What is the impact of strong iPhone and 4G LTE sales on Verizon's profitability?

While strong sales of iPhones and 4G LTE devices indicate robust customer demand, Verizon expects these sales to negatively impact its Wireless Service EBITDA margin by 500 to 600 basis points in the fourth quarter of 2011. This is likely due to the costs associated with device subsidies and the sales mix of these popular, higher-cost devices.

What are Verizon's expected pension plan contributions for 2012?

Verizon anticipates making a minimum required qualified pension plan contribution in the range of $1.2 billion to $1.3 billion for the fiscal year 2012.

What is the expected financial impact of pension and post-employment benefits for 2011?

Verizon expects to record a mark-to-market, non-cash, pre-tax charge for pension and other post-employment benefits in the range of $5 billion to $6 billion for the full year 2011. This is a significant accounting charge and not directly related to cash contributions in the current period.

Is the information provided in this 8-K considered 'filed' or 'furnished'?

The information provided under Item 7.01 (Regulation FD Disclosure) is 'furnished' and not 'filed' with the SEC. This means it is not automatically incorporated by reference into Verizon's registration statements or other filings unless explicitly stated.

VZ 8-K: Regulation FD — Jan 6, 2012

Summary

This 8-K filing from Verizon Communications Inc. (VZ), dated January 6, 2012, discloses key financial and operational updates presented on January 4, 2012. The report highlights Verizon's strong fourth-quarter 2011 performance in wireless device sales, particularly its significant iPhone and 4G LTE device activations. These sales, however, are projected to have a notable impact on the Wireless Service EBITDA margin for the quarter, reflecting the costs associated with device subsidies and sales mix. Furthermore, the filing provides guidance on Verizon's anticipated pension plan obligations for 2012, including the minimum required qualified pension plan contribution. It also discloses a substantial expected non-cash, pre-tax charge related to pension and other post-employment benefits for the full year 2011. Investors should note these items as they represent significant factors influencing Verizon's financial statements and future cash flow.

Key Highlights

1Verizon sold over 4.3 million iPhones in Q4 2011.
2Over 2.3 million 4G LTE devices were sold by Verizon in Q4 2011.
3The company expects a negative impact of 500-600 basis points on Wireless Service EBITDA margin in Q4 2011 due to device sales.
4Verizon anticipates a minimum required qualified pension plan contribution between $1.2 billion and $1.3 billion for 2012.
5A significant non-cash, pre-tax charge of $5 billion to $6 billion is expected for pension and other post-employment benefits in 2011.

VERIZON COMMUNICATIONS INC 8-K Report, Regulation FD Disclosure (Jan 6, 2012)

Summary

Key Highlights

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