Verizon Wireless 2014 Annual Report Download - page 53

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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) 2014 2013
Land – $ 763 $ 819
Buildings and equipment 15 – 45 25,209 23,857
Central oce and other network
equipment 3 – 15 129,619 121,594
Cable, poles and conduit 11 – 50 54,797 55,240
Leasehold improvements 5 – 20 6,374 5,877
Work in progress – 4,580 4,176
Furniture, vehicles and other 3 – 20 9,166 9,302
230,508 220,865
Less accumulated depreciation 140,561 131,909
Total $ 89,947 $ 88,956
NOTE 5
INVESTMENTS IN UNCONSOLIDATED BUSINESSES
Our investments in unconsolidated businesses are comprised of
the following:
(dollars in millions)
At December 31, Ownership 2014 2013
Equity Investees
Vodafone Omnitel(1) – $ – $ 2,511
Other Various 677 818
Total equity investees 677 3,329
Cost Investees Various 125 103
Total investments in
unconsolidated businesses $ 802 $ 3,432
(1) Prior to the completion of the Wireless Transaction on February 21, 2014, Verizon held a
23.1% ownership interest in Vodafone Omnitel.
Dividends and repatriations of foreign earnings received from these
investees were not signicant in 2014 and 2013 and $0.4 billion in 2012.
See Note 13 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. 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. At December 31, 2013, our
investment in Vodafone Omnitel included goodwill of $1.1 billion.
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
Current assets $ 3,983
Noncurrent assets 7,748
Total assets $ 11,731
Current liabilities $ 4,692
Noncurrent liabilities 5
Equity 7,034
Total liabilities and equity $ 11,731
Income Statement
(dollars in millions)
Years Ended December 31, 2013 2012
Net revenue $ 8,984 $ 10,825
Operating income 1,632 2,823
Net income 925 1,679
The financial information for our equity method investees in 2014,
including Vodafone Omnitel through the closing of the Wireless
Transaction in February 2014, was not signicant and therefore is not
reected in the tables above.
NOTE 6
NONCONTROLLING INTERESTS
Noncontrolling interests in equity of subsidiaries were as follows:
(dollars in millions)
At December 31, 2014 2013
Verizon Wireless $ – $ 55,465
Wireless partnerships and other 1,378 1,115
$ 1,378 $ 56,580
Wireless Joint Venture
Our Wireless segment is primarily comprised of Cellco Partnership doing
business as Verizon Wireless (Verizon Wireless). Cellco Partnership was
formed as a joint venture in April 2000 by the combination of the U.S.
wireless operations and interests of Verizon and Vodafone. On February
21, 2014, Verizon completed 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.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued