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: January 21, 2011

(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.)

140 West Street New York, New York	10007
(Address of principal executive offices)	(Zip Code)

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

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 8.01. Other Events.

On January 21, 2011, Verizon Communications Inc. (Verizon) issued a press release announcing a change to its method of accounting for pension and other post-employment benefits, which is provided as Exhibit 99.1 and incorporated herein by reference. Historically, Verizon has recognized actuarial gains and losses as a component of Equity in its consolidated balance sheets on an annual basis, amortizing them into operating results generally over the average future service period of active employees in these plans. During the fourth quarter of 2010, Verizon elected to immediately recognize actuarial gains and losses in its operating results in the year in which the gains and losses occur. This change is intended to improve the transparency of Verizon’s operational performance by recognizing the effects of current economic and interest rate trends on plan investments and assumptions. These gains and losses are generally measured annually as of December 31st and, accordingly, are recorded during the fourth quarter. Additionally, Verizon will no longer calculate expected return on plan assets using an averaging technique permitted under U.S. Generally Accepted Accounting Principles for the market-related value of plan assets but instead will use actual fair value of plan assets. Verizon has applied this change retrospectively, adjusting prior periods.

Verizon’s operating segment results follow internal management reporting which is used for making operating decisions and assessing performance. Historically, total benefit cost was allocated to each segment. As part of this change to its method of accounting, the service cost and the amortization of prior service costs, which are representative of the benefits earned by active employees during the period, will continue to be allocated to the segment in which the employee is employed, while interest cost and expected return on assets will now be recorded at the Corporate level. The recognition of actuarial gains and losses will also be recorded at the Corporate level. Verizon has adjusted prior-period segment information to conform to this presentation.

As a convenience to investors who may want to consider the effects of this change in accounting, we are making available in Exhibit 99.2 unaudited historical consolidated and wireline segment financial information for the past 7 quarters.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number	Description
99.1	Press release issued by Verizon Communications Inc. (Verizon) announcing a change to its method of accounting for pensions and other post-employment benefits.
99.2	Verizon unaudited historical financial information adjusted for a change to its method of accounting for pension and other post-employment benefits.

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: January 21, 2011	/s/    Robert J. Barish
	Robert J. Barish
	Senior Vice President and Controller

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press release issued by Verizon Communications Inc. (Verizon) announcing a change to its method of accounting for pensions and other post-employment benefits.
99.2	Verizon unaudited historical financial information adjusted for a change to its method of accounting for pension and other post-employment benefits.

EX-99.1

Exhibit 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE	Media contact:
January 21, 2011	Bob Varettoni
	908-559-6388
	robert.a.varettoni@verizon.com

Verizon Improves Method of Accounting for Pensions and Other Post-Employment Benefits

NEW YORK — Verizon Communications Inc. (NYSE, NASDAQ:VZ) announced today that it has adopted a new policy that changes the method of accounting for pensions and other post-employment benefits (OPEB). The improved policy recognizes gains and losses in the year they are incurred, rather than amortizing them over time.

Under the new method, annual adjustments will be made to reflect actual return on pension plan assets, changes in discount rates and differences from other actuarial assumptions.

There is no impact on cash flow or pension funding requirements as a result of this change, and there is no change to Verizon’s pension or OPEB liability. In addition, Verizon Wireless is not impacted by this change.

“Our decision to adopt this new accounting policy will make our financial reporting easier to understand and more transparent,” said Fran Shammo, Verizon executive vice president

Verizon News Release, page 2

and chief financial officer. “We’ve been considering this for some time. For us, it was a question of when, not if, we would make this change.”

Verizon will report fourth-quarter and full-year 2010 results on Jan. 25, and the company said that the impact of this accounting change will result in cumulative pre-tax charges of $600 million for full-year 2010. This is due primarily to a lower discount rate, partially offset by a return on assets that was higher than expected, and favorable health care trends and other costs.

