amounts have been reclassified to conform to the current period presentation.

Amortization of Acquisition-Related Intangible Assets

During the three months ended March 31, 2022 and 2021, we recorded pre-tax amortization expense of $238 million and $276 million, respectively, related to acquired intangible assets.

Early Debt Redemption Costs

During the three months ended March 31, 2022, we recorded pre-tax early debt redemption costs of $1.2 billion primarily in connection with tender offers. See Note 5 to the condensed consolidated financial statements for additional information.

Loss on Spectrum Licenses

During the three months ended March 31, 2021, we recognized a pre-tax loss of $223 million as a result of signing two agreements to sell certain wireless licenses. See Note 3 to the condensed consolidated financial statements for additional information.

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Consolidated Financial Condition

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021		Change
Cash Flows Provided By (Used In)
Operating activities	$	6,821	$	9,694	$	(2,873)
Investing activities	(7,995)		(49,653)		41,658
Financing activities	245		27,956		(27,711)
Decrease in cash, cash equivalents and restricted cash	$	(929)	$	(12,003)	$	11,074

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 over the next 12 months and beyond.

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.

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 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.

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 $2.9 billion during the three months ended March 31, 2022, compared to the similar period in 2021, primarily due to changes in working capital driven by impacts from increased inventory levels to manage the supply chain, as well as a change in receivables due to an increase in activation volumes. This decrease was further driven by a decrease in earnings. As a result of prior years' discretionary contributions and the fact that actual asset returns have been higher than expected through 2021, we expect that there will be no required pension funding through 2031, 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 three months ended March 31, 2022 and 2021 were $5.8 billion and $4.5 billion, respectively. Capital expenditures increased approximately $1.3 billion during the three months ended March 31, 2022, compared to the similar period in 2021, primarily due to increased focus on 5G technology deployment.

Acquisitions of Wireless Licenses

During the three months ended March 31, 2021, we paid approximately $44.6 billion for spectrum licenses in connection with Auction 107. During the three months ended March 31, 2022, we made additional payments of $1.4 billion for obligations related to accelerated clearing incentives associated with the auction.

During the three months ended March 31, 2022 and 2021, we recorded capitalized interest related to wireless licenses of $452 million and $114 million, respectively.

During the three months ended March 31, 2022 and 2021, we entered into and completed various other wireless license acquisitions for cash consideration of an insignificant amount and $90 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 (Bluegrass), 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 $412 million, net of cash acquired.

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Cash Flows Provided By 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 three months ended March 31, 2022, net cash provided by financing activities was $245 million. During the three months ended March 31, 2021, net cash provided by financing activities was $28.0 billion.

During the three months ended March 31, 2022, our net cash provided by financing activities was primarily driven by proceeds from long-term borrowings of $3.6 billion, proceeds from asset-backed long-term borrowings of $3.5 billion and net proceeds of $4.0 billion from other financing activities. These proceeds were partially offset by repayments, redemptions and repurchases of long-term borrowings and finance lease obligations of $6.6 billion, cash dividends of $2.7 billion and repayments of asset-backed long-term borrowings of $1.7 billion.

At March 31, 2022, our total debt of $153.4 billion included unsecured debt of $137.3 billion and secured debt of $16.1 billion. At December 31, 2021, our total debt of $150.9 billion included unsecured debt of $136.7 billion and secured debt of $14.2 billion. During the three months ended March 31, 2022 and 2021, our effective interest rate was 3.4% and 3.8%, respectively. See Note 5 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 5 to the condensed consolidated financial statements for additional information.

Long-Term Credit Facilities

				At March 31, 2022
(dollars in millions)	Maturities	Facility Capacity		Unused Capacity		Principal Amount Outstanding
Verizon revolving credit facility (1)	2024	$	9,500	$	9,424	N/A
Various export credit facilities (2)	2024 - 2030	9,000		—		$	6,471
Total		$	18,500	$	9,424	$	6,471

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 three months ended March 31, 2022 and 2021, we drew down $2.0 billion and $470 million, respectively, 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.

Other, Net

Other, net financing activities during the three months ended March 31, 2022 includes $3.8 billion in net proceeds from commercial paper, $1.0 billion in proceeds from a short-term uncommitted credit facility 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 $2.7 billion and $2.6 billion in cash dividends during the three months ended March 31, 2022 and 2021, 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

45

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 March 31, 2022 totaled $1.7 billion, a $1.3 billion decrease compared to December 31, 2021, primarily as a result of the factors discussed above.

Restricted cash totaled $1.6 billion and $1.2 billion as of March 31, 2022 and December 31, 2021, respectively, 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. The increase of $331 million was primarily driven by the completion of two asset-backed debt transactions during the three months ended March 31, 2022.

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 capital expenditures 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:

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021		Change
Net cash provided by operating activities	$	6,821	$	9,694	$	(2,873)
Less Capital expenditures (including capitalized software)	5,821		4,494		1,327
Free cash flow	$	1,000	$	5,200	$	(4,200)

The decrease in free cash flow during the three months ended March 31, 2022, compared to the similar period in 2021, is a reflection of the decrease in operating cash flows and the increase in capital expenditures, both of which are discussed above.

Other Future Obligations

As of March 31, 2022, Verizon had 20 renewable energy purchase agreements (REPAs) with third parties. Each of the REPAs is based on the expected operation of a renewable energy-generating facility and has a fixed price term ranging from 12 to 18 years following the facility's entry into commercial operation. Three of the facilities have entered into commercial operation, with the remainder generally expected to enter into commercial operation at various times prior to 2025. The REPAs generally are expected to be financially settled based on the prevailing market price as energy is generated by the facilities. Under the REPAs, we plan to purchase the energy generated by up to an aggregate of approximately 2.6 gigawatts of capacity across multiple states, including Arizona, Illinois, Indiana, Iowa, Maryland, New York, North Carolina, Ohio, Pennsylvania, Texas and West Virginia.

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.

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

46

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 March 31, 2022, we did not hold any collateral and posted $0.3 billion of collateral related to derivative contracts under collateral exchange agreements, which were recorded as Prepaid expenses and other in our condensed consolidated balance sheets. At December 31, 2021, we held and posted $0.1 billion and an insignificant amount, respectively, of collateral related to derivative contracts under collateral exchange arrangements, which were recorded as Other current liabilities and Prepaid expenses and other, respectively, in our condensed consolidated balance sheets. 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 7 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 March 31, 2022, approximately 74% 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 $405 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. The U.S. dollar LIBOR rates utilized in these transactions will cease publication after June 30, 2023, in accordance with recent U.S. and international regulatory guidance for reform. 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. In 2021, we began utilizing interest rates that are linked to the Secured Overnight Financing Rate as the benchmark rate for various floating rate transactions.

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 March 31, 2022, the fair value of the asset and liability of these contracts was $71 million and $1.9 billion, respectively. At December 31, 2021, the fair value of the asset and liability of these contracts was $473 million and $666 million, respectively. At March 31, 2022 and December 31, 2021, the total notional amount of the interest rate swaps was $25.6 billion and $19.8 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 March 31, 2022, the fair value of the liability of these contracts was $99 million. At December 31, 2021, the fair value of the liability of these contracts was $302 million. At March 31, 2022 and December 31, 2021, the total notional amount of the forward starting interest rate swaps was $600 million and $1.0 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 March 31, 2022 or December 31, 2021.

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. At March 31, 2022, our primary translation exposure was to the British Pound Sterling, Euro, Australian Dollar and Japanese Yen.

Cross Currency Swaps

We have entered into cross currency swaps 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. On March 31, 2022, we voluntarily elected to de-designate our cross currency swaps previously designated as cash flow hedges and re-designated the swaps as fair value hedges. At March 31, 2022, the fair value of the asset and liability of these contracts was $382 million and $1.8 billion, respectively. At December 31,

47

2021, the fair value of the asset and liability of these contracts was $589 million and $1.6 billion, respectively. At both March 31, 2022 and December 31, 2021, the total notional amount of the cross currency swaps was $32.5 billion.

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.

At March 31, 2022, the fair value of the asset and liability of these contracts was insignificant. At December 31, 2021, the fair value of the asset of these contracts was insignificant and there was no amount related to the liability of these contracts. At March 31, 2022 and December 31, 2021, the total notional amount of the foreign exchange forwards was $975 million and $932 million, 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 February 2021, the FCC concluded Auction 107 for C-Band wireless spectrum. 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 payments 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 $7.7 billion. During the year ended December 31, 2021, we made payments of $1.3 billion primarily related to certain obligations for projected clearing costs. In January 2022, we made additional payments of $1.4 billion for obligations related to accelerated clearing incentives, which were accrued as of December 31, 2021. We expect to continue to make payments related to clearing cost and incentive payment obligations 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. In accordance with the FCC order, the clearing must be completed by December 2025. The carrying value of the wireless spectrum won in Auction 107 consists 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. The carrying value also includes capitalized interest to the extent qualifying activities have occurred.

In March 2022, Verizon signed agreements with satellite operators in which operators agreed to clear C-Band spectrum in certain markets and frequencies ahead of the previously expected December 2023 timeframe. Our estimated costs relating to these agreements could reach $340 million. This early clearance, if successful, would accelerate Verizon's access to more spectrum in a number of key markets to support its 5G initiatives.

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

TracFone Wireless, Inc.

In September 2020, we entered into a purchase agreement (TracFone Purchase Agreement) with América Móvil to acquire TracFone, a leading provider of prepaid and value mobile services in the U.S. The transaction closed on November 23, 2021 (the Acquisition Date). In accordance with the terms of the TracFone Purchase Agreement, Verizon acquired all of TracFone's outstanding stock in exchange for approximately $3.5 billion in cash, net of cash acquired and working capital and other adjustments, subject to customary adjustments, 57,596,544 shares of Verizon common stock valued at approximately $3.0 billion, and up to an additional $650 million in future cash contingent consideration related to the achievement of certain performance measures and other commercial arrangements. The fair value of the Verizon common stock was determined on the basis of its closing market price on the Acquisition Date. The estimated fair value of the contingent consideration as of the Acquisition Date was approximately $542 million, and represents a Level 3 measurement. The contingent consideration payable is based on the achievement of certain revenue and operational targets, measured over a two-year earn out period, as defined in the TracFone Purchase Agreement. Payments related to the contingent consideration are expected to begin in 2022 and continue through 2024. See Note 3 to the condensed consolidated financial statements for additional information.

Bluegrass Cellular

In October 2020, we entered into a definitive agreement to acquire certain assets of 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 $412 million, net of cash acquired. See Note 3 to the condensed consolidated financial statements for additional information.

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Verizon Media Divestiture

On May 2, 2021, Verizon entered into a definitive agreement with an affiliate of Apollo Global Management Inc. (the Apollo Affiliate) 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 Apollo Affiliate, and 10% of the fully-diluted common limited partnership units of the Apollo Affiliate.

On September 1, 2021, we completed the sale of Verizon Media. As of the close of the transaction, cash proceeds, the fair value of the non-convertible preferred limited partnership units of the Apollo Affiliate, and the fair value of 10% of the fully-diluted common limited partnership units of the Apollo Affiliate were $4.3 billion, $496 million, and $124 million, respectively. 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 1. "Business" in our Annual Report on Form 10-K for the year ended December 31, 2021.

 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;

•damage to our infrastructure or disruption of our operations from natural disasters, extreme weather conditions or terrorist attacks and any resulting financial or reputational impact;

•the impact of public health crises, including 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 geopolitical factors, the COVID-19 pandemic or the potential impacts of global climate change;

•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, including inflation in the markets in which we operate;

•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;

•significant litigation and any resulting material expenses incurred in defending against lawsuits or paying awards or settlements;

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•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

•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 March 31, 2022.

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.

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.

There were no changes in the Company’s internal control over financial reporting during the first quarter 2022 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 11 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, 2021.

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 March 31, 2022. At March 31, 2022, 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
10a	Form of 2022 Performance Stock Unit Agreement pursuant to the 2017 Verizon Communications Inc. Long-Term Incentive Plan.
10b	Form of 2022 Restricted Stock Unit Agreement pursuant to the 2017 Verizon Communications Inc. Long-Term Incentive Plan.
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).

Pursuant to Regulation S-K, Item 601(b)(4)(iii)(A), certain instruments which define the rights of holders of long-term debt of Verizon and its consolidated subsidiaries are not filed herewith, and Verizon hereby agrees to furnish a copy of any such instrument to the SEC upon request.

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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: April 27, 2022	By	/s/	Anthony T. Skiadas
			Anthony T. Skiadas
			Senior Vice President and Controller
			(Principal Accounting Officer)

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EX-10.A

EXHIBIT 10a

VERIZON COMMUNICATIONS INC. LONG-TERM INCENTIVE PLAN

2022 PERFORMANCE STOCK UNIT AGREEMENT

AGREEMENT between Verizon Communications Inc. (“Verizon” or the “Company”) and you (the “Participant”) and your heirs and beneficiaries.

1. Purpose of Agreement. The purpose of this Agreement is to provide a grant of performance stock units (“PSUs”) to the Participant.

2. Agreement. This Agreement is entered into pursuant to the 2017 Verizon Communications Inc. Long-Term Incentive Plan (the “Plan”), and evidences the grant of a performance stock unit award in the form of PSUs pursuant to the Plan. In consideration of the benefits described in this Agreement, which Participant acknowledges are good, valuable and sufficient consideration, the Participant agrees to comply with the terms and conditions of this Agreement, including the Participant’s obligations and restrictions set forth in Exhibit A to this Agreement and the Participant’s non-competition, non-solicitation, confidentiality and other obligations and restrictions set forth in Exhibit B to this Agreement, both of which are incorporated into and are a part of the Agreement. The PSUs and this Agreement are subject to the terms and provisions of the Plan. By executing this Agreement, the Participant agrees to be bound by the terms and provisions of the Plan and this Agreement, including but not limited to the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement. In addition, the Participant agrees to be bound by the actions of the Human Resources Committee of Verizon’s Board of Directors or any successor thereto (the “Committee”), and any designee of the Committee (to the extent that such actions are exercised in accordance with the terms of the Plan and this Agreement). If there is a conflict between the terms of the Plan and the terms of this Agreement, the terms of this Agreement shall control.

3. Contingency. The grant of PSUs is contingent on the Participant’s timely acceptance of this Agreement and satisfaction of the other conditions contained in it. Acceptance shall be through execution of the Agreement as set forth in paragraph 21. If the Participant does not accept this Agreement by the close of business on May 20, 2022, the Participant shall not be entitled to this grant of PSUs regardless of the extent to which the requirements in paragraph 5 (“Vesting”) are satisfied. In addition, to the extent a Participant is on a Company approved leave of absence, including but not limited to short-term disability leave, he or she will not be entitled to this grant of PSUs until such time as he or she returns to work with Verizon or a Related Company (as defined in paragraph 13) and accepts this Agreement within the time period established by the Company.

4. Number of Units. The Participant is granted the number of PSUs as specified in the Participant’s account under the 2022 PSU grant, administered by Fidelity Investments or any successor thereto (“Fidelity”). A PSU is a hypothetical share of Verizon’s common stock. The value of a PSU on any given date shall be equal to the closing price of Verizon’s common stock on the New York Stock Exchange (“NYSE”) as of such date. A Dividend Equivalent Unit (“DEU”) or fraction thereof shall be added to each PSU each time that a dividend is paid on Verizon’s common stock with respect to each dividend record date that occurs after the date of grant and prior to the payment of a PSU. The amount of each DEU shall be equal to the corresponding dividend paid on a share of Verizon’s common stock. The DEU shall be converted into PSUs or fractions thereof based upon the closing price of Verizon’s common stock traded on the NYSE on the dividend payment date of each declared dividend on Verizon’s common stock, and such PSUs or fractions thereof shall be added to the Participant’s PSU balance. DEUs that are credited will be subject to the same vesting, termination and other terms as the PSUs to which they relate. To the extent that Fidelity or the Company makes an error, including but not limited to an administrative error with respect to the number or value of the PSUs granted to the Participant under this Agreement, the DEUs credited to the Participant’s account or the amount of the final award payment, the Company or Fidelity specifically reserves the right to correct such error at any time and the Participant agrees that he or she shall be legally bound by any corrective action taken by the Company or Fidelity.

5. Vesting.

(a) General. The Participant shall vest in the PSUs to the extent provided in paragraph 5(b) (“Performance Requirement”) only if the Participant satisfies the requirements of paragraph 5(c) (“Three-Year Continuous Employment Requirement”), except as otherwise provided in paragraph 7 (“Early Cancellation/Accelerated Vesting of PSUs”).

(b) Performance Requirement.

(1) General. The number of PSUs granted to the Participant, as specified in the Participant’s account under the 2022 PSU grant, is referred to as the “Target Number of PSUs.” The vesting of one-third (1/3) of the Target Number of PSUs will be determined with reference to the adjusted earnings per share metric set forth in paragraph 5(b)(2) (the “Target Number of EPS PSUs”), the vesting of one-third (1/3) of the Target Number of PSUs will be determined with reference to the free cash flow metric set forth in paragraph 5(b)(3) (the “Target Number of FCF PSUs”), and the vesting of the remaining one-third (1/3) of the Target Number of PSUs will be determined with reference to the service and other revenue metric as provided in paragraph 5(b)(4) (the “Target Number of SOR PSUs”), in each case subject to adjustment based on a relative total shareholder return measure set forth in paragraph 5(b)(5). Notwithstanding anything in this paragraph 5(b), in all cases vesting remains subject to the requirements of paragraphs 5(c) and 7.

(2) Adjusted Earnings Per Share (EPS) Metric.

(A) The percentage of the Target Number of EPS PSUs that shall become eligible to vest will be based on Verizon’s EPS (as defined below) for the three-year period beginning January 1, 2022 and ending at the close of business on December 31, 2024 (the “Award Cycle”). Notwithstanding paragraph 5(c), no portion of the Target Number of EPS PSUs shall become eligible to vest unless the Committee determines that Verizon’s EPS for the Award Cycle is greater than or equal to $XX.XX. If the Committee determines that Verizon’s EPS for the Award Cycle is greater than or equal to $XX.XX, the percentage of the Target Number of EPS PSUs that shall become eligible to vest (plus any additional PSUs added with respect to DEUs credited on the Target Number of EPS PSUs over the Award Cycle) will equal the Verizon EPS Vested Percentage (as defined below). For example, if (a) the Participant is granted 1,000 PSUs, and (b) those PSUs are credited with an additional 200 PSUs as a result of DEUs paid over the Award Cycle, and (c) the Verizon EPS Vested Percentage is 125%, 500 PSUs shall become

eligible to vest based on EPS (which is the 1,000 PSUs + 200 PSUs from DEUs, times 1/3 to reflect the portion of the total PSUs that will become eligible to vest with reference to EPS, times the Verizon EPS Vested Percentage of 125%).

(B) “EPS” shall mean Verizon’s cumulative earnings per share, as such term is used in Verizon’s consolidated financial statements, over the Award Cycle adjusted to exclude the impact of special items, including, without limitation, the benefit of any repurchases of Verizon’s common stock under a share buyback program. The Committee will (to the extent necessary and without duplication) adjust such earnings per share to eliminate the financial impact of (i) acquisitions, divestitures or changes in business structure; (ii) changes in legal, tax, accounting or regulatory policy; and (iii) other items that are extraordinary in nature or not deemed to be in the ordinary course of business. The Committee’s determination of whether, and the extent to which, any such adjustment is necessary shall be final and binding.

(C) “Verizon EPS Vested Percentage” shall be the percentage (between 0% and 200%), which is based on Verizon’s EPS, determined as provided in the following table:

Verizon EPS	Verizon EPS Vested Percentage
Greater than or equal to $XX.XX	200%
$XX.XX	150%
$XX.XX	100%
$XX.XX	50%
Less than $XX.XX	0%

If Verizon’s EPS is less than $XX.XX but greater than $XX.XX, or less than $XX.XX but greater than $XX.XX, or less than $XX.XX but greater than $XX.XX, the Verizon EPS Vested Percentage will be interpolated on a straight-line basis between the respective levels (for example, if Verizon’s EPS is $XX.XX, the Verizon EPS Vested Percentage will be 75%).

(3) Free Cash Flow (FCF) Metric.

(A) The percentage of the Target Number of FCF PSUs that shall become eligible to vest will be based on Verizon’s FCF (as defined below) for the Award Cycle. Notwithstanding paragraph 5(c), no portion of the Target Number of FCF PSUs shall become eligible to vest unless the Committee determines that Verizon’s FCF for the Award Cycle is greater than or equal to $XX.XB. If the Committee determines that Verizon’s FCF for the Award Cycle is greater than or equal to $XX.XB, the percentage of the Target Number of FCF PSUs that shall become eligible to vest (plus any additional PSUs added with respect to DEUs credited on the Target Number of FCF PSUs over the Award Cycle) will equal the Verizon FCF Vested Percentage (as defined below). For example, if (a) the Participant is granted 1,000 PSUs, and (b) those PSUs are credited with an additional 200 PSUs as a result of DEUs paid over the Award Cycle, and (c) the Verizon FCF Vested Percentage is 125%, 500 PSUs shall become eligible to vest based on FCF (which is the 1,000 PSUs + 200 PSUs from DEUs, times 1/3 to reflect the portion of the total PSUs that will become eligible to vest with reference to FCF, times the Verizon FCF Vested Percentage of 125%).

(B) “FCF” shall mean (a) the sum of Verizon’s net cash provided by operating activities minus (b) capital expenditures, as such terms are used in Verizon’s consolidated financial statements, on a consolidated basis for the Award Cycle. The Committee will (to the extent necessary and without duplication) adjust such net cash less capital expenditures to eliminate the financial impact of (i) acquisitions, divestitures or changes in business structure; (ii) changes in legal, tax, accounting or regulatory policy; and (iii) other items that are extraordinary in nature or not deemed to be in the ordinary course of business. The Committee’s determination of whether, and the extent to which, any such adjustment is necessary shall be final and binding.

(C) “Verizon FCF Vested Percentage” is the percentage (between 0% and 200%), which is based on Verizon’s FCF, determined as provided in the following table:

Verizon FCF (in Billions)	Verizon FCF Vested Percentage
Greater than or equal to $XX.X	200%
$XX.X	150%
$XX.X	100%
$XX.X	50%
Less than $XX.X	0%

If the Verizon FCF is less than $XX.XB but greater than $XX.XB, or less than $XX.XB but greater than $XX.XB, or less than $XX.XB but greater than $XX.XB, the Verizon FCF Vested Percentage will be interpolated on a straight-line basis between the respective levels (for example, if the Verizon FCF is $XX.XB, the Verizon FCF Vested Percentage will be 75%).

(4) Service and Other Revenue (SOR) Metric.

(A) The percentage of the Target Number of SOR PSUs that shall become eligible to vest will be based on Verizon’s SOR (as defined below) for the three-year period beginning January 1, 2022 and ending at the close of business on December 31, 2024 (the “Award Cycle”). Notwithstanding paragraph 5(c), no portion of the Target Number of SOR PSUs shall become eligible to vest unless the Committee determines that Verizon’s SOR for the Award Cycle is greater than or equal to $XXX.XB. If the Committee determines that Verizon’s SOR for the Award Cycle is greater than or equal to $XXX.XB, the percentage of the Target Number of SOR PSUs that shall become eligible to vest (plus any additional PSUs added with respect to DEUs credited on the Target Number of SOR PSUs over the Award Cycle) will equal the Verizon SOR Vested Percentage (as defined below).

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For example, if (a) the Participant is granted 1,000 PSUs, and (b) those PSUs are credited with an additional 200 PSUs as a result of DEUs paid over the Award Cycle, and (c) the Verizon SOR Vested Percentage is 125%, 500 PSUs shall become eligible to vest based on SOR (which is the 1,000 PSUs + 200 PSUs from DEUs, times 1/3 to reflect the portion of the total PSUs that will become eligible to vest with reference to SOR, times the Verizon SOR Vested Percentage of 125%).

(B) “Verizon SOR Vested Percentage” shall be the percentage (between 0% and 200%), which is based on Verizon’s SOR, determined as provided in the following table:

Verizon SOR (in Billions)	Verizon SOR Vested Percentage
Greater than or equal to $XXX.X	200%
$XXX.X	150%
$XXX.X	100%
$XXX.X	50%
Less than $XXX.X	0%

If the Verizon SOR is less than $XXX.XB but greater than $XXX.XB, or less than $XXX.XB but greater than $XXX.XB, or less than $XXX.XB but greater than $XXX.XB, the Verizon SOR Vested Percentage will be interpolated on a straight-line basis between the respective levels (for example, if the Verizon SOR is $XXX.XB, the Verizon SOR Vested Percentage will be 75%).

(C) “SOR” or “Service and Other Revenue” shall mean Verizon's cumulative revenue generated from Verizon’s wireless and wireline businesses, excluding revenue related to wireless equipment, as such terms are used in Verizon’s consolidated financial statements, on a consolidated basis over the Award Cycle. The Committee will (to the extent necessary and without duplication) adjust such revenue to eliminate the financial impact of (i) acquisitions, divestitures or changes in business structure; (ii) changes in legal, tax, accounting or regulatory policy; and (iii) other items that are extraordinary in nature or not deemed to be in the ordinary course of business. The Committee’s determination of whether, and the extent to which, any such adjustment is necessary shall be final and binding.

(5)    TSR Modifier.

(A) The total number of PSUs that will become vested will range from 0 to 200% of the Target Number of PSUs and will equal the sum of the Target Number of EPS PSUs that are eligible to vest pursuant to paragraph 5(b)(2), plus the Target Number of FCF PSUs that are eligible to vest pursuant to paragraph 5(b)(3), plus the Target Number of SOR PSUs that are eligible to vest pursuant to paragraph 5(b)(4), as modified by Verizon’s TSR Modifier Percentage pursuant to this paragraph 5(b)(5). For example, if (a) the total number of PSUs that is eligible to become vested with reference to EPS under paragraph 5(b)(2) is 500 PSUs, (b) the total number of PSUs that is eligible to become vested with reference to FCF under paragraph 5(b)(3) is 500 PSUs, (c) the total number of PSUs that is eligible to become vested with reference to SOR under paragraph 5(b)(4) is 500 PSUs, and (d) the Verizon TSR Modifier Percentage is 115% (which means that the Verizon TSR Percentile Ranking was the 65th percentile for the Award Cycle), 1,725 PSUs shall become vested under paragraph 5(b) (which is 500 PSUs + 500 PSUs + 500 PSUs, times 1.15 to reflect the Verizon TSR Modifier Percentage of 115%).

(B) “Verizon TSR Modifier Percentage” shall be the percentage, which is based on the Verizon TSR Percentile Ranking, determined as provided in the following table:

Verizon TSR Percentile Ranking	Verizon TSR Modifier Percentage
The 75th percentile or greater	125%
The 50th percentile	100% (no modification)
The 25th percentile or lower	75%

If the Verizon TSR Percentile Ranking is less then 75th percentile but greater than the 50th percentile, or less than the 50th percentile but greater than the 25th percentile, the Verizon TSR Modifier Percentage will be interpolated on a straight-line basis between the respective levels (for example, if the Verizon TSR Percentile Ranking is the 65th percentile, the Verizon TSR Modifier Percentage will be 115%).

(C) “Verizon TSR Percentile Ranking” shall be the percentile ranking of Verizon’s TSR relative to the TSRs of the companies comprising the Comparison Group. The Committee shall determine the Verizon TSR Percentile Ranking for the Award Cycle and its determination shall be final and binding.

