Sprint - Nextel 2011 Annual Report Download - page 97

Table of Contents
SPRINT NEXTEL CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
We are in the process of renegotiating cell site leases in connection with Network Vision, which includes spectrum hosting capabilities. As a result, lease
renegotiations completed through December 31, 2011 resulted in an increase to future operating lease costs related to cell sites. The majority of the increase of such future
costs are in the period beyond 2016 due to the term extension of such agreements. Our rental commitments for operating leases, including lease renewals that are
reasonably assured, consisted mainly of leases for cell and switch sites, real estate, information technology and network equipment and office space. As of December 31,
2011, operating lease commitments in future years are as follows:
Total rental expense was $1.9 billion in 2011, and $1.8 billion in each of 2010 and 2009.
Commitments
We are a party to other commitments, which includes service, spectrum, network capacity and other executory contracts in connection with conducting our
business.
In September 2011, we finalized a four year minimum purchase agreement with Apple for smartphone devices estimated to be approximately $15.5 billion
over the term of the agreement. Our ultimate spend with Apple will depend on many variables, including anticipated rate of future subscriber growth, number of different
devices offered, and the cost of devices offered. We anticipate exceeding the current contractual minimum commitment for the iPhone® over the four year period.
As of December 31, 2011, the minimum amounts due under other commitments were as follows:
Amounts actually paid under some of these agreements will likely be higher due to variable components of these agreements. The more significant variable
components that determine the ultimate obligation owed include such items as hours contracted, subscribers and other factors. In addition, we are a party to various
arrangements that are conditional in nature and obligate us to make payments only upon the occurrence of certain events, such as the delivery of functioning software or a
product.
As of December 31, 2011, Sprint sponsored four incentive plans: the 2007 Omnibus Incentive Plan (2007 Plan); the 1997 Long-Term Incentive Program (1997
Program); the Nextel Incentive Equity Plan (Nextel Plan) and the Management Incentive Stock Option Plan (MISOP) (together, "Compensation Plans"). Sprint also
sponsors an Employee Stock Purchase Plan (ESPP). Under the 2007 Plan, we may grant share and non-share based awards, including stock options, stock appreciation
rights, restricted stock, restricted stock units, performance shares, performance units and other equity-based and cash awards to employees, outside directors and other
eligible
F-30
(in millions)
2012 $1,891
2013 1,922
2014 1,881
2015 1,725
2016 1,573
2017 and thereafter 9,148
$ 18,140
(in millions)
2012 $ 11,075
2013 6,240
2014 5,657
2015 4,896
2016 716
2017 and thereafter 921
$ 29,505
Note 13. Compensation Plans