Sprint - Nextel 2013 Annual Report Download - page 143

Table of Contents
Index to Consolidated Financial Statements
SPRINT CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The following is a reconciliation of recurring unobservable assets:
Property, plant and equipment consists primarily of network equipment and other long
- lived assets used to provide service to our subscribers. As a
result of our network modernization and shut
- down of the Nextel platform, estimated useful lives of related equipment were shortened, causing incremental
depreciation charges during this period of implementation. The incremental effect of accelerated depreciation expense totaled approximately
$800 million for the
Predecessor 191
- day period ended July 10, 2013, and $2.1 billion for the Predecessor year ended December 31, 2012 , of which the majority related to shortened
useful lives of Nextel platform assets for all periods.
The components of property, plant and equipment, and the related accumulated depreciation for the Predecessor and Successor periods were as
follows:
Network equipment, site costs and related software includes switching equipment, cell site towers, site development costs, radio frequency
equipment, network software, digital fiber optic cable, transport facilities and transmission
- related equipment. Buildings and improvements principally consists
of owned general office facilities, retail stores and leasehold improvements. Non
- network internal use software, office equipment and other primarily consists of
furniture, information technology systems and equipment and vehicles. Construction in progress, which is not depreciated until placed in service, primarily
includes materials, transmission and related equipment, labor, engineering, site development costs, interest and other costs relating to the construction and
development of our network.
F - 25
Successor
Balances as of
December 31, 2012
Net purchases
Conversion of
Convertible Bond
Accretion of bond
discount recognized
as interest income
Change in value
of derivative
Realization of Gain
on Bond recognized
in other income, net
Transfers In (Out)
of Unobservable
Inputs
Balances as of
December 31, 2013
(in millions)
Bond investment
$
2,929
$
—
$
( 3,100
)
$
12
$
—
$
159
$
—
$
—
Bond derivatives
$
175
$
—
$
—
$
—
$
( 175
)
$
—
$
—
$
—
Note 6.
Property, Plant and Equipment
Successor
Predecessor
December 31,
2013
December 31,
2012
(in millions)
Land
$
265
$
330
Network equipment, site costs and related software
13,524
37,692
Buildings and improvements
725
4,893
Non - network internal use software, office equipment and other
794
1,860
Construction in progress
2,677
3,123
Less: accumulated depreciation
(1,821
)
(34,291
)
Property, plant and equipment, net
$
16,164
$
13,607