(D) “TSR” or “Total Shareholder Return” shall mean the change in the price of a share of common stock from the beginning of a period until the end of the applicable period, adjusted to reflect the reinvestment of dividends (if any) and as may be necessary to take into account stock splits or other events similar to those described in Section 4.3 of the Plan. The Committee shall determine TSR in accordance with its standard practice and its determinations shall be final and binding.

(E) “Comparison Group” shall mean the companies in the S&P 100 Index on the grant date of the PSUs. The Committee will make adjustments to the Comparison Group to preserve the intended incentives of this Agreement for any changes to the members of the Comparison Group, including, without limitation, the common stock of a member ceasing to be publicly traded or in the event a member of the Comparison Group merges or is otherwise involved in a business combination or becomes bankrupt or insolvent, in each case, during the Award Cycle.

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(c) Three-Year Continuous Employment Requirement. Except as otherwise determined by the Committee, or except as otherwise provided in paragraph 7 (“Early Cancellation/Accelerated Vesting of PSUs”), the PSUs shall vest only if the Participant is continuously employed by the Company or a Related Company (as defined in paragraph 13) from the date the PSUs are granted through the end of the Award Cycle.

(d) Transfer. Transfer of employment from Verizon to a Related Company, from a Related Company to Verizon, or from one Related Company to another Related Company shall not constitute a separation from employment hereunder, and service with a Related Company shall be treated as service with the Company for purposes of the three-year continuous employment requirement in paragraph 5(c). If the Participant transfers employment pursuant to this paragraph 5(d), the Participant will still be required to satisfy the definition of “Full Retirement” or “Early Retirement” under paragraph 7 of this Agreement in order to be eligible for the accelerated vesting provisions in connection with a “Full Retirement” or “Early Retirement”, as applicable.

6. Payment. All payments under this Agreement shall be made in shares of Verizon common stock. Subject to paragraph 7(a) or 7(b), as soon as practicable after the end of the Award Cycle (but in no event later than March 15, 2025), the number of PSUs that vested (minus any withholding for taxes) shall be paid to the Participant. The number of shares that shall be paid (plus withholding for taxes) shall equal the number of PSUs that vested pursuant to paragraph 5(b). If the Participant dies before any payment due hereunder is made, such payment shall be made to the Participant’s beneficiary, as designated under paragraph 11. Once a payment has been made with respect to a PSU, the PSU shall be cancelled; however, all other terms of the Agreement, including but not limited to the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement, shall remain in effect. Any PSU that does not vest for the Award Cycle (whether due to failure to achieve the applicable performance condition or otherwise, and subject to earlier termination pursuant to paragraph 7) shall terminate and be cancelled as of the last day of the Award Cycle without payment of any consideration by Verizon or any other action by the Participant.

7. Early Cancellation/Accelerated Vesting of PSUs. Notwithstanding the provisions of paragraph 5, PSUs may vest or be forfeited before the end of the Award Cycle or may be forfeited before the payment date as follows:

(a) Termination for Cause. If the Participant’s employment by the Company or a Related Company is terminated by the Company or a Related Company for Cause (as defined below) at any time prior to the date that the PSUs are paid pursuant to paragraph 6, the PSUs (whether vested or not) shall automatically terminate and be cancelled as of the applicable termination date without payment of any consideration by the Company and without any other action by the Participant.

(b) Voluntary Separation On or Before December 31, 2024 for any Reason other than Full Retirement or Early Retirement. If the Participant separates from employment on or before December 31, 2024 for any reason other than as specified in paragraph 4(c) below, the PSUs shall automatically terminate and be cancelled as of the applicable termination date without payment of any consideration by the Company and without any other action by the Participant.

(c)    Full Retirement, Early Retirement, Involuntary Termination Without Cause or Termination Due to Death or Disability.

(1) If the Participant ceases to be employed by the Company or a Related Company either (A) by reason of the Participant’s Full Retirement after June 30, 2022 and on or before December 31, 2024, or (B) due to the Participant’s death or Disability (as defined below) on or before December 31, 2024, then the Participant’s PSUs shall be subject to the vesting provisions set forth in paragraphs 5(a) and 5(b) (without prorating the award), except that the three-year continuous employment requirement set forth in paragraph 5(c) shall not apply.

(2) If the Participant ceases to be employed by the Company or a Related Company either (A) by reason of the Participant’s Full Retirement on or before June 30, 2022, or (B) by reason of the Participant’s Early Retirement, or an involuntary termination of the Participant’s employment by the Company or a Related Company without Cause on or before December 31, 2024, then the three-year continuous employment requirement set forth in paragraph 5(c) shall not apply to the Participant’s PSUs, and the Participant shall vest in a Pro-Rata Portion (as defined below) of the Participant’s PSUs that are eligible to become vested pursuant to paragraphs 5(a) and 5(b). For this purpose, “Pro-Rata Portion” means a fraction, the numerator of which is the total number of calendar days in the Award Cycle to have occurred through and including the date of the Participant’s separation from employment, and the denominator of which is the total number of calendar days in the Award Cycle.

(3) The continued eligibility for vesting of any PSUs pursuant to paragraph 7(c)(1) or 7(c)(2) is conditioned on (i) the Participant not committing a breach of any of the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement and (ii) the Participant executing, within the time prescribed by Verizon, a separation agreement satisfactory to Verizon, which separation agreement will include, among other terms, a general release waiving any claims the Participant may have against Verizon and any Related Company and non-competition and non-solicitation provisions that are no more restrictive than those contained in Exhibit B (otherwise, paragraph 7(b) shall apply).

(4) Any PSUs that vest pursuant to paragraph 7(c)(1) or 7(c)(2) shall be payable as soon as practicable after the end of the Award Cycle (but in no event later than March 15, 2025).

(d) Change in Control. If a Participant ceases to be employed by the Company or a Related Company due to an involuntary termination of the Participant’s employment by the Company or a Related Company without Cause within twelve (12) months following the occurrence of a Change in Control of Verizon (as defined in the Plan) and before the end of the Award Cycle, the PSUs shall vest and become payable (without prorating the award) by applying a Verizon EPS Vested Percentage of 100%, a Verizon FCF Vested Percentage of 100%, a Verizon SOR Vested Percentage of 100%, and a Verizon TSR Modifier Percentage of 100%, to the PSUs without regard to the performance requirements in paragraph 5(b) and the three-year continuous employment requirement in paragraph 5(c) shall be deemed satisfied in full as if the Participant’s employment with the Company or a Related Company had continued through the last day of the Award Cycle; provided however, all other terms of the Agreement, including but not limited to the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement, shall remain in effect. A Change in Control or an involuntary termination without Cause that occurs after the end of the Award Cycle shall have no effect on whether any PSUs vest or become payable under this paragraph 7(d). If both paragraph 7(c) and this paragraph 7(d) would otherwise apply in the circumstances, this

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paragraph 7(d) shall control. Any PSUs that vest pursuant to this paragraph 7(d) shall be payable as soon as practicable after the end of the Award Cycle (but in no event later than March 15, 2025).

(e) Vesting Schedule. Except and to the extent provided in paragraphs 7(c) and (d), nothing in this paragraph 7 shall alter the vesting schedule prescribed by paragraph 5.

(f) Defined Terms. For purposes of this Agreement, the following definitions shall apply:

(1) “Cause” means the occurrence of any of the following: (i) incompetence or negligence in the discharge of, or inattention to or neglect of or failure to perform, the duties and responsibilities assigned to the Participant; fraud, misappropriation or embezzlement; or a material breach of the Verizon Code of Conduct (as in effect at the relevant time) or any of the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement, all as determined by the Executive Vice President and Chief Human Resources Officer of Verizon (or her or his designee) in her or his discretion, or (ii) commission of any felony of which the Participant is finally adjudged guilty by a court of competent jurisdiction.

(2) “Disability” means the total and permanent disability of the Participant as defined by, or determined under, the Company’s long-term disability benefit plan.

(3) “Early Retirement” means with respect to a Participant to cease to be employed by the Company or a Related Company at a time that the Participant has attained (i) 55 years of age, but less than 65 years of age, and (ii) 5 or more years of vesting service, but less than 10 years of vesting service. For purposes of this definition, “years of vesting service” is used as defined under the applicable Verizon tax-qualified 401(k) savings plan.

(4) “Full Retirement” means with respect to a Participant: (i) to cease to be employed by the Company or a Related Company due to voluntary separation after the Participant has attained at least one of the following: (A) at least 15 years of vesting service and a combination of age and years of vesting service that equals or exceeds 75 points, (B) 65 years of age and 5 years of vesting service, or (C) 55 years of age and 10 years of vesting service; (ii) to cease to be employed by the Company or a Related Company due to an involuntary termination of the Participant’s employment by the Company or a Related Company without Cause after the Participant attained at least one of the following: (A) at least 15 years of vesting service and a combination of age and years of vesting service that equals or exceeds 73 points, (B) 65 years of age and 5 years of vesting service, or (C) 55 years of age and 10 years of vesting service; or (iii) retirement of the Participant under any other circumstances determined in writing by the Executive Vice President and Chief Human Resources Officer of Verizon (or her or his designee), provided that, in any case, the retirement was not occasioned by a discharge for Cause. For purposes of this definition, “years of vesting service” is used as defined under the applicable Verizon tax-qualified 401(k) savings plan. For clarity, a “point” for these purposes means one year of age or one year of vesting service.

8. Shareholder Rights. The Participant shall have no rights as a shareholder with respect to the PSUs until the date on which the Participant becomes the holder of record with respect to any shares of Verizon common stock to which this grant relates. Except as provided in the Plan or in this Agreement, no adjustment shall be made for dividends or other rights for which the record date occurs while the PSUs are outstanding.

9. Amendment of Agreement. Except to the extent required by law or specifically contemplated under this Agreement, neither the Committee nor the Executive Vice President and Chief Human Resources Officer of Verizon (or her or his designee) may, without the written consent of the Participant, change any term, condition or provision affecting the PSUs if the change would have a material adverse effect upon the PSUs or the Participant’s rights thereto. Nothing in the preceding sentence shall preclude the Committee or the Executive Vice President and Chief Human Resources Officer of Verizon (or her or his designee) from exercising administrative discretion with respect to the Plan or this Agreement, and the exercise of such discretion shall be final, conclusive and binding. This discretion includes, but is not limited to, corrections of any errors, including but not limited to any administrative errors, determining the total percentage of PSUs that become payable, and determining whether the Participant has been discharged for Cause, has a Disability, has attained Early Retirement or Full Retirement, has breached any of the Participant’s obligations or restrictions set forth in Exhibits A and B to this Agreement or has satisfied the requirements for vesting and payment under paragraphs 5 and 7 of this Agreement.

10. Assignment. The PSUs shall not be assigned, pledged or transferred except by will or by the laws of descent and distribution.

11. Beneficiary. The Participant shall designate a beneficiary in writing and in such manner as is acceptable to the Executive Vice President and Chief Human Resources Officer of Verizon (or her or his designee). Each such designation shall revoke all prior designations by the Participant with respect to the Participant’s benefits under the Plan and shall be effective only when filed by the Participant with the Company during the Participant’s lifetime. If the Participant fails to so designate a beneficiary, or if no such designated beneficiary survives the Participant, the Participant’s beneficiary shall be the Participant’s estate.

12. Other Plans and Agreements. Any payment received by the Participant pursuant to this Agreement shall not be taken into account as compensation in the determination of the Participant’s benefits under any pension, savings, life insurance, severance or other benefit plan maintained by Verizon or a Related Company. The Participant acknowledges that this Agreement or any prior PSU agreement shall not entitle the Participant to any other benefits under the Plan or any other plans maintained by the Company or a Related Company.

13. Company and Related Company. For purposes of this Agreement, “Company” means Verizon Communications Inc. “Related Company” means (a) any corporation, partnership, joint venture, or other entity in which Verizon Communications Inc. holds a direct or indirect ownership or proprietary interest of 50 percent or more at any time during the term of this Agreement, or (b) any corporation, partnership, joint venture, or other entity in which Verizon Communications Inc. holds a direct or indirect ownership or other proprietary interest of less than 50 percent at any time during the term of this Agreement but which, in the discretion of the Committee, is treated as a Related Company for purposes of this Agreement.

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14. Employment Status. The grant of the PSUs shall not be deemed to constitute a contract of employment for a particular term between the Company or a Related Company and the Participant, nor shall it constitute a right to remain in the employ of any such Company or Related Company. In addition, acceptance of this Agreement shall not be deemed to be a condition of continuing employment.

15. Withholding. The Participant acknowledges that he or she shall be responsible for any taxes that arise in connection with this grant of PSUs, and the Company shall make such arrangements as it deems necessary for withholding of any taxes it determines are required to be withheld pursuant to any applicable law or regulation.

16. Securities Laws. The Company shall not be required to make payment with respect to any shares of common stock prior to the admission of such shares to listing on any stock exchange on which the stock may then be listed and the completion of any registration or qualification of such shares under any federal or state law or rulings or regulations of any government body that the Company, in its discretion, determines to be necessary or advisable.

17. Committee Authority. The Committee shall have complete discretion in the exercise of its rights, powers, and duties under this Agreement. Any interpretation or construction of any provision of, and the determination of any question arising under, this Agreement shall be made by the Committee in its discretion, as described in paragraph 9. The Committee and the Audit Committee of Verizon’s Board of Directors may designate any individual or individuals to perform any of its functions hereunder and utilize experts to assist in carrying out their duties hereunder.

18. Successors. This Agreement shall be binding upon, and inure to the benefit of, any successor or successors of the Company and the person or entity to whom the PSUs may have been transferred by will, the laws of descent and distribution, or beneficiary designation. All terms and conditions of this Agreement imposed upon the Participant shall, unless the context clearly indicates otherwise, be deemed, in the event of the Participant’s death, to refer to and be binding upon the Participant’s heirs and beneficiaries.

19. Construction. In the event that any provision of this Agreement is held invalid or unenforceable, such provision shall be considered separate and apart from the remainder of this Agreement, which shall remain in full force and effect. In the event that any provision, including any of the Participant’s obligations or restrictions set forth in Exhibits A and B to this Agreement, is held to be unenforceable for being unduly broad as written, such provision shall be deemed amended to narrow its application to the extent necessary to make the provision enforceable according to applicable law and shall be enforced as amended. The PSUs are intended to not be subject to any tax, interest or penalty under Section 409A of the Code, and this Agreement shall be construed and interpreted consistent with such intent.

20. Defined Terms. Except where the context clearly indicates otherwise, all capitalized terms used herein shall have the definitions ascribed to them by the Plan, and the terms of the Plan shall apply where appropriate.

21. Execution of Agreement. The Participant shall indicate his or her consent and acknowledgment to the terms of this Agreement (including the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement) and the Plan by executing this Agreement pursuant to the instructions provided and otherwise shall comply with the requirements of paragraph 3. In addition, by consenting to the terms of this Agreement and the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement, the Participant expressly agrees and acknowledges that Fidelity may deliver all documents, statements and notices associated with the Plan and this Agreement to the Participant in electronic form. The Participant and Verizon hereby expressly agree that the use of electronic media to indicate confirmation, consent, signature, acceptance, agreement and delivery shall be legally valid and have the same legal force and effect as if the Participant and Verizon executed this Agreement (including the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement) in paper form.

22. Confidentiality. Except to the extent otherwise required by law, the Participant shall not disclose, in whole or in part, any of the terms of this Agreement. This paragraph 22 does not prevent the Participant from disclosing the terms of this Agreement to the Participant’s spouse or beneficiary or to the Participant’s legal, tax, or financial adviser, provided that the Participant take all reasonable measures to assure that the individual to whom disclosure is made does not disclose the terms of this Agreement to a third party except as otherwise required by law.

23. Applicable Law. Except as expressly provided in Exhibit B, the validity, construction, interpretation and effect of this Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to the conflicts of laws provisions thereof.

24. Notice. Any notice to the Company provided for in this Agreement shall be addressed to the Company in care of the Executive Vice President and Chief Human Resources Officer of Verizon at One Verizon Way, Basking Ridge, New Jersey 07920 and any notice to the Participant shall be addressed to the Participant at the current address shown on the payroll of the Company, or to such other address as the Participant may designate to the Company in writing. Any notice shall be delivered by hand, sent by telecopy, sent by overnight carrier, or enclosed in a properly sealed envelope as stated above, registered and deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service.

25. Dispute Resolution.

(a)    General. Except as otherwise provided in paragraph 26 below, all disputes arising under or related to the Plan or this Agreement and all claims in which a Participant seeks damages or other relief that relate in any way to PSUs or other benefits of the Plan are subject to the dispute resolution procedure described below in this paragraph 25.

(i)    For purposes of this Agreement, the term “Units Award Dispute” shall mean any claim against the Company or a Related Company, other than Units Damages Disputes described in paragraph (a)(ii) below, regarding (A) the interpretation of the Plan or this Agreement, (B) any of the terms or conditions of the PSUs issued under this Agreement, or (C) allegations of entitlement to PSUs or additional PSUs, or any other benefits, under the Plan or this Agreement; provided, however, that any dispute relating to the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement or to the forfeiture of an award as a result of a breach of any of the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement shall not be subject to the dispute resolution procedures provided for in this paragraph 25.

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(ii)     For purposes of this Agreement, the term “Units Damages Dispute” shall mean any claims between the Participant and the Company or a Related Company (or against the past or present directors, officers, employees, representatives, or agents of the Company or a Related Company, whether acting in their capacity as such or otherwise), that are related in any way to the Participant’s employment or former employment, including claims of alleged employment discrimination, wrongful termination, or violations of Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Age Discrimination in Employment Act, 42 U.S.C. § 1981, the Fair Labor Standards Act, the Family Medical Leave Act, the Sarbanes-Oxley Act, or any other U.S. federal, state or local law, statute, regulation, or ordinance relating to employment or any common law theories of recovery relating to employment, such as breach of contract, tort, or public policy claims, in which the damages or other relief sought relate in any way to PSUs or other benefits of the Plan or this Agreement.

(b)    Internal Dispute Resolution Procedure. All Units Award Disputes, and all Units Damages Dispute alleging breach of contract, tort, or public policy claims with respect to the Plan or this Agreement (collectively, “Plan Disputes”), shall be referred in the first instance to the Verizon Employee Benefits Committee (“EB Committee”) for resolution internally within Verizon. Except where otherwise prohibited by law, all Plan Disputes must be filed in writing with the EB Committee no later than one year from the date that the dispute accrues. Consistent with paragraph 25(c)(i) of this Agreement, all decisions relating to the enforceability of the limitations period contained herein shall be made by the arbitrator. To the fullest extent permitted by law, the EB Committee shall have full power, discretion, and authority to interpret the Plan and this Agreement and to decide all Plan Disputes brought under this Plan and Agreement. Determinations made by the EB Committee shall be final, conclusive and binding, subject only to review by arbitration pursuant to paragraph (c) below under the arbitrary and capricious standard of review. A Participant’s failure to refer a Plan Dispute to the EB Committee for resolution will in no way impair the Company’s right to compel arbitration or the enforceability of the waiver in paragraph 25(c)(ii).

(c)    Arbitration. All appeals from determinations by the EB Committee as described in paragraph (b) above, and any Units Damages Dispute, shall be fully and finally settled by arbitration administered by the American Arbitration Association (“AAA”) on an individual basis (and not on a collective or class action basis) before a single arbitrator pursuant to the AAA’s Commercial Arbitration Rules in effect at the time any such arbitration is initiated. Any such arbitration must be initiated in writing pursuant to the aforesaid rules of the AAA no later than one year from the date that the claim accrues, except where a longer limitations period is required by applicable law. However, a Participant’s failure to initiate arbitration within one year will in no way impair the Company’s right, exercised at its discretion, to compel arbitration or the enforceability of the waiver in paragraph 25(c)(ii). Decisions about the applicability of the limitations period contained herein shall be made by the arbitrator. A copy of the AAA’s Commercial Arbitration Rules may be obtained from Human Resources. The Participant agrees that the arbitration shall be held at the office of the AAA nearest the place of the Participant’s most recent employment by the Company or a Related Company, unless the parties agree in writing to a different location. All claims by the Company or a Related Company against the Participant, except for breaches of any of the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement, may also be raised in such arbitration proceedings.

(i)    The arbitrator shall have the authority to determine whether any dispute submitted for arbitration hereunder is arbitrable. The arbitrator shall decide all issues submitted for arbitration according to the terms of the Plan, this Agreement (except for breaches of any of the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement), existing Company policy, and applicable substantive Delaware State and U.S. federal law and shall have the authority to award any remedy or relief permitted by such laws. The final decision of the EB Committee with respect to a Plan Dispute shall be upheld unless such decision was arbitrary or capricious. The decision of the arbitrator shall be final, conclusive, not subject to appeal, and binding and enforceable in any applicable court.

(ii)     The Participant understands and agrees that, pursuant to this Agreement, with respect to Units Award Disputes and Units Damages Disputes, both the Participant and the Company or a Related Company waive any right to sue each other in a court of law or equity, to have a trial by jury, or to resolve disputes on a collective, or class, basis (except for breaches of any of the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement), and that the sole forum available for the resolution of Units Award Disputes and Units Damages Disputes is arbitration as provided in this paragraph 25. If an arbitrator or court finds that the arbitration provisions of this Agreement are not enforceable, both Participant and the Company or a Related Company understand and agree to waive their right to trial by jury of any Units Award Dispute or Units Damages Dispute. This dispute resolution procedure shall not prevent either the Participant or the Company or a Related Company from commencing an action in any court of competent jurisdiction for the purpose of obtaining injunctive relief to prevent irreparable harm pending and in aid of arbitration hereunder; in such event, both the Participant and the Company or a Related Company agree that the party who commences the action may proceed without necessity of posting a bond.

(iii) In consideration of the Participant’s agreement in paragraph (ii) above, the Company or a Related Company will pay all filing, administrative and arbitrator’s fees incurred in connection with the arbitration proceedings. If the AAA requires the Participant to pay the initial filing fee, the Company or a Related Company will reimburse the Participant for that fee. All other fees incurred in connection with the arbitration proceedings, including but not limited to each party’s attorney’s fees, will be the responsibility of such party.

(iv) The parties intend that the arbitration procedure to which they hereby agree shall be the exclusive means for resolving all Units Award Disputes and Units Damages Disputes (subject to the mandatory EB Committee procedure provided for in paragraph 25(b) above). Their agreement in this regard shall be interpreted as broadly and inclusively as reason permits to realize that intent.

(v) The Federal Arbitration Act (“FAA”) shall govern the enforceability of this paragraph 25. If for any reason the FAA is held not to apply, or if application of the FAA requires consideration of state law in any dispute arising under this Agreement or subject to this dispute resolution provision, the laws of the State of Delaware shall apply without giving effect to the conflicts of laws provisions thereof.

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(vi) To the extent an arbitrator determines that the Participant was not terminated for Cause and is entitled to the PSUs or any other benefits under the Plan pursuant to the provisions applicable to an involuntary termination without Cause, the Participant’s obligation to execute a separation agreement satisfactory to Verizon as provided under paragraph 7(c)(3) shall remain applicable in order to receive the benefit of any PSUs pursuant to this Agreement.

26. Additional Remedies. Notwithstanding the dispute resolution procedures, including arbitration, of paragraph 25 of this Agreement, and in addition to any other rights or remedies, whether legal, equitable, or otherwise, that each of the parties to this Agreement may have (including the right of the Company to terminate the Participant for Cause or to involuntarily terminate the Participant without Cause), the Participant acknowledges that—

(a) The Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement are essential to the continued goodwill and profitability of the Company and any Related Company;

(b) The Participant has broad-based skills that will serve as the basis for other employment opportunities that are not prohibited by the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement;

(c) When the Participant’s employment with the Company or any Related Company terminates, the Participant shall be able to earn a livelihood without violating any of the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement;

(d) Irreparable damage to the Company or any Related Company shall result in the event that the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement are not specifically enforced and that monetary damages will not adequately protect the Company and any Related Company from a breach of any of such Participant obligations and restrictions;

(e) If any dispute arises concerning the violation or anticipated or threatened violation by the Participant of any of the Participant’s obligations and restrictions set forth in Exhibits A or B to this Agreement, an injunction may be issued restraining such violation pending the determination of such controversy, and no bond or other security shall be required in connection therewith;

(f) The Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement shall continue to apply after any expiration, termination, or cancellation of this Agreement;

(g) The Participant’s breach of any of the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement, including, for example, any breach of the Participant’s non-competition, non-solicitation or confidentiality restrictions, shall result in the Participant’s immediate forfeiture of all rights and benefits, including all PSUs and DEUs, under this Agreement; and

(h) All disputes relating to the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement, including their interpretation and enforceability and any damages (including but not limited to damages resulting in the forfeiture of an award or benefits under this Agreement) that may result from the breach of such Participant obligations and restrictions shall not be subject to the dispute resolution procedures, including arbitration, of paragraph 25 of this Agreement, but shall instead be determined in a court of competent jurisdiction.

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Exhibit A - Participant’s Obligations

As part of the Agreement to which this Exhibit A is attached, you, the Participant, agree to the following obligations:

1. Effect of a Material Restatement of Financial Results; Recoupment; Company Policies Regarding Securities Transactions.

(a) General. Notwithstanding anything in this Agreement to the contrary, you agree that, with respect to all PSUs granted to you on or after January 1, 2007 and all short-term incentive awards made to you on or after January 1, 2007, to the extent the Company or any Related Company is required to materially restate any financial results based upon your willful misconduct or gross negligence while employed by the Company or any Related Company (and where such restatement would have resulted in a lower payment being made to you), you will be required to repay all previously paid or deferred (i) PSUs and (ii) short-term incentive awards that were provided to you during the performance periods that are the subject of the restated financial results, plus a reasonable rate of interest. For purposes of this paragraph, “willful misconduct” and “gross negligence” shall be as determined by the Committee. The Audit Committee of the Verizon Board of Directors shall determine whether a material restatement of financial results has occurred. If you do not repay the entire amount required under this paragraph, the Company may, to the extent permitted by applicable law, offset your obligation to repay against any source of income available to it, including but not limited to any money you may have in your nonqualified deferral accounts.

(b)Requirements of Recoupment Policy or Applicable Law. The repayment rights contained in paragraph 1(a) of Exhibit A shall be in addition to, and shall not limit, any other rights or remedies that the Company may have under law or in equity, including, without limitation, (i) any right that the Company may have under any Company recoupment policy that may apply to you, or (ii) any right or obligation that the Company may have regarding the clawback of “incentive-based compensation” under Section 10D of the Securities Exchange Act of 1934, as amended (as determined by the applicable rules and regulations promulgated thereunder from time to time by the U.S. Securities and Exchange Commission) or under any other applicable law. By accepting this award of PSUs, you agree and consent to the Company’s application, implementation and enforcement of any such Company recoupment policy (as it may be in effect from time to time) that may apply to you and any provision of applicable law relating to cancellation, rescission, payback or recoupment of compensation and expressly agree that the Company may take such actions as are permitted under any such policy (as applicable to you) or applicable law, such as the cancellation of PSUs and repayment of amounts previously paid or deferred with respect to any previously granted PSUs or short-term incentive awards, without further consent or action being required by you.

