v3.25.4
Additional Financial Information
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Additional Financial Information
Note 15. Additional Financial Information
The following tables provide additional financial information related to our consolidated financial statements:

Income Statement Information
(dollars in millions)
Years Ended December 31,202520242023
Depreciation expense$15,350 $15,112 $14,937 
Interest costs on debt balances7,291 7,382 7,123 
Net amortization of debt discount143 230 219 
Capitalized interest costs(740)(963)(1,818)
Advertising expense3,832 3,976 3,847 
(dollars in millions)
Years Ended December 31,202520242023
Other income (expense), net
Interest income$329 $336 $354 
Other components of net periodic benefit (cost) income(827)300 (938)
Net debt extinguishment gains368 385 308 
Other, net237 (26)(37)
$107 $995 $(313)
Balance Sheet Information
(dollars in millions)
At December 31,20252024
Prepaid expenses and other
Prepaid taxes$1,844 $811 
Deferred contract costs3,315 2,932 
Collateral payments related to derivative contracts1,074 2,118 
Restricted cash297 319 
Other prepaid expense and other1,806 1,793 
$8,336 $7,973 
Accounts payable and accrued liabilities
Accounts payable$12,154 $10,425 
Accrued expenses4,534 5,058 
Accrued vacation, salaries and wages4,832 4,436 
Interest payable1,602 1,553 
Taxes payable1,859 1,902 
$24,981 $23,374 
Other current liabilities
Dividends payable$2,937 $2,878 
Contract liability7,576 7,492 
Other3,716 3,979 
$14,229 $14,349 

As of December 31, 2025 and 2024, Property, plant and equipment includes approximately $3.8 billion and $3.3 billion, respectively, of additions that have not yet been paid.
Cash Flow Information
(dollars in millions)
Years Ended December 31,202520242023
Cash Paid
Interest, net of amounts capitalized$5,772 $5,505 $4,384 
Income taxes, net of amounts refunded3,581 5,632 2,343 
Other, net Cash Flows from Operating Activities
Changes in device payment plan agreement non-current receivables$(2,485)$(538)$(2,975)
Net debt extinguishment gains(368)(385)(308)
Other, net597 1,096 (427)
$(2,256)$173 $(3,710)
Other, net Cash Flows from Financing Activities
Net debt related costs(1)
$(97)$(259)$(73)
Other, net(1,852)(816)(1,397)
$(1,949)$(1,075)$(1,470)
(1) These costs include fees paid in connection with exchange and tender offers and settlements of associated instruments.

Supplier Finance Program
We maintain a voluntary supplier finance program (SFP) with a financial institution which provides certain suppliers the option, at their sole discretion, to participate in the program and sell their receivables due from Verizon to the financial institution on a non-recourse basis. The eligible suppliers negotiate the terms directly with the financial institution and we have no involvement in establishing those terms nor are we a party to these agreements.

Our payments associated with the invoices from the suppliers participating in the SFP are made to the financial institution according to the original invoice terms generally at 90 days from the invoice date and for the original invoice amount. No additional payments are exchanged between Verizon and the financial institution related to the SFP. Verizon does not pledge any assets nor provide any guarantees to the financial institution in connection with the SFP. The SFP can be terminated by Verizon or the financial institution with a 60-day notice period.

The following table presents the confirmed obligations in the SFP and the related activities:
(dollars in millions)
Year Ended December 31,
20252024
Confirmed obligations outstanding at the beginning of the year$772 $817 
Invoices added during the year3,531 3,549 
Invoices paid during the year(3,580)(3,594)
Confirmed obligations outstanding at the end of the year$723 $772 
Confirmed obligations outstanding related to suppliers participating in the SFP are recorded within Accounts payable and accrued liabilities in our consolidated balance sheets and the associated payments are reflected in the operating activities section of our consolidated statements of cash flows. As of December 31, 2025 and 2024, $723 million and $772 million, respectively, remained as confirmed obligations outstanding related to suppliers participating in the SFP.