# EDGAR Filing Document

**Accession Number:** 0000732712
**File Stem:** 0000732712-23-000007
**Filing Date:** 2023-1
**Character Count:** 101649
**Document Hash:** ced57cdba0e85aef58d4aa5ab54d4c46
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000732712-23-000007.hdr.sgml**: 20230124

**ACCESSION NUMBER**: 0000732712-23-000007

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 25

**CONFORMED PERIOD OF REPORT**: 20230124

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230124

**DATE AS OF CHANGE**: 20230124

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** VERIZON COMMUNICATIONS INC
- **CENTRAL INDEX KEY:** 0000732712
- **STANDARD INDUSTRIAL CLASSIFICATION:** TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813]
- **IRS NUMBER:** 232259884
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-08606
- **FILM NUMBER:** 23545849

**BUSINESS ADDRESS:**
- **STREET 1:** 1095 AVENUE OF THE AMERICAS
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10036
- **BUSINESS PHONE:** 212-395-1000

**MAIL ADDRESS:**
- **STREET 1:** 1095 AVENUE OF THE AMERICAS
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10036

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BELL ATLANTIC CORP
- **DATE OF NAME CHANGE:** 19920703

?xml version="1.0" ? vz-20230124

**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 24, 2023** 

(Date of earliest event reported)

 **______________________________________________________________________________**

**Verizon Communications Inc.** 

(Exact name of registrant as specified in its charter)

 **_______________________________________________________________________________** 

---

| | | | |
|:---|:---|:---|:---|
| **Delaware** | **Delaware** | **1-8606** | **23-2259884** |
| (State or other jurisdiction<br>of incorporation) | (State or other jurisdiction<br>of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
| **1095 Avenue of the Americas** | **1095 Avenue of the Americas** | | **10036** |
| **New York,** | **New York** | | |
| (Address of principal executive offices) | (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))

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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 | VZ 24B | New York Stock Exchange |
| 4.073% Notes due 2024 | VZ 24C | New York Stock Exchange |
| 0.875% Notes due 2025 | VZ 25 | New York Stock Exchange |
| 3.25% Notes due 2026 | VZ 26 | New York Stock Exchange |
| 1.375% Notes due 2026 | VZ 26B | New York Stock Exchange |
| 0.875% Notes due 2027 | VZ 27E | New York Stock Exchange |
| 1.375% Notes due 2028 | VZ 28 | New York Stock Exchange |
| 1.125% Notes due 2028 | VZ 28A | New York Stock Exchange |
| 2.350% Fixed Rate Notes due 2028 | VZ 28C | New York Stock Exchange |
| 1.875% Notes due 2029 | VZ 29B | New York Stock Exchange |
| 0.375% Notes due 2029 | VZ 29D | New York Stock Exchange |
| 1.250% Notes due 2030 | VZ 30 | New York Stock Exchange |
| 1.875% Notes due 2030 | VZ 30A | New York Stock Exchange |
| 4.250% Notes due 2030 | VZ 30D | New York Stock Exchange |
| 2.625% Notes due 2031 | VZ 31 | New York Stock Exchange |
| 2.500% Notes due 2031 | VZ 31A | New York Stock Exchange |
| 3.000% Fixed Rate Notes due 2031 | VZ 31D | New York Stock Exchange |
| 0.875% Notes due 2032 | VZ 32 | New York Stock Exchange |
| 0.750% Notes due 2032 | VZ 32A | New York Stock Exchange |
| 1.300% Notes due 2033 | VZ 33B | New York Stock Exchange |
| 4.75% Notes due 2034 | VZ 34 | New York Stock Exchange |
| 4.750% Notes due 2034 | VZ 34C | New York Stock Exchange |
| 3.125% Notes due 2035 | VZ 35 | New York Stock Exchange |
| 1.125% Notes due 2035 | VZ 35A | New York Stock Exchange |
| 3.375% Notes due 2036 | VZ 36A | New York Stock Exchange |
| 2.875% Notes due 2038 | VZ 38B | New York Stock Exchange |
| 1.875% Notes due 2038 | VZ 38C | New York Stock Exchange |
| 1.500% Notes due 2039 | VZ 39C | New York Stock Exchange |
| 3.50% Fixed Rate Notes due 2039 | VZ 39D | New York Stock Exchange |
| 1.850% Notes due 2040 | VZ 40 | New York Stock Exchange |
| 3.850% Fixed Rate Notes due 2041 | VZ 41C | New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

☐ 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. ☐

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**Item 2.02. Results of Operations and Financial Condition**

Attached as Exhibit 99.1 hereto are a press release and financial tables, dated January 24, 2023, issued by Verizon Communications Inc. (Verizon). Attached as Exhibit 99.2 hereto is commentary, dated January 24, 2023, discussing Verizon's financial and operating results for the fourth quarter and full year of 2022.

**Non-GAAP Measures**

Verizon's press release, financial tables and commentary attached to the report include financial information prepared in conformity with generally accepted accounting principles in the United States (GAAP) as well as non-GAAP financial 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.

**EBITDA and EBITDA Margin Related Non-GAAP Measures** 

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA), Segment EBITDA and Segment EBITDA Margin are non-GAAP financial measures that we believe are useful to management, investors and other users of our financial information as they are widely accepted financial measures used in evaluating the profitability of a company and its operating performance in relation to its competitors.

Consolidated EBITDA is calculated by adding back interest, taxes and depreciation and amortization expense to net income.

Segment EBITDA is calculated by adding back segment depreciation and amortization expense to segment operating income. Segment EBITDA Margin is calculated by dividing Segment EBITDA by total segment operating revenues.

**Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA Forecast**

Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA Forecast are non-GAAP financial measures that we believe provide relevant and useful information 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 management's evaluation of business performance. We believe that Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA Forecast are 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.

Consolidated Adjusted EBITDA is calculated by excluding from Consolidated EBITDA the effect of the following non-operational items: equity in losses and earnings of unconsolidated businesses and other income and expense, net, and the following special items: severance charges, loss on spectrum licenses and net gain from disposition of business. Severance charges recorded during 2022 and 2021 relate to involuntary and voluntary separations, respectively, under our existing plans. Loss on spectrum licenses relates to the sale of certain wireless licenses in 2021. Net gain from disposition of business relates to the sale of Verizon Media in 2021.

We have not provided a reconciliation for our Consolidated Adjusted EBITDA Forecast because we cannot, without unreasonable effort, predict the special items that could arise during 2023.

**Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio**

Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio are non-GAAP financial measures that we believe are useful to management, investors and other users of our financial information in evaluating Verizon's ability to service its unsecured debt from continuing operations.

Net Unsecured Debt is calculated by subtracting secured debt and cash and cash equivalents from the sum of debt maturing within one year and long-term debt. Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio is calculated by dividing Net Unsecured Debt by Consolidated Adjusted EBITDA. For purposes of Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio, Consolidated Adjusted EBITDA is calculated for the last twelve months.

------

**Adjusted Earnings per Common Share (Adjusted EPS) and Adjusted EPS Forecast**

Adjusted EPS and Adjusted EPS Forecast are non-GAAP financial measures that we believe are useful to management, investors and other users of our financial information in evaluating our operating results and understanding our operating trends without the effect of special items which could vary from period to period. We believe excluding special items provides more comparable assessment of our financial results from period to period.

Adjusted EPS is calculated by excluding from the calculation of reported EPS the effect of the following special items: amortization of acquisition-related intangible assets, severance, pension and benefits credits, early debt redemption costs, net gain from disposition of asset and business, and loss on spectrum licenses. Severance, pension and benefits credits relate to severance charges and actuarial gains/losses resulting from the re-measurements of pension and other postretirement benefits. Net gain from disposition of asset and business relates to the sale of an investment and the sale of Verizon Media in 2021. Loss on spectrum licenses relates to the sale of certain wireless licenses in 2021.

Actuarial gains or losses as a result of the re-measurements of pension and other postretirement benefits are included in other income and expense, net, and are measured based on projected discount rates and estimated returns on plan assets. Such estimates are updated at least annually at the end of the fiscal year to reflect actual discount rates and returns on plan assets or more frequently if significant events arise which require an interim re-measurement.

We exclude the amortization of acquisition-related intangible assets because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions we consummate. While we have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition's purchase price allocated to intangible assets and related amortization term are unique to each acquisition and can vary significantly from acquisition to acquisition. Exclusion of this amortization expense facilitates more consistent comparisons of operating results over time between our newly acquired and long-held businesses, and with both acquisitive and non-acquisitive peer companies. We believe that it is important for investors to understand that our non-GAAP financial measure adjusts for the intangible asset amortization but does not adjust the revenue that is generated in part from the use of such intangible assets.

We have not provided a reconciliation for our Adjusted EPS Forecast because we cannot, without unreasonable effort, predict the special items that could arise during 2023.

**Adjusted Effective Income Tax Rate Attributable to Verizon Forecast (Adjusted ETR Forecast)** 

Adjusted ETR Forecast is a non-GAAP financial measure that we believe is useful to management, investors and other users of our financial information in assessing our effective income tax rate without the effect of special items which could vary from period to period. Adjusted ETR Forecast is calculated by dividing the provision for income taxes by net income attributable to Verizon before tax after adjusting for the impact of special items.

We have not provided a reconciliation for our Adjusted ETR Forecast because we cannot, without unreasonable effort, predict the special items that could arise during 2023.

**Free Cash Flow**

Free cash flow is a non-GAAP financial measure that reflects an additional way of viewing our liquidity that, when viewed with our GAAP results, provides a more complete understanding of factors and trends affecting our cash flows. 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 acquisitions of businesses or wireless licenses. Therefore, we believe it is important to view free cash flow as a complement to our entire consolidated statements of cash flows.

Free cash flow is calculated by subtracting capital expenditures (including capitalized software) from net cash provided by operating activities.

See the accompanying schedules for reconciliations of non-GAAP financial measures to GAAP.

