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VERIZON COMMUNICATIONS INC

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1227.16 2022 1537.18 2039 1239.85 2043 1285.50 2032 1319.96 2029 1332.71 2029 1189.56 2037 1322.35 2029 1063.06 2033 1056.27 2018 1378.75 2031 1048.45 2018 1177.23 2028 1139.69 2028 1270.73 2028 1341.68 2032 1151.79 2035 1367.57 2029 1037.01 2018 1384.37 2030 1426.33 2031 1379.04 2030 1324.60 2039 1206.35 2022 1151.23 2041 1206.61 2038 1273.29 2038 1.045 500000000 2018 1.033 500000000 2018 4830000000 1.248 200000000 2028 1500000000 2047 200000000 P18M P6M 2019-07 1700000000 P2Y7M6D P3Y4M17D P3Y7M21D 10900000000 2022 2022 2027 2037 2047 0.01000 100000000 4200000000 1100000000 2200000000 1800000000 <div> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="break-inside: avoid"> <td valign="top" width="4%" align="left"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>11.</b></font></td> <td valign="top" align="left"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Commitments and Contingencies</b></font></p> </td> </tr> </table> <p style="MARGIN-BOTTOM: 2px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; BORDER-BOTTOM: rgb(0,0,0) 1pt solid; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; LINE-HEIGHT: 3px; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">In the ordinary course of business, Verizon is involved in various commercial litigation and regulatory proceedings at the state and federal level. Where it is determined, in consultation with counsel based on litigation and settlement risks, that a loss is probable and estimable in a given matter, the Company establishes an accrual. In none of the currently pending matters is the amount of accrual material. An estimate of the reasonably possible loss or range of loss in excess of the amounts already accrued cannot be made at this time due to various factors typical in contested proceedings,&#xA0;including (1)&#xA0;uncertain damage theories and demands; (2)&#xA0;a less than complete factual record; (3)&#xA0;uncertainty concerning legal theories and their resolution by courts or regulators; and (4)&#xA0;the unpredictable nature of the opposing party and its demands. We continuously monitor these proceedings as they develop and adjust any accrual or disclosure as needed. We do not expect that the ultimate resolution of any pending regulatory or legal matter in future periods, including the Hicksville matter described below, will have a material effect on our financial condition, but it could have a material effect on our results of operations for a given reporting period.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Reserves have been established to cover environmental matters relating to discontinued businesses and past telecommunications activities. These reserves include funds to address contamination at the site of a former Sylvania facility in Hicksville, NY, which had processed nuclear fuel rods in the 1950s and 1960s. In September 2005, the Army Corps of Engineers (ACE) accepted the site into its Formerly Utilized Sites Remedial Action Program. As a result, the ACE has taken primary responsibility for addressing the contamination at the site. An adjustment to the reserves may be made after a cost allocation is conducted with respect to the past and future expenses of all of the parties. Adjustments to the environmental reserve may also be made based upon the actual conditions found at other sites requiring remediation.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Verizon is currently involved in approximately 35 federal district court actions alleging that Verizon is infringing various patents. Most of these cases are brought by&#xA0;<font style="WHITE-SPACE: nowrap">non-practicing</font>&#xA0;entities and effectively seek only monetary damages; a small number are brought by companies that have sold products and may seek injunctive relief as well. These cases have progressed to various stages and a small number may go to trial in the coming 12 months if they are not otherwise resolved.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">In connection with the execution of agreements for the sales of businesses and investments, Verizon ordinarily provides representations and warranties to the purchasers pertaining to a variety of nonfinancial matters, such as ownership of the securities being sold, as well as indemnity from certain financial losses. From time to time, counterparties may make claims under these provisions, and Verizon will seek to defend against those claims and resolve them in the ordinary course of business.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Subsequent to the sale of Verizon Information Services Canada in 2004, we continue to provide a guarantee to publish directories, which was issued when the directory business was purchased in 2001 and had a&#xA0;<font style="WHITE-SPACE: nowrap">30-year</font>&#xA0;term (before extensions). The preexisting guarantee continues, without modification, despite the subsequent sale of Verizon Information Services Canada and the&#xA0;<font style="WHITE-SPACE: nowrap">spin-off</font>&#xA0;of our domestic print and Internet yellow pages directories business. The possible financial impact of the guarantee, which is not expected to be adverse, cannot be reasonably estimated as a variety of the potential outcomes available under the guarantee result in costs and revenues or benefits that may offset each other. We do not believe performance under the guarantee is likely.</font></p> </div> <div> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="break-inside: avoid"> <td valign="top" width="4%" align="left"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>7.</b></font></td> <td valign="top" align="left"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Stock-Based Compensation</b></font></p> </td> </tr> </table> <p style="MARGIN-BOTTOM: 2px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; BORDER-BOTTOM: rgb(0,0,0) 1pt solid; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; LINE-HEIGHT: 3px; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>Verizon Communications Long-Term Incentive Plan</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The Verizon Communications Inc. Long-Term Incentive Plan (the Plan) permits the granting of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance stock units and other awards. The maximum number of shares available for awards from the Plan is 119.6&#xA0;million shares.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>Restricted Stock Units</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The Plan provides for grants of Restricted Stock Units (RSUs). For RSUs granted prior to 2017, vesting generally occurs at the end of the third year. For the 2017 grants, vesting generally occurs in three equal installments on each anniversary of the grant date. The RSUs are generally classified as equity awards because the RSUs will be paid in Verizon common stock upon vesting. The RSU equity awards are measured using the grant date fair value of Verizon common stock and are not remeasured at the end of each reporting period. Dividend equivalent units are also paid to participants at the time the RSU award is paid, and in the same proportion as the RSU award.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>Performance Stock Units</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The Plan also provides for grants of Performance Stock Units (PSUs) that generally vest at the end of the third year after the grant. As defined by the Plan, the Human Resources Committee of the Board of Directors determines the number of PSUs a participant earns based on the extent to which the corresponding performance goals have been achieved over the three-year performance cycle. The PSUs are classified as liability awards because the PSU awards are paid in cash upon vesting. The PSU award liability is measured at its fair value at the end of each reporting period and, therefore, will fluctuate based on the price of Verizon common stock as well as performance relative to the targets. Dividend equivalent units are also paid to participants at the time that the PSU award is determined and paid, and in the same proportion as the PSU award. The granted and cancelled activity for the PSU award includes adjustments for the performance goals achieved.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The following table summarizes the Restricted Stock Unit and Performance Stock Unit activity:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(shares in thousands)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Restricted<br /> Stock&#xA0;Units</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Performance<br /> Stock&#xA0;Units</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Outstanding, January&#xA0;1, 2017</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">13,308</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">17,919</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Granted</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">5,105</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">5,837</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Payments</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(4,826</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(6,031</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Cancelled/Forfeited</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(44</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(147</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Outstanding, March&#xA0;31, 2017</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">13,543</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">17,578</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">As of March&#xA0;31, 2017, unrecognized compensation expense related to the unvested portion of Verizon&#x2019;s RSUs and PSUs was approximately $0.7&#xA0;billion and is expected to be recognized over approximately two years.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The RSUs granted in 2017 have a weighted-average grant date fair value of $50.09 per unit.</font></p> </div> Q1 2017 10-Q 0.84 0000732712 <div> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">A reconciliation of the total of the reportable segments&#x2019; operating income to consolidated income before provision for income taxes is as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="6" align="right"> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Three&#xA0;Months&#xA0;Ended</b></font></p> <p style="MARGIN-BOTTOM: 1px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>March&#xA0;31,</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>2017</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>2016</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Total reportable segment operating income</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;7,369</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;7,813</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Corporate and other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(314</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(509</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Severance, pension and benefit charges (Note 8)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(165</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Gain on spectrum license transaction (Note 2)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">126</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">142</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Impact of divested operations</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">661</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Total consolidated operating income</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7,181</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7,942</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="16"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Equity in losses of unconsolidated businesses</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(21</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(20</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other income and (expense), net</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(846</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">32</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Interest expense</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(1,132</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(1,188</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Income Before Provision For Income Taxes</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">5,182</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6,766</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify">&#xA0;</p> </div> <div> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">A reconciliation of the reportable segment operating revenues to consolidated operating revenues is as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="6" align="right"> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Three&#xA0;Months&#xA0;Ended</b></font></p> <p style="MARGIN-BOTTOM: 1px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>March&#xA0;31,</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>2017</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>2016</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Total reportable segment operating revenues</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">28,754</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">29,927</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Corporate and other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,460</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,309</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Eliminations</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(400</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(345</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Impact of divested operations</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,280</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Total consolidated operating revenues</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;29,814</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;32,171</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify">&#xA0;</p> </div> <div> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The changes in the balances of Accumulated other comprehensive income by component are as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="81%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Foreign&#xA0;currency<br /> translation<br /> adjustments</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Unrealized</b></font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>loss&#xA0;on&#xA0;cash</b></font></p> <p style="MARGIN-BOTTOM: 1px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>flow&#xA0;hedges</b></font></p> </td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Unrealized</b></font></p> <p style="MARGIN-BOTTOM: 1px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>gain&#xA0;on<br /> marketable<br /> securities</b></font></p> </td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Defined&#xA0;benefit</b></font></p> <p style="MARGIN-BOTTOM: 1px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>pension&#xA0;and<br /> postretirement<br /> plans</b></font></p> </td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Total</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Balance at January&#xA0;1, 2017</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(713</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(80</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">46</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;3,420</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;2,673</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other comprehensive income</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">77</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#xA0;83</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">166</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Amounts reclassified to net income</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(101</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">8</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(137</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(230</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="17"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Net other comprehensive income (loss)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">77</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(18</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">14</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(137</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(64</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="17"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Balance at March&#xA0;31, 2017</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;(636</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(98</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#xA0;60</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,283</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2,609</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="17"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify">&#xA0;</p> </div> <div> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The following table presents the balances of assets and liabilities measured at fair value on a recurring basis at March&#xA0;31, 2017:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>&#xA0;&#xA0;&#xA0;&#xA0;Level&#xA0; 1<sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1">(1)</font></sup></b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>&#xA0;&#xA0;&#xA0;&#xA0;Level&#xA0; 2<sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1">(2)</font></sup></b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>&#xA0;&#xA0;&#xA0;&#xA0;Level&#xA0; 3<sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1">(3)</font></sup></b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Total</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Assets:</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other assets:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Equity securities</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">118</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">118</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Fixed income securities</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">439</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">439</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Interest rate swaps</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">91</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">91</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Cross currency swaps</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">63</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">63</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Interest rate cap</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="13"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Total</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;118</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">600</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">718</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="13"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="16"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Liabilities:</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other liabilities:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Interest rate swaps</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">296</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">296</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Cross currency swaps</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,682</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,682</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="13"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Total</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;1,978</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;1,978</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="13"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The following table presents the balances of assets and liabilities measured at fair value on a recurring basis at December&#xA0;31, 2016:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>&#xA0;&#xA0;&#xA0;&#xA0;Level&#xA0;1<font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1"><sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex">&#xA0;(1)</sup></font></b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>&#xA0;&#xA0;&#xA0;&#xA0;Level&#xA0;2<font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1"><sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex">&#xA0;(2)</sup></font></b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>&#xA0;&#xA0;&#xA0;&#xA0;Level&#xA0;3<font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1"><sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex">&#xA0;(3)</sup></font></b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Total</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Assets:</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other assets:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Equity securities</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">123</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">123</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Fixed income securities</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">10</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">566</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">576</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Interest rate swaps</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">71</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">71</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Cross currency swaps</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">45</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">45</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Interest rate caps</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">10</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">10</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="13"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Total</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;133</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">692</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;825</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="13"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="16"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Liabilities:</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other liabilities:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Interest rate swaps</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">236</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">236</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Cross currency swaps</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,803</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,803</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="13"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Total</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;2,039</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;2,039</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="13"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="break-inside: avoid"> <td valign="top" width="2%" align="left"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1"><sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex">(1)</sup>&#xA0;</font></td> <td valign="top" align="left"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">quoted prices in active markets for identical assets or liabilities</font></p> </td> </tr> </table> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="break-inside: avoid"> <td valign="top" width="2%" align="left"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1"><sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex">(2)</sup>&#xA0;</font></td> <td valign="top" align="left"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">observable inputs other than quoted prices in active markets for identical assets and liabilities</font></p> </td> </tr> </table> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="break-inside: avoid"> <td valign="top" width="2%" align="left"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1"><sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex">(3)</sup>&#xA0;</font></td> <td valign="top" align="left"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">no observable pricing inputs in the market</font></p> </td> </tr> </table> </div> VZ 4087000000 4082000000 false <div> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="break-inside: avoid"> <td valign="top" width="4%" align="left"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>3.