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