------

**Item 9.01. Financial Statements and Exhibits**

---

| | |
|:---|:---|
| (d) Exhibits. |  |
| **Exhibit<br>Number** | **Description** |
| <u>[99.1](a2022q4exhibit991.htm)</u> | Press release and financial tables, dated January 24, 2023, issued by Verizon Communications Inc. |
| <u>[99.2](a2022q4exhibit992.htm)</u> | Commentary discussing financial and operating results of Verizon Communications Inc. for the fourth quarter and full year of 2022 |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL). |

---

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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. |
| | | (Registrant) |
| Date: | January 24, 2023 | /s/ Anthony T. Skiadas |
| | | &nbsp;&nbsp;&nbsp;&nbsp; Anthony T. Skiadas |
| | | &nbsp;&nbsp;&nbsp;&nbsp; Senior Vice President and Controller |

---

## Exhibit 99.1

 **Exhibit 99.1**

![vzlogoa58.jpg](vzlogoa58.jpg)

**News Release**

---

| | |
|:---|:---|
| **FOR IMMEDIATE RELEASE** | **Media contacts:** |
| **January 24, 2023** | Kim Ancin |
| | 908-559-3227 |
| | kimberly.ancin@verizon.com |
| | Eric Wilkens |
| | 201-572-9317 |
| | eric.wilkens@verizon.com |

---

**Strong wireless service revenue growth** 

**highlights Verizon's 4Q and 2022 results** 

**Company enters 2023 with momentum** 

**in wireless mobility and wireless broadband** 

**2022 highlights**

**Consolidated:**

**•** Full-year 2022 earnings per share (EPS) of $5.06, compared with $5.32 in 2021; adjusted EPS<sup>1</sup>, excluding special items, of $5.18, compared with 2021 adjusted EPS<sup>1 2</sup> of $5.50.

• Total operating revenue of $136.8 billion in full-year 2022, up 2.4 percent year over year.

**4Q 2022 highlights**

**Consolidated:**

• $1.56 in EPS, compared with $1.11 in fourth-quarter 2021; adjusted EPS<sup>1</sup>, excluding special items, of $1.19, compared with $1.33 in fourth-quarter 2021<sup>2</sup>.

• Total operating revenue of $35.3 billion, an increase of 3.5 percent from fourth-quarter 2021.

• Net income of $6.7 billion, an increase of 41.4 percent from fourth-quarter 2021, and adjusted EBITDA<sup>1</sup> of $11.7 billion, down 0.2 percent year over year.

 **Total Wireless:** 

• Total wireless service revenue<sup>5</sup> of $18.8 billion, a 5.9 percent increase year over year.

• Postpaid phone net additions<sup>3</sup> of 217,000, and retail postpaid net additions<sup>3</sup> of 1,434,000, which was the best single quarter performance in seven years. Full-year 2022 retail postpaid net additions<sup>3</sup> were 2,605,000, an increase of 23.2 percent from full-year 2021. This success was driven by strong fixed wireless momentum, tablet and wearables adoption and sequential improvement in phone net additions.

• Total retail postpaid churn<sup>3</sup> of 1.14 percent, and retail postpaid phone churn<sup>3</sup> of 0.89 percent.

------

**Total Broadband:**

• Total broadband net additions of 416,000 was the best total broadband performance in over a decade, reflecting a strong demand for Fios and fixed wireless products. This result included 379,000 fixed wireless net additions, an increase of 37,000 fixed wireless net additions from third-quarter 2022. The company reported sequential quarterly net addition growth in fixed wireless throughout 2022. Full-year 2022 total broadband net additions were 1,290,000, an increase from 409,000 total broadband net additions in full-year 2021.

• 59,000 Fios Internet net additions.

**NEW YORK -** Verizon Communications Inc. (NYSE, Nasdaq: VZ) closed 2022 with fourth-quarter results marked by wireless service revenue growth and the highest total wireless retail postpaid net additions<sup>3</sup> in seven years.

"We delivered on the operational expectations and financial targets that we set in the second half of 2022," said Verizon Chairman and CEO Hans Vestberg. "We are rapidly building out our C-Band spectrum with the most aggressive network deployment in our company's history and are well positioned to improve and accelerate our performance. Wireless mobility and nationwide broadband will be two of the most significant contributors to our growth for the next several years."

For fourth-quarter 2022, Verizon reported EPS of $1.56, compared with $1.11 in fourth-quarter 2021. On an adjusted basis<sup>1</sup>, excluding special items, EPS was $1.19 in fourth-quarter 2022, compared with adjusted EPS<sup>1</sup> of $1.33 in fourth-quarter 2021<sup>2</sup>.

Fourth-quarter 2022 earnings included a pre-tax net gain from special items of approximately $2.1 billion. This included a net pre-tax benefit of approximately $2.5 billion related to a mark-to-market adjustment for pension and OPEB (other post-employment benefits) liabilities, a $304 million charge related to severance and the impacts of amortization of intangible assets related to TracFone and other acquisitions of $115 million.

For full-year 2022, Verizon reported $5.06 in EPS, compared with $5.32 for full-year 2021. On an adjusted basis<sup>1</sup>, excluding special items, 2022 EPS was $5.18, compared with $5.50 for 2021<sup>2</sup>.

**Consolidated results**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total consolidated operating revenue in fourth-quarter 2022 of $35.3 billion, up 3.5 percent from fourth-quarter 2021. Revenue growth was driven by service and other revenue and equipment revenue. Full-year 2022 consolidated operating revenue was $136.8 billion, up 2.4 percent year over year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total wireless service revenue<sup>5</sup> in fourth-quarter 2022 increased 5.9 percent year over year. This increase was driven by unlimited plan migrations, the company's highest total wireless retail postpaid net additions in seven years, pricing actions that were implemented beginning in June

&nbsp;&nbsp;&nbsp;&nbsp;VlpHU09DSUQyMDE5UTE=

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2022 and a full quarter contribution from TracFone. Full-year 2022 wireless service revenue<sup>5</sup> increased 8.6 percent year over year. The results for both fourth-quarter 2021 and full-year 2021 included a partial contribution from the acquisition of TracFone, which was completed in November 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income of $6.7 billion, an increase of 41.4 percent compared to fourth-quarter 2021, and adjusted EBITDA<sup>1</sup> of $11.7 billion, a decline of 0.2 percent year over year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash flow from operations totaled $37.1 billion in 2022, a decrease from $39.5 billion in 2021. This decline was primarily driven by higher device payment receivables as the company's device payment portfolio increased by approximately $5 billion during 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Full-year 2022 capital expenditures were $23.1 billion, including C-Band spending of $6.2 billion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The company ended 2022 with free cash flow<sup>1</sup> of $14.1 billion, a decrease from $19.3 billion at year-end 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Verizon's unsecured debt as of the end of fourth-quarter 2022 decreased by $766 million sequentially to $130.6 billion. The company's net unsecured debt<sup>1</sup> balance decreased sequentially by $1.3 billion to $128.0 billion, and its net unsecured debt to adjusted EBITDA ratio<sup>1</sup> at quarter-end was approximately 2.7 times.

**Verizon Consumer results**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total Verizon Consumer revenue was $26.8 billion, an increase of 4.2 percent year over year, driven by wireless service revenue. For full-year 2022, total Verizon Consumer revenue was $103.5 billion, an increase of 8.6 percent from full-year 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Wireless service revenue increased 6.1 percent year over year. For full-year 2022, total Consumer wireless service revenue was $61.5 billion, an increase of 9.6 percent from full-year 2021. This increase was driven by premium adoption, overall postpaid connection growth, pricing actions that were implemented beginning in June 2022 and the inclusion of TracFone results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Consumer wireless retail postpaid churn<sup>3</sup> was 1.06 percent in fourth-quarter 2022, and wireless retail postpaid phone churn<sup>3</sup> was 0.86 percent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In fourth-quarter 2022, Consumer reported 41,000 wireless retail postpaid phone net additions<sup>3</sup>. Consumer ended fourth-quarter 2022 with 59 percent of its postpaid wireless phone customers having 5G-capable devices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Consumer reported 175,000 wireless retail prepaid net losses<sup>3</sup> in fourth-quarter 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Consumer reported 262,000 fixed wireless net additions and 56,000 Fios Internet net additions in fourth-quarter 2022. For full-year 2022, Consumer reported 776,000 fixed wireless net additions and 199,000 Fios Internet net additions. Consumer Fios revenue was $2.9 billion in fourth-quarter 2022, flat year over year. Full-year 2022 Consumer Fios revenue was $11.6 billion, an increase of 0.6 percent from full-year 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In fourth-quarter 2022, Consumer operating income was $7.0 billion, a decrease of 4.4 percent year over year, and segment operating income margin was 26.3 percent, a decrease from 28.6 percent in fourth-quarter 2021. Full-year 2022 Consumer operating income was $28.8 billion and segment operating income margin was 27.9 percent, a decrease from 31.4 percent in full-year 2021. Segment EBITDA<sup>1</sup> in fourth-quarter 2022 was $10.1 billion, a decrease of 2.0 percent year over year. This decline was due to higher promotional expense related to device subsidies. Segment EBITDA margin<sup>1</sup> was 37.9 percent, a decrease from 40.3 percent in fourth-quarter 2021.

&nbsp;&nbsp;&nbsp;&nbsp;VlpHU09DSUQyMDE5UTE=

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For the full year, segment EBITDA margin<sup>1</sup> was 40.2 percent in 2022, a decrease from 43.7 percent in 2021.

