Verizon Wireless 2007 Annual Report Download - page 42

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40
VERIZON COMMUNICATIONS INC. AND SUBSIDIARIES
Consolidated Statements of Income
(dollars in millions, except per share amounts)
Years Ended December 31, 2007 2006 2005
Operating Revenues $ 93,469 $ 88,182 $ 69,518
Operating Expenses
Cost of services and sales (exclusive of items shown below) 37,547 35,309 24,409
Selling, general & administrative expense 25,967 24,955 19,443
Depreciation and amortization expense 14,377 14,545 13,615
Sales of businesses, net –– (530)
Total Operating Expenses 77,891 74,809 56,937
Operating Income 15,578 13,373 12,581
Equity in earnings of unconsolidated businesses 585 773 686
Other income and (expense), net 211 395 311
Interest expense (1,829) (2,349) (2,129)
Minority interest (5,053) (4,038) (3,001)
Income Before Provision for Income Taxes, Discontinued Operations,
Extraordinary Item and Cumulative Eect of Accounting Change 9,492 8,154 8,448
Provision for income taxes (3,982) (2,674) (2,421)
Income Before Discontinued Operations, Extraordinary Item
and Cumulative Eect of Accounting Change 5,510 5,480 6,027
Income from discontinued operations, net of tax 142 759 1,370
Extraordinary item, net of tax (131) – –
Cumulative eect of accounting change, net of tax –(42) –
Net Income $ 5,521 $ 6,197 $ 7,397
Basic Earnings Per Common Share(1)
Income before discontinued operations, extraordinary item
and cumulative eect of accounting change $ 1.90 $ 1.88 $ 2.18
Income from discontinued operations, net of tax .05 .26 .50
Extraordinary item, net of tax (.05) – –
Cumulative eect of accounting change, net of tax –(.01) –
Net Income $ 1.91 $ 2.13 $ 2.67
Weighted-average shares outstanding (in millions) 2,898 2,912 2,766
Diluted Earnings Per Common Share(1)
Income before discontinued operations, extraordinary item
and cumulative eect of accounting change $ 1.90 $ 1.88 $ 2.16
Income from discontinued operations, net of tax .05 .26 .49
Extraordinary item, net of tax (.05) – –
Cumulative eect of accounting change, net of tax –(.01) –
Net Income $ 1.90 $ 2.12 $ 2.65
Weighted-average shares outstanding (in millions) 2,902 2,938 2,817
(1) Total per share amounts may not add due to rounding.
See Notes to Consolidated Financial Statements.