The company lowered its assumed discount rate, which was 6.25 percent at the end of 2009, to 5.75 percent for purposes of determining its pension and OPEB liability. This change increased the liability by $2.9 billion in 2010. The estimated return on pension assets in 2010 was approximately 14 percent, compared with an assumption of 8.5 percent, resulting in an actuarial gain of approximately $1 billion. Health care and other retiree benefit costs were favorable compared to assumptions, resulting in a $1.3 billion reduction in liabilities.

For 2011, the company said it has lowered its return on pension assets assumption from 8.5 percent to 8.0 percent.

For comparability, Verizon has adjusted quarterly financial information for 2009 and the first three quarters of 2010. These historical results have been posted on Verizon’s Investor Relations website, www.verizon.com/investor.

Verizon Communications Inc. (NYSE, NASDAQ:VZ), headquartered in New York, is a global leader in delivering broadband and other wireless and wireline communications services to mass market, business, government and wholesale customers. Verizon Wireless operates America’s most reliable wireless network, serving more than 93 million customers nationwide. Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and delivers innovative, seamless business solutions to customers around the world. A Dow 30 company, Verizon employs a diverse workforce of more than 195,000. For more information, visit www.verizon.com.

####

Verizon News Release, page 3

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 document 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: the effects of adverse conditions in the U.S. and international economies; the effects of competition in our markets; materially adverse changes in 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; the effect of material changes in available technology; any disruption of our suppliers’ provisioning of critical products or services; significant increases in benefit plan costs or lower investment returns on plan assets; the impact of natural or man-made disasters or existing or future litigation and any resulting financial impact not covered by insurance; technology substitution; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets impacting the cost, including interest rates, and/or availability of financing; any changes in the regulatory environments in which we operate, including any loss of or inability to renew wireless licenses, and the final results of federal and state regulatory proceedings and judicial review of those results; the timing, scope and financial impact of our deployment of fiber-to-the-premises broadband technology; 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; our ability to complete acquisitions and dispositions; our ability to successfully integrate Alltel Corporation into Verizon Wireless’ business and achieve anticipated benefits of the acquisition; and the inability to implement our business strategies.

EX-99.2

Exhibit 99.2

Verizon Communications Inc.

Condensed Consolidated Statements of Income — Quarter to Date - As Adjusted

													(dollars in millions, except per share amounts)
	2009												2010
Unaudited	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter			1st Quarter			2nd Quarter			3rd Quarter
Operating Revenues	$	26,591		$	26,861		$	27,265		$	27,091		$	26,913		$	26,773		$	26,484
Operating Expenses
Cost of services and sales		10,379			10,549			11,066			12,585			10,652			12,216			10,671
Selling, general & administrative expense		7,654			7,548			8,204			7,311			7,698			9,970			8,407
Depreciation and amortization expense		4,028			4,092			4,172			4,242			4,122			4,177			4,023
Total Operating Expenses		22,061			22,189			23,442			24,138			22,472			26,363			23,101
Operating Income		4,530			4,672			3,823			2,953			4,441			410			3,383
Equity in earnings of unconsolidated businesses		128			128			166			131			133			121			141
Other income and (expense), net		52			12			14			13			46			16			(51	)
Interest expense		(925	)		(787	)		(704	)		(686	)		(680	)		(679	)		(597	)
Income (Loss) Before (Provision) Benefit for Income Taxes		3,785			4,025			3,299			2,411			3,940			(132	)		2,876
(Provision) benefit for income taxes		(699	)		(690	)		(490	)		(40	)		(1,622	)		685			(178	)
Net Income	$	3,086		$	3,335		$	2,809		$	2,371		$	2,318		$	553		$	2,698
Net income attributable to noncontrolling interest		1,565			1,677			1,711			1,754			1,875			1,745			2,039
Net income (loss) attributable to Verizon		1,521			1,658			1,098			617			443			(1,192	)		659
Net Income	$	3,086		$	3,335		$	2,809		$	2,371		$	2,318		$	553		$	2,698
Basic Earnings (Loss) per Share (1)
Net income (loss) attributable to Verizon	$	.54		$	.58		$	.39		$	.22		$	.16		$	(.42	)	$	.23
Weighted average number of common shares (in millions)		2,841			2,841			2,841			2,841			2,836			2,827			2,829
Diluted Earnings (Loss) per Share (1)
Net income (loss) attributable to Verizon	$	.54		$	.58		$	.39		$	.22		$	.16		$	(.42	)	$	.23
Weighted average number of common shares-assuming dilution (in millions)		2,841			2,841			2,841			2,841			2,837			2,827			2,830

