Clearwire 2008 Annual Report Download - page 117

Future m
i
n
i
mum payments un
d
er o
bli
gat
i
ons
li
ste
db
e
l
ow (
i
nc
l
u
di
ng a
ll
opt
i
ona
l
expecte
d
renewa
l
per
i
o
d
son
operat
i
ng
l
eases) as o
f
Decem
b
er 31, 2008, are as
f
o
ll
ows (
i
nt
h
ousan
d
s):
T
o
t
a
l 2009 2010 2011 2012 201
3
Thereafter
,
i
nclud
i
ng al
l
renewal
p
eriod
s
Lon
g
-term
d
e
b
t
o
bligations . . . . . . . . .
$
1,490,838
$
14,292
$
14,292
$
1,462,254
$
—
$
—
$
—
Interest pa
y
ments . . . . . . 401,665 125,007 153,662 122,996 — — —
Operat
i
n
gl
eas
e
o
bligations . . . . . . . . . 2,868,823 119,390 119,287 119,070 119,3
5
0 118,
5
12 2,273,21
4
S
p
ectrum leas
e
o
bli
g
ations . . . . . . . . . 5,020,998 149,833 119,593 129,283 134,469 133,924 4,353,89
6
Spectrum serv
i
c
e
c
redits . . . . . . . . . . . . 96,4
5
2 986 986 986 986 986 91,
5
22
Si
g
ned spectrum
ag
reements . . . . . . . . .
4
7,
800 4
7,
800
———— —
Sprint WiMA
X
i
nventor
y
. . . . . . . . . . 52,100 52,100 — — — — —
Motorola a
g
reement . . . . 10,69
5
10,69
5
———— —
Other purchase
o
bli
g
ations . . . . . . . . . 334,775 134,776 151,267 16,244 16,244 16,244 —
Total . . . . . . . . . . . . . . .
$
10,324,146
$
654,879
$
559,087
$
1,850,833
$
271,049
$
269,666
$
6,718,63
2
Sp
ectrum an
d
o
p
erating
l
ease ex
p
ens
e
— Expense recorded related to leased spectrum, excluding amorti
-
zation of spectrum leases of
$
17.1 million in 2008, was
$
72.9 million and
$
60.1 million for the
y
ears ended
D
ecember 31, 2008 and 2007, respectivel
y
. Rent expense recorded related to operatin
g
leases was $51.3 million and
$
2.0 million for the years ended December 31, 2008 and 2007, respectively
.
O
ther spectrum commitments — We acqu
i
re
d
comm
i
tments
f
rom O
ld
C
l
earw
i
re to prov
id
eC
l
earw
i
re
s
ervices to the lessors in launched markets, and reimbursement of capital equipment and third-part
y
servic
e
e
xpenditures of the lessors over the term of the lease. We accrue a monthl
y
obli
g
ation for the services an
d
e
qu
i
pment
b
ase
d
on t
h
e tota
l
est
i
mate
d
ava
il
a
bl
e serv
i
ce cre
di
ts
di
v
id
e
db
yt
h
e term o
f
t
h
e
l
ease. T
h
eo
bli
gat
i
on
is
reduced as actual invoices are presented and paid to the lessors. Subsequent to the Closin
g
, we satisfied $76,00
0
related to these commitments. The maximum remainin
g
commitment at December 31, 2008 is $96.5 million and i
s
e
xpected to be incurred over the term of the related lease agreements, which generally range from 15-30 years
.
As of December 31, 2008, we have si
g
ned a
g
reements to acquire approximatel
y
$47.8 million in new
s
pectrum, sub
j
ect to closin
g
conditions. These transactions are expected to be completed within the next twelv
e
m
ont
h
s.
W
iMAX e
q
ui
p
ment
p
urc
h
ase commitment —Un
d
er t
h
e terms o
f
t
h
e Transact
i
ons, we are requ
i
re
d
t
o
p
urchase from S
p
rint certain WiMAX e
q
ui
p
ment not contributed as
p
art of the Transactions. We are re
q
uired t
o
purchase the WiMAX equipment for
$
52.1 million, which represents Sprint’s cost to acquire that equipment. Th
e
purc
h
ases
f
rom Spr
i
nt must
b
ema
d
ew
i
t
hi
n twe
l
ve mont
h
so
f
t
h
eC
l
os
i
ng
.
Motorola agreement
s
— As a result of the Transactions, we assumed commercial a
g
reements with Motorola
where we are commited to purchase certain infrastructure and supply inventory from Motorola. Certain of our
s
u
b
s
idi
ar
i
es are a
l
so comm
i
te
d
to purc
h
ase certa
i
n types o
f
networ
ki
n
f
rastructure pro
d
ucts, mo
d
ems an
d
PC car
d
s
we provide to our subscribers exclusivel
y
from Motorola throu
g
hAu
g
ust 2011 and, thereafter, 51% until the term o
f
the agreement is completed on August 29, 2014, as long as certain conditions are satisfied. For the period followin
g
the Closing, we paid Motorola
$
2.4 million under these agreements. The remaining commitment was
$
10.7 millio
n
a
t Decem
b
er 31
,
2008
.
1
05
C
LEARWIRE
CO
RP
O
RATI
O
N AND
SU
B
S
IDIARIE
S
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)