We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
SentinelOne Inc | NYSE:S | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.43 | 2.03% | 21.63 | 21.78 | 21.39 | 21.50 | 1,988,678 | 00:16:00 |
|
x
|
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from to
|
Delaware
|
46-1170005
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
|
6200 Sprint Parkway, Overland Park, Kansas
|
66251
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer
|
x
|
|
Accelerated filer
|
o
|
Non-accelerated filer
|
o
|
(Do not check if a smaller reporting company)
|
Smaller reporting company
|
o
|
Sprint Corporation Common Stock
|
3,987,167,109
|
|
|
Item 1.
|
Financial Statements (Unaudited)
|
|
December 31,
|
|
March 31,
|
||||
|
2016
|
|
2016
|
||||
|
(in millions, except share and per share data)
|
||||||
ASSETS
|
|||||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
3,707
|
|
|
$
|
2,641
|
|
Short-term investments
|
2,349
|
|
|
—
|
|
||
Accounts and notes receivable, net of allowance for doubtful accounts and deferred interest of $46 and $39, respectively
|
1,236
|
|
|
1,099
|
|
||
Device and accessory inventory
|
1,296
|
|
|
1,173
|
|
||
Prepaid expenses and other current assets
|
1,984
|
|
|
1,920
|
|
||
Total current assets
|
10,572
|
|
|
6,833
|
|
||
Property, plant and equipment, net
|
19,333
|
|
|
20,297
|
|
||
Intangible assets
|
|
|
|
|
|||
Goodwill
|
6,579
|
|
|
6,575
|
|
||
FCC licenses and other
|
40,556
|
|
|
40,073
|
|
||
Definite-lived intangible assets, net
|
3,582
|
|
|
4,469
|
|
||
Other assets
|
673
|
|
|
728
|
|
||
Total assets
|
$
|
81,295
|
|
|
$
|
78,975
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|||||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
2,894
|
|
|
$
|
2,899
|
|
Accrued expenses and other current liabilities
|
4,189
|
|
|
4,374
|
|
||
Current portion of long-term debt, financing and capital lease obligations
|
6,554
|
|
|
4,690
|
|
||
Total current liabilities
|
13,637
|
|
|
11,963
|
|
||
Long-term debt, financing and capital lease obligations
|
30,759
|
|
|
29,268
|
|
||
Deferred tax liabilities
|
14,238
|
|
|
13,959
|
|
||
Other liabilities
|
3,665
|
|
|
4,002
|
|
||
Total liabilities
|
62,299
|
|
|
59,192
|
|
||
Commitments and contingencies
|
|
|
|
||||
Stockholders' equity:
|
|
|
|
||||
Common stock, voting, par value $0.01 per share, 9.0 billion authorized, 3.985 billion and 3.975 billion issued, respectively
|
40
|
|
|
40
|
|
||
Paid-in capital
|
27,694
|
|
|
27,563
|
|
||
Treasury shares, at cost
|
—
|
|
|
(3
|
)
|
||
Accumulated deficit
|
(8,301
|
)
|
|
(7,378
|
)
|
||
Accumulated other comprehensive loss
|
(437
|
)
|
|
(439
|
)
|
||
Total stockholders' equity
|
18,996
|
|
|
19,783
|
|
||
Total liabilities and stockholders' equity
|
$
|
81,295
|
|
|
$
|
78,975
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
December 31,
|
|
December 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in millions, except per share amounts)
|
||||||||||||||
Net operating revenues:
|
|
|
|
|
|
|
|
||||||||
Service
|
$
|
6,323
|
|
|
$
|
6,683
|
|
|
$
|
19,252
|
|
|
$
|
20,600
|
|
Equipment
|
2,226
|
|
|
1,424
|
|
|
5,556
|
|
|
3,509
|
|
||||
|
8,549
|
|
|
8,107
|
|
|
24,808
|
|
|
24,109
|
|
||||
Net operating expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of services (exclusive of depreciation and amortization included below)
|
1,925
|
|
|
2,348
|
|
|
6,125
|
|
|
7,194
|
|
||||
Cost of products (exclusive of depreciation and amortization included below)
|
1,985
|
|
|
1,589
|
|
|
5,097
|
|
|
4,244
|
|
||||
Selling, general and administrative
|
2,080
|
|
|
2,129
|
|
|
5,992
|
|
|
6,540
|
|
||||
Severance and exit costs
|
19
|
|
|
209
|
|
|
30
|
|
|
247
|
|
||||
Depreciation
|
1,837
|
|
|
1,549
|
|
|
5,227
|
|
|
4,202
|
|
||||
Amortization
|
255
|
|
|
316
|
|
|
813
|
|
|
994
|
|
||||
Other, net
|
137
|
|
|
164
|
|
|
230
|
|
|
386
|
|
||||
|
8,238
|
|
|
8,304
|
|
|
23,514
|
|
|
23,807
|
|
||||
Operating income (loss)
|
311
|
|
|
(197
|
)
|
|
1,294
|
|
|
302
|
|
||||
Other (expense) income:
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
(619
|
)
|
|
(546
|
)
|
|
(1,864
|
)
|
|
(1,630
|
)
|
||||
Other (expense) income, net
|
(60
|
)
|
|
4
|
|
|
(67
|
)
|
|
13
|
|
||||
|
(679
|
)
|
|
(542
|
)
|
|
(1,931
|
)
|
|
(1,617
|
)
|
||||
Loss before income taxes
|
(368
|
)
|
|
(739
|
)
|
|
(637
|
)
|
|
(1,315
|
)
|
||||
Income tax expense
|
(111
|
)
|
|
(97
|
)
|
|
(286
|
)
|
|
(126
|
)
|
||||
Net loss
|
$
|
(479
|
)
|
|
$
|
(836
|
)
|
|
$
|
(923
|
)
|
|
$
|
(1,441
|
)
|
|
|
|
|
|
|
|
|
||||||||
Basic net loss per common share
|
$
|
(0.12
|
)
|
|
$
|
(0.21
|
)
|
|
$
|
(0.23
|
)
|
|
$
|
(0.36
|
)
|
Diluted net loss per common share
|
$
|
(0.12
|
)
|
|
$
|
(0.21
|
)
|
|
$
|
(0.23
|
)
|
|
$
|
(0.36
|
)
|
Basic weighted average common shares outstanding
|
3,983
|
|
|
3,970
|
|
|
3,979
|
|
|
3,969
|
|
||||
Diluted weighted average common shares outstanding
|
3,983
|
|
|
3,970
|
|
|
3,979
|
|
|
3,969
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other comprehensive (loss) income, net of tax:
|
|
|
|
|
|
|
|
||||||||
Net unrealized holding losses on securities and other
|
$
|
(5
|
)
|
|
$
|
(9
|
)
|
|
$
|
—
|
|
|
$
|
(16
|
)
|
Net unrecognized net periodic pension and other postretirement benefits
|
—
|
|
|
2
|
|
|
2
|
|
|
5
|
|
||||
Other comprehensive (loss) income
|
(5
|
)
|
|
(7
|
)
|
|
2
|
|
|
(11
|
)
|
||||
Comprehensive loss
|
$
|
(484
|
)
|
|
$
|
(843
|
)
|
|
$
|
(921
|
)
|
|
$
|
(1,452
|
)
|
|
Nine Months Ended
|
||||||
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(in millions)
|
||||||
Cash flows from operating activities:
|
|
|
|
||||
Net loss
|
$
|
(923
|
)
|
|
$
|
(1,441
|
)
|
Adjustments to reconcile net loss to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
6,040
|
|
|
5,196
|
|
||
Provision for losses on accounts receivable
|
406
|
|
|
385
|
|
||
Share-based and long-term incentive compensation expense
|
57
|
|
|
58
|
|
||
Deferred income tax expense
|
276
|
|
|
120
|
|
||
Gains from asset dispositions and exchanges
|
(354
|
)
|
|
—
|
|
||
Amortization of long-term debt premiums, net
|
(234
|
)
|
|
(236
|
)
|
||
Loss on disposal of property, plant and equipment
|
368
|
|
|
228
|
|
||
Contract terminations
|
96
|
|
|
—
|
|
||
Other changes in assets and liabilities:
|
|
|
|
||||
Accounts and notes receivable
|
(542
|
)
|
|
(1,482
|
)
|
||
Deferred purchase price from sale of receivables
|
(220
|
)
|
|
2,048
|
|
||
Inventories and other current assets
|
(2,254
|
)
|
|
(2,165
|
)
|
||
Accounts payable and other current liabilities
|
(97
|
)
|
|
(816
|
)
|
||
Non-current assets and liabilities, net
|
(313
|
)
|
|
112
|
|
||
Other, net
|
594
|
|
|
596
|
|
||
Net cash provided by operating activities
|
2,900
|
|
|
2,603
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures - network and other
|
(1,421
|
)
|
|
(3,958
|
)
|
||
Capital expenditures - leased devices
|
(1,530
|
)
|
|
(1,724
|
)
|
||
Expenditures relating to FCC licenses
|
(46
|
)
|
|
(75
|
)
|
||
Proceeds from sales and maturities of short-term investments
|
2,649
|
|
|
377
|
|
||
Purchases of short-term investments
|
(4,998
|
)
|
|
(252
|
)
|
||
Proceeds from sales of assets and FCC licenses
|
126
|
|
|
36
|
|
||
Proceeds from sale-leaseback transaction
|
—
|
|
|
1,136
|
|
||
Other, net
|
26
|
|
|
(25
|
)
|
||
Net cash used in investing activities
|
(5,194
|
)
|
|
(4,485
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from debt and financings
|
6,830
|
|
|
755
|
|
||
Repayments of debt, financing and capital lease obligations
|
(3,266
|
)
|
|
(727
|
)
|
||
Debt financing costs
|
(272
|
)
|
|
(1
|
)
|
||
Other, net
|
68
|
|
|
20
|
|
||
Net cash provided by financing activities
|
3,360
|
|
|
47
|
|
||
Net increase (decrease) in cash and cash equivalents
|
1,066
|
|
|
(1,835
|
)
|
||
Cash and cash equivalents, beginning of period
|
2,641
|
|
|
4,010
|
|
||
Cash and cash equivalents, end of period
|
$
|
3,707
|
|
|
$
|
2,175
|
|
|
Common Stock
|
|
Paid-in
Capital
|
|
Treasury Shares
|
|
Accumulated
Deficit
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total
|
||||||||||||||||||
|
Shares
|
|
Amount
|
Shares
|
|
Amount
|
|||||||||||||||||||||||
Balance, March 31, 2016
|
3,974
|
|
|
$
|
40
|
|
|
$
|
27,563
|
|
|
1
|
|
|
$
|
(3
|
)
|
|
$
|
(7,378
|
)
|
|
$
|
(439
|
)
|
|
$
|
19,783
|
|
Net loss
|
|
|
|
|
|
|
|
|
|
|
(923
|
)
|
|
|
|
(923
|
)
|
||||||||||||
Other comprehensive income, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
2
|
|
||||||||||||
Issuance of common stock, net
|
11
|
|
|
|
|
32
|
|
|
(1
|
)
|
|
3
|
|
|
|
|
|
|
35
|
|
|||||||||
Share-based compensation expense
|
|
|
|
|
56
|
|
|
|
|
|
|
|
|
|
|
56
|
|
||||||||||||
Capital contribution by SoftBank
|
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
6
|
|
||||||||||||
Other, net
|
|
|
|
|
37
|
|
|
|
|
|
|
|
|
|
|
37
|
|
||||||||||||
Balance, December 31, 2016
|
3,985
|
|
|
$
|
40
|
|
|
$
|
27,694
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
(8,301
|
)
|
|
$
|
(437
|
)
|
|
$
|
18,996
|
|
|
|
Page
Reference
|
1.
