Verizon Wireless 2014 Annual Report Download - page 55

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NOTE 8
DEBT
Changes to debt during 2014 are as follows:
(dollars in millions)
Debt Maturing
within One Year
Long-term
Debt Total
Balance at January 1, 2014 $ 3,933 $ 89,658 $ 93,591
Proceeds from long-term borrowings – 30,967 30,967
Verizon Notes – 5,000 5,000
Preferred Stock (Mandatorily Redeemable) – 1,650 1,650
Repayments of long-term borrowings and capital leases obligations (4,022) (13,647) (17,669)
Decrease in short-term obligations, excluding current maturities (475) – (475)
Reclassications of long-term debt 2,739 (2,739) –
Other 560 (353) 207
Balance at December 31, 2014 $ 2,735 $ 110,536 $ 113,271
Debt maturing within one year is as follows:
(dollars in millions)
At December 31, 2014 2013
Long-term debt maturing within one year $ 2,397 $ 3,486
Short-term notes payable 319 –
Commercial paper and other 19 447
Total debt maturing within one year $ 2,735 $ 3,933
The weighted-average interest rate for our commercial paper outstanding was 0.4% and 0.2% at December 31, 2014 and 2013, respectively.
Credit Facilities
On July 31, 2014, we amended our $6.2 billion credit facility to increase the availability to $8.0 billion and extend the maturity to July 31, 2018. At the
same time, we terminated our $2.0 billion 364-day revolving credit agreement. As of December 31, 2014, the unused borrowing capacity under this
credit facility was approximately $7.9 billion. The credit facility does not require us to comply with nancial covenants or maintain specied credit rat-
ings, and it permits us to borrow even if our business has incurred a material adverse change. We use the credit facility for the issuance of letters of
credit and for general corporate purposes.
As Lessee
We lease certain facilities and equipment for use in our operations under
both capital and operating leases. Total rent expense under operating
leases amounted to $2.7 billion in 2014, $2.6 billion in 2013 and $2.5 bil-
lion in 2012, respectively.
On February 5, 2015, we announced an agreement with American
Tower pursuant to which American Tower will have the exclusive rights
to lease and operate over 11,300 of our wireless towers for an upfront
payment of $5.0 billion. We will sublease capacity on the towers from
American Tower for a minimum of 10 years at current market rates, with
options to renew. Under this agreement, we expect to make minimum
future lease payments of approximately $2.8 billion. See Note 2 for
additional information.
Amortization of capital leases is included in Depreciation and amortiza-
tion expense in the consolidated statements of income. Capital lease
amounts included in Plant, property and equipment are as follows:
(dollars in millions)
At December 31, 2014 2013
Capital leases $ 319 $ 353
Less accumulated amortization 171 188
Total $ 148 $ 165
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
The aggregate minimum rental commitments under noncancelable
leases for the periods shown at December 31, 2014, are as follows:
(dollars in millions)
Years
Capital
Leases
Operating
Leases
2015 $ 181 $ 2,499
2016 137 2,245
2017 113 1,960
2018 68 1,660
2019 39 1,369
Thereafter 60 4,670
Total minimum rental commitments 598 $ 14,403
Less interest and executory costs 82
Present value of minimum lease payments 516
Less current installments 158
Long-term obligation at December 31, 2014 $ 358