As of December 31, 2013

Verizon Communications Inc.

Table of Contents
Condensed Consolidated Statements of Income Non-Operational & Other Items Condensed Consolidated Balance Sheets Verizon – Selected Financial and Operating Statistics Condensed Consolidated Statements of Cash Flows Wireless – Selected Financial Results Wireless – Selected Operating Statistics Wireline – Selected Financial Results Wireline – Selected Operating Statistics Non-GAAP Reconciliations and Notes 3 5 7 7 9 12 13 15 16 18

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547 12.85 2. 3 .887 27.404 10.866 $ .880 444 (14) (2.571) 9.686 13.995 12.497 23.277 (5.550 Operating Revenues Operating Expenses Cost of services and sales Selling.275 39.839 $ .01 2.667) 29.730) 23.31 2.089 16. net Interest expense Income Before (Provision) Benefit for Income Taxes (Provision) Benefit for income taxes Net Income Net income attributable to noncontrolling interests Net income attributable to Verizon Net Income Basic Earnings per Common Share Net income attributable to Verizon Weighted average number of common shares (in millions) Diluted Earnings per Common Share (1) Net income attributable to Verizon Weighted average number of common shares-assuming dilution (in millions) 45.682 875 10.897 660 10.31 2.496 97.160 324 (1.85 2.050 11.951 16.00 2. to reflect comparable operating results.853 $ 4.875 $ 2012 115.968 142 (166) (2.794 2.547 $ $ $ $ .460 102.016) (2.624 16.862 $ 4. where appropriate.582 31.874 Notes: (1) Diluted Earnings per Common Share includes the dilutive effect of shares issuable under our stock-based compensation plans.198 $ $ 46. Condensed Consolidated Statements of Income (dollars in millions.827) 10. except per share amounts) Unaudited 2011 $ 110.833 $ . Certain reclassifications of prior period amounts have been made.557 $ 9. general & administrative expense Depreciation and amortization expense Total Operating Expenses Operating Income Equity in earnings of unconsolidated businesses Other income and (expense).483 (285) 10.606 88.557 $ $ 44.875 35.Verizon Communications Inc.198 $ 7.846 $ 2013 120.

849 5. net Interest expense Income (Loss) Before (Provision) Benefit for Income Taxes (Provision) Benefit for income taxes Net Income (Loss) Net income attributable to noncontrolling interests Net income (loss) attributable to Verizon Net Income (Loss) Basic Earnings (Loss) per Common Share Net income (Loss) attributable to Verizon Weighted average number of common shares (in millions) $ 29.460 1.825 $ 4.48) $ 2.232 $ 5.916 $ .78 2.786 3Q 4Q $ 31.007 $ 30.686 $ 3.857 $ (1.198 $ 5.555 120 25 (514) 10.292 $ (1.844) $ 3.76 2.77 2.242 2012 2Q $ 28.047 4.858 $ .916 $ 2.214 (3.632 5.64 2.867 Diluted Earnings (Loss) per Common Share (1) Net income (Loss) attributable to Verizon $ . 4 .008 4.952 $ (1.303 $ 2.866 $ (1.760 (726) (793) (631) 2.901 5.198 6.926) $ 4.045 1Q $ 29.578 $ 2.872 $ .56 2.906 $ 4. general & administrative expense Depreciation and amortization expense Total Operating Expenses Operating Income (Loss) Equity in earnings of unconsolidated businesses Other income and (expense). Certain reclassifications of prior period amounts have been made.148 4. diluted EPS is the same as basic EPS.849 $ .229) 1.896 7.285 $ 4.186 6.222 (5) 39 (537) 11.169) 87 (1.063 8 (250) (1.028 23.034) (2.154 23.128 22.552 3Q 4Q $ 30.593 $ 4.926) $ 4.078 4.719 6.047 5.78 2.167 23.962 2.875 Notes: (1) If there is a net loss.612 10.64 2.960 8.524 5.578 $ 7. Diluted Earnings per Common Share includes the dilutive effect of shares issuable under our stock-based compensation plans.699 1.285 $ 2.246 $ 5.067 $ 7.128 19 20 (555) 11.952 2. EPS may not add due to rounding.855 $ 5.810 (864) (988) (1.065 Operating Revenues Operating Expenses Cost of services and sales Selling.069 16.195 103 19 (685) 10.002 12.865 $ .483 62 10 (632) 13.68 2.872 $ . except per share amounts) Unaudited 1Q $ 28.78 2.855 $ 2.151 23.137 33.862 .231 6.857 4.48) $ 2.033 8.700 4.151 7.279 11.Verizon Communications Inc.991 8.59 Weighted average number of common shares-assuming dilution (in millions) 2.420 2013 2Q $ 29.923 (4.292 $ 2.59 2. where appropriate. to reflect comparable operating results.736) 5.849 $ .198 $ 3.220 1.842 $ .118 23.874 $ 1.079) (575) 10.183 19.346 2.68 2.906 $ 2.651 72 34 (679) 10.061) 4.866 $ .037 4.877 4.366 4.866 $ 1.319 7.862 .56 2.78 2. Condensed Consolidated Statements of Income (dollars in millions.932 8.903 (4.

