Sprint - Nextel 2007 Annual Report Download - page 3

SPRINT NEXTEL CORPORATION
SECURITIES AND EXCHANGE COMMISSION
ANNUAL REPORT ON FORM 10-K
PART I
Item 1. Business
Overview
The Corporation
Sprint Nextel Corporation, incorporated in 1938 under the laws of Kansas, is mainly a holding company,
with its operations primarily conducted by its subsidiaries. Unless the context otherwise requires, references to
“Sprint Nextel,” “we,” “us” and “our” mean Sprint Nextel Corporation and its subsidiaries.
We are a global communications company offering a comprehensive range of wireless and wireline
communications products and services that are designed to meet the needs of individual consumers, businesses
and government customers. We have organized our operations to meet the needs of our targeted customer groups
through focused communications solutions that incorporate the capabilities of our wireless and wireline services
to meet their specific needs. We are one of the three largest wireless companies in the United States based on the
number of wireless subscribers. We own extensive wireless networks and a global long distance, Tier 1 Internet
backbone.
We, together with three third party affiliates, or PCS Affiliates, offer digital wireless service in all 50 states,
Puerto Rico and the U.S. Virgin Islands under the Sprint®brand name utilizing wireless code division multiple
access, or CDMA, technology. The PCS Affiliates, through commercial arrangements with us, provide wireless
services mainly in and around smaller U.S. metropolitan areas on CDMA-based wireless networks built and
operated at their expense, in most instances using spectrum licensed to and controlled by us. We offer digital
wireless services under our Nextel®brand name using integrated Digital Enhanced Network, or iDEN®,
technology. We also offer wireless services that focus on the youth market, including our Boost Mobile®prepaid
wireless service on our iDEN network and Boost Unlimited, a local calling prepaid service on our CDMA
network. We are one of the largest providers of long distance services and one of the largest carriers of Internet
traffic in the nation.
On December 17, 2007, Daniel R. Hesse joined our company as President and Chief Executive Officer.
Senior management is currently reviewing our operations and assessing our strategies and future business plans.
This process is still ongoing and, depending on the outcome our operations, future capital requirements and
future valuation of our long-lived assets could be affected.
Our Series 1 voting common stock trades on the New York Stock Exchange, or NYSE, under the symbol “S.”
Business Combinations & Spin-off
We merged with Nextel Communications, Inc. and acquired Nextel Partners, Inc. in 2005 and 2006,
respectively. We also have acquired seven former PCS Affiliates. We paid a premium over the fair value of the
net tangible and intangible assets that we acquired in each of these business combinations. As a result, in
connection with these business combinations, we recorded $26.3 billion of goodwill in addition to the
$4.4 billion of goodwill previously recorded on our balance sheet. All of the goodwill was allocated to our
Wireless segment. In the fourth quarter 2007, we conducted our annual assessment of goodwill for impairment.
As a result, we recorded a $29.7 billion non-cash goodwill impairment charge in the fourth quarter 2007 in
accordance with Statement of Financial Accounting Standards, or SFAS, No. 142 Goodwill and Other Intangible
Assets. Refer to note 3 of the Notes to Consolidated Financial Statements for additional information.
1