(c)Company Policies Regarding Securities Transactions. By accepting this award of PSUs, you agree to comply with all Company policies regarding trading in securities or derivative securities (including, without limitation, the Company’s policies prohibiting trading on material inside information regarding the Company or any business with which the Company does business, the Company’s policies prohibiting engaging in financial transactions that would allow you to benefit from a devaluation of the Company’s securities, and any additional policy that the Company may adopt prohibiting you from hedging your economic exposure to the Company’s securities), as such policies are in effect from time to time and for as long as such policies are applicable to you.

2. Definitions. Except where clearly provided to the contrary or as otherwise defined in this Exhibit A, all capitalized terms used in this Exhibit A shall have the definitions given to those terms in the Agreement to which this Exhibit A is attached.

3. Agreement to Participant’s Obligations. You shall indicate your agreement to the obligations and restrictions set forth in this Exhibit A in accordance with the instructions provided in the Agreement, and your acceptance of the Agreement shall include your acceptance of such obligations and restrictions. As stated in paragraph 21 of the Agreement, you and Verizon hereby expressly agree that the use of electronic media to indicate confirmation, consent, signature, acceptance, agreement and delivery shall be legally valid and have the same legal force and effect as if you and Verizon executed this Exhibit A in paper form.

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Exhibit B – Non-Competition, Non-Solicitation, Confidentiality and Other Obligations

As part of the Agreement to which this Exhibit B is attached, and in consideration for the grant of PSUs under the Agreement, you (the Participant), and the Company or any Related Company which employs or employed you, agree to the following obligations:

1. Non-competition.

(a) Prohibited Conduct. During the period of your employment with the Company or any Related Company, and for a period ending twelve (12) months following a termination of your employment for any reason with the Company or any Related Company, you shall not, without the prior written consent of the Executive Vice President and Chief Human Resources Officer of Verizon (or her or his designee):

(1) personally engage in Competitive Activities (as defined below); or

(2) work for, own, manage, operate, control, or participate in the ownership, management, operation, or control of, or provide consulting or advisory services to, any person, partnership, firm, corporation, institution or other entity engaged in Competitive Activities, or any company or person affiliated with such person, partnership, firm, corporation, institution or other entity engaged in Competitive Activities; provided that your purchase or holding, for investment purposes, of securities of a publicly traded company shall not constitute “ownership” or “participation in the ownership” for purposes of this paragraph so long as your equity interest in any such company is less than a controlling interest;

provided that this paragraph (a) shall not prohibit you from (i) being employed by, or providing services to, a consulting firm, provided that you do not personally engage in Competitive Activities or provide consulting or advisory services to any person, partnership, firm, corporation, institution or other entity engaged in Competitive Activities, or any person or entity affiliated with such person, partnership, firm, corporation, institution or other entity engaged in Competitive Activities, or (ii) engaging in the practice of law as an in-house counsel, sole practitioner or as a partner in (or as an employee of or counsel to) a corporation or law firm in accordance with applicable legal and professional standards. Exception (ii), however, does not apply to you engaging in Competitive Activities or providing services to any person, partnership, firm, corporation, institution or other entity engaged in Competitive Activities, wherein such engagement or services being provided are not primarily the practice of law.

(b) Competitive Activities. For purposes of the Agreement, to which this Exhibit B is attached,

“Competitive Activities” means any activities relating to products or services of the same or similar type as the products or services (1) which were or are sold (or, pursuant to an existing business plan, will be sold) to paying customers of the Company or any Related Company, and (2) for which you have any direct or indirect responsibility or any involvement to plan, develop, manage, market, sell, oversee, support, implement or perform, or had any such responsibility or involvement within your most recent 24 months of employment with the Company or any Related Company. Notwithstanding the previous sentence, an activity shall not be treated as a Competitive Activity if the geographic marketing area of such same or similar products or services does not overlap with the geographic marketing area for the applicable products and services of the Company or any Related Company.

2. Interference With Business Relations. During the period of your employment with the Company or any Related Company, and for a period ending twelve (12) months following a termination of your employment for any reason with the Company or any Related Company, you shall not, without the prior written consent of the Executive Vice President and Chief Human Resources Officer of Verizon (or her or his designee):

(a) recruit, induce or solicit, directly or indirectly, any employee of the Company or Related Company who was employed by the Company or any Related Company prior to or as of your termination date and whom you worked with or had contact with, or had confidential information about, while employed by the Company or any Related Company for employment or for retention as a consultant or service provider to any person or entity;

(b) hire or participate (with another person or entity) in the process of recruiting, soliciting or hiring, directly or indirectly, any person who is then an employee of the Company or any Related Company whom you worked with or had contact with, or had confidential information about, while employed by the Company or any Related Company, or provide, directly or indirectly, names or other information about any employees of the Company or Related Company whom you worked with or had contact with, or had confidential information about, while employed by the Company or any Related Company to any person or entity under circumstances that could lead to the use of any such information for purposes of recruiting, soliciting or hiring any such employee for any person or entity;

(c) interfere, or attempt to interfere, directly or indirectly, with any relationship of the Company or any Related Company with any of its employees, agents, or representatives;

(d) solicit or induce, or in any manner attempt to solicit or induce, directly or indirectly, any client, customer, or Prospect (defined below) of the Company or any Related Company (1) to cease being, or not to become, a customer of the Company or any Related Company, or (2) to divert any business of such customer or Prospect from the Company or any Related Company; or

(e) otherwise interfere with, disrupt, or attempt to interfere with or disrupt, directly or indirectly, the relationship, contractual or otherwise, between the Company or any Related Company and any of its customers, clients, Prospects, suppliers, vendors, service providers, developers, joint ventures, equity investments or partners, inventors, consultants, employees, agents, or representatives.

For purposes of this paragraph 2(d) and 2(e), “Prospect” shall mean any person or entity from whom or which any business was being solicited by Verizon or any Related Company within the most recent 12 month period of your employment.

3. Protection of Confidential Information. You shall at all times, including after any termination of your employment with the Company or any Related Company, preserve the confidentiality of all Confidential Information (defined below) of the Company or any Related Company, and you shall not use for the benefit of yourself or any person, other than the Company or a Related Company, or disclose to any person, except and to the extent that disclosure of such information is authorized under applicable laws or regulations (e.g., “whistleblower” laws such as 18 USC 1833(b) described below), any Confidential Information or trade secrets of the Company or any Related Company. “Confidential Information” means any information or data related to the Company or any Related Company, including information entrusted to the Company or a Related Company by others, which has not been fully disclosed to the public by the Company or a Related Company,

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which is treated as confidential or otherwise protected within the Company or any Related Company or is of value to competitors, such as: trade secrets; strategic or tactical business plans; undisclosed business, operational or financial data; ideas, processes, methods, techniques, systems, models, devices, programs, computer software, or related information; documents relating to regulatory matters or correspondence with governmental entities; information concerning any past, pending, or threatened legal dispute; pricing or cost data; the identity, reports or analyses of business prospects; business transactions (including those that are contemplated or planned); research data; personnel information or data; identities of suppliers to the Company or any Related Company or users or purchasers of the Company’s or Related Company’s products or services; the Agreement to which this Exhibit B is attached; and any other non-public information pertaining to or known by the Company or a Related Company, including confidential or non-public information of a third party that you know or should know the Company or a Related Company is obligated to protect. For the avoidance of doubt, any information that becomes publicly known through no fault of mine shall not be considered “Confidential Information” for purposes of this Agreement after it becomes publicly known. Section 18 USC 1833(b) provides that “An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that—(A) is made—(i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.” Nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by 18 U.S.C. § 1833(b).

4. Return Of Company Property; Ownership of Intellectual Property Rights. You agree that on or before termination of your employment for any reason with the Company or any Related Company, you shall return to the Company all property owned by the Company or any Related Company or in which the Company or any Related Company has an interest or to which the Company or any Related Company has any obligation, including any and all files, documents, data, records and any other non-public information (whether on paper or in tapes, disks, memory devices, or other machine-readable form), office equipment, credit cards, and employee identification cards. You acknowledge that the Company (or, as applicable, a Related Company) is the rightful owner of, and you hereby grant and assign, all worldwide right, title and interest in and to any Intellectual Property (defined below) to Company (or, as applicable, a Related Company).You shall at all times, both before and after termination of your employment, cooperate with the Company (or, as applicable, any Related Company) and its representatives in executing and delivering documents requested by the Company or a Related Company, and taking any other actions, that are necessary or requested by the Company or a Related Company to assist the Company or any Related Company in patenting, copyrighting, protecting, registering, or enforcing any Intellectual Property and to vest title thereto solely in the Company (or, as applicable, a Related Company). You irrevocably designate and appoint Verizon, its duly authorized officers and legal counsel, as your agents and attorneys-in-fact authorized to execute and file any document in your name that is necessary to secure, perfect or memorialize the rights of Company (or, as applicable, a Related Company) in Intellectual Property, such power of attorney coupled with the interest conveyed by you in Intellectual Property. You waive any moral rights, artist’s rights or the like you may obtain in any Intellectual Property, or, to the extent such waiver is not permitted by law, hereby agree not to assert any moral rights, artist’s rights or the like to any Intellectual Property against Company, any Related Company, or their assignees or licensees. As used herein, “Intellectual Property” means any of the following created, invented, discovered or developed by you (alone or with others) during the period of your employment by Company or any Related Company: (a) ideas, inventions, designs, models, algorithms and discoveries (whether patentable or not); computer programs, documents, images, works of authorship and other information fixed in tangible media (whether copyrightable or not); trade secrets, know how, models, data and other Confidential Information regarding the business of Company or any Related Company; trademarks, trade dress, designs and other indicia or origin (whether registered or not); and all worldwide intellectual property rights obtained based on the foregoing, including patents, utility models, copyrights, trademarks, trade secrets, rights in data, or other intellectual property or neighboring rights. Notwithstanding the foregoing, Intellectual Property does not include anything developed entirely on your own time without using any equipment, supplies, facilities or confidential information of Company or any Related Company, except that which (i) relates at the time of its conception or reduction to practice to the business of Company or any Related Company or actual or demonstrably anticipated research or development of Company or any Related Company, or (ii) results from any work performed by you for Company or any Related Company.

5. Nondisparagement. You agree to take no action that would cause the Company or any Related Company (including its present and former employees and directors) embarrassment or humiliation or otherwise cause or contribute to the Company or any Related Company (including its present and former employees and directors) being held in a negative light or in disrepute by the general public or the Company’s or any Related Company's clients, shareholders, customers, federal or state regulatory agencies, employees, agents, officers, or directors. Nothing in this provision prohibits you from providing truthful testimony as required by law or to a government authority with jurisdiction over the Company or a Related Company in connection with an investigation by that authority, as to a possible violation of applicable law.

6. Definitions. Except where clearly provided to the contrary or as otherwise defined in this Exhibit B, all capitalized terms used in this Exhibit B shall have the definitions given to those terms in the Agreement to which this Exhibit B is attached.

7. Agreement to Non-Competition, Non-Solicitation, Confidentiality and Other Obligations.

(a)You acknowledge that the geographic boundaries, scope of prohibited activities, and time duration of the restrictions set forth in paragraphs 1 and 2 above are reasonable in nature and are no broader than are necessary to maintain the confidential information, trade secrets and the goodwill of the Company and its Related Companies and to protect the other legitimate business interests of the Company and its Related Companies and are not unduly restrictive on you. In addition, you and the Company agree and intend that the covenants contained in paragraphs 1 and 2 shall be deemed to be a series of separate covenants and agreements, one for each and every county or political subdivision of each applicable state of the United States and each country of the world. It is the desire and intent of the parties hereto that the provisions of this Exhibit B be enforced to the fullest extent permissible under the governing laws and public policies of the State of New Jersey, and to the extent applicable, each jurisdiction in which enforcement is sought. Accordingly, if any provision in this Exhibit B or deemed to be included in this Exhibit B shall be adjudicated to be invalid or unenforceable, such provision, without any action on the part of the parties hereto, shall be deemed amended to delete or to modify (including, without limitation, a reduction in duration, geographical area or prohibited business activities) the portion adjudicated to be invalid or unenforceable, such deletion or modification to apply only with respect to the operation of such provision in the particular jurisdiction in which such adjudication is made, and such deletion or modification to be made only to the extent necessary to cause the provision as amended to be valid and enforceable.

(b)You shall indicate your agreement to the obligations and restrictions set forth in this Exhibit B in accordance with the instructions provided in the Agreement, and your acceptance of the Agreement shall include your acceptance of such obligations and restrictions. As stated in paragraph 21 of the Agreement, you and Verizon hereby expressly agree that the use of electronic media to indicate confirmation, consent, signature, acceptance, agreement and delivery shall be legally valid and have the same legal force and effect as if you and Verizon executed this Exhibit B in paper form.

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(c)You acknowledge that you have been advised in writing to, and have had the opportunity to, consult with counsel of your choice concerning the terms and conditions of this Exhibit B and that you have been provided with at least ten (10) business days to review and consider this Exhibit B prior to accepting it.

(d)To ensure compliance with your obligations and restrictions set forth in this Exhibit B, you agree that you will disclose to a designated member of the Company’s Executive Compensation department any contemplated post-employment activity in which you intend to engage during the twelve (12) months following the termination of your employment with the Company or any Related Company for any reason, whether as an employee, owner, advisor and/or any other capacity, prior to you commencing any such post-employment activity.

8. Governing Law and Non-exclusive Forum. The parties expressly agree: (a) that, because the Plan is centrally administered in the State of New Jersey by employees of a Verizon Communications Inc. affiliate, the subject matter of this Exhibit B bears a reasonable relationship to the State of New Jersey; (b) that this Exhibit B is made under, shall be construed in accordance with, and governed in all respects by the laws of the State of New Jersey without giving effect to that jurisdiction’s choice of law rules, except to the extent that the terms of Massachusetts General Laws chapter 149, section 24L apply or Washington Revised Code chapter 49.62 apply; and (c) the parties consent to the non-exclusive jurisdiction and venue of the courts of the State of New Jersey, and the federal courts of the United States of America located in the State of New Jersey, over any action, claim, controversy or proceeding arising under this Exhibit B, and irrevocably waive any objection they may now or hereafter have to the non-exclusive jurisdiction and venue of such courts.

9. State-Specific Notifications. The following notification is provided to you pursuant to certain state laws regarding invention assignments by employees. (I) FOR ANY TIME DURING WHICH YOU ARE EMPLOYED IN THE STATES OF CALIFORNIA, DELAWARE, ILLINOIS, KANSAS, MINNESOTA, NEW JERSEY, NORTH CAROLINA, UTAH OR WASHINGTON BY VERIZON OR ANY RELATED COMPANY, THIS IS TO NOTIFY you, in accordance with the laws of the aforementioned states, that this Agreement does not require you to assign or offer to assign to Verizon or any Related Company any invention that you developed entirely on your own time without using the equipment, supplies, facilities or trade secret information of Verizon or a Related Company except for those inventions that either: (1) Relate at the time of conception or reduction to practice of the invention to the business, or actual or demonstrably anticipated research or development, of Verizon or a Related Company; or (2) Result from any work performed by you for Verizon or a Related Company. (II) You are not required to assign an invention that is excluded from assignment in part (I) to Verizon or a Related Company during the time you are employed in the states noted above. (III) The exclusion of part (I) does not apply to any patent or invention covered by a contract between Verizon or a Related Company and the United States or any of its agencies requiring full title to such patent or invention to be in the United States.

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date hereof.

VERIZON COMMUNICATIONS, INC.:

By: ____________________
Todd N. Brooks

Senior Vice President – Compensation & Benefits

THE PARTICIPANT:

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EX-10.B

EXHIBIT 10b

VERIZON COMMUNICATIONS INC. LONG-TERM INCENTIVE PLAN

2022 RESTRICTED STOCK UNIT AGREEMENT

AGREEMENT between Verizon Communications Inc. (“Verizon” or the “Company”) and you (the “Participant”) and your heirs and beneficiaries.

1. Purpose of Agreement. The purpose of this Agreement is to provide a grant of restricted stock units (“RSUs”) to the Participant.

2. Agreement. This Agreement is entered into pursuant to the 2017 Verizon Communications Inc. Long-Term Incentive Plan (the “Plan”), and evidences the grant of a restricted stock unit award in the form of RSUs pursuant to the Plan. In consideration of the benefits described in this Agreement, which Participant acknowledges are good, valuable and sufficient consideration, the Participant agrees to comply with the terms and conditions of this Agreement, including the Participant’s obligations and restrictions set forth in Exhibit A to this Agreement and the Participant’s non-competition, non-solicitation, confidentiality and other obligations and restrictions set forth in Exhibit B to this Agreement, both of which are incorporated into and are a part of the Agreement. The RSUs and this Agreement are subject to the terms and provisions of the Plan. By executing this Agreement, the Participant agrees to be bound by the terms and provisions of the Plan and this Agreement, including but not limited to the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement. In addition, the Participant agrees to be bound by the actions of the Human Resources Committee of Verizon’s Board of Directors or any successor thereto (the “Committee”), and any designee of the Committee (to the extent that such actions are exercised in accordance with the terms of the Plan and this Agreement). If there is a conflict between the terms of the Plan and the terms of this Agreement, the terms of this Agreement shall control.

3. Contingency. The grant of RSUs is contingent on the Participant’s timely acceptance of this Agreement and satisfaction of the other conditions contained in it. Acceptance shall be through execution of the Agreement as set forth in paragraph 21. If the Participant does not accept this Agreement by the close of business on May 20, 2022, the Participant shall not be entitled to this grant of RSUs regardless of the extent to which the requirements in paragraph 5 (“Vesting”) are satisfied. In addition, to the extent a Participant is on a Company approved leave of absence, including but not limited to short-term disability leave, he or she will not be entitled to this grant of RSUs until such time as he or she returns to work with Verizon or a Related Company (as defined in paragraph 13) and accepts this Agreement within the time period established by the Company.

4. Number of Units. The Participant is granted the number of RSUs as specified in the Participant’s account under the 2022 RSU grant, administered by Fidelity Investments or any successor thereto (“Fidelity”). A RSU is a hypothetical share of Verizon’s common stock. The value of a RSU on any given date shall be equal to the closing price of Verizon’s common stock on the New York Stock Exchange (“NYSE”) as of such date. A Dividend Equivalent Unit (“DEU”) or fraction thereof shall be added to each RSU each time that a dividend is paid on Verizon’s common stock with respect to each dividend record date that occurs after the date of grant and prior to the payment of a RSU. The amount of each DEU shall be equal to the corresponding dividend paid on a share of Verizon’s common stock. The DEU shall be converted into RSUs or fractions thereof based upon the closing price of Verizon’s common stock traded on the NYSE on the dividend payment date of each declared dividend on Verizon’s common stock, and such RSUs or fractions thereof shall be added to the Participant’s RSU balance. DEUs that are credited will be subject to the same vesting, termination and other terms as the RSUs to which they relate. To the extent that Fidelity or the Company makes an error, including but not limited to an administrative error with respect to the number or value of the RSUs granted to the Participant under this Agreement, the DEUs credited to the Participant’s account or the amount of the final award payment, the Company or Fidelity specifically reserves the right to correct such error at any time and the Participant agrees that he or she shall be legally bound by any corrective action taken by the Company or Fidelity.

5. Vesting.

(a) General. The Participant shall vest in the RSUs as follows: one-third of the total number of RSUs subject to this grant (including DEUs credited with respect to such RSUs) shall vest on March 1, 2023, one-third of the total number of RSUs subject to this grant (including DEUs credited with respect to such RSUs) shall vest on March 1, 2024, and the remaining number of RSUs subject to this grant (including DEUs credited with respect to such RSUs) shall vest on March 1, 2025. The Participant must be continuously employed by the Company or a Related Company (as defined in paragraph 13) from the date the RSUs are granted through each of the applicable vesting dates specified in this paragraph 5(a) as a condition to the vesting of the applicable installment of the RSUs, except as otherwise provided in paragraph 7 (“Early Cancellation/Accelerated Vesting of RSUs”) or as otherwise provided by the Committee.

(b) Transfer. Transfer of employment from Verizon to a Related Company, from a Related Company to Verizon, or from one Related Company to another Related Company shall not constitute a separation from employment hereunder, and service with a Related Company shall be treated as service with the Company for purposes of the continuous employment requirement in paragraph 5(a). If the Participant transfers employment pursuant to this paragraph 5(b), the Participant will still be required to satisfy the definition of “Full Retirement” or “Early Retirement” under paragraph 7 of this Agreement in order to be eligible for the accelerated vesting provisions in connection with a “Full Retirement” or “Early Retirement”, as applicable.

6. Payment. All payments under this Agreement shall be made in shares of Verizon common stock. Subject to paragraph 7(a) or 7(b), as soon as practicable after the vesting date of the applicable installment of the RSUs specified in paragraph 5(a) (but in no event later than two and one-half months after the applicable vesting date), the number of RSUs that vested on the applicable vesting date (minus any withholding for taxes) shall be paid to the Participant. The number of shares that shall be paid (plus withholding for taxes) shall equal the number of RSUs that vested on the applicable vesting date. If the Participant dies before any payment due hereunder is made, such payment shall be made to the Participant’s beneficiary, as designated under paragraph 11. Once a payment has been made with respect to a RSU, the RSU shall be cancelled; however, all other terms of the Agreement, including but not limited to the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement, shall remain in effect.

7. Early Cancellation/Accelerated Vesting of RSUs. Notwithstanding the provisions of paragraph 5, RSUs may vest or be forfeited before the applicable vesting and payment dates set forth above as follows:

(a) Termination for Cause. If the Participant’s employment by the Company or a Related Company is terminated by the Company or a Related Company for Cause (as defined below) at any time prior to the date that the RSUs are paid pursuant to paragraph 6, the RSUs (whether vested or not) shall automatically terminate and be cancelled as of the applicable termination date without payment of any consideration by the Company and without any other action by the Participant.

(b) Voluntary Separation On or Before March 1, 2025 for any Reason other than Full Retirement or Early Retirement. If the Participant separates from employment on or before March 1, 2025 for any reason other than as specified in paragraph 4(c) below, all then-unvested RSUs shall automatically terminate and be cancelled as of the applicable termination date without payment of any consideration by the Company and without any other action by the Participant.

(c)    Full Retirement, Early Retirement, Involuntary Termination Without Cause or Termination Due to Death or Disability.

(1) If the Participant ceases to be employed by the Company or a Related Company either (A) by reason of the Participant’s Full Retirement after June 30, 2022 and on or before March 1, 2025, or (B) due to the Participant’s death or Disability (as defined below) on or before March 1, 2025, then: (i) the Participant shall remain entitled to payment (to the extent not theretofore paid) for any RSUs that vested on or before the date of the Participant’s separation from employment; and (ii) the Participant’s then-unvested RSUs shall vest (without prorating the award) without regard to the continuous employment requirement set forth in paragraph 4(a).

(2) If the Participant ceases to be employed by the Company or a Related Company either (A) by reason of the Participant’s Full Retirement on or before June 30, 2022, or (B) by reason of the Participant’s Early Retirement, or an involuntary termination of the Participant’s employment by the Company or a Related Company without Cause on or before March 1, 2025, then: (i) the Participant shall remain entitled to payment (to the extent not theretofore paid) for any RSUs that vested on or before the date of the Participant’s separation from employment; and (ii) if the separation from employment occurs other than on a scheduled vesting date applicable to the RSUs (as such scheduled vesting dates are set forth in paragraph 5(a)), the Participant shall vest in a Pro-Rata Portion (as defined below) of the Participant’s then-unvested RSUs that were (but for such separation from employment) scheduled to vest pursuant to paragraph 5(a) on the first vesting date scheduled to occur after the date of the Participant’s separation from employment (such vesting date, the “Next Scheduled Vesting Date”). For this purpose, “Pro-Rata Portion” means a fraction, the numerator of which is the total number of calendar days in the period beginning with the day immediately following the last scheduled vesting date pursuant to the Grant Notice to have occurred prior to the date of the Participant’s separation from employment (or, if no such prior vesting date had occurred prior to the date of the Participant’s separation from employment, beginning with the day immediately following the date of grant of the award) through and including the date of the Participant’s separation from employment, and the denominator of which is the total number of calendar days in the period beginning with the day immediately following the last scheduled vesting date pursuant to the Grant Notice to have occurred prior to the date of the Participant’s separation from employment (or, if no such prior vesting date had occurred prior to the date of the Participant’s separation from employment, beginning with the day immediately following the date of grant of the award) through and including the Next Scheduled Vesting Date .

(3) The accelerated vesting of any RSUs pursuant to paragraph 7(c)(1) or 7(c)(2) is conditioned on (i) the Participant not committing a breach of any of the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement and (ii) the Participant executing, within the time prescribed by Verizon, a separation agreement satisfactory to Verizon, which separation agreement will include, among other terms, a general release waiving any claims the Participant may have against Verizon and any Related Company and non-competition and non-solicitation provisions that are no more restrictive than those contained in Exhibit B (otherwise, paragraph 7(b) shall apply).

(4) Any RSUs that vest pursuant to paragraph 7(c)(1) or 7(c)(2) shall be payable as soon as practicable after the vesting date of the applicable installment of the RSUs specified in paragraph 5(a) that would have applied had such RSUs not vested earlier under paragraph 7(c)(1) or 7(c)(2) (but in no event later than two and one-half months after the applicable vesting date set forth in paragraph 5(a)).

(d) Change in Control. If a Participant ceases to be employed by the Company or a Related Company due to an involuntary termination of the Participant’s employment by the Company or a Related Company without Cause within twelve (12) months following the occurrence of a Change in Control of Verizon (as defined in the Plan): (i) the Participant shall remain entitled to payment (to the extent not theretofore paid) for any RSUs that vested on or before the date of the Participant’s separation from employment; and (ii) the Participant’s then-unvested RSUs shall vest (without prorating the award) without regard to the continuous employment requirement set forth in paragraph 4(a); provided, however, that all other terms of the Agreement, including but not limited to the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement, shall remain in effect. If both paragraph 7(c) and this paragraph 7(d) would otherwise apply in the circumstances, this paragraph 7(d) shall control. Any RSUs that vest pursuant to this paragraph 7(d) shall be payable as soon as practicable after the vesting date of the applicable installment of the RSUs specified in paragraph 5(a) that would have applied had such RSUs not vested earlier under this paragraph (but in no event later than two and one-half months after the applicable vesting date set forth in paragraph 5(a)).

(e) Vesting Schedule. Except and to the extent provided in paragraphs 7(c) and (d), nothing in this paragraph 7 shall alter the vesting schedule prescribed by paragraph 5.

(f) Defined Terms. For purposes of this Agreement, the following definitions shall apply:

(1) “Cause” means the occurrence of any of the following: (i) incompetence or negligence in the discharge of, or inattention to or neglect of or failure to perform, the duties and responsibilities assigned to the Participant; fraud, misappropriation or embezzlement; or a material breach of the Verizon Code of Conduct (as in effect at the relevant time) or any of the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement, all as determined by the Executive Vice President and Chief Human Resources Officer of Verizon (or her or his designee) in her or his discretion, or (ii) commission of any felony of which the Participant is finally adjudged guilty by a court of competent jurisdiction.

(2) “Disability” means the total and permanent disability of the Participant as defined by, or determined under, the Company’s long-term disability benefit plan.

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(3) “Early Retirement” means with respect to a Participant to cease to be employed by the Company or a Related Company at a time that the Participant has attained (i) 55 years of age, but less than 65 years of age, and (ii) 5 or more years of vesting service, but less than 10 years of vesting service. For purposes of this definition, “years of vesting service” is used as defined under the applicable Verizon tax-qualified 401(k) savings plan.

