Sprint - Nextel 2008 Annual Report Download - page 24

Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
Our corporate headquarters is located in Overland Park, Kansas and consists of about 3,853,000 square
feet.
Our gross property, plant and equipment at December 31, 2009 totaled $46.2 billion, as follows:
2009
(in billions)
Wireless ....................................................... $39.3
Wireline ....................................................... 4.5
Corporate and other .............................................. 2.4
Total .......................................................... $46.2
Properties utilized by our Wireless segment generally consist of base transceiver stations, switching
equipment and towers, as well as leased and owned general office facilities and retail stores. We lease space for
base station towers and switch sites for our wireless network.
Properties utilized by our Wireline segment generally consist of land, buildings, switching equipment,
digital fiber optic network and other transport facilities. We have been granted easements, rights-of-way and
rights-of-occupancy by railroads and other private landowners for our fiber optic network.
As of December 31, 2009, about $1.4 billion of outstanding debt, comprised of certain secured notes,
financing and capital lease obligations and mortgages, is secured by $1.2 billion of gross property, plant and
equipment, and other assets.
Item 3. Legal Proceedings
On October 18, 2009, we entered into a merger agreement with iPCS pursuant to which Sprint agreed to
acquire iPCS. In connection with the merger agreement, Sprint and iPCS sought an immediate stay of litigation
and the Circuit Court of Cook County, Illinois, Chancery Division and the Illinois Appellate Court entered the
stay on all litigation, including iPCS’s request for an injunction to block the merger of Sprint and Virgin Mobile
USA, Inc., and, upon the closing of the acquisition, all litigation between iPCS and Sprint was dismissed.
Subsequent to the announcement of our merger agreement, two lawsuits were filed in Cook County, Illinois state
court on behalf of iPCS shareholders against iPCS, the members of the iPCS Board of Directors as individual
defendants, Sprint Nextel and Ireland Acquisition Corp. seeking to enjoin Sprint Nextel’s proposed acquisition of
iPCS’ common stock. The complaints assert breach of fiduciary duties by the individual defendant iPCS directors
and aiding and abetting the breach of fiduciary duties by Sprint Nextel. We are engaged in settlement
negotiations and expect to resolve the complaints for an amount not material to Sprint.
We are involved in certain other legal proceedings that are described in Note 12 of Notes to the
Consolidated Financial Statements included in this report. During the quarter ended December 31, 2009, there
were no material developments in the status of these legal proceedings.
Various other suits, proceedings and claims, including purported class actions typical for a large
business enterprise, are pending against us or our subsidiaries. While it is not possible to determine the ultimate
disposition of each of these proceedings and whether they will be resolved consistent with our beliefs, we expect
that the outcome of such proceedings, individually or in the aggregate, will not have a material adverse effect on
our financial condition or results of operations.
Item 4. Submission of Matters to a Vote of Security Holders
No matter was submitted to a vote of security holders during the fourth quarter 2009.
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