Sprint - Nextel 2008 Annual Report Download - page 106

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SPRINT NEXTEL CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
We define segment earnings as wireless or wireline operating (loss) income before other segment
expenses such as depreciation, amortization, severance, exit costs, goodwill and asset impairments, other and
merger and integration expenses solely and directly attributable to the segment. Expenses and income items
excluded from segment earnings are managed at the corporate level. Transactions between segments are
generally accounted for based on market rates which we believe approximate fair value. Segment financial
information is as follows:
Statement of Operations Information Wireless Wireline
Corporate,
Other and
Eliminations Consolidated
(in millions)
2009
Net operating revenues ............... $27,786 $ 4,471 $ 3 $ 32,260
Inter-segment revenues(1) .............. — 1,158 (1,158) —
Total segment operating expenses ....... (22,588) (4,408) 1,143 (25,853)
Segment earnings .................... $ 5,198 $ 1,221 $ (12) 6,407
Less:
Depreciation and amortization ...... (7,416)
Other, net(2) .................... (389)
Operating loss ...................... (1,398)
Interest expense ..................... (1,450)
Equity in losses of unconsolidated
investments, net ................... $ (803) (803)
Other income, net .................... 157
Loss before income taxes .............. $ (3,494)
Statement of Operations Information Wireless Wireline
Corporate,
Other and
Eliminations Consolidated
(in millions)
2008
Net operating revenues ............... $30,427 $ 5,208 $ — $ 35,635
Inter-segment revenues(1) .............. — 1,124 (1,124) —
Total segment operating expenses(3) ..... (23,651) (5,157) 837 (27,971)
Segment earnings .................... $ 6,776 $ 1,175 $ (287) 7,664
Less:
Depreciation and amortization ...... (8,407)
Goodwill impairment ............. (963)
Other, net(2) .................... (936)
Operating loss ...................... (2,642)
Interest expense ..................... (1,362)
Equity in losses of unconsolidated
investments, net ................... $ (145) (145)
Other income, net .................... 89
Loss before income taxes .............. $ (4,060)
F-40