(4) “Full Retirement” means with respect to a Participant: (i) to cease to be employed by the Company or a Related Company due to voluntary separation after the Participant has attained at least one of the following: (A) at least 15 years of vesting service and a combination of age and years of vesting service that equals or exceeds 75 points, (B) 65 years of age and 5 years of vesting service, or (C) 55 years of age and 10 years of vesting service; (ii) to cease to be employed by the Company or a Related Company due to an involuntary termination of the Participant’s employment by the Company or a Related Company without Cause after the Participant attained at least one of the following: (A) at least 15 years of vesting service and a combination of age and years of vesting service that equals or exceeds 73 points, (B) 65 years of age and 5 years of vesting service, or (C) 55 years of age and 10 years of vesting service; or (iii) retirement of the Participant under any other circumstances determined in writing by the Executive Vice President and Chief Human Resources Officer of Verizon (or her or his designee), provided that, in any case, the retirement was not occasioned by a discharge for Cause. For purposes of this definition, “years of vesting service” is used as defined under the applicable Verizon tax-qualified 401(k) savings plan. For clarity, a “point” for these purposes means one year of age or one year of vesting service.

8. Shareholder Rights. The Participant shall have no rights as a shareholder with respect to the RSUs until the date on which the Participant becomes the holder of record with respect to any shares of Verizon common stock to which this grant relates. Except as provided in the Plan or in this Agreement, no adjustment shall be made for dividends or other rights for which the record date occurs while the RSUs are outstanding.

9. Amendment of Agreement. Except to the extent required by law or specifically contemplated under this Agreement, neither the Committee nor the Executive Vice President and Chief Human Resources Officer of Verizon (or her or his designee) may, without the written consent of the Participant, change any term, condition or provision affecting the RSUs if the change would have a material adverse effect upon the RSUs or the Participant’s rights thereto. Nothing in the preceding sentence shall preclude the Committee or the Executive Vice President and Chief Human Resources Officer of Verizon (or her or his designee) from exercising administrative discretion with respect to the Plan or this Agreement, and the exercise of such discretion shall be final, conclusive and binding. This discretion includes, but is not limited to, corrections of any errors, including but not limited to any administrative errors, and determining whether the Participant has been discharged for Cause, has a Disability, has attained Full Retirement or Early Retirement, has breached any of the Participant’s obligations or restrictions set forth in Exhibits A and B to this Agreement or has satisfied the requirements for vesting and payment under paragraphs 5 and 7 of this Agreement.

10. Assignment. The RSUs shall not be assigned, pledged or transferred except by will or by the laws of descent and distribution.

11. Beneficiary. The Participant shall designate a beneficiary in writing and in such manner as is acceptable to the Executive Vice President and Chief Human Resources Officer of Verizon (or her or his designee). Each such designation shall revoke all prior designations by the Participant with respect to the Participant’s benefits under the Plan and shall be effective only when filed by the Participant with the Company during the Participant’s lifetime. If the Participant fails to so designate a beneficiary, or if no such designated beneficiary survives the Participant, the Participant’s beneficiary shall be the Participant’s estate.

12. Other Plans and Agreements. Any payment received by the Participant pursuant to this Agreement shall not be taken into account as compensation in the determination of the Participant’s benefits under any pension, savings, life insurance, severance or other benefit plan maintained by Verizon or a Related Company. The Participant acknowledges that this Agreement or any prior RSU agreement shall not entitle the Participant to any other benefits under the Plan or any other plans maintained by the Company or a Related Company.

13. Company and Related Company. For purposes of this Agreement, “Company” means Verizon Communications Inc. “Related Company” means (a) any corporation, partnership, joint venture, or other entity in which Verizon Communications Inc. holds a direct or indirect ownership or proprietary interest of 50 percent or more at any time during the term of this Agreement, or (b) any corporation, partnership, joint venture, or other entity in which Verizon Communications Inc. holds a direct or indirect ownership or other proprietary interest of less than 50 percent at any time during the term of this Agreement but which, in the discretion of the Committee, is treated as a Related Company for purposes of this Agreement.

14. Employment Status. The grant of the RSUs shall not be deemed to constitute a contract of employment for a particular term between the Company or a Related Company and the Participant, nor shall it constitute a right to remain in the employ of any such Company or Related Company. In addition, acceptance of this Agreement shall not be deemed to be a condition of continuing employment.

15. Withholding. The Participant acknowledges that he or she shall be responsible for any taxes that arise in connection with this grant of RSUs, and the Company shall make such arrangements as it deems necessary for withholding of any taxes it determines are required to be withheld pursuant to any applicable law or regulation.

16. Securities Laws. The Company shall not be required to make payment with respect to any shares of common stock prior to the admission of such shares to listing on any stock exchange on which the stock may then be listed and the completion of any registration or qualification of such shares under any federal or state law or rulings or regulations of any government body that the Company, in its discretion, determines to be necessary or advisable.

17. Committee Authority. The Committee shall have complete discretion in the exercise of its rights, powers, and duties under this Agreement. Any interpretation or construction of any provision of, and the determination of any question arising under, this Agreement shall be made by the Committee in its discretion, as described in paragraph 9. The Committee and the Audit Committee of Verizon’s Board of Directors may designate any individual or individuals to perform any of its functions hereunder and utilize experts to assist in carrying out their duties hereunder.

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18. Successors. This Agreement shall be binding upon, and inure to the benefit of, any successor or successors of the Company and the person or entity to whom the RSUs may have been transferred by will, the laws of descent and distribution, or beneficiary designation. All terms and conditions of this Agreement imposed upon the Participant shall, unless the context clearly indicates otherwise, be deemed, in the event of the Participant’s death, to refer to and be binding upon the Participant’s heirs and beneficiaries.

19. Construction. In the event that any provision of this Agreement is held invalid or unenforceable, such provision shall be considered separate and apart from the remainder of this Agreement, which shall remain in full force and effect. In the event that any provision, including any of the Participant’s obligations or restrictions set forth in Exhibits A and B to this Agreement, is held to be unenforceable for being unduly broad as written, such provision shall be deemed amended to narrow its application to the extent necessary to make the provision enforceable according to applicable law and shall be enforced as amended. The RSUs are intended to not be subject to any tax, interest or penalty under Section 409A of the Code, and this Agreement shall be construed and interpreted consistent with such intent.

20. Defined Terms. Except where the context clearly indicates otherwise, all capitalized terms used herein shall have the definitions ascribed to them by the Plan, and the terms of the Plan shall apply where appropriate.

21. Execution of Agreement. The Participant shall indicate his or her consent and acknowledgment to the terms of this Agreement (including the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement) and the Plan by executing this Agreement pursuant to the instructions provided and otherwise shall comply with the requirements of paragraph 3. In addition, by consenting to the terms of this Agreement and the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement, the Participant expressly agrees and acknowledges that Fidelity may deliver all documents, statements and notices associated with the Plan and this Agreement to the Participant in electronic form. The Participant and Verizon hereby expressly agree that the use of electronic media to indicate confirmation, consent, signature, acceptance, agreement and delivery shall be legally valid and have the same legal force and effect as if the Participant and Verizon executed this Agreement (including the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement) in paper form.

22. Confidentiality. Except to the extent otherwise required by law, the Participant shall not disclose, in whole or in part, any of the terms of this Agreement. This paragraph 22 does not prevent the Participant from disclosing the terms of this Agreement to the Participant’s spouse or beneficiary or to the Participant’s legal, tax, or financial adviser, provided that the Participant take all reasonable measures to assure that the individual to whom disclosure is made does not disclose the terms of this Agreement to a third party except as otherwise required by law.

23.    Applicable Law. Except as expressly provided in Exhibit B, the validity, construction, interpretation and effect of this Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to the conflicts of laws provisions thereof.

24.    Notice. Any notice to the Company provided for in this Agreement shall be addressed to the Company in care of the Executive Vice President and Chief Human Resources Officer of Verizon at One Verizon Way, Basking Ridge, New Jersey 07920 and any notice to the Participant shall be addressed to the Participant at the current address shown on the payroll of the Company, or to such other address as the Participant may designate to the Company in writing. Any notice shall be delivered by hand, sent by telecopy, sent by overnight carrier, or enclosed in a properly sealed envelope as stated above, registered and deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service.

25.    Dispute Resolution.

(a)    General. Except as otherwise provided in paragraph 26 below, all disputes arising under or related to the Plan or this Agreement and all claims in which a Participant seeks damages or other relief that relate in any way to RSUs or other benefits of the Plan are subject to the dispute resolution procedure described below in this paragraph 25.

(i)    For purposes of this Agreement, the term “Units Award Dispute” shall mean any claim against the Company or a Related Company, other than Units Damages Disputes described in paragraph (a)(ii) below, regarding (A) the interpretation of the Plan or this Agreement, (B) any of the terms or conditions of the RSUs issued under this Agreement, or (C) allegations of entitlement to RSUs or additional RSUs, or any other benefits, under the Plan or this Agreement; provided, however, that any dispute relating to the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement or to the forfeiture of an award as a result of a breach of any of the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement shall not be subject to the dispute resolution procedures provided for in this paragraph 25.

(ii)    For purposes of this Agreement, the term “Units Damages Dispute” shall mean any claims between the Participant and the Company or a Related Company (or against the past or present directors, officers, employees, representatives, or agents of the Company or a Related Company, whether acting in their capacity as such or otherwise), that are related in any way to the Participant’s employment or former employment, including claims of alleged employment discrimination, wrongful termination, or violations of Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Age Discrimination in Employment Act, 42 U.S.C. § 1981, the Fair Labor Standards Act, the Family Medical Leave Act, the Sarbanes-Oxley Act, or any other U.S. federal, state or local law, statute, regulation, or ordinance relating to employment or any common law theories of recovery relating to employment, such as breach of contract, tort, or public policy claims, in which the damages or other relief sought relate in any way to RSUs or other benefits of the Plan or this Agreement.

(b)    Internal Dispute Resolution Procedure. All Units Award Disputes, and all Units Damages Dispute alleging breach of contract, tort, or public policy claims with respect to the Plan or this Agreement (collectively, “Plan Disputes”), shall be referred in the first instance to the Verizon Employee Benefits Committee (“EB Committee”) for resolution internally within Verizon. Except where otherwise prohibited by law, all Plan Disputes must be filed in writing with the EB Committee no later than one year from the date that the dispute accrues. Consistent with paragraph 25(c)(i) of this Agreement, all decisions relating to the enforceability of the limitations period contained herein shall be made by the arbitrator. To the fullest extent permitted by law, the EB Committee shall have full power, discretion, and authority to interpret the Plan and this Agreement and to decide all Plan Disputes brought under this Plan and Agreement. Determinations made by the EB Committee shall be final, conclusive and binding, subject only to review by arbitration pursuant to paragraph (c) below under the arbitrary and capricious standard of review. A Participant’s failure to refer a Plan Dispute to

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the EB Committee for resolution will in no way impair the Company’s right to compel arbitration or the enforceability of the waiver in paragraph 25(c)(ii).

(c)    Arbitration. All appeals from determinations by the EB Committee as described in paragraph (b) above, and any Units Damages Dispute, shall be fully and finally settled by arbitration administered by the American Arbitration Association (“AAA”) on an individual basis (and not on a collective or class action basis) before a single arbitrator pursuant to the AAA’s Commercial Arbitration Rules in effect at the time any such arbitration is initiated. Any such arbitration must be initiated in writing pursuant to the aforesaid rules of the AAA no later than one year from the date that the claim accrues, except where a longer limitations period is required by applicable law. However, a Participant’s failure to initiate arbitration within one year will in no way impair the Company’s right, exercised at its discretion, to compel arbitration or the enforceability of the waiver in paragraph 25(c)(ii). Decisions about the applicability of the limitations period contained herein shall be made by the arbitrator. A copy of the AAA’s Commercial Arbitration Rules may be obtained from Human Resources. The Participant agrees that the arbitration shall be held at the office of the AAA nearest the place of the Participant’s most recent employment by the Company or a Related Company, unless the parties agree in writing to a different location. All claims by the Company or a Related Company against the Participant, except for breaches of any of the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement, may also be raised in such arbitration proceedings.

(i)    The arbitrator shall have the authority to determine whether any dispute submitted for arbitration hereunder is arbitrable. The arbitrator shall decide all issues submitted for arbitration according to the terms of the Plan, this Agreement (except for breaches of any of the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement), existing Company policy, and applicable substantive Delaware State and U.S. federal law and shall have the authority to award any remedy or relief permitted by such laws. The final decision of the EB Committee with respect to a Plan Dispute shall be upheld unless such decision was arbitrary or capricious. The decision of the arbitrator shall be final, conclusive, not subject to appeal, and binding and enforceable in any applicable court.

(ii)    The Participant understands and agrees that, pursuant to this Agreement, with respect to Units Award Disputes and Units Damages Disputes, both the Participant and the Company or a Related Company waive any right to sue each other in a court of law or equity, to have a trial by jury, or to resolve disputes on a collective, or class, basis (except for breaches of any of the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement), and that the sole forum available for the resolution of Units Award Disputes and Units Damages Disputes is arbitration as provided in this paragraph 25. If an arbitrator or court finds that the arbitration provisions of this Agreement are not enforceable, both Participant and the Company or a Related Company understand and agree to waive their right to trial by jury of any Units Award Dispute or Units Damages Dispute. This dispute resolution procedure shall not prevent either the Participant or the Company or a Related Company from commencing an action in any court of competent jurisdiction for the purpose of obtaining injunctive relief to prevent irreparable harm pending and in aid of arbitration hereunder; in such event, both the Participant and the Company or a Related Company agree that the party who commences the action may proceed without necessity of posting a bond.

(iii) In consideration of the Participant’s agreement in paragraph (ii) above, the Company or a Related Company will pay all filing, administrative and arbitrator’s fees incurred in connection with the arbitration proceedings. If the AAA requires the Participant to pay the initial filing fee, the Company or a Related Company will reimburse the Participant for that fee. All other fees incurred in connection with the arbitration proceedings, including but not limited to each party’s attorney’s fees, will be the responsibility of such party.

(iv) The parties intend that the arbitration procedure to which they hereby agree shall be the exclusive means for resolving all Units Award Disputes and Units Damages Disputes (subject to the mandatory EB Committee procedure provided for in paragraph 25(b) above). Their agreement in this regard shall be interpreted as broadly and inclusively as reason permits to realize that intent.

(v) The Federal Arbitration Act (“FAA”) shall govern the enforceability of this paragraph 25. If for any reason the FAA is held not to apply, or if application of the FAA requires consideration of state law in any dispute arising under this Agreement or subject to this dispute resolution provision, the laws of the State of Delaware shall apply without giving effect to the conflicts of laws provisions thereof.

(vi) To the extent an arbitrator determines that the Participant was not terminated for Cause and is entitled to the RSUs or any other benefits under the Plan pursuant to the provisions applicable to an involuntary termination without Cause, the Participant’s obligation to execute a separation agreement satisfactory to Verizon as provided under paragraph 7(c)(3) shall remain applicable in order to receive the benefit of any RSUs pursuant to this Agreement.

26. Additional Remedies. Notwithstanding the dispute resolution procedures, including arbitration, of paragraph 25 of this Agreement, and in addition to any other rights or remedies, whether legal, equitable, or otherwise, that each of the parties to this Agreement may have (including the right of the Company to terminate the Participant for Cause or to involuntarily terminate the Participant without Cause), the Participant acknowledges that—

(a) The Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement are essential to the continued goodwill and profitability of the Company and any Related Company;

(b) The Participant has broad-based skills that will serve as the basis for other employment opportunities that are not prohibited by the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement;

(c) When the Participant’s employment with the Company or any Related Company terminates, the Participant shall be able to earn a livelihood without violating any of the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement;

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(d) Irreparable damage to the Company or any Related Company shall result in the event that the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement are not specifically enforced and that monetary damages will not adequately protect the Company and any Related Company from a breach of any of such Participant obligations and restrictions;

(e) If any dispute arises concerning the violation or anticipated or threatened violation by the Participant of any of the Participant’s obligations and restrictions set forth in Exhibits A or B to this Agreement, an injunction may be issued restraining such violation pending the determination of such controversy, and no bond or other security shall be required in connection therewith;

(f) The Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement shall continue to apply after any expiration, termination, or cancellation of this Agreement;

(g) The Participant’s breach of any of the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement, including, for example, any breach of the Participant’s non-competition, non-solicitation or confidentiality restrictions, shall result in the Participant’s immediate forfeiture of all rights and benefits, including all RSUs and DEUs, under this Agreement; and

(h) All disputes relating to the Participant’s obligations and restrictions set forth in Exhibits A and B to this Agreement, including their interpretation and enforceability and any damages (including but not limited to damages resulting in the forfeiture of an award or benefits under this Agreement) that may result from the breach of such Participant obligations and restrictions shall not be subject to the dispute resolution procedures, including arbitration, of paragraph 25 of this Agreement, but shall instead be determined in a court of competent jurisdiction.

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Exhibit A – Participant’s Obligations

As part of the Agreement to which this Exhibit A is attached, you, the Participant, agree to the following obligations:

1. Effect of a Material Restatement of Financial Results; Recoupment; Company Policies Regarding Securities Transactions.

(a) General. Notwithstanding anything in this Agreement to the contrary, you agree that, with respect to all RSUs granted to you on or after January 1, 2007 and all short-term incentive awards made to you on or after January 1, 2007, to the extent the Company or any Related Company is required to materially restate any financial results based upon your willful misconduct or gross negligence while employed by the Company or any Related Company (and where such restatement would have resulted in a lower payment being made to you), you will be required to repay all previously paid or deferred (i) RSUs and (ii) short-term incentive awards that were provided to you during the performance periods that are the subject of the restated financial results, plus a reasonable rate of interest. For purposes of this paragraph, “willful misconduct” and “gross negligence” shall be as determined by the Committee. The Audit Committee of the Verizon Board of Directors shall determine whether a material restatement of financial results has occurred. If you do not repay the entire amount required under this paragraph, the Company may, to the extent permitted by applicable law, offset your obligation to repay against any source of income available to it, including but not limited to any money you may have in your nonqualified deferral accounts.

(b)Requirements of Recoupment Policy or Applicable Law. The repayment rights contained in paragraph 1(a) of Exhibit A shall be in addition to, and shall not limit, any other rights or remedies that the Company may have under law or in equity, including, without limitation, (i) any right that the Company may have under any Company recoupment policy that may apply to you, or (ii) any right or obligation that the Company may have regarding the clawback of “incentive-based compensation” under Section 10D of the Securities Exchange Act of 1934, as amended (as determined by the applicable rules and regulations promulgated thereunder from time to time by the U.S. Securities and Exchange Commission) or under any other applicable law. By accepting this award of RSUs, you agree and consent to the Company’s application, implementation and enforcement of any such Company recoupment policy (as it may be in effect from time to time) that may apply to you and any provision of applicable law relating to cancellation, rescission, payback or recoupment of compensation and expressly agree that the Company may take such actions as are permitted under any such policy (as applicable to you) or applicable law, such as the cancellation of RSUs and repayment of amounts previously paid or deferred with respect to any previously granted RSUs or short-term incentive awards, without further consent or action being required by you.

(c)Company Policies Regarding Securities Transactions. By accepting this award of RSUs, you agree to comply with all Company policies regarding trading in securities or derivative securities (including, without limitation, the Company’s policies prohibiting trading on material inside information regarding the Company or any business with which the Company does business, the Company’s policies prohibiting engaging in financial transactions that would allow you to benefit from a devaluation of the Company’s securities, and any additional policy that the Company may adopt prohibiting you from hedging your economic exposure to the Company’s securities), as such policies are in effect from time to time and for as long as such policies are applicable to you.

2. Definitions. Except where clearly provided to the contrary or as otherwise defined in this Exhibit A, all capitalized terms used in this Exhibit A shall have the definitions given to those terms in the Agreement to which this Exhibit A is attached.

3. Agreement to Participant’s Obligations. You shall indicate your agreement to the obligations and restrictions set forth in this Exhibit A in accordance with the instructions provided in the Agreement, and your acceptance of the Agreement shall include your acceptance of such obligations and restrictions. As stated in paragraph 21 of the Agreement, you and Verizon hereby expressly agree that the use of electronic media to indicate confirmation, consent, signature, acceptance, agreement and delivery shall be legally valid and have the same legal force and effect as if you and Verizon executed this Exhibit A in paper form.

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Exhibit B – Non-Competition, Non-Solicitation, Confidentiality and Other Obligations

As part of the Agreement to which this Exhibit B is attached, and in consideration for the grant of RSUs under the Agreement, you (the Participant) and the Company or any Related Company which employs or employed you, agree to the following obligations:

1. Non-competition.

(a) Prohibited Conduct. During the period of your employment with the Company or any Related Company, and for a period ending twelve (12) months following a termination of your employment for any reason with the Company or any Related Company, you shall not, without the prior written consent of the Executive Vice President and Chief Human Resources Officer of Verizon (or her or his designee):

(1) personally engage in Competitive Activities (as defined below); or

(2) work for, own, manage, operate, control, or participate in the ownership, management, operation, or control of, or provide consulting or advisory services to, any person, partnership, firm, corporation, institution or other entity engaged in Competitive Activities, or any company or person affiliated with such person, partnership, firm, corporation, institution or other entity engaged in Competitive Activities; provided that your purchase or holding, for investment purposes, of securities of a publicly traded company shall not constitute “ownership” or “participation in the ownership” for purposes of this paragraph so long as your equity interest in any such company is less than a controlling interest;

provided that this paragraph (a) shall not prohibit you from (i) being employed by, or providing services to, a consulting firm, provided that you do not personally engage in Competitive Activities or provide consulting or advisory services to any person, partnership, firm, corporation, institution or other entity engaged in Competitive Activities, or any person or entity affiliated with such person, partnership, firm, corporation, institution or other entity engaged in Competitive Activities, or (ii) engaging in the practice of law as an in-house counsel, sole practitioner or as a partner in (or as an employee of or counsel to) a corporation or law firm in accordance with applicable legal and professional standards. Exception (ii), however, does not apply to you engaging in Competitive Activities or providing services to any person, partnership, firm, corporation, institution or other entity engaged in Competitive Activities, wherein such engagement or services being provided are not primarily the practice of law.

(b) Competitive Activities. For purposes of the Agreement, to which this Exhibit B is attached,

“Competitive Activities” means any activities relating to products or services of the same or similar type as the products or services (1) which were or are sold (or, pursuant to an existing business plan, will be sold) to paying customers of the Company or any Related Company, and (2) for which you have any direct or indirect responsibility or any involvement to plan, develop, manage, market, sell, oversee, support, implement or perform, or had any such responsibility or involvement within your most recent 24 months of employment with the Company or any Related Company. Notwithstanding the previous sentence, an activity shall not be treated as a Competitive Activity if the geographic marketing area of such same or similar products or services does not overlap with the geographic marketing area for the applicable products and services of the Company or any Related Company.

2. Interference With Business Relations. During the period of your employment with the

Company or any Related Company, and for a period ending twelve (12) months following a termination of your employment for any reason with the Company or any Related Company, you shall not, without the prior written consent of the Executive Vice President and Chief Human Resources Officer of Verizon (or her or his designee):

(a) recruit, induce or solicit, directly or indirectly, any employee of the Company or Related Company who was employed by the Company or any Related Company prior to or as of your termination date and whom you worked with or had contact with, or had confidential information about, while employed by the Company or any Related Company for employment or for retention as a consultant or service provider to any person or entity;

(b) hire or participate (with another person or entity) in the process of recruiting, soliciting or hiring, directly or indirectly, any person who is then an employee of the Company or any Related Company whom you worked with or had contact with, or had confidential information about, while employed by the Company or any Related Company, or provide, directly or indirectly, names or other information about any employees of the Company or Related Company whom you worked with or had contact with, or had confidential information about, while employed by the Company or any Related Company to any person or entity under circumstances that could lead to the use of any such information for purposes of recruiting, soliciting or hiring any such employee for any person or entity;

(c) interfere, or attempt to interfere, directly or indirectly, with any relationship of the Company or any Related Company with any of its employees, agents, or representatives;

(d) solicit or induce, or in any manner attempt to solicit or induce, directly or indirectly, any client, customer, or Prospect (defined below) of the Company or any Related Company (1) to cease being, or not to become, a customer of the Company or any Related Company, or (2) to divert any business of such customer or Prospect from the Company or any Related Company; or

(e) otherwise interfere with, disrupt, or attempt to interfere with or disrupt, directly or indirectly, the relationship, contractual or otherwise, between the Company or any Related Company and any of its customers, clients, Prospects, suppliers, vendors, service providers, developers, joint ventures, equity investments or partners, inventors, consultants, employees, agents, or representatives.

For purposes of this paragraph 2(d) and 2(e), “Prospect” shall mean any person or entity from whom or which any business was being solicited by Verizon or any Related Company within the most recent 12 month period of your employment.

3. Protection of Confidential Information. You shall at all times, including after any termination of your employment with the Company or any Related Company, preserve the confidentiality of all Confidential Information (defined below) of the Company or any Related Company, and you shall not use for the benefit of yourself or any person, other than the Company or a Related Company, or disclose to any person, except and to the extent that disclosure of such information is authorized under applicable laws or regulations (e.g., “whistleblower” laws such as 18 USC 1833(b) described below), any Confidential Information or trade secrets of the Company or any Related Company. “Confidential Information” means any information or data related to the Company or any Related Company, including information entrusted

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to the Company or a Related Company by others, which has not been fully disclosed to the public by the Company or a Related Company, which is treated as confidential or otherwise protected within the Company or any Related Company or is of value to competitors, such as: trade secrets; strategic or tactical business plans; undisclosed business, operational or financial data; ideas, processes, methods, techniques, systems, models, devices, programs, computer software, or related information; documents relating to regulatory matters or correspondence with governmental entities; information concerning any past, pending, or threatened legal dispute; pricing or cost data; the identity, reports or analyses of business prospects; business transactions (including those that are contemplated or planned); research data; personnel information or data; identities of suppliers to the Company or any Related Company or users or purchasers of the Company’s or Related Company’s products or services; the Agreement to which this Exhibit B is attached; and any other non-public information pertaining to or known by the Company or a Related Company, including confidential or non-public information of a third party that you know or should know the Company or a Related Company is obligated to protect. For the avoidance of doubt, any information that becomes publicly known through no fault of mine shall not be considered “Confidential Information” for purposes of this Agreement after it becomes publicly known. Section 18 USC 1833(b) provides that “An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that—(A) is made—(i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.” Nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by 18 U.S.C. § 1833(b).

