Sprint - Nextel 2006 Annual Report Download - page 125

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Expected Cash Flows
The following pension and postretirement benefit payments, which reflect expected future service, as
appropriate, are expected to be paid (in millions):
Pension Plan
Postretirement
Benefit Plan
2007 ......................................................... $ 29 $ 5
2008 ......................................................... 31 3
2009 ......................................................... 33 3
2010 ......................................................... 36 3
2011 ......................................................... 40 4
2012 — 2016 ................................................... 267 32
We currently expect that a discretionary $150 million contribution will be made to the pension plan during
2007.
Defined Contribution Plans
We sponsor a defined contribution plan covering all employees. Participants may contribute a portion of their
eligible pay to the plan through payroll withholdings. In 2006, we matched in cash 100% of participants’
contributions up to 5% of their eligible compensation. In prior years, participants’ contributions were matched
with our common stock. Our total matching contributions were $132 million in 2006, $56 million in 2005 and
$29 million in 2004.
During 2005, we had three defined contribution plans: one non-union plan for pre-merger Sprint employees
and two union plans for employees designated to work for Embarq. The matching contribution was equal to
30% of participants’ contributions up to 6% of their eligible compensation for 2005 and 25% of participants’
contributions up to 6% of their eligible compensation for 2004 in the non-union plan. For non-union pre-
merger Sprint employees, we matched contributions in shares of our common stock. For union employees, we
matched contributions based on negotiated amounts.
On January 1, 2006, we terminated the Nextel plan and participants covered by that plan were eligible to
enroll in the amended Sprint Nextel plan. On January 1, 2006, we also offered a new defined contribution plan
for non-union employees designated to work for Embarq, which was in addition to the two existing union
plans. On May 17, 2006, in connection with the spin-off, all three defined contribution plans designated for
Embarq employees were transferred to Embarq.
F-48
SPRINT NEXTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)