Sprint Nextel (S)

Financial Condition

Our consolidated assets were $58.3 billion as of December 31, 2008, which included $22.9 billion of intangible assets, and $64.3 billion as of December 31, 2007, which included $28.1 billion of intangible assets. The decrease in our consolidated assets was primarily a result of the amortization of $2.4 billion related to our definite lived intangible assets, goodwill impairment of $963 million, decrease in accounts receivable balances of $835 million mainly due to declining revenues, decrease in our device and access inventory of $410 million

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reflecting management’s decision to lower inventory levels and the decrease in our deferred tax assets of $354 million. Our consolidated liabilities were $38.6 billion as of December 31, 2008 and $42.2 billion as of December 31, 2007. The decrease in our consolidated liabilities was primarily as a result of a $1.8 billion decrease in our accounts payable, accrued expenses and other current liabilities as a result of a reduction in our obligations relating to capital expenditures, inventory and other items, reflecting lower levels of purchasing activity in the business, a decrease in our deferred tax liabilities of $1.5 billion, and a net decrease in our debt, financing and capital lease obligations of $520 million. See “—Liquidity and Capital Resources” for additional information on the change in cash and cash equivalents.

Financial Condition

Financial Condition

Our consolidated assets were $61.9 billion as of September 30, 2008, which included $27.1 billion of intangible assets, and $64.3 billion as of December 31, 2007, which included $28.1 billion of intangible assets. The decrease in our consolidated assets was primarily as a result of the amortization of $2.0 billion related to our definite lived intangible assets. Our consolidated liabilities were $40.7 billion as of September 30, 2008 and $42.2 billion as of December 31, 2007. The decrease in our consolidated liabilities was primarily a result of a $900 million decrease in our accounts payable. The decrease in accounts payable was primarily a result of a reduction in our obligations relating to capital expenditures, inventory and other items, reflecting lower levels of purchasing activity in the business. See “—Liquidity and Capital Resources” for additional information on the change in cash and cash equivalents.

Financial Condition

Our consolidated assets were $62.8 billion as of June 30, 2008, which included $27.3 billion of intangible assets and $64.3 billion as of December 31, 2007, which included $28.1 billion of intangible assets. The decrease in our consolidated assets was primarily as a result of the amortization of $1.4 billion related to our definite lived intangible assets. Our consolidated liabilities were $41.4 billion as of June 30, 2008 and $42.2 billion as of December 31, 2007. The decrease in our consolidated liabilities was primarily a result of a $1.0 billion decrease in our accounts payable. The decrease in accounts payable was primarily a result of a reduction in our obligations relating to capital expenditures, inventory and other items, reflecting lower levels of purchasing activity in the business. See “—Liquidity and Capital Resources” for additional information on the change in cash and cash equivalents.

Financial Condition

Our consolidated assets were $65.5 billion as of March 31, 2008, which included $27.9 billion of intangible assets and $64.3 billion as of December 31, 2007, which included $28.3 billion of intangible assets. The increase in our consolidated assets was primarily as a result of the increase in cash due to the draw down of $2.5 billion from our revolving bank credit facility, partially offset by the amortization of $697 million related to our definite lived intangible assets. “See —Liquidity and Capital Resources” for additional information on the change in cash and cash equivalents.

Financial Condition

Our consolidated assets were $64.1 billion as of December 31, 2007, which included $28.1 billion of intangible assets, and $97.2 billion as of December 31, 2006, which included $60.1 billion of intangible assets. The decrease in our consolidated assets was primarily a result of the $29.7 billion goodwill impairment charge, recorded in 2007, the amortization of $3.3 billion related to our definite lived intangible assets, cash used in our stock repurchase program and the settlement of our securities loan agreement. See “—Liquidity and Capital Resources” for additional information on the change in cash and cash equivalents.

Financial Condition

FACE="Times New Roman" SIZE="2">Our consolidated assets were $64.1 billion as of December 31, 2007, which included $28.1 billion of intangible assets, and $97.2 billion as of December 31, 2006, which included
$60.1 billion of intangible assets. The decrease in our consolidated assets was primarily a result of the $29.7 billion goodwill impairment charge, recorded in 2007, the amortization of $3.3 billion related to our definite lived
intangible assets, cash used in our stock repurchase program and the settlement of our securities loan agreement. See “—Liquidity and Capital Resources” for additional information on the change in cash and cash equivalents.

