Sprint - Nextel 2014 Annual Report Download - page 189

Table of Contents
Index to Consolidated Financial Statements
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS —(CONTINUED)
F-106
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):
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)
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.