Verizon Wireless 2013 Annual Report Download - page 56

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54
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
Verizon Wireless – Notes Payable and Other
Verizon Wireless Capital LLC, a wholly-owned subsidiary of Verizon
Wireless, is a limited liability company formed under the laws of Delaware
on December 7, 2001 as a special purpose nance subsidiary to facilitate
the oering of debt securities of Verizon Wireless by acting as co-issuer.
Other than the financing activities as a co-issuer of Verizon Wireless
indebtedness, Verizon Wireless Capital LLC has no material assets, opera-
tions or revenues. Verizon Wireless is jointly and severally liable with
Verizon Wireless Capital LLC for co-issued notes.
2013
During November 2013, $1.25 billion of 7.375% Verizon Wireless Notes
and $0.2 billion of 6.50% Verizon Wireless Notes matured and were
repaid. Also during November 2013, Verizon Wireless redeemed $3.5 bil-
lion of 5.55% Notes, due February 1, 2014 at a redemption price of 101%
of the principal amount of the notes. Any accrued and unpaid interest
was paid to the date of redemption.
2012
During February 2012, $0.8 billion of 5.25% Verizon Wireless Notes
matured and were repaid. During July 2012, $0.8 billion of 7.0% Verizon
Wireless Notes matured and were repaid.
Telephone and Other Subsidiary Debt
2013
During May 2013, $0.1 billion of 7.0% Verizon New York Inc. Debentures
matured and were repaid. During June 2013, $0.1 billion of 7.0% Verizon
New York Inc. Debentures matured and were repaid. In addition, during
June 2013, we redeemed $0.25 billion of 7.15% Verizon Maryland LLC
Debentures, due May 2023 at a redemption price of 100% of the prin-
cipal amount of the debentures. During October 2013, $0.3 billion of
4.75% Verizon New England Inc. Debentures matured and were repaid.
During November 2013, we redeemed $0.3 billion of 6.70% Verizon New
York Inc. Debentures, due November 2023 at a redemption price of 100%
of the principal amount of the debentures. During December 2013,
we redeemed $0.2 billion of 7.0% Verizon New York Inc. Debentures,
due December 2033 at a redemption price of 100% of the principal
amount of the debentures and $20 million of 7.0% Verizon Delaware LLC
Debentures, due December 2023 at a redemption price of 100% of the
principal amount of the debentures. Any accrued and unpaid interest
was paid to the date of redemption.
2012
During January 2012, $1.0 billion of 5.875% Verizon New Jersey Inc.
Debentures matured and were repaid. During December 2012, we
redeemed the $1.0 billion of 4.625% Verizon Virginia LLC Debentures,
Series A, due March 2013 at a redemption price of 101.1% of the principal
amount of the debentures. Any accrued and unpaid interest was paid to
the date of redemption.
In addition, during 2012, various Telephone and Other Subsidiary
Debentures totaling approximately $0.2 billion were repaid and any
accrued and unpaid interest was paid to the date of payment.
Early Debt Redemption and Other Costs
During November 2012, we recorded debt redemption costs of $0.8 bil-
lion in connection with the purchase of $0.9 billion of the $1.25 billion of
8.95% Verizon Communications Notes due 2039 in a cash tender oer.
During December 2012, we recorded debt redemption costs of $0.3 bil-
lion in connection with the early redemption of $0.7 billion of the $2.0
billion of 8.75% Verizon Communications Notes due 2018, $1.0 billion of
4.625% Verizon Virginia LLC Debentures, Series A, due March 2013 and
$0.75 billion of 4.35% Verizon Communications Notes due February 2013,
as well as $0.3 billion of other costs.
Guarantees
We guarantee the debentures and rst mortgage bonds of our operating
telephone company subsidiaries. As of December 31, 2013, $3.1 billion
principal amount of these obligations remain outstanding. Each guar-
antee will remain in place for the life of the obligation unless terminated
pursuant to its terms, including the operating telephone company no
longer being a wholly-owned subsidiary of Verizon.
We also guarantee the debt obligations of GTE Corporation that were
issued and outstanding prior to July 1, 2003. As of December 31, 2013,
$1.7 billion principal amount of these obligations remain outstanding.
Debt Covenants
We and our consolidated subsidiaries are in compliance with all debt
covenants.
Maturities of Long-Term Debt
Maturities of long-term debt outstanding at December 31, 2013 are as
follows:
Years (dollars in millions)
2014 $ 3,486
2015 2,740
2016 10,818
2017 1,331
2018 14,970
Thereafter 59,799