net $ - $ - $ (278) $ - $ 384 $ - $ 120 $ 40 236 1. Pension & Benefit Charges/(Credits) Operating expenses Gain on Spectrum License Transactions Selling.097 $ - $ - $ - $ 927 5 . net Wireless Transaction Costs Other income (expense).232) Severance. general & administrative expense Litigation Settlements Selling.186 $ 2013 (6. general & administrative expense Early Debt Redemption and Other Restructuring Costs Cost of services and sales Selling. Non-Operational & Other Items (Pre-tax dollars in millions) Unaudited 2011 $ 5.Verizon Communications Inc.954 $ 2012 7. general & administrative expense Other income (expense).

general & administrative expense Litigation Settlements Selling. net $ - $ - $ - $ - $ - $ - $ (278) $ - $ - $ - $ 384 $ - $ - $ - $ - $ - $ - $ - $ - $ 40 236 1. net Wireless Transaction Costs Other income and (expense). Pension & Benefit Charges/(Credits) Operating expenses $ Gain on Spectrum License Transactions Selling.Verizon Communications Inc. general & administrative expense Early Debt Redemption and Other Restructuring Costs Cost of services and sales Selling.995) Severance.186 $ 1Q $ 2013 2Q (237) $ 3Q - 4Q $ (5. general & administrative expense Other income and (expense). Non-Operational & Other Items (Pre-tax dollars in millions) Unaudited 1Q $ 2012 2Q $ 3Q - 4Q $ 7.097 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 62 $ 865 6 .

269 30. to reflect comparable operating results.689 11.Verizon Communications Inc.303 32.030 $ 12/31/13 93.222 $ 297 37. Condensed Consolidated Balance Sheets (dollars in millions) Unaudited 12/31/11 12/31/12 12/31/13 Assets Current assets Cash and cash equivalents Short-term investments Accounts receivable.346 24.021 21.990 (3. at cost Deferred compensation .747 24.139 5.862 176.533 225.Selected Financial and Operating Statistics Unaudited 12/31/11 $ $ 55.933 4.050 89.152 41.987 $ 48.090 Total debt ($M) Net debt ($M) Net debt / Adjusted EBITDA Common shares outstanding end of period (M) Total employees Cash dividends declared per common share $ $ Certain reclassifications of prior period amounts have been made.900 1.071) 440 52.461 $ 297 37.956 47.800 4.020 3.961) 421 56.933 88.658 27.098 $ $ $ $ 4.878 5.075 4.908 230.179 1. where appropriate.834 193.580 95.092 $ 3.155 230.575 120.939 1.093 470 12.472 $ 4.975 $ $ 12/31/12 51.235 (4.3x 2.933 16.434 3.776 940 4.002) 308 49.405 26.919 1.994 220.849 14.677 6.128 225.734) 2.448 73.744 24.956 3.894 $ 1.063 1.639 5.182 6.528 601 12.664 27. net Inventories Prepaid expenses and other Total current assets Plant.060 5.626 127.400 2.222 $ 53.192 88.909 88.682 28.0x 2.634 5.401 77.235 209.432 75.461 $ 3. property and equipment Less accumulated depreciation Investments in unconsolidated businesses Wireless licenses Goodwill Other intangible assets.859 183.362 592 11. net Other assets Total Assets Liabilities and Equity Current liabilities Debt maturing within one year Accounts payable and accrued liabilities Other Total current liabilities Long-term debt Employee benefit obligations Deferred income taxes Other liabilities Equity Common stock Contributed capital Reinvested earnings (Accumulated deficit) Accumulated other comprehensive income Common stock in treasury.535 274.761 50.416 274.406 70.782 2.223 30.358 (3.939 215.453 6.376 85.790 2.591 40.576 1.618 34.269 (5.800 2.653 $ 297 37.938 85.865 131.642 3.employee stock ownership plans and other Noncontrolling interests Total equity Total Liabilities and Equity $ 13.098 Verizon .369 16.250 23.357 5. 7 .439 1.957 25.

