Sprint - Nextel 2008 Annual Report Download - page 146

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CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Clearwire Communications Interests
Clearwire is the sole holder of voting interests in Clearwire Communications. As such, Clearwire controls
100% of the decision making of Clearwire Communications and consolidates 100% of its operations. Clearwire
also holds all of the outstanding Clearwire Communications Class A Common Interests representing 21.1% of
the economics of Clearwire Communications as of December 31, 2009. The holders of the Class B Common
Interests own the remaining 78.9% of the economic interests. The following shows the effects of the changes in
Clearwire’s ownership interests in Clearwire Communications (in thousands):
Year Ended
December 31,
2009
Period From
November 29,
2008 to
December 31,
2008
Net loss attributable to Clearwire ............................... $(319,199) $(29,621)
Decrease in Clearwire’s additional paid-in capital for issuance of
Class A and B Common Stock related to the post-closing
adjustment ............................................... (33,632) —
Decrease in Clearwire’s additional paid-in capital for issuance of
Class B Common Stock ..................................... (140,253) —
Increase in Clearwire’s additional paid-in capital for issuance of Class A
Common Stock ........................................... 17,957 161
Change from net loss attributable to Clearwire and transfers to
non-controlling interests .................................... $(475,127) $(29,460)
The non-voting Clearwire Communication units are designated as either Clearwire Communications
Class A Common Interests, which are 100% held by Clearwire, or Clearwire Communications Class B Common
Interests, which are held by Sprint and the Investors, with the exception of Google. Both classes of non-voting
Clearwire Communication units participate in distributions of Clearwire Communications on an equal and
proportionate basis.
Each holder of Clearwire Communications Class B Common Interests holds an equivalent number of
Class B Common Stock and will be entitled at any time to exchange one share of Class B Common Stock plus
one Clearwire Communications Class B Common Interest for one share of Class A Common Stock.
It is intended that at all times, the number of Clearwire Communications Class A Common Interests held by
Clearwire will equal the number of shares of Class A Common Stock issued by Clearwire. Similarly, it is
intended that, at all times, Sprint and each Investor, except Google, will hold an equal number of Class B
Common Stock and Clearwire Communications Class B Common Interests.
Dividend Policy
We have not declared or paid any cash dividends on Class A or Class B Common Stock since the Closing.
We currently expect to retain future earnings, if any, for use in the operations and expansion of our business. We
do not anticipate paying any cash dividends in the foreseeable future. In addition, covenants in the indenture
governing our Senior Secured Notes impose significant restrictions on our ability to pay cash dividends to our
stockholders. The distribution of subscription rights as part of the Rights Offering represents a dividend
distribution.
Non-controlling Interests in Clearwire Communications
Clearwire Communications is consolidated into Clearwire. Therefore, the holders of the Clearwire
Communications Class B Common Interests represent non-controlling interests in a consolidated subsidiary. As a
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