Clearwire 2010 Annual Report Download - page 127

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timely basis. We identified a material weakness in internal control over financial reporting related to control
deficiencies in our procedures for recording and monitoring the movement of network infrastructure equipment.
Throughout 2010, we implemented certain process improvements and internal controls designed to strengthen
the control environment and remediate the material weakness. In the fourth quarter of 2010, we had made sufficient
improvements to remediate the material weakness described above. In particular:
• We have performed periodic physical counts of network infrastructure equipment and reconciled such
physical counts to the amounts recorded in our accounting records.
• We have added resources within various functions, including sourcing, procurement, fulfillment, logistics
and capital asset accounting, and clarified roles and responsibilities to enable improved tracking and
recording of network infrastructure equipment.
• We have deployed resources to validate transaction information to independent source information,
reconcile the information to accounting records, and resolve exceptions.
• We have implemented processes to improve the tracking of network equipment in our distribution centers
and local market warehouses.
During the fourth quarter of 2010, management performed an evaluation of the effectiveness of the afore-
mentioned internal controls, and concluded that the control enhancements described above sufficiently remediate
the material weakness identified in the tracking and recording of our network infrastructure equipment and that the
remaining deficiencies do not rise to the level of a material weakness. We are in the process of implementing an
integrated materials resource planning and warehouse management system, which we expect will automate existing
manual processes and consolidating warehouse locations to further strengthen the internal controls and transaction
integrity in our supply chain.
ITEM 9B. Other Information
None.
PART III
ITEM 10. Directors, Executive Officers and Corporate Governance
The information required by Item 10 will be included in our 2011 Proxy Statement for the Annual Meeting of
Stockholders, which we refer to as the Proxy Statement, under the headings “Proposal 1 — Election of Directors,”
“Corporate Governance — Compensation of Board of Directors”, “Corporate Governance — Executive Officers
and Key Employees,” and “Corporate Governance — Section 16(a) Beneficial Ownership Reporting Compliance”
and is incorporated herein by reference. The Proxy Statement will be filed with the SEC pursuant to Regulation 14A
within 120 days of the end of our 2010 fiscal year.
ITEM 11. Executive Compensation
The information required by Item 11 will be included in the Proxy Statement under the headings “Corporate
Governance — Compensation of the Board of Directors,” “Compensation of Executive Officers — Compensation
Discussion and Analysis,” and “Report of the Compensation Committee on Executive Compensation,” and is
incorporated herein by reference.
ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters
The information required by Item 12 will be included in the Proxy Statement under the headings “Equity
Compensation Plan Information” and “Beneficial Ownership of Common Stock”, and is incorporated herein by
reference.
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