Verizon Wireless 2011 Annual Report Download - page 67

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nOtEs tO cOnsOlidatEd Financial statEMEnts continued
NOTE 8
DEBT
Changes to debt during 2011 are as follows: (dollars in millions)
Debt Maturing
within One Year
Long-term
Debt Total
Balance at January 1, 2011 $ 7,542 $ 45,252 $ 52,794
Proceeds from long-term borrowings – 11,060 11,060
Repayments of long-term borrowings and capital leases obligations (11,805) – (11,805)
Increase in short-term obligations, excluding current maturities 1,928 – 1,928
Reclassifications of long-term debt 6,100 (6,100) –
Debt acquired (Note 2) 748 – 748
Other 336 91 427
Balance at December 31, 2011 $ 4,849 $ 50,303 $ 55,152
Debt maturing within one year is as follows:
(dollars in millions)
At December 31, 2011 2010
Long-term debt maturing within one year $ 2,915 $ 7,542
Commercial paper 1,934 –
Total debt maturing within one year $ 4,849 $ 7,542
The weighted average interest rate for our commercial paper outstanding at December 31, 2011 was 0.40%.
Credit Facility
As of December 31, 2011, the unused borrowing capacity under a $6.2 billion three-year credit facility with a group of major financial institutions was
approximately $6.1 billion. On April 15, 2011, we amended this facility primarily to reduce fees and borrowing costs and extend the maturity date to
October 15, 2014.
Long-Term Debt
Outstanding long-term debt obligations are as follows:
(dollars in millions)
At December 31, Interest Rates % Maturities 2011 2010
Verizon Communications – notes payable and other 1.25 – 3.50 2013 – 2021 $ 6,900 $ –
4.35 – 5.50 2013 – 2041 7,832 6,062
5.55 – 6.90 2016 – 2041 11,043 10,441
7.35 – 8.95 2018 – 2039 6,642 7,677
Floating 2014 1,000 –
Verizon Wireless – notes payable and other 5.25 – 5.55 2012 – 2014 4,250 7,000
7.38 – 8.88 2013 – 2018 5,081 5,975
Floating – – 1,250
Verizon Wireless – Alltel assumed notes 6.50 – 7.88 2012 – 2032 2,315 2,315
Telephone subsidiaries – debentures 4.63 – 7.00 2012 – 2033 4,045 7,937
7.15 – 7.88 2012 – 2032 1,449 1,449
8.00 – 8.75 2019 – 2031 880 880
Other subsidiaries – debentures and other 6.84 – 8.75 2018 – 2028 1,700 1,700
Capital lease obligations (average rates of 6.3% and 6.8%, respectively) 352 332
Unamortized discount, net of premium (271) (224)
Total long-term debt, including current maturities 53,218 52,794
Less long-term debt maturing within one year 2,915 7,542
Total long-term debt $ 50,303 $ 45,252
65
Verizon Communications – Notes Payable and Other
2011
During March 2011, we issued $6.25 billion aggregate principal amount of
fixed and floating rate notes resulting in cash proceeds of approximately
$6.19 billion, net of discounts and issuance costs. The issuances consisted
of the following: $1.0 billion of Notes due 2014 that bear interest at a
rate equal to three-month London Interbank Offered Rate (LIBOR) plus
0.61%, $1.5 billion of 1.95% Notes due 2014, $1.25 billion of 3.00% Notes
due 2016, $1.5 billion of 4.60% Notes due 2021 and $1.0 billion of 6.00%
Notes due 2041. The net proceeds were used for the repayment of com-
mercial paper and other general corporate purposes, as well as for the
redemption of certain telephone subsidiary debt during April 2011 (see
“Telephone and Other Subsidiary Debt” below).