968 (3.622 $ 3.Verizon Communications Inc.295 21.800 $ .862 180.900 $ .332 3.933 4.527 3.539 73.254 $ 6.800 $ .566 73.186 215.810 3.535 $ 274.688 6/30/12 $ 52.500 $ .088 12/31/12 3/31/13 6/30/13 9/30/13 12/31/13 $ 51.591 24.432 75.465 5.909 623 11.865 131.770 46.098 Verizon .862 176.247) (4.186 3.030 6.234 1.994 220.222 $ 226.130 217.040 6.895 37.732 4.082 209.416 Total Liabilities and Equity $ 222.895 3.421 90.588 87.974) (3. net Other assets Total Assets Liabilities and Equity Current liabilities Debt maturing within one year Accounts payable and accrued liabilities Other Total current liabilities Long-term debt Employee benefit obligations Deferred income taxes Other liabilities 3/31/12 6/30/12 9/30/12 12/31/12 3/31/13 6/30/13 9/30/13 12/31/13 $ 5.788 618 12.956 3.0x 2.900 $ .278 54.231 6.001 777 11.839 $ 4.512 $ 10.710 631 12.675 $ 53.994 2.894 $ 47.533 87.060 73.376 54.530 2.961) Deferred compensation .280 56.734) (3.677 6.990 37. 8 .294 23.191 41.430 $ 40.888 14.515 $ 231.072 $ 9.595 856 3.021 21.597 $ 45.515 2.476 32.610 5.048 5.082 123.515 2.064 88.346 $ 276.030 1.859 183.093 470 12.622 6. net Inventories Prepaid expenses and other Total current assets Plant.056 1.918 37.994) (3.423 76.483) (1.744 24.500 2.744 5.750 53.222 212.479 31.921 $ 226.453 6.821 5.063 4.358 Common stock in treasury.653 Equity Common stock 297 297 297 297 297 297 297 297 Contributed capital 37.439 1.474 5.983 52.3x 1.346 24. where appropriate.964 $ 42.987 $ 52.300 $ .515 2.098 218.959 37.181 3.072 $ 231.561 22.970) (3.467 30.336 5.671 6.140 $ 93.258 $ 1.726 5.634 5.235 2.353 46.696 5.1x 1.132 5.111 1.939 Reinvested earnings (Accumulated deficit) 1.909 25.841 191.776 3.444 1.075 $ 7.118 2.912 13.391 $ 42.961 14.050 89.468 26.675 $ 274.530 2.559 29.913 48.735) (4.337 $ 5.528 601 12.147 1.683 23.156 90.921 216.682 28.048 24.319 75.791 33.739 129.428 92.782 Accumulated other comprehensive income 1.082 $ 225.369 16.814 798 6.511 25.677 $ 8.664 27.255) (2.321 75.182 6.571 31.995 129.Selected Financial and Operating Statistics Unaudited Total debt ($M) Net debt ($M) Net debt / Adjusted EBITDA Common shares outstanding end of period (M) Total employees Cash dividends declared per common share 3/31/12 $ 51.854 184.827 3.216 1.639 5.103 27.625 77.235 $ 5.933 16.2x 1.973 6.861 181.956 47.825 24.432 28.303 23.926 37.933 88.200 $ .446 $ 276.400 $ .822 $ 226. Condensed Consolidated Balance Sheets (dollars in millions) Unaudited Assets Current assets Cash and cash equivalents Short-term investments Accounts receivable. property and equipment Less accumulated depreciation Investments in unconsolidated businesses Wireless licenses Goodwill Other intangible assets.employee stock ownership plans and other 341 367 411 440 312 332 390 421 Noncontrolling interests 51.580 Total Equity 88.154 $ 222.658 27.830 4.645 24.800 4.265 95.2x 1.752 $ 99.185 87.932 37.515 Certain reclassifications of prior period amounts have been made.993 34.336 129.503 24.575 120.291 90.901 88.257 2.881 $ 49.250 130.405 26.406 70.628 85.001 $ 226.894 37.346 $ 3.020 3.938 33.901 27.467 30.075 4.909 88.618 34.139 5.224 126.406 $ 47. at cost (4.071) (3.500 2.809 88.993 6.642 3.489 41.003 6.164 25.278 53.835 25.862 178.845 1.904 26.202 15.438) (4.339 5.892 88. to reflect comparable operating results.335 16.802 $ 43.193 3.705 218.663 $ 3.121 13.223 4.478 5.768) 1.591 $ 48.475 660 11.186 $ 223.063 1.844 87.738 25.128 $ 225.401 77.390 9/30/12 $ 52.957 $ 56.849 188.576 1.095 55.092 $ 10.649 5.801 $ 223.714 593 12.398 1.747 24.

668 13.423) 31.257) 26. net of dividends received Changes in current assets and liabilities.604) (494) (580) 2.435 3.093 $ 49.797) (221) 35 977 (17. beginning of period Cash and cash equivalents.547 Cash Flows From Operating Activities Net Income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense Employee retirement benefits Deferred income taxes Provision for uncollectible accounts Equity in earnings of unconsolidated businesses. end of period 16.450 50.437) (5.325) (4.426 (223) 1.496 7.836) 6.150) (5.362 $ 4.489 (6.279) (2.Verizon Communications Inc.244) (1.253) (10.175) (913) (3.606 (5.269) 13.705) (5.052) 5. net of cash acquired Acquisitions of wireless licenses Proceeds from dispositions of wireless licenses Net change in short-term investments Other.780 16.785 993 (102) (5) (2.166 (8.662) (21.805) 1.198 (952) 972 77 (403) (3.093 53.230) 315 (8.060 (11.528 9 .362 3.198 $ 12 Months Ended 12/31/12 10.502) (16.460 8.954) 38.818 (16.935) 27 494 (20.557 $ 12 Months Ended 12/31/13 23. net of effects from acquisition/ disposition of businesses Other.833) $ 11.928 (5. excluding current maturities Dividends paid Proceeds from sale of common stock Purchase of common stock for treasury Special distribution to noncontrolling interests Other.250) (16.026 36 (2. net Net cash used in investing activities Cash Flows From Financing Activities Proceeds from long-term borrowings Repayments of long-term borrowings and capital lease obligations Increase (decrease) in short-term obligations.900) 29.486 16.694 6.163) (142) (5.403) (1.111 63 671 (14. Condensed Consolidated Statements of Cash Flows (dollars in millions) Unaudited 12 Months Ended 12/31/11 $ 10. net Net cash provided by (used in) financing activities Increase (decrease) in cash and cash equivalents Cash and cash equivalents. net Net cash provided by operating activities Cash Flows From Investing Activities Capital expenditures (including capitalized software) Acquisitions of investments and businesses.555) 241 (1.936) 85 (153) (3.