|
||
|
|
|
2.
|
||
|
|
|
3.
|
||
|
|
|
4.
|
||
|
|
|
5.
|
||
|
|
|
6.
|
||
|
|
|
7.
|
||
|
|
|
8.
|
||
|
|
|
9.
|
||
|
|
|
10.
|
||
|
|
|
11.
|
||
|
|
|
12.
|
||
|
|
|
13.
|
||
|
|
|
14.
|
||
|
|
|
15.
|
||
|
|
|
16.
|
||
|
|
|
Note 1.
|
Basis of Presentation
|
Note 2.
|
New Accounting Pronouncements
|
Note 3.
|
Funding Sources
|
Note 4.
|
Financial Instruments
|
|
Carrying amount at December 31, 2016
|
|
Estimated Fair Value Using Input Type
|
||||||||||||||||
|
|
Quoted prices in active markets
|
|
Observable
|
|
Unobservable
|
|
Total estimated fair value
|
|||||||||||
|
(in millions)
|
||||||||||||||||||
Current and long-term debt
|
$
|
36,870
|
|
|
$
|
29,457
|
|
|
$
|
4,391
|
|
|
$
|
4,758
|
|
|
$
|
38,606
|
|
|
Carrying amount at March 31, 2016
|
|
Estimated Fair Value Using Input Type
|
||||||||||||||||
|
|
Quoted prices in active markets
|
|
Observable
|
|
Unobservable
|
|
Total estimated fair value
|
|||||||||||
|
(in millions)
|
||||||||||||||||||
Current and long-term debt
|
$
|
33,645
|
|
|
$
|
21,757
|
|
|
$
|
4,474
|
|
|
$
|
2,130
|
|
|
$
|
28,361
|
|
Note 5.
|
Property, Plant and Equipment
|
|
December 31,
2016 |
|
March 31,
2016 |
||||
|
(in millions)
|
||||||
Land
|
$
|
260
|
|
|
$
|
260
|
|
Network equipment, site costs and related software
|
21,696
|
|
|
21,500
|
|
||
Buildings and improvements
|
808
|
|
|
798
|
|
||
Non-network internal use software, office equipment, leased devices and other
|
8,450
|
|
|
6,182
|
|
||
Construction in progress
|
1,460
|
|
|
1,249
|
|
||
Less: accumulated depreciation
|
(13,341
|
)
|
|
(9,692
|
)
|
||
Property, plant and equipment, net
|
$
|
19,333
|
|
|
$
|
20,297
|
|
|
December 31,
2016 |
|
March 31,
2016 |
||||
|
(in millions)
|
||||||
Leased devices
|
$
|
7,099
|
|
|
$
|
4,913
|
|
Less: accumulated depreciation
|
(2,645
|
)
|
|
(1,267
|
)
|
||
Leased devices, net
|
$
|
4,454
|
|
|
$
|
3,646
|
|
Note 6.
|
Intangible Assets
|
|
March 31,
2016 |
|
Net
Additions
|
|
December 31,
2016 |
||||||
|
(in millions)
|
||||||||||
FCC licenses
(1)
|
$
|
36,038
|
|
|
$
|
483
|
|
|
$
|
36,521
|
|
Trademarks
|
4,035
|
|
|
—
|
|
|
4,035
|
|
|||
Goodwill
|
6,575
|
|
|
4
|
|
|
6,579
|
|
|||
|
$
|
46,648
|
|
|
$
|
487
|
|
|
$
|
47,135
|
|
(1)
|
Net additions within FCC licenses includes
$85 million
of spectrum acquired from the Shentel transaction (see Note 8. Long-Term Debt, Financing and Capital Lease Obligations) and an increase from spectrum license exchanges described below during the
nine-month period ended
December 31, 2016
.
|
|
|
|
December 31, 2016
|
|
March 31, 2016
|
||||||||||||||||||||
|
Useful Lives
|
|
Gross
Carrying Value |
|
Accumulated
Amortization |
|
Net
Carrying Value |
|
Gross
Carrying Value |
|
Accumulated
Amortization |
|
Net
Carrying Value |
||||||||||||
|
|
|
(in millions)
|
||||||||||||||||||||||
Customer relationships
|
4 to 8 years
|
|
$
|
6,923
|
|
|
$
|
(4,824
|
)
|
|
$
|
2,099
|
|
|
$
|
6,923
|
|
|
$
|
(4,045
|
)
|
|
$
|
2,878
|
|
Other intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Favorable spectrum leases
|
23 years
|
|
870
|
|
|
(129
|
)
|
|
741
|
|
|
881
|
|
|
(110
|
)
|
|
771
|
|
||||||
Favorable tower leases
|
3 to 7 years
|
|
589
|
|
|
(367
|
)
|
|
222
|
|
|
589
|
|
|
(302
|
)
|
|
287
|
|
||||||
Trademarks
|
34 years
|
|
520
|
|
|
(55
|
)
|
|
465
|
|
|
520
|
|
|
(43
|
)
|
|
477
|
|
||||||
Other
|
4 to 10 years
|
|
90
|
|
|
(35
|
)
|
|
55
|
|
|
83
|
|
|
(27
|
)
|
|
56
|
|
||||||
Total other intangible assets
|
|
2,069
|
|
|
(586
|
)
|
|
1,483
|
|
|
2,073
|
|
|
(482
|
)
|
|
1,591
|
|
|||||||
Total definite-lived intangible assets
|
|
$
|
8,992
|
|
|
$
|
(5,410
|
)
|
|
$
|
3,582
|
|
|
$
|
8,996
|
|
|
$
|
(4,527
|
)
|
|
$
|
4,469
|
|
Note 7.
|
Accounts Payable
|
Note 8.
|
Long-Term Debt, Financing and Capital Lease Obligations
|
|
Interest Rates
|
|
Maturities
|
|
December 31,
2016 |
|
March 31,
2016 |
||||||||
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||
Notes
|
|
|
|
|
|
|
|
|
|
|
|
||||
Senior notes
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sprint Corporation
|
7.13
|
-
|
7.88%
|
|
2021
|
-
|
2025
|
|
$
|
10,500
|
|
|
$
|
10,500
|
|
Sprint Communications, Inc.
|
6.00
|
-
|
11.50%
|
|
2017
|
-
|
2022
|
|
7,280
|
|
|
9,280
|
|
||
Sprint Capital Corporation
|
6.88
|
-
|
8.75%
|
|
2019
|
-
|
2032
|
|
6,204
|
|
|
6,204
|
|
||
Senior secured notes
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sprint Spectrum Co LLC, Sprint Spectrum Co II LLC, Sprint Spectrum Co III LLC
|
3.36%
|
|
2021
|
|
3,500
|
|
|
—
|
|
||||||
Guaranteed notes
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sprint Communications, Inc.
|
7.00
|
-
|
9.00%
|
|
2018
|
-
|
2020
|
|
4,000
|
|
|
4,000
|
|
||
Secured notes
|
|
|
|
|
|
|
|
|
|
|
|
||||
Clearwire Communications LLC
(1)
|
14.75%
|
|
2016
|
|
—
|
|
|
300
|
|
||||||
Exchangeable notes
|
|
|
|
|
|
|
|
|
|
|
|
||||
Clearwire Communications LLC
(1)(2)
|
8.25%
|
|
2017
|
|
629
|
|
|
629
|
|
||||||
Credit facilities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Bank credit facility
|
4.00%
|
|
2018
|
|
—
|
|
|
—
|
|
||||||
Export Development Canada (EDC)
|
4.48
|
-
|
6.23%
|
|
2017
|
-
|
2019
|
|
550
|
|
|
550
|
|
||
Secured equipment credit facilities
|
2.03
|
-
|
3.27%
|
|
2017
|
-
|
2021
|
|
586
|
|
|
805
|
|
||
Financing obligations, capital lease and other obligations
|
2.35
|
-
|
10.63%
|
|
2017
|
-
|
2024
|
|
3,881
|
|
|
1,093
|
|
||
Net premiums and debt financing costs
|
|
|
|
|
|
|
|
|
183
|
|
|
597
|
|
||
|
|
|
|
|
|
|
|
|
37,313
|
|
|
33,958
|
|
||
Less current portion
|
|
|
|
|
|
|
|
|
(6,554
|
)
|
|
(4,690
|
)
|
||
Long-term debt, financing and capital lease obligations
|
|
|
|
|
|
|
|
|
$
|
30,759
|
|
|
$
|
29,268
|
|
Note 9.
|
Severance and Exit Costs
|
|
March 31,
2016 |
|
Net
(Benefit) Expense
|
|
Cash Payments
and Other
|
|
December 31,
2016 |
||||||||
|
(in millions)
|
||||||||||||||
Lease exit costs
|
$
|
338
|
|
|
$
|
(3
|
)
|
(1)
|
$
|
(100
|
)
|
|
$
|
235
|
|
Severance costs
|
150
|
|
|
15
|
|
(2)
|
(145
|
)
|
|
20
|
|
||||
Access exit costs
|
37
|
|
|
20
|
|
(3)
|
(24
|
)
|
|
33
|
|
||||
|
$
|
525
|
|
|
$
|
32
|
|
|
$
|
(269
|
)
|
|
$
|
288
|
|
(1)
|
For the
three and nine-month periods ended
December 31, 2016
, we recognized costs of
$2 million
(Wireless only) and a benefit of
$3 million
(
$5 million
benefit Wireless,
$2 million
costs Wireline), respectively. The Wireless benefit for the nine-month period resulted from the reversal of certain lease exit cost reserves associated with the shutdown of the Clearwire WiMAX network on March 31, 2016.
|
(2)
|
For the
three and nine-month periods ended
December 31, 2016
, we recognized costs of
$6 million
(Wireless only) and
$15 million
(Wireless only), respectively.
|
(3)
|
For the
three and nine-month periods ended
December 31, 2016
,
$11 million
(
$6 million
Wireless
,
$5 million
Wireline) and
$18 million
(
$8 million
Wireless,
$10 million
Wireline), respectively, were recognized as "Severance and exit costs." For the
nine-month period ended
December 31, 2016
,
$2 million
(Wireline only) was recognized as "Cost of services."
