Subsequent Events

6 Months Ended

Jun. 30, 2011


Note 15.	Subsequent Events

As of June 30, 2011, the carrying value of Sprint's investment in Clearwire of $3.92 per share over Clearwire's closing stock price of $3.78 per share was equivalent to an excess of $75 million. Clearwire's stock price began to decline below its June 30, 2011 closing price subsequent to July 10, 2011 and closed at $2.47 per share as of August 3, 2011, resulting in an excess of the carrying value of Sprint's investment in Clearwire as compared to Clearwire's closing stock price of approximately $771 million. A $.10 change in Clearwire's per share closing stock price is equivalent to a corresponding change in the estimated value of our investment in Clearwire by approximately $53.2 million based on an assumed conversion of 532 million Class B Common Interests. The decline in Clearwire's stock price subsequent to June 30, 2011, did not result in a change to our conclusion regarding the realizability of the carrying value of our investment in Clearwire and certain of our deferred tax assets (see Notes 3 and 9) at June 30, 2011 given the short duration of the severe decline. We do not intend to sell our investment in Clearwire in the forseeable future, and recoverability of our investment is not affected by short-term fluctuations in Clearwire's stock price. However, a sustained decline in the trading price of Clearwire's common stock below our per share carrying value, an element of consideration for recoverability, could result in a determination that our investment in Clearwire may not be recoverable, resulting in a material non-cash impairment in our consolidated financial statements up to the entire amount of our investment, including the note receivable, of $2.3 billion.