Verizon Communications Inc.

Condensed Consolidated Statements of Income

(dollars in millions, except per share amounts) 3 Mos. Ended 12/31/11 3 Mos. Ended 12/31/10 % Change 12 Mos. Ended 12/31/11 12 Mos. Ended 12/31/10 % Change

Unaudited

Operating Revenues Operating Expenses Cost of services and sales Selling, general & administrative expense Depreciation and amortization expense Total Operating Expenses Operating Income (Loss) Equity in earnings of unconsolidated businesses Other income and (expense), net Interest expense Income (Loss) Before (Provision) Benefit for Income Taxes (Provision) benefit for income taxes Net Income (Loss)

28,436

26,395

7.7

110,875

106,565

4.0

12,090 13,278 4,180 29,548 (1,112) 97 (84) (703) (1,802) 1,590 (212) $

10,610 5,291 4,083 19,984 6,411 113 43 (567) 6,000 (1,352) 4,648

13.9 * 2.4 47.9 * (14.2) * 24.0 * * *

45,875 35,624 16,496 97,995 12,880 444 (14) (2,827) 10,483 (285) 10,198 $

44,149 31,366 16,405 91,920 14,645 508 54 (2,523) 12,684 (2,467) 10,217

3.9 13.6 0.6 6.6 (12.1) (12.6) * 12.0 (17.4) (88.4) (0.2)

Net income attributable to noncontrolling interest Net income (loss) attributable to Verizon
Net Income (Loss)

$ $

1,811 $ (2,023) (212) $

2,009 2,639 4,648

(9.9) * *

$ $

7,794 2,404 10,198

$ $

7,668 2,549 10,217

1.6 (5.7) (0.2)

Basic Earnings (Loss) per Common Share Net income (loss) attributable to Verizon Weighted average number of common shares (in millions) Diluted Earnings (Loss) per Common Share Net income (loss) attributable to Verizon Weighted average number of common shares-assuming dilution (in millions)
(1)

(.71) 2,835

.93 2,829

.85 2,833

.90 2,830

(5.6)

(.71)

.93

.85

.90

(5.6)

2,835

2,831

2,839

2,833

Footnotes: (1) If there is a net loss, diluted EPS is the same as basic EPS. Diluted Earnings per Share includes the dilutive effect of shares issuable under our stockbased compensation plans. Certain reclassifications have been made, where appropriate, to reflect comparable operating results. * Not meaningful

Verizon Communications Inc.

Condensed Consolidated Balance Sheets

(dollars in millions) Unaudited 12/31/11 12/31/10 $ Change

Assets Current assets Cash and cash equivalents Short-term investments Accounts receivable, net Inventories Prepaid expenses and other Total current assets Plant, property and equipment Less accumulated depreciation Investments in unconsolidated businesses Wireless licenses Goodwill Other intangible assets, net Other assets Total Assets Liabilities and Equity Current liabilities Debt maturing within one year Accounts payable and accrued liabilities Other Total current liabilities Long-term debt Employee benefit obligations Deferred income taxes Other liabilities Equity Common stock Contributed capital Reinvested earnings Accumulated other comprehensive income Common stock in treasury, at cost Deferred compensation - employee stock ownership plans and other Noncontrolling interest Total equity Total Liabilities and Equity

13,362 592 11,776 940 4,269 30,939 215,626 127,192 88,434 3,448 73,250 23,357 5,878 5,155 230,461

6,668 545 11,781 1,131 2,223 22,348 211,655 123,944 87,711 3,497 72,996 21,988 5,830 5,635 220,005

6,694 47 (5) (191) 2,046 8,591 3,971 3,248 723 (49) 254 1,369 48 (480) 10,456

4,849 14,689 11,223 30,761 50,303 32,957 25,060 5,472

7,542 15,702 7,353 30,597 45,252 28,164 22,818 6,262

(2,693) (1,013) 3,870 164 5,051 4,793 2,242 (790)

297 37,919 1,179 1,269 (5,002) 308 49,938 85,908 230,461

297 37,922 4,368 1,049 (5,267) 200 48,343 86,912 220,005

(3) (3,189) 220 265 108 1,595 (1,004) 10,456

Verizon - Selected Financial and Operating Statistics

Unaudited 12/31/11 12/31/10

Total debt (in millions) Net debt (in millions) Net debt / Adjusted EBITDA (1) Common shares outstanding end of period (in millions) Total employees Cash dividends declared per common share Footnotes: (1)

$ $

55,152 41,790 1.2x 2,834 193,900 0.5000

$ $

52,794 46,126 1.3x 2,827 194,400 0.4875

The adjusted EBITDA excludes the effects of non-recurring or non-operational items.

The unaudited condensed consolidated balance sheets are based on preliminary information.

Verizon Communications Inc.

