Sprint - Nextel 2005 Annual Report Download - page 156

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SPRINT NEXTEL CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(2) Revenues eliminated in consolidation consist primarily of local access charged to Long Distance by Local,
Long Distance services provided to Wireless for resale to Wireless customers and for internal business use,
caller ID services provided by Local to Wireless, handset purchases from Wireless and access to the
Wireless network.
Corporate assets are not allocated to the operating segments, and consist primarily of cash and cash equivalents,
the operational headquarters campus and other assets managed at a corporate level. Corporate capital
expenditures were incurred mainly for various administrative assets and improvements at our operational
headquarters campus. Operating expenses related to corporate assets are allocated to each segment.
(3) See note 8 for additional information.
(4) Operating expenses include $608 million of merger and integration costs primarily associated with the
Nextel merger and PCS Affiliate acquisitions and the anticipated spin-off of Embarq and have been
reflected as unallocated corporate selling, general and administrative expense.
In 2005, 2004 and 2003, more than 95% of our revenues was from services and equipment provided within the
United States.
More than 99% of our property, plant, and equipment are in the United States.
Net operating revenues by services and products were as follows:
Wireless
Long
Distance Local(1)
Corporate
and
Eliminations(2) Consolidated
(in millions)
2005
Wireless services ........................ $ 19,289 $ — $ — $ (29) $ 19,260
Wireless equipment ...................... 2,147 — — — 2,147
Voice .................................. — 4,213 4,335 (829) 7,719
Data ................................... — 1,632 983 (63) 2,552
Internet ................................ — 736 — (9) 727
Other .................................. 892 253 1,209 (79) 2,275
Total net operating revenues .............. $ 22,328 $ 6,834 $ 6,527 $ (1,009) $ 34,680
2004
Wireless services ........................ $ 12,529 $ — $ — $ (27) $ 12,502
Wireless equipment ...................... 1,510 — — — 1,510
Voice .................................. — 4,560 4,498 (768) 8,290
Data ................................... — 1,722 833 (71) 2,484
Internet ................................ — 793 — (12) 781
Other .................................. 608 252 1,090 (89) 1,861
Total net operating revenues .............. $ 14,647 $ 7,327 $ 6,421 $ (967) $ 27,428
2003
Wireless services ........................ $ 11,217 $ — $ — $ (17) $ 11,200
Wireless equipment ...................... 1,143 — — (8) 1,135
Voice .................................. — 4,999 4,654 (757) 8,896
Data ................................... — 1,853 730 (81) 2,502
Internet ................................ — 973 — (29) 944
Other .................................. 330 180 1,102 (92) 1,520
Total net operating revenues .............. $ 12,690 $ 8,005 $ 6,486 $ (984) $ 26,197
F-61