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Segments (Tables)
9 Months Ended
Dec. 31, 2017
Segment Reporting [Abstract]  
Statement of Operations Information
Segment financial information is as follows:  
Statement of Operations Information
Wireless including hurricane and other
 
Wireless hurricane and other
 
Wireless excluding hurricane and other
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Three Months Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Net operating revenues(2)
$
7,928

 
$
21

 
$
7,949

 
$
307

 
$
4

 
$
8,260

Inter-segment revenues(1)

 

 

 
86

 
(86
)
 

Total segment operating expenses(2)
(5,286
)
 
96

 
(5,190
)
 
(423
)
 
72

 
(5,541
)
Segment earnings
$
2,642

 
$
117

 
$
2,759

 
$
(30
)
 
$
(10
)
 
2,719

Less:
 
 
 
 
 
 
 
 
 
 
 
Depreciation
 
 
 
 
 
 
 
 
 
 
(1,977
)
Amortization
 
 
 
 
 
 
 
 
 
 
(196
)
Hurricane-related charges(2)
 
 
 
 
 
 
 
 
 
 
(66
)
Other, net(3)
 
 
 
 
 
 
 
 
 
 
247

Operating income
 
 
 
 
 
 
 
 
 
 
727

Interest expense
 
 
 
 
 
 
 
 
 
 
(581
)
Other expense, net
 
 
 
 
 
 
 
 
 
 
(42
)
Income before income taxes
 
 
 
 
 
 
 
 
 
 
$
104

Statement of Operations Information
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Three Months Ended December 31, 2016
 
 
 
 
 
 
 
Net operating revenues
$
8,172

 
$
372

 
$
5

 
$
8,549

Inter-segment revenues(1)

 
125

 
(125
)
 

Total segment operating expenses
(5,775
)
 
(449
)
 
125

 
(6,099
)
Segment earnings
$
2,397

 
$
48

 
$
5

 
2,450

Less:
 
 
 
 
 
 
 
Depreciation
 
 
 
 
 
 
(1,837
)
Amortization
 
 
 
 
 
 
(255
)
Other, net(3)
 
 
 
 
 
 
(47
)
Operating income
 
 
 
 
 
 
311

Interest expense
 
 
 
 
 
 
(619
)
Other expense, net
 
 
 
 
 
 
(60
)
Loss before income taxes
 
 
 
 
 
 
$
(368
)
Statement of Operations Information
Wireless including hurricane and other
 
Wireless hurricane and other
 
Wireless excluding hurricane and other
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Nine Months Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Net operating revenues(2)
$
23,347

 
$
33

 
$
23,380

 
$
963

 
$
13

 
$
24,356

Inter-segment revenues(1)

 

 

 
272

 
(272
)
 

Total segment operating expenses(2)
(15,109
)
 
118

 
(14,991
)
 
(1,305
)
 
241

 
(16,055
)
Segment earnings
$
8,238

 
$
151

 
$
8,389

 
$
(70
)
 
$
(18
)
 
8,301

Less:
 
 
 
 
 
 
 
 
 
 
 
Depreciation
 
 
 
 
 
 
 
 
 
 
(5,693
)
Amortization
 
 
 
 
 
 
 
 
 
 
(628
)
Hurricane-related charges(2)
 
 
 
 
 
 
 
 
 
 
(100
)
Other, net(3)
 
 
 
 
 
 
 
 
 
 
611

Operating income
 
 
 
 
 
 
 
 
 
 
2,491

Interest expense
 
 
 
 
 
 
 
 
 
 
(1,789
)
Other expense, net
 
 
 
 
 
 
 
 
 
 
(50
)
Income before income taxes
 
 
 
 
 
 
 
 
 
 
$
652

Statement of Operations Information
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Nine Months Ended December 31, 2016
 
 
 
 
 
 
 
Net operating revenues
$
23,620

 
$
1,177

 
$
11

 
$
24,808

Inter-segment revenues(1)

 
386

 
(386
)
 

Total segment operating expenses
(16,460
)
 
(1,473
)
 
379

 
(17,554
)
Segment earnings
$
7,160

 
$
90

 
$
4

 
7,254

Less:
 
 
 
 
 
 
 
Depreciation
 
 
 
 
 
 
(5,227
)
Amortization
 
 
 
 
 
 
(813
)
Other, net(3)
 
 
 
 
 
 
80

Operating income
 
 
 
 
 
 
1,294

Interest expense
 
 
 
 
 
 
(1,864
)
Other expense, net
 
 
 
 
 
 
(67
)
Loss before income taxes
 
 
 
 
 
 
$
(637
)
Other Information
Wireless
 
Wireline
 
Corporate and
Other
 
Consolidated
 
(in millions)
Capital expenditures for the nine months ended December 31, 2017
$
3,828

