1Q 2019 highlights

Consolidated:

• $1.22 in earnings per share (EPS), compared with $1.11 in 1Q 2018; adjusted EPS (non-GAAP) of $1.20, excluding a special item, compared with $1.17 in 1Q 2018.
• Total consolidated revenue growth of 1.1 percent year over year, to $32.1 billion.

Wireless:

• 61,000 retail postpaid net additions, including 174,000 postpaid smartphone net additions.
• Retail postpaid churn of 1.12 percent, and retail postpaid phone churn of 0.84 percent.
• Service revenue growth of 4.4 percent year over year.
• Total revenue growth of 3.7 percent year over year to $22.7 billion.

Wireline:

• 52,000 Fios Internet net additions; Fios total revenue growth of 3.6 percent year over year.

NEW YORK, April 23, 2019 (GLOBE NEWSWIRE) -- As the 5G mobility era begins, Verizon Communications Inc. (NYSE, Nasdaq: VZ) today reported first-quarter 2019 results highlighted by continued wireless service revenue growth and strong earnings per share.

“Verizon began 2019 by extending our leadership position in 4G, driving innovation in 5G and expanding our high-valued customer relationships,” said Chairman and CEO Hans Vestberg. “2019 is shaping up to be an exciting year for Verizon. We are leading the world in the development of new technologies with the launch of our 5G Ultra Wideband network. Our ambition remains unchanged to provide the most advanced next-generation networks in the world.”

For first-quarter 2019, Verizon reported EPS of $1.22, compared with $1.11 in first-quarter 2018. On an adjusted basis (non-GAAP), first-quarter 2019 EPS was $1.20, excluding a special item, compared with adjusted EPS of $1.17 in first-quarter 2018. Verizon’s first-quarter 2019 EPS included a 2 cent benefit due to a pension re-measurement triggered by the company's Voluntary Separation Program.

In first-quarter 2019, Verizon faced headwinds as a result of a reduction in benefits from the adoption of a revenue recognition standard, primarily due to the deferral of commission expense, and the adoption of a lease accounting standard. The combined impact was a 4 cent year-over-year headwind to EPS.

Consolidated results

Total consolidated operating revenues in first-quarter 2019 were $32.1 billion, up 1.1 percent from first-quarter 2018, primarily driven by strong wireless service revenue growth.

Cash flow from operations totaled $7.1 billion in first-quarter 2019, an increase of approximately $400 million year over year. This increase was driven by the continued momentum in Verizon's operating businesses and lower discretionary employee benefits contributions, partially offset by the first -- and largest -- of three payments related to the Voluntary Separation Program.

First-quarter 2019 capital expenditures totaled $4.3 billion. Verizon's capital expenditures continue to support the launch and continued build-out of its 5G Ultra Wideband network, the growth in data and video traffic on the company's 4G LTE network, the deployment of significant fiber in markets nationwide and the upgrade to Verizon's Intelligent Edge Network.

In 2018, Verizon announced a goal to achieve $10 billion in cumulative cash savings by 2021. This initiative has yielded approximately $3.0 billion of cumulative cash savings since this program began. By the end of first-quarter 2019, Verizon completed the first two phases of its Voluntary Separation Program and realized approximately $180 million of expense savings. These savings are expected to contribute to the company's cumulative cash savings goal.

For first-quarter 2019, Verizon Media revenues were $1.8 billion, down 7.2 percent year over year. Declines in desktop advertising continue to more than offset growth in mobile and native advertising.

Net income was $5.2 billion in first-quarter 2019. EBITDA (non-GAAP, earnings before interest, taxes, depreciation and amortization) totaled approximately $12.2 billion. Consolidated operating income margin was 24.0 percent. Consolidated EBITDA margin (non-GAAP) was 38.1 percent in first-quarter 2019, compared with 36.4 percent in first-quarter 2018. Adjusted EBITDA margin (non-GAAP) in first-quarter 2019 was 37.2 percent.