|
Note 10.
|
Income Taxes
|
|
Nine Months Ended
December 31, |
||||||
|
2016
|
|
2015
|
||||
|
(in millions)
|
||||||
Income tax benefit at the federal statutory rate
|
$
|
223
|
|
|
$
|
460
|
|
Effect of:
|
|
|
|
||||
State income taxes, net of federal income tax effect
|
8
|
|
|
33
|
|
||
State law changes, net of federal income tax effect
|
3
|
|
|
23
|
|
||
Increase deferred tax liability on FCC licenses
|
(46
|
)
|
|
—
|
|
||
Tax benefit from organizational restructuring
|
42
|
|
|
—
|
|
||
Change in federal and state valuation allowance
|
(522
|
)
|
|
(647
|
)
|
||
Other, net
|
6
|
|
|
5
|
|
||
Income tax expense
|
$
|
(286
|
)
|
|
$
|
(126
|
)
|
Effective income tax rate
|
(44.9
|
)%
|
|
(9.6
|
)%
|
Note 11.
|
Commitments and Contingencies
|
Note 12.
|
Per Share Data
|
Note 13.
|
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 (handsets and tablets) 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 subscribers, in addition to our Wireless segment.
|
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
(2)
|
|
|
|
|
|
|
(47
|
)
|
|||||||
Operating income
|
|
|
|
|
|
|
311
|
|
|||||||
Interest expense
|
|
|
|
|
|
|
(619
|
)
|
|||||||
Other expense, net
|
|
|
|
|
|
|
(60
|
)
|
|||||||
Loss before income taxes
|
|
|
|
|
|
|
$
|
(368
|
)
|
||||||
|
|
|
|
|
|
|
|
||||||||
Statement of Operations Information
|
Wireless
|
|
Wireline
|
|
Corporate,
Other and Eliminations |
|
Consolidated
|
||||||||
|
(in millions)
|
||||||||||||||
Three Months Ended December 31, 2015
|
|
|
|
|
|
|
|
||||||||
Net operating revenues
|
$
|
7,670
|
|
|
$
|
434
|
|
|
$
|
3
|
|
|
$
|
8,107
|
|
Inter-segment revenues
(1)
|
—
|
|
|
147
|
|
|
(147
|
)
|
|
—
|
|
||||
Total segment operating expenses
|
(5,804
|
)
|
|
(548
|
)
|
|
143
|
|
|
(6,209
|
)
|
||||
Segment earnings
|
$
|
1,866
|
|
|
$
|
33
|
|
|
$
|
(1
|
)
|
|
1,898
|
|
|
Less:
|
|
|
|
|
|
|
|
||||||||
Depreciation
|
|
|
|
|
|
|
(1,549
|
)
|
|||||||
Amortization
|
|
|
|
|
|
|
(316
|
)
|
|||||||
Other, net
(2)
|
|
|
|
|
|
|
(230
|
)
|
|||||||
Operating loss
|
|
|
|
|
|
|
(197
|
)
|
|||||||
Interest expense
|
|
|
|
|
|
|
(546
|
)
|
|||||||
Other income, net
|
|
|
|
|
|
|
4
|
|
|||||||
Loss before income taxes
|
|
|
|
|
|
|
$
|
(739
|
)
|
||||||
|
|
|
|
|
|
|
|
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
(2)
|
|
|
|
|
|
|
80
|
|
|||||||
Operating income
|
|
|
|
|
|
|
1,294
|
|
|||||||
Interest expense
|
|
|
|
|
|
|
(1,864
|
)
|
|||||||
Other expense, net
|
|
|
|
|
|
|
(67
|
)
|
|||||||
Loss before income taxes
|
|
|
|
|
|
|
$
|
(637
|
)
|
||||||
|
|
|
|
|
|
|
|
||||||||
Statement of Operations Information
|
Wireless
|
|
Wireline
|
|
Corporate,
Other and Eliminations |
|
Consolidated
|
||||||||
|
(in millions)
|
||||||||||||||
Nine Months Ended December 31, 2015
|
|
|
|
|
|
|
|
||||||||
Net operating revenues
|
$
|
22,726
|
|
|
$
|
1,372
|
|
|
$
|
11
|
|
|
$
|
24,109
|
|
Inter-segment revenues
(1)
|
—
|
|
|
448
|
|
|
(448
|
)
|
|
—
|
|
||||
Total segment operating expenses
|
(16,807
|
)
|
|
(1,749
|
)
|
|
435
|
|
|
(18,121
|
)
|
||||
Segment earnings
|
$
|
5,919
|
|
|
$
|
71
|
|
|
$
|
(2
|
)
|
|
5,988
|
|
|
Less:
|
|
|
|
|
|
|
|
||||||||
Depreciation
|
|
|
|
|
|
|
(4,202
|
)
|
|||||||
Amortization
|
|
|
|
|
|
|
(994
|
)
|
|||||||
Other, net
(2)
|
|
|
|
|
|
|
(490
|
)
|
|||||||
Operating income
|
|
|
|
|
|
|
302
|
|
|||||||
Interest expense
|
|
|
|
|
|
|
(1,630
|
)
|
|||||||
Other income, net
|
|
|
|
|
|
|
13
|
|
|||||||
Loss before income taxes
|
|
|
|
|
|
|
$
|
(1,315
|
)
|
||||||
|
|
|
|
|
|
|
|
||||||||
Other Information
|
Wireless
|
|
Wireline
|
|
Corporate and
Other
|
|
Consolidated
|
||||||||
|
(in millions)
|
||||||||||||||
Capital expenditures for the nine months ended December 31, 2016
|
$
|
2,654
|
|
|
$
|
74
|
|
|
$
|
223
|
|
|
$
|
2,951
|
|
Capital expenditures for the nine months ended December 31, 2015
|
$
|
5,236
|
|
|
$
|
205
|
|
|
$
|
241
|
|
|
$
|
5,682
|
|
(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 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 a
$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 recognized in the three-month period ended
December 31, 2016
. 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
$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. Other, net for the
three and nine-month periods ended
December 31, 2015
consists of
$209 million
and
$247 million
, respectively, of severance and exit costs and
$21 million
and
$178 million
, respectively, of accruals for legal reserves related to various pending legal suits and proceedings. In addition, the
nine-month period ended
December 31, 2015
includes an
$85 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 and
$20 million
of income resulting from a revision to our estimate of a previously recorded reserve.
Losses totaling approximately
$143 million
relating to the write-off of leased devices associated with lease cancellations of
$78 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 for the
three and nine-month periods ended
December 31, 2015
.
|
Operating Revenues by Service and Products
|
Wireless
|
|
Wireline
|
|
Corporate,
Other and
Eliminations
(1)
|
|
Consolidated
|
||||||||
|
(in millions)
|
||||||||||||||
Three Months Ended December 31, 2016
|
|
|
|
|
|
|
|
||||||||
Wireless services
|
$
|
5,763
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,763
|
|
Wireless equipment
|
2,226
|
|
|
—
|
|
|
—
|
|
|
2,226
|
|
||||
Voice
|
—
|
|
|
153
|
|
|
(61
|
)
|
|
92
|
|
||||
Data
|
—
|
|
|
41
|
|
|
(23
|
)
|
|
18
|
|
||||
Internet
|
—
|
|
|
281
|
|
|
(38
|
)
|
|
243
|
|
||||
Other
|
183
|
|
|
22
|
|
|
2
|
|
|
207
|
|
||||
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)
|
||||||||||||||
Three Months Ended December 31, 2015
|
|
|
|
|
|
|
|
||||||||
Wireless services
|
$
|
6,058
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,058
|
|
Wireless equipment
|
1,424
|
|
|
—
|
|
|
—
|
|
|
1,424
|
|
||||
Voice
|
—
|
|
|
201
|
|
|
(82
|
)
|
|
119
|
|
||||
Data
|
—
|
|
|
42
|
|
|
(17
|
)
|
|
25
|
|
||||
Internet
|
—
|
|
|
317
|
|
|
(48
|
)
|
|
269
|
|
||||
Other
|
188
|
|
|
21
|
|
|
3
|
|
|
212
|
|
||||
Total net operating revenues
|
$
|
7,670
|
|
|
$
|
581
|
|
|
$
|
(144
|
)
|
|
$
|
8,107
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Revenues by Service and Products
|
Wireless
|
|
Wireline
|
|
Corporate,
Other and
Eliminations
(1)
|
|
Consolidated
|
||||||||
|
(in millions)
|
||||||||||||||
Nine Months Ended December 31, 2016
|
|
|
|
|
|
|
|
||||||||
Wireless services
|
$
|
17,555
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17,555
|
|
Wireless equipment
|
5,556
|
|
|
—
|
|
|
—
|
|
|
5,556
|
|
||||
Voice
|
—
|
|
|
506
|
|
|
(196
|
)
|
|
310
|
|
||||
Data
|
—
|
|
|
127
|
|
|
(67
|
)
|
|
60
|
|
||||
Internet
|
—
|
|
|
871
|
|
|
(119
|
)
|
|
752
|
|
||||
Other
|
509
|
|
|
59
|
|
|
7
|
|
|
575
|
|
||||
Total net operating revenues
|
$
|
23,620
|
|
|
$
|
1,563
|
|
|
$
|
(375
|
)
|
|
$
|
24,808
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Revenues by Service and Products
|
Wireless
|
|
Wireline
|
|
Corporate,
Other and
Eliminations
(1)
|
|
Consolidated
|
||||||||
|
(in millions)
|
||||||||||||||
Nine Months Ended December 31, 2015
|
|
|
|
|
|
|
|
||||||||
Wireless services
|
$
|
18,631
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18,631
|
|
Wireless equipment
|
3,509
|
|
|
—
|
|
|
—
|
|
|
3,509
|
|
||||
Voice
|
—
|
|
|
646
|
|
|
(249
|
)
|
|
397
|
|
||||
Data
|
—
|
|
|
134
|
|
|
(55
|
)
|
|
79
|
|
||||
Internet
|
—
|
|
|
968
|
|
|
(140
|
)
|
|
828
|
|
||||
Other
|
586
|
|
|
72
|
|
|
7
|
|
|
665
|
|
||||
Total net operating revenues
|
$
|
22,726
|
|
|
$
|
1,820
|
|
|
$
|
(437
|
)
|
|
$
|
24,109
|
|
|
|
|
|
|
|
|
|
(1)
|
Revenues eliminated in consolidation consist primarily of wireline services provided to the Wireless segment for resale to or use by wireless subscribers.
|
Note 14.
