Sprint - Nextel 2007 Annual Report Download - page 69

internal network costs that we have preliminarily allocated to the reconfiguration program for capacity sites and
modifications for which we may request credit under the reconfiguration program.
“Purchase orders and other commitments” include minimum purchases we commit to purchase from
suppliers over time and/or the unconditional purchase obligations where we guarantee to make a minimum
payment to suppliers for goods and services regardless of whether suppliers fully deliver them. They include
agreements for access and backhaul and customer billing services, advertising services and contracts related to
information technology and customer care outsourcing arrangements. Amounts actually paid under some of these
“other” agreements will likely be higher due to variable components of these agreements. The more significant
variable components that determine the ultimate obligation owed include hours contracted, subscribers and other
factors. In addition, we are party to various arrangements that are conditional in nature and create an obligation to
make payments only upon the occurrence of certain events, such as the delivery of functioning software or
products. Because it is not possible to predict the timing or amounts that may be due under these conditional
arrangements, no such amounts have been included in the table above. The table above also excludes about
$2.4 billion of blanket purchase order amounts since their agreement terms are not specified. No time frame is set
for these purchase orders and they are not legally binding. As a result, they are not firm commitments.
Our liability for uncertain tax positions was $654 million as of December 31, 2007. Due to the inherent
uncertainty of the timing of the resolution of the underlying tax positions, it is not practicable to assign this
liability to any particular years in the table.
Off-Balance Sheet Financing
We do not participate in, or secure, financings for any unconsolidated, special purpose entities.
Future Outlook
We expect to be able to meet our currently identified funding needs for at least the next 12 months by using:
• our anticipated cash flows from operating activities as well as our cash, cash equivalents and
marketable securities on hand; and/or
• the $2.5 billion of cash that we drew down under our revolving credit facility on February 27, 2008, as
well as any remaining cash available under the facility.
In making this assessment, we have considered:
• anticipated levels of capital expenditures and FCC license acquisitions, including funding required in
connection with the deployment of next generation technologies and our next generation broadband
wireless network;
• anticipated payments under the Report and Order, as supplemented;
• scheduled debt service requirements; and
• other future contractual obligations.
If there are material changes in our business plans, or currently prevailing or anticipated economic
conditions in any of our markets or competitive practices in the mobile wireless communications industry, or if
other presently unexpected circumstances arise that have a material effect on our cash flow or profitability,
anticipated cash needs could change significantly.
The conclusion that we expect to meet our funding needs for at least the next 12 months as described above
does not take into account:
• any significant acquisition transactions or the pursuit of any significant new business opportunities or
spectrum acquisition strategies;
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