Sprint - Nextel 2012 Annual Report Download - page 31

Table of Contents
Our corporate headquarters are located in Overland Park, Kansas and consist of about
3,853,000 square feet. Our gross property, plant and
equipment at
December 31, 2012 totaled $47.9 billion , as follows:
Properties utilized by our Wireless segment generally consist of base transceiver stations, switching equipment and towers, as well as
leased and owned general office facilities and retail stores. We lease space for base station towers and switch sites for our wireless network.
Properties utilized by our Wireline segment generally consist of land, buildings, switching equipment, digital fiber optic network and other
transport facilities. We have been granted easements, rights
- of - way and rights - of - occupancy by railroads and other private landowners for our fiber
optic network.
On January 6, 2011, the U.S. District Court for the District of Kansas denied our motion to dismiss a shareholder lawsuit, Bennett v. Sprint
Nextel Corp., that alleges that the Company and three of our former officers violated Section 10(b) of the Securities Exchange Act of 1934 and Rule
10b - 5 by failing adequately to disclose certain alleged operational difficulties subsequent to the Sprint - Nextel merger, and by purportedly issuing false
and misleading statements regarding the write
- down of goodwill. The complaint was originally filed in March 2009 and is brought on behalf of alleged
purchasers of company stock from October 26, 2006 to February 27, 2008. Our motion to certify the January 6, 2011 order for an interlocutory (or
interim) appeal was denied, and discovery has begun. The plaintiff moved to certify a class of bond holders as well as owners of common stock, and
we have opposed that motion. We believe the complaint is without merit and intend to defend the matter vigorously. We do not expect the resolution
of this matter to have a material adverse effect on our financial position or results of operations.
Five related shareholder derivative suits were filed against the Company and certain of our present and/or former officers and directors. The
first, Murphy v. Forsee, was filed in state court in Kansas on April 8, 2009, was removed to federal court, and was stayed by the court pending
resolution of the motion to dismiss the Bennett case; the second, Randolph v. Forsee, was filed on July 15, 2010 in state court in Kansas, was removed
to federal court, and was remanded back to state court; the third, Ross
- Williams v. Bennett, et al., was filed in state court in Kansas on February 1,
2011; the fourth, Price v. Forsee, et al., was filed in state court in Kansas on April 15, 2011; and the fifth, Hartleib v. Forsee, et. al., was filed in federal
court in Kansas on July 14, 2011. These cases are essentially stayed while we proceed with discovery in the Bennett case. We do not expect the
resolution of these matters to have a material adverse effect on our financial position or results of operations.
In addition, the Company has received several complaints purporting to assert claims on behalf of Sprint shareholders, alleging that
members of the board of directors breached their fiduciary duties in agreeing to the SoftBank Merger, and otherwise challenging that
transaction. There are five cases pending in state court in Johnson County, Kansas: UFCW Local 23 and Employers Pension Fund, et al. v. Bennett,
et al., filed on October 25, 2012; Iron Workers Mid
- South Pension Fund, et al. v. Hesse, et al., filed on October 25, 2012; City of Dearborn Heights Act
345 Police and Fire Retirement System v. Sprint Nextel Corp.
, et al., filed on October 12, 2012; Testani, et al. v. Sprint Nextel Corp., et al., filed on
November 1, 2012; and Patten, et al. v. Sprint Nextel Corp., et al., filed on November 1, 2012. There is one case filed in federal court in the District of
Kansas, entitled Gerbino, et al. v. Sprint Nextel Corp., et al., filed on November 15, 2012. The Company intends to defend these cases vigorously,
and, because these cases are still in the preliminary stages, has not yet determined what effect the lawsuits will have, if any, on its financial position,
results of operations, or cash flows.
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Item 2.
Properties
2012
(in billions)
Wireless
$
40.8
Wireline
4.7
Corporate and other
2.4
Total
$
47.9
Item 3.
Legal Proceedings