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Item 6. Selected Financial Data
The selected financial data presented below is not comparable for all periods presented primarily as a result of
transactions such as the acquisitons of Nextel Partners, Inc., Virgin Mobile USA, Inc. (Virgin Mobile) and Affiliates, as well as
the 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. The primary reason for the increase in
net operating revenues for 2010 was related to the additional subscribers obtained in our 2009 acquisitions and the 783,000
retail wireless subscribers added in 2010 which were partially offset by a decrease in revenue as a result of our losses of
subscribers in prior periods. 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.
Results of Operations
Net operating revenues
Goodwill impairment
Depreciation and amortization
Operating (loss) income(1)
(Loss) income from continuing operations(1)(2)
Discontinued operations, net
(Loss) Earnings per Share and Dividends
Basic and diluted (loss) earnings per common share
Continuing operations(1)(2)
Discontinued operations
Dividends per common share(3)
Financial Position
Total assets
Property, plant and equipment, net
Intangible assets, net
Total debt, capital lease and financing obligations
(including equity unit notes)
Shareholders' equity
Cash Flow Data
Net cash provided by operating activities
Capital expenditures
Year Ended December 31,
2010
(in millions, except per share amounts)
$ 32,563
—
6,248
(595)
(3,465)
—
$(1.16)
—
—
$ 51,654
15,214
22,704
20,191
14,546
$ 4,815
1,935
2009
$ 32,260
—
7,416
(1,398)
(2,436)
—
$(0.84)
—
—
$ 55,424
18,280
23,462
21,061
18,095
$ 4,891
1,603
2008
$ 35,635
963
8,407
(2,642)
(2,796)
—
$(0.98)
—
—
$ 58,550
22,373
22,886
21,610
19,915
$ 6,179
3,882
2007
$ 40,146
29,649
8,933
(28,740)
(29,444)
—
$(10.24)
—
0.10
$ 64,295
26,636
28,139
22,130
22,445
$ 9,245
6,322
2006
$ 41,003
—
9,592
2,484
995
334
$ 0.34
0.11
0.10
$ 97,161
25,868
60,057
22,154
53,441
$ 10,055
7,556
_______________
(1) In 2010, operating loss improved $803 million primarily due to the increase in net operating revenues of $303 million
as described above in addition to decreases in operating expenses of $500 million as a result of our cost cutting
initiatives in prior periods. 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.
(2) During 2010, the Company did not recognize significant tax benefits associated with federal and state net operating
losses generated during the period. As a result, the Company recognized an increase in the valuation allowance on
deferred tax assets affecting the income tax provision by approximately $1.4 billion and $281 million for the years
ended December 31, 2010 and 2009, respectively.
(3) We did not declare any dividends on our common shares in 2010, 2009 and 2008. In each quarter of 2007 and 2006, the
dividend was $0.025 per share.
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