Clearwire 2010 Annual Report Download - page 78

CLEARWIRE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
2010 2009 2008
Year Ended December 31,
(In thousands)
Cash flows from operating activities:
Net loss ........................................................ $(2,303,094) $(1,253,846) $ (592,347)
Adjustments to reconcile net loss to net cash used in operating activities:
Deferred income taxes . . . ......................................... (1,192) 712 61,607
Losses from equity investees, net . .................................... 1,971 1,202 174
Non-cash (gain)/loss on derivative instruments . . .......................... (63,255) (6,939) 6,072
Other-than-temporary impairment loss on investments . . ..................... — 10,015 17,036
Accretion of discount on debt . . . .................................... 6,113 66,375 1,667
Depreciation and amortization . . . .................................... 466,112 208,263 58,146
Amortization of spectrum leases . .................................... 57,433 57,898 17,109
Non-cash rent expense . . . ......................................... 200,901 108,953 —
Share-based compensation ......................................... 47,535 27,512 6,465
Loss on settlement of pre-existing lease arrangements . . ..................... — — 80,573
Loss on property, plant and equipment . . ............................... 349,512 60,874 —
Gain on extinguishment of debt . . .................................... — (8,252) —
Changes in assets and liabilities, net of effects of acquisition:
Inventory . ................................................... (4,808) (9,450) (892)
Accounts receivable ............................................. (20,104) (2,381) 402
Prepaids and other assets . ......................................... (74,600) (64,930) 6,354
Prepaid spectrum licenses. ......................................... (3,294) (23,861) (63,138)
Accounts payable and other liabilities . . . ............................... 172,057 355,371 (5,534)
Net cash used in operating activities . . ............................... (1,168,713) (472,484) (406,306)
Cash flows from investing activities:
Capital expenditures . .............................................. (2,656,503) (1,450,238) (534,196)
Payments for spectrum licenses and other intangible assets . ..................... (15,428) (46,816) (109,257)
Purchases of available-for-sale investments . ............................... (2,098,705) (3,571,154) (1,774,324)
Disposition of available-for-sale investments ............................... 3,776,805 3,280,455 —
Net cash acquired in acquisition of Old Clearwire . .......................... — — 171,780
Other investing .................................................. (19,387) 4,754 167
Net cash used in investing activities . . ............................... (1,013,218) (1,782,999) (2,245,830)
Cash flows from financing activities:
Principal payments on long-term debt ................................... (876) (1,171,775) (3,573)
Proceeds from issuance of long-term debt . . ............................... 1,413,319 2,467,830 —
Debt financing fees . .............................................. (53,285) (44,217) (50,000)
Equity investment by strategic investors . . . ............................... 54,828 1,481,813 3,200,037
Proceeds from issuance of common stock . . ............................... 304,015 12,196 —
Net advances from Sprint Nextel Corporation .............................. — — 532,165
Sprint Nextel Corporation pre-closing financing . . . .......................... — — 392,196
Repayment of Sprint Nextel Corporation pre-closing financing . . . ................ — — (213,000)
Other financing .................................................. — — (70)
Net cash provided by financing activities .............................. 1,718,001 2,745,847 3,857,755
Effect of foreign currency exchange rates on cash and cash equivalents ............... (525) 1,510 524
Net (decrease) increase in cash and cash equivalents . .......................... (464,455) 491,874 1,206,143
Cash and cash equivalents:
Beginning of period . .............................................. 1,698,017 1,206,143 —
End of period ................................................... $1,233,562 $ 1,698,017 $ 1,206,143
Supplemental cash flow disclosures:
Cash paid for interest including capitalized interest paid . . ..................... $ 336,314 $ 119,277 $ 7,432
Swap interest paid, net ............................................. $ — $ 13,915 $ —
Non-cash investing activities:
Fixed asset purchases in accounts payable and accrued expenses . . ................ $ 120,025 $ 89,792 $ 40,761
Fixed asset purchases financed by long-term debt . . .......................... $ 133,288 $ — $ —
Spectrum purchases in accounts payable . . . ............................... $ — $ — $ 10,560
Common stock of Sprint Nextel Corporation issued for spectrum licenses . ........... $ — $ — $ 4,000
Non-cash financing activities:
Conversion of Old Clearwire Class A shares into New Clearwire Class A shares . ...... $ — $ — $ 894,433
Vendor financing obligations ......................................... $ (60,251) $ — $ —
Capital lease obligations . . . ......................................... $ (73,037) $ — $ —
See notes to consolidated financial statements
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