Sprint - Nextel 2010 Annual Report Download - page 77

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Severance and Exit Costs Activity
During 2010, we recognized costs of $8 million ($11 million Wireless; offset by a benefit of $3 million Wireline)
primarily related to an increase in exit costs incurred in the second and fourth quarter 2010 associated with vacating certain
office space which is no longer being utilized partially offset by a reduction in the estimate of total severance costs associated
with our workforce reduction announced in November 2009. During 2009, we recognized $400 million ($307 million Wireless;
$93 million Wireline) of severance and exit costs related primarily to the reduction in workforce announcements in 2009.
During 2008, we recognized $355 million ($270 million Wireless; $62 million Wireline; $23 million Corporate and other) of
severance and exit costs related to the separation of employees and continued organizational realignment initiatives.
The following provides the activity in the severance and exit costs liability included in “Accrued expenses and other
current liabilities” within the consolidated balance sheets:
Exit costs
Severance
Exit costs
Severance
Exit costs
Severance
December 31,
2009
(in millions)
$ 89
110
$ 199
December 31,
2008
(in millions)
$ 113
90
$ 203
December 31,
2007
(in millions)
$ 118
32
$ 150
2010 Activity
Net
Expense (Benefit)
$ 25
(17)
$ 8
2009 Activity
Net
Expense
$ 38
362
$ 400
2008 Activity
Net
Expense
$ 42
313
$ 355
Cash Payments
and Other
$(27)
(86)
$(113)
Cash Payments
and Other
$(62)
(342)
$(404)
Cash Payments
and Other
$(47)
(255)
$(302)
December 31,
2010
$ 87
7
$ 94
December 31,
2009
$ 89
110
$ 199
December 31,
2008
$ 113
90
$ 203
Asset Impairment
In 2010 and 2009, we recorded asset impairments of $125 million and $47 million, respectively, primarily related to
network asset equipment in our Wireless segment, no longer necessary for management's strategic plans. In 2008, we recorded
asset impairments of $480 million primarily related to cell site development costs and network asset equipment in our Wireless
segment, no longer necessary for management's strategic plans.
Table of Contents SPRINT NEXTEL CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
F-20