|
Related-Party Transactions
|
Consolidated balance sheets:
|
December 31,
2016 |
|
March 31,
2016 |
||||
|
(in millions)
|
||||||
Accounts receivable
|
$
|
219
|
|
|
$
|
197
|
|
Accounts payable
|
$
|
126
|
|
|
$
|
96
|
|
Consolidated statements of comprehensive loss:
|
Three Months Ended
December 31,
|
|
Nine Months Ended
December 31, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in millions)
|
||||||||||||||
Equipment revenues
|
$
|
480
|
|
|
$
|
598
|
|
|
$
|
1,107
|
|
|
$
|
1,375
|
|
Cost of products
|
$
|
403
|
|
|
$
|
601
|
|
|
$
|
1,021
|
|
|
$
|
1,362
|
|
Note 15.
|
Guarantor Financial Information
|
|
As of December 31, 2016
|
||||||||||||||||||
|
Parent/Issuer
|
|
Subsidiary Guarantor
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(in millions)
|
||||||||||||||||||
ASSETS
|
|||||||||||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
3,117
|
|
|
$
|
590
|
|
|
$
|
—
|
|
|
$
|
3,707
|
|
Short-term investments
|
—
|
|
|
2,329
|
|
|
20
|
|
|
—
|
|
|
2,349
|
|
|||||
Accounts and notes receivable, net
|
195
|
|
|
1
|
|
|
1,235
|
|
|
(195
|
)
|
|
1,236
|
|
|||||
Device and accessory inventory
|
—
|
|
|
—
|
|
|
1,296
|
|
|
—
|
|
|
1,296
|
|
|||||
Prepaid expenses and other current assets
|
—
|
|
|
15
|
|
|
1,969
|
|
|
—
|
|
|
1,984
|
|
|||||
Total current assets
|
195
|
|
|
5,462
|
|
|
5,110
|
|
|
(195
|
)
|
|
10,572
|
|
|||||
Investments in subsidiaries
|
18,988
|
|
|
23,932
|
|
|
—
|
|
|
(42,920
|
)
|
|
—
|
|
|||||
Property, plant and equipment, net
|
—
|
|
|
—
|
|
|
19,333
|
|
|
—
|
|
|
19,333
|
|
|||||
Due from consolidated affiliate
|
25
|
|
|
13,125
|
|
|
—
|
|
|
(13,150
|
)
|
|
—
|
|
|||||
Note receivable from consolidated affiliate
|
10,390
|
|
|
575
|
|
|
—
|
|
|
(10,965
|
)
|
|
—
|
|
|||||
Intangible assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill
|
—
|
|
|
—
|
|
|
6,579
|
|
|
—
|
|
|
6,579
|
|
|||||
FCC licenses and other
|
—
|
|
|
—
|
|
|
40,556
|
|
|
—
|
|
|
40,556
|
|
|||||
Definite-lived intangible assets, net
|
—
|
|
|
—
|
|
|
3,582
|
|
|
—
|
|
|
3,582
|
|
|||||
Other assets
|
—
|
|
|
103
|
|
|
570
|
|
|
—
|
|
|
673
|
|
|||||
Total assets
|
$
|
29,598
|
|
|
$
|
43,197
|
|
|
$
|
75,730
|
|
|
$
|
(67,230
|
)
|
|
$
|
81,295
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|||||||||||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,894
|
|
|
$
|
—
|
|
|
$
|
2,894
|
|
Accrued expenses and other current liabilities
|
212
|
|
|
560
|
|
|
3,612
|
|
|
(195
|
)
|
|
4,189
|
|
|||||
Current portion of long-term debt, financing and capital lease obligations
|
—
|
|
|
2,583
|
|
|
3,971
|
|
|
—
|
|
|
6,554
|
|
|||||
Total current liabilities
|
212
|
|
|
3,143
|
|
|
10,477
|
|
|
(195
|
)
|
|
13,637
|
|
|||||
Long-term debt, financing and capital lease obligations
|
10,390
|
|
|
9,773
|
|
|
10,596
|
|
|
—
|
|
|
30,759
|
|
|||||
Deferred tax liabilities
|
—
|
|
|
—
|
|
|
14,238
|
|
|
—
|
|
|
14,238
|
|
|||||
Note payable due to consolidated affiliate
|
—
|
|
|
10,390
|
|
|
575
|
|
|
(10,965
|
)
|
|
—
|
|
|||||
Other liabilities
|
—
|
|
|
903
|
|
|
2,762
|
|
|
—
|
|
|
3,665
|
|
|||||
Due to consolidated affiliate
|
—
|
|
|
—
|
|
|
13,150
|
|
|
(13,150
|
)
|
|
—
|
|
|||||
Total liabilities
|
10,602
|
|
|
24,209
|
|
|
51,798
|
|
|
(24,310
|
)
|
|
62,299
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
||||||||||
Total stockholders' equity
|
18,996
|
|
|
18,988
|
|
|
23,932
|
|
|
(42,920
|
)
|
|
18,996
|
|
|||||
Total liabilities and stockholders' equity
|
$
|
29,598
|
|
|
$
|
43,197
|
|
|
$
|
75,730
|
|
|
$
|
(67,230
|
)
|
|
$
|
81,295
|
|
|
As of March 31, 2016
|
||||||||||||||||||
|
Parent/Issuer
|
|
Subsidiary Guarantor
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(in millions)
|
||||||||||||||||||
ASSETS
|
|||||||||||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
2,154
|
|
|
$
|
487
|
|
|
$
|
—
|
|
|
$
|
2,641
|
|
Accounts and notes receivable, net
|
87
|
|
|
27
|
|
|
1,099
|
|
|
(114
|
)
|
|
1,099
|
|
|||||
Device and accessory inventory
|
—
|
|
|
—
|
|
|
1,173
|
|
|
—
|
|
|
1,173
|
|
|||||
Prepaid expenses and other current assets
|
—
|
|
|
12
|
|
|
1,908
|
|
|
—
|
|
|
1,920
|
|
|||||
Total current assets
|
87
|
|
|
2,193
|
|
|
4,667
|
|
|
(114
|
)
|
|
6,833
|
|
|||||
Investments in subsidiaries
|
19,783
|
|
|
23,129
|
|
|
—
|
|
|
(42,912
|
)
|
|
—
|
|
|||||
Property, plant and equipment, net
|
—
|
|
|
—
|
|
|
20,297
|
|
|
—
|
|
|
20,297
|
|
|||||
Due from consolidated affiliate
|
50
|
|
|
19,518
|
|
|
—
|
|
|
(19,568
|
)
|
|
—
|
|
|||||
Note receivable from consolidated affiliate
|
10,377
|
|
|
245
|
|
|
—
|
|
|
(10,622
|
)
|
|
—
|
|
|||||
Intangible assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill
|
—
|
|
|
—
|
|
|
6,575
|
|
|
—
|
|
|
6,575
|
|
|||||
FCC licenses and other
|
—
|
|
|
—
|
|
|
40,073
|
|
|
—
|
|
|
40,073
|
|
|||||
Definite-lived intangible assets, net
|
—
|
|
|
—
|
|
|
4,469
|
|
|
—
|
|
|
4,469
|
|
|||||
Other assets
|
—
|
|
|
1,127
|
|
|
620
|
|
|
(1,019
|
)
|
|
728
|
|
|||||
Total assets
|
$
|
30,297
|
|
|
$
|
46,212
|
|
|
$
|
76,701
|
|
|
$
|
(74,235
|
)
|
|
$
|
78,975
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|||||||||||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,899
|
|
|
$
|
—
|
|
|
$
|
2,899
|
|
Accrued expenses and other current liabilities
|
137
|
|
|
531
|
|
|
3,820
|
|
|
(114
|
)
|
|
4,374
|
|
|||||
Current portion of long-term debt, financing and capital lease obligations
|
—
|
|
|
3,065
|
|
|
1,625
|
|
|
—
|
|
|
4,690
|
|
|||||
Total current liabilities
|
137
|
|
|
3,596
|
|
|
8,344
|
|
|
(114
|
)
|
|
11,963
|
|
|||||
Long-term debt, financing and capital lease obligations
|
10,377
|
|
|
11,495
|
|
|
8,415
|
|
|
(1,019
|
)
|
|
29,268
|
|
|||||
Deferred tax liabilities
|
—
|
|
|
—
|
|
|
13,959
|
|
|
—
|
|
|
13,959
|
|
|||||
Note payable due to consolidated affiliate
|
—
|
|
|
10,377
|
|
|
245
|
|
|
(10,622
|
)
|
|
—
|
|
|||||
Other liabilities
|
—
|
|
|
961
|
|
|
3,041
|
|
|
—
|
|
|
4,002
|
|
|||||
Due to consolidated affiliate
|
—
|
|
|
—
|
|
|
19,568
|
|
|
(19,568
|
)
|
|
—
|
|
|||||
Total liabilities
|
10,514
|
|
|
26,429
|
|
|
53,572
|
|
|
(31,323
|
)
|
|
59,192
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
||||||||||
Total stockholders' equity
|
19,783
|
|
|
19,783
|
|
|
23,129
|
|
|
(42,912
|
)
|
|
19,783
|
|
|||||
Total liabilities and stockholders' equity
|
$
|
30,297
|
|
|
$
|
46,212
|
|
|
$
|
76,701
|
|
|
$
|
(74,235
|
)
|
|
$
|
78,975
|
|
|
For the Three Months Ended December 31, 2016
|
||||||||||||||||||
|
Parent/Issuer
|
|
Subsidiary Guarantor
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Net operating revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,549
|
|
|
$
|
—
|
|
|
$
|
8,549
|
|
Net operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of services (exclusive of depreciation and amortization included below)
|
—
|
|
|
—
|
|
|
1,925
|
|
|
—
|
|
|
1,925
|
|
|||||
Cost of products (exclusive of depreciation and amortization included below)
|
—
|
|
|
—
|
|
|
1,985
|
|
|
—
|
|
|
1,985
|
|
|||||
Selling, general and administrative
|
—
|
|
|
—
|
|
|
2,080
|
|
|
—
|
|
|
2,080
|
|
|||||
Severance and exit costs
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
19
|
|
|||||
Depreciation
|
—
|
|
|
—
|
|
|
1,837
|
|
|
—
|
|
|
1,837
|
|
|||||
Amortization
|
—
|
|
|
—
|
|
|
255
|
|
|
—
|
|
|
255
|
|
|||||
Other, net
|
—
|
|
|
—
|
|
|
137
|
|
|
—
|
|
|
137
|
|
|||||
|
—
|
|
|
—
|
|
|
8,238
|
|
|
—
|
|
|
8,238
|
|
|||||
Operating income
|
—
|
|
|
—
|
|
|
311
|
|
|
—
|
|
|
311
|
|
|||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
198
|
|
|
43
|
|
|
4
|
|
|
(233
|
)
|
|
12
|
|
|||||
Interest expense
|
(198
|
)
|
|
(409
|
)
|
|
(245
|
)
|
|
233
|
|
|
(619
|
)
|
|||||
(Losses) earnings of subsidiaries
|
(479
|
)
|
|
(38
|
)
|
|
—
|
|
|
517
|
|
|
—
|
|
|||||
Other (expense) income, net
|
—
|
|
|
(75
|
)
|
|
3
|
|
|
—
|
|
|
(72
|
)
|
|||||
|
(479
|
)
|
|
(479
|
)
|
|
(238
|
)
|