Footnotes:

(1) Diluted Earnings per Share includes the dilutive effect of shares issuable under our stock-based compensation plans which represent the only potential dilution. As a result of the Net loss attributable to Verizon for the three months ended June 30, 2010, diluted earnings per share is the same as basic earnings per share.

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

Verizon Communications Inc.

Condensed Consolidated Statements of Income — Quarter to Date — as adjusted compared to previously reported

													(dollars in millions, except per share amounts)
	2009												2010
Unaudited	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter			1st Quarter			2nd Quarter			3rd Quarter
Operating Revenues	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Operating Expenses
Cost of services and sales		71			68			70			71			(65	)		(23	)		(579	)
Selling, general & administrative expense		93			(323	)		93			(2,096	)		(26	)		1,651			942
Depreciation and amortization expense		—			1			—			1			1			1			1
Total Operating Expenses		164			(254	)		163			(2,024	)		(90	)		1,629			364
Operating Income		(164	)		254			(163	)		2,024			90			(1,629	)		(364	)
Equity in earnings of unconsolidated businesses		—			—			—			—			—			—			—
Other income and (expense), net		(1	)		1			1			—			1			(1	)		(1	)
Interest expense		—			—			—			—			—			—			—
Income (loss) Before (Provision) Benefit for Income Taxes		(165	)		255			(162	)		2,024			91			(1,630	)		(365	)
(Provision) benefit for income taxes		41			(80	)		84			(754	)		(57	)		636			143
Net Income	$	(124	)	$	175		$	(78	)	$	1,270		$	34		$	(994	)	$	(222	)
Net income attributable to noncontrolling interest		—			—			—			—			—			—			—
Net income (loss) attributable to Verizon		(124	)		175			(78	)		1,270			34			(994	)		(222	)
Net Income	$	(124	)	$	175		$	(78	)	$	1,270		$	34		$	(994	)	$	(222	)
Basic Earnings (Loss) per Share (1)
Net income (loss) attributable to Verizon	$	(.04	)	$	.06		$	(.02	)	$	.45		$	.02		$	(.35	)	$	(.08	)
Weighted average number of common shares (in millions)		2,841			2,841			2,841			2,841			2,836			2,827			2,829
Diluted Earnings (Loss) per Share (1)
Net income (loss) attributable to Verizon	$	(.04	)	$	.06		$	(.02	)	$	.45		$	.02		$	(.35	)	$	(.08	)
Weighted average number of common shares-assuming dilution (in millions)		2,841			2,841			2,841			2,841			2,837			2,827			2,830

Footnotes:

(1) Diluted Earnings per Share includes the dilutive effect of shares issuable under our stock-based compensation plans which represent the only potential dilution.

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

Verizon Communications Inc.

