America Online 2015 Annual Report Download - page 62

The table below lists the series of Old Notes included in the July Exchange Offers for the 2054 New Notes:
(dollars in millions)
Interest
Rate Maturity
Principal Amount
Outstanding
Principal Amount
Accepted For
Exchange
Verizon Communications 6.55% 2043 $ 15,000 $ 4,330
6.40% 2038 1,750 –
6.90% 2038 1,250 –
$ 4,330
Verizon Wireless — Notes Payable and Other
Verizon Wireless Capital LLC, a wholly-owned subsidiary of Verizon
Wireless, is a limited liability company formed under the laws of
Delaware on December7, 2001 as a special purpose finance subsid-
iary to facilitate the offering of debt securities of Verizon Wireless by
acting as co- issuer. Other than the financing activities as a co- issuer of
Verizon Wireless indebtedness, Verizon Wireless Capital LLC has no
material assets, operations or revenues. Verizon Wireless is jointly and
severally liable with Verizon Wireless Capital LLC for co- issued notes.
2015
During December 2015, we repaid $0.6billion upon maturity for
€0.5billion aggregate principal amount of Cellco Partnership and
Verizon Wireless Capital LLC 8.750% Notes due 2015, and the related
cross currency swap was settled.
2014
In addition to the retirements of debt securities in connection with the
Tender Offer, the May Exchange Offer, the July Exchange Offers and
the November Early Debt Redemption, as noted above, during March
2014, Verizon Wireless redeemed $1.25billion aggregate principal
amount of the Cellco Partnership and Verizon Wireless Capital LLC
8.50% Notes due 2018 at 127.135% of the principal amount of such
notes, plus accrued and unpaid interest (see “Early Debt Redemption
and Other Costs”).
Telephone and Other Subsidiary Debt
2014
During 2014, a series of notes held by GTE Corporation was included
in the Tender Offer described above.
Early Debt Redemption and Other Costs
During March 2014, we recorded net debt redemption costs of
$0.9billion in connection with the early redemption of $1.25billion
aggregate principal amount of Cellco Partnership and Verizon Wireless
Capital LLC 8.50% Notes due 2018, and the purchase of the following
notes pursuant to the Tender Offer: $0.7billion of the then outstanding
$1.5billion aggregate principal amount of Verizon 6.10% Notes due
2018, $0.8billion of the then outstanding $1.5billion aggregate
principal amount of Verizon 5.50% Notes due 2018, $0.6billion of the
then outstanding $1.3billion aggregate principal amount of Verizon
8.75% Notes due 2018, $0.7billion of the then outstanding $1.25billion
aggregate principal amount of Verizon 5.55% Notes due 2016,
$0.4billion of the then outstanding $0.75billion aggregate principal
amount of Verizon 5.50% Notes due 2017, $0.6billion of the then out-
standing $1.0billion aggregate principal amount of Cellco Partnership
and Verizon Wireless Capital LLC 8.50% Notes due 2018, $0.2billion
of the then outstanding $0.3billion aggregate principal amount of
Alltel Corporation 7.00% Debentures due 2016 and $0.3billion of
the then outstanding $0.6billion aggregate principal amount of GTE
Corporation 6.84% Debentures due 2018.
During the fourth quarter of 2014, we recorded net debt redemp-
tion costs of $0.5billion in connection with the early redemption of
$0.5billion aggregate principal amount of Verizon 4.90% Notes due
2015, $0.6billion aggregate principal amount of Verizon 5.55% Notes
due 2016, $1.3billion aggregate principal amount of Verizon 3.00%
Notes due 2016, $0.4billion aggregate principal amount of Verizon
5.50% Notes due 2017, $0.7billion aggregate principal amount of
Verizon 8.75% Notes due 2018, $1.0billion of the then outstanding
$3.2billion aggregate principal amount of Verizon 2.50% Notes due
2016, $0.1billion aggregate principal amount Alltel Corporation 7.00%
Debentures due 2016 and $0.4billion aggregate principal amount of
Cellco Partnership and Verizon Wireless Capital LLC 8.50% Notes due
2018, as well as $0.3billion of other costs.
We recognize early debt redemption costs in Other income and
(expense), net on our consolidated statements of income.
Additional Financing Activities (Non-Cash Transaction)
We financed, primarily through vendor financing arrangements, the
purchase of approximately $0.7billion of long-lived assets during 2015
and 2014, consisting primarily of network equipment. At December31,
2015, $0.9billion of vendor financing arrangements remained out-
standing. These purchases are non-cash financing activities and
therefore not reflected within Capital expenditures on our consolidated
statements of cash flows.
Guarantees
We guarantee the debentures and first mortgage bonds of our
operating telephone company subsidiaries. As of December31, 2015,
$3.1billion aggregate principal amount of these obligations remained
outstanding. Each guarantee will remain in place for the life of the obli-
gation unless terminated pursuant to its terms, including the operating
telephone company no longer being a wholly-owned subsidiary
of Verizon.
We also guarantee the debt obligations of GTE Corporation that were
issued and outstanding prior to July1, 2003. As of December31, 2015,
$1.4billion aggregate principal amount of these obligations remain
outstanding.
Debt Covenants
We and our consolidated subsidiaries are in compliance with all of our
financial and restrictive covenants.
Maturities of Long-Term Debt
Maturities of long-term debt outstanding at December31, 2015 are
as follows:
Years (dollars in millions)
2016 $ 6,325
2017 4,195
2018 7,072
2019 5,645
2020 8,860
Thereafter 77,933
60 Verizon Communications Inc. and Subsidiaries
Notes to Consolidated Financial Statements continued