Wireless results

• Verizon reported 61,000 retail postpaid net additions in first-quarter 2019, consisting of 44,000 phone net losses and tablet net losses of 156,000, offset by 261,000 other connected device net additions, primarily wearables. Postpaid smartphone net additions were 174,000.
• Total revenues were $22.7 billion, an increase of 3.7 percent year over year, primarily driven by continued strong service revenue performance.
• Service revenues increased 4.4 percent in first-quarter 2019, driven by customer step-ups to higher-priced plans, contributions from strong retail postpaid net additions in fourth-quarter 2018 and an increase in connections per account.
• Total retail postpaid churn was 1.12 percent in first-quarter 2019, and retail postpaid phone churn was 0.84 percent.
• Segment operating income was $8.5 billion, an increase of 5.2 percent year over year. Segment EBITDA (non-GAAP) totaled $10.8 billion in first-quarter 2019, an increase of 2.7 percent year over year. Segment EBITDA margin (non-GAAP) was 47.4 percent, including approximately 85 basis points in headwinds primarily from the deferral of commission expense and the new lease accounting standard.

Wireline results

• Total wireline revenues decreased 3.9 percent year over year in first-quarter 2019 to $7.3 billion, as growth in high-quality fiber products was offset by pricing pressures on legacy products and technology shifts.
• Total Fios revenues grew 3.6 percent year over year to $3.1 billion. In first-quarter 2019, Verizon added a net of 52,000 Fios Internet connections and lost a net of 53,000 Fios Video connections, continuing to reflect the shift from traditional linear video to over-the-top offerings.
• Wireline operating loss was $88 million in first-quarter 2019, and segment operating loss margin was 1.2 percent. Segment EBITDA (non-GAAP) was $1.5 billion in first-quarter 2019. Segment EBITDA margin (non-GAAP) was 20.3 percent in first-quarter 2019, compared with 21.2 percent in first-quarter 2018.

Outlook and guidance

Based on the strength of the operational trends in the underlying business, Verizon is raising earnings guidance for full-year 2019:

• The company expects low single-digit percentage growth in adjusted EPS, excluding the impact of the new lease accounting standard. This is an increase from prior guidance for 2019 adjusted EPS to be similar to 2018, excluding the impact of the new lease accounting standard.

Verizon also expects the following:

• Low single-digit percentage growth in full-year consolidated revenues on a GAAP reported basis.
• The effective tax rate for full-year 2019 to be in the range of 24 percent to 26 percent.
• Cash taxes to be $2 billion to $3 billion higher than in 2018 due to benefits that were realized in 2018 that are not expected to repeat in 2019.
• Capital spending for 2019 to be in the range of $17 billion to $18 billion, including the expanded commercial launch of 5G.

NOTE: See the accompanying schedules and www.verizon.com/about/investors for reconciliations to generally accepted accounting principles (GAAP) for non-GAAP financial measures cited in this document.

Verizon Communications Inc. (NYSE, Nasdaq: VZ), headquartered in New York City, generated revenues of $130.9 billion in 2018. The company operates America’s most reliable wireless network and the nation’s premier all-fiber network, and delivers integrated solutions to businesses worldwide. With brands like Yahoo, TechCrunch and HuffPost, the company’s media group helps consumers stay informed and entertained, communicate and transact, while creating new ways for advertisers and partners to connect. Verizon’s corporate responsibility prioritizes the environmental, social and governance issues most relevant to its business and impact to society.

VERIZON’S ONLINE MEDIA CENTER: News releases, stories, media contacts and other resources are available at www.verizon.com/about/news/. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.

Forward-looking statementsIn this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words “anticipates,” “believes,” “estimates,” “expects,” “hopes” or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the “SEC”), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: adverse conditions in the U.S. and international economies; the effects of competition in the markets in which we operate; material changes in technology or technology substitution; disruption of our key suppliers’ provisioning of products or services; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks; breaches of network or information technology security, natural disasters, terrorist attacks or acts of war or significant litigation and any resulting financial impact not covered by insurance; our high level of indebtedness; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; material adverse changes in labor matters, including labor negotiations, and any resulting financial and/or operational impact; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or treaties, or in their interpretation; changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; the inability to implement our business strategies; and the inability to realize the expected benefits of strategic transactions.

