XML 96 R20.htm IDEA: XBRL DOCUMENT v2.4.0.8
Segment Information
 3 Months Ended
Jun. 30, 2014
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 provided to other communications companies and targeted business and consumer 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.
Segment financial information is as follows:  
Predecessor
Statement of Operations Information
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Three Months Ended June 30, 2013
 
 
 
 
 
 
 
Net operating revenues
$
8,178

 
$
695

 
$
4

 
$
8,877

Inter-segment revenues(1)
—

 
215

 
(215
)
 
—

Total segment operating expenses
(6,884
)
 
(781
)
 
212

 
(7,453
)
Segment earnings
$
1,294

 
$
129

 
$
1

 
1,424

Less:
 
 
 
 
 
 
 
Depreciation
 
 
 
 
 
 
(1,563
)
Amortization
 
 
 
 
 
 
(69
)
Other, net(2)
 
 
 
 
 
 
(666
)
Operating loss
 
 
 
 
 
 
(874
)
Interest expense
 
 
 
 
 
 
(428
)
Equity in losses of unconsolidated investments
 
 
 
 
$
(257
)
 
(257
)
Other income, net
 
 
 
 
 
 
17

Loss before income taxes
 
 
 
 
 
 
$
(1,542
)
 
 
 
 
 
 
 
 
Other Information
Wireless
 
Wireline
 
Corporate and
Other
 
Consolidated
 
(in millions)
Capital expenditures for the three months ended June 30, 2013
$
1,403

 
$
100

 
$
68

 
$
1,571


Successor
Statement of Operations Information
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Three Months Ended June 30, 2014
 
 
 
 
 
 
 
Net operating revenues
$
8,193

 
$
593

 
$
3

 
$
8,789

Inter-segment revenues(1)
—

 
153

 
(153
)
 
—

Total segment operating expenses
(6,400
)
 
(711
)
 
149

 
(6,962
)
Segment earnings
$
1,793

 
$
35

 
$
(1
)
 
1,827

Less:
 
 
 
 
 
 
 
Depreciation
 
 
 
 
 
 
(868
)
Amortization
 
 
 
 
 
 
(413
)
Other, net(2)
 
 
 
 
 
 
(27
)
Operating income
 
 
 
 
 
 
519

Interest expense
 
 
 
 
 
 
(512
)
Other income, net
 
 
 
 
 
 
1

Income before income taxes
 
 
 
 
 
 
$
8

 
 
 
 
 
 
 
 
Statement of Operations Information
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Three Months Ended June 30, 2013
 
 
 
 
 
 
 
Net operating revenues
$
—

 
$
—

 
$
—

 
$
—

Inter-segment revenues(1)
—

 
—

 
—

 
—

Total segment operating expenses
—

 
—

 
(22
)
 
(22
)
Segment earnings
$
—

 
$
—

 
$
(22
)
 
(22
)
Other expense, net
 
 
 
 
 
 
(153
)
Loss before income taxes
 
 
 
 
 
 
$
(175
)
 
 
 
 
 
 
 
 
Other Information
Wireless
 
Wireline
 
Corporate and
Other
 
Consolidated
 
(in millions)
Capital expenditures for the three months ended June 30, 2014
$
1,120

 
$
59

 
$
67

 
$
1,246

 _________________
(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 Successor three-month period ended June 30, 2014 consists of $27 million of severance and exit costs. Other, net for the Predecessor three-month period ended June 30, 2013 consists of $632 million of severance and exit costs and $34 million of business combination fees paid to unrelated parties necessary for the transactions with SoftBank and Clearwire (included in our corporate segment and classified in our consolidated statements of comprehensive income (loss) as selling, general and administrative expenses).
Predecessor
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Three Months Ended June 30, 2013
 
 
 
 
 
 
 
Wireless services
$
7,227

 
$
—

 
$
—

 
$
7,227

Wireless equipment
820

 
—

 
—

 
820

Voice
—

 
377

 
(122
)
 
255

Data
—

 
87

 
(44
)
 
43

Internet
—

 
432

 
(48
)
 
384

Other
131

 
14

 
3

 
148

Total net operating revenues
$
8,178

 
$
910

 
$
(211
)
 
$
8,877

 
 
 
 
 
 
 
 
Successor
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Three Months Ended June 30, 2014
 
 
 
 
 
 
 
Wireless services
$
6,908

 
$
—

 
$
—

 
$
6,908

Wireless equipment
1,106

 
—

 
—

 
1,106

Voice
—

 
327

 
(91
)
 
236

Data
—

 
56

 
(24
)
 
32

Internet
—

 
345

 
(38
)
 
307

Other
179

 
18

 
3

 
200

Total net operating revenues
$
8,193

 
$
746

 
$
(150
)
 
$
8,789

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