Cricket Wireless 2011 Annual Report Download - page 126

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LEAP WIRELESS INTERNATIONAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following table provides a summary of the changes in value of the Company’s redeemable
non-controlling interests (in thousands):
Year Ended December 31,
2011 2010
Beginning balance, January 1 ..................................... $104,788 $ 71,632
Purchases of membership units of non-controlling interests ............ — (123,163)
Non-controlling interest contributions ............................. — 43,902
Accretion of redeemable non-controlling interests, before tax .......... (7,844) 108,030
Other ...................................................... (1,034) 4,387
Ending balance, December 31 ..................................... $ 95,910 $ 104,788
Note 8. Unrestricted Subsidiaries
In July 2011, the Company’s board of directors designated Cricket Music Holdco, LLC, a wholly-owned
subsidiary of Cricket (“Cricket Music”), and Cricket Music’s wholly-owned subsidiary Cricket Music
Operations, LLC (“Music Operations”) as “Unrestricted Subsidiaries” under the indentures governing Cricket’s
senior notes. Music Operations holds certain hardware, software and intellectual property relating to Cricket’s
Muve Music®business. The financial position and results of operations of Cricket Music and Music Operations
are included in the Company’s consolidated financial statements included in this report. Together with STX
Wireless and Savary Island, Cricket Music and Music Operations are presented as “Non-Guarantors” within the
Company’s condensed consolidating financial statements included in Note 15.
As required by the indentures governing Cricket’s senior notes, the Company is presenting the aggregate
carrying amount and classification of the components of the financial position and results of operations of
Cricket Music and Music Operations as of and for the year ended December 31, 2011 in the following tables
separately (in thousands):
December 31,
2011
Assets
Cash and cash equivalents ............................................... $ 1
Property and equipment, net .............................................. 9,435
Total Assets ............................................................ $9,436
Liabilities and Stockholders’ Equity
Stockholders’ Equity ................................................... $9,436
Total Liabilities and Stockholders’ Equity ..................................... $9,436
Year Ended
December 31,
2011
Revenues ............................................................. $ —
Operating expenses
Depreciation and amortization ............................................ 2,225
Other ................................................................ 1
Total operating expenses .................................................. 2,226
Operating loss ........................................................... (2,226)
Net loss ................................................................ $(2,226)
116