Sprint - Nextel 2013 Annual Report Download - page 59

Table of Contents
to a master netting arrangement or similar agreement. Based on the scope revision, this authoritative guidance did not impact our existing disclosures.
In February 2013, the FASB issued authoritative guidance regarding Comprehensive Income: Reporting of Amounts Reclassified Out of
Accumulated Other Comprehensive Income, which amends existing guidance and requires, in a single location, the presentation of the effects of certain
significant amounts reclassified from each component of accumulated other comprehensive income based on its source and Statement of Comprehensive (Loss)
Income line items affected by the reclassification. The guidance was effective beginning in the first quarter 2013 and did not have a material effect on our
consolidated financial statements as amounts reclassified out of other comprehensive income, consisting primarily of the recognition of periodic pension costs
and realized holding gains and losses, are immaterial for all periods presented.
In July 2013, the FASB issued authoritative guidance regarding Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a
Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force), which
amends existing guidance related to the financial presentation of unrecognized tax benefits by requiring an entity to net its unrecognized tax benefits against the
deferred tax assets for all available same
- jurisdiction loss or other tax carryforwards that would apply in settlement of the uncertain tax positions. The
amendments will be effective beginning in the first quarter of 2014 with early adoption permitted, will be applied prospectively to all unrecognized tax benefits
that exist at the effective date, and are not expected to have a material effect on our consolidated financial statements.
FINANCIAL STRATEGIES
General Risk Management Policies
Our board of directors has adopted a financial risk management policy that authorizes us to enter into derivative transactions, and all transactions
comply with the policy. We do not purchase or hold any derivative financial instruments for speculative purposes with the exception of equity rights obtained
in connection with commercial agreements or strategic investments, usually in the form of warrants to purchase common shares.
Derivative instruments are primarily used for hedging and risk management purposes. Hedging activities may be done for various purposes,
including, but not limited to, mitigating the risks associated with an asset, liability, committed transaction or probable forecasted transaction. We seek to
minimize counterparty credit risk through stringent credit approval and review processes, credit support agreements, continual review and monitoring of all
counterparties, and thorough legal review of contracts. Exposure to market risk is controlled by regularly monitoring changes in hedge positions under normal
and stress conditions to ensure they do not exceed established limits.
OTHER INFORMATION
We routinely post important information on our website at www.sprint.com/investors. Information contained on or accessible through our website is
not part of this annual report.
FORWARD - LOOKING STATEMENTS
We include certain estimates, projections and other forward
- looking statements in our annual, quarterly and current reports, and in other publicly
available material. Statements regarding expectations, including performance assumptions and estimates relating to capital requirements, as well as other
statements that are not historical facts, are forward
- looking statements.
These statements reflect management's judgments based on currently available information and involve a number of risks and uncertainties that
could cause actual results to differ materially from those in the forward
- looking statements. With respect to these forward - looking statements, management has
made assumptions regarding, among other things, subscriber and network usage, subscriber growth and retention, pricing, operating costs, the timing of
various events, and the economic and regulatory environment.
Future performance cannot be assured. Actual results may differ materially from those in the forward
- looking statements. Some factors that could
cause actual results to differ include:
57
•
our ability to retain and attract subscribers and to manage credit risks associated with our subscribers;