Sprint - Nextel 2007 Annual Report Download - page 21

compliance with storage and related standards, obtaining of permits and occasional remediation. Although we
cannot assess with certainty the impact of any future compliance and remediation obligations, we do not believe
that any such expenditures will have a material adverse effect on our financial condition or results of operations.
We have identified seven former manufactured gas plant sites in Nebraska, not currently owned or operated
by us, that may have been owned or operated by entities acquired by Centel Corporation, formerly a subsidiary of
ours and now a subsidiary of Embarq. We and Embarq have agreed to share the environmental liabilities arising
from these former manufactured gas plant sites. Three of the sites are part of ongoing settlement negotiations and
administrative consent orders with the Environmental Protection Agency, or EPA. Two of the sites have had
initial site assessments conducted by the Nebraska Department of Environmental Quality, or NDEQ, but no
regulatory actions have followed. The two remaining sites have had no regulatory action by the EPA or the
NDEQ. Centel has entered into agreements with other potentially responsible parties to share costs in connection
with five of the seven sites. We are working to assess the scope and nature of these sites and our potential
responsibility, which is not expected to be material.
Patents, Trademarks and Licenses
We own numerous patents, patent applications, service marks and trademarks in the United States and other
countries. “Sprint,” “Nextel” and “Boost Mobile” are among our trademarks. Our services often use the
intellectual property of others, such as licensed software, and we often license copyrights, patents and trademarks
of others. In total, these licenses and our copyrights, patents, trademarks and service marks are of material
importance to the business. Generally, our trademarks and service marks endure and are enforceable so long as
they continue to be used. Our patents and licensed patents have remaining terms generally ranging from one to 19
years.
We occasionally license our intellectual property to others, including licenses to others to use the trademarks
“Sprint” and “Nextel.”
We have received claims in the past, and may in the future receive claims, that we, or third parties from
whom we license or purchase goods or services, have infringed on the intellectual property of others. These
claims can be time-consuming and costly to defend, and divert management resources. If these claims are
successful, we could be forced to pay significant damages or stop selling certain products or services or stop
using certain trademarks. We, or third parties from whom we license or purchase goods or services, also could
enter into licenses with unfavorable terms, including royalty payments, which could adversely affect our
business.
Employee Relations
As of December 31, 2007, we had about 60,000 employees.
Management
For information concerning our executive officers, see “Executive Officers of the Registrant” starting on
page 29 of this document.
Information as to Business Segments
For information regarding our business segments, see “Part II, Item 7 Management’s Discussion and
Analysis of Financial Condition and Results of Operations” and also refer to note 12 of the Notes to Consolidated
Financial Statements.
Item 1A. Risk Factors
In addition to the other information contained in this Form 10-K, the following risk factors should be
considered carefully in evaluating us. Our business, financial condition, liquidity or results of operations could be
materially adversely affected by any of these risks.
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