Verizon Reports Sustained Revenue Growth and Continued Strong Cash Flows for 4Q and Full-Year 2008

Investor Quarterly
Q4 2008

VZ Fourth Quarter 2008
January 27, 2009

Verizon Communications Investor Quarterly 4Q 2008

Earnings Release 3–9

Financial Statements
Condensed Consolidated Statements of Income 10 – 11
Reconciliations 12 – 13
Selected Financial and Operating Statistics 14
Condensed Consolidated Balance Sheets 15
Condensed Consolidated Statements of Cash Flows 16
Wireline Results 17
Verizon Wireless Results 18
News Items 19

verizon.com/investor 20

Verizon Reports Sustained Revenue
Growth and Continued Strong Cash
Flows for 4Q and Full-Year 2008
4Q Results Fueled by Record Growth in FiOS Internet and TV

Customers, Continued Strong Sales of Verizon Wireless and Strategic

Business Services

2


Q4 4th Quarter 2008 Highlights

Consolidated Results
> 43 cents in diluted EPS and 61 cents in adjusted EPS (non-GAAP), compared with 4Q 2007 diluted
EPS of 37 cents reported and 62 cents adjusted.
> $24.6 billion in 4Q revenues, up 3.4 percent, or adjusted growth (non-GAAP) of 4.6 percent.

Wireless Wireline Year-End 2008 Highlights
> 1.4 million organic (non- > 303,000 net new FiOS TV > $2.26 in 2008 diluted EPS from
acquisition-related) net customers and 282,000 net continuing operations and
customer additions, almost new FiOS Internet customers, $2.54 in adjusted EPS, compared
all retail; 1.2 million total net the highest ever for the with 2007 earnings of $1.90
customer additions, including company. per share and $2.36 per share,
a net customer loss under respectively.
> 14.3 percent increase in
a previously announced > $97.4 billion in 2008 revenues,
consumer ARPU in legacy
exchange agreement related telecom markets. up 4.2 percent, or adjusted
to the 3Q 2008 acquisition of growth of 5.1 percent.
> 8.4 percent increase in
Rural Cellular.
> $26.6 billion in cash flows from
revenues from strategic
> 72.1 million total customers; business services. operating activities; $17.2 billion
70.0 million retail customers, in capital expenditures.
up 9.9 percent, not including
customers added with the Jan.
9, 2009, acquisition of Alltel.
> 12.3 percent increase in total
revenues; data revenues up
41.4 percent; ARPU growth
for 11th consecutive quarter;
strong 47.2 percent EBITDA
margin on service revenues
(non-GAAP).
Note: Comparisons are year over year unless otherwise noted. See the accompanying schedules and www.verizon.com/investor for reconciliations to generally accepted
accounting principles (GAAP) for non-GAAP financial measures cited in this news release. Discontinued operations relate to the disposition of Telecomunicaciones de Puerto Rico,
Inc. that was completed on March 30, 2007. Reclassifications of prior-period amounts have been made, where appropriate, to reflect comparable operating results for the spinoff
of the Wireline segment’s non-strategic local exchange and related business assets in Maine, New Hampshire and Vermont in the first quarter of 2008.

3


NEW YoRk — Verizon Communications Inc. (NYSE:VZ) today reported that
it continued to grow sales of broadband, wireless and strategic business
services in the fourth quarter 2008. Strong customer and revenue
growth contributed to 43 cents in diluted earnings per share (EPS) in the
quarter, compared with 37 cents per share in the fourth quarter 2007.
Consolidated Revenue
On an adjusted basis (non-GAAP), fourth-quarter 2008 EPS was 61 cents, compared Growth
with 62 cents in the fourth quarter 2007.
5.7%
5.6%
On an annual basis, Verizon reported $2.26 in 2008 EPS from continuing opera- 5.4%
4.9% 4.6%
tions, compared with $1.90 in 2007. On an adjusted annual basis, 2008 EPS from
continuing operations was $2.54, a 7.6 percent increase, compared with 2007 EPS 19.0%
18.8% 18.6% Operating
18.2% 18.1%
of $2.36. Income
Margin

