8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report: July 26, 2005

(Date of earliest event reported)

VERIZON COMMUNICATIONS INC.

(Exact name of registrant as specified in its charter)

Delaware	1-8606	23-2259884
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

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

Registrant’s telephone number, including area code: (212) 395-2121

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

Attached as an exhibit hereto is a press release and financial tables dated July 26, 2005 issued by Verizon Communications Inc.

Non-GAAP Measures

Verizon’s press release and financial tables include financial information prepared in conformity with generally accepted accounting principles (GAAP) as well as non-GAAP financial information. The non-GAAP financial information may be determined or calculated differently by other companies.

The consolidated statements of income before special items eliminate special items and non-recurring items of revenues, expenses, gains and losses primarily as a result of their non-operational and/or non-recurring nature. This also includes current and prior periods’ operating revenues and operating expenses of significant operations sold, including Verizon’s Hawaii wireline and directory operations which were sold during the second quarter of 2005. Management believes this presentation of operating performance assists readers in better understanding our results of operations and trends from period to period, consistent with management’s evaluation of Verizon’s consolidated and segment results of operations for a variety of internal measures including strategic business planning, capital allocation and compensation. Management believes that the consolidated statements of income before special items provide current and prior period results of operations on a comparable basis as well as provide trends that are more indicative of future operating results than GAAP results of operations, given the non-operational and/or non-recurring nature of the special items removed for purposes of reporting results of operations before special items. While some of these items have been periodically reported in Verizon’s consolidated results of operations, such as significant severance and impairment charges, their occurrence in future periods is dependent upon future business and economic factors, among other evaluation criteria, and may frequently be beyond the control of management. As a result of these factors, management also provides this information externally, along with a complete reconciliation to their comparable GAAP amounts so readers have access to the detail and general nature of adjustments made to GAAP results. Descriptions of the special items are provided in the schedules accompanying the news release.

Management believes that Verizon Wireless’s operating income before depreciation and amortization (EBITDA) and EBITDA margin, additional non-GAAP financial measures, are also useful to investors and other users of our financial information in evaluating Verizon Wireless’s operating financial performance. Verizon Wireless’s EBITDA is determined by adding-back depreciation and amortization to operating income and the Verizon Wireless EBITDA margin is calculated by dividing Verizon Wireless’s EBITDA by Verizon Wireless’s service revenues. Verizon Wireless’s EBITDA and EBITDA margin are non-GAAP operating performance measures that are used internally to evaluate current operating expense efficiency and operating profitability on a more variable cost basis by excluding the depreciation and amortization expenses related primarily to capital expenditures and acquisitions (particularly customer base amortization) that occurred in prior years. In addition, Verizon management uses this information to evaluate operating performance in relation to Verizon Wireless’s competitors. The Verizon Wireless EBITDA margin utilizes service revenues rather than total revenues. Service revenues exclude primarily equipment revenues (as well as other non-service revenues) in order to capture the impact of providing service to the wireless customer base on an ongoing basis. Verizon Wireless’s EBITDA margin is presented along with Verizon Wireless’s operating income margin so as not to imply more emphasis should be placed on it than the corresponding GAAP measure. Management believes this presentation assists readers in preparing comparisons of this type of performance measure (operating profitability) using the GAAP measure as well as the measure segment management evaluates segment results and performs comparisons to other wireless carriers.

It is management’s intent to provide non-GAAP financial information to enhance understanding of Verizon’s GAAP consolidated financial statements and should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP.

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.
	(Registrant)
Date: July 26, 2005	/s/ David H. Benson
	David H. Benson
	Senior Vice President and Controller

EXHIBIT INDEX

Exhibit Number	Description
99	Press release and financial tables, dated July 26, 2005 issued by Verizon Communications Inc. and contained in its investor relations bulletin

EX-99

Exhibit 99

NEWS RELEASE

FOR IMMEDIATE RELEASE	Media contacts:
July 26, 2005	Peter Thonis
	212-395-2355
	peter.thonis@verizon.com
	Bob Varettoni
	212-395-7726
	robert.a.varettoni@verizon.com

Verizon Communications Reports Second-Quarter Earnings

of $2.1 Billion, With $18.6 Billion in Revenues

Wireless Nets Record 1.9 Million New Customers, Maintains Margins, Yields

Record-Low Churn; Wireline Broadband, LD, Data Revenues Continue Growth

SECOND-QUARTER HIGHLIGHTS

Consolidated Results

• 75 cents in diluted earnings per share; 63 cents per share before special items (non-GAAP measure)

Wireless

• Industry-record 1.9 million net customer additions, up 25.1 percent; 47.4 million total customers, up 17.1 percent; record-low churn (customer turnover) of 1.2 percent

• Total quarterly revenues of $7.8 billion, up $1.0 billion, or 14.6 percent — the 12th consecutive quarter of double-digit year-over-year revenue growth increases

• Continued strong operating income margin of 22.7 percent

Wireline

• 4.1 million total broadband connections (DSL and Verizon Fios data lines), including 278,000 net new broadband connections

• Improving revenue trends: Total quarterly revenues of $9.4 billion include a year-over-year gain in the consumer business, and gains from first quarter 2005 in all major lines of business

Verizon News Release, page 2

• Data revenues up 10.9 percent; long-distance (LD) revenues up 6.7 percent

Notes: Reclassifications of prior-period amounts have been made to reflect comparable results excluding Verizon’s Hawaii wireline and directory operations, which were sold in the second quarter 2005. Growth percentages cited above compare second quarter 2005 with second quarter 2004. See the schedules accompanying this news release and www.verizon.com/investor for reconciliations to generally accepted accounting principles (GAAP) for the non-GAAP financial measures included in this announcement. Discontinued operations in the prior-year periods presented include the operations of Verizon Information Services Canada.

NEW YORK – Verizon Communications Inc. (NYSE:VZ) today reported second-quarter 2005 earnings of $2.1 billion, or 75 cents per diluted share, highlighted by another record-breaking quarter at Verizon Wireless and continued strong consolidated cash flows and revenue growth.

