Sprint - Nextel 2008 Annual Report Download - page 139

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CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
13. Commitments and Contingencies
Future minimum payments under obligations listed below (including all optional expected renewal periods
on operating leases) as of December 31, 2009, are as follows (in thousands):
Total 2010 2011 2012 2013 2014
Thereafter,
including all
renewal periods
Long-term debt
obligations ......... $ 2,772,494 $ — $ — $ — $ — $ — $ 2,772,494
Interest payments ..... 1,997,139 333,644 332,699 332,699 332,699 332,699 332,699
Operating lease
obligations ......... 6,496,660 214,717 219,522 221,757 223,383 223,385 5,393,896
Spectrum lease
obligations ......... 5,164,616 127,749 135,073 140,806 140,369 149,860 4,470,759
Spectrum service
credits ............ 95,672 986 986 986 986 987 90,741
Signed spectrum
agreements ........ 29,983 29,983———— —
Network equipment
purchase
obligations ......... 422,744 422,744———— —
Other purchase
obligations ......... 162,474 96,030 30,938 22,040 13,054 412 —
Total ............... $17,141,782 $1,225,853 $719,218 $718,288 $710,491 $707,343 $13,060,589
Spectrum and operating lease obligations — Our commitments for non-cancelable operating leases consist
mainly of leased spectrum license fees, office space, equipment, and leased sites, including towers and rooftop
locations. Certain of the leases provide for minimum lease payments, additional charges and escalation clauses.
Certain of the tower leases specify a minimum number of new leases to commence by December 31, 2011.
Charges apply if these commitments are not satisfied. Leased spectrum agreements have terms of up to 30 years.
Operating leases generally have initial terms of five years with multiple renewal options for additional five-year
terms totaling between 20 and 25 years.
Expense recorded related to spectrum and operating leases was as follows (in thousands):
Year Ended December 31,
2009 2008 2007
Spectrum lease expense .................................. $201,461 $72,923 $60,051
Amortization of prepaid spectrum licenses ................... 57,898 17,109 —
Total spectrum lease expense .............................. $259,359 $90,032 $60,051
Operating lease expense .................................. $245,351 $51,345 $ 2,000
Other spectrum commitments — We have commitments to provide Clearwire services to certain lessors in
launched markets, and reimbursement of capital equipment and third-party service expenditures of the lessors
over the term of the lease. We accrue a monthly obligation for the services and equipment based on the total
estimated available service credits divided by the term of the lease. The obligation is reduced as actual invoices
are presented and paid to the lessors. During the years ended December 31, 2009 and 2008 we satisfied $779,000
and $76,000, respectively, related to these commitments. The maximum remaining commitment at December 31,
2009 is $95.7 million and is expected to be incurred over the term of the related lease agreements, which
generally range from 15-30 years.
F-73