AT&T Wireless 2012 Annual Report Download - page 74

Notes to Consolidated Financial Statements (continued)
Dollars in millions except per share amounts
72 | AT&T Inc.
Debt maturing within one year consisted of the following at
December 31:
2012 2011
Current maturities of long-term debt $3,485 $3,453
Bank borrowings1 1 —
Total $3,486 $3,453
1 Outstanding balance of short-term credit facility of a foreign subsidiary.
Debt Refinancing
During 2012, we received net proceeds of $13,486, from the
issuance of $13,569 in long-term debt with an average
weighted maturity of approximately 12 years and an average
interest rate of 2.54%. We redeemed $8,083 in borrowing,
including $6,200 in early redemptions, with an average
interest rate of 5.58%.
Debt Exchange
During 2012, we completed a private debt exchange covering
$4,099 of various notes with stated rates of 6.00% to 8.75%
for $1,956 in new 4.3% AT&T Inc. global notes due 2042 and
$3,044 in new 4.35% AT&T Inc. global notes due 2045 plus a
$650 cash payment.
As of December 31, 2012 and 2011, we were in compliance
with all covenants and conditions of instruments governing
our debt. Substantially all of our outstanding long-term debt
is unsecured. Maturities of outstanding long-term notes and
debentures, as of December 31, 2012, and the corresponding
weighted-average interest rate scheduled for repayment are
as follows:
There-
2013 2014 2015 2016 2017 after
Debt
repayments1 $3,475 $3,788 $6,514 $4,923 $4,757 $47,578
Weighted-
average
interest rate 4.9% 5.2% 3.2% 3.7% 2.5% 5.5%
1 Debt repayments assume putable debt is redeemed by the holders at the next
opportunity.
Credit Facilities
On December 11, 2012, we amended and extended for an
additional one-year term our existing $5,000, four-year
revolving credit agreement (Four-Year Agreement) with a
syndicate of banks until December 2016. We also entered
into a new $3,000, five-year revolving credit agreement
(Five-Year Agreement), with a syndicate of banks, to replace
our expiring 364-day revolving credit agreement. In the event
advances are made under either agreement, those advances
would be used for general corporate purposes. Advances
are not conditioned on the absence of a material adverse
change. All advances must be repaid no later than the date
on which lenders are no longer obligated to make any
advances under each agreement. Under each agreement,
we can terminate, in whole or in part, amounts committed by
the lenders in excess of any outstanding advances; however,
2012 2011
Beginning of year $3,718 $4,515
Additional investments 405 35
Equity in net income of affiliates 752 784
Dividends received (137) (161)
Dispositions — (660)
Currency translation adjustments 95 (515)
América Móvil equity adjustments (260) (171)
Other adjustments 8 (109)
End of year $4,581 $3,718
Undistributed earnings from equity affiliates were $6,375 and
$5,760 at December 31, 2012 and 2011.
At December 31, 2012 the fair value of our investment in
América Móvil, based on the equivalent value of América
Móvil L shares was $8,380.
NOTE 8. DEBT
Long-term debt of AT&T and its subsidiaries, including interest
rates and maturities, is summarized as follows at December 31:
2012 2011
Notes and debentures
Interest Rates Maturities1
0.80% – 2.99% 2012 – 2022 $13,969 $ 5,500
3.00% – 4.99% 2012 – 2045 14,590 8,659
5.00% – 6.99% 2012 – 2095 35,226 41,390
7.00% – 9.10% 2012 – 2097 7,059 8,471
Other 2 3
Fair value of interest rate swaps
recorded in debt 267 445
71,113 64,468
Unamortized (discount) premium – net (1,535) 46
Total notes and debentures 69,578 64,514
Capitalized leases 265 239
Total long-term debt, including
current maturities 69,843 64,753
Current maturities of long-term debt (3,485) (3,453)
Total long-term debt $66,358 $61,300
1 Maturities assume putable debt is redeemed by the holders at the next opportunity.
Current maturities of long-term debt include debt that may
be put back to us by the holders in 2013. 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.