Sprint - Nextel 2015 Annual Report Download - page 60

Table of Contents
FUTURE CONTRACTUAL OBLIGATIONS
The following table sets forth our current estimates as to the amounts and timing of contractual payments as of March 31, 2016 . 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 2016
Fiscal Year 2017
Fiscal Year
2018
Fiscal Year
2019
Fiscal Year
2020
Fiscal Year
2021 and thereafter
(in millions)
Notes, credit facilities and debentures (1)
$ 47,998
$ 6,577
$ 3,769
$ 5,133
$ 3,799
$ 2,547
$ 26,173
Capital leases and financing obligation (2)
1,210
551
424
86
56
13
80
Operating leases (3)
14,078
2,195
2,148
2,072
1,958
1,820
3,885
Spectrum leases and service credits (4)
6,707
212
219
221
224
226
5,605
Handset sale-leaseback tranche 1
651
580
71
—
—
—
—
Purchase orders and other commitments (5)
11,224
7,192
1,428
951
499
354
800
Total
$ 81,868
$ 17,307
$ 8,059
$ 8,463
$ 6,536
$ 4,960
$ 36,543
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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$24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 $24 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 $166 million as of March 31, 2016 . 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 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
the actual costs, or qualifying costs, that we incur to retune incumbents and our own facilities. From the inception of the program through March 31, 2016 , we
have incurred approximately $3.5 billion of costs directly attributable to the spectrum reconfiguration program. This amount does not include any of our internal
network costs that we have preliminarily allocated to the reconfiguration program for capacity sites and modifications for which we may request credit under the
reconfiguration program. We estimate, based on our experience to date with the reconfiguration program and on information currently available, that our total
direct costs attributable to complete the spectrum reconfigurations will range between $3.6 and $3.7 billion. Accordingly, we believe that it is unlikely that we will
be required to make a payment to the U.S. Treasury.
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