Notes to Consolidated Financial Statements
NOTE 17 (3 of 3)
Reconciliation To Consolidated Financial Information
A reconciliation of the results for the operating segments to the applicable line items in the consolidated financial statements is as follows:
(dollars in millions) |
|||||||||
|
2007 |
2006 |
2005 |
||||||
|---|---|---|---|---|---|---|---|---|---|
|
|||||||||
Operating Revenues |
|||||||||
Total reportable segments |
$ |
94,198 |
|
$ |
88,771 |
|
$ |
69,917 |
|
Impact of Hawaii (2005) and other operations sold (2006) |
|
— |
|
|
104 |
|
|
180 |
|
Corporate, eliminations and other |
|
(729 |
) |
|
(693 |
) |
|
(579 |
) |
Consolidated operating revenues — reported |
$ |
93,469 |
) |
$ |
88,182 |
|
$ |
69,518 |
|
|
|||||||||
Operating Expenses |
|||||||||
Total reportable segments |
$ |
77,727 |
|
$ |
74,620 |
|
$ |
57,745 |
|
Merger integration costs (see Note 8) |
|
178 |
|
|
232 |
|
|
— |
|
Access line spin-off related charges (see Note 2) |
|
84 |
|
|
— |
|
|
— |
|
Taxes on foreign distributions (see Note 6) |
|
15 |
|
|
— |
|
|
— |
|
Verizon Center relocation (see Note 3) |
|
— |
|
|
184 |
|
|
(18 |
) |
Severance, pension and benefit charges, net (see Note 3) |
|
772 |
|
|
425 |
|
|
157 |
|
Impact of Hawaii (2005) and other operations sold (2006) |
|||||||||
(see Note 2) |
|
— |
|
|
89 |
|
|
118 |
|
Sales of businesses net (see Note 2) |
|
— |
|
|
— |
|
|
(530 |
) |
Lease impairment and other items (see Note 3) |
|
— |
|
|
— |
|
|
125 |
|
Verizon Foundation contribution (see Note 2) |
|
100 |
|
|
— |
|
|
— |
|
Corporate, eliminations and other |
|
(985 |
) |
|
(741 |
) |
|
(660 |
) |
Consolidated operating expenses — reported |
$ |
77,891 |
|
$ |
74,809 |
|
$ |
56,937 |
|
|
|||||||||
Net Income |
|||||||||
Segment income — reportable segments |
$ |
5,300 |
|
$ |
4,601 |
|
$ |
4,125 |
|
Debt extinguishment costs (see Note 11) |
|
— |
|
|
(16 |
) |
|
— |
|
Merger integration costs (see Note 8) |
|
(112 |
) |
|
(146 |
) |
|
— |
|
Sales of businesses and investments, net (see Note 2) |
|
5 |
|
|
(541 |
) |
|
336 |
|
Extraordinary item (see Note 2) |
|
(131 |
) |
|
— |
|
|
— |
|
Access line spin-off related charges (see Note 2) |
|
(80 |
) |
|
— |
|
|
— |
|
Taxes on foreign distributions (see Note 6) |
|
(610 |
) |
|
— |
|
|
(206 |
) |
Cumulative effect of accounting change (see Note 1) |
|
— |
|
|
(42 |
) |
|
— |
|
Verizon Center relocation, net (see Note 3) |
|
— |
|
|
(118 |
) |
|
8 |
|
Severance, pension and benefit charges (see Note 3) |
|
(477 |
) |
|
(258 |
) |
|
(95 |
) |
Domestic print and Internet yellow pages directories business |
|||||||||
spin-off costs (see Note 2) |
|
— |
|
|
(101 |
) |
|
— |
|
Lease impairment and other items (see Note 3) |
|
— |
|
|
— |
|
|
(133 |
) |
Tax benefits (see Note 3) |
|
— |
|
|
— |
|
|
336 |
|
Income from discontinued operations, |
|||||||||
net of tax (see Note 2) |
|
72 |
|
|
1,398 |
|
|
1,370 |
|
Corporate and other |
|
1,554 |
|
|
1,420 |
|
|
1,656 |
|
Consolidated net income — reported |
$ |
5,521 |
|
$ |
6,197 |
|
$ |
7,397 |
|
|
|||||||||
Assets |
|||||||||
Total reportable segments |
$ |
176,019 |
|
$ |
174,263 |
|
$ |
151,917 |
|
Reconciling items |
|
10,940 |
|
|
14,541 |
|
|
16,213 |
|
Consolidated assets |
$ |
186,959 |
|
$ |
188,804 |
|
$ |
168,130 |
|
Financial information for Wireline excludes the effects of Hawaii access lines and directory operations sold in 2005, in addition to the sale of nonstrategic assets of the Wireline segment sold in the first quarter of 2007.
We generally account for intersegment sales of products and services and asset transfers at current market prices. We are not dependent on any single customer.
Geographic Areas
Our foreign investments are located principally in the Americas and Europe. Domestic and foreign operating revenues are based on the location of customers. Long-lived assets consist of plant, property and equipment (net of accumulated depreciation) and investments in unconsolidated businesses. The table below presents financial information by major geographic area:
(dollars in millions) |
|||||||||
Years Ended December 31, |
2007 |
2006 |
2005 |
||||||
|---|---|---|---|---|---|---|---|---|---|
|
|||||||||
Domestic |
|||||||||
Operating revenues |
$ |
89,504 |
|
$ |
84,731 |
|
$ |
69,327 |
|
Long-lived assets |
|
85,081 |
|
|
82,277 |
|
|
74,813 |
|
|
|||||||||
International |
|||||||||
Operating revenues |
|
3,965 |
|
|
3,451 |
|
|
191 |
|
Long-lived assets |
|
3,585 |
|
|
4,947 |
|
|
2,776 |
|