Metro PCS 2011 Annual Report Download - page 142

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MetroPCS Communications, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2011, 2010 and 2009
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 an 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. In addition, the Company receives compensation for selling handsets to the related-party.
One of the Company's current directors is the chairman of an equity firm that owns interest in 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. This company was a related-party through October 2011.
One of the Company’s current directors is the chairman of an equity firm that owns an interest in a company that provides
network cost management solutions to the Company.
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 an interest in a company that provides advertising services to the
Company.
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 an interest in a company that provides distributed antenna systems
("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 an 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 the related parties described above 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 following tables summarize the transactions with related-parties (in millions):
2011 2010
Network service fees included in prepaid expenses $ 1.5 $ 1.5
Receivables from related-party included in other current assets 0.7 0.6
DAS and other assets included in property and equipment, net 383.6 366.4
Deferred network service fees included in other assets 8.2 9.9
Payments due to related-party included in accounts payable and accrued expenses 6.6 7.8
Current portion of capital lease obligations included in current maturities of long-term debt 7.1 5.2
Non-current portion of capital lease obligations included in long-term debt, net 240.1 215.4
Deferred DAS service fees included in other long-term liabilities 1.4 1.2
Year Ended December 31,
2011 2010 2009
Fees received by the Company as compensation included in service revenues $ 14.1 $ 11.7 $ 7.6
Fees received by the Company as compensation included in equipment
revenues 19.7 17.9 16.4
Fees paid by the Company for services and related expenses included in cost
of service 21.4 22.3 19.3
Fees paid by the Company for services included in selling, general and
administrative expenses 5.4 5.8 5.7
DAS and other assets depreciation included in depreciation expense 36.4 28.7 18.6
Capital lease interest included in interest expense 19.1 14.4 11.6