SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 9, 2002
SPRINT CORPORATION
(Exact name of Registrant as specified in its charter)
Kansas 1-04721 48-0457967
--------------------------------------------------------------------------------
(State of Incorporation) (Commission File Number) (I.R.S. Employer
Identification No.)
6200 Sprint Parkway, Overland Park, Kansas 66251
--------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (913) 624-3000
-----------------------------
(Former name or former address, if changed since last report)
P. O. Box 11315, Kansas City, Missouri 64112
--------------------------------------------
(Mailing address of principal executive offices)
Item 5. Other Events
Sprint Corporation (Sprint) adopted SFAS No. 142, "Goodwill and Other Intangible
Assets" on January 1, 2002. This standard prescribes the accounting treatment
for both identifiable intangibles and goodwill after initial recognition. Upon
adoption of the standard, amortization of goodwill and indefinite life
intangibles ceased and accumulated amortization as of December 31, 2001 reduced
the carrying value of these assets. Periodic impairment testing of these assets
is now required. Definite life intangibles continue to be amortized over their
useful lives. Sprint identified spectrum licenses, which include related
microwave relocation costs, and its trademark as indefinite life intangibles.
Concurrent with adoption, Sprint evaluated for impairment its goodwill and
indefinite life intangibles in accordance with the standard's guidance and
determined these assets were not impaired.
The following pro forma table adjusts net income (loss) and basic and diluted
earnings (loss) per share in 2001, 2000 and 1999 to exclude amortization, net of
any related tax effects on goodwill and indefinite lived intangibles.
Sprint
Consolidated FON Group PCS Group
------------------------ -------------------------- ----------------------------
Years Ended December 31, 2001 2000 1999 2001 2000 1999 2001 2000 1999
------------------------ -------------------------- ----------------------------
Reported net income (loss) $(1,401) $ 93 $(935) $ (147) $1,964 $1,567 $(1,254) $(1,871) $(2,502)
Add back:
Goodwill amortization 126 150 141 1 26 26 125 124 115
Spectrum licenses amortization 69 76 59 16 23 6 53 53 53
------------------------ -------------------------- ----------------------------
Adjusted net income (loss) (1,206) 319 (735) (130) 2,013 1,599 (1,076) (1,694) (2,334)
Preferred stock dividends paid
(received) (7) (7) (8) 7 7 7 (14) (14) (15)
------------------------ -------------------------- ----------------------------
Adjusted earnings (loss) applicable
to common stock $(1,213) $312 $(743) $ (123) $2,020 $1,606 $(1,090) $(1,708) $(2,349)
Diluted earnings (loss) per share
Reported diluted earnings (loss) per
share $(0.16) $ 2.21 $ 1.78 $ (1.28) $ (1.95) $ (2.73)
Add back:
Goodwill amortization - 0.03 0.03 0.13 0.13 0.12
Spectrum licenses amortization 0.02 0.02 - 0.05 0.05 0.06
-------------------------- ----------------------------
Adjusted diluted earnings (loss) per
share $(0.14) $ 2.26 $ 1.81 $ (1.10) $ (1.77) $ (2.55)
Diluted weighted average shares
outstanding 886.8 892.4 887.2 989.7 966.5 920.4
Basic earnings (loss) per share
Reported basic earnings (loss) per
share $(0.16) $ 2.24 $ 1.81 $ (1.28) $ (1.95) $ (2.73)
Add back:
Goodwill amortization - 0.03 0.03 0.13 0.13 0.12
Spectrum licenses amortization 0.02 0.02 0.01 0.05 0.05 0.06
-------------------------- ----------------------------
Adjusted basic earnings (loss) per
share $(0.14) $ 2.29 $ 1.85 $ (1.10) $ (1.77) $ (2.55)
Basic weighted average shares
outstanding 886.8 880.9 868.0 989.7 966.5 920.4
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
SPRINT CORPORATION
Date: August 9, 2002 By: /s/ Michael T. Hyde
--------------------------------
Michael T. Hyde
Assistant Secretary