AT&T Wireless 2014 Annual Report Download - page 57

AT&T INC. | 55
NOTE 9. DEBT
Long-term debt of AT&T and its subsidiaries, including
interest rates and maturities, is summarized as follows
at December 31:
2014 2013
Notes and debentures
Interest Rates Maturities1
0.60% – 2.99% 2015 – 2022 $22,127 $18,774
3.00% – 4.99% 2014 – 2045 31,516 22,327
5.00% – 6.99% 2014 – 2095 23,260 28,513
7.00% – 9.10% 2014 – 2097 6,153 6,268
Other — 1
Fair value of interest rate swaps
recorded in debt 125 154
83,181 76,037
Unamortized (discount) premium – net (1,549) (1,553)
Total notes and debentures 81,632 74,484
Capitalized leases 430 283
Total long-term debt, including
current maturities 82,062 74,767
Current maturities of long-term debt (6,051) (5,477)
Total long-term debt $76,011 $69,290
1 Maturities assume putable debt is redeemed by the holders at the next opportunity.
We had outstanding Euro, British pound sterling, Canadian
dollar and Swiss Franc denominated debt of approximately
$24,655 and $18,146 at December 31, 2014 and 2013.
The weighted-average interest rate of our entire long-term
debt portfolio, including the impact of derivatives,
decreased from 4.4% at December 31, 2013 to 4.2%
at December 31, 2014.
Current maturities of long-term debt include debt that may
be put back to us by the holders in 2015. 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:
2014 2013
Current maturities of long-term debt $6,051 $5,477
Commercial paper — 20
Bank borrowings1 5 1
Total $6,056 $5,498
1 Outstanding balance of short-term credit facility of a foreign subsidiary.
NOTE 8. EQUITY METHOD INVESTMENTS
Investments in partnerships, joint ventures and less than
majority-owned subsidiaries in which we have significant
influence are accounted for under the equity method.
Our investments in equity affiliates at December 31, 2014
primarily include our interests in Otter Media Holdings,
YP Holdings and Root Sports Southwest.
Otter Media Holdings We hold a 38% interest in
Otter Media Holdings, which was acquired in 2014 and
is a venture between The Chernin Group and AT&T, which
is focused on acquiring, investing in and launching
over-the-top subscription video services.
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.
Root Sports Southwest We hold a 40% interest in
Root Sports Southwest, which was acquired in 2014 and
is part of regional sports networks owned and operated
by DIRECTV Sports Networks LLC.
América Móvil We sold our remaining stake in América
Móvil in June 2014 (see Note 5).
The following table is a reconciliation of our investments in
equity affiliates as presented on our consolidated balance
sheets:
2014 2013
Beginning of year $ 3,860 $4,581
Additional investments 226 111
Equity in net income of affiliates 175 642
Dividends and distributions received (148) (318)
Currency translation adjustments — 61
Sale of América Móvil shares (3,817) (781)
Return of advances to and
investments in YP Holdings — (301)
América Móvil equity adjustments — (124)
Other adjustments (46) (11)
End of year $ 250 $3,860
Undistributed earnings from equity affiliates were $88 and
$3,346 at December31, 2014 and 2013.