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Guarantor Financial Information
3 Months Ended
Mar. 31, 2014
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Financial Statements [Text Block]
Note 19.
Guarantor Financial Information
On September 11, 2013, Sprint Corporation issued $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 in a private placement transaction with registration rights. On December 12, 2013, Sprint Corporation issued $2.5 billion aggregate principal amount of 7.125% notes due 2024 in a private placement transaction with registration rights. Each of these issuances are fully and unconditionally guaranteed by Sprint Communications, Inc. (Subsidiary Guarantor), which is a 100 percent owned subsidiary of Sprint Corporation (Parent/Issuer). In connection with the foregoing, the Company has entered into registration rights agreements with respect to the notes, each of which requires the Company and Sprint Communications, Inc. to use their reasonable best efforts to cause an offer to exchange the notes for a new issue of substantially identical exchange notes registered under the Securities Act of 1933 to be completed within 540 days after the closing date of the respective offerings. Under the Subsidiary Guarantor's revolving bank credit facility and other bank agreements, the Subsidiary Guarantor is currently restricted from paying cash dividends to the Parent/Issuer or any Non-Guarantor Subsidiary because the ratio of total indebtedness to adjusted EBITDA (each as defined in the applicable agreement) exceeds 2.5 to 1.0.
The guarantor financial information distinguishes between the Predecessor period relating to Sprint Communications for periods prior to the SoftBank Merger and the Successor period relating to Sprint Corporation (formerly Starburst II), for periods subsequent to the incorporation of Starburst II on October 5, 2012. The periods presented below do not include condensed consolidating financial statements for the Successor period as of December 31, 2012 or for the three months ended March 31, 2013 or 87 days ended December 31, 2012 because prior to the SoftBank Merger the financial information is already disclosed on the face of the consolidated financial statements. Additionally, as the Parent/Issuer column represents the activities of Sprint Corporation (formerly Starburst II). Also, no Parent/Issuer financial information exists for the Predecessor periods which are prior to the SoftBank Merger. We have accounted for investments in subsidiaries using the equity method. Presented below is the condensed consolidating financial information as of the Successor period ended March 31, 2014 and the Successor year ended December 31, 2013 and Predecessor year ended December 31, 2012, and for the Successor three-month transition period ended March 31, 2014 and year ended December 31, 2013, as well as for the Predecessor 191-day period ended July 10, 2013, unaudited three-month period ended March 31, 2013, and the years ended December 31, 2012 and 2011.
CONDENSED CONSOLIDATING BALANCE SHEET
Successor
 
As of March 31, 2014
 
Parent/Issuer
 
Subsidiary Guarantor
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
 
(in millions)
ASSETS
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$
4,125

 
$
845

 
$

 
$
4,970

Short-term investments

 
1,220

 

 

 
1,220

Accounts and notes receivable, net
74

 
27

 
3,607

 
(101
)
 
3,607

Device and accessory inventory

 

 
982

 

 
982

Deferred tax assets

 

 
128

 

 
128

Prepaid expenses and other current assets

 
14

 
658

 

 
672

Total current assets
74

 
5,386

 
6,220

 
(101
)
 
11,579

Investments

 
1,104

 
61

 
(1,019
)
 
146

Investments in subsidiaries
25,316

 
25,588

 

 
(50,904
)
 

Property, plant and equipment, net

 

 
16,299

 

 
16,299

Due from consolidated affiliate

 
18,234

 

 
(18,234
)
 

Note receivable from consolidated affiliate
9,000

 

 

 
(9,000
)
 

Intangible assets
 
 
 
 
 
 
 
 
 
Goodwill

 

 
6,383

 

 
6,383

FCC licenses and other

 

 
41,978

 

 
41,978

Definite-lived intangible assets, net

 

 
7,558

 

 
7,558

Other assets
133

 
133

 
613

 
(133
)
 
746

Total assets
$
34,523

 
$
50,445

 
$
79,112

 
$
(79,391
)
 
