said by ptb42:Another addenda: On page 26 of the annual report, you can see that "Cost of Services" constituted 20.878B of the 35.545B in wireline operating expenses. I believe that's the category containing payroll and benefit expenses for the employees represented by CWA. There may be some unionized employees in the "Selling, general, and administrative expense" category (7.989B), but I would expect it to be a small percentage.
Cost of Services
Cost of services includes the following costs directly attributable to a service: salaries and wages, benefits, materials and supplies, content costs, contracted services, network access and transport costs, customer provisioning costs, computer systems support, and costs to support our outsourcing contracts and technical facilities. Aggregate customer care costs, which include billing and service provisioning, are allocated between Cost of services and Selling, general and administrative expense
includes content cost.
with the bucket here there is no way you can extract the "magnitude" of verizon's labor cost, and they are quite smart in putting it here.
Cost of services increased during 2015 primarily due to an increase in costs as a result of the acquisition of AOL, higher rent expense as a result of an increase in wireless macro and small cell sites, higher wireless network costs from an increase in fiber facilities supporting network capacity expansion and densification, including the deployment of small cell technology, a volume-driven increase in costs related to the wireless device protection package offered to our customers as well as a $0.5 billion increase in content costs at our Wireline segment.
Partially offsetting these increases were a $0.3 billion decline in employee costs and a $0.3 billion decline in access costs at our Wireline segment. Also offsetting the increase was a decrease in Cost of services reflected in the results of operations related to a non-strategic Wireline business that was divested on July 1, 2014.
as for your "gross profit margin" its one of the worst stats to go off since its after all the adjustments have been made including 1 time write offs, depreciation and a hundred other games to get that tax liability down to 0, which verizon has done over the last 9 years paying an effective federal rate of -3%.
