Cricket Wireless 2011 Annual Report Download - page 142

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LEAP WIRELESS INTERNATIONAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
In the event Sprint is involved in a change-of-control transaction, the agreement would bind Sprint’s
successor-in-interest.
Capital and Operating Leases
The Company has entered into non-cancelable operating lease agreements to lease its administrative and
retail facilities, and sites for towers, equipment and antennae required for the operation of its wireless network.
These leases typically include renewal options and escalation clauses, some of which escalation clauses are based
on the consumer price index. In general, site leases have five- to ten-year initial terms with four five-year renewal
options.
The following table summarizes the approximate future minimum rentals under non-cancelable operating
leases, including renewals that are reasonably assured, and future minimum capital lease payments in effect at
December 31, 2011 (in thousands):
Years Ended December 31:
Capital
Leases
Operating
Leases
2012 ......................................................... $ 7,058 $ 261,260
2013 ......................................................... 7,058 261,793
2014 ......................................................... 7,058 261,338
2015 ......................................................... 6,113 253,047
2016 ......................................................... 4,597 206,416
Thereafter .................................................... 18,597 477,455
Total minimum lease payments ................................... $50,481 $1,721,309
Less amounts representing interest ................................. (15,658)
Present value of minimum lease payments ........................... $34,823
Note 15. Guarantor Financial Information
The $3,000 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 $1,600 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 (STX Wireless, Savary Island, Cricket Music and their
respective subsidiaries) and total consolidated Leap and subsidiaries as of December 31, 2011 and
December 31, 2010 and for the years ended December 31, 2011, 2010 and 2009 are presented below. The equity
method of accounting is used to account for ownership interests in subsidiaries, where applicable.
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