‘Able to Compete Effectively in This Economic Environment’ 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08
“Verizon has shown that it is able to compete effectively in this economic environ-
ment,” said Chairman and CEO Ivan Seidenberg. “We grew profits and maintained
strong cash flows throughout 2008. In the fourth quarter, we continued to pro-
Cash Flow from Continuing
duce top-line growth, fueled by strong sales volumes for broadband, wireless and
Operations
strategic business services. $ in billions
“The Verizon story in 2008 was one of customer growth and product innovation, $8.3
$7.5
7.0
$6.7
based on the strategic technology and broadband infrastructure investments we
$5.4
have made year after year,” Seidenberg said. “We have built a solid foundation to
$4.7 $4.7 CapEx
$4.2 $4.2 $4.2
continue to create value for our customers and shareholders in 2009 and beyond.” ($ in billions)

Consolidated Revenue Growth
4Q 07 1Q 08 2Q 08 3Q 08 4Q 08
Verizon’s total operating revenues grew 3.4 percent in the fourth quarter 2008,
increasing to $24.6 billion from $23.8 billion in the fourth quarter 2007. After
adjusting for the spinoff of non-strategic local exchange and related Wireline
business assets early in 2008 (non-GAAP), this represents an increase of 4.6 per- Earnings Per Share
cent. Total operating expenses in the fourth quarter 2008 increased 1.9 percent
to $20.8 billion, or 4.1 percent on an adjusted basis, compared with the fourth
$0.67 $0.66
$0.62 $0.61 $0.61
quarter 2007.
For 2008, annual operating revenues were $97.4 billion, an increase of 4.2 per-
cent from 2007 on a reported basis and 5.1 percent on an adjusted basis. Operating
expenses totaled $80.5 billion in 2008, an increase of 3.3 percent from 2007 on a
reported basis and 4.2 percent on an adjusted basis.
4Q 07 1Q 08 2Q 08 3Q 08 4Q 08

Continued Strong Cash Flows
Cash flows from operations totaled $26.6 billion in 2008, compared with $25.7 bil-
lion in 2007. Dividends and share repurchases totaled $6.4 billion in 2008. Capital
expenditures totaled $17.2 billion in 2008, compared with $17.5 billion in 2007.
For 2009, Verizon is targeting capital spending, excluding amounts related to the
acquisition of Alltel Corporation, to be less than the 2008 total.
At year-end 2008, total debt was $52.0 billion, compared with $44.8 billion at
the end of the third quarter 2008. Verizon ended 2008 with $9.8 billion in cash
and cash equivalents, most of which was held for use in completing the acquisi-
tion of Alltel in January 2009.
4


Details of 4Q Adjustments
Adjusted earnings in the fourth quarter 2008 excluded the following after-tax
Wireless Total Revenue
amounts: $424 million, or 15 cents per share, for severance, pension and bene-
$ in billions
fit charges related to pension settlements from previously announced workforce
reductions and severance charges associated with workforce reductions that $12.7 $12.8
$11.4 $11.7 $12.1
began in the fourth quarter and will continue in 2009; $35 million, or 1 cent per
share, for merger integration costs; and $31 million, or 1 cent per share, for an
13.3% 13.2% 12.5% 12.3% Y/Y %
11.8%
other-than-temporary decline in the fair value of investments in certain market- Growth

able securities.
Adjusted earnings in the fourth quarter 2007 excluded the following after-tax 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08
amounts: 16 cents per share for severance and other related expenses; 5 cents per
share for taxes and expenses associated with an increase in the distributable earn-
ings from the company’s Vodafone Omnitel N.V. investment; 2 cents per share for
Wireless Retail Post-Paid
merger integration costs; and 1 cent per share for costs related to the spinoff of
Customers
non-strategic local exchange and related Wireline business assets. millions
67.0
65.8
63.8
Wireless Delivers Another Strong Performance 62.3
61.0
In the fourth quarter 2008, Verizon Wireless continued to deliver service ARPU
growth, strong customer loyalty, and sustained high margins:

