Sprint - Nextel 2011 Annual Report Download - page 28

Table of Contents
The selected financial data presented below is not comparable for all periods presented primarily as a result of transactions such as the acquisitions of Virgin
Mobile USA, Inc. (Virgin Mobile) in 2009 and Affiliates in 2007 and 2009, 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. The primary reason
for the increase in net operating revenues for 2011 as compared to the prior year was an increase in postpaid average revenue per subscriber and total retail wireless
subscribers net additions of 2.4 million. The 2010 increase in net operating revenues as compared to the prior year was primarily related to the total retail wireless
subscribers net additions of 783,000 and the additional subscribers obtained in our 2009 acquisitions. We lost approximately 1.0 million retail wireless subscribers in 2009
and 5.1 million in 2008, which caused the majority of the reduction in net operating revenues in those periods.
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Item 6. Selected Financial Data
Year Ended December 31,
2011 2010 2009 2008 2007
(in millions, except per share amounts)
Results of Operations
Net operating revenues $ 33,679 $ 32,563 $ 32,260 $ 35,635 $ 40,146
Goodwill impairment
—
—
—
963 29,649
Depreciation and amortization 4,858 6,248 7,416 8,407 8,933
Operating income (loss)(1) 108 (595) (1,398) (2,642) (28,740)
Net loss(1)(2) (2,890) (3,465) (2,436) (2,796) (29,444)
Loss per Share and Dividends
Basic and diluted loss per common share(1)(2) $ (0.96) $ (1.16) $ (0.84) $ (0.98) $ (10.24)
Dividends per common share(3)
—
—
—
—
0.10
Financial Position
Total assets $ 49,383 $ 51,654 $ 55,424 $ 58,550 $ 64,295
Property, plant and equipment, net 14,009 15,214 18,280 22,373 26,636
Intangible assets, net 22,428 22,704 23,462 22,886 28,139
Total debt, capital lease and financing obligations (including
equity unit notes) 20,274 20,191 21,061 21,610 22,130
Shareholders' equity 11,427 14,546 18,095 19,915 22,445
Cash Flow Data
Net cash provided by operating activities $ 3,691 $ 4,815 $ 4,891 $ 6,179 $ 9,245
Capital expenditures 3,130 1,935 1,603 3,882 6,322
(1)
I
n 2011, operating income improved $703 million primarily due to the increase in net operating revenues of $1.1 billion, as well as decreases in depreciation and amortization
associated with a reduction in the replacement rate of assets in 2009 through 2011, and definite lived intangible assets becoming fully amortized, offset by increases in operating
expenses of $413 million as a result of increases in wireless cost of services associated with 4G MVNO roaming due to higher data usage and increased wireless cost of products
p
rimarily related to higher cost of postpaid and prepaid devices. In 2010, operating loss improved $803 million primarily due to the increase in net operating revenues of $303
million 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 and exit costs and asset impairments other than goodwill. In 2008, we recognized 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.
(2)
D
uring 2011 and 2010, the Company did not recognize significant tax benefits associated with federal and state net operating losses generated during the periods due to its history o
f
consecutive annual losses. As a result, the Company recognized an increase in the valuation allowance on deferred tax assets affecting the income tax provision by approximately
$1.2 billion, $1.4 billion, and $281 million for the years ended December 31, 2011, 2010 and 2009, respectively.
(3) We did not declare any dividends on our common shares in 2011, 2010, 2009, and 2008. In each quarter of 2007, the dividend was $0.025 per share.