Verizon Communications (VZ)

Other Income and (Expense), Net

nm – not meaningful

Other income and (expense), net in 2009 decreased by $192 million compared to 2008. The decrease was primarily driven by lower interest income, in part due to lower invested balances in the current year. The $4.8 billion investment in Alltel debt obligations acquired in 2008 was eliminated in consolidation beginning in January 2009, subsequent to the close of the Alltel transaction.

Other income and (expense), net in 2008 increased by $71 million compared to 2007. The increase was primarily attributable to higher interest income, primarily from our investment in Alltel’s debt obligations. Partially offsetting the increase were foreign exchange losses at our international wireline operations and an impairment charge of $48 million recorded during the fourth quarter of 2008 related to an other-than-temporary decline in fair value of our investments in certain marketable securities.

Other Income and (Expense), Net

Other Income and (Expense), Net in 2008 increased $71 million, or 33.6%, compared to 2007. The increase was primarily attributable to higher interest income, primarily from our investment in Alltel’s debt obligations. Partially offsetting the increase were foreign exchange losses at our international Wireline operations and an impairment charge of $48 million recorded during the fourth quarter of 2008 related to an other-than-temporary decline in fair value of our investments in certain marketable securities.

Other Income and (Expense), Net in 2007 decreased $184 million, or 46.6%, compared to 2006. The decline was primarily attributable to a gain on the sale of a Wireline investment in 2006, as well as decreased interest income as a result of lower average cash balances.

Other Income and (Expense), Net

nm – Not meaningful

Other income and (expense), net in the first quarter of 2009 increased $30 million compared to the similar period in 2008 primarily due to higher foreign exchange gains at our international Wireline operations that were partially offset by lower interest income due to a lower balance in Short-term investments.

Other Income and (Expense), Net

Other Income and (Expense), Net in 2008 increased $71 million, or 33.6%, compared to 2007. The increase was primarily attributable to higher interest income, primarily from our investment in Alltel’s debt obligations. Partially offsetting the increase were foreign exchange losses at our international Wireline operations and an impairment charge of $48 million recorded during the fourth quarter of 2008 related to an other-than-temporary decline in fair value of our investments in certain marketable securities.

Other Income and (Expense), Net in 2007 decreased $184 million, or 46.6%, compared to 2006. The decline was primarily attributable to a gain on the sale of a Wireline investment in 2006, as well as decreased interest income as a result of lower average cash balances.

Other Income and (Expense), Net

nm – Not meaningful

Other Income and (Expense), Net in the third quarter of 2008 increased $56 million and $96 million for the nine months ended September 30, 2008 compared to the similar periods in 2007 as a result of higher interest income, primarily from our investment in Alltel’s debt obligations. Partially offsetting the increases were foreign exchange losses at our international Wireline operations.

Other Income and (Expense), Net

nm – Not meaningful

Other Income and (Expense), Net for the three and six months ended June 30, 2008 increased $65 million and $40 million, respectively, compared to the similar periods in 2007 as a result of higher interest income, primarily from our investment in Alltel’s debt obligations. The six months ended June 30, 2008 were also affected by higher foreign exchange losses at our Wireline international operations.

Other Income and (Expense), Net

nm – Not meaningful

Other Income and (Expense), Net for the first quarter of 2008 decreased $25 million, or 52.1% compared to the similar period last year. The decline was primarily attributable to higher foreign exchange losses at our Wireline international operations, partially offset by higher interest income as a result of higher average cash balances.

Other Income and (Expense), Net

Other Income and (Expense), Net in 2007 decreased $184 million, or 46.6% compared to 2006. The decline was primarily attributable to a gain on the sale of a Wireline investment in the prior year, as well as decreased interest income as a result of lower average cash balances.

Other Income and (Expense), Net in 2006 increased $84 million, or 27% compared to 2005. The increase was primarily due to increased interest income as a result of higher average cash balances coupled with higher interest rates in 2006 compared to 2005, partially offset by foreign exchange losses. Other, net in 2005 included a pretax gain on the sale of a small international business and investment gains and expenses related to the early retirement of debt.