Sprint - Nextel 2014 Annual Report Download - page 190
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Table of Contents
Index to Consolidated Financial Statements
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS —(CONTINUED)
F-107
Warrants
During the first quarter of 2013, we issued a warrant to purchase 2.0 million shares of Class A Common Stock
at an exercise price of $1.75 per share related to a spectrum lease agreement. The warrants expire January 29, 2019.
In connection with the Sprint Acquisition, the warrants were settled for a lump sum cash amount equal to the amount
by which the Merger Consideration exceeded the exercise price of the warrants.
In addition, prior to the closing of the merger with Sprint, we had 375,000 warrants outstanding with an
exercise price of $3.00. These warrants were settled for a lump sum cash amount equal to the amount by which the
Merger Consideration exceeded the exercise price of the warrants.
15. Related Party Transactions
We have a number of strategic and commercial relationships with third parties that have had a significant
impact on our business, operations and financial results. These relationships have been with Sprint, Intel, Comcast,
Time Warner Cable, Bright House, Google, Eagle River, and Ericsson, all of which are or have been related parties.
Some of these relationships include agreements pursuant to which we sell wireless broadband services to certain of
these related parties on a wholesale basis, which such related parties then resell to each of their respective end user
subscribers. We sell these services at terms defined in our contractual agreements.
The following amounts for related party transactions are included in our consolidated financial statements (in
thousands):
July 9, December 31,
2013 2012
Accounts receivable $ 16,497 $ 17,227
Prepaid assets and other assets $ 4,235 $ 5,943
Accounts payable and accrued expenses $ 58,210 $ 8,223
Other current liabilities:
Cease-to-use $ 5,650 $ 5,497
Deferred revenue $ 200,698 $ 96,161
Other $ 5,642 $ 5,642
Other long-term liabilities:
Cease-to-use $ 37,541 $ 36,793
Deferred revenue $ 13,750 $ 83,887
Deferred rent $ 61,053 $ 32,213
Other $ 334 $ 2,821
190 days Ended
July 9, Year Ended December 31,
2013 2012 2011
Revenue $ 237,111 $ 465,295 $ 493,350
Cost of goods and services and network costs (inclusive of
capitalized costs) $ 75,469 $ 152,669 $ 182,671
Selling, general and administrative (inclusive of capitalized costs) $ 26,749 $ 50,193 $ 31,453
Sprint Merger Agreement — On December 17, 2012, we entered into a Merger Agreement, pursuant to which
Sprint agreed to acquire all of the outstanding shares of Class A and Class B Common Stock not currently owned by