Sprint - Nextel 2011 Annual Report Download - page 132

Table of Contents
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
The following table presents the carrying value and the approximate fair value of our outstanding debt instruments at December 31, 2011 and 2010 (in thousands):
_
______________________________________
Future minimum cash payments under obligations for our continuing operations listed below (including all optional expected renewal periods on operating leases)
as of December 31, 2011, are as follows (in thousands):
_
____________________________________
Operating lease obligations — Our commitments for non-cancelable operating leases consist mainly of leased sites, including towers and rooftop locations, and office
space. Certain of the leases provide for minimum lease payments, additional charges and escalation clauses. Operating leases generally have initial terms of five years
with multiple renewal options for additional five-year terms totaling between 20 and 25 years. Operating lease obligations in the table above include all lease payments fo
r
the contractual lease term including any remaining future lease payments for leases where notice of intent not to renew has been sent as a result of the lease termination
initiatives describe in Note 3, Charges Resulting from Cost Savings Initiatives. Operating lease payments for assumed renewal periods include the expected renewal
periods for those leases where renewal is likely.
Certain of the tower leases specify a minimum number of new leases to commence by December 31, 2012. Charges may apply if these commitments are not
satisfied. The amounts above include the minimum commitment obligation.
F-65
December 31, 2011 December 31, 2010
Carrying
Value Fair Value Carrying
Value Fair Value
Notes:
Senior Secured Notes and Rollover Notes $ 2,912,222 $ 2,799,820 $ 2,905,107 $ 3,180,662
Second-Priority Secured Notes $ 500,000 $ 425,000 $ 500,000 $ 520,833
Exchangeable Notes(1) $ 519,991 $ 446,134 $ 499,129 $ 746,107
Vendor Financing Notes $ 48,276 $ 44,133 $ 59,987 $ 60,793
(1) Carrying value as of December 31, 2011 and 2010 is net of $209.3 million and $230.1 million discount, respectively, arising from the separation of the Exchange Options from the
debt host instrument. The fair value of the Exchangeable Notes incorporates the value of the exchange feature which we have recognized separately as a derivative on our
consolidated balance sheets.
13. Commitments and Contingencies
Total 2012 2013 2014 2015 2016
Thereafter,
including all
renewal periods
Long-term debt obligations $ 4,225,123 $ 20,965 $ 21,195 $ 5,989 $ 2,947,724 $
—
$ 1,229,250
Interest payments on long-term debt
obligations(1) 3,523,270 476,305 475,033 473,988 473,866 120,163 1,503,915
Operating lease obligations(2) 1,884,203 368,361 379,807 338,624 258,114 165,691 373,606
Operating lease payments for
assumed renewal periods(2) 8,751,774
—
23,468 68,257 154,557 246,687 8,258,805
Spectrum lease obligations 6,236,306 169,558 168,379 177,469 172,284 177,970 5,370,646
Spectrum service credits and signed
spectrum agreements 104,976 2,786 2,742 2,742 2,742 2,742 91,222
Capital lease obligations(3) 108,902 12,520 12,791 13,744 11,279 7,922 50,646
Purchase agreements 233,395 138,355 62,216 17,871 6,301 1,899 6,753
Total $ 25,067,949 $ 1,188,850 $ 1,145,631 $ 1,098,684 $ 4,026,867 $ 723,074 $ 16,884,843
(1) Includes $1.38 billion relating to contractual interest payments on the Exchangeable Notes beyond the expected repayment in 2017.
(2) Includes executory costs of $53.0 million.
(3) Payments include $43.3 million representing interest.