Sprint - Nextel 2011 Annual Report Download - page 82

Table of Contents
SPRINT NEXTEL CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
estimate of fair value associated with our Class B Non-Voting interests, based on the evaluation of factors described above. The determination of an estimate of fair value
for a non-public security, such as our Class B Non-Voting interest, is subject to significant judgment and uncertainty.
Clearwire Related Party Transactions
Sprint's equity method investment in Clearwire includes agreements by which we resell wireless data services utilizing Clearwire's 4G network. In addition,
Clearwire utilizes the Sprint network to provide dual mode service to its customers in those areas where access to a 4G network is not yet available. Accounts payable,
accrued expense and other liabilities to Clearwire totaling $77 million as of December 31, 2011 and cost of services and products totaling $405 million for the year ended
December 31, 2011 are included in our consolidated financial statements related to our purchase of 4G services.
Cash and cash equivalents, accounts and notes receivable, and accounts payable are carried at cost, which approximates fair value. Our short-term investments
(consisting primarily of time deposits and Treasury securities), totaling $150 million and $300 million as of December 31, 2011 and 2010, respectively, are recorded at
amortized cost, and the respective carrying amounts approximate fair value. The fair value of our marketable equity securities, totaling $43 million and $39 million as of
December 31, 2011 and 2010, respectively, is measured on a recurring basis using quoted prices in active markets.
The estimated fair value of long-term debt, financing and capital lease obligations, including current maturities, is based on current market prices or interest
rates. The following table presents carrying amounts and estimated fair values of our current and long-term debt, financing and capital lease obligations:
F-15
Note 4. Financial Instruments
December 31,
2011 2010
Carrying Amount Estimated
Fair Value Carrying Amount Estimated
Fair Value
(in millions)
Current and long-term debt, financing and capital lease obligations $ 20,274 $ 18,299 $ 20,191 $ 20,007