Sprint - Nextel 2011 Annual Report Download - page 86

Table of Contents
SPRINT NEXTEL CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2011, Sprint Nextel Corporation, the parent corporation, had $8.0 billion in principal of debt outstanding, including amounts drawn under
the credit facilities. In addition, $11.5 billion in principal of our long-term debt issued by wholly-owned subsidiaries is guaranteed by the parent, of which approximately
$6.7 billion is fully and unconditionally guaranteed. The indentures and financing arrangements of certain subsidiaries' debt contain provisions that limit cash dividend
payments on subsidiary common stock. The transfer of cash in the form of advances from the subsidiaries to the parent corporation generally is not restricted.
As of December 31, 2011, about $1.2 billion of our outstanding debt, comprised of certain notes, financing and capital lease obligations and mortgages, is
secured by $793 million of property, plant and equipment and other assets, net (gross book value of $1.2 billion). Cash interest payments, net of amounts capitalized of
$413 million, $13 million, and $12 million, totaled $1.0 billion, $1.5 billion, and $1.4 billion during each of the years ended December 31, 2011, 2010 and 2009,
respectively.
Notes
Notes consist of senior notes, serial redeemable senior notes, and guaranteed notes, all of which are unsecured, as well as secured notes of iPCS, which are
secured solely with the underlying assets of iPCS. The Company may elect to pay interest on a portion of the iPCS secured notes entirely in cash or by increasing the
principal amount. Cash interest on the remaining notes is generally payable semiannually in arrears. Approximately $18.8 billion of the notes are redeemable at the
Company's discretion at the then applicable redemption price plus accrued interest.
F-19
Note 7. Long-Term Debt, Financin
g
and Capital Lease Obli
g
ations
Interest
Rates Maturities December 31,
2011 December 31, 2010
(in millions)
Notes
Senior notes
Sprint Nextel Corporation 6.00 - 11.50% 2016 - 2022 $ 4,500 $ 3,500
Sprint Capital Corporation 6.88 - 8.75% 2019 - 2032 6,204 9,854
Serial redeemable senior notes
Nextel Communications, Inc. 5.95 - 7.38% 2013 - 2015 4,780 4,780
Guaranteed notes
Sprint Nextel Corporation 9.00% 2018 3,000
—
Secured notes
iPCS, Inc. 2.55 - 3.68% 2013 - 2014 481 481
Credit facilities - Sprint Nextel Corporation
Bank credit facility 4.63% 2013
—
—
Export Development Canada 5.30% 2015 500 750
Financing obligation 9.50% 2030 698 698
Capital lease obligations and other 4.11 - 15.49% 2014 - 2022 71 76
Net premiums 40 52
20,274 20,191
Less current portion (8) (1,656)
Long-term debt, financing and capital lease obligations $ 20,266 $ 18,535