Sprint - Nextel 2010 Annual Report Download - page 108

Download and view the complete annual report

Please find page 108 of the 2010 Sprint - Nextel annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 142

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142

We incurred the following losses associated with property, plant and equipment for the years ended December 31, 2010,
2009 and 2008 (in thousands):
Loss from abandonment and impairment of network and other assets:
Abandonment of network projects
Impairment of assets held by international subsidiaries(1)
Total loss from abandonment and impairment of network and other assets
Charges for identified differences between recorded amounts and the results of physical
counts and excessive and obsolete equipment(2)
Total losses on property, plant and equipment
Year Ended December 31,
2010
$180,001
10,351
190,352
159,160
$349,512
2009
$ 7,916
—
7,916
52,958
$ 60,874
2008
$ —
—
—
—
$ —
_______________________________________
(1) Includes impairment losses of $7.4 million on spectrum licenses and other intangible assets.
(2) Included in Cost of goods and services and network costs on the consolidated statements of operations.
5. Spectrum Licenses
Owned and leased spectrum licenses as of December 31, 2010 and 2009 consisted of the following (in thousands):
Indefinite-lived owned
spectrum
Definite-lived owned
spectrum
Spectrum leases and
prepaid spectrum
Pending spectrum and
transition costs
Total spectrum licenses
Wtd Avg
Lease Life
Indefinite
16-20 years
25 years
N/A
December 31, 2010
Gross Carrying
Value
$ 3,110,871
100,474
1,320,309
14,838
$ 4,546,492
Accumulated
Amortization
$ —
(8,630)
(120,370)
—
$(129,000)
Net Carrying
Value
$ 3,110,871
91,844
1,199,939
14,838
$ 4,417,492
December 31, 2009
Gross
Carrying
Value
$3,082,40
1
118,069
1,323,40
5
40,464
$4,564,33
9
Accumulated
Amortization
$ —
(6,268)
(62,937)
—
$(69,205)
Net Carrying
Value
$3,082,40
1
111,801
1,260,46
8
40,464
$4,495,13
4
Indefinite and Definite-lived Owned Spectrum Licenses — Spectrum licenses, which are issued on both a site-specific and
a wide-area basis, authorize wireless carriers to use radio frequency spectrum to provide service to certain geographical areas in
the United States and internationally. These licenses are generally acquired as an asset purchase or through a business
combination. In some cases, we acquire licenses directly from the governmental authority in the applicable country. These
licenses are considered indefinite-lived intangible assets, except for the licenses acquired in Spain and Germany, which are
considered definite-lived intangible assets due to limited license renewal history in these countries.
Spectrum Leases and Prepaid Spectrum — We also lease spectrum from third parties who hold the spectrum licenses.
These leases are accounted for as executory contracts, which are treated like operating leases. Upfront consideration paid to
third-party holders of these leased licenses at the inception of a lease agreement is capitalized as prepaid spectrum lease costs
and is expensed over the term of the lease agreement, including expected renewal terms, as applicable. As part of the purchase
accounting for the Transactions, favorable spectrum leases of $1.0 billion were recorded at the Closing. The favorable
component of the acquired spectrum leases has been capitalized as an asset and is amortized over the lease term.
Table of Contents CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS —(CONTINUED)
F-51