Verizon Wireless 2009 Annual Report Download - page 57

Notes to Consolidated Financial Statements continued
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NOTE 6
INVESTMENTS IN UNCONSOLIDATED BUSINESSES
Our investments in unconsolidated businesses are comprised of the
following:
(dollars in millions)
At December 31, Ownership 2009 2008
Equity Investees
Vodafone Omnitel 23.1% $ 1,978 $ 2,182
Other Various 1,130 877
Total equity investees 3,108 3,059
Cost Investees Various 427 334
Total investments in
unconsolidated businesses $ 3,535 $ 3,393
Dividends and repatriations of foreign earnings received from these
investees amounted to $942 million in 2009, $779 million in 2008 and
$2,571 million in 2007.
Equity Method Investments
Vodafone Omnitel
Vodafone Omnitel N.V. (Vodafone Omnitel) is the second largest wireless
communications company in Italy. At December 31, 2009 and 2008, our
investment in Vodafone Omnitel included goodwill of $1,132 million and
$1,105 million, respectively. During 2009 and 2008, Verizon received net
distributions from Vodafone Omnitel of approximately $874 million and
$670 million, respectively.
Other Equity Investees
We have limited partnership investments in entities that invest in afford-
able housing projects, for which we provide funding as a limited partner
and receive tax deductions and tax credits based on our partnership
interests. At December 31, 2009 and 2008, we had equity investments
in these partnerships of $888 million and $761 million, respectively. We
adjust the carrying value of these investments for any losses incurred by
the limited partnerships through earnings.
The remaining investments include wireless partnerships in the U.S. and
other smaller domestic and international investments.
Cost Method Investments
Some of our cost investments are carried at their current market value.
Other cost investments are carried at their original cost if the current
market value is not readily determinable. We do however, adjust the
carrying value of these securities in cases where we have determined
that a decline in their estimated market value is other-than-temporary.
The carrying value for investments carried at cost was not significant at
December 31, 2009 and 2008.
Summarized Financial Information
Summarized financial information for our equity investees is as follows:
Balance Sheet
(dollars in millions)
At December 31, 2009 2008
Current assets $ 3,588 $ 3,247
Noncurrent assets 8,179 8,315
Total assets $ 11,767 $ 11,562
Current liabilities $ 6,804 $ 5,847
Noncurrent liabilities 49 54
Equity 4,914 5,661
Total liabilities and equity $ 11,767 $ 11,562
Income Statement
(dollars in millions)
Years Ended December 31, 2009 2008 2007
Net revenue $ 12,903 $ 13,077 $ 11,317
Operating income 4,313 3,820 4,643
Net income 2,717 2,634 2,511
NOTE 7
NONCONTROLLING INTEREST
Noncontrolling interests in equity of subsidiaries were as follows:
(dollars in millions)
At December 31, 2009 2008
Noncontrolling interests in consolidated subsidiaries:
Wireless joint venture $ 41,950 $ 36,683
Cellular partnerships and other 811 516
$ 42,761 $ 37,199
Wireless Joint Venture
Our Domestic Wireless segment, Cellco Partnership doing business
as Verizon Wireless (Verizon Wireless) is a joint venture formed in April
2000 by the combination of the U.S. wireless operations and interests of
Verizon and Vodafone. Verizon owns a controlling 55% interest in Verizon
Wireless and Vodafone owns the remaining 45%.