</b></font></td> <td valign="top" align="left"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Wireless Licenses, Goodwill and Other Intangible Assets</b></font></p> </td> </tr> </table> <p style="MARGIN-BOTTOM: 2px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; BORDER-BOTTOM: rgb(0,0,0) 1pt solid; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; LINE-HEIGHT: 3px; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Wireless Licenses</b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Changes in the carrying amount of Wireless licenses are as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="86%"></td> <td valign="bottom" width="10%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> &#xA0;<font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars&#xA0;in&#xA0;millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Balance at January&#xA0;1, 2017</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;86,673</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Acquisitions (Note 2)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">76</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Capitalized interest on wireless licenses</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">121</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Reclassifications, adjustments and other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">884</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Balance at March&#xA0;31, 2017</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;87,754</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Reclassifications, adjustments and other includes $1.0&#xA0;billion received in exchanges of wireless licenses in 2017 offset by $0.1&#xA0;billion of wireless licenses that are classified as Assets held for sale on our condensed consolidated balance sheet at March&#xA0;31, 2017 (see Note 2 for additional information).</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">At March&#xA0;31, 2017, approximately $10.0&#xA0;billion of wireless licenses were under development for commercial service for which we were capitalizing interest costs.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The average remaining renewal period for our wireless licenses portfolio was 5.3 years as of March&#xA0;31, 2017.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Goodwill</b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Changes in the carrying amount of Goodwill are as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Wireless</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Wireline</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Other</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Total</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Balance at January&#xA0;1, 2017</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">18,393</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,784</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">5,028</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">27,205</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Acquisitions (Note 2)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">418</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">420</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Reclassifications, adjustments and other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">5</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="13"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Balance at March&#xA0;31, 2017</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#xA0;&#xA0;18,393</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#xA0;&#xA0;4,205</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#xA0;&#xA0;5,032</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#xA0;&#xA0;27,630</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="13"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">During the first quarter of 2017, we recognized goodwill of $0.4&#xA0;billion in Wireline as a result of the acquisition of XO (see Note 2 for additional information).</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Other Intangible Assets</b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The following table displays the composition of Other intangible assets, net:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="80%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="10" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>At March&#xA0;31, 2017</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="10" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">At December&#xA0;31, 2016</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Gross<br /> Amount</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Accumulated<br /> Amortization</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Net<br /> Amount</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Gross<br /> Amount</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Accumulated<br /> Amortization</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Net<br /> Amount</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Customer lists (8 to 10 years)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,163</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(548</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2,615</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2,884</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(480</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2,404</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><font style="WHITE-SPACE: nowrap">Non-network</font>&#xA0;<font style="WHITE-SPACE: nowrap">internal-use</font><br /> software (5 to 7 years)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">16,459</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(11,251</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">5,208</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">16,135</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(10,913</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">5,222</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other (6 to 25 years)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,707</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(618</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,089</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,854</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(583</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,271</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="21"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Total</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#xA0;&#xA0;21,329</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#xA0;&#xA0;(12,417</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#xA0;&#xA0;8,912</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#xA0;&#xA0;20,873</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#xA0;&#xA0;(11,976</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#xA0;&#xA0;8,897</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="21"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">We recognized other intangible assets of $0.3&#xA0;billion (primarily customer lists) in Wireline as a result of the acquisition of XO (see Note&#xA0;2 for additional information).</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The amortization expense for Other intangible assets was as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="81%"></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Three&#xA0;Months&#xA0;Ended<br /> March&#xA0;31,</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2017</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;452</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2016</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">435</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The estimated future amortization expense for Other intangible assets is as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="84%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Years</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars&#xA0;in&#xA0;millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Remainder of 2017</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;1,438</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2018</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,632</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2019</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,409</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2020</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,168</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2021</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">985</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 18px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> </div> <div> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="break-inside: avoid"> <td valign="top" width="4%" align="left"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>1.</b></font></td> <td valign="top" align="left"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Basis of Presentation</b></font></p> </td> </tr> </table> <p style="MARGIN-BOTTOM: 2px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; BORDER-BOTTOM: rgb(0,0,0) 1pt solid; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; LINE-HEIGHT: 3px; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The accompanying unaudited condensed consolidated financial statements have been prepared based upon Securities and Exchange Commission (SEC) rules that permit reduced disclosure for interim periods. For a more complete discussion of significant accounting policies and certain other information, you should refer to the financial statements included in the Verizon Communications Inc. (Verizon or the Company) Annual Report on Form&#xA0;<font style="WHITE-SPACE: nowrap">10-K</font>&#xA0;for the year ended December&#xA0;31, 2016. These financial statements reflect all adjustments that are necessary for a fair presentation of results of operations and financial condition for the interim periods shown, including normal recurring accruals and other items. The results for the interim periods are not necessarily indicative of results for the full year. We have reclassified certain prior year amounts to conform to the current year presentation.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Earnings Per Common Share</b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">There were a total of approximately 5&#xA0;million outstanding dilutive securities, primarily consisting of restricted stock units, included in the computation of diluted earnings per common share for the three months ended March&#xA0;31, 2017 and 2016, respectively. There were no outstanding options to purchase shares that would have been anti-dilutive for the three months ended March&#xA0;31, 2017 and 2016, respectively.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Recently Adopted Accounting Standards</b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">In January 2017, the accounting standard update related to the simplification of the accounting for goodwill impairment was issued. The amendments in this update eliminate the requirement to perform step two of the goodwill impairment test, which requires a hypothetical purchase price allocation when an impairment is determined to have occurred. A goodwill impairment will now be the amount by which a reporting unit&#x2019;s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This standard update is effective as of the first quarter of 2020; however, early adoption is permitted for any interim or annual impairment tests performed after January&#xA0;1, 2017. Verizon early adopted this standard as of January&#xA0;1, 2017.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">In March 2016, the accounting standard update related to employee share-based payment accounting was issued. This standard update intends to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This standard update is effective as of the first quarter of 2017. The adoption of this standard update did not have a significant impact on our condensed consolidated financial statements.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Recently Issued Accounting Standards</b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">In March 2017, the accounting standard update related to the presentation of net periodic pension cost and net periodic postretirement benefit cost was issued. The amendments in this update require an employer to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost, including the recognition of prior service credits, will be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The amendments in this update also allow only the service cost component of pension and other postretirement benefit costs to be eligible for capitalization when applicable. The amendments in this update would be applied retrospectively for the presentation of the service cost component and other components of net periodic benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic benefit cost in assets. Disclosures of the nature of and reason for the change in accounting principle would be required in the first interim and annual reporting periods of adoption. This standard update is effective as of the first quarter of 2018; however, early adoption is permitted as of the beginning of an annual period for which financial statements have not been issued. The impact of the retrospective adoption of this standard update will be an increase to consolidated operating income of approximately $2.2&#xA0;billion and no impact to consolidated net income for the year ended December&#xA0;31, 2016.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">In February 2017, the accounting standard to clarify the derecognition of nonfinancial assets and in substance nonfinancial assets to noncustomers, including partial sales, was issued. The new guidance defines an &#x201C;in substance nonfinancial asset&#x201D; as an asset or group of assets for which substantially all of the fair value consists of nonfinancial assets and the group or subsidiary is not a business. The standard requires entities to derecognize nonfinancial assets or in substance nonfinancial assets when the entity no longer has (or ceases to have) a controlling financial interest in the legal entity that holds the asset and the entity transfers control of the asset. The standard update also unifies guidance related to partial sales of nonfinancial assets to be more consistent with the sale of a business. This standard update is effective as of the first quarter of 2018; however, early adoption is permitted. We are currently evaluating the impact that this standard update will have on our condensed consolidated financial statements.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">In January 2017, the accounting standard update to provide clarification on the definition of a business was issued. The amendments in this update provide a framework, the screen, in which to evaluate whether a set of transferred assets and activities is a business. The screen requires that the set is not a business when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. The standard also aligns the definition of outputs with how outputs are described in ASC 606. This standard is effective as of the first quarter of 2018; however, early adoption is permitted. We are currently evaluating the impact that this standard update will have on our condensed consolidated financial statements.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">In November 2016, the accounting standard update related to the classification and presentation of changes in restricted cash was issued. The amendments in this update require that cash and cash equivalent balances in a statement of cash flows include those amounts deemed to be restricted cash and restricted cash equivalents. This standard update is effective as of the first quarter of 2018; however, early adoption is permitted. We are currently evaluating the impact that this standard update will have on our condensed consolidated financial statements.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">In August 2016, the accounting standard update related to the classification of certain cash receipts and cash payments was issued. This standard update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice for these issues. Among the updates, this standard update requires cash receipts from payments on a transferor&#x2019;s beneficial interests in securitized trade receivables to be classified as cash inflows from investing activities. This standard update is effective as of the first quarter of 2018; however, early adoption is permitted. We are currently evaluating the impact that this standard update will have on our condensed consolidated financial statements. We expect the amendment relating to beneficial interests in securitization transactions will have an impact on our presentation of collections of the deferred purchase price from sales of wireless device payment plan agreement receivables in our condensed consolidated statements of cash flows. Upon adoption of this standard update in the first quarter of 2018, we expect to retrospectively reclassify approximately $1.1&#xA0;billion of collections of deferred purchase price related to collections from customers for the year ended December&#xA0;31, 2016 from Cash flows from operating activities to Cash flows from investing activities in our consolidated statements of cash flows.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">In June 2016, the accounting standard update related to the measurement of credit losses was issued. This standard update requires that certain financial assets be measured at amortized cost net of an allowance for estimated credit losses such that the net receivable represents the present value of expected cash collection. In addition, this standard update requires that certain financial assets be measured at amortized cost reflecting an allowance for estimated credit losses expected to occur over the life of the assets. The estimate of credit losses must be based on all relevant information including historical information, current conditions and reasonable and supportable forecasts that affect the collectability of the amounts. This standard update is effective as of the first quarter of 2020; however, early adoption is permitted. We are currently evaluating the impact that this standard update will have on our condensed consolidated financial statements.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">In February 2016, the accounting standard update related to leases was issued. This standard update intends to increase transparency and improve comparability by requiring entities to recognize assets and liabilities on the balance sheet for all leases, with certain exceptions. In addition, through improved disclosure requirements, the standard update will enable users of financial statements to further understand the amount, timing, and uncertainty of cash flows arising from leases. This standard update is effective as of the first quarter of 2019; however, early adoption is permitted. Verizon&#x2019;s current operating lease portfolio is primarily comprised of network, real estate, and equipment leases. Upon adoption of this standard, we expect our balance sheet to include a right of use asset and liability related to substantially all operating lease arrangements. We have established a cross-functional coordinated implementation team to implement the standard update related to leases. We are in the process of assessing the impact to our systems, processes and internal controls to meet the standard update&#x2019;s reporting and disclosure requirements.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">In May 2014, the accounting standard update related to the recognition of revenue from contracts with customers was issued. This standard update along with related subsequently issued updates clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. generally accepted accounting principles (GAAP). The standard update also amends current guidance for the recognition of costs to obtain and fulfill contracts with customers such that incremental costs of obtaining and direct costs of fulfilling contracts with customers will be deferred and amortized consistent with the transfer of the related good or service. The standard update intends to provide a more robust framework for addressing revenue issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; and provide more useful information to users of financial statements through improved disclosure requirements. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized at the earliest period shown, or the modified retrospective method, in which case the standard is applied only to the most current period presented and the cumulative effect of applying the standard would be recognized at the date of initial application. In August 2015, an accounting standard update was issued that delayed the effective date of this standard until the first quarter of 2018, at which time we plan to adopt the standard using the modified retrospective approach.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">We are in the process of evaluating the impact of the standard update. The ultimate impact on revenue resulting from the application of the new standard will be subject to assessments that are dependent on many variables, including, but not limited to, the terms of our contractual arrangements and our mix of business. Upon adoption, we expect that the allocation of revenue between equipment and service for our wireless fixed-term service plans will result in more revenue allocated to equipment and recognized earlier as compared with current GAAP. We expect the timing of recognition of our sales commission expenses will also be impacted, as a substantial portion of these costs, which are currently expensed, will be capitalized and amortized as described above. In 2016, total sales commission expenses were approximately $4.2&#xA0;billion. In 2017, we expect total sales commission expenses to decline as our wireless customers continue to migrate from our fixed-term service plans to device payment plans which have lower commission structures.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">We have established a cross-functional coordinated implementation team to implement the standard update related to the recognition of revenue from contracts with customers. We have identified and are in the process of implementing changes to our systems, processes and internal controls to meet the standard update&#x2019;s reporting and disclosure requirements.