Cover
Cover | 6 Months Ended |
Jun. 30, 2019shares | |
Entity Information [Line Items] | |
Entity Shell Company | false |
Entity Interactive Data Current | Yes |
Entity Current Reporting Status | Yes |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2019 |
Document Transition Report | false |
Entity File Number | 1-8606 |
Entity Registrant Name | Verizon Communications Inc. |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 23-2259884 |
Entity Address, Address Line One | 1095 Avenue of the Americas |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10036 |
City Area Code | 212 |
Local Phone Number | 395-1000 |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 4,135,764,809 |
Amendment Flag | false |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q2 |
Entity Central Index Key | 0000732712 |
Current Fiscal Year End Date | --12-31 |
Common Stock | New York Stock Exchange | |
Entity Information [Line Items] | |
Security Exchange Name | NYSE |
Title of 12(b) Security | Common Stock, par value $0.10 |
Trading Symbol | VZ |
Common Stock | The NASDAQ Global Select Market | |
Entity Information [Line Items] | |
Security Exchange Name | NASDAQ |
Title of 12(b) Security | Common Stock, par value $0.10 |
Trading Symbol | VZ |
2.375% Notes due 2022 | New York Stock Exchange | |
Entity Information [Line Items] | |
Security Exchange Name | NYSE |
Title of 12(b) Security | 2.375% Notes due 2022 |
Trading Symbol | VZ22A |
0.500% Notes due 2022 | New York Stock Exchange | |
Entity Information [Line Items] | |
Security Exchange Name | NYSE |
Title of 12(b) Security | 0.500% Notes due 2022 |
Trading Symbol | VZ22B |
1.625% Notes due 2024 | New York Stock Exchange | |
Entity Information [Line Items] | |
Security Exchange Name | NYSE |
Title of 12(b) Security | 1.625% Notes due 2024 |
Trading Symbol | VZ24B |
4.073% Notes due 2024 | New York Stock Exchange | |
Entity Information [Line Items] | |
Security Exchange Name | NYSE |
Title of 12(b) Security | 4.073% Notes due 2024 |
Trading Symbol | VZ24C |
0.875% Notes due 2025 | New York Stock Exchange | |
Entity Information [Line Items] | |
Security Exchange Name | NYSE |
Title of 12(b) Security | 0.875% Notes due 2025 |
Trading Symbol | VZ25 |
3.25% Notes due 2026 | New York Stock Exchange | |
Entity Information [Line Items] | |
Security Exchange Name | NYSE |
Title of 12(b) Security | 3.25% Notes due 2026 |
Trading Symbol | VZ26 |
1.375% Notes due 2026 | New York Stock Exchange | |
Entity Information [Line Items] | |
Security Exchange Name | NYSE |
Title of 12(b) Security | 1.375% Notes due 2026 |
Trading Symbol | VZ26B |
0.875% Notes due 2027 | New York Stock Exchange | |
Entity Information [Line Items] | |
Security Exchange Name | NYSE |
Title of 12(b) Security | 0.875% Notes due 2027 |
Trading Symbol | VZ27E |
1.375% Notes due 2028 | New York Stock Exchange | |
Entity Information [Line Items] | |
Security Exchange Name | NYSE |
Title of 12(b) Security | 1.375% Notes due 2028 |
Trading Symbol | VZ28 |
1.875% Notes due 2029 | New York Stock Exchange | |
Entity Information [Line Items] | |
Security Exchange Name | NYSE |
Title of 12(b) Security | 1.875% Notes due 2029 |
Trading Symbol | VZ29B |
1.250% Notes due 2030 | New York Stock Exchange | |
Entity Information [Line Items] | |
Security Exchange Name | NYSE |
Title of 12(b) Security | 1.250% Notes due 2030 |
Trading Symbol | VZ30 |
2.625% Notes due 2031 | New York Stock Exchange | |
Entity Information [Line Items] | |
Security Exchange Name | NYSE |
Title of 12(b) Security | 2.625% Notes due 2031 |
Trading Symbol | VZ31 |
2.500% Notes due 2031 | New York Stock Exchange | |
Entity Information [Line Items] | |
Security Exchange Name | NYSE |
Title of 12(b) Security | 2.500% Notes due 2031 |
Trading Symbol | VZ31A |
4.75% Notes due 2034 | New York Stock Exchange | |
Entity Information [Line Items] | |
Security Exchange Name | NYSE |
Title of 12(b) Security | 4.75% Notes due 2034 |
Trading Symbol | VZ34 |
3.125% Notes due 2035 | New York Stock Exchange | |
Entity Information [Line Items] | |
Security Exchange Name | NYSE |
Title of 12(b) Security | 3.125% Notes due 2035 |
Trading Symbol | VZ35 |
3.375% Notes due 2036 | New York Stock Exchange | |
Entity Information [Line Items] | |
Security Exchange Name | NYSE |
Title of 12(b) Security | 3.375% Notes due 2036 |
Trading Symbol | VZ36A |
2.875% Notes due 2038 | New York Stock Exchange | |
Entity Information [Line Items] | |
Security Exchange Name | NYSE |
Title of 12(b) Security | 2.875% Notes due 2038 |
Trading Symbol | VZ38B |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Operating Revenues | ||||
Operating Revenues | $ 32,071 | $ 32,203 | $ 64,199 | $ 63,975 |
Operating Expenses | ||||
Selling, general and administrative expense | 7,268 | 7,605 | 14,466 | 14,449 |
Depreciation and amortization expense | 4,232 | 4,350 | 8,463 | 8,674 |
Total Operating Expenses | 24,221 | 25,586 | 48,640 | 50,009 |
Operating Income | 7,850 | 6,617 | 15,559 | 13,966 |
Equity in losses of unconsolidated businesses | (13) | (228) | (19) | (247) |
Other income (expense), net | (1,312) | 360 | (1,017) | 285 |
Interest expense | (1,215) | (1,222) | (2,425) | (2,423) |
Income Before Provision For Income Taxes | 5,310 | 5,527 | 12,098 | 11,581 |
Provision for income taxes | (1,236) | (1,281) | (2,864) | (2,669) |
Net Income | 4,074 | 4,246 | 9,234 | 8,912 |
Net income attributable to noncontrolling interests | 130 | 126 | 258 | 247 |
Net income attributable to Verizon | 3,944 | 4,120 | 8,976 | 8,665 |
Net Income | $ 4,074 | $ 4,246 | $ 9,234 | $ 8,912 |
Basic Earnings Per Common Share | ||||
Net income attributable to Verizon (USD per share) | $ 0.95 | $ 1 | $ 2.17 | $ 2.10 |
Weighted-average shares outstanding (in shares) | 4,138 | 4,135 | 4,138 | 4,120 |
Diluted Earnings Per Common Share | ||||
Net income attributable to Verizon (USD per share) | $ 0.95 | $ 1 | $ 2.17 | $ 2.10 |
Weighted-average shares outstanding (in shares) | 4,139 | 4,139 | 4,140 | 4,123 |
Service and Other | ||||
Operating Revenues | ||||
Operating Revenues | $ 27,351 | $ 27,159 | $ 54,548 | $ 53,891 |
Service | ||||
Operating Expenses | ||||
Cost of services and equipment | 7,702 | 8,234 | 15,494 | 16,180 |
Wireless equipment | ||||
Operating Revenues | ||||
Operating Revenues | 4,720 | 5,044 | 9,651 | 10,084 |
Operating Expenses | ||||
Cost of services and equipment | $ 5,019 | $ 5,397 | $ 10,217 | $ 10,706 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 4,074 | $ 4,246 | $ 9,234 | $ 8,912 |
Other Comprehensive Income (Loss), Net of Tax (Expense) Benefit | ||||
Foreign currency translation adjustments, net of tax of $3, $13, $(2) and $6 | (67) | (176) | (43) | (83) |
Unrealized gain (loss) on cash flow hedges, net of tax of $193, $55, $198 and $(125) | (537) | (152) | (550) | 349 |
Unrealized gain (loss) on marketable securities, net of tax of $0, $0, $(2) and $1 | 4 | 1 | 8 | (4) |
Defined benefit pension and postretirement plans, net of tax of $56, $58, $112 and $118 | (169) | (173) | (338) | (346) |
Other comprehensive loss attributable to Verizon | (769) | (500) | (923) | (84) |
Total Comprehensive Income | 3,305 | 3,746 | 8,311 | 8,828 |
Comprehensive income attributable to noncontrolling interests | 130 | 126 | 258 | 247 |
Comprehensive income attributable to Verizon | 3,175 | 3,620 | 8,053 | 8,581 |
Total Comprehensive Income | $ 3,305 | $ 3,746 | $ 8,311 | $ 8,828 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, tax | $ 3 | $ 13 | $ (2) | $ 6 |
Unrealized gain (loss) on cash flow hedges, tax | 193 | 55 | 198 | (125) |
Unrealized gain (loss) on marketable securities, tax | 0 | 0 | (2) | 1 |
Defined benefit pension and postretirement plans, tax | $ 56 | $ 58 | $ 112 | $ 118 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 1,949 | $ 2,745 |
Accounts receivable, net of allowances of $745 and $765 | 24,926 | 25,102 |
Inventories | 1,167 | 1,336 |
Prepaid expenses and other | 5,266 | 5,453 |
Total current assets | 33,308 | 34,636 |
Property, plant and equipment | 257,395 | 252,835 |
Less accumulated depreciation | 169,577 | 163,549 |
Property, plant and equipment, net | 87,818 | 89,286 |
Investments in unconsolidated businesses | 650 | 671 |
Wireless licenses | 94,333 | 94,130 |
Goodwill | 24,632 | 24,614 |
Other intangible assets, net | 9,474 | 9,775 |
Operating lease right-of-use assets | 22,467 | |
Other assets | 10,426 | 11,717 |
Total assets | 283,108 | 264,829 |
Current liabilities | ||
Debt maturing within one year | 8,773 | 7,190 |
Accounts payable and accrued liabilities | 17,633 | 22,501 |
Current operating lease liabilities | 3,154 | |
Other current liabilities | 8,654 | 8,239 |
Total current liabilities | 38,214 | 37,930 |
Long-term debt | 104,598 | 105,873 |
Employee benefit obligations | 18,040 | 18,599 |
Deferred income taxes | 34,225 | 33,795 |
Non-current operating lease liabilities | 18,254 | |
Other liabilities | 11,830 | 13,922 |
Total long-term liabilities | 186,947 | 172,189 |
Note 12 | ||
Equity | ||
Series preferred stock ($0.10 par value; 250,000,000 shares authorized; none issued) | 0 | 0 |
Common stock ($0.10 par value; 6,250,000,000 shares authorized in each period; 4,291,433,646 issued in each period) | 429 | 429 |
Additional paid in capital | 13,419 | 13,437 |
Retained earnings | 47,945 | 43,542 |
Accumulated other comprehensive income | 1,447 | 2,370 |
Common stock in treasury, at cost (155,668,837 and 159,400,267 shares outstanding) | (6,823) | (6,986) |
Deferred compensation – employee stock ownership plans and other | 165 | 353 |
Noncontrolling interests | 1,365 | 1,565 |
Total equity | 57,947 | 54,710 |
Total liabilities and equity | $ 283,108 | $ 264,829 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 745 | $ 765 |
Series preferred stock, par value (USD per share) | $ 0.1 | $ 0.1 |
Series preferred stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Series preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (USD per share) | $ 0.1 | $ 0.1 |
Common stock, shares authorized (in shares) | 6,250,000,000 | 6,250,000,000 |
Common stock, shares issued (in shares) | 4,291,433,646 | 4,291,433,646 |
Treasury stock, shares issued (in shares) | 155,668,837 | 159,400,267 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flows from Operating Activities | ||
Net Income | $ 9,234 | $ 8,912 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 8,463 | 8,674 |
Employee retirement benefits | (294) | (300) |
Deferred income taxes | 588 | 1,354 |
Provision for uncollectible accounts | 738 | 462 |
Equity in losses of unconsolidated businesses, net of dividends received | 50 | 268 |
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses | (4,593) | (1,538) |
Discretionary employee benefits contributions | (300) | (1,679) |
Other, net | 1,950 | 280 |
Net cash provided by operating activities | 15,836 | 16,433 |
Cash Flows from Investing Activities | ||
Capital expenditures (including capitalized software) | (7,967) | (7,838) |
Acquisitions of businesses, net of cash acquired | (28) | (38) |
Acquisitions of wireless licenses | (199) | (1,155) |
Other, net | (395) | 303 |
Net cash used in investing activities | (8,589) | (8,728) |
Cash Flows from Financing Activities | ||
Proceeds from long-term borrowings | 6,237 | 4,584 |
Proceeds from asset-backed long-term borrowings | 3,982 | 1,716 |
Repayments of long-term borrowings and finance lease obligations | (9,630) | (6,568) |
Repayments of asset-backed long-term borrowings | (2,817) | (2,000) |
Dividends paid | (4,981) | (4,845) |
Other, net | (834) | (752) |
Net cash used in financing activities | (8,043) | (7,865) |
Decrease in cash, cash equivalents and restricted cash | (796) | (160) |
Cash, cash equivalents and restricted cash, beginning of period | 3,916 | 2,888 |
Cash, Cash equivalents and restricted cash, end of period (Note 1) | $ 3,120 | $ 2,728 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) in the United States (U.S.) and based upon Securities and Exchange Commission rules that permit reduced disclosure for interim periods. For a more complete discussion of significant accounting policies and certain other information, you should refer to the financial statements of Verizon Communications Inc. (Verizon or the Company) included in our Annual Report on Form 10-K for the year ended December 31, 2018. These financial statements reflect all adjustments that are necessary for a fair presentation of results of operations and financial condition for the interim periods shown, including normal recurring accruals and other items. The results for the interim periods are not necessarily indicative of results for the full year. In November 2018, we announced a strategic reorganization of our business. Under the new structure, effective April 1, 2019, there are two reportable segments that we operate and manage as strategic business units - Verizon Consumer Group ( Consumer ) and Verizon Business Group ( Business ). In conjunction with the new reporting structure, we recast our segment disclosures for all periods presented. Our Consumer segment provides consumer-focused wireless and wireline communications services and products. Our wireless services are provided across one of the most extensive wireless networks in the U.S. under the Verizon Wireless brand and through wholesale and other arrangements. Our wireline services are provided in nine states in the Mid-Atlantic and Northeastern U.S., as well as Washington D.C., over our 100% fiber-optic network under the Fios brand and over a traditional copper-based network to customers who are not served by Fios. Our Consumer segment’s wireless and wireline products and services are available to our retail customers, as well as resellers that purchase wireless network access from us on a wholesale basis . Our Business segment provides wireless and wireline communications services and products, video and data services, corporate networking solutions, security and managed network services, local and long distance voice services and network access to deliver various Internet of Things (IoT) services and products . We provide these products and services to businesses, government customers and wireless and wireline carriers across the U.S. and select products and services to customers around the world. Basis of Presentation We have reclassified certain prior year amounts to conform to the current year presentation, including impacts for changes in our reportable segments. Earnings Per Common Share There were a total of approximately 2 million outstanding dilutive securities, primarily consisting of restricted stock units, included in the computation of diluted earnings per common share for both the three and six months ended June 30, 2019 . There were a total of approximately 4 million outstanding dilutive securities, primarily consisting of restricted stock units, included in the computation of diluted earnings per common share for both the three and six months ended June 30, 2018 . Cash, Cash Equivalents and Restricted Cash We consider all highly liquid investments with an original maturity of 90 days or less when purchased to be cash equivalents. Cash equivalents are stated at cost, which approximates quoted market value and includes amounts held in money market funds. Cash collections on the device payment plan agreement receivables collateralizing asset-backed debt securities are required at certain specified times to be placed into segregated accounts. Deposits to the segregated accounts are considered restricted cash and are included in Prepaid expenses and other and Other assets in our condensed consolidated balance sheets. Cash, cash equivalents and restricted cash are included in the following line items on the condensed consolidated balance sheets: At June 30, At December 31, Increase / (Decrease) (dollars in millions) 2019 2018 Cash and cash equivalents $ 1,949 $ 2,745 $ (796 ) Restricted cash: Prepaid expenses and other 1,055 1,047 8 Other assets 116 124 (8 ) Cash, cash equivalents and restricted cash $ 3,120 $ 3,916 $ (796 ) Goodwill Goodwill is the excess of the acquisition cost of businesses over the fair value of the identifiable net assets acquired. Impairment testing for goodwill is performed annually in the fourth quarter or more frequently if impairment indicators are present. We transitioned into our new segment reporting structure effective April 1, 2019, which resulted in certain changes to our operating segments and reporting units. Upon the date of reorganization, the goodwill of our historical Wireless reporting unit, historical Wireline reporting unit and historical Verizon Connect reporting unit were reallocated to our new Consumer and Business reporting units using a relative fair value approach. We performed an impairment assessment of the impacted reporting units, specifically our historical Wireless, historical Wireline and historical Connect reporting units on March 31, 2019, immediately before our strategic reorganization became effective. Our impairment assessments indicated that the fair value for each of our historical Wireless, historical Wireline and historical Connect reporting units exceeded their respective carrying value, and therefore did not result in a goodwill impairment. We then performed an impairment assessment for our Consumer and Business reporting units on April 1, 2019, immediately following our strategic reorganization. Our impairment assessments indicated that the fair value for each of our Consumer and Business reporting units exceeded their respective carrying values and therefore, did not result in a goodwill impairment. Our Media reporting unit was not impacted by the strategic reorganization and there was no indicator of impairment. Recently Adopted Accounting Standard The following Accounting Standard Updates (ASUs) were issued by Financial Accounting Standards Board (FASB), and have been recently adopted by Verizon. Description Date of Adoption Effect on Financial Statements ASU 2016-02, ASU 2018-01, ASU 2018-10, ASU 2018-11, ASU 2018-20 and ASU 2019-01, Leases (Topic 842) The FASB issued Topic 842 requiring entities to recognize assets and liabilities on the balance sheet for all leases, with certain exceptions. In addition, Topic 842 will enable users of financial statements to further understand the amount, timing and uncertainty of cash flows arising from leases. Topic 842 allows for a modified retrospective application and is effective as of the first quarter of 2019. Entities are allowed to apply the modified retrospective approach: (1) retrospectively to each prior reporting period presented in the financial statements with the cumulative-effect adjustment recognized at the beginning of the earliest comparative period presented; or (2) retrospectively at the beginning of the period of adoption (January 1, 2019) through a cumulative-effect adjustment. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. 1/1/2019 We adopted Topic 842 beginning on January 1, 2019, using the modified retrospective approach with a cumulative-effect adjustment to opening retained earnings recorded at the beginning of the period of adoption. Therefore, upon adoption, we have recognized and measured leases without revising comparative period information or disclosure. We recorded an increase of $410 million (net of tax) to retained earnings on January 1, 2019 which related to deferred sale leaseback gains recognized from prior transactions. Additionally, the adoption of the standard had a significant impact in our condensed consolidated balance sheet due to the recognition of $22.1 billion of operating lease liabilities, along with $23.2 billion of operating lease right-of-use-assets. The cumulative after-tax effect of the changes made to our condensed consolidated balance sheet for the adoption of Topic 842 were as follows: (dollars in millions) At December 31, 2018 Adjustments due to Topic 842 At January 1, 2019 Prepaid expenses and other $ 5,453 $ (329 ) $ 5,124 Operating lease right-of-use assets — 23,241 23,241 Other assets 11,717 (2,048 ) 9,669 Accounts payable and accrued liabilities 22,501 (3 ) 22,498 Other current liabilities 8,239 (2 ) 8,237 Current operating lease liabilities — 2,931 2,931 Deferred income taxes 33,795 139 33,934 Non-current operating lease liabilities — 19,203 19,203 Other liabilities 13,922 (1,815 ) 12,107 Retained earnings 43,542 410 43,952 Noncontrolling interests 1,565 1 1,566 In addition to the increase to the operating lease liabilities and right-of-use assets and the derecognition of deferred sale leaseback gains through opening retained earnings, Topic 842 also resulted in reclassifying the presentation of prepaid and deferred rent to operating lease right-of-use assets. The operating lease right-of-use assets amount also includes the balance of any prepaid lease payments, unamortized initial direct costs, and lease incentives. We elected the package of practical expedients permitted under the transition guidance within the new standard. Accordingly, we have adopted these practical expedients and did not reassess: (1) whether an expired or existing contract is a lease or contains an embedded lease; (2) lease classification of an expired or existing lease; or (3) capitalization of initial direct costs for an expired or existing lease. In addition, we have elected the land easement transition practical expedient, and did not reassess whether an existing or expired land easement is a lease or contains a lease if it has not historically been accounted for as a lease. We lease network equipment including towers, distributed antenna systems, small cells, real estate, connectivity mediums which include dark fiber, equipment leases, and other various types of assets for use in our operations under both operating and finance leases. We assess whether an arrangement is a lease or contains a lease at inception. For arrangements considered leases or that contain a lease that is accounted for separately, we determine the classification and initial measurement of the right-of-use asset and lease liability at the lease commencement date, which is the date that the underlying asset becomes available for use. For both operating and finance leases, we recognize a right-of-use asset, which represents our right to use the underlying asset for the lease term, and a lease liability, which represents the present value of our obligation to make payments arising over the lease term. The present value of the lease payments is calculated using the incremental borrowing rate for operating and finance leases. The incremental borrowing rate is determined using a portfolio approach based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. Management uses the unsecured borrowing rate and risk-adjusts that rate to approximate a collateralized rate, which will be updated on a quarterly basis for measurement of new lease liabilities. In those circumstances where the Company is the lessee, we have elected to account for non-lease components associated with our leases (e.g., common area maintenance costs) and lease components as a single lease component for substantially all of our asset classes. Additionally, in arrangements where we are the lessor, we have customer premise equipment for which we apply the lease and non-lease component practical expedient and account for non-lease components (e.g., service revenue) and lease components as combined components under the revenue recognition guidance in ASU 2014-09, "Revenue from Contracts with Customers" (Topic 606) as the service revenues are the predominant components in the arrangements. Rent expense for operating leases is recognized on a straight-line basis over the term of the lease and is included in either Cost of services or Selling, general and administrative expense in our condensed consolidated statements of income, based on the use of the facility on which rent is being paid. Variable rent payments related to both operating and finance leases are expensed in the period incurred. Our variable lease payments consist of payments dependent on various external indicators, including real estate taxes, common area maintenance charges and utility usage. Operating leases with a term of 12 months or less are not recorded on the balance sheet; we recognize a rent expense for these leases on a straight-line basis over the lease term. We recognize the amortization of the right-of-use asset for our finance leases on a straight-line basis over the shorter of the term of the lease or the useful life of the right-of-use asset in Depreciation and amortization expense in our condensed consolidated statements of income. The interest expense related to finance leases is recognized using the effective interest method based on the discount rate determined at lease commencement and is included within Interest expense in our condensed consolidated statements of income. See Note 5 for additional information related to leases, including disclosure required under Topic 842. Recently Issued Accounting Standards The following ASUs have been recently issued by the FASB. Description Date of Adoption Effect on Financial Statements ASU 2016-13, ASU 2018-19, ASU 2019-04, ASU 2019-05, Financial Instruments - Credit Losses (Topic 326) In June 2016, the FASB issued this standard update which requires certain financial assets be measured at amortized cost net of an allowance for estimated credit losses such that the net receivable represents the present value of expected cash collection. In addition, this standard update requires that certain financial assets be measured at amortized cost reflecting an allowance for estimated credit losses expected to occur over the life of the assets. The estimate of credit losses must be based on all relevant information including historical information, current conditions and reasonable and supportable forecasts that affect the collectability of the amounts. An entity will apply the update through a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (January 1, 2020). A prospective transition approach is required for debt securities for which an other-than-temporary impairment has been recognized before the effective date. Early adoption of this standard is permitted. 1/1/2020 We are currently evaluating the impacts that this standard update will have on our various financial assets, which we expect to include, but are not limited to, our device payment plan agreement receivables, service receivables and contract assets. We have established a cross-functional coordinated team to implement the standard update. We are in the process of determining the potential impacts to our processes, including allowance estimation models, and internal controls in order to meet the standard update's accounting and reporting requirements. |
