Sprint - Nextel 2014 Annual Report Download - page 168

Download and view the complete annual report

Please find page 168 of the 2014 Sprint - Nextel annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 194

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194

Table of Contents
Index to Consolidated Financial Statements
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS —(CONTINUED)
F-85
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.
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
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):
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
Other intangible assets as of July 9, 2013 and December 31, 2012 consisted of the following (in thousands):
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
As of July 9, 2013, the future amortization of other intangible assets is expected to be as follows (in
thousands):