Sprint - Nextel 2013 Annual Report Download - page 137

Table of Contents
Index to Consolidated Financial Statements
SPRINT CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The excess of the consideration transferred over the estimated fair values of assets acquired and liabilities assumed was recorded as goodwill.
Goodwill includes expected synergies from combining the businesses such as cost synergies from reduced network
- related expenses through the elimination of
redundant assets and enhanced spectrum positions, which are expected to provide greater network coverage. None of the goodwill resulting from the
acquisition, which is allocated to the Wireless segment, is deductible for income tax purposes.
Identifiable intangible assets acquired in the Clearwire Acquisition include the following:
FCC licenses consist of the 2.5 gigahertz (GHz) spectrum acquired. Favorable spectrum and tower leases resulted from the favorable difference
between the terms of the Clearwire tower and spectrum leases acquired and the current market terms for those leases at the Clearwire Acquisition Date (see Note
7. Intangible Assets)
.
Consolidated Statement of Comprehensive Loss for the period from July 10, 2013 to December 31, 2013
The following supplemental information presents the financial results of Clearwire operations included in the Consolidated Statement of
Comprehensive Loss for the period from July 10, 2013 through
December 31, 2013 :
SoftBank Transaction
As discussed above, the SoftBank Merger was completed on
July 10, 2013 (SoftBank Merger Date). Sprint Communications, Inc. stockholders
received consideration in a combination of both cash and stock, subject to proration. Cash consideration paid in the SoftBank Merger was
$14.1 billion , net of
cash acquired of
$2.5 billion and the estimated fair value of the 22% interest in Sprint Corporation issued to the then existing stockholders of Sprint
Communications, Inc. SoftBank provided an equity contribution of
$1.9 billion to Sprint at the close of the
F - 19
Preliminary Purchase Price Allocation (in millions) :
Current assets
$
778
Property, plant and equipment
1,245
Identifiable intangibles
12,870
Goodwill
423
Other assets
25
Current liabilities
(1,063
)
Long - term debt
(4,288
)
Deferred tax liabilities
(2,130
)
Other liabilities
(869
)
Net assets acquired
$
6,991
Estimated Fair
Value
Weighted Average
Useful Life
(in millions)
(in years)
Indefinite - lived intangible assets:
Federal Communications Commission (FCC) licenses
$
11,884
n/a
Intangible assets subject to amortization:
Favorable spectrum and tower leases
986
21
$
12,870
From July 10, 2013 through
December 31, 2013
(in millions)
Total revenues
$
340
Net loss
$
(1,017
)