$
84,689

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$

 
$

 
$
3,163

 
$

 
$
3,163

Accrued expenses and other current liabilities
78

 
493

 
5,074

 
(101
)
 
5,544

Current portion of long-term debt, financing and capital lease obligations

 

 
991

 

 
991

Total current liabilities
78

 
493

 
9,228

 
(101
)
 
9,698

Long-term debt, financing and capital lease obligations
9,000

 
15,027

 
8,779

 
(1,019
)
 
31,787

Deferred tax liabilities

 

 
14,207

 

 
14,207

Note payable due to consolidated affiliate

 
9,000

 

 
(9,000
)
 

Other liabilities

 
609

 
3,076

 

 
3,685

Due to consolidated affiliate
133

 

 
18,234

 
(18,367
)
 

Total liabilities
9,211

 
25,129

 
53,524

 
(28,487
)
 
59,377

Commitments and contingencies
 
 
 
 
 
 
 
 
 
Total stockholders' equity
25,312

 
25,316

 
25,588

 
(50,904
)
 
25,312

Total liabilities and stockholders' equity
$
34,523

 
$
50,445

 
$
79,112

 
$
(79,391
)
 
$
84,689

CONDENSED CONSOLIDATING BALANCE SHEET
Successor
 
As of December 31, 2013

Parent/Issuer

Subsidiary Guarantor

Non-Guarantor Subsidiaries

Eliminations

Consolidated

(in millions)
ASSETS
Current assets:




 



 
Cash and cash equivalents
$

 
$
5,665

 
$
699

 
$


$
6,364

Short-term investments

 
1,105

 

 


1,105

Accounts and notes receivable, net
160

 
7

 
3,569

 
(166
)

3,570

Device and accessory inventory

 

 
1,205

 


1,205

Deferred tax assets

 

 
186

 


186

Prepaid expenses and other current assets

 
19

 
609

 


628

Total current assets
160


6,796


6,268


(166
)

13,058

Investments

 
1,102

 
60

 
(1,019
)

143

Investments in subsidiaries
25,593

 
25,536

 

 
(51,129
)
 

Property, plant and equipment, net

 

 
16,164

 


16,164

Due from consolidated affiliate

 
17,110

 

 
(17,110
)


Note receivable from consolidated affiliate
9,000

 

 

 
(9,000
)
 

Intangible assets
 
 
 
 
 
 
 


Goodwill

 

 
6,434

 


6,434

FCC licenses and other

 

 
41,824

 


41,824

Definite-lived intangible assets, net

 

 
8,014

 


8,014

Other assets
135

 
135

 
323

 
(135
)

458

Total assets
$
34,888


$
50,679


$
79,087


$
(78,559
)

$
86,095

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:




 



 
Accounts payable
$

 
$

 
$
3,312

 
$

 
$
3,312

Accrued expenses and other current liabilities
162

 
515

 
5,852

 
(166
)
 
6,363

Current portion of long-term debt, financing and capital lease obligations

 

 
994

 

 
994

Total current liabilities
162


515


10,158


(166
)
 
10,669

Long-term debt, financing and capital lease obligations
9,000

 
15,088

 
8,948

 
(1,019
)
 
32,017

Deferred tax liabilities

 

 
14,227

 

 
14,227

Note payable due to consolidated affiliate

 
9,000

 

 
(9,000
)
 

Other liabilities

 
483

 
3,115

 

 
3,598

Due to consolidated affiliate
142

 

 
17,103

 
(17,245
)
 

Total liabilities
9,304


25,086


53,551


(27,430
)
 
60,511

Commitments and contingencies
 
 
 
 
 
 
 
 
 
Total stockholders' equity
25,584

 
25,593

 
25,536

 
(51,129
)
 
25,584

Total liabilities and stockholders' equity
$
34,888


$
50,679


$
79,087


$
(78,559
)
 