**Verizon Business results**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total Verizon Business revenue was $7.9 billion in fourth-quarter 2022, an increase of 1.2 percent year over year. Growth was primarily driven by Small and Medium Business mobility, partially offset by wireline declines. For full-year 2022, total Verizon Business revenue was $31.1 billion, flat year over year, as strong wireless performance was offset by wireline declines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Business wireless service revenue was $3.3 billion, an increase of 4.7 percent year over year. This growth was driven predominantly by the continued momentum in adding more customers onto the platform. Full-year 2022 Business wireless service revenue was $12.8 billion, an increase of 3.9 percent compared to full-year 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Business reported 455,000 wireless retail postpaid net additions<sup>3</sup> in fourth-quarter 2022, including 176,000 postpaid phone net additions<sup>3</sup>. This was the sixth consecutive quarter that Business reported more than 150,000 postpaid phone net additions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Business wireless retail postpaid churn<sup>3</sup> was 1.38 percent in fourth-quarter 2022, and wireless retail postpaid phone churn<sup>3</sup> was 1.06 percent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Business reported 117,000 fixed wireless net additions in fourth-quarter 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In fourth-quarter 2022, Verizon Business operating income was $585 million, a decrease of 26.5 percent year over year, and segment operating income margin was 7.4 percent, a decrease from 10.2 percent in fourth-quarter 2021. Full-year 2022 segment operating income was $2.6 billion and segment operating income margin was 8.5 percent, compared with 11.1 percent in full-year 2021. Segment EBITDA<sup>1</sup> was $1.7 billion in fourth-quarter 2022, a decrease of 8.2 percent year over year, which reflected higher subsidies due to increased activations and sales-related expense, as well as declines in high margin wireline revenues. Segment EBITDA margin<sup>1</sup> was 21.3 percent in fourth-quarter 2022, a decrease from 23.5 percent in fourth-quarter 2021. For the full year, segment EBITDA margin<sup>1</sup> was 22.3 percent, a decrease from 24.2 percent in 2021.

**Outlook and guidance**

For 2023, Verizon expects the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total wireless service revenue growth<sup>4 5</sup> of 2.5 percent to 4.5 percent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA<sup>1</sup> of $47.0 billion to $48.5 billion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EPS<sup>1</sup> of $4.55 to $4.85.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted effective income tax rate<sup>1</sup> in the range of 22.5 percent to 24.0 percent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Capital spending in the range of $18.25 billion to $19.25 billion, including the final approximately $1.75 billion of the incremental $10 billion of C-Band-related capital spending.

<sup>1</sup>*Non-GAAP financial measure. See the accompanying schedules and www.verizon.com/about/investors for reconciliations of non-GAAP financial measures cited in this document to most directly comparable financial measures under generally accepted accounting principles (GAAP).*

<sup>2</sup>*Adjusted EPS for the prior year period has been reclassified to conform to current period presentation.*

&nbsp;&nbsp;&nbsp;&nbsp;VlpHU09DSUQyMDE5UTE=

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<sup>3</sup>*At the end of the fourth quarter of 2022, Verizon fully decommissioned its 3G network, as a result of which approximately 909,000 wireless retail postpaid connections (576,000 Consumer and 333,000 Business connections), including 392,000 wireless retail postpaid phone connections (180,000 Consumer and 212,000 Business connections), and 237,000 wireless retail prepaid connections were disconnected from its network. The impact of the 3G network shutdown has been excluded for purposes of calculating wireless retail net additions and wireless churn for the respective periods.*

<sup>4</sup>*Includes a benefit of approximately 190 basis points from the reallocation from Other revenue to Wireless service revenue. This results from a larger allocation of administrative and telco recovery charges which partly recover network operating costs.*

<sup>5</sup>*Total wireless service revenue represents the sum of Consumer and Business segments.*

Verizon Communications Inc. (NYSE, Nasdaq: VZ) was formed on June 30, 2000 and is one of the world's leading providers of technology and communications services. Headquartered in New York City and with a presence around the world, Verizon generated revenues of $136.8 billion in 2022. The company offers data, video and voice services and solutions on its award-winning networks and platforms, delivering on customers' demand for mobility, reliable network connectivity, security and control.

####

VERIZON'S ONLINE MEDIA CENTER: News releases, stories, media contacts and other resources are available at verizon.com/news. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.

**Forward-looking statements**

In this communication 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," "forecasts," "hopes," "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 in our filings with the Securities and Exchange Commission (the "SEC"), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of competition in the markets in which we operate, including any inability to successfully respond to competitive factors such as prices, promotional incentives and evolving consumer preferences; failure to take advantage of, or respond to competitors' use 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; 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, acts of war, terrorist attacks or other hostile acts and any resulting financial or reputational impact; the impact of public health crises 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, public health crises or the potential impacts of global climate change; material adverse changes in labor matters and any resulting financial or operational impact; 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; 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.

&nbsp;&nbsp;&nbsp;&nbsp;VlpHU09DSUQyMDE5UTE=

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**Verizon Communications Inc.**

Condensed Consolidated Statements of Income

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) |
| Unaudited | **3 Mos. Ended 12/31/22** | **3 Mos. Ended 12/31/21** | **%<br>Change** | **12 Mos. Ended 12/31/22** | **12 Mos. Ended 12/31/21** | **%<br>Change** |
| **Operating Revenues** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Service revenues and other | $27626 | $26740 | 3.3 | $109625 | $110449 | (0.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireless equipment revenues | 7625 | 7327 | 4.1 | 27210 | 23164 | 17.5 |
| **Total Operating Revenues** | 35251 | 34067 | 3.5 | 136835 | 133613 | 2.4 |
| **Operating Expenses** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of services | 7185 | 7035 | 2.1 | 28637 | 31234 | (8.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of wireless equipment | 8577 | 7961 | 7.7 | 30496 | 25067 | 21.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative expense | 8046 | 7412 | 8.6 | 30136 | 28658 | 5.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 4218 | 4051 | 4.1 | 17099 | 16206 | 5.5 |
| **Total Operating Expenses** | 28026 | 26459 | 5.9 | 106368 | 101165 | 5.1 |
| **Operating Income** | 7225 | 7608 | (5.0) | 30467 | 32448 | (6.1) |
| Equity in earnings of unconsolidated businesses | 4 | 135 | (97.0) | 44 | 145 | (69.7) |
| Other income (expense), net | 2687 | (860) | \* | 1373 | 312 | \* |
| Interest expense | (1105) | (739) | 49.5 | (3613) | (3485) | 3.7 |
| **Income Before Provision For Income Taxes** | 8811 | 6144 | 43.4 | 28271 | 29420 | (3.9) |
| Provision for income taxes | (2113) | (1407) | 50.2 | (6523) | (6802) | (4.1) |
| **Net Income** | $6698 | $4737 | 41.4 | $21748 | $22618 | (3.8) |
| Net income attributable to noncontrolling interests | $121 | $124 | (2.4) | $492 | $553 | (11.0) |
| Net income attributable to Verizon | 6577 | 4613 | 42.6 | 21256 | 22065 | (3.7) |
| **Net Income** | $6698 | $4737 | 41.4 | $21748 | $22618 | (3.8) |
| **Basic Earnings Per Common Share** |  |  |  |  |  |  |
| Net income attributable to Verizon | $1.56 | $1.11 | 40.5 | $5.06 | $5.32 | (4.9) |
| *Weighted-average shares outstanding (in millions)* | *4204* | *4167* |  | *4202* | *4148* |  |
| **Diluted Earnings Per Common Share** <sup>(1)</sup> |  |  |  |  |  |  |
| Net income attributable to Verizon | $1.56 | $1.11 | 40.5 | $5.06 | $5.32 | (4.9) |
| *Weighted-average shares outstanding (in millions)* | *4207* | *4169* |  | *4204* | *4150* |  |

---

**Footnotes:** 

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

\*Not meaningful

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**Verizon Communications Inc.**

Condensed Consolidated Balance Sheets

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| | | | |
|:---|:---|:---|:---|
| (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) |
| Unaudited | **12/31/22** | **12/31/21** | **$ Change** |
| **Assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $2605 | $2921 | $(316) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 25332 | 24742 | 590 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less Allowance for credit losses | 826 | 896 | (70) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 24506 | 23846 | 660 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 2388 | 3055 | (667) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other | 8358 | 6906 | 1452 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 37857 | 36728 | 1129 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment | 307689 | 289897 | 17792 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less Accumulated depreciation | 200255 | 190201 | 10054 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment, net | 107434 | 99696 | 7738 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments in unconsolidated businesses | 1071 | 1061 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireless licenses | 149796 | 147619 | 2177 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 28671 | 28603 | 68 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other intangible assets, net | 11461 | 11677 | (216) |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 26130 | 27883 | (1753) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | 17260 | 13329 | 3931 |
| **Total assets** | $379680 | $366596 | $13084 |
| **Liabilities and Equity** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt maturing within one year | $9963 | $7443 | $2520 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 23977 | 24833 | (856) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current operating lease liabilities | 4134 | 3859 | 275 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 12097 | 11025 | 1072 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 50171 | 47160 | 3011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt | 140676 | 143425 | (2749) |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee benefit obligations | 12974 | 15410 | (2436) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 43441 | 40685 | 2756 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-current operating lease liabilities | 21558 | 23203 | (1645) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 18397 | 13513 | 4884 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total long-term liabilities | 237046 | 236236 | 810 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock | 429 | 429 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid in capital | 13420 | 13861 | (441) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 82380 | 71993 | 10387 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (1865) | (927) | (938) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock in treasury, at cost | (4013) | (4104) | 91 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred compensation – employee stock ownership plans and other | 793 | 538 | 255 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noncontrolling interests | 1319 | 1410 | (91) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total equity | 92463 | 83200 | 9263 |
| **Total liabilities and equity** | $379680 | $366596 | $13084 |

---

------

**Verizon Communications Inc.**

Consolidated - Selected Financial and Operating Statistics

---

| | | |
|:---|:---|:---|
| (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) |
| Unaudited | **12/31/22** | **12/31/21** |
| Total debt | $150639 | $150868 |
| Net unsecured debt<sup>(1)</sup> | $128026 | $133745 |
| Net unsecured debt / Consolidated Adjusted EBITDA<sup>(1)(2)</sup> | 2.7x | 2.8x |
| Common shares outstanding end of period (in millions) | 4200 | 4198 |
| Total employees ('000) | 117.1 | 118.4 |
| Quarterly cash dividends declared per common share | $0.6525 | $0.6400 |

---

**Footnotes:** 

(1)Non-GAAP financial measure.

(2)Consolidated Adjusted EBITDA excludes the effects of non-operational items and special items.

