Clearwire 2008 Annual Report Download - page 110

t
oan
di
nc
l
u
di
ng t
h
e
d
ate o
f
t
h
e Transact
i
ons. We recor
d
e
dd
e
f
erre
d
tax assets re
l
ate
d
to t
h
e pre-c
l
os
i
ng net operat
i
ng
l
oss an
d
tax cre
di
t carry
f
orwar
d
san
d
recor
d
e
d
ava
l
uat
i
on a
ll
owance aga
i
nst our
d
e
f
erre
d
tax assets, net o
f
certa
i
n
s
chedulable deferred tax liabilities. The net deferred tax liabilities re
p
orted in these financial statements
p
rior to the
C
l
os
i
ng are re
l
ate
d
to FCC
li
censes recor
d
e
d
as
i
n
d
e
fi
n
i
te-
li
ve
d
spectrum
i
ntang
ibl
es, w
hi
c
h
are not amort
i
ze
df
or
b
oo
k
purposes. T
h
ec
h
ange to t
h
e
d
e
f
erre
d
tax pos
i
t
i
on as a resu
l
to
f
t
h
eC
l
os
i
ng was re
fl
ecte
d
as part o
f
t
he
accountin
g
for the acquisition of Old Clearwire and was recorded in equit
y
. The net operatin
g
loss and tax credit
c
arryforwards associated with the Sprint WiMAX Business prior to the Closing were not transferred to either
C
l
earw
i
re Commun
i
cat
i
ons or C
l
earw
i
re,
b
ut
i
nstea
d
were reta
i
ne
dby
Spr
i
nt.
Th
e
i
ncome tax prov
i
s
i
on cons
i
sts o
f
t
h
e
f
o
ll
ow
i
ng
f
or t
h
e years en
d
e
d
Decem
b
er 31, 2008 an
d
2007 (
in
t
housands)
:
2008 200
7
Y
ear Ended
D
ecember
31,
C
urrent taxes
:
I
n
te
rn
at
i
o
n
a
l.................................................. $ 325 $
—
F
ede
r
a
l
......................................................
——
S
tate........................................................
——
T
ota
l
current taxes............................................
3
2
5—
D
e
f
erre
d
taxes
:
I
n
te
rn
at
i
o
n
a
l..................................................
(
87
)
—
Fede
r
a
l
......................................................
5
1,686 13,74
5
S
tate
........................................................
9,
6
83 2,
6
17
T
ota
ld
e
f
erre
d
taxes
...........................................
6
1
,
282 1
6,
3
6
2
I
ncome tax provisio
n
.
.........................................
$
61
,
607
$
16
,
36
2
Th
e Spr
i
nt W
i
MAX Bus
i
ness
i
ncurre
d
s
ig
n
ifi
cant
d
e
f
erre
d
tax
li
a
bili
t
i
es re
l
ate
d
to t
h
e
i
n
d
e
fi
n
i
te-
li
ve
d
s
pectrum licenses. Since certain of these spectrum licenses acquired were recorded as indefinite-lived intangible
assets for book purposes, they are not subject to amortization and therefore we could not estimate the amount of
f
uture per
i
o
d
reversa
l
s,
if
an
y
,o
f
t
h
e
d
e
f
erre
d
tax
li
a
bili
t
i
es re
l
ate
d
to t
h
ose spectrum
li
censes. As a resu
l
t, t
he
valuation allowance was increased accordin
g
l
y
and we continued to amortize acquired spectrum licenses for federa
l
i
ncome tax
p
ur
p
oses. This difference between book and tax amortization resulted in a deferred income tax
p
rovisio
n
p
r
i
or to t
h
eC
l
os
i
n
g
.
98
C
LEARWIRE
CO
RP
O
RATI
O
N AND
SU
B
S
IDIARIE
S
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(
Continued
)