Sprint - Nextel 2014 Annual Report Download - page 68

Table of Contents
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Item 9A. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Disclosure controls are procedures that are designed with the objective of ensuring that information required to be
disclosed in our reports under the Securities Exchange Act of 1934, such as this annual report on Form 10-K, is reported in
accordance with the SEC's rules. Disclosure controls are also designed with the objective of ensuring that such information is
accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, to allow
timely decisions regarding required disclosure.
In connection with the preparation of this annual report on Form 10-K, under the supervision and with the
participation of our management, including our Chief Executive Officer and Chief Financial Officer, we carried out an
evaluation of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this
evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the design and operation of the disclosure
controls and procedures were effective as of March 31, 2015 in providing reasonable assurance that information required to
be disclosed in reports we file or submit under the Securities Exchange Act of 1934 is accumulated and communicated to
management, including the Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required
disclosure and in providing reasonable assurance that the information is recorded, processed, summarized, and reported
within the time periods specified in the SEC's rules and forms.
Internal controls over our financial reporting continue to be updated as necessary to accommodate modifications
to our business processes and accounting procedures. There have been no changes in our internal control over financial
reporting that occurred during the quarter ended March 31, 2015 that have materially affected, or are reasonably likely to
materially affect, our internal control over financial reporting.
Management's Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial
reporting. Our internal control system was designed to provide reasonable assurance to our management and board of
directors regarding the reliability of financial reporting and the preparation of financial statements for external purposes.
Our management conducted an assessment of the effectiveness of our internal control over financial reporting as
of March 31, 2015. This assessment was based on the criteria set forth by Internal Control—Integrated Framework, issued in
2013 by the Committee of Sponsoring Organizations. Management believes that, as of March 31, 2015, our internal control
over financial reporting was effective.
Our independent registered public accounting firm has issued a report on the effectiveness of our internal control
over financial reporting. This report appears on page F-2.
Item 9B. Other Information
Disclosure of Iranian Activities under Section 13(r) of the Securities Exchange Act of 1934
Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012 added Section 13(r) to the
Securities Exchange Act of 1934. Section 13(r) requires an issuer to disclose in its annual or quarterly reports, as applicable,
whether it or any of its affiliates knowingly engaged in certain activities, including, among other matters, transactions or
dealings relating to the government of Iran. Disclosure is required even where the activities, transactions or dealings are
conducted outside the U.S. by non-U.S. affiliates in compliance with applicable law, and whether or not the activities are
sanctionable under U.S. law.
After the SoftBank Merger, SoftBank acquired control of Sprint. During the fiscal year ended March 31, 2015,
SoftBank, through one of its non-U.S. subsidiaries, provided roaming services in Iran through Telecommunications Services
Company (MTN Irancell), which is or may be a government-controlled entity. During the fiscal year ended March 31, 2015,
SoftBank had no gross revenues and no net profit was generated. This subsidiary also provided telecommunications services
to a single account at the Embassy of Iran in Japan. During the fiscal year ended March 31, 2015, SoftBank estimates that
gross revenues and net profit generated by such services were under $4,000 and $1,000 respectively. Sprint was not involved
in, and did not receive any revenue from, any of these activities. These activities have been conducted in accordance with
applicable laws and regulations, and they are not sanctionable under U.S. or Japanese law. Accordingly, with respect to
Telecommunications Services Company (MTN Irancell), the relevant SoftBank subsidiary intends to continue such activity.
With respect to the single account at the Embassy of Iran in Japan, the relevant SoftBank subsidiary is obligated under
contract to continue such account.