Verizon Communications Inc.
Condensed Consolidated Statements of Income
			(dollars in millions, except per share amounts)
			3 Mos. Ended			3 Mos. Ended
Unaudited			3/31/19			3/31/18			% Change
Operating Revenues
Service revenues and other			$	27,197		$	26,732		1.7
Wireless equipment revenues				4,931			5,040		(2.2	)
Total Operating Revenues				32,128			31,772		1.1
Operating Expenses
Cost of services				7,792			7,946		(1.9	)
Wireless cost of equipment				5,198			5,309		(2.1	)
Selling, general and administrative expense				7,198			6,844		5.2
Depreciation and amortization expense				4,231			4,324		(2.2	)
Total Operating Expenses				24,419			24,423		—
Operating Income				7,709			7,349		4.9
Equity in losses of unconsolidated businesses				(6	)		(19	)	(68.4	)
Other income (expense), net				295			(75	)	*
Interest expense				(1,210	)		(1,201	)	0.7
Income Before Provision For Income Taxes				6,788			6,054		12.1
Provision for income taxes				(1,628	)		(1,388	)	17.3
Net Income			$	5,160		$	4,666		10.6
Net income attributable to noncontrolling interests			$	128		$	121		5.8
Net income attributable to Verizon				5,032			4,545		10.7
Net Income			$	5,160		$	4,666		10.6
Basic Earnings Per Common Share
Net income attributable to Verizon			$	1.22		$	1.11		9.9
Weighted average number of common shares (in millions)				4,138			4,104
Diluted Earnings Per Common Share (1)
Net income attributable to Verizon			$	1.22		$	1.11		9.9
Weighted average number of common
		shares-assuming dilution (in millions)		4,140			4,107
Footnotes:
(1	)	Diluted Earnings per Common Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represents the only potential dilution.
*		Not meaningful

Verizon Communications Inc.
Condensed Consolidated Balance Sheets
			(dollars in millions)
Unaudited			3/31/19				12/31/18				$ Change
Assets
Current assets
Cash and cash equivalents			$	2,322			$	2,745			$	(423	)
Accounts receivable, net				24,469				25,102				(633	)
Inventories				1,417				1,336				81
Prepaid expenses and other				5,189				5,453				(264	)
Total current assets				33,397				34,636				(1,239	)
Property, plant and equipment				254,457				252,835				1,622
Less accumulated depreciation				166,608				163,549				3,059
Property, plant and equipment, net				87,849				89,286				(1,437	)
Investments in unconsolidated businesses				674				671				3
Wireless licenses				94,237				94,130				107
Goodwill				24,635				24,614				21
Other intangible assets, net				9,608				9,775				(167	)
Operating lease right-of-use assets				23,105				—				23,105
Other assets				10,442				11,717				(1,275	)
Total assets			$	283,947			$	264,829			$	19,118
Liabilities and Equity
Current liabilities
Debt maturing within one year			$	8,614			$	7,190			$	1,424
Accounts payable and accrued liabilities				18,664				22,501				(3,837	)
Current operating lease liabilities				2,997				—				2,997
Other current liabilities				8,332				8,239				93
Total current liabilities				38,607				37,930				677
Long-term debt				105,045				105,873				(828	)
Employee benefit obligations				17,888				18,599				(711	)
Deferred income taxes				34,344				33,795				549
Non-current operating lease liabilities				18,971				—				18,971
Other liabilities				11,632				13,922				(2,290	)
Total long-term liabilities				187,880				172,189				15,691
Equity
Common stock				429				429				—
Additional paid in capital				13,418				13,437				(19	)
Retained earnings				46,493				43,542				2,951
Accumulated other comprehensive income				2,216				2,370				(154	)
Common stock in treasury, at cost				(6,825	)			(6,986	)			161
Deferred compensation – employee stock ownership plans and other				125				353				(228	)
Noncontrolling interests				1,604				1,565				39
Total equity				57,460				54,710				2,750
Total liabilities and equity			$	283,947			$	264,829			$	19,118
Verizon - Selected Financial and Operating Statistics
Unaudited			3/31/19				12/31/18
Total debt (in millions)			$	113,659			$	113,063
Net debt (in millions)			$	111,337			$	110,318
Net unsecured debt (in millions)			$	100,951			$	100,242
Net debt / Consolidated Adjusted EBITDA(1)			2.3x				2.3x
Net unsecured debt / Consolidated Adjusted EBITDA(1)			2.1x				2.1x
Common shares outstanding end of period (in millions)				4,136				4,132
Total employees (‘000)				139.4				144.5
Quarterly cash dividends declared per common share			$	0.6025			$	0.6025
Footnotes:
(1) Consolidated adjusted EBITDA excludes the effects of non-operational items and special items.