> Organic growth totaled 1.4 million net customer additions, essentially all of
4Q 07 1Q 08 2Q 08 3Q 08 4Q 08
which were retail.
> Retail net customer additions totaled 1.2 million. This included a net loss of
122,000 retail customers, resulting primarily from the closing of a previously
announced exchange agreement with another carrier. Verizon Wireless had
Wireless Total Churn
entered into this agreement to comply with conditions imposed in connec-
tion with regulatory approval of the company’s acquisition of Rural Cellular
Corporation, which closed in August 2008. 1.33% 1.35%
1.20% 1.19% 1.12%
> Verizon Wireless added 5.8 million organic net new retail customers in
1.05% Retail
2008 — expected to be the most of any U.S. wireless carrier. 0.94% 0.93% Post-Paid
1.03%
0.83%
Churn
> At the end of the quarter, Verizon Wireless had 72.1 million total customers.
> Verizon Wireless continued to have a high-quality customer base, with 70.0 mil-
4Q 07 1Q 08 2Q 08 3Q 08 4Q 08
lion retail customers (not including Alltel) — the most of any U.S. wireless brand.
Following the recently completed Alltel acquisition, Verizon Wireless now serves
more than 80 million customers, excluding markets to be divested.
> Verizon Wireless continued to have low churn — 1.35 percent churn among all
customers, and 1.05 percent among the company’s retail post-paid customers.
> Verizon Wireless continued its double-digit revenue growth, with total quar-
terly revenues of $12.8 billion, up 12.3 percent year over year. Full-year revenues
were $49.3 billion, up 12.4 percent. Service revenues in the fourth quarter were
$11.1 billion, up 12.0 percent year over year, and $42.6 billion for the full year, up
12.2 percent.

5


> This revenue growth was driven by accretion in ARPU (average monthly revenue
per customer), which increased year over year for the 11th consecutive quarter.
Consumer Broadband/Video Revenue
Total service ARPU of $51.72 was up 1.4 percent year over year, reflecting strong $ in billions
growth in total data ARPU, which was up 27.9 percent over the same period.
$1.2
> Wireless operating income margin reached 29.7 percent, up 350 basis points on $1.1
$1.0
$0.9
$0.8
a year- over-year basis. EBITDA (earnings before interest, taxes, depreciation and
% of
amortization) margin on service revenues reached 47.2 percent. Consumer
31% Revenue*
29%
28%
25%
23%
Record FioS Customer Growth at Wireline
Verizon Wireline reported record growth in the number of new customers of FiOS 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08
TV and FiOS Internet, and it continued to increase sales of enterprise strategic ser-
*Legacy Verizon
vices year over year. In the fourth quarter (with prior-period comparisons adjusted
to reflect the impact of the spinoff of non-strategic Wireline assets):
FiOS Customers
> Verizon added 303,000 net new FiOS TV customers, compared with 226,000 in millions
the fourth quarter 2007. The company had 1.9 million FiOS TV customers at year-
2.5
end 2008, adding nearly 1 million FiOS TV customers since year-end 2007.
1.9
> FiOS TV sales penetration (sales as a percentage of potential customers) increased
1.5
to 20.8 percent, compared with 16.0 percent in the fourth quarter 2007. FiOS TV
0.9
service was available for sale to 9.2 million premises by year-end 2008. This repre-
sented a 57 percent increase in the availability of FiOS TV — and, by extension, of
2007 2008 2007 2008
“triple play” bundles of FiOS TV, Internet and voice services — since year-end 2007. TV Internet
> Verizon added 282,000 net new FiOS Internet customers, compared with 244,000
in the fourth quarter 2007. The company had nearly 2.5 million FiOS Internet cus-
tomers at year-end 2008, adding nearly 1 million FiOS Internet customers since
year-end 2007.
> FiOS Internet sales penetration increased to 24.9 percent, compared with 20.7
percent in the fourth quarter 2007. FiOS Internet was available for sale to nearly
10 million premises by year-end 2008.
> Broadband and video revenues from consumer customers totaled nearly $1.2
billion in the fourth quarter 2008 — representing year-over-year quarterly growth
of 42.0 percent.
> Growing revenue from broadband and video services drove consumer ARPU in
legacy Verizon wireline markets (which excludes consumer markets served by the
former MCI) to $68.46 for the fourth quarter 2008, a 14.3 percent increase com-
pared with the fourth quarter 2007.
> Sales of strategic business services — such as IP (Internet protocol), managed ser-
vices, Ethernet and optical ring services — generated $1.5 billion in revenue in the
quarter, up 8.4 percent from the fourth quarter 2007.

