Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Verizon Communications Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Federal	3,367)	2,070)	2,411)	1,876)	2,826)
Foreign	240)	219)	201)	248)	159)
State and local	608)	215)	938)	414)	1,081)
Current	4,215)	2,504)	3,550)	2,538)	4,066)
Federal	807)	1,799)	2,529)	3,354)	1,432)
Foreign	(4)	28)	(22)	(97)	1)
State and local	12)	561)	466)	1,007)	120)
Deferred	815)	2,388)	2,973)	4,264)	1,553)
Income tax provision	5,030)	4,892)	6,523)	6,802)	5,619)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Verizon Communications Inc. current decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Verizon Communications Inc. deferred decreased from 2022 to 2023 and from 2023 to 2024.
Income tax provision	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Verizon Communications Inc. income tax provision decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.

Verizon Communications Inc., effective income tax rate (EITR) reconciliation

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
U.S. federal statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
State and local income taxes, net of federal income tax effect	2.50%	3.90%	3.90%	3.80%	3.90%
Foreign tax effects	-0.30%	-0.10%	-0.40%	0.00%	0.00%
Effect of cross-border tax laws	0.00%	0.10%	0.10%	0.00%	0.00%
Tax credits	-0.10%	-0.20%	-0.10%	-0.50%	-0.80%
Changes in valuation allowances	0.10%	0.00%	0.00%	0.00%	0.00%
Goodwill impairment	0.00%	6.80%	0.00%	0.00%	0.00%
Other	-0.50%	-0.80%	-0.50%	0.00%	0.00%
Nontaxable or nondeductible items	-0.50%	6.00%	-0.50%	0.00%	0.00%
Changes in unrecognized tax benefits	0.20%	-0.20%	-0.40%	0.00%	0.00%
Federal refund claims	-0.10%	-1.40%	0.00%	0.00%	0.00%
Other	-0.90%	-0.30%	-0.50%	-1.20%	-0.70%
Other adjustments	-1.00%	-1.70%	-0.50%	-1.20%	-0.70%
Effective income tax rate	21.90%	28.80%	23.10%	23.10%	23.40%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Verizon Communications Inc. effective income tax rate increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Verizon Communications Inc., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Employee benefits	3,676)	3,913)	3,888)	4,388)	5,218)
Tax loss, credit, and other carry forwards	1,719)	1,922)	1,940)	2,224)	2,848)
Lease liabilities	5,138)	5,480)	5,395)	—)	—)
Other, assets	1,735)	1,708)	1,591)	7,314)	6,096)
Gross deferred tax assets	12,268)	13,023)	12,814)	13,926)	14,162)
Valuation allowances	(1,399)	(1,341)	(1,347)	(1,574)	(2,183)
Deferred tax assets	10,869)	11,682)	11,467)	12,352)	11,979)
Spectrum and other intangible amortization	(29,302)	(28,535)	(25,851)	(24,935)	(22,726)
Depreciation	(20,424)	(20,884)	(21,388)	(19,893)	(18,009)
Lease right-of-use assets	(4,822)	(5,200)	(5,007)	—)	—)
Other, liabilities	(2,904)	(2,696)	(2,489)	(8,041)	(6,867)
Deferred tax liabilities	(57,452)	(57,315)	(54,735)	(52,869)	(47,602)
Net deferred tax asset (liability)	(46,583)	(45,633)	(43,268)	(40,517)	(35,623)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Gross deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Verizon Communications Inc. gross deferred tax assets increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Verizon Communications Inc. deferred tax assets increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
Net deferred tax asset (liability)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Verizon Communications Inc. net deferred tax asset (liability) decreased from 2022 to 2023 and from 2023 to 2024.

Verizon Communications Inc., deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
	Deferred tax assets	149)	148)	173)	168)	88)
	Deferred tax liabilities	46,732)	45,781)	43,441)	40,685)	35,711)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Verizon Communications Inc. deferred tax assets decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Verizon Communications Inc. deferred tax liabilities increased from 2022 to 2023 and from 2023 to 2024.

Verizon Communications Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported)	384,711)	380,255)	379,680)	366,596)	316,481)
Less: Noncurrent deferred tax assets, net	149)	148)	173)	168)	88)
Total assets (adjusted)	384,562)	380,107)	379,507)	366,428)	316,393)
Adjustment to Total Liabilities
Total liabilities (as reported)	284,136)	286,456)	287,217)	283,396)	247,209)
Less: Noncurrent deferred tax liabilities, net	46,732)	45,781)	43,441)	40,685)	35,711)
Total liabilities (adjusted)	237,404)	240,675)	243,776)	242,711)	211,498)
Adjustment to Equity Attributable To Verizon
Equity attributable to Verizon (as reported)	99,237)	92,430)	91,144)	81,790)	67,842)
Less: Net deferred tax assets (liabilities)	(46,583)	(45,633)	(43,268)	(40,517)	(35,623)
Equity attributable to Verizon (adjusted)	145,820)	138,063)	134,412)	122,307)	103,465)
Adjustment to Net Income Attributable To Verizon
Net income attributable to Verizon (as reported)	17,506)	11,614)	21,256)	22,065)	17,801)
Add: Deferred income tax expense (benefit)	815)	2,388)	2,973)	4,264)	1,553)
Net income attributable to Verizon (adjusted)	18,321)	14,002)	24,229)	26,329)	19,354)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Verizon Communications Inc., Financial Data: Reported vs. Adjusted

