AT&T Wireless 2009 Annual Report Download - page 76

Notes to Consolidated Financial Statements (continued)
Dollars in millions except per share amounts
74 AT&T 09 AR
Current maturities of long-term debt include debt that may be
put back to us by the holders in 2010.
We have $1,000 of annual put reset securities issued by
BellSouth that can be put each April until maturity in 2021. If
the holders do not require us to repurchase the securities, the
interest rate will be reset based on current market conditions.
Likewise, we have an accreting zero-coupon note that may be
redeemed each May, excluding May 2011, until maturity in
2022. If the zero-coupon note (issued for principal of $500 in
2007) is held to maturity, the redemption amount will be
$1,030.
Debt maturing within one year consists of the following at
December 31:
2009 2008
Commercial paper $ — $ 4,575
Current maturities of long-term debt 7,328 9,503
Bank borrowings1 33 41
Total $7,361 $14,119
1 Outstanding balance of short-term credit facility of a foreign subsidiary.
During 2009, we received net proceeds of $8,161 from the
issuance of $8,228 in long-term debt. Debt proceeds were
used for general corporate purposes, including the repayment
of maturing debt. Long-term debt issuances consisted of:
 • $1,000of4.85%globalnotesduein2014.
 • $2,250of5.80%globalnotesduein2019.
 • $2,250of6.55%globalnotesduein2039.
 • £750of5.875%globalnotesduein2017(equivalentto
$1,107 when issued).
 • £1,100of7.0%globalnotesduein2040(equivalentto
$1,621 when issued).
During 2009, debt repayments totaled $13,236 and
consisted of:
 • $8,633inrepaymentsoflong-termdebt(includes
repayment of $1,957 for Centennial debt).
 • $4,583inrepaymentsofcommercialpaperandshort-
term bank borrowings.
 • $20inrepaymentsofotherdebt.
As of December 31, 2009 and 2008, we were in
compliance with all covenants and conditions of instruments
governing our debt. Substantially all of our outstanding
long-term debt is unsecured. Excluding capitalized leases,
the aggregate principal amounts of long-term debt and the
corresponding weighted-average interest rate scheduled
for repayment are as follows:
There-
2010 2011 2012 2013 2014 after
Debt
repayments1 $7,328 $7,536 $4,836 $5,825 $4,789 $39,707
Weighted-
average
 interestrate 3.4% 7.1% 6.6% 5.6% 5.1% 6.6%
1 Debt repayments assume putable debt is redeemed by the holders at the next opportunity.
The following table is a reconciliation of our investments
in equity affiliates as presented on our consolidated balance
sheets:
2009 2008
Beginning of year $2,332 $2,270
Additional investments 44 —
Equity in net income of affiliates 734 819
Dividends received (317) (164)
Currency translation adjustments 125 (574)
Other adjustments 3 (19)
End of year $2,921 $2,332
Undistributed earnings from equity affiliates were $3,408
and $2,989 at December31, 2009 and 2008. The currency
translation adjustment for 2009 and 2008 reflects the effect
of exchange rate fluctuations on our investments in Telmex,
Telmex Internacional and América Móvil.
The fair value of our investment in Telmex, based on the
equivalent value of Telmex L shares at December 31, 2009,
was $1,492. The fair value of our investment in América Móvil,
based on the equivalent value of América Móvil L shares
at December 31, 2009, was $6,741. The fair value of our
investment in Telmex Internacional, based on the equivalent
value of Telmex Internacional L shares at December 31, 2009,
was $1,597.
NOTE 8. DEBT
Long-term debt of AT&T and its subsidiaries, including interest
rates and maturities, is summarized as follows at December31:
2009 2008
Notes and debentures
Interest Rates Maturities1
 0.35% –2.99% 2009 – 2010 $ 3,500 $ 1,500
 3.00% –4.99% 2009 – 2014 5,853 10,577
 5.00% –6.99% 2009 – 2095 41,331 37,613
 7.00% –9.10% 2009 – 2097 19,069 18,007
Other 136 138
Fair value of interest rate swaps
recorded in debt 310 527
70,199 68,362
Unamortized premium, net of discount 1,612 1,846
Total notes and debentures 71,811 70,208
Capitalized leases 237 167
Total long-term debt, including
current maturities 72,048 70,375
Current maturities of long-term debt (7,328) (9,503)
Total long-term debt $64,720 $60,872
1 Maturities assume putable debt is redeemed by the holders at the next opportunity.