Metro PCS 2009 Annual Report Download - page 121
Download and view the complete annual report
Please find page 121 of the 2009 Metro PCS annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111 -
112 -
113 -
114 -
115 -
116 -
117 -
118 -
119 -
120 -
121 -
122 -
123 -
124 -
125 -
126 -
127 -
128 -
129 -
130 -
131 -
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
 |
 |
MetroPCS Communications, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2009, 2008 and 2007
F-7
• accrued property and equipment for the percentage of construction services received;
• impairment of long-lived assets and indefinite-lived assets;
• likelihood of realizing benefits associated with temporary differences giving rise to deferred tax assets;
• reserves for uncertain tax positions;
• asset retirement obligations;
• determining fair value of FCC licenses in exchanges; and
• stock-based compensation expense.
Derivative Instruments and Hedging Activities
The Company accounts for its hedging activities under ASC 815 (Topic 815, “Derivatives and Hedging”). The
standard requires the Company to recognize all derivatives on the consolidated balance sheet at fair value. Changes
in the fair value of derivatives are to be recorded each period in earnings or on the accompanying consolidated
balance sheets in accumulated other comprehensive income (loss) depending on the type of hedged transaction and
whether the derivative is designated and effective as part of a hedged transaction. Gains or losses on derivative
instruments reported in accumulated other comprehensive income (loss) must be reclassified to earnings in the
period in which earnings are affected by the underlying hedged transaction and the ineffective portion of all hedges
must be recognized in earnings in the current period. The Company’s use of derivative financial instruments is
discussed in Note 5.
Cash and Cash Equivalents
The Company includes as cash and cash equivalents (i) cash on hand, (ii) cash in bank accounts, (iii) investments
in money market funds, and (iv) U.S. Treasury securities with an original maturity of 90 days or less.
Short-Term Investments
The Company’s short-term investments consist of securities classified as available-for-sale, which are stated at
fair value. The securities include U.S. Treasury securities with an original maturity of over 90 days. Unrealized
gains, net of related income taxes, for available-for-sale securities are reported in accumulated other comprehensive
loss, a component of stockholders’ equity, until realized. The estimated fair values of investments are based on
quoted market prices as of the end of the reporting period (See Note 4).
Inventories
Substantially all of the Company’s inventories are stated at the lower of average cost or market. Inventories
consist mainly of handsets that are available for sale to customers and independent retailers.