Sprint - Nextel 2010 Annual Report Download - page 88

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Accumulated Other Comprehensive Loss
The components of accumulated other comprehensive loss, net of tax are as follows:
Unrecognized net periodic pension and postretirement benefit cost
Unrealized net gains related to investments
Foreign currency translation adjustments
Accumulated other comprehensive loss
As of December 31,
2010
(in millions)
$(536)
5
29
$(502)
2009
$(397)
8
37
$(352)
Per Share Data
Basic loss per common share is calculated by dividing net loss by the weighted average number of common shares
outstanding during the period. Diluted earnings (loss) per common share adjusts basic earnings (loss) per common share,
computed using the treasury stock method, for the effects of potentially dilutive common shares, if the effect is not antidilutive.
Potentially dilutive common shares issuable under our equity-based compensation plans where the average market price
exceeded the exercise price were 30 million and 28 million shares as of December 31, 2010 and 2009, respectively. There were
no such shares as of December 31, 2008. All such potentially dilutive shares were antidilutive for 2010, 2009 and 2008 and,
therefore, have no effect on our determination of dilutive weighted average number of shares outstanding.
Note 14. Segments
Sprint operates two reportable segments: Wireless and Wireline.
• Wireless primarily includes retail and wholesale revenue from a wide array of wireless mobile telephone
and wireless data transmission services and the sale of wireless devices and accessories in the U.S.,
Puerto Rico and the U.S. Virgin Islands.
• Wireline primarily includes revenue from domestic and international wireline voice and data
communication services, including services to the cable multiple systems operators that resell our local
and long distance service and use our back office systems and network assets in support of their
telephone services provided over cable facilities.
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, 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. The Company generally re-establishes these rates at the beginning of each fiscal year. Over the past
several years, there has been an industry-wide trend of lower rates due to increased competition from other wireline and
wireless communications companies as well as cable and Internet service providers. Segment financial information is as
follows:
Table of Contents SPRINT NEXTEL CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
F-31