|
517
|
|
|
(679
|
)
|
|||||
(Loss) income before income taxes
|
(479
|
)
|
|
(479
|
)
|
|
73
|
|
|
517
|
|
|
(368
|
)
|
|||||
Income tax expense
|
—
|
|
|
—
|
|
|
(111
|
)
|
|
—
|
|
|
(111
|
)
|
|||||
Net (loss) income
|
(479
|
)
|
|
(479
|
)
|
|
(38
|
)
|
|
517
|
|
|
(479
|
)
|
|||||
Other comprehensive (loss) income
|
(5
|
)
|
|
(5
|
)
|
|
(4
|
)
|
|
9
|
|
|
(5
|
)
|
|||||
Comprehensive (loss) income
|
$
|
(484
|
)
|
|
$
|
(484
|
)
|
|
$
|
(42
|
)
|
|
$
|
526
|
|
|
$
|
(484
|
)
|
|
For the Three Months Ended December 31, 2015
|
||||||||||||||||||
|
Parent/Issuer
|
|
Subsidiary Guarantor
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Net operating revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,107
|
|
|
$
|
—
|
|
|
$
|
8,107
|
|
Net operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of services (exclusive of depreciation and amortization included below)
|
—
|
|
|
—
|
|
|
2,348
|
|
|
—
|
|
|
2,348
|
|
|||||
Cost of products (exclusive of depreciation and amortization included below)
|
—
|
|
|
—
|
|
|
1,589
|
|
|
—
|
|
|
1,589
|
|
|||||
Selling, general and administrative
|
—
|
|
|
—
|
|
|
2,129
|
|
|
—
|
|
|
2,129
|
|
|||||
Severance and exit costs
|
—
|
|
|
—
|
|
|
209
|
|
|
—
|
|
|
209
|
|
|||||
Depreciation
|
—
|
|
|
—
|
|
|
1,549
|
|
|
—
|
|
|
1,549
|
|
|||||
Amortization
|
—
|
|
|
—
|
|
|
316
|
|
|
—
|
|
|
316
|
|
|||||
Other, net
|
—
|
|
|
—
|
|
|
164
|
|
|
—
|
|
|
164
|
|
|||||
|
—
|
|
|
—
|
|
|
8,304
|
|
|
—
|
|
|
8,304
|
|
|||||
Operating loss
|
—
|
|
|
—
|
|
|
(197
|
)
|
|
—
|
|
|
(197
|
)
|
|||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
198
|
|
|
39
|
|
|
2
|
|
|
(236
|
)
|
|
3
|
|
|||||
Interest expense
|
(198
|
)
|
|
(406
|
)
|
|
(178
|
)
|
|
236
|
|
|
(546
|
)
|
|||||
(Losses) earnings of subsidiaries
|
(838
|
)
|
|
(471
|
)
|
|
—
|
|
|
1,309
|
|
|
—
|
|
|||||
Other income, net
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
|
(838
|
)
|
|
(838
|
)
|
|
(175
|
)
|
|
1,309
|
|
|
(542
|
)
|
|||||
(Loss) income before income taxes
|
(838
|
)
|
|
(838
|
)
|
|
(372
|
)
|
|
1,309
|
|
|
(739
|
)
|
|||||
Income tax benefit (expense)
|
2
|
|
|
—
|
|
|
(99
|
)
|
|
—
|
|
|
(97
|
)
|
|||||
Net (loss) income
|
(836
|
)
|
|
(838
|
)
|
|
(471
|
)
|
|
1,309
|
|
|
(836
|
)
|
|||||
Other comprehensive (loss) income
|
(7
|
)
|
|
(7
|
)
|
|
(4
|
)
|
|
11
|
|
|
(7
|
)
|
|||||
Comprehensive (loss) income
|
$
|
(843
|
)
|
|
$
|
(845
|
)
|
|
$
|
(475
|
)
|
|
$
|
1,320
|
|
|
$
|
(843
|
)
|
|
For the Nine Months Ended December 31, 2016
|
||||||||||||||||||
|
Parent/Issuer
|
|
Subsidiary Guarantor
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Net operating revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24,808
|
|
|
$
|
—
|
|
|
$
|
24,808
|
|
Net operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of services (exclusive of depreciation and amortization included below)
|
—
|
|
|
—
|
|
|
6,125
|
|
|
—
|
|
|
6,125
|
|
|||||
Cost of products (exclusive of depreciation and amortization included below)
|
—
|
|
|
—
|
|
|
5,097
|
|
|
—
|
|
|
5,097
|
|
|||||
Selling, general and administrative
|
—
|
|
|
—
|
|
|
5,992
|
|
|
—
|
|
|
5,992
|
|
|||||
Severance and exit costs
|
—
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
30
|
|
|||||
Depreciation
|
—
|
|
|
—
|
|
|
5,227
|
|
|
—
|
|
|
5,227
|
|
|||||
Amortization
|
—
|
|
|
—
|
|
|
813
|
|
|
—
|
|
|
813
|
|
|||||
Other, net
|
—
|
|
|
—
|
|
|
230
|
|
|
—
|
|
|
230
|
|
|||||
|
—
|
|
|
—
|
|
|
23,514
|
|
|
—
|
|
|
23,514
|
|
|||||
Operating income
|
—
|
|
|
—
|
|
|
1,294
|
|
|
—
|
|
|
1,294
|
|
|||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
593
|
|
|
105
|
|
|
13
|
|
|
(674
|
)
|
|
37
|
|
|||||
Interest expense
|
(593
|
)
|
|
(1,271
|
)
|
|
(674
|
)
|
|
674
|
|
|
(1,864
|
)
|
|||||
(Losses) earnings of subsidiaries
|
(923
|
)
|
|
320
|
|
|
—
|
|
|
603
|
|
|
—
|
|
|||||
Other expense, net
|
—
|
|
|
(77
|
)
|
|
(27
|
)
|
|
—
|
|
|
(104
|
)
|
|||||
|
(923
|
)
|
|
(923
|
)
|
|
(688
|
)
|
|
603
|
|
|
(1,931
|
)
|
|||||
(Loss) income before income taxes
|
(923
|
)
|
|
(923
|
)
|
|
606
|
|
|
603
|
|
|
(637
|
)
|
|||||
Income tax expense
|
—
|
|
|
—
|
|
|
(286
|
)
|
|
—
|
|
|
(286
|
)
|
|||||
Net (loss) income
|
(923
|
)
|
|
(923
|
)
|
|
320
|
|
|
603
|
|
|
(923
|
)
|
|||||
Other comprehensive income (loss)
|
2
|
|
|
2
|
|
|
3
|
|
|
(5
|
)
|
|
2
|
|
|||||
Comprehensive (loss) income
|
$
|
(921
|
)
|
|
$
|
(921
|
)
|
|
$
|
323
|
|
|
$
|
598
|
|
|
$
|
(921
|
)
|
|
For the Nine Months Ended December 31, 2015
|
||||||||||||||||||
|
Parent/Issuer
|
|
Subsidiary Guarantor
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Net operating revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24,109
|
|
|
$
|
—
|
|
|
$
|
24,109
|
|
Net operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of services (exclusive of depreciation and amortization included below)
|
—
|
|
|
—
|
|
|
7,194
|
|
|
—
|
|
|
7,194
|
|
|||||
Cost of products (exclusive of depreciation and amortization included below)
|
—
|
|
|
—
|
|
|
4,244
|
|
|
—
|
|
|
4,244
|
|
|||||
Selling, general and administrative
|
—
|
|
|
—
|
|
|
6,540
|
|
|
—
|
|
|
6,540
|
|
|||||
Severance and exit costs
|
—
|
|
|
—
|
|
|
247
|
|
|
—
|
|
|
247
|
|
|||||
Depreciation
|
—
|
|
|
—
|
|
|
4,202
|
|
|
—
|
|
|
4,202
|
|
|||||
Amortization
|
—
|
|
|
—
|
|
|
994
|
|
|
—
|
|
|
994
|
|
|||||
Other, net
|
—
|
|
|
—
|
|
|
386
|
|
|
—
|
|
|
386
|
|
|||||
|
—
|
|
|
—
|
|
|
23,807
|
|
|
—
|
|
|
23,807
|
|
|||||
Operating income
|
—
|
|
|
—
|
|
|
302
|
|
|
—
|
|
|
302
|
|
|||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
593
|
|
|
118
|
|
|
3
|
|
|
(707
|
)
|
|
7
|
|
|||||
Interest expense
|
(593
|
)
|
|
(1,220
|
)
|
|
(524
|
)
|
|
707
|
|
|
(1,630
|
)
|
|||||
(Losses) earnings of subsidiaries
|
(1,443
|
)
|
|
(341
|
)
|
|
—
|
|
|
1,784
|
|
|
—
|
|
|||||
Other income, net
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|||||
|
(1,443
|
)
|
|
(1,443
|
)
|
|
(515
|
)
|
|
1,784
|
|
|
(1,617
|
)
|
|||||
(Loss) income before income taxes
|
(1,443
|
)
|
|
(1,443
|
)
|
|
(213
|
)
|
|
1,784
|
|
|
(1,315
|
)
|
|||||
Income tax benefit (expense)
|
2
|
|
|
—
|
|
|
(128
|
)
|
|
—
|
|
|
(126
|
)
|
|||||
Net (loss) income
|
(1,441
|
)
|
|
(1,443
|
)
|
|
(341
|
)
|
|
1,784
|
|
|
(1,441
|
)
|
|||||
Other comprehensive (loss) income
|
(11
|
)
|
|
(11
|
)
|
|
(6
|
)
|
|
17
|
|
|
(11
|
)
|
|||||
Comprehensive (loss) income
|
$
|
(1,452
|
)
|
|
$
|
(1,454
|
)
|
|
$
|
(347
|
)
|
|
$
|
1,801
|
|
|
$
|
(1,452
|
)
|
|
For the Nine Months Ended December 31, 2016
|
||||||||||||||||||
|
Parent/Issuer
|
|
Subsidiary Guarantor
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash (used in) provided by operating activities
|
$
|
—
|
|
|
$
|
(1,168
|
)
|
|
$
|
4,186
|
|
|
$
|
(118
|
)
|
|
$
|
2,900
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures - network and other
|
—
|
|
|
—
|
|
|
(1,421
|
)
|
|
—
|
|
|
(1,421
|
)
|
|||||
Capital expenditures - leased devices
|
—
|
|
|
—
|
|
|
(1,530
|
)
|
|
—
|
|
|
(1,530
|
)
|
|||||
Expenditures relating to FCC licenses
|
—
|
|
|
—
|
|
|
(46
|
)
|
|
—
|
|
|
(46
|
)
|
|||||
Proceeds from sales and maturities of short-term investments
|
—
|
|
|
2,614
|
|
|
35
|
|
|
—
|
|
|
2,649
|
|
|||||
Purchases of short-term investments
|
—
|
|
|
(4,943
|
)
|
|
(55
|
)
|
|
—
|
|
|
(4,998
|
)
|
|||||
Change in amounts due from/due to consolidated affiliates
|
—
|
|
|
6,865
|
|
|
—
|
|
|
(6,865
|
)
|
|
—
|
|
|||||
Proceeds from sales of assets and FCC licenses
|
—
|
|
|
—
|
|
|
126
|
|
|
—
|
|
|
126
|
|
|||||
Intercompany note advance to consolidated affiliate
|
—
|
|
|
(392
|
)
|
|
—
|
|
|
392
|
|
|
—
|
|
|||||
Proceeds from intercompany note advance to consolidated affiliate
|
—
|
|
|
62
|
|
|
—
|
|
|
(62
|
)
|
|
—
|
|
|||||
Other, net
|
—
|
|
|
—
|
|
|
26
|
|
|
—
|
|
|
26
|
|
|||||
Net cash provided by (used in) investing activities
|
—
|
|
|
4,206
|
|
|
(2,865
|
)
|
|
(6,535
|
)
|
|
(5,194
