Verizon Wireless 2006 Annual Report Download - page 44

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42
VERIZON COMMUNICATIONS INC. AND SUBSIDIARIES
Consolidated Statements of Income
(dollars in millions, except per share amounts)
Years Ended December 31, 2006 2005 2004
Operating Revenues $ 88,144 $69,518 $ 65,751
Operating Expenses
Cost of services and sales (exclusive of items shown below) 34,994 24,200 22,032
Selling, general & administrative expense 25,232 19,652 19,346
Depreciation and amortization expense 14,545 13,615 13,503
Sales of businesses, net –(530) –
Total Operating Expenses 74,771 56,937 54,881
Operating Income 13,373 12,581 10,870
Equity in earnings of unconsolidated businesses 773 686 1,690
Other income and (expense), net 395 311 82
Interest expense (2,349) (2,129) (2,336)
Minority interest (4,038) (3,001) (2,329)
Income Before Provision for Income Taxes, Discontinued
Operations and Cumulative Effect of Accounting Change 8,154 8,448 7,977
Provision for income taxes (2,674) (2,421) (2,078)
Income Before Discontinued Operations and Cumulative
Effect of Accounting Change 5,480 6,027 5,899
Income on discontinued operations, net of tax 759 1,370 1,932
Cumulative effect of accounting change, net of tax (42) ––
Net Income $ 6,197 $7,397 $ 7,831
Basic Earnings Per Common Share(1)
Income before discontinued operations and cumulative
effect of accounting change $1.88 $2.18 $ 2.13
Income on discontinued operations, net of tax .26 .50 .70
Cumulative effect of accounting change, net of tax (.01) ––
Net Income $ 2.13 $2.67 $ 2.83
Weighted-average shares outstanding (in millions) 2,912 2,766 2,770
Diluted Earnings Per Common Share(1)
Income before discontinued operations and cumulative
effect of accounting change $1.88 $2.16 $ 2.11
Income on discontinued operations, net of tax .26 .49 .68
Cumulative effect of accounting change, net of tax (.01) ––
Net Income $ 2.12 $2.65 $ 2.79
Weighted-average shares outstanding (in millions) 2,938 2,817 2,831
(1) Total per share amounts may not add due to rounding.
See Notes to Consolidated Financial Statements.