EQ » Topics » Investing Activities

This excerpt taken from the EQ 10-Q filed May 7, 2009.

Investing Activities

Net cash used by investing activities decreased $89 million during the year to date period ended March 31, 2009, compared to the same period in 2008.

Capital expenditures account for the majority of our investing activities and decreased $71 million during the year to date period ended March 31, 2009, as compared to the same period in 2008. Our capital expenditures primarily fund new service addresses, increased network capacity and regulatory mandates; sales success based expenditures primarily related to growth in high-speed Internet and data services; internal infrastructure; and new product and operational capabilities.

Proceeds from the sale of discontinued operations and other assets increased $17 million primarily due to the initial cash payment associated with the sale of our Embarq Logistics subsidiary in March 2009.

 

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These excerpts taken from the EQ 10-K filed Feb 13, 2009.

Investing Activities

Net cash used by investing activities decreased $130 million in 2008 and decreased $86 million in 2007.

Capital expenditures account for the majority of our investing activities. Our capital expenditures primarily fund new service addresses, increased network capacity and regulatory mandates; sales success based expenditures primarily related to growth in high-speed Internet and data services; internal infrastructure; and new product and operational capabilities. Our capital expenditures decreased $143 million in 2008 and decreased $94 million in 2007 based on expenditures in the following categories:

 

     For the Years Ended December 31,
     2008    2007    2006
     (millions)

Network expansion and mandates

   $ 380    $ 486    $ 569

Sales success based

     208      213      211

Internal infrastructure

     65      104      84

New product, operational capabilities and other

     33      26      59
                    

Total capital expenditures

   $ 686    $ 829    $ 923
                    

Proceeds from sales of assets were $11 million in 2008, $25 million in 2007 and $33 million in 2006. Proceeds received in 2008 were primarily for the sale of certain network assets in the 2008 third quarter. Proceeds received in 2007 and 2006 were primarily from sales of certain rural telephone exchanges in Kansas.

 

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Investing Activities

Net cash used by investing activities decreased $130 million in 2008 and decreased $86 million in 2007.

Capital expenditures account for the majority of our investing activities. Our capital expenditures primarily fund new service addresses, increased network capacity and regulatory mandates; sales success based expenditures primarily related to growth in high-speed Internet and data services; internal infrastructure; and new product and operational capabilities. Our capital expenditures decreased $143 million in 2008 and decreased $94 million in 2007 based on expenditures in the following categories:

 

     For the Years Ended December 31,
     2008    2007    2006
     (millions)

Network expansion and mandates

   $ 380    $ 486    $ 569

Sales success based

     208      213      211

Internal infrastructure

     65      104      84

New product, operational capabilities and other

     33      26      59
                    

Total capital expenditures

   $ 686    $ 829    $ 923
                    

Proceeds from sales of assets were $11 million in 2008, $25 million in 2007 and $33 million in 2006. Proceeds received in 2008 were primarily for the sale of certain network assets in the 2008 third quarter. Proceeds received in 2007 and 2006 were primarily from sales of certain rural telephone exchanges in Kansas.

 

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Investing Activities

Net cash used by investing activities decreased $130 million in 2008 and decreased $86 million in 2007.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">Capital expenditures account for the majority of our investing activities. Our capital expenditures primarily fund new service addresses, increased
network capacity and regulatory mandates; sales success based expenditures primarily related to growth in high-speed Internet and data services; internal infrastructure; and new product and operational capabilities. Our capital expenditures
decreased $143 million in 2008 and decreased $94 million in 2007 based on expenditures in the following categories:

 












































































































   For the Years Ended December 31,
   2008  2007  2006
   (millions)

Network expansion and mandates

  $380  $486  $569

Sales success based

   208   213   211

Internal infrastructure

   65   104   84

New product, operational capabilities and other

   33   26   59
            

Total capital expenditures

  $686  $829  $923
            

Proceeds from sales of assets were $11 million in 2008, $25 million in 2007 and $33 million in
2006. Proceeds received in 2008 were primarily for the sale of certain network assets in the 2008 third quarter. Proceeds received in 2007 and 2006 were primarily from sales of certain rural telephone exchanges in Kansas.

STYLE="margin-top:0px;margin-bottom:0px"> 


38








Investing Activities

Net cash used by investing activities decreased $130 million in 2008 and decreased $86 million in 2007.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">Capital expenditures account for the majority of our investing activities. Our capital expenditures primarily fund new service addresses, increased
network capacity and regulatory mandates; sales success based expenditures primarily related to growth in high-speed Internet and data services; internal infrastructure; and new product and operational capabilities. Our capital expenditures
decreased $143 million in 2008 and decreased $94 million in 2007 based on expenditures in the following categories:

 












































































































   For the Years Ended December 31,
   2008  2007  2006
   (millions)

Network expansion and mandates

  $380  $486  $569

Sales success based

   208   213   211

Internal infrastructure

   65   104   84

New product, operational capabilities and other

   33   26   59
            

Total capital expenditures

  $686  $829  $923
            

Proceeds from sales of assets were $11 million in 2008, $25 million in 2007 and $33 million in
2006. Proceeds received in 2008 were primarily for the sale of certain network assets in the 2008 third quarter. Proceeds received in 2007 and 2006 were primarily from sales of certain rural telephone exchanges in Kansas.

