Sprint - Nextel 2012 Annual Report Download - page 146

Table of Contents
SPRINT NEXTEL CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The following provides the activity in the severance and exit costs liability included in “Accounts Payable”
, “Accrued expenses and other
current liabilities” and “Other liabilities” within the consolidated balance sheets:
Asset Impairments
In
2012, 2011 , and 2010 , we recorded asset impairments of $102 million , $78 million , and $125 million , respectively. Asset impairments in 2012
consisted of
$18 million of assets associated with a decision to utilize fiber backhaul, which we expect to be more cost effective, rather than microwave
backhaul,
$66 million of capitalized assets that we no longer intend to deploy as a result of the termination of the spectrum hosting arrangement with
LightSquared in the first quarter 2012, and $18 million related to network asset equipment ( $13 million Wireless; $5 million Wireline) that is no longer
necessary for management's strategic plans. Asset impairments in
2011 and 2010 primarily related to network asset equipment in our Wireless segment,
no longer necessary for management's strategic plans.
F - 25
2012 Activity
December 31,
2011
Net
Expense
Cash Payments
and Other
December 31,
2012
(in millions)
Lease exit costs
$
58
$
196
$
(64
)
$
190
Severance costs
21
—
( 10
)
11
Access exit costs
—
44
(1
)
43
$
79
$
240
$
(75
)
$
244
2011 Activity
December 31,
2010
Net
Expense
Cash Payments
and Other
December 31,
2011
(in millions)
Lease exit costs
$
87
$
—
$
( 29
)
$
58
Severance costs
7
28
(14
)
21
$
94
$
28
$
(43
)
$
79
2010 Activity
December 31,
2009
Net
Expense (Benefit)
Cash Payments
and Other
December 31,
2010
(in millions)
Lease exit costs
$
89
$
25
$
(27
)
$
87
Severance costs
110
(17
)
(86
)
7
$
199
$
8
$
(113
)
$
94