Clearwire 2007 Annual Report Download - page 89

Download and view the complete annual report

Please find page 89 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

7. Spectrum Licenses, Goodwill, and Other Intangible Assets
Spectrum licenses, goodwill, and other intangible assets as of December 31, 2007 and 2006 consisted of the
following (in thousands):
Weighted
Average Life
Gross
Carrying
Value
Accumulated
Amortization
Net Carrying
Value
Gross
Carrying
Value
Accumulated
Amortization
Net Carrying
Value
December 31, 2007 December 31, 2006
Goodwill ................ Indefinite $ 35,666 $ — $ 35,666 $ 30,908 $ — $ 30,908
Indefinite-lived intangibles:
Spectrum licenses . . ...... Indefinite 397,972 — 397,972 157,260 — 157,260
Trade names and
trademarks ........... Indefinite 120 — 120 34 — 34
Total indefinite-lived
intangibles .......... 398,092 — 398,092 157,294 — 157,294
Definite-lived intangibles:
Existing technology . ...... 5years 3,713 (371) 3,342 — — —
Customer relationships ..... 5years 5,169 (691) 4,478 335 (74) 261
Patents and other . ........ 12years 1,466 (396) 1,070 1,427 (193) 1,234
Spectrum licenses . . ...... 16years 78,125 (5,194) 72,931 65,814 (1,797) 64,017
Noncompete agreements . . . . 3 years 250 (160) 90 250 (76) 174
Total definite-lived
intangibles .......... 88,723 (6,812) 81,911 67,826 (2,140) 65,686
Total spectrum and
intangibles .......... $486,815 $(6,812) $480,003 $225,120 $(2,140) $222,980
The changes in the carrying value of goodwill for the years ended December 31, 2007 and 2006 is as follows
(in thousands):
January 1, 2006 ........................................................ $16,623
Goodwill acquired during the period including effects of foreign
currency translation of $2.9 million ........................................ 23,637
Goodwill related to business dispositions .................................... (9,352)
December 31, 2006 ..................................................... 30,908
Goodwill acquired during the period including effects of foreign
currency translation of $3.6 million ........................................ 4,758
December 31, 2007 ..................................................... $35,666
Based on the identified intangible assets recorded as of December 31, 2007, future amortization of intangible
assets, not including spectrum leases pending FCC approval, is expected to be as follows (in thousands):
2008 ................................................................ $ 5,721
2009 ................................................................ 6,846
2010 ................................................................ 6,757
2011 ................................................................ 6,709
2012 ................................................................ 5,859
Thereafter ............................................................ 50,019
Total ................................................................ $81,911
81
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)