Item 2.02. Results of Operations and Financial Condition
Attached as an exhibit hereto are a press release and financial tables dated
October 21, 2020 issued by Verizon Communications Inc. (Verizon).
Non-GAAP Measures
Verizon's press release and financial tables include financial information
prepared in conformity with generally accepted accounting principles in the
United States (GAAP) as well as non-GAAP financial information. It is
management's intent to provide non-GAAP financial information to enhance the
understanding of Verizon's GAAP financial information and it should be
considered by the reader in addition to, but not instead of, the financial
statements prepared in accordance with GAAP. 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. We believe that providing
these non-GAAP measures in addition to the GAAP measures allows management,
investors and other users of our financial information to more fully and
accurately assess both consolidated and segment performance. The non-GAAP
financial information presented may be determined or calculated differently by
other companies and may not be directly comparable to that of other companies.
EBITDA and EBITDA Margin Related Non-GAAP Measures
Consolidated earnings before interest, taxes, depreciation and amortization
(EBITDA), Segment EBITDA and Segment EBITDA Margin are non-GAAP financial
measures that we believe are useful to management, investors and other users of
our financial information as they are a widely accepted financial measures used
in evaluating the profitability of a company and with its competitors.
Consolidated EBITDA is calculated by adding back interest, taxes and
depreciation and amortization expense to net income.
Segment EBITDA is calculated by adding back segment depreciation and
amortization expense to segment operating income. Segment EBITDA Margin is
calculated by dividing Segment EBITDA by segment total operating revenues.
Consolidated Adjusted EBITDA
Consolidated Adjusted EBITDA is a non-GAAP financial measure that we believe
provides relevant and useful information to management, 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. We believe that Consolidated
Adjusted EBITDA is used by investors to compare a company's operating
performance to its competitors by minimizing impacts caused by differences in
capital structure, taxes and depreciation policies. Further, the exclusion of
non-operational items and special items enables comparability to prior period
performance and trend analysis.
Consolidated Adjusted EBITDA is calculated by excluding from Consolidated EBITDA
the effect of the following non-operational items: equity in losses and earnings
of unconsolidated businesses and other income and expense, net, and the
following special items: impairment charges, severance charges, loss on spectrum
license auction and net gain from dispositions of assets and businesses. The
impairment charges relate to goodwill impairment charges recognized in 2019 as a
result of the Company's annual goodwill impairment testing of its media
business, Verizon Media, and the impairment charge of an investment in a media
joint venture. Severance charges recorded during 2019 relate to headcount
reduction initiatives. Loss on spectrum license auction relates to the
reclassification of spectrum licenses to assets held for sale at fair value as a
result of Auction 103. Net gain from dispositions of assets and businesses
relates to the sale of various real estate properties and businesses in 2019.
Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio
Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio
are non-GAAP financial measures that we believe are useful to management,
investors and other users of our financial information in evaluating Verizon's
ability to service its unsecured debt from continuing operations.
Net Unsecured Debt is calculated by subtracting secured debt and cash and cash
equivalents from the sum of debt maturing within one year and long-term debt.
Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio is calculated by
dividing Net Unsecured Debt by Consolidated Adjusted EBITDA. For purposes of Net
Unsecured Debt to Consolidated Adjusted EBITDA Ratio, Consolidated Adjusted
EBITDA is calculated for the last twelve months.

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Adjusted Earnings per Common Share (Adjusted EPS) and Adjusted EPS Growth Forecast



Adjusted EPS and Adjusted EPS Growth Forecast are non-GAAP financial measures
that we believe are useful to management, investors and other users of our
financial information in evaluating our operating results and understanding our
operating trends without the effect of special items which could vary from
period to period. We believe excluding special items provides more comparable
assessment of our financial results from period to period.

Adjusted EPS is calculated by excluding from the calculation of reported EPS the
effect of the following special items: net pension remeasurement charge and net
gain from dispositions of assets and businesses.

We have not provided a reconciliation for our Adjusted EPS Growth Forecast because we cannot, without unreasonable effort, predict the special items that could arise during 2020.

Adjusted Effective Income Tax Rate Attributable to Verizon Forecast (Adjusted ETR Forecast)



Adjusted ETR Forecast is a non-GAAP financial measure that we believe is useful
to management, investors and other users of our financial information in
assessing our effective income tax rate without the effect of special
items which could vary from period to period. Adjusted ETR Forecast is
calculated by dividing the Provision for income taxes by Net Income attributable
to Verizon before tax after adjusting for the impact of special items.

We have not provided a reconciliation for our Adjusted ETR Forecast because we
cannot, without unreasonable effort, predict the special items that could arise
during 2020.

Free Cash Flow

Free cash flow is a non-GAAP financial measure that reflects an additional way
of viewing our liquidity that, when viewed with our GAAP results, provides a
more complete understanding of factors and trends affecting our cash flows. We
believe it is a more conservative measure of cash flow since capital
expenditures are necessary for ongoing operations. Free cash flow has
limitations due to the fact that it does not represent the residual cash flow
available for discretionary expenditures. For example, free cash flow does not
incorporate payments made on finance lease obligations or cash payments for
acquisitions of businesses or wireless licenses. Therefore, we believe it is
important to view free cash flow as a complement to our entire consolidated
statements of cash flows.

Free cash flow is calculated by subtracting capital expenditures (including
capitalized software) from net cash provided by operating activities.
See the accompanying schedules for reconciliations of non-GAAP financial
measures to GAAP.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.

Exhibit
Number                           Description

        99.1                     Press release and financial tables, dated October 21, 2020, issued by
                                 Verizon Communications Inc.

        104                      Cover Page Interactive Data File (formatted as inline XBRL).

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