Sprint - Nextel 2011 Annual Report Download - page 54

Table of Contents
The words “may,” “could,” "should," “estimate,” “project,” “forecast,” “intend,” “expect,” "anticipate," “believe,” “target,” “plan,” “providing guidance” and
similar expressions are intended to identify forward-looking statements. Forward-looking statements are found throughout this Management's Discussion and Analysis of
Financial Condition and Results of Operations, and elsewhere in this report. Readers are cautioned that other factors, although not listed above, could also materially
affect our future performance and operating results. The reader should not place undue reliance on forward-looking statements, which speak only as of the date of this
report. We are not obligated to publicly release any revisions to forward-looking statements to reflect events after the date of this report, including unforeseen events.
FINANCIAL STRATEGIES
General Risk Management Policies
Our board of directors has adopted a financial risk management policy that authorizes us to enter into derivative transactions, and all transactions comply with
the policy. We do not purchase or hold any derivative financial instruments for speculative purposes with the exception of equity rights obtained in connection with
commercial agreements or strategic investments, usually in the form of warrants to purchase common shares.
Derivative instruments are primarily used for hedging and risk management purposes. Hedging activities may be done for various purposes, including, but not
limited to, mitigating the risks associated with an asset, liability, committed transaction or probable forecasted transaction. We seek to minimize counterparty credit risk
through stringent credit approval and review processes, credit support agreements, continual review and monitoring of all counterparties, and thorough legal review of
contracts. Exposure to market risk is controlled by regularly monitoring changes in hedge positions under normal and stress conditions to ensure they do not exceed
established limits.
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• changes in available technology and the effects of such changes, including product substitutions and deployment costs;
• our ability to obtain additional financing on terms acceptable to us, or at all;
• volatility in the trading price of our common stock, current economic conditions and our ability to access capital;
• the impact of unrelated parties not meeting our business requirements, including a significant adverse change in the ability or willingness of such parties
to provide devices or infrastructure equipment for our networks;
• the costs and business risks associated with providing new services and entering new geographic markets;
• the financial performance of Clearwire and its ability to build, operate, and maintain its 4G network, including an LTE network;
• our ability to access Clearwire's spectrum;
• the compatibility of Sprint's LTE network with Clearwire's LTE network;
• the effects of mergers and consolidations and new entrants in the communications industry and unexpected announcements or developments from others
in the communications industry;
• unexpected results of litigation filed against us or our suppliers or vendors;
• the impact of adverse network performance;
• the costs or potential customer impacts of compliance with regulatory mandates including, but not limited to, compliance with the FCC's Report and
Order to reconfigure the 800 MHz band;
• equipment failure, natural disasters, terrorist acts or other breaches of network or information technology security;
• one or more of the markets in which we compete being impacted by changes in political, economic or other factors such as monetary policy, legal and
regulatory changes, or other external factors over which we have no control; and
• other risks referenced from time to time in this report, including in Part I, Item 1A “Risk Factors” and other filings of ours with the SEC.