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

The main purpose of this 8-K filing is to furnish investors with a press release and financial tables dated October 23, 2018, which contain Verizon's financial performance information and management's discussion thereof, particularly focusing on non-GAAP measures.

Why does Verizon emphasize non-GAAP financial measures?

Verizon emphasizes non-GAAP financial measures because management believes they provide relevant and useful information for investors and other users in assessing both consolidated and segment performance. These measures are intended to enhance the understanding of GAAP financial information by excluding certain items that management believes do not reflect the ongoing operational performance, such as depreciation, amortization, interest, taxes, special items, and the impact of new accounting standards like ASC 606.

What are 'special items' mentioned in the non-GAAP definitions?

'Special items' refer to specific charges or gains that management believes are not indicative of the company's core operating performance. Examples provided in the filing include severance charges, net gains on sale of divested businesses, gains on spectrum license transactions, product realignment charges (like the go90 platform), and acquisition and integration related charges.

How does Verizon define 'Net Debt to Consolidated Adjusted EBITDA Ratio' and why is it important?

The 'Net Debt to Consolidated Adjusted EBITDA Ratio' is a non-GAAP measure calculated by dividing the company's Net Debt (debt less cash and cash equivalents) by its Consolidated Adjusted EBITDA Excluding Operating Results from Divested Businesses, typically calculated over the last twelve months. Verizon uses this ratio to evaluate its ability to service its debt and believes it is useful to rating agencies, lenders, and investors in assessing the company's creditworthiness.

VZ 8-K: Earnings & Results

Summary

Verizon Communications Inc. (VZ) filed an 8-K on October 23, 2018, primarily to furnish a press release and financial tables dated October 23, 2018. This filing does not contain new operational or financial results directly within the 8-K itself, but rather points to an accompanying exhibit. The core purpose of this disclosure is to provide investors with management's perspective on financial performance, which includes a significant emphasis on non-GAAP financial measures. Verizon utilizes various non-GAAP metrics such as EBITDA, Adjusted EBITDA, and related margins to offer a more granular view of their operational profitability and business trends, excluding items like interest, taxes, depreciation, amortization, and certain "special items" (e.g., severance, integration costs, divestiture impacts) and the impact of adopting ASC 606 revenue recognition standards. Investors are encouraged to review these non-GAAP figures alongside the company's GAAP financial statements, as management believes they provide a more comparable assessment of performance over time and against competitors.

Key Highlights

1The 8-K filing on October 23, 2018, is primarily to provide an attached press release and financial tables, not to report new material events directly.
2Verizon extensively uses and defines several non-GAAP financial measures, including EBITDA, Adjusted EBITDA, and related margins.
3These non-GAAP measures are presented to provide investors with a deeper understanding of operational profitability and underlying business trends.
4Key exclusions for non-GAAP measures include interest, taxes, depreciation, amortization, special items (like severance, integration costs, divestiture gains/losses), and the impact of ASC 606 revenue recognition.
5The company highlights the utility of these non-GAAP measures for assessing performance against competitors and for trend analysis.
6Specific non-GAAP metrics like 'Consolidated Adjusted EBITDA Excluding Operating Results from Divested Businesses' and 'Net Debt to Consolidated Adjusted EBITDA Ratio' are provided to evaluate creditworthiness and debt servicing ability.

VERIZON COMMUNICATIONS INC 8-K Report, Financial Results (Oct 23, 2018)

Summary

Key Highlights

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