Verizon Communications Inc.
Condensed Consolidated Statements of Cash Flows
		(dollars in millions)
		3 Mos. Ended				3 Mos. Ended
Unaudited		3/31/19				3/31/18				$ Change
Cash Flows from Operating Activities
Net Income		$	5,160			$	4,666			$	494
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense			4,231				4,324				(93	)
Employee retirement benefits			(195	)			(151	)			(44	)
Deferred income taxes			459				702				(243	)
Provision for uncollectible accounts			319				239				80
Equity in losses of unconsolidated businesses, net of dividends received			21				30				(9	)
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses			(2,702	)			(2,033	)			(669	)
Discretionary employee benefits contributions			(300	)			(1,000	)			700
Other, net			88				(129	)			217
Net cash provided by operating activities			7,081				6,648				433
Cash Flows from Investing Activities
Capital expenditures (including capitalized software)			(4,268	)			(4,552	)			284
Acquisitions of businesses, net of cash acquired			(25	)			(32	)			7
Acquisitions of wireless licenses			(104	)			(970	)			866
Other, net			(406	)			269				(675	)
Net cash used in investing activities			(4,803	)			(5,285	)			482
Cash Flows from Financing Activities
Proceeds from long-term borrowings			2,131				1,956				175
Proceeds from asset-backed long-term borrowings			1,117				1,178				(61	)
Repayments of long-term borrowings and finance lease obligations			(2,963	)			(2,984	)			21
Repayments of asset-backed long-term borrowings			(813	)			—				(813	)
Dividends paid			(2,489	)			(2,407	)			(82	)
Other, net			360				941				(581	)
Net cash used in financing activities			(2,657	)			(1,316	)			(1,341	)
Increase (decrease) in cash, cash equivalents and restricted cash			(379	)			47				(426	)
Cash, cash equivalents and restricted cash, beginning of period			3,916				2,888				1,028
Cash, cash equivalents and restricted cash, end of period		$	3,537			$	2,935			$	602

Verizon Communications Inc.
Wireless - Selected Financial Results
					(dollars in millions)
		3 Mos. Ended			3 Mos. Ended
Unaudited		3/31/19			3/31/18			% Change
Operating Revenues
Service		$	16,072		$	15,402		4.4
Equipment			4,931			5,040		(2.2	)
Other			1,697			1,458		16.4
Total Operating Revenues			22,700			21,900		3.7
Operating Expenses
Cost of services			2,456			2,215		10.9
Cost of equipment			5,198			5,309		(2.1	)
Selling, general and administrative expense			4,281			3,899		9.8
Depreciation and amortization expense			2,299			2,428		(5.3	)
Total Operating Expenses			14,234			13,851		2.8
Operating Income		$	8,466		$	8,049		5.2
Operating Income Margin			37.3	%		36.8	%
Segment EBITDA		$	10,765		$	10,477		2.7
Segment EBITDA Margin			47.4	%		47.8	%
Footnotes:
	The segment financial results and metrics above are adjusted to exclude the effects of special items, as the Company’s chief operating decision maker excludes these items in assessing business unit performance.
	Intersegment transactions have not been eliminated.

Verizon Communications Inc.
Wireless - Selected Operating Statistics
Unaudited			3/31/19			3/31/18			% Change
Connections (‘000)
Retail postpaid				113,407			111,114		2.1
Retail prepaid				4,479			5,068		(11.6	)
Total retail				117,886			116,182		1.5
			3 Mos. Ended			3 Mos. Ended
Unaudited			3/31/19			3/31/18			% Change
Net Add Detail (‘000) (1)
Retail postpaid				61			260		(76.5	)
Retail prepaid				(176	)		(335	)	47.5
Total retail				(115	)		(75	)	(53.3	)
Account Statistics
Retail postpaid accounts (‘000) (2)				35,338			35,333		—
Retail postpaid connections per account (2)				3.21			3.14		2.2
Retail postpaid ARPA (3)				136.68			131.71		3.8
Retail postpaid I-ARPA (4)				172.09			164.72		4.5
Churn Detail
Retail postpaid				1.12	%		1.04	%
Retail				1.31	%		1.28	%
Retail Postpaid Connection Statistics (2)
Total smartphone postpaid phone base				92.7	%		90.7	%
Total Internet postpaid base				19.7	%		19.2	%
Other Operating Statistics
Capital expenditures (in millions)			$	2,044		$	2,367		(13.6	)
Footnotes:
(1	)	Connection net additions exclude acquisitions and adjustments.
(2	)	Statistics presented as of end of period.
(3	)	Retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
(4	)	Retail postpaid I-ARPA - average service revenue per account from retail postpaid account plus recurring device installment billings.
		The segment financial results and metrics above are adjusted to exclude the effects of special items, as the Company’s chief operating decision maker excludes these items in assessing business unit performance.
		Intersegment transactions have not been eliminated.
*		Not meaningful

