Metro PCS 2009 Annual Report Download - page 102

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90
Capital Lease Obligations
We have entered into various non-cancelable capital lease agreements, with expirations through 2025. Assets and
future obligations related to capital leases are included in the accompanying consolidated balance sheets in property
and equipment and long-term debt, respectively. Depreciation of assets held under capital lease obligations is
included in depreciation and amortization expense.
Capital Expenditures and Other Asset Acquisitions and Dispositions
Capital Expenditures. We currently expect to incur capital expenditures in the range of $600.0 million to $800.0
million on a consolidated basis for the year ending December 31, 2010.
During the year ended December 31, 2009, we incurred approximately $831.7 million in capital expenditures.
These capital expenditures were primarily for the expansion and improvement of our existing network infrastructure
and costs associated with the construction of new markets.
During the year ended December 31, 2008, we incurred $954.6 million in capital expenditures. These capital
expenditures were primarily for the expansion and improvement of our existing network infrastructure and costs
associated with the construction of new markets.
During the year ended December 31, 2007, we incurred $767.7 million in capital expenditures. These capital
expenditures were primarily for the expansion and improvement of our existing network infrastructure and costs
associated with the construction of new markets.
Other Acquisitions and Dispositions. We participated as a bidder in FCC Auction 73, and on June 26, 2008, we
were 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 us in the Boston-Worcester,
Massachusetts/New Hampshire/Rhode Island/Vermont Economic Area as a result of FCC Auction 66.
During the years ended December 31, 2009 and 2008, we closed on various agreements for the acquisition and
exchange of spectrum in the net aggregate amount of approximately $14.6 million and $21.8 million in cash,
respectively.
During the year ended December 31, 2009, we received $52.3 million in fair value of FCC licenses in exchanges
with other parties.
On February 2, 2010, we entered into a like-kind spectrum exchange agreement covering licenses in certain
markets with another service provider, or Service Provider. The Service Provider will acquire 10 MHz of AWS
spectrum in Dallas/Fort Worth, Texas; Shreveport-Bossier City, Louisiana; and an additional 10 MHz of AWS
spectrum in certain other Washington markets, as well as an additional 10 MHz of PCS spectrum in Sacramento,
California. We will acquire an additional 10 MHz of AWS spectrum in Santa Barbara, California; Tampa-St.
Petersburg-Clearwater, Florida; and 10MHz of AWS spectrum in Dallas/Fort Worth, Texas and Shreveport-Bossier
City, Louisiana. Consummation of this spectrum exchange agreement is subject to customary closing conditions,
including FCC consent. In addition, we have entered into short-term lease agreements with the Service Provider
that, subject to FCC approval, authorize the Service Provider and us to use the spectrum covered by the spectrum
exchange agreement until the spectrum exchange is consummated.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements.