This excerpt taken from the VZ 8-K filed Jan 28, 2008.
YEAR-END 2007 HIGHLIGHTS
Note: Comparisons are year over year unless otherwise noted. Prior-period amounts have been reclassified to reflect comparable results. See the accompanying schedules and www.verizon.com/investor for reconciliations to generally accepted accounting principles (GAAP) for non-GAAP financial measures cited in this news release. Discontinued operations include Verizon Information Services, as well as Verizons interests in Verizon Dominicana C. por A. and Telecomunicaciones de Puerto Rico, Inc. The dispositions of these non-strategic businesses were completed on Nov. 17, 2006; Dec. 1, 2006; and March 30, 2007, respectively.
NEW YORK Verizon Communications Inc. (NYSE:VZ) today reported continued strong quarterly financial and operational results, as the company again produced significant gains in strategic growth areas such as wireless, broadband, data, video and global IP.
Verizon reported fourth-quarter 2007 earnings of 37 cents in fully diluted earnings per share (EPS). This compares with fourth-quarter 2006 earnings of 48 cents per share before income from discontinued operations that have since been divested.
On an adjusted basis (non-GAAP), fourth-quarter 2007 earnings were 62 cents per share from continuing operations. This is a 19.2 percent increase, compared with 52 cents per share from continuing operations in the fourth quarter 2006.
On an annual basis, Verizon reported 2007 EPS of $1.90, compared with $1.88 per share from continuing operations. On an adjusted annual basis, 2007 EPS was $2.36, a 14.6 percent increase, compared with 2006 EPS of $2.06 from continuing operations.
Special items reflected in fourth-quarter 2007 EPS are: 16 cents per share for severance and other related expenses recognized as a result of workforce reductions that began in the fourth quarter and will continue throughout 2008; 5 cents per share for taxes and expenses associated with an increase in the distributable earnings from the companys Vodafone Omnitel N.V.
Verizon News Release, page 3
investment, including cash distributions received in December 2007; 2 cents per share for merger integration costs; and 1 cent per share for costs related to the spinoff of wireline access lines in Maine, New Hampshire and Vermont. Further detail on earnings adjustments is provided later in this release.