$
86,095

CONDENSED CONSOLIDATING BALANCE SHEET
Predecessor
 
As of December 31, 2012
 
Subsidiary Guarantor
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
 
(in millions)
ASSETS
Current assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
5,218

 
$
1,133

 
$

 
$
6,351

Short-term investments
1,849

 

 

 
1,849

Accounts and notes receivable, net
9

 
3,656

 
(7
)
 
3,658

Device and accessory inventory

 
1,200

 

 
1,200

Deferred tax assets

 
1

 

 
1

Prepaid expenses and other current assets
16

 
684

 

 
700

Total current assets
7,092


6,674


(7
)

13,759

Investments
1,276

 
796

 
(1,019
)
 
1,053

Investments in subsidiaries
5,294

 

 
(5,294
)
 

Property, plant and equipment, net

 
13,607

 
 
 
13,607

Due from consolidated affiliate
11,133

 

 
(11,133
)
 

Intangible assets
 
 
 
 
 
 
 
Goodwill

 
359

 

 
359

FCC licenses and other

 
20,677

 

 
20,677

Definite-lived intangible assets, net

 
1,335

 

 
1,335

Other assets
221

 
559

 

 
780

Total assets
$
25,016


$
44,007


$
(17,453
)

$
51,570

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 
 
 
 
 
 
 
Accounts payable
$

 
$
3,487

 
$

 
$
3,487

Accrued expenses and other current liabilities
251

 
4,764

 
(7
)
 
5,008

Current portion of long-term debt, financing and capital lease obligations

 
379

 

 
379

Total current liabilities
251


8,630


(7
)

8,874

Long-term debt, financing and capital lease obligations
16,617

 
8,364

 
(1,019
)
 
23,962

Deferred tax liabilities

 
7,047

 

 
7,047

Other liabilities
1,061

 
3,539

 

 
4,600

Due to consolidated affiliate

 
11,133

 
(11,133
)
 

Total liabilities
17,929


38,713


(12,159
)

44,483

Commitments and contingencies
 
 
 
 
 
 
 
Total stockholders' equity
7,087

 
5,294

 
(5,294
)
 
7,087

Total liabilities and stockholders' equity
$
25,016


$
44,007


$
(17,453
)

$
51,570


CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS
Successor
 
For the Three Months Ended March 31, 2014
 
Parent/Issuer
 
Subsidiary Guarantor
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
 
(in millions)
Net operating revenues
$

 
$

 
$
8,875

 
$

 
$
8,875

Net operating expenses:
 
 
 
 
 
 
 
 
 
Cost of services and products (exclusive of depreciation and amortization included below)

 

 
4,660

 

 
4,660

Selling, general and administrative

 

 
2,371

 

 
2,371

Severance, exit costs and asset impairments

 

 
127

 

 
127

Depreciation

 

 
868

 

 
868

Amortization

 

 
429

 

 
429

 




8,455




8,455

Operating (loss) income




420




420

Other (expense) income:
 
 
 
 
 
 
 
 
 
Interest income
169

 
20

 
4

 
(189
)
 
4

Interest expense
(166
)
 
(373
)
 
(166
)
 
189

 
(516
)
(Losses) earnings of subsidiaries
(154
)
 
199

 

 
(45
)
 

Other expense, net

 

 
(3
)
 

 
(3
)
 
(151
)

(154
)

(165
)
 
(45
)
 
(515
)
(Loss) income before income taxes
(151
)

(154
)

255

 
(45
)
 
(95
)
Income tax expense

 

 
(56
)
 

 
(56
)
Net (loss) income
(151
)

(154
)
 
199


(45
)
 
(151
)
 
 
 
 
 
 
 
 
 
 
Other comprehensive loss
(145
)
 
(145
)
 
(147
)
 
292

 
(145
)
Comprehensive (loss) income
$
(296
)
 
$
(299
)
 
