Note 14. | Segments |
• | 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. |
Predecessor | |||||||||||||||
Statement of Operations Information | Wireless | Wireline | Corporate, Other and Eliminations | Consolidated | |||||||||||
(in millions) | |||||||||||||||
191 Days Ended July 10, 2013 | |||||||||||||||
Net operating revenues | $ | 17,125 | $ | 1,471 | $ | 6 | $ | 18,602 | |||||||
Inter-segment revenues(1) | — | 430 | (430 | ) | — | ||||||||||
Total segment operating expenses | (14,355 | ) | (1,629 | ) | 425 | (15,559 | ) | ||||||||
Segment earnings | $ | 2,770 | $ | 272 | $ | 1 | 3,043 | ||||||||
Less: | |||||||||||||||
Depreciation | (3,098 | ) | |||||||||||||
Amortization | (147 | ) | |||||||||||||
Other, net(2) | (683 | ) | |||||||||||||
Operating loss | (885 | ) | |||||||||||||
Interest expense | (1,135 | ) | |||||||||||||
Equity in losses of unconsolidated investments, net | $ | (482 | ) | ||||||||||||
Gain on previously-held equity interests | 2,926 | 2,444 | |||||||||||||
Other income, net | 19 | ||||||||||||||
Income before income taxes | $ | 443 | |||||||||||||
Statement of Operations Information | Wireless | Wireline | Corporate, Other and Eliminations | Consolidated | |||||||||||
(in millions) | |||||||||||||||
2012 | |||||||||||||||
Net operating revenues | $ | 32,355 | $ | 2,999 | $ | 12 | $ | 35,366 | |||||||
Inter-segment revenues(1) | — | 882 | (882 | ) | — | ||||||||||
Total segment operating expenses | (28,208 | ) | (3,232 | ) | 877 | (30,563 | ) | ||||||||
Segment earnings | $ | 4,147 | $ | 649 | $ | 7 | 4,803 | ||||||||
Less: | |||||||||||||||
Depreciation | (6,240 | ) | |||||||||||||
Amortization | (303 | ) | |||||||||||||
Business combination and hurricane-related charges(3) | (64 | ) | |||||||||||||
Other, net(2) | (16 | ) | |||||||||||||
Operating loss | (1,820 | ) | |||||||||||||
Interest expense | (1,428 | ) | |||||||||||||
Equity in losses of unconsolidated investments, net | $ | (1,114 | ) | (1,114 | ) | ||||||||||
Other income, net | 190 | ||||||||||||||
Loss before income taxes | $ | (4,172 | ) | ||||||||||||
Statement of Operations Information | Wireless | Wireline | Corporate, Other and Eliminations | Consolidated | |||||||||||
(in millions) | |||||||||||||||
2011 | |||||||||||||||
Net operating revenues | $ | 30,301 | $ | 3,370 | $ | 8 | $ | 33,679 | |||||||
Inter-segment revenues(1) | — | 956 | (956 | ) | — | ||||||||||
Total segment operating expenses | (26,034 | ) | (3,526 | ) | 953 | (28,607 | ) | ||||||||
Segment earnings | $ | 4,267 | $ | 800 | $ | 5 | 5,072 | ||||||||
Less: | |||||||||||||||
Depreciation | (4,455 | ) | |||||||||||||
Amortization | (403 | ) | |||||||||||||
Other, net(2) | (106 | ) | |||||||||||||
Operating income | 108 | ||||||||||||||
Interest expense | (1,011 | ) | |||||||||||||
Equity in losses of unconsolidated investments, net | $ | (1,730 | ) | (1,730 | ) | ||||||||||
Other expense, net | (3 | ) | |||||||||||||
Loss before income taxes | $ | (2,636 | ) | ||||||||||||
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 | |||||||
2012 | |||||||||||||||
Capital expenditures | $ | 3,753 | $ | 240 | $ | 268 | $ | 4,261 | |||||||
Total assets | $ | 38,297 | $ | 2,195 | $ | 11,078 | $ | 51,570 | |||||||
2011 | |||||||||||||||
Capital expenditures | $ | 2,702 | $ | 168 | $ | 260 | $ | 3,130 | |||||||
Total assets | $ | 37,606 | $ | 2,355 | $ | 9,422 | $ | 49,383 | |||||||
Successor | |||||||||||||||
Statement of Operations Information | Wireless | Wireline | Corporate, Other and Eliminations | Consolidated | |||||||||||
(in millions) | |||||||||||||||
2013 | |||||||||||||||
Net operating revenues | $ | 15,642 | $ | 1,240 | $ | 9 | $ | 16,891 | |||||||
Inter-segment revenues(1) | — | 396 | (396 | ) | — | ||||||||||
Total segment operating expenses | (13,464 | ) | (1,414 | ) | 353 | (14,525 | ) | ||||||||
Segment earnings | $ | 2,178 | $ | 222 | $ | (34 | ) | 2,366 | |||||||
Less: | |||||||||||||||
Depreciation | (2,026 | ) | |||||||||||||
Amortization | (908 | ) | |||||||||||||
Other, net(2) | (402 | ) | |||||||||||||
Operating loss | (970 | ) | |||||||||||||
Interest expense | (918 | ) | |||||||||||||
Other income, net | 73 | ||||||||||||||
Loss before income taxes | $ | (1,815 | ) | ||||||||||||
Statement of Operations Information | Wireless | Wireline | Corporate, Other and Eliminations | Consolidated | |||||||||||
(in millions) | |||||||||||||||
2012 | |||||||||||||||
Net operating revenues | $ | — | $ | — | $ | — | $ | — | |||||||
Inter-segment revenues(1) | — | — | — | — | |||||||||||
Total segment operating expenses | — | — | (33 | ) | (33 | ) | |||||||||
Segment earnings | $ | — | $ | — | $ | (33 | ) | (33 | ) | ||||||