Condensed Consolidated Statements of Cash Flows

(dollars in millions) 12 Mos. Ended 12/31/11 12 Mos. Ended 12/31/10

Unaudited

$ Change

Cash Flows From Operating Activities Net Income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense Employee retirement benefits Deferred income taxes Provision for uncollectible accounts Equity in earnings of unconsolidated businesses, net of dividends received Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses Other, net Net cash provided by operating activities Cash Flows From Investing Activities Capital expenditures (including capitalized software) Acquisitions of licenses, investments and businesses, net of cash acquired Proceeds from dispositions Net change in short-term investments Other, net Net cash used in investing activities Cash Flows From Financing Activities Proceeds from long-term borrowings Repayments of long-term borrowings and capital lease obligations Increase (decrease) in short-term obligations, excluding current maturities Dividends paid Proceeds from sale of common stock Proceeds from access line spin-off Other, net Net cash used in financing activities Increase in cash and cash equivalents Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period

10,198

10,217

(19)

16,496 7,426 (223) 1,026 36 (2,279) (2,900) 29,780

16,405 3,988 3,233 1,246 2 202 (1,930) 33,363

91 3,438 (3,456) (220) 34 (2,481) (970) (3,583)

(16,244) (2,018) 35 977 (17,250)

(16,458) (1,438) 2,594 (3) 251 (15,054)

214 (580) (2,594) 38 726 (2,196)

11,060 (11,805) 1,928 (5,555) 241 (1,705) (5,836) 6,694 6,668 13,362

(8,136) (1,097) (5,412) 3,083 (2,088) (13,650) 4,659 2,009 6,668

11,060 (3,669) 3,025 (143) 241 (3,083) 383 7,814 2,035 4,659 6,694

Verizon Communications Inc.

Verizon Wireless Selected Financial Results

(dollars in millions) 3 Mos. Ended 3 Mos. Ended 12/31/11 12/31/10 % Change 12 Mos. Ended 12 Mos. Ended 12/31/11 12/31/10 % Change

Unaudited

Operating Revenues Retail service Other service Service Equipment Other Total Operating Revenues Operating Expenses Cost of services and sales Selling, general & administrative expense Depreciation and amortization expense Total Operating Expenses Operating Income Operating Income Margin Segment EBITDA Segment EBITDA Service Margin

14,562 544 15,106 2,215 933 18,254

13,513 680 14,193 1,126 829 16,148

7.8 (20.0) 6.4 96.7 12.5 13.0

56,660 2,497 59,157 7,457 3,540 70,154

53,308 2,321 55,629 4,418 3,360 63,407

6.3 7.6 6.3 68.8 5.4 10.6

6,707 5,167 2,045 13,919 $ 4,335 23.7% 6,380 42.2% $

4,817 4,596 1,881 11,294 4,854 30.1% 6,735 47.5%

39.2 12.4 8.7 23.2 (10.7) $

24,086 19,579 7,962 51,627 18,527 26.4% 26,489 44.8% $

19,245 18,082 7,356 44,683 18,724 29.5% 26,080 46.9%

25.2 8.3 8.2 15.5 (1.1)

(5.3)

1.6

Footnotes: The segment financial results and metrics above are adjusted to exclude the effects of non-recurring or non-operational items, as the Company's chief operating decision maker excludes these items in assessing business unit performance. Intersegment transactions have not been eliminated. Certain reclassifications have been made, where appropriate, to reflect comparable operating results.

Verizon Communications Inc.

Verizon Wireless Selected Operating Statistics

Unaudited 12/31/11 12/31/10 % Change

Connections (000) Retail postpaid Retail prepaid Retail Wholesale & other connections Total connections
(1)

87,382 4,785 92,167 15,631 107,798

83,125 4,410 87,535 14,711 102,246

5.1 8.5 5.3 6.3 5.4

Unaudited

3 Mos. Ended 3 Mos. Ended 12/31/11 12/31/10 % Change

12 Mos. Ended 12 Mos. Ended 12/31/11 12/31/10 % Change

Net Add Detail (2) (000) Retail postpaid Retail prepaid Retail Wholesale & other connections Total connections Churn Detail Retail postpaid Retail Revenue & ARPU Statistics Total data revenues (in millions) Retail postpaid data ARPU Total data as a % of service revenues Retail service ARPU Retail postpaid ARPU Retail Postpaid Connection Statistics Total Smartphone postpaid % of phones sold Total Smartphone postpaid phone base Total Internet postpaid base Other Operating Statistics Capital expenditures (in millions)
(1)

1,207 252 1,459 (1,359) 100

872 (69) 803 338 1,141

38.4 * 81.7 * (91.2)

4,252 372 4,624 795 5,419

2,529 (552) 1,977 3,540 5,517

68.1 * * (77.5) (1.8)

0.94% 1.23%

1.01% 1.37%

0.95% 1.26%

1.02% 1.38%

$ $ $ $

6,278 22.76 41.6% 53.14 54.80

$ $ $ $

5,268 19.91 37.1% 51.79 53.45

19.2 14.3 2.6 2.5

$ $ $ $

23,646 21.70 40.0% 52.69 54.34

$ $ $ $

19,550 18.78 35.1% 51.51 53.14

21.0 15.5 2.3 2.3

70.3%

49.3%

62.6% 43.5% 8.1%

42.0% 28.1% 7.0%

1,787

2,233

(20.0)

8,973

8,438

6.3

Footnotes: (1) Reflects a reduction of 869,000 connections from previously reported fourth quarter 2011 numbers. (2) Connection net additions exclude acquisitions and adjustments. The segment financial results and metrics above are adjusted to exclude the effects of non-recurring or non-operational items, as the Company's chief operating decision maker excludes these items in assessing business unit performance. Intersegment transactions have not been eliminated. Certain reclassifications have been made, where appropriate, to reflect comparable operating results. * Not meaningful

Verizon Communications Inc.