6


Additional Highlights

Wireless
Wireless
> The Alltel acquisition expanded the > More than 65 percent of the
Total Service Revenue
Verizon Wireless network to cover company’s retail customers — 45.5 $ in billions
nearly the entire U.S. population million — had 3G broadband-capable
$11.1
$10.1 $10.5 $10.9
and made Verizon Wireless the devices by year-end. The company $9.9
nation’s largest carrier in terms of continued to extend the reach of the
$52.18
total customers — in addition to its nation's largest and most reliable 3G $51.72 Total
$51.53
Service
$51.00 $50.91
traditional position of being the (third generation) network, which now ARPU

leading carrier in terms of retail covers more than 274 million people
4Q 07 1Q 08 2Q 08 3Q 08 4Q 08
customers, revenues and margins. after the Alltel acquisition.
> At the end of 2008, retail customers > Customers across the country lined
(postpaid and prepaid) represented 97 up to purchase the new BlackBerry
percent of the company’s base. Storm, available exclusively in the U.S.
Total Data Revenue
> Verizon Wireless continued to from Verizon Wireless and launched $ in billions
lead the industry in cost efficiency. in November. Designed for both
$3.0
$2.8
Monthly cash expense per customer consumers and business customers, $2.6
$2.3
$2.1
(non-GAAP) decreased in the fourth the BlackBerry Storm offers customers $13.86 Total
$12.58 $13.30 Data
$11.72
$10.84
quarter and for the full year to $27.29 the reliability of the Verizon Wireless ARPU

and $28.12 in 2008 from $28.75 and 3G network and the full power
$28.24 in 2007, respectively. of a revolutionary touch-screen,
4Q 07 1Q 08 2Q 08 3Q 08 4Q 08
> Data revenues of $10.7 billion for the multimedia smartphone with global
full year were up 44 percent over 2007. connectivity.
> Verizon Wireless, with the most
In the fourth quarter, data revenues
were 26.8 percent of all service global data coverage of any U.S. EBITDA
revenues, up from 21.3 percent in the wireless carrier, received top honors $ in billions
fourth quarter 2007. Verizon Wireless during the quarter for its global $5.2
$4.8 $4.8
$4.6
had 55.1 million retail data customers services and international solutions $4.3
at year-end — 79 percent of the retail that help travelers stay connected EBITDA
47.2% Margin
45.6%
customer base and a 16.8 percent around the globe. Readers of Global 44.9% 44.2%
43.6%
increase over year-end 2007. Traveler magazine selected Verizon
Wireless as the world’s best wireless
4Q 07 1Q 08 2Q 08 3Q 08 4Q 08
service provider for the second

7


Wireline
Wireline
> Wireline total operating revenues
consecutive year. Business Traveler Total Revenue
$ in billions
were $11.9 billion. Verizon Telecom,
magazine readers chose Verizon
which serves domestic consumer and
Wireless as the world’s best wireless $12.2 $12.0 $12.1 $12.2 $11.9
small-business customers, and Verizon
data service provider in the 2008 “Best
Business, which serves large-business
in Business Travel” awards.
> During the quarter, Verizon Wireless and government customers worldwide, -1.2%
-1.4% -1.7%
-1.8% Y/Y %
each had 2.3 percent year-over-year
customers sent or received more than -2.7% Growth

quarterly revenue declines. At Verizon
90 billion text messages — more than
4Q 07 1Q 08 2Q 08 3Q 08 4Q 08
Telecom, this was the smallest decrease
double the number of text messages
in 12 quarters. Wireline total operat-
sent in the same period a year ago.
ing expenses were $11.2 billion, a 1.3
Customers also sent 1.8 billion picture/
Consumer Revenue*
percent increase compared with the
video messages and completed 50
$ in billions
fourth quarter 2007.
million music and video downloads
> By the end of 2008, Verizon’s FiOS
during the quarter. $3.8 $3.8
$3.7 $3.7 $3.7
fiber-to-the-premises network passed $68.46 Consumer
$66.67 Retail
$63.84
12.7 million premises throughout ARPU
$61.53
$59.88
the company’s wireline service ter-
ritory — greater than the company’s
target of 12 million by year-end 2008. 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08
Fiber-to-the-home now passes approxi-
*Legacy Verizon
mately 40 percent of the total house-
holds in Verizon’s landline footprint.
> Total broadband connections were 8.7
million, a net increase of 214,000 over
the third quarter 2008. This includes a
decrease of 68,000 DSL-based Verizon
High Speed Internet connections,
which was more than offset by the
increase in FiOS Internet customers.
The 8.7 million is an increase of 8.2 per-
cent year over year.

