##### 









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-K/A


(Amendment No. 1)


|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|          
|           |  | For the fiscal year ended December 31, 2004                                                 
|          
|OR        
|          
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934
|          
|           |  | For the transition period
    from          to                                              

Commission file number 0-19656


NEXTEL COMMUNICATIONS, INC.


(Exact name of registrant as specified in its charter)


|                                                                                   |  |                                         
|---------------------------------------------------------------------------------- |  | ----------------------------------------
|Delaware                                                                           |  | 36-3939651                              
|(State or other jurisdiction of
    incorporation or organization)                 |  | (I.R.S. Employer
    Identification No.)
|                                                                                  
|2001 Edmund Halley Drive, Reston, Virginia(Address of principal executive offices) |  | 20191(Zip Code)                         

Registrants telephone number, including area code:


(703) 433-4000


Securities registered pursuant to Section 12(b) of the
Act:


None


Securities registered pursuant to Section 12(g) of the
Act:


class A common stock, $0.001 par value


þ o


o


þ o






DOCUMENTS INCORPORATED BY REFERENCE












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##### 



EXPLANATORY NOTE






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##### 



PART III




|         |                                                    
|-------- | ---------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant.

Board of Directors




| |                                                           
| | ----------------------------------------------------------
| | Directors Holding Office until the 2005 Annual
    Meeting

Timothy M. Donahue (age 56).


Frank M. Drendel (age 60).


William E. Kennard (age 48).




| |                                                           
| | ----------------------------------------------------------
| | Directors Holding Office until the 2007 Annual
    Meeting

Keith J. Bane (age 65).


V. Janet Hill (age 57).




| |                                                           
| | ----------------------------------------------------------
| | Directors Holding Office until the 2006 Annual
    Meeting

William E. Conway, Jr. (age 55).


Morgan E. OBrien (age 60).


Stephanie M. Shern (age 57).


1



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##### 







| |                
| | ---------------
| | Audit Committee





| |   |                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | retains our independent registered public accounting firm and
    approves the terms of the engagement, as well as approves any
    non-audit relationships with the independent registered public
    accounting firm;                    
|
| |  | reviews with our management significant accounting matters;                                                                                                                                                                                
|
| |  | reviews the nature of all services performed by our independent
    registered public accounting firm and their audit examination,
    as well as such registered public accounting firms
    independence and quality control procedures;
|
| |  | reviews the audited annual financial statements and the
    quarterly financial statements, as well as certain other
    financial disclosures;                                                                                            
|
| |  | reviews our systems of internal accounting controls;                                                                                                                                                                                       
|
| |  | reviews and approves, pursuant to applicable Nasdaq rules,
    proposed transactions between us and related parties (as defined
    in the rules); and                                                                                     
|
| |  | reviews compliance issues.                                                                                                                                                                                                                 







| |                                                            
| | -----------------------------------------------------------
| | Section 16(a) Beneficial Ownership Reporting
    Compliance





Executive Officers




2



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##### 





| |                
| | ---------------
| | Code of Conduct





|         |                        
|-------- | -----------------------
|Item 11. | Executive Compensation.



| |                      
| | ---------------------
| | Director Compensation









| |   |                                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | an annual retainer of $50,000, payable generally at the time of
    the annual meeting, of which $20,000 was paid in cash (subject
    to the directors election to defer all or a portion into
    shares of deferred stock) and $30,000 was paid in shares of
    deferred stock, valued as of May 27, 2004, which are
    subject to a one-year vesting period and a one-year holding
    period thereafter;
|
| |  | options to purchase 2,500 shares of our class A common
    stock granted quarterly, with the same terms as those granted to
    the Chairman of the Board;                                                                                                                                                                                                                                                      
|
| |  | options to purchase 1,250 shares of our class A common
    stock for each committee chaired granted quarterly, with the
    same terms as those granted to the Chairman of the Board; and                                                                                                                                                                                                                       
|
| |  | a $1,000 payment (subject to the directors election to
    defer all or a portion into shares of deferred stock) for each
    meeting attended that lasts more than three hours.                                                                                                                                                                                                                               



|                       |            |                   |  |        |          |  |   |       | 
|---------------------- | ---------- | ----------------- |  | ------ | -------- |  | - | ----- | 
|                       |            | Number of         |  |        |         
|                       |            | Shares Underlying |  |        | Exercise | 
|Director/Grant Date    |            | Options Granted   |  |        | Price    | 
|                       |            |                   |  |        |          | 
|William E. Conway, Jr. |            |                   |  |        |          |  |   |      
|                       | 2/27/2004  |                   |  | 62,500 |          |  | $ | 26.49 | 
|                       | 5/27/2004  |                   |  | 62,500 |          |  | $ | 22.90 | 
|                       | 8/31/2004  |                   |  | 62,500 |          |  | $ | 23.19 | 
|                       | 11/30/2004 |                   |  | 62,500 |          |  | $ | 28.46 | 

