Clearwire 2010 Annual Report Download - page 117

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2010 2009 2008
Year Ended December 31,
Capital expenditures
United States ................................. $2,654,612 $1,533,918 $573,537
International .................................. 10,138 6,112 1,420
$2,664,750 $1,540,030 $574,957
2010 2009
December 31,
Total assets
United States ......................................... $10,921,885 $11,115,815
International .......................................... 118,601 152,038
$11,040,486 $11,267,853
17. Related Party Transactions
We have a number of strategic and commercial relationships with third parties that have had a significant impact on
our business, operations and financial results. These relationships have been with Sprint, the Investors, Eagle River,
Switch & Data, Inc., Dashwire, Inc., Motorola, Inc. and Bell Canada, as well as others discussed below, all of which are
or have been related parties. Some of these relationships include agreements pursuant to which we sell wireless
broadband services to certain of these related parties on a wholesale basis, which such related parties then resell to each of
their respective end user subscribers. We sell these services at terms defined in our contractual agreements.
The following amounts for related party transactions are included in our consolidated financial statements (in
thousands):
2010 2009
December 31,
Accounts receivable ............................................ $22,297 $ 3,221
Accounts payable and accrued expenses ............................. $11,161 $22,521
2010 2009 2008
Year Ended December 31,
Revenue .......................................... $ 50,808 $ 2,230 $ —
Cost of goods and services and network costs (inclusive of
capitalized costs) (COGS)............................ $104,883 $75,283 $118,331
Selling, general and administrative (SG&A) ................ $ 7,150 $10,773 $ 95,840
Total contributions and advances from Sprint ............... $ — $ — $451,925
Rollover Notes — In connection with the issuance of the Senior Secured Notes, on November 24, 2009, we
also issued $252.5 million of notes to Sprint and Comcast with identical terms as the Senior Secured Notes. The
proceeds from the Rollover Notes were used to retire the principal amounts owed to Sprint and Comcast under our
Senior Term Loan Facility. From time to time, other related parties may hold debt under our Senior Secured Notes,
and as debtholders, would be entitled to receive interest payments from us.
Sprint Pre-Closing Financing Amount and Amended Credit Agreement — As a result of the Transactions,
we assumed the liability to reimburse Sprint for the Sprint Pre-Closing Financing Amount. We were required to pay
$213.0 million, plus related interest of $4.5 million, to Sprint in cash on the first business day after the Closing, with
the remainder added as the Sprint Tranche under the Amended Credit Agreement for our senior term loan facility in
112
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)