8


> Broadband and TV products now countries. Additional network enhance- Global Enterprise Revenue*
$ in billions
account for more than 31 percent of ments included installation of eight
consumer ARPU in legacy markets, Converged Packet Access nodes and fur-
4.0 $4.0 $4.0
$3.9 $3.9
compared with 22.7 percent in the ther mesh network expansion in Asia-
fourth quarter 2007. The ARPU among Pacific and North America, including
FiOS customers continues to grow and the deployment of nodes in Singapore,
is more than $133 per month. Toronto, Montreal and several U.S. cit-
> Wireline data revenues — which rep- ies. In an additional seven U.S. markets,
4Q 07 1Q 08 2Q 08 3Q 08 4Q 08
resented 43.6 percent of total Wireline the company deployed multiplexers * Retail domestic and retail international
revenues — were $5.2 billion in the that enable remote provisioning and
fourth quarter 2008, an increase of trouble isolation while providing
Strategic Services Revenue
10.9 percent compared with the fourth reduced latency.
$ in billions
> New agreements with multinational
quarter 2007. This includes revenues
from consumer broadband services, customers included Nikon Corporation, $1.6 $1.5
$1.5
$1.4 $1.4
wholesale data transport and Verizon NSG Group, Ingenico and Johnson % of Total
30% VZB
29%
28%
27%
Business data services. Controls. Verizon Business also signed 27% Revenue

> Verizon Business continued to new contracts with several U.S. gov-
announce significant new capabilities: ernment agencies, including the U.S.
enhancements to its voice-over-Internet- Department of Veterans Affairs. 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08
protocol portfolio; a new managed
telepresence (video-meeting) solution;
a service that enables managed hosting
customers to easily and securely change NOTE: This news release contains statements about expected future events and financial results that
are forward-looking and subject to risks and uncertainties. For those statements, we claim the
online content; a solution for more
protection of the safe harbor for forward-looking statements contained in the Private Securities
efficiently providing essential applica-
Litigation Reform Act of 1995. The following important factors could affect future results and could
tions to employees worldwide; and a
cause those results to differ materially from those expressed in the forward-looking statements: the
managed unified communications and effects of adverse conditions in the U.S. and international economies; the effects of competition in
collaboration (UC&C) solution aimed at our markets; materially adverse changes in labor matters, including workforce levels and labor
negotiations, and any resulting financial and/or operational impact, in the markets served by us or
helping employees of global enterprises
by companies in which we have substantial investments; the effect of material changes in available
work more closely with one another.
technology; any disruption of our suppliers’ provisioning of critical products or services; significant
> Verizon Business also continued to
increases in benefit plan costs or lower investment returns on plan assets; the impact of natural or
expand its global network reach and man-made disasters or existing or future litigation and any resulting financial impact not covered by
capabilities, announcing the installa- insurance; technology substitution; an adverse change in the ratings afforded our debt securities by
nationally accredited ratings organizations or adverse conditions in the credit markets impacting
tion of 26 Private IP (PIP) edge switches,
the cost, including interest rates, and/or availability of financing; any changes in the regulatory
including new nodes in Morocco and
environments in which we operate, including any loss of or inability to renew wireless licenses, and
Pakistan. The company now has edge
the final results of federal and state regulatory proceedings and judicial review of those results; the
switches deployed in 59 countries and timing, scope and financial impact of our deployment of fiber-to-the-premises broadband
supports PIP services in more than 120 technology; changes in our accounting assumptions that regulatory agencies, including the SEC,
may require or that result from changes in the accounting rules or their application, which could
result in an impact on earnings; our ability to successfully integrate Alltel Corporation into Verizon
Wireless’s business and achieve anticipated benefits of the acquisition; and the inability to
implement our business strategies.

