Cricket Wireless 2012 Annual Report Download - page 129

LEAP WIRELESS INTERNATIONAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Maturities of Long-Term Debt
The aggregate maturities of the Company’s long-term debt obligations, excluding the effects of discount
accretion on its $1,100 million of 7.75% senior secured notes due 2016, its $1,600 million of 7.75% unsecured
notes due 2020 and its $400 million secured term loan under the Credit Agreement are as follows (in thousands):
Years Ended December 31:
2013 ................................................................... $ 4,000
2014 ................................................................... 254,000
2015 ................................................................... 4,000
2016 ................................................................... 1,104,000
2017 ................................................................... 4,000
Thereafter .............................................................. 1,980,000
$3,350,000
The Company currently expects that it will be required to refinance all or substantially all of its $1,100
million of senior secured notes due 2016 before they mature. However, the Company cannot guarantee that it will
be able to refinance all or any portion of its indebtedness prior to its maturity. If the Company is unable to repay
or refinance its indebtedness as planned, it will likely be required to take additional actions to generate liquidity
such as delaying or reducing capital expenditures, reducing operating expenses, selling assets or seeking
additional equity capital. There can be no assurance, however, that the Company will be able to obtain sufficient
funds to enable it to repay or refinance any of its indebtedness on commercially reasonable terms or at all.
Note 10. Impairments and Other Charges
Impairments and other charges consisted of the following (in thousands):
Year Ended December 31,
2012 2011 2010
Goodwill impairment (Note 5) ............................. $ — $ — $430,101
Wireless license impairment (Note 5) ....................... — 377 766
Property and equipment impairment (Note 2) ................. 13,640 — 46,460
Severance and restructuring activities ....................... 25,759 — —
Post-acquisition charges (Note 6) .......................... — 26,393 —
Impairments and other charges .......................... $39,399 $26,770 $477,327
In the third quarter of 2012, the Company developed a plan to reduce administrative and corporate support
costs through a reduction in personnel. As a result, the Company recorded a liability of approximately $14.8
million representing severance expense and related costs to implement the plan.
In the fourth quarter of 2012, the Company further developed its plan originally aimed at reducing
administrative and corporate support costs to also include reductions in previously planned network expansion
activities and capital expenditures. As a result, certain projects relating to network design, site acquisition and
other internal corporate initiatives were canceled. The Company determined that the capitalized amounts relating
to these canceled projects were no longer recoverable and as such, recorded an impairment charge of
approximately $13.6 million during the fourth quarter, reducing the carrying value of these capitalized amounts
to zero. Additionally, in connection with the reduction in network expansion activities, the Company recognized
restructuring charges of approximately $11.0 million primarily related to lease exit costs associated with cellular
sites that were no longer being developed or utilized.
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