------

**Verizon Communications Inc.**

Condensed Consolidated Statements of Cash Flows

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| | | | |
|:---|:---|:---|:---|
| (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) |
| Unaudited | **12 Mos. Ended 12/31/22** | **12 Mos. Ended 12/31/21** | **$ Change** |
| **Cash Flows from Operating Activities** |  |  |  |
| Net Income | $21748 | $22618 | $(870) |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 17099 | 16206 | 893 |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee retirement benefits | (2046) | (3391) | 1345 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 2973 | 4264 | (1291) |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for expected credit losses | 1611 | 789 | 822 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity in losses (earnings) of unconsolidated businesses, net of dividends received | (10) | 36 | (46) |
| Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses | (456) | (890) | 434 |
| Other, net | (3778) | (93) | (3685) |
| Net cash provided by operating activities | 37141 | 39539 | (2398) |
| **Cash Flows from Investing Activities** |  |  |  |
| Capital expenditures (including capitalized software) | (23087) | (20286) | (2801) |
| Cash received (paid) related to acquisitions of businesses, net of cash acquired | 248 | (4065) | 4313 |
| Acquisitions of wireless licenses | (3653) | (47596) | 43943 |
| Collateral payments related to derivative contracts, net of repayments | (2265) | (21) | (2244) |
| Proceeds from disposition of business | 33 | 4122 | (4089) |
| Other, net | 62 | 693 | (631) |
| Net cash used in investing activities | (28662) | (67153) | 38491 |
| **Cash Flows from Financing Activities** |  |  |  |
| Proceeds from long-term borrowings | 7074 | 33034 | (25960) |
| Proceeds from asset-backed long-term borrowings | 10732 | 8383 | 2349 |
| Net proceeds from short-term commercial paper | 106 |  | 106 |
| Repayments of long-term borrowings and finance lease obligations | (8616) | (14063) | 5447 |
| Repayments of asset-backed long-term borrowings | (4948) | (4800) | (148) |
| Dividends paid | (10805) | (10445) | (360) |
| Other, net | (2072) | (3832) | 1760 |
| Net cash provided by (used in) financing activities | (8529) | 8277 | (16806) |
| **Decrease in cash, cash equivalents and restricted cash** | (50) | (19337) | 19287 |
| **Cash, cash equivalents and restricted cash, beginning of period** | 4161 | 23498 | (19337) |
| **Cash, cash equivalents and restricted cash, end of period** | $4111 | $4161 | $(50) |

---

**Footnotes:**

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

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**Verizon Communications Inc.**

Consumer - Selected Financial Results

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) |
| Unaudited | **3 Mos. Ended 12/31/22** | **3 Mos. Ended 12/31/21** | **%<br>Change** | **12 Mos. Ended 12/31/22** | **12 Mos. Ended 12/31/21** | **%<br>Change** |
| **Operating Revenues** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Service | $18443 | $17564 | 5.0 | $73139 | $67733 | 8.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireless equipment | 6528 | 6320 | 3.3 | 23168 | 19781 | 17.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 1799 | 1813 | (0.8) | 7199 | 7786 | (7.5) |
| **Total Operating Revenues** | 26770 | 25697 | 4.2 | 103506 | 95300 | 8.6 |
| **Operating Expenses** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of services | 4450 | 4251 | 4.7 | 17746 | 16581 | 7.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of wireless equipment | 7137 | 6666 | 7.1 | 25134 | 20523 | 22.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative expense | 5044 | 4431 | 13.8 | 19064 | 16562 | 15.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 3111 | 3000 | 3.7 | 12716 | 11679 | 8.9 |
| **Total Operating Expenses** | 19742 | 18348 | 7.6 | 74660 | 65345 | 14.3 |
| **Operating Income** | $7028 | $7349 | (4.4) | $28846 | $29955 | (3.7) |
| **Operating Income Margin** | 26.3% | 28.6% |  | 27.9% | 31.4% |  |
| **Segment EBITDA**<sup>(1)</sup> | $10139 | $10349 | (2.0) | $41562 | $41634 | (0.2) |
| **Segment EBITDA Margin**<sup>(1)</sup> | 37.9% | 40.3% |  | 40.2% | 43.7% |  |

---

**Footnotes:** 

(1) Non-GAAP financial measure.

The segment financial results and metrics above exclude the effects of special items (other than the effects of acquisition-related intangible asset amortization), which the Company's chief operating decision maker does not consider in assessing segment performance.

Certain intersegment transactions with corporate entities have not been eliminated.

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**Verizon Communications Inc.**

Consumer - Selected Operating Statistics

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Unaudited |  |  |  | **12/31/22** | **12/31/21** | **% Change** |
| **Connections ('000):** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireless retail postpaid <sup>(1)</sup> |  |  |  | 91856 | 91543 | 0.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireless retail prepaid <sup>(1) (2)</sup> |  |  |  | 22664 | 23852 | (5.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total wireless retail |  |  |  | 114520 | 115395 | (0.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wireless retail postpaid phones <sup>(1)</sup> |  |  |  | 74857 | 75712 | (1.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fios video |  |  |  | 3234 | 3573 | (9.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fios internet |  |  |  | 6740 | 6541 | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed wireless access (FWA) broadband |  |  |  | 884 | 101 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wireline broadband |  |  |  | 7016 | 6888 | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total broadband |  |  |  | 7900 | 6989 | 13.0 |
| Unaudited | **3 Mos. Ended 12/31/22** | **3 Mos. Ended 12/31/21** | **%<br>Change** | **12 Mos. Ended 12/31/22** | **12 Mos. Ended 12/31/21** | **%<br>Change** |
| **Gross Additions ('000):** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireless retail postpaid <sup>(3)</sup> | 3889 | 3234 | 20.3 | 12037 | 10834 | 11.1 |
| **Net Additions Detail ('000)**: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireless retail postpaid <sup>(1) (3)</sup> | 979 | 667 | 46.8 | 965 | 1114 | (13.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireless retail prepaid <sup>(1) (2) (3)</sup> | (175) | (85) | \* | (445) | (52) | \* |
| &nbsp;&nbsp;&nbsp;Total wireless retail <sup>(3)</sup> | 804 | 582 | 38.1 | 520 | 1062 | (51.0) |
| &nbsp;&nbsp;&nbsp;Wireless retail postpaid phones <sup>(1) (3)</sup> | 41 | 336 | (87.8) | (655) | 575 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fios video | (80) | (69) | (15.9) | (339) | (281) | (20.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fios internet | 56 | 51 | 9.8 | 199 | 339 | (41.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;FWA broadband <sup>(3)</sup> | 262 | 38 | \* | 776 | 87 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wireline broadband | 40 | 30 | 33.3 | 128 | 241 | (46.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total broadband | 302 | 68 | \* | 904 | 328 | \* |
| **Churn Rate:** <sup>(1)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wireless retail postpaid | 1.06% | 0.94% |  | 1.01% | 0.89% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wireless retail postpaid phones | 0.86% | 0.77% |  | 0.81% | 0.71% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireless retail prepaid <sup>(2) (3)</sup> | 4.90% | 4.73% |  | 4.09% | 4.44% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wireless retail | 1.83% | 1.34% |  | 1.63% | 1.10% |  |
| **Revenue Statistics (in millions):** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wireless service revenue | $15539 | $14643 | 6.1 | $61509 | $56103 | 9.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fios revenues | $2914 | $2910 | 0.1 | $11622 | $11558 | 0.6 |

---

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**Verizon Communications Inc.**

Consumer - Selected Operating Statistics (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Unaudited | **3 Mos. Ended 12/31/22** | **3 Mos. Ended 12/31/21** | **%<br>Change** | **12 Mos. Ended 12/31/22** | **12 Mos. Ended 12/31/21** | **%<br>Change** |
| **Other Wireless Statistics:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireless retail postpaid ARPA <sup>(4)</sup> | $128.02 | $124.06 | 3.2 | $125.97 | $122.30 | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireless retail postpaid upgrade rate | 5.6% | 6.3% |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireless retail postpaid accounts ('000) <sup>(5)</sup> |  |  |  | 33183 | 33651 | (1.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireless retail postpaid connections per account <sup>(5)</sup> |  |  |  | 2.77 | 2.72 | 1.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireless retail prepaid ARPU <sup>(2) (6)</sup> | $31.53 | $37.83 | (16.7) | $31.21 | $36.70 | (15.0) |

---

**Footnotes:** 

(1) The number of wireless retail connections as of December 31, 2022 reflects a decline in our customer base related to the shutdown of our 3G network in the fourth quarter of 2022 of approximately 576,000 wireless retail postpaid connections, including 180,000 wireless retail postpaid phone connections, and 237,000 wireless retail prepaid connections. In addition, the shutdown of our competitors' 3G network in the second and third quarter of 2022 resulted in a reduction to our customer base of 402,000 wireless retail prepaid connections and 102,000 wireless retail prepaid connections as of June 30, 2022 and September 30, 2022, respectively. The impact of the 3G network shutdowns has been excluded for purposes of calculating wireless retail net additions and wireless churn for the respective periods.

(2) Acquisition of TracFone Wireless, Inc. was completed on November 23, 2021.

(3) Includes certain adjustments.

(4) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.

(5) Statistics presented as of end of period.

(6) Wireless retail prepaid ARPU - average service revenue per unit from retail prepaid connections.

Certain intersegment transactions with corporate entities have not been eliminated.

\* Not meaningful

------

**Verizon Communications Inc.**

Business - Selected Financial Results

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) |
| Unaudited | **3 Mos. Ended 12/31/22** | **3 Mos. Ended 12/31/21** | **%<br>Change** | **12 Mos. Ended 12/31/22** | **12 Mos. Ended 12/31/21** | **%<br>Change** |
| **Operating Revenues** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Small and Medium Business | $3284 | $3112 | 5.5 | $12613 | $11774 | 7.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Global Enterprise | 2423 | 2530 | (4.2) | 9734 | 10224 | (4.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Public Sector and Other | 1531 | 1517 | 0.9 | 6118 | 6324 | (3.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Wholesale | 662 | 651 | 1.7 | 2607 | 2720 | (4.2) |
| **Total Operating Revenues** | 7900 | 7810 | 1.2 | 31072 | 31042 | 0.1 |
| **Operating Expenses** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of services | 2665 | 2587 | 3.0 | 10483 | 10653 | (1.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of wireless equipment | 1440 | 1296 | 11.1 | 5362 | 4544 | 18.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative expense | 2112 | 2093 | 0.9 | 8284 | 8324 | (0.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 1098 | 1038 | 5.8 | 4312 | 4084 | 5.6 |
| **Total Operating Expenses** | 7315 | 7014 | 4.3 | 28441 | 27605 | 3.0 |
| **Operating Income** | $585 | $796 | (26.5) | $2631 | $3437 | (23.5) |
| **Operating Income Margin** | 7.4% | 10.2% |  | 8.5% | 11.1% |  |
| **Segment EBITDA**<sup>(1)</sup> | $1683 | $1834 | (8.2) | $6943 | $7521 | (7.7) |
| **Segment EBITDA Margin**<sup>(1)</sup> | 21.3% | 23.5% |  | 22.3% | 24.2% |  |

---

**Footnotes:** 

(1) Non-GAAP financial measure.

