Clearwire 2007 Annual Report Download - page 104

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16. Business Segments
The Company complies with the requirements of SFAS No. 131, which establishes annual and interim
reporting standards for an enterprise’s operating segments and related disclosures about its products, services,
geographic areas and major customers. Operating segments are defined as components of an enterprise for which
separate financial information is available that is evaluated regularly by the chief operating decision makers in
deciding how to allocate resources and in assessing performance. Operating segments can be aggregated for
segment reporting purposes so long as certain aggregation criteria are met. The Company defines the chief
operating decision makers as its Chief Executive Officer, Chief Operating Officer and the Chief Financial Officer.
As our business continues to mature, the Company assesses how it views and operates the business. As a result, in
the fourth quarter of 2007, the Company was organized into two reportable business segments: the United States and
the International business.
The Company reports business segment information as follows (in thousands):
2007 2006 2005
Year Ended December 31,
United States
Revenues ..................................... $122,906 $ 83,401 $ 32,025
Cost of goods and services (exclusive of items shown
separately below) ............................. 94,541 61,145 22,165
Operating expenses .............................. 389,227 183,029 108,328
Depreciation and amortization ...................... 69,095 35,083 10,641
Total operating expenses ........................ 552,863 279,257 141,134
Operating loss.................................. (429,957) (195,856) (109,109)
International
Revenues ..................................... 28,534 16,780 1,429
Cost of goods and services (exclusive of items shown
separately below) ............................. 12,740 8,967 1,404
Operating expenses .............................. 69,253 44,253 16,878
Depreciation and amortization ...................... 15,599 5,819 1,272
Total operating expenses ........................ 97,592 59,039 19,554
Operating loss.................................. (69,058) (42,259) (18,125)
Total operating loss............................... (499,015) (238,115) (127,234)
Other income (expense) ............................ (222,592) (39,466) (7,698)
Income tax provision .............................. (5,427) (2,981) (1,459)
Minority interest in net loss of consolidated subsidiaries .... 4,244 1,503 387
Losses from equity investees ......................... (4,676) (5,144) (3,946)
Net loss ........................................ $(727,466) $(284,203) $(139,950)
Capital expenditures
United States .................................. $320,134 $ 168,607 $ 123,249
International ................................... 41,727 23,140 9,475
$ 361,861 $ 191,747 $ 132,724
96
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)