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Table of Contents
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
year ended December 31, 2011, we paid $41.1 million to Ericsson for network management services.
IT Master Services Agreement — In November 2008, we entered into an IT master services agreement with the Sprint Entities pursuant to which the Sprint Entities
and we established the contractual framework and procedures for us to purchase IT application services from the Sprint Entities. The term of the IT master services
agreement is five years, but we have the right to extend the term for an additional five years.
Intel Market Development Agreement — We entered into a market development agreement with Intel, which we refer to as the Intel Market Development
Agreement, pursuant to which we committed to deploy mobile WiMAX on our networks and to promote the use of certain notebook computers and mobile Internet
devices on our networks, and Intel would develop, market, sell and support WiMAX embedded chipsets for use in certain notebook computers and mobile Internet devices
that may be used on our networks. The Intel Market Development Agreement will last for a term of seven years from the date of the agreement, with Intel having the
option to renew the agreement for successive one year terms up to a maximum of 13 additional years provided that Intel meets certain requirements.
Google Spectrum Agreement — We entered into a spectrum agreement with Google in November 2008 pursuant to which we will make available to Google certain
of our excess 2.5 GHz spectrum in various markets for experimental usage by Google, and for development of alternative applications by third-parties operating under the
direction and approval of Google and us. The Google spectrum agreement provides for an initial term of five years and will be terminable by either party on default of the
other party.
Google Products and Services Agreement — In November 2008, we entered into a products and services agreement with Google, which we refer to as the Google
Products and Services Agreement, pursuant to which Google and we would collaborate on a variety of products and services. The Google Products and Services
Agreement had a term of three years and expired in November 2011.
As a result of a strategic decision to focus investment in the United States market, during the second quarter of 2011, we committed to sell our operations in
Belgium, Germany and Spain. We expect these sales to be completed during 2012. These businesses comprised substantially all of the remaining operations previously
reported in our International segment. Associated results of operations and financial position are separately reported as discontinued operations for all periods presented.
Results of operations and financial position presented for periods prior to the second quarter of 2011 include other businesses that were reported in our International
segment. The sale of our businesses in Ireland, Poland, and Romania were individually immaterial for separate disclosure in prior periods. Summarized financial
information for discontinued operations is shown below (in thousands):
F-81
18. Discontinued Operations
Year Ended December 31,
2011 2010 2009
Total revenues $ 20,767 $ 21,723 $ 30,686
Loss from discontinued operations before income taxes $ (86,749) $ (53,266) $ (44,706)
Income tax benefit (provision) 4,939 1,374 (552)
Net loss from discontinued operations (81,810) (51,892) (45,258)
Less: non-controlling interests in net loss from discontinued operations of consolidated
subsidiaries 61,379 39,817 33,423
Net loss from discontinued operations attributable to Clearwire Corporation $ (20,431) $ (12,075) $ (11,835)