Sprint - Nextel 2010 Annual Report Download - page 135

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Capital expenditures
United States
International
Year Ended December 31,
2010
$ 2,654,612
10,138
$ 2,664,750
2009
$ 1,533,918
6,112
$ 1,540,030
2008
$ 573,537
1,420
$ 574,957
Total assets
United States
International
December 31,
2010
$ 10,921,885
118,601
$ 11,040,486
2009
$ 11,115,815
152,038
$ 11,267,853
17. Related Party Transactions
We have a number of strategic and commercial relationships with third parties that have had a significant impact on our
business, operations and financial results. These relationships have been with Sprint, the Investors, Eagle River, Switch & Data,
Inc., Dashwire, Inc., Motorola, Inc. and Bell Canada, as well as others discussed below, all of which are or have been related
parties. Some of these relationships include agreements pursuant to which we sell wireless broadband services to certain of
these related parties on a wholesale basis, which such related parties then resell to each of their respective end user subscribers.
We sell these services at terms defined in our contractual agreements.
The following amounts for related party transactions are included in our consolidated financial statements (in thousands):
Accounts receivable
Accounts payable and accrued expenses
December 31,
2010
$ 22,297
$ 11,161
2009
$ 3,221
$ 22,521
Revenue
Cost of goods and services and network costs (inclusive of capitalized costs) (COGS)
Selling, general and administrative (SG&A)
Total contributions and advances from Sprint
Year Ended December 31,
2010
$ 50,808
$104,883
$ 7,150
$ —
2009
$ 2,230
$75,283
$10,773
$ —
2008
$ —
$118,331
$ 95,840
$451,925
Rollover Notes — In connection with the issuance of the Senior Secured Notes, on November 24, 2009, we also issued
$252.5 million of notes to Sprint and Comcast with identical terms as the Senior Secured Notes. The proceeds from the
Rollover Notes were used to retire the principal amounts owed to Sprint and Comcast under our Senior Term Loan Facility.
From time to time, other related parties may hold debt under our Senior Secured Notes, and as debtholders, would be entitled to
receive interest payments from us.
Sprint Pre-Closing Financing Amount and Amended Credit Agreement — As a result of the Transactions, we assumed
the liability to reimburse Sprint for the Sprint Pre-Closing Financing Amount. We were required to pay $213.0 million, plus
related interest of $4.5 million, to Sprint in cash on the first business day after the Closing, with the remainder added as the
Sprint Tranche under the Amended Credit Agreement for our senior term loan facility in
Table of Contents CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS —(CONTINUED)
F-78