Sprint - Nextel 2014 Annual Report Download - page 35

Table of Contents
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Other, net reflected an expense of $413 million in the year ended March 31, 2015. Severance and exit costs
included $253 million of severance primarily associated with reductions in force and $13 million of lease exit costs primarily
associated with tower and cell sites as well as facility closures. In addition, we recognized $38 million of costs during the
period 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. Litigation of $91 million represented legal reserves for various pending legal suits and
proceedings. Partial pension settlement was the result of the Company’s Board of Directors approving a plan amendment to
the Sprint Retirement Pension Plan (Plan) to offer certain terminated participants, who had not begun to receive Plan benefits,
the opportunity to voluntarily elect to receive their benefits as an immediate lump sum distribution. The lump sum
distribution created a settlement event that resulted in a $59 million charge. As a result of the May 2013 U.S. Cellular asset
acquisition, 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.
Other, net reflected an expense of $52 million in the Successor three-month transition period ended March 31,
2014. Severance and exit costs of $52 million for the three-month transition period ended March 31, 2014 included $14
million of severance primarily associated with reductions in force and $11 million of lease exit costs primarily associated
with retail store closures. In addition, we recognized $31 million of costs during the period 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, of
which $4 million was recognized as "Cost of services."
Other, net reflected an expense of $402 million for the Successor year ended December 31, 2013. Severance and
exit costs of $309 million for the Successor year ended December 31, 2013 included $219 million of severance primarily
associated with reductions in force and $56 million of lease exit costs primarily associated with the decommissioning of the
Nextel platform. In addition, we recognized $53 million of payments that will continue to be made under our backhaul access
contracts for which we will no longer be receiving any economic benefit, and of which $19 million was recognized as "Cost
of services." The $93 million reflected in "Other" included $100 million of business combination fees paid to unrelated
parties in connection with the transactions with SoftBank and Clearwire and are classified within selling, general and
administrative expense in our consolidated statements of operations. This is partially offset by $7 million of reimbursements
related to 2012 hurricane-related charges recorded as a contra expense in cost of services in our consolidated statements of
operations.
Other, net reflected an expense of $683 million in the Predecessor 191-day period ended July 10, 2013. Exit costs
included lease exit costs of $478 million primarily associated with taking certain Nextel platform sites off-air by June 30,
2013 and $151 million 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. Of the $151 million of future payments, $35 million was recognized as
"Cost of services" and $116 million was recognized in "Severance and exit costs." We also recognized $58 million of
severance related to reductions in force. "Other" included $53 million of business combination fees paid to unrelated parties
as described above, partially offset by a favorable ruling by the Texas Supreme Court in connection with the taxation of E911
services, which resulted in a non-cash benefit of $22 million.
Other, net reflected an expense of $3 million in the Predecessor three-month period ended March 31, 2013.
Severance and exit costs $17 million of severance primarily associated with selective reductions in force and $8 million of
lease exit costs associated with taking certain Nextel platform sites off-air. A favorable ruling by the Texas Supreme Court in
connection with the taxation of E911 services resulted in a non-cash benefit of $22 million in the quarter ended March 31,
2013.
Other, net reflected income of $22 million in the Predecessor year ended December 31, 2012. Severance and exit
costs in 2012 included lease exit costs of $196 million associated with taking certain Nextel platform sites off-air in the
quarters ending June 30, 2012 and September 30, 2012. Gains from asset dispositions and exchanges were primarily related
to spectrum exchange transactions. The spectrum hosting contract termination was a result of the recognition of $236 million
of the total $310 million paid by LightSquared in 2011 as operating income in "Other, net" due to the termination of our
spectrum hosting arrangement with LiqhtSquared. The amount reflected in "Other" consisted of $45 million of hurricane-
related costs and $19 million of expenses associated with business combinations partially offset by $17 million in benefits
resulting from favorable developments relating to access cost disputes with certain exchange carriers.