Metro PCS 2011 Annual Report Download - page 121

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MetroPCS Communications, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2011, 2010 and 2009
F-15
The Effect of Derivative Instruments on the Consolidated Statement of Income and Comprehensive Income
For the Year Ended December 31,
(in thousands)
Derivatives in ASC 815 Cash
Flow Hedging Relationships
Amount of Loss
Recognized in OCI on Derivative
(Effective Portion)
Location of Gain (Loss)
Reclassified from
Accumulated OCI into
Income (Effective Portion)
Amount of Loss
Reclassified from
Accumulated OCI into
Income (Effective Portion)
2011 2010 2009 2011 2010 2009
Interest rate protection agreements $ (36,120) $ (12,146) $ (24,230) Interest expense $ (23,414) $ (28,696) $ (54,334)
6. Intangible Assets:
The changes in the carrying value of intangible assets during the years ended December 31, 2011 and 2010 are as follows
(in thousands):
FCC Licenses
Microwave
Relocation
Costs
Balance at January 1, 2010 $ 2,451,544 $ 18,638
Additions $ 56,451 $ 4,183
Disposals $ (7,803) $ (772)
Balance at December 31, 2010 $ 2,500,192 $ 22,049
Additions 13,578 3,222
Disposals — —
Balance at December 31, 2011 $ 2,513,770 $ 25,271
FCC licenses represent the PCS licenses acquired by the Company in the FCC auctions in May 1996 and February 2005,
the AWS licenses acquired in FCC Auction 66, the 700 MHz license acquired in FCC Auction 73 and FCC licenses acquired
from other licensees.
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 exist as of
December 31, 2011 that limit the useful life of its PCS, AWS and 700 MHz licenses.
Other Spectrum Acquisitions
During the year ended December 31, 2009, the Company closed on various agreements for the acquisition and exchange
of spectrum in the net aggregate amount of $14.6 million in cash.
During the year ended December 31, 2010, the Company closed on various agreements for the exchange of spectrum in
the net aggregate amount of $3.0 million in cash. The exchanges of spectrum resulted in a gain on disposal of assets in the
amount of $45.8 million.