9


condensed consolidated statements of income

(dollars in millions, except per share amounts)
3 Mos. Ended 12 Mos. Ended
12/31/08 12/31/08
Unaudited 12/31/07 % Change 12/31/07 % Change

Operating Revenues $ 24,645 $ 97,354
$ 23,840 3.4 $ 93,469 4.2

Operating Expenses
9,976 39,007
Cost of services and sales 9,796 1.8 37,547 3.9
7,090 26,898
Selling, general & administrative expense 6,955 1.9 25,967 3.6
3,747 14,565
Depreciation and amortization expense 3,666 2.2 14,377 1.3
Total Operating Expenses 20,813 80,470
20,417 1.9 77,891 3.3

Operating Income 3,832 16,884
3,423 11.9 15,578 8.4
109 567
Equity in earnings of unconsolidated businesses 93 17.2 585 (3.1)
62 282
Other income and (expense), net 87 (28.7) 211 33.6
(517) (1,819)
Interest expense (439) 17.8 (1,829) (0.5)
(1,696) (6,155)
Minority interest (1,333) 27.2 (5,053) 21.8
Income Before Provision for Income Taxes, Discontinued
Operations and Extraordinary Item 1,790 9,759
1,831 (2.2) 9,492 2.8
(555) (3,331)
Provision for income taxes (759) (26.9) (3,982) (16.3)

Income Before Discontinued Operations
and Extraordinary Item 1,235 6,428
1,072 15.2 5,510 16.7
Income from discontinued operations, net of tax(1) — —
— * 142 (100.0)
— —
Extraordinary item, net of tax — * (131) (100.0)
Net Income $ 1,235 $ 6,428
$ 1,072 15.2 $ 5,521 16.4

Basic Earnings per Common Share(2)
Income before discontinued operations
$ .43 $ 2.26
and extraordinary item $ .37 16.2 $ 1.90 18.9
— —
Income from discontinued operations, net of tax — * .05 (100.0)
— —
Extraordinary item, net of tax — * (.05) (100.0)
$ .43 $ 2.26
Net income $ .37 16.2 $ 1.91 18.3

2,841 2,849
Weighted average number of common shares (in millions) 2,886 2,898

Diluted Earnings per Common Share(2)(3)
Income before discontinued operations
$ .43 $ 2.26
and extraordinary item $ .37 16.2 $ 1.90 18.9
— —
— —
Extraordinary item, net of tax — * (.05) (100.0)
$ .43 $ 2.26
Net income $ .37 16.2 $ 1.90 18.9

Weighted average number of common shares —
2,841 2,850
assuming dilution (in millions) 2,891 2,902

Footnotes:
(1) Discontinued operations includes a gain on the sale of Telecomunicaciones de Puerto Rico, Inc. (TELPRI) of $70 million, net of tax. The disposition of this non-strategic business was
completed on March 30, 2007.
(2) EPS totals may not add due to rounding.
(3) Diluted Earnings per Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represent the only potential dilution.
* Not meaningful

10


condensed consolidated statements of income before special items

12/31/08 12/31/08
Unaudited 12/31/07 % Change 12/31/07 % Change

Operating Revenues(1)
$ 11,917 $ 48,214
Wireline $ 12,249 (2.7) $ 49,129 (1.9)
12,846 49,332
Domestic Wireless 11,443 12.3 43,882 12.4
(118) (450)
Other (121) (2.5) (636) (29.2)
Total Operating Revenues 24,645 97,096
23,571 4.6 92,375 5.1

Operating Expenses(1)
9,905 38,801
Cost of services and sales 9,676 2.4 37,090 4.6
6,417 25,723
Selling, general & administrative expense 5,999 7.0 24,620 4.5
3,747 14,505
Depreciation and amortization expense 3,602 4.0 14,120 2.7
19,277 4.1 75,830 4.2

4,294 6.6 16,545 9.2
Operating income impact of divested operations(1) — 44
33 (100.0) 182 (75.8)
109 567
Equity in earnings of unconsolidated businesses 93 17.2 585 (3.1)
110 330
Other income and (expense), net 87 26.4 211 56.4
(517) (1,819)
Interest expense (439) 17.8 (1,829) (0.5)
(1,698) (6,157)
Minority interest (1,333) 27.4 (5,053) 21.8
Income Before Provision for Income Taxes
and Discontinued Operations 2,580 11,032
2,735 (5.7) 10,641 3.7
(855) (3,797)
Provision for income taxes (953) (10.3) (3,787) 0.3
Income Before Discontinued Operations 1,725 7,235
1,782 (3.2) 6,854 5.6
— —
Income from discontinued operations, net of tax — * 72 (100.0)
Net Income Before Special Items $ 1,725 $ 7,235
$ 1,782 (3.2) $ 6,926 4.5