Second-quarter earnings included $336 million, or 12 cents per share, from the sale of wireline and directory operations in Hawaii, as well as tax benefits of $242 million recognized on prior-year investment losses, partially offset by net tax expense of $232 million for the repatriation of foreign earnings. Earnings before these special items (non-GAAP measure) were $1.8 billion, or 63 cents per share. This compares with $1.8 billion, or 64 cents per share, in earnings before special items in the second quarter 2004.

The tax on repatriated foreign earnings relates primarily to the more than $2 billion that Verizon expects to receive in 2005 from share buybacks initiated by Italian wireless provider Vodafone Omnitel. Verizon received $1.2 billion in proceeds in the second quarter 2005 and anticipates receiving the final amount in the second half of 2005.

Record Quarterly Revenues

Consolidated operating revenues of $18.6 billion in the second quarter 2005 set a company record, increasing 4.6 percent compared with the second quarter 2004. Consolidated operating revenues on a comparable basis (non-GAAP measure, excluding revenues from Verizon’s Hawaii operations in both periods) were $18.5 billion in the second quarter 2005. This is an increase of 5.1 percent, or $0.9 billion, compared with the second quarter 2004.

Second-quarter total revenues at Verizon Wireless increased 14.6 percent, or $1.0 billion, to $7.8 billion when compared with the second quarter 2004, marking the 12th consecutive quarter of more than 10 percent year-over-year increases.

Verizon News Release, page 3

Operating revenues on a comparable basis at Domestic Telecom were $9.4 billion in the second quarter 2005. This 0.5 percent decrease, compared with the second quarter 2004, was the segment’s lowest rate of revenue decline in four years. Domestic Telecom revenues in the second quarter 2005 increased $78 million over the first quarter 2005 on a comparable basis.

In the second quarter 2005, consolidated operating expenses increased 3.0 percent to $14.5 billion, compared with second-quarter 2004 operating expenses of $14.1 billion.

‘Winning Formula’

“These are strong first-half results, with contributions from all segments of our diverse revenue base,” said Ivan Seidenberg, Verizon chairman and chief executive officer. “Wireless in particular remains in high gear. Because of the healthy margins in our wireless business, we are able to take the steps to increase our market share, which we did effectively this quarter. We continue to make the technology and infrastructure investments that allow us to unleash the full potential of the best wireless network in the country. As is evident by our market-share gains and our industry-leading customer-loyalty results, customers are responding.

“This same winning formula of putting customers first and building profitable growth on a foundation of investment and innovation is also evident in wireline, where we continue to see steady improvement in revenue trends. Customers — whether they choose wireless, wireline or both — are seeing the value of our superior, next-generation broadband services.”

Verizon Wireless Continues to Gain

Verizon Wireless added 1.9 million net new customers. Excluding acquisitions, this is the largest quarterly customer increase in the history of the wireless industry. Wireless has added 6.9 million net new customers over the past 12 months and now has a total of 47.4 million customers nationwide.

Customer turnover reached record-low levels for the third consecutive quarter. The total churn rate, a key measure of customer loyalty, was 1.2 percent for the second quarter 2005, down from 1.4 percent in the second quarter 2004. Churn in the retail post-paid segment — a base of 44 million customers — was 1.0 percent in the second quarter 2005.

Strict cost-management contributed to strong operating income margin of 22.7 percent in the second quarter 2005. This was the second-highest margin in the company’s history, driven

Verizon News Release, page 4

by industry-leading lows for cash expense-per-customer, even as the company added an extraordinary volume of customers in the quarter. EBITDA margin at Verizon Wireless was 43.0 percent in the quarter. (EBITDA — or earnings before interest, taxes, depreciation and amortization — is a non-GAAP measure that adds depreciation and amortization to operating income; EBITDA margin is calculated by dividing EBITDA by wireless service revenues.)

Wireline Broadband, LD and Data Growth

In wireline, quarterly operating revenues were supported by 0.7 percent year-over-year revenue growth in the consumer business, reversing a trend that had been negative since the company began reporting wireline revenue by line of business in 2002. The consumer business generated $3.8 billion in second-quarter 2005 revenues, driven by continued solid growth from sales of broadband and long-distance services.

Revenues from wireline broadband services contributed to $2.1 billion in total data revenues in the second quarter 2005, a 10.9 percent increase from $1.9 billion in comparable revenues in the second quarter 2004.

Revenues from wireline long-distance services, including regional toll services, were $1.1 billion in the second quarter 2005, a 6.7 percent increase from $1.0 billion in comparable revenues in the second quarter 2004. Long-distance lines totaled 18.0 million at the end of the second quarter 2005, an 8.8 percent increase from a comparable total of 16.5 million lines at the end of the second quarter 2004.

In the second quarter 2005, Verizon added a net of 278,000 wireline broadband connections, which represents the total number of DSL and Fios lines put in service. Fios is Verizon’s recently introduced next-generation, fiber-optic-based service. Verizon has a total of 4.1 million wireline broadband connections — a growth rate of 43.7 percent from the second quarter 2004 on a comparable basis.

Strong Cash Flow, Revised Capital Spending Guidance

Cash Flows From Operating Activities (CFFO) were $9.9 billion in the first six months of 2005, a slight increase compared with the first six months of 2004.

In the first six months of 2005, net cash used in investing activities was $10.9 billion, and net cash provided by financing activities was $125 million. Investing activities included $7.7 billion in capital expenditures, predominantly focused on growth markets.

Verizon News Release, page 5

Verizon anticipates that 2005 capital spending will increase approximately 15 percent over 2004 expenditures of $13.3 billion. This revises its previous guidance of an increase of approximately 10 percent. The increase is attributable to the strong growth at Verizon Wireless and increased spending for the deployment of Fios video services.

Verizon’s total debt at the end of the second quarter 2005 was $41.8 billion, compared with $41.9 billion at the end of the second quarter 2004. Short-term debt in the second quarter 2005 increased as a result of Verizon’s investing activities, including the NextWave Telecom wireless spectrum purchase.

Earnings Comparisons and Special Items

As noted above, reported earnings were 75 cents per share in the second quarter 2005 and 64 cents per share in the second quarter 2004.

Second-quarter 2005 earnings were 63 cents per share before the gain on the sale of Verizon’s Hawaii wireline and directory operations, and net tax benefits. These net tax benefits include $242 million related to prior-year investment losses that became recognizable as a result of capital gains on the Hawaii operations sale, net of tax expense of $232 million related to the repatriation of prior-year foreign earnings.