812 507 (95) 12.648) (10.616) (76) (264) (21) 142 (7.489 Repayments of long-term borrowings and capital lease obligations (1.150) (3.048) (12.906 $ 8.150) (5.180) (10.175) (913) (3. net Net cash used in investing activities 3 Months 6 Months 9 Months 12 Months 3 Months 6 Months 9 Months 12 Months Ended Ended Ended Ended Ended Ended Ended Ended 3/31/12 6/30/12 9/30/12 12/31/12 3/31/13 6/30/13 9/30/13 12/31/13 $ 3.737) (11.387 (5) (2.393) (2.807) (81) (430) 2.758 (403) (3.362 13.833) Cash Flows From Financing Activities Proceeds from long-term borrowings 4.403) Increase (decrease) in short-term obligations.001 $ 9.475 499 (2.237 521 (149) 12.602) (21) (117) 18 123 (3.828) (1.136) (2.423) 31.816) 28 516 (15.023) (16. net Net cash provided by operating activities Cash Flows From Investing Activities Capital expenditures (including capitalized software) Acquisitions of investments and businesses.150) (2.Verizon Communications Inc.028 375 656 278 (89) 8.423 649 3.818 (3.714 $ 3.111 63 671 (14.325) Other.053 $ 15.617) 5.437) Dividends paid (1.093 $ 500 (73) 581 (1.673) (7.166 (2.398) 7.734) (887) 375 (1. beginning of period 13.315) (838) (3.981) (21.500) (8.935) 27 494 (20.631 $ 23.230) Proceeds from sale of common stock 69 210 278 315 Purchase of common stock for treasury Special distribution to noncontrolling interests (4.330) (432) (2.291) (2.957 (1.092) 17.430) (203) (33) 21 61 (7.163) (142) (5.557 $ 4.392) (324) (4.148 (1.257) 26.093 $ 1.483 $ 10.362 13.425) (16.126 1.166 (8.531 (1.587) (3.198 (952) 972 77 4.895) 28. net (453) (1.936) 85 (153) (3.604) (494) (580) 2.154) 24.660) (2.500) (4.369) (4.078) (2.093 5.453) (3.502) (3. net of cash acquired Acquisitions of wireless licenses Proceeds from dispositions of wireless licenses Net change in short-term investments Other.361) (3.550) 35.300) 15.855 $ 10.954) 38.271 (197) (3.580) (1.500) (4.891) (2.382 3.785 993 (102) (1.584) (11.887) (5.788 49.599) (7.710 49.547 4.946) 74 (153) (3.253 53. Condensed Consolidated Statements of Cash Flows (dollars in millions) Unaudited Cash Flows From Operating Activities Net Income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense Employee retirement benefits Deferred income taxes Provision for uncollectible accounts Equity in earnings of unconsolidated businesses.435 3.617 3.420) 76 (153) (3.835) (11.878) (6.665 709 (197) 16.472) 56 (153) (989) (1.362 Cash and cash equivalents. excluding current maturities (1.305) 3.111 (11) 195 (10.191 $ 12.362 13.269) Cash and cash equivalents.606 (5.093 $ 53.269 354 1.618) (1.460 8.909 $ 10.565) (140) (25) 16 41 (3.491) (1.118 295 878 260 14 8.253) Increase (decrease) in cash and cash equivalents (7.550) 2.662) Net cash provided by (used in) financing activities (9.156 751 1.486 (1.323 1.052) 5. net of dividends received Changes in current assets and liabilities.528 10 .093 $ 56.011 746 (100) 16.450 50. net of effects from acquisition/disposition of businesses Other. end of period $ 5.

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4% 33.994 15.203 5.060 13.5% $ 7.332 5.791 $ 6.047 $ 4.421 993 21.559 1.Verizon Communications Inc.8% 31.078 1.918 13.967 744 17.418 $ 6. Certain reclassifications of prior period amounts have been made.512 5.946 $ 8.994 1Q $ 16.012 19.651 5.666 2.6% 30.776 740 17.0% 50.768 1.228 1.135 $ 7.125 $ 15.976 $ 16.896 $ 5.089 14.558 5.513 6.025 18.0% 41.9% 32.838 1.690 5.652 5.448 2.511 $ 8.785 $ 8.1% 47.713 $ 6.776 1.8% 24.042 19.813 982 19.230 546 15.538 616 16.399 $ 16.229 28.056 5.728 1.084 $ 6.516 1.977 7.410 1.523 (dollars in millions) 2013 2Q 3Q 4Q $ 16. Intersegment transactions have not been eliminated.047 13.006 13.886 524 15.105 5.3% 49.877 1.0% 32.250 2.295 2.724 $ 8.799 5.711 2.886 $ 6.273 2012 2Q $ 15.546 6.864 5.577 3Q 4Q $ 15.858 1.924 959 20.786 607 16. as the Company's chief operating decision maker excludes these items in assessing business unit performance. 12 .910 5.037 12.422 656 17.393 2.011 12.424 $ 8. to reflect comparable operating results.464 $ 6.953 945 19.801 2.024 5.4% 49.169 559 16. where appropriate. general & administrative expense Depreciation and amortization expense Total Operating Expenses Operating Income Operating Income Margin Segment EBITDA Segment EBITDA Service Margin 1Q $ 14.8% 29.0% Footnotes: The segment financial results and metrics above are adjusted to exclude the effects of non-operational items.154 1.033 18. Wireless – Selected Financial Results Unaudited Operating Revenues Retail service Other service Service Equipment Other Total Operating Revenues Operating Expenses Cost of services and sales Selling.261 2.318 46.4% 50.8% 51.217 $ 5.