Revenues and Contract Costs
Revenues and Contract Costs | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues and Contract Costs | Note 2. Revenues and Contract Costs We earn revenue from contracts with customers, primarily through the provision of telecommunications and other services and through the sale of wireless equipment. Revenue by Category We have two reportable segments that we operate and manage as strategic business units - Consumer and Business. Revenue is disaggregated by products and services within Consumer, and customer groups (Global Enterprise, Small and Medium Business, Public Sector and Other, and Wholesale) within Business. See Note 11 for additional information on revenue by segment. Corporate and other includes the results of our media business, Verizon Media Group (Verizon Media), which operated under the "Oath" brand until January 2019, and other businesses . Verizon Media generated revenues from contracts with customers under Topic 606 of approximately $1.8 billion and $3.6 billion , during the three and six months ended June 30, 2019 , respectively. Verizon Media generated revenues from contracts with customers under Topic 606 of approximately $1.9 billion and $3.8 billion during the three and six months ended June 30, 2018 , respectively. We also earn revenues, that are not accounted for under Topic 606, from leasing arrangements (such as towers), captive reinsurance arrangements primarily related to wireless device insurance and the interest on equipment financed on a device payment plan agreement when sold to the customer by an authorized agent. As allowed by the practical expedient within Topic 842, we have elected to combine the lease and non-lease components for those arrangements of customer premise equipment where we are the lessor as components accounted for under Topic 606. During the three and six months ended June 30, 2019 , revenues from arrangements that were not accounted for under Topic 606 were approximately $797 million and $1.6 billion , respectively. During the three and six months ended June 30, 2018 , revenues from arrangements that were not accounted for under Topic 606 were approximately $1.1 billion and $2.3 billion , respectively. Remaining Performance Obligations When allocating the total contract transaction price to identified performance obligations, a portion of the total transaction price may relate to service performance obligations which were not satisfied or are partially satisfied as of the end of the reporting period. Below we disclose information relating to these unsatisfied performance obligations. Upon adoption, we elected to apply the practical expedient available under Topic 606 that provides the option to exclude the expected revenues arising from unsatisfied performance obligations related to contracts that have an original expected duration of one year or less. This situation primarily arises with respect to certain month-to-month service contracts. At June 30, 2019 , month-to-month service contracts represented approximately 87% of our wireless postpaid contracts and approximately 57% of our wireline Consumer and Small and Medium Business contracts, compared to June 30, 2018 , for which month-to-month service contracts represented approximately 83% of our wireless postpaid contracts and 56% of our wireline Consumer and Small and Medium Business contracts . Additionally, certain contracts provide customers the option to purchase additional services. The fees related to these additional services are recognized when the customer exercises the option (typically on a month-to-month basis). Contracts for wireless services are generally either month-to-month and cancellable at any time (typically under a device payment plan) or contain terms ranging from greater than one month to up to two years (typically under a fixed-term plan). Additionally, customers may incur charges based on usage or additional optional services purchased in conjunction with entering into a contract that can be cancelled at any time and therefore are not included in the transaction price. The transaction price allocated to service performance obligations, which are not satisfied or are partially satisfied as of the end of the reporting period, are generally related to our fixed-term plans. Our Consumer group customers also include other telecommunications companies who utilize Verizon's networks to resell wireless service to their respective end customers. Reseller arrangements generally include a stated contract term, which typically extends longer than two years. These arrangements generally include an annual minimum revenue commitment over the term of the contract for which revenues will be recognized in future periods. Consumer customer contracts for wireline services generally have a service term of two years ; however, this term may be shorter than twelve months or may be month-to-month. Certain contracts with Business customers for wireline services extend into future periods, contain fixed monthly fees and usage-based fees, and can include annual commitments in each year of the contract or commitments over the entire specified contract term; however, a significant number of contracts for wireline services with our Business customers have a contract term that is twelve months or less. Additionally, there are certain contracts with Business customers for wireline services that have a contractual minimum fee over the total contract term. We cannot predict the time period when revenue will be recognized related to those contracts; thus, they are excluded from the time bands below. These contracts have varying terms spanning over approximately five years ending in June 2024 and have aggregate contract minimum payments totaling $3.9 billion . At June 30, 2019 , the transaction price related to unsatisfied performance obligations for total Verizon that is expected to be recognized for 2019, 2020 and thereafter was $10.8 billion , $14.7 billion and $5.9 billion , respectively. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations and changes in the timing and scope of contracts, arising from contract modifications. Accounts Receivable and Contract Balances The timing of revenue recognition may differ from the time of billing to our customers. Receivables presented in our consolidated balance sheet represent an unconditional right to consideration. Contract balances represent amounts from an arrangement when either Verizon has performed, by transferring goods or services to the customer in advance of receiving all or partial consideration for such goods and services from the customer, or the customer has made payment to Verizon in advance of obtaining control of the goods and/or services promised to the customer in the contract. Contract assets primarily relate to our rights to consideration for goods or services provided to customers but for which we do not have an unconditional right at the reporting date. Under a fixed-term plan, total contract revenue is allocated between wireless service and equipment revenues. In conjunction with these arrangements, a contract asset is created, which represents the difference between the amount of equipment revenue recognized upon sale and the amount of consideration received from the customer when the performance obligation related to the transfer of control of the equipment is satisfied. The contract asset is reclassified to accounts receivable as wireless services are provided and billed. We have the right to bill the customer as service is provided over time, which results in our right to the payment being unconditional. The contract asset balances are presented in our consolidated balance sheet as Prepaid expenses and other and Other assets. We assess our contract assets for impairment on a quarterly basis and will recognize an impairment charge to the extent their carrying amount is not recoverable. Contract liabilities arise when we bill our customers and receive consideration in advance of providing the goods or services promised in the contract. We typically bill service one month in advance, which is the primary component of the contract liability balance. Contract liabilities are recognized as revenue when services are provided to the customer. The contract liability balances are presented in our condensed consolidated balance sheet as Other current liabilities and Other liabilities. The following table presents information about receivables from contracts with customers: At June 30, At January 1, At June 30, At January 1, (dollars in millions) 2019 2019 2018 2018 Receivables (1) $ 12,173 $ 12,104 $ 11,412 $ 12,073 Device payment plan agreement receivables (2) 10,053 8,940 5,258 1,461 (1) Balances do not include receivables related to the following contracts: leasing arrangements (such as towers), captive reinsurance arrangements primarily related to wireless device insurance and the interest on equipment financed on a device payment plan agreement when sold to the customer by an authorized agent. (2) Included in device payment plan agreement receivables presented in Note 7 . Balances do not include receivables related to contracts completed prior to January 1, 2018 and receivables derived from the sale of equipment on a device payment plan through an authorized agent. The following table presents information about contract balances: At June 30, At January 1, At June 30, At January 1, 2019 2019 2018 2018 Contract asset $ 1,059 $ 1,003 $ 1,059 $ 1,170 Contract liability (1) 4,946 4,943 4,652 4,452 (1) Revenue recognized related to contract liabilities existing at January 1, 2019 and January 1, 2018 were $194 million and $3.9 billion , for the three and six months ended June 30, 2019 , respectively, and $327 million and $3.8 billion , for the three and six months ended June 30, 2018 . The balance of contract assets and contract liabilities recorded in our condensed consolidated balance sheet were as follows: At June 30, At December 31, (dollars in millions) 2019 2018 Assets Prepaid expenses and other $ 812 $ 757 Other assets 247 246 Total $ 1,059 $ 1,003 Liabilities Other current liabilities $ 4,323 $ 4,207 Other liabilities 623 736 Total $ 4,946 $ 4,943 Contract Costs Topic 606 requires the recognition of an asset for incremental costs to obtain a customer contract, which are then amortized to expense over the respective periods of expected benefit. We recognize an asset for incremental commission expenses paid to internal and external sales personnel and agents in conjunction with obtaining customer contracts. We only defer these costs when we have determined the commissions are incremental costs that would not have been incurred absent the customer contract and are expected to be recoverable. Costs to obtain a contract are amortized and recorded ratably as commission expense over the period representing the transfer of goods or services to which the assets relate. Costs to obtain wireless contracts are amortized over both of our Consumer and Business customers' estimated device upgrade cycles, as such costs are typically incurred each time a customer upgrades. Costs to obtain wireline contracts are amortized as expense over the estimated customer relationship period for our Consumer customers. Incremental costs to obtain wireline contracts for our Business customers are insignificant. We also defer costs incurred to fulfill contracts that: (1) relate directly to the contract; (2) are expected to generate resources that will be used to satisfy our performance obligation under the contract; and (3) are expected to be recovered through revenue generated under the contract. Contract fulfillment costs are expensed as we satisfy our performance obligations and recorded in Cost of services. These costs principally relate to direct costs that enhance our wireline business resources, such as costs incurred to install circuits. Costs to obtain contracts are recorded in Selling, general and administrative expense. We determine the amortization periods for our costs incurred to obtain or fulfill a customer contract at a portfolio level due to the similarities within these customer contract portfolios. Other costs, such as general costs or costs related to past performance obligations, are expensed as incurred. Collectively, costs to obtain a contract and costs to fulfill a contract are referred to as Deferred contract costs, and amortized over a two- to five-year period. Deferred contract costs are classified as current or non-current within Prepaid expenses and other and Other assets, respectively. The balances of Deferred contract costs included in our condensed consolidated balance sheet were as follows: At June 30, At December 31, (dollars in millions) 2019 2018 Assets Prepaid expenses and other $ 2,352 $ 2,083 Other assets 1,774 1,812 Total $ 4,126 $ 3,895 For the three and six months ended June 30, 2019 , we recognized expense of $639 million and $1.3 billion , respectively, associated with the amortization of Deferred contract costs, primarily within Selling, general and administrative expense in our condensed consolidated statements of income. For the three and six months ended June 30, 2018 , we recognized expense of $471 million and $877 million , respectively, associated with the amortization of Deferred contract costs, primarily within Selling, general and administrative expense in our condensed consolidated statements of income. We assess our Deferred contract costs for impairment on a quarterly basis. We recognize an impairment charge to the extent the carrying amount of a deferred cost exceeds the remaining amount of consideration we expect to receive in exchange for the goods and services related to the cost, less the expected costs related directly to providing those goods and services that have not yet been recognized as expenses. There have been no impairment charges recognized for the three and six months ended June 30, 2019 or June 30, 2018 . |
Acquisitions and Divestitures
Acquisitions and Divestitures | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Note 3. Acquisitions and Divestitures Spectrum License Transactions In 2019, the Federal Communications Commission (FCC) completed two millimeter wave spectrum license auctions. Verizon participated in these auctions and was the high bidder on 9 and 1,066 licenses, respectively, in the 24 Gigahertz (GHz) and 28 GHz bands. We submitted an application to the FCC and paid cash of approximately $521 million for the licenses that will be issued. The deposits related to these spectrum licenses are classified within Other assets in our condensed consolidated balance sheets as of June 30, 2019. During both the three and six months ended June 30, 2019 , we entered into and completed various other wireless license transactions for an insignificant amount of cash consideration. Other During both the three and six months ended June 30, 2019 , we completed various other acquisitions for an insignificant amount of cash consideration. |
Wireless Licenses, Goodwill and
Wireless Licenses, Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Wireless Licenses, Goodwill and Other Intangible Assets | Note 4. Wireless Licenses, Goodwill, and Other Intangible Assets Wireless Licenses The carrying amounts of Wireless licenses are as follows: At June 30, At December 31, (dollars in millions) 2019 2018 Wireless licenses $ 94,333 $ 94,130 At June 30, 2019 and 2018 , approximately $6.6 billion and $11.5 billion , respectively, of wireless licenses were under development for commercial service for which we were capitalizing interest costs. We recorded approximately $168 million and $269 million of capitalized interest on wireless licenses for the six months ended June 30, 2019 and 2018 , respectively. The average remaining renewal period of our wireless licenses portfolio was 4.3 years as of June 30, 2019 . Goodwill The Company transitioned into our new reporting structure as of April 1, 2019. The table below shows the reallocation of goodwill from our historical reporting structure to our current reporting structure. Changes in the carrying amount of Goodwill are as follows: (dollars in millions) Consumer Business Wireless Wireline Other Total Balance at January 1, 2019 (1) $ — $ — $ 18,397 $ 3,871 $ 2,346 $ 24,614 Acquisitions — — — 20 — 20 Reclassifications, adjustments and other — — — 1 — 1 Balance at March 31, 2019 — — 18,397 3,892 2,346 24,635 Reporting Unit reallocation (2) 17,104 7,269 (18,397 ) (3,892 ) (2,084 ) — Balance at April 1, 2019 17,104 7,269 — — 262 24,635 Acquisitions — 1 — — — 1 Reclassifications, adjustments and other — (4 ) — — — (4 ) Balance at June 30, 2019 $ 17,104 $ 7,266 $ — $ — $ 262 $ 24,632 (1) Goodwill is net of accumulated impairment charge of $4.6 billion , related to our Media reporting unit (included within Other in the table above), which was recorded in the fourth quarter of 2018. (2) Represents the reallocation of goodwill as a result of the Company reorganizing its segments as described in Note 1. Other Intangible Assets The following table displays the composition of Other intangible assets, net: At June 30, 2019 At December 31, 2018 (dollars in millions) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Customer lists (8 to 13 years) $ 3,948 $ (1,299 ) $ 2,649 $ 3,951 $ (1,121 ) $ 2,830 Non-network internal-use software (3 to 7 years) 19,354 (13,589 ) 5,765 18,603 (12,785 ) 5,818 Other (2 to 25 years) 1,985 (925 ) 1,060 1,988 (861 ) 1,127 Total $ 25,287 $ (15,813 ) $ 9,474 $ 24,542 $ (14,767 ) $ 9,775 The amortization expense for Other intangible assets was as follows: Three Months Ended Six Months Ended (dollars in millions) June 30, June 30, 2019 $ 569 $ 1,124 2018 557 1,091 The estimated future amortization expense for Other intangible assets for the remainder of the current year and next 5 years is as follows: Years (dollars in millions) Remainder of 2019 $ 1,086 2020 1,903 2021 1,610 2022 1,335 2023 1,049 2024 795 |
Leasing Arrangements
Leasing Arrangements | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leasing Arrangements | Note 5. Leasing Arrangements We enter into various lease arrangements for network equipment including towers, distributed antenna systems, small cells, real estate and connectivity mediums including dark fiber, equipment leases, and other various types of assets for use in our operations. Our leases have remaining lease terms ranging from 1 year to 24 years , some of which include options that we can elect to extend the leases term for up to 25 years , and some of which include options to terminate the leases. For the majority of leases entered into during the current period, we have concluded it is not reasonably certain that we would exercise the options to extend the lease or terminate the lease. Therefore, as of the lease commencement date, our lease terms generally do not include these options. We include options to extend the lease when it is reasonably certain that we will exercise that option. During March 2015, we completed a transaction with American Tower Corporation (American Tower) pursuant to which American Tower acquired the exclusive rights to lease and operate approximately 11,300 of our wireless towers for an upfront payment of $5.0 billion . We have subleased capacity on the towers from American Tower for a minimum of 10 years at current market rates in 2015, with options to renew. We continue to include the towers in Property, plant and equipment, net in our condensed consolidated balance sheets and depreciate them accordingly. In addition to the rights to lease and operate the towers, American Tower assumed the interest in the underlying ground leases related to these towers. While American Tower can renegotiate the terms of and is responsible for paying the ground leases, we are still the primary obligor for these leases and accordingly, the present value of these ground leases are included in our operating lease right-of-use assets and operating lease liabilities. We do not expect to be required to make ground lease payments unless American Tower defaults, which we determined to be remote. The components of net lease cost were as follows: Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) Classification 2019 2019 Operating lease cost (1) Cost of services Selling, general and administrative expense $ 1,178 $ 2,348 Finance lease cost: Amortization of right-of-use assets Depreciation and amortization expense 82 168 Interest on lease liabilities Interest expense 10 19 Short-term lease cost (1) Cost of services Selling, general and administrative expense 8 24 Variable lease cost (1) Cost of services 51 108 Sublease income Service revenues and other (67 ) (134 ) Total net lease cost $ 1,262 $ 2,533 (1) All operating lease costs, including short-term and variable lease costs, are split between Cost of services and Selling, general and administrative expense in the condensed consolidated statements of income based on the use of the facility that the rent is being paid on. See Note 1 for additional information. Variable lease costs represent payments that are dependent on a rate or index, or on usage of the asset. Supplemental disclosure for the statement of cash flows related to operating and finance leases were as follows: Six Months Ended June 30, (dollars in millions) 2019 Cash Flows from Operating Activities Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ (2,089 ) Operating cash flows for finance leases (19 ) Cash Flows from Financing Activities Financing cash flows for finance leases (178 ) Supplemental lease cash flow disclosures Operating lease right-of-use assets obtained in exchange for new operating lease liabilities 1,300 Right-of-use assets obtained in exchange for new finance lease liabilities 221 Supplemental disclosures for the balance sheet related to finance leases were as follows: At June 30, (dollars in millions) 2019 Assets Property, plant and equipment, net $ 823 Liabilities Debt maturing within one year $ 321 Long-term debt 627 Total Finance lease liabilities $ 948 The weighted-average remaining lease term and the weighted-average discount rate of our leases were as follows: At June 30, 2019 Weighted-average remaining lease term (years) Operating Leases 9 Finance Leases 4 Weighted-average discount rate Operating Leases 4.1 % Finance Leases 4.0 % The Company's maturity analysis of operating and finance lease liabilities as of June 30, 2019 were as follows: (dollars in millions) Operating Leases Finance Leases Remainder of 2019 $ 1,996 $ 178 2020 3,840 291 2021 3,460 198 2022 3,067 137 2023 2,713 88 Thereafter 11,094 144 Total lease payments 26,170 1,036 Less interest (4,762 ) (88 ) Present value of lease liabilities 21,408 948 Less current obligation (3,154 ) (321 ) Long-term obligation at June 30, 2019 $ 18,254 $ 627 As of June 30, 2019 , we have contractually obligated lease payments amounting to $477 million for an office facility operating lease that has not yet commenced. We have legally obligated lease payments for various other operating leases that have not yet commenced for which the total obligation was not significant. We have certain rights and obligations for these leases, but have not recognized an operating lease right-of-use asset or an operating lease liability since they have not yet commenced. Real Estate Transaction On July 23, 2019, Verizon completed a sale-leaseback transaction for buildings and real estate. We received total gross proceeds of $1.0 billion . We lease backed a portion of the buildings and real estate sold and accounted for it as an operating lease. The term of the leaseback is for two years with four options to renew for an additional three months each. |
