Clearwire 2008 Annual Report Download - page 76

Th
e
i
ncrease was pr
i
mar
il
y
d
ue to t
h
ea
ddi
t
i
ona
ld
eprec
i
at
i
on expense assoc
i
ate
d
w
i
t
h
our cont
i
nue
d
networ
k
b
uild-out and the depreciation of CPE related to associated subscriber
g
rowth. The ma
j
orit
y
of the increase i
n
depreciation and amortization expense relates to the development of our pre-WiMAX network between 2007 an
d
2
008. Deprec
i
at
i
on an
d
amort
i
zat
i
on w
ill i
ncrease as a
ddi
t
i
ona
l
mo
bil
eW
i
MAX mar
k
ets are
l
aunc
h
e
d
an
d
p
l
ace
d
i
nto service durin
g
2009.
Spectrum lease expens
e
(
In thousands, except percenta
g
es) 2008 2007
Dollar
C
han
ge
P
ercenta
ge
C
han
g
e
Ye a
r
E
n
ded
December 31
,
S
p
ectrum
l
ease ex
p
ens
e
......................
$250,184 $190,942 $59,242 31.0%
T
ota
l
spectrum
l
ease expense
i
ncrease
d
as a
di
rect resu
l
to
f
as
i
gn
ifi
cant
i
ncrease
i
nt
h
e num
b
er o
f
spectru
m
leases held b
y
us as well as the acquisition of spectrum leases as part of the Transactions. With the si
g
nifican
t
n
umber of spectrum leases and the increasin
g
cost of these leases, we expect our spectrum lease expense to increase.
A
s we renegot
i
ate t
h
ese
l
eases t
h
ey are rep
l
ace
d
w
i
t
h
new
l
eases, usua
ll
yata
hi
g
h
er
l
ease cost per mont
h
,
b
ut w
i
t
h
l
on
g
er terms. Man
y
o
f
t
h
e
l
eases acqu
i
re
d
as part o
f
t
h
e Transact
i
ons were entere
di
nto
b
e
f
ore 2007 an
d
t
h
e per
i
o
dic
p
a
y
ments before Januar
y
1, 2007 were funded b
y
Sprint. Spectrum expense for these contracts was $21 million an
d
$
35 million in 2005 and 2006, respectively
.
I
nterest income
(
In thousands, except percentages
)
2008 200
7
D
o
ll
ar
Chang
e
P
ercentag
e
Change
Year Ende
d
December
31
,
I
nterest income .............................
$
18,569
$
65,736
$(
47,167
)(
71.8
)
%
T
he decrease was primaril
y
due to the reduction in interest rates earned on investments, as well as lower
p
r
i
nc
i
pa
lb
a
l
ances o
f
s
h
ort-term an
dl
ong-term
i
nvestments
h
e
ld d
ur
i
ng t
h
e year en
d
e
d
Decem
b
er 31, 200
8
c
ompare
d
to 2007.
Other-than-temporary impairment loss and realized loss on investment
s
(
In thousands, except percentages
)
2008 2007
Dolla
r
C
hang
e
P
ercentag
e
C
hange
Yea
r
E
n
ded
December 31
,
O
t
h
er-t
h
an-temporary
i
mpa
i
rment
l
oss an
d
rea
li
ze
d
l
oss on
i
n
v
estments
.......................
$(
78,447
)$(
35,020
)$(
43,427
)
124.0
%
T
he increase in the other-than-temporary impairment loss and realized loss on investment securities is due to
an
i
ncrease
i
nt
h
e
d
ec
li
ne
i
nva
l
ue o
fi
nvestment secur
i
t
i
es
f
or t
h
e
y
ear en
d
e
d
Decem
b
er 31, 2008, w
hi
c
h
w
e
determined to be other than temporar
y
. At December 31, 2008, we held available-for-sale short-term and lon
g
-term
i
nvestments with a fair value and cost of $1.9 billion. Durin
g
the
y
ear ended December 31, 2008, we incurred other
-
t
han-temporary impairment losses of
$
78.4 million related to a decline in the estimated fair values of our investmen
t
s
ecurities
.
Non-controlling interests in net loss of consolidated subsidiaries
(
In thousands, except percenta
g
es) 2008 200
7
D
olla
r
Chan
g
e
Percenta
ge
Chan
g
e
Y
ea
rEn
ded
D
ecember
31,
Non-controllin
g
interests in net loss of
co
n
so
li
dated subs
i
d
i
a
ri
es
..................
$
867,608 $663,098 $204,510 30.8%
Th
e non-contro
lli
n
gi
nterests
i
n net
l
oss o
f
conso
lid
ate
d
su
b
s
idi
ar
i
es represent t
h
ea
ll
ocat
i
on o
f
a port
i
on o
f
t
h
e
n
et
l
oss to t
h
e non-contro
lli
n
gi
nterests
i
n conso
lid
ate
d
su
b
s
idi
ar
i
es
b
ase
d
on t
h
eC
l
earw
i
re Commun
i
cat
i
on
s
Class B Common Interests’ ownershi
p
in Clearwire Communications
.
64