Sprint - Nextel 2005 Annual Report Download - page 101

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SPRINT NEXTEL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Years Ended December 31, 2005, 2004 and 2003
2005 2004 2003
(in millions, except per share amounts)
Net operating revenues ....................................... $ 34,680 $ 27,428 $ 26,197
Operating expenses
Costs of services and products (exclusive of depreciation included
below) .................................................. 14,384 11,576 10,592
Selling, general and administrative ............................. 10,076 7,704 7,674
Restructuring and asset impairments ............................ 125 3,731 1,951
Depreciation ............................................... 4,933 4,713 4,972
Amortization ............................................... 1,336 7 1
30,854 27,731 25,190
Operating income (loss) ....................................... 3,826 (303) 1,007
Other income (expense)
Interest expense ............................................ (1,351) (1,282) (1,437)
Interest income ............................................. 238 61 51
Equity in earnings (losses) of unconsolidated subsidiaries, net ........ 110 (39) (77)
Loss on retirement of debt .................................... — (60) (21)
Other, net ................................................. 83 20 (27)
(920) (1,300) (1,511)
Income (loss) from continuing operations before income taxes ....... 2,906 (1,603) (504)
Income tax (expense) benefit ................................... (1,105) 591 212
Income (loss) from continuing operations ........................ 1,801 (1,012) (292)
Discontinued operations, net .................................. — — 1,324
Cumulative effect of change in accounting principle, net ............ (16) — 258
Net income (loss) ............................................. 1,785 (1,012) 1,290
Earnings allocated to participating securities ...................... — (9) —
Preferred stock dividends ..................................... (7) (7) (7)
Income (loss) available to common shareholders .................. $ 1,778 $ (1,028) $ 1,283
Basic earnings (loss) per common share
Continuing operations ....................................... $ 0.88 $ (0.71) $ (0.21)
Discontinued operations ...................................... — — 0.94
Cumulative effect of change in accounting principle ............... (0.01) — 0.18
Total ....................................................... $ 0.87 $ (0.71) $ 0.91
Basic weighted average common shares outstanding ............... 2,033 1,443 1,415
Diluted earnings (loss) per common share
Continuing operations ....................................... $ 0.87 $ (0.71) $ (0.21)
Discontinued operations ...................................... — — 0.94
Cumulative effect of change in accounting principle ............... — — 0.18
Total ....................................................... $ 0.87 $ (0.71) $ 0.91
Diluted weighted average common shares outstanding ............. 2,054 1,443 1,415
See accompanying Notes to the Consolidated Financial Statements.
F-6