Sprint - Nextel 2012 Annual Report Download - page 178

CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Charges by type of cost and reconciliation of the associated accrued liability were as follows (in thousands):
For the year ended December 31, 2012, $55.2 million was recorded as Cost of goods and services and network costs and $5.2 million was recorded
as Selling, general and administrative expenses. For the year ended December 31, 2011, $145.9 million was recorded as Cost of goods and services and
network costs and $19.6 million was recorded as Selling, general and administrative expenses. For the year ended December 31, 2010, the entire expense
of $11.7 million was recorded as Selling, general and administrative expenses.
F - 56
Lease and Other
Contract Termination
Costs(1)
Employee Termination
Costs
Other Exit Costs
Total
Costs incurred and charged to expense during:
Year ended December 31, 2010
$
1,209
$
10,494
$
—
$
11,703
Year ended December 31, 2011
155,643
9,404
420
165,467
Year ended December 31, 2012
59,874
505
—
60,379
Cumulative cost incurred to date(2)
$
216,726
$
20,403
$
420
$
237,549
Accrued liability as of December 31, 2011
$
164,403
$
1,597
$
—
$
166,000
Costs incurred, excluding non -cash credits
59,874
505
—
60,379
Cash and share payments
(59,885
)
(2,043
)
—
(61,928
)
Accrued liability as of December 31, 2012(3)
$
164,392
$
59
$
—
$
164,451
(1)
Lease and other contract termination costs for the year ended December 31, 2011 include non-cash credits of $43.2 million representing the reversal of deferred rent
balances at the cease-use date and $37.8 million of accrued executory costs relating to unused tower sites where our current contract requires us to continue payments
for the remaining term. The costs for the year ended December 31, 2012 include accrued executory costs of $5.5 million. Costs for the year ended December 31, 2012
also included $25.0 million for the elimination of the remaining estimated sublease rental income from the liability computation and fully incorporated contractual rent
escalations.
(2)
Total costs for these activities are not expected to be significantly different from those incurred to date.
(3)
$1.7 million is recorded within Accounts payable and accrued expenses, $48.4 million is recorded as Other current liabilities and $114.3 million is recorded as Other
long-term liabilities on the consolidated balance sheets. With the exception of the elimination of remaining estimated sublease rental income from the liability
computation and fully incorporating contractual rent escalations, there were no other significant adjustments to the liability during the year.