Sprint - Nextel 2012 Annual Report Download - page 207

Table of Contents
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
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, Intel, Comcast, Time Warner Cable, Bright House, Google, Eagle River, and Ericsson,
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):
Proposed Sprint Merger Agreement — On December 17, 2012, we entered into a Merger Agreement, pursuant to which Sprint agreed to acquire
all of the outstanding shares of Class A and Class B Common Stock not currently owned by Sprint. See Note 1, Description of Business for further
information.
Note Purchase Agreement —In connection with the Merger Agreement, on December 17, 2012, we and certain of our subsidiaries also entered
into the Note Purchase Agreement, in which Sprint agreed to purchase from us at our election up to an aggregate principal amount of
$800.0 million of
1.00% Exchangeable Notes due 2018 , in ten monthly installments of $80.0 million each. See Note 1, Description of Business for further information.
Rollover Notes —
In connection with the issuance of the 2015 Senior Secured Notes, on November 24, 2009, we issued notes to Sprint and
Comcast with identical terms as the 2015 Senior Secured Notes. From time to time, other related parties may hold portions of our long
- term debts, and
as debtholders, would be entitled to receive interest payments from us.
F - 85
17.
Related Party Transactions
December 31,
2012
2011
Accounts receivable
$
17,227
$
78,282
Prepaid assets and other assets
$
5,943
$
2,229
Accounts payable and accrued expenses
$
8,223
$
4,736
Other current liabilities:
Cease - to - use
$
5,497
$
4,652
Deferred revenue
$
96,161
$
9,301
Other
$
5,642
$
—
Other long - term liabilities:
Cease - to - use
$
36,793
$
33,940
Deferred revenue
$
83,887
$
1,207
Deferred rent
$
32,213
$
52,663
Other
$
2,821
$
—
Year Ended December 31,
2012
2011
2010
Revenue
$
465,295
$
493,350
$
50,808
Cost of goods and services and network costs (inclusive of capitalized costs)(1)
$
152,669
$
182,671
$
104,883
Selling, general and administrative (inclusive of capitalized costs)
$
50,193
$
31,453
$
7,150
(1)
The amounts presented for the year ended December 31, 2011 have been adjusted to reflect the inclusion of $20.0 million of non-cash rents related to leases with
Sprint.