Notes to Consolidated Financial Statements

NOTE 19

ADDITIONAL FINANCIAL INFORMATION

The tables that follow provide additional financial information related to our consolidated financial statements:

Income Statement Information

(dollars in millions)

Years Ended December 31,

2007

 

2006

 

2005

 

Depreciation expense

$

13,036

 

$

13,122

 

$

12,171

 

Interest cost incurred

 

2,258

 

 

2,811

 

 

2,481

 

Capitalized interest

 

(429

)

 

(462

)

 

(352

)

Advertising expense

 

2,463

 

 

2,271

 

 

1,844

 

Balance Sheet Information

(dollars in millions)

At December 31,

2007

 

2006

 

Accounts Payable and Accrued Liabilities

Accounts payable

$

4,491

 

$

4,392

 

Accrued expenses

 

2,400

 

 

2,982

 

Accrued vacation, salaries and wages

 

4,828

 

 

3,575

 

Interest payable

 

473

 

 

614

 

Accrued taxes

 

2,270

 

 

2,757

 

 

$

14,462

 

$

14,320

 

 

Other Current Liabilities

Advance billings and customer deposits

$

2,476

 

$

2,226

 

Dividends payable

 

1,266

 

 

1,199

 

Other

 

3,583

 

 

4,666

 

 

$

7,325

 

$

8,091

 

Cash Flow Information

(dollars in millions)

Years Ended December 31,

2007

 

2006

 

2005

 

Cash Paid

Income taxes, net of amounts refunded

$

2,491

 

$

3,299

 

$

4,189

 

Interest, net of amounts capitalized

 

1,682

 

 

2,103

 

 

2,025

 

 

Supplemental Investing and Financing Transactions

Cash acquired in business combinations

 

17

 

 

2,361

 

 

 

Assets acquired in business combinations

 

589

 

 

18,511

 

 

635

 

Liabilities assumed in business combinations

 

154

 

 

7,813

 

 

35

 

Debt assumed in business combinations

 

 

 

6,169

 

 

9

 

Shares issued to Price to acquire limited partnership

interest in VZ East (Note 7)

 

 

 

1,007

 

 

 

Other, net cash provided by operating activities – continuing operations primarily included the add back of the minority interest’s share of Verizon Wireless earnings, net of dividends paid to minority partners, of $3,953 million in 2007, $3,232 million in 2006 and $1,720 million in 2005.