Second-quarter 2004 earnings were 64 cents per share as charges of 4 cents per share related to operating asset losses, pension settlements and the early retirement of debt offset an expense credit of 4 cents per share resulting from the favorable resolution of pre-bankruptcy amounts due from MCI.

Business Segment Highlights

Following are second-quarter 2005 highlights from Verizon’s four business segments.

Wireline:

• The average revenue per month per Verizon residential wireline customer rose to $50.92 in the second quarter 2005, a 6.4 percent increase compared with the second quarter 2004, as more customers continue to choose high-value communications services.

• Approximately 60 percent of Verizon residential customers have purchased local services in combination with either Verizon long-distance or a Verizon broadband connection, or both. This compares with 49 percent in the second quarter 2004.

Verizon News Release, page 6

• Approximately 4.9 million Verizon Freedom packages were in service to residential and business customers by the end of the second quarter 2005, an increase of 1.1 million since the end of the second quarter 2004. Verizon Freedom plans help retain and win back customers by offering local services with various combinations of long-distance, wireless and Internet access, available on one bill.

• By the end of the second quarter, the company was deploying or selling Fios fiber-to-the-premises (FTTP) broadband services in 15 states. Verizon plans to introduce Fios TV services in the second half of the year and is currently pursuing cable TV franchises in about 200 communities.

• Consumer revenues of $3.8 billion increased 0.7 percent compared with last year’s second quarter, while business revenues of $2.8 billion decreased 0.8 percent and wholesale revenues of $2.1 billion were essentially flat. Comparing the second quarter 2005 with the first quarter 2005, revenues increased in all major wireline lines of business — consumer revenues increased $32 million, business revenues increased $32 million and wholesale revenues increased $26 million.

• Wireline total operating expenses were $8.2 billion in the second quarter 2005, a 1.6 percent increase compared with last year’s second quarter. Additional expenses in 2005 relate to the strategic buildout of FTTP.

• Wholesale voice connections — which includes resale, Unbundled Network Element-Platform (UNE-P) and end-to-end wholesale voice services provided under commercial agreements — totaled 6.2 million at the end of the second quarter 2005, down 6.4 percent from the end of the second quarter 2004. Verizon had 50.7 million switched wireline access lines in service as of the end of the second quarter 2005, down 5.5 percent on a comparable basis from last year.

• Verizon’s Enterprise Solutions Group had another solid quarter of Enterprise Advance sales with more than 600 in the quarter. Sales included multi-year, multi-million-dollar contracts with DirecTV in California and the Tulalip Tribes in the state of Washington. The business unit also rolled out iobi Enterprise, a new service offering Internet Protocol (IP) options for Centrex users.

Wireless:

• Retail customers constitute 96 percent of the company’s total. Retail gross additions increased 11.4 percent over the second quarter 2004. Retail net additions increased 30.7 percent and accounted for 99.5 percent of all net additions in the quarter. (Retail and total net additions include 4,000 customers from an acquisition.)

• Service revenues (which do not include taxes and regulatory fees) were $6.9 billion in the second quarter 2005, up 13.8 percent compared with the second quarter 2004. Average monthly service revenue per customer increased nearly 1 percent from the first quarter 2005 and decreased 2.7 percent from the second quarter 2004 to $49.42.

Verizon News Release, page 7

• Data services revenue for the second quarter 2005 climbed to 7.0 percent of service revenues, contributing $483 million, as sales of high-speed and broadband 3G (third-generation) data services to businesses and consumers exceed company expectations. The company now has more than 19 million data customers — a 50 percent increase compared with a year ago.

• As the industry leader in wireless broadband deployment, the company is ahead of plan with the $1 billion national buildout by year-end of its 3G EV-DO (Evolution-Data Optimized) wireless broadband network. During the second quarter, the company expanded broadband to now include more than 50 major metropolitan markets and surrounding areas, as well as 57 airports nationwide. This network, the largest wireless broadband network in the U.S., currently reaches one-third of the population and is expected to be available to nearly half the population by year-end.

• Contributing to the company’s data revenue growth, a new BroadbandAccess PC Card and a new Pocket PC were introduced, giving business customers additional choices for accessing the Verizon Wireless broadband network. The company launched new pricing that combines unlimited data use from a PDA, BlackBerry or Smartphone bundled with voice calling minutes. The company also launched behind-the-corporate-firewall software for use with NationalAccess and BroadbandAccess services, allowing access to business-critical data and applications when out of the office.

• For consumers, the company continued to add handsets and video from leading content providers for its exclusive broadband service V CAST, the nation’s first 3G consumer multimedia service, which delivers high-quality video, movies, 3D games and music clips to 3G handsets. Popularity of the company’s Get It Now continued to soar with 4.6 billion text messages and 62 million picture and video messages exchanged during the second quarter 2005, and 36 million downloads of games, exclusive content, ringtones and ringback tones, which replace the standard ring callers hear while waiting for their call to be answered.

• For the second consecutive year, the company ranked highest among U.S. wireless service providers for customer satisfaction in the latest American Customer Satisfaction Index. Verizon Wireless also was recognized by IDG’s Computerworld magazine for the third consecutive year as one of the top workplaces for information technology professionals.

Information Services:

• Verizon Information Services (VIS) revenues of $870 million decreased 2.1 percent for the second quarter 2005 compared with the second quarter 2004, primarily due to reduced domestic print advertising revenue. However, reductions in total operating expenses have resulted in an improved operating income margin.

Verizon News Release, page 8

• VIS’ domestic online directory and search service, SuperPages.com, continues to achieve strong growth, as demonstrated by a 29 percent increase in gross revenue.

International:

• Second-quarter revenues of $537 million represented an increase of 6.1 percent from the second quarter 2004. The increase reflects the effect of favorable foreign exchange rates and operational growth in the Dominican Republic, partially offset by a favorable adjustment in 2004 to carrier access revenues in Puerto Rico.

• Second-quarter segment income was $271 million, compared with $287 million in the second quarter 2004. The decrease of $16 million includes the impact from the sale of Verizon’s interest in TELUS in fourth quarter 2004.