$
52

 
$
247

 
$
(296
)
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS
Successor
 
For the Year ended December 31, 2013
 
Parent/Issuer
 
Subsidiary Guarantor
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
 
(in millions)
Net operating revenues
$

 
$

 
$
16,891

 
$

 
$
16,891

Net operating expenses:
 
 
 
 
 
 
 
 
 
Cost of services and products (exclusive of depreciation and amortization included below)

 

 
9,777

 

 
9,777

Selling, general and administrative
36

 

 
4,805

 

 
4,841

Severance, exit costs and asset impairments

 

 
309

 

 
309

Depreciation

 

 
2,026

 

 
2,026

Amortization

 

 
908

 

 
908

 
36

 

 
17,825

 

 
17,861

Operating loss
(36
)
 

 
(934
)
 

 
(970
)
Other (expense) income:
 
 
 
 
 
 
 
 
 
Interest income
189

 
40

 
6

 
(200
)
 
35

Interest expense
(163
)
 
(548
)
 
(407
)
 
200

 
(918
)
(Losses) earnings of subsidiaries
(1,831
)
 
(1,320
)
 

 
3,151

 

Other (expense) income, net
(15
)
 
(3
)
 
56

 

 
38

 
(1,820
)

(1,831
)

(345
)

3,151


(845
)
(Loss) income before income taxes
(1,856
)

(1,831
)

(1,279
)

3,151


(1,815
)
Income tax expense
(4
)
 

 
(41
)
 

 
(45
)
Net (loss) income
(1,860
)

(1,831
)

(1,320
)

3,151


(1,860
)
 
 
 
 
 
 
 
 
 
 
Other comprehensive income
102

 
102

 
93

 
(195
)
 
102

Comprehensive (loss) income
$
(1,758
)
 
$
(1,729
)
 
$
(1,227
)
 
$
2,956

 
$
(1,758
)
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS
Predecessor
 
For the 191 Days Ended July 10, 2013
 
Subsidiary Guarantor
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
 
(in millions)
Net operating revenues
$

 
$
18,602

 
$

 
$
18,602

Net operating expenses:
 
 
 
 
 
 
 
Cost of services and products (exclusive of depreciation and amortization included below)

 
10,545

 

 
10,545

Selling, general and administrative

 
5,067

 

 
5,067

Severance, exit costs and asset impairments

 
652

 

 
652

Depreciation

 
3,098

 

 
3,098

Amortization

 
147

 

 
147

Other, net

 
(22
)
 

 
(22
)
 

 
19,487

 

 
19,487

Operating loss

 
(885
)
 

 
(885
)
Other (expense) income:
 
 
 
 
 
 
 
Interest income
61

 
15

 
(43
)
 
33

Interest expense
(842
)
 
(336
)
 
43

 
(1,135
)
Equity in losses of unconsolidated investments, net

 
(482
)
 

 
(482
)
Gain on previously-held equity interests

 
2,926

 

 
2,926

(Losses) earnings of subsidiaries
(365
)
 

 
365

 

Other expense, net
(12
)
 
(2
)
 

 
(14
)
 
(1,158
)
 
2,121

 
365

 
1,328

(Loss) income before income taxes
(1,158
)
 
1,236

 
365

 
443

Income tax expense

 
(1,601
)
 

 
(1,601
)
Net (loss) income
(1,158
)
 
(365
)
 
365

 
(1,158
)
 
 
 
 
 
 
 
 
Other comprehensive income
23

 
35

 
(35
)
 
23

Comprehensive (loss) income
$
(1,135
)
 
$
(330
)
 
$
330

 
$
(1,135
)
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS
Predecessor
 
For the Three Months Ended March 31, 2013 (Unaudited)
 
Subsidiary Guarantor
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
 
(in millions)
Net operating revenues
$

 
$
8,793

 
$

 
$
8,793

Net operating expenses:
 
 
 
 
 
 
 
Cost of services and products (exclusive of depreciation and amortization included below)

 
4,933

 

 
4,933

Selling, general and administrative

 
2,336

 