The segment financial results and metrics above exclude the effects of special items (other than the effects of acquisition-related intangible asset amortization), which the Company's chief operating decision maker does not consider in assessing segment performance.

Certain intersegment transactions with corporate entities have not been eliminated.

------

**Verizon Communications Inc.**

Business - Selected Operating Statistics

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Unaudited |  |  |  | **12/31/22** | **12/31/21** | **%<br>Change** |
| **Connections ('000):** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireless retail postpaid <sup>(1)</sup> |  |  |  | 28733 | 27411 | 4.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireless retail postpaid phones <sup>(1)</sup> |  |  |  | 17782 | 17103 | 4.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fios video |  |  |  | 67 | 71 | (5.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fios internet |  |  |  | 373 | 356 | 4.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FWA broadband |  |  |  | 568 | 122 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wireline broadband |  |  |  | 468 | 477 | (1.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total broadband |  |  |  | 1036 | 599 | 73.0 |
| Unaudited | **3 Mos. Ended 12/31/22** | **3 Mos. Ended 12/31/21** | **%<br>Change** | **12 Mos. Ended 12/31/22** | **12 Mos. Ended 12/31/21** | **%<br>Change** |
| **Gross Additions ('000):** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Wireless retail postpaid <sup>(2)</sup> | 1644 | 1417 | 16.0 | 6294 | 5092 | 23.6 |
| **Net Additions Detail ('000):** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireless retail postpaid <sup>(1) (2)</sup> | 455 | 391 | 16.4 | 1640 | 1001 | 63.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireless retail postpaid phones <sup>(1) (2)</sup> | 176 | 222 | (20.7) | 856 | 509 | 68.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fios video | (2) | (1) | \* | (4) | (2) | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fios internet | 3 | 4 | (25.0) | 17 | 21 | (19.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;FWA broadband <sup>(2)</sup> | 117 | 40 | \* | 395 | 86 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireline broadband <sup>(2)</sup> | (3) | (2) | (50.0) | (9) | (5) | (80.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total broadband | 114 | 38 | \* | 386 | 81 | \* |
| **Churn Rate:** <sup>(1)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireless retail postpaid | 1.38% | 1.26% |  | 1.38% | 1.27% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireless retail postpaid phones | 1.06% | 1.01% |  | 1.07% | 1.03% |  |
| **Revenue Statistics (in millions):** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireless service revenue | $3265 | $3119 | 4.7 | $12845 | $12366 | 3.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fios revenues | $304 | $292 | 4.1 | $1201 | $1136 | 5.7 |
| **Other Operating Statistics:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Wireless retail postpaid upgrade rate | 3.6% | 3.4% |  |  |  |  |

---

**Footnotes:**

(1) The number of wireless retail connections as of December 31, 2022 reflects a decline in our customer base related to the shutdown of our 3G network in the fourth quarter of 2022 of approximately 333,000 wireless retail postpaid connections, including 212,000 wireless retail postpaid phone connections. The impact of the 3G network shutdown has been excluded for purposes of calculating wireless retail net additions and wireless churn for the respective periods.

(2) Includes certain adjustments.

Certain intersegment transactions with corporate entities have not been eliminated.

\*Not meaningful

------

**Verizon Communications Inc.**

Supplemental Information - Total Wireless Operating and Financial Statistics

The following supplemental schedule contains certain financial and operating metrics which reflect an aggregation of our Consumer and Business segments' wireless results.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Unaudited | Unaudited | Unaudited | Unaudited | **12/31/22** | **12/31/21** | **% Change** |
| **Connections ('000)** <sup>(1)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retail postpaid |  |  |  | 120589 | 118954 | 1.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retail prepaid <sup>(2)</sup> |  |  |  | 22664 | 23852 | (5.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total retail |  |  |  | 143253 | 142806 | 0.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retail postpaid phones |  |  |  | 92639 | 92815 | (0.2) |
| Unaudited | **3 Mos. Ended 12/31/22** | **3 Mos. Ended 12/31/21** | **%<br>Change** | **12 Mos. Ended 12/31/22** | **12 Mos. Ended 12/31/21** | **%<br>Change** |
| **Net Additions Detail ('000)** <sup>(1) (3)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retail postpaid phones | 217 | 558 | (61.1) | 201 | 1084 | (81.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retail postpaid | 1434 | 1058 | 35.5 | 2605 | 2115 | 23.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail prepaid <sup>(2)</sup> | (175) | (85) | \* | (445) | (52) | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;Total retail | 1259 | 973 | 29.4 | 2160 | 2063 | 4.7 |
| **Account Statistics** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail postpaid accounts ('000) <sup>(4)</sup> |  |  |  | 35002 | 35332 | (0.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail postpaid connections per account <sup>(4)</sup> |  |  |  | 3.45 | 3.37 | 2.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail postpaid ARPA <sup>(5)</sup> | $149.95 | $144.88 | 3.5 | $147.53 | $143.18 | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail prepaid ARPU <sup>(2) (6)</sup> | 31.53 | 37.83 | (16.7) | $31.21 | $36.70 | (15.0) |
| **Churn Detail** <sup>(1)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retail postpaid phone | 0.89% | 0.81% |  | 0.86% | 0.77% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retail postpaid | 1.14% | 1.01% |  | 1.10% | 0.98% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail prepaid <sup>(2) (3)</sup> | 4.90% | 4.73% |  | 4.09% | 4.44% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retail | 1.74% | 1.32% |  | 1.58% | 1.14% |  |
| **Retail Postpaid Connection Statistics** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Upgrade rate | 5.1% | 5.7% |  |  |  |  |
| **Revenue Statistics (in millions)** <sup>(7)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wireless service | $18804 | $17762 | 5.9 | $74354 | $68469 | 8.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wireless equipment | 7625 | 7327 | 4.1 | 27210 | 23164 | 17.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wireless other | 1851 | 1840 | 0.6 | 7391 | 7855 | (5.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Wireless | $28280 | $26929 | 5.0 | $108955 | $99488 | 9.5 |

---

**Footnotes:** 

(1) The number of wireless retail connections as of December 31, 2022 reflects a decline in our customer base related to the shutdown of our 3G network in the fourth quarter of 2022 of approximately 909,000 wireless retail postpaid connections (576,000 Consumer and 333,000 Business connections), including 392,000 wireless retail postpaid phone connections (180,000 Consumer and 212,000 Business connections), and 237,000 wireless retail prepaid connections. In addition, the shutdown of our competitors' 3G network in the second and third quarter of 2022 resulted in a reduction to our customer base of 402,000 wireless retail prepaid connections and 102,000 wireless retail prepaid connections as of June 30, 2022 and September 30, 2022, respectively. The impact of the 3G network shutdowns has been excluded for purposes of calculating wireless retail net additions and wireless churn for the respective periods.

(2) Acquisition of TracFone Wireless, Inc. was completed on November 23, 2021.

(3) Includes certain adjustments.

(4) Statistics presented as of end of period.

(5) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.

(6) Wireless retail prepaid ARPU - average service revenue per unit from retail prepaid connections.

(7) Intersegment transactions between Consumer or Business segment with corporate entities have not been eliminated.

\*Not meaningful

------

**Verizon Communications Inc.**

Non-GAAP Reconciliations - Consolidated Verizon

**Consolidated EBITDA and Consolidated Adjusted EBITDA**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) |
| Unaudited | **3 Mos. Ended 12/31/22** | **3 Mos. Ended 9/30/22** | **3 Mos. Ended 6/30/22** | **3 Mos. Ended 3/31/22** | **3 Mos. Ended 12/31/21** | **3 Mos. Ended 9/30/21** | **3 Mos. Ended 6/30/21** | **3 Mos. Ended 3/31/21** |
| **Consolidated Net Income** | $6698 | $5024 | $5315 | $4711 | $4737 | $6554 | $5949 | $5378 |
| &nbsp;&nbsp;&nbsp;&nbsp;Add: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes | 2113 | 1496 | 1542 | 1372 | 1407 | 1820 | 1875 | 1700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 1105 | 937 | 785 | 786 | 739 | 801 | 844 | 1101 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense <sup>(1)</sup> | 4218 | 4324 | 4321 | 4236 | 4051 | 3961 | 4020 | 4174 |
| **Consolidated EBITDA** | $14134 | $11781 | $11963 | $11105 | $10934 | $13136 | $12688 | $12353 |
| &nbsp;&nbsp;&nbsp;&nbsp;Add/(subtract): |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other (income) expense, net <sup>(2)</sup> | $(2687) | $439 | $(49) | $924 | $860 | $(269) | $(502) | $(401) |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity in losses (earnings) of unconsolidated businesses <sup>(3)</sup> | (4) | (2) | (41) | 3 | (135) | (1) | (1) | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Severance charges | 304 |  |  |  | 106 | 103 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on spectrum licenses |  |  |  |  |  |  |  | 223 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain from disposition of business |  |  |  |  |  | (706) |  |  |
|  | (2387) | 437 | (90) | 927 | 831 | (873) | (503) | (186) |
| **Consolidated Adjusted EBITDA** | $11747 | $12218 | $11873 | $12032 | $11765 | $12263 | $12185 | $12167 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated Adjusted EBITDA - Year Over Year Change | (0.2)% |  |  |  |  |  |  |  |

---

**Footnotes:**

(1) Includes Amortization of acquisition-related intangible assets.

