SPRINT CORP Files SEC form 8-K/A, Costs Associated with Exit or Disposal Activities

Show all filings for SPRINT CORP
Form
8-K/A for
SPRINT CORP

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7-Nov-2014

Costs Associated with Exit or Disposal Activities

Item 2.05 Costs Associated with Exit or Disposal Activities.

On September 30, 2014, the Company began implementation of a workforce reduction
plan to reduce costs and help become more competitive in the marketplace. The
plan is expected to include steps to, among other things, improve operational
efficiencies and reduce costs, as a result of which the Company expects to incur
material charges under generally accepted accounting principles. This reduction
is expected to be largely completed by March 31, 2015 and will include certain
management and non-management positions.

The Company previously reported and recognized a charge of approximately $160
million in the quarter ended September 30, 2014 for severance and related costs.
This charge was determined based on an existing employee benefit severance plan
and based on the information available as of the date of the Original Filing.
The Company recognized an additional charge of approximately $105 million in the
three month period ended September 30, 2014 for severance and related costs
relating to this workforce reduction plan. Additional material charges may occur
in future periods. The majority of the above charges is expected to result in
cash expenditures by June 30, 2015.

This Amendment Filing contains statements that are “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include statements regarding the anticipated
future charges and cash expenditures relating to the reduction in force. All of
the charges in this Amendment Filing are estimates and are subject to change.
These forward-looking statements give the Company’s current expectations and are
based upon management’s expectations that involve a number of risks and
uncertainties, any of which could cause actual results to differ materially from
those expressed in or implied by the forward-looking statements. Such risks and
uncertainties include, but are not limited to the following: separation costs
that differ from original estimates because of the timing of employee
terminations and the amounts of related charges, and any additional workforce
reductions that may occur. The Company undertakes no obligation to publicly
update forward-looking statements, whether as a result of new information,
future events or otherwise. You are advised, however, to consult any further
disclosures the Company makes on related subjects in its reports on Form 10-Q,
8-K and 10-K submitted to the SEC. You should understand that it is not possible
to predict or identify all risk factors. Consequently, you should not consider
any such list to be a complete set of all potential risks or uncertainties.

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