Sprint - Nextel 2014 Annual Report Download - page 167

Table of Contents
Index to Consolidated Financial Statements
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS —(CONTINUED)
F-84
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):
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
(1) Included in Cost of goods and services and network costs on the consolidated statements of operations.
(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
Owned and leased spectrum licenses as of July 9, 2013 and December 31, 2012 consisted of the following (in
thousands):
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
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