• During the quarter, the board of directors and shareowners of Vodafone Omnitel approved a share buyback in two tranches. The first tranche was completed in June with Verizon receiving approximately $1.2 billion in proceeds before taxes. The second tranche is scheduled to be completed later this year with similar expected proceeds before taxes.

With more than $71 billion in annual revenues, Verizon Communications Inc. (NYSE:VZ) is one of the world’s leading providers of communications services. Verizon has a diverse work force of more than 214,000 in four business units: Domestic Telecom provides customers based in 28 states with wireline and other telecommunications services, including broadband. Verizon Wireless owns and operates the nation’s most reliable wireless network, serving 47.4 million voice and data customers across the United States. Information Services operates directory publishing businesses and provides electronic commerce services. International includes wireline and wireless operations and investments, primarily in the Americas and Europe. For more information, visit www.verizon.com.

####

VERIZON’S ONLINE NEWS CENTER: Verizon news releases, executive speeches and biographies, media contacts, high quality video and images, and other information are available at Verizon’s News Center on the World Wide Web at www.verizon.com/news. To receive news releases by e-mail, visit the News Center and register for customized automatic delivery of Verizon news releases.

NOTE: This press release contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. 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. The following important factors could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: materially adverse changes in economic and industry conditions and labor matters, including workforce levels and labor negotiations, and any resulting financial and/or operational impact, in the markets served by us or by companies in which we have substantial investments; material changes in available technology; technology substitution; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations; the final results of federal and state regulatory proceedings concerning our provision of retail and wholesale services and judicial review of those results; the effects of competition in our markets; the timing, scope and financial impacts of our deployment of fiber-to-the-premises broadband technology; the ability of Verizon Wireless to continue to obtain sufficient spectrum resources; changes in our 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; a significant change in the timing of, or the imposition of any government conditions to, the closing of our business combination transaction with MCI, Inc., if consummated; actual and contingent liabilities in connection with the MCI transaction; and the extent and timing of our ability to obtain revenue enhancements and cost savings following the MCI transaction.

Verizon Communications Inc.

Consolidated Statements of Income

(dollars in millions, except per share amounts)

Unaudited	3 Mos. Ended 6/30/05			3 Mos. Ended 6/30/04			% Change		6 Mos. Ended 6/30/05			6 Mos. Ended 6/30/04			% Change
Operating Revenues	$	18,569		$	17,758		4.6		$	36,748		$	34,814		5.6
Operating Expenses
Cost of services and sales		6,258			5,620		11.4			12,381			11,110		11.4
Selling, general & administrative expense		5,253			5,000		5.1			10,467			10,675		(1.9	)
Depreciation and amortization expense		3,496			3,437		1.7			6,956			6,862		1.4
Sales of businesses, net		(530	)		—		*			(530	)		—		*
Total Operating Expenses		14,477			14,057		3.0			29,274			28,647		2.2
Operating Income		4,092			3,701		10.6			7,474			6,167		21.2
Equity in earnings of unconsolidated businesses		179			212		(15.6	)		372			411		(9.5	)
Income from other unconsolidated businesses		—			—		—			56			72		(22.2	)
Other income and (expense), net		81			(2	)	*			160			(36	)	*
Interest expense		(540	)		(594	)	(9.1	)		(1,101	)		(1,232	)	(10.6	)
Minority interest		(717	)		(676	)	6.1			(1,330	)		(1,153	)	15.4
Income Before Provision for Income Taxes and Discontinued Operations		3,095			2,641		17.2			5,631			4,229		33.2
Provision for income taxes		(982	)		(859	)	14.3			(1,761	)		(1,264	)	39.3
Income Before Discontinued Operations		2,113			1,782		18.6			3,870			2,965		30.5
Discontinued Operations(1)
Income from operations		—			27		(100.0	)		—			56		(100.0	)
Provision for income taxes		—			(12	)	(100.0	)		—			(25	)	(100.0	)
Income on discontinued operations		—			15		(100.0	)		—			31		(100.0	)
Net Income	$	2,113		$	1,797		17.6		$	3,870		$	2,996		29.2
Basic Earnings per Share	$	.76		$	.65		16.9		$	1.40		$	1.08		29.6
Weighted average number of common shares (in millions)		2,766			2,770					2,768			2,770
Diluted Earnings per Share(2)	$	.75		$	.64		17.2		$	1.38		$	1.07		29.0
Weighted average number of common shares-assuming dilution (in millions)		2,818			2,834					2,819			2,840

Footnotes:

(1) Discontinued Operations includes the operations of Verizon Information Services Canada as a result of an agreement to sell the business reached in the third quarter of 2004.

(2) Diluted Earnings per Share include (i) income related to share dilution (exchangeable equity interests and zero coupon convertible debt) of $14 million and $28 million for the second quarter and year-to-date 2005, respectively, and $18 million and $40 million for the second quarter and year-to-date 2004, respectively, and (ii) the dilutive effect of shares issuable under our stock-based compensation plans, exchangeable equity interests and zero coupon convertible debt, which represent the only potential dilution.

* Not meaningful

Verizon Communications Inc.

Consolidated Statements of Income Before Special Items

(dollars in millions, except per share amounts)