178 1.28% 0.2% 10.24% 1.93% 1. Certain reclassifications have been made. Intersegment transactions have not been eliminated.4% 58.791 $ 1.42 2.3% 53.569 $ 140.853 100.230 1Q 93.047 102.930 2013 2Q 94.27 2.646 $ 143.992 $ 2. 13 .958 $ 152.988 2012 2Q 88.91% 1.025 92.744 98. Wireless – Selected Operating Statistics Unaudited Connections ('000) Retail postpaid Retail prepaid Retail Net Add Detail ('000) (1) Retail postpaid Retail prepaid Retail Account Statistics Retail postpaid accounts ('000) Retail postpaid ARPA Retail postpaid connections per account Churn Detail Retail postpaid Retail Retail Postpaid Connection Statistics Total Smartphone postpaid % of phones activated Total Smartphone postpaid phone base Total Internet postpaid base Other Operating Statistics Capital expenditures ($M) 1Q 87.545 95.705 Footnotes: (1) Connection net additions exclude acquisitions and adjustments.885 $ 2.972 $ 155.95% 1.038 927 134 1. The segment financial results and metrics above are adjusted to exclude the effects of non-operational items.11% 0.242 677 43 720 941 97 1.271 5.56 34.32 2.67 34.50 2.96% 1.530 5.64 34.30% 0.2% 88.3% 71.316 94. where appropriate.74 2.9% 70.7% 8.6% 84.8% 85.72 35.60 35.80 2.899 4Q 92.23% 0.18% 0.4% 9.3% 61.8% 8. as the Company's chief operating decision maker excludes these items in assessing business unit performance.057 $ 146.54 34.9% 67.943 $ 150.133 $ 2.535 228 1.01% 1.186 5.5% 77.185 5.Verizon Communications Inc.278 $ 2. to reflect comparable operating results.838 5.653 34.3% 84.083 $ 157.58 2.9% 84.061 1.700 98.96% 1.76 0.21 2.963 5.965 101.2% 8.799 95.796 $ 145.70 34.24% 0.7% $ 1.6% 49.0% 10.84% 1.048 $ 2.763 2.1% 46.354 5.150 501 233 734 888 290 1.124 3Q 4Q 96.100 142 2.4% 9.4% 64.1% 9.752 6.97% 1.573 80 1.27% 71.450 $ 2.154 3Q 90.

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837 3.3)% $ 2.636 1.087 1.669 118 9.359 2.2% 22.483 2.102 9.581 2.969 1. general & administrative expense Depreciation and amortization expense Total Operating Expenses Operating Income (Loss) Operating Income Margin Segment EBITDA Segment EBITDA Margin $ 1Q $ 3.095 9.6% 5.945 2012 2Q $ 3.290 $ 2.668 1.8% 5.569 660 4.852 1.090 9.441 662 4.817 13 $ 0.141 2. as the Company's chief operating decision maker excludes these items in assessing business unit performance.079 1. 15 .743 188 $ 1.830 (dollars in millions) 2013 2Q 3Q 4Q $ 3.247 $ 2.3% 41 $ (326) $ 0.646 1.7% 18.500 2.1% 21.463 2.4% Footnotes: The segment financial results and metrics above are adjusted to exclude the effects of non-operational items.6% 23.303 2.125 10.814 $ 3.686 121 9.883 3. to reflect comparable operating results.873 5.507 3.438 2.553 3.102 2.139 1.557 3.090 1.Verizon Communications Inc.660 74 $ 0.788 157 $ 1.9% 5.820 1.983 1.4% (3.457 2.931 3Q 4Q $ 3.407 2.846 1.643 648 4.010 1.115 1.1% 5.225 2. where appropriate.240 2.914 5.770 145 9.799 $ 2.291 2.108 $ 2.145 1.659 155 $ 1.709 650 4.316 5.756 3.229 2.229 $ 2.085 9. Certain reclassifications of prior period amounts have been made.060 2.572 2.714 131 1.6% 5.734 $ 3.103 1.861 129 9.148 $ 1.107 9.990 1Q $ 3.727 110 9.204 22.589 651 4.782 126 9.4% 22. Wireline – Selected Financial Results Unaudited Operating Revenues Consumer retail Small business Mass Markets Strategic services Core Global Enterprise Global Wholesale Other Total Operating Revenues Operating Expenses Cost of services and sales Selling.7% 22.555 670 4.265 2.168 2.632 129 9.159 $ 2.478 667 4.827 139 9.771 3.0% 21.073 9.666 3. Intersegment transactions have not been eliminated.796 642 4.313 2.878 2.845 $ 3.126 2.781 1.074 9.753 1.