4. Return Of Company Property; Ownership of Intellectual Property Rights. You agree that on or before termination of your employment for any reason with the Company or any Related Company, you shall return to the Company all property owned by the Company or any Related Company or in which the Company or any Related Company has an interest or to which the Company or any Related Company has any obligation, including any and all files, documents, data, records and any other non-public information (whether on paper or in tapes, disks, memory devices, or other machine-readable form), office equipment, credit cards, and employee identification cards. You acknowledge that the Company (or, as applicable, a Related Company) is the rightful owner of, and you hereby grant and assign, all worldwide right, title and interest in and to any Intellectual Property (defined below) to Company (or, as applicable, a Related Company). You shall at all times, both before and after termination of your employment, cooperate with the Company (or, as applicable, any Related Company) and its representatives in executing and delivering documents requested by the Company or a Related Company, and taking any other actions, that are necessary or requested by the Company or a Related Company to assist the Company or any Related Company in patenting, copyrighting, protecting, registering, or enforcing any Intellectual Property and to vest title thereto solely in the Company (or, as applicable, a Related Company). You irrevocably designate and appoint Verizon, its duly authorized officers and legal counsel, as your agents and attorneys-in-fact authorized to execute and file any document in your name that is necessary to secure, perfect or memorialize the rights of Company (or, as applicable, a Related Company) in Intellectual Property, such power of attorney coupled with the interest conveyed by you in Intellectual Property. You waive any moral rights, artist’s rights or the like you may obtain in any Intellectual Property, or, to the extent such waiver is not permitted by law, hereby agree not to assert any moral rights, artist’s rights or the like to any Intellectual Property against Company, any Related Company, or their assignees or licensees. As used herein, “Intellectual Property” means any of the following created, invented, discovered or developed by you (alone or with others) during the period of your employment by Company or any Related Company: (a) ideas, inventions, designs, models, algorithms and discoveries (whether patentable or not); computer programs, documents, images, works of authorship and other information fixed in tangible media (whether copyrightable or not); trade secrets, know how, models, data and other Confidential Information regarding the business of Company or any Related Company; trademarks, trade dress, designs and other indicia or origin (whether registered or not); and all worldwide intellectual property rights obtained based on the foregoing, including patents, utility models, copyrights, trademarks, trade secrets, rights in data, or other intellectual property or neighboring rights. Notwithstanding the foregoing, Intellectual Property does not include anything developed entirely on your own time without using any equipment, supplies, facilities or confidential information of Company or any Related Company, except that which (i) relates at the time of its conception or reduction to practice to the business of Company or any Related Company or actual or demonstrably anticipated research or development of Company or any Related Company, or (ii) results from any work performed by you for Company or any Related Company.

5. Nondisparagement. You agree to take no action that would cause the Company or any Related Company (including its present and former employees and directors) embarrassment or humiliation or otherwise cause or contribute to the Company or any Related Company (including its present and former employees and directors) being held in a negative light or in disrepute by the general public or the Company’s or any Related Company's clients, shareholders, customers, federal or state regulatory agencies, employees, agents, officers, or directors. Nothing in this provision prohibits you from providing truthful testimony as required by law or to a government authority with jurisdiction over the Company or a Related Company in connection with an investigation by that authority, as to a possible violation of applicable law.

6. Definitions. Except where clearly provided to the contrary or as otherwise defined in this Exhibit B, all capitalized terms used in this Exhibit B shall have the definitions given to those terms in the Agreement to which this Exhibit B is attached.

7. Agreement to Non-Competition, Non-Solicitation, Confidentiality and Other Obligations.

(a)You acknowledge that the geographic boundaries, scope of prohibited activities, and time duration of the restrictions set forth in paragraphs 1 and 2 above are reasonable in nature and are no broader than are necessary to maintain the confidential information, trade secrets and the goodwill of the Company and its Related Companies and to protect the other legitimate business interests of the Company and its Related Companies and are not unduly restrictive on you. In addition, you and the Company agree and intend that the covenants contained in paragraphs 1 and 2 shall be deemed to be a series of separate covenants and agreements, one for each and every county or political subdivision of each applicable state of the United States and each country of the world. It is the desire and intent of the parties hereto that the provisions of this Exhibit B be enforced to the fullest extent permissible under the governing laws and public policies of the State of New Jersey, and to the extent applicable, each jurisdiction in which enforcement is sought. Accordingly, if any provision in this Exhibit B or deemed to be included in this Exhibit B shall be adjudicated to be invalid or unenforceable, such provision, without any action on the part of the parties hereto, shall be deemed amended to delete or to modify (including, without limitation, a reduction in duration, geographical area or prohibited business activities) the portion adjudicated to be invalid or unenforceable, such deletion or modification to apply only with respect to the operation of such provision in the particular jurisdiction in which such adjudication is made, and such deletion or modification to be made only to the extent necessary to cause the provision as amended to be valid and enforceable.

(b)You shall indicate your agreement to the obligations and restrictions set forth in this Exhibit B in accordance with the instructions provided in the Agreement, and your acceptance of the Agreement shall include your acceptance of such obligations and restrictions. As stated in paragraph 21 of the Agreement, you and Verizon hereby expressly agree that the use of electronic media to indicate confirmation, consent, signature, acceptance, agreement and delivery shall be legally valid and have the same legal force and effect as if you and Verizon executed this Exhibit B in paper form.

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(c)You acknowledge that you have been advised in writing to, and have had the opportunity to, consult with counsel of your choice concerning the terms and conditions of this Exhibit B and that you have been provided with at least ten (10) business days to review and consider this Exhibit B prior to accepting it.

(d)To ensure compliance with your obligations and restrictions set forth in this Exhibit B, you agree that you will disclose to a designated member of the Company’s Executive Compensation department any contemplated post-employment activity in which you intend to engage during the twelve (12) months following the termination of your employment with the Company or any Related Company for any reason, whether as an employee, owner, advisor and/or any other capacity, prior to you commencing any such post-employment activity.

8. Governing Law and Non-exclusive Forum. The parties expressly agree: (a) that, because the Plan is centrally administered in the State of New Jersey by employees of a Verizon Communications Inc. affiliate, the subject matter of this Exhibit B bears a reasonable relationship to the State of New Jersey; (b) that this Exhibit B is made under, shall be construed in accordance with, and governed in all respects by the laws of the State of New Jersey without giving effect to that jurisdiction’s choice of law rules, except to the extent that the terms of Massachusetts General Laws chapter 149, section 24L apply or Washington Revised Code chapter 49.62 apply; and (c) the parties consent to the non-exclusive jurisdiction and venue of the courts of the State of New Jersey, and the federal courts of the United States of America located in the State of New Jersey, over any action, claim, controversy or proceeding arising under this Exhibit B, and irrevocably waive any objection they may now or hereafter have to the non-exclusive jurisdiction and venue of such courts.

9. State-Specific Notifications. The following notification is provided to you pursuant to certain state laws regarding invention assignments by employees. (I) FOR ANY TIME DURING WHICH YOU ARE EMPLOYED IN THE STATES OF CALIFORNIA, DELAWARE, ILLINOIS, KANSAS, MINNESOTA, NEW JERSEY, NORTH CAROLINA, UTAH OR WASHINGTON BY VERIZON OR ANY RELATED COMPANY, THIS IS TO NOTIFY you, in accordance with the laws of the aforementioned states, that this Agreement does not require you to assign or offer to assign to Verizon or any Related Company any invention that you developed entirely on your own time without using the equipment, supplies, facilities or trade secret information of Verizon or a Related Company except for those inventions that either: (1) Relate at the time of conception or reduction to practice of the invention to the business, or actual or demonstrably anticipated research or development, of Verizon or a Related Company; or (2) Result from any work performed by you for Verizon or a Related Company. (II) You are not required to assign an invention that is excluded from assignment in part (I) to Verizon or a Related Company during the time you are employed in the states noted above. (III) The exclusion of part (I) does not apply to any patent or invention covered by a contract between Verizon or a Related Company and the United States or any of its agencies requiring full title to such patent or invention to be in the United States.

10

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date hereof.

VERIZON COMMUNICATIONS, INC.:

By: ____________________
Todd N. Brooks

Senior Vice President – Compensation & Benefits

THE PARTICIPANT:

11

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: April 27, 2022	/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: April 27, 2022	/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 March 31, 2022 (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: April 27, 2022	/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 March 31, 2022 (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: April 27, 2022	/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	3 Months Ended
	Mar. 31, 2022 shares
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
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	4,199,643,701
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
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
	Mar. 31, 2022	Mar. 31, 2021
Operating Revenues
Operating Revenues	$ 33,554	$ 32,867
Operating Expenses
Selling, general and administrative expense	7,172	7,401
Depreciation and amortization expense	4,236	4,174
Total Operating Expenses	25,758	25,097
Operating Income	7,796	7,770
Equity in earnings (losses) of unconsolidated businesses	(3)	8
Other income (expense), net	(924)	401
Interest expense	(786)	(1,101)
Income Before Provision For Income Taxes	6,083	7,078
Provision for income taxes	(1,372)	(1,700)
Net Income	4,711	5,378
Net income attributable to noncontrolling interests	131	133
Net income attributable to Verizon	4,580	5,245
Net Income	$ 4,711	$ 5,378
Basic Earnings Per Common Share
Net income attributable to Verizon (USD per share)	$ 1.09	$ 1.27
Weighted-average shares outstanding (in shares)	4,201	4,141
Diluted Earnings Per Common Share
Net income attributable to Verizon (USD per share)	$ 1.09	$ 1.27
Weighted-average shares outstanding (in shares)	4,202	4,142
Service revenues and other
Operating Revenues
Operating Revenues	$ 27,218	$ 27,923
Wireless equipment
Operating Revenues
Operating Revenues	6,336	4,944
Operating Expenses
Cost of services and equipment	7,123	5,502
Service
Operating Expenses
Cost of services and equipment	$ 7,227	$ 8,020

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net Income	$ 4,711	$ 5,378
Other Comprehensive Income (Loss), Net of Tax (Expense) Benefit
Foreign currency translation adjustments, net of tax of $(6) and $8	(29)	(38)
Unrealized gain on cash flow hedges, net of tax of $(72) and $(340)	207	909
Unrealized loss on marketable securities, net of tax of $5 and $1	(18)	(5)
Defined benefit pension and postretirement plans, net of tax of $48 and $51	(139)	(155)
Other comprehensive income attributable to Verizon	21	711
Total Comprehensive Income	4,732	6,089
Comprehensive income attributable to noncontrolling interests	131	133
Comprehensive income attributable to Verizon	4,601	5,956
Total Comprehensive Income	$ 4,732	$ 6,089

XML

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, tax	$ (6)	$ 8
Unrealized gain (loss) on cash flow hedges, tax	(72)	(340)
Unrealized gain (loss) on marketable securities, tax	5	1
Defined benefit pension and postretirement plans, tax	$ 48	$ 51

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 1,661	$ 2,921
Accounts receivable	24,474	24,742
Less Allowance for credit losses	859	896
Accounts receivable, net	23,615	23,846
Inventories	3,659	3,055
Prepaid expenses and other	6,645	6,906
Total current assets	35,580	36,728
Property, plant and equipment	292,568	289,897
Less Accumulated depreciation	192,725	190,201
Property, plant and equipment, net	99,843	99,696
Investments in unconsolidated businesses	1,074	1,061
Wireless licenses	148,083	147,619
Goodwill	28,629	28,603
Other intangible assets, net	11,432	11,677
Operating lease right-of-use assets	27,494	27,883
Other assets	13,581	13,329
Total assets	365,716	366,596
Current liabilities
Debt maturing within one year	13,421	7,443
Accounts payable and accrued liabilities	18,169	24,833
Current operating lease liabilities	3,847	3,859
Other current liabilities	11,148	11,025
Total current liabilities	46,585	47,160
Long-term debt	139,961	143,425
Employee benefit obligations	15,104	15,410
Deferred income taxes	41,341	40,685
Non-current operating lease liabilities	22,932	23,203
Other liabilities	14,618	13,513
Total long-term liabilities	233,956	236,236
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 in each period)	429	429
Additional paid in capital	13,874	13,861
Retained earnings	73,891	71,993
Accumulated other comprehensive loss	(906)	(927)
Common stock in treasury, at cost (91,789,945 and 93,634,725 shares outstanding)	(4,023)	(4,104)
Deferred compensation – employee stock ownership plans (ESOPs) and other	497	538
Noncontrolling interests	1,413	1,410
Total equity	85,175	83,200
Total liabilities and equity	$ 365,716	$ 366,596

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
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)	91,789,945	93,634,725

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash Flows from Operating Activities
Net Income	$ 4,711	$ 5,378
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	4,236	4,174
Employee retirement benefits	(210)	(253)
Deferred income taxes	627	762
Provision for expected credit losses	328	224
Equity in losses of unconsolidated businesses, net of dividends received	7	19
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses	(3,492)	(41)
Other, net	614	(569)
Net cash provided by operating activities	6,821	9,694
Cash Flows from Investing Activities
Capital expenditures (including capitalized software)	(5,821)	(4,494)
Acquisitions of businesses, net of cash acquired	0	(408)
Acquisitions of wireless licenses	(1,838)	(44,783)
Other, net	(336)	32
Net cash used in investing activities	(7,995)	(49,653)
Cash Flows from Financing Activities
Proceeds from long-term borrowings	3,604	31,383
Proceeds from asset-backed long-term borrowings	3,545	1,000
Repayments of long-term borrowings and finance lease obligations	(6,556)	(302)
Repayments of asset-backed long-term borrowings	(1,650)	(732)
Dividends paid	(2,654)	(2,601)
Other, net	3,956	(792)
Net cash provided by financing activities	245	27,956
Decrease in cash, cash equivalents and restricted cash	(929)	(12,003)
Cash, cash equivalents and restricted cash, beginning of period	4,161	23,498
Cash, cash equivalents and restricted cash, end of period (Note 1)	$ 3,232	$ 11,495

XML

Basis of Presentation

3 Months Ended

Mar. 31, 2022

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, 2021. 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.

Earnings Per Common Share

There were a total of approximately 1.5 million outstanding dilutive securities, primarily consisting of restricted stock units, included in the computation of diluted earnings per common share for the three months ended March 31, 2022. There were a total of approximately 1.6 million outstanding dilutive securities, primarily consisting of restricted stock units, included in the computation of diluted earnings per common share for the three months ended March 31, 2021.

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.

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

	At March 31,		At December 31,		Increase / (Decrease)
(dollars in millions)	2022		2021
Cash and cash equivalents	$	1,661	$	2,921	$	(1,260)
Restricted cash:
Prepaid expenses and other	1,430		1,094		336
Other assets	141		146		(5)
Cash, cash equivalents and restricted cash	$	3,232	$	4,161	$	(929)

XML

Revenues and Contract Costs

3 Months Ended

Mar. 31, 2022

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 10 for additional information on revenue by segment. Corporate and other primarily includes insurance captive revenues.

We also earn revenues that are not accounted for under Accounting Standards Update (ASU) 2014-09, "Revenue from Contracts with Customers" (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 months ended March 31, 2022 and March 31, 2021, revenues from arrangements that were not accounted for under Topic 606 were approximately $830 million and $735 million, 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 March 31, 2022, month-to-month service contracts represented approximately 94% of our wireless postpaid contracts and approximately 88% of our wireline Consumer and Small and Medium Business contracts, compared to March 31, 2021, for which month-to-month service contracts represented approximately 91% of our wireless postpaid contracts and 78% 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, with or without promotional credits that require maintenance of service, are generally either month-to-month and cancellable at any time, considered to contain terms ranging from greater than one month to up to thirty-six months (typically under a device payment plan), or contain terms ranging from greater than one month to up to twenty-four months (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 cancelled 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 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 nine years ending in August 2031 and have aggregate contract minimum payments totaling $2.1 billion.

At March 31, 2022, the transaction price related to unsatisfied performance obligations that are expected to be recognized for the remainder of 2022, 2023 and thereafter was $14.4 billion, $11.3 billion and $4.8 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 March 31,		At January 1,		At March 31,		At January 1,
(dollars in millions)	2022		2022		2021		2021
Receivables(1)	$	10,419	$	10,758	$	10,821	$	12,029
Device payment plan agreement receivables(2)	13,478		12,888		10,409		10,358

(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 6. Receivables derived from the sale of equipment on a device payment plan through an authorized agent are excluded.

The following table presents information about contract balances:

	At March 31,		At January 1,		At March 31,		At January 1,
(dollars in millions)	2022		2022		2021		2021
Contract asset	$	909	$	934	$	923	$	937
Contract liability(1)	7,504		7,229		5,783		5,598

(1) Revenue recognized related to contract liabilities existing at January 1, 2022 and January 1, 2021 were $4.3 billion and $3.9 billion for the three months ended March 31, 2022 and March 31, 2021, respectively.

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

	At March 31,		At December 31,
(dollars in millions)	2022		2021
Assets
Prepaid expenses and other	$	720	$	739
Other assets	189		195
Total	$	909	$	934
Liabilities
Other current liabilities	$	6,222	$	6,053
Other liabilities	1,282		1,176
Total	$	7,504	$	7,229

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 March 31,		At December 31,
(dollars in millions)	2022		2021
Assets
Prepaid expenses and other	$	2,454	$	2,432
Other assets	2,262		2,259
Total	$	4,716	$	4,691

For the three months ended March 31, 2022 and 2021, we recognized expense of $749 million and $765 million, 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 months ended March 31, 2022 or March 31, 2021.

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Acquisitions and Divestitures

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisitions and Divestitures

Note 3. Acquisitions and Divestitures

Spectrum License Transactions

In February 2021, the FCC concluded Auction 107 for C-Band wireless spectrum. 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 payments 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 $7.7 billion. During the year ended December 31, 2021, we made payments of $1.3 billion primarily related to certain obligations for projected clearing costs. In January 2022, we made additional payments of $1.4 billion for obligations related to accelerated clearing incentives, which were accrued as of December 31, 2021. We expect to continue to make payments related to clearing cost and incentive payment obligations 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. In accordance with the FCC order, the clearing must be completed by December 2025. The carrying value of the wireless spectrum won in Auction 107 consists 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, as well as capitalized interest to the extent qualifying activities have occurred.

In March 2022, Verizon signed agreements with satellite operators in which operators agreed to clear C-Band spectrum in certain markets and frequencies ahead of the previously expected December 2023 timeframe. This early clearance, if successful, would accelerate Verizon's access to more spectrum in a number of key markets to support its 5G initiatives.

During the three months ended March 31, 2022 and 2021, we entered into and completed various other wireless license acquisitions for cash consideration of an insignificant amount and $90 million, respectively. We recognized a pre-tax loss in connection with the sale of certain wireless licenses during the three months ended March 31, 2021 of $223 million ($167 million after-tax).

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 leading provider of prepaid and value mobile services in the U.S. The transaction closed on November 23, 2021 (the Acquisition Date). The acquisition positions Verizon as the leading prepaid, value and premium wireless carrier by expanding Verizon’s portfolio, bringing enhanced access of our wireless network and comprehensive suite of mobility products and services to a new customer base.

In accordance with the terms of the TracFone Purchase Agreement, Verizon acquired all of TracFone's outstanding stock in exchange for approximately $3.5 billion in cash, net of cash acquired and working capital and other adjustments, subject to customary adjustments, 57,596,544 shares of Verizon common stock valued at approximately $3.0 billion, and up to an additional $650 million in future cash contingent consideration related to the achievement of certain performance measures and other commercial arrangements. The fair value of the Verizon common stock was determined on the basis of its closing market price on the Acquisition Date. The estimated fair value of the contingent consideration as of the Acquisition Date was approximately $542 million and represents a Level 3 measurement as defined in ASC 820, Fair Value Measurements and Disclosures. See Note 7 for additional information. The contingent consideration payable is based on the achievement of certain revenue and operational targets, measured over a two-year earn out period, as defined in the TracFone Purchase Agreement. Payments related to the contingent consideration are expected to begin in 2022 and continue through 2024.

The TracFone acquisition was accounted for as a business combination. The purchase consideration was preliminarily allocated to the assets acquired and liabilities assumed based on their fair values as of the Acquisition Date.

The following table summarizes the preliminary allocation of the consideration paid and payable to the identified assets acquired and liabilities assumed as of the Acquisition Date. The purchase price allocation is preliminary and is subject to revision as additional information about the fair value of the assets acquired and liabilities assumed, including related deferred income taxes, become available.

	November 23,		Measurement Period Adjustments(1)		Adjusted
(dollars in millions)	2021				Fair Value
Consideration:
Cash, net of cash acquired and working capital and other adjustments	$	3,491	$	—	$	3,491
Fair value of Verizon common stock (57,596,544 shares)	2,981		—		2,981
Fair value of contingent consideration to be paid	542		—		542
Total consideration	$	7,014	$	—	$	7,014
Assets acquired:
Current assets	$	1,370	$	(4)	$	1,366
Property, plant and equipment, net	96		(1)		95
Goodwill	3,723		30		3,753
Other intangible assets	4,374		—		4,374
Other assets	731		(3)		728
Total assets acquired	$	10,294	$	22	$	10,316
Liabilities assumed:
Current liabilities	1,433		32		1,465
Deferred income taxes	1,007		(10)		997
Other liabilities	840		—		840
Total liabilities assumed	$	3,280	$	22	$	3,302
Net assets acquired	$	7,014	$	—	$	7,014

(1) Adjustments to the fair value measurements reflect new information obtained about facts and circumstances that existed as of the Acquisition Date, that if known, would have affected the measurement of the amounts recognized as of that date. The most significant adjustments related to an increase in goodwill and deferred commission costs.

Other intangible assets include $2.3 billion related to customer relationships, $1.3 billion related to distribution relationships, $744 million related to trade names and $110 million related to acquired technology.

Goodwill is calculated as the difference between the Acquisition Date fair value of the consideration paid and payable and the fair value of the net assets acquired, representing future economic benefits that we expect to achieve as a result of the acquisition. The goodwill related to this acquisition is included within the Consumer segment.

Pursuant to the TracFone Purchase Agreement, América Móvil agreed to indemnify Verizon against pre-acquisition tax matters. As of the Acquisition Date, we have recorded uncertain tax liabilities and offsetting indemnification assets of $730 million, for the expected reimbursement of tax related matters that had not been resolved as of the Acquisition Date. The liabilities are presented in Other liabilities, and the indemnification assets are presented in Other assets, within our condensed consolidated balance sheets. We expect that any additional liabilities that may arise related to these indemnified matters would be indemnified and reimbursed by América Móvil.

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 $412 million, net of cash acquired.

The acquisition of Bluegrass was accounted for as a business combination. The consideration was allocated to the assets acquired and liabilities assumed based on their fair values as of the close of the acquisition. We recorded approximately $141 million of plant, property and equipment, $135 million of intangible assets and $92 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 the Consumer segment.

Verizon Media Divestiture

On May 2, 2021, Verizon entered into a definitive agreement with an affiliate of Apollo Global Management Inc. (the Apollo Affiliate) pursuant to which we agreed to sell Verizon Media Group (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 Apollo Affiliate, and 10% of the fully-diluted common limited partnership units of the Apollo Affiliate.

On September 1, 2021, we completed the sale of Verizon Media. As of the close of the transaction, cash proceeds, the fair value of the non-convertible preferred limited partnership units of the Apollo Affiliate, and the fair value of 10% of the fully-diluted common limited partnership units of the Apollo Affiliate were $4.3 billion, $496 million, and $124 million, respectively.

On September 28, 2021, the Apollo Affiliate redeemed $100 million of Verizon’s preferred limited partnership interest. The carrying value of our preferred limited partnership interest as of March 31, 2022 was $396 million. Verizon’s 10% common interest in the Apollo Affiliate is accounted for as an equity method investment. The post-sale results of Verizon’s common ownership interest in the Apollo Affiliate are recorded through the equity method of accounting, within Corporate and other.

In connection with the closing of the transaction, we entered into Transition Services Agreements with the Apollo Affiliate, under which Verizon will continue to provide and receive specified administrative and technical services to support operations for up to 12 months and 18 months, respectively.

Under our ownership, Verizon Media generated revenues from contracts with customers under Topic 606 of approximately $1.9 billion during the three months ended March 31, 2021.

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Wireless Licenses, Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2022

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 are as follows:

	At March 31,		At December 31,
(dollars in millions)	2022		2021
Wireless licenses	$	148,083	$	147,619

At March 31, 2022 and 2021, approximately $53.2 billion and $53.5 billion, respectively, of wireless licenses were under development for commercial service for which we were capitalizing interest costs. We recorded approximately $452 million and $79 million of capitalized interest on wireless licenses for the three months ended March 31, 2022 and 2021, respectively. We recorded $35 million of capitalized interest on Deposits for wireless licenses during the three months ended March 31, 2021.

During the three months ended March 31, 2022, we renewed various wireless licenses in accordance with FCC regulations. The average renewal period for these licenses was 15 years.

Goodwill

Changes in the carrying amount of Goodwill are as follows:

(dollars in millions)	Consumer		Business		Other		Total
Balance at January 1, 2022	$	21,042	$	7,515	$	46	$	28,603
Acquisitions (1)	30		—		—		30
Reclassifications, adjustments and other	—		(2)		(2)		(4)
Balance at March 31, 2022	$	21,072	$	7,513	$	44	$	28,629

(1) The change in goodwill relates to the acquisition of TracFone. 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 March 31, 2022						At December 31, 2021
(dollars in millions)	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
Customer lists (5 to 13 years)	$	4,202	$	(1,281)	$	2,921	$	4,201	$	(1,126)	$	3,075
Non-network internal-use software (5 to 7 years)	21,659		(15,258)		6,401		21,310		(14,897)		6,413
Other (4 to 25 years)	2,984		(874)		2,110		2,974		(785)		2,189
Total	$	28,845	$	(17,413)	$	11,432	$	28,485	$	(16,808)	$	11,677

The amortization expense for Other intangible assets was as follows: 

	Three Months Ended
(dollars in millions)	March 31,
2022	$	635
2021	629

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 2022	$	1,886
2023	2,329
2024	2,037
2025	1,848
2026	1,577
2027	842

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Debt

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Debt

Note 5. Debt

Significant Debt Transactions

Debt or equity financing may be needed to fund additional investments or development activities or to maintain an appropriate capital structure to ensure our financial flexibility.

The following tables show the significant transactions involving the senior unsecured debt securities of Verizon and its subsidiaries that occurred during the three months ended March 31, 2022.

Tender Offers

(dollars in millions)	Principal Amount Purchased		Cash Consideration(1)
Verizon and subsidiary 2.987% - 8.950% notes, due 2032 - 2056	$	5,032	$	5,587

(1) The total cash consideration includes the tender offer consideration, plus any accrued and unpaid interest to the date of purchase.

Repayments, Redemptions and Repurchases

(dollars in millions)	Principal Repaid/ Redeemed/ Repurchased		Amount Paid (1)
Verizon floating rate (London Inter-Bank Offered Rate + 1.000%) notes due 2022	$	1,094	$	1,097

(1) Represents amount paid to repay, redeem, or repurchase, including any accrued interest.

Issuances

(dollars in millions)	Principal Amount Issued		Net Proceeds (1)
Verizon 3.875% notes due 2052 (2)	$	1,000	$	982
Verizon 4.100% notes due 2055	655		650
Total	$	1,655	$	1,632

(1) Net proceeds were net of underwriting discounts and other issuance costs.

(2) An amount equal to the net proceeds from this green bond is expected to be used to fund, in whole or in part, certain renewable energy projects, including new and existing investments made by us during the period from December 1, 2021 through the maturity date of the green bond.

Short-Term Borrowing and Commercial Paper Program

In March 2022, we entered into a short-term uncommitted credit facility with the ability to borrow up to $1.0 billion. As of March 31, 2022, there was an outstanding balance of $1.0 billion under the facility.

During the three months ended March 31, 2022, we issued $9.4 billion in commercial paper and we repaid $5.6 billion of commercial paper. As of March 31, 2022, we had $3.8 billion of commercial paper outstanding. These transactions were recorded within Other, net cash flow from financing in our condensed consolidated statements of cash flows.