 
2,336

Severance, exit costs and asset impairments

 
25

 

 
25

Depreciation

 
1,422

 

 
1,422

Amortization

 
70

 

 
70

Other, net

 
(22
)
 

 
(22
)
 

 
8,764

 

 
8,764

Operating (loss) income

 
29

 

 
29

Other (expense) income:
 
 
 
 
 
 
 
Interest income
29

 
6

 
(21
)
 
14

Interest expense
(292
)
 
(161
)
 
21

 
(432
)
Equity in losses of unconsolidated investments, net

 
(202
)
 

 
(202
)
(Losses) earnings of subsidiaries
(368
)
 

 
368

 

Other expense, net
(12
)
 
(2
)
 

 
(14
)
 
(643
)
 
(359
)
 
368

 
(634
)
(Loss) income before income taxes
(643
)
 
(330
)
 
368

 
(605
)
Income tax expense

 
(38
)
 

 
(38
)
Net (loss) income
(643
)
 
(368
)
 
368

 
(643
)
 
 
 
 
 
 
 
 
Other comprehensive income
14

 
15

 
(15
)
 
14

Comprehensive (loss) income
$
(629
)
 
$
(353
)
 
$
353

 
$
(629
)
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS
Predecessor
 
For the Year Ended December 31, 2012
 
Subsidiary Guarantor
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
 
(in millions)
Net operating revenues
$

 
$
35,345

 
$

 
$
35,345

Net operating expenses:
 
 
 
 
 
 
 
Cost of services and products (exclusive of depreciation and amortization included below)

 
20,841

 

 
20,841

Selling, general and administrative

 
9,765

 

 
9,765

Severance, exit costs and asset impairments

 
298

 

 
298

Depreciation

 
6,240

 

 
6,240

Amortization

 
303

 

 
303

Other, net

 
(282
)
 

 
(282
)
 

 
37,165

 

 
37,165

Operating loss

 
(1,820
)
 

 
(1,820
)
Other (expense) income:
 
 
 
 
 
 
 
Interest income
112

 
34

 
(81
)
 
65

Interest expense
(907
)
 
(602
)
 
81

 
(1,428
)
Equity in losses of unconsolidated investments, net

 
(1,114
)
 

 
(1,114
)
(Losses) earnings of subsidiaries
(3,530
)
 

 
3,530

 

Other (expense) income, net
(1
)
 
126

 

 
125

 
(4,326
)
 
(1,556
)
 
3,530

 
(2,352
)
(Loss) income before income taxes
(4,326
)
 
(3,376
)
 
3,530

 
(4,172
)
Income tax expense

 
(154
)
 

 
(154
)
Net (loss) income
(4,326
)
 
(3,530
)
 
3,530

 
(4,326
)
 
 
 
 
 
 
 
 
Other comprehensive loss
(341
)
 
(339
)
 
339

 
(341
)
Comprehensive (loss) income
$
(4,667
)
 
$
(3,869
)
 
$
3,869

 
$
(4,667
)
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS
Predecessor
 
For the Year Ended December 31, 2011
 
Subsidiary Guarantor
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
 
(in millions)
Net operating revenues
$

 
$
33,679

 
$

 
$
33,679

Net operating expenses:
 
 
 
 
 
 
 
Cost of services and products (exclusive of depreciation and amortization included below)

 
19,015

 

 
19,015

Selling, general and administrative

 
9,592

 

 
9,592

Severance, exit costs and asset impairments

 
106

 

 
106

Depreciation

 
4,455

 

 
4,455

Amortization

 
403

 

 
403

Other, net

 

 

 

 

 
33,571

 

 
33,571

Operating (loss) income

 
108

 

 
108

Other (expense) income:
 
 
 
 
 
 
 
Interest income
125

 
5

 
(94
)
 
36

Interest expense
(370
)
 
(735
)
 
94

 
(1,011
)
Equity in losses of unconsolidated investments, net

 
(1,730
)
 

