Sprint - Nextel 2013 Annual Report Download - page 139

Table of Contents
Index to Consolidated Financial Statements
SPRINT CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
management during the fourth quarter of 2013 related to the value assigned to certain FCC licenses. Deferred tax liabilities decreased approximately
$126 million
primarily due to adjustments related to FCC licenses. The remaining adjustments were insignificant.
The following table summarizes the preliminary purchase price allocation of consideration transferred:
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 such as cost synergies related to scaled purchasing and other additional cost savings. Goodwill resulting from the
SoftBank Merger is allocated to the Wireless segment, substantially all of which is not expected to be deductible for income tax purposes. Gross contractual
receivables acquired and included within current assets above totaled approximately
$3.4 billion for which the estimated fair value is $3.2 billion . The difference
is the estimated amount of Sprint Communication's allowance for doubtful accounts at the SoftBank Merger Date.
Identifiable intangible assets acquired in the SoftBank Merger include the following:
Indefinite
- lived intangible assets consist of 1.9 GHz, 800 megahertz (MHz), 900 MHz, and 2.5 GHz FCC licenses as well as the Sprint and Boost
Mobile trademarks. Intangible assets subject to amortization consist of customer relationships, favorable spectrum and tower leases resulting from the favorable
difference between the terms of the tower and spectrum leases acquired and the current market terms for those leases at the SoftBank Merger date, and the
Virgin Mobile trade name (see Note 7. Intangible Assets)
.
F - 21
Preliminary Purchase Price Allocation (in millions) :
Current assets
$
8,517
Investments
133
Property, plant and equipment
14,558
Identifiable intangibles
50,626
Goodwill
6,434
Other assets
227
Current liabilities
(10,711
)
Long - term debt
(29,481
)
Deferred tax liabilities
(14,131
)
Other liabilities
(3,995
)
Net assets acquired, prior to conversion of the Bond
22,177
Conversion of Bond
3,100
Net assets acquired, after conversion of the Bond
$
25,277
Estimated Fair
Value
Weighted Average
Useful Life
(in millions)
Indefinite - lived intangible assets:
FCC licenses
$
35,723
n/a
Trademarks
5,935
n/a
Intangible assets subject to amortization:
Customer relationships
6,923
8
Other definite - lived intangible assets
Favorable spectrum leases
884
23
Favorable tower leases
589
6
Trademarks
520
34
Other
52
10
$
50,626