Verizon Wireless 2006 Annual Report Download - page 60

Download and view the complete annual report

Please find page 60 of the 2006 Verizon Wireless annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 84

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84

58
NOTE 11
DEBT
Debt Maturing Within One Year
Debt maturing within one year is as follows:
(dollars in millions)
At December 31, 2006 2005
Long-term debt maturing within one year $4,139 $4,526
Commercial paper 3,576 2,152
Other short-term debt –10
Total debt maturing within one year $7,715 $6,688
The weighted average interest rate for our commercial paper at
year-end December 31, 2006 and December 31, 2005 was 5.3%
and 4.3%, respectively.
Capital expenditures (primarily acquisition and construction of net-
work assets) are partially financed, pending long-term financing,
through bank loans and the issuance of commercial paper payable
within 12 months.
At December 31, 2006, we had approximately $6.2 billion of unused
bank lines of credit. Certain of these lines of credit contain require-
ments for the payment of commitment fees.
Long-Term Debt
Outstanding long-term debt obligations are as follows:
Telephone Subsidiaries’ Debt
Our first mortgage bonds of $100 million are secured by certain
telephone operations assets.
See Note 20 for additional information about guarantees of oper-
ating subsidiary debt.
Redemption of Debt Assumed in Merger
On January 17, 2006, Verizon announced offers to purchase two
series of MCI senior notes, MCI $1,983 million aggregate principal
amount of 6.688% Senior Notes Due 2009 and MCI $1,699 million
aggregate principal amount of 7.735% Senior Notes Due 2014, at
101% of their par value. Due to the change in control of MCI that
occurred in connection with the merger with Verizon on January 6,
2006, Verizon was required to make this offer to noteholders within
30 days of the closing of the merger. Noteholders tendered $165
million of the 6.688% Senior Notes. Separately, Verizon notified
noteholders that MCI was exercising its right to redeem both series
of Senior Notes prior to maturity under the optional redemption
procedures provided in the indentures. The 6.688% Notes were
redeemed on March 1, 2006, and the 7.735% Notes were
redeemed on February 16, 2006.
(dollars in millions)
At December 31, Interest Rates % Maturities 2006 2005
Notes payable 4.00 – 8.25 2007 – 2035 $14,805 $15,610
Telephone subsidiaries – debentures and first/refunding mortgage bonds 4.63 – 7.00 2007 – 2042 11,703 11,869
7.15 – 7.65 2007 – 2032 1,275 1,725
7.85 – 8.75 2010 – 2031 1,679 1,926
Other subsidiaries – debentures and other 4.25 – 10.75 2007 – 2028 2,977 3,410
Zero-coupon convertible notes,
net of unamortized discount of $– and $790 – – –1,360
Employee stock ownership plan loans:
NYNEX debentures 9.55 2010 92 113
Capital lease obligations (average rate 8.0% and 11.9%) 360 112
Property sale holdbacks held in escrow, vendor financing and other – – –13
Unamortized discount, net of premium (106) (43)
Total long-term debt, including current maturities 32,785 36,095
Less: debt maturing within one year (4,139) (4,526)
Total long-term debt $28,646 $31,569
Notes to Consolidated Financial Statements continued