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Verizon Communications Inc., adjusted financial ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net Profit Margin
Reported net profit margin	12.99%	8.67%	15.53%	16.51%	13.88%
Adjusted net profit margin	13.59%	10.45%	17.71%	19.71%	15.09%
Total Asset Turnover
Reported total asset turnover	0.35	0.35	0.36	0.36	0.41
Adjusted total asset turnover	0.35	0.35	0.36	0.36	0.41
Financial Leverage
Reported financial leverage	3.88	4.11	4.17	4.48	4.66
Adjusted financial leverage	2.64	2.75	2.82	3.00	3.06
Return on Equity (ROE)
Reported ROE	17.64%	12.57%	23.32%	26.98%	26.24%
Adjusted ROE	12.56%	10.14%	18.03%	21.53%	18.71%
Return on Assets (ROA)
Reported ROA	4.55%	3.05%	5.60%	6.02%	5.62%
Adjusted ROA	4.76%	3.68%	6.38%	7.19%	6.12%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Verizon Communications Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Verizon Communications Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Verizon Communications Inc. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Verizon Communications Inc. adjusted ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Verizon Communications Inc. adjusted ROA deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Verizon Communications Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Verizon	17,506)	11,614)	21,256)	22,065)	17,801)
Operating revenues	134,788)	133,974)	136,835)	133,613)	128,292)
Profitability Ratio
Net profit margin¹	12.99%	8.67%	15.53%	16.51%	13.88%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Verizon	18,321)	14,002)	24,229)	26,329)	19,354)
Operating revenues	134,788)	133,974)	136,835)	133,613)	128,292)
Profitability Ratio
Adjusted net profit margin²	13.59%	10.45%	17.71%	19.71%	15.09%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Net profit margin = 100 × Net income attributable to Verizon ÷ Operating revenues
= 100 × 17,506 ÷ 134,788 = 12.99%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Verizon ÷ Operating revenues
= 100 × 18,321 ÷ 134,788 = 13.59%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Verizon Communications Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Operating revenues	134,788)	133,974)	136,835)	133,613)	128,292)
Total assets	384,711)	380,255)	379,680)	366,596)	316,481)
Activity Ratio
Total asset turnover¹	0.35	0.35	0.36	0.36	0.41
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Operating revenues	134,788)	133,974)	136,835)	133,613)	128,292)
Adjusted total assets	384,562)	380,107)	379,507)	366,428)	316,393)
Activity Ratio
Adjusted total asset turnover²	0.35	0.35	0.36	0.36	0.41

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Total asset turnover = Operating revenues ÷ Total assets
= 134,788 ÷ 384,711 = 0.35

² Adjusted total asset turnover = Operating revenues ÷ Adjusted total assets
= 134,788 ÷ 384,562 = 0.35

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Verizon Communications Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets	384,711)	380,255)	379,680)	366,596)	316,481)
Equity attributable to Verizon	99,237)	92,430)	91,144)	81,790)	67,842)
Solvency Ratio
Financial leverage¹	3.88	4.11	4.17	4.48	4.66
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	384,562)	380,107)	379,507)	366,428)	316,393)
Adjusted equity attributable to Verizon	145,820)	138,063)	134,412)	122,307)	103,465)
Solvency Ratio
Adjusted financial leverage²	2.64	2.75	2.82	3.00	3.06

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Financial leverage = Total assets ÷ Equity attributable to Verizon
= 384,711 ÷ 99,237 = 3.88

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted equity attributable to Verizon
= 384,562 ÷ 145,820 = 2.64

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Verizon Communications Inc. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Verizon	17,506)	11,614)	21,256)	22,065)	17,801)
Equity attributable to Verizon	99,237)	92,430)	91,144)	81,790)	67,842)
Profitability Ratio
ROE¹	17.64%	12.57%	23.32%	26.98%	26.24%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Verizon	18,321)	14,002)	24,229)	26,329)	19,354)
Adjusted equity attributable to Verizon	145,820)	138,063)	134,412)	122,307)	103,465)
Profitability Ratio
Adjusted ROE²	12.56%	10.14%	18.03%	21.53%	18.71%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ ROE = 100 × Net income attributable to Verizon ÷ Equity attributable to Verizon
= 100 × 17,506 ÷ 99,237 = 17.64%

² Adjusted ROE = 100 × Adjusted net income attributable to Verizon ÷ Adjusted equity attributable to Verizon
= 100 × 18,321 ÷ 145,820 = 12.56%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Verizon Communications Inc. adjusted ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Verizon	17,506)	11,614)	21,256)	22,065)	17,801)
Total assets	384,711)	380,255)	379,680)	366,596)	316,481)
Profitability Ratio
ROA¹	4.55%	3.05%	5.60%	6.02%	5.62%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Verizon	18,321)	14,002)	24,229)	26,329)	19,354)
Adjusted total assets	384,562)	380,107)	379,507)	366,428)	316,393)
Profitability Ratio
Adjusted ROA²	4.76%	3.68%	6.38%	7.19%	6.12%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ ROA = 100 × Net income attributable to Verizon ÷ Total assets
= 100 × 17,506 ÷ 384,711 = 4.55%

² Adjusted ROA = 100 × Adjusted net income attributable to Verizon ÷ Adjusted total assets
= 100 × 18,321 ÷ 384,562 = 4.76%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Verizon Communications Inc. adjusted ROA deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Verizon Communications Inc. (NYSE:VZ)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Verizon Communications Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Verizon Communications Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)