Leasing Arrangements | Note 5. Leasing Arrangements We enter into various lease arrangements for network equipment including towers, distributed antenna systems, small cells, real estate and connectivity mediums including dark fiber, equipment leases, and other various types of assets for use in our operations. Our leases have remaining lease terms ranging from 1 year to 24 years , some of which include options that we can elect to extend the leases term for up to 25 years , and some of which include options to terminate the leases. For the majority of leases entered into during the current period, we have concluded it is not reasonably certain that we would exercise the options to extend the lease or terminate the lease. Therefore, as of the lease commencement date, our lease terms generally do not include these options. We include options to extend the lease when it is reasonably certain that we will exercise that option. During March 2015, we completed a transaction with American Tower Corporation (American Tower) pursuant to which American Tower acquired the exclusive rights to lease and operate approximately 11,300 of our wireless towers for an upfront payment of $5.0 billion . We have subleased capacity on the towers from American Tower for a minimum of 10 years at current market rates in 2015, with options to renew. We continue to include the towers in Property, plant and equipment, net in our condensed consolidated balance sheets and depreciate them accordingly. In addition to the rights to lease and operate the towers, American Tower assumed the interest in the underlying ground leases related to these towers. While American Tower can renegotiate the terms of and is responsible for paying the ground leases, we are still the primary obligor for these leases and accordingly, the present value of these ground leases are included in our operating lease right-of-use assets and operating lease liabilities. We do not expect to be required to make ground lease payments unless American Tower defaults, which we determined to be remote. The components of net lease cost were as follows: Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) Classification 2019 2019 Operating lease cost (1) Cost of services Selling, general and administrative expense $ 1,178 $ 2,348 Finance lease cost: Amortization of right-of-use assets Depreciation and amortization expense 82 168 Interest on lease liabilities Interest expense 10 19 Short-term lease cost (1) Cost of services Selling, general and administrative expense 8 24 Variable lease cost (1) Cost of services 51 108 Sublease income Service revenues and other (67 ) (134 ) Total net lease cost $ 1,262 $ 2,533 (1) All operating lease costs, including short-term and variable lease costs, are split between Cost of services and Selling, general and administrative expense in the condensed consolidated statements of income based on the use of the facility that the rent is being paid on. See Note 1 for additional information. Variable lease costs represent payments that are dependent on a rate or index, or on usage of the asset. Supplemental disclosure for the statement of cash flows related to operating and finance leases were as follows: Six Months Ended June 30, (dollars in millions) 2019 Cash Flows from Operating Activities Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ (2,089 ) Operating cash flows for finance leases (19 ) Cash Flows from Financing Activities Financing cash flows for finance leases (178 ) Supplemental lease cash flow disclosures Operating lease right-of-use assets obtained in exchange for new operating lease liabilities 1,300 Right-of-use assets obtained in exchange for new finance lease liabilities 221 Supplemental disclosures for the balance sheet related to finance leases were as follows: At June 30, (dollars in millions) 2019 Assets Property, plant and equipment, net $ 823 Liabilities Debt maturing within one year $ 321 Long-term debt 627 Total Finance lease liabilities $ 948 The weighted-average remaining lease term and the weighted-average discount rate of our leases were as follows: At June 30, 2019 Weighted-average remaining lease term (years) Operating Leases 9 Finance Leases 4 Weighted-average discount rate Operating Leases 4.1 % Finance Leases 4.0 % The Company's maturity analysis of operating and finance lease liabilities as of June 30, 2019 were as follows: (dollars in millions) Operating Leases Finance Leases Remainder of 2019 $ 1,996 $ 178 2020 3,840 291 2021 3,460 198 2022 3,067 137 2023 2,713 88 Thereafter 11,094 144 Total lease payments 26,170 1,036 Less interest (4,762 ) (88 ) Present value of lease liabilities 21,408 948 Less current obligation (3,154 ) (321 ) Long-term obligation at June 30, 2019 $ 18,254 $ 627 As of June 30, 2019 , we have contractually obligated lease payments amounting to $477 million for an office facility operating lease that has not yet commenced. We have legally obligated lease payments for various other operating leases that have not yet commenced for which the total obligation was not significant. We have certain rights and obligations for these leases, but have not recognized an operating lease right-of-use asset or an operating lease liability since they have not yet commenced. Real Estate Transaction On July 23, 2019, Verizon completed a sale-leaseback transaction for buildings and real estate. We received total gross proceeds of $1.0 billion . We lease backed a portion of the buildings and real estate sold and accounted for it as an operating lease. The term of the leaseback is for two years with four options to renew for an additional three months each. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 6. Debt Significant Debt Transactions The following table shows the transactions that occurred during the six months ended June 30, 2019. February Exchange Offers (dollars in millions) Principal Amount Exchanged Principal Amount Issued Verizon 1.750% - 5.150% notes and floating rate notes, due 2021 - 2025 $ 3,892 $ — GTE LLC 8.750% debentures, due 2021 21 — Verizon 4.016% notes due 2029 (1) — 4,000 Total $ 3,913 $ 4,000 (1) Total exchange amount issued in consideration does not include an insignificant amount of cash used to settle. May Tender Offers (dollars in millions) Principal Amount Purchased Cash Consideration (1) Verizon 5.012% notes due 2054 $ 3,192 $ 3,626 Verizon 4.672% notes due 2055 1,308 1,404 Total $ 4,500 $ 5,030 (1) In addition to the purchase price, any accrued and unpaid interest on the purchased notes was paid to the date of purchase. Debt Redemptions, Repurchases and Repayments (dollars in millions) Principal Redeemed / Repaid Amount Paid as % of Principal (1) March 2019 Verizon 5.900% notes due 2054 $ 500 100.000 % Verizon 1.375% notes due 2019 206 100.000 % Verizon 1.750% notes due 2021 621 100.000 % Verizon 3.000% notes due 2021 930 101.061 % Verizon 3.500% notes due 2021 315 102.180 % Open market repurchases of various Verizon notes 163 Various March 2019 total 2,735 June 2019 Verizon 2.625% notes due 2020 831 100.037 % Verizon 3.500% notes due 2021 736 102.238 % Verizon floating rate (LIBOR + 0.770%) notes due 2019 229 100.000 % June 2019 total 1,796 Total $ 4,531 (1) Percentages represent price paid to redeem, repurchase and repay. Debt Issuances (amounts in millions) Principal Amount Issued Net Proceeds (1) March 2019 Verizon 3.875% notes due 2029 (2) $ 1,000 $ 994 Verizon 5.000% notes due 2051 510 506 March 2019 total $ 1,510 $ 1,500 June 2019 Verizon 0.875% notes due 2027 € 1,250 1,391 Verizon 1.250% notes due 2030 € 1,250 1,385 Verizon 2.500% notes due 2031 £ 500 647 June 2019 total 3,423 Total $ 4,923 (1) Net proceeds were net of discount and issuance costs. (2) An amount equal to the net proceeds from this green bond will be used to fund, in whole or in part, "Eligible Green Investments." "Eligible Green Investments" include new and existing investments made by us during the period from two years prior to the issuance of the green bond through the maturity date of the green bond, in the following categories: (1) renewable energy; (2) energy efficiency; (3) green buildings; (4) sustainable water management; and (5) biodiversity and conservation. Short-Term Borrowing and Commercial Paper Program During the three months ended June 30, 2019 , we repaid $600 million in aggregate from the short term credit facility and there was no outstanding balance as of June 30, 2019 . As of June 30, 2019 , we had $200 million of commercial paper outstanding. Asset-Backed Debt As of June 30, 2019 , the carrying value of our asset-backed debt was $11.3 billion . Our asset-backed debt includes Asset-Backed Notes (ABS Notes) issued to third-party investors (Investors) and loans (ABS Financing Facilities) received from banks and their conduit facilities (collectively, the Banks). Our consolidated asset-backed debt bankruptcy remote legal entities (each, an ABS Entity or collectively, the ABS Entities) issue the debt or are otherwise party to the transaction documentation in connection with our asset-backed debt transactions. Under the terms of our asset-backed debt, Cellco Partnership (Cellco) and certain other affiliates of Verizon (collectively, the Originators) transfer device payment plan agreement receivables to one of the ABS Entities, which in turn transfers such receivables to another ABS Entity that issues the debt. Verizon entities retain the equity interests in the ABS Entities, which represent the rights to all funds not needed to make required payments on the asset-backed debt and other related payments and expenses. Our asset-backed debt is secured by the transferred device payment plan agreement receivables and future collections on such receivables. The device payment plan agreement receivables transferred to the ABS Entities and related assets, consisting primarily of restricted cash, will only be available for payment of asset-backed debt and expenses related thereto, payments to the Originators in respect of additional transfers of device payment plan agreement receivables, and other obligations arising from our asset-backed debt transactions, and will not be available to pay other obligations or claims of Verizon’s creditors until the associated asset-backed debt and other obligations are satisfied. The Investors or Banks, as applicable, which hold our asset-backed debt have legal recourse to the assets securing the debt, but do not have any recourse to Verizon with respect to the payment of principal and interest on the debt. Under a parent support agreement, Verizon has agreed to guarantee certain of the payment obligations of Cellco and the Originators to the ABS Entities. Cash collections on the device payment plan agreement receivables collateralizing asset-backed debt securities are required at certain specified times to be placed into segregated accounts. Deposits to the segregated accounts are considered restricted cash and are included in Prepaid expenses and other and Other assets in our condensed consolidated balance sheets. Proceeds from our asset-backed debt transactions are reflected in Cash flows from financing activities in our condensed consolidated statements of cash flows. The asset-backed debt issued and the assets securing this debt are included in our condensed consolidated balance sheets. ABS Notes During the six months ended June 30, 2019 , we completed the following ABS Notes transactions: (dollars in millions) Interest Rates % Expected Weighted-average Life to Maturity (in years) Principal Amount Issued March 2019 A-1a Senior class notes 2.930 2.50 $ 900 A-1b Senior floating rate class notes LIBOR + 0.330 (1) 2.50 100 B Junior class notes 3.020 3.22 69 C Junior class notes 3.220 3.40 53 March 2019 total 1,122 June 2019 A-1a Senior class notes 2.330 2.52 855 A-1b Senior floating rate class notes LIBOR + 0.450 (1) 2.52 145 B Junior class notes 2.400 3.28 69 C Junior class notes 2.600 3.47 53 June 2019 total 1,122 Total $ 2,244 (1) The one-month London Interbank Offered Rate (LIBOR) rate at June 30, 2019 was 2.398% . Under the terms of each series of ABS Notes, there is a two year revolving period during which we may transfer additional receivables to the ABS Entity. In April 2019, the two year revolving period of the ABS Notes issued in March 2017 ended and we began to repay principal on the 2017-1 Class A senior ABS Notes. During the three and six months ended June 30, 2019 , we made aggregate principal repayments of $794 million and $1.4 billion , respectively, for all ABS Notes. ABS Financing Facilities In May 2018, we entered into an ABS financing facility with a number of financial institutions (2018 ABS Financing Facility). One loan agreement was entered into in connection with the 2018 ABS financing facility. During the three months ended June 30, 2019 , the remaining $540 million outstanding under the loan agreement was prepaid, and the loan agreement was terminated. In September 2016, we entered into an ABS Financing Facility with a number of financial institutions, which was amended and restated in May 2019 (2019 ABS Financing Facility). Under the terms of the 2019 ABS Financing Facility, the financial institutions made advances under asset-backed loans backed by device payment plan agreement receivables of both consumer and business customers. Two loan agreements were entered into in connection with the 2019 ABS Financing Facility in September 2016 and May 2017 and a third was entered into in May 2019. The 2016 and 2017 loan agreements had a final maturity date in March 2021 and bore interest at a floating rate. The two year revolving period of the two loan agreements ended in September 2018. The 2019 loan agreement has a final maturity date in May 2023 and bears interest at floating rates. There is a one year revolving period until May 2020, which may be extended with the approval of the financial institutions. Under all of the loan agreements, we have the right to prepay all or a portion of the advances at any time without penalty, but in certain cases, with breakage costs. Subject to certain conditions, we may also remove receivables from the ABS Entity. During the three months ended June 30, 2019 , we paid off both the 2016 and 2017 loans for an aggregate of $671 million primarily with proceeds from the 2019 loan agreement. As of June 30, 2019 , there was an outstanding balance under the 2019 ABS Financing Facility of $1.8 billion . In August 2019, we prepaid $1.5 billion of the loan made in May 2019 under the 2019 ABS Financing Facility. Variable Interest Entities (VIEs) The ABS Entities meet the definition of a VIE for which we have determined that we are the primary beneficiary as we have both the power to direct the activities of the entity that most significantly impact the entity’s performance and the obligation to absorb losses or the right to receive benefits of the entity. Therefore, the assets, liabilities and activities of the ABS Entities are consolidated in our financial results and are included in amounts presented on the face of our condensed consolidated balance sheets. The assets and liabilities related to our asset-backed debt arrangements included in our condensed consolidated balance sheets were as follows: At June 30, At December 31, (dollars in millions) 2019 2018 Assets Account receivable, net $ 10,095 $ 8,861 Prepaid expenses and other 1,020 989 Other assets 3,353 2,725 Liabilities Accounts payable and accrued liabilities 11 7 Short-term portion of long-term debt 4,477 5,352 Long-term debt 6,775 4,724 See Note 7 for additional information on device payment plan agreement receivables used to secure asset-backed debt. Credit Facilities As of June 30, 2019 , the unused borrowing capacity under our $9.5 billion credit facility was approximately $9.4 billion . The credit facility does not require us to comply with financial covenants or maintain specified credit ratings, and it permits us to borrow even if our business has incurred a material adverse change. We use the credit facility for the issuance of letters of credit and for general corporate purposes. In March 2016, we entered into a $1.0 billion credit facility insured by Eksportkreditnamnden, an export credit agency with a maturity date of December 2024. As of June 30, 2019 , the outstanding balance was $647 million . We used this credit facility to finance network equipment-related purchases. In July 2017 , we entered into credit facilities insured by various export credit agencies providing us with the ability to borrow up to $4.0 billion to finance equipment-related purchases with maturity dates ranging from July 2022 to May 2027. The facilities have multiple borrowings available, portions of which extend through October 2019 , contingent upon the amount of eligible equipment-related purchases that we make. During the three and six months ended June 30, 2019 , we drew down $450 million and $874 million , respectively, from these facilities. During the six months ended June 30, 2018, we drew down $1.7 billion from these facilities. As of June 30, 2019 , we had an outstanding balance of $3.5 billion . Non-Cash Transaction During the six months ended June 30, 2019 and 2018 , we financed, primarily through vendor financing arrangements, the purchase of approximately $221 million and $862 million respectively, of long-lived assets consisting primarily of network equipment. At both June 30, 2019 and 2018, $1.0 billion and $1.4 billion , respectively, relating to these financing arrangements, including those entered into in prior years and liabilities assumed through acquisitions, remained outstanding. These purchases are non-cash financing activities and therefore are not reflected within Capital expenditures in our condensed consolidated statements of cash flows. Early Debt Redemptions During both the three and six months ended June 30, 2019 , we recorded losses on early debt redemptions of $1.5 billion related to the May tender offers and other insignificant transactions, which were recorded in Other income (expense), net in our condensed consolidated statements of income. During the six months ended June 30, 2018, we recorded losses on early debt redemptions of $249 million related to the 2018 March tender offers for 13 series of notes issued by Verizon with coupon rates ranging from 1.750% to 5.012% and maturity dates ranging from 2021 to 2055, which were recorded in Other income (expense), net in our condensed consolidated statements of income. Guarantees We guarantee the debentures of our operating telephone company subsidiaries. As of June 30, 2019 , $796 million aggregate principal amount of these obligations remained outstanding. Each guarantee will remain in place for the life of the obligation unless terminated pursuant to its terms, including the operating telephone company no longer being a wholly-owned subsidiary of Verizon. We also guarantee the debt obligations of GTE LLC as successor in interest to GTE Corporation that were issued and outstanding prior to July 1, 2003. As of June 30, 2019 , $423 million aggregate principal amount of these obligations remained outstanding. |
Wireless Device Payment Plans
Wireless Device Payment Plans | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Wireless Device Payment Plans | Note 7. Wireless Device Payment Plans Under the Verizon device payment program, our eligible wireless customers purchase wireless devices under a device payment plan agreement. Customers that activate service on devices purchased under the device payment program pay lower service fees as compared to those under our fixed-term service plans, and their device payment plan charge is included on their wireless monthly bill. As of January 2017, we no longer offer Consumer customers new fixed-term, subsidized service plans for phones; however, we continue to offer subsidized plans to our Business customers. We also continue to service existing plans for customers who have not yet purchased and activated devices under the Verizon device payment program. Wireless Device Payment Plan Agreement Receivables The following table displays device payment plan agreement receivables, net, recognized in our condensed consolidated balance sheets: At June 30, At December 31, (dollars in millions) 2019 2018 Device payment plan agreement receivables, gross $ 18,327 $ 19,313 Unamortized imputed interest (455 ) (546 ) Device payment plan agreement receivables, net of unamortized imputed interest 17,872 18,767 Allowance for credit losses (487 ) (597 ) Device payment plan agreement receivables, net $ 17,385 $ 18,170 Classified in our condensed consolidated balance sheets: Accounts receivable, net $ 12,486 $ 12,624 Other assets 4,899 5,546 Device payment plan agreement receivables, net $ 17,385 $ 18,170 Included in our device payment plan agreement receivables, net at June 30, 2019 and December 31, 2018 , are net device payment plan agreement receivables of $13.4 billion and $11.5 billion , respectively, that have been transferred to ABS Entities and continue to be reported in our condensed consolidated balance sheets. See Note 6 for additional information. We believe the carrying value of our installment loans receivables approximate their fair value using a Level 3 expected cash flow model. We may offer certain promotions that allow a customer to trade in their owned device in connection with the purchase of a new device. Under these types of promotions, the customer receives a credit for the value of the trade-in device. In addition, we may provide the customer with additional future credits that will be applied against the customer’s monthly bill as long as service is maintained. We recognize a liability for the trade-in device measured at fair value, which is determined by considering several factors, including the weighted-average selling prices obtained in recent resales of similar devices eligible for trade-in. Future credits are recognized when earned by the customer. Device payment plan agreement receivables, net does not reflect the trade-in device liability. At June 30, 2019 and December 31, 2018 the amount of trade-in liability was $60 million and $64 million , respectively. From time to time, we offer certain marketing promotions that allow our customers to upgrade to a new device after paying down a certain specified portion of the required device payment plan agreement amount as well as trading in their device in good working order. When a customer enters into a device payment plan agreement with the right to upgrade to a new device, we account for this trade-in right as a guarantee obligation. For indirect channel wireless contracts with customers, we impute risk adjusted interest on the device payment plan agreement receivables. We record the imputed interest as a reduction to the related accounts receivable. Interest income, which is included within Service revenues and other in our condensed consolidated statements of income, is recognized over the financed device payment term. When originating device payment plan agreements, we use internal and external data sources to create a credit risk score to measure the credit quality of a customer and to determine eligibility for the device payment program. If a customer is either new to Verizon Wireless or has less than 210 days of customer tenure with Verizon Wireless (a new customer), the credit decision process relies more heavily on external data sources. If the customer has 210 days or more of customer tenure with Verizon Wireless (an existing customer), the credit decision process relies on internal data sources. Verizon Wireless’ experience has been that the payment attributes of longer tenured customers are highly predictive for estimating their reliability to make future payments. External data sources include obtaining a credit report from a national consumer credit reporting agency, if available. Verizon Wireless uses its internal data and/or credit data obtained from the credit reporting agencies to create a custom credit risk score. The custom credit risk score is generated automatically (except with respect to a small number of applications where the information needs manual intervention) from the applicant’s credit data using Verizon Wireless’ proprietary custom credit models, which are empirically derived, demonstrably and statistically sound. The credit risk score measures the likelihood that the potential customer will become severely delinquent and be disconnected for non-payment. For a small portion of new customer applications, a traditional credit report is not available from one of the national credit reporting agencies because the potential customer does not have sufficient credit history. In those instances, alternate credit data is used for the risk assessment. Based on the custom credit risk score, we assign each customer to a credit class, each of which has specified offers of credit including an account level spending limit and either a maximum amount of credit allowed per device or a required down payment percentage. During the fourth quarter of 2018 Verizon Wireless moved all customers, new and existing, from a required down payment percentage, between zero and 100% , to a maximum amount of credit per device. Subsequent to origination, Verizon Wireless monitors delinquency and write-off experience as key credit quality indicators for its