Sprint - Nextel 2007 Annual Report Download - page 111

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SPRINT NEXTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
FCC licenses intangible asset, consistent with our accounting policies. The following table represents payments
directly attributable to our performance under the Report and Order from the inception of the program:
Through
December 31,
2006
2007
Payments
Through
December 31,
2007
(in millions)
FCC licenses ................................................. $428 $304 $ 732
Property, plant and equipment ................................... 138 10 148
Costs not benefiting our infrastructure or spectrum positions ........... 155 79 234
Total ................................................... $721 $393 $1,114
Excluded from the table above are estimated reconfiguration costs incurred to date that are included in
property, plant and equipment on our consolidated balance sheet, which are based on allocations between
reconfiguration activities and our normal network growth. These estimated allocations may vary depending on key
assumptions, including subscribers, call volumes and other factors over the life of the reconfiguration program. As a
result, the amount allocated to reconfiguration activity is subject to change based on additional assessments made
over the course of the reconfiguration program. Since we, the Transition Administrator, or TA, and the FCC have
not yet reached an agreement on our methodology for calculating the amount to be submitted for credit, we cannot
provide assurance that we will be granted full credit for certain of these allocated network costs.
Note 4. Long-Term Debt and Capital Lease Obligations
Balance
December 31,
2006 Borrowings
Retirements and
Repayments of
Principal
and Other
Balance
December 31,
2007
(in millions)
Senior notes due 2008 to 2032
1.50% to 10.00%, including fair value hedge
adjustments of $(25) and $7, deferred premiums
of $390 and $273 and unamortized discounts of
$35and$36 ............................. $21,534 $ 750 $(1,389) $20,895
Credit facilities
Export Development Canada, 5.49% ........... — 750 — 750
Commercial paper, 5.20% to 5.98% ............ 514 6,008 (6,143) 379
Capital lease obligations and other
4.11% to 11.174% .......................... 106 18 (18) 106
22,154 $7,526 $(7,550) 22,130
Less current portion ........................... (1,143) (1,661)
Long-term debt and capital lease obligations ....... $21,011 $20,469
As of December 31, 2007, Sprint Nextel, the parent corporation, had about $4.1 billion of debt outstanding,
including commercial paper. In addition, about $17.8 billion of our long-term debt has been issued by wholly-
owned subsidiaries and has been fully and unconditionally guaranteed by Sprint Nextel. The indentures and
financing arrangements of certain of our subsidiaries contain provisions that limit cash dividend payments on
subsidiary common stock held by the parent corporation. The transfer of cash in the form of advances from the
subsidiaries to the parent corporation is generally not restricted.
F-26