Assignment 2
Company Financials
Income Statement Exchange rate used is that of the Year End reported date
As Reported Annual Income Statement Report Date 12/31/2020 12/31/2019 12/31/2018 Currency USD USD USD Audit Status Not Qualified Not Qualified Not Qualified Consolidated Yes Yes Yes Scale Thousands Thousands Thousands Service revenues & other revenues 109,872,000 110,305,000 108,605,000 Wireless equipment revenues 18,420,000 21,563,000 22,258,000 Total operating revenues 128,292,000 131,868,000 130,863,000 Cost of services (exclusive of items shown below) 31,401,000 31,772,000 32,185,000 Wireless cost of equipment 19,800,000 22,954,000 23,323,000 Selling, general & administrative expense 31,573,000 29,896,000 31,083,000 Depreciation & amortization expense 16,720,000 16,682,000 17,403,000 Oath goodwill impairment - 186,000 4,591,000 Total operating expenses 99,494,000 101,490,000 108,585,000 Operating income 28,798,000 30,378,000 22,278,000 Equity in earnings (losses) of unconsolidated businesses -45,000 -15,000 -186,000 Interest income 65,000 121,000 94,000 Other components of net periodic benefit income (cost) -425,000 627,000 3,068,000 Early debt extinguishment costs -129,000 -3,604,000 - Other income (expense), net -50,000 -44,000 -798,000 Other income & (expense), net -539,000 -2,900,000 2,364,000 Interest expense 4,247,000 4,730,000 4,833,000 Income (loss) before provision (benefit) for income taxes - domestic 22,844,000 21,655,000 19,801,000 Income (loss) before provision (benefit) for income taxes - foreign 1,123,000 1,078,000 -178,000 Income (loss) before provision (benefit) for income taxes 23,967,000 22,733,000 19,623,000 Current federal provision (benefit) for income taxes 2,826,000 518,000 2,187,000 Current foreign provision (benefit) for income taxes 159,000 221,000 267,000 Current state & local provision (benefit) for income taxes 1,081,000 974,000 741,000 Total current provision (benefit) for income taxes 4,066,000 1,713,000 3,195,000 Deferred federal provision (benefit) for income taxes 1,432,000 1,150,000 175,000 Deferred foreign provision (benefit) for income taxes 1,000 -13,000 30,000 Deferred state & local provision (benefit) for income taxes 120,000 95,000 184,000 Total deferred provision (benefit) for income taxes 1,553,000 1,232,000 389,000 Provision (benefit) for income taxes 5,619,000 2,945,000 3,584,000 Net income (loss) 18,348,000 19,788,000 16,039,000 Net income attributable to noncontrolling interests -547,000 -523,000 -511,000 Net income (loss) attributable to Verizon Communications Inc. 17,801,000 19,265,000 15,528,000 Weighted average shares outstanding - basic 4,140,000 4,138,000 4,128,000 Weighted average shares outstanding - diluted 4,142,000 4,140,000 4,132,000 Year end shares outstanding 4,138,129.558 4,135,828.119 4,132,033.379 Net earnings (loss) per common share - basic 4.3 4.66 3.76 Net earnings (loss) per common share - diluted 4.3 4.65 3.76 Dividends declared 2.485 2.435 2.385 Total number of employees 132200 135000 144500 Total number of stockholders 510654 605414 630756 Foreign currency translation adjustments 180000 16000 -117000
Balance Sheet Exchange rate used is that of the Year End reported date
As Reported Annual Balance Sheet Report Date 12/31/2020 12/31/2019 12/31/2018 Currency USD USD USD Audit Status Not Qualified Not Qualified Not Qualified Consolidated Yes Yes Yes Scale Thousands Thousands Thousands Cash & cash equivalents 22,171,000 2,594,000 2,745,000 Accounts receivable, gross - 26,162,000 25,867,000 Less: allowances - accounts receivable - 733,000 765,000 Accounts receivable 25,169,000 - - Less allowance for credit losses 1,252,000 - - Accounts receivable, net 23,917,000 25,429,000 25,102,000 Inventories 1,796,000 1,422,000 1,336,000 Prepaid taxes 1,200,000 - - Deferred contract costs 2,472,000 - - Restricted cash 1,195,000 - - Other prepaid expenses & other current assets 1,843,000 - - Prepaid expenses & other current assets 6,710,000 8,028,000 5,453,000 Total current assets 54,594,000 37,473,000 34,636,000 Land 608,000 594,000 807,000 Buildings & equipment 32,933,000 31,216,000 30,468,000 Central office & other network equipment 160,369,000 152,733,000 147,250,000 Cable, poles & conduit 56,814,000 52,658,000 49,859,000 Leasehold improvements 9,497,000 9,072,000 8,580,000 Work in progress 8,576,000 9,234,000 6,362,000 Furniture, vehicles & other plant, property & equipment 10,940,000 10,227,000 9,509,000 Property, plant & equipment 279,737,000 265,734,000 252,835,000 Less accumulated depreciation 184,904,000 173,819,000 163,549,000 Property, plant & equipment, net 94,833,000 91,915,000 89,286,000 Investments in unconsolidated businesses 589,000 558,000 671,000 Wireless licenses 96,097,000 95,059,000 94,130,000 Goodwill 24,773,000 24,389,000 24,614,000 Other intangible assets, net 9,413,000 9,498,000 9,775,000 Operating lease right-of-use assets 22,531,000 22,694,000 - Other assets 13,651,000 10,141,000 11,717,000 Total assets 316,481,000 291,727,000 264,829,000 Debt maturing within one year 5,889,000 10,777,000 7,190,000 Accounts payable 6,667,000 7,725,000 7,232,000 Accrued expenses 