Metro PCS 2010 Annual Report Download - page 142

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MetroPCS Communications, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2010, 2009 and 2008
F-36
17. 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. Transactions associated with these
services are included in various line items in the accompanying consolidated balance sheets and consolidated
statements of income and comprehensive income. The Company had the following transactions with this related-
party (in millions):
Year Ended December 31,
2010 2009 2008
Fees received by the Company as compensation for providing
b
illing and collection services included in service revenues............... $ 9.0 $ 7.6 $ 7.1
Handsets sold to the relate
d
-
p
arty included in equipment revenues...... 17.9 16.4 12.0
2010 2009
Accruals for fees collected from customers included in accounts payable
and accrued expenses ...................................................................................... $ 4.9 $ 4.2
Receivables from the relate
d
-
p
arty included in other current assets................... 0.6 1.2
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. Pursuant to an
additional agreement with this related-party, the Company receives compensation for providing access to the
Company’s line information database/calling name data storage to the related-party. Transactions associated with
these services are included in various line items in the accompanying consolidated statements of income and
comprehensive income. The Company had the following transactions with this related-party (in millions):
Year Ended December 31,
2010 2009 2008
Fees received by the Company as compensation for providing access
to the Company’s line information database /calling name data
storage included in service revenues ....................................................... $ 2.7 $ 0 $ 0
Fees paid by the Company for wireless caller ID with name services
included in cost of service ....................................................................... 7.7 3.0 0.1
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 10% interest in a
company that provides advertising services to the Company. The Company paid approximately $5.4 million, $5.4
million and $4.4 million to the company for these services during the years ended December 31, 2010, 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 56% 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):