STYLE="margin-top:0px;margin-bottom:0px"> 


38








This excerpt taken from the EQ 10-Q filed Oct 30, 2008.

Investing Activities

Net cash used by investing activities decreased $24 million in the year to date period ended September 30, 2008, compared to the same period in 2007.

 

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Capital expenditures account for the majority of our investing activities. Our capital expenditures primarily fund new service addresses, increased network capacity and regulatory mandates; internal infrastructure; new capabilities; and sales success based expenditures primarily related to growth in high-speed Internet and data services. Our capital expenditures decreased $34 million for the year to date period ended September 30, 2008 as compared to the same period in 2007 due to expenditures in the following categories:

 

     Year to Date September 30,  
     2008     2007  
     (millions)  

Network expansion and mandates

   $ (289 )   $ (356 )

Internal infrastructure

     (51 )     (50 )

New capabilities

     (23 )     (14 )

Sales success based

     (169 )     (146 )
                

Total capital expenditures

   $ (532 )   $ (566 )
                

Proceeds from sales of assets were $10 million in the year to date period ended September 30, 2008, which was a decrease of $9 million compared to the same period in 2007. This decrease was primarily related to proceeds received in the 2007 first quarter related to the sales of rural telephone exchanges in the 2006 fourth quarter partially offset by proceeds received as part of the sale of certain network related assets during the 2008 third quarter.

This excerpt taken from the EQ 10-Q filed Jul 30, 2008.

Investing Activities

Net cash used by investing activities increased $6 million in the year to date period ended June 30, 2008, compared to the same period in 2007.

Capital expenditures account for the majority of our investing activities. Our capital expenditures primarily fund new service addresses, increased network capacity and regulatory mandates; internal infrastructure; new capabilities; and sales success based expenditures primarily related to growth in high-speed Internet and data services. Capital expenditures of $360 million in the year to date period ended June 30, 2008, decreased $11 million from the same period in 2007. The following table shows the major drivers of these changes:

 

     Increase (Decrease)  
     (millions)  

Network expansion and mandates

   $ (46 )

Internal infrastructure

     7  

New capabilities

     11  

Sales success based

     17  
        

Total decrease in capital expenditures

   $ (11 )
        

 

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Proceeds from sales of assets decreased $16 million in the year to date period ended June 30, 2008, compared to the same period in 2007. This decrease was primarily related to proceeds received in the first quarter of 2007 related to the sales of rural telephone exchanges in the fourth quarter of 2006.

This excerpt taken from the EQ 10-Q filed May 1, 2008.

Investing Activities

Net cash used by investing activities increased $12 million in the year to date period ended March 31, 2008, compared to the same period in 2007.

Capital expenditures account for the majority of our investing activities. Our capital expenditures primarily fund new service addresses, increased network capacity and regulatory mandates; internal infrastructure; new capabilities; and sales success based expenditures primarily related to growth in high-speed Internet and data services. Capital expenditures of $179 million in the year to date period ended March 31, 2008, decreased $4 million from $183 million in the same period in 2007. The following table shows the major drivers of these changes:

 

     Increase (Decrease)  
     2008 vs. 2007  
     (millions)  

Network buildout and mandates

   $ (25 )

Internal infrastructure

     7  

Sales success based

     14  
        

Total decrease in capital expenditures

   $ (4 )
        

 

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Proceeds from sales of assets decreased $15 million in the year to date period ended March 31, 2008, compared to the same period in 2007. This decrease was primarily related to proceeds received in the first quarter of 2007 related to the sales of rural telephone exchanges in the fourth quarter of 2006.

This excerpt taken from the EQ 10-K filed Feb 29, 2008.

Investing Activities

Net cash used by investing activities decreased $86 million in 2007 compared to 2006 and increased $69 million in 2006 compared to 2005.

 

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Capital expenditures account for the majority of our investing activities. Our capital expenditures primarily fund new service addresses and network capacity increases; regulatory mandates; internal infrastructure; new capabilities; sales success based expenditures primarily related to growth in high-speed Internet and data services; and spin-off related expenditures. Capital expenditures of $829 million in 2007 decreased $94 million from $923 million in 2006, which increased $95 million from $828 million in 2005. The following table shows the major drivers of these changes:

 

     Increase (Decrease)  
        
     2007 vs. 2006     2006 vs. 2005  
        
     (millions)  

Network buildout and mandates

       $ (81 )       $ (75 )

Internal infrastructure

             21       (5 )

New capabilities

     (19 )             21  

Sales success based

     2       125  

Spin-off capital expenditures

     (17 )     29  
        

Total increase (decrease) in capital expenditures

       $ (94 )       $      95  
        

During 2007, capital requirements associated with new service addresses declined in part due to the downturn in residential construction and development in our service territories. This trend in the housing market could affect capital requirements in the future.

