Verizon Communications Inc. (VZ)
Analysis of Revenues
Accounting Policy on Revenue Recognition
Verizon earns revenue from contracts with customers, primarily through the provision of telecommunications and other services and through the sale of wireless equipment. Verizon accounts for these revenues under Accounting Standards Update (ASU) 2014-09, "Revenue from Contracts with Customers" (Topic 606), which Verizon adopted on January 1, 2018, using the modified retrospective approach. This standard update, along with related subsequently issued updates, clarifies the principles for recognizing revenue and develops a common revenue standard U.S. GAAP. The standard update also amends current guidance for the recognition of costs to obtain and fulfill contracts with customers such that incremental costs of obtaining and direct costs of fulfilling contracts with customers will be deferred and amortized consistent with the transfer of the related good or service.
Verizon also earns revenues that are not accounted for under Topic 606 from leasing arrangements (such as those for towers and equipment), captive reinsurance arrangements primarily related to wireless device insurance and the interest on equipment financed under a device payment plan agreement when sold to the customer by an authorized agent.
Source: 10-K (filing date: 2019-02-15).
Revenues as Reported
Verizon Communications Inc., Income Statement, Revenues
US$ in millions
|12 months ended||Dec 31, 2018||Dec 31, 2017||Dec 31, 2016||Dec 31, 2015||Dec 31, 2014|
|Corporate and other|
|Operating results from divested businesses|
|Operating revenues||Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).||Verizon Communications Inc.’s operating revenues increased from 2016 to 2017 and from 2017 to 2018.|