Clearwire 2010 Annual Report Download - page 101

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The following table presents the carrying value and the approximate fair value of our outstanding debt
instruments at December 31, 2010 and 2009 (in thousands):
Carrying
Value Fair Value
Carrying
Value Fair Value
December 31, 2010 December 31, 2009
Notes:
Senior Secured Notes and Rollover
Notes ......................... $2,905,107 $3,180,662 $2,714,731 $2,810,616
Second-Priority Secured Notes ........ $ 500,000 $ 520,833
Exchangeable Notes(1) .............. $ 499,129 $ 746,107
Vendor Financing Notes .............. $ 59,987 $ 60,793
(1) Carrying value as of December 31, 2010 is net of $230.1 million discount arising from the separation of the
Exchange Options from the debt host instrument.
12. Commitments and Contingencies
Future minimum payments under obligations listed below (including all optional expected renewal periods on
operating leases) as of December 31, 2010, are as follows (in thousands):
Total 2011 2012 2013 2014 2015
Thereafter,
including all
renewal periods
Long-term debt obligations . . . . $ 4,236,995 $ 15,062 $ 20,084 $ 20,084 $ 5,021 $2,947,494 $ 1,229,250
Interest payments . . . . . . . . . . . 3,997,363 474,514 476,077 474,895 473,937 473,862 1,624,078
Operating lease obligations(1) . . 13,630,873 391,193 439,971 447,799 454,188 464,482 11,433,240
Spectrum lease obligations . . . . 5,950,009 156,579 163,057 162,037 170,480 165,151 5,132,705
Spectrum service credits . . . . . . 107,682 1,130 1,130 1,130 1,130 1,130 102,032
Capital lease obligations(2) . . . . 126,297 12,450 12,731 13,022 13,996 11,538 62,560
Signed spectrum agreements . . . 9,925 9,925 ———— —
Network equipment purchase
obligations . . . . . . . . . . . . . . 40,222 40,222 ———— —
Other purchase obligations . . . . 188,557 68,043 50,672 29,869 10,984 10,970 18,019
Total . . . . . . . . . . . . . . . . . . . . $28,287,923 $1,169,118 $1,163,722 $1,148,836 $1,129,736 $4,074,627 $19,601,884
(1) Includes executory costs of $36.2 million.
(2) Payments include $54.1 million representing interest.
Spectrum and operating lease obligations — Our commitments for non-cancelable operating leases consist
mainly of leased spectrum license fees, office space, equipment, and leased sites, including towers and rooftop
locations. Certain of the leases provide for minimum lease payments, additional charges and escalation clauses.
Certain of the tower leases specify a minimum number of new leases to commence by December 31, 2011. Charges
apply if these commitments are not satisfied. Leased spectrum agreements have terms of up to 30 years. Operating
leases generally have initial terms of five years with multiple renewal options for additional five-year terms totaling
between 20 and 25 years.
96
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)