Condensed Consolidated Statements of Income — Year to Date - As Adjusted

													(dollars in millions, except per share amounts)
	2009												2010
Unaudited	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter			1st Quarter			2nd Quarter			3rd Quarter
Operating Revenues	$	26,591		$	53,452		$	80,717		$	107,808		$	26,913		$	53,686		$	80,170
Operating Expenses
Cost of services and sales		10,379			20,928			31,994			44,579			10,652			22,868			33,539
Selling, general & administrative expense		7,654			15,202			23,406			30,717			7,698			17,668			26,075
Depreciation and amortization expense		4,028			8,120			12,292			16,534			4,122			8,299			12,322
Total Operating Expenses		22,061			44,250			67,692			91,830			22,472			48,835			71,936
Operating Income		4,530			9,202			13,025			15,978			4,441			4,851			8,234
Equity in earnings of unconsolidated businesses		128			256			422			553			133			254			395
Other income and (expense), net		52			64			78			91			46			62			11
Interest expense		(925	)		(1,712	)		(2,416	)		(3,102	)		(680	)		(1,359	)		(1,956	)
Income Before Provision for Income Taxes		3,785			7,810			11,109			13,520			3,940			3,808			6,684
Provision for income taxes		(699	)		(1,389	)		(1,879	)		(1,919	)		(1,622	)		(937	)		(1,115	)
Net Income	$	3,086		$	6,421		$	9,230		$	11,601		$	2,318		$	2,871		$	5,569
Net income attributable to noncontrolling interest		1,565			3,242			4,953			6,707			1,875			3,620			5,659
Net income (loss) attributable to Verizon		1,521			3,179			4,277			4,894			443			(749	)		(90	)
Net Income	$	3,086		$	6,421		$	9,230		$	11,601		$	2,318		$	2,871		$	5,569
Basic Earnings (Loss) per Share (1)
Net income (loss) attributable to Verizon	$	.54		$	1.12		$	1.51		$	1.72		$	.16		$	(.26	)	$	(.03	)
Weighted average number of common shares (in millions)		2,841			2,841			2,841			2,841			2,836			2,831			2,830
Diluted Earnings (Loss) per Share (1) (2)
Net income (loss) attributable to Verizon	$	.54		$	1.12		$	1.51		$	1.72		$	.16		$	(.26	)	$	(.03	)
Weighted average number of common shares-assuming dilution (in millions)		2,841			2,841			2,841			2,841			2,837			2,831			2,830

Footnotes:

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

(2) Diluted Earnings per Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represent the only potential dilution. As a result of the Net loss attributable to Verizon for the six months ended June 30, 2010 and the nine months ended September 30, 2010, diluted earnings per share is the same as basic earnings per share.

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

Verizon Communications Inc.

Condensed Consolidated Statements of Income — Year to Date — as adjusted compared to previously reported

													(dollars in millions, except per share amounts)
	2009												2010
Unaudited	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter			1st Quarter			2nd Quarter			3rd Quarter
Operating Revenues	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Operating Expenses
Cost of services and sales		71			139			209			280			(65	)		(88	)		(667	)
Selling, general & administrative expense		93			(230	)		(137	)		(2,233	)		(26	)		1,625			2,567
Depreciation and amortization expense		—			1			1			2			1			2			3
Total Operating Expenses		164			(90	)		73			(1,951	)		(90	)		1,539			1,903
Operating Income		(164	)		90			(73	)		1,951			90			(1,539	)		(1,903	)
Equity in earnings of unconsolidated businesses		—			—			—			—			—			—			—
Other income and (expense), net		(1	)		—			1			1			1			—			(1	)
Interest expense		—			—			—			—			—			—			—
Income Before (Provision) Benefit for Income Taxes		(165	)		90			(72	)		1,952			91			(1,539	)		(1,904	)
(Provision) benefit for income taxes		41			(39	)		45			(709	)		(57	)		579			722
Net Income	$	(124	)	$	51		$	(27	)	$	1,243		$	34		$	(960	)	$	(1,182	)
Net income attributable to noncontrolling interest		—			—			—			—			—			—			—
Net income (loss) attributable to Verizon		(124	)		51			(27	)		1,243			34			(960	)		(1,182	)
Net Income	$	(124	)	$	51		$	(27	)	$	1,243		$	34		$	(960	)	$	(1,182	)
Basic Earnings (Loss) per Share (1)
Net income (loss) attributable to Verizon	$	(.04	)	$	.02		$	—		$	.43		$	.02		$	(.33	)	$	(.42	)
Weighted average number of common shares (in millions)		2,841			2,841			2,841			2,841			2,836			2,831			2,830
Diluted Earnings (Loss) per Share (1) (2)
Net income (loss) attributable to Verizon	$	(.04	)	$	.02		$	—		$	.43		$	.02		$	(.33	)	$	(.42	)
Weighted average number of common shares-assuming dilution (in millions)		2,841			2,841			2,841			2,841			2,837			2,831			2,830

Footnotes:

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

(2) Diluted Earnings per Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represent the only potential dilution.

