Metro PCS 2008 Annual Report Download - page 138

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MetroPCS Communications, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2008, 2007 and 2006
F-36
The following table reconciles segment Adjusted EBITDA (Deficit) for the years ended December 31, 2008,
2007 and 2006 to consolidated income before provision for income taxes:
2008 2007 2006
Segment Adjusted EBITDA (Deficit):
Core Markets Adjusted EBITDA................................................................................. $ 720,334 $ 654,112 $ 492,773
Expansion Markets Adjusted EBITDA (Deficit) ......................................................... 62,799 12,883 (97,214)
Total............................................................................................................................ 783,133 666,995 395,559
Depreciation and amortization..................................................................................... (255,319) (178,202) (135,028)
Loss on disposal of assets ............................................................................................ (18,905) (655) (8,806)
Stock-based compensation expense............................................................................. (41,142) (28,024) (14,472)
Interest expense ........................................................................................................... (179,398) (201,746) (115,985)
Accretion of put option in majority-owned subsidiary................................................. (1,258) (1,003) (770)
Interest and other income............................................................................................. 23,170 63,936 21,543
Impairment loss on investment securities .................................................................... (30,857) (97,800) —
Loss on extinguishment of debt ................................................................................... — — (51,518)
Consolidated income before provision for income taxes......................................... $ 279,424 $ 223,501 $ 90,523
21. Guarantor Subsidiaries:
In connection with Wireless’ sale of the 91/4% Senior Notes and the entry into the Senior Secured Credit Facility,
MetroPCS and all of MetroPCS’ subsidiaries, other than Wireless and Royal Street (the “guarantor subsidiaries”),
provided guarantees on the 91/4% Senior Notes and Senior Secured Credit Facility. These guarantees are full and
unconditional as well as joint and several. Certain provisions of the Senior Secured Credit Facility and the indenture
relating to the 9¼% Senior Notes restrict the ability of Wireless to loan funds to MetroPCS. However, Wireless is
allowed to make certain permitted payments to MetroPCS under the terms of the Senior Secured Credit Facility and
the indenture relating to the 9¼% Senior Notes. Royal Street (the “non-guarantor subsidiaries”) is not a guarantor of
the 91/4% Senior Notes or the Senior Secured Credit Facility.
The following information presents condensed consolidating balance sheets as of December 31, 2008 and 2007,
condensed consolidating statements of income for the years ended December 31, 2008, 2007 and 2006, and
condensed consolidating statements of cash flows for the years ended December 31, 2008, 2007 and 2006 of the
parent company (MetroPCS), the issuer (Wireless), the guarantor subsidiaries and the non-guarantor subsidiaries
(Royal Street). Investments in subsidiaries held by the parent company and the issuer have been presented using the
equity method of accounting.