Financial Condition

Our consolidated assets were $96.2 billion as of September 30, 2006, which included $61.0 billion of intangible assets, and $102.8 billion as of December 31, 2005, which included $49.3 billion of intangible assets. The decrease in our consolidated assets was due primarily to the spin-off of Embarq, payments and retirements of debt, purchases of common shares and the retirement of our Seventh series redeemable preferred shares, partially offset by the effects of net assets acquired in connection with several business combinations. Additional information regarding the impact of the spin-off and the business combinations on consolidated assets can be found in notes 2 and 3 of the Notes to Consolidated Financial Statements. See “Liquidity and Capital Resources” for additional information on the change in cash and cash equivalents.

Financial Condition

Our consolidated assets of $102.6 billion as of December 31, 2005 reflect an increase of $61.3 billion from 2004. This increase was primarily due to business combination activity, $56.4 billion of which reflects the fair value of Nextel’s assets, net of cash paid, and $555 million of which reflects the fair value of US Unwired’s assets, net of cash paid, both of which were acquired in the third quarter 2005, $93 million of which reflects the fair value of Gulf Coast Wireless’ assets, net of cash paid, and $239 million of which reflects the fair value of IWO Holding’s assets, net of cash paid, both of which were acquired in the fourth quarter 2005. Additional information regarding the impact of business combinations on consolidated

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assets can be found in note 2 of the Notes to the Consolidated Financial Statements appearing in this Exhibit 99.1 to the Form 8-K. The remainder of the increase in consolidated assets is primarily driven by cash and equivalents. Excluding net cash paid of $188 million in the Sprint-Nextel merger and the acquisitions of US Unwired, Gulf Coast Wireless and IWO Holdings, cash and equivalents increased $4.9 billion. See “Liquidity and Capital Resources” for additional information on the increase in cash.

In August 2005, all three major credit rating agencies upgraded our debt ratings. Standard and Poor’s Corporate Ratings upgraded our long-term senior unsecured debt to A- from BBB- and changed our credit rating outlook to stable from positive. Moody’s Investor Service upgraded our long-term senior unsecured debt rating to Baa2 from Baa3 and changed the credit rating outlook to stable from positive. Fitch Ratings upgraded our senior unsecured debt rating to BBB+ from BBB and changed our credit rating outlook to stable from positive.

Financial Condition

Our consolidated assets were $102.8 billion as of March 31, 2006, which included $53.0 billion of intangible assets, and $102.6 billion as of December 31, 2005, which included $49.3 billion of intangible assets. The increase to our consolidated assets in the first quarter 2006 was due primarily to business combination activity, payments of debt and the retirement of our Seventh series redeemable preferred stock. Additional information regarding the impact of business combinations on consolidated assets can be found in note 2 of the Notes to Consolidated Financial Statements. See “Liquidity and Capital Resources” for additional information on the change in cash.

Financial Condition

Our consolidated assets were $98.3 billion as of June 30, 2006, which included $60.7 billion of intangible assets, and $102.8 billion as of December 31, 2005, which included $49.3 billion of intangible assets. The decrease in our consolidated assets was due primarily to the spin-off of Embarq, payments of debt and the retirement of our Seventh series redeemable preferred stock, partially offset by several business combinations. Additional information regarding the impact of the spin-off and business combinations on consolidated assets can be found in notes 2 and 3, respectively, of the Notes to Consolidated Financial Statements. See “Liquidity and Capital Resources” for additional information on the change in cash and cash equivalents.

Financial Condition

Our consolidated assets were $102.8 billion as of March 31, 2006, which included $53.0 billion of intangible assets, and $102.6 billion as of December 31, 2005, which included $49.3 billion of intangible assets. The increase to our consolidated assets in the first quarter 2006 was due primarily to business combination activity, payments of debt and the retirement of our Seventh series redeemable preferred stock. Additional information regarding the impact of business combinations on consolidated assets can be found in note 2 of the Notes to Consolidated Financial Statements. See “Liquidity and Capital Resources” for additional information on the change in cash.

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Financial Condition

Our consolidated assets of $102.6 billion as of December 31, 2005 reflect an increase of $61.3 billion from 2004. This increase was primarily due to business combination activity, $56.4 billion of which reflects the fair value of Nextel’s assets, net of cash paid, and $555 million of which reflects the fair value of US Unwired’s assets, net of cash paid, both of which were acquired in the third quarter 2005, $93 million of which reflects the fair value of Gulf Coast Wireless’ assets, net of cash paid, and $239 million of which reflects the fair value of IWO Holding’s assets, net of cash paid, both of which were acquired in fourth quarter 2005. Additional information regarding the impact of business combinations on consolidated assets can be found in note 2 of the Notes to the Consolidated Financial Statements appearing at the end of this annual report on Form 10-K. The remainder of the increase in consolidated assets is primarily driven by cash and equivalents. Excluding net cash paid of $188 million in the Sprint-Nextel merger and the acquisitions of US Unwired, Gulf Coast Wireless and IWO Holdings, cash and equivalents increased $4.9 billion. See “Liquidity and Capital Resources” for additional information on the increase in cash.