Unaudited	3 Mos. Ended 6/30/05			3 Mos. Ended 6/30/04			% Change		6 Mos. Ended 6/30/05			6 Mos. Ended 6/30/04			% Change
Operating Revenues(1)
Domestic Telecom	$	9,445		$	9,492		(.5	)	$	18,812		$	18,973		(.8	)
Domestic Wireless		7,846			6,847		14.6			15,264			13,009		17.3
Information Services		870			889		(2.1	)		1,751			1,792		(2.3	)
International		537			506		6.1			1,054			974		8.2
Other		(182	)		(122	)	49.2			(335	)		(229	)	46.3
Total Operating Revenues		18,516			17,612		5.1			36,546			34,519		5.9
Operating Expenses(1)
Cost of services and sales		6,238			5,581		11.8			12,308			11,021		11.7
Selling, general & administrative expense		5,240			5,017		4.4			10,416			9,925		4.9
Depreciation and amortization expense		3,496			3,437		1.7			6,956			6,833		1.8
Total Operating Expenses		14,974			14,035		6.7			29,680			27,779		6.8
Operating Income		3,542			3,577		(1.0	)		6,866			6,740		1.9
Operating income impact of operations sold(1)		20			64		(68.8	)		78			95		(17.9	)
Equity in earnings of unconsolidated businesses		179			212		(15.6	)		372			411		(9.5	)
Income from other unconsolidated businesses		—			—		—			56			29		93.1
Other income and (expense), net		81			10		*			160			19		*
Interest expense		(540	)		(594	)	(9.1	)		(1,101	)		(1,232	)	(10.6	)
Minority interest		(717	)		(676	)	6.1			(1,330	)		(1,153	)	15.4
Income Before Provision for Income Taxes and Discontinued Operations		2,565			2,593		(1.1	)		5,101			4,909		3.9
Provision for income taxes		(798	)		(821	)	(2.8	)		(1,577	)		(1,524	)	3.5
Income Before Discontinued Operations		1,767			1,772		(.3	)		3,524			3,385		4.1
Discontinued Operations(2)
Income from operations		—			27		(100.0	)		—			56		(100.0	)
Provision for income taxes		—			(12	)	(100.0	)		—			(25	)	(100.0	)
Income on discontinued operations		—			15		(100.0	)		—			31		(100.0	)
Net Income Before Special Items	$	1,767		$	1,787		(1.1	)	$	3,524		$	3,416		3.2
Basic Earnings per Share	$	.64		$	.65		(1.5	)	$	1.27		$	1.23		3.3
Weighted average number of common shares (in millions)		2,766			2,770					2,768			2,770
Diluted Adjusted Earnings per Share(3)	$	.63		$	.64		(1.6	)	$	1.26		$	1.22		3.3
Weighted average number of common shares-assuming dilution (in millions)		2,818			2,834					2,819			2,840
Footnotes: (1)     Reclassifications of prior period amounts have also been made, where appropriate, to reflect comparable operating results excluding significant operations sold, principally the previously announced Domestic Telecom access lines, as follows:
Revenues	$	53		$	146				$	202		$	295
Expenses	$	33		$	82				$	124		$	200
(2)     Discontinued Operations includes the operations of Verizon Information Services Canada as a result of an agreement to sell the business reached in the third quarter of 2004. (3)     Diluted Earnings per Share include (i) income related to share dilution (exchangeable equity interests and zero coupon convertible debt) of $14 million and $28 million for the second quarter and year-to-date 2005, respectively, and $18 million and $40 million for the second quarter and year-to-date 2004, respectively, and (ii) the dilutive effect of shares issuable under our stock-based compensation plans, exchangeable equity interests and zero coupon convertible debt, which represent the only potential dilution. *        Not meaningful

Verizon Communications Inc.

Consolidated Statements of Income - Reconciliations

(dollars in millions, except per share amounts)

				Special and Non-Recurring Items
Unaudited	3 Mos. Ended 6/30/05 Reported (GAAP)			Sales of Businesses, Net			Impact of Operations Sold			Tax Benefits			Tax on Repatriated Earnings		3 Mos. Ended 6/30/05 Before Special Items
Operating Revenues	$	18,569		$	—		$	(53	)	$	—		$	—	$	18,516
Operating Expenses
Cost of services and sales		6,258			—			(20	)		—			—		6,238
Selling, general & administrative expense		5,253			—			(13	)		—			—		5,240
Depreciation and amortization expense		3,496			—			—			—			—		3,496
Sales of businesses, net		(530	)		530			—			—			—		—
Total Operating Expenses		14,477			530			(33	)		—			—		14,974
Operating Income		4,092			(530	)		(20	)		—			—		3,542
Operating income impact of operations sold		—			—			20			—			—		20
Equity in earnings of unconsolidated businesses		179			—			—			—			—		179
Income from other unconsolidated businesses		—			—			—			—			—		—
Other income and (expense), net		81			—			—			—			—		81
Interest expense		(540	)		—			—			—			—		(540	)
Minority interest		(717	)		—			—			—			—		(717	)
Income Before Provision for Income Taxes and Discontinued Operations		3,095			(530	)		—			—			—		2,565
Provision for income taxes		(982	)		194			—			(242	)		232		(798	)
Income Before Discontinued Operations		2,113			(336	)		—			(242	)		232		1,767
Discontinued Operations
Income from operations		—			—			—			—			—		—
Provision for income taxes		—			—			—			—			—		—
Income on discontinued operations		—			—			—			—			—		—
Net Income	$	2,113		$	(336	)	$	—		$	(242	)	$	232	$	1,767
Basic Earnings per Common Share(1)	$	.76		$	(.12	)	$	—		$	(.09	)	$	.08	$	.64
Diluted Earnings per Common Share(1)	$	.75		$	(.12	)	$	—		$	(.09	)	$	.08	$	.63

				Special and Non-Recurring Items
Unaudited	3 Mos. Ended 6/30/04 Reported (GAAP)			Severance, Pension and Benefit Charges			Impact of Operations Sold			Other Special Items			3 Mos. Ended 6/30/04 Before Special Items
Operating Revenues	$	17,758		$	—		$	(146	)	$	—		$	17,612
Operating Expenses
Cost of services and sales		5,620			—			(39	)		—			5,581
Selling, general & administrative expense		5,000			(31	)		(43	)		91			5,017
Depreciation and amortization expense		3,437			—			—			—			3,437
Total Operating Expenses		14,057			(31	)		(82	)		91			14,035
Operating Income		3,701			31			(64	)		(91	)		3,577
Operating income impact of operations sold		—			—			64			—			64
Equity in earnings of unconsolidated businesses		212			—			—			—			212
Income from other unconsolidated businesses		—			—			—			—			—
Other income and (expense), net		(2	)		—			—			12			10
Interest expense		(594	)		—			—			—			(594	)
Minority interest		(676	)		—			—			—			(676	)
Income Before Provision for Income Taxes and Discontinued Operations		2,641			31			—			(79	)		2,593
Provision for income taxes		(859	)		(12	)		—			50			(821	)
Income Before Discontinued Operations		1,782			19			—			(29	)		1,772
Discontinued Operations
Income from operations		27			—			—			—			27
Provision for income taxes		(12	)		—			—			—			(12	)
Income on discontinued operations		15			—			—			—			15
Net Income	$	1,797		$	19		$	—		$	(29	)	$	1,787
Basic Earnings per Common Share(1)	$	.65		$	.01		$	—		$	(.01	)	$	.65
Diluted Earnings per Common Share(1)	$	.64		$	.01		$	—		$	(.01	)	$	.64

Footnote:

(1) EPS totals may not add across due to rounding.

