Sprint - Nextel 2006 Annual Report Download - page 83

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SPRINT NEXTEL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
2006 2005 2004
Year Ended December 31,
(in millions, except per share amounts)
Net operating revenues....................................... $41,028 $28,789 $21,647
Operating expenses
Costs of services and products (exclusive of depreciation included
below) ................................................ 16,567 12,489 9,838
Selling, general and administrative ............................. 12,178 8,916 6,459
Severance, lease exit costs and asset impairments .................. 207 43 3,691
Depreciation.............................................. 5,738 3,864 3,651
Amortization ............................................. 3,854 1,336 7
38,544 26,648 23,646
Operating income (loss) ...................................... 2,484 2,141 (1,999)
Other income (expense)
Interest expense ........................................... (1,533) (1,294) (1,218)
Interest income............................................ 301 236 60
Equity in (losses) earnings of unconsolidated investees, net ........... (6) 107 (41)
Realized gain on sale or exchange of investments .................. 205 62 15
Other, net................................................ 32 39 (61)
(1,001) (850) (1,245)
Income (loss) from continuing operations before income taxes ........ 1,483 1,291 (3,244)
Income tax (expense) benefit .................................. (488) (470) 1,238
Income (loss) from continuing operations ........................ 995 821 (2,006)
Discontinued operations, net .................................. 334 980 994
Cumulative effect of change in accounting principle, net ............. — (16) —
Net income (loss) ........................................... 1,329 1,785 (1,012)
Earnings allocated to participating securities ...................... — — (9)
Preferred shares dividends ................................... (2) (7) (7)
Income (loss) available to common shareholders ................... $ 1,327 $ 1,778 $ (1,028)
Basic earnings (loss) per common share
Continuing operations. . ..................................... $ 0.34 $ 0.40 $ (1.40)
Discontinued operations ..................................... 0.11 0.48 0.69
Cumulative effect of change in accounting principle ................ — (0.01) —
Total ................................................. $ 0.45 $ 0.87 $ (0.71)
Basic weighted average common shares outstanding ................ 2,950 2,033 1,443
Diluted earnings (loss) per common share
Continuing operations. . ..................................... $ 0.34 $ 0.40 $ (1.40)
Discontinued operations ..................................... 0.11 0.48 0.69
Cumulative effect of change in accounting principle ................ — (0.01) —
Total ................................................. $ 0.45 $ 0.87 $ (0.71)
Diluted weighted average common shares outstanding .............. 2,972 2,054 1,443
See Notes to Consolidated Financial Statements.
F-6