Clearwire 2008 Annual Report Download - page 123

sh
are,
h
owever t
h
ey
d
o not
h
ave any r
i
g
h
ts to rece
i
ve
di
str
ib
ut
i
ons ot
h
er t
h
an stoc
kdi
v
id
en
d
spa
id
proport
i
ona
ll
yto
e
ach outstandin
g
Clearwire Class A and Clearwire Class B Common Stockholder or upon liquidation of Clearwire,
an amount equal to the par value per share, which is
$
0.0001 per share
.
Eac
hh
o
ld
er o
f
C
l
earw
i
re C
l
ass B Common Stoc
kh
o
ld
s an equ
i
va
l
ent num
b
er o
f
C
l
earw
i
re Commun
i
cat
i
on
s
Class B Common Interests, which in substance reflects their economic stake in Clearwire. This is accom
p
lished
th
roug
h
an exc
h
ange
f
eature t
h
at prov
id
es t
h
e
h
o
ld
er t
h
er
i
g
h
t, at any t
i
me, to exc
h
ange one s
h
are o
f
C
l
earw
i
r
e
Class B Common Stock
p
lus one Clearwire Communications Class B Common Interest for one share of Clearwire
Cl
ass A
C
ommon
S
toc
k.
C
learwire
C
ommunications Interests
Cl
earw
i
re
i
st
h
eso
l
e
h
o
ld
er o
f
vot
i
ng
i
nterests
i
nC
l
earw
i
re Commun
i
cat
i
ons. As suc
h
,C
l
earw
i
re contro
ls
100% of the decision makin
g
of Clearwire Communications and consolidates 100% of its operations
.
Th
e non-vot
i
n
g
C
l
earw
i
re Commun
i
cat
i
on un
i
ts are
d
es
ig
nate
d
as e
i
t
h
er C
l
earw
i
re Commun
i
cat
i
ons C
l
ass A
Common Interests, w
hi
c
h
are 100%
h
e
ld b
yC
l
earw
i
re, or C
l
earw
i
re Commun
i
cat
i
ons C
l
ass B Common Interests,
which are held b
y
Sprint and the Investors, with the exception of Goo
g
le. Both classes of non-votin
g
Clearwir
e
Commun
i
cat
i
on un
i
ts
p
art
i
c
ip
ate
i
n
di
str
ib
ut
i
ons o
f
C
l
earw
i
re Commun
i
cat
i
ons on an e
q
ua
l
an
dp
ro
p
ort
i
onat
e
basis.
Each holder of Clearwire Communications Class B Common Interests holds an e
q
uivalent number of
C
l
earw
i
re C
l
ass B Common Stoc
k
an
d
w
ill b
e ent
i
t
l
e
d
at any t
i
me to exc
h
ange one s
h
are o
f
C
l
earw
i
re C
l
ass B
Common Stock
p
lus one Clearwire Communications Class B Common Interests for one share of Clearwire Class
A
C
ommon
S
toc
k.
I
t
i
s
i
nten
d
e
d
t
h
at at a
ll
t
i
mes, t
h
e num
b
er o
f
C
l
earw
i
re Commun
i
cat
i
ons C
l
ass A Common Interests
h
e
ld b
y
Clearwire will equal the number of shares of Clearwire Class A Common Stock issued by Clearwire. Similarly, it is
i
nten
d
e
d
t
h
at, at a
ll
t
i
mes, Spr
i
nt an
d
eac
h
Investor, except Goo
gl
e, w
ill h
o
ld
an equa
l
num
b
er o
f
C
l
earw
i
re C
l
ass B
Common Stock and Clearwire Communications Class B Common Interests
.
D
ivi
d
en
d
Po
l
ic
y
We have not declared or paid an
y
dividends on Clearwire Class A or Class B Common Stock since the Closin
g
.
W
e current
ly
expect to reta
i
n
f
uture earn
i
n
g
s,
if
an
y
,
f
or use
i
nt
h
e operat
i
ons an
d
expans
i
on o
f
our
b
us
i
ness. We
do
n
ot anticipate paying any cash dividends in the foreseeable future. In addition, covenants in the indenture governin
g
our sen
i
or secure
d
notes an
d
t
h
e
l
oan
d
ocuments
g
overn
i
n
g
our Sen
i
or Term Loan Fac
ili
t
yi
mpose s
ig
n
ifi
can
t
r
estr
i
ct
i
ons on our a
bili
ty to pay
di
v
id
en
d
s to our stoc
kh
o
ld
ers
.
Non-contro
ll
in
g
Interests in C
l
earwire Communications
C
learwire Communications is consolidated into Clearwire. Therefore
,
the holders of the Clearwire Commu-
ni
cat
i
ons C
l
ass B Common Interests represent non-contro
lli
n
gi
nterests
i
n a conso
lid
ate
d
su
b
s
idi
ar
y
. As a resu
l
t, t
h
e
i
ncome (
l
oss) conso
lid
ate
db
yC
l
earw
i
re w
ill b
e
d
ecrease
di
n proport
i
on to t
h
e outstan
di
ng non-contro
lli
ng
i
nterests. Currentl
y
, at the Clearwire level, non-controllin
g
interests represent approximatel
y
73% of the non
-
e
conom
i
cvot
i
n
gi
nterests.
111
C
LEARWIRE
CO
RP
O
RATI
O
N AND
SU
B
S
IDIARIE
S
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)