(2) Includes Pension and benefits remeasurement adjustments and Early debt redemption costs, where applicable.

(3) Includes Net gain from disposition of assets, where applicable.&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;

**Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio** 

---

| | | | |
|:---|:---|:---|:---|
| (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) |
| Unaudited | **12/31/22** | **9/30/22** | **12/31/21** |
| Debt maturing within one year | $9963 | $14995 | $7443 |
| Long-term debt | 140676 | 132912 | 143425 |
| **Total Debt** | 150639 | 147907 | 150868 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less Secured debt | 20008 | 16510 | 14202 |
| **Unsecured Debt** | 130631 | 131397 | 136666 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less Cash and cash equivalents | 2605 | 2082 | 2921 |
| **Net Unsecured Debt** | $128026 | $129315 | $133745 |
| **Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio** | 2.7x |  | 2.8x |
| Unsecured Debt - Quarter over quarter change | $(766) |  |  |
| Net Unsecured Debt - Quarter over quarter change | $(1289) |  |  |

---

------

**Verizon Communications Inc.**

**Adjusted Earnings per Common Share (Adjusted EPS)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) |
| Unaudited | **3 Mos. Ended 12/31/22** | **3 Mos. Ended 12/31/22** | **3 Mos. Ended 12/31/22** | **3 Mos. Ended 12/31/22** | **3 Mos. Ended 12/31/21** | **3 Mos. Ended 12/31/21** | **3 Mos. Ended 12/31/21** | **3 Mos. Ended 12/31/21** |
|  | **Pre-tax** | **Tax** | **After-Tax** |  | **Pre-tax** | **Tax** | **After-Tax** |  |
| **EPS** |  |  |  | $1.56 |  |  |  | $1.11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquisition-related intangible assets | $115 | $(34) | $81 | 0.02 | $135 | $(33) | $102 | 0.02 |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance, pension and benefits credits | (2214) | 552 | (1662) | (0.40) | (1103) | 268 | (835) | (0.20) |
| &nbsp;&nbsp;&nbsp;&nbsp;Early debt redemption costs |  |  |  |  | 2409 | (629) | 1780 | 0.43 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gain from disposition of asset |  |  |  |  | (131) | 30 | (101) | (0.02) |
|  | $(2099) | $518 | $(1581) | $(0.38) | $1310 | $(364) | $946 | $0.23 |
| **Adjusted EPS** |  |  |  | $1.19 |  |  |  | $1.33 |

---

**Footnotes:**

Adjusted EPS may not add due to rounding.

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

**Adjusted Earnings per Common Share (Adjusted EPS)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) |
| Unaudited | **12 Mos. Ended 12/31/22** | **12 Mos. Ended 12/31/22** | **12 Mos. Ended 12/31/22** | **12 Mos. Ended 12/31/22** | **12 Mos. Ended 12/31/21** | **12 Mos. Ended 12/31/21** | **12 Mos. Ended 12/31/21** | **12 Mos. Ended 12/31/21** |
|  | **Pre-tax** | **Tax** | **After-Tax** |  | **Pre-tax** | **Tax** | **After-Tax** |  |
| **EPS** |  |  |  | $5.06 |  |  |  | $5.32 |
| &nbsp;&nbsp;&nbsp;Amortization of acquisition-related intangible assets | $826 | $(214) | $612 | 0.15 | $594 | $(145) | $449 | 0.11 |
| &nbsp;&nbsp;&nbsp;Severance, pension and benefits credits | (1371) | 339 | (1032) | (0.25) | (2170) | 539 | (1631) | (0.39) |
| &nbsp;&nbsp;&nbsp;Early debt redemption costs | 1241 | (316) | 925 | 0.22 | 3541 | (917) | 2624 | 0.63 |
| &nbsp;&nbsp;&nbsp;Net gain from disposition of asset and business |  |  |  |  | (837) |  | (837) | (0.20) |
| &nbsp;&nbsp;&nbsp;Loss on spectrum licenses |  |  |  |  | 223 | (56) | 167 | 0.04 |
|  | $696 | $(191) | $505 | $0.12 | $1351 | $(579) | $772 | $0.19 |
| **Adjusted EPS** |  |  |  | $5.18 |  |  |  | $5.50 |

---

**Footnotes:**

Adjusted EPS may not add due to rounding.

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

---

| | | |
|:---|:---|:---|
| **Free Cash Flow** | | |
| (dollars in millions) | (dollars in millions) | (dollars in millions) |
| Unaudited | **12 Mos. Ended 12/31/22** | **12 Mos. Ended 12/31/21** |
| **Net Cash Provided by Operating Activities** | $37141 | $39539 |
| Capital expenditures (including capitalized software) | (23087) | (20286) |
| **Free Cash Flow** | $14054 | $19253 |

---

------

**Verizon Communications Inc.**

Non-GAAP Reconciliations - Segments

**Segment EBITDA and Segment EBITDA Margin**

**Consumer**

---

| | | | | |
|:---|:---|:---|:---|:---|
| (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) |
| Unaudited | **3 Mos. Ended 12/31/22** | **3 Mos. Ended 12/31/21** | **12 Mos. Ended 12/31/22** | **12 Mos. Ended 12/31/21** |
| **Operating Income** | $7028 | $7349 | $28846 | $29955 |
| &nbsp;&nbsp;&nbsp;&nbsp;Add Depreciation and amortization expense | 3111 | 3000 | 12716 | 11679 |
| **Segment EBITDA** | $10139 | $10349 | $41562 | $41634 |
| Year over year change % | (2.0)% |  | (0.2)% |  |
| Total operating revenues | $26770 | $25697 | $103506 | $95300 |
| **Operating Income Margin** | 26.3% | 28.6% | 27.9% | 31.4% |
| **Segment EBITDA Margin** | 37.9% | 40.3% | 40.2% | 43.7% |

---

**Business** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) |
| Unaudited | **3 Mos. Ended 12/31/22** | **3 Mos. Ended 12/31/21** | **12 Mos. Ended 12/31/22** | **12 Mos. Ended 12/31/21** |
| **Operating Income** | $585 | $796 | $2631 | $3437 |
| &nbsp;&nbsp;&nbsp;&nbsp;Add Depreciation and amortization expense | 1098 | 1038 | 4312 | 4084 |
| **Segment EBITDA** | $1683 | $1834 | $6943 | $7521 |
| Year over year change % | (8.2)% |  | (7.7)% |  |
| Total operating revenues | $7900 | $7810 | $31072 | $31042 |
| **Operating Income Margin** | 7.4% | 10.2% | 8.5% | 11.1% |
| **Segment EBITDA Margin** | 21.3% | 23.5% | 22.3% | 24.2% |

---

## Exhibit 99.2

**Exhibit 99.2**

![a4q22_commentaryxcover.jpg](a4q22_commentaryxcover.jpg)

------

This supplemental information regarding the financial and operating results of Verizon Communications Inc. (Verizon) for the fourth quarter and full year ended December 31, 2022 contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Discussion of factors that may affect future results is included at the end of this document and is also contained in Verizon's filings with the U.S. Securities and Exchange Commission.

![mobility1a.jpg](mobility1a.jpg)

Overall, total wireless retail postpaid net additions of 1,434 thousand for the fourth quarter 2022 was our best single quarter performance in 7 years. This success was driven by strong Fixed Wireless Access momentum, tablet and wearables adoption, and sequential improvement in phone net additions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Fourth quarter 2022**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Postpaid phone gross additions of 2,703 thousand, down 3.9% year over year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Postpaid phone churn of 0.89%, up 8 basis points year over year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Postpaid phone net additions of 217 thousand, compared to 558 thousand for the fourth quarter 2021.

&nbsp;&nbsp;&nbsp;&nbsp;VlpHU09DSUQyMDE5UTE=

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Full year 2022**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Postpaid phone gross additions of 9,804 thousand, up 2.3% year over year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Postpaid phone churn of 0.86%, up 9 basis points year over year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Postpaid phone net additions of 201 thousand, down 883 thousand year over year.

As a reminder, we fully decommissioned our 3G network at the end of the fourth quarter 2022. As a result, approximately 909 thousand wireless retail postpaid connections (576 thousand Consumer and 333 thousand Business connections), including 392 thousand wireless postpaid phone connections (180 thousand Consumer and 212 thousand Business connections), and 237 thousand retail prepaid connections were removed from the customer base. The impact of the 3G network shutdown has been excluded for purposes of calculating wireless retail net additions and wireless churn for the fourth quarter and full year 2022.

Verizon Consumer Group delivered 41 thousand postpaid phone net additions for the fourth quarter. Postpaid phone gross additions were down 5.6% for the fourth quarter due to a softer overall switching environment, but were offset by strong postpaid phone churn of 0.86%. Postpaid phone churn improved sequentially while it historically increases from the third to fourth quarter. For the full year 2022, Consumer reported postpaid phone net losses of 655 thousand.

In the Consumer segment, driving accretive step ups through our premium unlimited migrations is a critical lever for overall mobility growth. We ended the year with nearly 45% premium plan penetration, an increase of 3% compared to the end of third quarter 2022. Premium mix adoption, along with administrative fee and metered price increases, contributed to average revenue per account (ARPA) of $128.02 for the fourth quarter, which was up 3.2% year over year. Consumer ARPA for the full year 2022 was $125.97, a 3.0% increase compared to 2021.

We had prepaid net losses of 175 thousand for the fourth quarter 2022. The losses were driven by softness in gross additions, partially attributed to some of the more aggressive postpaid plans in the market. Prepaid churn for the fourth quarter was 4.90%, up 100 basis points sequentially. Some of the incremental churn pressures during the quarter were part of our deliberate brand rationalization strategy within TracFone Wireless, Inc. (TracFone) to focus on brands that can generate more long term profitable growth.

