Cricket Wireless 2011 Annual Report Download - page 95

Contractual Obligations
The following table sets forth estimated amounts and timing of our minimum contractual payments as of
December 31, 2011 for the next five years and thereafter (in thousands). Future events, including potential
refinancing of our long-term debt, could cause actual payments to differ significantly from these amounts.
2012 2013-2014 2015-2016 Thereafter Total
Long-term debt(1) ......... $ 21,911 $ 250,000 $1,400,000 $1,600,000 $3,271,911
Capital leases(2) ........... 7,058 14,116 10,710 18,597 50,481
Operating leases ........... 261,260 523,131 459,463 477,455 1,721,309
Purchase obligations(3) ..... 308,321 479,187 273,388 — 1,060,896
Contractual interest(4) ...... 251,764 497,393 381,808 470,167 1,601,132
Total .................... $850,314 $1,763,827 $2,525,369 $2,566,219 $7,705,729
(1) Amounts shown for Cricket’s long-term debt include principal only and exclude the effects of discount
accretion on our $1,100 million of 7.75% senior secured notes due 2016 and $1,600 million of 7.75% senior
notes due 2020. Interest on the debt, calculated at the current interest rate, is stated separately.
(2) Amounts shown for Cricket’s capital leases include principal and interest.
(3) Purchase obligations are defined as agreements to purchase goods or services that are enforceable and
legally binding on us and that specify all significant terms including (a) fixed or minimum quantities to be
purchased, (b) fixed, minimum or variable price provisions, and (c) the approximate timing of the
transaction. These amounts exclude purchase orders already reflected in our current liabilities.
(4) Contractual interest is based on the current interest rates in effect at December 31, 2011 for debt outstanding
as of that date.
The table above does not include the following contractual obligations relating to STX Wireless:
(1) Cricket’s obligation to pay to Pocket, if Pocket exercises its right to sell its membership interest in STX
Wireless to Cricket, an amount equal to 24.25% of the product of Leap’s enterprise value-to-revenue multiple for
the four most recently completed fiscal quarters multiplied by the total revenues of STX Wireless and its
subsidiaries over that same period, which amount is estimated to be approximately $90.7 million as of
December 31, 2011; and (2) STX Wireless’ obligation to make quarterly limited-recourse loans to Pocket out of
excess cash in an aggregate principal amount not to exceed $30 million.
The table above does not include the following contractual obligations relating to Savary Island:
(1) Cricket’s obligation to pay to Ring Island, if Ring Island exercises its right to sell its membership interest in
Savary Island, an amount equal to Ring Island’s equity contributions to Savary Island less any optional
distributions made to Ring Island plus $150,000, which amount is estimated to be approximately $5.3 million as
of December 31, 2011; and (2) Cricket’s obligation under the Savary Island Credit Agreement to loan Savary
Island up to $5.0 million to fund its working capital needs.
Recent Accounting Pronouncements
In May 2011, the Financial Accounting Standards Board or FASB issued Accounting Standards Update
No. 2011-04, “Fair Value Measurements (Topic 820): Amendments to Achieve Common Fair Value
Measurement and Disclosure Requirements in U.S. GAAP and IFRSs,” (ASU 2011-04). ASU 2011-04 redefines
many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value
measurements to ensure consistency between U.S. GAAP and IFRS. ASU 2011-04 also expands the disclosures
for fair value measurements that are estimated using significant unobservable (Level 3) inputs. This new
guidance is effective for us beginning in the first quarter of 2012 and is to be applied prospectively. We
anticipate that the adoption of this standard will not significantly expand our consolidated financial statement
footnote disclosures.
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