Subsequent Events Subsequent Events

6 Months Ended

Jun. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

In May 2016, Nextel Brazil entered into an amendment to a nationwide roaming voice and data services agreement with Telefonica Brazil S.A., or Telefonica, to reduce the usage rates for roaming traffic. Concurrently, Nextel Brazil entered into a 10-year radio access network, or RAN, sharing agreement with Telefonica under which Telefonica will permit Nextel Brazil to use its tower and equipment infrastructure to transmit telecommunications signals on Nextel Brazil's spectrum. These agreements require Nextel Brazil to meet certain minimum annual commitments over a five-year period totaling 800 million Brazilian reais, or approximately $246.2 million based on foreign currency exchange rates at the time, which replaced the remaining commitments under the original roaming agreement. Nextel Brazil is required to prepay 250 million Brazilian reais shortly after the agreements become effective with receipt of regulatory approvals, which occurred in early August 2016. We expect to allocate the aggregate minimum payments on a relative fair value basis to the services being received and recognize these payments as operating expenses on a ratable basis over a period of five years for the amended roaming agreement and eight years for the RAN sharing agreement. We are also evaluating other potential accounting implications that may result from Nextel Brazil's entry into these agreements. In order to reduce future operating expenses, we expect to cease the use of a significant number of our transmitter and receiver sites as a result of the RAN sharing agreement, which would result in material impairment and restructuring charges.

In August 2016, we received approximately $39.7 million of cash in connection with the release of performance bonds relating to our obligations to deploy spectrum in Brazil.