In August 2005, all three major credit rating agencies upgraded our debt ratings. Standard and Poor’s Corporate Ratings upgraded our long-term senior unsecured debt to A- from BBB- and changed our credit rating outlook to stable from positive. Moody’s Investor Service upgraded our long-term senior unsecured debt rating to Baa2 from Baa3 and changed the credit rating outlook to stable from positive. Fitch Ratings upgraded our senior unsecured debt rating to BBB+ from BBB and changed our credit rating outlook to stable from positive.

Financial Condition

Sprint Nextel’s consolidated assets of $101.3 billion as of September 30, 2005 reflect an increase of $60.0 billion from the 2004 year-end period. The increase in assets is primarily due to business combination activity, $56.4 billion of which reflects the fair value of Nextel’s assets, net of cash paid, acquired in the 2005 third quarter, and $589 million of which reflects the fair value of US Unwired’s assets, net of cash paid, also acquired in the 2005 third quarter. See Note 2 of Notes to Condensed Consolidated Financial Statements for more information on the impact of business combinations on consolidated assets. The remainder of the increase in consolidated assets is primarily driven by cash and equivalents. Excluding net cash activity of $234 million from the Nextel merger and US Unwired acquisition, cash and equivalents increased $3.4 billion. See “Liquidity and Capital Resources” for additional discussion of the increase in cash.

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In August 2005, all three major credit rating agencies upgraded Sprint Nextel’s debt ratings. Standard and Poor’s Corporate Ratings upgraded Sprint Nextel’s long-term senior unsecured debt to A- from BBB- and changed its credit rating outlook to stable from positive. Moody’s Investor Service upgraded Sprint Nextel’s long-term senior unsecured debt rating to Baa2 from Baa3 and changed the credit rating outlook to stable from positive. Fitch Ratings upgraded Sprint Nextel’s senior unsecured debt rating to BBB+ from BBB and changed its credit rating outlook to stable from positive.

Financial Condition

Sprint’s consolidated assets of $42.5 billion reflect an increase of $1.2 billion in the 2005 year-to-date period from 2004 year-end. Cash and equivalents increased $2.1 billion. Cash from operations, which included the receipt of $1.2 billion in prepaid tower rentals from Global Signal, exceeded debt service requirements, capital expenditures and dividend payments. Additionally, Sprint received approximately $200 million from the sale of the conferencing operation. Net property, plant, and equipment decreased $483 million. Capital expenditures were more than offset by depreciation expense in the 2005 year-to-date period.

Financial Condition

Sprint’s consolidated assets of $41.3 billion reflect a decrease of $1.4 billion in 2004. Cash and equivalents increased $2.1 billion as cash provided by operations and proceeds from the equity unit forward purchase contracts exceeded capital expenditures, debt payments and dividend payments. Accounts receivable, net, increased $231 million due to a higher Wireless subscriber base. The current deferred tax asset increased by $1.0 billion to reflect the expected utilization of NOL carryforwards in 2005. Net property, plant and equipment decreased $4.5 billion due to the $3.5 billion long distance network asset impairment, as well as depreciation expense that exceeded capital expenditures by $733 million. Other non-current assets decreased by $266 million primarily due to decreases in investments in debt and equity securities and Sprint’s investment in Virgin Mobile USA.

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The Sprint debt-to-total-capital ratio was 55.5% at year-end 2004 versus 58.9% at year-end 2003. This improvement at year-end 2004 primarily reflects the conversion of the equity unit notes and additional debt reductions, partially offset by the 2004 net loss and increased dividends.

Financial Condition

Sprint’s consolidated assets of $41.3 billion reflect a decrease of $1.4 billion in 2004. Cash and equivalents increased $2.1 billion as cash provided by operations and proceeds from the equity unit forward purchase contracts exceeded capital expenditures, debt payments and dividend payments. Accounts receivable, net, increased $231 million due to a higher Wireless subscriber base. The current deferred tax asset increased by $1.0 billion to reflect the expected utilization of NOL carryforwards in 2005. Net property, plant and equipment decreased $4.5 billion due to the $3.5 billion long distance network asset impairment, as well as depreciation expense that exceeded capital expenditures by $733 million. Other non-current assets decreased by $266 million primarily due to decreases in investments in debt and equity securities and Sprint’s investment in Virgin Mobile USA.

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The Sprint debt-to-total-capital ratio was 55.5% at year-end 2004 versus 58.9% at year-end 2003. This improvement at year-end 2004 primarily reflects the conversion of the equity unit notes and additional debt reductions, partially offset by the 2004 net loss and increased dividends.