What is the primary purpose of this 8-K filing?

This 8-K filing's primary purpose is to provide disclosure under Regulation FD, specifically by furnishing the consolidated financial statements of Cellco Partnership (Verizon Wireless) for the years 1999, 2000, and 2001. These financials detail the operational and financial performance of Verizon's wireless division.

What were the key business integrations that shaped Verizon Wireless during this period?

The period covered by these financials was marked by significant integrations. Key events include the merger of Bell Atlantic and GTE Corporation (forming Verizon Communications) and the alliance between Bell Atlantic (later Verizon Communications) and Vodafone to combine their U.S. wireless operations. These events led to the formation and consolidation of Verizon Wireless as a major wireless entity.

How did the company's revenue and profitability evolve from 1999 to 2001?

Verizon Wireless demonstrated strong revenue growth, with total operating revenue increasing from $7.7 billion in 1999 to $17.4 billion in 2001. Net income also grew, from $932 million in 1999 to $1.5 billion in 2000, before slightly decreasing to $1.3 billion in 2001. This indicates significant top-line expansion and overall profitability despite integration complexities.

What are the major components of Verizon Wireless's assets, and are there any significant intangible assets?

The company's assets are heavily weighted towards Property, Plant, and Equipment, and substantial intangible assets. Notably, 'Deferred cellular licenses, goodwill and other intangibles, net' is a significant line item, reaching $39.8 billion by the end of 2001. This reflects substantial investments in spectrum licenses and goodwill from acquisitions.

VZ 8-K SEC Disclosure — May 22, 2002

Summary

This 8-K filing from Verizon Communications Inc. (VZ) on May 22, 2002, provides the consolidated financial statements for Cellco Partnership, doing business as Verizon Wireless, for the years ended December 31, 1999, 2000, and 2001. The filing details significant business combinations and transactions, including the 2000 merger of Bell Atlantic and GTE Corporation, which formed Verizon Communications, and the subsequent integration of their wireless operations under the Verizon Wireless brand. This consolidation significantly impacted the Partnership's balance sheet and operations, leading to increased revenues and assets, particularly in deferred licenses and goodwill. Key financial metrics show robust growth in operating revenue, increasing from $7.7 billion in 1999 to $17.4 billion in 2001, driven by service revenues. The company also experienced substantial investments in property, plant, and equipment, alongside a significant increase in intangible assets, reflecting ongoing network expansion and license acquisitions. While net income fluctuated, the overall financial picture indicates a rapidly scaling wireless operation facing significant integration and growth challenges typical of the sector during that period. Investors should note the large goodwill and intangible asset balances, which are subject to ongoing accounting changes, and the ongoing integration efforts.

Key Highlights

1Verizon Wireless (Cellco Partnership) reported substantial growth in total operating revenue, rising from $7.7 billion in 1999 to $17.4 billion in 2001, primarily driven by service revenues.
2The company's balance sheet shows significant increases in Property, Plant, and Equipment, growing from $12.8 billion in 2000 to $16.0 billion in 2001, indicating ongoing network infrastructure investment.
3Deferred cellular licenses, goodwill, and other intangibles represent a substantial portion of the balance sheet, increasing from $39.2 billion in 2000 to $39.8 billion in 2001, reflecting significant acquisition costs and license purchases.
4Net income for Verizon Wireless was $932 million in 1999, $1.5 billion in 2000, and $1.3 billion in 2001, demonstrating profitability amidst rapid expansion.
5The financial statements detail the impact of significant business combinations, including the merger of Bell Atlantic and GTE, and the alliance with Vodafone, which reshaped the company's structure and asset base.
6Capital expenditures were substantial, increasing from $1.5 billion in 1999 to $5.0 billion in 2000 and $5.0 billion in 2001, supporting network build-out and upgrades.
7The company adopted SFAS No. 133 and SFAS No. 138 related to derivative instruments and hedging activities in 2001, with a minor impact on financial statements.

VERIZON COMMUNICATIONS INC 8-K Report (May 22, 2002)

Summary

Key Highlights

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