Sprint - Nextel 2015 Annual Report Download - page 132

Table of Contents
Index to Consolidated Financial Statements
SPRINT CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Statement of Operations Information Wireless
Wireline
Corporate,
Other and
Eliminations
Consolidated
(in millions)
Three Months Ended March 31, 2013 (unaudited)
Net operating revenues $ 8,089
$ 702
$ 2
$ 8,793
Inter-segment revenues (1) —
191
(191)
—
Total segment operating expenses (6,694)
(765)
190
(7,269)
Segment earnings $ 1,395
$ 128
$ 1
1,524
Less:
Depreciation
(1,422)
Amortization
(70)
Other, net (3)
(3)
Operating income
29
Interest expense
(432)
Equity in losses of unconsolidated investments, net
$ (202)
(202)
Loss before income taxes
$ (605)
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
_________________
(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.
(3) Other,netfortheSuccessoryearendedMarch31,2016consistsof$409millionofseveranceandexitcosts,combinedwith$193millionforlegalreservesrelatedtovariouspendinglegalsuitsand
proceedingsanda$166millionlossondisposalofproperty,plantandequipmentrelatedtocellsiteconstructioncostsandothernetworkcoststhatarenolongerrecoverableasaresultofchangesinthe
Company'snetworkplans,partiallyoffsetby$20millionofincomeresultingfromarevisiontoourestimateofapreviouslyrecordedreserve.Lossestotalingapproximately$321millionrelatingto
thewrite-offofleaseddevicesassociatedwithleasecancellationsof$256millionandthelossonsaleofdevicestoMLSundertheHandsetSale-LeasebackTranche1transactionfor$65millionwere
excludedfromOther,netandincludedwithinWirelesssegmentearnings.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$41millionofincomeresultingfromarevisiontoour
estimateofapreviouslyrecordedreserve.Other,netfortheSuccessorthree-monthtransitionperiodendedMarch31,2014consistsof$52millionofseveranceandexitcostsanda$75millionlosson
disposalofproperty,plantandequipmentrelatedtonetworkequipmentassetsnolongernecessaryformanagement'sstrategicplans.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).
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