Sprint - Nextel 2006 Annual Report Download - page 97

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goodwill, $21 million to customer relationships, and $19 million to reacquired rights. As part of the
acquisition, we also assumed $31 million in long-term debt, which we retired on the date of acquisition.
Alamosa Holdings, Inc.
On February 1, 2006, we acquired Alamosa Holdings for a purchase price of $3.4 billion in cash. As of
December 31, 2006, the preliminary allocation of the purchase price included the following: $2.8 billion to
goodwill, $821 million to customer relationships, and $572 million to reacquired rights. As part of the
acquisition, we also assumed $1.2 billion in senior notes and other long-term debt.
UbiquiTel Inc.
On July 1, 2006, we acquired UbiquiTel for a purchase price of $985 million in cash. As of December 31,
2006, the preliminary allocation of the purchase price included the following: $889 million to goodwill,
$224 million to customer relationships, and $158 million to reacquired rights. As part of the acquisition, we
also assumed $460 million in senior notes and other long-term debt.
Nextel Partners, Inc.
Prior to June 26, 2006, we held about 28% of the common equity interests in Nextel Partners at a carrying
value of $2.4 billion. On June 26, 2006, we acquired the remaining 72% of Nextel Partners pursuant to the put
rights held by the Nextel Partners’ shareholders, other than us, that were triggered by the Sprint-Nextel merger,
for a purchase price of $6.4 billion in cash. As of December 31, 2006, the preliminary allocation of the
purchase price and the investment we already held included the following: $6.0 billion to goodwill, $1.3 billion
to customer relationships, $903 million to FCC licenses, and $100 million to reacquired rights. As part of the
acquisition, we also assumed $1.2 billion in long-term debt and capital lease obligations. As a result of this
acquisition, our investments were reduced by $2.4 billion.
Velocita Wireless Holding Corporation
On February 21, 2006, we acquired 94% of the voting shares of Velocita Wireless for $157 million in cash
and in May 2006, we acquired the remaining 6% for an additional $7 million in cash, resulting in a purchase
price of $164 million. Velocita Wireless owns and operates a nationwide digital packet-switched wireless data
network in the 900 MHz frequency band. As of December 31, 2006, the purchase price allocation included the
following: $59 million to goodwill and $128 million to FCC licenses.
We have preliminarily allocated the purchase prices of these 2006 acquisitions as follows:
As of
December 31, 2006
(in millions)
Goodwill .............................................................. $ 9,788
FCC licenses ........................................................... 1,031
Reacquired rights ........................................................ 849
Customer relationships .................................................... 2,349
Property, plant and equipment ............................................... 1,564
Other assets ............................................................ 1,683
Long-term debt.......................................................... (2,818)
Other liabilities.......................................................... (1,002)
Net assets acquired ..................................................... $13,444
We are in the process of completing our valuation of certain of the assets and liabilities, as well as internal
studies of certain assets, property, plant and equipment, intangible assets, certain liabilities and commercial
F-20
SPRINT NEXTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)