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

The primary purpose of this 8-K filing is to report Verizon's financial results and condition as of January 23, 2017, through an attached press release and financial tables. It also serves to define and explain the non-GAAP financial measures the company uses for investor reporting.

Why does Verizon provide non-GAAP financial measures?

Verizon provides non-GAAP financial measures to offer investors a more understandable and comparable view of its financial performance and trends. These measures exclude certain items like divested businesses, acquisition impacts, and non-operational costs, which management believes can obscure underlying business performance and make it difficult to compare results period-over-period or with competitors.

Are the non-GAAP measures presented in this filing comparable to those of other companies?

Verizon explicitly states that its non-GAAP financial measures may be determined or calculated differently by other companies. Therefore, investors should use caution and consider these differences when comparing Verizon's non-GAAP metrics to those of its competitors.

What specific divested businesses or acquisitions are mentioned in the context of non-GAAP reporting?

The filing specifically mentions the 'Divested Businesses' which refers to the sale of local landline businesses in California, Florida, and Texas (completed April 1, 2016), and the acquisition of AOL (completed June 23, 2015) as items that are excluded or accounted for in certain non-GAAP calculations to provide a more comparable view of ongoing operations.

VZ 8-K: Earnings & Results

Summary

Verizon Communications Inc. filed an 8-K on January 24, 2017, to report its financial results and conditions as of January 23, 2017. The report primarily references an attached press release and financial tables containing both GAAP and non-GAAP financial measures. Investors should pay close attention to the detailed explanations of various non-GAAP metrics, including "Consolidated Operating Revenues Excluding Divested Businesses and AOL," "Operating Revenues from Digital Media Business net of Traffic Acquisition Costs (TAC)," "EBITDA and EBITDA Margin," "Consolidated Adjusted EBITDA," "Net Debt and Net Debt to Consolidated Adjusted EBITDA Ratio," and "Adjusted Earnings per Common Share (Adjusted EPS).". These non-GAAP measures are presented to provide a more comparable view of the company's operational performance and financial trends, by excluding factors such as divested businesses, acquisition impacts (like AOL), traffic acquisition costs, non-operational items like actuarial gains/losses and severance costs, and differences in capital structure, taxes, and depreciation policies. The company emphasizes that these non-GAAP metrics are intended to supplement, not replace, GAAP financial statements and may be calculated differently by other companies.

Key Highlights

1The 8-K filing announces Verizon's financial results and condition as of January 23, 2017, primarily through an attached press release and financial tables.
2The report extensively details and defines several non-GAAP financial measures used by Verizon to provide enhanced insights into its performance.
3Key non-GAAP metrics highlighted include Consolidated Operating Revenues Excluding Divested Businesses and AOL, Operating Revenues from Digital Media Business net of TAC, EBITDA and EBITDA Margin, Consolidated Adjusted EBITDA, Net Debt and Net Debt to Consolidated Adjusted EBITDA Ratio, and Adjusted EPS.
4Verizon explains that these non-GAAP measures are used to offer a more comparable view of revenue growth, operational profitability, business trends, and debt servicing ability.
5The company clearly states that these non-GAAP measures are supplemental to GAAP financials and may not be directly comparable to those of other companies.
6Specific exclusions in non-GAAP calculations include divested businesses (local landline businesses), AOL acquisition impacts, traffic acquisition costs, actuarial gains/losses, severance costs, and gains on sale of assets or spectrum licenses.

VERIZON COMMUNICATIONS INC 8-K Report, Financial Results (Jan 24, 2017)

Summary

Key Highlights

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