Clearwire 2009 Annual Report Download - page 115

N
otes Receiva
bl
e
Notes receivable with a carr
y
in
g
value of $5.4 million and a fair value of $1.7 million were outstandin
g
at
D
ecember 31, 2009. Notes receivable with a carrying value of
$
4.8 million and a fair value of
$
1.2 million wer
e
outstan
di
n
g
at Decem
b
er 31, 2008. T
h
e notes rece
i
va
bl
e are not pu
bli
c
ly
tra
d
e
d
.T
h
e
f
a
i
rva
l
ue o
f
t
h
ese notes
is
e
stimated based on the fair value of the underl
y
in
g
collateral
.
Deb
tIn
s
trum
e
nt
s
Senior Secured Notes and Rollover Notes with a carrying value of
$
2.71 billion and an approximate fair value
of
$
2.81 billion were outstanding at December 31, 2009. To estimate fair value of these notes we used the averag
e
i
ndicative
p
rice from several market makers.
A Senior Term Loan Facilit
y
with a carr
y
in
g
value and an approximate fair value of
$
1.36 billion was
outstan
di
n
g
at Decem
b
er 31, 2008. T
h
e Sen
i
or Term Loan Fac
ili
t
y
was not pu
bli
c
ly
tra
d
e
d
. To est
i
mate
f
a
i
rva
l
ue o
f
t
he Senior Term Loan Facilit
y
, we used an income approach whereb
y
we estimated contractual cash flows an
d
di
scounte
d
t
h
e cas
hfl
ows at a r
i
s
k
-a
dj
uste
d
rate. T
h
e
i
nputs
i
nc
l
u
d
e
d
t
h
e contractua
l
terms o
f
t
h
e Sen
i
or Term Loan
Fac
ili
t
y
an
d
mar
k
et-
b
ase
d
parameters suc
h
as
i
nterest rate
f
orwar
d
curves. A
l
eve
l
o
f
su
bj
ect
i
v
i
t
y
an
dj
u
dg
ment was
used to estimate credit spread. The Senior Term Loan Facilit
y
was retired in the fourth quarter of 2009.
13. Commitments and Contingencies
Future m
i
n
i
mum payments un
d
er o
bli
gat
i
ons
li
ste
db
e
l
ow (
i
nc
l
u
di
ng a
ll
opt
i
ona
l
expecte
d
renewa
l
per
i
o
d
son
operat
i
ng
l
eases) as o
f
Decem
b
er 31, 2009, are as
f
o
ll
ows (
i
nt
h
ousan
d
s):
T
o
t
a
l 2010 2011 2012 201
3
201
4
Thereafter
,
including all
r
enewal
p
er
i
ods
Long-term
d
e
b
t
o
bli
g
ations . . . . . . . . $ 2,772,494 $ — $ — $ — $ — $ — $ 2,772,49
4
Interest payments . . . . . 1,997,139 333,
6
44 332,
6
99 332,
6
99 332,
6
99 332,
6
99 332,
6
99
Operating leas
e
o
bli
g
ations . . . . . . . . 6,496,660 214,717 219,522 221,757 223,383 223,385 5,393,89
6
Spectrum
l
eas
e
o
bligations . . . . . . . .
5
,164,616 127,749 13
5
,073 140,806 140,369 149,860 4,470,7
59
S
p
ectrum servic
e
c
redits . . . . . . . . . . . 95
,
672 986 986 986 986 987 90
,
74
1
S
i
gne
d
spectrum
ag
reements . . . . . . . . 29,983 29,983 — — — —
—
Network e
q
ui
p
men
t
p
urc
h
ase
o
bli
g
ations . . . . . . . . 422,744 422,744 — — — —
—
Other
p
urchase
o
bligations . . . . . . . . 162,474 96,030 30,938 22,040 13,0
5
4 412
—
Total . . . . . . . . . . . . . . $17
,
141
,
782 $1
,
225
,
853 $719
,
218 $718
,
288 $710
,
491 $707
,
343 $13
,
060
,
589
Sp
ectrum an
d
o
p
erating
l
ease o
bl
igation
s
— Our commitments for non-cancelable operating leases consist
m
a
i
n
ly
o
fl
ease
d
spectrum
li
cense
f
ees, o
ffi
ce space, equ
i
pment, an
dl
ease
d
s
i
tes,
i
nc
l
u
di
n
g
towers an
d
roo
f
top
l
ocat
i
ons. Certa
i
no
f
t
h
e
l
eases prov
id
e
f
or m
i
n
i
mum
l
ease pa
y
ments, a
ddi
t
i
ona
l
c
h
ar
g
es an
d
esca
l
at
i
on c
l
auses.
Certain of the tower leases specify a minimum number of new leases to commence by December 31, 2011. Charge
s
app
ly if
t
h
ese comm
i
tments are not sat
i
s
fi
e
d
. Lease
d
spectrum a
g
reements
h
ave terms o
f
up to 30
y
ears. Operat
i
n
g
l
eases
g
enera
lly h
ave
i
n
i
t
i
a
l
terms o
ffi
ve
y
ears w
i
t
h
mu
l
t
i
p
l
e renewa
l
opt
i
ons
f
or a
ddi
t
i
ona
lfi
ve-
y
ear terms tota
li
n
g
between 20 and 2
5y
ears.
1
05
CLEARWIRE CORPORATION AND
S
UB
S
IDIARIE
S
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(
Continued
)