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Table of Contents
Index to Consolidated Financial Statements
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS —(CONTINUED)
F-88
Components of deferred tax assets and liabilities as of July 9, 2013 and December 31, 2012 were as follows
(in thousands):
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
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,