Sprint - Nextel 2010 Annual Report Download - page 118
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The following table presents the change in Level 3 financial assets and liabilities measured on a recurring basis for the
year ended December 31, 2010 (in thousands):
Long-term investments:
Other debt securities
Other assets:
Derivatives
Other current liabilities:
Derivatives
January 1,
2010
$ 13,171
—
—
Acquisitions,
Issuances and
Settlements
$ —
648
(231,503)
Net Unrealized
Gains (Losses)
Included in
Earnings
$ —
(356)
63,611
(1)
(1)
Net Unrealized
Gains (Losses)
Included in
Accumulated
Other
Comprehensive
Income
$ 2,080
—
—
December 31,
2010
$ 15,251
292
(167,892)
Net Unrealized
Gains (Losses)
Included in 2010
Earnings Relating
to Instruments Held
at December 31,
2010
$ —
(356)
63,611
_______________________________________
(1) Included in Gain (loss) on derivative instruments in the consolidated statements of operations.
The following table presents the change in Level 3 financial assets and liabilities measured on a recurring basis for the
year ended December 31, 2009 (in thousands):
Long-term
investments:
Other debt securities
Other current
liabilities:
Derivatives
January 1,
2009
$ 18,974
(21,591)
Acquisitions,
Issuances and
Settlements
$ —
14,652
Net Unrealized
Gains (Losses)
Included in
Earnings
$(10,015)
6,939
(1)
(2)
Net Unrealized
Gains (Losses)
Included in
Accumulated
Other
Comprehensive
Income
$ 4,212
—
December 31,
2009
$ 13,171
—
Net Unrealized
Gains (Losses)
Included in 2009
Earnings Relating
to Instruments Held
at December 31,
2009
$(10,015)
—
_______________________________________
(1) Included in Other income (expense), net in the consolidated statements of operations.
(2) Included in Gain (loss) on derivative instruments in the consolidated statements of operations.
During the year ended December 31, 2010, we recognized losses of $10.8 million on nonrecurring fair value
measurements, which were categorized as Level 3 measurements, on certain assets held and used by international subsidiaries.
We no longer hold these assets at December 31, 2010.
The following is the description of the fair value for financial instruments we hold that are not subject to fair value
recognition.
Debt Instruments
To estimate the fair value of the Senior Secured Notes and Rollover Notes, the Second-Priority Secured Notes and the
Exchangeable Notes, we used the average indicative price from several market makers.
To estimate the fair value of the Vendor Financing Notes, we used an income approach based on the contractual terms of
the notes and market-based parameters such as interest rates. A level of subjectivity and judgment was used to estimate an
appropriate discount rate to calculate the present value of the estimated cashflows.
Table of Contents CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS —(CONTINUED)
F-61