 
$
133

 
$
325

 
$
4,286

Capital expenditures for the nine months ended December 31, 2016
$
2,654

 
$
74

 
$
223

 
$
2,951

_________________
(1)
Inter-segment revenues consist primarily of wireline services provided to the Wireless segment for resale to, or use by, wireless subscribers.
(2)
The three and nine-month periods ended December 31, 2017, includes $66 million and $100 million, respectively, of hurricane-related charges which are classified in our consolidated statements of comprehensive income (loss) as follows: $21 million and $33 million, respectively, as contra-revenue in net operating revenues, $30 million and $45 million, respectively, as cost of services, $15 million and $17 million, respectively, as selling, general and administrative expenses and $5 million in the nine-month period only as other, net, all within the Wireless segment. In addition, the three and nine-month periods ended December 31, 2017, includes a $51 million charge related to a regulatory fee matter, which is classified as cost of services in our consolidated statements of comprehensive income (loss).
(3)
Other, net for the three and nine-month periods ended December 31, 2017 consists of $13 million of severance and exit costs in both periods and net reductions of $260 million and $315 million, respectively, primarily associated with legal settlements or favorable developments in pending legal proceedings. The nine-month period ended December 31, 2017 consists of a $175 million net loss on disposal of property, plant and equipment, which consisted of a $181 million loss related to cell site construction costs that are no longer recoverable as a result of changes in our network plans, offset by a $6 million gain. In addition, the nine-month period ended December 31, 2017 includes a $479 million non-cash gain related to spectrum license exchanges with other carriers and a $5 million reversal of previously accrued contract termination costs primarily related to the termination of our relationship with General Wireless Operations Inc. (Radio Shack). Losses totaling $123 million and $347 million relating to the write-off of leased devices associated with lease cancellations were excluded from Other, net and included within Wireless segment earnings for the three and nine-month periods ended December 31, 2017, respectively. Other, net for the three and nine-month periods ended December 31, 2016 consists of $19 million and $30 million expense, respectively, of severance and exit costs as well as $28 million loss on disposal of property, plant and equipment related to cell site construction costs that are no longer recoverable as a result of changes in our network plans. In addition, the nine-month period ended December 31, 2016 includes a $354 million non-cash gain related to spectrum license exchanges with other carriers, a $103 million charge related to a state tax matter and $113 million of contract termination costs, primarily related to the termination of our pre-existing wholesale arrangement with nTelos as a result of the Shentel transaction. Losses totaling approximately $109 million and $340 million relating to the write-off of leased devices associated with lease cancellations were excluded from Other, net and included within Wireless segment earnings for the three and nine-month periods ended December 31, 2016, respectively.
Operating Revenues by Service and Products
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Three Months Ended December 31, 2017
 
 
 
 
 
 
 
Wireless services(2)
$
5,311

 
$

 
$

 
$
5,311

Wireless equipment
2,309

 

 

 
2,309

Voice

 
94

 
(32
)
 
62

Data

 
29

 
(20
)
 
9

Internet

 
254

 
(36
)
 
218

Other 
329

 
16

 
6

 
351

Total net operating revenues
$
7,949

 
$
393

 
$
(82
)
 
$
8,260

 
 
 
 
 
 
 
 
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Three Months Ended December 31, 2016
 
 
 
 
 
 
 
Wireless services(3)
$
5,671

 
$

 
$

 
$
5,671

Wireless equipment
2,226

 

 

 
2,226

Voice

 
153

 
(61
)
 
92

Data

 
41

 
(23
)
 
18

Internet

 
281

 
(38
)
 
243

Other(3)
275

 
22

 
2

 
299

Total net operating revenues
$
8,172

 
$
497

 
$
(120
)
 
$
8,549

 
 
 
 
 
 
 
 
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Nine Months Ended December 31, 2017
 
 
 
 
 
 
 
Wireless services(2)
$
16,141

 
$

 
$

 
$
16,141

Wireless equipment
6,355

 

 

 
6,355

Voice

 
327

 
(114
)
 
213

Data

 
96

 
(59
)
 
37

Internet

 
765

 
(100
)
 
665

Other
884

 
47

 
14

 
945

Total net operating revenues
$
23,380

 
$
1,235

 
$
(259
)
 
$
24,356

 
 
 
 
 
 
 
 
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Nine Months Ended December 31, 2016
 
 
 
 
 
 
 
Wireless services(3)
$
17,280

 
$

 
$

 
$
17,280

Wireless equipment
5,556

 

 

 
5,556

Voice

 
506

 
(196
)
 
310

Data

 
127

 
(67
)
 
60

Internet

 
871

 
(119
)
 
752

Other(3)
784

 
59

 
7

 
850

Total net operating revenues
$
23,620

 
$
1,563

 
$
(375
)
 
$
24,808

 
 
 
 
 
 
 
 

_______________
(1)
Revenues eliminated in consolidation consist primarily of wireline services provided to the Wireless segment for resale to or use by wireless subscribers.
(2)
Wireless services related to the Wireless segment in the three and nine-month periods ended December 31, 2017 excludes $21 million and $33 million, respectively, of hurricane-related contra-revenue charges reflected in net operating revenues in our consolidated statements of comprehensive income (loss).
(3)
Sprint is no longer reporting Lifeline subscribers due to regulatory changes resulting in tighter program restrictions. We have excluded them from our customer base for all periods presented, including our Assurance Wireless prepaid brand and subscribers through our wholesale Lifeline mobile virtual network operators (MVNO). The above tables reflect the reclassification of the related Assurance Wireless prepaid revenue within the Wireless segment from Wireless services to Other of $92 million and $275 million for the three and nine months ended December 31, 2016, respectively. Revenue associated with subscribers through our wholesale Lifeline MVNOs continues to remain in Other following this change.