Sprint - Nextel 2013 Annual Report Download - page 121

Table of Contents
Index to Consolidated Financial Statements
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Directors and Stockholders
Sprint Corporation:
We have audited the accompanying consolidated balance sheet of Sprint Communications, Inc. (formerly Sprint Nextel Corporation) and subsidiaries
(the Predecessor Company) as of December 31, 2012, and the related consolidated statements of comprehensive loss, cash flows and stockholders ’ equity for
the 191 day period ended July 10, 2013, and each of the years in the two
- year period ended December 31, 2012. These consolidated financial statements are the
responsibility of the Predecessor Company
’ s management. Our responsibility is to express an opinion on these consolidated financial statements based on our
audits. We did not audit the financial statements of Clearwire Corporation and its consolidated subsidiary Clearwire Communications, LLC (collectively,
"Clearwire") as of December 31, 2012 and for the two
- year period ended December 31, 2012 and 2011. The Predecessor Company ’ s investment in Clearwire
included $674 million at December 31, 2012 and its equity in losses of Clearwire included $1.1 billion and $1.7 billion for the years 2012 and 2011, respectively.
The financial statements of Clearwire as of December 31, 2012 and for the two
- year period ended December 31, 2012 and 2011 were audited by other auditors
whose report has been furnished to us, and our opinion, insofar as it relates to those amounts included for Clearwire, is based solely on the report of the other
auditors.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, based on our audits and the report of the other auditors, the consolidated financial statements referred to above present fairly, in all
material respects, the financial position of the Predecessor Company as of December 31, 2012, and the results of their operations and their cash flows for the 191
day period ended July 10, 2013, and each of the years in the two
- year period ended December 31, 2012, in conformity with U.S. generally accepted accounting
principles.
Sprint Communications, Inc. adopted accounting guidance regarding the presentation of the consolidated statement of comprehensive loss in 2011
and testing indefinite
- lived intangible assets for impairment in 2012.
/s/ KPMG LLP
Kansas City, Missouri
October 21, 2013
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