Sprint Nextel (S)

Goodwill

Goodwill represents the excess of consideration paid over the estimated fair value of net tangible and identifiable intangible assets acquired in business combinations. During the fourth quarter 2009, we acquired VMU and iPCS (see Note 3) and, based on our preliminary purchase price allocation, recorded $373 million of goodwill.

Goodwill

Goodwill represents the premium paid over the fair value of the net tangible and intangible assets we have acquired in business combinations. In the fourth quarters of 2008 and 2007, we performed our annual assessments of impairment of goodwill. As a result of these assessments, which are described below, we recorded non-cash goodwill impairment charges of $963 million and $29.6 billion for the years ended December 31, 2008 and 2007, respectively. These charges are presented separately in the statement of operations and relate solely to the Wireless segment. The substantial majority of these charges are not deductible for tax purposes. These charges did not result in a violation of any covenants of any of our debt instruments. As a result of the annual assessments, we no longer have any goodwill on our consolidated balance sheet as of December 31, 2008.

Goodwill

Goodwill represents the premium paid over the fair value of the net tangible and intangible assets we have acquired in business combinations. Approximately $26.3 billion of our goodwill was recorded in connection with the recent business combinations described in note 2 and approximately $4.4 billion of our goodwill was recorded from acquisitions in previous years. All goodwill has been allocated to the Wireless segment. In fourth quarter 2007, we performed our annual assessment of impairment of goodwill. As a result of this assessment, which is described below, we recorded a non-cash goodwill impairment charge of $29.7 billion. This charge is presented separately in the 2007 statement of operations. The substantial majority of the charge is not deductible for tax purposes. This charge does not result in a violation of any covenants of any of our debt instruments.

Goodwill

SIZE="2">Goodwill represents the premium paid over the fair value of the net tangible and intangible assets we have acquired in business combinations. Approximately $26.3 billion of our goodwill was recorded in connection with the recent
business combinations described in note 2 and approximately $4.4 billion of our goodwill was recorded from acquisitions in previous years. All goodwill has been allocated to the Wireless segment. In fourth quarter 2007, we performed our annual
assessment of impairment of goodwill. As a result of this assessment, which is described below, we recorded a non-cash goodwill impairment charge of $29.7 billion. This charge is presented separately in the 2007 statement of operations. The
substantial majority of the charge is not deductible for tax purposes. This charge does not result in a violation of any covenants of any of our debt instruments.

SIZE="2">Goodwill Impairment Testing Policy

SFAS No. 142, Goodwill and Other Intangible Assets, requires that
goodwill be tested for impairment at a reporting unit level, which is equivalent to our reported wireless operating segment as determined in accordance with SFAS No. 131, Disclosures about Segments of an Enterprise and Related
Information. We review our goodwill for impairment annually in the fourth quarter, or more frequently if indicators of impairment exist. We periodically analyze whether any such indicators of impairment exist. A significant amount of judgment is
involved in determining if an indicator of impairment has occurred. Such indicators may include a sustained, significant decline in our share price and market capitalization, a decline in our expected future cash flows, a significant adverse change
in legal factors or in the business climate, unanticipated competition, the testing for recoverability of our long-lived wireless assets, and/or slower growth rates, among others.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in business combinations accounted for as purchases. The book value of goodwill was $4.4 billion at December 31, 2004 and 2003 with virtually all attributed to Wireless. Sprint evaluates goodwill for impairment on an annual basis and whenever events or circumstances indicate that these assets may be impaired. Sprint determines impairment by comparing the net assets of each reporting unit, identified as Sprint’s operating segments, to the respective fair value. In the event a unit’s net assets exceed its fair value, an implied fair value of goodwill must be determined by assigning the unit’s fair value to each asset and liability of the unit. The excess of the fair value of the reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill. An impairment loss is measured by the difference between the goodwill carrying value and the implied fair value.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in business combinations accounted for as purchases. The book value of goodwill was $4.4 billion at December 31, 2004 and 2003 with virtually all attributed to Wireless. Sprint evaluates goodwill for impairment on an annual basis and whenever events or circumstances indicate that these assets may be impaired. Sprint determines impairment by comparing the net assets of each reporting unit, identified as Sprint’s operating segments, to the respective fair value. In the event a unit’s net assets exceed its fair value, an implied fair value of goodwill must be determined by assigning the unit’s fair value to each asset and liability of the unit. The excess of the fair value of the reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill. An impairment loss is measured by the difference between the goodwill carrying value and the implied fair value.