AT&T Wireless 2011 Annual Report Download - page 72

Notes to Consolidated Financial Statements (continued)
Dollars in millions except per share amounts
70 AT&T Inc.
Current maturities of long-term debt include debt that may
be put back to us by the holders in 2012. We have $1,000
of annual put reset securities that may 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, 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 consisted of the following at
December 31:
2011 2010
Current maturities of long-term debt1 $3,453 $5,544
Commercial paper — 1,625
Bank borrowings2 — 27
Total $3,453 $7,196
1 Current maturities of long-term debt does not include $1,200 of long-term debt,
which was called on January 13, 2012, and redeemed on February 15, 2012.
2 Outstanding balance of short-term credit facility of a foreign subsidiary.
During 2011, we issued debt with net proceeds of $7,936
from the following:
 •April2011issuanceof$1,750of2.95%globalnotesdue
2016 and $1,250 of 4.45% global notes due 2021.
 •August2011issuanceof$1,500of2.40%globalnotes
due 2016, $1,500 of 3.875% global notes due 2021, and
$2,000 of 5.55% global notes due 2041.
Debt proceeds were used for general corporate purposes.
During 2011, debt repayments totaled $9,226 and consisted of:
 •$4,543inrepaymentsoflong-termdebtwithaweighted-
average interest rate of 6.58%.
 •$1,625inrepaymentsofcommercialpaper,netof
issuances.
 •$1,000fortheearlyredemptionoftheSBC
Communications Inc. 5.875% global notes originally due
on February 1, 2012.
 •$2,000fortheearlyredemptionoftheNewCingular
Wireless Services, Inc. 8.125% notes originally due on
May 1, 2012.
 •$31inrepaymentsofcapitalizedleases.
 •$27inrepaymentsofshort-termbankborrowings.
On February 13, 2012, we issued $1,000 of 0.875% global
notes due 2015, $1,000 of 1.60% global notes due 2017,
and $1,000 of 3.00% global notes due 2022.
The following table is a reconciliation of our investments
in equity affiliates as presented on our consolidated balance
sheets:
2011 2010
Beginning of year $4,515 $2,921
Additional investments 35 220
Equity in net income of affiliates 784 762
Dividends received (161) (159)
Dispositions (660) (204)
Currency translation adjustments (515) 203
América Móvil equity adjustments (171) —
Telmex Internacional exchange — 658
Other adjustments (109) 114
End of year $3,718 $4,515
Undistributed earnings from equity affiliates were $5,760
and $5,137 at December 31, 2011 and 2010. The currency
translation adjustment for 2011 and 2010 reflects the effect
of exchange rate fluctuations on our investments in Telmex
and América Móvil.
The fair value of our investment in América Móvil, based
on the equivalent value of América Móvil L shares at
December 31, 2011, was $8,185.
NOTE 8. DEBT
Long-term debt of AT&T and its subsidiaries, including interest
rates and maturities, is summarized as follows at December 31:
2011 2010
Notes and debentures
Interest Rates Maturities1
0.35% – 2.99% 2011 – 2016 $ 5,500 $ 2,250
3.00% – 4.99% 2011 – 2021 8,659 5,880
5.00% – 6.99% 2011 – 2095 41,390 43,506
7.00% – 9.10% 2011 – 2097 8,471 11,986
Other 3 14
Fair value of interest rate swaps
recorded in debt 445 435
64,468 64,071
Unamortized premium, net of discount 46 185
Total notes and debentures 64,514 64,256
Capitalized leases 239 259
Total long-term debt, including
current maturities 64,753 64,515
Current maturities of long-term debt2 (3,453) (5,544)
Total long-term debt $61,300 $58,971
1 Maturities assume putable debt is redeemed by the holders at the next opportunity.
2 Current maturities of long-term debt does not include $1,200 of long-term debt,
which was called on January 13, 2012, and redeemed on February 15, 2012.