3



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##### 



|                    |            |                   |  |       |          |  |   |       | 
|------------------- | ---------- | ----------------- |  | ----- | -------- |  | - | ----- | 
|                    |            | Number of         |  |       |         
|                    |            | Shares Underlying |  |       | Exercise | 
|Director/Grant Date |            | Options Granted   |  |       | Price    | 
|                    |            |                   |  |       |          | 
|Keith J. Bane       |            |                   |  |       |          |  |   |      
|                    | 2/27/2004  |                   |  | 2,500 |          |  | $ | 26.49 | 
|                    | 5/27/2004  |                   |  | 2,500 |          |  | $ | 22.90 | 
|                    | 8/31/2004  |                   |  | 2,500 |          |  | $ | 23.19 | 
|                    | 11/30/2004 |                   |  | 2,500 |          |  | $ | 28.46 | 
|Frank M. Drendel    |            |                   |  |       |          |  |   |      
|                    | 2/27/2004  |                   |  | 3,750 |          |  | $ | 26.49 | 
|                    | 5/27/2004  |                   |  | 3,750 |          |  | $ | 22.90 | 
|                    | 8/31/2004  |                   |  | 3,750 |          |  | $ | 23.19 | 
|                    | 11/30/2004 |                   |  | 3,750 |          |  | $ | 28.46 | 
|V. Janet Hill       |            |                   |  |       |          |  |   |      
|                    | 2/27/2004  |                   |  | 2,500 |          |  | $ | 26.49 | 
|                    | 5/27/2004  |                   |  | 3,750 |          |  | $ | 22.90 | 
|                    | 8/31/2004  |                   |  | 3,750 |          |  | $ | 23.19 | 
|                    | 11/30/2004 |                   |  | 2,500 |          |  | $ | 28.46 | 
|William E. Kennard  |            |                   |  |       |          |  |   |      
|                    | 2/27/2004  |                   |  | 3,750 |          |  | $ | 26.49 | 
|                    | 5/27/2004  |                   |  | 3,750 |          |  | $ | 22.90 | 
|                    | 8/31/2004  |                   |  | 3,750 |          |  | $ | 23.19 | 
|                    | 11/30/2004 |                   |  | 3,750 |          |  | $ | 28.46 | 
|Morgan E. OBrien   |            |                   |  |       |          |  |   |      
|                    | 2/27/2004  |                   |  | 2,500 |          |  | $ | 26.49 | 
|                    | 5/27/2004  |                   |  | 2,500 |          |  | $ | 22.90 | 
|                    | 8/31/2004  |                   |  | 2,500 |          |  | $ | 23.19 | 
|                    | 11/30/2004 |                   |  | 2,500 |          |  | $ | 28.46 | 
|Stephanie M. Shern  |            |                   |  |       |          |  |   |      
|                    | 2/27/2004  |                   |  | 2,500 |          |  | $ | 26.49 | 
|                    | 5/27/2004  |                   |  | 3,750 |          |  | $ | 22.90 | 
|                    | 8/31/2004  |                   |  | 3,750 |          |  | $ | 23.19 | 
|                    | 11/30/2004 |                   |  | 3,750 |          |  | $ | 28.46 | 







4



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##### 



Executive Compensation






| |                           
| | --------------------------
| | Summary Compensation Table

|                     |                             |      |      |                     |            |              |           |           |            |                        |           |            |  |        |         |         |     |              |           |            |      |  |         |           |  |  |         |           |      |  |       |       | 
|-------------------- | --------------------------- | ---- | ---- | ------------------- | ---------- | ------------ | --------- | --------- | ---------- | ---------------------- | --------- | ---------- |  | ------ | ------- | ------- | --- | ------------ | --------- | ---------- | ---- |  | ------- | --------- |  |  | ------- | --------- | ---- |  | ----- | ----- | 
|                     |                             |      |      |                     |            |              |           |           |            | Long-term Compensation |           |            | 
|                     |                             |      |      |                     |            |              |           |           |            |                        |           |            | 
|                     |                             |      |      | Annual Compensation |            |              | Awards    |           |            | Payouts                |           |            | 
|                     |                             |      |      |                     |            |              |           |           |            |                        |           |            | 
|                     |                             |      |      |                     |            | Other        |           |           | Restricted |                        |           | Securities |  |        |         |         |    
|                     |                             |      |      |                     |            | Annual       |           |           | Stock      |                        |           | Underlying |  |        | LTIP    |         |     | All Other    |          
|Name and             |                             |      |      |                     |            | Compensation |           |           | Awards     |                        |           | Options    |  |        | Payouts |         |     | Compensation |          
|Principal Position   |                             | Year |      |                     | Salary ($) |              |           | Bonus ($) |            |                        | ($)(1)    |            |  | ($)(2) |         |         | (#) |              |           | ($)        |      |  | ($)(3)  |          
|                     |                             |      |      |                     |            |              |           |           |            |                        |           |            |  |        |         |         |     |              |           |            |      |  |         |          
|Timothy M. Donahue   |                             |      | 2004 |                     |            |              | 1,004,692 |           |            |                        | 1,800,000 |            |  |        |        |         |     |              |          |            |      |  | 250,000 |           |  |  | 675,000 |           |      |  | 8,120 |      
|                     | President and Chief         |      |      | 2003                |            |              |           | 938,461   |            |                        |           | 2,760,000  |  |        |         | 7,859   |     |              |           | 17,900,000 | (9)  |  |         | 400,000   |  |  |         | 4,725,000 | (17) |  |       | 8,000 | 
|                     | Executive Officer           |      |      | 2002                |            |              |           | 697,115   |            |                        |           | 1,500,000  |  |        |         | 24,156  |     |              |           |           |      |  |         | 2,000,000 |  |  |         | 675,000   |      |  |       | 7,070 | 
|                    
|Thomas N. Kelly, Jr. |                             |      | 2004 |                     |            |              | 634,630   |           |            |                        | 800,000   |            |  |        | 1,154   |         |     |              | 1,695,400 | (10)       |      |  | 245,000 |           |  |  | 325,000 |           |      |  | 8,200 |      
|                     | Executive Vice President    |      |      | 2003                |            |              |           | 588,846   |            |                        |           | 1,204,000  |  |        |         | 9,745   |     |              |           | 615,500    | (11) |  |         | 405,000   |  |  |         | 1,417,500 | (17) |  |       | 8,000 | 
|                     | and Chief Operating Officer |      |      | 2002                |            |              |           | 464,631   |            |                        |           | 473,813    |  |        |         |        |     |              |           |           |      |  |         | 245,000   |  |  |         | 202,500   |      |  |       | 6,863 | 
|                    
|Paul N. Saleh        |                             |      | 2004 |                     |            |              | 546,503   |           |            |                        | 700,000   |            |  |        | 50,813  | (4)     |     |              | 1,695,400 | (12)       |      |  | 220,000 |           |  |  | 275,000 |           |      |  | 7,531 |      
|                     | Executive Vice President    |      |      | 2003                |            |              |           | 516,769   |            |                        |           | 1,056,800  |  |        |         | 69,295  | (5) |              |           | 615,500    | (13) |  |         | 105,000   |  |  |         | 1,653,750 | (17) |  |       |      | 
|                     | and Chief Financial Officer |      |      | 2002                |            |              |           | 495,994   |            |                        |           | 765,000    |  |        |         | 177,990 | (6) |              |           | 700,000    | (14) |  |         | 350,000   |  |  |         | 236,250   |      |  |       |      | 
|                    
|Barry J. West        |                             |      | 2004 |                     |            |              | 376,573   |           |            |                        | 271,461   |            |  |        | 27,356  | (7)     |     |              | 726,600   | (15)       |      |  | 140,010 |           |  |  | 202,500 |           |      |  |      |      
|                     | Executive Vice President    |      |      | 2003                |            |              |           | 361,739   |            |                        |           | 401,856    |  |        |         | 27,356  | (7) |              |           |           |      |  |         | 105,000   |  |  |         | 1,417,500 | (17) |  |       |      | 
|                     | and Chief Technology        |      |      | 2002                |            |              |           | 342,696   |            |                        |           | 279,300    |  |        |         | 24,000  | (7) |              |           |           |      |  |         | 235,000   |  |  |         | 202,500   |      |  |       |      | 
|                     | Officer                     |      |      |                     |            |              |           |           |            |                        |           |            |  |        |         |         |     |              |           |            |      |  |         |           |  |  |         |           |      |  |       |       | 
|                    
|Leonard J. Kennedy   |                             |      | 2004 |                     |            |              | 430,449   |           |            |                        | 387,900   |            |  |        | 117,728 | (8)     |     |              | 484,400   | (16)       |      |  | 100,000 |           |  |  | 168,750 |           |      |  | 2,048 |      
|                     | Senior Vice President       |      |      | 2003                |            |              |           | 413,415   |            |                        |           | 574,080    |  |        |         |        |     |              |           |           |      |  |         | 70,000    |  |  |         | 1,181,250 | (17) |  |       | 8,000 | 
|                     | and General Counsel         |      |      | 2002                |            |              |           | 395,545   |            |                        |           | 399,000    |  |        |         |        |     |              |           |           |      |  |         | 170,000   |  |  |         | 168,750   |      |  |       | 7,458 | 






| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | Other Annual Compensation is comprised of the value
    of the named executive officers use of corporate aviation
    services, except as otherwise indicated. In 2003, we revised our
    policy on personal use of Nextel-owned aircraft to provide that
    the CEO, and certain other employees with the approval of the
    CEO, may use Nextel-owned aircraft for personal use so long as
    they reimburse us for the cost of any personal travel. For
    purposes of determining the amount to be reimbursed, the cost of
    personal travel is based on the Standard Industrial Fare Level,
    or SIFL, tables found in the tax regulations. The amounts for
    personal use of Nextel-owned aircraft included in this table
    represent the difference between the incremental cost to operate
    the aircraft for personal use and the cost based on the SIFL
    tables. The incremental cost is based on an annual average
    per-flight-hour cost to operate the aircraft, which is
    determined by dividing the direct costs to operate the aircraft
    by the total number of flight hours for the year in question.
    Direct costs include fuel costs, on-board catering, landing/ramp
    fees, hotel, meals, transportation and tips for crew, equipment
    and aircraft maintenance and an engine reserve, but do not
    include such indirect costs as depreciation, hangar costs,
    insurance, property taxes, salary and benefits and utilities. In
    2002, the costs associated with personal use of Nextel-owned
    aircraft were based on the SIFL rates.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Additionally, in 2004, Messrs. Donahue and Kelly were
    provided with security upgrades, and annual service and
    monitoring for the security systems included in such upgrades,
    for their residences. The costs of these upgrades and the
    service and monitoring for the security systems were incurred as
    a result of business-related concerns and were not maintained as
    perquisites or otherwise for the personal benefit of
    Messrs. Donahue and Kelly. As a result, we did not include
    such costs in the column captioned Other Annual
    Compensation, but note the following costs to us of
    providing these upgrades and monitoring services:

|                     |  |                   |        |  |                    |   |       | 
|-------------------- |  | ----------------- | ------ |  | ------------------ | - | ----- | 
|                     |  | Security          |        |  |                   
|                     |  | Upgrade           |        |  | Annual Service and |  
|                     |  | Installation Cost |        |  | Monitoring Cost    |  
|                     |  |                   |        |  |                    |  
|Timothy M. Donahue   |  | $                 | 65,544 |  |                    | $ | 2,719 | 
|Thomas N. Kelly, Jr. |  | $                 | 43,509 |  |                    | $ | 3,431 | 

