Clearwire 2008 Annual Report Download - page 81

a
bili
ty to o
b
ta
i
na
ddi
t
i
ona
l
externa
lfi
nanc
i
ng. T
h
ee
ff
ects o
f
t
h
ese c
h
anges cou
ld
a
l
so requ
i
re us to ma
k
e mater
i
a
l
c
han
g
es to our current plans and strate
gy
.
C
as
h
F
l
ow Ana
ly
si
s
T
he followin
g
anal
y
sis includes the results of operations for the Sprint WiMAX Business for the first eleve
n
m
onths of 2008 prior to the closing of the Transactions and the results of operations for Clearwire subsequent to th
e
cl
os
i
ng o
f
t
h
e Transact
i
ons on Novem
b
er 28, 2008. T
h
e 2007 operat
i
ons
d
ata represents t
h
e Spr
i
nt W
i
MA
X
Business’ historical results of o
p
erations.
T
he statement of cash flows includes the activities that were paid by Sprint on behalf of us prior to the closin
g
o
f
t
h
e Transact
i
ons. F
i
nanc
i
n
g
act
i
v
i
t
i
es
i
nc
l
u
d
e
f
un
di
n
g
a
d
vances
f
rom Spr
i
nt t
h
rou
gh
Novem
b
er 28, 2008.
Furt
h
er, t
h
e net cas
h
use
di
n operat
i
n
g
act
i
v
i
t
i
es an
d
t
h
e net cas
h
use
di
n
i
nvest
i
n
g
act
i
v
i
t
i
es
f
or cap
i
ta
l
expen
di
ture
s
and acquisitions of spectrum licenses and patents represent transfers of expenses or assets paid for by other Sprin
t
s
u
b
s
idi
ar
i
es
.
T
he followin
g
table presents a summar
y
of our cash flows and be
g
innin
g
and endin
g
cash balances for th
e
y
ears ended December 31, 2008 and 2007 (in thousands)
:
2
008
2
00
7
Y
ear Ended December 31
,
C
as
h
use
di
n operat
i
ng act
i
v
i
t
i
es
.
.............................
$
(
406,306
)$(
339,519
)
C
as
h
use
di
n
i
nvest
i
ng act
i
v
i
t
i
e
s
.
.............................
(
2,245,830
)(
683,080
)
C
as
h
prov
id
e
db
y
fi
nanc
i
ng act
i
v
i
t
i
es
.
......................... 3
,
8
5
7
,
7
55
1
,
022
,5
9
9
Effect of foreign currency exchange rates on cash and cash
equivalents ............................................
5
24
—
T
ota
l
cas
hfl
o
w
s
..........................................
1
,20
6
,143 —
C
as
h
an
d
cas
h
equ
i
va
l
ents at
b
eg
i
nn
i
ng o
f
per
i
o
d
.
................
——
C
as
h
an
d
cas
h
equ
i
va
l
ents at en
d
o
f
per
i
o
d
.
.....................
$
1,
206
,
143
$
—
O
p
erating Activities
Net cash used in operatin
g
activities was $406.3 million for the
y
ear ended December 31, 2008. The cash use
d
i
n operations is due primaril
y
to pa
y
ments for operatin
g
expenses, as we continue to expand and operate ou
r
business, and interest payments to service debt. This is partially offset by
$
20.2 million in cash received from
c
us
t
omers
.
Net cash used in operating activities was
$
339.5 million for the year ended December 31, 2007.
I
nvest
i
n
g
Act
i
v
i
t
i
es
D
uring the year ended December 31, 2008, net cash used in investing activities was
$
2.2 billion. The net cash
used in investing activities is due primarily to
$
1.8 billion in purchases of available-for-sale securities following the
$
3.2 billion cash investment from the Investors,
$
534.2 million in cash paid for propert
y
, plant and equipment and
$109.3 million in pa
y
ments for acquisition of spectrum licenses and other intan
g
ibles. These uses of cash are
p
artially offset by
$
171.8 million of cash acquired from Old Clearwire as a result of the Transactions
.
D
urin
g
the
y
ear ended December 31, 2007, net cash used in investin
g
activities was
$
683.1 million. The ne
t
c
ash used in investin
g
activities is due to $353.6 million in pa
y
ments for acquisition of spectrum licenses and other
i
ntangibles and
$
329.5 million in cash paid for property, plant and equipment.
F
inancing Activities
Net cash provided by financing activities was
$
3.9 billion for the year ended December 31, 2008. This i
s
p
rimarily due to
$
3.2 billion of cash received from the Investors,
$
532.2 million pre-transaction funding from Sprin
t
and $392.2 million from the Sprint Pre-Closin
g
Financin
g
Amount, up throu
g
h the Closin
g
. These are partiall
y
69