Clearwire 2007 Annual Report Download - page 91

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8. Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses as of December 31, 2007 and 2006 consisted of the following (in
thousands):
2007 2006
December 31,
Accounts payable ............................................ $ 42,327 $ 41,710
Accrued interest ............................................. 11,643 27,272
Salaries and benefits .......................................... 17,697 12,095
Other ..................................................... 30,780 27,139
$102,447 $108,216
9. Income Taxes
Components of deferred tax assets and liabilities as of December 31, 2007 and 2006 were as follows (in
thousands):
2007 2006
December 31,
Current deferred tax assets . ................................... $ 6,981 $ 4,233
Noncurrent deferred tax assets:
Net operating loss carryforward ............................... 430,345 184,771
Other .................................................. 21,535 5,012
Total deferred tax assets . . . ................................... 458,861 194,016
Valuation allowance ......................................... (441,432) (170,797)
Net deferred tax assets ....................................... 17,429 23,219
Noncurrent deferred tax liabilities:
Spectrum licenses ......................................... 33,673 28,938
Property, equipment and other long-term assets ................... 25,791 7,150
Bond issuance cost — warrant valuation......................... 753 4,225
Other intangibles .......................................... — 124
Total deferred tax liabilities . ................................... 60,217 40,437
Net deferred tax liabilities . . ................................... $ 42,788 $ 17,218
As of December 31, 2007, the Company had federal tax net operating loss carryforwards in the United States of
approximately $969.2 million. A portion of the net operating loss carryforward will be subject to certain annual
limitations imposed under Section 382 of the Internal Revenue Code of 1986. The net operating loss carryforwards
begin to expire in 2021. The Company had approximately $224.2 million of tax net operating loss carryforwards in
foreign jurisdictions as of December 31, 2007. Of the $224.2 million of tax net operating loss carryforwards in
foreign jurisdictions, $114.9 million has no statutory expiration date, $94.5 million begins to expire in 2015, and the
remainder of $14.8 million begins to expire in 2010.
The Company has recorded a valuation allowance against a substantial portion of the deferred tax assets.
Management has reviewed the facts and circumstances, including the limited history and the projected future tax
losses, and determined that it is appropriate to reduce a portion of the gross deferred tax assets. The remaining
deferred tax asset will be reduced by schedulable deferred tax liabilities. The net deferred tax liabilities are related
83
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)