Verizon Communications Inc.
Wireline - Selected Financial Results
					(dollars in millions)
		3 Mos. Ended			3 Mos. Ended
Unaudited		3/31/19			3/31/18			% Change
Operating Revenues
Consumer Markets		$	3,153		$	3,150		0.1
Enterprise Solutions			2,140			2,240		(4.5	)
Partner Solutions			1,075			1,228		(12.5	)
Business Markets			828			871		(4.9	)
Other			68			68		—
Total Operating Revenues			7,264			7,557		(3.9	)
Operating Expenses
Cost of services			4,186			4,475		(6.5	)
Selling, general and administrative expense			1,606			1,479		8.6
Depreciation and amortization expense			1,560			1,534		1.7
Total Operating Expenses			7,352			7,488		(1.8	)
Operating Income (Loss)		$	(88	)	$	69		*
Operating Income (Loss) Margin			(1.2	)%		0.9	%
Segment EBITDA		$	1,472		$	1,603		(8.2	)
Segment EBITDA Margin			20.3	%		21.2	%
Footnotes:
	The segment financial results and metrics above are adjusted to exclude the effects of special items, as the Company’s chief operating decision maker excludes these items in assessing business unit performance.
	Intersegment transactions have not been eliminated.
*	Not meaningful

Verizon Communications Inc.
Wireline - Selected Operating Statistics
Unaudited		3/31/19			3/31/18			% Change
Connections (‘000)
Fios video connections			4,398			4,597		(4.3	)
Fios Internet connections			6,119			5,916		3.4
Fios digital voice residence connections			3,758			3,891		(3.4	)
Fios digital connections			14,275			14,404		(0.9	)
High-speed Internet (HSI) connections			854			1,050		(18.7	)
Total broadband connections			6,973			6,966		0.1
Total voice connections			11,453			12,555		(8.8	)
		3 Mos. Ended			3 Mos. Ended
Unaudited		3/31/19			3/31/18			% Change
Net Add Detail (‘000)
Fios video connections			(53	)		(22	)	*
Fios Internet connections			52			66		(21.2	)
Fios digital voice residence connections			(45	)		(14	)	*
Fios digital connections			(46	)		30		*
High-speed Internet (HSI) connections			(40	)		(59	)	32.2
Total broadband connections			12			7		71.4
Total voice connections			(279	)		(266	)	(4.9	)
Revenue Statistics
Fios revenues (in millions)		$	3,057		$	2,951		3.6
Other Operating Statistics
Capital expenditures (in millions)		$	1,733		$	1,673		3.6
Wireline employees (‘000)			53.2			57.2
Footnotes:
	The segment financial results and metrics above are adjusted to exclude the effects of special items, as the Company’s chief operating decision maker excludes these items in assessing business unit performance.
	Intersegment transactions have not been eliminated.
*	Not meaningful