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 18px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> </div> <div> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Changes to debt during the three months ended March&#xA0;31, 2017 are as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Debt&#xA0;Maturing<br /> within&#xA0;One&#xA0;Year</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b><font style="WHITE-SPACE: nowrap">Long-term</font><br /> Debt</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Total</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Balance at January&#xA0;1, 2017</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;2,645</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;105,433</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;108,078</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Proceeds from long-term borrowings</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">65</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">12,989</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">13,054</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Proceeds from asset-backed long-term borrowings</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,283</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,283</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Repayments of long-term borrowings and capital leases obligations</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(201</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(5,391</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(5,592</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Decrease in short-term obligations, excluding current maturities</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(52</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(52</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Reclassifications of long-term debt</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,165</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(1,165</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">85</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(310</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(225</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="9"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Balance at March&#xA0;31, 2017</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,707</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">112,839</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">116,546</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="9"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> </div> <div> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The following table sets forth the notional amounts of our outstanding derivative instruments:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>At&#xA0;March&#xA0;31,&#xA0;2017</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">At&#xA0;December&#xA0;31,&#xA0;2016</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Notional&#xA0;Amount</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Notional<b>&#xA0;</b>Amount</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Interest rate swaps</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">16,595</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">13,099</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Cross currency swaps</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">12,890</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">12,890</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Interest rate caps</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2,540</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2,540</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> </div> <div> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The following table summarizes the Restricted Stock Unit and Performance Stock Unit activity:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(shares in thousands)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Restricted<br /> Stock&#xA0;Units</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Performance<br /> Stock&#xA0;Units</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Outstanding, January&#xA0;1, 2017</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">13,308</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">17,919</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Granted</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">5,105</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">5,837</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Payments</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(4,826</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(6,031</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Cancelled/Forfeited</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(44</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(147</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Outstanding, March&#xA0;31, 2017</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">13,543</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">17,578</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify">&#xA0;</p> </div> <div> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The assets and liabilities related to our asset-backed debt arrangements included on our condensed consolidated balance sheets were as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>At&#xA0;March&#xA0;31,<br /> 2017</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">At&#xA0;December&#xA0;31,<br /> 2016</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Assets</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Account receivable, net</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;4,628</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;3,383</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Prepaid expenses and other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">298</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">236</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2,574</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2,383</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="16"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Liabilities</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Accounts payable and accrued liabilities</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">4</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Long-term debt</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6,272</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">4,988</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify">&#xA0;</p> </div> <div> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The estimated future amortization expense for Other intangible assets is as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt"> </p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="84%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Years</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars&#xA0;in&#xA0;millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Remainder of 2017</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;1,438</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2018</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,632</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2019</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,409</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2020</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,168</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2021</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">985</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 18px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> </div> <div> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Changes in the carrying amount of Goodwill are as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Wireless</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Wireline</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Other</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Total</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Balance at January&#xA0;1, 2017</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">18,393</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,784</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">5,028</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">27,205</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Acquisitions (Note 2)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">418</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">420</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Reclassifications, adjustments and other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">5</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="13"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Balance at March&#xA0;31, 2017</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#xA0;&#xA0;18,393</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#xA0;&#xA0;4,205</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#xA0;&#xA0;5,032</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#xA0;&#xA0;27,630</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="13"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify">&#xA0;</p> </div> 0.5775 --12-31 <div> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="break-inside: avoid"> <td valign="top" width="4%" align="left"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>4.</b></font></td> <td valign="top" align="left"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Debt</b></font></p> </td> </tr> </table> <p style="MARGIN-BOTTOM: 2px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; BORDER-BOTTOM: rgb(0,0,0) 1pt solid; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; LINE-HEIGHT: 3px; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Changes to debt during the three months ended March&#xA0;31, 2017 are as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Debt&#xA0;Maturing<br /> within&#xA0;One&#xA0;Year</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b><font style="WHITE-SPACE: nowrap">Long-term</font><br /> Debt</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Total</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Balance at January&#xA0;1, 2017</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;2,645</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;105,433</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;108,078</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Proceeds from long-term borrowings</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">65</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">12,989</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">13,054</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Proceeds from asset-backed long-term borrowings</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,283</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,283</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Repayments of long-term borrowings and capital leases obligations</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(201</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(5,391</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(5,592</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Decrease in short-term obligations, excluding current maturities</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(52</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(52</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Reclassifications of long-term debt</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,165</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(1,165</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">85</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(310</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(225</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="9"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Balance at March&#xA0;31, 2017</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,707</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">112,839</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">116,546</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="9"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>January Exchange Offers and Cash Offers</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">On January&#xA0;25, 2017, we commenced eighteen separate private offers to exchange (the January Exchange Offers) specified series of outstanding Notes issued by Verizon Communications (the Old Notes) for new Notes to be issued by Verizon Communications and, for certain series, cash. In connection with the January Exchange Offers, which expired on January&#xA0;31, 2017 and settled on February&#xA0;3, 2017, we issued $3.2&#xA0;billion aggregate principal amount of Verizon Communications 2.946% Notes due 2022 (the 2022 New Notes), $1.7&#xA0;billion aggregate principal amount of Verizon Communications 4.812% Notes due 2039 (the 2039 New Notes) and $4.1&#xA0;billion aggregate principal amount of Verizon Communications 5.012% Notes due 2049 (the 2049 New Notes) plus applicable cash of $0.6&#xA0;billion (not including accrued and unpaid interest on the Old Notes) in exchange for $8.3&#xA0;billion aggregate principal amount of tendered Old Notes.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">We concurrently commenced eighteen separate offers to purchase for cash (the January Cash Offers) the Old Notes. In connection with the January Cash Offers, which expired on January&#xA0;31, 2017 and settled on February&#xA0;3, 2017, we repurchased $0.5&#xA0;billion aggregate principal amount of Old Notes for $0.5&#xA0;billion, exclusive of accrued interest. On February&#xA0;10, 2017, we purchased for $0.1&#xA0;billion, exclusive of accrued interest, an additional $0.1&#xA0;billion of Old Notes (the &#x201C;subsequent cash purchases&#x201D;) from certain holders whose tenders of Old Notes in the January Cash Offers had been rejected.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The table below lists the series of Old Notes included in the January Exchange Offers for the 2022 New Notes and the January Cash Offers, referred to as Group 1:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="86%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Interest<br /> Rate</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Maturity</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Principal<br /> Amount<br /> Outstanding</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Principal<br /> Amount<br /> Accepted&#xA0;for<br /> Exchange</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Principal<br /> Amount<br /> Accepted&#xA0;for<br /> Cash&#xA0;<font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1"><sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex">(1)</sup></font></b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Verizon Communications Inc.</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">5.500</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2018</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">737</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">83</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">8</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6.100</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2018</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">753</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">77</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">9</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3.650</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2018</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2,698</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">508</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">97</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2.550</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2019</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">500</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">154</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">35</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1.375</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2019</font></td> <td valign="bottom" 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&quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">38</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2.625</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" 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Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="break-inside: avoid"> <td valign="top" width="2%" align="left"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1"><sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex">(1)</sup>&#xA0;</font></td> <td valign="top" align="left"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Includes amounts acquired pursuant to the 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-webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="86%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Interest<br /> Rate</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Maturity</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Principal<br /> Amount<br /> Outstanding</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Principal<br /> Amount<br /> Accepted&#xA0;for<br /> Exchange</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Principal<br /> Amount<br /> Accepted&#xA0;for<br /> Cash&#xA0;<font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1"><sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex">(1)</sup></font></b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Verizon Communications Inc.</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">5.150</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2023</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">8,517</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">715</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">217</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7.750</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2030</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">930</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">184</font></td> <td valign="bottom" nowrap="nowrap"><font 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size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2032</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">218</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New 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size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">640</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom" colspan="5"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;1,541</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;227</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="break-inside: avoid"> <td valign="top" width="2%" align="left"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1"><sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex">(1)</sup>&#xA0;</font></td> <td valign="top" align="left"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Includes amounts acquired pursuant to the subsequent cash purchases.</font></p> </td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The table below lists the series of Old Notes included in the January Exchange Offers for the 2049 New Notes and the January Cash Offers, referred to as Group 3:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="86%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Interest<br /> Rate</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Maturity</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Principal<br /> Amount<br /> Outstanding</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Principal<br /> Amount<br /> Accepted&#xA0;for<br /> Exchange</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" 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&quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2035</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;1,250</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">447</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">4</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6.250</font></td> <td 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style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">189</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">5</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6.400</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2038</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">750</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">228</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6.900</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2038</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">384</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">111</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">4</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">8.950</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2039</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">290</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">48</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7.350</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2039</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">412</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">225</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6.000</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2041</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,000</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">480</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">20</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6.550</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2043</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td 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valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;3,661</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;86</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="break-inside: avoid"> <td valign="top" width="2%" align="left"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1"><sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex">(1)</sup>&#xA0;</font></td> <td valign="top" align="left"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Includes amounts acquired pursuant to the subsequent cash purchases.</font></p> </td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>Term Loan Credit Agreements</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">During January 2017, we entered into a term loan credit agreement with a syndicate of major financial institutions pursuant to which we could borrow up to $5.5&#xA0;billion for (i)&#xA0;the acquisition of Yahoo and (ii)&#xA0;general corporate purposes. Borrowings under the term loan credit agreement would mature 18 months following the funding date, with a partial mandatory prepayment required within six months following the funding date. None of the $5.5&#xA0;billion borrowing capacity was used during the three months ended March&#xA0;31, 2017. 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During April 2017, we repaid the remaining outstanding amount under the term loan agreement.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>March Tender Offer</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">On March&#xA0;13, 2017, we announced the commencement of a tender offer (the March Tender Offer) to purchase for cash any and all of the series of notes listed below. 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In addition to the purchase price, any accrued and unpaid interest on the purchased notes was paid to the date of purchase.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="86%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions, except for Purchase Price)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Interest<br /> Rate</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Maturity</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Principal<br /> Amount<br /> Outstanding</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Purchase</b></font></p> <p style="MARGIN-BOTTOM: 1px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Price<font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1"><sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex">&#xA0;(1)</sup></font></b></font></p> </td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Principal<br /> Amount<br /> Purchased</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Verizon Communications Inc.</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">8.950</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2039</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">242</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;1,537.18</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">131</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7.750</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2032</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times 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valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2038</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">270</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,273.29</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" 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style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2030</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">742</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,379.04</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">160</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6.400</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font 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valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,189.56</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">103</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">5.850</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2035</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">800</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,151.79</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">249</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: 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valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6.100</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2018</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">667</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" 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valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;3,119</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="break-inside: avoid"> <td valign="top" width="2%" align="left"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1"><sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex">(1)</sup>&#xA0;</font></td> <td valign="top" align="left"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Per $1,000 principal amount of notes tendered.</font></p> </td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>Debt Issuances and Redemptions</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">During February 2017, we redeemed $0.2&#xA0;billion of the $0.6&#xA0;billion 6.94% GTE LLC Notes due 2028 at 124.8% of the principal amount of the notes redeemed (see &#x201C;Early Debt Redemptions&#x201D;).</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">During February 2017, we issued approximately $1.5&#xA0;billion aggregate principal amount of 4.95% Notes due 2047. The issuance of these notes resulted in cash proceeds of approximately $1.5&#xA0;billion, net of discounts and issuance costs and after reimbursement of certain expenses. The net proceeds were used for general corporate purposes.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">During March 2017, we issued $11.0&#xA0;billion aggregate principal amount of fixed and floating rate notes. The issuance of these notes resulted in cash proceeds of approximately $10.9&#xA0;billion, net of discounts and issuance costs and after reimbursement of certain expenses. The issuance consisted of the following series of notes: $1.4&#xA0;billion aggregate principal amount of Verizon Communications Floating Rate Notes due 2022, $1.85&#xA0;billion aggregate principal amount of Verizon Communications 3.125% Notes due 2022, $3.25&#xA0;billion aggregate principal amount of Verizon Communications 4.125% Notes due 2027, $3.0&#xA0;billion aggregate principal amount of Verizon Communications 5.250% Notes due 2037, and $1.5&#xA0;billion aggregate principal amount of Verizon Communications 5.500% Notes due 2047. The floating rate notes bear interest at a rate equal to the three-month LIBOR plus 1.000% which rate will be reset quarterly. The net proceeds were primarily used for the tender offer and general corporate purposes, including discretionary contributions to our qualified pension plans. We intend to use the remaining net proceeds for the financing, in whole or in part, of our pending acquisition of Yahoo.