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from debt and financings
|
—
|
|
|
—
|
|
|
6,830
|
|
|
—
|
|
|
6,830
|
|
|||||
Repayments of debt, financing and capital lease obligations
|
—
|
|
|
(2,000
|
)
|
|
(1,266
|
)
|
|
—
|
|
|
(3,266
|
)
|
|||||
Debt financing costs
|
—
|
|
|
(110
|
)
|
|
(162
|
)
|
|
—
|
|
|
(272
|
)
|
|||||
Intercompany dividends paid to parent
|
—
|
|
|
—
|
|
|
(118
|
)
|
|
118
|
|
|
—
|
|
|||||
Change in amounts due from/due to consolidated affiliates
|
—
|
|
|
—
|
|
|
(6,865
|
)
|
|
6,865
|
|
|
—
|
|
|||||
Intercompany note advance from parent
|
—
|
|
|
—
|
|
|
392
|
|
|
(392
|
)
|
|
—
|
|
|||||
Repayments of intercompany note advance from parent
|
—
|
|
|
—
|
|
|
(62
|
)
|
|
62
|
|
|
—
|
|
|||||
Other, net
|
—
|
|
|
35
|
|
|
33
|
|
|
—
|
|
|
68
|
|
|||||
Net cash (used in) provided by financing activities
|
—
|
|
|
(2,075
|
)
|
|
(1,218
|
)
|
|
6,653
|
|
|
3,360
|
|
|||||
Net increase in cash and cash equivalents
|
—
|
|
|
963
|
|
|
103
|
|
|
—
|
|
|
1,066
|
|
|||||
Cash and cash equivalents, beginning of period
|
—
|
|
|
2,154
|
|
|
487
|
|
|
—
|
|
|
2,641
|
|
|||||
Cash and cash equivalents, end of period
|
$
|
—
|
|
|
$
|
3,117
|
|
|
$
|
590
|
|
|
$
|
—
|
|
|
$
|
3,707
|
|
|
For the Nine Months Ended December 31, 2015
|
||||||||||||||||||
|
Parent/Issuer
|
|
Subsidiary Guarantor
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash (used in) provided by operating activities
|
$
|
—
|
|
|
$
|
(1,029
|
)
|
|
$
|
3,800
|
|
|
$
|
(168
|
)
|
|
$
|
2,603
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures - network and other
|
—
|
|
|
—
|
|
|
(3,958
|
)
|
|
—
|
|
|
(3,958
|
)
|
|||||
Capital expenditures - leased devices
|
—
|
|
|
—
|
|
|
(1,724
|
)
|
|
—
|
|
|
(1,724
|
)
|
|||||
Expenditures relating to FCC licenses
|
—
|
|
|
—
|
|
|
(75
|
)
|
|
—
|
|
|
(75
|
)
|
|||||
Proceeds from sales and maturities of short-term investments
|
—
|
|
|
317
|
|
|
60
|
|
|
—
|
|
|
377
|
|
|||||
Purchases of short-term investments
|
—
|
|
|
(197
|
)
|
|
(55
|
)
|
|
—
|
|
|
(252
|
)
|
|||||
Change in amounts due from/due to consolidated affiliates
|
1
|
|
|
(568
|
)
|
|
—
|
|
|
567
|
|
|
—
|
|
|||||
Proceeds from sales of assets and FCC licenses
|
—
|
|
|
—
|
|
|
36
|
|
|
—
|
|
|
36
|
|
|||||
Proceeds from sale-leaseback transaction
|
—
|
|
|
—
|
|
|
1,136
|
|
|
—
|
|
|
1,136
|
|
|||||
Intercompany note advance to consolidated affiliate
|
—
|
|
|
(159
|
)
|
|
—
|
|
|
159
|
|
|
—
|
|
|||||
Proceeds from intercompany note advance to consolidated affiliate
|
—
|
|
|
54
|
|
|
—
|
|
|
(54
|
)
|
|
—
|
|
|||||
Other, net
|
—
|
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
(25
|
)
|
|||||
Net cash provided by (used in) investing activities
|
1
|
|
|
(553
|
)
|
|
(4,605
|
)
|
|
672
|
|
|
(4,485
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from debt and financings
|
—
|
|
|
250
|
|
|
505
|
|
|
—
|
|
|
755
|
|
|||||
Repayments of debt, financing and capital lease obligations
|
—
|
|
|
(500
|
)
|
|
(227
|
)
|
|
—
|
|
|
(727
|
)
|
|||||
Debt financing costs
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Intercompany dividends paid to parent
|
—
|
|
|
—
|
|
|
(168
|
)
|
|
168
|
|
|
—
|
|
|||||
Change in amounts due from/due to consolidated affiliates
|
—
|
|
|
—
|
|
|
567
|
|
|
(567
|
)
|
|
—
|
|
|||||
Intercompany note advance from parent
|
—
|
|
|
—
|
|
|
159
|
|
|
(159
|
)
|
|
—
|
|
|||||
Repayments of intercompany not advance from parent
|
—
|
|
|
—
|
|
|
(54
|
)
|
|
54
|
|
|
—
|
|
|||||
Other, net
|
—
|
|
|
10
|
|
|
10
|
|
|
—
|
|
|
20
|
|
|||||
Net cash (used in) provided by financing activities
|
(1
|
)
|
|
(240
|
)
|
|
792
|
|
|
(504
|
)
|
|
47
|
|
|||||
Net decrease in cash and cash equivalents
|
—
|
|
|
(1,822
|
)
|
|
(13
|
)
|
|
—
|
|
|
(1,835
|
)
|
|||||
Cash and cash equivalents, beginning of period
|
—
|
|
|
3,492
|
|
|
518
|
|
|
—
|
|
|
4,010
|
|
|||||
Cash and cash equivalents, end of period
|
$
|
—
|
|
|
$
|
1,670
|
|
|
$
|
505
|
|
|
$
|
—
|
|
|
$
|
2,175
|
|
Note 16.
|
Subsequent Events
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
Provide a network that delivers the consistent reliability, capacity and speed that customers demand;
|
•
|
Achieve a more competitive cost position in the industry through simplification;
|
•
|
Increase subscriber acquisition and retention and reduce churn;
|
•
|
Create an alternative financial structure to fuel growth and maximize shareholder value;
|
•
|
Attract and retain the best talent in the industry; and
|
•
|
Deliver a simplified and improved customer experience.
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||
|
December 31,
|
December 31,
|
||||||||||||
|
2016
|
|
2015
|
2016
|
|
2015
|
||||||||
|
(in millions)
|
|||||||||||||
Wireless segment earnings
|
$
|
2,397
|
|
|
$
|
1,866
|
|
$
|
7,160
|
|
|
$
|
5,919
|
|
Wireline segment earnings
|
48
|
|
|
33
|
|
90
|
|
|
71
|
|
||||
Corporate, other and eliminations
|
5
|
|
|
(1
|
)
|
4
|
|
|
(2
|
)
|
||||
Consolidated segment earnings
|
2,450
|
|
|
1,898
|
|
7,254
|
|
|
5,988
|
|
||||
Depreciation
|
(1,837
|
)
|
|
(1,549
|
)
|
(5,227
|
)
|
|
(4,202
|
)
|
||||
Amortization
|
(255
|
)
|
|
(316
|
)
|
(813
|
)
|
|
(994
|
)
|
||||
Other, net
|
(47
|
)
|
|
(230
|
)
|
80
|
|
|
(490
|
)
|
||||
Operating income (loss)
|
311
|
|
|
(197
|
)
|
1,294
|
|
|
302
|
|
||||
Interest expense
|
(619
|
)
|
|
(546
|
)
|
(1,864
|
)
|
|
(1,630
|
)
|
||||
Other (expense) income, net
|
(60
|
)
|
|
4
|
|
(67
|
)
|
|
13
|
|
||||
Income tax expense
|
(111
|
)
|
|
(97
|
)
|
(286
|
)
|
|
(126
|
)
|
||||
Net loss
|
$
|
(479
|
)
|
|
$
|
(836
|
)
|
$
|
(923
|
)
|
|
$
|
(1,441
|
)
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
December 31,
|
|
December 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in millions)
|
||||||||||||||
Severance and exit costs
|
$
|
(19
|
)
|
|
$
|
(209
|
)
|
|
$
|
(30
|
)
|
|
$
|
(247
|
)
|
Litigation and other contingencies
|
—
|
|
|
(21
|
)
|
|
(103
|
)
|
|
(178
|
)
|
||||
Loss on disposal of property, plant and equipment
|
(28
|
)
|
|
—
|
|
|
(28
|
)
|
|
(85
|
)
|
||||
Contract terminations
|
—
|
|
|
—
|
|
|
(113
|
)
|
|
—
|
|
||||
Gains from asset dispositions and exchanges
|
—
|
|
|
—
|
|
|
354
|
|
|
—
|
|
||||
Revision to estimate of a previously recorded reserve
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
||||
Total
|
$
|
(47
|
)
|
|
$
|
(230
|
)
|
|
$
|
80
|
|
|
$
|
(490
|
)
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
December 31,
|
|
December 31,
|
||||||||||||
Wireless Segment Earnings
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in millions)
|
||||||||||||||
Postpaid
|
$
|
4,686
|
|
|
$
|
4,813
|
|
|
$
|
14,184
|
|
|
$
|
14,670
|
|
Prepaid
|
1,077
|
|
|
1,224
|
|
|
3,371
|
|
|
3,783
|
|
||||
Other
(1)
|
—
|
|
|
21
|
|
|
—
|
|
|
178
|
|
||||
Retail service revenue
|
5,763
|
|
|
6,058
|
|
|
17,555
|
|
|
18,631
|
|
||||
Wholesale, affiliate and other
|
183
|
|
|
188
|
|
|
509
|
|
|
586
|
|
||||
Total service revenue
|
5,946
|
|
|
6,246
|
|
|
18,064
|
|
|
19,217
|
|
||||
Cost of services (exclusive of depreciation and amortization)
|
(1,649
|
)
|
|
(2,031
|
)
|
|
(5,226
|
)
|
|
(6,147
|
)
|
||||
Service gross margin
|
4,297
|
|
|
4,215
|
|
|
12,838
|
|
|
13,070
|
|
||||
Service gross margin percentage
|
72
|
%
|
|
67
|
%
|
|
71
|
%
|
|
68
|
%
|
||||
Equipment revenue
|
2,226
|
|
|
1,424
|
|
|
5,556
|
|
|
3,509
|
|
||||
Cost of products (exclusive of depreciation and amortization)
|
(1,985
|
)
|
|
(1,589
|
)
|
|
(5,097
|
)
|
|
(4,244
|
)
|
||||
Selling, general and administrative expense
|
(2,032
|
)
|
|
(2,041
|
)
|
|
(5,797
|
)
|
|
(6,273
|
)
|
||||
Loss on disposal of property, plant and equipment
|
(109
|
)
|
|
(143
|
)
|
|
(340
|
)
|
|
(143
|
)
|
||||
Wireless segment earnings
|
$
|
2,397
|
|
|
$
|
1,866
|
|
|
$
|
7,160
|
|
|
$
|
5,919
|
|
(1
)
|
Represents service revenue primarily related to the acquisition of Clearwire on July 9, 2013.