Basic Adjusted Earnings per Common Share(2)
$ .61 $ 2.54
Income before discontinued operations $ .62 (1.6) $ 2.37 7.2
— —
$ .61 $ 2.54
Net income $ .62 (1.6) $ 2.39 6.3

2,841 2,849
Weighted average number of common shares (in millions) 2,886 2,898

Diluted Adjusted Earnings per Common Share(2)(3)
$ .61 $ 2.54
Income before discontinued operations $ .62 (1.6) $ 2.36 7.6
— —
$ .61 $ 2.54
Net income $ .62 (1.6) $ 2.39 6.3

Weighted average number of common shares-assuming
2,841 2,850
dilution (in millions) 2,891 2,902

Footnotes:
(1) Reclassifications of prior period amounts have been made, where appropriate, to reflect comparable operating results for the spin-off of the wireline segment’s non-strategic local
exchange and related business assets in Maine, New Hampshire and Vermont in the first quarter of 2008. Reclassifications were determined using specific information, where
available, and allocations where data is not maintained on a state-specific basis within the Company’s books and records, as follows:
$ — $ 258
$ 269 $ 1,094
Revenues
$ — $ 214
$ 236 $ 912
Expenses
(3) Diluted Earnings per Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represent the only potential dilution.
* Not meaningful

11


condensed consolidated statements of income – reconciliations
Fourth Quarter 2008 and 2007
Special and Non-Recurring Items
Severance,
12/31/08 12/31/08
Merger Pension and Investment-
Reported Before Special
Integration Benefit Related
(GAAP) Items
Unaudited Costs Charges Charges

$ — $ — $ —

Operating Expenses
9,976 9,905
Cost of services and sales (6) (65) —
7,090 6,417
Selling, general & administrative expense (53) (620) —
3,747 3,747
Depreciation and amortization expense — — —
(59) (685) —

59 685 —
109 109
Equity in earnings of unconsolidated businesses — — —
62 110
Other income and (expense), net — — 48
(517) (517)
Interest expense — — —
(1,696) (1,698)
Minority interest (2) — —
Income Before Provision for Income Taxes 1,790 2,580
57 685 48
(555) (855)
Provision for income taxes (22) (261) (17)
Net Income $ $1,235 $ 1,725
$ $35 $ 424 $ 31

$ .43 $ .61
Net income $ .01 $ .15 $ .01

Diluted Earnings per Common Share(1)
$ .43 $ .61
Net income $ .01 $ .15 $ .01

Access Line Severance,
12/31/07 12/31/07
Merger Spin-Off Pension Impact
Reported of Divested Before Special
Integration Related International and Benefit
(GAAP) Items
Unaudited Costs Charges Taxes Charges Operations

$ — $ — $ — $ — $ (269)

Operating Expenses
9,796 9,676
Cost of services and sales (16) — — — (104)
6,955 5,999
Selling, general & administrative expense (76) (38) (2) (772) (68)
3,666 3,602
Depreciation and amortization expense — — — — (64)
(92) (38) (2) (772) (236)

92 38 2 772 (33)
— 33
Operating income impact of divested operations — — — — 33
93 93
Equity in earnings of unconsolidated businesses — — — — —
87 87
Other income and (expense), net — — — — —
(439) (439)
Interest expense — — — — —
(1,333) (1,333)
Minority interest — — — — —
92 38 2 772 —
(759) (953)
Provision for income taxes (34) (2) 137 (295) —
Net Income $ 1,072 $ 1,782
$ 58 $ 36 $ 139 $ 477 $ —

$ .37 $ .62
Net income $ .02 $ .01 $ .05 $ .17 $ —

$ .37 $ .62
Net income $ .02 $ .01 $ .05 $ .16 $ —

Footnote:
Note: See www.verizon.com/investor for a reconciliation of other non-GAAP measures included in this Quarterly Bulletin.

