Sprint - Nextel 2014 Annual Report Download - page 135
Download and view the complete annual report
Please find page 135 of the 2014 Sprint - Nextel annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125 -
126 -
127 -
128 -
129 -
130 -
131 -
132 -
133 -
134 -
135 -
136 -
137 -
138 -
139 -
140 -
141 -
142 -
143 -
144 -
145 -
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
 |
 |
Table of Contents
Index to Consolidated Financial Statements
SPRINT CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
F-52
Amounts included in our consolidated financial statements associated with our arrangements with Brightstar were
as follows:
Consolidated balance sheets: March 31,
2015 March 31,
2014
(in millions)
Accounts receivable $ 430 $ —
Accounts payable $ 96 $ —
Consolidated statements of operations: March 31,
2015
(in millions)
Net operating revenues (1) $ 1,818
Cost of products (1) $ 1,887
_________________
(1) Amounts for all other reported periods were immaterial.
Additionally, we have arrangements with a wholly-owned subsidiary of Brightstar (Brightstar Subsidiary) to
procure devices and accessories on our behalf with certain third-party vendors under existing purchase arrangements Sprint
has with those vendors as well as new vendor purchase arrangements entered into by the Brightstar Subsidiary. The
procurement services include placing orders, processing invoices, receiving payments from us, making payments to our
suppliers on our behalf. As compensation under the device arrangement, we paid a portion of certain costs that Brightstar
Subsidiary incurs plus a profit percentage. Under the accessory arrangement, we pay a percentage mark-up on the cost of
accessory purchases. During the year ended March 31, 2015, three-month transition period ended March 31, 2014 and year
ended December 31, 2013, we procured, through the Brightstar Subsidiary, approximately $5.3 billion, $411 million and $86
million, respectively, of device and accessory inventory, which was sold in direct and indirect channels for which we paid
immaterial fees to the Brightstar Subsidiary. In mid-December 2014, we determined that the Brightstar Subsidiary will
discontinue procurement of devices on our behalf and as a result, those purchasing activities are transitioning back to us.
Amounts included in our consolidated balance sheets associated with these arrangements with the Brightstar
Subsidiary were as follows:
March 31,
2015 March 31,
2014
(in millions)
Device and accessory inventory $ 410 $ 266
Accounts payable $ 16 $ 205
All other transactions under agreements with SoftBank Parties, in the aggregate, were immaterial through the
period ended March 31, 2015.