Sprint - Nextel 2006 Annual Report Download - page 85

Download and view the complete annual report

Please find page 85 of the 2006 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.

Page out of 140

  • 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

SPRINT NEXTEL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(in millions)
Shares
(1)
Amount
Paid-in
Capital Shares Amount
Comprehensive
Income (Loss)
Retained
Earnings
(Deficit)
Accumulated
Other
Comprehensive
Loss Total
Common Shares Treasury Shares
Balance, January 1, 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,939 $2,844 $10,084 — $ — $ 906 $(721) $13,113
Comprehensive loss
Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(1,012) (1,012) (1,012)
Other comprehensive income (loss), net of tax
Additional minimum pension liability . . . . . . . . . . . . . . . . . . . . . . . (21)
Foreign currency translation adjustment . . . . . . . . . . . . . . . . . . . . . . 20
Unrealized holding gains on securities . . . . . . . . . . . . . . . . . . . . . . 21
Reclassification adjustment for realized gains on securities . . . . . . . . . . . (18)
Unrealized holding losses on qualifying cash flow hedges . . . . . . . . . . . (7)
Reclassification adjustments for losses on cash flow hedges . . . . . . . . . . 10
Other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 5
Comprehensive loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(1,007)
Issuance of common shares, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 106 1,855 1,961
Common shares dividends
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (183) (480) (663)
Preferred shares dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7) (7)
Share based compensation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 129
Conversion of PCS common shares into FON or voting common shares . . . . . . (518) — —
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) (5)
Balance, December 31, 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,475 2,950 11,873 — — (586) (716) 13,521
Comprehensive income
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,785 1,785 1,785
Other comprehensive income (loss), net of tax
Additional minimum pension liability . . . . . . . . . . . . . . . . . . . . . . . (59)
Foreign currency translation adjustment . . . . . . . . . . . . . . . . . . . . . . (9)
Unrealized holding gains on securities . . . . . . . . . . . . . . . . . . . . . . 64
Reclassification adjustment for realized gains on securities . . . . . . . . . . . (16)
Reclassification adjustments for losses on cash flow hedges . . . . . . . . . . 10
Other comprehensive loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10) (10) (10)
Comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,775
Common shares issued to Nextel shareholders . . . . . . . . . . . . . . . . . . . . . 1,452 2,829 32,816 35,645
Issuance of common shares, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 67 458 525
Common shares dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (518) (518)
Preferred shares dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7) (7)
Share-based compensation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . 302 302
Conversion of Nextel vested share-based awards upon merger . . . . . . . . . . . . 639 639
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 55
Balance, December 31, 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,961 5,846 46,136 — — 681 (726) 51,937
Cumulative effect of adopting SAB No. 108
(3)
. . . . . . . . . . . . . . . . . . . . . (50) (50)
Comprehensive income
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,329 1,329 1,329
Other comprehensive income (loss), net of tax
Unrecognized net periodic pension and other postretirement benefit cost . . . (17)
Foreign currency translation adjustment . . . . . . . . . . . . . . . . . . . . . . 9
Unrealized holding gains on securities . . . . . . . . . . . . . . . . . . . . . . 203
Reclassification adjustment for realized gains on securities . . . . . . . . . . . (288)
Unrealized holding losses on qualifying cash flow hedges . . . . . . . . . . . (148)
Reclassification adjustments for losses on cash flow hedges . . . . . . . . . . 157
Other comprehensive loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (84) (84) (84)
Comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,245
Issuance of common shares, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 56 324 (6) 95 (26) 449
Purchase of treasury shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 (1,643) (1,643)
Common shares dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (294) (294)
Preferred shares dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) (2)
Share-based compensation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . 354 354
Conversion of non-voting common shares to voting common shares . . . . . . . . (38) — (623) (38) 623 —
Accelerated vesting of Nextel share-based awards 51 51
Spin-off of local communications business . . . . . . . . . . . . . . . . . . . . . . . 401 662 1,063
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 21
Balance, December 31, 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,951 $5,902 $46,664 54 $ (925) $ 1,638 $(148) $53,131
(1) See note 16 for information regarding common shares, including information relating to the 2006 conversion of non-voting common shares and the 2004 con-
version of PCS common shares into voting common shares.
(2) In 2004, voting common shares dividends were charged against paid-in capital in the quarterly period in which retained earnings were in a deficit position.
(3) See note 17 for details of adoption of SAB No. 108.
See Notes to Consolidated Financial Statements.
F-8