Asset-Backed Debt

As of March 31, 2022, the carrying value of our asset-backed debt was $16.1 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 three months ended March 31, 2022, we completed the following ABS Notes transactions:

(dollars in millions)	Interest Rates %	Expected Weighted-average Life to Maturity (in years)	Principal Amount Issued
January 2022
Series 2022-1
A Senior class notes	1.040	1.49	$	799
B Junior class notes	1.270	1.49	64
C Junior class notes	1.390	1.49	37
Series 2022-2
A Senior class notes	1.530	2.99	710
B Junior class notes	1.830	2.99	57
C Junior class notes	2.010	2.99	33
Total			$	1,700

Under the terms of each series of ABS Notes, there is a revolving period of 18 months, two years or up to three years, as applicable, during which we may transfer additional receivables to the ABS Entity. During the three months ended March 31, 2022, we made aggregate principal repayments of $1.1 billion on ABS Notes that have entered the amortization period, including principal payments made in connection with clean-up redemptions.

ABS Financing Facility

In January 2022, we prepaid an aggregate of $515 million of the two loans outstanding in connection with the ABS Financing Facility entered into in December 2021. In March 2022, we borrowed an additional $1.9 billion under the loan agreements entered into in connection with such ABS Financing Facility. The aggregate outstanding balance under such ABS Financing Facility was $5.6 billion as of March 31, 2022.

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 March 31,		At December 31,
(dollars in millions)	2022		2021
Assets
Accounts receivable, net	$	11,682	$	10,705
Prepaid expenses and other	1,432		1,094
Other assets	7,050		5,455
Liabilities
Accounts payable and accrued liabilities	10		10
Debt maturing within one year	6,357		5,024
Long-term debt	9,745		9,178

See Note 6 for additional information on device payment plan agreement receivables used to secure asset-backed debt.

Long-Term Credit Facilities

				At March 31, 2022
(dollars in millions)	Maturities	Facility Capacity		Unused Capacity		Principal Amount Outstanding
Verizon revolving credit facility (1)	2024	$	9,500	$	9,424	N/A
Various export credit facilities (2)	2024 - 2030	9,000		—		$	6,471
Total		$	18,500	$	9,424	$	6,471

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 three months ended March 31, 2022 and 2021, we drew down $2.0 billion and $470 million, respectively, 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 three months ended March 31, 2022 and 2021, we financed, primarily through alternative financing arrangements, the purchase of approximately $150 million and $117 million, respectively, of long-lived assets consisting primarily of network equipment. As of March 31, 2022 and December 31, 2021, $1.4 billion and $1.3 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 the three months ended March 31, 2022, we recorded debt extinguishment losses of $1.2 billion. The losses are recorded in Other income (expense), net in our condensed consolidated statements of income. The total losses are reflected as an adjustment to reconcile net income to Net cash provided by operating activities and the portion of the losses representing cash payments are reflected within Net cash provided by financing activities in our condensed consolidated statements of cash flows.

Guarantees

We guarantee the debentures of our operating telephone company subsidiaries. As of March 31, 2022, $717 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.

Debt 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

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Device Payment Plan Agreement and Wireless Service Receivables

Note 6. 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 sheets:

	At March 31, 2022
(dollars in millions)	Device payment plan agreement		Wireless service		Other receivables(1)		Total
Accounts receivable	$	13,385	$	4,790	$	6,299	$	24,474
Less Allowance for credit losses	456		145		258		859
Accounts receivable, net of allowance	$	12,929	$	4,645	$	6,041	$	23,615

(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.

Wireless Device Payment Plan Agreement Receivables

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

	At March 31,		At December 31,
(dollars in millions)	2022		2021
Device payment plan agreement receivables, gross	$	21,982	$	21,303
Unamortized imputed interest	(337)		(358)
Device payment plan agreement receivables, at amortized cost	21,645		20,945
Allowance (1)	(754)		(759)
Device payment plan agreement receivables, net	$	20,891	$	20,186
Classified in our condensed consolidated balance sheets:
Accounts receivable, net	$	12,929	$	12,783
Other assets	7,962		7,403
Device payment plan agreement receivables, net	$	20,891	$	20,186

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

Included in our device payment plan agreement receivables at both March 31, 2022 and December 31, 2021, are net device payment plan agreement receivables of $18.5 billion and $16.0 billion, respectively, which have been transferred to ABS Entities and continue to be reported in our condensed consolidated balance sheets. See Note 5 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 March 31, 2022 and December 31, 2021, the amount of the guarantee liability was $67 million and $77 million, 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 March 31, 2022 and December 31, 2021, the amount of trade-in liability was $372 million and $366 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 a credit class, each of which has specified offers of credit. This includes an account level spending limit and a maximum amount of credit allowed per device for Consumer customers or a required down payment percentage for Business customers.

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 less than 210 days as "new customers." The model for existing customers pools all Consumer and Business wireless customers based on 210 days or more as "existing customers."

The following table presents device payment plan agreement receivables, at amortized cost, as of March 31, 2022, by credit quality indicator and year of origination:

	Year of Origination(1)
(dollars in millions)	2022		2021		Prior to 2021		Total
New customers	$	751	$	2,098	$	364	$	3,213
Existing customers	4,222		11,853		2,357		18,432
Total	$	4,973	$	13,951	$	2,721	$	21,645

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

The data presented in the table above was last updated on March 31, 2022.

We assess indicators for the quality of our wireless service receivables portfolio as one overall pool. As of March 31, 2022, wireless service receivables, at amortized cost, originating in 2022 and 2021 were $4.6 billion and $226 million, 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 was as follows:

(dollars in millions)	Device Payment Plan Agreement Receivables(1)		Wireless Service Plan Receivables
Balance at January 1, 2022	$	759	$	130
Current period provision for expected credit losses	175		98
Write-offs charged against the allowance	(190)		(93)
Recoveries collected	10		10
Balance at March 31, 2022	$	754	$	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 and wireless service 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. 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 March 31,
(dollars in millions)	2022
Unbilled	$	20,468
Billed:
Current	963
Past due	214
Device payment plan agreement receivables, at amortized cost	$	21,645

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Fair Value Measurements and Financial Instruments

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements and Financial Instruments

Note 7. Fair Value Measurements and Financial Instruments

Recurring Fair Value Measurements

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of March 31, 2022:

(dollars in millions)	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Prepaid expenses and other:
Fixed income securities	$	—	$	17	$	—	$	17
Interest rate swaps	—		70		—		70
Cross currency swaps	—		12		—		12
Foreign exchange forwards	—		4		—		4
Interest rate caps	—		41		—		41
Other assets:
Fixed income securities	—		370		—		370
Interest rate swaps	—		1		—		1
Cross currency swaps	—		370		—		370
Interest rate caps	—		139		—		139
Total	$	—	$	1,024	$	—	$	1,024
Liabilities:
Other current liabilities:
Interest rate swaps	$	—	$	86	$	—	$	86
Foreign exchange forwards	—		4		—		4
Cross currency swaps	—		322		—		322
Interest rate caps	—		41		—		41
Forward starting interest rate swaps	—		99		—		99
Contingent consideration	—		—		327		327
Other liabilities:
Interest rate swaps	—		1,787		—		1,787
Cross currency swaps	—		1,524		—		1,524
Interest rate caps	—		139		—		139
Contingent consideration	—		—		212		212
Total	$	—	$	4,002	$	539	$	4,541

(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.

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2021:

(dollars in millions)	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Prepaid expenses and other:
Fixed income securities	$	—	$	18	$	—	$	18
Interest rate swaps	—		188		—		188
Cross currency swaps	—		9		—		9
Foreign exchange forwards	—		12		—		12
Other assets:
Fixed income securities	—		391		—		391
Interest rate swaps	—		285		—		285
Cross currency swaps	—		580		—		580
Interest rate caps	—		44		—		44
Total	$	—	$	1,527	$	—	$	1,527
Liabilities:
Other current liabilities:
Interest rate swaps	$	—	$	1	$	—	$	1
Forward starting interest rate swaps	—		302		—		302
Cross currency swaps	—		218		—		218
Contingent consideration	—		—		231		231
Other liabilities:
Interest rate swaps	—		665		—		665
Cross currency swaps	—		1,406		—		1,406
Interest rate caps	—		44		—		44
Contingent consideration	—		—		313		313
Total	$	—	$	2,636	$	544	$	3,180

(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 March 31, 2022 and December 31, 2021, the carrying amount of our investments without readily determinable fair values were $828 million and $808 million, respectively. During the three months ended March 31, 2022, there were insignificant adjustments due to observable price changes and there were no impairment charges. As of March 31, 2022, cumulative adjustments due to observable price changes and impairment charges were approximately $157 million and $63 million, respectively.

Verizon has a liability for contingent consideration related to its acquisition of TracFone, completed in November 2021. The fair value is calculated using a probability-weighted discounted cash flow model and represents a Level 3 measurement. Level 3 instruments include valuation based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. Subsequent to the Acquisition Date, at each reporting date, the contingent consideration liability is remeasured to fair value with changes recorded within Selling, general and administrative expense in our condensed consolidated statements of income.

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, 2021	$	149,543	$	106,599	$	62,606	$	—	$	169,205
At March 31, 2022	152,009		95,790		62,912		—		158,702

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, swaptions 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 March 31,		At December 31,
(dollars in millions)	2022		2021
Interest rate swaps	$	25,571	$	19,779
Cross currency swaps	32,502		32,502
Forward starting interest rate swaps	600		1,000
Foreign exchange forwards	975		932

The following tables summarize the activities of our designated derivatives:

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021
Interest Rate Swaps:
Notional value entered into	$	6,655	$	1,000
Notional value settled	863		895
Gain recognized in Interest expense	—		1
Cross Currency Swaps:
Notional value entered into	—		6,214
Notional value settled	—		—
Pre-tax loss recognized in Other comprehensive income	(430)		(226)
Forward Starting Interest Rate Swaps:
Notional value entered into	—		—
Notional value settled	400		1,000
Pre-tax gain recognized in Other comprehensive income	128		400
Treasury Rate Locks:
Notional value entered into	—		4,650
Notional value settled	—		4,650
Pre-tax gain recognized in Other comprehensive income	—		251

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021
Other, net Cash Flows from Operating Activities:
Cash received for settlement of interest rate swaps	$	40	$	57
Cash paid for settlement of forward starting interest rate swaps	(76)		(237)
Cash received for settlement of treasury rate locks	—		251

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 March 31,		At December 31,
(dollars in millions)	2022		2021
Carrying amount of hedged liabilities	$	23,653	$	20,027
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities	(1,677)		(113)
Cumulative amount of fair value hedging adjustment remaining for which hedge accounting has been discontinued	553		575

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.

In April 2022, we entered into interest rate swaps for a total notional amount of $500 million.

Cross Currency Swaps

We have entered into cross currency swaps previously designated as cash flow hedges through March 31, 2022 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. A portion of the gains recognized in Other comprehensive income was reclassified to Interest expense to offset the related pre-tax foreign currency transaction gain or loss on the underlying hedged item. See Note 9 for additional information.

On March 31, 2022, we elected to de-designate our cross currency swaps and re-designated these swaps as fair value hedges. For these hedges, we have elected to exclude the change in fair value of the cross currency swap related to both time value and cross currency basis spread from the assessment of hedge effectiveness (the excluded components). Changes in the fair value of the cross currency swaps attributable to changes in the spot rate of the hedged item and changes in the recorded value of the hedged debt due to changes in spot rates are recorded in the same income statement line item. We present exchange gains and losses from the conversion of foreign currency denominated debt as part of Interest expense.

Changes in the fair value of cross currency swaps attributable to the excluded components are recorded to Other comprehensive income and will be amortized to Interest expense on a systematic and rational basis over the remaining life of the hedging instrument. The amount remaining in Accumulated other comprehensive loss amounting to $1.0 billion related to cash flow hedges on the date of transition will be reclassified to earnings when the hedged item is recognized in earnings or when it becomes probable that the forecasted transactions will not occur.

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. We recognize gains and losses resulting from interest rate movements in Other comprehensive income.

In April 2022, we settled forward starting interest rate swaps with a total notional amount of $600 million.

Treasury Rate Locks

We enter into treasury rate locks to mitigate our interest rate risk. We recognize gains and losses resulting from interest rate movements in Other comprehensive income.

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. The notional amount of Euro-denominated debt designated as a net investment hedge was €750 million as of both March 31, 2022 and December 31, 2021.

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.

The following table summarizes the activity of our derivatives not designated in hedging relationships:

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021
Foreign Exchange Forwards:
Notional value entered into	$	2,646	$	3,525
Notional value settled	2,603		3,630
Pre-tax loss recognized in Other income (expense), net	(28)		(30)
Swaptions:
Notional value sold	1,000		—
Notional value settled	1,000		—
Pre-tax loss recognized in Interest expense	(33)		—

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.

Swaptions

We enter into swaptions to achieve a targeted mix of fixed and variable rate debt.

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 March 31, 2022, we did not hold any collateral and posted $0.3 billion of collateral related to derivative contracts under collateral exchange agreements, which were recorded as Prepaid expenses and other in our condensed consolidated balance sheets. At December 31, 2021, we held and posted $0.1 billion and an insignificant amount, respectively, of collateral related to derivative contracts under collateral exchange arrangements, which were recorded as Other current liabilities and Prepaid expenses and other, respectively, in our condensed consolidated balance sheets. 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

3 Months Ended

Mar. 31, 2022

Retirement Benefits [Abstract]

Employee Benefits

Note 8. 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 Income

The following table summarizes the components of net periodic benefit income related to our pension and postretirement health care and life insurance plans:

	(dollars in millions)
	Pension				Health Care and Life
Three Months Ended March 31,	2022		2021		2022		2021
Service cost - Cost of services	$	58	$	65	$	19	$	24
Service cost - Selling, general and administrative expense	8		9		4		5
Service cost	66		74		23		29
Amortization of prior service cost (credit)	15		15		(203)		(223)
Expected return on plan assets	(297)		(309)		(7)		(6)
Interest cost	110		95		83		72
Other components	(172)		(199)		(127)		(157)
Total	$	(106)	$	(125)	$	(104)	$	(128)

The service cost component of net periodic benefit 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 mark-to-market adjustments, if any, are recorded in Other income (expense), net.

Severance Payments

During the three months ended March 31, 2022, we paid severance benefits of $94 million. During the three months ended March 31, 2022, we recorded pre-tax severance activity of an insignificant amount. At March 31, 2022, we had a remaining severance liability of $444 million, a portion of which includes future contractual payments to separated employees.

Employer Contributions

During the three months ended March 31, 2022 and March 31, 2021, 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, 2022. There have been no significant changes with respect to the nonqualified pension and other postretirement benefit plans contributions in 2022.

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Equity and Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2022

Stockholders' Equity Note [Abstract]

Equity and Accumulated Other Comprehensive Loss

Note 9. Equity and Accumulated Other Comprehensive 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 March 31,	2022			2021
	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		13,861			13,404
Other		13			4
Balance at end of period		13,874			13,408
Retained Earnings
Balance at beginning of period		71,993			60,464
Net income attributable to Verizon		4,580			5,245
Dividends declared ($0.6400, $0.6275 per share)		(2,692)			(2,602)
Other		10			—
Balance at end of period		73,891			63,107
Accumulated Other Comprehensive Income (Loss)
Balance at beginning of period attributable to Verizon		(927)			(71)
Foreign currency translation adjustments		(29)			(38)
Unrealized gain on cash flow hedges		207			909
Unrealized loss on marketable securities		(18)			(5)
Defined benefit pension and postretirement plans		(139)			(155)
Other comprehensive income		21			711
Balance at end of period attributable to Verizon		(906)			640
Treasury Stock
Balance at beginning of period	(93,635)	(4,104)		(153,304)	(6,719)
Employee plans	1,842	81		1,935	85
Shareholder plans	3	—		3	—
Balance at end of period	(91,790)	(4,023)		(151,366)	(6,634)
Deferred Compensation-ESOPs and Other
Balance at beginning of period		538			335
Restricted stock equity grant		109			99
Amortization		(150)			(152)
Balance at end of period		497			282
Noncontrolling Interests
Balance at beginning of period		1,410			1,430
Total comprehensive income		131			133
Distributions and other		(128)			(112)
Balance at end of period		1,413			1,451
Total Equity		$	85,175		$	72,683

Common Stock

Verizon did not repurchase any shares of Verizon common stock through its previously authorized share buyback program during the three months ended March 31, 2022. At March 31, 2022, 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 1.8 million shares of common stock issued from Treasury stock during the three months ended March 31, 2022.

Accumulated Other Comprehensive Loss

The changes in the balances of Accumulated other comprehensive 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, 2022	$	(545)	$	(1,472)	$	16	$	1,074	$	(927)
Other comprehensive loss	(29)		(224)		(18)		—		(271)
Amounts reclassified to net income	—		431		—		(139)		292
Net other comprehensive income (loss)	(29)		207		(18)		(139)		21
Balance at March 31, 2022	$	(574)	$	(1,265)	$	(2)	$	935	$	(906)

    

The amounts presented above in Net other comprehensive income (loss) are net of taxes. The amounts reclassified to net income related to unrealized gain (loss) on cash flow hedges in the table above are included in Interest expense in our condensed consolidated statements of income. See Note 7 for additional information. The amounts reclassified to net income related to unrealized gain (loss) on marketable securities in the table above are included in Other income (expense), net in our condensed consolidated statements of income. 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 8 for additional information.

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Segment Information

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Information

Note 10. Segment Information

Reportable Segments

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

Our segments and their principal activities consist of the following:

Segment	Description
Verizon Consumer Group	Our Consumer segment provides consumer-focused wireless and wireline communications services and products. Our wireless services are provided across one of the most extensive wireless networks in the U.S. under the Verizon brand, TracFone brands and through wholesale and other arrangements. We also provide fixed wireless access (FWA) broadband 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.
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 also provide FWA broadband 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.

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 primarily includes insurance captives, investments in unconsolidated businesses and development stage businesses that support our strategic initiatives, as well as unallocated corporate expenses, certain pension and other employee benefit related costs and interest and financing expenses. Corporate and other also includes the historical results of divested businesses, including Verizon Media, 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.

We completed the sale of Verizon Media on September 1, 2021. Refer to Note 3 for additional information on the sale of Verizon Media.

The following table provides operating financial information for our two reportable segments:

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021
External Operating Revenues
Consumer
Service	$	18,126	$	16,566
Wireless equipment	5,374		4,192
Other	1,742		1,982
Total Consumer	25,242		22,740
Business
Small and Medium Business	3,037		2,825
Global Enterprise	2,460		2,557
Public Sector and Other	1,552		1,645
Wholesale	647		735
Total Business	7,696		7,762
Total reportable segments	$	32,938	$	30,502
Intersegment Revenues
Consumer	$	50	$	58
Business	13		19
Total reportable segments	$	63	$	77
Total Operating Revenues
Consumer	$	25,292	$	22,798
Business(1)	7,709		7,781
Total reportable segments	$	33,001	$	30,579
Operating Income
Consumer	$	7,319	$	7,519
Business	673		899
Total reportable segments	$	7,992	$	8,418

(1) Service and other revenues and Wireless equipment revenues included in our Business segment amounted to approximately $6.7 billion and $962 million, respectively, for the three months ended March 31, 2022, and approximately $7.0 billion and $752 million, respectively, for the three months ended March 31, 2021.

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

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021
Consumer	$	2,911	$	2,860
Business	295		276
Total Fios revenue	$	3,206	$	3,136

The following table provides Wireless service revenue for our reportable segments and includes intersegment activity:

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021
Consumer	$	15,217	$	13,684
Business	3,125		3,060
Total Wireless service revenue	$	18,342	$	16,744

Reconciliation to Consolidated Financial Information

The reconciliation of segment operating revenues and operating income to consolidated operating revenues and operating income below includes the effects of the special items that the chief operating decision maker does not consider in assessing segment performance, primarily due to their nature.

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

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021
Total reportable segment operating revenues	$	33,001	$	30,579
Corporate and other	618		2,422
Eliminations	(65)		(134)
Total consolidated operating revenues	$	33,554	$	32,867

A reconciliation of the total reportable segment's operating income to consolidated income before provision for income taxes is as follows:

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021
Total reportable segment operating income	$	7,992	$	8,418
Corporate and other	(24)		(233)
Other components of net periodic benefit charges (Note 8)	(172)		(192)
Loss on spectrum licenses (Note 3)	—		(223)
Total consolidated operating income	7,796		7,770
Equity in earnings (losses) of unconsolidated businesses	(3)		8
Other income (expense), net	(924)		401
Interest expense	(786)		(1,101)
Income Before Provision For Income Taxes	$	6,083	$	7,078

No single customer accounted for more than 10% of our total operating revenues during the three months ended March 31, 2022 or 2021.

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

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 11. 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.

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Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2022

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, 2021. 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.

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)

3 Months Ended

Mar. 31, 2022

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 March 31,		At December 31,		Increase / (Decrease)
(dollars in millions)	2022		2021
Cash and cash equivalents	$	1,661	$	2,921	$	(1,260)
Restricted cash:
Prepaid expenses and other	1,430		1,094		336
Other assets	141		146		(5)
Cash, cash equivalents and restricted cash	$	3,232	$	4,161	$	(929)

Schedule of Restricted Cash

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

	At March 31,		At December 31,		Increase / (Decrease)
(dollars in millions)	2022		2021
Cash and cash equivalents	$	1,661	$	2,921	$	(1,260)
Restricted cash:
Prepaid expenses and other	1,430		1,094		336
Other assets	141		146		(5)
Cash, cash equivalents and restricted cash	$	3,232	$	4,161	$	(929)

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Revenues and Contract Costs (Tables)

3 Months Ended

Mar. 31, 2022

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 March 31,		At January 1,		At March 31,		At January 1,
(dollars in millions)	2022		2022		2021		2021
Receivables(1)	$	10,419	$	10,758	$	10,821	$	12,029
Device payment plan agreement receivables(2)	13,478		12,888		10,409		10,358

(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 6. Receivables derived from the sale of equipment on a device payment plan through an authorized agent are excluded.

Contract with Customer, Asset and Liability

The following table presents information about contract balances:

	At March 31,		At January 1,		At March 31,		At January 1,
(dollars in millions)	2022		2022		2021		2021
Contract asset	$	909	$	934	$	923	$	937
Contract liability(1)	7,504		7,229		5,783		5,598

(1) Revenue recognized related to contract liabilities existing at January 1, 2022 and January 1, 2021 were $4.3 billion and $3.9 billion for the three months ended March 31, 2022 and March 31, 2021, respectively.

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

	At March 31,		At December 31,
(dollars in millions)	2022		2021
Assets
Prepaid expenses and other	$	720	$	739
Other assets	189		195
Total	$	909	$	934
Liabilities
Other current liabilities	$	6,222	$	6,053
Other liabilities	1,282		1,176
Total	$	7,504	$	7,229

Capitalized Contract Cost

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

	At March 31,		At December 31,
(dollars in millions)	2022		2021
Assets
Prepaid expenses and other	$	2,454	$	2,432
Other assets	2,262		2,259
Total	$	4,716	$	4,691

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Acquisitions and Divestitures (Tables)

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary allocation of the consideration paid and payable to the identified assets acquired and liabilities assumed as of the Acquisition Date. The purchase price allocation is preliminary and is subject to revision as additional information about the fair value of the assets acquired and liabilities assumed, including related deferred income taxes, become available.

	November 23,		Measurement Period Adjustments(1)		Adjusted
(dollars in millions)	2021				Fair Value
Consideration:
Cash, net of cash acquired and working capital and other adjustments	$	3,491	$	—	$	3,491
Fair value of Verizon common stock (57,596,544 shares)	2,981		—		2,981
Fair value of contingent consideration to be paid	542		—		542
Total consideration	$	7,014	$	—	$	7,014
Assets acquired:
Current assets	$	1,370	$	(4)	$	1,366
Property, plant and equipment, net	96		(1)		95
Goodwill	3,723		30		3,753
Other intangible assets	4,374		—		4,374
Other assets	731		(3)		728
Total assets acquired	$	10,294	$	22	$	10,316
Liabilities assumed:
Current liabilities	1,433		32		1,465
Deferred income taxes	1,007		(10)		997
Other liabilities	840		—		840
Total liabilities assumed	$	3,280	$	22	$	3,302
Net assets acquired	$	7,014	$	—	$	7,014

(1) Adjustments to the fair value measurements reflect new information obtained about facts and circumstances that existed as of the Acquisition Date, that if known, would have affected the measurement of the amounts recognized as of that date. The most significant adjustments related to an increase in goodwill and deferred commission costs.

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Wireless Licenses, Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Carrying Amount of Wireless Licenses

The carrying amounts of our Wireless licenses are as follows:

	At March 31,		At December 31,
(dollars in millions)	2022		2021
Wireless licenses	$	148,083	$	147,619

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, 2022	$	21,042	$	7,515	$	46	$	28,603
Acquisitions (1)	30		—		—		30
Reclassifications, adjustments and other	—		(2)		(2)		(4)
Balance at March 31, 2022	$	21,072	$	7,513	$	44	$	28,629

(1) The change in goodwill relates to the acquisition of TracFone. 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 March 31, 2022						At December 31, 2021
(dollars in millions)	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
Customer lists (5 to 13 years)	$	4,202	$	(1,281)	$	2,921	$	4,201	$	(1,126)	$	3,075
Non-network internal-use software (5 to 7 years)	21,659		(15,258)		6,401		21,310		(14,897)		6,413
Other (4 to 25 years)	2,984		(874)		2,110		2,974		(785)		2,189
Total	$	28,845	$	(17,413)	$	11,432	$	28,485	$	(16,808)	$	11,677

Amortization Expense for Other Intangible Assets

The amortization expense for Other intangible assets was as follows: 

	Three Months Ended
(dollars in millions)	March 31,
2022	$	635
2021	629

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 2022	$	1,886
2023	2,329
2024	2,037
2025	1,848
2026	1,577
2027	842

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Debt (Tables)

3 Months Ended

Mar. 31, 2022

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 three months ended March 31, 2022.

Tender Offers

(dollars in millions)	Principal Amount Purchased		Cash Consideration(1)
Verizon and subsidiary 2.987% - 8.950% notes, due 2032 - 2056	$	5,032	$	5,587

(1) The total cash consideration includes the tender offer consideration, plus any accrued and unpaid interest to the date of purchase.

Repayments, Redemptions and Repurchases

(dollars in millions)	Principal Repaid/ Redeemed/ Repurchased		Amount Paid (1)
Verizon floating rate (London Inter-Bank Offered Rate + 1.000%) notes due 2022	$	1,094	$	1,097

(1) Represents amount paid to repay, redeem, or repurchase, including any accrued interest.

Issuances

(dollars in millions)	Principal Amount Issued		Net Proceeds (1)
Verizon 3.875% notes due 2052 (2)	$	1,000	$	982
Verizon 4.100% notes due 2055	655		650
Total	$	1,655	$	1,632

(1) Net proceeds were net of underwriting discounts and other issuance costs.

(2) An amount equal to the net proceeds from this green bond is expected to be used to fund, in whole or in part, certain renewable energy projects, including new and existing investments made by us during the period from December 1, 2021 through the maturity date of the green bond.

