Clearwire 2010 Annual Report Download - page 95

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addition, Old Clearwire acquired United States and foreign entities which operated prior to 2003. Most of the
acquired entities generated losses for income tax purposes and certain tax returns remain open to examination by
United States and foreign tax authorities for tax years as far back as 1998.
As of December 31, 2010, we had United States federal tax net operating loss carryforwards of approximately
$2.19 billion. A portion of the net operating loss carryforward is subject to certain annual limitations imposed under
Section 382 of the Internal Revenue Code of 1986. The net operating loss carryforwards begin to expire in 2021. We
had $327.2 million of tax net operating loss carryforwards in foreign jurisdictions; $166.8 million have no statutory
expiration date, $160.3 million begins to expire in 2015, and the remainder of $97,000 begins to expire in 2011.
Our policy is to recognize any interest related to unrecognized tax benefits in interest expense or interest
income. We recognize penalties as additional income tax expense. As December 31, 2010, we had no material
uncertain tax positions and therefore accrued no interest or penalties related to uncertain tax positions.
9. Long-term Debt, Net
Long-term debt at December 31, 2010 and 2009 consisted of the following (in thousands):
Interest
Rates
Effective
Rate(1) Maturities
Par
Amount
Net
Discount
Carrying
Value
2010
Notes:
Senior Secured Notes and
Rollover Notes ........... 12.00% 12.92% 2015 $2,947,494 $ (42,387) $2,905,107
Second-Priority Secured
Notes .................. 12.00% 12.39% 2017 500,000 — 500,000
Exchangeable Notes ......... 8.25% 16.65% 2040 729,250 (230,121) 499,129
Vendor Financing Notes .......
LIBOR
based
(2)
6.16% 2014 60,251 (264) 59,987
Capital lease obligations ....... 72,160 — 72,160
Total debt, net.............. $4,309,155 $(272,772) 4,036,383
Less: Current portion of Vendor
Financing Notes and capital
lease obligations(3) ......... (19,364)
Total long-term debt, net ...... $4,017,019
(1) Represents weighted average effective interest rate based on year-end balances.
(2) Coupon rate based on 3-month LIBOR plus a spread of 5.50%.
(3) Included in Other current liabilities on the consolidated balance sheet.
Interest
Rates
Effective
Rate(1) Maturities
Par
Amount
Net
Discount
Carrying
Value
2009
Notes:
Senior Secured Notes and
Rollover Notes ............. 12.00% 13.02% 2015 $2,772,494 $(57,763) $2,714,731
Total long-term debt, net ........ $2,714,731
(1) Represents weighted average effective interest rate based on year-end balances.
90
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)