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">On April&#xA0;24, 2017, we redeemed in whole $0.5&#xA0;billion aggregate principal amount of Verizon Communications 6.100% Notes due 2018 at 104.5% of the principal amount of such notes and $0.5&#xA0;billion aggregate principal amount of Verizon Communications 5.50% Notes due 2018 at 103.3% of the principal amount of such notes, plus accrued and unpaid interest to the date of redemption.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>Asset-Backed Debt</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">As of March&#xA0;31, 2017, the carrying value of our asset-backed debt was $6.3&#xA0;billion. Our asset-backed debt includes notes (the Asset-Backed Notes) issued to third-party investors (Investors) and loans (ABS Financing Facility) received from banks and their conduit facilities (collectively, the Banks). Our consolidated asset-backed securitization bankruptcy remote legal entities (each, an ABS Entity or collectively, the ABS Entities) issue the debt or are otherwise party to the transaction documentation in connection with our asset-backed debt transactions. Under the terms of our asset-backed debt, we transfer device payment plan agreement receivables from Cellco Partnership and certain other affiliates of Verizon (collectively, the Originators) to one of the ABS Entities, which in turn transfers such receivables to another ABS Entity that issues the debt. Verizon entities retain the equity interests in the ABS Entities, which represent the rights to all funds not needed to make required payments on the asset-backed debt and other related payments and expenses.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Our asset-backed debt is secured by the transferred device payment plan agreement receivables and future collections on such receivables. The device payment plan agreement receivables transferred to the ABS Entities and related assets, consisting primarily of restricted cash, will only be available for payment of asset-backed debt and expenses related thereto, payments to the Originators in respect of additional transfers of device payment plan agreement receivables, and other obligations arising from our asset-backed debt transactions, and will not be available to pay other obligations or claims of Verizon&#x2019;s creditors until the associated asset-backed debt and other obligations are satisfied. The Investors or Banks, as applicable, which hold our asset-backed debt have legal recourse to the assets securing the debt, but do not have any recourse to Verizon with respect to the payment of principal and interest on the debt. Under a parent support agreement, Verizon has agreed to guarantee certain of the payment obligations of Cellco Partnership and the Originators to the ABS Entities.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Cash collections on the device payment plan agreement receivables are required at certain specified times to be placed into segregated accounts. Deposits to the segregated accounts are considered restricted cash and are included in Prepaid expenses and other and Other assets on our condensed consolidated balance sheets.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Proceeds from our asset-backed debt transactions, deposits to the segregated accounts and payments to the Originators in respect of additional transfers of device payment plan agreement receivables are reflected in Cash flows from financing activities in our condensed consolidated statements of cash flows. Repayments of our asset-backed debt and related interest payments made from the segregated accounts are&#xA0;<font style="WHITE-SPACE: nowrap">non-cash</font>&#xA0;activities and therefore not reflected within Cash flows from financing activities in our condensed consolidated statements of cash flows. The asset-backed debt issued and the assets securing this debt are included on our condensed consolidated balance sheets.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>Asset-Backed Notes</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">In March 2017, we issued approximately $1.3&#xA0;billion aggregate principal amount of senior and junior Asset-Backed Notes through an ABS Entity. The Class&#xA0;A senior asset-backed notes have an expected weighted-average life of about 2.6 years and bear interest at 2.06% per annum, the Class&#xA0;B junior asset-backed notes have an expected weighted-average life of about 3.38 years and bear interest at 2.45% per annum and the Class&#xA0;C junior asset-backed notes have an expected weighted-average life of about 3.64 years and bear interest at 2.65% per annum.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Under the terms of the asset-backed notes, there is a&#xA0;<font style="WHITE-SPACE: nowrap">two-year</font>&#xA0;revolving period during which we may transfer additional receivables to the ABS Entity.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>ABS Financing Facility</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">As of March&#xA0;31, 2017, outstanding borrowings under the ABS Financing Facility were approximately $2.5&#xA0;billion. We had the option to request an additional $0.5&#xA0;billion of committed funding, which was not exercised and expired on March&#xA0;31, 2017. There is a two year revolving period, which may be extended, during which we may transfer additional receivables to the ABS Entity. Subject to certain conditions, we may also remove receivables from the ABS Entity.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Although the ABS Financing Facility is fully drawn as of March&#xA0;31, 2017, we have the right to prepay all or a portion thereof at any time without penalty, but in certain cases, with breakage costs. If we choose to prepay, the amount prepaid shall be available for further drawdowns until September 2018, except in certain circumstances.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>Variable Interest Entities (VIEs)</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The ABS Entities meet the definition of a VIE for which we have determined that we are the primary beneficiary as we have both the power to direct the activities of the entity that most significantly impact the entity&#x2019;s performance and the obligation to absorb losses or the right to receive benefits of the entity. Therefore, the assets, liabilities and activities of the ABS Entities are consolidated in our financial results and are included in amounts presented on the face of our condensed consolidated balance sheets.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The assets and liabilities related to our asset-backed debt arrangements included on our condensed consolidated balance sheets were as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>At&#xA0;March&#xA0;31,<br /> 2017</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">At&#xA0;December&#xA0;31,<br /> 2016</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Assets</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Account receivable, net</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;4,628</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;3,383</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Prepaid expenses and other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">298</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">236</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2,574</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2,383</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="16"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Liabilities</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Accounts payable and accrued liabilities</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">4</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Long-term debt</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6,272</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">4,988</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">See Note 5 for additional information on device payment plan agreement receivables used to secure asset-backed debt.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>Credit Facilities</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">As of March&#xA0;31, 2017, the unused borrowing capacity under our $9.0&#xA0;billion credit facility was approximately $8.9&#xA0;billion. The credit facility does not require us to comply with financial covenants or maintain specified credit ratings, and it permits us to borrow even if our business has incurred a material adverse change. We use the credit facility for the issuance of letters of credit and for general corporate purposes.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">As of March&#xA0;31, 2017, the equipment credit facility insured by Eksportkreditnamnden Stockholm, Sweden (EKN), the Swedish export credit agency, was fully drawn. We had the ability to borrow up to $1.0&#xA0;billion to finance network equipment-related purchases. The facility had borrowings available through June 2017, contingent upon the amount of eligible equipment-related purchases made by Verizon.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>Additional Financing Activities&#xA0;<font style="WHITE-SPACE: nowrap">(Non-Cash</font>&#xA0;Transaction)</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">During the three months ended March&#xA0;31, 2017, we financed, primarily through vendor financing arrangements, the purchase of approximately $0.1&#xA0;billion of long-lived assets consisting primarily of network equipment. At March&#xA0;31, 2017, $1.2&#xA0;billion relating to vendor financing arrangements, including those entered into in prior years and liabilities assumed through acquisitions, remained outstanding. These purchases are&#xA0;<font style="WHITE-SPACE: nowrap">non-cash</font>&#xA0;financing activities and therefore not reflected within Capital expenditures on our condensed consolidated statements of cash flows.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>Early Debt Redemptions</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">During the first quarter of 2017, we recorded a net&#xA0;<font style="WHITE-SPACE: nowrap">pre-tax</font>&#xA0;loss on early debt redemption of $0.8&#xA0;billion primarily in connection with the January Cash Offers and the March Tender Offer.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">We recognize early debt redemption costs in Other income and (expense), net on our condensed consolidated statements of income.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>Guarantees</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">We guarantee the debentures of our operating telephone company subsidiaries. As of March&#xA0;31, 2017, $1.0&#xA0;billion aggregate principal amount of these obligations remained outstanding. Each guarantee will remain in place for the life of the obligation unless terminated pursuant to its terms, including the operating telephone company no longer being a wholly-owned subsidiary of Verizon.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">We also guarantee the debt obligations of GTE LLC as successor in interest to GTE Corporation that were issued and outstanding prior to July&#xA0;1, 2003. As of March&#xA0;31, 2017, $0.8&#xA0;billion aggregate principal amount of these obligations remain outstanding.</font></p> </div> 2017-03-31 0.85 Large Accelerated Filer <div> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="break-inside: avoid"> <td valign="top" width="4%" align="left"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>5.</b></font></td> <td valign="top" align="left"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Wireless Device Payment Plans</b></font></p> </td> </tr> </table> <p style="MARGIN-BOTTOM: 2px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; BORDER-BOTTOM: rgb(0,0,0) 1pt solid; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; LINE-HEIGHT: 3px; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Under the Verizon device payment program, our eligible wireless customers purchase wireless devices under a device payment plan agreement. Customers that activate service on devices purchased under the device payment program pay lower service fees as compared to those under our fixed-term service plans, and their device payment plan charge is included on their standard wireless monthly bill. As of January 2017, we no longer offer consumers fixed-term service plans for phones.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Wireless Device Payment Plan Agreement Receivables</b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The following table displays device payment plan agreement receivables, net, that continue to be recognized in our condensed consolidated balance sheets:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>At&#xA0;March&#xA0;31,<br /> 2017</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">At&#xA0;December&#xA0;31,<br /> 2016</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Device payment plan agreement receivables, gross</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;13,154</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;11,797</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Unamortized imputed interest</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(582</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(511</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Device payment plan agreement receivables, net of unamortized imputed interest</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">12,572</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">11,286</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Allowance for credit losses</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(685</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(688</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Device payment plan agreement receivables, net</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">11,887</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">10,598</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="16"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Classified on our condensed consolidated balance sheets:</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Accounts receivable, net</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7,436</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6,140</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">4,451</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">4,458</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Device payment plan agreement receivables, net</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">11,887</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">10,598</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Included in our device payment plan agreement receivables, net at March&#xA0;31, 2017 are net device payment plan agreement receivables of $7.1&#xA0;billion that have been transferred to ABS Entities and continue to be reported in our condensed consolidated balance sheet.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">We may offer our customers certain promotions where a customer can&#xA0;<font style="WHITE-SPACE: nowrap">trade-in</font>&#xA0;his or her owned device in connection with the purchase of a new device. Under these types of promotions, the customer will receive&#xA0;<font style="WHITE-SPACE: nowrap">trade-in</font>&#xA0;credits that are applied to the customer&#x2019;s monthly bill. As a result, we recognize a&#xA0;<font style="WHITE-SPACE: nowrap">trade-in</font>&#xA0;obligation measured at fair value using weighted-average selling prices obtained in recent resales of devices eligible for&#xA0;<font style="WHITE-SPACE: nowrap">trade-in.</font>&#xA0;Device payment plan agreement receivables, net does not reflect this&#xA0;<font style="WHITE-SPACE: nowrap">trade-in</font>&#xA0;obligation. At March&#xA0;31, 2017, the amount of&#xA0;<font style="WHITE-SPACE: nowrap">trade-in</font>&#xA0;obligations was not significant.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">From time to time, on select devices, certain marketing promotions have been revocably offered to customers to upgrade to a new device after paying down a certain specified portion of the required device payment plan agreement amount as well as trading in their device in good working order.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">At the time of the sale of a device, we impute risk adjusted interest on the device payment plan agreement receivables. We record the imputed interest as a reduction to the related accounts receivable. Interest income, which is included within Service revenues and other on our condensed consolidated statements of income, is recognized over the financed device payment term.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">When originating device payment plan agreements, we use internal and external data sources to create a credit risk score to measure the credit quality of a customer and to determine eligibility for the device payment program. If a customer is either new to Verizon Wireless or has less than 210 days of customer tenure with Verizon Wireless (a new customer), the credit decision process relies more heavily on external data sources. If the customer has 210 days or more of customer tenure with Verizon Wireless (an existing customer), the credit decision process relies on internal data sources. Verizon Wireless&#x2019; experience has been that the payment attributes of longer tenured customers are highly predictive when considering their ability to pay in the future. External data sources include obtaining a credit report from a national consumer credit reporting agency, if available. Verizon Wireless uses its internal data and/or credit data obtained from the credit reporting agencies to create a custom credit risk score. The custom credit risk score is generated automatically (except with respect to a small number of applications where the information needs manual intervention) from the applicant&#x2019;s credit data using Verizon Wireless&#x2019; proprietary custom credit models, which are empirically derived, demonstrably and statistically sound. The credit risk score measures the likelihood that the potential customer will become severely delinquent and be disconnected for&#xA0;<font style="WHITE-SPACE: nowrap">non-payment.</font>&#xA0;For a small portion of new customer applications, a traditional credit report is not available from one of the national credit reporting agencies because the potential customer does not have sufficient credit history. In those instances, alternate credit data is used for the risk assessment.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Based on the custom credit risk score, we assign each customer to a credit class, each of which has a specified required down payment percentage and specified credit limits. Device payment plan agreement receivables originated from customers assigned to credit classes requiring no down payment represent the lowest risk. Device payment plan agreement receivables originated from customers assigned to credit classes requiring a down payment represent a higher risk.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Subsequent to origination, Verizon Wireless monitors delinquency and&#xA0;<font style="WHITE-SPACE: nowrap">write-off</font>&#xA0;experience as key credit quality indicators for its portfolio of device payment plan agreements and fixed-term service plans. The extent of our collection efforts with respect to a particular customer are based on the results of proprietary custom empirically derived internal behavioral scoring models which analyze the customer&#x2019;s past performance to predict the likelihood of the customer falling further delinquent. These customer scoring models assess a number of variables, including origination characteristics, customer account history and payment patterns. Based on the score derived from these models, accounts are grouped by risk category to determine the collection strategy to be applied to such accounts. We continuously monitor collection performance results and the credit quality of our device payment plan agreement receivables based on a variety of metrics, including aging. Verizon Wireless considers an account to be delinquent and in default status if there are unpaid charges remaining on the account on the day after the bill&#x2019;s due date.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The balance and aging of the device payment plan agreement receivables on a gross basis were as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>At&#xA0;March&#xA0;31,<br /> 2017</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">At&#xA0;December&#xA0;31,<br /> 2016</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Unbilled</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;12,476</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;11,089</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Billed:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Current</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">552</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">557</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Past due</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">126</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">151</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Device payment plan agreement receivables, gross</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">13,154</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">11,797</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Activity in the allowance for credit losses for the device payment plan agreement receivables was as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>2017</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2016</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Balance at January&#xA0;1,</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;688</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;444</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Bad debt expense</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">151</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">163</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Write-offs</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(154</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(95</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Allowance related to receivables sold</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(2</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Balance at March&#xA0;31,</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">685</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">513</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Sales of Wireless Device Payment Plan Agreement Receivables</b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">During 2015 and 2016, we established programs pursuant to a Receivables Purchase Agreement, or RPA, to sell from time to time, on an uncommitted basis, eligible device payment plan agreement receivables to a group of primarily relationship banks (Purchasers) on both a revolving (Revolving Program) and&#xA0;<font style="WHITE-SPACE: nowrap">non-revolving</font>&#xA0;<font style="WHITE-SPACE: nowrap">(Non-Revolving</font>Program) basis. The receivables sold under the RPA are no longer considered assets of Verizon. The outstanding portfolio of device payment plan agreement receivables derecognized from our condensed&#xA0; consolidated balance sheets, but which we continue to service, was $2.7&#xA0;billion at March&#xA0;31, 2017 and $9.6&#xA0;billion at March&#xA0;31, 2016. At March&#xA0;31, 2017, the total portfolio of device payment plan agreement receivables, including derecognized device payment plan agreement receivables, that we are servicing was $15.8&#xA0;billion.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Under the&#xA0;<font style="WHITE-SPACE: nowrap">Non-Revolving</font>&#xA0;Program, we transfer the eligible receivables to wholly-owned subsidiaries that are bankruptcy remote special purpose entities (Sellers). The Sellers then sell the receivables to the Purchasers for upfront cash proceeds and additional consideration upon settlement of the receivables (the deferred purchase price). Under the Revolving Program, we sell eligible device payment plan agreement receivables on a revolving basis, subject to a maximum funding limit, to the Purchasers. Sales of eligible receivables by the Sellers, once initiated, generally occur and are settled on a monthly basis. Customer payments made towards receivables sold under the Revolving Program will be available to purchase additional eligible device payment plan agreement receivables originated during the revolving period. We elected to end the revolving period in July 2016.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">We continue to bill and collect on the receivables in exchange for a monthly servicing fee, which is not material. Eligible receivables under the RPA excluded device payment plan agreements where a new customer was required to provide a down payment. The sales of receivables under the RPA did not have a material impact on our condensed consolidated statements of income. The cash proceeds received from the Purchasers were recorded within Cash flows provided by operating activities on our condensed consolidated statements of cash flows.