5



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##### 





| |     |                                                                                                                                                                                                         
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (2) | Values of the stock awards are determined by multiplying the
    number of shares granted times the closing price of our
    class A common stock on the date of the award.                             
|
| | (3) | All Other Compensation in 2004 is comprised of our
    contributions to our 401(k) plan on behalf of the named
    executive officers, except as otherwise indicated.                                 
|
| | (4) | Represents loan forgiveness and imputed interest.                                                                                                                                                       
|
| | (5) | Represents $68,757 relating to loan forgiveness and imputed
    interest and $538 related to allowances for relocation expenses.                                                                        
|
| | (6) | Represents $79,715 in allowances for relocation expenses,
    $73,756 relating to loan forgiveness and imputed interest and
    $24,519 in value for Mr. Salehs use of corporate
    aviation services.
|
| | (7) | Represents allowances for housing expenses.                                                                                                                                                             



|    |                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------
|(8) | Represents an allowance for relocation expenses incurred by
    Mr. Kennedy in 2001 but not reimbursed until 2004.



| |     |                                                                                                                                                                                                                                                                                                                                                                                 
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (9) | On August 11, 2003, Mr. Donahue was granted 1,000,000
    deferred shares, which vest ratably on each of the first three
    anniversaries of the July 1, 2003 effective date of his
    employment agreement. The value of the unvested shares covered
    by Mr. Donahues deferred stock award as of
    December 31, 2004 was $20,006,647 (666,666 shares times
    $30.01).



|     |                                                                                                                                                                                                                                                                                                                       
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | On April 1, 2004, Mr. Kelly was granted 70,000
    deferred shares, which vest ratably on each of the first three
    anniversaries of the grant date. The value of the unvested
    shares covered by Mr. Kellys deferred stock award as
    of December 31, 2004 was $2,100,700 (70,000 shares times
    $30.01).  
|    
|(11) | On February 13, 2003, Mr. Kelly was granted 50,000
    deferred shares, which vest ratably on each of the first two
    anniversaries of the grant date. The value of the unvested
    shares covered by Mr. Kellys deferred stock award as
    of December 31, 2004 was $750,250 (25,000 shares times
    $30.01).  
|    
|(12) | On April 1, 2004, Mr. Saleh was granted 70,000
    deferred shares, which vest ratably on each of the first three
    anniversaries of the grant date. The value of the unvested
    shares covered by Mr. Salehs deferred stock award as
    of December 31, 2004 was $2,100,700 (70,000 shares times
    $30.01).  
|    
|(13) | On February 13, 2003, Mr. Saleh was granted 50,000
    deferred shares, which vest ratably on each of the first two
    anniversaries of the grant date. The value of the unvested
    shares covered by Mr. Salehs deferred stock award as
    of December 31, 2004 was $750,250 (25,000 shares times
    $30.01).  
|    
|(14) | On September 19, 2002, Mr. Saleh was granted 100,000
    deferred shares, which vested ratably on each of the first two
    anniversaries of the grant date.                                                                                                                                                          
|    
|(15) | On April 1, 2004, Mr. West was granted 30,000 deferred
    shares, which vest ratably on each of the first three
    anniversaries of the grant date. The value of the unvested
    shares covered by Mr. Wests deferred stock award as
    of December 31, 2004 was $900,300 (30,000 shares times
    $30.01).      
|    
|(16) | On April 1, 2004, Mr. Kennedy was granted 20,000
    deferred shares, which vest ratably on each of the first three
    anniversaries of the grant date. The value of the unvested
    shares covered by Mr. Kennedys deferred stock award
    as of December 31, 2004 was $600,200 (20,000 shares
    times $30.01).
|    
|(17) | Pursuant to the long-term incentive plan, the compensation
    committee elected to pay 50% of this payout in cash and 50% in
    shares of deferred stock, half of which vested on June 30,
    2004 and the other half of which vested on December 31,
    2004.                                                    

6



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##### 



2004 Option Grants






| |                                  
| | ---------------------------------
| | Option Grants in Last Fiscal Year

