Sprint - Nextel 2012 Annual Report Download - page 61

Table of Contents
FUTURE CONTRACTUAL OBLIGATIONS
The following table sets forth our current estimates as to the amounts and timing of contractual payments as of
December 31, 2012 . Future
events, including additional purchases of our securities and refinancing of those securities, could cause actual payments to differ significantly from
these amounts. See “Forward
- Looking Statements” and Item 1A, “Risk Factors."
________________
“Purchase orders and other commitments” include minimum purchases we commit to purchase from suppliers over time and/or the
unconditional purchase obligations where we guarantee to make a minimum payment to suppliers for goods and services regardless of whether we
take delivery. These amounts do not represent our entire anticipated purchases in the future, but generally represent only our estimate of those items
for which we are committed. Our estimates are based on assumptions about the variable components of the contracts such as hours contracted,
number of subscribers, pricing, and other factors. In addition, we are party to various arrangements that are conditional in nature and create an
obligation to make payments only upon the occurrence of certain events, such as the delivery of functioning software or products. Because it is not
possible to predict the timing or amounts that may be due under these conditional arrangements, no such amounts have been included in the table
above. The table above also excludes approximately
$24 million of blanket purchase order amounts since their agreement terms are not specified. No
time frame is set for these purchase orders and they are not legally binding. As a result, they are not firm commitments. Our liability for uncertain tax
positions was
$171 million as of December 31, 2012 . Due to the inherent uncertainty of the timing of the resolution of the underlying tax positions, it is
not practicable to assign this liability to any particular year(s) in the table.
The table above does not include remaining costs to be paid in connection with the fulfillment of our obligations under the Report and
Order. The Report and Order requires us to make a payment to the U.S. Treasury at the conclusion of the band reconfiguration process to the extent
that the value of the 1.9 GHz spectrum we received exceeds the total of the value of licenses for spectrum in the 700 MHz and 800 MHz bands that we
surrendered under the decision plus the actual costs, or qualifying costs, that we incur to retune incumbents and our own facilities. From the inception
of the program through
December 31, 2012 , we have incurred approximately $3.2 billion of costs directly attributable to the spectrum reconfiguration
program. This amount does not include any of our internal network costs that we have preliminarily allocated to the reconfiguration program for
capacity sites and modifications for which we may request credit under the reconfiguration program. We estimate, based on our experience to date
with the reconfiguration program and on information currently available, that our total direct costs attributable to complete the spectrum
reconfigurations will range between $3.6 and $3.7 billion. Accordingly, we believe that it is unlikely that we will be required to make a payment to the
U.S. Treasury.
OFF - BALANCE SHEET FINANCING
We do not participate in, or secure, financings for any unconsolidated, special purpose entities.
56
Future Contractual Obligations
Total
2013
2014
2015
2016
2017
2018 and
thereafter
(in millions)
Notes, credit facilities and debentures(1)
$
38,125
$
1,948
$
1,820
$
2,136
$
3,600
$
3,699
$
24,922
Capital leases and financing obligation
(2)
1,603
99
87
83
86
86
1,162
Operating leases(3)
15,666
1,880
1,863
1,668
1,542
1,437
7,276
Purchase orders and other commitments(4)(5)
30,464
17,464
5,357
4,798
1,046
643
1,156
Total
$
85,858
$
21,391
$
9,127
$
8,685
$
6,274
$
5,865
$
34,516
(1)
Includes outstanding principal and estimated interest payments. Interest payments are based on management's expectations for future interest rates.
(2)
Represents capital lease payments including interest and financing obligation related to the sale and subsequent leaseback of multiple tower sites.
(3)
Includes future lease payments related to cell and switch sites, real estate, network equipment and office space.
(4)
Includes service, spectrum, network capacity and other executory contracts including our contract with Apple. Excludes blanket purchase orders in the amount of
$24 million. See below for further discussion.
(5)
Includes the $800 million of additional financing for Clearwire during 2013. (see Liquidity and Capital Resources).