Summary
This 8-K filing from Verizon Communications Inc. (VZ) on April 24, 2009, primarily informs investors about two key updates: the adoption of new accounting standards and the financial implications of its recent acquisition. Verizon has adopted SFAS No. 160, which changes the presentation of non-controlling interests (formerly minority interests) in its consolidated financial statements. While this adoption is applied retrospectively, it has no net effect on Verizon's earnings or operating cash flow. Additionally, the company has reclassified its Wireline segment revenues into four distinct marketing channels to better reflect the evolving business. Furthermore, the filing provides unaudited pro forma financial and operating information related to the acquisition of Alltel Corporation by Cellco Partnership (Verizon Wireless) on January 9, 2009. This pro forma data, presented for the four quarters of 2008 and the full year, is intended to help investors understand the potential impact of the Alltel acquisition as if it had occurred at the beginning of 2008. Investors should note that this pro forma information is illustrative, does not account for realized cost savings or integration costs, and may not be indicative of future results.
Key Highlights
- 1Adoption of SFAS No. 160: Verizon has adopted new accounting standards for non-controlling interests, with retrospective application and no net impact on earnings or cash flow.
- 2Wireline Revenue Reclassification: The Wireline segment's revenue presentation has been updated to four marketing channels (Mass Markets, Global Enterprise, Global Wholesale, Other) for better alignment with business evolution.
- 3Alltel Acquisition Pro Forma Data: Unaudited pro forma financial and operating information for the Alltel acquisition is being provided for 2008.
- 4Illustrative Pro Forma Information: The pro forma data for the Alltel acquisition is for illustrative purposes and does not include potential cost savings or integration costs.
- 5No Assurance on Cost Savings: The filing explicitly states there is no assurance that potential cost savings from the Alltel merger will be achieved.
- 6Non-GAAP Measures Explained: Verizon provides context and rationale for its use of non-GAAP financial measures (e.g., 'before special items') to aid investor understanding of operational trends.
- 7Exhibits Available: Key exhibits include historical financial information under SFAS No. 160 and pro forma data for the Alltel acquisition.