Metro PCS 2008 Annual Report Download - page 121

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MetroPCS Communications, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2008, 2007 and 2006
F-19
The Company participated as a bidder in FCC Auction 73, and on June 26, 2008, the Company was granted one
12 MHz 700 MHz license for a total aggregate purchase price of approximately $313.3 million. This 700 MHz
license supplements the 10 MHz of AWS spectrum previously granted to the Company in the Boston-Worcester,
Massachusetts/New Hampshire/Rhode Island/Vermont Economic Area as a result of FCC Auction 66.
On various dates in 2008, the Company consummated agreements for spectrum acquisitions from third-parties in
the aggregate amount of approximately $15.3 million.
On September 26, 2008, the Company entered into a spectrum exchange agreement covering licenses in certain
markets with Leap Wireless International, Inc. (“Leap Wireless”) with Leap Wireless acquiring an additional 10
MHz of spectrum in San Diego and Fresno, California; Seattle, Washington and certain other Washington and
Oregon markets, and the Company acquiring an additional 10 MHz of spectrum in Shreveport-Bossier City,
Louisiana; Lakeland-Winter Haven, Florida; and Dallas-Ft. Worth, Texas and certain other North Texas markets,
with consummation subject to customary closing conditions.
During the year ended December 31, 2008, the Company entered into various agreements for the acquisition and
exchange of spectrum in the aggregate amount of approximately $8.3 million. Consummation of these acquisitions
is conditioned upon customary closing conditions, including approval by the FCC.
8. Accounts Payable and Accrued Expenses:
Accounts payable and accrued expenses consisted of the following (in thousands):
2008 2007
Accounts payable ....................................................................................................................... $ 148,309 $ 131,177
Book overdraft............................................................................................................................ 104,752 25,399
Accrued accounts payable .......................................................................................................... 178,085 155,733
Accrued liabilities....................................................................................................................... 15,803 16,285
Payroll and employee benefits.................................................................................................... 34,047 29,380
Accrued interest.......................................................................................................................... 33,521 33,892
Taxes, other than income............................................................................................................ 46,705 41,044
Income taxes............................................................................................................................... 7,210 6,539
Accounts payable and accrued expenses .................................................................................... $ 568,432 $ 439,449
9. Long-Term Debt:
Long-term debt consisted of the following (in thousands):
2008 2007
9¼% Senior Notes.................................................................................................................. $ 1,400,000 $ 1,400,000
Senior Secured Credit Facility................................................................................................ 1,564,000 1,580,000
Capital lease obligations......................................................................................................... 91,343 —
Total ...................................................................................................................................... 3,055,343 2,980,000
Add: unamortized premium on debt ....................................................................................... 19,649 22,177
Total debt............................................................................................................................... 3,074,992 3,002,177
Less: current maturities .......................................................................................................... (17,009) (16,000)
Total long-term debt.............................................................................................................. $ 3,057,983 $ 2,986,177