Sprint - Nextel 2013 Annual Report Download - page 149

Table of Contents
Index to Consolidated Financial Statements
SPRINT CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Future Maturities of Long - Term Debt, Financing Obligation and Capital Lease Obligations
Aggregate amount of maturities for long
- term debt, financing obligation and capital lease obligations outstanding as of December 31, 2013 , were as
follows (in millions):
Severance and Exit Costs Activity
For the Successor year ended
December 31, 2013 as well as for the Predecessor 191 - day period ended July 10, 2013 and year ended 2012 , we
recognized lease exit costs associated with the decommissioning of the Nextel Platform and access exit costs related to payments that will continue to be made
under our backhaul access contracts for which we will no longer be receiving any economic benefit.
For the Successor year ended
December 31, 2013 as well as the Predecessor 191 - day period ended July 10, 2013 and year ended 2011 , we also
recognized severance costs associated with reductions in our work force. During December 2013, the Company recorded a
$165 million severance charge
associated with a reduction in force plan in order to reduce operating costs. We also expect to incur additional severance charges during the first quarter of 2014
as certain parts of the plan become finalized. The majority of the cash payments associated with the plan are expected to be made by the end of 2014.
As a result of our network modernization and the completion of the Significant Transactions (see Note 3. Significant Transactions), we expect to
incur additional exit costs in the future related to the transition of our existing backhaul architecture to a replacement technology for our network and the efforts
associated with the integration of our Significant Transactions, such as the evaluation of future use of the Clearwire 4G broadband network, among other
initiatives. These additional exit costs are expected to range between approximately
$225 million to $325 million , of which the majority are expected to be incurred
through first quarter 2016.
The following provides the activity in the severance and exit costs liability included in "Accounts payable," "Accrued expenses and other current
liabilities" and "Other liabilities" within the consolidated balance sheets:
_________________
F - 31
2014
$
994
2015
857
2016
2,622
2017
2,489
2018
3,047
2019 and thereafter
21,520
31,529
Net premiums
1,482
$
33,011
Note 9.
Severance, Exit Costs and Asset Impairments
Predecessor
December 31,
2012
Purchase Price
Adjustments
Net
Expense
Cash Payments
and Other
July 10,
2013
(in millions)
Lease exit costs
$
190
$
131
$
478
(1)
$
(33
)
$
766
Severance costs
11
—
58
(2)
(15
)
54
Access exit costs
43
—
151
(3)
(5
)
189
$
244
$
131
$
687
$
(53
)
$
1,009
(1)
For the 191-day period ended July 10, 2013, we recognized net costs of $478 million (solely attributable to our Wireless segment).
(2)
For the 191-day period ended July 10, 2013, we recognized costs of $58 million ($55 million Wireless, and $3 million was Wireline).
(3)
Of the $151 million ($133 million Wireless; $18 million Wireline) recognized for the 191-day period ended July 10, 2013, $35 million was recognized as "Cost of services and
products" and $116 million was recognized in "Severance, exit costs and asset impairments."