Sprint - Nextel 2015 Annual Report Download - page 118

Table of Contents
Index to Consolidated Financial Statements
SPRINT CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Future Maturities of Long-Term Debt, Financing and Capital Lease Obligations
Aggregate amount of maturities for long-term debt, financing and capital lease obligations outstanding as of March 31, 2016 , were as follows (in
millions):
Fiscal year 2016 $ 4,615
Fiscal year 2017 2,065
Fiscal year 2018 3,201
Fiscal year 2019 3,177
Fiscal year 2020 1,625
Fiscal year 2021 and thereafter 18,678
33,361
Net premiums and debt financing costs 597
$ 33,958
Note 10. Severance and Exit Costs
Severance and exit costs consist of lease exit costs primarily associated with tower and cell sites, access exit costs 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, and severance costs associated with reductions in
our work force.
The following provides the activity in the severance and exit costs liability included in "Accounts payable," "Accrued expenses and other current
liabilities" and "Other liabilities" within the consolidated balance sheets:
March 31,
2015
Net
Expense
Cash Payments
and Other
March 31,
2016
(in millions)
Lease exit costs $ 291
$ 156 (1)
$ (109)
$ 338
Severance costs 119
216 (2)
(185)
150
Access exit costs 44
19 (3)
(26)
37
$ 454
$ 391
$ (320)
$ 525
_________________
(1) Werecognizedcostsof$176million(Wirelessonly)fortheSuccessoryearendedMarch31,2016,whichwereoffsetby$20millionofincome(Wirelessonly)resultingfromarevisionto
ourestimateofapreviouslyrecordedreserve.
(2) FortheSuccessoryearendedMarch31,2016,werecognizedcostsof$216million($191millionWireless,$25millionWireline).
(3) FortheSuccessoryearendedMarch31,2016,$2million(solelyattributabletoWireline)wasrecognizedas"Costofservices"and$17million(solelyattributabletoWireless)was
recognizedas"Severanceandexitcosts."
March 31,
2014
Net
Expense
Cash Payments
and Other
March 31,
2015
(in millions)
Lease exit costs $ 650
$ (28) (4)
$ (331)
$ 291
Severance costs 197
253 (5)
(331)
119
Access exit costs 124
38 (6)
(118)
44
$ 971
$ 263
$ (780)
$ 454
_________________
(4) Werecognizedcostsof$13million($12millionWirelessand$1millionWireline)fortheyearendedMarch31,2015,whichwereoffsetby$41millionofincome(Wirelessonly)resulting
fromarevisiontoourestimateofapreviouslyrecordedreserve.
(5) FortheSuccessoryearendedMarch31,2015,werecognizedcostsof$253million($218millionWireless,$35millionWireline).
(6) FortheSuccessoryearendedMarch31,2015,werecognizedcostsof$38million($33millionWireless,$5millionWireline).
We continually refine our network strategy and evaluate other potential network initiatives to improve the overall performance of our network.
Additionally, we have commenced a major cost cutting initiative, which may include headcount reductions, among other actions, to reduce operating expenses and
improve our operating cash flows. As a result of these ongoing activities, we may incur future material charges associated with lease and access exit costs,
severance, asset impairments, and accelerated depreciation, among others.
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