Clearwire 2008 Annual Report Download - page 99

o
f
t
h
e
l
ease,
i
nc
l
u
di
ng t
h
e expecte
d
renewa
l
per
i
o
d
s as appropr
i
ate. For
l
eases conta
i
n
i
ng tenant
i
mprovemen
t
a
ll
owances an
d
rent
i
ncent
i
ves, we recor
dd
e
f
erre
d
rent, w
hi
c
hi
sa
li
a
bili
ty, an
d
t
h
at
d
e
f
erre
d
rent
i
s amort
i
ze
d
over
t
he term of the lease, includin
g
the expected renewal periods as appropriate, as a reduction to rent expense.
F
oreign
C
urrenc
y
— Our
i
nternat
i
ona
l
su
b
s
idi
ar
i
es
g
enera
lly
use t
h
e
i
r
l
oca
l
currenc
y
as t
h
e
i
r
f
unct
i
ona
l
c
urrenc
y
. Assets and liabilities are translated at exchan
g
e rates in effect at the balance sheet date. Resultin
g
translation adjustments are recorded within accumulated other comprehensive income (loss). Income and expense
accounts are trans
l
ate
d
at t
h
e average mont
hl
yexc
h
ange rates. T
h
ee
ff
ects o
f
c
h
anges
i
nexc
h
ange rates
b
etween t
h
e
desi
g
nated functional currenc
y
and the currenc
y
in which a transaction is denominated are recorded as forei
g
n
c
urrency transact
i
on ga
i
ns (
l
osses) an
d
recor
d
e
di
nt
h
e conso
lid
ate
d
statement o
f
operat
i
ons.
C
oncentration of Ris
k
—We
b
e
li
eve t
h
at t
h
e
g
eo
g
rap
hi
c
di
vers
i
t
y
o
f
our customer
b
ase an
d
reta
il
nature o
f
our
product minimizes the risk of incurring material losses due to concentrations of credit risk
.
R
ecent Accounting Pronouncement
s
SFAS No.
141(
R
)
—
In December 2007, the FASB issued SFAS No. 141 (revised 2007)
,
Business
C
ombi-
nat
i
ons
,
w
hi
c
h
we re
f
er to as SFAS No. 141
(
R
)
. In SFAS No. 141
(
R
)
,t
h
e FASB reta
i
ne
d
t
h
e
f
un
d
amenta
l
requ
i
rements o
f
SFAS No. 141 to account
f
or a
ll b
us
i
ness com
bi
nat
i
ons us
i
n
g
t
h
e acqu
i
s
i
t
i
on met
h
o
d
(
f
ormer
ly
t
h
e
purc
h
ase met
h
o
d
)an
df
or an acqu
i
r
i
n
g
ent
i
t
y
to
b
e
id
ent
ifi
e
di
na
ll b
us
i
ness com
bi
nat
i
ons. T
h
e new stan
d
ar
d
requires the acquiring entity in a business combination to recognize all (and only) the assets acquired and liabilities
assume
di
nt
h
e Transact
i
ons; esta
bli
s
h
es t
h
e acqu
i
s
i
t
i
on-
d
ate
f
a
i
rva
l
ue as t
h
e measurement o
bj
ect
i
ve
f
or a
ll
assets
ac
q
u
i
re
d
an
dli
a
bili
t
i
es assume
d
;re
q
u
i
res transact
i
on costs to
b
eex
p
ense
d
as
i
ncurre
d
;an
d
re
q
u
i
res t
h
eac
q
u
i
rer to
d
isclose to investors and other users all of the information the
y
need to evaluate and understand the nature an
d
fi
nanc
i
a
l
e
ff
ect o
f
t
h
e
b
us
i
ness com
bi
nat
i
on. SFAS No. 141(R)
i
se
ff
ect
i
ve
f
or annua
l
per
i
o
d
s
b
eg
i
nn
i
ng on or a
f
te
r
D
ecember 1
5
, 2008. Accordin
g
l
y
,an
y
business combinations we en
g
a
g
e in will be recorded and disclose
d
followin
g
existin
gg
enerall
y
accepted accountin
g
principles, which we refer to as GAAP, until Januar
y
1, 2009. W
e
e
xpect SFAS No. 141(R) w
ill h
ave an
i
mpact on our
fi
nanc
i
a
l
pos
i
t
i
on an
d
resu
l
ts o
f
operat
i
ons w
h
en e
ff
ect
i
ve,
b
u
t
the nature and ma
g
nitude of the specific effects will depend upon the nature, terms and size of the acquisitions we
c
onsummate after the effective date.
SFAS No. 1
6
0
—
In December 2007
,
the FASB issued SFAS No. 1
6
0
,
Noncontro
ll
ing Interests in Conso
l
i
d
ate
d
F
inancial
S
tatement
s
,
which we refer to as SFAS No. 160. SFAS No. 160 amends Accountin
g
Researc
h
B
ulletin No. 51
,
C
onso
l
i
d
ate
d
Financia
l
Statements,an
d
requ
i
res a
ll
ent
i
t
i
es to report non-contro
lli
ng (m
i
nor
i
ty
)
i
nterests
i
nsu
b
s
idi
ar
i
es w
i
t
hi
n equ
i
ty
i
nt
h
e conso
lid
ate
dfi
nanc
i
a
l
statements,
b
ut separate
f
rom t
h
e paren
t
shareholders’ equit
y
. SFAS No. 160 also requires an
y
acquisitions or dispositions of non-controllin
g
interests that
d
o not result in a change of control to be accounted for as equity transactions. Further, SFAS No. 160 requires that a
parent recognize a gain or loss in net income when a subsidiary is deconsolidated. SFAS No. 1
6
0 is effective for
a
nnual periods be
g
innin
g
on or after December 1
5
, 2008. We will adopt SFAS No. 160 on Januar
y
1, 2009 as w
e
h
ave significant non-controlling interests. In our statements of operations as currently presented, we subtract losse
s
a
ttributable to non-controlling interests before arriving at net loss. SFAS No. 160 will require us to include amounts
a
ttr
ib
uta
bl
eto
b
ot
h
our
i
nterests an
d
our non-contro
lli
n
gi
nterests w
i
t
hi
n net
l
oss an
d
to present our non-contro
lli
n
g
i
nterests as a component of stockholders’ equity.
S
FA
S
No. 1
61
— In March 2008, the FASB issued SFAS No. 1
6
1
,
Disclosures about Deri
v
ati
v
e Instruments
a
nd Hed
g
in
g
Activities,
w
hich we refer to as SFAS No. 161. SFAS No. 161 is intended to im
p
rove financia
l
report
i
ng a
b
out
d
er
i
vat
i
ve
i
nstruments an
dh
e
d
g
i
ng act
i
v
i
t
i
es
b
y requ
i
r
i
ng en
h
ance
ddi
sc
l
osures to ena
bl
e
i
nvestor
s
to
b
etter un
d
erstan
d
t
h
e
i
re
ff
ects on an ent
i
t
y
’s
fi
nanc
i
a
l
pos
i
t
i
on,
fi
nanc
i
a
l
per
f
ormance, an
d
cas
hfl
ows. It
is
e
ffective for financial statements issued for fiscal
y
ears and interim periods be
g
innin
g
after November 1
5
, 2008. W
e
d
o not expect the adoption of SFAS No. 161 will have a material effect on our financial statement disclosures.
87
C
LEARWIRE CORPORATION AND
S
UB
S
IDIARIE
S
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(
Continued
)