Sprint - Nextel 2010 Annual Report Download - page 74

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Intangible Assets Subject to Amortization
Sprint's customer relationships are amortized using the sum of the years' digits method. As customer relationships
amortize and reach the end of their amortization period, we remove the gross and accumulated amounts associated with these
fully amortized intangible assets. During 2010, we reduced the gross carrying value and accumulated amortization by $10.3
billion associated with fully amortized intangible assets primarily related to customer relationships associated with the Nextel
acquisition in 2005. Other intangible assets primarily include certain rights under affiliation agreements that were reacquired in
connection with the acquisitions of Affiliates and Nextel Partners, Inc., which are being amortized over the remaining terms of
those affiliation agreements on a straight-line basis, and the Nextel, Direct Connect and Virgin Mobile trade names, which are
being amortized on a straight-line basis.
Customer relationships
Other intangible assets
Trademarks
Reacquired rights
Other
Total other intangible
assets
Total definite lived
intangible assets
Useful Lives
2 to 5 years
10 to 37 years
9 to 14 years
9 to 16 years
December 31, 2010
Gross
Carrying
Value
$ 1,925
1,169
1,571
116
2,856
$ 4,781
Accumulated
Amortization
$(1,717)
(490)
(519)
(46)
(1,055)
$(2,772)
Net
Carrying
Value
(in millions)
$ 208
679
1,052
70
1,801
$ 2,009
December 31, 2009
Gross
Carrying
Value
$ 12,224
1,169
1,572
126
2,867
$ 15,091
Accumulated
Amortization
$(11,093)
(394)
(386)
(40)
(820)
$(11,913)
Net
Carrying
Value
$ 1,131
775
1,186
86
2,047
$ 3,178
Estimated amortization expense
2011
(in millions)
$ 403
2012
$ 279
2013
$ 242
2014
$ 238
2015
$ 197
Note 7. Long-Term Debt, Financing and Capital Lease Obligations
Notes
Senior notes
Sprint Nextel Corporation
Sprint Capital Corporation
Serial redeemable senior notes
Nextel Communications, Inc.
Secured notes
iPCS, Inc.
Credit facilities - Sprint Nextel Corporation
Bank credit facility
Export Development Canada(1)
Financing obligation
Capital lease obligations and other
Net premiums
Less current portion
Long-term debt, financing and capital lease obligations
Interest
Rates
6.00 - 9.25%
6.88 - 8.75%
5.95 - 7.38%
2.41 - 3.54%
3.56%
3.46%
9.50%
4.11 - 15.49%
Maturities
2016 - 2022
2011 - 2032
2013 - 2015
2013 - 2014
2013
2012
2030
2012 - 2022
December 31,
2010
(in millions)
$ 3,500
9,854
4,780
481
—
750
698
76
52
20,191
(1,656)
$ 18,535
December 31,
2009
$ 4,250
9,854
4,780
479
—
750
698
190
60
21,061
(768)
$ 20,293
_______________
(1) In January 2011, $500 million of our $750 million Export Development Canada loan was amended to extend the maturity date from
2012 to 2015, which is not reflected in the table above.
Table of Contents SPRINT NEXTEL CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
F-17