Clearwire 2008 Annual Report Download - page 93

• Accounts paya
bl
e, w
hi
c
h
were processe
d
centra
ll
y
b
y Spr
i
nt an
d
were passe
d
to us t
h
roug
hi
ntercompan
y
accounts t
h
at were
i
nc
l
u
d
e
di
n
b
us
i
ness equ
i
ty; an
d
• Certa
i
n accrue
dli
a
bili
t
i
es, w
hi
c
h
were passe
d
t
h
rou
gh
to us t
h
rou
gh i
ntercompan
y
accounts t
h
at were
i
ncluded in business equity.
O
ur statement of cash flows prior to November 28, 2008 presents the activities that were paid b
y
Sprint on our
b
e
h
a
lf
.F
i
nanc
i
ng act
i
v
i
t
i
es
i
nc
l
u
d
e
f
un
di
ng a
d
vances
f
rom Spr
i
nt, presente
d
as
b
us
i
ness equ
i
ty, s
i
nce Spr
i
nt
m
ana
g
e
d
our
fi
nanc
i
n
g
act
i
v
i
t
i
es on a centra
li
ze
db
as
i
s. 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
ene
t
c
ash used in investin
g
activities for capital expenditures and acquisitions of FCC licenses and patents represent
t
rans
f
ers o
f
expenses or assets pa
id f
or
b
yot
h
er Spr
i
nt su
b
s
idi
ar
i
es. No cas
h
payments were ma
d
e
b
yus
f
or
i
ncom
e
t
axes or
i
nterest pr
i
or to Novem
b
er 28, 2008.
We w
ill b
e
f
ocuse
d
on expe
di
t
i
n
g
t
h
e
d
ep
l
o
y
ment o
f
t
h
e
fi
rst nat
i
onw
id
emo
bil
eW
i
MAX networ
k
to prov
id
e
a
t
rue mobile broadband experience for consumers, small businesses, medium and lar
g
e enterprises, public safet
y
organizations and educational institutions. We expect to deploy the mobile WiMAX technology, based on the IEEE
802.16e-2005 standard, in our planned markets usin
g
2.5 GHz FCC licenses.
2.
S
ummary of
S
i
g
nificant Accountin
g
Policies
Th
e accompany
i
ng
fi
nanc
i
a
l
statements
h
ave
b
een prepare
di
n accor
d
ance w
i
t
h
account
i
ng pr
i
nc
i
p
l
es
g
enera
lly
accepte
di
nt
h
eUn
i
te
d
States o
f
Amer
i
ca an
d
pursuant to t
h
eru
l
es an
d
re
g
u
l
at
i
ons o
f
t
h
e Secur
i
t
i
e
s
and Exchange Commission, which we refer to as the SEC. The following is a summary of our significant accounting
p
olicies
:
P
rincip
l
es of Conso
l
i
d
atio
n
—
T
h
e conso
lid
ate
dfi
nanc
i
a
l
statements
i
nc
l
u
d
ea
ll
o
f
t
h
e assets
,li
a
bili
t
i
es an
d
r
esu
l
ts o
f
operat
i
ons o
f
our w
h
o
ll
y-owne
d
su
b
s
idi
ar
i
es, ma
j
or
i
ty-owne
d
an
d
contro
ll
e
d
su
b
s
idi
ar
i
es, an
d
ou
r
c
ontrolled subsidiaries. Investments in entities that we do not control, but for which we have the abilit
y
to exercise
si
gn
ifi
cant
i
n
fl
uence over operat
i
ng an
dfi
nanc
i
a
l
po
li
c
i
es, are accounte
df
or un
d
er t
h
e equ
i
ty met
h
o
d
.A
ll
i
ntercompany transact
i
ons are e
li
m
i
nate
di
n conso
lid
at
i
on.
Rec
l
assifications — Certa
i
n rec
l
ass
ifi
cat
i
ons
h
ave
b
een ma
d
etopr
i
or per
i
o
d
amounts to con
f
orm w
i
t
h
t
he
c
urrent
p
er
i
o
dp
resentat
i
on.
U
se o
f
Estimates — Our accountin
g
policies require mana
g
ement to make complex and sub
j
ective
j
ud
g
ments
.
By
their nature, these
j
ud
g
ments are sub
j
ect to an inherent de
g
ree of uncertaint
y
. These
j
ud
g
ments are based on our
hi
stor
i
ca
l
exper
i
ence, terms o
f
ex
i
st
i
ng contracts, o
b
servance o
f
tren
d
s
i
nt
h
e
i
n
d
ustry,
i
n
f
ormat
i
on prov
id
e
db
you
r
c
ustomers and information available from other outside sources, as appropriate. Additionall
y
, chan
g
es in account
-
i
ng est
i
mates are reasona
bl
y
lik
e
l
y to occur
f
rom per
i
o
d
to per
i
o
d
.T
h
ese
f
actors cou
ld h
ave a mater
i
a
li
mpact on ou
r
fi
nanc
i
a
l
statements, t
h
e presentat
i
on o
f
our
fi
nanc
i
a
l
con
di
t
i
on, c
h
anges
i
n
fi
nanc
i
a
l
con
di
t
i
on or resu
l
ts o
f
o
p
erations
.
S
ig
n
ifi
cant est
i
mates
i
n
h
erent
i
nt
h
e preparat
i
on o
f
t
h
e accompan
yi
n
gfi
nanc
i
a
l
statements
i
nc
l
u
d
et
h
e
application of purchase accounting, including the valuation of acquired assets and liabilities, the valuation of
i
nvestments an
d
ot
h
er-t
h
an-temporary
i
mpa
i
rment o
fi
nvestments, t
h
e amort
i
zat
i
on per
i
o
d
o
f
spectrum
l
eases,
i
n
d
e
fi
n
i
te
li
ve
di
ntan
gibl
e asset
i
mpa
i
rment ana
ly
ses, a
ll
owance
f
or
d
ou
b
t
f
u
l
accounts,
d
eprec
i
at
i
on an
d
t
h
e use
f
u
l
lives for propert
y
, plant and equipment, tax valuation allowances and equit
yg
ranted to third parties and emplo
y
ees
.
C
ash and Cash E
q
uivalent
s
— Cash and cash equivalents consist of mone
y
market mutual funds and hi
g
hl
y
li
qu
id
s
h
ort-term
i
nvestments w
i
t
h
or
i
g
i
na
l
matur
i
t
i
es o
f
t
h
ree mont
h
sor
l
ess. Cas
h
an
d
cas
h
equ
i
va
l
ents exc
l
u
de
c
as
h
t
h
at
i
s contractua
lly
restr
i
cte
df
or operat
i
ona
l
purposes. We ma
i
nta
i
n cas
h
an
d
cas
h
equ
i
va
l
ent
b
a
l
ances w
i
t
h
financial institutions that exceed federall
y
insured limits. We have not experienced an
y
losses related to these
balances, and management believes the credit risk related to these balances to be minimal.
81
C
LEARWIRE CORPORATION AND
S
UB
S
IDIARIE
S
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(
Continued
)