Sprint - Nextel 2014 Annual Report Download - page 115

Table of Contents
Index to Consolidated Financial Statements
SPRINT CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
F-32
Covenants
Certain indentures and other agreements also require compliance with various covenants, including covenants that
limit the ability of the Company and its subsidiaries to sell all or substantially all of its assets, limit the ability of the
Company and its subsidiaries to incur indebtedness and liens, and require that we maintain certain financial ratios, each as
defined by the terms of the indentures, supplemental indentures and financing arrangements.
As of March 31, 2015, the Company was in compliance with all restrictive and financial covenants associated
with its borrowings. A default under any of our borrowings could trigger defaults under certain of our other debt obligations,
which in turn could result in the maturities being accelerated.
Under our revolving bank credit facility and other finance agreements, we are currently restricted from paying
cash dividends because our ratio of total indebtedness to adjusted EBITDA (each as defined in the applicable agreements)
exceeds 2.5 to 1.0.
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 March 31, 2015, were as follows (in millions):
Fiscal year 2015 $ 1,300
Fiscal year 2016 3,643
Fiscal year 2017 1,379
Fiscal year 2018 3,068
Fiscal year 2019 3,094
Fiscal year 2020 and thereafter 20,241
32,725
Net premiums 1,106
$ 33,831
Note 9. Severance and Exit Costs
For the year ended March 31, 2015, we recognized lease exit costs primarily associated with tower and cell sites as
well as facility closures. For the Successor three-month transition period ended March 31, 2014, we recognized lease exit costs
primarily associated with retail store closures. For the Successor year ended December 31, 2013 as well as for the Predecessor
191-day period ended July 10, 2013 and unaudited three-month period ended March 31, 2013, 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.
As a result of the United States Cellular (U.S. Cellular) asset acquisition, which closed in May 2013, we recorded a
liability related to network shut-down costs for which we agreed to reimburse U.S. Cellular. During the quarter ended
December 31, 2014, we identified favorable trends in actual costs and, as a result, we released some of the reserve resulting in
a gain of approximately $41 million included in "Other, net" on the consolidated statements of operations.
For the Successor year ended March 31, 2015, three-month transition period ended March 31, 2014 and year ended
December 31, 2013 as well as the Predecessor 191-day period ended July 10, 2013 and unaudited three-month period ended
March 31, 2013, we also recognized severance costs associated with reductions in our work force.
As a result of the modernization of our network 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 $75 million to $150 million, of which the majority are
expected to be incurred through March 31, 2016.