Clearwire 2009 Annual Report Download - page 71

Th
e
i
ncrease
i
n 2009 compare
d
to 2008
i
s cons
i
stent w
i
t
h
t
h
ea
ddi
t
i
ona
l
resources,
h
ea
d
count an
d
s
h
are
d
s
ervices that we have utilized as we continue to build and launch our 4G networks in additional markets, especiall
y
t
he higher sales and marketing and customer care expenses in support of the launch of new markets. Employe
e
h
ea
d
count
i
ncrease
d
at Decem
b
er 31, 2009 to approx
i
mate
l
y 3,440 emp
l
oyees compare
d
to approx
i
mate
ly
1
,63
5
emplo
y
ees at December 31, 2008
.
Th
e
i
ncrease
i
n 2008 compare
d
to 2007
i
s
d
ue to a
ddi
t
i
ona
l
costs re
l
ate
d
to t
h
e
l
aunc
h
o
f
our 4G networ
k
s,
w
hich was offset b
y
reductions in emplo
y
ee headcount and related expenses. Our emplo
y
ee headcount was
approximatel
y
1,63
5
at December 31, 2008 (actual) compared to approximatel
y
2,
5
10 emplo
y
ees at December 31
,
2
007 (pro
f
orma)
.
O
ur focus in 2010 will be on develo
p
ment and ex
p
ansion of our wireless 4G network. We ex
p
ect that cost
p
e
r
gross a
ddi
t
i
on w
ill
rema
i
n sta
bl
e
i
n 2010 compare
d
to 2009 as new mar
k
ets are
l
aunc
h
e
d
, cons
i
stent w
i
t
h
our pas
t
operat
i
n
g
exper
i
ences.
De
p
reciation an
d
Amortizatio
n
(
In thousands, except percentages
)
2009 2008 2007
P
ercentage
Change 2009
Versus 2008
P
ercentag
e
C
hange 2008
Versus 2007
Yea
r
E
n
ded
D
ecember 31
,
D
eprec
i
at
i
on an
d
amort
i
zat
i
o
n
.
...
.
$
208
,
263
$
128
,
602
$
80
,
766 61.9% 59.2
%
Depreciation and amortization expense primaril
y
represents the depreciation recorded on PP&E and amor
-
t
i
zat
i
on o
fi
ntang
ibl
e assets an
dd
e
fi
n
i
te-
li
ve
d
owne
d
spectrum. T
h
e
i
ncrease
i
n 2009 compare
d
to 2008
i
spr
i
mar
ily
a resu
l
to
f
new networ
k
assets p
l
ace
di
nto serv
i
ce to support our
l
aunc
h
es an
d
cont
i
nue
d
networ
k
expans
i
on.
T
he increase in 2008 compared to 2007 was primaril
y
due to the additional depreciation expense associate
d
w
i
t
h
our cont
i
nue
d
networ
kb
u
ild
-out an
d
t
h
e
d
eprec
i
at
i
on o
f
CPE re
l
ate
d
to assoc
i
ate
d
su
b
scr
ib
er growt
h
.T
he
m
a
j
orit
y
of the increase in depreciation and amortization expense relates to the development of our pre-4
G
n
etworks between 2007 and 2008
.
We expect
d
eprec
i
at
i
on an
d
amort
i
zat
i
on w
ill
cont
i
nue to
i
ncrease as a
ddi
t
i
ona
l
4G mar
k
ets are
l
aunc
h
e
d
an
d
p
laced into service durin
g
2010
.
S
p
ectrum Lease Ex
p
ense
(
In thousands, except percenta
g
es) 2009 2008 200
7
P
ercentage
C
han
g
e 2009
V
ersus
2008
P
ercentag
e
C
han
g
e 2008
V
ersus
200
7
Yea
r
E
n
ded
December 31
,
S
p
ectrum
l
ease ex
p
ens
e
........
$
259,359 $250,184 $190,942 3.7% 31.0
%
T
ota
l
spectrum
l
ease expense
i
ncrease
di
n 2009 compare
d
to 2008 an
d
2007 as a
di
rect resu
l
to
f
as
i
gn
ifi
cant
i
ncrease
i
nt
h
e num
b
er o
f
spectrum
l
eases
h
e
ld by
us. W
i
t
h
t
h
es
ig
n
ifi
cant num
b
er o
f
new spectrum
l
eases an
d
t
h
e
i
ncreasin
g
cost of these leases, we expect our spectrum lease expense to increase. As we rene
g
otiate these leases,
t
hey are replaced with new leases, usually at a higher lease cost per month, but with longer terms.
I
nterest Income
(
In thousands, except percentages
)
2009 2008 200
7
P
ercentage
C
han
g
e 2009
V
ersus
2008
P
ercentag
e
C
han
g
e 2008
V
ersus
200
7
Year Ende
d
December
31,
I
n
te
r
est
in
co
m
e
..................
$9,691 $18,569 $65,736 (47.8)% (71.8)%
Th
e cont
i
nu
i
n
gd
ecrease
i
n
i
nterest
i
ncome w
h
en compar
i
n
g
2009, 2008 an
d
2007 was pr
i
mar
ily d
ue to t
he
r
e
d
uct
i
on
i
n
i
nterest rates earne
d
on
i
nvestments, as we
ll
as
l
ower pr
i
nc
i
pa
lb
a
l
ances o
f
s
h
ort-term an
dl
on
g
-ter
m
i
nvestments held during the years ended December 31, 2009, 2008 and 2007.
6
1