|                     |  |                   |         |     |               |  |      |           |  |  |            |  |            |        |          |  |  |  |           | 
|-------------------- |  | ----------------- | ------- | --- | ------------- |  | ---- | --------- |  |  | ---------- |  | ---------- | ------ | -------- |  |  |  | --------- | 
|                     |  | Individual Grants |         |     |              
|                     |  |                   |         |     |              
|                     |  | Number of         |         |     | Percent of    |  |      |           |  | 
|                     |  | Securities        |         |     | Total Options |  |      | Exercise  |  |  |            |  | Grant Date |       
|                     |  | Underlying        |         |     | Granted to    |  |      | or Base   |  |  |            |  | Present    |       
|                     |  | Options           |         |     | Employees in  |  |      | Price     |  |  | Expiration |  |            | Value  |         
|Name                 |  | Granted(#)        |         |     | 2004          |  |      | ($/Share) |  |  | Date       |  |            | ($)(1) |         
|                     |  |                   |         |     |               |  |      |           |  |  |            |  |            |        |         
|Timothy M. Donahue   |  |                   | 250,000 | (2) |               |  | 1.04 | %         |  |  | 27.34      |  |            |        | 2/11/14  |  |  |  | 4,552,186 | 
|Thomas N. Kelly, Jr. |  |                   | 200,000 | (3) |               |  | 0.83 | %         |  |  | 27.34      |  |            |        | 2/11/14  |  |  |  | 3,641,749 | 
|                     |  |                   | 15,000  | (4) |               |  | 0.06 | %         |  |  | 23.13      |  |            |        | 5/28/14  |  |  |  | 232,550   | 
|                     |  |                   | 15,000  | (5) |               |  | 0.06 | %         |  |  | 23.19      |  |            |        | 8/31/14  |  |  |  | 229,738   | 
|                     |  |                   | 15,000  | (6) |               |  | 0.06 | %         |  |  | 28.46      |  |            |        | 11/30/14 |  |  |  | 278,753   | 
|Paul N. Saleh        |  |                   | 175,000 | (3) |               |  | 0.73 | %         |  |  | 27.34      |  |            |        | 2/11/14  |  |  |  | 3,186,530 | 
|                     |  |                   | 15,000  | (4) |               |  | 0.06 | %         |  |  | 23.13      |  |            |        | 5/28/14  |  |  |  | 232,550   | 
|                     |  |                   | 15,000  | (5) |               |  | 0.06 | %         |  |  | 23.19      |  |            |        | 8/31/14  |  |  |  | 229,738   | 
|                     |  |                   | 15,000  | (6) |               |  | 0.06 | %         |  |  | 28.46      |  |            |        | 11/30/14 |  |  |  | 278,753   | 
|Barry J. West        |  |                   | 95,000  | (3) |               |  | 0.39 | %         |  |  | 27.34      |  |            |        | 02/11/14 |  |  |  | 1,729,831 | 
|                     |  |                   | 15,000  | (4) |               |  | 0.06 | %         |  |  | 23.13      |  |            |        | 05/28/14 |  |  |  | 232,550   | 
|                     |  |                   | 15,000  | (5) |               |  | 0.06 | %         |  |  | 23.19      |  |            |        | 08/31/14 |  |  |  | 229,738   | 
|                     |  |                   | 15,000  | (6) |               |  | 0.06 | %         |  |  | 28.46      |  |            |        | 11/30/14 |  |  |  | 278,753   | 
|Leonard J. Kennedy   |  |                   | 70,000  | (3) |               |  | 0.29 | %         |  |  | 27.34      |  |            |        | 2/11/14  |  |  |  | 1,274,612 | 
|                     |  |                   | 10,000  | (4) |               |  | 0.04 | %         |  |  | 23.13      |  |            |        | 5/28/14  |  |  |  | 155,034   | 
|                     |  |                   | 10,000  | (5) |               |  | 0.04 | %         |  |  | 23.19      |  |            |        | 8/31/14  |  |  |  | 153,159   | 
|                     |  |                   | 10,000  | (6) |               |  | 0.04 | %         |  |  | 28.46      |  |            |        | 11/30/14 |  |  |  | 185,836   | 






|    |                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The fair market value of each option grant is estimated on the
    date of grant using the Black-Scholes option pricing model with
    the assumptions below.

|         |  |             |       |   |               |  |      |               |  |  |                |  |  |  |      |  
|-------- |  | ----------- | ----- | - | ------------- |  | ---- | ------------- |  |  | -------------- |  |  |  | ---- | -
|         |  | Expected    |       |   |               |  |      |               | 
|         |  | Stock Price |       |   | Risk-free     |  |      | Expected      |  |  | Expected       | 
|Date     |  | Volatility  |       |   | Interest Rate |  |      | Life in Years |  |  | Dividend Yield | 
|         |  |             |       |   |               |  |      |               |  |  |                | 
|2/11/04  |  |             | 81.60 | % |               |  | 3.13 | %             |  |  | 5              |  |  |  | 0.00 | %
|5/28/04  |  |             | 81.10 | % |               |  | 3.94 | %             |  |  | 5              |  |  |  | 0.00 | %
|8/31/04  |  |             | 80.10 | % |               |  | 3.43 | %             |  |  | 5              |  |  |  | 0.00 | %
|11/30/04 |  |             | 78.30 | % |               |  | 3.70 | %             |  |  | 5              |  |  |  | 0.00 | %



|    |                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------
|(2) | These options were granted on February 11, 2004 and vest in
    equal yearly installments over a two-year period from the date
    of grant.  
|   
|(3) | These options were granted on February 11, 2004 and vest in
    equal monthly installments over a four-year period from the date
    of grant.
|   
|(4) | These options were granted on May 28, 2004 and vest in
    equal monthly installments over a four-year period from the date
    of grant.     
|   
|(5) | These options were granted on August 31, 2004 and vest in
    equal monthly installments over a four-year period from the date
    of grant.  
|   
|(6) | These options were granted on November 30, 2004 and vest in
    equal monthly installments over a four-year period from the date
    of grant.

7



---



##### 





2004 Option Exercises and Long-Term Performance Plan






| |                                                                                      
| | -------------------------------------------------------------------------------------
| | Aggregated Option Exercises in Last Fiscal Year and Fiscal
    Year-end Option Values

