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

The primary purpose of this 8-K filing is to report Verizon Communications Inc.'s financial results and condition for the period ending on or around January 20, 2014, as detailed in the attached press release and financial tables.

What are non-GAAP financial measures, and why does Verizon use them?

Non-GAAP financial measures are financial metrics that are not calculated in accordance with Generally Accepted Accounting Principles (GAAP). Verizon uses these measures, such as Consolidated EBITDA and Adjusted EPS, to provide investors with additional insights into operational profitability, underlying business trends, and leverage, by excluding certain non-operational or non-recurring items. Management believes these measures enhance the understanding of the company's performance.

Are the non-GAAP measures presented in this filing considered superior to GAAP measures?

No, Verizon explicitly states that its non-GAAP financial information is intended to enhance the understanding of its GAAP financial information and should be considered in addition to, but not instead of, the financial statements prepared in accordance with GAAP. They are supplemental and may be calculated differently by other companies.

What specific non-GAAP financial measures does Verizon define in this filing?

The filing defines and explains several non-GAAP measures, including Consolidated EBITDA, Consolidated EBITDA margin, Verizon Wireless Segment EBITDA (Wireless EBITDA) and its service margin, Wireline Segment EBITDA (Wireline EBITDA) and its margin (with an adjustment for Superstorm Sandy), Consolidated Adjusted Operating Income, Consolidated Adjusted EBITDA and its margin, Net Debt, the Net Debt to Adjusted EBITDA Ratio, Adjusted Earnings Per Common Share (Adjusted EPS), and Free Cash Flow.

VZ 8-K: Earnings & Results

Summary

Verizon Communications Inc. (VZ) filed an 8-K on January 21, 2014, to report its financial results and condition. The filing primarily includes a press release and financial tables from January 21, 2014, detailing operational performance and financial standing. A significant portion of the filing is dedicated to defining and explaining various non-GAAP financial measures that Verizon uses to provide additional context for its performance. These non-GAAP measures, such as Consolidated EBITDA, Adjusted Operating Income, and Adjusted EPS, are presented to enhance investor understanding of operational profitability, underlying business trends, and leverage, excluding certain non-operational or non-recurring items. Investors should note that while these measures offer insights beyond traditional GAAP reporting, they are supplemental and may be calculated differently by other companies. The core of the filing is the inclusion of these detailed financial tables and accompanying explanations, which are critical for a comprehensive analysis of Verizon's reported performance.

Key Highlights

1Verizon Communications Inc. filed an 8-K on January 21, 2014, to report financial results and condition.
2The filing includes a press release and financial tables dated January 21, 2014.
3The report extensively defines and explains numerous non-GAAP financial measures used by Verizon.
4Key non-GAAP measures discussed include Consolidated EBITDA, Adjusted Operating Income, Adjusted EPS, Net Debt, and Free Cash Flow.
5These non-GAAP measures are presented to provide investors with enhanced understanding of operational profitability and business trends.
6Verizon emphasizes that these non-GAAP measures are supplementary to GAAP financial statements.
7The filing details the calculation methodologies for various EBITDA and Adjusted EBITDA metrics for both consolidated and segment levels (Wireless and Wireline).

VERIZON COMMUNICATIONS INC 8-K Report, Financial Results (Jan 21, 2014)

Summary

Key Highlights

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