In 2006, the company sold a total of 25 rural telephone exchanges in north central Kansas. Cash proceeds of $15 million were received in 2006. An additional $15 million of cash proceeds from the fourth quarter 2006 sale were received in the 2007 first quarter. Also, in 2006, we received proceeds of $9 million from the liquidation of our investment in the Rural Telephone Bank.

This excerpt taken from the EQ 10-Q filed Nov 2, 2007.

Investing Activities

Net cash used by investing activities totaled $540 million in the year to date period ended September 30, 2007, compared to $671 million in the same period in 2006. Capital expenditures account for the majority of our investing activities. Our capital expenditures are targeted primarily towards increased network capacity and include investments for growth in demand for high-speed Internet and data services and regulatory mandates. Our decline in capital expenditures during 2007 was primarily related to reduced spin-off related spending as well as reduced funding requirements for new service addresses due to the downturn in residential construction and development.

Proceeds from sales of assets relate mainly to proceeds received from sales of rural telephone exchanges completed in the first and fourth quarters of 2006. Approximately $15 million of proceeds from the fourth quarter sale were received in the 2007 first quarter.

This excerpt taken from the EQ 10-Q filed Aug 1, 2007.

Investing Activities

Net cash used by investing activities totaled $348 million in the year to date period ended June 30, 2007, compared to $424 million in the same period in 2006. Capital expenditures account for the majority of our investing activities. Our capital expenditures are targeted primarily towards increased network capacity and include investments for growth in demand for high-speed Internet and data services and regulatory mandates. Capital expenditures also include capital costs incurred to separate from Sprint Nextel most of which is information technology-related.

Proceeds from sales of assets relate mainly to proceeds received from sales of rural telephone exchanges completed in the first and fourth quarters of 2006. Approximately $15 million of proceeds from the fourth quarter sale were received in the 2007 first quarter.

This excerpt taken from the EQ 10-Q filed May 2, 2007.

Investing Activities

Net cash used by investing activities totaled $163 million in the quarter and year to date periods ended March 31, 2007, compared to $162 million in the same periods in 2006. Capital expenditures account for the majority of our investing activities. Our capital expenditures are targeted primarily towards increased network capacity and include investments for growth in demand for high-speed Internet services and regulatory mandates. Capital expenditures also include capital costs incurred to separate from Sprint Nextel most of which is information technology-related.

 

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Proceeds from sales of assets relate mainly to proceeds received from sales of rural telephone exchanges completed in the first and fourth quarters of 2006. Approximately $15 million of proceeds from the fourth quarter sale were received in the 2007 first quarter.

This excerpt taken from the EQ 10-K filed Mar 9, 2007.

Investing Activities

Net cash used by investing activities totaled $880 million in 2006 compared to $811 million in 2005 and $962 million in 2004. Capital expenditures account for the majority of our investing activities. Our investing activities are targeted primarily towards increased network capacity and include investments for growth in demand for high-speed Internet services and regulatory mandates. In 2006, capital expenditures also include capital costs incurred to separate from Sprint Nextel most of which was information technology-related.

This excerpt taken from the EQ 10-Q filed Nov 13, 2006.

Investing Activities

Net cash used by investing activities totaled $671 million in the 2006 year to date period compared to $530 million in the same 2005 period. Capital expenditures account for the majority of our investing activities. Our investing activities are targeted primarily towards increased network capacity and include investments for growth in demand for high-speed Internet services and regulatory mandates.

This excerpt taken from the EQ 10-Q filed Aug 14, 2006.

Investing Activities

Net cash used by investing activities totaled $424 million in the 2006 year to date period compared to $332 million in the same 2005 period. Capital expenditures account for the majority of our investing activities. Our investing activities are targeted primarily towards increased network capacity and include investments for growth in demand for high-speed Internet services and regulatory mandates.

This excerpt taken from the EQ 10-Q filed Jun 9, 2006.

Investing Activities

Net cash used by investing activities totaled $162 million and $135 million for the first quarter of 2006 and 2005, respectively. Capital expenditures account for the majority of our investing activities. Our investing activities are targeted primarily towards increased network capacity and include investments for growth in demand for high-speed Internet services and regulatory mandates.

This excerpt taken from the EQ 8-K filed May 4, 2006.

Investing Activities

 

Net cash used in investing activities totaled $816 million, $962 million and $452 million for the years 2005, 2004 and 2003, respectively. Capital expenditures account for the majority of our investing activities. Capital

 

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expenditures were primarily incurred to accommodate voice grade equivalent growth, convert the network from circuit to packet switching, continue the build-out of high-speed Internet services and to meet regulatory requirements.

 

In 2003, investing activities included $647 million of proceeds related to the sale of our directory publishing business. The overall decrease in capital expenditures for the year ended December 31, 2004 compared to the year ended December 31, 2003 was driven by reduced expenditures for capacity, operational maintenance, major projects, and the partial delay of the conversion from circuit to packet switching. These decreases were slightly offset by increased expenditures in high-speed Internet services build-out.

 

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