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">There were no sales of device payment plan agreement receivables under the Revolving Program or the&#xA0;<font style="WHITE-SPACE: nowrap">Non-Revolving</font>&#xA0;Program during the three months ended March&#xA0;31, 2017. During the three months ended March&#xA0;31, 2016, we sold $2.6&#xA0;billion of receivables, net of allowances and imputed interest, under the Revolving Program. We received cash proceeds from new transfers of $2.0&#xA0;billion and cash proceeds from reinvested collections of $0.2&#xA0;billion and recorded a deferred purchase price of $0.4&#xA0;billion.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>Deferred Purchase Price</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Under the RPA, the deferred purchase price was initially recorded at fair value, based on the remaining device payment amounts expected to be collected, adjusted, as applicable, for the time value of money and by the timing and estimated value of the device&#xA0;<font style="WHITE-SPACE: nowrap">trade-in</font>&#xA0;in connection with upgrades. The estimated value of the device&#xA0;<font style="WHITE-SPACE: nowrap">trade-in</font>&#xA0;considers prices expected to be offered to us by independent third parties. This estimate contemplates changes in value after the launch of a device. The fair value measurements are considered to be Level&#xA0;3 measurements within the fair value hierarchy. The collection of the deferred purchase price is contingent on collections from customers. During the three months ended March&#xA0;31, 2017 and 2016, we have collected $0.3&#xA0;billion and an insignificant amount, respectively, which was returned as deferred purchase price and recorded within Cash flows provided by operating activities on our condensed consolidated statements of cash flows. Collections, which were returned as deferred purchase price and recorded within Cash flows provided by investing activities on our condensed consolidated statements of cash flows were not significant during the three months ended March&#xA0;31, 2017 and 2016, respectively.&#xA0;At March&#xA0;31, 2017, our deferred purchase price receivable, which is held by the Sellers, was comprised of $1.4&#xA0;billion included within Prepaid expenses and other in our condensed consolidated balance sheet. At December&#xA0;31, 2016, our deferred purchase price receivable was comprised of $1.2&#xA0;billion included within Prepaid expenses and other and $0.4&#xA0;billion included within Other assets in our condensed consolidated balance sheet.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>Variable Interest Entities (VIEs)</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Under the RPA, the Sellers&#x2019; sole business consists of the acquisition of the receivables from Cellco Partnership and certain other affiliates of Verizon and the resale of the receivables to the Purchasers. The assets of the Sellers are not available to be used to satisfy obligations of any Verizon entities other than the Sellers. We determined that the Sellers are VIEs as they lack sufficient equity to finance their activities. Given that we have the power to direct the activities of the Sellers that most significantly impact the Sellers&#x2019; economic performance, we are deemed to be the primary beneficiary of the Sellers. As a result, we consolidate the assets and liabilities of the Sellers into our condensed consolidated balance sheet.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>Continuing Involvement</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Verizon has continuing involvement with the sold receivables as it services the receivables. We continue to service the customer and their related receivables on behalf of the Purchasers, including facilitating customer payment collection, in exchange for a monthly servicing fee. While servicing the receivables, the same policies and procedures are applied to the sold receivables that apply to owned receivables, and we continue to maintain normal relationships with our customers. The credit quality of the customers we continue to service is consistent throughout the periods presented. To date, we have collected and remitted approximately $8.5&#xA0;billion, net of fees. To date, cash proceeds received, net of remittances, were $1.6&#xA0;billion. Credit losses on receivables sold were immaterial during the three months ended March&#xA0;31, 2017 and 2016, respectively.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">In addition, we have continuing involvement related to the sold receivables as we may be responsible for absorbing additional credit losses pursuant to the agreements. The Company&#x2019;s maximum exposure to loss related to the involvement with the Sellers is limited to the amount of the outstanding deferred purchase price, which was $1.4&#xA0;billion as of March&#xA0;31, 2017. The maximum exposure to loss represents an estimated loss that would be incurred under severe, hypothetical circumstances whereby the Company would not receive the portion of the proceeds withheld by the Purchasers. As we believe the probability of these circumstances occurring is remote, the maximum exposure to loss is not an indication of the Company&#x2019;s expected loss.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 18px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> </div> <div> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The amortization expense for Other intangible assets was as follows:</font></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> </p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="81%"></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Three&#xA0;Months&#xA0;Ended<br /> March&#xA0;31,</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2017</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;452</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2016</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">435</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></p> </div> 5000000 1681000000 <div> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="break-inside: avoid"> <td valign="top" width="4%" align="left"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>8.</b></font></td> <td valign="top" align="left"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Employee Benefits</b></font></p> </td> </tr> </table> <p style="MARGIN-BOTTOM: 2px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; BORDER-BOTTOM: rgb(0,0,0) 1pt solid; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; LINE-HEIGHT: 3px; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">We maintain&#xA0;<font style="WHITE-SPACE: nowrap">non-contributory</font>&#xA0;defined benefit pension plans for many of our employees. In addition, we maintain postretirement health care and life insurance plans for certain retirees and their dependents, which are both contributory and&#xA0;<font style="WHITE-SPACE: nowrap">non-contributory,</font>&#xA0;and include a limit on our share of the cost for certain recent and future retirees. In accordance with our accounting policy for pension and other postretirement benefits, operating expenses include pension and benefit related credits and/or charges based on actuarial assumptions, including projected discount rates and an estimated return on plan assets. These estimates are updated in the fourth quarter or upon a remeasurement event to reflect actual return on plan assets and updated actuarial assumptions. The adjustment will be recognized in our consolidated statement of income during the fourth quarter or upon a remeasurement event pursuant to our accounting policy for the recognition of actuarial gains and losses.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Net Periodic Cost</b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The following table summarizes the benefit (income) cost related to our pension and postretirement health care and life insurance plans:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="84%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="6" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Pension</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="6" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Health&#xA0;Care&#xA0;and&#xA0;Life</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Three Months Ended March&#xA0;31,</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2017</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2016</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2017</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2016</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Service cost</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">70</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">80</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">37</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">61</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Amortization of prior service cost (credit)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">10</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(1</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(235</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(73</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Expected return on plan assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(316</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;(271</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(13</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(15</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Interest cost</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">171</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">186</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">165</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">224</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Remeasurement loss, net</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">165</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="13"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Net periodic benefit (income) cost</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(65</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">159</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(46</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;197</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="13"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Severance, Pension and Benefit Charges</b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">During the three months ended March&#xA0;31, 2016, we recorded a net&#xA0;<font style="WHITE-SPACE: nowrap">pre-tax</font>&#xA0;pension remeasurement charge of approximately $0.2&#xA0;billion in accordance with our accounting policy to recognize actuarial gains and losses in the period in which they occur. The pension remeasurement charge relates to settlements for employees who received&#xA0;<font style="WHITE-SPACE: nowrap">lump-sum</font>distributions in one of Verizon&#x2019;s seven defined benefit pension plans. The pension remeasurement charge was primarily driven by a decrease in our discount rate assumption used to determine the current year liabilities of this pension plan. Our weighted-average&#xA0; discount rate assumption decreased from 4.60% at December&#xA0;31, 2015 to 4.21% at March&#xA0;31, 2016.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Severance Payments</b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">During the three months ended March&#xA0;31, 2017, we paid severance benefits of $0.2&#xA0;billion. At March&#xA0;31, 2017, we had a remaining severance liability of $0.5&#xA0;billion, a portion of which includes future contractual payments to employees separated as of March&#xA0;31, 2017.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Employer Contributions</b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">During the three months ended March&#xA0;31, 2017, we contributed $3.6&#xA0;billion to our qualified pension plans, which included $3.4&#xA0;billion of discretionary contributions. The discretionary contribution together with previous estimates of $0.6&#xA0;billion for minimum contributions result in an expected $4.0&#xA0;billion in pension funding to qualified plans in 2017. The contributions to our nonqualified pension plans were not material during the three months ended March&#xA0;31, 2017. There have been no material changes with respect to the nonqualified pension and other postretirement benefit plans contributions in 2017 as previously disclosed in Part II. Item 7 &#x201C;Management&#x2019;s Discussion and Analysis of Financial Condition and Results of Operations&#x201D; in our Annual Report on Form&#xA0;<font style="WHITE-SPACE: nowrap">10-K</font>&#xA0;for the year ended December&#xA0;31, 2016.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> </div> <div> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Changes in the carrying amount of Wireless licenses are as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="86%"></td> <td valign="bottom" width="10%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> &#xA0;<font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars&#xA0;in&#xA0;millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Balance at January&#xA0;1, 2017</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;86,673</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Acquisitions (Note 2)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">76</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Capitalized interest on wireless licenses</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">121</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Reclassifications, adjustments and other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">884</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Balance at March&#xA0;31, 2017</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;87,754</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify">&#xA0;</p> </div> <div> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The following table summarizes the benefit (income) cost related to our pension and postretirement health care and life insurance plans:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="84%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="6" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Pension</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="6" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Health&#xA0;Care&#xA0;and&#xA0;Life</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Three Months Ended March&#xA0;31,</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2017</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2016</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2017</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2016</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Service cost</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">70</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">80</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">37</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">61</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Amortization of prior service cost (credit)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">10</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(1</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(235</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(73</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Expected return on plan assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(316</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;(271</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(13</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(15</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Interest cost</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">171</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">186</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">165</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">224</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Remeasurement loss, net</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">165</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="13"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Net periodic benefit (income) cost</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(65</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">159</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(46</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;197</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="13"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> </div> <div> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The following table provides operating financial information for our two reportable segments:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="6" align="right"> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Three&#xA0;Months&#xA0;Ended</b></font></p> <p style="MARGIN-BOTTOM: 1px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>March&#xA0;31,</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>2017</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>2016</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>External Operating Revenues</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Wireless</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Service</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">15,730</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">16,769</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Equipment</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,764</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,954</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,282</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,196</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Total Wireless</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">20,776</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">21,919</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="16"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Wireline</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Consumer Markets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,201</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,180</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Enterprise Solutions</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2,466</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2,501</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Partner Solutions</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,016</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,053</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Business Markets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">890</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">870</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">62</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">82</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Total Wireline</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7,635</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7,686</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Total reportable segments</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">28,411</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">29,605</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="16"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Intersegment Revenues</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Wireless</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">102</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">85</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Wireline</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">241</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">237</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Total reportable segments</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">343</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">322</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="16"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Total Operating Revenues</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Wireless</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">20,878</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">22,004</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Wireline</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7,876</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7,923</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Total reportable segments</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;28,754</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;29,927</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="16"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Operating Income (Loss)</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Wireless</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7,076</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7,880</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Wireline</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">293</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(67</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Total reportable segments</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7,369</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7,813</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;&#xA0;</p> </div> <div> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="break-inside: avoid"> <td valign="top" width="4%" align="left"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>9.</b></font></td> <td valign="top" align="left"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Equity and Accumulated Other Comprehensive Income</b></font></p> </td> </tr> </table> <p style="MARGIN-BOTTOM: 2px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; BORDER-BOTTOM: rgb(0,0,0) 1pt solid; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; LINE-HEIGHT: 3px; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Equity</b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Changes in the components of Total equity were as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Attributable<br /> to&#xA0;Verizon</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Noncontrolling<br /> Interests</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Total<br /> Equity</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Balance at January&#xA0;1, 2017</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">22,524</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,508</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">24,032</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="16"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Net income</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,450</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">103</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,553</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other comprehensive loss</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(64</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(64</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="9"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Comprehensive income</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,386</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">103</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,489</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="9"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="16"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Contributed capital</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(21</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(21</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Dividends declared</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(2,356</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(2,356</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Common stock in treasury</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">119</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">119</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Distributions and other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(159</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(67</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(226</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="9"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Balance at March&#xA0;31, 2017</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;23,493</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;1,544</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;25,037</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="9"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>Common Stock</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">On February&#xA0;28, 2017, our previously authorized share buyback program expired. On March&#xA0;3, 2017, the Verizon Board of Directors approved a new share buyback program, which authorized the repurchase of up to 100&#xA0;million shares of Verizon common stock terminating no later than the close of business on February&#xA0;28, 2020. The program permits Verizon to repurchase shares over time, with the amount and timing of repurchases depending on market conditions and corporate needs.