Sprint - Nextel 2015 Annual Report Download - page 64

Table of Contents
1, 2017, including interim periods within that fiscal year. The Company does not expect the adoption of this guidance to have a material effect on our consolidated
financial statements.
In September 2015, the FASB issued authoritative guidance amending BusinessCombinations,which requires that an acquirer recognize adjustments to
provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, including the
cumulative effect of the change in provisional amount as if the accounting had been completed at the acquisition date. The adjustments related to previous
reporting periods since the acquisition date must be disclosed by income statement line item either on the face of the income statement or in the notes. The
amendments are to be applied prospectively to adjustments that occur after the effective date. The amendments will be effective for the Company for the fiscal year
beginning April 1, 2016, including interim periods within that fiscal year, although early adoption is permitted for financial statements that have not been issued,
and will be applied, as necessary, to future business combinations.
In January 2016, the FASB issued authoritative guidance regarding FinancialInstruments, which amended guidance on the classification and
measurement of financial instruments. Under the new guidance, entities will be required to measure equity investments that are not consolidated or accounted for
under the equity method at fair value with any changes in fair value recorded in net income, unless the entity has elected the new practicability exception. For
financial liabilities measured using the fair value option, entities will be required to separately present in other comprehensive income the portion of the changes in
fair value attributable to instrument-specific credit risk. Additionally, the guidance amends certain disclosure requirements associated with the fair value of
financial instruments. The standard will be effective for the Company’s fiscal year beginning April 1, 2018, including interim reporting periods within that fiscal
year. The Company is currently evaluating the guidance and assessing the impact it will have on our consolidated financial statements.
In February 2016, the FASB issued authoritative guidance regarding Leases.The new standard will supersede much of the existing authoritative
literature for leases. This guidance requires lessees, among other things, to recognize right-of-use assets and liabilities on their balance sheet for all leases with
lease terms longer than twelve months. The standard will be effective for the Company for its fiscal year beginning April 1, 2019, including interim periods within
that fiscal year with early application permitted. Entities are required to use modified retrospective application for leases that exist or are entered into after the
beginning of the earliest comparative period in the financial statements with the option to elect certain transition reliefs. The Company is currently evaluating the
guidance and we expect it to have a material impact on our consolidated financial statements, however we are still assessing the overall impact.
FINANCIAL STRATEGIES
General Risk Management Policies
Our board of directors has adopted a financial risk management policy that authorizes us to enter into derivative transactions, and all transactions
comply with the policy. We do not purchase or hold any derivative financial instruments for speculative purposes with the exception of equity rights obtained in
connection with commercial agreements or strategic investments, usually in the form of warrants to purchase common shares.
Derivative instruments are primarily used for hedging and risk management purposes. Hedging activities may be done for various purposes, including,
but not limited to, mitigating the risks associated with an asset, liability, committed transaction or probable forecasted transaction. We seek to minimize
counterparty credit risk through credit approval and review processes, credit support agreements, continual review and monitoring of all counterparties, and
thorough legal review of contracts. Exposure to market risk is controlled by regularly monitoring changes in hedge positions under normal and stress conditions to
ensure they do not exceed established limits.
OTHER INFORMATION
We routinely post important information on our website at www.sprint.com/investors. Information contained on or accessible through our website is
not part of this annual report.
FORWARD-LOOKING STATEMENTS
We include certain estimates, projections and other forward-looking statements in our annual, quarterly and current reports, and in other publicly
available material. Statements regarding expectations, including performance assumptions and estimates relating to capital requirements, as well as other
statements that are not historical facts, are forward-looking statements.
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