12


condensed consolidated statements of income – reconciliations
Fourth Quarter Year-to-Date 2008 and 2007
Access Line Severance,
12/31/08 12/31/08
Merger Spin-Off Investment- Pension Impact
Reported of Divested Before Special
Integration Related Related and Benefit
(GAAP) Items
Unaudited Costs Charges Charges Charges Operations

$ — $ — $ — $ — $ (258)
Operating Expenses
39,007 38,801
Cost of services and sales (24) (16) — (65) (101)
26,898 25,723
Selling, general & administrative expense (150) (87) — (885) (53)
14,565 14,505
Depreciation and amortization expense — — — — (60)
(174) (103) — (950) (214)
174 103 — 950 (44)
— 44
Operating income impact of divested operations — — — — 44
567 567
Equity in earnings of unconsolidated businesses — — — — —
282 330
Other income and (expense), net — — 48 — —
(1,819) (1,819)
Interest expense — — — — —
(6,155) (6,157)
Minority interest (2) — — — —
172 103 48 950 —
(3,331) (3,797)
Provision for income taxes (65) (22) (17) (362) —
Net Income $ 6,428 $ 7,235
$ 107 $ 81 $ 31 $ 588 $ —
$ 2.26 $ 2.54
Net income $ .03 $ .03 $ .01 $ .21 $ —
$ 2.26 $ 2.54
Net income $ .03 $ .03 $ .01 $ .21 $ —

12 Mos. Ended
12 Mos. Ended Access Line Severance,
12/31/07
12/31/07 Impact of
Merger Sale of Spin-Off Pension
Divested Before Special
Reported Related International and Benefit
Integration Puerto Rico, Loss on
Items
(GAAP)
Unaudited Charges Operations
Costs Net CANTV Charges Taxes

Operating Revenues $ 93,469 $ (1,094) $ 92,375
$ — $ — $ — $ — $ — $ —
Operating Expenses
37,547 37,090
Cost of services and sales (32) — — — — — (425)
25,967 24,620
Selling, general & administrative expense (146) (100) — (84) (15) (772) (230)
14,377 14,120
Depreciation and amortization expense — — — — — — (257)
(178) (100) — (84) (15) (772) (912)
178 100 — 84 15 772 (182)
— 182
Operating income impact of divested operations — — — — — — 182
585 585
Equity in earnings of unconsolidated businesses — — — — — — —
211 211
Other income and (expense), net — — — — — — —
(1,829) (1,829)
Interest expense — — — — — — —
(5,053) (5,053)
Minority interest — — — — — — —
Income Before Provision for Income Taxes, Discontinued Operations
and Extraordinary Item 9,492 10,641
178 100 — 84 15 772 —
(3,982) (3,787)
Provision for income taxes (66) (35) — (4) 595 (295) —
Income Before Discontinued Operations and Extraordinary Item 5,510 6,854
112 65 — 80 610 477 —
142 72
Income from discontinued operations, net of tax — (70) — — — — —
(131) —
Extraordinary item, net of tax — — 131 — — — —
Net Income $ 5,521 $ 6,926
$ 112 $ (5) $ 131 $ 80 $ 610 $ 477 $ —
$ 1.90 $ 2.37
Income before discontinued operations and extraordinary item $ .04 $ .02 $ — $ .03 $ .21 $ .17 $ —
.05 .02
Income from discontinued operations, net of tax — (.02) — — — — —
(.05) —
Extraordinary item, net of tax — — .05 — — — —
$ 1.91 $ 2.39
Net income $ .04 $ — $ .05 $ .03 $ .21 $ .17 $ —
$ 1.90 $ 2.36
Income before discontinued operations and extraordinary item $ .04 $ .02 $ — $ .03 $ .21 $ .16 $ —
.05 .02
Income from discontinued operations, net of tax — (.02) — — — — —
(.05) —
Extraordinary item, net of tax — — .05 — — — —
$ 1.90 $ 2.39
Net income $ .04 $ — $ .05 $ .03 $ .21 $ .16 $ —
Footnote:
Note: See www.verizon.com/investor for a reconciliation of other non-GAAP measures included in this Quarterly Bulletin.
13

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