During the three months ended March 31, 2022, we completed the following ABS Notes transactions:

(dollars in millions)	Interest Rates %	Expected Weighted-average Life to Maturity (in years)	Principal Amount Issued
January 2022
Series 2022-1
A Senior class notes	1.040	1.49	$	799
B Junior class notes	1.270	1.49	64
C Junior class notes	1.390	1.49	37
Series 2022-2
A Senior class notes	1.530	2.99	710
B Junior class notes	1.830	2.99	57
C Junior class notes	2.010	2.99	33
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 March 31,		At December 31,
(dollars in millions)	2022		2021
Assets
Accounts receivable, net	$	11,682	$	10,705
Prepaid expenses and other	1,432		1,094
Other assets	7,050		5,455
Liabilities
Accounts payable and accrued liabilities	10		10
Debt maturing within one year	6,357		5,024
Long-term debt	9,745		9,178

Schedule of Line of Credit Facilities

Long-Term Credit Facilities

				At March 31, 2022
(dollars in millions)	Maturities	Facility Capacity		Unused Capacity		Principal Amount Outstanding
Verizon revolving credit facility (1)	2024	$	9,500	$	9,424	N/A
Various export credit facilities (2)	2024 - 2030	9,000		—		$	6,471
Total		$	18,500	$	9,424	$	6,471

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 three months ended March 31, 2022 and 2021, we drew down $2.0 billion and $470 million, respectively, 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)

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Schedule of Receivables, Net

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

	At March 31, 2022
(dollars in millions)	Device payment plan agreement		Wireless service		Other receivables(1)		Total
Accounts receivable	$	13,385	$	4,790	$	6,299	$	24,474
Less Allowance for credit losses	456		145		258		859
Accounts receivable, net of allowance	$	12,929	$	4,645	$	6,041	$	23,615

(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 March 31,		At December 31,
(dollars in millions)	2022		2021
Device payment plan agreement receivables, gross	$	21,982	$	21,303
Unamortized imputed interest	(337)		(358)
Device payment plan agreement receivables, at amortized cost	21,645		20,945
Allowance (1)	(754)		(759)
Device payment plan agreement receivables, net	$	20,891	$	20,186
Classified in our condensed consolidated balance sheets:
Accounts receivable, net	$	12,929	$	12,783
Other assets	7,962		7,403
Device payment plan agreement receivables, net	$	20,891	$	20,186

(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 March 31, 2022, by credit quality indicator and year of origination:

	Year of Origination(1)
(dollars in millions)	2022		2021		Prior to 2021		Total
New customers	$	751	$	2,098	$	364	$	3,213
Existing customers	4,222		11,853		2,357		18,432
Total	$	4,973	$	13,951	$	2,721	$	21,645

(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 was as follows:

(dollars in millions)	Device Payment Plan Agreement Receivables(1)		Wireless Service Plan Receivables
Balance at January 1, 2022	$	759	$	130
Current period provision for expected credit losses	175		98
Write-offs charged against the allowance	(190)		(93)
Recoveries collected	10		10
Balance at March 31, 2022	$	754	$	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 March 31,
(dollars in millions)	2022
Unbilled	$	20,468
Billed:
Current	963
Past due	214
Device payment plan agreement receivables, at amortized cost	$	21,645

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Fair Value Measurements and Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

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 March 31, 2022:

(dollars in millions)	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Prepaid expenses and other:
Fixed income securities	$	—	$	17	$	—	$	17
Interest rate swaps	—		70		—		70
Cross currency swaps	—		12		—		12
Foreign exchange forwards	—		4		—		4
Interest rate caps	—		41		—		41
Other assets:
Fixed income securities	—		370		—		370
Interest rate swaps	—		1		—		1
Cross currency swaps	—		370		—		370
Interest rate caps	—		139		—		139
Total	$	—	$	1,024	$	—	$	1,024
Liabilities:
Other current liabilities:
Interest rate swaps	$	—	$	86	$	—	$	86
Foreign exchange forwards	—		4		—		4
Cross currency swaps	—		322		—		322
Interest rate caps	—		41		—		41
Forward starting interest rate swaps	—		99		—		99
Contingent consideration	—		—		327		327
Other liabilities:
Interest rate swaps	—		1,787		—		1,787
Cross currency swaps	—		1,524		—		1,524
Interest rate caps	—		139		—		139
Contingent consideration	—		—		212		212
Total	$	—	$	4,002	$	539	$	4,541

(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.

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2021:

(dollars in millions)	Level 1(1)		Level 2(2)		Level 3(3)		Total
Assets:
Prepaid expenses and other:
Fixed income securities	$	—	$	18	$	—	$	18
Interest rate swaps	—		188		—		188
Cross currency swaps	—		9		—		9
Foreign exchange forwards	—		12		—		12
Other assets:
Fixed income securities	—		391		—		391
Interest rate swaps	—		285		—		285
Cross currency swaps	—		580		—		580
Interest rate caps	—		44		—		44
Total	$	—	$	1,527	$	—	$	1,527
Liabilities:
Other current liabilities:
Interest rate swaps	$	—	$	1	$	—	$	1
Forward starting interest rate swaps	—		302		—		302
Cross currency swaps	—		218		—		218
Contingent consideration	—		—		231		231
Other liabilities:
Interest rate swaps	—		665		—		665
Cross currency swaps	—		1,406		—		1,406
Interest rate caps	—		44		—		44
Contingent consideration	—		—		313		313
Total	$	—	$	2,636	$	544	$	3,180

(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, 2021	$	149,543	$	106,599	$	62,606	$	—	$	169,205
At March 31, 2022	152,009		95,790		62,912		—		158,702

Notional Amounts of Outstanding Derivative Instruments

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

	At March 31,		At December 31,
(dollars in millions)	2022		2021
Interest rate swaps	$	25,571	$	19,779
Cross currency swaps	32,502		32,502
Forward starting interest rate swaps	600		1,000
Foreign exchange forwards	975		932

Schedule Of Derivative Instruments Activity

The following tables summarize the activities of our designated derivatives:

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021
Interest Rate Swaps:
Notional value entered into	$	6,655	$	1,000
Notional value settled	863		895
Gain recognized in Interest expense	—		1
Cross Currency Swaps:
Notional value entered into	—		6,214
Notional value settled	—		—
Pre-tax loss recognized in Other comprehensive income	(430)		(226)
Forward Starting Interest Rate Swaps:
Notional value entered into	—		—
Notional value settled	400		1,000
Pre-tax gain recognized in Other comprehensive income	128		400
Treasury Rate Locks:
Notional value entered into	—		4,650
Notional value settled	—		4,650
Pre-tax gain recognized in Other comprehensive income	—		251

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021
Other, net Cash Flows from Operating Activities:
Cash received for settlement of interest rate swaps	$	40	$	57
Cash paid for settlement of forward starting interest rate swaps	(76)		(237)
Cash received for settlement of treasury rate locks	—		251

The following table summarizes the activity of our derivatives not designated in hedging relationships:

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021
Foreign Exchange Forwards:
Notional value entered into	$	2,646	$	3,525
Notional value settled	2,603		3,630
Pre-tax loss recognized in Other income (expense), net	(28)		(30)
Swaptions:
Notional value sold	1,000		—
Notional value settled	1,000		—
Pre-tax loss recognized in Interest expense	(33)		—

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 March 31,		At December 31,
(dollars in millions)	2022		2021
Carrying amount of hedged liabilities	$	23,653	$	20,027
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities	(1,677)		(113)
Cumulative amount of fair value hedging adjustment remaining for which hedge accounting has been discontinued	553		575

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Employee Benefits (Tables)

3 Months Ended

Mar. 31, 2022

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 income related to our pension and postretirement health care and life insurance plans:

	(dollars in millions)
	Pension				Health Care and Life
Three Months Ended March 31,	2022		2021		2022		2021
Service cost - Cost of services	$	58	$	65	$	19	$	24
Service cost - Selling, general and administrative expense	8		9		4		5
Service cost	66		74		23		29
Amortization of prior service cost (credit)	15		15		(203)		(223)
Expected return on plan assets	(297)		(309)		(7)		(6)
Interest cost	110		95		83		72
Other components	(172)		(199)		(127)		(157)
Total	$	(106)	$	(125)	$	(104)	$	(128)

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Equity and Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Mar. 31, 2022

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 March 31,	2022			2021
	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		13,861			13,404
Other		13			4
Balance at end of period		13,874			13,408
Retained Earnings
Balance at beginning of period		71,993			60,464
Net income attributable to Verizon		4,580			5,245
Dividends declared ($0.6400, $0.6275 per share)		(2,692)			(2,602)
Other		10			—
Balance at end of period		73,891			63,107
Accumulated Other Comprehensive Income (Loss)
Balance at beginning of period attributable to Verizon		(927)			(71)
Foreign currency translation adjustments		(29)			(38)
Unrealized gain on cash flow hedges		207			909
Unrealized loss on marketable securities		(18)			(5)
Defined benefit pension and postretirement plans		(139)			(155)
Other comprehensive income		21			711
Balance at end of period attributable to Verizon		(906)			640
Treasury Stock
Balance at beginning of period	(93,635)	(4,104)		(153,304)	(6,719)
Employee plans	1,842	81		1,935	85
Shareholder plans	3	—		3	—
Balance at end of period	(91,790)	(4,023)		(151,366)	(6,634)
Deferred Compensation-ESOPs and Other
Balance at beginning of period		538			335
Restricted stock equity grant		109			99
Amortization		(150)			(152)
Balance at end of period		497			282
Noncontrolling Interests
Balance at beginning of period		1,410			1,430
Total comprehensive income		131			133
Distributions and other		(128)			(112)
Balance at end of period		1,413			1,451
Total Equity		$	85,175		$	72,683

Schedule of Components in Accumulated Other Comprehensive Income

The changes in the balances of Accumulated other comprehensive 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, 2022	$	(545)	$	(1,472)	$	16	$	1,074	$	(927)
Other comprehensive loss	(29)		(224)		(18)		—		(271)
Amounts reclassified to net income	—		431		—		(139)		292
Net other comprehensive income (loss)	(29)		207		(18)		(139)		21
Balance at March 31, 2022	$	(574)	$	(1,265)	$	(2)	$	935	$	(906)

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2022

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, TracFone brands and through wholesale and other arrangements. We also provide fixed wireless access (FWA) broadband 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.
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 also provide FWA broadband 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 following table provides operating financial information for our two reportable segments:

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021
External Operating Revenues
Consumer
Service	$	18,126	$	16,566
Wireless equipment	5,374		4,192
Other	1,742		1,982
Total Consumer	25,242		22,740
Business
Small and Medium Business	3,037		2,825
Global Enterprise	2,460		2,557
Public Sector and Other	1,552		1,645
Wholesale	647		735
Total Business	7,696		7,762
Total reportable segments	$	32,938	$	30,502
Intersegment Revenues
Consumer	$	50	$	58
Business	13		19
Total reportable segments	$	63	$	77
Total Operating Revenues
Consumer	$	25,292	$	22,798
Business(1)	7,709		7,781
Total reportable segments	$	33,001	$	30,579
Operating Income
Consumer	$	7,319	$	7,519
Business	673		899
Total reportable segments	$	7,992	$	8,418

(1) Service and other revenues and Wireless equipment revenues included in our Business segment amounted to approximately $6.7 billion and $962 million, respectively, for the three months ended March 31, 2022, and approximately $7.0 billion and $752 million, respectively, for the three months ended March 31, 2021.

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

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021
Consumer	$	2,911	$	2,860
Business	295		276
Total Fios revenue	$	3,206	$	3,136

The following table provides Wireless service revenue for our reportable segments and includes intersegment activity:

	Three Months Ended
	March 31,
(dollars in millions)	2022		2021
Consumer	$	15,217	$	13,684
Business	3,125		3,060
Total Wireless service revenue	$	18,342	$	16,744

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
	March 31,
(dollars in millions)	2022		2021
Total reportable segment operating revenues	$	33,001	$	30,579
Corporate and other	618		2,422
Eliminations	(65)		(134)
Total consolidated operating revenues	$	33,554	$	32,867

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
	March 31,
(dollars in millions)	2022		2021
Total reportable segment operating income	$	7,992	$	8,418
Corporate and other	(24)		(233)
Other components of net periodic benefit charges (Note 8)	(172)		(192)
Loss on spectrum licenses (Note 3)	—		(223)
Total consolidated operating income	7,796		7,770
Equity in earnings (losses) of unconsolidated businesses	(3)		8
Other income (expense), net	(924)		401
Interest expense	(786)		(1,101)
Income Before Provision For Income Taxes	$	6,083	$	7,078

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Basis of Presentation - Earnings Per Common Share (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Accounting Policies [Abstract]
Dilutive securities (in shares)	1.5	1.6

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Basis of Presentation - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 1,661		$ 2,921
Cash, cash equivalents and restricted cash	3,232	$ 11,495	4,161	$ 23,498
Increase (decrease) in cash, cash equivalents, restricted cash and assets held for sale	(929)	$ (12,003)
Cash and cash equivalents
Cash and Cash Equivalents [Line Items]
Increase (decrease) in cash, cash equivalents, restricted cash and assets held for sale	(1,260)
Prepaid expenses and other
Cash and Cash Equivalents [Line Items]
Restricted cash	1,430		1,094
Increase (decrease) in cash, cash equivalents, restricted cash and assets held for sale	336
Other assets
Cash and Cash Equivalents [Line Items]
Restricted cash	141		$ 146
Increase (decrease) in cash, cash equivalents, restricted cash and assets held for sale	$ (5)

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Revenues and Contract Costs - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022 USD ($) segment	Mar. 31, 2021 USD ($)
Disaggregation of Revenue [Line Items]
Number of reportable segments | segment	2
Revenue from arrangements not accounted for under Topic 606	$ 830,000,000	$ 735,000,000
Contract description of timing	Contracts for wireless services, with or without promotional credits that require maintenance of service, are generally either month-to-month and cancellable at any time, considered to contain terms ranging from greater than one month to up to thirty-six months (typically under a device payment plan), or contain terms ranging from greater than one month to up to twenty-four months (typically under a fixed-term plan).
Amortization of deferred contract costs	$ 749,000,000	765,000,000
Contract assets impairment charge	$ 0	$ 0
Wireless postpaid contracts
Disaggregation of Revenue [Line Items]
Percentage of month-to-month contracts of total service contracts	94.00%	91.00%
Wireline Consumer and Small and Medium Business contracts
Disaggregation of Revenue [Line Items]
Percentage of month-to-month contracts of total service contracts	88.00%	78.00%
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 nine years
Minimum
Disaggregation of Revenue [Line Items]
Deferred contract cost, amortization period	2 years
Minimum | Wireless Service, Option One
Disaggregation of Revenue [Line Items]
Customer contracts service term	1 month
Minimum | Wireless Service, Option Two
Disaggregation of Revenue [Line Items]
Customer contracts service term	1 month
Minimum | Consumer
Disaggregation of Revenue [Line Items]
Customer contracts service term	12 months
Minimum | Consumer | Reseller Arrangements
Disaggregation of Revenue [Line Items]
Customer contracts service term	2 years
Maximum
Disaggregation of Revenue [Line Items]
Deferred contract cost, amortization period	6 years
Maximum | Wireless Service, Option One
Disaggregation of Revenue [Line Items]
Customer contracts service term	36 months
Maximum | Wireless Service, Option Two
Disaggregation of Revenue [Line Items]
Customer contracts service term	24 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	Mar. 31, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 14.4
Revenue, remaining performance obligation, expected timing of satisfaction, period	9 months
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	$ 11.3
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 4.8
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]: 2022-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 2.1
Revenue, remaining performance obligation, expected timing of satisfaction, period	9 years

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Revenues and Contract Costs - Schedule of Receivables from Contracts with Customers (Details) - USD ($) $ in Millions	Mar. 31, 2022	Jan. 01, 2022	Mar. 31, 2021	Jan. 01, 2021
Revenue from Contract with Customer [Abstract]
Receivables	$ 10,419	$ 10,758	$ 10,821	$ 12,029
Device payment plan agreement receivables	$ 13,478	$ 12,888	$ 10,409	$ 10,358

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Revenues and Contract Costs - Contract with Customer, Asset and Liability (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Jan. 01, 2022	Dec. 31, 2021	Jan. 01, 2021
Disaggregation of Revenue [Line Items]
Contract asset	$ 909	$ 923	$ 934	$ 934	$ 937
Contract liability	7,504	5,783	$ 7,229	7,229	$ 5,598
Revenue recognized related to contract liabilities existing	4,300	$ 3,900
Prepaid expenses and other
Disaggregation of Revenue [Line Items]
Contract asset	720			739
Other assets
Disaggregation of Revenue [Line Items]
Contract asset	189			195
Other current liabilities
Disaggregation of Revenue [Line Items]
Contract liability	6,222			6,053
Other liabilities
Disaggregation of Revenue [Line Items]
Contract liability	$ 1,282			$ 1,176

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Revenues and Contract Costs - Schedule of Cost Incurred to Obtain or Fulfill Contracts with Customers (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Capitalized Contract Cost [Line Items]
Cost incurred to obtain or fulfill contracts with customers	$ 4,716	$ 4,691
Prepaid expenses and other
Capitalized Contract Cost [Line Items]
Cost incurred to obtain or fulfill contracts with customers	2,454	2,432
Other assets
Capitalized Contract Cost [Line Items]
Cost incurred to obtain or fulfill contracts with customers	$ 2,262	$ 2,259

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Acquisitions and Divestitures - Acquisitions (Details) customer in Thousands, $ in Millions		1 Months Ended			3 Months Ended		12 Months Ended
	Nov. 23, 2021 USD ($) shares	Jan. 31, 2022 USD ($)	Mar. 31, 2021 USD ($) county customer	Feb. 28, 2021 USD ($)	Mar. 31, 2022 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($)
Business Acquisition [Line Items]
Payments for deposits					$ 1,838	$ 44,783
Loss on disposition of licenses, pre-tax					0	223
Business acquisition, purchase price in cash					0	408
Goodwill					$ 28,629		$ 28,603
Spectrum licenses | Spectrum Licenses, C-Band
Business Acquisition [Line Items]
Payments for deposits		$ 1,400				44,600	45,500
Estimated clearing and incentive costs				$ 7,700
Spectrum licenses | Spectrum Licenses, C-Band | Projected Clearing Costs
Business Acquisition [Line Items]
Payments for deposits							$ 1,300
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
TracFone Wireless, Inc.
Business Acquisition [Line Items]
Business acquisition, purchase price in cash	$ 3,491
Number of shares issuable (in shares) | shares	57,596,544
Common stock value consideration to acquire business	$ 2,981
Future cash consideration related to achievement of certain performance measures	650
Estimated fair value of the contingent consideration	542
Other intangible assets	4,374
Contingent liability	730
Indemnification assets	730
Business acquisition consideration	7,014
Property, plant and equipment, net	96
Goodwill	3,723
TracFone Wireless, Inc. | Customer Relationships
Business Acquisition [Line Items]
Other intangible assets	2,300
TracFone Wireless, Inc. | Distribution Relationships
Business Acquisition [Line Items]
Other intangible assets	1,300
TracFone Wireless, Inc. | Trade Names
Business Acquisition [Line Items]
Other intangible assets	744
TracFone Wireless, Inc. | Acquired Technology
Business Acquisition [Line Items]
Other intangible assets	$ 110
Bluegrass Cellular, Certain Assets
Business Acquisition [Line Items]
Other intangible assets			$ 135			135
Number of customers | customer			210
Number of counties customers are serviced | county			34
Business acquisition consideration			$ 412
Property, plant and equipment, net			141			141
Goodwill			$ 92			$ 92

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Acquisitions and Divestitures - TracFone Wireless, Inc. (Details) - USD ($) $ in Millions		3 Months Ended
	Nov. 23, 2021	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]
Cash, net of cash acquired and working capital and other adjustments		$ 0	$ 408
Assets acquired:
Goodwill		$ 28,629		$ 28,603
TracFone Wireless, Inc.
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]
Cash, net of cash acquired and working capital and other adjustments	$ 3,491
Measurement period adjustment, cash, net of cash acquired	0
Fair value of Verizon common stock (57,596,544 shares)	2,981
Measurement period adjustment, fair value of Verizon common stock	0
Fair value of contingent consideration to be paid	542
Measurement period adjustment, fair value of contingent consideration to be paid	0
Total consideration	7,014
Measurement period adjustment, total consideration	0
Assets acquired:
Current assets	1,370
Measurement period adjustment, current assets	(4)
Property, plant and equipment, net	96
Measurement period adjustment, property, plant, ,and equipment	(1)
Goodwill	3,723
Measurement period adjustment, goodwill	30
Other intangible assets	4,374
Measurement period adjustment, other intangible assets	0
Other assets	731
Measurement period adjustment, other assets	(3)
Total assets acquired	10,294
Measurement period adjustment, total assets acquired	22
Liabilities assumed:
Current liabilities	1,433
Measurement period adjustment, current liabilities	32
Deferred income taxes	1,007
Measurement period adjustment, deferred income taxes	(10)
Other liabilities	840
Measurement period adjustment, other liabilities	0
Total liabilities assumed	3,280
Measurement period adjustment, total liabilities assumed	22
Net assets acquired	7,014
Measurement period adjustment, net assets acquired	$ 0
Number of shares issuable (in shares)	57,596,544
TracFone Wireless, Inc. | Adjusted Fair Value
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]
Cash, net of cash acquired and working capital and other adjustments	$ 3,491
Fair value of Verizon common stock (57,596,544 shares)	2,981
Fair value of contingent consideration to be paid	542
Total consideration	7,014
Assets acquired:
Current assets	1,366
Property, plant and equipment, net	95
Goodwill	3,753
Other intangible assets	4,374
Other assets	728
Total assets acquired	10,316
Liabilities assumed:
Current liabilities	1,465
Deferred income taxes	997
Other liabilities	840
Total liabilities assumed	3,302
Net assets acquired	$ 7,014

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Acquisitions and Divestitures - Verizon Media (Details) - USD ($) $ in Millions			3 Months Ended
	Sep. 01, 2021	May 02, 2021	Mar. 31, 2021	Mar. 31, 2022	Sep. 28, 2021
Media Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue from contract with customer			$ 1,900
Media Business | 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%
Media Business | Apollo Global Management Inc.
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash consideration	$ 4,300	$ 4,300
Administrative services support period	12 months
Technical services support period	18 months
Media Business | 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	$ 496	$ 750		$ 396
Limited partnership units redeemed					$ 100
Media Business | Apollo Global Management Inc. | Common Limited Partnership Units
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration, limited partnership units	$ 124
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	Mar. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Wireless licenses	$ 148,083	$ 147,619

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Wireless Licenses, Goodwill and Other Intangible Assets - Additional Information (Detail) - Wireless Licenses - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Indefinite-lived Intangible Assets [Line Items]
Wireless licenses under development	$ 53,200	$ 53,500
Interest costs capitalized	$ 452	79
Average remaining renewal period of wireless license portfolio (in years)	15 years
Deposit Assets, Wireless License Noncurrent
Indefinite-lived Intangible Assets [Line Items]
Interest costs capitalized		$ 35

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Wireless Licenses, Goodwill and Other Intangible Assets - Changes in Carrying Value of Goodwill (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 28,603
Acquisitions	30
Reclassifications, adjustments and other	(4)
Ending balance	28,629
Operating Segments | Consumer
Goodwill [Roll Forward]
Beginning balance	21,042
Acquisitions	30
Reclassifications, adjustments and other	0
Ending balance	21,072
Operating Segments | Business
Goodwill [Roll Forward]
Beginning balance	7,515
Acquisitions	0
Reclassifications, adjustments and other	(2)
Ending balance	7,513
Other
Goodwill [Roll Forward]
Beginning balance	46
Acquisitions	0
Reclassifications, adjustments and other	(2)
Ending balance	$ 44

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Wireless Licenses, Goodwill and Other Intangible Assets - Composition of Other Intangible Assets, Net (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Gross Amount	$ 28,845	$ 28,485
Accumulated Amortization	(17,413)	(16,808)
Net Amount	11,432	11,677
Customer Lists
Finite-Lived Intangible Assets [Line Items]
Gross Amount	4,202	4,201
Accumulated Amortization	(1,281)	(1,126)
Net Amount	$ 2,921	3,075
Customer Lists | Minimum
Finite-Lived Intangible Assets [Line Items]
Other intangible asset, useful life	5 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	$ 21,659	21,310
Accumulated Amortization	(15,258)	(14,897)
Net Amount	$ 6,401	6,413
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	$ 2,984	2,974
Accumulated Amortization	(874)	(785)
Net Amount	$ 2,110	$ 2,189
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

XML

Wireless Licenses, Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense for other intangible assets	$ 635	$ 629
Remainder of 2022	1,886
2023	2,329
2024	2,037
2025	1,848
2026	1,577
2027	$ 842

XML

Debt - Schedule of Senior Unsecured Debt Securities (Details) - Verizon and subsidiary 2.987% - 8.950% notes, due 2032 - 2056 - Debt Tender Offers $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)
Debt Instrument [Line Items]
Principal Amount Purchased	$ 5,032
Cash consideration	$ 5,587
Minimum
Debt Instrument [Line Items]
Stated interest rate on debt instrument	2.987%
Maximum
Debt Instrument [Line Items]
Stated interest rate on debt instrument	8.95%

XML

Debt - Repayments, Redemptions and Repurchases (Details) - Floating Rate, LIBOR plus 1.000% $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)
Debt Instrument [Line Items]
Stated interest rate on debt instrument	1.00%
Principal Repaid/ Redeemed/ Repurchased	$ 1,094
Amount Paid	$ 1,097

XML

Debt - Debt Issuances (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)
Senior Notes
Debt Instrument [Line Items]
Principal Amount Issued	$ 1,655
Net Proceeds	$ 1,632
Verizon 3.875% notes due 2052
Debt Instrument [Line Items]
Stated interest rate on debt instrument	3.875%
Verizon 3.875% notes due 2052 | Senior Notes
Debt Instrument [Line Items]
Principal Amount Issued	$ 1,000
Net Proceeds	$ 982
Verizon 4.100% notes due 2055
Debt Instrument [Line Items]
Stated interest rate on debt instrument	4.10%
Verizon 4.100% notes due 2055 | Senior Notes
Debt Instrument [Line Items]
Principal Amount Issued	$ 655
Net Proceeds	$ 650

XML

Debt - Short-Term Borrowings and Commercial Paper Program (Details)	3 Months Ended
	Mar. 31, 2022 USD ($)
Short-term Debt [Line Items]
Facility Capacity	$ 18,500,000,000
Principal Amount Outstanding	6,471,000,000
Line of Credit
Short-term Debt [Line Items]
Facility Capacity	1,000,000,000
Principal Amount Outstanding	1,000,000,000
Commercial Paper
Short-term Debt [Line Items]
Commercial paper issued	9,400,000,000
Repayments of short-term debt	5,600,000,000
Commercial paper	$ 3,800,000,000

