Sprint - Nextel 2014 Annual Report Download - page 55

Table of Contents
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interest payments of $505 million primarily related to the debt issued in September 2013 and December 2013. The decrease
was partially offset by lower vendor and labor-related payments of $1.4 billion, which were primarily due to (i) decreased
backhaul payments related to the shut-down of the Nextel platform in June 2013, (ii) declines in roaming payments due to
lower volumes and rates, and (iii) fewer labor-related payments primarily as a result of reductions in force, call center savings
due to lower call volumes, and other labor-related initiatives. These lower payments were partially offset by increased cash
paid for inventory.
Net cash provided by operating activities of approximately $522 million in the Successor three-month transition
period ended March 31, 2014 decreased $418 million from the same Predecessor period in 2013. The decrease was due to
decreased cash received from customers of $365 million primarily as a result of increases in installment billing receivables and
increased interest payments of $254 million related to the debt issued in September 2013. These decreases were partially offset
by decreases in vendor and labor-related payments of $219 million.
Net cash used in operating activities of approximately $61 million in the Successor year ended December 31, 2013
decreased $3.1 billion from the same Predecessor period in 2012. The decrease was primarily due to comparing a shortened
Post-merger period to a period consisting of a full calendar year and also included $180 million of call redemption premiums
paid to retire the Clearwire debt and approximately $225 million of interest payments related to Clearwire debt. Net cash
provided by operating activities in 2013, on a combined basis, of approximately $2.6 billion decreased $389 million as
compared to the Predecessor in 2012. In addition to the explanations above, the decrease was primarily due to increased
vendor and labor-related payments of $475 million and increased cash paid for interest of approximately $213 million
primarily as a result of less interest capitalized related to spectrum licenses used for improving the quality of our network. This
was partially offset by increased cash received from customers of $699 million.
Investing Activities
Net cash used in investing activities in the Successor year ended March 31, 2015 decreased by approximately $13.4
billion as compared to the Successor year ended December 31, 2013, primarily due to increases of approximately $1.4 billion
in proceeds from sales and maturities of short-term investments and 2013 increases related to the SoftBank Merger of $14.1
billion, net of cash acquired. These decreases were partially offset by increased capital expenditures of $2.2 billion, which
included $582 million of leased devices purchased from indirect channels, and increased purchases of short-term investments
of $358 million. In addition, in the Successor year ended March 31, 2015, we received $95 million in reimbursements of our
costs of clearing the H Block spectrum as part of the Report and Order obligations and $315 million of proceeds from sales of
assets and FCC licenses of which $290 million was related to the sale of certain FCC licenses.
Net cash used in investing activities in the Successor three-month transition period ended March 31, 2014 increased
by approximately $598 million as compared to the same Predecessor period in 2013, primarily due to increased purchases of
short-term investments of approximately $100 million, decreased proceeds of approximately $360 million from sales and
maturities of short-term investments, and increases in capital expenditures and expenditures relating to FCC licenses of $100
million each. In addition, as part of an amended exchangeable notes agreement we had with Clearwire, they elected to draw
$80 million in March 2013. As a result of the Clearwire Acquisition, the exchangeable notes agreement was terminated and no
notes remain outstanding.
Net cash used in investing activities for the Successor year ended December 31, 2013 increased by approximately
$11.7 billion as compared to the related Predecessor period in 2012, primarily due to increased cash paid related to the
SoftBank Merger of $14.1 billion, net of cash acquired. This increase was partially offset by decreased purchases of short-term
investments of approximately $1.5 billion, increased proceeds of approximately $200 million from sales and maturities of
short-term investments and a reduction in capital expenditures of approximately $400 million as a result of comparing a
shortened Post-merger period to a period consisting of a full calendar year.
Financing Activities
Net cash provided by financing activities was $1.3 billion during the Successor year ended March 31, 2015, which
was primarily due to the February 24, 2015 issuance of $1.5 billion aggregate principal amount of 7.625% notes due 2025. In
addition, we amended our unsecured Export Development Canada (EDC) agreement to, among other things, add an
additional tranche totaling $300 million due 2019, which was fully drawn as of March 31, 2015. These were partially offset
by principal payments on the iPCS, Inc. Second Lien Secured Floating Rate Notes due 2014 of approximately $181 million
and scheduled principal payments on our secured equipment credit facilities of approximately $282 million.
Net cash used in financing activities was $160 million during the Successor three-month transition period ended
March 31, 2014, which was primarily due to principal payments on our secured equipment credit facility of approximately