Clearwire 2010 Annual Report Download - page 89

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4. Property, Plant and Equipment
Property, plant and equipment as of December 31, 2010 and 2009 consisted of the following (in thousands):
Useful
Lives (Years) 2010 2009
December 31,
Network and base station equipment ............ 5-15 $3,160,790 $ 901,814
Customer premise equipment.................. 2 147,959 60,108
Furniture, fixtures and equipment .............. 3-7 433,858 216,598
Lesser of useful
Leasehold improvements ..................... life or lease term 49,712 18,128
Construction in progress ..................... N/A 1,299,244 1,623,703
5,091,563 2,820,351
Less: accumulated depreciation and amortization . . . (627,029) (223,831)
$4,464,534 $2,596,520
2010 2009 2008
Year Ended December 31,
Supplemental information (in thousands):
Capitalized interest .................................. $208,595 $140,168 $ 4,469
Depreciation expense ................................. $435,236 $170,131 $54,811
We have entered into lease arrangements related to our network construction and equipment that meet the
criteria for capital leases. At December 31, 2010, we have recorded capital lease assets with an original cost of
$73.0 million within network and base station equipment.
Construction in progress is primarily composed of costs incurred during the process of completing network
projects. The balance at December 31, 2010 also includes $289.8 million of network and base station equipment not
yet assigned to a project, $56.6 million of CPE that we intend to lease and $97.9 million of costs related to
information technology, which we refer to as IT, and other corporate projects.
We periodically assess certain assets that have not yet been deployed in our networks, including equipment and
cell site development costs. This assessment includes the provision for identified differences between recorded
amounts and the results of physical counts and the write-off of network equipment and cell site development costs
whenever events or changes in circumstances cause us to conclude that such assets are no longer needed to meet
management’s strategic network plans and will not be deployed. With the substantial completion of our prior build
plans and due to the uncertainty of the extent and timing of future expansion of our networks, we reviewed all
network projects in process. Any projects that no longer fit within management’s strategic network plans were
abandoned and the related costs written down.
84
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)