Verizon Financial Statements Calculations

Table of Contents

Consolidated Statements of Income

Verizon Communications Inc. and Subsidiaries

(dollars in millions, except per share amounts) Years Ended December 31, 2020 2019 2018

Operating Revenues Service revenues and other $ 109,872 $ 110,305 $ 108,605 Wireless equipment revenues 18,420 21,563 22,258

Total Operating Revenues 128,292 131,868 130,863

Operating Expenses Cost of services (exclusive of items shown below) 31,401 31,772 32,185 Cost of wireless equipment 19,800 22,954 23,323 Selling, general and administrative expense 31,573 29,896 31,083 Depreciation and amortization expense 16,720 16,682 17,403 Media goodwill impairment — 186 4,591

Total Operating Expenses 99,494 101,490 108,585

Operating Income 28,798 30,378 22,278 Equity in losses of unconsolidated businesses (45) (15) (186) Other income (expense), net (539) (2,900) 2,364 Interest expense (4,247) (4,730) (4,833) Income Before Provision For Income Taxes 23,967 22,733 19,623 Provision for income taxes (5,619) (2,945) (3,584) Net Income $ 18,348 $ 19,788 $ 16,039

Net income attributable to noncontrolling interests $ 547 $ 523 $ 511 Net income attributable to Verizon 17,801 19,265 15,528 Net Income $ 18,348 $ 19,788 $ 16,039

Basic Earnings Per Common Share Net income attributable to Verizon $ 4.30 $ 4.66 $ 3.76 Weighted-average shares outstanding (in millions) 4,140 4,138 4,128

Diluted Earnings Per Common Share Net income attributable to Verizon $ 4.30 $ 4.65 $ 3.76 Weighted-average shares outstanding (in millions) 4,142 4,140 4,132

See Notes to Consolidated Financial Statements

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Table of Contents

Consolidated Balance Sheets

Verizon Communications Inc. and Subsidiaries

(dollars in millions, except per share amounts) At December 31, 2020 2019

Assets Current assets

Cash and cash equivalents $ 22,171 $ 2,594 Accounts receivable 25,169 26,162 Less Allowance for credit losses 1,252 — Less Allowance for doubtful accounts — 733

Accounts receivable, net (Note 1) 23,917 25,429 Inventories 1,796 1,422 Prepaid expenses and other 6,710 8,028

Total current assets 54,594 37,473

Property, plant and equipment 279,737 265,734 Less Accumulated depreciation 184,904 173,819

Property, plant and equipment, net 94,833 91,915

Investments in unconsolidated businesses 589 558 Wireless licenses 96,097 95,059 Goodwill 24,773 24,389 Other intangible assets, net 9,413 9,498 Operating lease right-of-use assets 22,531 22,694 Other assets 13,651 10,141 Total assets $ 316,481 $ 291,727

Liabilities and Equity Current liabilities

Debt maturing within one year $ 5,889 $ 10,777 Accounts payable and accrued liabilities 20,658 21,806 Current operating lease liabilities 3,485 3,261 Other current liabilities 9,628 9,024

Total current liabilities 39,660 44,868

Long-term debt 123,173 100,712 Employee benefit obligations 18,657 17,952 Deferred income taxes 35,711 34,703 Non-current operating lease liabilities 18,000 18,393 Other liabilities 12,008 12,264 Total long-term liabilities 207,549 184,024

Commitments and Contingencies (Note 16)

Equity Series preferred stock ($0.10 par value; 250,000,000 shares authorized; none issued) — — Common stock ($0.10 par value; 6,250,000,000 shares authorized in each period; 4,291,433,646 shares issued in each period) 429 429 Additional paid in capital 13,404 13,419 Retained earnings 60,464 53,147 Accumulated other comprehensive income (loss) (71) 998 Common stock in treasury, at cost (153,304,088 and 155,605,527 shares outstanding) (6,719) (6,820) Deferred compensation – employee stock ownership plans and other 335 222 Noncontrolling interests 1,430 1,440

Total equity 69,272 62,835 Total liabilities and equity $ 316,481 $ 291,727

See Notes to Consolidated Financial Statements

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