&nbsp;&nbsp;&nbsp;&nbsp;VlpHU09DSUQyMDE5UTE=

------

In 2023, we are focused on unlocking further synergies from the integration of TracFone by shifting TracFone customers on other carriers' networks onto Verizon's network. As of the end of 2022, 81% of TracFone customers were on Verizon's network, an improvement from 68% as of the end of 2021. We are on track to have the majority of the migration completed by the end of 2023.

Verizon Business delivered 176 thousand phone net additions for the fourth quarter 2022, marking the sixth consecutive quarter of delivering more than 150 thousand net additions. We saw strong results across each of our customer groups within our Business segment, with the strongest results delivered within Small and Medium Business.

Verizon Business reported 856 thousand phone net additions for the full year 2022, which is a record high since the creation of the Business reporting unit several years ago.

![broadband1a.jpg](broadband1a.jpg)

Total broadband net additions were 416 thousand for the quarter, reflecting strong demand across both our Fios and Fixed Wireless Access (FWA) products. Our fourth quarter broadband net additions were our best quarterly result in more than a decade. We had approximately 1.3 million broadband net additions for the year.

&nbsp;&nbsp;&nbsp;&nbsp;VlpHU09DSUQyMDE5UTE=

------

The growth of FWA continued through the fourth quarter with 379 thousand net additions. We experienced sequential quarterly net addition growth in FWA throughout 2022 and believe that this trend will continue into 2023.

We had 59 thousand Fios internet net additions for the fourth quarter 2022 demonstrating strong demand for this product, despite lower mover activity in the market. The results also benefited from our best fourth quarter Fios internet churn performance in six years. In addition, we achieved our annual Fios open for sale target adding more than 550 thousand new locations during the year and reaching more than 17.1 million locations as of the end of 2022.

![consolidatedrev1a.jpg](consolidatedrev1a.jpg)

Consolidated total operating revenue was $35.3 billion for the fourth quarter, up 3.5% year over year. Revenue growth was driven by both service and other revenue, which was up 3.3% year over year, and equipment revenue, which was up 4.1% year over year.

Total operating revenue for the full year 2022 was $136.8 billion, a 2.4% increase compared to 2021. Operating revenue growth was driven by wireless equipment revenue, which was up 17.5% for the full year 2022 compared to 2021, and offset by a service and other revenue decline of 0.7%. The result included the net impacts of the divestiture of Verizon Media Group and the acquisition of TracFone in 2021.

&nbsp;&nbsp;&nbsp;&nbsp;VlpHU09DSUQyMDE5UTE=

------

Total Wireless service revenue<sup>3</sup> grew 5.9% for the fourth quarter and 8.6% for the full year 2022, compared to the similar periods in 2021. Wireless service revenue benefited from unlimited plan migrations, strong fourth quarter postpaid net additions, and pricing actions that we began implementing in June of 2022. The result for the full year and fourth quarter 2021 included a partial contribution from the acquisition of TracFone completed in November 2021. Amortization of handset promotion costs continues to increase and is a headwind to wireless service revenue; we continue to look for opportunities to be more efficient in our go-to-market approach.

![consolidatedsummary1a.jpg](consolidatedsummary1a.jpg)

Consolidated net income was $6.7 billion for the fourth quarter 2022, up 41.4% year over year. Consolidated net income was $21.7 billion for the full year 2022, down 3.8% compared to 2021.

Consolidated Adjusted EBITDA<sup>1</sup> was $11.7 billion for the fourth quarter 2022, down 0.2% year over year. Full year Consolidated Adjusted EBITDA<sup>1</sup> was $47.9 billion, down 1.1% year over year. Wireless service revenue growth was offset by higher promotional expense, declines in high margin wireline business, and inflationary cost pressures.

Earnings per share (EPS) for the fourth quarter 2022 was $1.56, resulting in full year earnings per share of $5.06.

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Reported fourth quarter earnings include a pre-tax net gain from special items of approximately $2.1 billion. This includes a net pre-tax benefit of approximately $2.5 billion related to a mark-to-market adjustment for our pension and Other Post Employee Benefits (OPEB) liabilities, a $304 million charge related to severance and the impacts of amortization of intangible assets related to TracFone and other acquisitions of $115 million.

Excluding the effects of these special items, Adjusted EPS<sup>1</sup> for the fourth quarter 2022 was $1.19, a decrease of 10.5% year over year, driven by higher interest expense, depreciation, and lower OPEB income. Adjusted EPS<sup>1</sup> for the full year 2022 was $5.18, a decline of 5.8% year over year<sup>2</sup> .

![consumerrev1a.jpg](consumerrev1a.jpg)

Consumer service and other revenue for the fourth quarter was $20.2 billion, up 4.5%, compared to the similar period in 2021. For the full year, Consumer service and other revenue was $80.3 billion, up 6.4% year over year. Wireless service revenue was the main driver of this increase, benefiting from organic growth, the inclusion of TracFone results, and pricing actions implemented in the second half of 2022.

Consumer wireless service revenue was $15.5 billion for the fourth quarter 2022, a 6.1% increase compared to the fourth quarter 2021, which included a

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partial quarter contribution from TracFone. Consumer wireless service revenue for the full year 2022 grew 9.6% year over year, driven by premium adoption, overall postpaid connection growth, pricing actions implemented in the second half of 2022, and the inclusion of TracFone results.

Consumer Fios revenue for the fourth quarter 2022 was $2.9 billion, flat year over year, and $11.6 billion for the full year 2022, up 0.6%, compared to 2021. Consumer Fios internet customer growth continues to fuel total Fios revenue and is offset primarily by the decline in video connections, consistent with trends we see across the industry.

Consumer operating income was $7.0 billion for the fourth quarter, down 4.4% year over year, resulting in operating income margin of 26.3%. Full year Consumer operating income was $28.8 billion, down 3.7% year over year, resulting in operating income margin of 27.9%.

Segment EBITDA<sup>1</sup> was $10.1 billion for the fourth quarter and $41.6 billion for the full year 2022, down 2.0%, and 0.2%, respectively, compared to similar periods in 2021. The decline in the fourth quarter can be attributed to higher promotional expense related to device subsidies. Consumer Segment EBITDA margin<sup>1</sup> was 37.9% for the fourth quarter and 40.2% for the full year 2022, down 350 basis points compared to full year 2021, due in part to the inclusion of TracFone results.

![businessrev1a.jpg](businessrev1a.jpg)

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Operating revenue for the Business segment was $7.9 billion for the fourth quarter 2022, up 1.2% year over year. Growth was primarily driven by Small and Medium Business mobility, partially offset by wireline declines. Full year Business operating revenue was $31.1 billion, flat year over year, as strong wireless performance was offset by wireline declines.

Business Wireless service revenue was up 4.7% for the fourth quarter and 3.9% for the full year 2022. This growth was driven predominantly by the continued momentum in adding more customers onto the platform. Excluding one-time benefits in the quarter, underlying wireline trends remain consistent with the prevailing macro pressures in this market.

Business operating income was $0.6 billion for the fourth quarter 2022, down 26.5% year over year, resulting in operating income margin of 7.4%. For the full year Business operating income was $2.6 billion, down 23.5% year over year, resulting in operating income margin of 8.5%.

Segment EBITDA<sup>1</sup> was $1.7 billion for the fourth quarter 2022, down 8.2% year over year, reflecting higher subsidies due to increased activations and sales-related expense as well as declines in high margin wireline revenues. Business Segment EBITDA margin<sup>1</sup> was 21.3% for the quarter and 22.3% for the full year 2022, down 190 basis points compared to full year 2021.

![cashflow1a.jpg](cashflow1a.jpg)

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Strong cash generation in 2022 allowed us to invest in our business as well as increase our dividend for the 16th consecutive year, while maintaining a healthy balance sheet.

Cash flow from operating activities for 2022 totaled $37.1 billion, compared to $39.5 billion for the prior year period. The change was primarily driven by higher device payment receivables as our device payment portfolio increased by approximately $5 billion during 2022.

Capital spending for the year totaled $23.1 billion, an increase of $2.8 billion compared to 2021. This increase was driven entirely by our C-Band spectrum build-out which totaled $6.2 billion in 2022, up from $2.1 billion in 2021, while business-as-usual capital spending declined by $1.3 billion to $16.9 billion in 2022. C-Band-related investments peaked in 2022, and we expect capital intensity to begin to decline in 2023 with less than $1.8 billion remaining to complete the incremental $10 billion of C-Band-related capital spending that we announced at our 2021 investor day.

The net result of cash flow from operations and capital spending is free cash flow<sup>1</sup> of $14.1 billion for the full year 2022.

Our financing strategy of keeping short term maturities to a minimum was helpful in minimizing our debt financing activities in the higher interest rate environment in 2022. Total unsecured debt for the quarter was $130.6 billion, an improvement of $0.8 billion compared to the third quarter and $6.0 billion lower year over year. We exited the year with net unsecured debt<sup>1</sup> of $128.0 billion, a $1.3 billion improvement compared to the end of the third quarter and $5.7 billion lower year over year. This resulted in net unsecured debt to Adjusted EBITDA ratio<sup>1</sup> of 2.7x as of the end of 2022, compared with 2.8x at the end of 2021.

We ended the year with approximately $400 million of additional interest expense than we initially anticipated. Despite the pressure on consumers from higher interest rates and inflation, we continue to see payment trends that remain at or better than pre-pandemic levels due to the quality of our postpaid customer base.

We have only $1.5 billion of unsecured notes maturing in 2023, and we are confident that our cash flow generation and balance sheet put us in a strong position moving forward.

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Notes

<sup>1</sup> *Non-GAAP financial measure. See the accompanying schedules and www.verizon.com/about/investors for reconciliations of non-GAAP financial measures cited in this document to most directly comparable financial measures under generally accepted accounting principles (GAAP).*

<sup>2</sup> *Adjusted EPS for the prior year period has been reclassified to conform to current period presentation.*

<sup>3</sup> *Total Wireless service revenue represents the sum of Consumer and Business segments*

**Forward-looking statements** 

In this communication 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," "forecasts," "hopes," "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 in our filings with the Securities and Exchange Commission (the "SEC"), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of competition in the markets in which we operate, including any inability to successfully respond to competitive factors such as prices, promotional incentives and evolving consumer preferences; failure to take advantage of, or respond to competitors' use 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; 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, acts of war, terrorist attacks or other hostile acts and any resulting financial or reputational impact; the impact of public health crises 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, public health crises or the potential impacts of global climate change; material adverse changes in labor matters and any resulting financial or operational impact; 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; 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.

