Sprint - Nextel 2010 Annual Report Download - page 107

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4. Property, Plant and Equipment
Property, plant and equipment as of December 31, 2010 and 2009 consisted of the following (in thousands):
Network and base station equipment
Customer premise equipment
Furniture, fixtures and equipment
Leasehold improvements
Construction in progress
Less: accumulated depreciation and amortization
Useful
Lives (Years)
5-15
2
3-7
Lesser of useful
life or lease term
N/A
December 31,
2010
$ 3,160,790
147,959
433,858
49,712
1,299,244
5,091,563
(627,029)
$ 4,464,534
2009
$ 901,814
60,108
216,598
18,128
1,623,703
2,820,351
(223,831)
$ 2,596,520
Supplemental information (in thousands):
Capitalized interest
Depreciation expense
Year Ended December 31,
2010
$ 208,595
$ 435,236
2009
$ 140,168
$ 170,131
2008
$ 4,469
$ 54,811
We have entered into lease arrangements related to our network construction and equipment that meet the criteria for
capital leases. At December 31, 2010, we have recorded capital lease assets with an original cost of $73.0 million within
network and base station equipment.
Construction in progress is primarily composed of costs incurred during the process of completing network projects. The
balance at December 31, 2010 also includes $289.8 million of network and base station equipment not yet assigned to a project,
$56.6 million of CPE that we intend to lease and $97.9 million of costs related to information technology, which we refer to as
IT, and other corporate projects.
We periodically assess certain assets that have not yet been deployed in our networks, including equipment and cell site
development costs. This assessment includes the provision for identified differences between recorded amounts and the results
of physical counts and the write-off of network equipment and cell site development costs whenever events or changes in
circumstances cause us to conclude that such assets are no longer needed to meet management’s strategic network plans and
will not be deployed. With the substantial completion of our prior build plans and due to the uncertainty of the extent and
timing of future expansion of our networks, we reviewed all network projects in process. Any projects that no longer fit within
management’s strategic network plans were abandoned and the related costs written down.
Table of Contents CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS —(CONTINUED)
F-50