XML

Debt - Asset-Backed Debt Narrative (Detail) $ in Millions	1 Months Ended			3 Months Ended
	Mar. 31, 2022 USD ($)	Jan. 31, 2022 USD ($)	Dec. 31, 2021 agreement	Mar. 31, 2022 USD ($)
Asset-Backed Debt
Debt Instrument [Line Items]
Secured debt, carrying value	$ 16,100			$ 16,100
2021 ABS Financing Facility
Debt Instrument [Line Items]
Repayments of debt		$ 515
Number of loan agreements | agreement			2
Amount drawn from credit facilities	1,900
Debt outstanding	$ 5,600			5,600
Secured Debt | Asset Backed Notes
Debt Instrument [Line Items]
Repayments of debt				$ 1,100
Secured Debt | Asset Backed Notes | Minimum
Debt Instrument [Line Items]
Revolving period				18 months
Secured Debt | Asset Backed Notes | Median
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) - USD ($) $ in Millions	1 Months Ended
	Jan. 31, 2022	Mar. 31, 2022
Asset Backed Notes
Debt Instrument [Line Items]
Principal Amount Issued		$ 1,700
January 2021 ABS Notes | A Senior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument	1.04%
Expected Weighted-average Life to Maturity (in years)	1 year 5 months 26 days
Principal Amount Issued	$ 799
January 2021 ABS Notes | B Junior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument	1.27%
Expected Weighted-average Life to Maturity (in years)	1 year 5 months 26 days
Principal Amount Issued	$ 64
January 2021 ABS Notes | C Junior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument	1.39%
Expected Weighted-average Life to Maturity (in years)	1 year 5 months 26 days
Principal Amount Issued	$ 37
January 2021 ABS Notes | A Senior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument	1.53%
Expected Weighted-average Life to Maturity (in years)	2 years 11 months 26 days
Principal Amount Issued	$ 710
January 2021 ABS Notes | B Junior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument	1.83%
Expected Weighted-average Life to Maturity (in years)	2 years 11 months 26 days
Principal Amount Issued	$ 57
January 2021 ABS Notes | C Junior class notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument	2.01%
Expected Weighted-average Life to Maturity (in years)	2 years 11 months 26 days
Principal Amount Issued	$ 33

XML

Debt - Assets and Liabilities Related to Asset-backed Debt Arrangements (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Accounts receivable, net	$ 23,615	$ 23,846
Prepaid expenses and other	6,645	6,906
Other assets	13,581	13,329
Accounts payable and accrued liabilities	18,169	24,833
Debt maturing within one year	13,421	7,443
Long-term debt	139,961	143,425
Variable Interest Entity, Primary Beneficiary
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Accounts receivable, net	11,682	10,705
Prepaid expenses and other	1,432	1,094
Other assets	7,050	5,455
Accounts payable and accrued liabilities	10	10
Debt maturing within one year	6,357	5,024
Long-term debt	$ 9,745	$ 9,178

XML

Debt - Credit Facilities, Non-Cash Transaction, Guarantees (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Debt Instrument [Line Items]
Facility Capacity	$ 18,500,000,000
Unused Capacity	9,424,000,000
Principal Amount Outstanding	6,471,000,000
Debt extinguishment losses	1,200,000,000
Guarantee of Debentures of Operating Telephone Company Subsidiaries
Debt Instrument [Line Items]
Principal amount outstanding in connection with the guarantee of debt obligations	717,000,000
Network Equipment | Alternative Financing Facility
Debt Instrument [Line Items]
Value of purchase assets financed	150,000,000	$ 117,000,000
Long-term debt maturing within one year	1,400,000,000		$ 1,300,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Facility Capacity	9,500,000,000
Unused Capacity	9,424,000,000
Equipment Credit Facilities
Debt Instrument [Line Items]
Facility Capacity	9,000,000,000
Unused Capacity	0
Principal Amount Outstanding	6,471,000,000
Amount drawn from credit facilities	$ 2,000,000,000	$ 470,000,000

XML

Device Payment Plan Agreement and Wireless Service Receivables - Schedule of Receivables (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 24,474	$ 24,742
Less Allowance for credit losses	859	896
Accounts receivable, net	23,615	$ 23,846
Device payment plan agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	13,385
Less Allowance for credit losses	456
Accounts receivable, net	12,929
Wireless service
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	4,790
Less Allowance for credit losses	145
Accounts receivable, net	4,645
Other receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	6,299
Less Allowance for credit losses	258
Accounts receivable, net	$ 6,041

XML

Device Payment Plan Agreement and Wireless Service Receivables - Schedule of Device Payment Plan Agreement Receivables (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement receivables, gross	$ 21,982	$ 21,303
Unamortized imputed interest	(337)	(358)
Device payment plan agreement receivables, at amortized cost	21,645	20,945
Allowance	(754)	(759)
Device payment plan agreement receivables, net	20,891	20,186
Accounts receivable, net
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement receivables, net	12,929	12,783
Other assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement receivables, net	$ 7,962	$ 7,403

XML

Device Payment Plan Agreement and Wireless Service Receivables - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Jan. 01, 2022	Dec. 31, 2021	Mar. 31, 2021	Jan. 01, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables transferred to ABS Entities	$ 18,500		$ 16,000
Guarantee liability	67		77
Device payment plan agreement, trade-in liability	7,504	$ 7,229	7,229	$ 5,783	$ 5,598
Product Trade-in
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement, trade-in liability	$ 372		$ 366
Verizon Business Group And Verizon Consumer Group
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum threshold period for new customers	210 days
Minimum threshold period for existing customers	210 days
Device payment plan agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables originating in 2022	$ 4,973
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
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
Wireless Service Plan Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables originating in 2022	$ 4,600			$ 226

XML

Device Payment Plan Agreement and Wireless Service Receivables - Schedule of Credit Quality Indicators (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, Credit Quality Indicator [Line Items]
Device payment plan agreement receivables, at amortized cost	$ 21,982	$ 21,303
Device payment plan agreement
Financing Receivable, Credit Quality Indicator [Line Items]
2022	4,973
2021	13,951
Prior to 2021	2,721
Device payment plan agreement receivables, at amortized cost	21,645
Device payment plan agreement | New customers
Financing Receivable, Credit Quality Indicator [Line Items]
2022	751
2021	2,098
Prior to 2021	364
Device payment plan agreement receivables, at amortized cost	3,213
Device payment plan agreement | Existing customers
Financing Receivable, Credit Quality Indicator [Line Items]
2022	4,222
2021	11,853
Prior to 2021	2,357
Device payment plan agreement receivables, at amortized cost	$ 18,432

XML

Device Payment Plan Agreement and Wireless Service Receivables - Allowance for Credit Losses (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 759
Ending balance	754
Device payment plan agreement
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	759
Current period provision for expected credit losses	175
Write-offs charged against the allowance	(190)
Recoveries collected	10
Ending balance	754
Wireless Service Plan Receivables
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	130
Current period provision for expected credit losses	98
Write-offs charged against the allowance	(93)
Recoveries collected	10
Ending balance	$ 145

XML

Device Payment Plan Agreement and Wireless Service Receivables - Balance and Aging of Receivables (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement receivables, gross	$ 21,982	$ 21,303
Device payment plan agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement receivables, gross	21,645
Device payment plan agreement | Unbilled | Current
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement receivables, gross	20,468
Device payment plan agreement | Billed | Current
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement receivables, gross	963
Device payment plan agreement | Billed | Past due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Device payment plan agreement receivables, gross	$ 214

XML

Fair Value Measurements and Financial Instruments - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Assets:
Total	$ 1,024	$ 1,527
Liabilities:
Total	4,541	3,180
Fixed income securities | Prepaid expenses and other
Assets:
Fixed income securities	17	18
Fixed income securities | Other assets
Assets:
Fixed income securities	370	391
Interest rate swaps | Prepaid expenses and other
Assets:
Derivative asset	70	188
Interest rate swaps | Other assets
Assets:
Derivative asset	1	285
Interest rate swaps | Other current liabilities
Liabilities:
Derivative liabilities	86	1
Interest rate swaps | Other liabilities
Liabilities:
Derivative liabilities	1,787	665
Cross currency swaps | Prepaid expenses and other
Assets:
Derivative asset	12	9
Cross currency swaps | Other assets
Assets:
Derivative asset	370	580
Cross currency swaps | Other current liabilities
Liabilities:
Derivative liabilities	322	218
Cross currency swaps | Other liabilities
Liabilities:
Derivative liabilities	1,524	1,406
Foreign exchange forwards | Prepaid expenses and other
Assets:
Derivative asset	4	12
Foreign exchange forwards | Other current liabilities
Liabilities:
Derivative liabilities	4
Interest rate caps | Prepaid expenses and other
Assets:
Derivative asset	41
Interest rate caps | Other assets
Assets:
Derivative asset	139	44
Interest rate caps | Other current liabilities
Liabilities:
Derivative liabilities	41
Interest rate caps | Other liabilities
Liabilities:
Derivative liabilities	139	44
Forward starting interest rate swaps | Other current liabilities
Liabilities:
Derivative liabilities	99	302
Contingent consideration | Other current liabilities
Liabilities:
Derivative liabilities	327	231
Contingent consideration | Other liabilities
Liabilities:
Derivative liabilities	212	313
Level 1
Assets:
Total	0	0
Liabilities:
Total	0	0
Level 1 | Fixed income securities | Prepaid expenses and other
Assets:
Fixed income securities	0	0
Level 1 | Fixed income securities | Other assets
Assets:
Fixed income securities	0	0
Level 1 | Interest rate swaps | Prepaid expenses and other
Assets:
Derivative asset	0	0
Level 1 | Interest rate swaps | Other assets
Assets:
Derivative asset	0	0
Level 1 | Interest rate swaps | Other current liabilities
Liabilities:
Derivative liabilities	0	0
Level 1 | Interest rate swaps | Other liabilities
Liabilities:
Derivative liabilities	0	0
Level 1 | Cross currency swaps | Prepaid expenses and other
Assets:
Derivative asset	0	0
Level 1 | Cross currency swaps | Other assets
Assets:
Derivative asset	0	0
Level 1 | Cross currency swaps | Other current liabilities
Liabilities:
Derivative liabilities	0	0
Level 1 | Cross currency swaps | Other liabilities
Liabilities:
Derivative liabilities	0	0
Level 1 | Foreign exchange forwards | Prepaid expenses and other
Assets:
Derivative asset	0	0
Level 1 | Foreign exchange forwards | Other current liabilities
Liabilities:
Derivative liabilities	0
Level 1 | Interest rate caps | Prepaid expenses and other
Assets:
Derivative asset	0
Level 1 | Interest rate caps | Other assets
Assets:
Derivative asset	0	0
Level 1 | Interest rate caps | Other current liabilities
Liabilities:
Derivative liabilities	0
Level 1 | Interest rate caps | Other liabilities
Liabilities:
Derivative liabilities	0	0
Level 1 | Forward starting interest rate swaps | Other current liabilities
Liabilities:
Derivative liabilities	0	0
Level 1 | Contingent consideration | Other current liabilities
Liabilities:
Derivative liabilities	0	0
Level 1 | Contingent consideration | Other liabilities
Liabilities:
Derivative liabilities	0	0
Level 2
Assets:
Total	1,024	1,527
Liabilities:
Total	4,002	2,636
Level 2 | Fixed income securities | Prepaid expenses and other
Assets:
Fixed income securities	17	18
Level 2 | Fixed income securities | Other assets
Assets:
Fixed income securities	370	391
Level 2 | Interest rate swaps | Prepaid expenses and other
Assets:
Derivative asset	70	188
Level 2 | Interest rate swaps | Other assets
Assets:
Derivative asset	1	285
Level 2 | Interest rate swaps | Other current liabilities
Liabilities:
Derivative liabilities	86	1
Level 2 | Interest rate swaps | Other liabilities
Liabilities:
Derivative liabilities	1,787	665
Level 2 | Cross currency swaps | Prepaid expenses and other
Assets:
Derivative asset	12	9
Level 2 | Cross currency swaps | Other assets
Assets:
Derivative asset	370	580
Level 2 | Cross currency swaps | Other current liabilities
Liabilities:
Derivative liabilities	322	218
Level 2 | Cross currency swaps | Other liabilities
Liabilities:
Derivative liabilities	1,524	1,406
Level 2 | Foreign exchange forwards | Prepaid expenses and other
Assets:
Derivative asset	4	12
Level 2 | Foreign exchange forwards | Other current liabilities
Liabilities:
Derivative liabilities	4
Level 2 | Interest rate caps | Prepaid expenses and other
Assets:
Derivative asset	41
Level 2 | Interest rate caps | Other assets
Assets:
Derivative asset	139	44
Level 2 | Interest rate caps | Other current liabilities
Liabilities:
Derivative liabilities	41
Level 2 | Interest rate caps | Other liabilities
Liabilities:
Derivative liabilities	139	44
Level 2 | Forward starting interest rate swaps | Other current liabilities
Liabilities:
Derivative liabilities	99	302
Level 2 | Contingent consideration | Other current liabilities
Liabilities:
Derivative liabilities	0	0
Level 2 | Contingent consideration | Other liabilities
Liabilities:
Derivative liabilities	0	0
Level 3
Assets:
Total	0	0
Liabilities:
Total	539	544
Level 3 | Fixed income securities | Prepaid expenses and other
Assets:
Fixed income securities	0	0
Level 3 | Fixed income securities | Other assets
Assets:
Fixed income securities	0	0
Level 3 | Interest rate swaps | Prepaid expenses and other
Assets:
Derivative asset	0	0
Level 3 | Interest rate swaps | Other assets
Assets:
Derivative asset	0	0
Level 3 | Interest rate swaps | Other current liabilities
Liabilities:
Derivative liabilities	0	0
Level 3 | Interest rate swaps | Other liabilities
Liabilities:
Derivative liabilities	0	0
Level 3 | Cross currency swaps | Prepaid expenses and other
Assets:
Derivative asset	0	0
Level 3 | Cross currency swaps | Other assets
Assets:
Derivative asset	0	0
Level 3 | Cross currency swaps | Other current liabilities
Liabilities:
Derivative liabilities	0	0
Level 3 | Cross currency swaps | Other liabilities
Liabilities:
Derivative liabilities	0	0
Level 3 | Foreign exchange forwards | Prepaid expenses and other
Assets:
Derivative asset	0	0
Level 3 | Foreign exchange forwards | Other current liabilities
Liabilities:
Derivative liabilities	0
Level 3 | Interest rate caps | Prepaid expenses and other
Assets:
Derivative asset	0
Level 3 | Interest rate caps | Other assets
Assets:
Derivative asset	0	0
Level 3 | Interest rate caps | Other current liabilities
Liabilities:
Derivative liabilities	0
Level 3 | Interest rate caps | Other liabilities
Liabilities:
Derivative liabilities	0	0
Level 3 | Forward starting interest rate swaps | Other current liabilities
Liabilities:
Derivative liabilities	0	0
Level 3 | Contingent consideration | Other current liabilities
Liabilities:
Derivative liabilities	327	231
Level 3 | Contingent consideration | Other liabilities
Liabilities:
Derivative liabilities	$ 212	$ 313

XML

Fair Value Measurements and Financial Instruments - Additional Information (Detail)		1 Months Ended
	Mar. 31, 2022 USD ($)	Apr. 27, 2022 USD ($)	Mar. 31, 2022 EUR (€)	Dec. 31, 2021 USD ($)	Dec. 31, 2021 EUR (€)
Derivatives, Fair Value [Line Items]
Carrying amount of our investments without readily determinable fair values	$ 828,000,000			$ 808,000,000
Cumulative adjustments due to observable price changes	157,000,000
Cumulative adjustments due to impairment charges	63,000,000
Accumulated other comprehensive income related to cash flow hedges	1,000,000,000
Derivative asset fair value of collateral	0			100,000,000
Derivative liability fair value of collateral	300,000,000
Cross currency swaps
Derivatives, Fair Value [Line Items]
Net investment hedge	32,502,000,000			32,502,000,000
Interest rate swaps
Derivatives, Fair Value [Line Items]
Net investment hedge	25,571,000,000			19,779,000,000
Interest rate swaps | Subsequent Event
Derivatives, Fair Value [Line Items]
Notional amount of derivative instruments entered during period		$ 500,000,000
Forward starting interest rate swaps
Derivatives, Fair Value [Line Items]
Net investment hedge	$ 600,000,000			$ 1,000,000,000
Forward starting interest rate swaps | Cash Flow Hedging | Subsequent Event
Derivatives, Fair Value [Line Items]
Notional amount of derivative settled during period		$ 600,000,000
Euro Denominated Debt | Net Investment Hedges
Derivatives, Fair Value [Line Items]
Net investment hedge | €			€ 750,000,000		€ 750,000,000

XML

Fair Value Measurements and Financial Instruments - Debt Excluding Capital Leases (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument fair value	$ 152,009	$ 149,543
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument fair value	158,702	169,205
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument fair value	95,790	106,599
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument fair value	62,912	62,606
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument fair value	$ 0	$ 0

XML

Fair Value Measurements and Financial Instruments - Notional Amounts of Outstanding Derivative Instruments (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Interest rate swaps
Derivative [Line Items]
Notional amount	$ 25,571	$ 19,779
Cross currency swaps
Derivative [Line Items]
Notional amount	32,502	32,502
Forward starting interest rate swaps
Derivative [Line Items]
Notional amount	600	1,000
Foreign exchange forwards
Derivative [Line Items]
Notional amount	$ 975	$ 932

XML

Fair Value Measurements and Financial Instruments - Schedule of Designated Derivative Activity (Details) - Designated as Hedging Instrument - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Interest rate swaps | Fair Value Hedges
Derivative [Line Items]
Notional amount of derivative instruments entered during period	$ 6,655	$ 1,000
Notional amount of derivative settled during period	863	895
Gain recognized in Interest expense	0	1
Cash received (paid) for settlement of derivatives	40	57
Cross currency swaps | Cash Flow Hedging
Derivative [Line Items]
Notional amount of derivative instruments entered during period	0	6,214
Notional amount of derivative settled during period	0	0
Pre-tax gain (loss) recognized in other comprehensive loss	(430)	(226)
Forward starting interest rate swaps | Cash Flow Hedging
Derivative [Line Items]
Notional amount of derivative instruments entered during period	0	0
Notional amount of derivative settled during period	400	1,000
Pre-tax gain (loss) recognized in other comprehensive loss	128	400
Cash received (paid) for settlement of derivatives	(76)	(237)
Treasury rate locks | Cash Flow Hedging
Derivative [Line Items]
Notional amount of derivative instruments entered during period	0	4,650
Notional amount of derivative settled during period	0	4,650
Pre-tax gain (loss) recognized in other comprehensive loss	0	251
Cash received (paid) for settlement of derivatives	$ 0	$ 251

XML

Fair Value Measurements and Financial Instruments - Schedule of Cumulative Basis Adjustments for Fair Value Hedges (Details) - Long-term Debt - Fair Value Hedges - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Derivatives, Fair Value [Line Items]
Carrying amount of hedged liabilities	$ 23,653	$ 20,027
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities	(1,677)	(113)
Cumulative amount of fair value hedging adjustment remaining for which hedge accounting has been discontinued	$ 553	$ 575

XML

Fair Value Measurements and Financial Instruments - Schedule of Derivatives Not Designated as Hedges (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Foreign exchange forwards
Derivative [Line Items]
Notional amount of derivative instruments entered during period	$ 2,646	$ 3,525
Notional amount of derivative settled during period	2,603	3,630
Pre-tax loss recognized in other comprehensive income (loss)	(28)	(30)
Swaptions
Derivative [Line Items]
Notional amount of derivative settled during period	1,000	0
Pre-tax loss recognized in other comprehensive income (loss)	(33)	0
Notional amount of derivative sold during period	$ 1,000	$ 0

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Employee Benefits - Costs by Plans (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Pension
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 66	$ 74
Amortization of prior service cost (credit)	15	15
Expected return on plan assets	(297)	(309)
Interest cost	110	95
Other components	(172)	(199)
Total	(106)	(125)
Pension | Cost of services
Defined Benefit Plan Disclosure [Line Items]
Service cost	58	65
Pension | Selling, general and administrative expense
Defined Benefit Plan Disclosure [Line Items]
Service cost	8	9
Health Care and Life
Defined Benefit Plan Disclosure [Line Items]
Service cost	23	29
Amortization of prior service cost (credit)	(203)	(223)
Expected return on plan assets	(7)	(6)
Interest cost	83	72
Other components	(127)	(157)
Total	(104)	(128)
Health Care and Life | Cost of services
Defined Benefit Plan Disclosure [Line Items]
Service cost	19	24
Health Care and Life | Selling, general and administrative expense
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 4	$ 5

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Employee Benefits - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Amount paid in severance benefits over the period	$ 94,000,000
Post employment benefits liability	444,000,000
Pension | Qualified Plan
Defined Benefit Plan Disclosure [Line Items]
Employer discretionary contribution amount	$ 0	$ 0

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Equity and Accumulated Other Comprehensive Loss - Changes in Components of Total equity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Dividends declared per common share (USD per share)	$ 0.6400	$ 0.6275
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 83,200
Net income attributable to Verizon	4,580	$ 5,245
Foreign currency translation adjustments	(29)	(38)
Unrealized gain on cash flow hedges	207	909
Unrealized loss on marketable securities	(18)	(5)
Defined benefit pension and postretirement plans	(139)	(155)
Other comprehensive income	$ 21
Shareholder plans (in shares)	1,800
Total Comprehensive Income	$ 4,732	6,089
Ending balance	$ 85,175	$ 72,683
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	4,291,434	4,291,434
Beginning balance	$ 429	$ 429
Ending balance (in shares)	4,291,434	4,291,434
Ending balance	$ 429	$ 429
Additional Paid In Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	13,861	13,404
Other	13	4
Ending balance	13,874	13,408
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	71,993	60,464
Other	10	0
Net income attributable to Verizon	4,580	5,245
Dividends declared ($0.6400, $0.6275 per share)	(2,692)	(2,602)
Ending balance	73,891	63,107
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(927)	(71)
Foreign currency translation adjustments	(29)	(38)
Unrealized gain on cash flow hedges	207	909
Unrealized loss on marketable securities	(18)	(5)
Defined benefit pension and postretirement plans	(139)	(155)
Other comprehensive income	21	711
Ending balance	$ (906)	$ 640
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	93,635	153,304
Beginning balance	$ (4,104)	$ (6,719)
Employee plans (in shares)	1,842	1,935
Employee plans	$ 81	$ 85
Shareholder plans (in shares)	3	3
Shareholder plans	$ 0	$ 0
Ending balance (in shares)	91,790	151,366
Ending balance	$ (4,023)	$ (6,634)
Deferred Compensation-ESOPs and Other
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	538	335
Restricted stock equity grant	109	99
Amortization	(150)	(152)
Ending balance	497	282
Noncontrolling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	1,410	1,430
Total Comprehensive Income	131	133
Distributions and other	(128)	(112)
Ending balance	$ 1,413	$ 1,451

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Equity and Accumulated Other Comprehensive Loss - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2022 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)	1,800,000

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Equity and Accumulated Other Comprehensive Loss - Changes in AOCI (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]
Beginning balance	$ 83,200
Other comprehensive loss	(271)
Amounts reclassified to net income	292
Net other comprehensive income (loss)	21
Ending balance	85,175	$ 72,683
Accumulated Other Comprehensive Income (Loss)
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]
Beginning balance	(927)	(71)
Net other comprehensive income (loss)	21	711
Ending balance	(906)	$ 640
Foreign  currency translation adjustments
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]
Beginning balance	(545)
Other comprehensive loss	(29)
Amounts reclassified to net income	0
Net other comprehensive income (loss)	(29)
Ending balance	(574)
Unrealized gain (loss) on cash flow hedges
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]
Beginning balance	(1,472)
Other comprehensive loss	(224)
Amounts reclassified to net income	431
Net other comprehensive income (loss)	207
Ending balance	(1,265)
Unrealized gain (loss) on marketable securities
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]
Beginning balance	16
Other comprehensive loss	(18)
Amounts reclassified to net income	0
Net other comprehensive income (loss)	(18)
Ending balance	(2)
Defined benefit pension and postretirement plans
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]
Beginning balance	1,074
Other comprehensive loss	0
Amounts reclassified to net income	(139)
Net other comprehensive income (loss)	(139)
Ending balance	$ 935

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Segment Information - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2022 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
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Operating revenues	$ 33,554	$ 32,867
Operating Income	7,796	7,770
Wireless equipment
Segment Reporting Information [Line Items]
Operating revenues	6,336	4,944
Service revenues and other
Segment Reporting Information [Line Items]
Operating revenues	27,218	27,923
Fios revenues
Segment Reporting Information [Line Items]
Operating revenues	3,206	3,136
Wireless service
Segment Reporting Information [Line Items]
Operating revenues	18,342	16,744
Total reportable segments
Segment Reporting Information [Line Items]
Operating revenues	32,938	30,502
Consumer
Segment Reporting Information [Line Items]
Operating revenues	25,242	22,740
Consumer | Service
Segment Reporting Information [Line Items]
Operating revenues	18,126	16,566
Consumer | Wireless equipment
Segment Reporting Information [Line Items]
Operating revenues	5,374	4,192
Consumer | Other
Segment Reporting Information [Line Items]
Operating revenues	1,742	1,982
Consumer | Fios revenues
Segment Reporting Information [Line Items]
Operating revenues	2,911	2,860
Consumer | Wireless service
Segment Reporting Information [Line Items]
Operating revenues	15,217	13,684
Business
Segment Reporting Information [Line Items]
Operating revenues	7,696	7,762
Business | Wireless equipment
Segment Reporting Information [Line Items]
Operating revenues	962	752
Business | Small and Medium Business
Segment Reporting Information [Line Items]
Operating revenues	3,037	2,825
Business | Global Enterprise
Segment Reporting Information [Line Items]
Operating revenues	2,460	2,557
Business | Public Sector and Other
Segment Reporting Information [Line Items]
Operating revenues	1,552	1,645
Business | Wholesale
Segment Reporting Information [Line Items]
Operating revenues	647	735
Business | Service revenues and other
Segment Reporting Information [Line Items]
Operating revenues	6,700	7,000
Business | Fios revenues
Segment Reporting Information [Line Items]
Operating revenues	295	276
Business | Wireless service
Segment Reporting Information [Line Items]
Operating revenues	3,125	3,060
Intersegment Eliminations | Total reportable segments
Segment Reporting Information [Line Items]
Operating revenues	63	77
Intersegment Eliminations | Consumer
Segment Reporting Information [Line Items]
Operating revenues	50	58
Intersegment Eliminations | Business
Segment Reporting Information [Line Items]
Operating revenues	13	19
Operating Segments
Segment Reporting Information [Line Items]
Operating revenues	33,001	30,579
Operating Income	7,992	8,418
Operating Segments | Total reportable segments
Segment Reporting Information [Line Items]
Operating revenues	33,001	30,579
Operating Income	7,992	8,418
Operating Segments | Consumer
Segment Reporting Information [Line Items]
Operating revenues	25,292	22,798
Operating Income	7,319	7,519
Operating Segments | Business
Segment Reporting Information [Line Items]
Operating revenues	7,709	7,781
Operating Income	$ 673	$ 899

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Segment Information - Reconciliation of Operating Revenues (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating revenues	$ 33,554	$ 32,867
Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating revenues	33,001	30,579
Corporate and other
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating revenues	618	2,422
Eliminations
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating revenues	$ (65)	$ (134)

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Segment Information - Reconciliation of Segments Operating Income to Consolidated Income (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Operating income	$ 7,796	$ 7,770
Other components of net periodic benefit charges	(172)	(192)
Loss on spectrum licenses	0	(223)
Equity in earnings (losses) of unconsolidated businesses	(3)	8
Other income (expense), net	(924)	401
Interest expense	(786)	(1,101)
Income Before Provision For Income Taxes	6,083	7,078
Operating Segments
Segment Reporting Information [Line Items]
Operating income	7,992	8,418
Corporate and other
Segment Reporting Information [Line Items]
Operating income	$ (24)	$ (233)

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Commitments and Contingencies (Detail)	3 Months Ended
	Mar. 31, 2022 legal_matter
Commitments and Contingencies Disclosure [Abstract]
Approximate number of federal district court actions alleged for patent infringement	20