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![checkmarka.jpg](checkmarka.jpg)

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**Verizon Communications Inc.**

Non-GAAP Reconciliations - Consolidated Verizon

**Consolidated EBITDA and Consolidated Adjusted EBITDA**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) |
| Unaudited | **12 Mos. Ended 12/31/22** | **3 Mos. Ended 12/31/22** | **3 Mos. Ended 9/30/22** | **3 Mos. Ended 6/30/22** | **3 Mos. Ended 3/31/22** | **12 Mos. Ended 12/31/21** | **3 Mos. Ended 12/31/21** | **3 Mos. Ended 9/30/21** | **3 Mos. Ended 6/30/21** | **3 Mos. Ended 3/31/21** |
| **Consolidated Net Income** | $**21748** | $6698 | $5024 | $5315 | $4711 | $**22618** | $4737 | $6554 | $5949 | $5378 |
| &nbsp;&nbsp;&nbsp;&nbsp;Add: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes | **6523** | 2113 | 1496 | 1542 | 1372 | **6802** | 1407 | 1820 | 1875 | 1700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | **3613** | 1105 | 937 | 785 | 786 | **3485** | 739 | 801 | 844 | 1101 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense <sup>(1)</sup> | **17099** | 4218 | 4324 | 4321 | 4236 | **16206** | 4051 | 3961 | 4020 | 4174 |
| **Consolidated EBITDA** | $**48983** | $14134 | $11781 | $11963 | $11105 | $**49111** | $10934 | $13136 | $12688 | $12353 |
| &nbsp;&nbsp;&nbsp;&nbsp;Add/(subtract): |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other (income) expense, net <sup>(2)</sup> | $**(1373)** | $(2687) | $439 | $(49) | $924 | $**(312)** | $860 | $(269) | $(502) | $(401) |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity in losses (earnings) of unconsolidated businesses <sup>(3)</sup> | **(44)** | (4) | (2) | (41) | 3 | **(145)** | (135) | (1) | (1) | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Severance charges | **304** | 304 |  |  |  | **209** | 106 | 103 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on spectrum licenses | **—** |  |  |  |  | **223** |  |  |  | 223 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain from disposition of business | **—** |  |  |  |  | **(706)** |  | (706) |  |  |
|  | **(1113)** | (2387) | 437 | (90) | 927 | **(731)** | 831 | (873) | (503) | (186) |
| **Consolidated Adjusted EBITDA** | $**47870** | $11747 | $12218 | $11873 | $12032 | $**48380** | $11765 | $12263 | $12185 | $12167 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated Adjusted EBITDA - Year Over Year Change | (1.1)% | (0.2)% |  |  |  |  |  |  |  |  |

---

**Footnotes:**

(1) Includes Amortization of acquisition-related intangible assets.

(2) Includes Pension and benefits remeasurement adjustments and Early debt redemption costs, where applicable.

(3) Includes Net gain from disposition of assets, where applicable.&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;

**Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio** 

---

| | | | |
|:---|:---|:---|:---|
| (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) |
| Unaudited | **12/31/22** | **9/30/22** | **12/31/21** |
| Debt maturing within one year | $9963 | $14995 | $7443 |
| Long-term debt | 140676 | 132912 | 143425 |
| **Total Debt** | 150639 | 147907 | 150868 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less Secured debt | 20008 | 16510 | 14202 |
| **Unsecured Debt** | 130631 | 131397 | 136666 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less Cash and cash equivalents | 2605 | 2082 | 2921 |
| **Net Unsecured Debt** | $128026 | $129315 | $133745 |
| **Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio** | 2.7x |  | 2.8x |
| Unsecured Debt - Quarter over quarter change | $(766) |  |  |
| Unsecured Debt - Year over year change | $(6035) |  |  |
| Net Unsecured Debt - Quarter over quarter change | $(1289) |  |  |
| Net Unsecured Debt - Year over year change | $(5719) |  |  |

---

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**Verizon Communications Inc.**

**Adjusted Earnings per Common Share (Adjusted EPS)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) |
| Unaudited | **3 Mos. Ended 12/31/22** | **3 Mos. Ended 12/31/22** | **3 Mos. Ended 12/31/22** | **3 Mos. Ended 12/31/22** | **3 Mos. Ended 12/31/21** | **3 Mos. Ended 12/31/21** | **3 Mos. Ended 12/31/21** | **3 Mos. Ended 12/31/21** |
|  | **Pre-tax** | **Tax** | **After-Tax** |  | **Pre-tax** | **Tax** | **After-Tax** |  |
| **EPS** |  |  |  | $1.56 |  |  |  | $1.11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquisition-related intangible assets | $115 | $(34) | $81 | 0.02 | $135 | $(33) | $102 | 0.02 |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance, pension and benefits credits | (2214) | 552 | (1662) | (0.40) | (1103) | 268 | (835) | (0.20) |
| &nbsp;&nbsp;&nbsp;&nbsp;Early debt redemption costs |  |  |  |  | 2409 | (629) | 1780 | 0.43 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gain from disposition of asset |  |  |  |  | (131) | 30 | (101) | (0.02) |
|  | $(2099) | $518 | $(1581) | $(0.38) | $1310 | $(364) | $946 | $0.23 |
| **Adjusted EPS** |  |  |  | $1.19 |  |  |  | $1.33 |
| **Year over year change %** |  |  |  | (10.5)% |  |  |  |  |

---

**Footnotes:**

Adjusted EPS may not add due to rounding.

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

**Adjusted Earnings per Common Share (Adjusted EPS)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) |
| Unaudited | **12 Mos. Ended 12/31/22** | **12 Mos. Ended 12/31/22** | **12 Mos. Ended 12/31/22** | **12 Mos. Ended 12/31/22** | **12 Mos. Ended 12/31/21** | **12 Mos. Ended 12/31/21** | **12 Mos. Ended 12/31/21** | **12 Mos. Ended 12/31/21** |
|  | **Pre-tax** | **Tax** | **After-Tax** |  | **Pre-tax** | **Tax** | **After-Tax** |  |
| **EPS** |  |  |  | $5.06 |  |  |  | $5.32 |
| &nbsp;&nbsp;&nbsp;Amortization of acquisition-related intangible assets | $826 | $(214) | $612 | 0.15 | $594 | $(145) | $449 | 0.11 |
| &nbsp;&nbsp;&nbsp;Severance, pension and benefits credits | (1371) | 339 | (1032) | (0.25) | (2170) | 539 | (1631) | (0.39) |
| &nbsp;&nbsp;&nbsp;Early debt redemption costs | 1241 | (316) | 925 | 0.22 | 3541 | (917) | 2624 | 0.63 |
| &nbsp;&nbsp;&nbsp;Net gain from disposition of asset and business |  |  |  |  | (837) |  | (837) | (0.20) |
| &nbsp;&nbsp;&nbsp;Loss on spectrum licenses |  |  |  |  | 223 | (56) | 167 | 0.04 |
|  | $696 | $(191) | $505 | $0.12 | $1351 | $(579) | $772 | $0.19 |
| **Adjusted EPS** |  |  |  | $5.18 |  |  |  | $5.50 |
| **Year over year change %** |  |  |  | (5.8)% |  |  |  |  |

---

**Footnotes:**

Adjusted EPS may not add due to rounding.

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

---

| | | |
|:---|:---|:---|
| **Free Cash Flow** | | |
| (dollars in millions) | (dollars in millions) | (dollars in millions) |
| Unaudited | **12 Mos. Ended 12/31/22** | **12 Mos. Ended 12/31/21** |
| **Net Cash Provided by Operating Activities** | $37141 | $39539 |
| Capital expenditures (including capitalized software) | (23087) | (20286) |
| **Free Cash Flow** | $14054 | $19253 |

---

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**Verizon Communications Inc.**

Non-GAAP Reconciliations - Segments

**Segment EBITDA and Segment EBITDA Margin**

**Consumer**

---

| | | | | |
|:---|:---|:---|:---|:---|
| (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) |
| Unaudited | **3 Mos. Ended 12/31/22** | **3 Mos. Ended 12/31/21** | **12 Mos. Ended 12/31/22** | **12 Mos. Ended 12/31/21** |
| **Operating Income** | $7028 | $7349 | $28846 | $29955 |
| &nbsp;&nbsp;&nbsp;&nbsp;Add Depreciation and amortization expense | 3111 | 3000 | 12716 | 11679 |
| **Segment EBITDA** | $10139 | $10349 | $41562 | $41634 |
| Year over year change % | (2.0)% |  | (0.2)% |  |
| Total operating revenues | $26770 | $25697 | $103506 | $95300 |
| **Operating Income Margin** | 26.3% | 28.6% | 27.9% | 31.4% |
| **Segment EBITDA Margin** | 37.9% | 40.3% | 40.2% | 43.7% |
| **Segment EBITDA Margin - Year Over Year Change** |  |  | (350) bps |  |

---

**Business** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) | (dollars in millions) |
| Unaudited | **3 Mos. Ended 12/31/22** | **3 Mos. Ended 12/31/21** | **12 Mos. Ended 12/31/22** | **12 Mos. Ended 12/31/21** |
| **Operating Income** | $585 | $796 | $2631 | $3437 |
| &nbsp;&nbsp;&nbsp;&nbsp;Add Depreciation and amortization expense | 1098 | 1038 | 4312 | 4084 |
| **Segment EBITDA** | $1683 | $1834 | $6943 | $7521 |
| Year over year change % | (8.2)% |  | (7.7)% |  |
| Total operating revenues | $7900 | $7810 | $31072 | $31042 |
| **Operating Income Margin** | 7.4% | 10.2% | 8.5% | 11.1% |
| **Segment EBITDA Margin** | 21.3% | 23.5% | 22.3% | 24.2% |
| **Segment EBITDA Margin - Year Over Year Change** |  |  | (190) bps |  |

---

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