|                     |  |              |         |  |              |                        |              |             |                         |                        |               |  |  |             |           |  |               |  |            |  |  |  |            | 
|-------------------- |  | ------------ | ------- |  | ------------ | ---------------------- | ------------ | ----------- | ----------------------- | ---------------------- | ------------- |  |  | ----------- | --------- |  | ------------- |  | ---------- |  |  |  | ---------- | 
|                     |  |              |         |  |              | Number of Securities   |              |             |                        
|                     |  |              |         |  |              | Underlying Unexercised |              |             | Value of Unexercised    |                       
|                     |  |              |         |  |              | Options at Fiscal      |              |             | In-the-Money Options at |                       
|                     |  | Shares       |         |  |              |                        | Year-end (#) |             |                         | Fiscal Year-end ($)(1) |              
|                     |  | Acquired on  |         |  | Value        |                        |              |             |                         |                        |               | 
|Name                 |  | Exercise (#) |         |  | Realized ($) |                        |              | Exercisable |                         |                        | Unexercisable |  |  | Exercisable |           |  | Unexercisable | 
|                     |  |              |         |  |              |                        |              |             |                         |                        |               |  |  |             |           |  |               | 
|Timothy M. Donahue   |  |              | 950,000 |  |              |                        | 19,047,104   |             |                         |                        | 3,117,049     |  |  |             | 1,082,951 |  |               |  | 44,489,798 |  |  |  | 19,236,510 | 
|Thomas N. Kelly, Jr. |  |              | 302,700 |  |              |                        | 3,372,294    |             |                         |                        | 321,347       |  |  |             | 507,615   |  |               |  | 1,204,574  |  |  |  | 6,307,638  | 
|Paul N. Saleh        |  |              |        |  |              |                        |             |             |                         |                        | 770,515       |  |  |             | 419,485   |  |               |  | 15,608,600 |  |  |  | 5,473,600  | 
|Barry J. West        |  |              | 154,616 |  |              |                        | 3,032,914    |             |                         |                        | 500,414       |  |  |             | 255,738   |  |               |  | 5,038,763  |  |  |  | 3,088,332  | 
|Leonard J. Kennedy   |  |              | 72,855  |  |              |                        | 1,501,974    |             |                         |                        | 192,500       |  |  |             | 182,626   |  |               |  | 1,729,214  |  |  |  | 2,204,877  | 






|    |                                                                                                                                                                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The value of the in-the-money options is based on the closing
    price of our class A common stock as reported by the Nasdaq
    National Market on December 31, 2004 ($30.01), less the
    total exercise price, multiplied by the total number of shares
    underlying the options.

Long-Term Performance PlanAwards in Last Fiscal Year


|                     |  |                   |   |                |                  |  |                                        |                        |  |  |            |  |  |             |           |  |  |  |           | 
|-------------------- |  | ----------------- | - | -------------- | ---------------- |  | -------------------------------------- | ---------------------- |  |  | ---------- |  |  | ----------- | --------- |  |  |  | --------- | 
|                     |  |                   |   | Performance or |                  |  | Current and Future Payments Made Under |                       
|                     |  | Number of Shares, |   |                | Other Period     |  |                                        | Prior Price-based Plan | 
|                     |  | Units or Other    |   |                | Until Maturation |  |                                        |                        | 
|Name                 |  | Rights (#)        |   |                | or Payment       |  |                                        | Threshold ($)          |  |  | Target ($) |  |  | Maximum ($) |          
|                     |  |                   |   |                |                  |  |                                        |                        |  |  |            |  |  |             |          
|Timothy M. Donahue   |  |                   |  |                |                  |  | 12/31/05                               |                        |  |  | 2,160,000  |  |  |             | 2,700,000 |  |  |  | 5,400,000 | 
|Thomas N. Kelly, Jr. |  |                   |  |                |                  |  | 12/31/05                               |                        |  |  | 1,040,000  |  |  |             | 1,300,000 |  |  |  | 2,600,000 | 
|Paul N. Saleh        |  |                   |  |                |                  |  | 12/31/05                               |                        |  |  | 880,000    |  |  |             | 1,100,000 |  |  |  | 2,200,000 | 
|Barry J. West        |  |                   |  |                |                  |  | 12/31/05                               |                        |  |  | 648,000    |  |  |             | 810,000   |  |  |  | 1,620,000 | 
|Leonard J. Kennedy   |  |                   |  |                |                  |  | 12/31/05                               |                        |  |  | 540,000    |  |  |             | 675,000   |  |  |  | 1,350,000 | 



8



---



##### 



Employment Agreements




| |            
| | -----------
| | Mr. Donahue











9



---



##### 







| |                               
| | ------------------------------
| | Other Named Executive Officers



|                     |  |             |         |      |                             |  |     |                       |  |  |         | 
|-------------------- |  | ----------- | ------- | ---- | --------------------------- |  | --- | --------------------- |  |  | ------- | 
|                     |  |             |         | 2004 |                             |  |    
|                     |  | Minimum     |         |      | Minimum Annual Target Bonus |  |     |                      
|Name                 |  | Base Salary |         |      | (as a percentage of salary) |  |     | Deferred Share Awards | 
|                     |  |             |         |      |                             |  |     |                       | 
|Thomas N. Kelly, Jr. |  | $           | 600,000 |      |                             |  | 100 | %                     |  |  | 200,000 | 
|Paul N. Saleh        |  | $           | 520,000 |      |                             |  | 100 | %                     |  |  | 200,000 | 
|Barry J. West        |  | $           | 364,000 |      |                             |  | 60  | %                     |  |  | 90,000  | 
|Leonard J. Kennedy   |  | $           | 416,000 |      |                             |  | 75  | %                     |  |  | 60,000  | 





10



---



##### 





Change of Control Retention Bonus and Severance Pay Plan






|         |                                                                                                    
|-------- | ---------------------------------------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management and Related Stockholder Matters.



