Sprint - Nextel 2010 Annual Report Download - page 59

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Directors and Shareholders
Sprint Nextel Corporation:
We have audited the accompanying consolidated balance sheets of Sprint Nextel Corporation and subsidiaries as of
December 31, 2010 and 2009, and the related consolidated statements of operations, cash flows and shareholders' equity for each
of the years in the three-year period ended December 31, 2010. We also have audited Sprint Nextel Corporation's internal control
over financial reporting as of December 31, 2010, based on criteria established in Internal Control - Integrated Framework issued
by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Sprint Nextel Corporation's management
is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and
for its assessment of the effectiveness of internal control over financial reporting, included in Management's Report on Internal
Control over Financial Reporting. Our responsibility is to express an opinion on these consolidated financial statements and an
opinion on the Company's internal control over financial reporting based on our audits. We did not audit the financial statements
of Clearwire Corporation and its consolidated subsidiary Clearwire Communications, LLC (collectively, “Clearwire”), a 54%
owned investee company. Sprint Nextel Corporation's investment in Clearwire at December 31, 2010 was $3.1 billion and its
equity in losses from Clearwire was $1.3 billion for the year ended December 31, 2010. The financial statements of Clearwire
were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included
for Clearwire, is based solely on the report of the other auditors.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial
statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all
material respects. Our audits of the consolidated financial statements included examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting
included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists,
and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also
included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide
a reasonable basis for our opinions.
A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions
of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation
of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the
company are being made only in accordance with authorizations of management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's
assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
In our opinion, based on our audits and the report of the other auditors, the consolidated financial statements referred to
abovepresentfairly,inall material respects,thefinancial position ofSprintNextel Corporation andsubsidiariesas of December 31,
2010 and 2009, and the results of their operations and their cash flows for each of the years in the three-year period ended
December 31, 2010, in conformity with U.S. generally accepted accounting principles. Also in our opinion, Sprint Nextel
Corporation maintained, in all material respects, effective internal control over financial reporting as of December 31, 2010, based
on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission.
The Company adopted accounting guidance regarding accounting for business combinations and equity method
investments in 2009.
/s/ KPMG LLP
Kansas City, Missouri
February 24, 2011
Table of Contents
F-2