Verizon Communications Inc.
Non-GAAP Reconciliations - Consolidated Verizon
Consolidated EBITDA, Consolidated EBITDA Margin, Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA Margin
								(dollars in millions)
Unaudited		3 Mos. Ended3/31/19			3 Mos. Ended12/31/18			3 Mos. Ended9/30/18			3 Mos. Ended6/30/18			3 Mos. Ended3/31/18
Consolidated Net Income		$	5,160		$	2,065		$	5,062		$	4,246		$	4,666
Add/(subtract):
Provision (benefit) for income taxes			1,628			(698	)		1,613			1,281			1,388
Interest expense			1,210			1,199			1,211			1,222			1,201
Depreciation and amortization expense			4,231			4,352			4,377			4,350			4,324
Consolidated EBITDA		$	12,229		$	6,918		$	12,263		$	11,099		$	11,579
Add/subtract:
Other (income) expense, net*		$	(295	)	$	(1,865	)	$	(214	)	$	(360	)	$	75
Equity in losses (earnings) of unconsolidated businesses†			6			(64	)		3			228			19
Oath goodwill impairment			—			4,591			—			—			—
Severance charges			—			1,818			—			339			—
Product realignment charges‡			—			—			—			450			—
Acquisition and integration related charges‡			—			187			130			109			105
			(289	)		4,667			(81	)		766			199
Consolidated Adjusted EBITDA		$	11,940		$	11,585		$	12,182		$	11,865		$	11,778
Consolidated Operating Revenues - Quarter to Date		$	32,128											$	31,772
Operating Income Margin - Quarter to Date			24.0	%											23.1	%
Consolidated EBITDA Margin - Quarter to Date			38.1	%											36.4	%
Consolidated Adjusted EBITDA Margin - Quarter to Date			37.2	%											37.1	%
* Includes Pension and benefits mark-to-market adjustments and Early debt redemption costs, where applicable.
† Includes Product realignment charges, where applicable.
‡ Excludes depreciation and amortization expense, where applicable.

Verizon Communications Inc.
Non-GAAP Reconciliations - Consolidated Verizon
Net Debt and Net Debt to Consolidated Adjusted EBITDA Ratio
																	(dollars in millions)
Unaudited																	3/31/19		12/31/18
Debt maturing within one year																	$	8,614	$	7,190
Long-term debt																		105,045		105,873
Total Debt																		113,659		113,063
Less Cash and cash equivalents																		2,322		2,745
Net Debt																	$	111,337	$	110,318
Net Debt to Consolidated Adjusted EBITDA Ratio																	2.3x		2.3x
Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio
																	(dollars in millions)
Unaudited																	3/31/19		12/31/18
Total Debt																	$	113,659	$	113,063
Less Secured debt																		10,386		10,076
Unsecured debt																		103,273		102,987
Less Cash and cash equivalents																		2,322		2,745
Net Unsecured Debt																	$	100,951	$	100,242
Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio																	2.1x		2.1x
Adjusted Earnings per Common Share (Adjusted EPS)(1)
Unaudited									3 Mos. Ended 3/31/19										3 Mos. Ended3/31/18
	Pre-tax			Tax		After-Tax						Pre-tax		Tax			After-Tax
EPS									$	1.22									$	1.11
Pension remeasurement credit	$	(96	)	$	25	$	(71	)		(0.02	)	$	—	$	—		$	—		—
Acquisition and integration related charges		—			—		—			—			107		(25	)		82		0.02
Early debt redemption costs		—			—		—			—			249		(65	)		184		0.04
	$	(96	)	$	25	$	(71	)		(0.02	)	$	356	$	(90	)	$	266		0.06
Adjusted EPS									$	1.20									$	1.17
(1) Adjusted EPS may not add due to rounding.

Verizon Communications Inc.
Non-GAAP Reconciliations - Segments
Segment EBITDA and Segment EBITDA Margin
Wireless		(dollars in millions)
Unaudited		3 Mos. Ended3/31/19				3 Mos. Ended3/31/18
Operating Income		$	8,466			$	8,049
Add Depreciation and amortization expense			2,299				2,428
Segment EBITDA		$	10,765			$	10,477
Total operating revenues		$	22,700			$	21,900
Operating Income Margin			37.3	%			36.8	%
Segment EBITDA Margin			47.4	%			47.8	%
Wireline		(dollars in millions)
Unaudited		3 Mos. Ended 3/31/19				3 Mos. Ended 3/31/18
Operating Income (Loss)		$	(88	)		$	69
Add Depreciation and amortization expense			1,560				1,534
Segment EBITDA		$	1,472			$	1,603
Total operating revenues		$	7,264			$	7,557
Operating Income (Loss) Margin			(1.2	)%			0.9	%
Segment EBITDA Margin			20.3	%			21.2	%

	Media contacts:
	Bob Varettoni
	908.559.6388
	[email protected]
	Eric Wilkens
	908.559.3063
	[email protected]

Source: Verizon Communications

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