Sprint - Nextel 2005 Annual Report Download - page 80

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Future Outlook
We expect to be able to meet our currently identified funding needs for at least the next 12 months by using
• our anticipated cash flows from operating activities as well as our cash, cash equivalents, and marketable
debt securities on hand;
• cash expected to be received by us in connection with the spin-off of Embarq; and/or
• cash available under our existing credit facilities.
In making this assessment, we have considered:
• anticipated levels of capital expenditures;
• obligations related to pending acquisition transactions, including the outstanding shares of common stock
of Nextel Partners that we do not own for about $6.5 billion;
• anticipated payments under the FCC’s Report and Order;
• declared and anticipated dividend payments and scheduled debt service requirements;
• costs associated with the Sprint-Nextel merger and spin-off of Embarq; and
• other future contractual obligations.
If there are material changes in our business plans, or currently prevailing or anticipated economic conditions in
any of our markets or competitive practices in the mobile wireless telecommunications industry, or if other
presently unexpected circumstances arise that have a material effect on our cash flow or profitability, anticipated
cash needs could change significantly.
The conclusion that we expect to meet our funding needs for at least the next 12 months as described above does
not take into account:
• any significant acquisition transactions or the pursuit of any significant new business opportunities or
spectrum other than those currently being pursued by us;
• potential material purchases or redemptions of our outstanding debt and equity securities for cash; and
• potential material increases in the cost of compliance with regulatory mandates, including regulations
related to E911 service.
Any of these events or circumstances could involve significant additional funding needs in excess of anticipated
cash flows from operating activities and the identified currently available funding sources, including existing
cash on hand, borrowings available under existing credit facilities and funding anticipated to be received in
connection with the spin-off of the local telecommunications business. If existing capital resources are not
sufficient to meet these funding needs, it would be necessary to raise additional capital to meet those needs. Our
ability to raise additional capital, if necessary, is subject to a variety of additional factors that cannot currently be
predicted with certainty, including:
• the commercial success of our operations;
• the volatility and demand of the capital markets;
69