Sprint - Nextel 2013 Annual Report Download - page 207

Table of Contents
Index to Consolidated Financial Statements
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — ( CONTINUED)
Clearwire Communications Interests
Clearwire is the sole holder of voting interests in Clearwire Communications. As such, Clearwire controls 100% of the decision making of Clearwire
Communications and consolidates 100% of its operations. Clearwire also holds all of the outstanding Clearwire Communications Class A common interests
representing
55.9% of the economics of Clearwire Communications as of July 9, 2013 . The holders of the Class B Common Interests own the remaining 44.1% of
the economic interests. It is intended that at all times, the number of Clearwire Communications Class A common interests held by Clearwire will equal the
number of shares of Class A Common Stock issued by Clearwire.
The non
- voting Clearwire Communication units are designated as either Clearwire Communications Class A common interests, all of which are held by
Clearwire, or Class B Common Interests, which are held by Sprint and Intel. Both classes of non
- voting Clearwire Communication units participate in
distributions of Clearwire Communications on an equal and proportionate basis.
The following shows the effects of the changes in Clearwire
’ s ownership interests in Clearwire Communications (in thousands):
Dividend Policy
We have not declared or paid any cash dividends on Class A or Class B Common Stock. We currently expect to retain future earnings, if any, for use in
the operations. We do not anticipate paying any cash dividends in the foreseeable future. In addition, covenants in the indentures governing our Senior
Secured Notes impose significant restrictions on our ability to pay cash dividends to our stockholders.
Non
- controlling Interests in Clearwire Communications
Clearwire Communications is consolidated into Clearwire because we hold 100% of the voting interest in Clearwire Communications. Therefore, the
holders of the Class B Common Interests represent non
- controlling interests in a consolidated subsidiary. As a result, the income (loss) consolidated by
Clearwire is decreased in proportion to the outstanding non
- controlling interests. The conversion of Class B Common Interests and the corresponding number
of Class B Common Stock to Class A Common Stock is recorded in Issuance of common stock, net of issuance costs, and other capital transactions on our
consolidated statement of stockholders' equity.
F - 86
190 Days ended July
9,
Year ended December 31,
2013
2012
2011
Clearwire's loss from equity investees
$
(226,783
)
$
(758,705
)
$
(612,214
)
Increase/(decrease) in Clearwire ’ s additional paid - in capital for issuance or conversion of
Class B Common Stock
301,283
379,048
137,353
Increase in Clearwire ’ s additional paid - in capital for issuance of Class A Common Stock
1,979
58,460
384,106
Other effects of changes in Clearwire ’ s additional paid - in capital for issuance of Class A and
Class B Common Stock
20,972
28,143
18,870
Net transfers from non - controlling interests
324,234
465,651
540,329
Change from net loss attributable to Clearwire and transfers to non - controlling interests
$
97,451
$
(293,054
)
$
(71,885
)