Sprint - Nextel 2012 Annual Report Download - page 140

Table of Contents
SPRINT NEXTEL CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
capitalized to construction in progress within property, plant and equipment, which ceases as the spectrum is ready for its intended use. Interest
expense capitalized in connection with the construction of long
- lived assets totaled $278 million , $413 million and $13 million for the years ended
December 31, 2012 , 2011 and 2010 , respectively. Construction in progress (including any capitalized interest) associated with Network Vision is
expected to be depreciated using the straight
- line method over a weighted average useful life of approximately eight years, once the assets are placed
in service.
The components of property, plant and equipment, and the related accumulated depreciation were as follows:
Network equipment, site costs and related software includes switching equipment, cell site towers, site development costs, radio frequency
equipment, network software, digital fiber optic cable, transport facilities and transmission
- related equipment. Buildings and improvements principally
consists of owned general office facilities, retail stores and leasehold improvements. Non
- network internal use software, office equipment and other
primarily consists of furniture, information technology systems and equipment and vehicles. Construction in progress, which is not depreciated until
placed in service, primarily includes materials, transmission and related equipment, labor, engineering, site development costs, interest and other costs
relating to the construction and development of our network.
Indefinite - Lived Intangible Assets
We hold
1.9 gigahertz (GHz), 800 megahertz (MHz), and 900 MHz FCC licenses authorizing the use of radio frequency spectrum to deploy
our wireless services. As long as the Company acts within the requirements and constraints of the regulatory authorities, the renewal and extension of
these licenses is reasonably certain at minimal cost. We are not aware of any technology being developed that would render this spectrum obsolete
and have concluded that these licenses are indefinite
- lived intangible assets. Our Sprint and Boost Mobile trademarks have also been identified as
indefinite
- lived intangible assets. During 2012 , we conducted our annual assessment of the estimated fair value of indefinite - lived intangible assets
other than goodwill and determined that no adjustment was necessary.
F - 19
December 31,
2012
December 31,
2011
(in millions)
Land
$
330
$
333
Network equipment, site costs and related software
37,692
37,600
Buildings and improvements
4,893
4,895
Non - network internal use software, office equipment and other
1,860
2,111
Construction in progress
3,123
1,752
Less accumulated depreciation
(34,291
)
(32,682
)
Property, plant and equipment, net
$
13,607
$
14,009
Note 7.
Intangible Assets
December 31,
2010
Net
Additions
December 31,
2011
Net
Additions
December 31,
2012
(in millions)
FCC licenses
$
19,927
$
117
$
20,044
$
224
$
20,268
Trademarks
409
—
409
—
409
Goodwill
359
—
359
—
359
$
20,695
$
117
$
20,812
$
224
$
21,036