Sprint - Nextel 2008 Annual Report Download - page 45

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Investing Activities
Net cash used in investing activities for 2009 decreased by $406 million from 2008, primarily due to an
increase of $369 million in proceeds from short-term investments and a decrease in capital expenditures of $2.3
billion in 2009 as compared to 2008 mainly due to fewer cell sites built in 2009, fewer IT and network
development projects and costs incurred related to the build-up of WiMAX in 2008 that are no longer being
incurred in 2009 due to the close of the transaction with Clearwire in November 2008. The decreases were offset
by increased purchases of $599 million in short-term investments, a $1.1 billion increase of Sprint’s investment
in Clearwire and $560 million used to acquire VMU and iPCS in the fourth quarter 2009.
Net cash used in investing activities for 2008 decreased by $2.1 billion from 2007, primarily due to the
decrease in capital expenditures of $2.4 billion in 2008 as compared to 2007 mainly due to lower number of cell
sites built in 2008, reduced capacity needs, fewer IT projects as well as substantial completion in 2007 of various
initiatives that were undertaken in our Wireless business, an increase in the proceeds from sales and maturities of
short-term investments of $189 million and a decrease in the purchase of short-term investments of $143 million
in 2008 compared to 2007. In addition, we used $287 million in 2007 to acquire Northern PCS, a PCS Affiliate.
These decreases were partially offset by the $866 million in cash collateral received from our securities loan
agreements initiated in 2007.
Net cash used in investing activities for 2008 and 2007 include expenditures of approximately $600
million and $700 million, respectively, related to capital assets and FCC licenses that were contributed to
Clearwire in November 2008.
Financing Activities
Net cash used in financing activities was $919 million during 2009 as compared to net cash used in
financing activities of $484 million in 2008. Activities in 2009 include debt repayments of $600 million of senior
notes in May 2009, the early redemption of $607 million of our convertible senior notes in September 2009, and
a $1 billion payment on our revolving bank credit facility in November 2009 offset by the issuance of $1.3
billion of senior notes in August 2009.
Net cash used in financing activities was $484 million during 2008 as compared to net cash used in
financing activities of $2.7 billion in 2007. Activities in 2008 include the draw-down of $2.5 billion under our
revolving bank credit facility in February 2008, the net proceeds from the financing obligation with TowerCo
Acquisition LLC related to a sale and subsequent leaseback of multiple tower locations in September 2008 of
$645 million, and proceeds from the issuance of commercial paper of $681 million, offset by the early
redemption of $1.25 billion of our senior notes in June 2008, the extinguishment in September 2008 of $235
million of US Unwired Inc.’s 10% Second Priority Senior Secured Notes due 2012, the extinguishment in
September 2008 of $250 million of Alamosa (Delaware), Inc.’s 8.5% Senior Notes due 2012, the repayment of
$1.5 billion of our revolving bank credit facility in the third and fourth quarters of 2008 and maturities of
commercial paper of $1.1 billion.
We repurchased about 87 million of our common shares for $1.8 billion in 2007 pursuant to our share
repurchase program. We did not repurchase any shares under this program during 2008, which was the year the
program expired. We received $4 million, $57 million and $344 million in 2009, 2008 and 2007, respectively in
proceeds from common share issuances, primarily resulting from exercises of employee options. We did not pay
any cash dividends in 2009 or 2008 and paid cash dividends of $286 million in 2007.
Capital Requirements
We currently anticipate that future funding needs in the near term will include:
‰operating expenses relating to our operations;
‰capital expenditures, including the capacity and upgrading of our networks and the deployment of
new technologies in our networks;
‰scheduled debt service requirements;
‰amounts required to be expended in connection with the Report and Order;
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