Clearwire 2008 Annual Report Download - page 65

I
m
p
airments o
f
Long-lived Assets
We review our long-lived assets to be held and used, including property, plant and equipment and intangibl
e
assets w
i
t
hd
e
fi
n
i
te use
f
u
lli
ves,
f
or recovera
bili
t
y
w
h
enever an event or c
h
an
g
e
i
nc
i
rcumstances
i
n
di
cates t
h
at t
h
e
c
arr
yi
n
g
amount o
f
suc
hl
on
g
-
li
ve
d
asset or
g
roup o
fl
on
g
-
li
ve
d
assets ma
y
not
b
e recovera
bl
e. Suc
h
c
i
rcumstances
i
nclude, but are not limited to the following:
•as
i
gn
ifi
cant
d
ecrease
i
nt
h
e mar
k
et pr
i
ce o
f
t
h
e asset
;
• a significant change in the extent or manner in which the asset is being used
;
•as
i
gn
ifi
cant c
h
ange
i
nt
h
e
b
us
i
ness c
li
mate t
h
at cou
ld
a
ff
ect t
h
eva
l
ue o
f
t
h
e asset;
• a current period loss combined with projections of continuing losses associated with use of the asset;
•as
i
gn
ifi
cant c
h
ange
i
n our
b
us
i
ness or tec
h
no
l
ogy strategy, suc
h
as a sw
i
tc
h
to mo
bil
eW
i
MAX w
i
re
l
es
s
broadband network
;
•as
i
gn
ifi
cant c
h
ange
i
n our management’s v
i
ews o
f
growt
h
rates
f
or our
b
us
i
ness; an
d
•asi
g
nificant chan
g
e in the anticipated future economic and re
g
ulator
y
conditions and expected techno
-
lo
g
ical availabilit
y
.
We eva
l
uate quarter
ly
,orasnee
d
e
d
,w
h
et
h
er suc
h
events an
d
c
i
rcumstances
h
ave occurre
d
.W
h
en suc
h
events
or circumstances exist, we would determine the recoverability of the asset’s carrying value by estimating th
e
undiscounted future net cash flows (cash inflows less associated cash outflows) that are directly associated with an
d
th
at are expecte
d
to ar
i
se as a
di
rect resu
l
to
f
t
h
e use o
f
t
h
e asset. For purposes o
f
reco
g
n
i
t
i
on an
d
measurement, w
e
g
roup our lon
g
-lived assets at the lowest level for which there are identifiable cash flows that are lar
g
el
y
i
nde
p
endent of the cash flows of other assets and liabilities.
I
f the total of the expected undiscounted future net cash flows is less than the carr
y
in
g
amount of the asset, a
loss, if an
y
, is reco
g
nized for the difference between the fair value of the asset and its carr
y
in
g
value. As of
D
ecember 31, 2008, our stock price was
$
4.93 compared to our stock price on the date of the Transactions of
$
6.62.
T
hi
s mar
k
et
d
ec
li
ne
i
s
d
eeme
d
to
b
eatr
igg
er
i
n
g
event un
d
er SFAS No. 144, Accounting for t
h
e Impairment o
r
Disposa
l
of Long-Live
d
Assets
,
requ
i
r
i
n
g
us to per
f
orm an
i
mpa
i
rment test. We con
d
ucte
d
t
h
e recovera
bili
t
y
test an
d
c
oncluded there was no im
p
airment.
I
mpairments of Intangible Assets with Indefinite Useful Lives
We assess t
h
e
i
mpa
i
rment o
fi
ntang
ibl
e assets w
i
t
hi
n
d
e
fi
n
i
te use
f
u
lli
ves at
l
east annua
ll
y, or w
h
enever an
e
vent or c
h
an
g
e
i
nc
i
rcumstances
i
n
di
cates t
h
at t
h
e carr
yi
n
g
va
l
ue o
f
suc
h
asset or
g
roup o
f
assets ma
y
not
b
e
r
ecoverable. Factors we consider important, an
y
of which could tri
gg
er an impairment review, include
:
•s
i
gn
ifi
cant un
d
erper
f
ormance re
l
at
i
ve to expecte
dhi
stor
i
ca
l
or pro
j
ecte
df
uture operat
i
ng resu
l
ts;
•si
g
nificant chan
g
es in our use of the acquired assets or the strate
gy
for our overall business; an
d
•s
i
gn
ifi
cant negat
i
ve
i
n
d
ustry or econom
i
c tren
d
s.
We account for our intan
g
ible assets that have indefinite lives in accordance with the provisions of
S
FAS No. 142
,
G
oo
d
wi
ll
an
d
Ot
h
er Intan
g
i
bl
e Asset
s
,w
hi
c
h
we re
f
er to as SFAS No. 142. T
h
e
i
mpa
i
rment test
f
or
i
ntang
ibl
e assets w
i
t
hi
n
d
e
fi
n
i
te use
f
u
lli
ves cons
i
sts o
f
a compar
i
son o
f
t
h
e
f
a
i
rva
l
ue o
f
an
i
ntang
ibl
e asset w
i
t
h
i
ts carr
y
in
g
amount. If the carr
y
in
g
amount of an intan
g
ible asset exceeds its fair value, an impairment loss will be
r
ecognized in an amount equal to that excess. The fair value is determined by estimating the discounted future cas
h
fl
ows t
h
at are
di
rect
l
y assoc
i
ate
d
w
i
t
h
,an
d
t
h
at are expecte
d
to ar
i
se as a
di
rect resu
l
to
f
t
h
e use an
d
eventua
l
di
spos
i
t
i
on o
f
,t
h
e asset. In accor
d
ance w
i
t
h
SFAS No. 142,
i
ntan
gibl
e assets w
i
t
hi
n
d
e
fi
n
i
te use
f
u
lli
ves are assesse
d
53
C
LEARWIRE
CO
RP
O
RATI
O
N AND
SU
B
S
IDIARIE
S
MANA
G
EMENT’
S
DI
SCUSS
I
O
N AND ANALY
S
I
SO
F FINAN
C
IAL
CO
NDITI
O
N
A
ND RESULTS OF OPERATIONS —
(
Continued
)