Note: See www.verizon.com/investor for a reconciliation of other non-GAAP measures included in this Quarterly Bulletin.

Verizon Communications Inc.

Consolidated Statements of Income - Reconciliations

(dollars in millions, except per share amounts)

				Special and Non-Recurring Items
Unaudited	6 Mos. Ended 6/30/05 Reported (GAAP)			Sales of Businesses, Net			Impact of Operations Sold			Tax Benefits			Tax on Repatriated Earnings			6 Mos. Ended 6/30/05 Before Special Items
Operating Revenues	$	36,748		$	—		$	(202	)	$	—		$	—		$	36,546
Operating Expenses
Cost of services and sales		12,381			—			(73	)		—			—			12,308
Selling, general & administrative expense		10,467			—			(51	)		—			—			10,416
Depreciation and amortization expense		6,956			—			—			—			—			6,956
Sales of businesses, net		(530	)		530			—			—			—			—
Total Operating Expenses		29,274			530			(124	)		—			—			29,680
Operating Income		7,474			(530	)		(78	)		—			—			6,866
Operating income impact of operations sold		—			—			78			—			—			78
Equity in earnings of unconsolidated businesses		372			—			—			—			—			372
Income from other unconsolidated businesses		56			—			—			—			—			56
Other income and (expense), net		160			—			—			—			—			160
Interest expense		(1,101	)		—			—			—			—			(1,101	)
Minority interest		(1,330	)		—			—			—			—			(1,330	)
Income Before Provision for Income Taxes and Discontinued Operations		5,631			(530	)		—			—			—			5,101
Provision for income taxes		(1,761	)		194			—			(242	)		232			(1,577	)
Income Before Discontinued Operations		3,870			(336	)		—			(242	)		232			3,524
Discontinued Operations
Income from operations		—			—			—			—			—			—
Provision for income taxes		—			—			—			—			—			—
Income on discontinued operations		—			—			—			—			—			—
Net Income	$	3,870		$	(336	)	$	—		$	(242	)	$	232		$	3,524
Basic Earnings per Common Share(1)	$	1.40		$	(.12	)	$	—		$	(.09	)	$	.08		$	1.27
Diluted Earnings per Common Share(1)	$	1.38		$	(.12	)	$	—		$	(.09	)	$	.08		$	1.26
				Special and Non-Recurring Items
Unaudited	6 Mos. Ended 6/30/04 Reported (GAAP)			Severance, Pension and Benefit Charges			Impact of Operations Sold			Sales of Investments, Net			Other Special Items			6 Mos. Ended 6/30/04 Before Special Items
Operating Revenues	$	34,814		$	—		$	(295	)	$	—		$	—		$	34,519
Operating Expenses
Cost of services and sales		11,110			—			(89	)		—			—			11,021
Selling, general & administrative expense		10,675			(759	)		(82	)		—			91			9,925
Depreciation and amortization expense		6,862			—			(29	)		—			—			6,833
Total Operating Expenses		28,647			(759	)		(200	)		—			91			27,779
Operating Income		6,167			759			(95	)		—			(91	)		6,740
Operating income impact of operations sold		—			—			95			—			—			95
Equity in earnings of unconsolidated businesses		411			—			—			—			—			411
Income from other unconsolidated businesses		72			—			—			(43	)		—			29
Other income and (expense), net		(36	)		—			—			—			55			19
Interest expense		(1,232	)		—			—			—			—			(1,232	)
Minority interest		(1,153	)		—			—			—			—			(1,153	)
Income Before Provision for Income Taxes and Discontinued Operations		4,229			759			—			(43	)		(36	)		4,909
Provision for income taxes		(1,264	)		(294	)		—			—			34			(1,524	)
Income Before Discontinued Operations		2,965			465			—			(43	)		(2	)		3,385
Discontinued Operations
Income from operations		56			—			—			—			—			56
Provision for income taxes		(25	)		—			—			—			—			(25	)
Income on discontinued operations		31			—			—			—			—			31
Net Income	$	2,996		$	465		$	—		$	(43	)	$	(2	)	$	3,416
Basic Earnings per Common Share(1)	$	1.08		$	.17		$	—		$	(.02	)	$	—		$	1.23
Diluted Earnings per Common Share(1)	$	1.07		$	.16		$	—		$	(.02	)	$	—		$	1.22

Footnote:

(1) EPS totals may not add across due to rounding.

Note: See www.verizon.com/investor for a reconciliation of other non-GAAP measures included in this Quarterly Bulletin.

Verizon Communications Inc.

Selected Financial and Operating Statistics

(dollars in millions, except per share amounts)

Unaudited	3 Mos. Ended 6/30/05			3 Mos. Ended 6/30/04			6 Mos. Ended 6/30/05			6 Mos. Ended 6/30/04
Debt to debt and shareowners’ equity ratio-end of period		52.0	%		55.1	%		52.0	%		55.1	%
Book value per common share	$	13.94		$	12.32		$	13.94		$	12.32
Cash dividends declared per common share	$	.405		$	.385		$	.81		$	.77
Common shares outstanding (in millions)
End of period		2,765			2,768			2,765			2,768
Capital expenditures (including capitalized software)
Domestic Telecom	$	2,152		$	1,660		$	4,044		$	2,942
Domestic Wireless		1,698			1,433			3,339			2,747
Information Services		20			18			33			31
International		76			69			122			97
Other		115			3			117			7
Total	$	4,061		$	3,183		$	7,655		$	5,824
Total employees (1)		214,490			204,828			214,490			204,828

Footnote:

(1) Prior period adjusted to reflect comparable figure.

Verizon Communications Inc.

