Sprint - Nextel 2013 Annual Report Download - page 189

Table of Contents
Index to Consolidated Financial Statements
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — ( CONTINUED)
Components of deferred tax assets and liabilities as of July 9, 2013 and December 31, 2012 were as follows (in thousands):
We determine deferred income taxes based on the estimated future tax effects of differences between the financial statement and tax bases of assets and
liabilities using the tax rates expected to be in effect when any temporary differences reverse or when the net operating loss, which we refer to as NOL, capital
loss or tax credit carry
- forwards are utilized.
As of July 9, 2013, excluding NOL carry
- forwards that we permanently will be unable to use (as discussed below), we had United States federal tax NOL
carry
- forwards of approximately $2.01 billion of which $1.35 billion is subject to certain annual limitations imposed under Section 382 of the Internal Revenue
Code. The NOL carry
- forwards begin to expire in 2021. We had $435.4 million of tax NOL carry - forwards in foreign jurisdictions; $426.1 million have no statutory
expiration date, and $9.3 million begins to expire in 2015. We also have federal capital loss carry
- forwards of $227.5 million which is also subject to certain annual
limitations imposed under Section 382 of the Internal Revenue Code. The capital loss carry
- forwards begin to expire between 2015 and 2017. Our U.S. federal
NOL carry - forwards and capital loss carry - forwards in total are subject to the annual limitations imposed under Section 382 of the Internal Revenue Code. We
currently do not project that the Company will generate capital gain income to utilize the capital loss carry
- forwards. However, if the Company generates
sufficient capital gain income to enable utilization of capital loss carry
- forwards in excess of $227.5 million, then NOL carry - forwards of up to $227.5 million may
no longer be available to offset future taxable income.
We have recorded a valuation allowance against our deferred tax assets to the extent that we determined that it is more likely than not that these items will
either expire before we are able to realize their benefits or that future deductibility is uncertain. As it relates to the United States tax jurisdiction, we determined
that our temporary taxable difference associated with our investment in Clearwire Communications LLC, which we refer to as Clearwire Communications, will not
fully reverse within the carry
- forward period of the NOLs and accordingly does not represent relevant future taxable income.
Sprint Holdco LLC, which we refer to as Sprint, exchanged 57.5 million of Clearwire Communications Class B common interests, which we refer to as Class
B Common Interests, and a corresponding number of shares of Class B Common Stock, for an equal number of shares of Class A Common Stock, and which we
refer to as the Sprint Exchange, on July 5, 2013. Intel Capital Wireless Investment Corporation 2008A, which we refer to as Intel,
F - 68
July 9,
December 31,
2013
2012
Noncurrent deferred tax assets:
Net operating loss carryforward
$
886,883
$
553,195
Capital loss carryforward
86,319
221,453
Other assets
331
625
Total deferred tax assets
973,533
775,273
Valuation allowance
(852,968
)
(458,935
)
Net deferred tax assets
120,565
316,338
Noncurrent deferred tax liabilities:
Investment in Clearwire Communications
339,771
460,834
Other
(756
)
(504
)
Total deferred tax liabilities
339,015
460,330
Net deferred tax liabilities
$
218,450
$
143,992