Sprint - Nextel 2013 Annual Report Download - page 163

Table of Contents
Index to Consolidated Financial Statements
SPRINT CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
_________________
F - 44
Successor
Statement of Operations Information
Wireless
Wireline
Corporate,
Other and
Eliminations
Consolidated
(in millions)
2013
Net operating revenues
$
15,642
$
1,240
$
9
$
16,891
Inter-segment revenues(1)
—
396
(396
)
—
Total segment operating expenses
(13,464
)
(1,414
)
353
(14,525
)
Segment earnings
$
2,178
$
222
$
(34
)
2,366
Less:
Depreciation
(2,026
)
Amortization
(908
)
Other, net(2)
(402
)
Operating loss
(970
)
Interest expense
(918
)
Other income, net
73
Loss before income taxes
$
(1,815
)
Statement of Operations Information
Wireless
Wireline
Corporate,
Other and
Eliminations
Consolidated
(in millions)
2012
Net operating revenues
$
—
$
—
$
—
$
—
Inter-segment revenues(1)
—
—
—
—
Total segment operating expenses
—
—
(33
)
(33
)
Segment earnings
$
—
$
—
$
(33
)
(33
)
Other income, net
10
Loss before income taxes
$
(23
)
Other Information
Wireless
Wireline
Corporate and
Other
Consolidated
(in millions)
2013
Capital expenditures
$
3,535
$
153
$
159
$
3,847
Total assets
$
75,128
$
1,548
$
9,419
$
86,095
2012
Total assets
$
—
$
—
$
3,115
$
3,115
(1)
Inter - segment revenues consist primarily of wireline services provided to the Wireless segment for resale to or use by wireless subscribers.
(2)
Other, net for the Successor year ended December 31, 2013 consists of $309 million of severance and exit costs and $100 million of business combination fees paid to unrelated parties in connection with
the transactions with SoftBank and Clearwire ($75 million included in our corporate segment and $25 million included in our wireless segment and classified as selling, general and administrative
expenses), partially offset by $7 million of insurance reimbursement towards 2012 hurricane
- related charges (included in our wireless segment and classified as a contra - expense in cost of services
expense). Other, net for the Predecessor 191 - day period ended July 10, 2013 consists of $652 million of severance and exit costs and $53 million of business combination fees paid to unrelated parties in
connection with the transactions with SoftBank and Clearwire (included in our corporate segment and classified as selling, general and administrative expenses), partially offset by $22 million of
favorable developments in connection with an E911 regulatory tax
- related contingency. Other, net for the Predecessor year ended December 31, 2012 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, 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. Other, net for the Predecessor
year ended December 31, 2011 consists of $106 million of severance, exit costs and asset impairments associated with the shut - down of the Nextel platform.
(3)
Include s $45 million of hurricane-related charges for the Predecessor year ended December 31, 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 in our Wireless segment. 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 classified as selling, general and administrative expenses.