Consolidated Balance Sheets

(dollars in millions)

Unaudited	6/30/05			12/31/04			$ Change
Assets
Current assets
Cash and cash equivalents	$	1,405		$	2,290		$	(885	)
Short-term investments		1,596			2,257			(661	)
Accounts receivable, net		9,566			9,801			(235	)
Inventories		1,373			1,535			(162	)
Assets held for sale		—			950			(950	)
Prepaid expenses and other		2,729			2,646			83
Total current assets		16,669			19,479			(2,810	)
Plant, property and equipment		190,232			185,522			4,710
Less accumulated depreciation		115,099			111,398			3,701
		75,133			74,124			1,009
Investments in unconsolidated businesses		5,609			5,855			(246	)
Wireless licenses		47,568			42,090			5,478
Goodwill		837			837			—
Other intangible assets, net		4,433			4,521			(88	)
Other assets		19,128			19,052			76
Total Assets	$	169,377		$	165,958		$	3,419
Liabilities and Shareowners’ Investment
Current liabilities
Debt maturing within one year	$	8,687		$	3,593		$	5,094
Accounts payable and accrued liabilities		12,767			13,177			(410	)
Liabilities related to assets held for sale		—			525			(525	)
Other		5,988			5,834			154
Total current liabilities		27,442			23,129			4,313
Long-term debt		33,070			35,674			(2,604	)
Employee benefit obligations		18,110			17,941			169
Deferred income taxes		22,896			22,532			364
Other liabilities		3,952			4,069			(117	)
Minority interest		25,353			25,053			300
Shareowners’ investment
Common stock		277			277			—
Contributed capital		25,385			25,404			(19	)
Reinvested earnings		14,615			12,984			1,631
Accumulated other comprehensive loss		(1,613	)		(1,053	)		(560	)
Common stock in treasury, at cost		(298	)		(142	)		(156	)
Deferred compensation - employee stock ownership plans and other		188			90			98
Total shareowners’ investment		38,554			37,560			994
Total Liabilities and Shareowners’ Investment	$	169,377		$	165,958		$	3,419

Verizon Communications Inc.

Condensed Consolidated Statements of Cash Flows

(dollars in millions)

Unaudited	6 Mos. Ended 6/30/05			6 Mos. Ended 6/30/04			$ Change
Cash Flows From Operating Activities
Income before discontinued operations	$	3,870		$	2,965		$	905
Adjustments to reconcile income before discontinued operations to net cash provided by operating activities:
Depreciation and amortization expense		6,956			6,862			94
Sales of businesses, net		(530	)		—			(530	)
Employee retirement benefits		861			1,410			(549	)
Deferred income taxes		(735	)		472			(1,207	)
Provision for uncollectible accounts		590			505			85
Income from unconsolidated businesses		(428	)		(483	)		55
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses		(1,252	)		(2,309	)		1,057
Other, net		580			471			109
Net cash provided by operating activities		9,912			9,893			19
Cash Flows From Investing Activities
Capital expenditures (including capitalized software)		(7,655	)		(5,824	)		(1,831	)
Acquisitions, net of cash acquired, and investments		(4,438	)		(55	)		(4,383	)
Proceeds from disposition of businesses		1,326			117			1,209
Net change in short-term investments		534			759			(225	)
Other, net		(689	)		247			(936	)
Net cash used in investing activities		(10,922	)		(4,756	)		(6,166	)
Cash Flows From Financing Activities
Proceeds from long-term borrowings		8			500			(492	)
Repayments of long-term borrowings and capital lease obligations		(1,947	)		(4,765	)		2,818
Increase in short-term obligations, excluding current maturities		4,374			1,254			3,120
Dividends paid		(2,188	)		(2,131	)		(57	)
Proceeds from sale of common stock		32			91			(59	)
Purchase of common stock for treasury		(193	)		(86	)		(107	)
Other, net		39			(86	)		125
Net cash provided by (used in) financing activities		125			(5,223	)		5,348
Decrease in cash and cash equivalents		(885	)		(86	)		(799	)
Cash and cash equivalents, beginning of period		2,290			669			1,621
Cash and cash equivalents, end of period	$	1,405		$	583		$	822

Verizon Communications Inc.

Domestic Telecom – Selected Financial Results

(dollars in millions)

Unaudited	3 Mos. Ended 6/30/05			3 Mos. Ended 6/30/04			% Change		6 Mos. Ended 6/30/05			6 Mos. Ended 6/30/04			% Change
Operating Revenues
Local services	$	4,427		$	4,592		(3.6	)	$	8,846		$	9,208		(3.9	)
Network access services		3,017			3,003		.5			6,077			6,058		.3
Long distance services		1,092			1,023		6.7			2,163			2,010		7.6
Other services		909			874		4.0			1,726			1,697		1.7
Total Operating Revenues		9,445			9,492		(.5	)		18,812			18,973		(.8	)
Operating Expenses
Cost of services and sales		3,855			3,604		7.0			7,701			7,274		5.9
Selling, general & administrative expense		2,192			2,303		(4.8	)		4,272			4,415		(3.2	)
Depreciation and amortization expense		2,198			2,209		(.5	)		4,385			4,437		(1.2	)
Total Operating Expenses		8,245			8,116		1.6			16,358			16,126		1.4
Operating Income	$	1,200		$	1,376		(12.8	)	$	2,454		$	2,847		(13.8	)
Operating Income Margin		12.7	%		14.5	%				13.0	%		15.0	%
Segment Income	$	459		$	636		(27.8	)	$	963		$	1,326		(27.4	)

Footnotes:

The segment financial results above are adjusted to exclude the effects of special and non-recurring items. The company’s chief decision makers exclude these items in assessing business unit performance, primarily due to their non-operational nature.

Intersegment transactions have not been eliminated.

Certain reclassifications have been made, where appropriate, to reflect comparable operating results.

Verizon Communications Inc.

Domestic Telecom – Selected Operating Statistics

Unaudited	3 Mos. Ended 6/30/05		3 Mos. Ended 6/30/04		% Change		6 Mos. Ended 6/30/05		6 Mos. Ended 6/30/04		% Change
Switched access lines in service (000)
Residence		32,441		34,815	(6.8	)		32,441		34,815	(6.8	)
Business		17,842		18,399	(3.0	)		17,842		18,399	(3.0	)
Public		408		437	(6.6	)		408		437	(6.6	)
Total		50,691		53,651	(5.5	)		50,691		53,651	(5.5	)
Wholesale voice connections* (000)		6,172		6,597	(6.4	)		6,172		6,597	(6.4	)
Minutes of use from Carriers and CLECs (in millions)		52,180		56,071	(6.9	)		104,714		113,961	(8.1	)
Long distance lines (000)		17,964		16,506	8.8			17,964		16,506	8.8
Broadband connections (000)		4,142		2,883	43.7			4,142		2,883	43.7
High capacity and digital data revenues ($ in millions)
Data transport	$	1,882	$	1,707	10.3		$	3,747	$	3,376	11.0
Data solutions		211		180	17.2			389		343	13.4
Total revenues	$	2,093	$	1,887	10.9		$	4,136	$	3,719	11.2

Footnotes:

* Resale and UNE-P lines, including lines covered under commercial agreements.

