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Table of Contents
Index to Consolidated Financial Statements
SPRINT CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
F-50
Note 15. Quarterly Financial Data (Unaudited)
Successor
Quarter
1st 2nd 3rd 4th
(in millions, except per share amounts)
Fiscal year 2014
Net operating revenues $ 8,789 $ 8,488 $ 8,973 $ 8,292
Operating income (loss) $ 519 $ (192) $ (2,540) $ 318
Net income (loss) $ 23 $ (765) $ (2,379) $ (224)
Basic and diluted income (loss) per common share(1) $ 0.01 $ (0.19) $ (0.60) $ (0.06)
Calendar year 2013
Net operating revenues $ — $ — $ 7,749 $ 9,142
Operating loss $ (14) $ (22) $ (358) $ (576)
Net loss $ (9) $ (114) $ (699) $ (1,038)
Basic and diluted loss per common share(1) $ — $ — $ (0.18) $ (0.26)
Predecessor
Quarter
1st 2nd July 10,
2013
(in millions, except per share amounts)
Calendar year 2013
Net operating revenues $ 8,793 $ 8,877 $ 932
Operating income (loss) $ 29 $ (874) $ (40)
Net (loss) income $ (643) $ (1,597) $ 1,082
Basic (loss) income per common share(1) $ (0.21) $ (0.53) $ 0.35
Diluted (loss) income per common share(1) $ (0.21) $ (0.53) $ 0.30
_____________
(1) The sum of the quarterly earnings per share amounts may not equal the annual amounts because of the changes in the weighted
average number of shares outstanding during the year.
Note 16. Related-Party Transactions
Clearwire Related-Party Transactions
Sprint's relationship with Clearwire, which is now a wholly-owned subsidiary of Sprint, includes agreements by
which we resell wireless data services utilizing Clearwire's 4G network. In addition, Clearwire subscribers utilize the third
generation (3G) Sprint network which provides dual-mode service to subscribers in those areas where access to Clearwire's
4G network is not available.
Immediately prior to the Clearwire Acquisition, Sprint Communications held approximately 50.1% of non-
controlling voting interest and a 6.0% non-controlling economic interest in Clearwire Corporation as well as a 44.1% non-
controlling economic interest in Clearwire Communications LLC for which the carrying value totaled $325 million. Prior to
the close of the Clearwire Acquisition, we applied equity method accounting to the investment in Clearwire.
Equity in losses from Clearwire were $482 million, $202 million, and $1.1 billion for the Predecessor 190-day
period ended July 9, 2013, Predecessor unaudited three-month period ended March 31, 2013 and the Predecessor year ended
December 31, 2012, respectively. The equity in losses from our investment in Clearwire consisted of our share of Clearwire's
net loss and other adjustments, if any, such as non-cash impairment of our investment, gains or losses associated with the
dilution of our ownership interest resulting from Clearwire's equity issuances, derivative losses associated with the change in
fair value of the embedded derivative included in exchangeable notes between Clearwire and Sprint, and other items
recognized by Clearwire Corporation that did not affect our economic interest. Sprint's equity in losses for the Predecessor
190-day period ended July 9, 2013, include a $65 million derivative loss associated with the change in fair value of the