 
(1,730
)
(Losses) earnings of subsidiaries
(2,645
)
 

 
2,645

 

Other expense, net

 
(39
)
 

 
(39
)
 
(2,890
)
 
(2,499
)
 
2,645

 
(2,744
)
(Loss) income before income taxes
(2,890
)
 
(2,391
)
 
2,645

 
(2,636
)
Income tax expense

 
(254
)
 

 
(254
)
Net (loss) income
(2,890
)
 
(2,645
)
 
2,645

 
(2,890
)
 
 
 
 
 
 
 
 
Other comprehensive loss
(290
)
 
(294
)
 
294

 
(290
)
Comprehensive (loss) income
$
(3,180
)
 
$
(2,939
)
 
$
2,939

 
$
(3,180
)

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Successor
 
For the Three Months Ended March 31, 2014
 
Parent/Issuer
 
Subsidiary Guarantor
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
 
(in millions)
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net cash (used in) provided by operating activities
$

 
$
(483
)
 
$
1,005

 
$

 
$
522

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures

 

 
(1,488
)
 

 
(1,488
)
Expenditures relating to FCC licenses

 

 
(152
)
 

 
(152
)
Proceeds from sales and maturities of short-term investments

 
920

 

 

 
920

Purchases of short-term investments

 
(1,035
)
 

 

 
(1,035
)
Change in amounts due from/due to consolidated affiliates

 
(941
)
 

 
941

 

Other, net

 

 
(1
)
 

 
(1
)
Net cash(used in) provided by investing activities


(1,056
)

(1,641
)

941


(1,756
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Repayments of debt and capital lease obligations

 

 
(159
)
 

 
(159
)
Debt financing costs

 
(1
)
 

 

 
(1
)
Change in amounts due from/due to consolidated affiliates

 

 
941

 
(941
)
 

Net cash (used in) provided by financing activities

 
(1
)
 
782

 
(941
)
 
(160
)
Net (decrease) increase in cash and cash equivalents

 
(1,540
)
 
146

 

 
(1,394
)
Cash and cash equivalents, beginning of period

 
5,665

 
699

 

 
6,364

Cash and cash equivalents, end of period
$

 
$
4,125

 
$
845

 
$

 
$
4,970


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Successor
 
For the Year Ended December 31, 2013
 
Parent/Issuer
 
Subsidiary Guarantor
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
 
(in millions)
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net cash provided by (used in) operating activities
$
9

 
$
(458
)
 
$
388

 
$

 
$
(61
)
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures

 

 
(3,847
)
 

 
(3,847
)
Expenditures relating to FCC licenses

 

 
(146
)
 

 
(146
)
Acquisitions, net of cash acquired
(16,640
)
 
2,528

 

 

 
(14,112
)
Proceeds from sales and maturities of short-term investments

 
1,715

 

 

 
1,715

Purchases of short-term investments

 
(1,719
)
 

 

 
(1,719
)
Change in amounts due from/due to consolidated affiliates

 
(7,189
)
 

 
7,189

 

Investment in consolidated affiliate
(1,900
)
 

 

 
1,900

 

Intercompany note advance to consolidated affiliate
(8,861
)
 

 

 
8,861

 

Other, net

 

 
1

 

 
1

Net cash (used in) provided by investing activities
(27,401
)
 
(4,665
)
 
(3,992
)
 
17,950

 
(18,108
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt and financings
9,000

 

 
500

 

 
9,500

Repayments of debt and capital lease obligations

 

 
(3,378
)
 

 
(3,378
)
Debt financing costs
(139
)
 

 
(8
)
 

 
(147
)
Proceeds from issuance of common stock and warrants, net
18,540

 
27

 

 

 
18,567

Change in amounts due from/due to consolidated affiliates

 

 
7,189

 
(7,189
)
 

Intercompany note advance from parent

 
8,861

 

 
(8,861
)
 

Equity contribution from parent

 
1,900

 