Certain reclassifications have been made, where appropriate, to reflect comparable operating results.

Verizon Communications Inc.

Verizon Wireless – Selected Financial Results

(dollars in millions)

Unaudited	3 Mos. Ended 6/30/05			3 Mos. Ended 6/30/04			% Change	6 Mos. Ended 6/30/05			6 Mos. Ended 6/30/04			% Change
Revenues
Service revenues	$	6,874		$	6,043		13.8	$	13,431		$	11,544		16.3
Equipment and other		972			804		20.9		1,833			1,465		25.1
Total Revenues		7,846			6,847		14.6		15,264			13,009		17.3
Operating Expenses
Cost of services and sales		2,282			1,854		23.1		4,380			3,512		24.7
Selling, general & administrative expense		2,607			2,275		14.6		5,237			4,522		15.8
Depreciation and amortization expense		1,175			1,103		6.5		2,325			2,158		7.7
Total Operating Expenses		6,064			5,232		15.9		11,942			10,192		17.2
Operating Income	$	1,782		$	1,615		10.3	$	3,322		$	2,817		17.9
Operating Income Margin		22.7	%		23.6	%			21.8	%		21.7	%
Segment Income	$	517		$	453		14.1	$	950		$	771		23.2
Selected Operating Statistics
Subscribers (000)		47,373			40,444		17.1		47,373			40,444		17.1
Penetration		19.2	%		16.8	%			19.2	%		16.8	%
Subscriber net adds in period(1) (000)		1,921			1,535		25.1		3,557			2,922		21.7
Total churn rate, including prepaid		1.2	%		1.4	%			1.3	%		1.5	%

Footnotes:

The segment financial results above are adjusted to exclude the effects of special and non-recurring items. The company’s chief decision makers exclude these items in assessing business unit performance, primarily due to their non-operational nature.

Intersegment transactions have not been eliminated.

(1) Includes acquisition of 32,000 subscribers in the first quarter of 2005 and 4,000 subscribers in the second quarter of 2005.

Verizon Communications Inc.

Information Services – Selected Financial Results

(dollars in millions)

Unaudited	3 Mos. Ended 6/30/05			3 Mos. Ended 6/30/04			% Change		6 Mos. Ended 6/30/05			6 Mos. Ended 6/30/04			% Change
Operating Revenues	$	870		$	889		(2.1	)	$	1,751		$	1,792		(2.3	)
Operating Expenses
Cost of services and sales		148			135		9.6			303			268		13.1
Selling, general & administrative expense		293			341		(14.1	)		574			659		(12.9	)
Depreciation and amortization expense		23			21		9.5			46			42		9.5
Total Operating Expenses		464			497		(6.6	)		923			969		(4.7	)
Operating Income	$	406		$	392		3.6		$	828		$	823		.6
Operating Income Margin		46.7	%		44.1	%				47.3	%		45.9	%
Segment Income	$	255		$	236		8.1		$	519		$	499		4.0

Footnotes:

The segment financial results above are adjusted to exclude the effects of special and non-recurring items. The company’s chief decision makers exclude these items in assessing business unit performance, primarily due to their non-operational nature.

Intersegment transactions have not been eliminated.

Information Services results for the prior year exclude the operations of Verizon Information Services Canada as a result of an agreement to sell the business reached in the third quarter of 2004. The sale was completed in the fourth quarter of 2004.

Certain reclassifications have been made, where appropriate, to reflect comparable operating results.

Verizon Communications Inc.

International – Selected Financial Results

(dollars in millions)

Unaudited	3 Mos. Ended 6/30/05			3 Mos. Ended 6/30/04			% Change		6 Mos. Ended 6/30/05			6 Mos. Ended 6/30/04			% Change
Operating Revenues	$	537		$	506		6.1		$	1,054		$	974		8.2
Operating Expenses
Cost of services and sales		186			156		19.2			363			303		19.8
Selling, general & administrative expense		161			87		85.1			318			215		47.9
Depreciation and amortization expense		86			80		7.5			170			157		8.3
Total Operating Expenses		433			323		34.1			851			675		26.1
Operating Income	$	104		$	183		(43.2	)	$	203		$	299		(32.1	)
Operating Income Margin		19.4	%		36.2	%				19.3	%		30.7	%
Equity in Earnings of Unconsolidated Businesses	$	208		$	249		(16.5	)	$	433		$	488		(11.3	)
Income from Other Unconsolidated Businesses	$	—		$	—		—		$	56		$	29		93.1
Segment Income	$	271		$	287		(5.6	)	$	622		$	568		9.5

Footnotes:

The segment financial results above are adjusted to exclude the effects of special and non-recurring items. The company’s chief decision makers exclude these items in assessing business unit performance, primarily due to their non-operational nature.

Intersegment transactions have not been eliminated.

Verizon Communications Inc.

Other Reconciliations

(dollars in millions)

Unaudited	3 Mos. Ended 6/30/05
EBITDA - Verizon Wireless
Segment income:
Domestic Telecom	$	459
Verizon Wireless		517
Information Services		255
International		271
Total segments		1,502
Corporate and other		611
Consolidated net income	$	2,113
Verizon Wireless EBITDA
Segment income	$	517
Add/subtract non-operating items:
Provision for income taxes		403
Minority interest		708
Interest expense		163
Other income/(expense), net		(3	)
Equity in earnings of unconsolidated businesses		(6	)
Operating income		1,782
Add depreciation and amortization expense		1,175
Verizon Wireless EBITDA	$	2,957
Verizon Wireless total revenues	$	7,846
Verizon Wireless service revenues	$	6,874
Verizon Wireless operating income margin		22.7	%
Verizon Wireless EBITDA margin		43.0	%