portfolio of device payment plan agreements and fixed-term service plans. The extent of our collection efforts with respect to a particular customer are based on the results of proprietary custom empirically derived internal behavioral scoring models that analyze the customer’s past performance to predict the likelihood of the customer falling further delinquent. These customer scoring models assess a number of variables, including origination characteristics, customer account history and payment patterns. Based on the score derived from these models, accounts are grouped by risk category to determine the collection strategy to be applied to such accounts. We continuously monitor collection performance results and the credit quality of our device payment plan agreement receivables based on a variety of metrics, including aging. Verizon Wireless considers an account to be delinquent and in default status if there are unpaid charges remaining on the account on the day after the bill’s due date. The balance and aging of the device payment plan agreement receivables on a gross basis were as follows: At June 30, At December 31, (dollars in millions) 2019 2018 Unbilled $ 17,042 $ 18,043 Billed: Current 1,028 986 Past due 257 284 Device payment plan agreement receivables, gross $ 18,327 $ 19,313 Activity in the allowance for credit losses for the device payment plan agreement receivables was as follows: (dollars in millions) 2019 2018 Balance at January 1, $ 597 $ 848 Bad debt expense 401 237 Write-offs (511 ) (331 ) Balance at June 30, $ 487 $ 754 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8. Fair Value Measurements Recurring Fair Value Measurements The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 : (dollars in millions) Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Other assets: Fixed income securities $ — $ 434 $ — $ 434 Interest rate swaps — 529 — 529 Cross currency swaps — 170 — 170 Interest rate caps — 2 — 2 Foreign exchange forwards — 5 — 5 Total $ — $ 1,140 $ — $ 1,140 Liabilities: Other liabilities: Interest rate swaps $ — $ 189 $ — $ 189 Cross currency swaps — 814 — 814 Forward starting interest rate swaps — 536 — 536 Interest rate caps — 1 — 1 Total $ — $ 1,540 $ — $ 1,540 The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 : (dollars in millions) Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Other assets: Fixed income securities $ — $ 405 $ — $ 405 Interest rate swaps — 3 — 3 Cross currency swaps — 220 — 220 Interest rate caps — 14 — 14 Total $ — $ 642 $ — $ 642 Liabilities: Other liabilities: Interest rate swaps $ — $ 813 $ — $ 813 Cross currency swaps — 536 — 536 Forward starting interest rate swaps — 60 — 60 Interest rate caps — 4 — 4 Total $ — $ 1,413 $ — $ 1,413 (1) Quoted prices in active markets for identical assets or liabilities (2) Observable inputs other than quoted prices in active markets for identical assets and liabilities (3) Unobservable pricing inputs in the market Certain of our equity investments do not have readily determinable fair values and are excluded from the tables above. Such investments are measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer and are included in Investments in unconsolidated businesses in our condensed consolidated balance sheets. As of June 30, 2019 and December 31, 2018 , the carrying amount of our investments without readily determinable fair values were $289 million and $248 million , respectively. During the three and six months ended June 30, 2019 , there were insignificant adjustments due to observable price changes and there were no impairment charges. Cumulative adjustments due to observable price changes and impairment charges were $58 million and insignificant, respectively. Fixed income securities consist primarily of investments in municipal bonds. For fixed income securities that do not have quoted prices in active markets, we use alternative matrix pricing resulting in these debt securities being classified as Level 2. Derivative contracts are valued using models based on readily observable market parameters for all substantial terms of our derivative contracts and thus are classified within Level 2. We use mid-market pricing for fair value measurements of our derivative instruments. Our derivative instruments are recorded on a gross basis. We recognize transfers between levels of the fair value hierarchy as of the end of the reporting period. There were no transfers between Level 1 and Level 2 during the six months ended June 30, 2019 and 2018 . Fair Value of Short-term and Long-term Debt The fair value of our debt is determined using various methods, including quoted prices for identical terms and maturities, which is a Level 1 measurement, as well as quoted prices for similar terms and maturities in inactive markets and future cash flows discounted at current rates, which are Level 2 measurements. The fair value of our short-term and long-term debt, excluding finance leases, was as follows: At June 30, At December 31, 2019 2018 (dollars in millions) Carrying Amount Fair Value Carrying Amount Fair Value Short- and long-term debt, excluding finance leases $ 112,424 $ 129,342 $ 112,159 $ 118,535 Derivative Instruments The following table sets forth the notional amounts of our outstanding derivative instruments: At June 30, At December 31, (dollars in millions) 2019 2018 Interest rate swaps $ 19,084 $ 19,813 Cross currency swaps 20,091 16,638 Forward starting interest rate swaps 3,000 4,000 Interest rate caps 1,292 2,218 Foreign exchange forwards 1,035 600 Interest Rate Swaps We enter into interest rate swaps to achieve a targeted mix of fixed and variable rate debt. We principally receive fixed rates and pay variable rates based on LIBOR, resulting in a net increase or decrease to Interest expense. These swaps are designated as fair value hedges and hedge against interest rate risk exposure of designated debt issuances. We record the interest rate swaps at fair value in our condensed consolidated balance sheets as assets and liabilities. Changes in the fair value of the interest rate swaps are recorded to Interest expense, which are offset by changes in the fair value of the hedged debt due to changes in interest rates. During the six months ended June 30, 2019 , we entered into interest rate swaps with a total notional value of $510 million and settled interest rate swaps with a total notional value of $1.2 billion . The ineffective portions of these interest rate swaps for the three and six months ended June 30, 2019 were insignificant and $60 million , respectively, and insignificant for the similar periods in 2018 . The following amounts were recorded in Long-term debt in our condensed consolidated balance sheets related to cumulative basis adjustments for fair value hedges: At June 30, At December 31, (dollars in millions) 2019 2018 Carrying amount of hedged liabilities $ 19,341 $ 18,903 Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities 373 (785 ) Cross Currency Swaps We have entered into cross currency swaps designated as cash flow hedges to exchange our British Pound Sterling, Euro, Swiss Franc and Australian Dollar-denominated cash flows into U.S. dollars and to fix our cash payments in U.S. dollars, as well as to mitigate the impact of foreign currency transaction gains or losses. During the three and six months ended June 30, 2019 , we entered into cross currency swaps with a total notional value of $3.5 billion . During the three and six months ended June 30, 2019 , pre-tax losses of $340 million and $328 million , respectively, were recognized in Other comprehensive income (loss) . During the three and six months ended June 30, 2018 , a pre-tax loss of $1.1 billion and an insignificant pretax gain, respectively, were recognized in Other comprehensive income (loss) . A portion of the gains recognized in Other comprehensive income (loss) was reclassified to Other income (expense), net to offset the related pre-tax foreign currency transaction gain or loss on the underlying hedged item. Forward Starting Interest Rate Swaps We have entered into forward starting interest rate swaps designated as cash flow hedges in order to manage our exposure to interest rate changes on future forecasted transactions. During the three and six months ended June 30, 2019 , we did no t enter into any new forward starting interest rate swaps. During the three months ended June 30, 2019 , we did no t settle any forward starting interest rate swaps and for the six months ended June 30, 2019 , we settled swaps with a total notional value of $1.0 billion . During the three and six months ended June 30, 2019 , pre-tax losses of $293 million and $497 million , respectively, were recognized in Other comprehensive income (loss) . We hedge our exposure to the variability in future cash flows based on the expected maturities of the related forecasted debt issuance. Net Investment Hedges We have designated certain foreign currency debt instruments as net investment hedges to mitigate foreign exchange exposure related to non-U.S. dollar net investments in certain foreign subsidiaries against changes in foreign exchange rates. The notional amount of the Euro-denominated debt as a net investment hedge was €750 million as of both June 30, 2019 and December 31, 2018 . Undesignated Derivatives We also have the following derivative contracts which we use as economic hedges but for which we have elected not to apply hedge accounting. Interest Rate Caps We enter into interest rate caps to mitigate our interest exposure to interest rate increases on our ABS Financing Facilities and ABS Notes. During the three and six months ended June 30, 2019 and 2018 , we recognized an insignificant amount in Interest expense. Foreign Exchange Forwards We enter into British Pound Sterling and Euro foreign exchange forwards to mitigate our foreign exchange rate risk related to non-functional currency denominated monetary assets and liabilities of international subsidiaries. During the three and six months ended June 30, 2019 , we entered into foreign exchange forwards with a total notional value of $3.1 billion and $6.1 billion , respectively, and settled foreign exchange forwards with a total notional value of $3.0 billion and $5.6 billion , respectively. During the three and six months ended June 30, 2019 , we recognized an insignificant amount in Other income (expense), net . Concentrations of Credit Risk Financial instruments that subject us to concentrations of credit risk consist primarily of temporary cash investments, short-term and long-term investments, trade receivables, including device payment plan agreement receivables, certain notes receivable, including lease receivables, and derivative contracts. Counterparties to our derivative contracts are major financial institutions with whom we have negotiated derivatives agreements (ISDA master agreements) and credit support annex (CSA) agreements which provide rules for collateral exchange. Negotiations and executions of new ISDA master agreements and CSA agreements with our counterparties continued throughout 2018 and 2019. The newly executed CSA agreements contain rating based thresholds such that we or our counterparties may be required to hold or post collateral based upon changes in outstanding positions as compared to established thresholds and changes in credit ratings. At June 30, 2019 we held approximately $0.1 billion and at December 31, 2018 we posted approximately $0.1 billion of collateral related to derivative contracts under collateral exchange arrangements, which were recorded as Other current liabilities and Prepaid expenses and other, respectively, in our condensed consolidated balance sheets. While we may be exposed to credit losses due to the nonperformance of our counterparties, we consider the risk remote and do not expect that any such nonperformance would result in a significant effect on our results of operations or financial condition due to our diversified pool of counterparties. |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Note 9. Employee Benefits We maintain non-contributory defined benefit pension plans for certain employees. In addition, we maintain postretirement health care and life insurance plans for certain retirees and their dependents, which are both contributory and non-contributory, and include a limit on our share of the cost for certain current and future retirees. In accordance with our accounting policy for pension and other postretirement benefits, operating expenses include service costs associated with pension and other postretirement benefits while other credits and/or charges based on actuarial assumptions, including projected discount rates, an estimated return on plan assets, and impact from health care trend rates are reported in Other income (expense), net. These estimates are updated in the fourth quarter to reflect actual return on plan assets and updated actuarial assumptions or upon a remeasurement event. The adjustment is recognized in the income statement during the fourth quarter or upon a remeasurement event pursuant to our accounting policy for the recognition of actuarial gains and losses. Net Periodic Benefit Cost (Income) The following table summarizes the components of net periodic benefit cost (income) related to our pension and postretirement health care and life insurance plans: (dollars in millions) Pension Health Care and Life Three Months Ended June 30, 2019 2018 2019 2018 Service cost - Cost of services $ 50 $ 59 $ 19 $ 26 Service cost - Selling, general and administrative expense 12 14 5 6 Service cost $ 62 $ 73 $ 24 $ 32 Amortization of prior service cost (credit) $ 16 $ 10 $ (243 ) $ (244 ) Expected return on plan assets (282 ) (329 ) (10 ) (11 ) Interest cost 176 166 158 154 Other components $ (90 ) $ (153 ) $ (95 ) $ (101 ) Total $ (28 ) $ (80 ) $ (71 ) $ (69 ) (dollars in millions) Pension Health Care and Life Six Months Ended June 30, 2019 2018 2019 2018 Service cost - Cost of services $ 100 $ 117 $ 39 $ 52 Service cost - Selling, general and administrative expense 23 28 9 12 Service cost $ 123 $ 145 $ 48 $ 64 Amortization of prior service cost (credit) $ 31 $ 20 $ (486 ) $ (488 ) Expected return on plan assets (564 ) (658 ) (19 ) (22 ) Interest cost 354 332 315 307 Remeasurement gain, net (96 ) — — — Other components $ (275 ) $ (306 ) $ (190 ) $ (203 ) Total $ (152 ) $ (161 ) $ (142 ) $ (139 ) The service cost component of net periodic benefit cost (income) is recorded in Cost of services and Selling, general and administrative expense in the condensed consolidated statements of income while the other components, including mark-to-market adjustments, if any, are recorded in Other income (expense), net . 2018 Voluntary Separation Program In September 2018, we announced a Voluntary Separation Program for select U.S.-based management employees. Approximately 10,400 eligible employees separated from the Company under this program as of the end of June 2019. The severance benefits payments to these employees are expected to be substantially completed by the end of September 2019. Severance Payments During the three and six months ended June 30, 2019 , we paid severance benefits of $643 million and $1.5 billion , respectively. During both the three and six month ended June 30, 2019 , we recorded net pre-tax severance charges of an insignificant amount. At June 30, 2019 , we had a remaining severance liability of $765 million , a portion of which includes future contractual payments to employees separated as a result of the Voluntary Separation Program. Employer Contributions During the six months ended June 30, 2019 , we made a discretionary contribution of $300 million to our qualified pension plans. As a result of the $300 million and $1.0 billion discretionary pension contributions during the six months ended June 30, 2019 and 2018 , respectively, we do not expect mandatory pension funding through December 31, 2019. There was no contribution made to our nonqualified pension plans during the three and six months ended June 30, 2019 . There have been no significant changes with respect to the nonqualified pension and other postretirement benefit plans contributions in 2019 . Remeasurement gain, net During the six months ended June 30, 2019 , we recorded a net pre-tax remeasurement gain of $96 million in our pension plans triggered by the Voluntary Separation Program for select U.S.-based management employees and other headcount reduction initiatives, primarily driven by a $150 million credit due to the difference between our estimated return on assets and our actual return on assets, offset by a $54 million charge due to a change in our discount rate assumption used to determine the current year liabilities of our pension plans. |
Equity and Accumulated Other Co
Equity and Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Equity and Accumulated Other Comprehensive Income | Note 10. Equity and Accumulated Other Comprehensive Income Equity Changes in the components of Total equity were as follows: (dollars in millions, except per share amounts, and shares in thousands) Three months ended June 30, 2019 2018 Shares Amount Shares Amount Common Stock Balance at beginning of period 4,291,434 $ 429 4,291,422 $ 429 Common shares issued — — 12 — Balance at end of period 4,291,434 429 4,291,434 429 Additional Paid In Capital Balance at beginning of period 13,418 13,437 Other 1 1 Balance at end of period 13,419 13,438 Retained Earnings Balance at beginning of period 46,493 39,974 Net income attributable to Verizon 3,944 4,120 Dividends declared ($0.6025, $0.5900 per share) (2,492 ) (2,437 ) Balance at end of period 47,945 41,657 Accumulated Other Comprehensive Income Balance at beginning of period attributable to Verizon 2,216 3,705 Foreign currency translation adjustments (67 ) (176 ) Unrealized loss on cash flow hedges (537 ) (152 ) Unrealized gain on marketable securities 4 1 Defined benefit pension and postretirement plans (169 ) (173 ) Other comprehensive loss (769 ) (500 ) Balance at end of period attributable to Verizon 1,447 3,205 Treasury Stock Balance at beginning of period (155,727 ) (6,825 ) (159,526 ) (6,992 ) Employee plans 58 2 28 2 Shareholder plans — — — — Balance at end of period (155,669 ) (6,823 ) (159,498 ) (6,990 ) Deferred Compensation-ESOPs and Other Balance at beginning of period 125 228 Restricted stock equity grant 44 38 Amortization (4 ) 19 Balance at end of period 165 285 Noncontrolling Interests Balance at beginning of period 1,604 1,564 Total comprehensive income 130 126 Distributions and other (369 ) (139 ) Balance at end of period 1,365 1,551 Total Equity $ 57,947 $ 53,575 (dollars in millions, except per share amounts, and shares in thousands) Six months ended June 30, 2019 2018 Shares Amount Shares Amount Common Stock Balance at beginning of year 4,291,434 $ 429 4,242,374 $ 424 Common shares issued — — 49,060 5 Balance at end of period 4,291,434 429 4,291,434 429 Additional Paid In Capital Balance at beginning of year 13,437 11,101 Other (18 ) 2,337 Balance at end of period 13,419 13,438 Retained Earnings Balance at beginning of year 43,542 35,635 Opening balance sheet adjustment 410 (1) 2,232 (2) Adjusted opening balance 43,952 37,867 Net income attributable to Verizon 8,976 8,665 Dividends declared ($1.205, $1.1800 per share) (4,983 ) (4,875 ) Balance at end of period 47,945 41,657 Accumulated Other Comprehensive Income Balance at beginning of year attributable to Verizon 2,370 2,659 Opening balance sheet adjustment — 630 (2) Adjusted opening balance 2,370 3,289 Foreign currency translation adjustments (43 ) (83 ) Unrealized gain (loss) on cash flow hedges (550 ) 349 Unrealized gain (loss) on marketable securities 8 (4 ) Defined benefit pension and postretirement plans (338 ) (346 ) Other comprehensive loss (923 ) (84 ) Balance at end of period attributable to Verizon 1,447 3,205 Treasury Stock Balance at beginning of year (159,400 ) (6,986 ) (162,898 ) (7,139 ) Employee plans 3,726 163 3,396 149 Shareholder plans 5 — 4 — Balance at end of period (155,669 ) (6,823 ) (159,498 ) (6,990 ) Deferred Compensation-ESOPs and Other Balance at beginning of year 353 416 Restricted stock equity grant 79 91 Amortization (267 ) (222 ) Balance at end of period 165 285 Noncontrolling Interests Balance at beginning of year 1,565 1,591 Opening balance sheet adjustment 1 (1) 44 (2) Adjusted opening balance 1,566 1,635 Total comprehensive income 258 247 Distributions and other (459 ) (331 ) Balance at end of period 1,365 1,551 Total Equity $ 57,947 $ 53,575 (1) Opening balance sheet adjustments for the six months ended June 30, 2019 are due to the adoption of Topic 842 on January 1, 2019. See Note 1 for additional information. (2) Opening balance sheet adjustments for the six months ended June 30, 2018 are due to the adoption of multiple ASUs on January 1, 2018. Refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 for additional information. Common Stock Verizon did not repurchase any shares of Verizon common stock through its previously authorized share buyback program during the six months ended June 30, 2019 . At June 30, 2019 , the maximum number of shares that could be purchased by or on behalf of Verizon under our share buyback program was 100 million . Common stock has been used from time to time to satisfy some of the funding requirements of employee and shareowner plans, including 3.7 million common shares issued from Treasury stock during the six months ended June 30, 2019 . In connection with our acquisition of Straight Path Communications, Inc. in February 2018, we issued approximately 49 million shares of Verizon common stock, valued at approximately $2.4 billion . Accumulated Other Comprehensive Income The changes in the balances of Accumulated other comprehensive income by component were as follows: (dollars in millions) Foreign currency translation adjustments Unrealized gain (loss) on cash flow hedges Unrealized gain on marketable securities Defined benefit pension and postretirement plans Total Balance at January 1, 2019 $ (600 ) $ (80 ) $ 20 $ 3,030 $ 2,370 Other comprehensive income (loss) (43 ) (607 ) 8 — (642 ) Amounts reclassified to net income — 57 — (338 ) (281 ) Net other comprehensive income (loss) (43 ) (550 ) 8 (338 ) (923 ) Balance at June 30, 2019 $ (643 ) $ (630 ) $ 28 $ 2,692 $ 1,447 The amounts presented above in net other comprehensive income (loss) are net of taxes. The amounts reclassified to net income related to unrealized gain on cash flow hedges in the table above are included in Other income (expense), net and Interest expense in our condensed consolidated statements of income. See Note 8 for additional information. The amounts reclassified to net income related to defined benefit pension and postretirement plans in the table above are included in Cost of services and Selling, general and administrative expense in our condensed consolidated statements of income. See Note 9 for additional information. