Clearwire 2009 Annual Report Download - page 61

•as
ig
n
ifi
cant c
h
an
g
e
i
nt
h
e
b
us
i
ness c
li
mate t
h
at cou
ld
a
ff
ect t
h
eva
l
ue o
f
t
h
e asset;
• a current period loss combined with pro
j
ections of continuin
g
losses associated with use of the asset;
•as
ig
n
ifi
cant c
h
an
g
e
i
n our
b
us
i
ness or tec
h
no
l
o
gy
strate
gy;
•asi
g
nificant chan
g
e in our mana
g
ement’s views of
g
rowth rates for our business; and
•asi
g
nificant chan
g
e in the anticipated future economic and re
g
ulator
y
conditions and expected techno
-
l
og
i
ca
l
ava
il
a
bili
ty.
We evaluate quarterly, or as needed, whether such events and circumstances have occurred. A significant
amount o
fj
u
dg
ment
i
s
i
nvo
l
ve
di
n
d
eterm
i
n
i
n
g
t
h
e occurrence o
f
an
i
n
di
cator o
fi
mpa
i
rment t
h
at requ
i
res a
n
e
va
l
uat
i
on o
f
t
h
e recovera
bili
t
y
o
f
our
l
on
g
-
li
ve
d
assets. W
h
en suc
h
events or c
i
rcumstances ex
i
st, we wou
ld
determine the recoverabilit
y
of the asset’s carr
y
in
g
value b
y
estimatin
g
the undiscounted future net cash flows (cas
h
i
n
fl
ows
l
ess assoc
i
ate
d
cas
h
out
fl
ows) t
h
at are
di
rect
l
y assoc
i
ate
d
w
i
t
h
an
d
t
h
at are expecte
d
to ar
i
se as a
di
rect resu
l
t
o
f
t
h
e use o
f
t
h
e asset. Recovera
bili
t
y
ana
ly
ses, w
h
en per
f
orme
d
, are
b
ase
d
on
f
orecaste
d
cas
hfl
ows t
h
at cons
id
e
r
our business and technolo
gy
strate
gy
, mana
g
ement’s views of
g
rowth rates for the business, anticipated future
e
conom
i
can
d
regu
l
atory con
di
t
i
ons an
d
expecte
d
tec
h
no
l
og
i
ca
l
ava
il
a
bili
ty. For purposes o
f
recogn
i
t
i
on an
d
m
easurement, we group our
l
ong-
li
ve
d
assets at t
h
e
l
owest
l
eve
lf
or w
hi
c
h
t
h
ere are
id
ent
ifi
a
bl
e cas
hfl
ows t
h
at are
lar
g
el
y
independent of the cash flows of other assets and liabilities and we test for impairment on an a
gg
re
g
ate basi
s
f
or assets
i
nt
h
eUn
i
te
d
States cons
i
stent w
i
t
h
t
h
e management o
f
t
h
e
b
us
i
ness on a nat
i
ona
l
scope.
I
f the total of the expected undiscounted future net cash flows is less than the carrying amount of the asset, a
l
oss,
if
an
y
,
i
s reco
g
n
i
ze
df
or t
h
e
diff
erence
b
etween t
h
e
f
a
i
rva
l
ue o
f
t
h
e asset an
di
ts carr
yi
n
g
va
l
ue. Dur
i
n
g
t
h
e
y
ear
e
nded December 31, 2009, there were no tri
gg
erin
g
events requirin
g
us to perform an impairment test for lon
g
-lived
asse
t
s.
I
na
ddi
t
i
on to t
h
e ana
l
yses
d
escr
ib
e
d
a
b
ove, we per
i
o
di
ca
ll
y assess certa
i
n assets t
h
at
h
ave not yet
b
een
d
ep
l
oye
di
n our networ
k
,
i
nc
l
u
di
ng networ
k
equ
i
pment an
d
ce
ll
s
i
te
d
eve
l
opment costs. T
hi
s assessment
i
nc
l
u
d
es
t
he write-off of network equipment for estimated shrinka
g
e experienced durin
g
the deplo
y
ment process and th
e
w
r
i
te-o
ff
o
f
networ
k
equ
i
pment an
d
ce
ll
s
i
te
d
eve
l
opment costs w
h
enever events or c
h
anges
i
nc
i
rcumstances caus
e
us to conc
l
u
d
et
h
at suc
h
assets are no
l
onger nee
d
e
d
to meet management’s strateg
i
c networ
k
p
l
ans an
d
w
ill
not
be
d
ep
l
o
y
e
d
.
S
h
are-Base
d
Com
p
ensatio
n
We account
f
or our s
h
are-
b
ase
d
compensat
i
on
by
measur
i
n
g
an
d
reco
g
n
i
z
i
n
g
compensat
i
on expense
f
or a
ll
s
hare-based awards made to emplo
y
ees and directors based on estimated fair values. We reco
g
nize compensatio
n
c
osts, net of estimated forfeitures, for those shares expected to vest on a graded vesting schedule over the requisit
e
s
erv
i
ce per
i
o
d
o
f
t
h
e awar
d
,w
hi
c
hi
s
g
enera
lly
t
h
e opt
i
on vest
i
n
g
term o
ff
our
y
ears.
We
i
ssue
i
ncent
i
ve awar
d
s to our emp
l
o
y
ees t
h
rou
gh
stoc
k
-
b
ase
d
compensat
i
on cons
i
st
i
n
g
o
f
stoc
k
opt
i
ons an
d
r
estricted stock units, which we refer to as RSUs. The value of RSUs is determined usin
g
the fair value method,
w
hich in this case, is based on the number of shares
g
ranted and the quoted price of Class A Common Stock on th
e
d
ate o
f
grant. In
d
eterm
i
n
i
ng t
h
e
f
a
i
rva
l
ue o
f
stoc
k
opt
i
ons, we use t
h
eB
l
ac
k
-Sc
h
o
l
es opt
i
on pr
i
c
i
ng mo
d
e
l
,w
hi
c
h
w
e refer to as BSM, to estimate the fair value of stock options which requires complex and
j
ud
g
mental assumption
s
i
ncludin
g
estimated stock price volatilit
y
and emplo
y
ee exercise patterns (expected life of the option). The
c
omputat
i
on o
f
expecte
d
vo
l
at
ili
ty
i
s
b
ase
d
on an average
hi
stor
i
ca
l
vo
l
at
ili
ty
f
rom common s
h
ares o
f
a group o
f
ou
r
p
eers as well as our own volatilit
y
. The expected life of options
g
ranted is based on the simplified calculation o
f
e
xpected life due to lack of option exercise histor
y
.Ifan
y
of the assumptions used in the BSM chan
g
esi
g
nificantl
y,
sh
are-
b
ase
d
compensat
i
on expense may
diff
er mater
i
a
ll
y
f
or
f
uture grants as compare
d
to t
h
e current per
i
o
d.
5
1
CLEARWIRE CORPORATION AND
S
UB
S
IDIARIE
S
MANA
G
EMENT’
S
DI
SCUSS
I
O
N AND ANALY
S
I
SO
F FINAN
C
IAL
CO
NDITI
O
N
A
ND RESULTS OF OPERATIONS —
(
Continued
)