|                         |  |                          |                      |  |                      |  |           |             |  |  |   | 
|------------------------ |  | ------------------------ | -------------------- |  | -------------------- |  | --------- | ----------- |  |  | - | 
|                         |  | Title of Class of Nextel |                      |  | Amount and Nature of |  |           | Approximate | 
|Name of Beneficial Owner |  | Capital Stock            |                      |  | Beneficial Ownership |  |           | % of Class  | 
|                         |  |                          |                      |  |                      |  |           |             | 
|Keith J. Bane            |  |                          | Class A common stock |  |                      |  | 14,810    | (1)         |  |  | * | 
|William E. Conway, Jr.   |  |                          | Class A common stock |  |                      |  | 1,719,987 | (2)         |  |  | * | 
|Timothy M. Donahue       |  |                          | Class A common stock |  |                      |  | 4,238,815 | (3)         |  |  | * | 
|Frank M. Drendel         |  |                          | Class A common stock |  |                      |  | 231,184   | (4)         |  |  | * | 
|V. Janet Hill            |  |                          | Class A common stock |  |                      |  | 130,265   | (5)         |  |  | * | 
|William E. Kennard       |  |                          | Class A common stock |  |                      |  | 112,960   | (6)         |  |  | * | 
|Morgan E. OBrien        |  |                          | Class A common stock |  |                      |  | 1,005,268 | (7)         |  |  | * | 
|Stephanie M. Shern       |  |                          | Class A common stock |  |                      |  | 30,811    | (8)         |  |  | * | 
|Thomas N. Kelly, Jr.     |  |                          | Class A common stock |  |                      |  | 482,348   | (9)         |  |  | * | 
|Paul N. Saleh            |  |                          | Class A common stock |  |                      |  | 1,113,936 | (10)        |  |  | * | 
|Barry J. West            |  |                          | Class A common stock |  |                      |  | 597,044   | (11)        |  |  | * | 
|Leonard J. Kennedy       |  |                          | Class A common stock |  |                      |  | 253,476   | (12)        |  |  | * | 

11



---



##### 



|                                                             |  |                          |                      |  |                      |  |             |             |  |  |      |      
|------------------------------------------------------------ |  | ------------------------ | -------------------- |  | -------------------- |  | ----------- | ----------- |  |  | ---- | -----
|                                                             |  | Title of Class of Nextel |                      |  | Amount and Nature of |  |             | Approximate | 
|Name of Beneficial Owner                                     |  | Capital Stock            |                      |  | Beneficial Ownership |  |             | % of Class  | 
|                                                             |  |                          |                      |  |                      |  |             |             | 
|All directors and executive officers as a group (14 persons) |  |                          | Class A common stock |  |                      |  | 10,306,338  | (13)        |  |  | *    |      
|5% Stockholders:                                             |  |                          |                      |  |                      |  |             |             |  |  |      |      
|Motorola, Inc                                                |  |                          | Class A common stock |  |                      |  | 77,190,768  | (14)        |  |  | 6.9  | %(15)
|1303 East Algonquin Road                                     |  |                          | Class B common stock |  |                      |  | 29,660,000  |             |  |  | 100  | %    
|Schaumburg, Illinois 60196                                   |  |                          |                      |  |                      |  |             |             |  |  |      |      
|FMR Corp.                                                    |  |                          | Class A common stock |  |                      |  | 120,257,070 | (16)        |  |  | 11.1 | %    
|83 Devonshire Street                                         |  |                          |                      |  |                      |  |             |             |  |  |      |      
|Boston, Massachusetts 02109                                  |  |                          |                      |  |                      |  |             |             |  |  |      |      
|Legg Mason                                                   |  |                          | Class A common stock |  |                      |  | 110,356,654 | (17)        |  |  | 10.2 | %    
|100 Light Street                                             |  |                          |                      |  |                      |  |             |             |  |  |      |      
|Baltimore, Maryland 21202                                    |  |                          |                      |  |                      |  |             |             |  |  |      |      
|Wellington Management Company, LLP                           |  |                          | Class A common stock |  |                      |  | 57,897,526  | (18)        |  |  | 5.4  | %    
|75 State Street                                              |  |                          |                      |  |                      |  |             |             |  |  |      |      
|Boston, Massachusetts 02109                                  |  |                          |                      |  |                      |  |             |             |  |  |      |      






| |   |                            
| | - | ---------------------------
| | * | Less than one percent (1%).



| |     |                                                                                                                                                                                                                                                                                                                  
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | Includes 1,310 deferred shares that are subject to forfeiture
    until they vest and 12,500 shares of class A common stock
    obtainable upon exercise of options.                                                                                                                                             
|
| | (2) | Includes 81,085 shares of class A common stock held through
    various entities with respect to which Mr. Conway disclaims
    beneficial ownership, except to the extent of his pecuniary
    interest in these entities, and 1,007,554 shares of class A
    common stock obtainable upon exercise of options.
|
| | (3) | Includes 3,530,834 shares of class A common stock
    obtainable upon exercise of options.                                                                                                                                                                                                                       
|
| | (4) | Includes 2,183 deferred shares that are subject to forfeiture
    until they vest and 158,665 shares of class A common stock
    obtainable upon exercise of options.                                                                                                                                            
|
| | (5) | Includes 1,310 deferred shares that are subject to forfeiture
    until they vest and 123,054 shares of class A common stock
    obtainable upon exercise of options.                                                                                                                                            
|
| | (6) | Includes 2,183 deferred shares that are subject to forfeiture
    until they vest and 108,776 shares of class A common stock
    obtainable upon exercise of options.                                                                                                                                            
|
| | (7) | Includes 2,183 deferred shares that are subject to forfeiture
    until they vest and 563,223 shares of class A common stock
    obtainable upon exercise of options.                                                                                                                                            
|
| | (8) | Includes 1,310 deferred shares that are subject to forfeiture
    until they vest and 22,500 shares of class A common stock
    obtainable upon exercise of options.                                                                                                                                             
|
| | (9) | Includes 23,333 deferred shares that are subject to forfeiture
    until they vest and 426,041 shares of class A common stock
    obtainable upon exercise of options.                                                                                                                                           