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Verizon did not repurchase any shares of Verizon common stock through its authorized share buyback program during the three months ended March&#xA0;31, 2017.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Common stock has been used from time to time to satisfy some of the funding requirements of employee and shareowner plans, including 2.7&#xA0;million common shares issued from Treasury stock during the three months ended March&#xA0;31, 2017.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Accumulated Other Comprehensive Income</b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The changes in the balances of Accumulated other comprehensive income by component are as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="81%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Foreign&#xA0;currency<br /> translation<br /> adjustments</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Unrealized</b></font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>loss&#xA0;on&#xA0;cash</b></font></p> <p style="MARGIN-BOTTOM: 1px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>flow&#xA0;hedges</b></font></p> </td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Unrealized</b></font></p> <p style="MARGIN-BOTTOM: 1px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>gain&#xA0;on<br /> marketable<br /> securities</b></font></p> </td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Defined&#xA0;benefit</b></font></p> <p style="MARGIN-BOTTOM: 1px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>pension&#xA0;and<br /> postretirement<br /> plans</b></font></p> </td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Total</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Balance at January&#xA0;1, 2017</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(713</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(80</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">46</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;3,420</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;2,673</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other comprehensive income</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">77</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#xA0;83</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">166</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Amounts reclassified to net income</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(101</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">8</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(137</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(230</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="17"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Net other comprehensive income (loss)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">77</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(18</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">14</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(137</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(64</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="17"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Balance at March&#xA0;31, 2017</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;(636</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(98</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#xA0;60</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,283</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2,609</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="17"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The amounts presented above in net other comprehensive income (loss) are net of taxes. The amounts reclassified to net income related to unrealized loss on cash flow hedges in the table above are included in Other income and (expense), net and Interest expense on our condensed consolidated statements of income (see Note 6 for additional information). The amounts reclassified to net income related to unrealized gain on marketable securities in the table above are included in Other income and (expense), net on our condensed consolidated statements of income. The amounts reclassified to net income related to defined benefit pension and postretirement plans in the table above are included in Cost of services and Selling, general and administrative expense on our condensed consolidated statements of income (see Note&#xA0;8 for additional information).</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> </div> <div> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Activity in the allowance for credit losses for the device payment plan agreement receivables was as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>2017</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2016</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Balance at January&#xA0;1,</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;688</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;444</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Bad debt expense</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">151</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">163</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Write-offs</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(154</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(95</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Allowance related to receivables sold</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(2</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Balance at March&#xA0;31,</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">685</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">513</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> </div> VERIZON COMMUNICATIONS INC <div> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The fair value of our short-term and long-term debt, excluding capital leases, was as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="6" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>At March&#xA0;31, 2017</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="6" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">At&#xA0;December&#xA0;31,&#xA0;2016</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Carrying<br /> Amount</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Fair&#xA0;Value</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Carrying<br /> Amount</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Fair&#xA0;Value</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Short- and long-term debt, excluding capital leases</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;115,536</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;123,751</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;107,128</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;117,584</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> </div> <div> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="break-inside: avoid"> <td valign="top" width="4%" align="left"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>6.</b></font></td> <td valign="top" align="left"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Fair Value Measurements</b></font></p> </td> </tr> </table> <p style="MARGIN-BOTTOM: 2px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; BORDER-BOTTOM: rgb(0,0,0) 1pt solid; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; LINE-HEIGHT: 3px; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Recurring Fair Value Measurements</b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The following table presents the balances of assets and liabilities measured at fair value on a recurring basis at March&#xA0;31, 2017:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>&#xA0;&#xA0;&#xA0;&#xA0;Level&#xA0; 1<sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1">(1)</font></sup></b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>&#xA0;&#xA0;&#xA0;&#xA0;Level&#xA0; 2<sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1">(2)</font></sup></b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>&#xA0;&#xA0;&#xA0;&#xA0;Level&#xA0; 3<sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1">(3)</font></sup></b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Total</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Assets:</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other assets:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Equity securities</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">118</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">118</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Fixed income securities</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">439</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">439</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Interest rate swaps</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">91</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">91</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Cross currency swaps</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">63</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">63</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Interest rate cap</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="13"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Total</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;118</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">600</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">718</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="13"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="16"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Liabilities:</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other liabilities:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Interest rate swaps</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">296</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">296</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Cross currency swaps</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,682</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,682</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="13"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Total</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;1,978</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;1,978</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="13"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The following table presents the balances of assets and liabilities measured at fair value on a recurring basis at December&#xA0;31, 2016:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>&#xA0;&#xA0;&#xA0;&#xA0;Level&#xA0;1<font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1"><sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex">&#xA0;(1)</sup></font></b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>&#xA0;&#xA0;&#xA0;&#xA0;Level&#xA0;2<font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1"><sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex">&#xA0;(2)</sup></font></b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>&#xA0;&#xA0;&#xA0;&#xA0;Level&#xA0;3<font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1"><sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex">&#xA0;(3)</sup></font></b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Total</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Assets:</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other assets:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Equity securities</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">123</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">123</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Fixed income securities</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">10</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">566</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">576</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Interest rate swaps</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">71</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">71</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Cross currency swaps</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">45</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">45</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Interest rate caps</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">10</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">10</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="13"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Total</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;133</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">692</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;825</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="13"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="16"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Liabilities:</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other liabilities:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Interest rate swaps</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">236</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">236</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Cross currency swaps</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,803</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,803</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="13"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Total</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;2,039</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;2,039</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="13"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="break-inside: avoid"> <td valign="top" width="2%" align="left"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1"><sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex">(1)</sup>&#xA0;</font></td> <td valign="top" align="left"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">quoted prices in active markets for identical assets or liabilities</font></p> </td> </tr> </table> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="break-inside: avoid"> <td valign="top" width="2%" align="left"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1"><sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex">(2)</sup>&#xA0;</font></td> <td valign="top" align="left"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">observable inputs other than quoted prices in active markets for identical assets and liabilities</font></p> </td> </tr> </table> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="break-inside: avoid"> <td valign="top" width="2%" align="left"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1"><sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex">(3)</sup>&#xA0;</font></td> <td valign="top" align="left"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">no observable pricing inputs in the market</font></p> </td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Equity securities consist of investments in common stock of domestic and international corporations measured using quoted prices in active markets.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Fixed income securities consist primarily of investments in municipal bonds as well as U.S. Treasury securities. We use quoted prices in active markets for our U.S. Treasury securities, therefore these securities are classified as Level&#xA0;1. For all other fixed income securities that do not have quoted prices in active markets, we use alternative matrix pricing resulting in these debt securities being classified as Level&#xA0;2.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Derivative contracts are valued using models based on readily observable market parameters for all substantial terms of our derivative contracts and thus are classified within Level&#xA0;2. We use&#xA0;<font style="WHITE-SPACE: nowrap">mid-market</font>&#xA0;pricing for fair value measurements of our derivative instruments. Our derivative instruments are recorded on a gross basis.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">We recognize transfers between levels of the fair value hierarchy as of the end of the reporting period. There were no transfers within the fair value hierarchy during the three months ended March&#xA0;31, 2017 and 2016, respectively.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>Fair Value of Short-term and Long-term Debt</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The fair value of our debt is determined using various methods, including quoted prices for identical terms and maturities, which is a Level&#xA0;1 measurement, as well as quoted prices for similar terms and maturities in inactive markets and future cash flows discounted at current rates, which are Level&#xA0;2 measurements. The fair value of our short-term and long-term debt, excluding capital leases, was as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="6" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>At March&#xA0;31, 2017</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="6" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">At&#xA0;December&#xA0;31,&#xA0;2016</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Carrying<br /> Amount</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Fair&#xA0;Value</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Carrying<br /> Amount</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Fair&#xA0;Value</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Short- and long-term debt, excluding capital leases</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;115,536</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;123,751</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;107,128</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;117,584</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Derivative Instruments</b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The following table sets forth the notional amounts of our outstanding derivative instruments:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>At&#xA0;March&#xA0;31,&#xA0;2017</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">At&#xA0;December&#xA0;31,&#xA0;2016</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Notional&#xA0;Amount</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Notional<b>&#xA0;</b>Amount</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Interest rate swaps</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">16,595</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">13,099</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Cross currency swaps</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">12,890</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">12,890</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Interest rate caps</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2,540</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2,540</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>Interest Rate Swaps</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">We enter into interest rate swaps to achieve a targeted mix of fixed and variable rate debt. We principally receive fixed rates and pay variable rates based on LIBOR, resulting in a net increase or decrease to Interest expense. These swaps are designated as fair value hedges and hedge against interest rate risk exposure of designated debt issuances. We record the interest rate swaps at fair value on our condensed consolidated balance sheets as assets and liabilities. Changes in the fair value of the interest rate swaps are recorded to Interest expense, which are offset by changes in the fair value of the hedged debt due to changes in interest rates.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">During the first quarter of 2017, we entered into interest rate swaps with a total notional value of $3.5&#xA0;billion.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The ineffective portion of our interest rate swaps was not material for the three months ended March&#xA0;31, 2017 and 2016, respectively.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>Forward Interest Rate Swaps</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">In order to manage our exposure to future interest rate changes, we periodically enter into forward interest rate swaps. We designate these contracts as cash flow hedges. During the three months ended March&#xA0;31, 2016, a&#xA0;<font style="WHITE-SPACE: nowrap">pre-tax</font>&#xA0;loss of $0.1&#xA0;billion was recognized in Other comprehensive income (loss).</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>Cross Currency Swaps</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">We have entered into cross currency swaps designated as cash flow hedges to exchange our British Pound&#xA0;Sterling and Euro-denominated debt into U.S. dollars and to fix our future interest and principal payments in U.S. dollars, as well as to mitigate the impact of foreign currency transaction gains or losses.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">During the three months ended March&#xA0;31, 2017 and 2016,&#xA0;<font style="WHITE-SPACE: nowrap">pre-tax</font>&#xA0;gains of $0.1&#xA0;billion and $0.2&#xA0;billion, respectively, were recognized in Other comprehensive income (loss). A portion of the gains and losses recognized in Other comprehensive income (loss) was reclassified to Other income and (expense), net to offset the related&#xA0;<font style="WHITE-SPACE: nowrap">pre-tax</font>&#xA0;foreign currency transaction gain or loss on the underlying debt obligations.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>Net Investment Hedges</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">We have designated certain foreign currency instruments as net investment hedges to mitigate foreign exchange exposure related to&#xA0;<font style="WHITE-SPACE: nowrap">non-U.S.</font>&#xA0;dollar net investments in certain foreign subsidiaries against changes in foreign exchange rates. In 2016, we designated $0.8&#xA0;billion total notional value of Euro-denominated debt as a net investment hedge. The notional amount of the Euro-denominated debt as a net investment hedge was $0.8&#xA0;billion at March&#xA0;31, 2017 and December&#xA0;31, 2016, respectively.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Undesignated Derivatives</b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">We also have the following derivative which we use as an economic hedge but for which we have elected not to apply hedge accounting.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><i>Interest Rate Caps</i></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">We enter into interest rate caps to mitigate our interest exposure to interest rate increases on our ABS Financing Facility. During the three months ended March&#xA0;31, 2017, we recognized an immaterial increase in Interest expense.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Concentrations of Credit Risk</b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Financial instruments that subject us to concentrations of credit risk consist primarily of temporary cash investments, short-term and long-term investments, trade receivables, including device payment plan agreement receivables, certain notes receivable, including lease receivables, and derivative contracts. Our policy is to deposit our temporary cash investments with major financial institutions. Counterparties to our derivative contracts are also major financial institutions with whom we have negotiated derivatives agreements (ISDA master agreements) and credit support annex agreements which provide rules for collateral exchange. We generally apply collateralized arrangements with our counterparties for uncleared derivatives to mitigate credit risk. At March&#xA0;31, 2017 and December&#xA0;31, 2016, we posted collateral of approximately $0.2&#xA0;billion, respectively, related to derivative contracts under collateral exchange arrangements, which were recorded as Prepaid expenses and other in our condensed consolidated balance sheets. During the first quarter of 2017, we paid an immaterial amount of cash to extend amendments to certain collateral exchange arrangements. These amendments suspend cash collateral posting for a specified period of time by both counterparties. We may enter into swaps on an uncollateralized basis in certain circumstances. While we may be exposed to credit losses due to the nonperformance of our counterparties, we consider the risk remote and do not expect the settlement of these transactions to have a material effect on our results of operations or financial condition.</font></p> </div> <div> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="break-inside: avoid"> <td valign="top" width="4%" align="left"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>2.</b></font></td> <td valign="top" align="left"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Acquisitions and Divestitures</b></font></p> </td> </tr> </table> <p style="MARGIN-BOTTOM: 2px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; BORDER-BOTTOM: rgb(0,0,0) 1pt solid; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; LINE-HEIGHT: 3px; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b><u>Wireless</u></b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Spectrum License Transactions</b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">During the fourth quarter of 2016, we entered into a license exchange agreement with affiliates of AT&amp;T Inc. to exchange certain Advanced Wireless Services (AWS) and Personal Communication Services (PCS) spectrum licenses. This&#xA0;<font style="WHITE-SPACE: nowrap">non-cash</font>&#xA0;exchange was completed in February 2017, at which time we received $1.0&#xA0;billion of AWS and PCS spectrum licenses at fair value and recorded a&#xA0;<font style="WHITE-SPACE: nowrap">pre-tax</font>&#xA0;gain of $0.1&#xA0;billion in Selling, general and administrative expense on our condensed consolidated statement of income for the three months ended March&#xA0;31, 2017.