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Note 11. Segment Information Reportable Segments As discussed in Note 1, in November 2018, we announced a strategic reorganization of our business. Under the new structure, effective April 1, 2019, there are two reportable segments that we operate and manage as strategic business units - Consumer and Business . In conjunction with the new reporting structure, we recast our segment disclosures for all periods presented. We measure and evaluate our reportable segments based on segment operating income, consistent with the chief operating decision maker’s assessment of segment performance. Our segments and their principal activities consist of the following: Segment Description Verizon Consumer Group Our Consumer segment provides consumer-focused wireless and wireline communications services and products. Our wireless services are provided across one of the most extensive wireless networks in the U.S. under the Verizon Wireless brand and through wholesale and other arrangements. Our wireline services are provided in nine states in the Mid-Atlantic and Northeastern U.S., as well as Washington D.C., over our 100% fiber-optic network under the Fios brand and over a traditional copper-based network to customers who are not served by Fios. Verizon Our Business segment provides wireless and wireline communications services and products, video and data services, corporate networking solutions, security and managed network services, local and long distance voice services and network access to deliver various IoT services and products. We provide these products and services to businesses, government customers and wireless and wireline carriers across the U.S. and select products and services to customers around the world. Our Consumer segment’s wireless and wireline products and services are available to our retail customers, as well as resellers that purchase wireless network access from us on a wholesale basis . Our Business segment’s wireless and wireline products and services are organized by the primary customer groups targeted by these offerings : Global Enterprise, Small and Medium Business, Public Sector and Other, and Wholesale. Corporate and other includes the results of Verizon Media, and other businesses, investments in unconsolidated businesses, unallocated corporate expenses, certain pension and other employee benefit related costs and interest and financing expenses. Corporate and other also includes the historical results of divested businesses and other adjustments and gains and losses that are not allocated in assessing segment performance due to their nature. Although such transactions are excluded from the segment results, they are included in reported consolidated earnings. Gains and losses from these transactions that are not individually significant are included in segment results as these items are included in the chief operating decision maker’s assessment of segment performance. The reconciliation of segment operating revenues and expenses to consolidated operating revenues and expenses below includes the effects of special items that the chief operating decision maker does not consider in assessing segment performance, primarily because of their nature. The following table provides operating financial information for our two reportable segments: Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2019 2018 2019 2018 External Operating Revenues Consumer Service $ 16,350 $ 16,050 $ 32,611 $ 31,864 Wireless equipment 3,904 4,251 8,070 8,521 Other 1,680 1,650 3,350 3,130 Total Consumer 21,934 21,951 44,031 43,515 Business Global Enterprise 2,673 2,808 5,363 5,632 Small and Medium Business 2,781 2,638 5,485 5,166 Public Sector and Other 1,492 1,437 2,963 2,866 Wholesale 810 956 1,650 1,941 Total Business 7,756 7,839 15,461 15,605 Total reportable segments $ 29,690 $ 29,790 $ 59,492 $ 59,120 Intersegment Revenues Consumer $ 61 $ 52 $ 112 $ 115 Business 12 12 26 29 Total reportable segments $ 73 $ 64 $ 138 $ 144 Total Operating Revenues Consumer $ 21,995 $ 22,003 $ 44,143 $ 43,630 Business (1) 7,768 7,851 15,487 15,634 Total reportable segments $ 29,763 $ 29,854 $ 59,630 $ 59,264 Operating Income Consumer $ 7,336 $ 7,060 $ 14,586 $ 13,995 Business 1,071 1,101 2,119 2,215 Total reportable segments $ 8,407 $ 8,161 $ 16,705 $ 16,210 (1) Service and other revenues included in our Business segment amounted to approximately $7.0 billion and $13.9 billion for the three and six months ended June 30, 2019 , respectively, and approximately $7.1 billion and $14.0 billion for the three and six months ended June 30, 2018 , respectively. Wireless equipment revenues included in our Business segment amounted to approximately $814 million and $1.6 billion for the three and six months ended June 30, 2019 , respectively, and approximately $793 million and $1.6 billion for the three and six months ended June 30, 2018 , respectively. The following table provides Fios revenue for our two reportable segments: Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2019 2018 2019 2018 Consumer $ 2,772 $ 2,738 $ 5,536 $ 5,472 Business 239 218 482 435 Total Fios revenue $ 3,011 $ 2,956 $ 6,018 $ 5,907 The following table provides Wireless service revenue under our current reportable structure and includes intersegment activity: Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2019 2018 2019 2018 Consumer $ 13,456 $ 13,122 $ 26,813 $ 26,003 Business 2,775 2,615 5,469 5,116 Total Wireless service revenue $ 16,231 $ 15,737 $ 32,282 $ 31,119 Reconciliation to Consolidated Financial Information A reconciliation of the reportable segment operating revenues to consolidated operating revenues is as follows: Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2019 2018 2019 2018 Total reportable segment operating revenues $ 29,763 $ 29,854 $ 59,630 $ 59,264 Corporate and other 2,412 2,429 4,747 4,891 Eliminations (104 ) (80 ) (178 ) (180 ) Total consolidated operating revenues $ 32,071 $ 32,203 $ 64,199 $ 63,975 A reconciliation of total reportable segment operating income to consolidated income before provision for income taxes is as follows: Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2019 2018 2019 2018 Total reportable segment operating income $ 8,407 $ 8,161 $ 16,705 $ 16,210 Corporate and other (354 ) (426 ) (740 ) (811 ) Severance charges (Note 9) — (339 ) — (339 ) Other components of net periodic benefit charges (Note 9) (203 ) (208 ) (406 ) (416 ) Acquisition and integration related charges — (120 ) — (227 ) Product realignment charges — (451 ) — (451 ) Total consolidated operating income 7,850 6,617 15,559 13,966 Equity in losses of unconsolidated businesses (13 ) (228 ) (19 ) (247 ) Other income (expense), net (1,312 ) 360 (1,017 ) 285 Interest expense (1,215 ) (1,222 ) (2,425 ) (2,423 ) Income Before Provision For Income Taxes $ 5,310 $ 5,527 $ 12,098 $ 11,581 No single customer accounted for more than 10% of our total operating revenues during the three and six months ended June 30, 2019 and 2018 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Commitments and Contingencies In the ordinary course of business, Verizon is involved in various commercial litigation and regulatory proceedings at the state and federal level. Where it is determined, in consultation with counsel based on litigation and settlement risks, that a loss is probable and estimable in a given matter, the Company establishes an accrual. In none of the currently pending matters is the amount of accrual material. An estimate of the reasonably possible loss or range of loss in excess of the amounts already accrued cannot be made at this time due to various factors typical in contested proceedings, including: (1) uncertain damage theories and demands; (2) a less than complete factual record; (3) uncertainty concerning legal theories and their resolution by courts or regulators; and (4) the unpredictable nature of the opposing party and its demands. We continuously monitor these proceedings as they develop and adjust any accrual or disclosure as needed. We do not expect that the ultimate resolution of any pending regulatory or legal matter in future periods, including the Hicksville matter described below, will have a material effect on our financial condition, but it could have a material effect on our results of operations for a given reporting period. Reserves have been established to cover environmental matters relating to discontinued businesses and past telecommunications activities. These reserves include funds to address contamination at the site of a former Sylvania facility in Hicksville, NY, which had processed nuclear fuel rods in the 1950s and 1960s. In September 2005, the Army Corps of Engineers (ACE) accepted the site into its Formerly Utilized Sites Remedial Action Program. As a result, the ACE has taken primary responsibility for addressing the contamination at the site. An adjustment to the reserves may be made after a cost allocation is conducted with respect to the past and future expenses of all of the parties. Adjustments to the environmental reserve may also be made based upon the actual conditions found at other sites requiring remediation. Verizon is currently involved in approximately 30 federal district court actions alleging that Verizon is infringing various patents. Most of these cases are brought by non-practicing entities and effectively seek only monetary damages; a small number are brought by companies that have sold products and could seek injunctive relief as well. These cases have progressed to various stages and a small number may go to trial in the coming 12 months if they are not otherwise resolved. In connection with the execution of agreements for the sales of businesses and investments, Verizon ordinarily provides representations and warranties to the purchasers pertaining to a variety of nonfinancial matters, such as ownership of the securities being sold, as well as indemnity from certain financial losses. From time to time, counterparties may make claims under these provisions, and Verizon will seek to defend against those claims and resolve them in the ordinary course of business. Subsequent to the sale of Verizon Information Services Canada in 2004, we continue to provide a guarantee to publish directories, which was issued when the directory business was purchased in 2001 and had a 30 -year term (before extensions). The preexisting guarantee continues, without modification, despite the subsequent sale of Verizon Information Services Canada and the spin-off of our domestic print and Internet yellow pages directories business. The possible financial impact of the guarantee, which is not expected to be adverse, cannot be reasonably estimated as a variety of the potential outcomes available under the guarantee result in costs and revenues or benefits that may offset each other. We do not believe performance under the guarantee is likely. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash We consider all highly liquid investments with an original maturity of 90 days or less when purchased to be cash equivalents. Cash equivalents are stated at cost, which approximates quoted market value and includes amounts held in money market funds. Cash collections on the device payment plan agreement receivables collateralizing asset-backed debt securities are required at certain specified times to be placed into segregated accounts. Deposits to the segregated accounts are considered restricted cash and are included in Prepaid expenses and other and Other assets in our condensed consolidated balance sheets. |
Goodwill | Goodwill Goodwill is the excess of the acquisition cost of businesses over the fair value of the identifiable net assets acquired. Impairment testing for goodwill is performed annually in the fourth quarter or more frequently if impairment indicators are present. We transitioned into our new segment reporting structure effective April 1, 2019, which resulted in certain changes to our operating segments and reporting units. Upon the date of reorganization, the goodwill of our historical Wireless reporting unit, historical Wireline reporting unit and historical Verizon Connect reporting unit were reallocated to our new Consumer and Business reporting units using a relative fair value approach. We performed an impairment assessment of the impacted reporting units, specifically our historical Wireless, historical Wireline and historical Connect reporting units on March 31, 2019, immediately before our strategic reorganization became effective. Our impairment assessments indicated that the fair value for each of our historical Wireless, historical Wireline and historical Connect reporting units exceeded their respective carrying value, and therefore did not result in a goodwill impairment. We then performed an impairment assessment for our Consumer and Business reporting units on April 1, 2019, immediately following our strategic reorganization. Our impairment assessments indicated that the fair value for each of our Consumer and Business reporting units exceeded their respective carrying values and therefore, did not result in a goodwill impairment. Our Media reporting unit was not impacted by the strategic reorganization and there was no indicator of impairment. |
Recently Adopted Accounting Standards and Recently Issued Accounting Standards | Recently Adopted Accounting Standard The following Accounting Standard Updates (ASUs) were issued by Financial Accounting Standards Board (FASB), and have been recently adopted by Verizon. Description Date of Adoption Effect on Financial Statements ASU 2016-02, ASU 2018-01, ASU 2018-10, ASU 2018-11, ASU 2018-20 and ASU 2019-01, Leases (Topic 842) The FASB issued Topic 842 requiring entities to recognize assets and liabilities on the balance sheet for all leases, with certain exceptions. In addition, Topic 842 will enable users of financial statements to further understand the amount, timing and uncertainty of cash flows arising from leases. Topic 842 allows for a modified retrospective application and is effective as of the first quarter of 2019. Entities are allowed to apply the modified retrospective approach: (1) retrospectively to each prior reporting period presented in the financial statements with the cumulative-effect adjustment recognized at the beginning of the earliest comparative period presented; or (2) retrospectively at the beginning of the period of adoption (January 1, 2019) through a cumulative-effect adjustment. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. 1/1/2019 We adopted Topic 842 beginning on January 1, 2019, using the modified retrospective approach with a cumulative-effect adjustment to opening retained earnings recorded at the beginning of the period of adoption. Therefore, upon adoption, we have recognized and measured leases without revising comparative period information or disclosure. We recorded an increase of $410 million (net of tax) to retained earnings on January 1, 2019 which related to deferred sale leaseback gains recognized from prior transactions. Additionally, the adoption of the standard had a significant impact in our condensed consolidated balance sheet due to the recognition of $22.1 billion of operating lease liabilities, along with $23.2 billion of operating lease right-of-use-assets. The cumulative after-tax effect of the changes made to our condensed consolidated balance sheet for the adoption of Topic 842 were as follows: (dollars in millions) At December 31, 2018 Adjustments due to Topic 842 At January 1, 2019 Prepaid expenses and other $ 5,453 $ (329 ) $ 5,124 Operating lease right-of-use assets — 23,241 23,241 Other assets 11,717 (2,048 ) 9,669 Accounts payable and accrued liabilities 22,501 (3 ) 22,498 Other current liabilities 8,239 (2 ) 8,237 Current operating lease liabilities — 2,931 2,931 Deferred income taxes 33,795 139 33,934 Non-current operating lease liabilities — 19,203 19,203 Other liabilities 13,922 (1,815 ) 12,107 Retained earnings 43,542 410 43,952 Noncontrolling interests 1,565 1 1,566 In addition to the increase to the operating lease liabilities and right-of-use assets and the derecognition of deferred sale leaseback gains through opening retained earnings, Topic 842 also resulted in reclassifying the presentation of prepaid and deferred rent to operating lease right-of-use assets. The operating lease right-of-use assets amount also includes the balance of any prepaid lease payments, unamortized initial direct costs, and lease incentives. We elected the package of practical expedients permitted under the transition guidance within the new standard. Accordingly, we have adopted these practical expedients and did not reassess: (1) whether an expired or existing contract is a lease or contains an embedded lease; (2) lease classification of an expired or existing lease; or (3) capitalization of initial direct costs for an expired or existing lease. In addition, we have elected the land easement transition practical expedient, and did not reassess whether an existing or expired land easement is a lease or contains a lease if it has not historically been accounted for as a lease. We lease network equipment including towers, distributed antenna systems, small cells, real estate, connectivity mediums which include dark fiber, equipment leases, and other various types of assets for use in our operations under both operating and finance leases. We assess whether an arrangement is a lease or contains a lease at inception. For arrangements considered leases or that contain a lease that is accounted for separately, we determine the classification and initial measurement of the right-of-use asset and lease liability at the lease commencement date, which is the date that the underlying asset becomes available for use. For both operating and finance leases, we recognize a right-of-use asset, which represents our right to use the underlying asset for the lease term, and a lease liability, which represents the present value of our obligation to make payments arising over the lease term. The present value of the lease payments is calculated using the incremental borrowing rate for operating and finance leases. The incremental borrowing rate is determined using a portfolio approach based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. Management uses the unsecured borrowing rate and risk-adjusts that rate to approximate a collateralized rate, which will be updated on a quarterly basis for measurement of new lease liabilities. In those circumstances where the Company is the lessee, we have elected to account for non-lease components associated with our leases (e.g., common area maintenance costs) and lease components as a single lease component for substantially all of our asset classes. Additionally, in arrangements where we are the lessor, we have customer premise equipment for which we apply the lease and non-lease component practical expedient and account for non-lease components (e.g., service revenue) and lease components as combined components under the revenue recognition guidance in ASU 2014-09, "Revenue from Contracts with Customers" (Topic 606) as the service revenues are the predominant components in the arrangements. Rent expense for operating leases is recognized on a straight-line basis over the term of the lease and is included in either Cost of services or Selling, general and administrative expense in our condensed consolidated statements of income, based on the use of the facility on which rent is being paid. Variable rent payments related to both operating and finance leases are expensed in the period incurred. Our variable lease payments consist of payments dependent on various external indicators, including real estate taxes, common area maintenance charges and utility usage. Operating leases with a term of 12 months or less are not recorded on the balance sheet; we recognize a rent expense for these leases on a straight-line basis over the lease term. We recognize the amortization of the right-of-use asset for our finance leases on a straight-line basis over the shorter of the term of the lease or the useful life of the right-of-use asset in Depreciation and amortization expense in our condensed consolidated statements of income. The interest expense related to finance leases is recognized using the effective interest method based on the discount rate determined at lease commencement and is included within Interest expense in our condensed consolidated statements of income. See Note 5 for additional information related to leases, including disclosure required under Topic 842. Recently Issued Accounting Standards The following ASUs have been recently issued by the FASB. Description Date of Adoption Effect on Financial Statements ASU 2016-13, ASU 2018-19, ASU 2019-04, ASU 2019-05, Financial Instruments - Credit Losses (Topic 326) In June 2016, the FASB issued this standard update which requires certain financial assets be measured at amortized cost net of an allowance for estimated credit losses such that the net receivable represents the present value of expected cash collection. In addition, this standard update requires that certain financial assets be measured at amortized cost reflecting an allowance for estimated credit losses expected to occur over the life of the assets. The estimate of credit losses must be based on all relevant information including historical information, current conditions and reasonable and supportable forecasts that affect the collectability of the amounts. An entity will apply the update through a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (January 1, 2020). A prospective transition approach is required for debt securities for which an other-than-temporary impairment has been recognized before the effective date. Early adoption of this standard is permitted. 1/1/2020 We are currently evaluating the impacts that this standard update will have on our various financial assets, which we expect to include, but are not limited to, our device payment plan agreement receivables, service receivables and contract assets. We have established a cross-functional coordinated team to implement the standard update. We are in the process of determining the potential impacts to our processes, including allowance estimation models, and internal controls in order to meet the standard update's accounting and reporting requirements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash, cash equivalents and restricted cash are included in the following line items on the condensed consolidated balance sheets: At June 30, At December 31, Increase / (Decrease) (dollars in millions) 2019 2018 Cash and cash equivalents $ 1,949 $ 2,745 $ (796 ) Restricted cash: Prepaid expenses and other 1,055 1,047 8 Other assets 116 124 (8 ) Cash, cash equivalents and restricted cash $ 3,120 $ 3,916 $ (796 ) |
Schedule of Restricted Cash | Cash, cash equivalents and restricted cash are included in the following line items on the condensed consolidated balance sheets: At June 30, At December 31, Increase / (Decrease) (dollars in millions) 2019 2018 Cash and cash equivalents $ 1,949 $ 2,745 $ (796 ) Restricted cash: Prepaid expenses and other 1,055 1,047 8 Other assets 116 124 (8 ) Cash, cash equivalents and restricted cash $ 3,120 $ 3,916 $ (796 ) |
Schedule of New Accounting Pronouncements | The cumulative after-tax effect of the changes made to our condensed consolidated balance sheet for the adoption of Topic 842 were as follows: (dollars in millions) At December 31, 2018 Adjustments due to Topic 842 At January 1, 2019 Prepaid expenses and other $ 5,453 $ (329 ) $ 5,124 Operating lease right-of-use assets — 23,241 23,241 Other assets 11,717 (2,048 ) 9,669 Accounts payable and accrued liabilities 22,501 (3 ) 22,498 Other current liabilities 8,239 (2 ) 8,237 Current operating lease liabilities — 2,931 2,931 Deferred income taxes 33,795 139 33,934 Non-current operating lease liabilities — 19,203 19,203 Other liabilities 13,922 (1,815 ) 12,107 Retained earnings 43,542 410 43,952 Noncontrolling interests 1,565 1 1,566 |
Revenues and Contract Costs (Ta
Revenues and Contract Costs (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Receivables from Contracts with Customers | The following table presents information about receivables from contracts with customers: At June 30, At January 1, At June 30, At January 1, (dollars in millions) 2019 2019 2018 2018 Receivables (1) $ 12,173 $ 12,104 $ 11,412 $ 12,073 Device payment plan agreement receivables (2) 10,053 8,940 5,258 1,461 (1) Balances do not include receivables related to the following contracts: leasing arrangements (such as towers), captive reinsurance arrangements primarily related to wireless device insurance and the interest on equipment financed on a device payment plan agreement when sold to the customer by an authorized agent. (2) Included in device payment plan agreement receivables presented in Note 7 |
Contract with Customer, Asset and Liability | The following table presents information about contract balances: At June 30, At January 1, At June 30, At January 1, 2019 2019 2018 2018 Contract asset $ 1,059 $ 1,003 $ 1,059 $ 1,170 Contract liability (1) 4,946 4,943 4,652 4,452 (1) Revenue recognized related to contract liabilities existing at January 1, 2019 and January 1, 2018 were $194 million and $3.9 billion , for the three and six months ended June 30, 2019 , respectively, and $327 million and $3.8 billion , for the three and six months ended June 30, 2018 . The balance of contract assets and contract liabilities recorded in our condensed consolidated balance sheet were as follows: At June 30, At December 31, (dollars in millions) 2019 2018 Assets Prepaid expenses and other $ 812 $ 757 Other assets 247 246 Total $ 1,059 $ 1,003 Liabilities Other current liabilities $ 4,323 $ 4,207 Other liabilities 623 736 Total $ 4,946 $ 4,943 |
Capitalized Contract Cost | Collectively, costs to obtain a contract and costs to fulfill a contract are referred to as Deferred contract costs, and amortized over a two- to five-year period. Deferred contract costs are classified as current or non-current within Prepaid expenses and other and Other assets, respectively. The balances of Deferred contract costs included in our condensed consolidated balance sheet were as follows: At June 30, At December 31, (dollars in millions) 2019 2018 Assets Prepaid expenses and other $ 2,352 $ 2,083 Other assets 1,774 1,812 Total $ 4,126 $ 3,895 |
Wireless Licenses, Goodwill a_2
Wireless Licenses, Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Wireless Licenses | The carrying amounts of Wireless licenses are as follows: At June 30, At December 31, (dollars in millions) 2019 2018 Wireless licenses $ 94,333 $ 94,130 |
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of Goodwill are as follows: (dollars in millions) Consumer Business Wireless Wireline Other Total Balance at January 1, 2019 (1) $ — $ — $ 18,397 $ 3,871 $ 2,346 $ 24,614 Acquisitions — — — 20 — 20 Reclassifications, adjustments and other — — — 1 — 1 Balance at March 31, 2019 — — 18,397 3,892 2,346 24,635 Reporting Unit reallocation (2) 17,104 7,269 (18,397 ) (3,892 ) (2,084 ) — Balance at April 1, 2019 17,104 7,269 — — 262 24,635 Acquisitions — 1 — — — 1 Reclassifications, adjustments and other — (4 ) — — — (4 ) Balance at June 30, 2019 $ 17,104 $ 7,266 $ — $ — $ 262 $ 24,632 (1) Goodwill is net of accumulated impairment charge of $4.6 billion , related to our Media reporting unit (included within Other in the table above), which was recorded in the fourth quarter of 2018. (2) Represents the reallocation of goodwill as a result of the Company reorganizing its segments as described in Note 1. |
