After-tax compensation expense for other stock-based compensation
included in net income as reported for the years ended December
31, 2005, 2004 and 2003 was $370 million, $254 million and $80 million,
For additional information on assumptions used to determine the
pro forma amounts as well as other information related to our stock-based
compensation plans, see Note 14.
Asset Retirement Obligations
We adopted the provisions of SFAS No. 143 on January 1, 2003. SFAS
No. 143 requires that companies recognize the fair value of a liability
for asset retirement obligations in the period in which the obligations
are incurred and capitalize that amount as part of the book value
of the long-lived asset. We determined that Verizon does not have
a material legal obligation to remove long-lived assets as described
by this statement. However, prior to the adoption of SFAS No. 143,
we included estimated removal costs in our group depreciation models.
Consequently, in connection with the initial adoption of SFAS No.
143 we reversed accrued costs of removal in excess of salvage from
our accumulated depreciation accounts for these assets. The adjustment
was recorded as a cumulative effect of an accounting change, resulting
in the recognition of a gain of $3,499 million ($2,150 million after-tax).
Additionally, on December 31, 2005, FASB Interpretation (FIN) No.
47, Accounting for Conditional Asset Retirement Obligations
an interpretation of FASB Statement No. 143 became
effective. There was no impact of the adoption of FIN No. 47 on
Verizons results of operations or financial position.