Sprint - Nextel 2012 Annual Report Download - page 158

Table of Contents
SPRINT NEXTEL CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
_________________
F - 37
Statement of Operations Information
Wireless
Wireline
Corporate,
Other and
Eliminations
Consolidated
(in millions)
2010
Net operating revenues
$
28,597
$
3,959
$
7
$
32,563
Inter-segment revenues(1)
—
1,081
(1,081
)
—
Total segment operating expenses
(24,066
)
(3,950
)
1,086
(26,930
)
Segment earnings
$
4,531
$
1,090
$
12
5,633
Less:
Depreciation and amortization
(6,248
)
Other, net(2)
20
Operating loss
(595
)
Interest expense
(1,464
)
Equity in losses of unconsolidated
investments, net
$
(1,286
)
(1,286
)
Other income, net
46
Loss before income taxes
$
(3,299
)
Other Information
Wireless
Wireline
Corporate,
Other and
Eliminations(4)
Consolidated
(in millions)
2012
Capital expenditures
$
3,753
$
240
$
268
$
4,261
Total assets
38,297
2,195
11,078
51,570
2011
Capital expenditures
$
2,702
$
168
$
260
$
3,130
Total assets
37,606
2,355
9,422
49,383
2010
Capital expenditures
$
1,455
$
223
$
257
$
1,935
Total assets
38,445
2,655
10,554
51,654
(1)
Inter-segment revenues consist primarily of wireline services provided to the Wireless segment for resale to or use by wireless subscribers.
(2)
For 2012, other, net consists of $196 million of lease exit costs and $102 million of asset impairment charges, partially offset by net operating income of $236
million associated with the termination of the spectrum hosting arrangement with LightSquared (see Note 12), a gain of $29 million on spectrum swap transactions,
and a benefit of $17 million resulting from favorable developments relating to access cost disputes associated with prior periods. For 2011 and 2010, other, net
consists primarily of severance, exit costs and asset impairments offset by gains from other asset dispositions and exchanges (See note 9).
(3)
Includes $45 million of hurricane-related charges for 2012, which are classified in our consolidated statements of comprehensive loss as follows: $21 million as
contra-revenue in net operating revenues of Wireless, $20 million as cost of services and products ($17 million
Wireless; $3 million Wireline), and $4 million as
selling, general and administrative expenses of Wireless. Also includes $19 million of business combination charges for fees paid to unrelated parties necessary for
the proposed transactions with SoftBank and Clearwire, which is included in our corporate segment and is classified in our consolidated statements of comprehensive
loss as selling, general and administrative expenses.
(4)
Corporate assets are not allocated to the operating segments and consist primarily of cash and cash equivalents, the corporate headquarters campus, our equity
method investment in Clearwire, other assets managed at a corporate level. Corporate capital expenditures include various administrative assets.