Sprint - Nextel 2008 Annual Report Download - page 30

Item 6. Selected Financial Data
The 2009, 2008, 2007 and 2006 data presented below is not comparable to that of the prior periods
primarily as a result of the August 2005 Sprint-Nextel merger and the subsequent Nextel Partners, Inc., Virgin
Mobile USA, Inc. and PCS Affiliate acquisitions, as well as our November 2008 contribution of our next
generation wireless network to Clearwire. The acquired companies’ results of operations subsequent to their
acquisition dates are included in our consolidated financial statements. Embarq Corporation, our former local
segment, which was spun-off in 2006, is shown as discontinued operations for all periods prior to the spin-off.
We lost approximately 1.0 million retail wireless subscribers in 2009, 5.1 million in 2008 and 658,000 in 2007,
which caused the majority of the reduction in net operating revenues in those periods.
Year Ended December 31,
2009 2008 2007 2006 2005
(in millions, except per share amounts)
Results of Operations
Net operating revenues ............................ $32,260 $35,635 $ 40,146 $41,003 $ 28,771
Goodwill impairment .............................. — 963 29,649 — —
Depreciation and amortization ...................... 7,416 8,407 8,933 9,592 5,200
Operating (loss) income(1) .......................... (1,398) (2,642) (28,740) 2,484 2,141
(Loss) income from continuing operations(1) ........... (2,436) (2,796) (29,444) 995 821
Discontinued operations, net ........................ — — — 334 980
Cumulative effect of change in accounting principle,
net .......................................... — — — — (16)
(Loss) Earnings per Share and Dividends
Basic and diluted (loss) earnings per common share
Continuing operations(1) ......................... $ (0.84) $ (0.98) $ (10.24) $ 0.34 $ 0.40
Discontinued operations ....................... — — — 0.11 0.48
Cumulative effect of change in accounting
principle .................................. — — — — (0.01)
Dividends per common share(2) ...................... — — 0.10 0.10 0.30
Financial Position
Total assets ..................................... $55,424 $58,550 $ 64,295 $97,161 $102,760
Property, plant and equipment, net ................... 18,280 22,373 26,636 25,868 23,329
Intangible assets, net .............................. 23,462 22,886 28,139 60,057 49,307
Total debt, capital lease and financing obligations
(including equity unit notes) ...................... 21,061 21,610 22,130 22,154 25,014
Seventh series redeemable preferred shares ............ — — — — 247
Shareholders’ equity(3) ............................. 18,095 19,915 22,445 53,441 52,226
Cash Flow Data
Net cash provided by operating activities .............. $ 4,891 $ 6,179 $ 9,245 $10,055 $ 8,655
Capital expenditures .............................. 1,603 3,882 6,322 7,556 5,057
(1) In 2009, we recognized net charges of $389 million ($248 million after tax) primarily related to severance exit
costs and asset impairments other than goodwill. In 2008, we recorded net charges of $936 million ($586 million
after tax) primarily related to asset impairments other than goodwill, severance and exit costs, and merger and
integration costs. In 2007, we recognized net charges of $956 million ($590 million after tax) primarily related
to merger and integration costs, asset impairments other than goodwill, and severance and exit costs. In 2006,
we recognized net charges of $620 million ($381 million after tax) primarily related to merger and integration
costs, asset impairments, and severance and exit costs. In 2005, we recorded net charges of $723 million
($445 million after tax) primarily related to merger and integration costs, asset impairments, and severance and
hurricane-related costs.
(2) We did not declare any dividends on our common shares in 2009 and 2008. In the first and second quarter 2005,
a dividend of $0.125 per share was paid. In the third and fourth quarter 2005 and for each quarter of 2006 and
2007, the dividend was $0.025 per share.
(3) In completing a detailed reconciliation of net deferred tax liabilities in 2009, it was determined that net deferred
tax liabilities were overstated in prior periods. Previously reported shareholders’ equity has been increased by
$310 million as of December 31, 2008, 2007, and 2006 and increased by $289 million as of December 31, 2005
related to a reduction in deferred tax liabilities.
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