Clearwire 2007 Annual Report Download - page 64

Financing Activities
Net cash provided by financing activities was $1.0 billion for the year ended December 31, 2007 compared to
$1.5 billion for the year ended December 31, 2006. During 2007 our financing activities consisted primarily of cash
proceeds received from the issuance of $1.25 billion in debt and from the $556.0 million net proceeds from our IPO.
This increase in cash received from financing activities was partially offset by principal payments and financing
fees on our senior secured notes and other indebtedness.
Net cash provided by financing activities increased $1.1 billion to $1.5 billion in 2006 from $389.2 million in 2005.
In 2006 we received $1.0 billion of net proceeds from the issuance of common stock, $360.4 million from the issuance of
our senior secured notes, due 2010, and $135.0 million in connection with our commercial loan and other indebtedness.
Contractual Obligations
The contractual obligations presented in the table below represent our estimates of future payments under fixed
contractual obligations and commitments as of December 31, 2007. Changes in our business needs or interest rates,
as well as actions by third parties and other factors, may cause these estimates to change. Because these estimates
are complex and necessarily subjective, our actual payments in future periods are likely to vary from those
presented in the table. The following table summarizes our contractual obligations, other than those listed below,
including principal and interest payments under our debt obligations and payments under our spectrum lease
obligations, as of December 31, 2007 (in thousands):
Contractual Obligations Total
Less Than 1
Year 1 - 3 Years 3 - 5 Years Over 5 Years
Long-term debt obligations . . . $1,256,875 $ 22,500 $ 25,000 $1,209,375 $ —
Interest payments(1) ........ 605,153 136,889 269,646 198,618 —
Operating lease obligations . . . 2,060,539 87,320 173,898 170,259 1,629,062
Spectrum lease obligations .... 1,761,256 39,226 79,168 85,113 1,557,749
Total(2)(3)(4).............. $5,683,823 $285,935 $547,712 $1,663,365 $3,186,811
(1) Our interest payment obligations are calculated for all years using an interest rate of approximately 11% based
on our weighted-average interest rate at December 31, 2007.
(2) Excludes $51.6 million remaining under our commitment to purchase no less than $150.0 million of
infrastructure products and subscriber products from Motorola through August 29, 2008 under the terms of
the commercial agreements that were entered into on August 29, 2006. Please see Note 3 to our Consolidated
Financial Statements for further details.
(3) Excludes obligations of approximately $57.8 million under pending spectrum acquisition agreements at
December 31, 2007.
(4) Excludes $89.8 million of capital and service credit commitments related to certain spectrum lease agreements.
We do not have any obligations that meet the definition of an off-balance-sheet arrangement that have or are
reasonably likely to have a material effect on our financial statements.
Recent Accounting Pronouncements
SFAS No. 141(R) — In December 2007, the Financial Accounting Standards Board (“FASB”) issued
SFAS No. 141 (revised 2007), Business Combinations (“SFAS No. 141(R)”). In SFAS No. 141(R), the FASB
retained the fundamental requirements of SFAS No. 141 to account for all business combinations using the
acquisition method (formerly the purchase method) and for an acquiring entity to be identified in all business
combinations. The new standard requires the acquiring entity in a business combination to recognize all (and only)
the assets acquired and liabilities assumed in the transaction; establishes the acquisition-date fair value as the
measurement objective for all assets acquired and liabilities assumed; requires transaction costs to be expensed as
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