Why is Verizon filing an 8-K and updating its 2015 10-K?

Verizon is filing this 8-K to update its financial reporting to reflect the retrospective application of a new accounting standard (ASU 2015-03) for debt issuance costs and to reclassify the financial results of divested businesses. This ensures that investors have the most accurate and up-to-date financial information.

What specific businesses were divested and reclassified?

The divested businesses include Verizon's local exchange business and related landline activities in California, Florida, and Texas, which were sold on April 1, 2016. Additionally, the company's vehicle original equipment manufacturer (OEM) and Networkfleet businesses were also reclassified. These are now reported under 'Corporate and other' instead of the Wireline segment.

What is ASU 2015-03 and how does it affect Verizon's financials?

ASU 2015-03 simplifies the presentation of debt issuance costs by requiring them to be presented in the balance sheet as a direct reduction of the carrying amount of the associated debt. Previously, these costs might have been presented as a deferred asset. This change has been applied retrospectively to all presented periods.

Where can I find the revised financial information?

The revised financial statements, Management's Discussion and Analysis of Financial Condition and Results of Operations, and Selected Financial Data for the years ended December 31, 2015, 2014, and 2013 are included as Exhibit 99 in this 8-K filing. Investors should refer to this filing for the updated information, which supersedes the information in the original 2015 Form 10-K.

VZ 8-K SEC Disclosure — Jul 29, 2016

Summary

Verizon Communications Inc. (VZ) filed a Form 8-K on July 29, 2016, to update its previously filed 2015 Form 10-K. The primary purpose of this filing is to reflect the reclassification of certain divested businesses and the retrospective adoption of a new accounting standard related to debt issuance costs. Specifically, the company is reclassifying the results of its local exchange business and related landline activities in California, Florida, and Texas, sold on April 1, 2016, along with its vehicle OEM and Networkfleet businesses. These were moved from the Wireline segment to 'Corporate and other.' Additionally, Verizon has adopted Accounting Standards Update (ASU) No. 2015-03, requiring a retrospective change in how debt issuance costs are presented, simplifying their classification as a direct reduction of the carrying amount of debt. These changes mean that the financial statements and related disclosures presented in this 8-K filing supersede those in the original 2015 10-K. Investors should refer to this filing and subsequent 10-Q reports for the most current and accurate financial picture of Verizon.

Key Highlights

1Verizon is providing updated financial information superseding its 2015 10-K due to significant reclassifications and accounting changes.
2The company completed the sale of its local exchange business and related landline activities in California, Florida, and Texas on April 1, 2016.
3Results from divested businesses (California, Florida, Texas landline, vehicle OEM, and Networkfleet) have been reclassified from the Wireline segment to 'Corporate and other'.
4Verizon adopted Accounting Standards Update (ASU) No. 2015-03 retrospectively, simplifying the presentation of debt issuance costs.
5Debt issuance costs are now presented as a direct reduction of the carrying amount of the related debt, rather than as a deferred charge.
6This filing includes revised financial statements, Management's Discussion and Analysis (MD&A), and Selected Financial Data for the years ended December 31, 2015, 2014, and 2013.

VERIZON COMMUNICATIONS INC 8-K Report, Corporate Update (Jul 29, 2016)

Summary

Key Highlights

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