Sprint - Nextel 2013 Annual Report Download - page 185

Table of Contents
Index to Consolidated Financial Statements
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — ( CONTINUED)
Charges associated with Property, plant and equipment
We periodically assess assets that have not yet been deployed in our networks, including equipment and cell site development costs, classified as
construction in progress. We evaluate for losses related to (1) shortage, or loss incurred in deploying such equipment, (2) reserve for excessive and obsolete
equipment not yet deployed in the network, and (3) abandonment of network and corporate projects no longer expected to be deployed. In addition to charges
incurred in the normal course of business, this assessment includes evaluating the impact of changes in our business plans and strategic network plans on
those assets.
During 2012, we solidified our TDD
- LTE network architecture, including identifying the sites at which we expect to overlay TDD - LTE technology in the
first phase of our deployment. Any projects that are not required to deploy TDD
- LTE technology at those sites, or that are no longer viable due to the
development of the TDD
- LTE network architecture, were abandoned and the related costs written down. In addition, any network equipment not required to
support our network deployment plans or sparing requirements were written down to estimated salvage value.
We incurred the following charges associated with PP&E for the 190 days ended
July 9, 2013 and the years ended December 31, 2012 and 2011 (in
thousands):
(1) Included in Cost of goods and services and network costs on the consolidated statements of operations.
Owned and leased spectrum licenses as of
July 9, 2013 and December 31, 2012 consisted of the following (in thousands):
Indefinite - lived Owned Spectrum Licenses — Spectrum licenses, which are issued on both a site - specific and a wide - area basis, authorize wireless
carriers to use radio frequency spectrum to provide service to certain
F - 64
190 Days
Ended July 9,
Year Ended December 31,
2013
2012
2011
Abandonment of network projects no longer meeting strategic network plans
$
671
$
81,642
$
397,204
Abandonment of network projects associated with terminated leases
—
—
233,468
Abandonment of corporate projects
162
564
69,669
Total loss from abandonment of network and other assets
833
82,206
700,341
Charges for disposal and differences between recorded amounts and results of physical counts(1)(2)
5,315
30,961
56,188
Charges for excessive and obsolete equipment(1)
3,937
58,613
209,912
Total losses on property, plant and equipment
$
10,085
$
171,780
$
966,441
(2)
For the year ended December 31, 2012, $14.0 million related to retail operations is included in Selling, general and administrative expense on the consolidated statements of
operations.
5.
Spectrum Licenses
July 9, 2013
December 31, 2012
Gross Carrying
Value
Accumulated
Amortization
Net Carrying
Value
Gross Carrying
Value
Accumulated
Amortization
Net Carrying
Value
Indefinite-lived owned spectrum
$
3,104,664
$
—
$
3,104,664
$
3,104,129
$
—
$
3,104,129
Spectrum leases and prepaid spectrum
1,371,737
(265,740
)
1,105,997
1,370,317
(237,317
)
1,133,000
Pending spectrum and transition costs
12,239
—
12,239
12,492
—
12,492
Total spectrum licenses
$
4,488,640
$
(265,740
)
$
4,222,900
$
4,486,938
$
(237,317
)
$
4,249,621