Sprint - Nextel 2006 Annual Report Download - page 62

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No time frame is set for these purchase orders and they are not legally binding. As a result, they are not firm
commitments.
Off-Balance Sheet Financing
We do not participate in, or secure, financings for any unconsolidated, special purpose entities.
Future Outlook
We expect to be able to meet our currently identified funding needs for at least the next 12 months by using:
kour anticipated cash flows from operating activities as well as our cash, cash equivalents and
marketable securities on hand; and/or
kcash available under our existing credit facility and our commercial paper program.
In making this assessment, we have considered:
kanticipated levels of capital expenditures, including funding required in connection with the deploy-
ment of next generation technologies and our next generation broadband wireless network;
kanticipated payments under the Report and Order;
kdeclared and anticipated dividend payments, scheduled debt service requirements and purchases of our
common shares pursuant to our share repurchase program;
kmerger and integration costs associated with the Sprint-Nextel merger and the acquisitions of the PCS
Affiliates and Nextel Partners; and
kother 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 communications 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:
kany significant acquisition transactions or the pursuit of any significant new business opportunities or
spectrum acquisition strategies;
kpotential material purchases or redemptions of our outstanding debt securities for cash; and
kpotential material increases in the cost of compliance with regulatory mandates.
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 our existing credit facility and our commercial
paper program. 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:
kthe commercial success of our operations;
kthe volatility and demand of the capital markets;
kthe market prices of our securities; and
ktax law restrictions related to the spin-off of Embarq that may limit our ability to raise capital from
the sale of our equity securities.
We have in the past and may in the future have discussions with third parties regarding potential sources of
new capital to satisfy actual or anticipated financing needs. At present, other than the existing arrangements
that have been described in this report, we have no legally binding commitments or understandings with any
third parties to obtain any material amount of additional capital.
60