Composition of Other Intangible Assets, Net | The following table displays the composition of Other intangible assets, net: At June 30, 2019 At December 31, 2018 (dollars in millions) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Customer lists (8 to 13 years) $ 3,948 $ (1,299 ) $ 2,649 $ 3,951 $ (1,121 ) $ 2,830 Non-network internal-use software (3 to 7 years) 19,354 (13,589 ) 5,765 18,603 (12,785 ) 5,818 Other (2 to 25 years) 1,985 (925 ) 1,060 1,988 (861 ) 1,127 Total $ 25,287 $ (15,813 ) $ 9,474 $ 24,542 $ (14,767 ) $ 9,775 |
Amortization Expense for Other Intangible Assets | The amortization expense for Other intangible assets was as follows: Three Months Ended Six Months Ended (dollars in millions) June 30, June 30, 2019 $ 569 $ 1,124 2018 557 1,091 |
Estimated Future Amortization Expense for Other Intangible Assets | The estimated future amortization expense for Other intangible assets for the remainder of the current year and next 5 years is as follows: Years (dollars in millions) Remainder of 2019 $ 1,086 2020 1,903 2021 1,610 2022 1,335 2023 1,049 2024 795 |
Leasing Arrangements (Tables)
Leasing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Components of Net Lease Cost, and Supplemental Disclosure for Statement of Cash Flows related to Operating and Finance Leases | The components of net lease cost were as follows: Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) Classification 2019 2019 Operating lease cost (1) Cost of services Selling, general and administrative expense $ 1,178 $ 2,348 Finance lease cost: Amortization of right-of-use assets Depreciation and amortization expense 82 168 Interest on lease liabilities Interest expense 10 19 Short-term lease cost (1) Cost of services Selling, general and administrative expense 8 24 Variable lease cost (1) Cost of services 51 108 Sublease income Service revenues and other (67 ) (134 ) Total net lease cost $ 1,262 $ 2,533 (1) All operating lease costs, including short-term and variable lease costs, are split between Cost of services and Selling, general and administrative expense in the condensed consolidated statements of income based on the use of the facility that the rent is being paid on. See Note 1 for additional information. Variable lease costs represent payments that are dependent on a rate or index, or on usage of the asset. Supplemental disclosure for the statement of cash flows related to operating and finance leases were as follows: Six Months Ended June 30, (dollars in millions) 2019 Cash Flows from Operating Activities Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ (2,089 ) Operating cash flows for finance leases (19 ) Cash Flows from Financing Activities Financing cash flows for finance leases (178 ) Supplemental lease cash flow disclosures Operating lease right-of-use assets obtained in exchange for new operating lease liabilities 1,300 Right-of-use assets obtained in exchange for new finance lease liabilities 221 |
Supplemental Disclosure for Balance Sheet related to Finance Leases | Supplemental disclosures for the balance sheet related to finance leases were as follows: At June 30, (dollars in millions) 2019 Assets Property, plant and equipment, net $ 823 Liabilities Debt maturing within one year $ 321 Long-term debt 627 Total Finance lease liabilities $ 948 |
Schedule of Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate related to Leases | The weighted-average remaining lease term and the weighted-average discount rate of our leases were as follows: At June 30, 2019 Weighted-average remaining lease term (years) Operating Leases 9 Finance Leases 4 Weighted-average discount rate Operating Leases 4.1 % Finance Leases 4.0 % |
Lessee, Operating Lease, Liability, Maturity | The Company's maturity analysis of operating and finance lease liabilities as of June 30, 2019 were as follows: (dollars in millions) Operating Leases Finance Leases Remainder of 2019 $ 1,996 $ 178 2020 3,840 291 2021 3,460 198 2022 3,067 137 2023 2,713 88 Thereafter 11,094 144 Total lease payments 26,170 1,036 Less interest (4,762 ) (88 ) Present value of lease liabilities 21,408 948 Less current obligation (3,154 ) (321 ) Long-term obligation at June 30, 2019 $ 18,254 $ 627 |
Finance Lease, Liability, Maturity | The Company's maturity analysis of operating and finance lease liabilities as of June 30, 2019 were as follows: (dollars in millions) Operating Leases Finance Leases Remainder of 2019 $ 1,996 $ 178 2020 3,840 291 2021 3,460 198 2022 3,067 137 2023 2,713 88 Thereafter 11,094 144 Total lease payments 26,170 1,036 Less interest (4,762 ) (88 ) Present value of lease liabilities 21,408 948 Less current obligation (3,154 ) (321 ) Long-term obligation at June 30, 2019 $ 18,254 $ 627 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Transactions | During the six months ended June 30, 2019 , we completed the following ABS Notes transactions: (dollars in millions) Interest Rates % Expected Weighted-average Life to Maturity (in years) Principal Amount Issued March 2019 A-1a Senior class notes 2.930 2.50 $ 900 A-1b Senior floating rate class notes LIBOR + 0.330 (1) 2.50 100 B Junior class notes 3.020 3.22 69 C Junior class notes 3.220 3.40 53 March 2019 total 1,122 June 2019 A-1a Senior class notes 2.330 2.52 855 A-1b Senior floating rate class notes LIBOR + 0.450 (1) 2.52 145 B Junior class notes 2.400 3.28 69 C Junior class notes 2.600 3.47 53 June 2019 total 1,122 Total $ 2,244 (1) The one-month London Interbank Offered Rate (LIBOR) rate at June 30, 2019 was 2.398% . The following table shows the transactions that occurred during the six months ended June 30, 2019. February Exchange Offers (dollars in millions) Principal Amount Exchanged Principal Amount Issued Verizon 1.750% - 5.150% notes and floating rate notes, due 2021 - 2025 $ 3,892 $ — GTE LLC 8.750% debentures, due 2021 21 — Verizon 4.016% notes due 2029 (1) — 4,000 Total $ 3,913 $ 4,000 (1) Total exchange amount issued in consideration does not include an insignificant amount of cash used to settle. May Tender Offers (dollars in millions) Principal Amount Purchased Cash Consideration (1) Verizon 5.012% notes due 2054 $ 3,192 $ 3,626 Verizon 4.672% notes due 2055 1,308 1,404 Total $ 4,500 $ 5,030 (1) In addition to the purchase price, any accrued and unpaid interest on the purchased notes was paid to the date of purchase. Debt Redemptions, Repurchases and Repayments (dollars in millions) Principal Redeemed / Repaid Amount Paid as % of Principal (1) March 2019 Verizon 5.900% notes due 2054 $ 500 100.000 % Verizon 1.375% notes due 2019 206 100.000 % Verizon 1.750% notes due 2021 621 100.000 % Verizon 3.000% notes due 2021 930 101.061 % Verizon 3.500% notes due 2021 315 102.180 % Open market repurchases of various Verizon notes 163 Various March 2019 total 2,735 June 2019 Verizon 2.625% notes due 2020 831 100.037 % Verizon 3.500% notes due 2021 736 102.238 % Verizon floating rate (LIBOR + 0.770%) notes due 2019 229 100.000 % June 2019 total 1,796 Total $ 4,531 (1) Percentages represent price paid to redeem, repurchase and repay. Debt Issuances (amounts in millions) Principal Amount Issued Net Proceeds (1) March 2019 Verizon 3.875% notes due 2029 (2) $ 1,000 $ 994 Verizon 5.000% notes due 2051 510 506 March 2019 total $ 1,510 $ 1,500 June 2019 Verizon 0.875% notes due 2027 € 1,250 1,391 Verizon 1.250% notes due 2030 € 1,250 1,385 Verizon 2.500% notes due 2031 £ 500 647 June 2019 total 3,423 Total $ 4,923 (1) Net proceeds were net of discount and issuance costs. (2) An amount equal to the net proceeds from this green bond will be used to fund, in whole or in part, "Eligible Green Investments." "Eligible Green Investments" include new and existing investments made by us during the period from two years prior to the issuance of the green bond through the maturity date of the green bond, in the following categories: (1) renewable energy; (2) energy efficiency; (3) green buildings; (4) sustainable water management; and (5) biodiversity and conservation. |
Schedule of Assets and Liabilities Related to Asset-backed Debt Arrangements | The assets and liabilities related to our asset-backed debt arrangements included in our condensed consolidated balance sheets were as follows: At June 30, At December 31, (dollars in millions) 2019 2018 Assets Account receivable, net $ 10,095 $ 8,861 Prepaid expenses and other 1,020 989 Other assets 3,353 2,725 Liabilities Accounts payable and accrued liabilities 11 7 Short-term portion of long-term debt 4,477 5,352 Long-term debt 6,775 4,724 |
Wireless Device Payment Plans (
Wireless Device Payment Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Device Payment Plan Receivables, Net | The following table displays device payment plan agreement receivables, net, recognized in our condensed consolidated balance sheets: At June 30, At December 31, (dollars in millions) 2019 2018 Device payment plan agreement receivables, gross $ 18,327 $ 19,313 Unamortized imputed interest (455 ) (546 ) Device payment plan agreement receivables, net of unamortized imputed interest 17,872 18,767 Allowance for credit losses (487 ) (597 ) Device payment plan agreement receivables, net $ 17,385 $ 18,170 Classified in our condensed consolidated balance sheets: Accounts receivable, net $ 12,486 $ 12,624 Other assets 4,899 5,546 Device payment plan agreement receivables, net $ 17,385 $ 18,170 |
Balance and Aging of Device Payment Plan Agreement Receivables on Gross Basis | The balance and aging of the device payment plan agreement receivables on a gross basis were as follows: At June 30, At December 31, (dollars in millions) 2019 2018 Unbilled $ 17,042 $ 18,043 Billed: Current 1,028 986 Past due 257 284 Device payment plan agreement receivables, gross $ 18,327 $ 19,313 |
Activity in Allowance for Credit Losses for Device Payment Plan Agreement Receivables | Activity in the allowance for credit losses for the device payment plan agreement receivables was as follows: (dollars in millions) 2019 2018 Balance at January 1, $ 597 $ 848 Bad debt expense 401 237 Write-offs (511 ) (331 ) Balance at June 30, $ 487 $ 754 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 : (dollars in millions) Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Other assets: Fixed income securities $ — $ 434 $ — $ 434 Interest rate swaps — 529 — 529 Cross currency swaps — 170 — 170 Interest rate caps — 2 — 2 Foreign exchange forwards — 5 — 5 Total $ — $ 1,140 $ — $ 1,140 Liabilities: Other liabilities: Interest rate swaps $ — $ 189 $ — $ 189 Cross currency swaps — 814 — 814 Forward starting interest rate swaps — 536 — 536 Interest rate caps — 1 — 1 Total $ — $ 1,540 $ — $ 1,540 The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 : (dollars in millions) Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Other assets: Fixed income securities $ — $ 405 $ — $ 405 Interest rate swaps — 3 — 3 Cross currency swaps — 220 — 220 Interest rate caps — 14 — 14 Total $ — $ 642 $ — $ 642 Liabilities: Other liabilities: Interest rate swaps $ — $ 813 $ — $ 813 Cross currency swaps — 536 — 536 Forward starting interest rate swaps — 60 — 60 Interest rate caps — 4 — 4 Total $ — $ 1,413 $ — $ 1,413 (1) Quoted prices in active markets for identical assets or liabilities (2) Observable inputs other than quoted prices in active markets for identical assets and liabilities (3) Unobservable pricing inputs in the market |
Schedule of Fair Value of Short-Term and Long-Term Debt, Excluding Capital Leases | The fair value of our short-term and long-term debt, excluding finance leases, was as follows: At June 30, At December 31, 2019 2018 (dollars in millions) Carrying Amount Fair Value Carrying Amount Fair Value Short- and long-term debt, excluding finance leases $ 112,424 $ 129,342 $ 112,159 $ 118,535 |
Notional Amounts of Outstanding Derivative Instruments | The following table sets forth the notional amounts of our outstanding derivative instruments: At June 30, At December 31, (dollars in millions) 2019 2018 Interest rate swaps $ 19,084 $ 19,813 Cross currency swaps 20,091 16,638 Forward starting interest rate swaps 3,000 4,000 Interest rate caps 1,292 2,218 Foreign exchange forwards 1,035 600 |
Schedule of Cumulative Basis Adjustments for Fair Value hedges | The following amounts were recorded in Long-term debt in our condensed consolidated balance sheets related to cumulative basis adjustments for fair value hedges: At June 30, At December 31, (dollars in millions) 2019 2018 Carrying amount of hedged liabilities $ 19,341 $ 18,903 Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities 373 (785 ) |
Employee Benefits (Tables)
Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Benefit or (Income) Cost Related to Pension and Postretirement Health Care and Life Insurance | The following table summarizes the components of net periodic benefit cost (income) related to our pension and postretirement health care and life insurance plans: (dollars in millions) Pension Health Care and Life Three Months Ended June 30, 2019 2018 2019 2018 Service cost - Cost of services $ 50 $ 59 $ 19 $ 26 Service cost - Selling, general and administrative expense 12 14 5 6 Service cost $ 62 $ 73 $ 24 $ 32 Amortization of prior service cost (credit) $ 16 $ 10 $ (243 ) $ (244 ) Expected return on plan assets (282 ) (329 ) (10 ) (11 ) Interest cost 176 166 158 154 Other components $ (90 ) $ (153 ) $ (95 ) $ (101 ) Total $ (28 ) $ (80 ) $ (71 ) $ (69 ) (dollars in millions) Pension Health Care and Life Six Months Ended June 30, 2019 2018 2019 2018 Service cost - Cost of services $ 100 $ 117 $ 39 $ 52 Service cost - Selling, general and administrative expense 23 28 9 12 Service cost $ 123 $ 145 $ 48 $ 64 Amortization of prior service cost (credit) $ 31 $ 20 $ (486 ) $ (488 ) Expected return on plan assets (564 ) (658 ) (19 ) (22 ) Interest cost 354 332 315 307 Remeasurement gain, net (96 ) — — — Other components $ (275 ) $ (306 ) $ (190 ) $ (203 ) Total $ (152 ) $ (161 ) $ (142 ) $ (139 ) |
Equity and Accumulated Other _2
Equity and Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Changes in Components of Total Equity | Changes in the components of Total equity were as follows: (dollars in millions, except per share amounts, and shares in thousands) Three months ended June 30, 2019 2018 Shares Amount Shares Amount Common Stock Balance at beginning of period 4,291,434 $ 429 4,291,422 $ 429 Common shares issued — — 12 — Balance at end of period 4,291,434 429 4,291,434 429 Additional Paid In Capital Balance at beginning of period 13,418 13,437 Other 1 1 Balance at end of period 13,419 13,438 Retained Earnings Balance at beginning of period 46,493 39,974 Net income attributable to Verizon 3,944 4,120 Dividends declared ($0.6025, $0.5900 per share) (2,492 ) (2,437 ) Balance at end of period 47,945 41,657 Accumulated Other Comprehensive Income Balance at beginning of period attributable to Verizon 2,216 3,705 Foreign currency translation adjustments (67 ) (176 ) Unrealized loss on cash flow hedges (537 ) (152 ) Unrealized gain on marketable securities 4 1 Defined benefit pension and postretirement plans (169 ) (173 ) Other comprehensive loss (769 ) (500 ) Balance at end of period attributable to Verizon 1,447 3,205 Treasury Stock Balance at beginning of period (155,727 ) (6,825 ) (159,526 ) (6,992 ) Employee plans 58 2 28 2 Shareholder plans — — — — Balance at end of period (155,669 ) (6,823 ) (159,498 ) (6,990 ) Deferred Compensation-ESOPs and Other Balance at beginning of period 125 228 Restricted stock equity grant 44 38 Amortization (4 ) 19 Balance at end of period 165 285 Noncontrolling Interests Balance at beginning of period 1,604 1,564 Total comprehensive income 130 126 Distributions and other (369 ) (139 ) Balance at end of period 1,365 1,551 Total Equity $ 57,947 $ 53,575 (dollars in millions, except per share amounts, and shares in thousands) Six months ended June 30, 2019 2018 Shares Amount Shares Amount Common Stock Balance at beginning of year 4,291,434 $ 429 4,242,374 $ 424 Common shares issued — — 49,060 5 Balance at end of period 4,291,434 429 4,291,434 429 Additional Paid In Capital Balance at beginning of year 13,437 11,101 Other (18 ) 2,337 Balance at end of period 13,419 13,438 Retained Earnings Balance at beginning of year 43,542 35,635 Opening balance sheet adjustment 410 (1) 2,232 (2) Adjusted opening balance 43,952 37,867 Net income attributable to Verizon 8,976 8,665 Dividends declared ($1.205, $1.1800 per share) (4,983 ) (4,875 ) Balance at end of period 47,945 41,657 Accumulated Other Comprehensive Income Balance at beginning of year attributable to Verizon 2,370 2,659 Opening balance sheet adjustment — 630 (2) Adjusted opening balance 2,370 3,289 Foreign currency translation adjustments (43 ) (83 ) Unrealized gain (loss) on cash flow hedges (550 ) 349 Unrealized gain (loss) on marketable securities 8 (4 ) Defined benefit pension and postretirement plans (338 ) (346 ) Other comprehensive loss (923 ) (84 ) Balance at end of period attributable to Verizon 1,447 3,205 Treasury Stock Balance at beginning of year (159,400 ) (6,986 ) (162,898 ) (7,139 ) Employee plans 3,726 163 3,396 149 Shareholder plans 5 — 4 — Balance at end of period (155,669 ) (6,823 ) (159,498 ) (6,990 ) Deferred Compensation-ESOPs and Other Balance at beginning of year 353 416 Restricted stock equity grant 79 91 Amortization (267 ) (222 ) Balance at end of period 165 285 Noncontrolling Interests Balance at beginning of year 1,565 1,591 Opening balance sheet adjustment 1 (1) 44 (2) Adjusted opening balance 1,566 1,635 Total comprehensive income 258 247 Distributions and other (459 ) (331 ) Balance at end of period 1,365 1,551 Total Equity $ 57,947 $ 53,575 (1) Opening balance sheet adjustments for the six months ended June 30, 2019 are due to the adoption of Topic 842 on January 1, 2019. See Note 1 for additional information. (2) Opening balance sheet adjustments for the six months ended June 30, 2018 are due to the adoption of multiple ASUs on January 1, 2018. Refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 for additional information. |
Schedule of Components in Accumulated Other Comprehensive Income | The changes in the balances of Accumulated other comprehensive income by component were as follows: (dollars in millions) Foreign currency translation adjustments Unrealized gain (loss) on cash flow hedges Unrealized gain on marketable securities Defined benefit pension and postretirement plans Total Balance at January 1, 2019 $ (600 ) $ (80 ) $ 20 $ 3,030 $ 2,370 Other comprehensive income (loss) (43 ) (607 ) 8 — (642 ) Amounts reclassified to net income — 57 — (338 ) (281 ) Net other comprehensive income (loss) (43 ) (550 ) 8 (338 ) (923 ) Balance at June 30, 2019 $ (643 ) $ (630 ) $ 28 $ 2,692 $ 1,447 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Operating Information | Our segments and their principal activities consist of the following: Segment Description Verizon Consumer Group Our Consumer segment provides consumer-focused wireless and wireline communications services and products. Our wireless services are provided across one of the most extensive wireless networks in the U.S. under the Verizon Wireless brand and through wholesale and other arrangements. Our wireline services are provided in nine states in the Mid-Atlantic and Northeastern U.S., as well as Washington D.C., over our 100% fiber-optic network under the Fios brand and over a traditional copper-based network to customers who are not served by Fios. Verizon Our Business segment provides wireless and wireline communications services and products, video and data services, corporate networking solutions, security and managed network services, local and long distance voice services and network access to deliver various IoT services and products. We provide these products and services to businesses, government customers and wireless and wireline carriers across the U.S. and select products and services to customers around the world. The following table provides operating financial information for our two reportable segments: Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2019 2018 2019 2018 External Operating Revenues Consumer Service $ 16,350 $ 16,050 $ 32,611 $ 31,864 Wireless equipment 3,904 4,251 8,070 8,521 Other 1,680 1,650 3,350 3,130 Total Consumer 21,934 21,951 44,031 43,515 Business Global Enterprise 2,673 2,808 5,363 5,632 Small and Medium Business 2,781 2,638 5,485 5,166 Public Sector and Other 1,492 1,437 2,963 2,866 Wholesale 810 956 1,650 1,941 Total Business 7,756 7,839 15,461 15,605 Total reportable segments $ 29,690 $ 29,790 $ 59,492 $ 59,120 Intersegment Revenues Consumer $ 61 $ 52 $ 112 $ 115 Business 12 12 26 29 Total reportable segments $ 73 $ 64 $ 138 $ 144 Total Operating Revenues Consumer $ 21,995 $ 22,003 $ 44,143 $ 43,630 Business (1) 7,768 7,851 15,487 15,634 Total reportable segments $ 29,763 $ 29,854 $ 59,630 $ 59,264 Operating Income Consumer $ 7,336 $ 7,060 $ 14,586 $ 13,995 Business 1,071 1,101 2,119 2,215 Total reportable segments $ 8,407 $ 8,161 $ 16,705 $ 16,210 (1) Service and other revenues included in our Business segment amounted to approximately $7.0 billion and $13.9 billion for the three and six months ended June 30, 2019 , respectively, and approximately $7.1 billion and $14.0 billion for the three and six months ended June 30, 2018 , respectively. Wireless equipment revenues included in our Business segment amounted to approximately $814 million and $1.6 billion for the three and six months ended June 30, 2019 , respectively, and approximately $793 million and $1.6 billion for the three and six months ended June 30, 2018 , respectively. The following table provides Fios revenue for our two reportable segments: Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2019 2018 2019 2018 Consumer $ 2,772 $ 2,738 $ 5,536 $ 5,472 Business 239 218 482 435 Total Fios revenue $ 3,011 $ 2,956 $ 6,018 $ 5,907 The following table provides Wireless service revenue under our current reportable structure and includes intersegment activity: Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2019 2018 2019 2018 Consumer $ 13,456 $ 13,122 $ 26,813 $ 26,003 Business 2,775 2,615 5,469 5,116 Total Wireless service revenue $ 16,231 $ 15,737 $ 32,282 $ 31,119 |
Summary of Reconciliation of Segment Operating Revenues | A reconciliation of the reportable segment operating revenues to consolidated operating revenues is as follows: Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2019 2018 2019 2018 Total reportable segment operating revenues $ 29,763 $ 29,854 $ 59,630 $ 59,264 Corporate and other 2,412 2,429 4,747 4,891 Eliminations (104 ) (80 ) (178 ) (180 ) Total consolidated operating revenues $ 32,071 $ 32,203 $ 64,199 $ 63,975 |
Summary of Reconciliation of Segment Operating Income | A reconciliation of total reportable segment operating income to consolidated income before provision for income taxes is as follows: Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2019 2018 2019 2018 Total reportable segment operating income $ 8,407 $ 8,161 $ 16,705 $ 16,210 Corporate and other (354 ) (426 ) (740 ) (811 ) Severance charges (Note 9) — (339 ) — (339 ) Other components of net periodic benefit charges (Note 9) (203 ) (208 ) (406 ) (416 ) Acquisition and integration related charges — (120 ) — (227 ) Product realignment charges — (451 ) — (451 ) Total consolidated operating income 7,850 6,617 15,559 13,966 Equity in losses of unconsolidated businesses (13 ) (228 ) (19 ) (247 ) Other income (expense), net (1,312 ) 360 (1,017 ) 285 Interest expense (1,215 ) (1,222 ) (2,425 ) (2,423 ) Income Before Provision For Income Taxes $ 5,310 $ 5,527 $ 12,098 $ 11,581 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019USD ($)segmentshares | Jun. 30, 2018shares | Jun. 30, 2019USD ($)segmentshares | Jun. 30, 2018shares | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||
Restricted stock units outstanding to purchase shares included in diluted earnings per common share (in shares) | shares | 2 | 4 | 2 | 4 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Number of reportable segments | segment | 2 | 2 | |||||
Operating lease, liability | $ 21,408 | $ 21,408 | |||||
Operating lease right-of-use assets | $ 22,467 | $ 22,467 | $ 23,241 | ||||
Accounting Standards Update 2016-02 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Operating lease, liability | 22,100 | ||||||
Operating lease right-of-use assets | 23,241 | ||||||
Retained Earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect of applying new accounting standards, pre-tax | $ 410 | $ 2,232 | |||||
Retained Earnings | Accounting Standards Update 2016-02 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect of applying new accounting standards, pre-tax | $ 410 |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 1,949 | $ 2,745 | ||
Increase (decrease) of cash and cash equivalents | (796) | |||
Cash, cash equivalents and restricted cash | 3,120 | $ 2,728 | 3,916 | $ 2,888 |
Decrease in cash, cash equivalents and restricted cash | (796) | $ (160) | ||
