Verizon Wireless 2012 Annual Report Download - page 64

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
NOTE 4
PLANT, PROPERTY AND EQUIPMENT
The following table displays the details of Plant, property and equipment,
which is stated at cost:
(dollars in millions)
At December 31, Lives (years) 2012 2011
Land – $ 859 $ 862
Buildings and equipment 15– 45 22,909 21,969
Central office and other network
equipment 3 –15 113,262 107,322
Cable, poles and conduit 11– 50 53,761 67,190
Leasehold improvements 5 – 20 5,404 5,030
Work in progress – 4,126 3,417
Furniture, vehicles and other 3 –20 9,254 9,836
209,575 215,626
Less accumulated depreciation 120,933 127,192
Total $ 88,642 $ 88,434
NOTE 5
INVESTMENTS IN UNCONSOLIDATED BUSINESSES
Our investments in unconsolidated businesses are comprised of the
following:
(dollars in millions)
At December 31, Ownership 2012 2011
Equity Investees
Vodafone Omnitel 23.1% $ 2,200 $ 2,083
Other Various 1,106 1,320
Total equity investees 3,306 3,403
Cost Investees Various 95 45
Total investments in
unconsolidated businesses $ 3,401 $ 3,448
Dividends and repatriations of foreign earnings received from these
investees amounted to $0.4 billion in 2012, $0.5 billion in 2011 and $0.5
billion in 2010. See Note 12 regarding undistributed earnings of our for-
eign subsidiaries.
Equity Method Investments
Vodafone Omnitel
Vodafone Omnitel N.V. (Vodafone Omnitel) is one of the largest wireless
communications companies in Italy. At December 31, 2012 and 2011,
our investment in Vodafone Omnitel included goodwill of $1.0 billion,
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, 2012 and 2011, we had equity investments in
these partnerships of $0.9 billion and $1.1 billion, 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.
Summarized Financial Information
Summarized financial information for our equity investees is as follows:
Balance Sheet
(dollars in millions)
At December 31, 2012 2011
Current Assets $ 3,516 $ 3,720
Noncurrent Assets 8,159 8,469
Total Assets $ 11,675 $ 12,189
Current liabilities $ 5,526 $ 6,123
Noncurrent liabilities 5 8
Equity 6,144 6,058
Total liabilities and equity $ 11,675 $ 12,189
Income Statement
(dollars in millions)
Years Ended December 31, 2012 2011 2010
Net revenue $ 10,825 $ 12,668 $ 12,356
Operating income 2,823 4,021 4,156
Net income 1,679 2,451 2,563
NOTE 6
NONCONTROLLING INTEREST
Noncontrolling interests in equity of subsidiaries were as follows:
(dollars in millions)
At December 31, 2012 2011
Noncontrolling interests in consolidated subsidiaries:
Verizon Wireless $ 51,492 $ 49,165
Wireless partnerships and other 884 773
$ 52,376 $ 49,938
Wireless Joint Venture
Our Verizon Wireless segment is primarily comprised of Cellco Partnership
doing business as Verizon Wireless (Verizon Wireless). Cellco Partnership
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%.
Special Distributions
In November 2012, the Board of Representatives of Verizon Wireless
declared a distribution to its owners, which was paid in the fourth quarter
of 2012 in proportion to their partnership interests on the payment date,
in the aggregate amount of $8.5 billion. As a result, Vodafone received a
cash payment of $3.8 billion and the remainder of the distribution was
received by Verizon.
In July 2011, the Board of Representatives of Verizon Wireless declared
a distribution to its owners, which was paid in the first quarter of 2012
in proportion to their partnership interests on the payment date, in
the aggregate amount of $10 billion. As a result, Vodafone received a
cash payment of $4.5 billion and the remainder of the distribution was
received by Verizon.