Sprint - Nextel 2006 Annual Report Download - page 32

In connection with our Employees Stock Purchase Plan, or ESPP, the number of shares deposited in the
accounts of certain participants was greater than the number of shares purchased based on their fourth quarter
payroll deductions. When the error was discovered in January 2007, we took steps to remove the excess shares
from the accounts of these participants. However, about 300 participants already had sold an aggregate of
about 2,500 excess shares into the public market. Steps have been taken to recover the proceeds that the
participants received from the sale of the excess shares. The excess shares were not registered under the
Securities Act of 1933, as amended. No exemption from registration is available.
Issuer Purchases of Equity Securities
Period
Total
Number of
Shares
Purchased
(1)
Average Price Paid
Per Share
(2)
Total Number of
Shares Purchased as
Part of Publicly
Announced
Plans or
Programs
(3)
Maximum Number
(or Approximate
Dollar Value) Of
Shares that May
Yet Be Purchased
Under the Plans
or Programs
(in billions)
October 1 through October 31
common shares, Series 1 ........ 6,975,300 $17.21 6,975,300 $4.4
November 1 through November 30
common shares, Series 1 ........ — — — $4.4
December 1 through December 31
common shares, Series 1 ........ 8,494 19.67 — $4.4
Total . . ...................... 6,983,794 $17.21 6,975,300
(1) Acquisitions of equity securities during the fourth quarter 2006 were pursuant to our share repurchase
program and the terms of our equity compensation plans: the Management Incentive Stock Option Plan,
the 1997 Long-Term Stock Incentive Program, and the Nextel Incentive Equity Plan; and the terms of the
equity-based awards made under those plans. Under the terms of these plans and awards, acquisitions
consist of the following: the forfeiture of restricted shares; the surrender of restricted shares to pay
required minimum income, Medicare and Federal Insurance Contributions Act, or FICA, tax withholding
on the vesting of restricted shares, which represented the 8,494 shares acquired during December; and the
delivery of previously owned shares by the grantee to pay the exercise price of options. Excludes shares
used for required minimum tax withholding on the exercise of options and the delivery of shares underly-
ing restricted stock units and deferred shares since only the net shares are issued.
(2) Excludes forfeited restricted shares since the purchase price was zero. The purchase price of shares used
for the exercise price of options is the market price of the shares on the date of the exercise of the option.
The purchase price of shares used for tax withholding is the market price of the shares on the trading date
immediately preceding the date of vesting of the restricted shares.
(3) On August 3, 2006, we announced that our board of directors authorized us to repurchase through open
market purchases up to $6.0 billion of our common shares over an 18 month period expiring in the first
quarter 2008. As of December 31, 2006, we had repurchased $1.6 billion of our common shares at an
average price of $16.76.
No options may be granted pursuant to the Management Incentive Stock Option Plan after April 18, 2005; no
awards may be granted pursuant to the 1997 Long-Term Stock Incentive Program after April 15, 2007; and no
awards may be granted pursuant to the Nextel Incentive Equity Plan after July 13, 2015. Options, restricted
share awards and restricted stock unit awards outstanding on those dates may continue to be outstanding after
those dates. We cannot estimate how many shares will be acquired in the manner described in footnote (1) to
the table above pursuant to the terms of these plans.
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