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">During the first quarter of 2017, we entered into a license exchange agreement with affiliates of Sprint Corporation, which provides for the exchange of certain PCS spectrum licenses. These wireless licenses are classified as Assets held for sale on our condensed consolidated balance sheet as of March&#xA0;31, 2017. This&#xA0;<font style="WHITE-SPACE: nowrap">non-cash</font>&#xA0;exchange is expected to be completed in the second quarter of 2017 and we expect to record an immaterial gain.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">During the three months ended March&#xA0;31, 2017, we acquired various other wireless licenses for cash consideration that was not significant.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b><u>Wireline</u></b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>XO Holdings</b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">In February 2017, we completed our acquisition of XO Holdings&#x2019; wireline business (XO), which owns and operates one of the largest fiber-based Internet Protocol (IP) and Ethernet networks, for total cash consideration of approximately $1.8&#xA0;billion, of which $0.1&#xA0;billion was paid in 2015. Separately, in February 2016, we entered into an agreement to lease certain wireless spectrum from a wholly-owned subsidiary of XO Holdings that holds its wireless spectrum, which included an option to buy the subsidiary. In April 2017, Verizon exercised its option to buy that subsidiary for approximately $0.2&#xA0;billion, subject to certain adjustments. The transaction is subject to customary regulatory approvals and is expected to close by the end of 2017.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The condensed consolidated financial statements include the results of XO&#x2019;s operations from the date the acquisition closed. Had this acquisition been completed on January&#xA0;1, 2017, the results of the acquired operations of XO would not have had a significant impact on the consolidated net income attributable to Verizon.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The acquisition of XO was accounted for as a business combination. The consideration was preliminarily allocated to the assets acquired and liabilities assumed based on their fair values as of the close of the acquisition. Upon closing, we recorded approximately $0.4&#xA0;billion of goodwill, and $0.3&#xA0;billion of other intangibles. Goodwill is calculated as the difference between the acquisition date fair value of the consideration transferred and the fair value of the net assets acquired. The goodwill recorded as a result of the XO transaction represents future economic benefits we expect to achieve as a result of the acquisition. The goodwill related to this acquisition is included within our Wireline segment (see Note 3 for additional information).</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Data Center Sale</b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">On December&#xA0;6, 2016, we entered into a definitive agreement, which was subsequently amended on March&#xA0;21, 2017, with Equinix, Inc. pursuant to which Verizon will sell 23 customer-facing data center sites in the United States and Latin America, for approximately $3.6&#xA0;billion, subject to certain adjustments. The sale does not affect Verizon&#x2019;s data center services delivered from 27 sites in Europe, Asia-Pacific and Canada, or its managed hosting and cloud offerings.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">We plan to account for a portion of the transaction, consisting of the data center buildings, land and related assets, as a sale of real estate. The real estate assets to be sold of $0.6&#xA0;billion are currently included in Verizon&#x2019;s continuing operations and classified as held and used within Plant, property and equipment, net on our condensed consolidated balance sheet at March&#xA0;31, 2017. The other primarily&#xA0;<font style="WHITE-SPACE: nowrap">non-real</font>&#xA0;estate assets and liabilities that will be sold are currently included in Verizon&#x2019;s continuing operations and reclassified as held for sale. At March&#xA0;31, 2017, assets to be sold of $0.8&#xA0;billion, classified as&#xA0;<font style="WHITE-SPACE: nowrap">Non-current</font>&#xA0;assets held for sale on our condensed consolidated balance sheet, were principally comprised of goodwill, plant, property and equipment and other intangible assets. The liabilities associated with the sale were not significant and have been included in current and&#xA0;<font style="WHITE-SPACE: nowrap">non-current</font>&#xA0;Other liabilities on our condensed consolidated balance sheet at March&#xA0;31, 2017. The transaction is subject to customary regulatory approvals and closing conditions, and is expected to close during the first half of 2017.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b><u>Other</u></b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Acquisition of Yahoo! Inc.&#x2019;s Operating Business</b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">On July&#xA0;23, 2016, Verizon entered into a stock purchase agreement (the Purchase Agreement) with Yahoo! Inc. (Yahoo).&#xA0;Pursuant to the Purchase Agreement, upon the terms and subject to the conditions thereof, we agreed to acquire the stock of one or more subsidiaries of Yahoo holding all of Yahoo&#x2019;s operating business, for approximately $4.83&#xA0;billion in cash, subject to certain adjustments (the Transaction).&#xA0;Prior to the closing of the Transaction, pursuant to a reorganization agreement, Yahoo will transfer all of the assets and liabilities constituting Yahoo&#x2019;s operating business to the subsidiaries to be acquired in the Transaction.&#xA0;The assets to be acquired will not include Yahoo&#x2019;s cash, its ownership interests in Alibaba, Yahoo! Japan and certain other investments, certain undeveloped land recently divested by Yahoo or certain&#xA0;<font style="WHITE-SPACE: nowrap">non-core</font>&#xA0;intellectual property.&#xA0;We will receive for our benefit and that of our current and certain future affiliates a&#xA0;<font style="WHITE-SPACE: nowrap">non-exclusive,</font>&#xA0;worldwide, perpetual, royalty-free license to all of Yahoo&#x2019;s intellectual property that is not being conveyed with the business.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Yahoo employees who transfer to Verizon will have any unvested Yahoo restricted stock units that they hold converted into cash-settleable Verizon restricted stock units, which will have the same vesting schedule as their Yahoo restricted stock units.&#xA0;The value of those outstanding restricted stock units on the date of signing was approximately $1.0&#xA0;billion.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">On February&#xA0;20, 2017, Verizon and Yahoo entered into an amendment to the Purchase Agreement, pursuant to which the Transaction purchase price will be reduced by $350&#xA0;million to approximately $4.48&#xA0;billion in cash, subject to certain adjustments. Subject to certain exceptions, the parties also agreed that certain user security and data breaches incurred by Yahoo (and the losses arising therefrom) will be disregarded (1)&#xA0;for purposes of specified conditions to Verizon&#x2019;s obligations to close the Transaction and (2)&#xA0;in determining whether a &#x201C;Business Material Adverse Effect&#x201D; under the Purchase Agreement has occurred.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Concurrently with the amendment of the Purchase Agreement, Yahoo and Yahoo Holdings, Inc., a wholly owned subsidiary of Yahoo that Verizon has agreed to purchase pursuant to the Transaction, also entered into an amendment to the related reorganization agreement, pursuant to which Yahoo (which has announced that it intends to change its name to Altaba Inc. following the closing of the Transaction) will retain 50% of certain post-closing liabilities arising out of governmental or third party investigations, litigations or other claims related to certain user security and data breaches incurred by Yahoo. In accordance with the original Transaction Agreements, Yahoo will continue to retain 100% of any liabilities arising out of any shareholder lawsuits (including derivative claims) and investigations and actions by the SEC.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The Transaction remains subject to customary closing conditions, including the approval of Yahoo&#x2019;s stockholders, and is expected to close in the middle of 2017.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Other</b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">During the three months ended March&#xA0;31, 2017, we acquired various other businesses and investments for cash consideration that was not significant.</font></p> </div> 2 <div> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>At&#xA0;March&#xA0;31,<br /> 2017</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">At&#xA0;December&#xA0;31,<br /> 2016</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Assets</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Wireless</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;215,206</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;211,345</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Wireline</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">68,376</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">66,679</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Total reportable segments</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">283,582</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">278,024</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Corporate and other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">221,012</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">213,787</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Eliminations</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(257,863</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(247,631</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Total consolidated &#x2013; reported</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">246,731</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">244,180</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> </div> <div> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The following table displays device payment plan agreement receivables, net, that continue to be recognized in our condensed consolidated balance sheets:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>At&#xA0;March&#xA0;31,<br /> 2017</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">At&#xA0;December&#xA0;31,<br /> 2016</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Device payment plan agreement receivables, gross</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;13,154</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;11,797</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Unamortized imputed interest</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(582</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(511</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Device payment plan agreement receivables, net of unamortized imputed interest</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">12,572</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">11,286</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Allowance for credit losses</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(685</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(688</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Device payment plan agreement receivables, net</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">11,887</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">10,598</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="16"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Classified on our condensed consolidated balance sheets:</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Accounts receivable, net</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7,436</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6,140</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">4,451</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">4,458</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Device payment plan agreement receivables, net</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">11,887</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">10,598</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify">&#xA0;</p> </div> <div> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The following table displays the composition of Other intangible assets, net:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="80%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="10" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>At March&#xA0;31, 2017</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="10" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">At December&#xA0;31, 2016</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Gross<br /> Amount</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Accumulated<br /> Amortization</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Net<br /> Amount</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Gross<br /> Amount</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Accumulated<br /> Amortization</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Net<br /> Amount</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Customer lists (8 to 10 years)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,163</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(548</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2,615</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2,884</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(480</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2,404</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><font style="WHITE-SPACE: nowrap">Non-network</font>&#xA0;<font style="WHITE-SPACE: nowrap">internal-use</font><br /> software (5 to 7 years)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">16,459</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(11,251</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">5,208</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">16,135</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(10,913</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">5,222</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other (6 to 25 years)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,707</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(618</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,089</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,854</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(583</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,271</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="21"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Total</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#xA0;&#xA0;21,329</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#xA0;&#xA0;(12,417</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#xA0;&#xA0;8,912</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#xA0;&#xA0;20,873</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#xA0;&#xA0;(11,976</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;&#xA0;&#xA0;8,897</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="21"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify">&#xA0;</p> </div> <div> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Changes in the components of Total equity were as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Attributable<br /> to&#xA0;Verizon</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Noncontrolling<br /> Interests</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Total<br /> Equity</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Balance at January&#xA0;1, 2017</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">22,524</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,508</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">24,032</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="16"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Net income</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,450</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">103</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,553</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other comprehensive loss</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(64</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(64</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="9"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Comprehensive income</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,386</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">103</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,489</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="9"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="16"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Contributed capital</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(21</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(21</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Dividends declared</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(2,356</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(2,356</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Common stock in treasury</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">119</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">119</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Distributions and other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(159</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(67</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(226</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="9"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Balance at March&#xA0;31, 2017</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;23,493</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;1,544</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;25,037</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="9"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 18px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> </div> No single customer accounted for more than 10% of our total operating revenues during the three months ended March 31, 2017 and 2016. <div> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="break-inside: avoid"> <td valign="top" width="4%" align="left"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>10.</b></font></td> <td valign="top" align="left"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Segment Information</b></font></p> </td> </tr> </table> <p style="MARGIN-BOTTOM: 2px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; BORDER-BOTTOM: rgb(0,0,0) 1pt solid; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; LINE-HEIGHT: 3px; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Reportable Segments</b></font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">We have two reportable segments, Wireless and Wireline, which we operate and manage as strategic business units and organize by products and services, and customer groups, respectively. We measure and evaluate our reportable segments based on segment operating income, consistent with the chief operating decision maker&#x2019;s assessment of segment performance.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Our segments and their principal activities consist of the following:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td></td> <td valign="bottom" width="5%"></td> <td width="89%"></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Segment</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Description</b></font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Wireless</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;&#xA0;&#xA0;</font></td> <td valign="top"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Wireless&#x2019; communications products and services include wireless voice and data services and equipment sales, which are provided to consumer, business and government customers across the United States.</font></p> </td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="8"></td> <td height="8" colspan="2"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Wireline</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;&#xA0;&#xA0;</font></td> <td valign="top"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Wireline&#x2019;s voice, data and video communications products and enhanced services include broadband video and data, corporate networking solutions, data center and cloud services, security and managed network services and local and long distance voice services. We provide these products and services to consumers in the United States, as well as to carriers, businesses and government customers both in the United States and around the world.</font></p> </td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Corporate and other includes the results of our media, including AOL, telematics and other businesses, investments in unconsolidated businesses, unallocated corporate expenses, pension and other employee benefit related costs and lease financing. Corporate and other also includes the historical results of divested operations and other adjustments and gains and losses that are not allocated in assessing segment performance due to their&#xA0;<font style="WHITE-SPACE: nowrap">non-operational</font>&#xA0;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&#x2019;s assessment of segment performance.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">On April&#xA0;1, 2016, we completed the sale (Access Line Sale) of our local exchange business and related landline activities in California, Florida and Texas, including Fios Internet and video customers, switched and special access lines and high-speed Internet service and long distance voice accounts in these three states to Frontier Communications Corporation (Frontier). The transaction, which included the acquisition by Frontier of the equity interests of Verizon&#x2019;s incumbent local exchange carriers (ILECs) in California, Florida and Texas, did not involve any assets or liabilities of Verizon Wireless. The results of operations for this divestiture is included within Corporate and other for all periods presented to reflect comparable segment operating results consistent with the information regularly reviewed by our chief operating decision maker.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">In addition, Corporate and other includes the results of our telematics businesses for all periods presented, which were reclassified from our Wireline segment effective April&#xA0;1, 2016. The impact of this reclassification was not material to our condensed consolidated financial statements or our segment results of operations.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">During the first quarter of 2017, Verizon reorganized the customer groups within its Wireline segment. Previously, the customer groups in the Wireline segment consisted of Mass Markets (which included Consumer Retail and Small Business subgroups), Global Enterprise and Global Wholesale. Pursuant to the reorganization, there are now four customer groups within the Wireline segment: Consumer Markets, which includes the customers previously included in Consumer Retail; Enterprise Solutions, which includes the large business customers, including multinational corporations, and federal government customers previously included in Global Enterprise; Partner Solutions, which includes the customers previously included in Global Wholesale; and Business Markets, a new customer group, which includes U.S.-based small business customers previously included in Mass Markets and U.S.-based medium business customers, state and local government customers and educational institutions previously included in Global Enterprise.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The reconciliation of segment operating revenues and expenses to consolidated operating revenues and expenses below also includes those items of a&#xA0;<font style="WHITE-SPACE: nowrap">non-operational</font>&#xA0;nature. We exclude from segment results the effects of certain items that management does not consider in assessing segment performance, primarily because of their&#xA0;<font style="WHITE-SPACE: nowrap">non-operational</font>&#xA0;nature.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">We have adjusted prior period consolidated and segment information, where applicable, to conform to current period presentation.