Summary
Verizon Communications Inc. filed an 8-K on April 11, 2017, to announce a reorganization within its Wireline segment and to provide updated historical financial information. This reorganization creates four new customer groups within the Wireline segment: Consumer Markets, Enterprise Solutions, Partner Solutions, and Business Markets. The company is providing recasted unaudited historical operating revenue results for these new groups for the eight quarters ending December 31, 2016, to aid investor understanding. This filing is important for investors as it clarifies the reporting structure for the Wireline segment going forward. While total Wireline segment operating revenues remain unchanged, the breakdown by these new customer groups offers a more granular view of performance. Investors should note that the information provided is furnished and not deemed filed, meaning it won't be automatically incorporated into other SEC filings. The disclosure also serves as a reminder that the results exclude the divested local exchange business sold to Frontier in April 2016.
Key Highlights
- 1Verizon reorganized its Wireline segment into four customer groups: Consumer Markets, Enterprise Solutions, Partner Solutions, and Business Markets.
- 2The company is providing updated unaudited historical financial information for the Wireline segment, recasting operating revenue results for the eight quarters ended December 31, 2016, based on the new structure.
- 3Total Wireline segment operating revenues remain unchanged by this reorganization.
- 4The Business Markets group is a new segment, incorporating U.S.-based small and medium business customers, as well as state/local government and educational institutions.
- 5The disclosed financial information is furnished under Regulation FD and not deemed 'filed' with the SEC.
- 6Historical results continue to exclude the divested local exchange business in California, Florida, and Texas sold to Frontier in April 2016.