Metro PCS 2009 Annual Report Download - page 158

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MetroPCS Communications, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2009, 2008 and 2007
F-44
19. Related-Party Transactions:
One of the Company’s current directors is a managing director 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. 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,
2009 2008 2007
Fees received by the Company as compensation for
providing billing and collection services. ............................... $ 7.6 $ 7.1 $ 5.7
Handsets sold to the related party ............................................. 16.4 12.0 10.8
2009 2008
Accruals for fees collected from customers ....................................................... $ 4.2 $ 3.7
Receivables from the related party included in accounts receivable................... 1.2 0.8
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 $3.0 million and $0.1 million to the company for these services during the years ended December 31,
2009 and 2008, respectively.
One of the Company’s current directors is a managing director of various investment funds affiliated with one of
the Company’s greater than 5% stockholders. These funds own in the aggregate an approximate 16% interest in a
company that provides advertising services to the Company. The Company paid approximately $5.4 million, $4.4
million and $3.5 million to the company for these services during the years ended December 31, 2009, 2008 and
2007, respectively.
One of the Company’s greater than 5% stockholders, through various investment funds, owns in the aggregate an
approximate 21% interest in a company that provides cell site and switch interconnect transport services to the
Company. The Company paid approximately $0.5 million and $0.2 million to the company for these services during
the years ended December 31, 2009 and 2008, respectively.
One of the Company’s current directors is chairman of an equity firm that holds various investment funds
affiliated with one of the Company’s greater than 5% stockholders. These funds own in the aggregate an
approximate 38% interest in a company that provides network cost management solutions to the Company. The
Company paid approximately $0.3 million, $0.3 million and $0.3 million to the company for these services during
the years ended December 31, 2009, 2008 and 2007, respectively.
One of the Company’s current directors is a managing director of various investment funds affiliated with one of
the Company’s greater than 5% stockholders. These funds own in the aggregate an approximate 62% interest in a
company that provides DAS leases and maintenance to wireless carriers, including the Company. In addition,
another of the Company’s current directors is a general partner of various investment funds which own in the
aggregate an approximate 13% interest in the same company. These DAS leases are accounted for as capital or
operating leases in the Company’s financial statements. Transactions associated with these leases are included in
various line items in the accompanying consolidated balance sheets, consolidated statements of income and
comprehensive income and consolidated statements of cash flows. The Company had the following transactions
with this related party (in millions):