 
(1,900
)
 

Other, net
(14
)
 

 

 

 
(14
)
Net cash provided by (used in) financing activities
27,387

 
10,788

 
4,303

 
(17,950
)
 
24,528

Net (decrease) increase in cash and cash equivalents
(5
)
 
5,665

 
699

 

 
6,359

Cash and cash equivalents, beginning of period
5

 

 

 

 
5

Cash and cash equivalents, end of period
$

 
$
5,665

 
$
699

 
$

 
$
6,364

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Predecessor
 
For the 191 Days Ended July 10, 2013
 
Subsidiary Guarantor
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
 
(in millions)
Cash flows from operating activities:
 
 
 
 
 
 
 
Net cash (used in) provided by operating activities
$
(559
)
 
$
3,230

 
$

 
$
2,671

Cash flows from investing activities:
 
 
 
 
 
 
 
Capital expenditures

 
(3,140
)
 

 
(3,140
)
Expenditures relating to FCC licenses

 
(125
)
 

 
(125
)
Acquisitions, net of cash acquired
(4,039
)
 

 

 
(4,039
)
Investment in Clearwire (including debt securities)

 
(308
)
 

 
(308
)
Proceeds from sales and maturities of short-term investments
2,445

 

 

 
2,445

Purchases of short-term investments
(1,221
)
 

 

 
(1,221
)
Change in amounts due from/due to consolidated affiliates
(372
)
 

 
372

 

Other, net

 
3

 

 
3

Net cash (used in) provided by investing activities
(3,187
)
 
(3,570
)
 
372

 
(6,385
)
Cash flows from financing activities:
 
 
 
 
 
 
 
Proceeds from debt and financings

 
204

 

 
204

Repayments of debt and capital lease obligations

 
(362
)
 

 
(362
)
Debt financing costs
(11
)
 

 

 
(11
)
Proceeds from issuance of common stock and warrants, net
60

 

 

 
60

Change in amounts due from/due to consolidated affiliates

 
372

 
(372
)
 

Net cash provided by (used in) financing activities
49

 
214

 
(372
)
 
(109
)
Net decrease in cash and cash equivalents
(3,697
)
 
(126
)
 

 
(3,823
)
Cash and cash equivalents, beginning of period
5,218

 
1,133

 

 
6,351

Cash and cash equivalents, end of period
$
1,521

 
$
1,007

 
$

 
$
2,528

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Predecessor
 
For the Three Months Ended March 31, 2013 (Unaudited)
 
Subsidiary Guarantor
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
 
(in millions)
Cash flows from operating activities:
 
 
 
 
 
 
 
Net cash (used in) provided by operating activities
$
(210
)
 
$
1,150

 
$

 
$
940

Cash flows from investing activities:
 
 
 
 
 
 
 
Capital expenditures

 
(1,381
)
 

 
(1,381
)
Expenditures relating to FCC licenses

 
(55
)
 

 
(55
)
Investment in Clearwire (including debt securities)

 
(80
)
 

 
(80
)
Proceeds from sales and maturities of short-term investments
1,281

 

 

 
1,281

Purchases of short-term investments
(926
)
 

 

 
(926
)
Change in amounts due from/due to consolidated affiliates
(236
)
 

 
236

 

Other, net

 
3

 

 
3

Net cash used in investing activities
119

 
(1,513
)
 
236

 
(1,158
)
Cash flows from financing activities:
 
 
 
 
 
 
 
Proceeds from debt and financings

 
204

 

 
204

Repayments of debt and capital lease obligations

 
(59
)
 

 
(59
)
Debt financing costs
(10
)
 

 

 
(10
)
Proceeds from issuance of common stock and warrants, net
7

 

 

 
7

Change in amounts due from/due to consolidated affiliates

 
236

 
(236
)
 

Net cash provided by (used in) financing activities
(3
)
 
381

 
(236
)
 
142

Net increase (decrease) in cash and cash equivalents
(94
)
 
