Verizon Wireless 2013 Annual Report Download - page 54

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52
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
NOTE 8
DEBT
Changes to debt during 2013 are as follows:
(dollars in millions)
Debt Maturing
within One Year
Long-term
Debt Total
Balance at January 1, 2013 $ 4,369 $ 47,618 $ 51,987
Proceeds from long-term borrowings – 49,166 49,166
Repayments of long-term borrowings and capital leases obligations (3,943) (4,220) (8,163)
Decrease in short-term obligations, excluding current maturities (142) – (142)
Reclassications of long-term debt 3,328 (3,328) –
Other 321 422 743
Balance at December 31, 2013 $ 3,933 $ 89,658 $ 93,591
Debt maturing within one year is as follows:
(dollars in millions)
At December 31, 2013 2012
Long-term debt maturing within one year $ 3,486 $ 3,869
Commercial paper and other 447 500
Total debt maturing within one year $ 3,933 $ 4,369
The weighted-average interest rate for our commercial paper outstanding was 0.2% and 0.4% at December 31, 2013 and 2012, respectively.
Credit Facilities
On August 13, 2013, we amended our $6.2 billion credit facility with a group of major nancial institutions to extend the maturity date to August 12,
2017. As of December 31, 2013, the unused borrowing capacity under this credit facility was approximately $6.1 billion.
During October 2013, we entered into a $2.0 billion 364-day revolving credit agreement with a group of major nancial institutions. Although eective
as of October 2013, we could not draw on this revolving credit agreement prior to the completion of the Wireless Transaction. We may use borrowings
under the 364-day credit agreement for general corporate purposes. The 364-day revolving credit agreement contains certain negative covenants,
including a negative pledge covenant, a merger or similar transaction covenant and an accounting changes covenant, armative covenants and
events of default that are customary for companies maintaining an investment grade credit rating. In addition, this agreement requires us to maintain
a leverage ratio (as dened in the agreement) not in excess of 3.50:1.00, until our credit ratings reach a certain level.
Long-Term Debt
Outstanding long-term debt obligations are as follows:
(dollars in millions)
At December 31, Interest Rates % Maturities 2013 2012
Verizon Communications–notes payable and other 0.50 – 3.85 2014 – 2042 $ 20,416 $ 11,198
4.50 – 5.50 2015 – 2041 20,226 7,062
5.55 – 6.90 2016 – 2043 31,965 11,031
7.35 – 8.95 2018 – 2039 5,023 5,017
Floating 2014 – 2018 5,500 1,000
Verizon Wireless–notes payable and other 8.50 – 8.88 2015 – 2018 3,931 8,635
Verizon Wireless–Alltel assumed notes 6.80 – 7.88 2016 – 2032 1,300 1,500
Telephone subsidiaries–debentures 5.13 – 6.86 2027 – 2033 1,075 2,045
7.38 – 7.88 2022 – 2032 1,099 1,349
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 rate of 8.1% and 6.3% in 2013 and 2012, respectively) 293 298
Unamortized discount, net of premium (264) (228)
Total long-term debt, including current maturities 93,144 51,487
Less long-term debt maturing within one year 3,486 3,869
Total long-term debt $ 89,658 $ 47,618