AT&T Wireless 2013 Annual Report Download - page 54

Notes to Consolidated Financial Statements (continued)
Dollars in millions except per share amounts
52 | AT&T Inc.
NOTE 9. DEBT
Long-term debt of AT&T and its subsidiaries, including
interest rates and maturities, is summarized as follows
at December 31:
2013 2012
Notes and debentures
Interest Rates Maturities1
0.60% – 2.99% 2015 – 2022 $18,774 $13,969
3.00% – 4.99% 2013 – 2045 22,327 14,590
5.00% – 6.99% 2013 – 2095 28,513 35,226
7.00% – 9.10% 2013 – 2097 6,268 7,059
Other 1 2
Fair value of interest rate swaps
recorded in debt 154 267
76,037 71,113
Unamortized (discount) premium – net (1,553) (1,535)
Total notes and debentures 74,484 69,578
Capitalized leases 283 265
Total long-term debt, including
current maturities 74,767 69,843
Current maturities of long-term debt (5,477) (3,485)
Total long-term debt $69,290 $66,358
1 Maturities assume putable debt is redeemed by the holders at the next opportunity.
We had outstanding Euro, British pound sterling or
Canadian dollar denominated debt of approximately
$18,206 and $11,951 at December 31, 2013 and 2012.
The weighted average interest rate of our entire long-term
debt portfolio decreased from 4.9% at December 31, 2012
to 4.5% at December 31, 2013.
Current maturities of long-term debt include debt that may
be put back to us by the holders in 2014. 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:
2013 2012
Current maturities of long-term debt $5,477 $3,485
Commercial paper 20 —
Bank borrowings1 1 1
Total $5,498 $3,486
1 Outstanding balance of short-term credit facility of a foreign subsidiary.
YP Holdings We hold a 47% interest in YP Holdings,
an online advertising company and directory publisher.
During 2013, we received $200 from the repayment of
advances to YP Holdings and $101 from the return of
investment in YP Holdings.
América Móvil América Móvil is primarily a wireless
provider in Mexico with telecommunications investments
in the United States, Latin America and Europe. We are a
member of a consortium that holds all of the class AA
shares of América Móvil stock, representing voting control
of the company. Another member of the consortium has
the right to appoint a majority of the directors of América
Móvil. During 2013, we sold a portion of our shares in
América Móvil, to maintain our historical ownership
percentage in conjunction with América Móvil’s repurchase
activity. At December 31, 2013, the fair value of our 8.7%
investment in América Móvil, based on the equivalent
value of América Móvil L shares, was $7,166.
Telmex Transaction During 2011, the Board of Directors
of América Móvil approved and completed a tender offer
for the remaining outstanding shares of Telmex that were
not already owned by América Móvil. In conjunction with
the tender of our shares, we have recorded our portion of
América Móvil’s resulting equity adjustments.
The following table is a reconciliation of our investments
in equity affiliates as presented on our consolidated
balance sheets:
2013 2012
Beginning of year $4,581 $3,718
Additional investments 111 405
Equity in net income of affiliates 642 752
Dividends and Distributions received (318) (137)
Currency translation adjustments 61 95
Sale of América Móvil shares (781) —
Return of advances to and
investments in YP Holdings (301) —
América Móvil equity adjustments (124) (260)
Other adjustments (11) 8
End of year $3,860 $4,581
Undistributed earnings from equity affiliates were $6,699
and $6,375 at December 31, 2013 and 2012.