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Segment Information
 3 Months Ended
Mar. 31, 2012
Segment Reporting [Abstract]  
Segment Information
Note 14.
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 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, including services to the cable multiple systems operators that resell our local and long distance services and use our back office systems and network assets in support of their telephone services provided over cable facilities primarily to residential end-use subscribers.
We define segment earnings as wireless or wireline operating (loss) income before other segment expenses such as depreciation, amortization, severance, exit costs, goodwill, asset impairments, and other items, if any, solely and directly attributable to the segment representing items of a non-recurring or unusual nature. Expenses and income items excluded from segment earnings are managed at the corporate level. Transactions between segments are generally accounted for based on estimated 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.
Segment financial information is as follows:  
Statement of Operations Information
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Three Months Ended March 31, 2012
 
 
 
 
 
 
 
Net operating revenues
$
7,950

 
$
781

 
$
3

 
$
8,734

Inter-segment revenues(1) 
—

 
217

 
(217
)
 
—

Total segment operating expenses
(6,898
)
 
(837
)
 
214

 
(7,521
)
Segment earnings
$
1,052

 
$
161

 
$
—

 
1,213

Less:
 
 
 
 
 
 
 
Depreciation and amortization
 
 
 
 
 
 
(1,666
)
Other, net(2)
 
 
 
 
 
 
198

Operating loss
 
 
 
 
 
 
(255
)
Interest expense
 
 
 
 
 
 
(298
)
Equity in losses of unconsolidated
investments and other, net
 
 
 
 
$
(273
)
 
(273
)
Loss before income taxes
 
 
 
 
 
 
$
(826
)
 
 
 
 
 
 
 
 
Statement of Operations Information
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Three Months Ended March 31, 2011
 
 
 
 
 
 
 
Net operating revenues
$
7,413

 
$
898

 
$
2

 
$
8,313

Inter-segment revenues(1) 
—

 
222

 
(222
)
 
—

Total segment operating expenses
(6,130
)
 
(892
)
 
223

 
(6,799
)
Segment earnings
$
1,283

 
$
228

 
$
3

 
1,514

Less:
 
 
 
 
 
 
 
Depreciation and amortization
 
 
 
 
 
 
(1,255
)
Other, net
 
 
 
 
 
 
—

Operating income
 
 
 
 
 
 
259

Interest expense
 
 
 
 
 
 
(249
)
Equity in losses of unconsolidated
investments and other, net
 
 
 
 
$
(412
)
 
(412
)
Loss before income taxes
 
 
 
 
 
 
$
(402
)
 
 
 
 
 
 
 
 
Other Information
Wireless
 
Wireline
 
Corporate and
Other
 
Consolidated
 
(in millions)
Capital expenditures for the three months ended March 31, 2012
$
678

 
$
47

 
$
58

 
$
783

Capital expenditures for the three months ended March 31, 2011
$
525

 
$
64

 
$
55

 
$
644

 _________________
(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 three-month period ended March 31, 2012 consists of net operating income of $236 million associated with the termination of the spectrum hosting arrangement with LightSquared (see Note 10), 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 asset impairments totaling $84 million.

Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Three Months Ended March 31, 2012
 
 
 
 
 
 
 
Wireless services
$
7,112

 
$
—

 
$
—

 
$
7,112

Wireless equipment
735

 
—

 
—

 
735

Voice
—

 
417

 
(127
)
 
290

Data
—

 
108

 
(44
)
 
64

Internet
—

 
453

 
(46
)
 
407

Other
103

 
20

 
3

 
126

Total net operating revenues
$
7,950

 
$
998

 
$
(214
)
 
$
8,734

 
 
 
 
 
 
 
 
 
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Three Months Ended March 31, 2011
 
 
 
 
 
 
 
Wireless services
$
6,649

 
$
—

 
$
—

 
$
6,649

Wireless equipment
695

 
—

 
—

 
695

Voice
—

 
486

 
(153
)
 
333

Data
—

 
116

 
(37
)
 
79

Internet
—

 
497

 
(32
)
 
465

Other
69

 
21

 
2

 
92

Total net operating revenues
$
7,413

 
$
1,120

 
$
(220
)
 
$
8,313

_______________
(1)
Revenues eliminated in consolidation consist primarily of wireline services provided to the Wireless segment for resale to or use by wireless subscribers.