Sprint - Nextel 2015 Annual Report Download - page 52

Table of Contents
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.
Investing Activities
Net cash used in investing activities in the Successor year ended March 31, 2016 increased by approximately $1.0 billion compared to the same period
in 2015 , primarily due to increased purchases of $1.7 billion of leased devices from indirect dealers and decreased net proceeds from sales and maturities of short-
term investments of $2.7 billion. These increases were partially offset by $1.1 billion of proceeds from MLS under the Handset Sale-Leaseback Tranche 1
transaction, $1.8 billion in decreased purchases of short-term investments and decreased network and other capital expenditures of $742 million.
Net cash used in investing activities in the Successor year ended March 31, 2015 decreased by approximately $13.4 billion 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
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.
Financing Activities
Net cash provided by financing activities was $469 million during the Successor year ended March 31, 2016 , which was primarily due to sales of
future lease receivables through our receivables facility (see ReceivablesFacilitybelow) of $600 million and draws of $208 million, $266 million and $32 million
on our Finnvera plc (Finnvera), K-sure and Delcredere | Ducroire (D/D) secured equipment credit facilities, respectively and a $250 million draw on the Export
Development Canada (EDC) credit facility. These draws were partially offset by repayments related to our secured equipment credit facilities of $315 million,
capital lease repayments of $84 million, and a $500 million repayment of the EDC credit facility.
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 $127 million. Net cash provided by financing activities was $142 million
during the Predecessor three-month period ended March 31, 2013, which included net borrowings of approximately $149 million under our secured equipment
credit facility.
Net cash provided by financing activities was $24.5 billion during the Successor year ended December 31, 2013, which included proceeds from the
issuance of common stock and warrants of approximately $18.6 billion related to the SoftBank Merger. In addition, the Company issued $9.0 billion in debt
consisting of a September 11, 2013 issuance of $2.25 billion aggregate principal amount of 7.250% notes due 2021 and $4.25 billion aggregate principal amount of
7.875% notes due 2023, and a December 12, 2013 issuance of $2.5 billion aggregate principal amount of 7.125% notes due 2024, each guaranteed by Sprint
Communications. We also incurred approximately $147 million of debt issuance costs. These increases, along with net borrowings under our secured equipment
credit facility of approximately $444 million, were offset by the retirement of approximately $3.3 billion principal amount of Clearwire debt.
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