Sprint - Nextel 2013 Annual Report Download - page 56

Table of Contents
FUTURE CONTRACTUAL OBLIGATIONS
The following table sets forth our current estimates as to the amounts and timing of contractual payments as of
December 31, 2013 . Future events,
including additional purchases of our securities and refinancing of those securities, could cause actual payments to differ significantly from these amounts. See
"Item 1A. Risk Factors."
________________
"Purchase orders and other commitments" include minimum purchases we commit to purchase from suppliers over time and/or the unconditional
purchase obligations where we guarantee to make a minimum payment to suppliers for goods and services regardless of whether we take delivery. These
amounts do not represent our entire anticipated purchases in the future, but generally represent only our estimate of those items for which we are committed.
Our estimates are based on assumptions about the variable components of the contracts such as hours contracted, number of subscribers, pricing, and other
factors. In addition, we are party to various arrangements that are conditional in nature and create an obligation to make payments only upon the occurrence of
certain events, such as the delivery of functioning software or products. Because it is not possible to predict the timing or amounts that may be due under these
conditional arrangements, no such amounts have been included in the table above. The table above also excludes approximately
$31 million of blanket purchase
order amounts since their agreement terms are not specified. No time frame is set for these purchase orders and they are not legally binding. As a result, they are
not firm commitments. Our liability for uncertain tax positions was
$166 million as of December 31, 2013 . Due to the inherent uncertainty of the timing of the
resolution of the underlying tax positions, it is not practicable to assign this liability to any particular year(s) in the table.
The table above does not include remaining costs to be paid in connection with the fulfillment of our obligations under the Report and Order. The
Report and Order requires us to make a payment to the U.S. Treasury at the conclusion of the band reconfiguration process to the extent that the value of the 1.9
GHz spectrum we received exceeds the total of the value of licenses for spectrum in the 700 MHz and 800 MHz bands that we surrendered under the decision
plus the actual costs, or qualifying costs, that we incur to retune incumbents and our own facilities. From the inception of the program through
December 31,
2013 , we have incurred approximately $3.3 billion of costs directly attributable to the spectrum reconfiguration program. This amount does not include any of our
internal network costs that we have preliminarily allocated to the reconfiguration program for capacity sites and modifications for which we may request credit
under the reconfiguration program. We estimate, based on our experience to date with the reconfiguration program and on information currently available, that
our total direct costs attributable to complete the spectrum reconfigurations will range between $3.7 and $3.8 billion. Accordingly, we believe that it is unlikely
that we will be required to make a payment to the U.S. Treasury.
OFF - BALANCE SHEET FINANCING
We do not participate in, or secure, financings for any unconsolidated, special purpose entities.
54
Future Contractual Obligations
Total
2014
2015
2016
2017
2018
2019 and thereafter
(in millions)
Notes, credit facilities and debentures(1)
$
50,510
$
2,797
$
3,056
$
4,815
$
4,466
$
4,873
$
30,503
Capital leases and financing obligation
(2)
650
134
123
89
78
59
167
Operating leases(3)
16,651
2,250
1,989
1,893
1,819
1,776
6,924
Spectrum leases and service credits(4)
6,855
189
190
196
214
212
5,854
Purchase orders and other commitments(5)
22,164
11,954
5,679
2,360
765
591
815
Total
$
96,830
$
17,324
$
11,037
$
9,353
$
7,342
$
7,511
$
44,263
(1)
Includes outstanding principal and estimated interest payments. Interest payments are based on management's expectations for future interest rates in the case of any variable rate
debt.
(2)
Represents capital lease payments including interest and financing obligation related to the sale and subsequent leaseback of multiple tower sites.
(3)
Includes future lease payments related to cell and switch sites, real estate, network equipment and office space.
(4)
Includes future spectrum lease payments as well as service credits related to commitments to provide services to certain lessors and reimburse lessors for certain capital equipment
and third-party service expenditures, over the term of the lease.
(5)
Includes service, spectrum, network equipment, devices and other executory contracts, including our contract with Apple. Excludes blanket purchase orders in the amount of $31
million. See below for further discussion.