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

Verizon Communications Inc.

Wireline — Selected Financial Results — Quarter to Date - As Adjusted

													(dollars in millions)
	2009												2010
Unaudited	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter			1st Quarter			2nd Quarter			3rd Quarter
Operating Revenues
Mass Markets	$	3,990		$	4,031		$	4,047		$	4,047		$	4,028		$	4,070		$	4,073
Global Enterprise		3,918			3,878			3,958			3,913			3,868			3,911			3,926
Global Wholesale		2,269			2,291			2,307			2,288			2,210			2,100			2,072
Other		463			363			355			333			269			196			215
Total Operating Revenues		10,640			10,563			10,667			10,581			10,375			10,277			10,286
Operating Expenses
Cost of services and sales		5,542			5,572			5,851			5,728			5,741			5,611			5,658
Selling, general & administrative expense		2,555			2,517			2,407			2,468			2,450			2,359			2,296
Depreciation and amortization expense		1,998			2,039			2,075			2,126			2,063			2,100			2,145
Total Operating Expenses		10,095			10,128			10,333			10,322			10,254			10,070			10,099
Operating Income	$	545		$	435		$	334		$	259		$	121		$	207		$	187
Operating Income Margin		5.1	%		4.1	%		3.1	%		2.4	%		1.2	%		2.0	%		1.8	%

Footnotes:

The segment financial results above are adjusted to exclude the effects of non-operational items, as the Company’s chief operating decision maker excludes these items in assessing business unit performance.

Intersegment transactions have not been eliminated.

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

Verizon Communications Inc.

Wireline — Selected Financial Results — Quarter to Date — as adjusted compared to previously reported

													(dollars in millions)
	2009												2010
Unaudited	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter			1st Quarter			2nd Quarter			3rd Quarter
Operating Revenues
Mass Markets	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Global Enterprise		—			—			—			—			—			—			—
Global Wholesale		—			—			—			—			—			—			—
Other		—			—			—			—			—			—			—
Total Operating Revenues		—			—			—			—			—			—			—
Operating Expenses
Cost of services and sales		(126	)		(129	)		(127	)		(125	)		(151	)		(151	)		(145	)
Selling, general & administrative expense		(16	)		(16	)		(16	)		(17	)		(25	)		(23	)		(23	)
Depreciation and amortization expense		—			—			—			—			—			—			—
Total Operating Expenses		(142	)		(145	)		(143	)		(142	)		(176	)		(174	)		(168	)
Operating Income	$	142		$	145		$	143		$	142		$	176		$	174		$	168

Footnotes:

The segment financial results above are adjusted to exclude the effects of non-operational items, as the Company’s chief operating decision maker excludes these items in assessing business unit performance.

Intersegment transactions have not been eliminated.

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

Verizon Communications Inc.

Wireline — Selected Financial Results — Year to Date — As Adjusted

										(dollars in millions)
	2009												2010
Unaudited	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter			1st Quarter			2nd Quarter			3rd Quarter
Operating Revenues
Mass Markets	$	3,990		$	8,021		$	12,068		$	16,115		$	4,028		$	8,098		$	12,171
Global Enterprise		3,918			7,796			11,754			15,667			3,868			7,779			11,705
Global Wholesale		2,269			4,560			6,867			9,155			2,210			4,310			6,382
Other		463			826			1,181			1,514			269			465			680
Total Operating Revenues		10,640			21,203			31,870			42,451			10,375			20,652			30,938
Operating Expenses
Cost of services and sales		5,542			11,114			16,965			22,693			5,741			11,352			17,010
Selling, general & administrative expense		2,555			5,072			7,479			9,947			2,450			4,809			7,105
Depreciation and amortization expense		1,998			4,037			6,112			8,238			2,063			4,163			6,308
Total Operating Expenses		10,095			20,223			30,556			40,878			10,254			20,324			30,423
Operating Income	$	545		$	980		$	1,314		$	1,573		$	121		$	328		$	515
Operating Income Margin		5.1	%		4.6	%		4.1	%		3.7	%		1.2	%		1.6	%		1.7	%

Footnotes:

The segment financial results above are adjusted to exclude the effects of non-operational items, as the Company’s chief operating decision maker excludes these items in assessing business unit performance.