18

 

 
(76
)
Cash and cash equivalents, beginning of period
5,218

 
1,133

 

 
6,351

Cash and cash equivalents, end of period
$
5,124

 
$
1,151

 
$

 
$
6,275

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Predecessor
 
For the Year Ended December 31, 2012
 
Subsidiary Guarantor
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
 
(in millions)
Cash flows from operating activities:
 
 
 
 
 
 
 
Net cash (used in) provided by operating activities
$
(728
)
 
$
3,727

 
$

 
$
2,999

Cash flows from investing activities:
 
 
 
 
 
 
 
Capital expenditures

 
(4,261
)
 

 
(4,261
)
Expenditures relating to FCC licenses

 
(198
)
 

 
(198
)
Investment in Clearwire (including debt securities)

 
(228
)
 

 
(228
)
Proceeds from sales and maturities of short-term investments
1,513

 

 

 
1,513

Purchases of short-term investments
(3,212
)
 

 

 
(3,212
)
Change in amounts due from/due to consolidated affiliates
(5,610
)
 

 
5,610

 

Other, net

 
11

 

 
11

Net cash (used in) provided by investing activities
(7,309
)
 
(4,676
)
 
5,610

 
(6,375
)
Cash flows from financing activities:
 
 
 
 
 
 
 
Proceeds from debt and financings
8,880

 
296

 

 
9,176

Repayments of debt and capital lease obligations

 
(4,791
)
 

 
(4,791
)
Debt financing costs
(105
)
 
(29
)
 

 
(134
)
Proceeds from issuance of common stock and warrants, net
29

 

 

 
29

Change in amounts due from/due to consolidated affiliates

 
5,610

 
(5,610
)
 

Net cash provided by (used in) financing activities
8,804

 
1,086

 
(5,610
)
 
4,280

Net increase (decrease) in cash and cash equivalents
767

 
137

 

 
904

Cash and cash equivalents, beginning of period
4,451

 
996

 

 
5,447

Cash and cash equivalents, end of period
$
5,218

 
$
1,133

 
$

 
$
6,351

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Predecessor
 
For the Year Ended December 31, 2011
 
Subsidiary Guarantor
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
 
(in millions)
Cash flows from operating activities:
 
 
 
 
 
 
 
Net cash (used in) provided by operating activities
$
(319
)
 
$
4,010

 
$

 
$
3,691

Cash flows from investing activities:
 
 
 
 
 
 
 
Capital expenditures

 
(3,130
)
 

 
(3,130
)
Expenditures relating to FCC licenses

 
(258
)
 

 
(258
)
Reimbursements relating to FCC licenses

 
135

 

 
135

Investment in Clearwire (including debt securities)

 
(331
)
 

 
(331
)
Proceeds from sales and maturities of short-term investments
980

 

 

 
980

Purchases of short-term investments
(830
)
 

 

 
(830
)
Change in amounts due from/due to consolidated affiliates
(3,429
)
 

 
3,429

 

Other, net

 
(9
)
 

 
(9
)
Net cash used in investing activities
(3,279
)
 
(3,593
)
 
3,429

 
(3,443
)
Cash flows from financing activities:
 
 
 
 
 
 
 
Proceeds from debt and financings
4,000

 

 

 
4,000

Repayments of debt and capital lease obligations
(250
)
 
(3,656
)
 

 
(3,906
)
Debt financing costs
(86
)
 

 

 
(86
)
Proceeds from issuance of common stock and warrants, net
18

 

 

 
18

Change in amounts due from/due to consolidated affiliates

 
3,429

 
(3,429
)
 

Net cash provided by (used in) financing activities
3,682

 
(227
)

(3,429
)

26

Net increase (decrease) in cash and cash equivalents
84

 
190




274

Cash and cash equivalents, beginning of period
4,367

 
806

 

 
5,173

Cash and cash equivalents, end of period
$
4,451

 
$
996


$


$
5,447