Cricket Wireless 2010 Annual Report Download - page 139

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restricted cash collateralizing the letters of credit outstanding is reported in both restricted cash, cash equivalents
and short-term investments and other long-term assets in the consolidated balance sheets.
As of December 31, 2010 and 2009, the Company had approximately $5.0 million and $5.5 million,
respectively, of surety bonds outstanding to guarantee the Company’s performance with respect to certain of its
contractual obligations.
Note 15. Guarantor Financial Information
The $2,600 million of senior notes issued by Cricket (the “Issuing Subsidiary”) are comprised of $300 million
of unsecured senior notes due 2015, $1,100 million of senior secured notes due 2016 and $1,200 million of
unsecured senior notes due 2020. The notes are jointly and severally guaranteed on a full and unconditional basis by
Leap (the “Guarantor Parent Company”) and Cricket License Company, LLC, a wholly-owned subsidiary of
Cricket (the “Guarantor Subsidiary”).
The indentures governing these notes limit, among other things, the Guarantor Parent Company’s, Cricket’s
and the Guarantor Subsidiary’s ability to: incur additional debt; create liens or other encumbrances; place
limitations on distributions from restricted subsidiaries; pay dividends; make investments; prepay subordinated
indebtedness or make other restricted payments; issue or sell capital stock of restricted subsidiaries; issue
guarantees; sell assets; enter into transactions with affiliates; and make acquisitions or merge or consolidate
with another entity.
Condensed consolidating financial information of the Guarantor Parent Company, the Issuing Subsidiary, the
Guarantor Subsidiary, non-Guarantor Subsidiaries and total consolidated Leap and subsidiaries as of December 31,
2010 and 2009 and for the years ended December 31, 2010, 2009 and 2008 is presented below. The equity method of
accounting is used to account for ownership interests in subsidiaries, where applicable.
133
LEAP WIRELESS INTERNATIONAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)