Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - VERIZON COMMUNICATIONS INC | d360257d8k.htm |
Exhibit 99
Wireline As of December 31, 2016 During the first quarter 2017, Verizon Communications Inc. (“Verizon”) reorganized the customer groups within its Wireline segment. Previously, the customer groups in the Wireline segment consisted of Mass Markets (which included Consumer Retail and Small Business subgroups), Global Enterprise and Global Wholesale. Pursuant to the reorganization, there are now four customer groups within the Wireline segment: Consumer Markets, which includes the customers previously included in Consumer Retail; Enterprise Solutions, which includes the large business customers, including multinational corporations, and federal government customers previously included in Global Enterprise; Partner Solutions, which includes the customers previously included in Global Wholesale; and Business Markets, a new customer group, which includes U.S.-based small business customers previously included in Mass Markets and U.S.-based medium business customers, state and local government customers and educational institutions previously included in Global Enterprise. As a convenience to investors, we are providing unaudited historical financial information that recasts the operating revenue results for these reorganized customer groups within the Wireline segment for each of the eight quarters ended December 31, 2016. Total Wireline segment operating revenues remain unchanged from previously reported results. As a reminder, the operating results for all periods presented herein exclude the results of Verizon’s local exchange business and related landline activities in California, Florida and Texas, which were sold to Frontier on April 1, 2016.
Verizon Communications Inc.
Wireline - Selected Financial Results
(dollars in millions)
| 2015 | 2016 | |||||||||||||||||||||||||||||||
| Unaudited | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | ||||||||||||||||||||||||
| Operating Revenues |
||||||||||||||||||||||||||||||||
| Consumer Markets |
$ | 3,128 | $ | 3,174 | $ | 3,168 | $ | 3,226 | $ | 3,180 | $ | 3,165 | $ | 3,174 | $ | 3,232 | ||||||||||||||||
| Enterprise Solutions |
2,571 | 2,534 | 2,515 | 2,534 | 2,501 | 2,454 | 2,445 | 2,442 | ||||||||||||||||||||||||
| Partner Solutions |
1,348 | 1,319 | 1,298 | 1,334 | 1,292 | 1,265 | 1,248 | 1,233 | ||||||||||||||||||||||||
| Business Markets |
914 | 906 | 900 | 891 | 870 | 854 | 845 | 833 | ||||||||||||||||||||||||
| Other |
89 | 80 | 86 | 79 | 80 | 85 | 75 | 72 | ||||||||||||||||||||||||
| Total Operating Revenues |
8,050 | 8,013 | 7,967 | 8,064 | 7,923 | 7,823 | 7,787 | 7,812 | ||||||||||||||||||||||||
| Operating Expenses |
||||||||||||||||||||||||||||||||
| Cost of services |
4,785 | 4,704 | 4,695 | 4,632 | 4,644 | 5,107 | 4,440 | 4,428 | ||||||||||||||||||||||||
| Selling, general & administrative expense |
1,838 | 1,813 | 1,770 | 1,835 | 1,770 | 1,617 | 1,693 | 1,505 | ||||||||||||||||||||||||
| Depreciation and amortization expense |
1,647 | 1,695 | 1,611 | 1,590 | 1,576 | 1,562 | 1,498 | 1,465 | ||||||||||||||||||||||||
| Total Operating Expenses |
8,270 | 8,212 | 8,076 | 8,057 | 7,990 | 8,286 | 7,631 | 7,398 | ||||||||||||||||||||||||
| Operating Income (Loss) |
(220 | ) | (199 | ) | (109 | ) | 7 | (67 | ) | $ | (463 | ) | $ | 156 | $ | 414 | ||||||||||||||||
| Operating Income (Loss) Margin |
(2.7)% | (2.5)% | (1.4)% | 0.1% | (0.8)% | (5.9)% | 2.0% | 5.3% | ||||||||||||||||||||||||
| Segment EBITDA |
$ | 1,427 | $ | 1,496 | $ | 1,502 | $ | 1,597 | $ | 1,509 | $ | 1,099 | $ | 1,654 | $ | 1,879 | ||||||||||||||||
| Segment EBITDA Margin |
17.7% | 18.7% | 18.9% | 19.8% | 19.0% | 14.0% | 21.2% | 24.1% | ||||||||||||||||||||||||
Footnotes:
The segment financial results and metrics above are adjusted to exclude the effects of non-operational items, as the Company’s chief operating decision maker excludes these items in assessing business unit performance.
Intersegment transactions have not been eliminated.
2