Intersegment transactions have not been eliminated.

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

Verizon Communications Inc.

Wireline — Selected Financial Results — Year to Date — as adjusted compared to previously reported

										(dollars in millions)
	2009												2010
Unaudited	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter			1st Quarter			2nd Quarter			3rd Quarter
Operating Revenues
Mass Markets	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Global Enterprise		—			—			—			—			—			—			—
Global Wholesale		—			—			—			—			—			—			—
Other		—			—			—			—			—			—			—
Total Operating Revenues		—			—			—			—			—			—			—
Operating Expenses
Cost of services and sales		(126	)		(255	)		(382	)		(507	)		(151	)		(302	)		(447	)
Selling, general & administrative expense		(16	)		(32	)		(48	)		(65	)		(25	)		(48	)		(71	)
Depreciation and amortization expense		—			—			—			—			—			—			—
Total Operating Expenses		(142	)		(287	)		(430	)		(572	)		(176	)		(350	)		(518	)
Operating Income	$	142		$	287		$	430		$	572		$	176		$	350		$	518

Footnotes:

The segment financial results above are adjusted to exclude the effects of non-operational items, as the Company’s chief operating decision maker excludes these items in assessing business unit performance.

Intersegment transactions have not been eliminated.

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

Verizon Communications Inc.

Earnings Per Share Reconciliations — Quarter to date — As Adjusted

	2009									2010
Unaudited	1st Quarter		2nd Quarter			3rd Quarter		4th Quarter		1st Quarter		2nd Quarter			3rd Quarter
Earnings (Loss) Per Share, Reported	$	0.54	$	0.58		$	0.39	$	0.22	$	0.16	$	(0.42	)	$	0.23
Selected Items Included in Earnings Per Share:
Merger integration and acquisition related charges		0.05		0.02			0.04		0.02		0.01		0.06			0.02
Access line spin-off and other charges		—		—			0.02		0.09		0.04		0.04			0.04
Severance, pension, and benefit charges		0.01		(0.01	)		0.12		0.17		–		0.86			0.26
Medicare Part D subsidy charges		—		—			—		—		0.34		—			—
Deferred revenue adjustment		—		—			—		—		—		0.03			—
Adjusted Earnings Per Share*	$	0.60	$	0.60		$	0.56	$	0.50	$	0.55	$	0.57		$	0.55

* Includes impact of divested operations of ($.09), ($.08), ($.08) and ($.06) in first, second, third and fourth quarters of 2009, respectively, and ($.07) and ($.06) in the first and second quarters of 2010, respectively.

Details may not add due to rounding.

Verizon Communications Inc.

Earnings Per Share Reconciliations — Quarter to Date — as adjusted compared to previously reported

	2009												2010
Unaudited	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter			1st Quarter			2nd Quarter			3rd Quarter
Earnings (Loss) Per Share, Reported	$	(0.04	)	$	0.06		$	(0.02	)	$	0.45		$	0.02		$	(0.35	)	$	(0.08	)
Selected Items Included in Earnings Per Share:
Merger integration and acquisition related charges		—			—			—			—			—			—			—
Access line spin-off and other charges		—			—			—			—			—			—			—
Severance, pension, and benefit charges		0.01			(0.10	)		(0.01	)		(0.49	)		(0.03	)		0.34			0.07
Medicare Part D subsidy charges		—			—			—			—			—			—			—
Deferred revenue adjustment		—			—			—			—			—			—			—
Adjusted Earnings Per Share	$	(0.03	)	$	(0.03	)	$	(0.04	)	$	(0.04	)	$	(0.01	)	$	(0.01	)	$	(0.01	)

Details may not add due to rounding.