Sprint - Nextel 2014 Annual Report Download - page 130

Table of Contents
Index to Consolidated Financial Statements
SPRINT CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
F-47
Predecessor
Statement of Operations Information Wireless Wireline
Corporate,
Other and
Eliminations Consolidated
(in millions)
Year Ended December 31, 2012
Net operating revenues $ 32,355 $ 2,999 $ 12 $ 35,366
Inter-segment revenues(1) — 882 (882) —
Total segment operating expenses (28,208) (3,232) 877 (30,563)
Segment earnings $ 4,147 $ 649 $ 7 4,803
Less:
Depreciation (6,240)
Amortization (303)
Business combination and hurricane-related charges(4) (64)
Impairments(2) (102)
Other, net(3) 86
Operating loss (1,820)
Interest expense (1,428)
Equity in losses of unconsolidated investments, net $ (1,114) (1,114)
Other income, net 190
Loss before income taxes $ (4,172)
Other Information Wireless Wireline Corporate and
Other Consolidated
(in millions)
Capital expenditures for the 191 days ended July 10, 2013 $ 2,840 $ 174 $ 126 $ 3,140
Capital expenditures for the three months ended March 31, 2013 (unaudited) $ 1,270 $ 64 $ 47 $ 1,381
As of and for the year ended December 31, 2012
Capital expenditures $ 3,753 $ 240 $ 268 $ 4,261
Total assets $ 38,297 $ 2,195 $ 11,078 $ 51,570
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(1) Inter-segment revenues consist primarily of wireline services provided to the Wireless segment for resale to or use by wireless subscribers.
(2) Impairments for the Successor year ended March 31, 2015 consist of a $1.9 billion trade name impairment related to the Wireless segment and a $233
million impairment related to Wireline long-lived assets. Impairments for the Successor three-month transition period ended March 31, 2014 consist of
network equipment assets no longer necessary for management's strategic plans. Impairments for the Predecessor year ended December 31, 2012 primarily
consist of capitalized assets associated with the termination of the spectrum hosting arrangement with LightSquared.
(3) Other, net for the Successor year ended March 31, 2015 consists of $304 million of severance and exit costs, combined with $91 million for legal reserves
related to various pending legal suits and proceedings and $59 million for a partial pension settlement, partially offset by a $41 million release of liability
reserves associated with the May 2013 U.S. Cellular asset acquisition. Other, net for the Successor three-month transition period ended March 31, 2014
consists of $52 million of severance and exit costs. 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 and unaudited three-month period ended March 31,
2013 consists of $652 million and $25 million, respectively, of severance and exit costs, partially offset by $22 million of favorable developments in
connection with an E911 regulatory tax-related contingency. Other, net for the Predecessor 191-day period ended July 10, 2013 also includes $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). Other, net for the Predecessor year ended December 31, 2012 consists of 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, partially offset by $196
million of lease exit costs.
(4) Includes $45 million of hurricane-related charges for the Predecessor year ended December 31, 2012, which are classified in our consolidated
statements of operations as follows: $21 million as contra-revenue in net operating revenues of Wireless, $20 million as cost of services ($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.