Metro PCS 2008 Annual Report Download - page 54

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growth will challenge the capacity and abilities of existing employees and future employees at all levels of our
business and the controls and systems we have implemented. Failure to successfully manage our expected growth
and development could have a material adverse effect on our business, increase our costs and adversely affect our
level of service and inadequate internal controls could also cause investors to lose confidence in our reported
financial information which could have a negative effect on the trading price of our stock.
The value of our FCC licenses may drop in the future as a result of volatility in the marketplace and the sale of
additional spectrum by the FCC.
The market value of FCC licenses has been subject to significant volatility in the past and the value of our licenses
may continue to fluctuate as the FCC continues to auction, and make available through regulatory flexibility,
additional substantial amounts of spectrum. The impact of these future actions and auctions on license values is
uncertain. There can be no assurance of the market value of our FCC licenses or that the market value of our FCC
licenses will not be volatile in the future. If the value of our licenses was to decline significantly, we could be forced
to record non-cash impairment charges which could impact our ability to borrow additional funds. A significant
impairment loss could have a material adverse effect on our operating income and on the carrying value of our
licenses on our balance sheet.
Declines in our operating performance could ultimately result in an impairment of our indefinite-lived assets,
including FCC licenses, or our long-lived assets, including property and equipment.
We assess potential impairments to our long-lived assets, including property and equipment and certain intangible
assets, when there is evidence that events or changes in circumstances indicate that the carrying value may not be
recoverable. We assess potential impairments to indefinite-lived intangible assets, including FCC licenses, annually
and when there is evidence that events or changes in circumstances indicate that an impairment condition may exist.
If we do not achieve our planned operating results, this may ultimately result in a non-cash impairment charge
related to our long-lived and/or our indefinite-lived intangible assets. A significant impairment loss could have a
material adverse effect on our operating results and on the carrying value of our FCC licenses and/or our long-lived
assets on our balance sheet.
We may be unable to service our debt and to refinance our indebtedness before maturity.
Our ability to meet our existing or future debt obligations and to reduce our indebtedness will depend on our
future performance and the other cash requirements of our business. Our performance, to a certain extent, is subject
to general economic conditions, financial, competitive, business, political, regulatory and other factors that are
beyond our control. In addition, our ability to borrow funds in the future to make payment on our debt will depend
on the satisfaction of covenants in our senior secured credit facility, the indentures governing our senior notes, other
debt agreements and other agreements we may enter into in the future. Specifically, we will need to maintain certain
financial ratios and satisfy financial condition tests. We cannot assure you that we will continue to generate
sufficient cash flow from operations at or above current levels or that future borrowings will be available to us under
our senior secured credit facility or from other sources in an amount sufficient to enable us to repay all of our
indebtedness timely. As a result, we believe we may need to refinance all or a portion of our remaining existing
indebtedness prior to its maturity. Disruptions in the financial markets could make it more difficult to obtain debt or
equity financing on reasonable terms or at all. We cannot assure you that we will be able to service our debt or
refinance any or all of our indebtedness on favorable or commercially reasonable terms, or at all.
Our senior secured credit facility and the indentures governing our senior notes include restrictive covenants
that limit our operating flexibility.
Our senior secured credit facility and indentures governing our senior notes impose material operating and
financial restrictions on us. These restrictions, subject in certain cases to ordinary course of business and other
exceptions, may limit our ability to engage in some transactions, including the following:
• incurring additional debt;
• paying dividends, redeeming capital stock or making other restricted payments or investments;
• selling or buying assets, properties or licenses;
• developing assets, properties or licenses which we have or in the future may procure;