6,050,000 5,984,000 5,948,000 Accrued vacation, salaries & wages 5,057,000 4,885,000 6,268,000 Interest payable 1,452,000 1,441,000 1,570,000 Taxes payable 1,432,000 1,771,000 1,483,000 Accounts payable & accrued liabilities 20,658,000 21,806,000 22,501,000 Current operating lease liabilities 3,485,000 3,261,000 - Dividends payable 2,618,000 2,566,000 2,512,000 Contract liability 4,843,000 4,651,000 4,207,000 Other current liabilities 2,167,000 1,807,000 1,520,000 Other current liabilities 9,628,000 9,024,000 8,239,000 Total current liabilities 39,660,000 44,868,000 37,930,000 Notes payable & other long-term debt - - 107,272,000 Verizon Communications 122,236,000 101,699,000 - Alltel Corporation 96,000 96,000 - Assumed notes - - 234,000 Debentures 766,000 766,000 796,000 Notes payable, debentures & other long-term debt - - 444,000 GTE LLC 391,000 391,000 - Asset-backed debt 10,630,000 12,393,000 10,101,000 Finance lease obligations 1,284,000 1,116,000 905,000 Unamortized discount, net of premium -6,057,000 -4,480,000 -6,298,000 Unamortized debt issuance costs -604,000 -492,000 -541,000 Long-term debt, including current maturities 128,742,000 111,489,000 112,913,000 Less: long-term debt maturing within one year 5,569,000 10,777,000 7,040,000 Long-term debt 123,173,000 100,712,000 105,873,000 Employee benefit obligations 18,657,000 17,952,000 18,599,000 Deferred income taxes 35,711,000 34,703,000 33,795,000 Non-current operating lease liabilities 18,000,000 18,393,000 - Other liabilities 12,008,000 12,264,000 13,922,000 Total long-term liabilities 207,549,000 184,024,000 172,189,000 Common stock 429,000 429,000 429,000 Additional paid in capital 13,404,000 13,419,000 13,437,000 Retained earnings (accumulated deficit) 60,464,000 53,147,000 43,542,000 Foreign currency translation adjustments -404,000 -584,000 -600,000 Unrealized gain (loss) on cash flow hedges -1,387,000 -816,000 -80,000 Unrealized gain (loss) on marketable securities 25,000 27,000 20,000 Defined benefit pension & postretirement plans 1,695,000 2,371,000 3,030,000 Accumulated other comprehensive income (loss) -71,000 998,000 2,370,000 Common stock in treasury 6,719,000 6,820,000 6,986,000 Deferred compensation - employee stock ownership plans & other -335,000 -222,000 -353,000 Noncontrolling interests 1,430,000 1,440,000 1,565,000 Total equity 69,272,000 62,835,000 54,710,000
Cash Flows Exchange rate used is that of the Year End reported date
As Reported Annual Cash Flow Report Date 12/31/2020 12/31/2019 12/31/2018 Currency USD USD USD Audit Status Not Qualified Not Qualified Not Qualified Consolidated Yes Yes Yes Scale Thousands Thousands Thousands Net income (loss) 18,348,000 19,788,000 16,039,000 Depreciation & amortization expense 16,720,000 16,682,000 17,403,000 Employee retirement benefits 840,000 -284,000 -2,657,000 Deferred income taxes 1,553,000 1,232,000 389,000 Provision for uncollectible accounts - 1,588,000 980,000 Provision for expected credit losses 1,380,000 - - Equity in losses (earnings) of unconsolidated businesses, net of dividends received 91,000 74,000 231,000 Oath goodwill impairment - 186,000 4,591,000 Accounts receivable 189,000 -1,471,000 -2,667,000 Inventories -369,000 -76,000 -324,000 Prepaid expenses & other assets 1,202,000 -2,807,000 37,000 Accounts payable & accrued liabilities & other current liabilities -966,000 -2,359,000 1,777,000 Discretionary employee benefits contributions - -300,000 -1,679,000 Net loss (gain) on sale of divested businesses - 94,000 - Other operating activities, net 2,780,000 3,399,000 219,000 Net cash flows from operating activities 41,768,000 35,746,000 34,339,000 Capital expenditures (including capitalized software) -18,192,000 -17,939,000 -16,658,000 Acquisitions of investments & businesses, net of cash acquired - -29,000 -230,000 Acquisitions of businesses, net of cash acquired -520,000 - - Acquisitions of wireless licenses -2,126,000 -898,000 -1,429,000 Proceeds from disposition of businesses - 28,000 - Other investing activities, net -2,674,000 1,257,000 383,000 Net cash flows from investing activities -23,512,000 -17,581,000 -17,934,000 Proceeds from long-term borrowings 25,822,000 10,079,000 5,967,000 Proceeds from asset-backed long-term borrowings 5,635,000 8,576,000 4,810,000 Repayments of long-term borrowings & capital lease obligations - -17,584,000 -10,923,000 Repayments of long term borrowings & finance lease obligations -9,775,000 - - Repayments of asset-backed long-term borrowings -7,413,000 -6,302,000 -3,635,000 Dividends paid -10,232,000 -10,016,000 -9,772,000 Other financing activities, net -2,712,000 -2,917,000 -1,824,000 Net cash flows from financing activities 1,325,000 -18,164,000 -15,377,000 Increase (decrease) in cash, cash equivalents & restricted cash 19,581,000 1,000 1,028,000 Cash, cash equivalents & restricted cash, beginning of period 3,917,000 3,916,000 2,888,000 Cash, cash equivalents & restricted cash, end of period 23,498,000 3,917,000 3,916,000 Cash paid for income taxes, net of amounts refunded 2,725,000 3,583,000 2,213,000 Cash paid for interest, net of amounts capitalized 4,420,000 4,714,000 4,408,000