Metro PCS 2008 Annual Report Download - page 147

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MetroPCS Communications, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2008, 2007 and 2006
F-45
22. Related-Party Transactions:
One of the Company’s current directors is a general partner of various investment funds affiliated with one of the
Company’s greater than 5% stockholders. These funds own in the aggregate an approximate 17% interest in a
company that provides services to the Company’s customers, including handset insurance programs and roadside
assistance services. Pursuant to the Company’s agreement with this related party, the Company bills its customers
directly for these services and remits the fees collected from its customers for these services to the related party.
Accruals for the fees that the Company collected from its customers are included in accounts payable and accrued
expenses on the accompanying consolidated balance sheets. The Company had the following transactions with this
related party (in millions):
Year Ended December 31,
2008 2007 2006
Fees received by the Company as compensation for
providing billing and collection services. ........................... $ 7.1 $ 5.7 $ 2.7
Handsets sold to the related party ......................................... 12.0 10.8 12.7
2008 2007
Liability for fees collected from customers ................................................. $ 3.7 $ 3.3
Receivables from the related party which were included in:........................
Accounts receivable .................................................................................. 0.8 0.7
The Company paid approximately $0.2 million, $0.1 million and $0.1 million for the years ended December 31,
2008, 2007 and 2006, respectively, to a law firm for professional services, a partner of which is related to a
Company executive officer.
One of the Company’s current directors is the chairman of an equity firm that holds various investment funds
affiliated with one of the Company’s greater than 5% stockholders. The equity firm is affiliated with a current
director of a company that provides wireless caller id with name services to the Company. The Company paid
approximately $0.1 million to the company for these services during the year ended December 31, 2008.
One of the Company’s current directors is a general partner of various investment funds affiliated with one of the
Company’s greater than 5% stockholders. These funds own in the aggregate an approximate 15.6% interest in a
company that provides advertising services to the Company. The Company paid approximately $4.4 million, $3.5
million and $1.3 million to the company for these services during the years ended December 31, 2008, 2007 and
2006, respectively.
23. Supplemental Cash Flow Information:
Year Ended December 31,
2008 2007 2006
(In thousands)
Cash paid for interest................................................................................................. $ 177,210 $ 194,921 $ 86,380
Cash paid for income taxes........................................................................................ 2,617 423 3,375
Non-cash investing and financing activities:
The Company accrued dividends of $6.5 million and $21.0 million related to the Series D Preferred Stock for the
years ended December 31, 2007 and 2006, respectively.
The Company accrued dividends of $0.9 million and $3.0 million related to the Series E Preferred Stock for the
years ended December 31, 2007 and 2006, respectively.
Net changes in the Company’s accrued purchases of property, plant and equipment were $161.9 million,
$42.5 million and $28.5 million for the years ended December 31, 2008, 2007 and 2006, respectively. Included
within the Company’s accrued purchases are estimates by management for construction services received based on a
percentage of completion.