XML 40 R17.htm IDEA: XBRL DOCUMENT v3.22.2
Segment Information
 6 Months Ended
Jun. 30, 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:
SegmentDescription
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 EndedSix Months Ended
June 30,June 30,
(dollars in millions)2022202120222021
External Operating Revenues
Consumer
Service
$18,149 $16,704 $36,275 $33,270 
Wireless equipment
5,708 4,739 11,082 8,931 
Other
1,696 1,973 3,438 3,955 
Total Consumer
25,553 23,416 50,795 46,156 
Business
Small and Medium Business
3,087 2,890 6,124 5,715 
Global Enterprise
2,401 2,582 4,861 5,139 
Public Sector and Other
1,504 1,614 3,056 3,259 
Wholesale
623 658 1,270 1,393 
Total Business
7,615 7,744 15,311 15,506 
Total reportable segments$33,168 $31,160 $66,106 $61,662 
Intersegment Revenues
Consumer$51 $61 $101 $119 
Business11 18 24 37 
Total reportable segments$62 $79 $125 $156 
Total Operating Revenues
Consumer$25,604 $23,477 $50,896 $46,275 
Business(1)
7,626 7,762 15,335 15,543 
Total reportable segments$33,230 $31,239 $66,231 $61,818 
Operating Income
Consumer$7,150 $7,497 $14,469 $15,016 
Business675 856 1,348 1,755 
Total reportable segments$7,825 $8,353 $15,817 $16,771 
(1) Service and other revenues included in our Business segment amounted to $6.7 billion and $7.0 billion for the three months ended June 30, 2022 and 2021, respectively, and $13.4 billion and $14.0 billion for the six months ended June 30, 2022 and 2021, respectively. Wireless equipment revenues included in our Business segment amounted to $966 million and $804 million for the three months ended June 30, 2022 and 2021, respectively, and $1.9 billion and $1.6 billion for the six months ended June 30, 2022 and 2021, respectively.

The following table provides Fios revenue for our two reportable segments:
Three Months EndedSix Months Ended
June 30,June 30,
(dollars in millions)2022202120222021
Consumer$2,895 $2,895 $5,806 $5,755 
Business298 281 593 557 
Total Fios revenue$3,193 $3,176 $6,399 $6,312 

The following table provides Wireless service revenue for our reportable segments and includes intersegment activity:
Three Months EndedSix Months Ended
June 30,June 30,
(dollars in millions)2022202120222021
Consumer$15,236 $13,794 $30,453 $27,478 
Business3,182 3,090 6,307 6,150 
Total Wireless service revenue$18,418 $16,884 $36,760 $33,628 
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 EndedSix Months Ended
 June 30,June 30,
(dollars in millions)2022202120222021
Total reportable segment operating revenues$33,230 $31,239 $66,231 $61,818 
Corporate and other
623 2,662 1,241 5,084 
Eliminations
(64)(137)(129)(271)
Total consolidated operating revenues$33,789 $33,764 $67,343 $66,631 

A reconciliation of the total reportable segment's operating income to consolidated income before provision for income taxes is as follows:
 Three Months EndedSix Months Ended
June 30,June 30,
(dollars in millions)2022202120222021
Total reportable segment operating income$7,825 $8,353 $15,817 $16,771 
 Corporate and other
(190)4 (214)(229)
Other components of net periodic benefit charges (Note 8)(83)(192)(255)(384)
Loss on spectrum licenses (Note 3)— — — (223)
Total consolidated operating income7,552 8,165 15,348 15,935 
Equity in earnings of unconsolidated businesses41 1 38 9 
Other income (expense), net49 502 (875)903 
Interest expense(785)(844)(1,571)(1,945)
Income Before Provision For Income Taxes$6,857 $7,824 $12,940 $14,902 

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