Notes to Consolidated Financial Statements continued Long-Term Debt Outstanding long-term debt obligations are as follows: (dollars in millions) At December 31, Interest Rates % Maturities 2017 2016 Verizon—notes payable and other 1.38 3.96 2018 2047 $ 31,370 $ 28,491 4.09 5.51 2020 2055 67,906 53,909 5.82 6.90 2026 2054 5,835 11,295 7.35 8.95 2029 2039 1,106 1,860 Floating 2018 2025 6,684 9,750 Verizon Wireless—Alltel assumed notes 6.80 7.88 2029 2032 234 525 Telephone subsidiaries—debentures 5.13 6.50 2028 2033 226 319 7.38 7.88 2022 2032 341 561 8.00 8.75 2022 2031 229 328 Other subsidiaries—notes payable, debentures and other 6.70 8.75 2018 2028 748 1,102 Verizon Wireless and other subsidiaries—asset-backed debt 1.42 2.65 2021 2022 6,293 2,485 Floating 2021 2022 2,620 2,520 Capital lease obligations (average rate of 3.6% and 3.5% in 2017 and 2016, respectively) 1,020 950 Unamortized discount, net of premium (7,133) (5,716) Unamortized debt issuance costs (534) (469) Total long-term debt, including current maturities 116,945 107,910 Less long-term debt maturing within one year 3,303 2,477 Total long-term debt $ 113,642 $ 105,433 2017 February Exchange Offers and Cash Offers In February 2017, we completed private exchange and tender offers for 18 series of notes issued by Verizon (February Old Notes) for (i) new notes issued by Verizon (and, for certain series, cash) (February Exchange Offers) or (ii) cash (February Cash Offers). The February Old Notes had coupon rates ranging from 1.375% to 8.950% and maturity dates ranging from 2018 to 2043. In connection with the February Exchange Offers, we issued $3.2 billion aggregate principal amount of Verizon 2.946% Notes due 2022, $1.7 billion aggregate principal amount of Verizon 4.812% Notes due 2039 and $4.1 billion aggregate principal amount of Verizon 5.012% Notes due 2049, plus applicable cash of $0.6 billion, in exchange for $8.3 billion aggregate principal amount of February Old Notes. In connection with the February Cash Offers, we paid $0.5 billion cash to purchase $0.5 billion aggregate principal amount of February Old Notes. We subsequently purchased an additional $0.1 billion aggregate principal amount of February Old Notes for $0.1 billion cash, from certain holders whose tenders of notes in the February Cash Offers had been rejected. In addition to the exchange or purchase price, any accrued and unpaid interest on Old February Notes was paid at settlement. Term Loan Credit Agreements During January 2017, we entered into a term loan credit agreement with a syndicate of major financial institutions, pursuant to which we could borrow up to $5.5 billion for (i) the acquisition of Yahoo and (ii) general corporate purposes. None of the $5.5 billion borrowing capacity was used during 2017. In March 2017, the term loan credit agreement was terminated in accordance with its terms and as such, the related fees were recognized in Other income (expense), net and were not significant. In March 2017, we prepaid $1.7 billion of the outstanding $3.3 billion term loan that had an original maturity date of July 2019. During April 2017, we repaid the remaining outstanding amount under the term loan agreement. March Tender Offers In March 2017, we completed tender offers for 30 series of notes issued by Verizon and certain of its subsidiaries with coupon rates ranging from 5.125% to 8.950% and maturity dates ranging from 2018 to 2043 (March Tender Offers). In connection with the March Tender Offers, we purchased $2.8 billion aggregate principal amount of Verizon notes, $0.2 billion aggregate principal amount of our operating telephone company subsidiary notes and $0.1 billion aggregate principal amount of GTE LLC notes for total cash consideration of $3.8 billion. In addition to the purchase price, any accrued and unpaid interest on the purchased notes was paid to the date of purchase. 70 verizon.com/2017AnnualReport
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