Sprint - Nextel 2014 Annual Report Download - page 181

Table of Contents
Index to Consolidated Financial Statements
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS —(CONTINUED)
F-98
Notes incorporates the value of the exchange feature which we have recognized separately as a derivative on our
consolidated balance sheets. See Note 9, Long-term Debt, Net for additional discussion.
(2) Carrying value as of July 9, 2013 is net of $227.3 million discount arising from the BCF. See Note 9, Long-term Debt, Net
for additional discussion.
12. Commitments and Contingencies
Future minimum cash payments under obligations for our continuing operations listed below (including all
optional expected renewal periods on operating leases) as of July 9, 2013, are as follows (in thousands):
Total 2013 2014 2015 2016 2017
Thereafter,
including all
renewal
periods
Long-term debt
obligations(1) $ 4,648,725 $ 12,282 $ 12,729 $ 2,954,464 $ 300,000 $ 500,000 $ 869,250
Interest payments
on long-term debt
obligations(1) 2,751,195 257,101 513,316 512,700 158,563 114,313 1,195,202
Operating lease
obligations 3,207,212 188,022 402,830 406,397 404,451 401,897 1,403,615
Spectrum lease
obligations 6,792,437 84,210 182,997 187,529 193,215 207,181 5,937,305
Spectrum service
credits and
signed spectrum
agreements 101,727 1,470 2,939 2,939 2,939 2,939 88,501
Capital lease
obligations(2) 165,831 16,677 35,563 34,297 22,574 14,426 42,294
Purchase
agreements 109,141 76,317 17,871 6,301 1,899 1,884 4,869
Total $17,776,268 $ 636,079 $1,168,245 $ 4,104,627 $1,083,641 $1,242,640 $ 9,541,036
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(1) Principal and interest payments beyond 2017 represent potential principal and interest payments on the Exchangeable Notes
beyond the expected repayment in 2017.
(2) Payments include $41.3 million representing interest.
Expense recorded related to spectrum and operating leases was as follows (in thousands):
190 days ended
July 9, Year ended December 31,
2013 2012 2011
Spectrum lease expense $ 178,989 $ 326,798 $ 308,693
Operating lease expense $ 245,010 $ 502,701 $ 637,688
Operating lease obligations — Our commitments for non-cancelable operating leases consist mainly of leased sites,
including towers and rooftop locations, and office space. Certain of the leases provide for minimum lease payments,
additional charges and escalation clauses. Operating leases generally have initial terms of five to seven years with
multiple renewal options for additional five-year terms totaling between 20 and 25 years. Operating lease obligations
in the table above include all lease payments for the contractual lease term plus one renewal period and include any
remaining future lease payments for leases where notice of intent not to renew has been sent as a result of the lease
termination initiatives. The estimated lease term utilized for lease expense recognition purposes for most leases includes
the initial non-cancelable term plus one renewal period.