Sprint - Nextel 2013 Annual Report Download - page 186

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Table of Contents
Index to Consolidated Financial Statements
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
—
(
CONTINUED)
geographical areas in the United States. These licenses are generally acquired as an asset purchase or through a business combination. In some cases, we
acquire licenses directly from the governmental authority.
Spectrum Leases and Prepaid Spectrum
— We also lease spectrum from third parties who hold the spectrum licenses. These leases are accounted for as
executory contracts, which are treated like operating leases. Upfront consideration paid to third
-
party holders of these leased licenses at the inception of a lease
agreement is capitalized as prepaid spectrum lease costs and is expensed over the term of the lease agreement, including expected renewal terms, as applicable.
Favorable spectrum leases of $1.0 billion were recorded as an asset as a result of purchase accounting in November 2008 and are amortized over the lease term.
As of
July 9, 2013
, future amortization of spectrum licenses, spectrum leases and prepaid lease costs (excluding pending spectrum and spectrum transition
costs) is expected to be as follows (in thousands):
Other intangible assets as of
July 9, 2013
and
December 31, 2012
consisted of the following (in thousands):
As of
July 9, 2013
, the future amortization of other intangible assets is expected to be as follows (in thousands):
F
-
65
190 Days Ended July
9,
Year Ended December 31,
2013
2012
2011
Supplemental Information (in thousands):
Amortization of prepaid and other spectrum licenses
$
29,022
$
56,554
$
55,870
Remainder of 2013
$
25,752
2014
53,928
2015
53,376
2016
52,588
2017
51,328
Thereafter
869,025
Total
$
1,105,997
6.
Other Intangible Assets
July 9, 2013
December 31, 2012
Useful lives
Gross
Carrying
Value
Accumulated
Amortization
Net Carrying
Value
Gross
Carrying
Value
Accumulated
Amortization
Net Carrying
Value
Subscriber relationships
7 years
$
108,275
$
(91,888
)
$
16,387
$
108,275
$
(86,040
)
$
22,235
Trade names and trademarks
5 years
3,804
(3,550
)
254
3,804
(3,106
)
698
Patents and other
10 years
3,297
(1,734
)
1,563
3,270
(1,543
)
1,727
Total other intangibles
$
115,376
$
(97,172
)
$
18,204
$
115,349
$
(90,689
)
$
24,660