|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | Includes 23,333 deferred shares that are subject to forfeiture
    until they vest and 887,816 shares of class A common stock
    obtainable upon exercise of options.                                                                                                                                                                                                                                                                                                                                                           
|    
|(11) | Includes 10,000 deferred shares that are subject to forfeiture
    until they vest and 558,339 shares of class A common stock
    obtainable upon exercise of options.                                                                                                                                                                                                                                                                                                                                                           
|    
|(12) | Includes 6,666 deferred shares that are subject to forfeiture
    until they vest and 236,518 shares of class A common stock
    obtainable upon exercise of options.                                                                                                                                                                                                                                                                                                                                                            
|    
|(13) | Includes 73,811 deferred shares that are subject to forfeiture
    until they vest and 7,990,086 shares of class A common
    stock obtainable upon exercise of options.                                                                                                                                                                                                                                                                                                                                                         
|    
|(14) | According to the Schedule 13D filed on December 20,
    2004 by Motorola, comprised of (a) 47,530,768 shares of
    class A common stock beneficially owned by Motorola and
    (b) 29,660,000 shares of class B common stock
    beneficially owned by Motorola.                                                                                                                                                                                                                                                                
|    
|(15) | Assuming conversion of the class B common stock held by
    Motorola into class A common stock.                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    
|(16) | According to the Schedule 13G filed on February 14,
    2005 by FMR Corp., on behalf of itself, and certain of its
    subsidiaries, Edward C. Johnson, III and Abigail P. Johnson,
    includes 120,257,070 shares of class A common stock
    including shares attributable to the assumed conversion of
    various amounts of our convertible debt and preferred stock, and
    the reporting persons have sole voting power with respect to
    23,290,114 shares and sole dispositive power with respect to all
    shares.
|    
|(17) | According to the Schedule 13G filed on February 15,
    2005 by Legg Mason Funds Management, Inc., Legg Mason Capital
    Management, Inc., LMM, LLC and Legg Mason Focus Capital, Inc.,
    represents 72,228,829                                                                                                                                                                                                                                                                                                               

12



---



##### 



|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     | shares of class A common stock
    as to which Legg Mason Funds Management, Inc. has shared voting
    and dispositive power, 35,761,200 shares of class A common
    stock as to which Legg Mason Capital Management, Inc. has shared
    voting and dispositive power, 2,300,000 shares of class A
    common stock as to which LMM, LLC has shared voting and
    dispositive power and 96,625 shares of class A common stock
    as to which Legg Mason Focus Capital, Inc. has shared voting and
    dispositive power.
|    
|(18) | According to Schedule 13G
    filed on February 14, 2005 by Wellington Management
    Company, LLP, it and its subsidiary, Wellington
    Trust Company, have shared voting power with respect to
    36,507,286 of such shares and shared dispositive power with
    respect to all shares.                                                                                                                                                                                                                                

Securities Authorized for Issuance under Equity Compensation
Plans


Equity Compensation Plan Information


|                                                           |  |                      |            |     |                      |                      |                         |                           |  |  |            | 
|---------------------------------------------------------- |  | -------------------- | ---------- | --- | -------------------- | -------------------- | ----------------------- | ------------------------- |  |  | ---------- | 
|                                                           |  |                      |            |     |                      | Number of Securities |                        
|                                                           |  | Number of Securities |            |     |                      |                      | Remaining Available for |                          
|                                                           |  | to be Issued         |            |     | Weighted-average     |                      |                         | Future Issuance Under     | 
|                                                           |  | Upon Exercise of     |            |     | Exercise Price of    |                      |                         | Equity Compensation Plans | 
|                                                           |  | Outstanding Options, |            |     | Outstanding Options, |                      |                         | (Excluding Securities     | 
|                                                           |  | Warrants and Rights  |            |     | Warrants and Rights  |                      |                         | Reflected in Column (a))  | 
|Plan Category                                              |  | (a)                  |            |     | (b)                  |                      |                         | (c)                       | 
|                                                           |  |                      |            |     |                      |                      |                         |                           | 
|Equity compensation plans approved by security holders     |  |                      | 91,441,158 |     |                      | $                    | 23.94                   |                           |  |  | 13,185,685 | 
|Equity compensation plans not approved by security holders |  |                      | 212        | (1) |                      |                      | 7.01                    |                           |  |  | N/A        | 
|                                                           |  |                      |            |     |                      |                      |                         |                           | 
|Total                                                      |  |                      | 91,441,370 |     |                      |                      |                         |                           |  |  | 13,185,685 | 
|                                                           |  |                      |            |     |                      |                      |                         |                           | 






|    |                                                                                                                                           
|--- | ------------------------------------------------------------------------------------------------------------------------------------------
|(1) | These shares are issuable under an equity compensation plan
    assumed in connection with our acquisition of Dial Page, Inc. in
    1996.



|         |                                                
|-------- | -----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions.

Motorola








13



---



##### 





NII Holdings










Nextel Partners






Loan Transaction






|         |                                        
|-------- | ---------------------------------------
|Item 14. | Principal Accountant Fees and Services.



Audit Fees.


Audit-Related Fees.


Tax Fees.


All Other Fees.


14



---



##### 







15



---



##### 



SIGNATURES






| |                                                   
| | --------------------------------------------------
| | NEXTEL COMMUNICATIONS, INC.                       
|
| | By: /s/ PAUL N. SALEH                             
| |                                                   
| | Paul N. Saleh                                     
| | Executive Vice President & Chief Financial Officer



16



---



##### 



Exhibit Index


|        |    |             |  |                                        
|------- | -- | ----------- |  | ---------------------------------------
|Exhibit |    |            
|Number  |    | Description
|        |    |            
|        | 31 | .1          |  | Rule 13a-14(a)/15d-14(a) Certification.
|        | 31 | .2          |  | Rule 13a-14(a)/15d-14(a) Certification.

17