Sprint - Nextel 2015 Annual Report Download - page 127

Table of Contents
Index to Consolidated Financial Statements
SPRINT CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Dividends
We did not declare any dividends on our common shares for all periods presented in the consolidated financial statements. We are currently restricted
from paying cash dividends by the terms of our revolving bank credit facility, EDC Agreement and all other equipment credit facilities (seeNote9.Long-Term
Debt,FinancingandCapitalLeaseObligations).
Accumulated Other Comprehensive Loss
The components of accumulated other comprehensive loss, net of tax were as follows:
March 31,
2016
2015
(in millions)
Unrecognized net periodic pension and postretirement benefit cost $ (407)
$ (388)
Unrealized net gains related to investments —
1
Foreign currency translation adjustments (32)
(21)
Accumulated other comprehensive loss $ (439)
$ (408)
Per Share Data
Basic net loss per common share is calculated by dividing net loss by the weighted average number of common shares outstanding during the period.
Diluted net loss per common share adjusts basic net loss per common share, computed using the treasury stock method, for the effects of potentially dilutive
common shares, if the effect is not antidilutive. Outstanding options and restricted stock units (exclusive of participating securities) that had no effect on our
computation of dilutive weighted average number of shares outstanding as their effect would have been antidilutive were approximately 73 million , 56 million , 60
million and 70 million as of the Successor years ended March 31, 2016 and 2015 , three-month transition period ended March 31, 2014 , and year ended
December 31, 2013 , respectively, and 61 million and 74 million shares for the Predecessor 191-day period ended July 10, 2013 and unaudited three-month period
ended March 31, 2013, respectively. In addition, as of all periods subsequent to the SoftBank Merger, all 55 million shares issuable under the warrant which was
issued to SoftBank at the close of the SoftBank Merger were treated as potentially dilutive securities but did not impact our computation of dilutive weighted
average number of shares outstanding as their effect would have been antidilutive. The warrant is exercisable at $5.25 per share at the option of Softbank, in whole
or in part, at any time within the five -year term.
Note 15. Segments
Sprint operates two reportable segments: Wireless and Wireline.
•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 (handset and tablets) 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 provided to other
communications companies and targeted business subscribers, in addition to our Wireless segment .
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.
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