Prepaid expenses and other | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | 1,055 | 1,047 | ||
Increase (decrease) in restricted cash | 8 | |||
Other assets | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | 116 | $ 124 | ||
Increase (decrease) in restricted cash | $ (8) |
Basis of Presentation - Sched_2
Basis of Presentation - Schedule of Cumulative Effect for Adoption of New Accounting Pronouncement (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepaid expenses and other | $ 5,266 | $ 5,124 | $ 5,453 |
Operating lease right-of-use assets | 22,467 | 23,241 | |
Other assets | 10,426 | 9,669 | 11,717 |
Accounts payable and accrued liabilities | 17,633 | 22,498 | 22,501 |
Other current liabilities | 8,654 | 8,237 | 8,239 |
Current operating lease liabilities | 3,154 | 2,931 | |
Deferred income taxes | 34,225 | 33,934 | 33,795 |
Non-current operating lease liabilities | 18,254 | 19,203 | |
Other liabilities | 11,830 | 12,107 | 13,922 |
Retained earnings | 47,945 | 43,952 | 43,542 |
Noncontrolling interests | $ 1,365 | 1,566 | $ 1,565 |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepaid expenses and other | (329) | ||
Operating lease right-of-use assets | 23,241 | ||
Other assets | (2,048) | ||
Accounts payable and accrued liabilities | (3) | ||
Other current liabilities | (2) | ||
Current operating lease liabilities | 2,931 | ||
Deferred income taxes | 139 | ||
Non-current operating lease liabilities | 19,203 | ||
Other liabilities | (1,815) | ||
Retained earnings | 410 | ||
Noncontrolling interests | $ 1 |
Revenues and Contract Costs - A
Revenues and Contract Costs - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | ||||
Number of reportable segments | segment | 2 | 2 | ||
Revenues from leasing arrangements, captive reinsurance arrangements and interest on equipment financed | $ 797,000,000 | $ 1,100,000,000 | $ 1,600,000,000 | $ 2,300,000,000 |
Percentage of month-to-month contracts of total service contracts | 57.00% | 57.00% | ||
Amortization of deferred contract costs | $ 639,000,000 | 471,000,000 | $ 1,300,000,000 | 877,000,000 |
Contract assets impairment charge | 0 | 0 | 0 | 0 |
Media Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | $ 1,800,000,000 | $ 1,900,000,000 | $ 3,600,000,000 | $ 3,800,000,000 |
Wireless postpaid contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of month-to-month contracts of total service contracts | 87.00% | 83.00% | 87.00% | 83.00% |
Wireline Consumer and Small and Medium Business contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of month-to-month contracts of total service contracts | 56.00% | 56.00% | ||
Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Customer contracts service term | 2 years | |||
Maximum | Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Customer contracts service term | 12 months |
Revenues and Contract Costs - R
Revenues and Contract Costs - Revenue Performance Obligations (Details) $ in Billions | Jun. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 10.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 14.7 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 5.9 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Customer Contracts that Have Contract Minimum over Total Contract Term | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 3.9 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 5 years |
Revenues and Contract Costs - S
Revenues and Contract Costs - Schedule of Receivables from Contracts with Customers (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 | Jun. 30, 2018 | Jan. 01, 2018 |
Revenue from Contract with Customer [Abstract] | ||||
Receivables | $ 12,173 | $ 12,104 | $ 11,412 | $ 12,073 |
Device payment plan agreement receivables | $ 10,053 | $ 8,940 | $ 5,258 | $ 1,461 |
Revenues and Contract Costs - C
Revenues and Contract Costs - Contract with Customer, Asset and Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||
Contract asset | $ 1,059 | $ 1,059 | $ 1,059 | $ 1,059 | $ 1,003 | $ 1,003 | $ 1,170 |
Contract liability | 4,946 | 4,652 | 4,946 | 4,652 | $ 4,943 | 4,943 | $ 4,452 |
Revenue recognized related to contract liabilities existing | 194 | $ 327 | 3,900 | $ 3,800 | |||
Prepaid expenses and other | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Contract asset | 812 | 812 | 757 | ||||
Other assets | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Contract asset | 247 | 247 | 246 | ||||
Other current liabilities | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Contract liability | 4,323 | 4,323 | 4,207 | ||||
Other liabilities | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Contract liability | $ 623 | $ 623 | $ 736 |
Revenues and Contract Costs -_2
Revenues and Contract Costs - Schedule of Cost Incurred to Obtain or Fulfill Contracts with Customers (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Capitalized Contract Cost [Line Items] | ||
Cost incurred to obtain or fulfill contracts with customers | $ 4,126 | $ 3,895 |
Minimum | ||
Capitalized Contract Cost [Line Items] | ||
Deferred contract cost, amortization period | 2 years | |
Maximum | ||
Capitalized Contract Cost [Line Items] | ||
Deferred contract cost, amortization period | 5 years | |
Prepaid expenses and other | ||
Capitalized Contract Cost [Line Items] | ||
Cost incurred to obtain or fulfill contracts with customers | $ 2,352 | 2,083 |
Other assets | ||
Capitalized Contract Cost [Line Items] | ||
Cost incurred to obtain or fulfill contracts with customers | $ 1,774 | $ 1,812 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($)auctionLicense | |
Business Acquisition [Line Items] | |
Number of millimeter wave spectrum license auctions participated | auction | 2 |
Spectrum licenses | |
Business Acquisition [Line Items] | |
Payments for deposits | $ | $ 521 |
Spectrum Licenses, 24 GHz | |
Business Acquisition [Line Items] | |
Number of licenses acquired | 9 |
Spectrum Licenses, 28 GHz | |
Business Acquisition [Line Items] | |
Number of licenses acquired | 1,066 |
Wireless Licenses, Goodwill a_3
Wireless Licenses, Goodwill and Other Intangible Assets - Carrying Amount of Wireless Licenses (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Wireless licenses | $ 94,333 | $ 94,130 |
Wireless Licenses, Goodwill a_4
Wireless Licenses, Goodwill and Other Intangible Assets - Additional Information (Detail) - Wireless Licenses - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Wireless licenses under development | $ 6,600 | $ 11,500 |
Interest costs capitalized | $ 168 | $ 269 |
Average remaining renewal period of wireless license portfolio (in years) | 4 years 3 months 18 days |
Wireless Licenses, Goodwill a_5
Wireless Licenses, Goodwill and Other Intangible Assets - Changes in Carrying Value of Goodwill (Detail) - USD ($) $ in Millions | Apr. 01, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Goodwill [Line Items] | ||||
Beginning balance | $ 24,635 | $ 24,635 | $ 24,614 | |
Acquisitions | 1 | 20 | ||
Reclassifications, adjustments and other | (4) | 1 | ||
Ending balance | 24,635 | 24,632 | 24,635 | |
Goodwill accumulated impairment charge | $ 4,600 | |||
Operating Segments | ||||
Goodwill [Line Items] | ||||
Acquisitions | ||||
Operating Segments | Wireless | ||||
Goodwill [Line Items] | ||||
Beginning balance | 18,397 | 18,397 | ||
Acquisitions | 0 | |||
Reclassifications, adjustments and other | 0 | |||
Reporting Unit reallocation | (18,397) | |||
Ending balance | 18,397 | |||
Operating Segments | Wireline | ||||
Goodwill [Line Items] | ||||
Beginning balance | 3,892 | 3,871 | ||
Acquisitions | 20 | |||
Reclassifications, adjustments and other | 1 | |||
Reporting Unit reallocation | (3,892) | |||
Ending balance | 3,892 | |||
Operating Segments | Consumer | ||||
Goodwill [Line Items] | ||||
Beginning balance | 17,104 | |||
Acquisitions | 0 | |||
Reclassifications, adjustments and other | 0 | |||
Reporting Unit reallocation | 17,104 | |||
Ending balance | 17,104 | 17,104 | ||
Operating Segments | Business | ||||
Goodwill [Line Items] | ||||
Beginning balance | 7,269 | |||
Acquisitions | 1 | |||
Reclassifications, adjustments and other | (4) | |||
Reporting Unit reallocation | 7,269 | |||
Ending balance | 7,269 | 7,266 | ||
Other | ||||
Goodwill [Line Items] | ||||
Beginning balance | 2,346 | 262 | 2,346 | |
Acquisitions | 0 | 0 | ||
Reclassifications, adjustments and other | 0 | 0 | ||
Reporting Unit reallocation | (2,084) | |||
Ending balance | $ 262 | $ 262 | $ 2,346 |
Wireless Licenses, Goodwill a_6
Wireless Licenses, Goodwill and Other Intangible Assets - Composition of Other Intangible Assets, Net (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 25,287 | $ 24,542 |
Accumulated Amortization | (15,813) | (14,767) |
Net Amount | 9,474 | 9,775 |
Customer Lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 3,948 | 3,951 |
Accumulated Amortization | (1,299) | (1,121) |
Net Amount | $ 2,649 | 2,830 |
Customer Lists | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible asset, useful life | 8 years | |
Customer Lists | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible asset, useful life | 13 years | |
Non-Network Internal-Use Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 19,354 | 18,603 |
Accumulated Amortization | (13,589) | (12,785) |
Net Amount | $ 5,765 | 5,818 |
Non-Network Internal-Use Software | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible asset, useful life | 3 years | |
Non-Network Internal-Use Software | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible asset, useful life | 7 years | |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 1,985 | 1,988 |
Accumulated Amortization | (925) | (861) |
Net Amount | $ 1,060 | $ 1,127 |
Other | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible asset, useful life | 2 years | |
Other | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible asset, useful life | 25 years |
Wireless Licenses, Goodwill a_7
Wireless Licenses, Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense for other intangible assets | $ 569 | $ 557 | $ 1,124 | $ 1,091 |
Remainder of 2019 | 1,086 | 1,086 | ||
2020 | 1,903 | 1,903 | ||
2021 | 1,610 | 1,610 | ||
2022 | 1,335 | 1,335 | ||
2023 | 1,049 | 1,049 | ||
2024 | $ 795 | $ 795 |
Leasing Arrangements - Addition
Leasing Arrangements - Additional Information (Details) $ in Millions | Jul. 23, 2019USD ($)option | Mar. 31, 2015USD ($)Lease | Jun. 30, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |||
Leases renewal term | 25 years | ||
Contractually obligated lease payments for operating leases not yet commenced | $ 477 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Leases remaining lease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Leases remaining lease term | 24 years | ||
Tower Monetization Transaction | |||
Lessee, Lease, Description [Line Items] | |||
Number of towers subject to failed sale leaseback | Lease | 11,300 | ||
Proceeds from failed sale lease back | $ 5,000 | ||
Minimum number of years to sublease capacity on towers | 10 years | ||
Subsequent Event | |||
Lessee, Lease, Description [Line Items] | |||
Gross proceeds of sale-leaseback transaction | $ 1,000 | ||
Sale-leaseback transaction, lease terms | P2Y | ||
Sale-leaseback transaction, number of renewal options | option | 4 | ||
Sale-leaseback transaction, renewal term | 3 months |
Leasing Arrangements - Componen
Leasing Arrangements - Components of Net Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 1,178 | $ 2,348 |
Finance lease cost: | ||
Amortization of right-of-use assets | 82 | 168 |
Interest on lease liabilities | 10 | 19 |
Short-term lease cost | 8 | 24 |
Variable lease cost | 51 | 108 |
Sublease income | (67) | (134) |
Total net lease cost | $ 1,262 | $ 2,533 |
Leasing Arrangements - Suppleme
Leasing Arrangements - Supplemental Disclosure for Statement of Cash Flows related to Operating and Finance Leases (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows for operating leases | $ (2,089) |
Operating cash flows for finance leases | (19) |
Financing cash flows for finance leases | (178) |
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | 1,300 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 221 |
Leasing Arrangements - Supple_2
Leasing Arrangements - Supplemental Disclosure for Balance Sheet related to Finance Leases (Details) $ in Millions | Jun. 30, 2019USD ($) |
Finance Lease, Assets [Abstract] | |
Property, plant and equipment, net | $ 823 |
Finance Lease, Liabilities [Abstract] | |
Debt maturing within one year | 321 |
Long-term debt | 627 |
Total Finance lease liabilities | $ 948 |
Leasing Arrangements - Schedule
Leasing Arrangements - Schedule of Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate related to Leases (Details) | Jun. 30, 2019 |
Leases [Abstract] | |
Operating leases, weighted average remaining lease term | 9 years |
Finance leases, weighted average remaining lease term | 4 years |
Operating leases, weighted average discount rate | 4.10% |
Finance leases, weighted average discount rate | 4.00% |
Leasing Arrangements - Schedu_2
Leasing Arrangements - Schedule of Lease Liability Maturity (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 |
Operating Leases | ||
2019 | $ 1,996 | |
2020 | 3,840 | |
2021 | 3,460 | |
2022 | 3,067 | |
2023 | 2,713 | |
Thereafter | 11,094 | |
Total lease payments | 26,170 | |
Less interest | (4,762) | |
Present value of lease liabilities | 21,408 | |
Less current obligation | (3,154) | $ (2,931) |
Non-current operating lease liabilities | 18,254 | $ 19,203 |
Finance Leases | ||
2019 | 178 | |
2020 | 291 | |
2021 | 198 | |
2022 | 137 | |
2023 | 88 | |
Thereafter | 144 | |
Total lease payments | 1,036 | |
Less interest | (88) | |
Total Finance lease liabilities | 948 | |
Less current obligation | (321) | |
Long-term debt | $ 627 |
Debt - February Exchange Offers
Debt - February Exchange Offers (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 |
Debt Instrument [Line Items] | ||
Principal Amount Issued | $ 1,510 | |
February Exchange Offers | ||
Debt Instrument [Line Items] | ||
Principal Amount Exchanged | $ 3,913 | |
Principal Amount Issued | 4,000 | |
February Exchange Offers | Verizon 1.750% - 5.150% notes and floating rate notes, due 2021 - 2025 | ||
Debt Instrument [Line Items] | ||
Principal Amount Exchanged | 3,892 | |
February Exchange Offers | GTE LLC 8.750% debentures, due 2021 | ||
Debt Instrument [Line Items] | ||
Principal Amount Exchanged | $ 21 | |
Stated interest rate on debt instrument | 8.75% | |
February Exchange Offers | Verizon 4.016% notes due 2029 | ||
Debt Instrument [Line Items] | ||
Principal Amount Issued | $ 4,000 | |
Stated interest rate on debt instrument | 4.016% | |
Minimum | February Exchange Offers | Verizon 1.750% - 5.150% notes and floating rate notes, due 2021 - 2025 | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 1.175% | |
Maximum | February Exchange Offers | Verizon 1.750% - 5.150% notes and floating rate notes, due 2021 - 2025 | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 5.15% |
Debt - May Tender Offers (Detai
Debt - May Tender Offers (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 |
Debt Instrument [Line Items] | ||
Cash Consideration | $ 1,510 | |
May Tender Offers | ||
Debt Instrument [Line Items] | ||
Principal Amount Purchased | $ 4,500 | |
Cash Consideration | $ 5,030 | |
May Tender Offers | Verizon 5.012% notes due 2054 | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 5.012% | |
Principal Amount Purchased | $ 3,192 | |
Cash Consideration | $ 3,626 | |
May Tender Offers | Verizon 4.672% notes due 2055 | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 4.672% | |
Principal Amount Purchased | $ 1,308 | |
Cash Consideration | $ 1,404 |
Debt - Debt Redemptions, Repurc
Debt - Debt Redemptions, Repurchases and Repayments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | |
Debt Instrument [Line Items] | ||
Principal Redeemed / Repaid | $ 4,531 | |
Verizon 5.900% notes due 2054 | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 5.90% | |
Verizon 1.375% notes due 2019 | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 1.375% | |
Verizon 1.750% notes due 2021 | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 1.75% | |
Verizon 3.000% notes due 2021 | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 3.00% | |
Verizon 3.500% notes due 2021 | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 3.50% | 3.50% |
Verizon 2.625% notes due 2020 | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 2.625% | |
Verizon floating rate (LIBOR 0.770%) notes due 2019 | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 1.003% | |
March 2019 | ||
Debt Instrument [Line Items] | ||
Principal Redeemed / Repaid | $ 2,735 | |
March 2019 | Verizon 5.900% notes due 2054 | ||
Debt Instrument [Line Items] | ||
Principal Redeemed / Repaid | $ 500 | |
Amount Paid as % of Principal | 100.00% | |
March 2019 | Verizon 1.375% notes due 2019 | ||
Debt Instrument [Line Items] | ||
Principal Redeemed / Repaid | $ 206 | |
Amount Paid as % of Principal | 100.00% | |
March 2019 | Verizon 1.750% notes due 2021 | ||
Debt Instrument [Line Items] | ||
Principal Redeemed / Repaid | $ 621 | |
Amount Paid as % of Principal | 100.00% | |
March 2019 | Verizon 3.000% notes due 2021 | ||
Debt Instrument [Line Items] | ||
Principal Redeemed / Repaid | $ 930 | |
Amount Paid as % of Principal | 101.061% | |
March 2019 | Verizon 3.500% notes due 2021 | ||
Debt Instrument [Line Items] | ||
Principal Redeemed / Repaid | $ 315 | |
Amount Paid as % of Principal | 102.18% | |
March 2019 | Open market repurchases of various Verizon notes | ||
Debt Instrument [Line Items] | ||
Principal Redeemed / Repaid | $ 163 | |
June 2019 | ||
Debt Instrument [Line Items] | ||
Principal Redeemed / Repaid | $ 1,796 | |
June 2019 | Verizon 3.500% notes due 2021 | ||
Debt Instrument [Line Items] | ||
Principal Redeemed / Repaid | $ 736 | |
Amount Paid as % of Principal | 102.238% | |
June 2019 | Verizon 2.625% notes due 2020 | ||
Debt Instrument [Line Items] | ||
Principal Redeemed / Repaid | $ 831 | |
Amount Paid as % of Principal | 100.037% | |
June 2019 | Verizon floating rate (LIBOR 0.770%) notes due 2019 | ||
Debt Instrument [Line Items] | ||
Principal Redeemed / Repaid | $ 229 | |
Amount Paid as % of Principal | 100.00% |
Debt - Debt Issuances (Details)
Debt - Debt Issuances (Details) € in Millions, £ in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2019EUR (€) | Jun. 30, 2019GBP (£) | |
Debt Instrument [Line Items] | |||||
Principal Amount Issued | $ 1,510 | ||||
Proceeds from long-term borrowings | $ 3,423 | 1,500 | $ 4,923 | ||
Verizon 3.875% notes due 2029 | |||||
Debt Instrument [Line Items] | |||||
Principal Amount Issued | 1,000 | ||||
Proceeds from long-term borrowings | $ 994 | ||||
Stated interest rate on debt instrument | 3.875% | ||||
Verizon 5.000% notes due 2051 | |||||
Debt Instrument [Line Items] | |||||
Principal Amount Issued | $ 510 | ||||
Proceeds from long-term borrowings | $ 506 | ||||
Stated interest rate on debt instrument | 5.00% | ||||
Verizon 0.875% notes due 2027 | |||||
Debt Instrument [Line Items] | |||||
Principal Amount Issued | € | € 1,250 | ||||
Proceeds from long-term borrowings | 1,391 | ||||
Stated interest rate on debt instrument | 0.875% | 0.875% | |||
Verizon 1.250% notes due 2030 | |||||
Debt Instrument [Line Items] | |||||
Principal Amount Issued | € | € 1,250 | ||||
Proceeds from long-term borrowings | 1,385 | ||||
Stated interest rate on debt instrument | 1.25% | 1.25% | |||
Verizon 2.500% notes due 2031 | |||||
Debt Instrument [Line Items] | |||||
Principal Amount Issued | £ | £ 500 | ||||
Proceeds from long-term borrowings | $ 647 | ||||
Stated interest rate on debt instrument | 2.50% | 2.50% |
Debt - Short-Term Borrowing and
Debt - Short-Term Borrowing and Commercial Paper Program (Details) | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Debt Instrument [Line Items] | |
Commercial paper outstanding | $ 200,000,000 |
Short term credit facility | |
Debt Instrument [Line Items] | |
Repayments of debt | 600,000,000 |
Short-term debt outstanding | $ 0 |
Debt - Asset-Backed Debt Narrat
Debt - Asset-Backed Debt Narrative (Detail) $ in Millions | Aug. 08, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($)Agreement |
Asset-Backed Debt | |||
Debt Instrument [Line Items] | |||
Secured debt, carrying value | $ 11,300 | $ 11,300 | |
Asset Backed Notes | |||
Debt Instrument [Line Items] | |||
Debt revolving period | 2 years | ||
2018 ABS Financing Facility | |||
Debt Instrument [Line Items] | |||
Debt revolving period | 1 year | ||
Repayments of debt | 540 | ||
2019 ABS Financing Facility | |||
Debt Instrument [Line Items] | |||
Debt revolving period | 2 years | ||
Repayments of debt | 671 | ||
Debt outstanding | 1,800 | $ 1,800 | |
Number of loan agreements | Agreement | 2 | ||
Senior asset-backed notes | Asset Backed Notes | |||
Debt Instrument [Line Items] | |||
Repayments of debt | $ 794 | $ 1,400 | |
Subsequent Event | 2019 ABS Financing Facility | |||
Debt Instrument [Line Items] | |||
Repayments of debt | $ 1,500 |
Debt - Schedule of ABS Notes Tr
Debt - Schedule of ABS Notes Transactions (Details) - USD ($) | 1 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | |
Debt Instrument [Line Items] | ||
Principal Amount Issued | $ 1,510,000,000 | |
Asset Backed Notes | ||
Debt Instrument [Line Items] | ||
Principal Amount Issued | $ 2,244,000,000 | |
Asset Backed Notes, March | ||
Debt Instrument [Line Items] | ||
Principal Amount Issued | $ 1,122,000,000 | |
Asset Backed Notes, June | ||
Debt Instrument [Line Items] | ||
Principal Amount Issued | $ 1,122,000,000 | |
A-1a Senior class notes | Asset Backed Notes, March | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 2.93% | |
Expected Weighted-average Life to Maturity | 2 years 6 months | |
Principal Amount Issued | $ 900,000,000 | |
A-1a Senior class notes | Asset Backed Notes, June | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 2.33% | |
Expected Weighted-average Life to Maturity | 2 years 6 months 7 days | |
Principal Amount Issued | $ 855,000,000 | |
A-1b Senior floating rate class notes | Asset Backed Notes | ||
Debt Instrument [Line Items] | ||
Debt effective rate | 2.398% | |
A-1b Senior floating rate class notes | Asset Backed Notes, March | ||
Debt Instrument [Line Items] | ||
Expected Weighted-average Life to Maturity | 2 years 6 months | |
Principal Amount Issued | $ 100,000,000 | |
A-1b Senior floating rate class notes | Asset Backed Notes, June | ||
Debt Instrument [Line Items] | ||
Expected Weighted-average Life to Maturity | 2 years 6 months 7 days | |
Principal Amount Issued | $ 145,000,000 | |
B Junior class notes | Asset Backed Notes, March | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 3.02% | |
Expected Weighted-average Life to Maturity | 3 years 2 months 19 days | |
Principal Amount Issued | $ 69,000,000 | |
B Junior class notes | Asset Backed Notes, June | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 2.40% | |
Expected Weighted-average Life to Maturity | 3 years 3 months 10 days | |
Principal Amount Issued | $ 69,000,000 | |
C Junior class notes | Asset Backed Notes, March | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 3.22% | |
Expected Weighted-average Life to Maturity | 3 years 4 months 24 days | |
Principal Amount Issued | $ 53,000,000 | |
C Junior class notes | Asset Backed Notes, June | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 2.60% | |
Expected Weighted-average Life to Maturity | 3 years 5 months 19 days | |
Principal Amount Issued | $ 53,000,000 | |
London Interbank Offered Rate (LIBOR) | A-1b Senior floating rate class notes | Asset Backed Notes, March | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.33% | |
London Interbank Offered Rate (LIBOR) | A-1b Senior floating rate class notes | Asset Backed Notes, June | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.45% |
Debt - Assets and Liabilities R
Debt - Assets and Liabilities Related to Asset-backed Debt Arrangements (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Account receivable, net | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | $ 10,095 | $ 8,861 |
Prepaid expenses and other | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 1,020 | 989 |
Other assets | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 3,353 | 2,725 |
Accounts payable and accrued liabilities | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 11 | 7 |
Short-term portion of long-term debt | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 4,477 | 5,352 |
Long-term debt | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | $ 6,775 | $ 4,724 |
Debt - Credit Facilities, Non-C
Debt - Credit Facilities, Non-Cash Transaction, Early Debt Redemptions, Guarantees (Detail) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($)Agreement | Jul. 31, 2017USD ($) | Mar. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |||||
Borrowing capacity | $ 9,500,000,000 | $ 9,500,000,000 | |||
Amount of unused borrowing capacity under credit facility | 9,400,000,000 | 9,400,000,000 | |||
Net pre-tax losses on early debt redemption | 1,500,000,000 | ||||
Guarantee of Debentures of Operating Telephone Company Subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Principal amount outstanding in connection with the guarantee of debt obligations | 796,000,000 | 796,000,000 | |||
