Sprint - Nextel 2010 Annual Report Download - page 113

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addition, Old Clearwire acquired United States and foreign entities which operated prior to 2003. Most of the acquired
entities generated losses for income tax purposes and certain tax returns remain open to examination by United States and
foreign tax authorities for tax years as far back as 1998.
As of December 31, 2010, we had United States federal tax net operating loss carryforwards of approximately
$2.19 billion. A portion of the net operating loss carryforward is subject to certain annual limitations imposed under
Section 382 of the Internal Revenue Code of 1986. The net operating loss carryforwards begin to expire in 2021. We had
$327.2 million of tax net operating loss carryforwards in foreign jurisdictions; $166.8 million have no statutory expiration date,
$160.3 million begins to expire in 2015, and the remainder of $97,000 begins to expire in 2011.
Our policy is to recognize any interest related to unrecognized tax benefits in interest expense or interest income. We
recognize penalties as additional income tax expense. As December 31, 2010, we had no material uncertain tax positions and
therefore accrued no interest or penalties related to uncertain tax positions.
9. Long-term Debt, Net
Long-term debt at December 31, 2010 and 2009 consisted of the following (in thousands):
Notes:
Senior Secured Notes and Rollover
Notes
Second-Priority Secured Notes
Exchangeable Notes
Vendor Financing Notes
Capital lease obligations
Total debt, net
Less: Current portion of Vendor
Financing Notes and capital lease
obligations(3)
Total long-term debt, net
2010
Interest
Rates
12.00%
12.00%
8.25%
LIBOR
based(2)
Effective
Rate(1)
12.92%
12.39%
16.65%
6.16%
Maturities
2015
2017
2040
2014
Par
Amount
$2,947,494
500,000
729,250
60,251
72,160
$4,309,155
Net
Discount
$(42,387)
—
(230,121)
(264)
—
$(272,772)
Carrying
Value
$ 2,905,107
500,000
499,129
59,987
72,160
4,036,383
(19,364)
$ 4,017,019
_______________________________________
(1) Represents weighted average effective interest rate based on year-end balances.
(2) Coupon rate based on 3-month LIBOR plus a spread of 5.50%.
(3) Included in Other current liabilities on the consolidated balance sheet.
Notes:
Senior Secured Notes and Rollover Notes
Total long-term debt, net
2009
Interest
Rates
12.00%
Effective
Rate(1)
13.02%
Maturities
2015
Par
Amount
$ 2,772,494
Net
Discount
$(57,763)
Carrying
Value
$ 2,714,731
$ 2,714,731
_______________________________________
(1) Represents weighted average effective interest rate based on year-end balances.
Table of Contents CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS —(CONTINUED)
F-56