Obtain Verizon Communications, Inc.’s 2009 annual report either through the “Investor Relations” portion of their website (do a web search for Verizon Communications investor relations) or go to www.sec.gov and click “Search for Company Filings” under ‘‘Filings & Forms.”

Required:
1. What method of depreciation does Verizon use? What are the typical useful lives of Verizon’s operating assets?
2. What is the cost of Verizon’s property, plant, and equipment on December 31, 2009? List the major components of Verizon’s property, plant, and equipment.
3. What amount of accumulated depreciation is associated with property, plant, and equipment as of December 31, 2009?
4. Refer to the statement of cash flows:
a. What is the amount of depreciation and amortization expense reported for each of the last three years?
b. How much did Verizon spend on the acquisition of operating assets (capital expenditures) in each of the last three years?
c. How much property, plant, and equipment was disposed of in 2009? (Hint: Also refer to the balance sheet.)
d. Is the change in depreciation and amortization expense consistent with the pattern of capital expenditures observed? Why or why not?
5. What is the change in accumulated depreciation for the most recent year? Is this change explained by the depreciation and amortization expense reported? If not, what other items might cause accumulated depreciation to change?
6. Describe Verizon’s capital expenditure plans for the future.
7. Explain Verizon’s accounting policy with regard to intangible assets.
8. List the types of intangible assets that Verizon possesses. What is Verizon’s largest intangible asset?