Sprint - Nextel 2015 Annual Report Download - page 33

Table of Contents
recorded an impairment loss of $233 million to reduce the carrying value of Wireline’s property, plant and equipment to its estimated fair value, which is included
in "Impairments" in our consolidated statements of operations.
Other, net
The following table provides additional information regarding items included in "Other, net."
Successor
Combined
Successor
Predecessor
Year Ended
March 31,
Year Ended
March 31,
Three Months
Ended
March 31,
Year Ended
December 31,
Year Ended
December 31,
191 Days
Ended
July 10,
Three Months
Ended
March 31,
2016
2015
2014
2013
2013
2013
2013
(in millions)
Severance and exit costs $ (409)
$(304)
$(52)
$(961)
$(309)
$(652)
$(25)
Litigation (193)
(91)
—
—
—
—
—
Loss on disposal of property, plant and equipment (166)
—
(75)
—
—
—
—
Partial pension settlement —
(59)
—
—
—
—
—
Revision to estimate of a previously recorded reserve 20
41
—
—
—
—
—
Other —
—
—
(124)
(93)
(31)
22
Total expense $(748)
$(413)
$(127)
$(1,085)
$(402)
$(683)
$(3)
SuccessorYearEndedMarch31,2016
Other, net represented an expense of $748 million in the year ended March 31, 2016 . We recognized litigation expense of $193 million for ongoing
legal matters. In addition, we recognized severance and exit costs which included $216 million of severance primarily associated with reductions in our work force
and $195 million of lease and access exit costs primarily associated with tower and cell site leases and backhaul access contracts for which we will no longer be
receiving any economic benefit, of which $2 million was recognized as "Cost of services" in the consolidated statements of operations. We also recorded $166
million of loss on disposal of property, plant and equipment primarily related to cell site construction costs and other network costs that are no longer recoverable
as a result of changes in the Company's network plans. In addition, we revised our estimate of a previously recorded reserve, resulting in approximately $20
million of income.
SuccessorYearEndedMarch31,2015
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. In addition, we revised our estimate of a previously
recorded reserve, resulting in income of approximately $41 million.
SuccessorThree-MonthTransitionPeriodEndedMarch31,2014
Other, net reflected an expense of $127 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." During the three-month transition period ended March 31, 2014 , we recorded $75 million of loss on disposal of property, plant and equipment
primarily related to network equipment assets that were no longer necessary for management's strategic plans.
SuccessorYearEndedDecember31,2013
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
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