625 3. where appropriate.596 $ 1.209 11.582 2.774 9.3% 32.731 57.703 14.6 87.280 2.038 3.9% 35.2% $ 105.035 5.632 8.768 8.88 $ 2.26 $ 2.7% $ 1.374 14.278 3Q 4.200 14.1% $ 100.069 15.344 11.9% $ 103. to reflect comparable operating results.005 22.700 2012 2Q 4.167 15.7% $ 117.633 55.528 14.982 11.421 23.4 86.895 5.607 14. Certain reclassifications have been made.843 11. as the Company's chief operating decision maker excludes these items in assessing business unit performance.849 22.170 5.729 11.6 81.726 5.946 4.531 14.6% $ 109.044 14.957 14.2% 39.1% 34.4% 36.9 13. Intersegment transactions have not been eliminated.828 3Q 5.821 10.022 32.262 6.377 3.642 12.894 7.166 8.0% 13.721 13.890 11.3% 38.227 13.3% 34.6% 37.565 54.185 3.2% $ 112.518 $ 1.9% 33.191 2013 2Q 5.965 58.491 12.63 $ 2.298 11.824 15.489 53.200 11.457 4Q 5.776 8.484 $ 1.144 2.2 84.460 13.86 $ 2.248 15.288 51.384 11.661 3. Wireline – Selected Operating Statistics Unaudited Connections ('000) FiOS Video Subscribers FiOS Internet Subscribers FiOS Digital Voice residence connections FiOS Digital connections HSI Total Broadband connections Primary residence switched access connections Primary residence connections Total retail residence voice connections Total voice connections Net Add Detail ('000) FiOS Video Subscribers FiOS Internet Subscribers FiOS Digital Voice residence connections FiOS Digital connections HSI Total Broadband connections Primary residence switched access connections Primary residence connections Total retail residence voice connections Total voice connections Revenue & ARPU Statistics Consumer ARPU FiOS revenues ($M) Strategic services as a % of total Enterprise revenues Other Operating Statistics Capital expenditures ($M) Wireline employees (K) FiOS Video Open for Sale (K) FiOS Video penetration FiOS Internet Open for Sale (K) FiOS Internet penetration 1Q 4.503 1Q 4.322 12.229 21.488 8.7 83.725 $ 1.762 90.592 5.371 8.795 7.943 15.515 $ 1.725 22.283 14.010 2.2% 38.583 21.810 3.368 36.222 23.995 6.612 3.764 8.537 $ 1.380 51.282 8.015 6.593 11.265 3.4 85.353 5.421 21.049 8.938 12.424 3.86 $ 2.5% Footnotes: The segment financial results and metrics above are adjusted to exclude the effects of non-operational items.3% $ 107.481 10.017 11.780 14.823 57.773 3.847 4Q 4.8 88. 16 .939 7.15 $ 2.473 5.67 $ 2.Verizon Communications Inc.648 12.5% 34.434 $ 1.085 180 193 414 787 (89) 104 (562) (148) (205) (437) 120 134 350 604 (132) 2 (501) (151) (199) (422) 119 136 290 545 (144) (8) (459) (169) (217) (431) 134 144 289 567 (117) 27 (402) (113) (156) (344) 169 188 304 661 (89) 99 (389) (85) (124) (312) 140 161 286 587 (116) 45 (393) (107) (142) (363) 135 173 252 560 (117) 56 (379) (127) (162) (371) 92 126 179 397 (106) 20 (340) (161) (192) (372) $ 97.6% 39.817 14.6% 32.0% 37.124 11.06 $ 2.072 4.943 9.

2013 .As of December 31.

18 . net to net income. Definitions – Non-GAAP Measures Non-GAAP Measures Verizon's financial information includes information prepared in conformity with generally accepted accounting principles (GAAP) as well as non-GAAP information. Consolidated Adjusted EBITDA margin is calculated by dividing Consolidated Adjusted EBITDA by Consolidated Operating Revenues. Consolidated Adjusted Operating Income Verizon Consolidated Adjusted Operating Income (Adjusted Operating Income) is a non-GAAP measure and does not purport to be an alternative to GAAP items as a measure of operating performance. depreciation and amortization expense. EBITDA and EBITDA Margin Verizon Consolidated Earnings Before Interest. but not instead of. equity in earnings of unconsolidated businesses and other income and (expense).Consolidated EBITDA is calculated by adding back interest. Consolidated . and Wireless Segment EBITDA Service margin is calculated by dividing Wireless Segment EBITDA by Wireless service revenues. Segment EBITDA and EBITDA margins are non-GAAP measures and do not purport to be alternatives to GAAP items as measures of operating performance. Wireline . It is management's intent to provide non-GAAP financial information to enhance the understanding of Verizon's GAAP consolidated financial information and it should be considered by the reader in addition to. Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure. taxes. Management believes that these measures provide additional relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance as they exclude the substantial impact of these events on the business. Management believes that Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA margin provide additional relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance. Management believes that this measure is useful to investors and other users of our financial information in evaluating the effectiveness of our operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance. as they exclude the depreciation and amortization expense related primarily to capital expenditures and acquisitions that occurred in prior years. Free Cash Flow Free Cash Flow is a non-GAAP financial measure that management believes is useful to investors and other users of our financial information in evaluating cash available to pay debt and dividends. Taxes.Verizon Communications Inc. Consolidated EBITDA margin is calculated by dividing Consolidated EBITDA by Consolidated Operating Revenues. Consolidated Adjusted EBITDA is calculated by excluding the effect of non-operational items from the calculation of Consolidated EBITDA.Wireless Segment EBITDA is calculated by adding back depreciation and amortization expense to Wireless Segment Operating Income. Adjusted EPS is calculated by excluding the effect of nonoperational or non-recurring items from the calculation of reported EPS. Depreciation and Amortization (EBITDA). Free Cash Flow is calculated by subtracting capital expenditures from net cash provided by operating activities. Wireless . The non-GAAP financial information presented may be determined or calculated differently by other companies. the financial statements prepared in accordance with GAAP. Adjusted Earnings Per Common Share excluding the impact of Superstorm Sandy is calculated by adding back the effect of Superstorm Sandy to the calculation of Adjusted EPS. and Wireline Segment EBITDA margin is calculated by dividing Wireline Segment EBITDA by Wireline total operating revenues. Adjusted Earnings Per Common Share Adjusted Earnings Per Common Share (Adjusted EPS) and Adjusted Earnings Per Common Share excluding the impact of Superstorm Sandy are non-GAAP financial measures that management believes are useful to investors and other users of our financial information in evaluating our operating results and understanding our operating trends. as well as in evaluating operating performance in relation to Verizon's competitors. The Wireless Segment EBITDA Service margin utilizes service revenues rather than Wireless' total operating revenues in order to capture the impact of providing service to the Wireless customer base on an ongoing basis. Adjusted Operating Income is calculated by excluding the effect of non-operational items from the calculation of Consolidated Operating Income. Service revenues primarily exclude equipment revenues (as well as other non-service revenues). Management believes that these measures are useful to investors and other users of our financial information in evaluating operating profitability on a more variable cost basis.Wireline Segment EBITDA is calculated by adding back depreciation and amortization expense to Wireline Segment Operating Income.

