Sprint - Nextel 2005 Annual Report Download - page 125
Download and view the complete annual report
Please find page 125 of the 2005 Sprint - Nextel annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115 -
116 -
117 -
118 -
119 -
120 -
121 -
122 -
123 -
124 -
125 -
126 -
127 -
128 -
129 -
130 -
131 -
132 -
133 -
134 -
135 -
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
 |
 |
SPRINT NEXTEL CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
acquisition by RCI, we accounted for our investment in Call-Net as an equity method investment carried at a zero
basis with previously recognized carry-over losses. The RCI stock received in exchange was recorded at fair
value as an equity security investment and a gain of $18 million was recognized. Subsequent changes in the value
of this investment have been recorded in other comprehensive income.
Combined, unaudited, summarized financial information as reported by the investees accounted for using the
equity method was as follows:
Year Ended December 31,
2005 2004 2003
(in millions)
Results of operations
Net operating revenues ........................................... $ 3,238 $ 1,244 $ 831
Operating income (loss) .......................................... 349 (181) (279)
Net income (loss) ............................................... 502 (206) (255)
Equity in earnings (losses) of unconsolidated subsidiaries ............... $ 110 $ (39) $ (77)
Financial position
Current assets .................................................. $ 845 $ 239 $ 260
Other assets .................................................... 1,712 465 480
Total assets .................................................... $ 2,557 $ 704 $ 740
Current liabilities ............................................... $ 568 $ 448 $ 294
Other liabilities ................................................. 1,742 267 337
Total liabilities ................................................. $ 2,310 $ 715 $ 631
The carrying amount of our investment in Nextel Partners exceeds the amount of the underlying equity in net
assets by $2.1 billion due to purchase price accounting applied at the time of the Sprint-Nextel merger. This
difference is principally related to customer relationships, spectrum licenses and goodwill. The customer
relationship portion is being amortized over seven years, using the sum of the years digits’ method. The portion
related to spectrum licenses and goodwill is not being amortized.
Note 6. Fair Value of Financial Instruments
We have determined the estimated fair values of financial instruments using available market information and
appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to
develop fair value estimates. As a result, the estimates presented below are not necessarily indicative of the
amounts that we could realize or be required to pay in a current market exchange. The use of different market
assumptions, as well as estimation methodologies, may have a material effect on the estimated fair value
amounts.
F-30