Sprint - Nextel 2008 Annual Report Download - page 104
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SPRINT NEXTEL CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
of Series 2 common stock outstanding as of December 31, 2009. In 2009, certain holders of our Series 2 common
stock exercised their rights to convert 39.8 million Series 2 shares to 39.8 million Series 1 shares, resulting in a
$80 million and $785 million reduction to common shares and paid in capital, respectively, and a corresponding
$865 million reduction in treasury shares.
Treasury Shares
Shares of common stock repurchased by us are recorded at cost as treasury shares and result in a
reduction of shareholders’ equity. We reissue treasury shares as part of our shareholder approved stock-based
compensation programs, as well as upon conversion of outstanding securities that are convertible into common
stock. When shares are reissued, we determine the cost using the FIFO method.
Dividends
We did not declare any dividends on our common shares in 2009 or 2008. We declared and paid a
dividend of $0.025 per share on the Series 1 common stock and the Series 2 common stock in each of the
quarters of 2007. We are currently restricted from paying cash dividends by the terms of our revolving bank
credit facility as described in Note 8.
Share Repurchase Program
On July 25, 2006, our board of directors authorized a program for the purchase of up to $6.0 billion of
our Series 1 common stock through open market purchases. We repurchased 185 million shares of our Series 1
common stock for $3.5 billion at an average price of $18.77 per share through 2007. The program expired in
January 2008 and no additional repurchases were made.
Common Stock Reserved for Future Grants
As of December 31, 2009, Series 1 common stock reserved for future grants under plans providing for
the grant of stock options and other equity-based awards, future grants under the employees stock purchase plan
or future issuances under various other arrangements included:
Shares
(in millions)
Employees stock purchase plan ........................................ 85
Officer and key employees’ and directors’ stock options and other equity-based
awards .......................................................... 174
259
Accumulated Other Comprehensive Loss
The components of accumulated other comprehensive loss are as follows:
As of December 31,
2009 2008
(in millions)
Unrecognized net periodic pension and postretirement benefit cost ........ $(397) $(537)
Unrealized net (losses) gains related to investments .................... 8 (6)
Foreign currency translation adjustments ............................ 37 19
Accumulated other comprehensive loss ............................. $(352) $(524)
F-38