Wireline Selected Financial Results

(dollars in millions) 3 Mos. Ended 3 Mos. Ended 12/31/11 12/31/10 % Change 12 Mos. Ended 12 Mos. Ended 12/31/11 12/31/10 % Change

Unaudited

Operating Revenues Consumer retail Small business Mass Markets Strategic services Other Global Enterprise Global Wholesale Other Total Operating Revenues Operating Expenses Cost of services and sales Selling, general & administrative expense Depreciation and amortization expense Total Operating Expenses Operating Income Operating Income Margin Segment EBITDA Segment EBITDA Margin

3,429 684 4,113 1,990 1,939 3,929 1,938 159 10,139

3,385 700 4,085 1,735 2,142 3,877 2,098 229 10,289

1.3 (2.3) 0.7 14.7 (9.5) 1.3 (7.6) (30.6) (1.5)

13,606 2,731 16,337 7,607 8,015 15,622 7,973 750 40,682

13,419 2,837 16,256 6,602 8,714 15,316 8,746 909 41,227

1.4 (3.7) 0.5 15.2 (8.0) 2.0 (8.8) (17.5) (1.3)

5,511 2,213 2,115 9,839 $ 300 3.0% 2,415 23.8% $

5,608 2,267 2,161 10,036 253 2.5% 2,414 23.5%

(1.7) (2.4) (2.1) (2.0) 18.6 $

22,158 9,107 8,458 39,723 959 2.4% 9,417 23.1% $

22,618 9,372 8,469 40,459 768 1.9% 9,237 22.4%

(2.0) (2.8) (0.1) (1.8) 24.9

1.9

Footnotes: The segment financial results and metrics above are adjusted to exclude the effects of non-operational items, as the Company's chief operating decision maker excludes these items in assessing business unit performance. Intersegment transactions have not been eliminated. Certain reclassifications have been made, where appropriate, to reflect comparable operating results.

Verizon Communications Inc.

Wireline Selected Operating Statistics

Unaudited 12/31/11 12/31/10 % Change

Connections (000) FiOS Video Subscribers FiOS Internet Subscribers FiOS Digital Voice residence connections FiOS Digital connections HSI and other Total Broadband connections Primary residence switched access connections Primary residence connections Total retail residence voice connections Total voice connections

4,173 4,817 1,884 10,874 3,853 8,670 9,906 11,790 12,626 24,137

3,472 4,082 817 8,371 4,310 8,392 11,757 12,574 13,616 26,001

20.2 18.0 * 29.9 (10.6) 3.3 (15.7) (6.2) (7.3) (7.2)

Unaudited

3 Mos. Ended 12/31/11

3 Mos. Ended 12/31/10 % Change

12 Mos. Ended 12/31/11

12 Mos. Ended 12/31/10 % Change

Net Add Detail (000) FiOS Video Subscribers FiOS Internet Subscribers FiOS Digital Voice residence connections FiOS Digital connections HSI and other Total Broadband connections Primary residence switched access connections Primary residence connections Total retail residence voice connections Total voice connections Revenue & ARPU Statistics Consumer ARPU FiOS revenues (in millions) Strategic services as a % of total Enterprise revenues Other Operating Statistics Capital expenditures (in millions) Wireline employees (000) FiOS Internet Open for Sale (000) FiOS Internet penetration FiOS Video Open for Sale (000) FiOS Video penetration

194 201 424 819 (103) 98 (550) (126) (183) (382)

182 197 145 524 (145) 52 (396) (251) (303) (543)

6.6 2.0 * 56.3 (29.0) 88.5 38.9 (49.8) (39.6) (29.7)

701 735 1,067 2,503 (457) 278 (1,851) (784) (990) (1,864)

722 796 798 2,316 (564) 232 (1,886) (1,088) (1,349) (2,322)

(2.9) (7.7) 33.7 8.1 (19.0) 19.8 (1.9) (27.9) (26.6) (19.7)

$ $

96.43 2,216 50.6%

$ $

88.85 1,875 44.8%

8.5 18.2

$ $

93.07 $ 8,293 $ 48.7%

85.24 6,904 43.1%

9.2 20.1

1,632

2,171

(24.8)

6,399 91.8 13,585 35.5% 13,250 31.5%

7,269 92.3 12,786 31.9% 12,388 28.0%

(12.0)

Footnotes: The segment financial results and metrics above are adjusted to exclude the effects of non-operational items, as the Company's chief operating decision maker excludes these items in assessing business unit performance. Intersegment transactions have not been eliminated. Certain reclassifications have been made, where appropriate, to reflect comparable operating results. * Not meaningful