Sprint - Nextel 2008 Annual Report Download - page 107

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SPRINT NEXTEL CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Wireless Wireline
Corporate,
Other and
Eliminations Consolidated
(in millions)
2007
Net operating revenues ................. $34,698 $ 5,479 $ (31) $ 40,146
Inter-segment revenues(1) ............... 2 984 (986) —
Total segment operating expenses(3) ...... (24,786) (5,389) 829 (29,346)
Segment earnings ..................... $ 9,914 $ 1,074 $ (188) 10,800
Less:
Depreciation and amortization ....... (8,933)
Goodwill impairment .............. (29,649)
Other, net(2) ...................... (958)
Operating loss ........................ (28,740)
Interest expense ...................... (1,433)
Equity in losses of unconsolidated
investments, net .................... $ (3) (3)
Other income, net ..................... 401
Loss before income taxes ............... $(29,775)
Other Information Wireless Wireline
Corporate,
Other and
Eliminations Consolidated
(in millions)
2009
Capital expenditures(4) ................. $ 1,149 $ 267 $ 187 $ 1,603
Total assets(4) ........................ 42,338 2,987 10,099 55,424
2008
Capital expenditures(4) ................. $ 2,386 $ 522 $ 974 $ 3,882
Total assets(4) ........................ 46,977 3,494 8,079 58,550
2007
Capital expenditures(4) ................. $ 5,067 $ 567 $ 688 $ 6,322
Total assets(4) ........................ 55,065 3,629 5,601 64,295
(1) Inter-segment revenues consist primarily of wireline services provided to the Wireless segment for resale
to wireless subscribers.
(2) Other, net consists primarily of severance, exit costs and asset impairments offset by gains from other asset
dispositions and exchanges. Merger and integration expenses of $130 million and $516 million are also
included in Other, net in 2008 and 2007, respectively, representing costs primarily incurred to integrate
systems, processes and networks related to the Sprint merger with Nextel. See Note 9 for additional
information on severance, exit costs and asset impairments.
(3) Included in the Corporate, Other and Eliminations results for 2008 and 2007 are operating expenses of
$354 million and $194 million, respectively, related to the next-generation broadband wireless network
that was contributed to Clearwire in a transaction that closed on November 28, 2008. Refer to note 4 for
more information.
(4) Corporate assets are not allocated to the operating segments and consist primarily of cash and cash
equivalents, the corporate headquarters campus, our equity method investment in Clearwire, other assets
managed at a corporate level and assets that were related to our 4G wireless broadband business that was
subsequently contributed to Clearwire. Refer to note 4 for more information. Corporate capital
expenditures include various administrative assets and assets that were contributed to Clearwire.
Operating expenses related to corporate assets are allocated to each segment.
F-41