Verizon Wireless 2007 Annual Report Download - page 71

Notes to Consolidated Financial Statements continued
69
NOTE 18
COMPREHENSIVE INCOME
Comprehensive income consists of net income and other gains and
losses affecting shareowners’ investment that, under GAAP, are excluded
from net income. Significant changes in the components of other
comprehensive income (loss), net of income tax expense (benefit), are
described below.
Foreign Currency Translation
(dollars in millions)
Years Ended December 31, 2007 2006 2005
Foreign Currency Translation
Adjustments:
Vodafone Omnitel $ 397 $ 330 $ (590)
CANTV 412 – (47)
Verizon Dominicana –786 (114)
Other international operations 29 80 (4)
$ 838 $ 1,196 $ (755)
We sold our interest in CANTV during the second quarter of 2007. We
sold our interest in Verizon Dominicana during the fourth quarter of
2006. See Note 2 for information on CANTV and Verizon Dominicana. The
foreign currency translation adjustment in 2005 represents unrealized
losses from the decline in the functional currencies of our investments in
Vodafone Omnitel, Verizon Dominicana and CANTV.
Unrealized Gains (Losses) on Marketable Securities
The changes in Unrealized Gains (Losses) on Marketable Securities were
as follows:
(dollars in millions)
Years Ended December 31, 2007 2006 2005
Unrealized Gains (Losses) on
Marketable Securities
Unrealized gains, net of taxes of
$13, $30 and $10 $ 13 $ 79 $ 4
Less reclassication adjustments for
gains realized in net income,
net of taxes of $11, $13 and $14 (17) (25) (25)
Net unrealized gains (losses) on
marketable securities $ (4) $ 54 $ (21)
Defined Benefit Pension and Postretirement Plans
During 2007, the change in defined benefit pension and postretire-
ment plans of $1,948 million, net of taxes of $661 million, represents the
change in the funded status of the plans in connection with the annual
pension and postretirement valuation in accordance with SFAS No. 158.
The funded status was impacted by changes in actuarial assumptions,
asset performance and plan experience.
Accumulated Other Comprehensive Loss
The components of Accumulated Other Comprehensive Loss are as
follows:
(dollars in millions)
At December 31, 2007 2006
Foreign currency translation adjustments $ 1,167 $ 329
Net unrealized losses on hedging (10) (11)
Unrealized gains on marketable securities 60 64
Dened benet pension and postretirement plans (5,723) (7,671)
Other –(241)
Accumulated Other Comprehensive Loss $ (4,506) $ (7,530)
The foreign currency translation adjustments at December 31, 2007 were
primarily comprised of unrealized gains in the value of our investment in
Vodafone Omnitel as a result of the appreciation of the Euro.
NOTE 19
ADDITIONAL FINANCIAL INFORMATION
The tables that follow provide additional financial information related to
our consolidated financial statements:
Income Statement Information
(dollars in millions)
Years Ended December 31, 2007 2006 2005
Depreciation expense $ 13,036 $ 13,122 $ 12,171
Interest cost incurred 2,258 2,811 2,481
Capitalized interest (429) (462) (352)
Advertising expense 2,463 2,271 1,844
Balance Sheet Information
(dollars in millions)
At December 31, 2007 2006
Accounts Payable and Accrued Liabilities
Accounts payable $ 4,491 $ 4,392
Accrued expenses 2,400 2,982
Accrued vacation, salaries and wages 4,828 3,575
Interest payable 473 614
Accrued taxes 2,270 2,757
$ 14,462 $ 14,320
Other Current Liabilities
Advance billings and customer deposits $ 2,476 $ 2,226
Dividends payable 1,266 1,199
Other 3,583 4,666
$ 7,325 $ 8,091