Sprint - Nextel 2007 Annual Report Download - page 65

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• a $1.2 billion decrease in capital expenditures from 2006 due to fewer cell sites, capacity modifications
and inventory reductions in our Wireless segment and decreased investment in transport and switching
equipment related to voice and cable customers; and
• collateral of $866 million in cash received back from our securities loan agreements in 2007, compared
to $866 million used to collaterize securities loan agreements in 2006;
offset by
• a net decrease in proceeds from sale and maturities of marketable securities, investments and assets net
of purchases, of $1.8 billion; and
• $6.3 billion in proceeds received in 2006 in connection with the spin-off of our Local segment,
including $1.8 billion received from Embarq at the time of the spin-off and proceeds from the sale of
Embarq notes of $4.4 billion.
Net cash used in investing activities increased in 2006 by $6.7 billion from 2005 due primarily to:
• a $10.3 billion increase in cash paid for acquisitions;
• a $2.5 billion increase in cash paid for capital expenditures due to higher spending in our Wireless
segment, in part related to spending on our iDEN network acquired in the Sprint-Nextel merger; and
• $866 million in cash used to collateralize securities loan agreements;
partially offset by
• $6.3 billion in proceeds received in 2006 in connection with the spin off of our Local segment,
including $1.8 billion received from Embarq at the time it was spun-off and proceeds from the sale of
the Embarq notes of $4.4 billion.
Financing Activities
Net cash used in financing activities of $2.7 billion during 2007 decreased $3.8 billion compared to 2006,
primarily due to:
• a decrease in cash used for debt and credit facility payments of $6.7 billion. In 2007, we made principal
and debt repayments of $1.4 billion compared to payments in 2006 of $4.3 billion in payments and
retirements related to our senior notes and capital lease obligations, $3.2 billion related to the
retirement of our term loan and $500 million to retire the Nextel Partners credit facility;
offset by
• $135 million in net maturities of commercial paper in 2007 compared to net issuances of $514 million
in 2006;
• payment of $866 million in 2007 to settle collaterized borrowings compared to proceeds of
$866 million received from securities loan agreements in 2006; and
• proceeds of $1.5 billion in 2007, including $750 million from our unsecured loan agreement with
Export Development Canada and $750 million in principal from the sale of floating rate notes due 2010
compared to proceeds of $2.0 billion in principal amount of 6.0% senior serial redeemable notes
received in 2006 that are due in 2016.
Pursuant to our share repurchase program, we repurchased about 87 million of our common shares for
$1.8 billion in 2007 compared to 98 million of our common shares repurchased in 2006 for $1.6 billion. We
received $344 million in 2007 and $405 million in 2006 in proceeds from common share issuances, primarily
resulting from exercises of employee options. We paid cash dividends of $286 million in 2007 compared to
$296 million in 2006. During 2006, we used $247 million to retire our Seventh series redeemable preferred
shares.
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