Sprint - Nextel 2011 Annual Report Download - page 89

Table of Contents
SPRINT NEXTEL CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
S
everance and Exit Costs Activit
y
During 2011, we recognized $28 million ($25 million Wireless; $3 million Wireline) in severance costs associated with actions in the fourth quarter of 2011.
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 was 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.
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:
A
sset Impairments
In 2011, 2010, and 2009, we recorded asset impairments of $78 million, $125 million, and $47 million, respectively, primarily related to network asset
equipment in our Wireless segment, no longer necessary for management's strategic plans.
F-22
2011 Activity
December 31,
2010 Net
Expense (Benefit) Cash Payments
and Other December 31,
2011
(in millions)
Exit costs $ 87 $
—
$(29) $58
Severance costs 7 28 (14) 21
$94 $ 28 $(43) $79
2010 Activity
December 31,
2009 Net Expense Cash Payments and Other December 31, 2010
(in millions)
Exit costs $ 89 $ 25 $ (27) $ 87
Severance costs 110 (17) (86) 7
$199 $ 8 $(113) $94
2009 Activity
December 31,
2008 Net Expense Cash Payments
and Other December 31, 2009
(in millions)
Exit costs $ 113 $ 38 $ (62) $ 89
Severance costs 90 362 (342) 110
$203 $ 400 $(404) $199