Verizon Wireless 2013 Annual Report Download - page 52

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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) 2013 2012
Land – $ 819 $ 859
Buildings and equipment 15 – 45 23,857 22,909
Central oce and other network
equipment 3 – 15 121,594 113,262
Cable, poles and conduit 11 – 50 55,240 53,761
Leasehold improvements 5 – 20 5,877 5,404
Work in progress – 4,176 4,126
Furniture, vehicles and other 3 – 20 9,302 9,254
220,865 209,575
Less accumulated depreciation 131,909 120,933
Total $ 88,956 $ 88,642
NOTE 5
INVESTMENTS IN UNCONSOLIDATED BUSINESSES
Our investments in unconsolidated businesses are comprised of the
following:
(dollars in millions)
At December 31, Ownership 2013 2012
Equity Investees
Vodafone Omnitel 23.1% $ 2,511 $ 2,200
Other Various 818 1,106
Total equity investees 3,329 3,306
Cost Investees Various 103 95
Total investments in
unconsolidated businesses $ 3,432 $ 3,401
Dividends and repatriations of foreign earnings received from these
investees were not signicant in 2013, $0.4 billion in 2012 and $0.5 bil-
lion in 2011. See Note 12 regarding undistributed earnings of our foreign
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, 2013 and 2012,
our investment in Vodafone Omnitel included goodwill of $1.1 billion
and $1.0 billion, respectively. As part of the consideration of the Wireless
Transaction, a subsidiary of Verizon sold its entire ownership interest in
Vodafone Omnitel to a subsidiary of Vodafone on February 21, 2014. See
Note 2 for additional information.
Other Equity Investees
The remaining investments include wireless partnerships in the U.S., lim-
ited partnership investments in entities that invest in aordable housing
projects and other smaller domestic and international investments.
Summarized Financial Information
Summarized nancial information for our equity investees is as follows:
Balance Sheet
(dollars in millions)
At December 31, 2013 2012
Current assets $ 3,983 $ 3,516
Noncurrent assets 7,748 8,159
Total assets $ 11,731 $ 11,675
Current liabilities $ 4,692 $ 5,526
Noncurrent liabilities 5 5
Equity 7,034 6,144
Total liabilities and equity $ 11,731 $ 11,675
Income Statement
(dollars in millions)
Years Ended December 31, 2013 2012 2011
Net revenue $ 8,984 $ 10,825 $ 12,668
Operating income 1,632 2,823 4,021
Net income 925 1,679 2,451
NOTE 6
NONCONTROLLING INTERESTS
Noncontrolling interests in equity of subsidiaries were as follows:
(dollars in millions)
At December 31, 2013 2012
Verizon Wireless $ 55,465 $ 51,492
Wireless partnerships and other 1,115 884
$ 56,580 $ 52,376
Wireless Joint Venture
Our 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. As of December 31,
2013, Verizon owned a controlling 55% interest in Verizon Wireless and
Vodafone owned the remaining 45%. On February 21, 2014, Verizon com-
pleted the Wireless Transaction and acquired 100% ownership of Verizon
Wireless. See Note 2 for additional information.
Special Distributions
In May 2013, the Board of Representatives of Verizon Wireless declared
a distribution to its owners, which was paid in the second quarter of
2013 in proportion to their partnership interests on the payment date,
in the aggregate amount of $7.0 billion. As a result, Vodafone received a
cash payment of $3.15 billion and the remainder of the distribution was
received by Verizon.
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 rst 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.