Metro PCS 2009 Annual Report Download - page 131

MetroPCS Communications, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2009, 2008 and 2007
F-17
6. Intangible Assets:
The changes in the carrying value of intangible assets during the years ended December 31, 2009 and 2008 are as
follows (in thousands):
FCC Licenses
Microwave
Relocation
Costs
Balance at December 31, 2007 ........................................................................................... $ 2,072,895 $ 10,105
Additions ............................................................................................................................ 333,701 6,373
Balance at December 31, 2008 ........................................................................................... $ 2,406,596 $ 16,478
Additions ............................................................................................................................ 64,879 2,160
Disposals ............................................................................................................................ (19,931) —
Balance at December 31, 2009 ........................................................................................... $ 2,451,544 $ 18,638
FCC licenses represent the 14 C-Block PCS licenses acquired by the Company in the FCC auction in May 1996,
the AWS licenses acquired in FCC Auction 66, the 700 MHz license acquired in FCC Auction 73 and FCC licenses
acquired from other carriers. FCC licenses also represent licenses acquired in 2005 by Royal Street Communications
in Auction 58.
The grant of the licenses by the FCC subjects the Company to certain FCC ongoing ownership restrictions.
Should the Company cease to continue to qualify under such ownership restrictions, the PCS, AWS and 700 MHz
licenses may be subject to revocation or require the payment of fines or forfeitures. Although PCS, AWS and 700
MHz licenses are issued with a stated term, ten years in the case of the PCS licenses, fifteen years in the case of the
AWS licenses and approximately ten years for 700 MHz licenses, the renewal of PCS, AWS and 700 MHz licenses
is generally a routine matter without substantial cost and the Company has determined that no legal, regulatory,
contractual, competitive, economic, or other factors currently exist that limit the useful life of its PCS, AWS and 700
MHz licenses.
The Company participated as a bidder in FCC Auction 73, and on June 26, 2008, the Company was 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 the Company in the Boston-Worcester,
Massachusetts/New Hampshire/Rhode Island/Vermont Economic Area as a result of FCC Auction 66.
Other Spectrum Acquisitions
During the years ended December 31, 2009 and 2008, the Company 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.
7. Accounts Payable and Accrued Expenses:
Accounts payable and accrued expenses consisted of the following (in thousands):
2009 2008
Accounts payable ..........................................................................................................................
.
$ 164,246 $ 148,309
Book overdraft...............................................................................................................................
.
84,438 104,752
Accrued accounts payable .............................................................................................................
.
131,644 178,085
Accrued liabilities..........................................................................................................................
.
26,009 15,803
Payroll and employee benefits.......................................................................................................
.
30,923 34,047
Accrued interest.............................................................................................................................
.
42,098 33,521
Taxes, other than income...............................................................................................................
.
71,513 46,705
Income taxes..................................................................................................................................
.
7,495 7,210
Accounts payable and accrued expenses .......................................................................................
.
$ 558,366 $ 568,432