|
•
|
revenue generated from each subscriber, which in turn is a function of the types and amount of services utilized by each subscriber and the rates charged for those services; and
|
•
|
the number of subscribers that we serve, which in turn is a function of our ability to retain existing subscribers and acquire new subscribers.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
December 31,
|
|
December 31,
|
||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
|
(subscribers in thousands)
|
||||||||||
Average postpaid subscribers
|
31,431
|
|
|
30,683
|
|
|
31,153
|
|
|
30,443
|
|
Average prepaid subscribers
|
12,997
|
|
|
14,966
|
|
|
13,662
|
|
|
15,442
|
|
Average retail subscribers
|
44,428
|
|
|
45,649
|
|
|
44,815
|
|
|
45,885
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
December 31,
|
|
December 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
ARPU
(1)
:
|
|
|
|
|
|
|
|
||||||||
Postpaid
|
$
|
49.70
|
|
|
$
|
52.41
|
|
|
$
|
50.59
|
|
|
$
|
53.86
|
|
Prepaid
|
$
|
27.61
|
|
|
$
|
27.49
|
|
|
$
|
27.41
|
|
|
$
|
27.89
|
|
Average retail
|
$
|
43.24
|
|
|
$
|
44.24
|
|
|
$
|
43.53
|
|
|
$
|
45.12
|
|
(1)
|
ARPU is calculated by dividing service revenue by the sum of the monthly average number of subscribers in the applicable service category. Changes in average monthly service revenue reflect subscribers for either the postpaid or prepaid service category who change rate plans, the level of voice and data usage, the amount of service credits which are offered to subscribers, plus the net effect of average monthly revenue generated by new subscribers and deactivating subscribers.
|
|
June 30,
2015 |
|
Sept 30,
2015 |
|
Dec 31,
2015 |
|
March 31,
2016 |
|
June 30, 2016
|
|
Sept 30,
2016 |
|
Dec 31,
2016 |
|||||||
Net additions (losses) (in thousands)
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Sprint platform
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Postpaid
|
310
|
|
|
378
|
|
|
501
|
|
|
56
|
|
|
180
|
|
|
344
|
|
|
405
|
|
Prepaid
|
(366
|
)
|
|
(188
|
)
|
|
(491
|
)
|
|
(264
|
)
|
|
(331
|
)
|
|
(427
|
)
|
|
(501
|
)
|
Wholesale and affiliates
|
731
|
|
|
866
|
|
|
481
|
|
|
655
|
|
|
528
|
|
|
823
|
|
|
673
|
|
Total Sprint platform
|
675
|
|
|
1,056
|
|
|
491
|
|
|
447
|
|
|
377
|
|
|
740
|
|
|
577
|
|
Transactions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Postpaid
|
(60
|
)
|
|
(70
|
)
|
|
(238
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Prepaid
|
(66
|
)
|
|
(64
|
)
|
|
(231
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Wholesale
|
(22
|
)
|
|
(12
|
)
|
|
(241
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total Transactions
|
(148
|
)
|
|
(146
|
)
|
|
(710
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total retail postpaid
|
250
|
|
|
308
|
|
|
263
|
|
|
56
|
|
|
180
|
|
|
344
|
|
|
405
|
|
Total retail prepaid
|
(432
|
)
|
|
(252
|
)
|
|
(722
|
)
|
|
(264
|
)
|
|
(331
|
)
|
|
(427
|
)
|
|
(501
|
)
|
Total wholesale and affiliate
|
709
|
|
|
854
|
|
|
240
|
|
|
655
|
|
|
528
|
|
|
823
|
|
|
673
|
|
Total Wireless
|
527
|
|
|
910
|
|
|
(219
|
)
|
|
447
|
|
|
377
|
|
|
740
|
|
|
577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
End of period subscribers (in thousands)
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Sprint platform
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Postpaid
(3)(4)
|
30,016
|
|
|
30,394
|
|
|
30,895
|
|
|
30,951
|
|
|
30,945
|
|
|
31,289
|
|
|
31,694
|
|
Prepaid
(3)(5)
|
15,340
|
|
|
15,152
|
|
|
14,661
|
|
|
14,397
|
|
|
13,974
|
|
|
13,547
|
|
|
11,812
|
|
Wholesale and affiliates
(3)(4)(5)(6)
|
11,456
|
|
|
12,322
|
|
|
12,803
|
|
|
13,458
|
|
|
14,534
|
|
|
15,357
|
|
|
16,009
|
|
Total Sprint platform
|
56,812
|
|
|
57,868
|
|
|
58,359
|
|
|
58,806
|
|
|
59,453
|
|
|
60,193
|
|
|
59,515
|
|
Transactions
(7)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Postpaid
|
308
|
|
|
238
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Prepaid
|
295
|
|
|
231
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Wholesale
|
253
|
|
|
241
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total Transactions
|
856
|
|
|
710
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total retail postpaid
(3)(4)
|
30,324
|
|
|
30,632
|
|
|
30,895
|
|
|
30,951
|
|
|
30,945
|
|
|
31,289
|
|
|
31,694
|
|
Total retail prepaid
(3)(5)
|
15,635
|
|
|
15,383
|
|
|
14,661
|
|
|
14,397
|
|
|
13,974
|
|
|
13,547
|
|
|
11,812
|
|
Total wholesale and affiliates
(3)(4)(5)(6)
|
11,709
|
|
|
12,563
|
|
|
12,803
|
|
|
13,458
|
|
|
14,534
|
|
|
15,357
|
|
|
16,009
|
|
Total Wireless
|
57,668
|
|
|
58,578
|
|
|
58,359
|
|
|
58,806
|
|
|
59,453
|
|
|
60,193
|
|
|
59,515
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Supplemental data - connected devices
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
End of period subscribers (in thousands)
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Retail postpaid
|
1,439
|
|
|
1,576
|
|
|
1,676
|
|
|
1,771
|
|
|
1,822
|
|
|
1,874
|
|
|
1,960
|
|
Wholesale and affiliates
|
6,620
|
|
|
7,338
|
|
|
7,930
|
|
|
8,575
|
|
|
9,244
|
|
|
9,951
|
|
|
10,594
|
|
Total
|
8,059
|
|
|
8,914
|
|
|
9,606
|
|
|
10,346
|
|
|
11,066
|
|
|
11,825
|
|
|
12,554
|
|
(1)
|
A subscriber is defined as an individual line of service associated with each device activated by a customer. Subscribers that transfer from their original service category classification to another platform, or another service line within the same platform, are reflected as a net loss to the original service category and a net addition to their new service category. There is no net effect for such subscriber changes to the total wireless net additions (losses) or end of period subscribers.
|
(2)
|
Sprint platform refers to the Sprint network that supports the wireless service we provide through our multiple brands.
|
(3)
|
As part of the Shentel transaction, 186,000 and 92,000 subscribers were transferred from postpaid and prepaid, respectively, to affiliates. An additional 270,000 of nTelos' subscribers are now part of our affiliate relationship with Shentel and are being reported in wholesale and affiliate subscribers during the quarter ended June 30, 2016.
|
(4)
|
End of period connected devices are included in total retail postpaid or wholesale and affiliates end of period subscriber totals for all periods presented.
|
(5)
|
During the three-month period ended December 31, 2016, the Company aligned all prepaid brands, including prepaid affiliate subscribers, under one churn and retention program. As a result of this change, end of period prepaid and affiliate subscribers as of December 31, 2016 were reduced by 1,234,000 and 21,000, respectively. See "Subscriber Results" below for more information.
|
(6)
|
Subscribers through some of our MVNO relationships have inactivity either in voice usage or primarily as a result of the nature of the device, where activity only occurs when data retrieval is initiated by the end-user and may occur infrequently. Although we continue to provide these subscribers access to our network through our MVNO relationships, approximately
1,750,000
subscribers at
December 31, 2016
through these MVNO relationships have been inactive for at least six months, with no associated revenue during the six-month period ended
December 31, 2016
.
|
(7)
|
End of period transactions subscribers reflected postpaid, prepaid and wholesale subscribers acquired as a result of the acquisition of Clearwire. We had no remaining transaction subscribers primarily due to the shutdown of the WiMAX network on March 31, 2016.
|
|
June 30,
2015 |
|
Sept 30,
2015 |
|
Dec 31,
2015 |
|
March 31,
2016 |
|
June 30,
2016 |
|
Sept 30,
2016 |
|
Dec 31,
2016 |
|||||||
Monthly subscriber churn rate
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Sprint platform:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Postpaid
|
1.56
|
%
|
|
1.54
|
%
|
|
1.62
|
%
|
|
1.72
|
%
|
|
1.56
|
%
|
|
1.52
|
%
|
|
1.67
|
%
|
Prepaid
|
5.08
|
%
|
|
5.06
|
%
|
|
5.82
|
%
|
|
5.65
|
%
|
|
5.55
|
%
|
|
5.63
|
%
|
|
5.80
|
%
|
Transactions
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Postpaid
|
6.07
|
%
|
|
8.55
|
%
|
|
NM
|
|
|
NM
|
|
|
NM
|
|
|
NM
|
|
|
NM
|
|
Prepaid
|
7.23
|
%
|
|
8.51
|
%
|
|
NM
|
|
|
NM
|
|
|
NM
|
|
|
NM
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total retail postpaid
|
1.61
|
%
|
|
1.61
|
%
|
|
1.87
|
%
|
|
1.72
|
%
|
|
1.56
|
%
|
|
1.52
|
%
|
|
1.67
|
%
|
Total retail prepaid
|
5.13
|
%
|
|
5.12
|
%
|
|
6.29
|
%
|
|
5.65
|
%
|
|
5.55
|
%
|
|
5.63
|
%
|
|
5.80
|
%
|
(1)
|
Churn is calculated by dividing net subscriber deactivations for the quarter by the sum of the average number of subscribers for each month in the quarter. For postpaid accounts comprising multiple subscribers, such as family plans and enterprise accounts, net deactivations are defined as deactivations in excess of subscriber activations in a particular account within 30 days. Postpaid and prepaid churn consist of both voluntary churn, where the subscriber makes his or her own determination to cease being a subscriber, and involuntary churn, where the subscriber's service is terminated due to a lack of payment or other reasons.
