Sprint - Nextel 2013 Annual Report Download - page 160

Table of Contents
Index to Consolidated Financial Statements
SPRINT CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Sprint operates two reportable segments: Wireless and Wireline.
We define segment earnings as wireless or wireline operating (loss) income before other segment expenses such as depreciation, amortization,
severance, exit costs, goodwill impairments, asset impairments, and other items, if any, solely and directly attributable to the segment representing items of a
non
- recurring or unusual nature. Expense 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:
F - 42
Note 14.
Segments
•
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 services provided over cable facilities primarily to residential end
- use subscribers.
Predecessor
Statement of Operations Information
Wireless
Wireline
Corporate,
Other and
Eliminations
Consolidated
(in millions)
191 Days Ended July 10, 2013
Net operating revenues
$
17,125
$
1,471
$
6
$
18,602
Inter-segment revenues(1)
—
430
(430
)
—
Total segment operating expenses
(14,355
)
(1,629
)
425
(15,559
)
Segment earnings
$
2,770
$
272
$
1
3,043
Less:
Depreciation
(3,098
)
Amortization
(147
)
Other, net(2)
(683
)
Operating loss
(885
)
Interest expense
(1,135
)
Equity in losses of unconsolidated investments, net
$
(482
)
Gain on previously-held equity interests
2,926
2,444
Other income, net
19
Income before income taxes
$
443