Other income, net | 10 | ||||||||||||||
Loss before income taxes | $ | (23 | ) | ||||||||||||
Other Information | Wireless | Wireline | Corporate and Other | Consolidated | |||||||||||
(in millions) | |||||||||||||||
2013 | |||||||||||||||
Capital expenditures | $ | 3,535 | $ | 153 | $ | 159 | $ | 3,847 | |||||||
Total assets | $ | 75,128 | $ | 1,548 | $ | 9,419 | $ | 86,095 | |||||||
2012 | |||||||||||||||
Total assets | $ | — | $ | — | $ | 3,115 | $ | 3,115 |
(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 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 consists of $652 million of severance and exit costs and $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), partially offset by $22 million of favorable developments in connection with an E911 regulatory tax-related contingency. Other, net for the Predecessor year ended December 31, 2012 consists of $196 million of lease exit costs and $102 million of asset impairment charges, partially offset by net operating income of $236 million associated with the termination of the spectrum hosting arrangement with LightSquared, 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. Other, net for the Predecessor year ended December 31, 2011 consists of $106 million of severance, exit costs and asset impairments associated with the shut-down of the Nextel platform. |
(3) | Includes $45 million of hurricane-related charges for the Predecessor year ended December 31, 2012, which are classified in our consolidated statements of comprehensive loss as follows: $21 million as contra-revenue in net operating revenues of Wireless, $20 million as cost of services and products ($17 million Wireless; $3 million Wireline), and $4 million as selling, general and administrative expenses in our Wireless segment. Also includes $19 million of business combination charges for fees paid to unrelated parties necessary for the proposed transactions with SoftBank and Clearwire, which is included in our corporate segment and classified as selling, general and administrative expenses. |
Predecessor | |||||||||||||||
Operating Revenues by Service and Products | Wireless | Wireline | Corporate, Other and Eliminations(1) | Consolidated | |||||||||||
(in millions) | |||||||||||||||
191 Days Ended July 10, 2013 | |||||||||||||||
Wireless services | $ | 15,139 | $ | — | $ | — | $ | 15,139 | |||||||
Wireless equipment | 1,707 | — | — | 1,707 | |||||||||||
Voice | — | 771 | (236 | ) | 535 | ||||||||||
Data | — | 188 | (93 | ) | 95 | ||||||||||
Internet | — | 913 | (100 | ) | 813 | ||||||||||
Other | 279 | 29 | 5 | 313 | |||||||||||
Total net operating revenues | $ | 17,125 | $ | 1,901 | $ | (424 | ) | $ | 18,602 | ||||||
Wireless | Wireline | Corporate, Other and Eliminations(1) | Consolidated | ||||||||||||
(in millions) | |||||||||||||||
2012 | |||||||||||||||
Wireless services(2) | $ | 28,624 | $ | — | $ | — | $ | 28,624 | |||||||
Wireless equipment | 3,248 | — | — | 3,248 | |||||||||||
Voice | — | 1,627 | (515 | ) | 1,112 | ||||||||||
Data | — | 398 | (176 | ) | 222 | ||||||||||
Internet | — | 1,781 | (190 | ) | 1,591 | ||||||||||
Other | 483 | 75 | 11 | 569 | |||||||||||
Total net operating revenues | $ | 32,355 | $ | 3,881 | $ | (870 | ) | $ | 35,366 | ||||||
Wireless | Wireline | Corporate, Other and Eliminations(1) | Consolidated | ||||||||||||
(in millions) | |||||||||||||||
2011 | |||||||||||||||
Wireless services | $ | 27,129 | $ | — | $ | — | $ | 27,129 | |||||||
Wireless equipment | 2,911 | — | — | 2,911 | |||||||||||
Voice | — | 1,915 | (643 | ) | 1,272 | ||||||||||
Data | — | 460 | (163 | ) | 297 | ||||||||||
Internet | — | 1,878 | (151 | ) | 1,727 | ||||||||||
Other | 261 | 73 | 9 | 343 | |||||||||||
Total net operating revenues | $ | 30,301 | $ | 4,326 | $ | (948 | ) | $ | 33,679 | ||||||
Successor | |||||||||||||||
Operating Revenues by Service and Products | Wireless | Wireline | Corporate, Other and Eliminations(1) | Consolidated | |||||||||||
(in millions) | |||||||||||||||
2013 | |||||||||||||||
Wireless services | $ | 13,579 | $ | — | $ | — | $ | 13,579 | |||||||
Wireless equipment | 1,797 | — | — | 1,797 | |||||||||||
Voice | — | 719 | (240 | ) | 479 | ||||||||||
Data | — | 138 | (69 | ) | 69 | ||||||||||
Internet | — | 747 | (81 | ) | 666 | ||||||||||
Other | 266 | 32 | 3 | 301 | |||||||||||
Total net operating revenues | $ | 15,642 | $ | 1,636 | $ | (387 | ) | $ | 16,891 | ||||||
(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 for the Predecessor year ended December 31, 2012 excludes $21 million of hurricane-related contra-revenue charges reflected in net operating revenues in our consolidated statement of comprehensive loss. |