Sprint - Nextel 2011 Annual Report Download - page 101

Table of Contents
SPRINT NEXTEL CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Treasury Shares
Shares of common stock repurchased by us are recorded at cost as treasury shares and result in a reduction of shareholders' equity. We reissue treasury shares
as part of our shareholder approved stock-based compensation programs, as well as upon conversion of outstanding securities that are convertible into common stock.
When shares are reissued, we determine the cost using the FIFO method.
Dividends
We did not declare any dividends on our common shares in 2011, 2010, or 2009. We are currently restricted from paying cash dividends by the terms of our
revolving bank credit facility as described in note 7.
Accumulated Other Comprehensive Loss
The components of accumulated other comprehensive loss, net of tax are as follows:
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 27 million, 30 million, and 28 million shares as of December 31, 2011, 2010, and 2009, respectively. All such potentially dilutive shares
were antidilutive for 2011, 2010 and 2009 and, therefore, have no effect on our determination of dilutive weighted average number of shares outstanding.
Sprint operates two reportable segments: Wireless and Wireline.
F-34
As of December 31,
2011 2010
(in millions)
Unrecognized net periodic pension and postretirement benefit cost $ (830) $ (536)
Unrealized net gains related to investments 7 5
Foreign currency translation adjustments 31 29
Accumulated other comprehensive loss $ (792) $ (502)
Note 15. Se
g
ments
• Wireless primarily includes retail, wholesale and affiliate revenue from a wide array of wireless voice and data transmission services and equipment
revenue from 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 services and use our back office systems and network assets in support of
their telephone service provided over cable facilities primarily to residential end-user subscribers.