Guarantee of Debt Obligations of GTE Corporation | |||||
Debt Instrument [Line Items] | |||||
Principal amount outstanding in connection with the guarantee of debt obligations | 423,000,000 | 423,000,000 | |||
Network Equipment | Vendor Financing Facility | |||||
Debt Instrument [Line Items] | |||||
Value of purchase assets financed | 221,000,000 | $ 862,000,000 | |||
Long-term debt maturing within one year | 1,000,000,000 | 1,000,000,000 | 1,400,000,000 | ||
Equipment Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | $ 4,000,000,000 | ||||
Amount drawn from credit facilities | 450,000,000 | 874,000,000 | 1,700,000,000 | ||
Debt outstanding | 3,500,000,000 | 3,500,000,000 | |||
Equipment Credit Facilities | Network Equipment | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | $ 1,000,000,000 | ||||
Line of credit outstanding balance | 647,000,000 | $ 647,000,000 | |||
May Tender Offers | |||||
Debt Instrument [Line Items] | |||||
Net pre-tax losses on early debt redemption | $ 1,500,000,000 | ||||
2018 March Tender Offers | |||||
Debt Instrument [Line Items] | |||||
Net pre-tax losses on early debt redemption | $ 249,000,000 | ||||
Number of debt instruments in debt tender offer | Agreement | 13 | ||||
Minimum | 2018 March Tender Offers | Verizon 1.750% to 5.012% Notes Due 2021 to 2055 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.75% | ||||
Maximum | 2018 March Tender Offers | Verizon 1.750% to 5.012% Notes Due 2021 to 2055 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.012% |
Wireless Device Payment Plans -
Wireless Device Payment Plans - Schedule of Device Payment Plan Agreement Receivables (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Device payment plan agreement receivables, gross | $ 18,327 | $ 19,313 | ||
Unamortized imputed interest | (455) | (546) | ||
Device payment plan agreement receivables, net of unamortized imputed interest | 17,872 | 18,767 | ||
Allowance for credit losses | (487) | (597) | $ (754) | $ (848) |
Device payment plan agreement receivables, net | 17,385 | 18,170 | ||
Account receivable, net | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Device payment plan agreement receivables, net | 12,486 | 12,624 | ||
Other assets | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Device payment plan agreement receivables, net | $ 4,899 | $ 5,546 |
Wireless Device Payment Plans_2
Wireless Device Payment Plans - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | ||||
Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Jan. 01, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Receivables transferred to ABS Entities | $ 13,400 | $ 11,500 | |||
Device payment plan agreement, trade-in liability | $ (4,946) | $ (4,943) | (4,943) | $ (4,652) | $ (4,452) |
Number of customer tenure days | 210 days | ||||
Minimum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Required down payment percentage | 0.00% | ||||
Maximum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Required down payment percentage | 100.00% | ||||
Product Trade-in | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Device payment plan agreement, trade-in liability | $ (60) | $ (64) |
Wireless Device Payment Plans_3
Wireless Device Payment Plans - Balance and Aging of Receivables (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Device payment plan agreement receivables, gross | $ 18,327 | $ 19,313 |
Unbilled | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Device payment plan agreement receivables, current | 17,042 | 18,043 |
Billed | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Device payment plan agreement receivables, current | 1,028 | 986 |
Device payment plan agreement receivables, past due | $ 257 | $ 284 |
Wireless Device Payment Plans_4
Wireless Device Payment Plans - Allowance for Credit Losses (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | $ 597 | $ 848 |
Bad debt expense | 401 | 237 |
Write-offs | (511) | (331) |
Ending balance | $ 487 | $ 754 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Total | $ 1,140 | $ 642 |
Other liabilities: | ||
Total | 1,540 | 1,413 |
Fixed income securities | ||
Assets: | ||
Debt securities, available-for-sale | 434 | 405 |
Interest rate swaps | ||
Assets: | ||
Derivative asset | 529 | 3 |
Other liabilities: | ||
Derivative liabilities | 189 | 813 |
Cross currency swaps | ||
Assets: | ||
Derivative asset | 170 | 220 |
Other liabilities: | ||
Derivative liabilities | 814 | 536 |
Forward starting interest rate swaps | ||
Other liabilities: | ||
Derivative liabilities | 536 | 60 |
Interest rate caps | ||
Assets: | ||
Derivative asset | 2 | 14 |
Other liabilities: | ||
Derivative liabilities | 1 | 4 |
Foreign exchange forwards | ||
Assets: | ||
Derivative asset | 5 | |
Level 1 | ||
Assets: | ||
Total | 0 | 0 |
Other liabilities: | ||
Total | 0 | 0 |
Level 1 | Fixed income securities | ||
Assets: | ||
Debt securities, available-for-sale | 0 | 0 |
Level 1 | Interest rate swaps | ||
Assets: | ||
Derivative asset | 0 | 0 |
Other liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 1 | Cross currency swaps | ||
Assets: | ||
Derivative asset | 0 | 0 |
Other liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 1 | Forward starting interest rate swaps | ||
Other liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 1 | Interest rate caps | ||
Assets: | ||
Derivative asset | 0 | 0 |
Other liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 1 | Foreign exchange forwards | ||
Assets: | ||
Derivative asset | 0 | |
Level 2 | ||
Assets: | ||
Total | 1,140 | 642 |
Other liabilities: | ||
Total | 1,540 | 1,413 |
Level 2 | Fixed income securities | ||
Assets: | ||
Debt securities, available-for-sale | 434 | 405 |
Level 2 | Interest rate swaps | ||
Assets: | ||
Derivative asset | 529 | 3 |
Other liabilities: | ||
Derivative liabilities | 189 | 813 |
Level 2 | Cross currency swaps | ||
Assets: | ||
Derivative asset | 170 | 220 |
Other liabilities: | ||
Derivative liabilities | 814 | 536 |
Level 2 | Forward starting interest rate swaps | ||
Other liabilities: | ||
Derivative liabilities | 536 | 60 |
Level 2 | Interest rate caps | ||
Assets: | ||
Derivative asset | 2 | 14 |
Other liabilities: | ||
Derivative liabilities | 1 | 4 |
Level 2 | Foreign exchange forwards | ||
Assets: | ||
Derivative asset | 5 | |
Level 3 | ||
Assets: | ||
Total | 0 | 0 |
Other liabilities: | ||
Total | 0 | 0 |
Level 3 | Fixed income securities | ||
Assets: | ||
Debt securities, available-for-sale | 0 | 0 |
Level 3 | Interest rate swaps | ||
Assets: | ||
Derivative asset | 0 | 0 |
Other liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 3 | Cross currency swaps | ||
Assets: | ||
Derivative asset | 0 | 0 |
Other liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 3 | Forward starting interest rate swaps | ||
Other liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 3 | Interest rate caps | ||
Assets: | ||
Derivative asset | 0 | 0 |
Other liabilities: | ||
Derivative liabilities | 0 | $ 0 |
Level 3 | Foreign exchange forwards | ||
Assets: | ||
Derivative asset | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) € in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | |
Derivatives, Fair Value [Line Items] | ||||||
Carrying amount of our investments without readily determinable fair values | $ 289,000,000 | $ 289,000,000 | $ 248,000,000 | |||
Investments without readily determinable fair values, impairment loss | 0 | |||||
Investments without readily determinable fair values, cumulative adjustments due to observable price changes | 58,000,000 | 58,000,000 | ||||
Collateral held related to derivative contracts | (100,000,000) | (100,000,000) | ||||
Collateral posted related to derivative contracts | 100,000,000 | |||||
Interest rate swaps | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative notional amount | 19,084,000,000 | 19,084,000,000 | 19,813,000,000 | |||
Interest rate swaps | Fair Value Hedges | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional amount of derivative instruments entered during period | 510,000,000 | |||||
Notional amount of derivative settled during period | 1,200,000,000 | |||||
Ineffectiveness portion of interest rate swaps | 60,000,000 | |||||
Cross currency swaps | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative notional amount | 20,091,000,000 | 20,091,000,000 | 16,638,000,000 | |||
Cross currency swaps | Cash Flow Hedging | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional amount of derivative instruments entered during period | 3,500,000,000 | 3,500,000,000 | ||||
Pre-tax gains (loss) recognized in other comprehensive income (loss) | (340,000,000) | $ (1,100,000,000) | (328,000,000) | |||
Forward starting interest rate swaps | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative notional amount | 3,000,000,000 | 3,000,000,000 | 4,000,000,000 | |||
Forward starting interest rate swaps | Cash Flow Hedging | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional amount of derivative instruments entered during period | 0 | 0 | ||||
Notional amount of derivative settled during period | 0 | 1,000,000,000 | ||||
Pre-tax gains (loss) recognized in other comprehensive income (loss) | (293,000,000) | (497,000,000) | ||||
Euro Denominated Debt | Net Investment Hedges | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative notional amount | € | € 750 | € 750 | ||||
Foreign exchange forwards | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative notional amount | 1,035,000,000 | 1,035,000,000 | $ 600,000,000 | |||
Foreign exchange forwards | Fair Value Hedges | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional amount of derivative instruments entered during period | 3,100,000,000 | 6,100,000,000 | ||||
Notional amount of derivative settled during period | $ 3,000,000,000 | $ 5,600,000,000 |
Fair Value Measurements - Debt
Fair Value Measurements - Debt Excluding Capital Leases (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short- and long-term debt, excluding finance leases | $ 112,424 | $ 112,159 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short- and long-term debt, excluding finance leases | $ 129,342 | $ 118,535 |
Fair Value Measurements - Notio
Fair Value Measurements - Notional Amounts of Outstanding Derivative Instruments (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 19,084 | $ 19,813 |
Cross currency swaps | ||
Derivative [Line Items] | ||
Notional Amount | 20,091 | 16,638 |
Forward starting interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 3,000 | 4,000 |
Interest rate caps | ||
Derivative [Line Items] | ||
Notional Amount | 1,292 | 2,218 |
Foreign exchange forwards | ||
Derivative [Line Items] | ||
Notional Amount | $ 1,035 | $ 600 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Cumulative Basis Adjustments for Fair Value Hedges (Details) - Long-term debt - Fair Value Hedges - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Carrying amount of hedged liabilities | $ 19,341 | $ 18,903 |
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities | $ 373 | |
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets | $ (785) |
Employee Benefits - Costs by Pl
Employee Benefits - Costs by Plans (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Pension | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 62 | $ 73 | $ 123 | $ 145 |
Amortization of prior service cost (credit) | 16 | 10 | 31 | 20 |
Expected return on plan assets | (282) | (329) | (564) | (658) |
Interest cost | 176 | 166 | 354 | 332 |
Remeasurement gain, net | (96) | 0 | ||
Other components | (90) | (153) | (275) | (306) |
Total | (28) | (80) | (152) | (161) |
Pension | Cost of services | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 50 | 59 | 100 | 117 |
Pension | Selling, general and administrative expense | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 12 | 14 | 23 | 28 |
Health Care and Life | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 24 | 32 | 48 | 64 |
Amortization of prior service cost (credit) | (243) | (244) | (486) | (488) |
Expected return on plan assets | (10) | (11) | (19) | (22) |
Interest cost | 158 | 154 | 315 | 307 |
Remeasurement gain, net | 0 | 0 | ||
Other components | (95) | (101) | (190) | (203) |
Total | (71) | (69) | (142) | (139) |
Health Care and Life | Cost of services | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 19 | 26 | 39 | 52 |
Health Care and Life | Selling, general and administrative expense | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 5 | $ 6 | $ 9 | $ 12 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Sep. 30, 2018Employee | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Amount paid in severance benefits over the period | $ 643,000,000 | $ 1,500,000,000 | ||
Post employment benefits liability | 765,000,000 | 765,000,000 | ||
Pension | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Remeasurement gain | 96,000,000 | $ 0 | ||
Charge due to difference between estimated and actual return on assets | 150,000,000 | |||
Credit due to change in discount rate assumption | 54,000,000 | |||
Pension | Qualified Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer discretionary contribution amount | 300,000,000 | $ 1,000,000,000 | ||
Pension | Nonqualified Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan contributions by employer | $ 0 | $ 0 | ||
2018 Voluntary Separation Program | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of employees have separated or will separate from the Company | Employee | 10,400 |
Equity and Accumulated Other _3
Equity and Accumulated Other Comprehensive Income - Changes in Components of Total equity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | $ 54,710 | |||||
Net income attributable to Verizon | $ 3,944 | $ 4,120 | 8,976 | $ 8,665 | ||
Other comprehensive loss | (923) | |||||
Total Comprehensive Income | 3,305 | 3,746 | 8,311 | 8,828 | ||
Foreign currency translation adjustments | (67) | (176) | (43) | (83) | ||
Unrealized gain (loss) on marketable securities | 4 | 1 | 8 | (4) | ||
Defined benefit pension and postretirement plans | (169) | (173) | $ (338) | (346) | ||
Shareholder plans (in shares) | 3,700 | |||||
Ending Balance | $ 57,947 | $ 53,575 | $ 57,947 | $ 53,575 | ||
Dividends declared per common share (USD per share) | $ 0.6025 | $ 0.59 | $ 1.205 | $ 1.18 | ||
Common Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | $ 429 | $ 429 | $ 429 | $ 424 | ||
Beginning balance (in shares) | 4,291,434 | 4,291,422 | 4,291,434 | 4,242,374 | ||
Common shares issued (in shares) | 0 | 12 | 0 | 49,060 | ||
Common shares issued | $ 0 | $ 0 | $ 0 | $ 5 | ||
Ending Balance (in shares) | 4,291,434 | 4,291,434 | 4,291,434 | 4,291,434 | ||
Ending Balance | $ 429 | $ 429 | $ 429 | $ 429 | ||
Additional Paid In Capital | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | 13,418 | 13,437 | 13,437 | 11,101 | ||
Other | 1 | 1 | (18) | 2,337 | ||
Ending Balance | 13,419 | 13,438 | 13,419 | 13,438 | ||
Retained Earnings | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | 46,493 | 39,974 | 43,542 | 35,635 | ||
Opening balance sheet adjustment | $ 410 | $ 2,232 | ||||
Adjusted Beginning Balance | 43,952 | 37,867 | ||||
Net income attributable to Verizon | 3,944 | 4,120 | 8,976 | 8,665 | ||
Dividends declared ($0.6025, $0.5900 per share) | (2,492) | (2,437) | (4,983) | (4,875) | ||
Ending Balance | 47,945 | 41,657 | 47,945 | 41,657 | ||
Accumulated Other Comprehensive Income | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | 2,216 | 3,705 | 2,370 | 2,659 | ||
Opening balance sheet adjustment | 0 | 630 | ||||
Adjusted Beginning Balance | 2,370 | 3,289 | ||||
Other comprehensive loss | (769) | (500) | (923) | (84) | ||
Foreign currency translation adjustments | (67) | (176) | (43) | (83) | ||
Unrealized gain (loss) on cash flow hedges | (537) | (152) | (550) | 349 | ||
Unrealized gain (loss) on marketable securities | 4 | 1 | 8 | (4) | ||
Defined benefit pension and postretirement plans | (169) | (173) | (338) | (346) | ||
Ending Balance | 1,447 | 3,205 | 1,447 | 3,205 | ||
Treasury Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | $ (6,825) | $ (6,992) | $ (6,986) | $ (7,139) | ||
Beginning balance (in shares) | 155,727 | 159,526 | 159,400 | 162,898 | ||
Employee plans (in shares) | 58 | 28 | 3,726 | 3,396 | ||
Employee plans | $ 2 | $ 2 | $ 163 | $ 149 | ||
Shareholder plans (in shares) | 0 | 0 | 5 | 4 | ||
Shareholder plans | $ 0 | $ 0 | $ 0 | $ 0 | ||
Ending Balance (in shares) | 155,669 | 159,498 | 155,669 | 159,498 | ||
Ending Balance | $ (6,823) | $ (6,990) | $ (6,823) | $ (6,990) | ||
Deferred Compensation-ESOPs and Other | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | 125 | 228 | 353 | 416 | ||
Restricted stock equity grant | 44 | 38 | 79 | 91 | ||
Amortization | (4) | 19 | (267) | (222) | ||
Ending Balance | 165 | 285 | 165 | 285 | ||
Noncontrolling Interests | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | 1,604 | 1,564 | 1,565 | 1,591 | ||
Opening balance sheet adjustment | 1 | 44 | ||||
Adjusted Beginning Balance | $ 1,566 | $ 1,635 | ||||
Total Comprehensive Income | 130 | 126 | 258 | 247 | ||
Distributions and other | (369) | (139) | (459) | (331) | ||
Ending Balance | $ 1,365 | $ 1,551 | $ 1,365 | $ 1,551 |
Equity and Accumulated Other _4
Equity and Accumulated Other Comprehensive Income - Additional Information (Detail) - USD ($) $ in Billions | 1 Months Ended | 6 Months Ended |
Feb. 28, 2018 | Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | ||
Stock repurchase program, number of shares authorized to be repurchased (in shares) | 100,000,000 | |
Number of common shares issued from treasury stock (in shares) | 3,700,000 | |
Straight Path Communications Inc. | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Number of shares issued related to business acquisition (in shares) | 49,000,000 | |
Equity issued related to business acquisition | $ 2.4 |
Equity and Accumulated Other _5
Equity and Accumulated Other Comprehensive Income - Changes in AOCI (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Beginning Balance | $ 54,710 | |||
Other comprehensive income (loss) | (642) | |||
Amounts reclassified to net income | (281) | |||
Net other comprehensive income (loss) | (923) | |||
Ending Balance | $ 57,947 | $ 53,575 | 57,947 | $ 53,575 |
Foreign currency translation adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Beginning Balance | (600) | |||
Other comprehensive income (loss) | (43) | |||
Amounts reclassified to net income | 0 | |||
Net other comprehensive income (loss) | (43) | |||
Ending Balance | (643) | (643) | ||
Unrealized gain (loss) on cash flow hedges | ||||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Beginning Balance | (80) | |||
Other comprehensive income (loss) | (607) | |||
Amounts reclassified to net income | 57 | |||
Net other comprehensive income (loss) | (550) | |||
Ending Balance | (630) | (630) | ||
Unrealized gain on marketable securities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Beginning Balance | 20 | |||
Other comprehensive income (loss) | 8 | |||
Amounts reclassified to net income | 0 | |||
Net other comprehensive income (loss) | 8 | |||
Ending Balance | 28 | 28 | ||
Defined benefit pension and postretirement plans | ||||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Beginning Balance | 3,030 | |||
Other comprehensive income (loss) | 0 | |||
Amounts reclassified to net income | (338) | |||
Net other comprehensive income (loss) | (338) | |||
Ending Balance | 2,692 | 2,692 | ||
Accumulated Other Comprehensive Income | ||||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Beginning Balance | 2,216 | 3,705 | 2,370 | 2,659 |
Net other comprehensive income (loss) | (769) | (500) | (923) | (84) |
Ending Balance | $ 1,447 | $ 3,205 | $ 1,447 | $ 3,205 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - segment | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Segment Reporting [Abstract] | ||
Number of reportable segments | 2 | 2 |
Segment Information - Operating
Segment Information - Operating Financial Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 32,071 | $ 32,203 | $ 64,199 | $ 63,975 |
Operating Income | 7,850 | 6,617 | 15,559 | 13,966 |
Wireless equipment | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 4,720 | 5,044 | 9,651 | 10,084 |
Service and Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 27,351 | 27,159 | 54,548 | 53,891 |
Fios revenues | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 3,011 | 2,956 | 6,018 | 5,907 |
Wireless service | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 16,231 | 15,737 | 32,282 | 31,119 |
Consumer | Fios revenues | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 2,772 | 2,738 | 5,536 | 5,472 |
Consumer | Wireless service | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 13,456 | 13,122 | 26,813 | 26,003 |
Business | Wireless equipment | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 814 | 793 | 1,600 | 1,600 |
Business | Service and Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 7,000 | 7,100 | 13,900 | 14,000 |
Business | Fios revenues | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 239 | 218 | 482 | 435 |
Business | Wireless service | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 2,775 | 2,615 | 5,469 | 5,116 |
External Operating Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 29,690 | 29,790 | 59,492 | 59,120 |
External Operating Revenues | Consumer | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 21,934 | 21,951 | 44,031 | 43,515 |
External Operating Revenues | Consumer | Service | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 16,350 | 16,050 | 32,611 | 31,864 |
External Operating Revenues | Consumer | Wireless equipment | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 3,904 | 4,251 | 8,070 | 8,521 |
External Operating Revenues | Consumer | Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 1,680 | 1,650 | 3,350 | 3,130 |
External Operating Revenues | Business | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 7,756 | 7,839 | 15,461 | 15,605 |
External Operating Revenues | Business | Global Enterprise | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 2,673 | 2,808 | 5,363 | 5,632 |
External Operating Revenues | Business | Small and Medium Business | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 2,781 | 2,638 | 5,485 | 5,166 |
External Operating Revenues | Business | Public Sector and Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 1,492 | 1,437 | 2,963 | 2,866 |
External Operating Revenues | Business | Wholesale | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 810 | 956 | 1,650 | 1,941 |
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 73 | 64 | 138 | 144 |
Intersegment Eliminations | Consumer | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 61 | 52 | 112 | 115 |
Intersegment Eliminations | Business | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 12 | 12 | 26 | 29 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 29,763 | 29,854 | 59,630 | 59,264 |
Operating Income | 8,407 | 8,161 | 16,705 | 16,210 |
Operating Segments | Consumer | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 21,995 | 22,003 | 44,143 | 43,630 |
Operating Income | 7,336 | 7,060 | 14,586 | 13,995 |
Operating Segments | Business | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 7,768 | 7,851 | 15,487 | 15,634 |
Operating Income | $ 1,071 | $ 1,101 | $ 2,119 | $ 2,215 |
Segment Information - Reconcili
Segment Information - Reconciliation of Operating Revenues (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Operating revenues | $ 32,071 | $ 32,203 | $ 64,199 | $ 63,975 |
Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Operating revenues | 29,763 | 29,854 | 59,630 | 59,264 |
Corporate and other | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Operating revenues | 2,412 | 2,429 | 4,747 | 4,891 |
Eliminations | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Operating revenues | $ (104) | $ (80) | $ (178) | $ (180) |
Segment Information - Reconci_2
Segment Information - Reconciliation of Segments Operating Income to Consolidated Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Operating income | $ 7,850 | $ 6,617 | $ 15,559 | $ 13,966 |
Severance charges | 0 | (339) | 0 | (339) |
Other components of net periodic benefit charges | (203) | (208) | (406) | (416) |
Acquisition and integration related charges | 0 | (120) | 0 | (227) |
Product realignment charges | 0 | (451) | 0 | (451) |
Equity in losses of unconsolidated businesses | (13) | (228) | (19) | (247) |
Other income (expense), net | (1,312) | 360 | (1,017) | 285 |
Interest expense | (1,215) | (1,222) | (2,425) | (2,423) |
Income Before Provision For Income Taxes | 5,310 | 5,527 | 12,098 | 11,581 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 8,407 | 8,161 | 16,705 | 16,210 |
Corporate and other | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | $ (354) | $ (426) | $ (740) | $ (811) |
Commitments and Contingencies (
Commitments and Contingencies (Detail) | 6 Months Ended |
Jun. 30, 2019legal_matter | |
Commitments and Contingencies Disclosure [Abstract] | |
Approximate number of federal district court actions alleged for patent infringement | 30 |
Guarantee obligations, term | 30 years |