--------------------------------------------------------------------------------
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------------------------------------------------------------------------
FORM 8-K
--------------------------------------------------------------------------------
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 16, 2008
--------------------------------------------------------------------------------
SPRINT NEXTEL CORPORATION
(Exact name of Registrant as specified in its charter)
--------------------------------------------------------------------------------
Kansas 1-04721 48-0457967
(State of Incorporation) (Commission File Number) (I.R.S. Employer
Identification No.)
2001 Edmund Halley Drive, Reston, Virginia 20191
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (703) 433-4000
(Former name or former address, if changed since last report)
--------------------------------------------------------------------------------
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
|_| Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Item 2.05 Costs Associated with Exit or Disposal Activities.
On January 16, 2008, the Board of Directors of Sprint Nextel
Corporation (the "Company"), in response to anticipated continued pressure on
subscriber trends, revenues and profitability in 2008, approved actions to
streamline the Company's business and reduce operating costs through (i) a
workforce reduction of approximately 4,000 internal positions and reduced
utilization of outsourced services and contractors and (ii) the elimination of
more than 4,000 third-party distribution points and approximately 125
company-owned retail locations. The employee headcount reductions are expected
to be substantially completed in the first half of the year and will include
management and non-management positions throughout the Company.
The Company expects to record an accounting charge of approximately
$200 million for severance and related costs associated with the workforce
reduction, primarily determined based on an existing severance plan.
Substantially all of the above estimated charge is expected to result in cash
expenditures during 2008.
The Company also expects to record a charge for exit and other costs
associated with the elimination of distribution points and retail locations, but
at this time is unable to estimate the costs expected to be incurred and whether
these costs are material. If material, the Company will disclose costs related
to these actions promptly after they are determined.
A copy of the press release announcing these actions is furnished as
Exhibit 99.1 to this Form 8-K.
Item 7.01 Regulation FD Disclosure.
On January 18, 2008, the Company announced its subscriber base declined
by approximately 109,000 subscribers and post-paid churn of 2.3% for the fourth
quarter 2007.
As reported in the Company's Form 10-Q for the period ended September
30, 2007, the Company is currently performing its annual assessment of goodwill
and indefinite lived intangible assets for impairment. Given current market
conditions, particularly the recent decrease in the Company's stock price, the
Company could incur a non-cash impairment charge associated with its goodwill in
the fourth quarter 2007.
A copy of the press release announcing this information is furnished as
Exhibit 99.1 to this Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
The following exhibits are filed with this report:
Exhibit No. Description
99.1 Press Release Announcing Fourth Quarter Subscriber
Results and Actions to Streamline Operations
--------------------------------------------------------------------------------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SPRINT NEXTEL CORPORATION
Date: January 18, 2008 /s/ Richard A. Montfort
-----------------------
By: Richard A. Montfort
Assistant Secretary
--------------------------------------------------------------------------------
EXHIBIT INDEX
Number Exhibit
99.1 Press Release Announcing Fourth Quarter Subscriber
Results and Actions to Streamline Operations