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The following table provides operating financial information for our two reportable segments:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="6" align="right"> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Three&#xA0;Months&#xA0;Ended</b></font></p> <p style="MARGIN-BOTTOM: 1px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>March&#xA0;31,</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>2017</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>2016</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>External Operating Revenues</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Wireless</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Service</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">15,730</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">16,769</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Equipment</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,764</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,954</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,282</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,196</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Total Wireless</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">20,776</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">21,919</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="16"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Wireline</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Consumer Markets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,201</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,180</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Enterprise Solutions</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2,466</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2,501</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Partner Solutions</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,016</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,053</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Business Markets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">890</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">870</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">62</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">82</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Total Wireline</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7,635</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7,686</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Total reportable segments</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">28,411</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">29,605</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="16"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Intersegment Revenues</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Wireless</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">102</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">85</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Wireline</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">241</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">237</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Total reportable segments</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">343</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">322</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="16"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Total Operating Revenues</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Wireless</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">20,878</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">22,004</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Wireline</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7,876</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7,923</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Total reportable segments</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;28,754</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;29,927</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="16"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Operating Income (Loss)</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Wireless</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7,076</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7,880</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Wireline</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">293</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(67</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Total reportable segments</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7,369</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7,813</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 1px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>At&#xA0;March&#xA0;31,<br /> 2017</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">At&#xA0;December&#xA0;31,<br /> 2016</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Assets</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Wireless</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;215,206</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;211,345</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Wireline</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">68,376</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">66,679</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Total reportable segments</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">283,582</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">278,024</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Corporate and other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">221,012</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">213,787</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Eliminations</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(257,863</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(247,631</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Total consolidated &#x2013; reported</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">246,731</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">244,180</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">A reconciliation of the reportable segment operating revenues to consolidated operating revenues is as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="6" align="right"> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Three&#xA0;Months&#xA0;Ended</b></font></p> <p style="MARGIN-BOTTOM: 1px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>March&#xA0;31,</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>2017</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>2016</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Total reportable segment operating revenues</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">28,754</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">29,927</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Corporate and other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,460</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,309</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Eliminations</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(400</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(345</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Impact of divested operations</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,280</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Total consolidated operating revenues</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;29,814</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;32,171</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Fios revenues are included within our Wireline segment and amounted to approximately $2.9&#xA0;billion and $2.8&#xA0;billion, respectively for the three months ended March&#xA0;31, 2017 and 2016.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">A reconciliation of the total of the reportable segments&#x2019; operating income to consolidated income before provision for income taxes is as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="88%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="6" align="right"> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Three&#xA0;Months&#xA0;Ended</b></font></p> <p style="MARGIN-BOTTOM: 1px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>March&#xA0;31,</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>2017</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>2016</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Total reportable segment operating income</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;7,369</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;7,813</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Corporate and other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(314</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(509</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Severance, pension and benefit charges (Note 8)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(165</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Gain on spectrum license transaction (Note 2)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">126</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">142</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Impact of divested operations</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">661</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Total consolidated operating income</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7,181</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7,942</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="16"></td> <td height="16" colspan="4"></td> <td height="16" colspan="4"></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Equity in losses of unconsolidated businesses</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(21</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(20</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Other income and (expense), net</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(846</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">32</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Interest expense</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(1,132</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(1,188</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Income Before Provision For Income Taxes</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">5,182</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6,766</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">No single customer accounted for more than 10% of our total operating revenues during the three months ended March&#xA0;31, 2017 and 2016.</font></p> </div> 2700000 29814000000 1746000000 -18000000 -800000000 119000000 3764000000 26050000000 5592000000 3067000000 -176000000 200000000 7181000000 3450000000 126000000 0 3489000000 3386000000 -21000000 3553000000 196000000 2354000000 14000000 77000000 4694000000 3411000000 -846000000 -64000000 -64000000 -21000000 -28000000 5182000000 -225000000 2025000000 2356000000 -111000000 1629000000 1132000000 137000000 4059000000 154000000 5000000 -4833000000 -52000000 -1760000000 6908000000 22633000000 103000000 330000000 226000000 452000000 1427000000 103000000 4808000000 6858000000 420000000 4579000000 -98000000 1283000000 13054000000 151000000 <div> <p style="MARGIN-BOTTOM: 0px; 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The Tender Offer expired on March&#xA0;17, 2017 and most of which was settled on March&#xA0;20, 2017. In addition to the purchase price, any accrued and unpaid interest on the purchased notes was paid to the date of purchase.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="86%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions, except for Purchase Price)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Interest<br /> Rate</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Maturity</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Principal<br /> Amount<br /> Outstanding</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px" align="right"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Purchase</b></font></p> <p style="MARGIN-BOTTOM: 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Communications Inc.</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">8.950</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2039</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">242</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;1,537.18</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">131</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7.750</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2032</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">215</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,341.68</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">36</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6.550</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2043</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;2,266</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,239.85</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">847</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6.400</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2033</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,083</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,216.85</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">612</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7.350</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2039</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">186</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,324.60</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">27</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6.900</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2038</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">270</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,273.29</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" 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style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2030</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">742</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,379.04</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">160</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6.400</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font 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valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,189.56</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">103</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">5.850</font></td> <td valign="bottom" 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valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">8.750</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2021</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font 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size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">126</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">151</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Device payment plan agreement receivables, gross</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">13,154</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">11,797</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify">&#xA0;</p> </div> P210D 300000000 <div> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The table below lists the series of Old Notes included in the January Exchange Offers for the 2022 New Notes and the January Cash Offers, referred to as Group 1:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="86%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Interest<br /> Rate</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Maturity</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Principal<br /> Amount<br /> Outstanding</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Principal<br /> Amount<br /> Accepted&#xA0;for<br /> Exchange</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Principal<br /> Amount<br /> Accepted&#xA0;for<br /> Cash&#xA0;<font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1"><sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex">(1)</sup></font></b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Verizon Communications Inc.</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">5.500</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2018</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">737</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">83</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">8</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6.100</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2018</font></td> <td valign="bottom" nowrap="nowrap"><font 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Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">9</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3.650</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2018</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2,698</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">508</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">97</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2.550</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2019</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">500</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">154</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">35</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1.375</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2019</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,000</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">376</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">38</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2.625</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2020</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">3,304</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,925</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">55</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;3,123</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;242</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="break-inside: avoid"> <td valign="top" width="2%" align="left"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1"><sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex">(1)</sup>&#xA0;</font></td> <td valign="top" align="left"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Includes amounts acquired pursuant to the subsequent cash purchases.</font></p> </td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The table below lists the series of Old Notes included in the January Exchange Offers for the 2039 New Notes and the January Cash Offers, referred to as Group 2:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="86%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Interest<br /> Rate</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Maturity</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Principal<br /> Amount<br /> Outstanding</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Principal<br /> Amount<br /> Accepted&#xA0;for<br /> Exchange</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Principal<br /> Amount<br /> Accepted&#xA0;for<br /> Cash&#xA0;<font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1"><sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex">(1)</sup></font></b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Verizon Communications Inc.</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">5.150</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2023</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">8,517</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">715</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">217</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7.750</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2030</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">930</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">184</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">4</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7.750</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2032</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">218</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6.400</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2033</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,729</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">640</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom" colspan="5"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;1,541</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;227</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td valign="bottom" colspan="5"> <p style="BORDER-TOP: rgb(0,0,0) 2px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="break-inside: avoid"> <td valign="top" width="2%" align="left"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1"><sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex">(1)</sup>&#xA0;</font></td> <td valign="top" align="left"> <p align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Includes amounts acquired pursuant to the subsequent cash purchases.</font></p> </td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: medium; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal" align="justify"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">The table below lists the series of Old Notes included in the January Exchange Offers for the 2049 New Notes and the January Cash Offers, referred to as Group 3:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; FONT-FAMILY: &quot;Times New Roman&quot;; WHITE-SPACE: normal; WORD-SPACING: 0px; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; COLOR: rgb(0,0,0); FONT-STYLE: normal; ORPHANS: 2; WIDOWS: 2; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px; font-variant-ligatures: normal; font-variant-caps: normal"> &#xA0;</p> <table style="FONT-FAMILY: &quot;Times New Roman&quot;; WORD-SPACING: 0px; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; ORPHANS: 2; WIDOWS: 2; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="86%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr style="break-inside: avoid"> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">(dollars in millions)</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Interest<br /> Rate</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Maturity</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Principal<br /> Amount<br /> Outstanding</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Principal<br /> Amount<br /> Accepted&#xA0;for<br /> Exchange</b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2"><b>Principal<br /> Amount<br /> Accepted&#xA0;for<br /> Cash&#xA0;<font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="1"><sup style="VERTICAL-ALIGN: baseline; POSITION: relative; BOTTOM: 0.8ex">(1)</sup></font></b></font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">Verizon Communications Inc.</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">5.850</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2035</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;&#xA0;1,250</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">447</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">4</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6.250</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2037</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">636</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">189</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">5</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6.400</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2038</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times 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valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6.900</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2038</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">384</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">111</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">4</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">8.950</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2039</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">290</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">48</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#x2013;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">7.350</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2039</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">412</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">225</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid" bgcolor="#E5E5E5"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6.000</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2041</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,000</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">480</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">20</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> </tr> <tr style="break-inside: avoid"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">6.550</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">2043</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">4,245</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">1,933</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: &quot;Times New Roman&quot;" size="2">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> 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