Management believes that this presentation assists investors and other users of our financial information in understanding trends that are indicative of future operating results given the non-operational nature of the items excluded from the calculation. Net Debt is calculated by subtracting cash and cash equivalents from the sum of debt maturing within one year and long-term debt. Consolidated Adjusted EBITDA and Adjusted EPS include pension expenses calculated based on the prior year-end discount rate and expected return on plan assets used during the first three quarters of the year. Adjusted EBITDA is calculated for the last twelve months.Verizon Communications Inc. Definitions – Non-GAAP Measures Net Debt and Net Debt to Adjusted EBITDA Ratio Net Debt and the Net Debt to Adjusted EBITDA Ratio are non-GAAP financial measures that management believes are useful to investors and other users of our financial information in evaluating Verizon's leverage. as opposed to the actual discount rate and return on plan assets. For purposes of the Net Debt to Adjusted EBITDA Ratio. which are not available until December 31 or upon a remeasurement event. 19 . Adjusted EBITDA and Adjusted EPS Consolidated Adjusted Operating Income. Consolidated Adjusted Operating Income. Management believes that excluding actuarial gains or losses as a result of a remeasurement provides investors and other users of our financial information with more meaningful sequential and year-over-year quarterly comparisons and is consistent with management’s evaluation of business performance.

894 1.335 46.118 $ 10.118 $ 10.167 $ 10.137 8.2 % 25.088 $ 4.476 51.987 3.293 4. (dollars in millions) Unaudited 3/31/12 6/30/12 9/30/12 12/31/12 3/31/13 6/30/13 9/30/13 12/31/13 Net Debt to Adjusted EBITDA Ratio Verizon Net Debt Debt maturing within one year Long-term debt Total Debt Less: Cash and cash equivalents Net Debt Net Debt to Adjusted EBITDA Ratio $ 3.993 52.916 2.369 47.Verizon Communications Inc.222 6.791 90.Verizon Verizon Consolidated EBITDA Consolidated net income (loss) Add/Subtract non-operating items: Provision (Benefit) for income taxes Interest expense Other (income) and expense.483 4.8% 52.483 $ 3.2x $ 7.167 $ 9.183 $ 16.961 $ 8.222 4.061 250 (8) 12.YTD (1) (1) Year-to-date Consolidated EBITDA and Consolidated Adjusted EBITDA represent the sum of the quarterly results.881 5.651 4.430 $ 40.318 4.0x 20 .618 51.3 % 6.223 5.063 $ 5.578 1.909 $ 45.3% 40.926) $ 4.933 41.195 4.752 99.1x 1.151 $10.195 5.034 7.093 $ 48.195 4.867 4.938 89.6 % (3.3x $10.198 988 514 (25) (120) 6.YTD (1) Operating Income (Loss) Add/Subtract other items (before tax): Severance.282 $ 7.714 $ 43.788 56.706 $ 5.5)% 3.779 $ 4.079 (87) (3.140 93.844 1.223 $ 4.550 (dollars in millions) Unaudited 3 Months 3 Months 3 Months Ended Ended Ended 3/31/12 6/30/12 9/30/12 3 Months 3 Months 3 Months Ended Ended Ended 12/31/12 3/31/13 6/30/13 3 Months 3 Months Ended Ended 9/30/13 12/31/13 Adjusted EBITDA .128 4.995) 6.128 $ 9.285 793 679 (34) (72) 5.846 3 Months 12 Months Ended Ended 12/31/13 12/31/13 $ 31.068 4.964 $ 42.183 $ 10.169) 4.9% $ Consolidated Adjusted EBITDA Margin Consolidated Adjusted EBITDA Margin .202 $ 3.186 276 4.906 726 685 (19) (103) 5.555 7.430 28.251 33. Consolidated Reconciliations (dollars in millions) Unaudited Consolidated Operating Revenues 3 Months 12 Months Ended Ended 12/31/12 12/31/12 $30.406 1.154 $ 11.658 49.028 $ 9.128 864 537 (39) 5 6.034 555 (20) (19) 7.063 4.688 $ 5.810) 575 1.391 10.063 1.467 52.004 (5.001 $ 42.710 53.292 631 632 (10) (62) 5.065 $120.340 (237) 6. net Equity in earnings of unconsolidated businesses Operating Income (Loss) Add: Depreciation and amortization expense Consolidated EBITDA Consolidated Operating Income Margin Consolidated EBITDA Margin Consolidated EBITDA Margin .475 $47.528 $47.651 5.855 (2.222 4.028 $ 9.591 1.045 $115.802 9.151 $10.469 (278) 6.888 41.390 $ 6.650 $ (1.137 968 (10.2x 1.555 4.3% 12.1 % 32.0% 34.479 52.597 5.340 $ 5.246 38.169) 6.154 $ 11.779 384 5.651 4.912 46.850 4. pension & benefit charges (credits) Gain on spectrum license transaction Litigation settlements Other non-operational costs Adjusted Operating Income Add: Depreciation and amortization expense Consolidated Adjusted EBITDA 5.128 $ 9.121 48.

