Sprint - Nextel 2013 Annual Report Download - page 150

Table of Contents
Index to Consolidated Financial Statements
SPRINT CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
_________________
_________________
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Asset Impairments
There were no asset impairments for the Successor year ended
December 31, 2013 or the Predecessor 191 - day period ended July 10, 2013 . We
recorded asset impairments of
$102 million , and $78 million , for the Predecessor years ended 2012 , and 2011 , respectively. Asset impairments in 2012 consisted of
$18 million of assets associated with a decision to utilize fiber backhaul, which we expect to be more cost effective, rather than microwave backhaul, $66 million
of capitalized assets that we no longer intend to deploy as a result of the termination of the spectrum hosting arrangement with LightSquared in the first quarter
2012 , and $18 million related to network asset equipment ( $13 million Wireless; $5 million Wireline) that is no longer necessary for management's strategic plans.
Asset impairments in
2011 primarily related to network asset equipment in our Wireless segment that was no longer necessary for management's strategic plans.
F - 32
Predecessor
December 31,
2011
Net
Expense
Cash Payments
and Other
December 31,
2012
Lease exit costs
$
58
$
196
(4)
$
(64
)
$
190
Severance costs
21
—
( 10
)
11
Access exit costs
—
44
(5)
(1
)
43
$
79
$
240
$
(75
)
$
244
(4)
For the year ended December 31, 2012, we recognized costs of $196 million (solely attributable to our Wireless segment).
(5)
For the year ended December 31, 2012, we recognized costs of $44 million ($21 million Wireless; $23 million Wireline) as "Cost of services and products."
Predecessor
December 31,
2010
Net
Expense
Cash Payments
and Other
December 31,
2011
(in millions)
Lease exit costs
$
87
$
—
$
( 29
)
$
58
Severance costs
7
28
(6)
(14
)
21
$
94
$
28
$
(43
)
$
79
(6)
For the year ended December 31, 2011, we recognized costs of $28 million ($25 million Wireless; $3 million Wireline).
Successor
July 11,
2013
Net
Expense
Cash Payments
and Other
December 31,
2013
(in millions)
Lease exit costs
$
933
(7)
$
56
(8)
$
(225
)
$
764
Severance costs
54
219
(9)
(48
)
225
Access exit costs
189
53
(10)
(93
)
149
$
1,176
$
328
$
(366
)
$
1,138
(7)
The July 11, 2013 opening balance takes into account purchase price adjustments as it relates to the SoftBank Merger.
(8)
For the year ended December 31, 2013, we recognized costs of $56 million ($54 million Wireless, $2 million Wireline).
(9)
For the year ended December 31, 2013, we recognized costs of $219 million ($191 million Wireless, $28 million Wireline).
(10)
For the year ended December 31, 2013, $19 million (solely attributable to Wireline) was recognized as "Cost of services and products" and $34 million (solely attributable to
Wireless) was recognized in "Severance, exit costs and assets impairments."