Verizon Wireless 2011 Annual Report Download - page 30

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andVerizonWirelessmaymakedistributionstoitspartners(see“Cash
FlowsfromFinancingActivities-Other,net”).
Other
We do not currently expect that legislative efforts relating to climate
control will have a material adverse impact on our consolidated financial
results or financial condition. We believe there may be opportunities for
companies to increase their use of communications services, including
those we provide, in order to minimize the environmental impact of their
businesses.
We continue to be actively involved in labor negotiations with our
unions.Manyofourunion-representedemployeesarecurrentlyworking
under an agreement indefinitely extending the contracts that expired in
August 2011, with either the Company or the unions having the right
to terminate the contract extension after providing seven days notice.
The terms of any new contract will affect our future obligations to our
employees for compensation and benefits.
CONSOLIDATED RESULTS OF OPERATIONS
In this section, we discuss our overall results of operations and high-
light items of a non-operational nature that are not included in our
segment results. We have two reportable segments, which we operate
and manage as strategic business units and organize by products and
services.OursegmentsareVerizonWirelessandWireline.In“Segment
ResultsofOperations,”wereviewtheperformanceofourtworeportable
segments.
Corporate, eliminations and other includes unallocated corporate
expenses such as certain pension and other employee benefit related
costs, intersegment eliminations recorded in consolidation, the results
of other businesses such as our investments in unconsolidated busi-
nesses, lease financing and divested operations, and other adjustments
and gains and losses that are not allocated in assessing segment perfor-
mance due to their non-operational nature. Although such transactions
are excluded from the business segment results, they are included in
reported consolidated earnings. Gains and losses that are not individually
significant are included in all segment results as these items are included
inthechiefoperatingdecisionmaker’sassessmentofsegmentperfor-
mance. We believe that this presentation assists users of our financial
statements in better understanding our results of operations and trends
from period to period.
Corporate, eliminations and other during 2010 included a one-time non-
cash adjustment of $0.2 billion primarily to adjust wireless data revenues.
This adjustment was recorded to properly defer previously recognized
wireless data revenues that were earned and recognized in future periods.
The adjustment was not material to the consolidated financial statements
(see“OtherItems”).Inaddition,theresultsofoperationsrelatedtothe
divestitureswecompletedin2010(see“AcquisitionsandDivestitures”)
included in Corporate, eliminations and other are as follows:
(dollars in millions)
Years Ended December 31, 2011 2010 2009
Impact of Divested Operations
Operating revenues $ – $ 2,407 $ 5,297
Cost of services and sales – 574 1,288
Selling, general and administrative expense – 665 1,356
Depreciation and amortization expense – 413 884
28
ManagEMEnt’s discussiOn and analYsis
OF Financial cOnditiOn and REsults OF OPERatiOns continued