07 2.07 0.Verizon Verizon Free Cash Flow Net cash provided by operating activities Less: Capital expenditures Free Cash Flow $ 31.08 2.29) 0.Verizon Reported EPS Severance.19 0.45 0.77 0.66 0.311 $ 38.78 (0.31 1.175 $ 15.818 16.31 0.01) 0. and benefit charges (credits) Gain on spectrum license transaction Wireless transactions costs Early debt redemption and other restructuring costs Litigation settlements Adjusted EPS Superstorm Sandy impact Adjusted EPS excluding Superstorm Sandy Impact Note: EPS may not add due to rounding.31 $ 0.35) (0.55 0.20 2.31 0.604 $ 22.02) (0.77 $ 1.24 0. $ (1.38 0.48) $ 1.84 2.55 0.02) 0.214 21 . Earnings Per Share Reconciliations Unaudited 3 Months 12 Months Ended Ended 12/31/12 12/31/12 3 Months 3 Months 12 Months Ended Ended Ended 9/30/13 12/31/13 12/31/13 Adjusted EPS .486 16. pension.66 $ 4.Verizon Communications Inc.00 (1.84 $ $ $ $ $ $ $ $ $ $ Free Cash Flow Reconciliations (dollars in millions) Unaudited 12 Months 12 Months Ended Ended 12/31/12 12/31/13 Free Cash Flow .76 (1.

7% 18.047 $ 4.946 $ 8. Wireless Reconciliations (dollars in millions) Unaudited 3 Months 3 Months 3 Months 3 Months 3 Months 3 Months 3 Months 3 Months Ended Ended Ended Ended Ended Ended Ended Ended 3/31/12 6/30/12 9/30/12 12/31/12 3/31/13 6/30/13 9/30/13 12/31/13 Wireless Segment EBITDA Operating Income Add: Depreciation and amortization expense Wireless Segment EBITDA Wireless total operating revenues Wireless service revenues Wireless Operating Income Margin Wireless Segment EBITDA Service Margin Wireless Segment EBITDA Service Margin -YTD (1) $ 5.914 $ 9.711 28.994 $ 19.204 $ 9.3% 22.4% 50.1% 47.814 $ 9.945 $ 9.5% (1) Year-to-date Wireless Segment EBITDA and Wireless Segment Service revenues represent the sum of the quarterly results.4% 21.8% 24.1% 0.464 $ 6.799 $ 2.8% 31.4% 33.9% 32.418 $ 6.424 $ 8.4% 49.976 $ 20.073 $ 2.047 2.785 $ 8. 22 .095 2.724 $ 8.830 $ 9.6% 1.931 $ 9.089 $ 7.5% 46.577 $ 19.Verizon Communications Inc.125 2.410 $ 15.074 2.399 $ 21.713 $ 6.994 2.516 $ 17.102 2.085 2.024 $ 19.290 $ 2.511 $ 8.845 1.2% (1) Year-to-date Wireline Segment EBITDA and Wireline Segment revenues represent the sum of the quarterly results.6% 1.108 $ 2.148 $ 1.3% 49.318 $ 18.0% 21.8% 1.247 $ 2.0% 32.135 $ 7.4% 22. Wireline Reconciliations (dollars in millions) Unaudited 3 Months 3 Months 3 Months 3 Months 3 Months 3 Months 3 Months 3 Months Ended Ended Ended Ended Ended Ended Ended Ended 3/31/12 6/30/12 9/30/12 12/31/12 3/31/13 6/30/13 9/30/13 12/31/13 Wireline Segment EBITDA Operating Income (Loss) Add: Depreciation and amortization expense Wireline Segment EBITDA Wireline total operating revenues Wireline Operating Income Margin Wireline Segment EBITDA Margin Wireline Segment EBITDA Margin -YTD (1) $ 157 $ 188 $ 41 $ (326) $ 13 $ 74 $ 155 $ 131 2.1% 21.0% 41.125 $ 15.037 1.159 $ 2.3)% 0.886 $ 6.006 2.090 2.6% 30.3% 22.728 $ 17.791 $ 6.273 $ 18.0% 46.393 $ 16.8% 29.776 $ 16.229 $ 2.229 1.523 $ 19.154 $ 16.7% 22.011 2.9% 0.0% 50.734 $ 9.078 $ 17.6% 49.990 $ 9.2% 22.8% 51.107 2.6% 23.918 2.060 2.084 $ 6.217 $ 5.4% (3.