Clearwire 2010 Annual Report Download - page 100

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The following table presents the change in Level 3 financial assets and liabilities measured on a recurring basis
for the year ended December 31, 2010 (in thousands):
January 1,
2010
Acquisitions,
Issuances and
Settlements
Net Unrealized
Gains (Losses)
Included in
Earnings
Net Unrealized
Gains (Losses)
Included in
Accumulated
Other
Comprehensive
Income
December 31,
2010
Net Unrealized
Gains (Losses)
Included in 2010
Earnings Relating
to Instruments Held
at December 31,
2010
Long-term investments:
Other debt securities . . . . $13,171 $ — $ — $2,080 $ 15,251 $ —
Other assets:
Derivatives . . . . . . . . . . . — 648 (356)
(1)
— 292 (356)
Other current liabilities:
Derivatives . . . . . . . . . . . — (231,503) 63,611
(1)
— (167,892) 63,611
(1) Included in Gain (loss) on derivative instruments in the consolidated statements of operations.
The following table presents the change in Level 3 financial assets and liabilities measured on a recurring basis
for the year ended December 31, 2009 (in thousands):
January 1,
2009
Acquisitions,
Issuances and
Settlements
Net Unrealized
Gains (Losses)
Included in
Earnings
Net Unrealized
Gains (Losses)
Included in
Accumulated
Other
Comprehensive
Income
December 31,
2009
Net Unrealized
Gains (Losses)
Included in 2009
Earnings Relating
to Instruments Held
at December 31,
2009
Long-term investments:
Other debt securities . . . . $ 18,974 $ — $(10,015)
(1)
$4,212 $13,171 $(10,015)
Other current liabilities:
Derivatives . . . . . . . . . . . (21,591) 14,652 6,939
(2)
—— —
(1) Included in Other income (expense), net in the consolidated statements of operations.
(2) Included in Gain (loss) on derivative instruments in the consolidated statements of operations.
During the year ended December 31, 2010, we recognized losses of $10.8 million on nonrecurring fair value
measurements, which were categorized as Level 3 measurements, on certain assets held and used by international
subsidiaries. We no longer hold these assets at December 31, 2010.
The following is the description of the fair value for financial instruments we hold that are not subject to fair
value recognition.
Debt Instruments
To estimate the fair value of the Senior Secured Notes and Rollover Notes, the Second-Priority Secured Notes
and the Exchangeable Notes, we used the average indicative price from several market makers.
To estimate the fair value of the Vendor Financing Notes, we used an income approach based on the contractual
terms of the notes and market-based parameters such as interest rates. A level of subjectivity and judgment was used
to estimate an appropriate discount rate to calculate the present value of the estimated cashflows.
95
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)