|
(2)
|
Subscriber churn related to the acquisition of Clearwire.
|
|
June 30,
2015 |
|
Sept 30,
2015 |
|
Dec 31,
2015 |
|
March 31,
2016 |
|
June 30,
2016 |
|
Sept 30,
2016 |
|
Dec 31,
2016 |
||||||||||||||
ARPU
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Sprint platform:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Postpaid
|
$
|
55.48
|
|
|
$
|
53.99
|
|
|
$
|
52.48
|
|
|
$
|
51.68
|
|
|
$
|
51.54
|
|
|
$
|
50.54
|
|
|
$
|
49.70
|
|
Prepaid
|
$
|
27.81
|
|
|
$
|
27.66
|
|
|
$
|
27.44
|
|
|
$
|
27.72
|
|
|
$
|
27.34
|
|
|
$
|
27.31
|
|
|
$
|
27.61
|
|
Transactions
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Postpaid
|
$
|
40.47
|
|
|
$
|
40.62
|
|
|
$
|
31.62
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Prepaid
|
$
|
46.10
|
|
|
$
|
45.82
|
|
|
$
|
34.61
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total retail postpaid
|
$
|
55.31
|
|
|
$
|
53.87
|
|
|
$
|
52.41
|
|
|
$
|
51.68
|
|
|
$
|
51.54
|
|
|
$
|
50.54
|
|
|
$
|
49.70
|
|
Total retail prepaid
|
$
|
28.18
|
|
|
$
|
27.97
|
|
|
$
|
27.49
|
|
|
$
|
27.72
|
|
|
$
|
27.34
|
|
|
$
|
27.31
|
|
|
$
|
27.61
|
|
(1)
|
Subscriber ARPU related to the acquisition of Clearwire.
|
•
|
costs to operate and maintain our networks, including direct switch and cell site costs, such as rent, utilities, maintenance, labor costs associated with network employees, and spectrum frequency leasing costs;
|
•
|
fixed and variable interconnection costs, the fixed component of which consists of monthly flat-rate fees for facilities leased from local exchange carriers and other providers based on the number of cell sites and switches in service in a particular period and the related equipment installed at each site, and the variable component of which generally consists of per-minute usage fees charged by wireline providers for calls terminating on their networks, which fluctuate in relation to the level and duration of those terminating calls;
|
•
|
long distance costs paid to the Wireline segment;
|
•
|
costs to service and repair devices;
|
•
|
regulatory fees;
|
•
|
roaming fees paid to other carriers; and
|
•
|
fixed and variable costs relating to payments to third parties for the subscriber use of their proprietary data applications, such as messaging, music and cloud services and connected vehicle fees.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
December 31,
|
|
December 31,
|
||||||||||||
Wireline Segment Earnings
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in millions)
|
||||||||||||||
Voice
|
$
|
153
|
|
|
$
|
201
|
|
|
$
|
506
|
|
|
$
|
646
|
|
Data
|
41
|
|
|
42
|
|
|
127
|
|
|
134
|
|
||||
Internet
|
281
|
|
|
317
|
|
|
871
|
|
|
968
|
|
||||
Other
|
22
|
|
|
21
|
|
|
59
|
|
|
72
|
|
||||
Total net service revenue
|
497
|
|
|
581
|
|
|
1,563
|
|
|
1,820
|
|
||||
Cost of services (exclusive of depreciation)
|
(400
|
)
|
|
(466
|
)
|
|
(1,284
|
)
|
|
(1,495
|
)
|
||||
Service gross margin
|
97
|
|
|
115
|
|
|
279
|
|
|
325
|
|
||||
Service gross margin percentage
|
20
|
%
|
|
20
|
%
|
|
18
|
%
|
|
18
|
%
|
||||
Selling, general and administrative expense
|
(49
|
)
|
|
(82
|
)
|
|
(189
|
)
|
|
(254
|
)
|
||||
Wireline segment earnings
|
$
|
48
|
|
|
$
|
33
|
|
|
$
|
90
|
|
|
$
|
71
|
|
|
Nine Months Ended
|
||||||
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(in millions)
|
||||||
Net cash provided by operating activities
|
$
|
2,900
|
|
|
$
|
2,603
|
|
Net cash used in investing activities
|
$
|
(5,194
|
)
|
|
$
|
(4,485
|
)
|
Net cash provided by financing activities
|
$
|
3,360
|
|
|
$
|
47
|
|
•
|
projected revenues and expenses relating to our operations, including those related to our installment billing and leasing programs, along with the success of initiatives such as our expectations of achieving a more competitive cost structure through cost reduction initiatives and increasing our postpaid handset subscriber base;
|
•
|
cash needs related to our installment billing and device leasing programs;
|
•
|
availability under the Receivables Facility, which terminates in November 2018;
|
•
|
continued availability of our new secured term loan that matures in February 2024 and secured revolving bank credit facility, which expires in February 2021 for $6.0 billion less outstanding letters of credit;
|
•
|
remaining availability of approximately
$1.2 billion
of our secured equipment credit facilities for eligible capital expenditures, and any corresponding principal, interest, and fee payments;
|
•
|
raising additional funds from external sources;
|
•
|
the expected use of cash and cash equivalents in the near-term;
|
•
|
anticipated levels and timing of capital expenditures, including assumptions regarding lower unit costs, the capacity additions and upgrading of our networks and the deployment of new technologies in our networks, FCC license acquisitions, and purchases of leased devices from our indirect dealers;
|
•
|
any additional contributions we may make to our pension plan;
|
•
|
any scheduled principal payments on debt, secured equipment credit facilities and EDC, including approximately $21.8 billion coming due over the next five years;
|
•
|
estimated residual values of devices related to our device lease program; and
|
•
|
other future contractual obligations and general corporate expenditures.
|
|
|
Rating
|
||||||||
Rating Agency
|
|
Issuer Rating
|
|
Unsecured Notes
|
|
Guaranteed Notes
|
|
Bank Credit Facility
|
|
Outlook
|
Moody's
|
|
B2
|
|
B3
|
|
B1
|
|
Ba3
|
|
Stable
|
Standard and Poor's
|
|
B
|
|
B
|
|
B+
|
|
B+
|
|
Stable
|
Fitch
|
|
B+
|
|
B+
|
|
BB
|
|
BB
|
|
Stable
|
•
|
our ability to obtain additional financing, including monetizing certain of our assets, including under our existing or future programs to monetize a portion of our network or spectrum holdings, or to modify the terms of our existing financing, on terms acceptable to us, or at all;
|
•
|
our ability to continue to receive the expected benefits of our existing financings such as receivable and handset financings, including any future tranches;
|
•
|
our ability to retain and attract subscribers and to manage credit risks associated with our subscribers;
|
•
|
the ability of our competitors to offer products and services at lower prices due to lower cost structures or otherwise;
|
•
|
the effective implementation of our plans to improve the quality of our network, including timing, execution, technologies, costs, and performance of our network;
|
•
|
failure to improve subscriber churn, bad debt expense, accelerated cash use, costs and write-offs, including with respect to changes in expected residual values related to any of our service plans, including installment billing and leasing programs;
|
•
|
the ability to generate sufficient cash flow to fully implement our plans to improve and enhance the quality of our network and service plans, improve our operating margins, implement our business strategies, and provide competitive new technologies;
|
•
|
the effects of vigorous competition on a highly penetrated market, including the impact of competition on the prices we are able to charge subscribers for services and devices we provide and on the geographic areas served by our network;
|
•
|
the impact of installment billing and leasing handsets; the impact of increased purchase commitments; the overall demand for our service plans, including the impact of decisions of new or existing subscribers
|
•
|
our ability to provide the desired mix of integrated services to our subscribers;
|
•
|
our ability to continue to access our spectrum and acquire additional spectrum capacity;
|
•
|
changes in available technology and the effects of such changes, including product substitutions and deployment costs and performance;
|
•
|
volatility in the trading price of our common stock, current economic conditions and our ability to access capital, including debt or equity;
|
•
|
the impact of various parties not meeting our business requirements, including a significant adverse change in the ability or willingness of such parties to provide service and products, including distribution, or infrastructure equipment for our network;
|
•
|
the costs and business risks associated with providing new services and entering new geographic markets;
|
•
|
the effects of any future merger or acquisition involving us, as well as the effect of mergers, acquisitions and consolidations, and new entrants in the communications industry, and unexpected announcements or developments from others in our industry;
|
•
|
our ability to comply with restrictions imposed by the U.S. Government as a condition to our merger with SoftBank;
|
•
|
the effects of any material impairment of our goodwill or other indefinite-lived intangible assets;
|
•
|
the impacts of new accounting standards or changes to existing standards that the Financial Accounting Standards Board or other regulatory agencies issue, including the Securities and Exchange Commission (SEC);
|
•
|
unexpected results of litigation filed against us or our suppliers or vendors;
|
•
|
the costs or potential customer impact of compliance with regulatory mandates including, but not limited to, compliance with the FCC's Report and Order to reconfigure the 800 MHz band and government regulation regarding "net neutrality";
|
•
|
equipment failure, natural disasters, terrorist acts or breaches of network or information technology security;
|
•
|
one or more of the markets in which we compete being impacted by changes in political, economic or other factors such as monetary policy, legal and regulatory changes, or other external factors over which we have no control;
|
•
|
the impact of being a "controlled company" exempt from many corporate governance requirements of the NYSE; and
|
•
|
other risks referenced from time to time in this report and other filings of ours with the SEC, including Part I, Item 1A. "Risk Factors" of our Annual Report on Form 10-K for the year ended
March 31, 2016
.
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Item 3.
|
Defaults Upon Senior Securities
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits
|
SPRINT CORPORATION
(Registrant)
|
||
|
|
|
By:
|
/s/ P
AUL
W. S
CHIEBER,
J
R.
|
|
|
|
Paul W. Schieber, Jr.
Vice President and Controller
(Principal Accounting Officer)
|
*
|
Filed or furnished, as required.
|
1 Year SentinelOne Chart |
1 Month SentinelOne Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions