Clearwire 2008 Annual Report Download - page 107

I
nterest cap
i
ta
li
ze
d
was as
f
o
ll
ows (
i
nt
h
ousan
d
s)
:
2008 2007
Y
ear Ende
d
D
ecember
31,
$4,469 $
—
D
epreciation and amortization expense related to propert
y
, plant and equipment was as follows (in thousands)
:
2008 2007
Yea
r
E
n
ded
D
ecember 31
,
$54,811 $3,936
As of January 1, 2007, Sprint transferred to us approximately
$
1.7 million of property, plant and equipmen
t
w
ith a
g
ross asset value of approximatel
y
$2.4 million and an accumulated depreciation balance of approximatel
y
$667,000 to be used in our next
g
eneration of wireless broadband services.
6.
Sp
ectrum License
s
O
wne
d
an
dl
ease
d
spectrum
li
censes as o
f
Decem
b
er 31, 2008 an
d
2007 cons
i
ste
d
o
f
t
h
e
f
o
ll
ow
i
ng (
i
n
th
ousan
d
s)
:
Wtd
A
v
g
L
ease Life
G
ross Carryin
g
V
alu
e
A
ccumulated
A
mortizatio
n
Net Carryin
g
Value
G
ross Carryin
g
Value
A
ccumulate
d
A
mortizatio
n
Net Carryin
g
V
alu
e
December
31
,
2008
December
31
,
2007
In
d
e
fi
n
i
te-
li
ve
d
owne
d
s
pectrum . .
.
...........
I
ndefinite $3
,
035
,
473 $ — $3
,
035
,
473 $2
,
418
,
246 $— $2
,
418
,
24
6
De
fi
n
i
te-
liv
e
d
o
w
ne
d
sp
ec
t
rum . . .
.
..........
1
7-
20
y
ears
112
,
303 (9
7
4) 111
,
329
——
—
Spectrum
l
eases an
d
prepa
id
sp
ectrum . . .
...........
2
7
y
ears 1,270,0
5
8(
5
,039) 1,26
5
,019 180,863 — 180,863
Pendin
g
spectrum and transition
costs
.
...............
6
0,041 — 60,041 43,481 — 43,481
T
otal s
p
ectrum licenses . . . . $4,477,875 $(6,013) $4,471,862 $2,642,590 $— $2,642,590
I
n
d
efinite an
d
Definite-
l
ive
d
Owne
d
Spectrum Licenses — Spectrum
li
censes, w
hi
c
h
are
i
ssue
d
on
b
ot
h
as
i
te-
s
pecific and a wide-area basis, authorize wireless carriers to use radio frequenc
y
spectrum to provide service t
o
c
ertain
g
eo
g
raphical areas in the United States and internationall
y
. These licenses are
g
enerall
y
acquired as an asse
t
p
urc
h
ase or t
h
roug
h
a
b
us
i
ness com
bi
nat
i
on. In some cases, we acqu
i
re
li
censes
di
rect
l
y
f
rom t
h
e governmenta
l
aut
h
or
i
t
yi
nt
h
e app
li
ca
bl
e countr
y
.T
h
ese
li
censes are cons
id
ere
di
n
d
e
fi
n
i
te-
li
ve
di
ntan
gibl
e assets, except
f
or t
h
e
licenses acquired in Poland, Spain, German
y
and Romania, which are considered definite-lived intan
g
ible asset
s
due to limited license renewal history in these countries.
Sp
ectrum Leases and Pre
p
aid S
p
ectrum — We also lease s
p
ectrum from third
p
arties who hold the s
p
ectru
m
li
censes. T
h
ese
l
eases are accounte
df
or as executory contracts, w
hi
c
h
are treate
d lik
e operat
i
ng
l
eases
i
n
accor
d
ance w
i
t
h
SFAS No. 13. Up
f
ront cons
id
erat
i
on pa
id
to t
hi
r
d
-party
h
o
ld
ers o
f
t
h
ese
l
ease
dli
censes at t
he
i
nception of a lease a
g
reement is capitalized as prepaid spectrum lease costs and is expensed over the term of the
l
ease agreement,
i
nc
l
u
di
ng expecte
d
renewa
l
terms, as app
li
ca
bl
e. As part o
f
t
h
ec
l
os
i
ng o
f
t
h
e Transact
i
ons, we
assume
d
spectrum
l
eases
f
rom O
ld
C
l
earw
i
re t
h
at
h
ave rema
i
n
i
ng use
f
u
lli
ves
d
epen
d
ent on t
h
e terms o
f
t
h
e
l
ease
.
T
hese terms, some of which include expected renewal periods, have a wei
g
hted avera
g
e remainin
g
useful life o
f
twenty-seven years. As part o
f
t
h
e purc
h
ase account
i
ng
f
or t
h
e Transact
i
ons,
f
avora
bl
e spectrum
l
eases o
f
$
1.0 billion were recorded at the Closing of the Transactions. The favorable component of the acquired spectru
m
l
eases
h
as
b
een ca
pi
ta
li
ze
d
as an asset an
di
s amort
i
ze
d
over t
h
e
l
ease term
.
95
C
LEARWIRE
CO
RP
O
RATI
O
N AND
SU
B
S
IDIARIE
S
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(
Continued
)