Cricket Wireless 2012 Annual Report Download - page 113

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LEAP WIRELESS INTERNATIONAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Available-for-sale securities were comprised as follows as of December 31, 2012 and December 31, 2011
(in thousands):
As of December 31, 2012
Cost Fair Value
Money market funds ............................................. $126,617 $126,617
Commercial paper ............................................... 82,345 82,346
U.S. government or government agency securities ...................... 135,848 135,861
$344,810 $344,824
As of December 31, 2011
Cost Fair Value
Money market funds ............................................. $224,383 $224,383
Commercial paper ............................................... 165,201 165,202
U.S. government or government agency securities ...................... 293,626 293,610
$683,210 $683,195
Long-Term Debt
The Company reports its long-term debt obligations at amortized cost; however, for disclosure purposes, the
Company is required to measure the fair value of outstanding debt on a recurring basis. The fair value of the
Company’s outstanding long-term debt is determined primarily by using quoted prices in active markets and was
$3,421.5 million and $3,073.6 million as of December 31, 2012 and 2011, respectively. The Company’s debt was
considered to be a Level 1 item for disclosure purposes.
Assets Measured at Fair Value on a Nonrecurring Basis
As of December 31, 2012, non-financial assets with carrying value of $13.6 million accumulated in
construction-in-progress had been reduced to a fair value of zero, resulting in an impairment charge of $13.6
million. There were no other non-financial assets that were measured and recorded at fair value on a non-
recurring basis. As of December 31, 2011, non-financial assets that were measured and recorded at fair value on
a nonrecurring basis consisted of non-operating wireless licenses in the amount of $9.1 million, the carrying
value of which had been reduced to fair value during the year ended December 31, 2011, resulting in an
impairment charge of $0.4 million. As discussed in Note 5, the Company recorded charges for the impairment of
certain non-operating wireless licenses as of result of its 2011 annual impairment test. The fair value of the
wireless licenses was determined using Level 3 inputs and the valuation techniques discussed therein.
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