Sprint - Nextel 2014 Annual Report Download - page 60

Table of Contents
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We expect to execute on a number of initiatives to increase our subscriber base, including continuing to improve
the quality of our network. However, if those initiatives are not successful in attracting valuable subscribers, such as postpaid
handset (versus tablet) subscribers, in particular, depending on the severity of any difference in actual results versus what we
currently anticipate, it may make it difficult for us to generate sufficient EBITDA to remain in compliance with our covenants
or be able to meet our debt service obligations, which could result in acceleration of our indebtedness. If such unforeseen
events occur, we may engage with our lenders to obtain appropriate waivers or amendments of our credit facilities or
refinance borrowings, although there is no assurance we would be successful in any of these actions.
A default under certain of our borrowings could trigger defaults under certain of our our other debt obligations,
which in turn could result in the maturities being accelerated. Certain indentures and other agreements also require
compliance with various covenants, including covenants that limit the Company's ability to sell all or substantially all of its
assets, limit the Company and its subsidiaries' ability to incur indebtedness and liens, and require that we maintain certain
financial ratios, each as defined by the terms of the indentures, related supplemental indentures and other agreements.
FUTURE CONTRACTUAL OBLIGATIONS
The following table sets forth our current estimates as to the amounts and timing of contractual payments as of
March 31, 2015. Future events, including additional issuances of our debt securities and refinancing of those debt securities,
could cause actual payments to differ significantly from these amounts. See "Item 1A. Risk Factors."
Future Contractual Obligations Total Fiscal Year 2015 Fiscal Year 2016 Fiscal Year 2017 Fiscal Year 2018 Fiscal Year 2019 Fiscal Year 2020 and thereafter
(in millions)
Notes, credit facilities and debentures(1) $ 50,410 $ 3,664 $ 5,974 $ 3,400 $ 5,026 $ 4,714 $ 27,632
Capital leases and financing obligation(2) 486 116 87 73 58 56 96
Operating leases(3) 15,381 2,122 2,078 2,015 1,964 1,857 5,345
Spectrum leases and service credits(4) 6,725 194 204 212 214 218 5,683
Purchase orders and other commitments(5) 15,004 8,861 2,614 1,147 914 460 1,008
Total $ 88,006 $ 14,957 $ 10,957 $ 6,847 $ 8,176 $ 7,305 $ 39,764
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(1) Includes outstanding principal and estimated interest payments. Interest payments are based on management's expectations for future interest rates in
the case of any variable rate debt.
(2) Represents capital lease payments including interest and financing obligation related to the sale and subsequent leaseback of multiple tower sites.
(3) Includes future lease payments related to cell and switch sites, real estate, network equipment and office space.
(4) Includes future spectrum lease payments as well as service credits related to commitments to provide services to certain lessors and reimburse lessors
for certain capital equipment and third-party service expenditures, over the term of the lease.
(5) Includes service, spectrum, network equipment, devices, asset retirement obligations and other executory contracts, including our contract with Apple.
Excludes blanket purchase orders in the amount of $27 million. See below for further discussion.
"Purchase orders and other commitments" include minimum purchases we commit to purchase from suppliers
over time and/or the unconditional purchase obligations where we guarantee to make a minimum payment to suppliers for
goods and services regardless of whether we take delivery. These amounts do not represent our entire anticipated purchases in
the future, but generally represent only our estimate of those items for which we are committed. Our estimates are based on
assumptions about the variable components of the contracts such as hours contracted, number of subscribers, pricing, and
other factors. In addition, we are party to various arrangements that are conditional in nature and create an obligation to make
payments only upon the occurrence of certain events, such as the delivery of functioning software or products. Because it is
not possible to predict the timing or amounts that may be due under these conditional arrangements, no such amounts have
been included in the table above. The table above also excludes approximately $27 million of blanket purchase order amounts
since their agreement terms are not specified. No time frame is set for these purchase orders and they are not legally binding.
As a result, they are not firm commitments. Our liability for uncertain tax positions was $163 million as of March 31, 2015.
Due to the inherent uncertainty of the timing of the resolution of the underlying tax positions, it is not practicable to assign
this liability to any particular year(s) in the table.
The table above does not include the $500 million of funding received in March 2015 from the sale of receivables
under our Receivables Facility, of which payments were subsequently remitted in April 2015 to reduce the funded amount to
$0. In addition, the table above does not include remaining costs to be paid in connection with the fulfillment of our
obligations under the Report and Order. The Report and Order requires us to make a payment to the U.S. Treasury at the
conclusion of the band reconfiguration process to the extent that the value of the 1.9 GHz spectrum we received exceeds the
total of the value of licenses for spectrum in the 700 MHz and 800 MHz bands that we surrendered under the decision plus