Notes to Consolidated Financial Statements
Note 6
Investments in Unconsolidated Businesses
Our investments in unconsolidated businesses are comprised of the following:
|
(dollars in millions) |
||||||||
At December 31, |
Ownership |
|
2010 |
|
2009 |
|
||
|---|---|---|---|---|---|---|---|---|
Equity Investees |
||||||||
Vodafone Omnitel |
23.1 |
% |
$ |
2,002 |
|
$ |
1,978 |
|
Other |
Various |
|
|
1,471 |
|
|
1,130 |
|
Total equity investees |
|
|
|
3,473 |
|
|
3,108 |
|
Cost Investees |
Various |
|
|
24 |
|
|
10 |
|
Total investments in unconsolidated businesses |
|
|
$ |
3,497 |
|
$ |
3,118 |
|
Dividends and repatriations of foreign earnings received from these investees amounted to $0.5 billion in 2010, $0.9 billion in 2009 and $0.8 billion in 2008.
Equity Method Investments
Vodafone Omnitel
Vodafone Omnitel N.V. (Vodafone Omnitel) is the second largest wireless communications company in Italy. At December 31, 2010 and 2009, our investment in Vodafone Omnitel included goodwill of $1.1 billion.
Other Equity Investees
We have limited partnership investments in entities that invest in affordable housing projects, for which we provide funding as a limited partner and receive tax deductions and tax credits based on our partnership interests. At December 31, 2010 and 2009, we had equity investments in these partnerships of $1.2 billion and $0.9 billion, respectively. We adjust the carrying value of these investments for any losses incurred by the limited partnerships through earnings.
The remaining investments include wireless partnerships in the U.S. and other smaller domestic and international investments.
Cost Method Investments
Some of our cost investments are carried at their current market value. Other cost investments are carried at their original cost if the current market value is not readily determinable. We do however, adjust the carrying value of these securities in cases where we have determined that a decline in their estimated market value is other-than-temporary.
Summarized Financial Information
Summarized financial information for our equity investees is as follows:
Balance Sheet
|
(dollars in millions) |
||||||
At December 31, |
2010 |
|
2009 |
|
||
|---|---|---|---|---|---|---|
Current assets |
$ |
3,620 |
|
$ |
3,588 |
|
Noncurrent assets |
|
7,568 |
|
|
8,179 |
|
Total assets |
$ |
11,188 |
|
$ |
11,767 |
|
|
|
|
|
|
|
|
Current liabilities |
$ |
5,509 |
|
$ |
6,804 |
|
Noncurrent liabilities |
|
8 |
|
|
49 |
|
Equity |
|
5,671 |
|
|
4,914 |
|
Total liabilities and equity |
$ |
11,188 |
|
$ |
11,767 |
|
Income Statement
(dollars in millions) |
|||||||||
Years Ended December 31, |
2010 |
|
2009 |
|
2008 |
|
|||
|---|---|---|---|---|---|---|---|---|---|
Net revenue |
$ |
12,356 |
|
$ |
12,903 |
|
$ |
13,077 |
|
Operating income |
|
4,156 |
|
|
4,313 |
|
|
3,820 |
|
Net income |
|
2,563 |
|
|
2,717 |
|
|
2,634 |
|