Clearwire 2007 Annual Report Download - page 103

Download and view the complete annual report

Please find page 103 of the 2007 Clearwire 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 128

  • 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

The fair value of warrants granted is estimated on the date of grant using the Black-Scholes option pricing
model using the following average assumptions for the years ended December 31, 2007 and 2006:
2007 2006 2005
Year Ended December 31,
Expected volatility. . . ............. 64.68% - 88.54% 73.76% - 88.54% 78.62% - 80.31%
Expected dividend yield ........... — — —
Contractual life (in years) .......... 5-10 5-10 6
Risk-free interest rate . ............ 3.05% - 4.81% 3.05% - 5.16% 3.89% - 4.61%
Weighted average fair value per
warrant at issuance date .......... $12.07 $9.84 $12.27
14. Net Loss Per Share
Basic and diluted loss per share has been calculated in accordance with SFAS No. 128 for the years ended
December 31, 2007, 2006 and 2005. As the Company had a net loss in each of the periods presented, basic and
diluted net loss per common share are the same.
The computations of diluted loss per share for the years ended December 31, 2007, 2006 and 2005, did not
include the effects of the following options, shares of nonvested restricted stock, restricted stock units and warrants
as the inclusion of these securities would have been antidilutive.
2007 2006 2005
Year Ended December 31,
Stock options .................................. 14,249,467 11,270,405 7,952,858
Nonvested restricted stock ........................ 62,877 83,333 166,666
Restricted Stock Units ........................... 101,247 — —
Warrants ..................................... 18,064,035 18,802,635 8,910,613
32,477,626 30,156,373 17,030,137
15. Comprehensive Loss
Comprehensive loss consists of two components, net loss and other comprehensive loss. Other comprehensive
income refers to revenue, expenses, gains and losses that under generally accepted accounting principles are
recorded as an element of stockholders’ equity but are excluded from net loss. The Company’s other comprehensive
income is comprised of foreign currency translation adjustments from the Company’s subsidiaries not using the
U.S. dollar as their functional currency and unrealized gains and losses on marketable securities categorized as
available-for-sale.
Total comprehensive loss was $717.1 million, $276.7 million, and $140.7 million for the years ended
December 31, 2007, 2006 and 2005, respectively. The primary differences between net loss as reported and
comprehensive loss are foreign currency translation adjustments and net unrealized losses from available-for-sale
investments.
The components of accumulated other comprehensive income were as follows (in thousands):
2007 2006
December 31,
Net unrealized loss on available-for-sale investments ..................... $(7,292) $ (74)
Cumulative foreign currency translation adjustment ...................... 24,625 7,064
Total accumulated other comprehensive income ......................... $17,333 $6,990
95
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)