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

 

2009

 

2008

 

Equity Investees

               

Vodafone Omnitel

23.1

%

$

1,978

 

$

2,182

 

Other

Various

 

 

1,130

 

 

877

 

Total equity investees

 

 

 

3,108

 

 

3,059

 

                 

Cost Investees

Various

 

 

427

 

 

334

 

Total investments in unconsolidated businesses

 

 

$

3,535

 

$

3,393

 

Dividends and repatriations of foreign earnings received from these investees amounted to $942 million in 2009, $779 million in 2008 and $2,571 million in 2007.

Equity Method Investments

Vodafone Omnitel

Vodafone Omnitel N.V. (Vodafone Omnitel) is the second largest wireless communications company in Italy. At December 31, 2009 and 2008, our investment in Vodafone Omnitel included goodwill of $1,132 million and $1,105 million, respectively. During 2009 and 2008, Verizon received net distributions from Vodafone Omnitel of approximately $874 million and $670 million, respectively.

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, 2009 and 2008, we had equity investments in these partnerships of $888 million and $761 million, 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. The carrying value for investments carried at cost was not significant at December 31, 2009 and 2008.

Summarized Financial Information

Summarized financial information for our equity investees is as follows:

Balance Sheet

(dollars in millions)

At December 31,

2009

 

2008

 

Current assets

$

3,588

 

$

3,247

 

Noncurrent assets

 

8,179

 

 

8,315

 

Total assets

$

11,767

 

$

11,562

 

 

Current liabilities

$

6,804

 

$

5,847

 

Noncurrent liabilities

 

49

 

 

54

 

Equity

 

4,914

 

 

5,661

 

Total liabilities and equity

$

11,767

 

$

11,562

 

Income Statement

(dollars in millions)

Years Ended December 31,

2009

 

2008

 

2007

 

Net revenue

$

12,903

 

$

13,077

 

$

11,317

 

Operating income

 

4,313

 

 

3,820

 

 

4,643

 

Net income

 

2,717

 

 

2,634

 

 

2,511