Clearwire 2009 Annual Report Download - page 102

P
urc
h
ase cons
id
erat
i
on
w
as
b
ase
d
on t
h
e
f
a
i
r
v
a
l
ue o
f
t
h
e
Old Cl
ear
wi
re
Cl
ass A common stoc
k
as o
f
t
he
Closing, which had a closing price of
$
6.62 on November 28, 2008
.
T
he total purchase consideration to acquire Old Clearwire is approximatel
y$
1.12 billion, calculated as follows
(
in thousands, exce
p
t
p
er share amount):
N
umber of shares of Old Clearwire Class A common stock exchan
g
ed in the Transaction
s
......
1
6
4,48
4
C
l
os
i
ng pr
i
ce per s
h
are o
f
O
ld
C
l
earw
i
re C
l
ass A common stoc
k
.
........................
$
6
.
62
F
air value of Old Clearwire Class A common stock exchanged .......................... 1
,
088
,
88
4
F
air value adjustment for Old Clearwire stock options exchange
d
........................
3
8
,
01
4
F
air value ad
j
ustment for restricted stock units exchan
g
ed
..............................
1,39
8
F
air value ad
j
ustment for warrants exchan
g
e
d
.......................................
18
,
490
T
r
a
n
sactio
n
costs
............................................................
51,546
P
urc
h
ase cons
id
erat
i
on
f
or
Old Cl
ear
wi
re
b
e
f
ore sett
l
ement
l
oss
.........................
1,198,332
Less: net
l
oss
f
rom sett
l
ement o
f
pre-ex
i
st
i
ng re
l
at
i
ons
hi
p
s
.............................
(
80,573
)
P
urchase consideration for Old Clearwire ..........................................
$
1
,
117
,
75
9
Purc
ha
se Price A
ll
oc
a
tio
n
Th
e tota
l
purc
h
ase cons
id
erat
i
on was a
ll
ocate
d
to t
h
e respect
i
ve assets an
dli
a
bili
t
i
es
b
ase
d
upon t
h
e
ir
e
st
i
mate
df
a
i
rva
l
ues on t
h
e
d
ate o
f
t
h
eac
q
u
i
s
i
t
i
on. At t
h
e
d
ate o
f
ac
q
u
i
s
i
t
i
on, t
h
e est
i
mate
df
a
i
rva
l
ue o
f
t
h
ene
t
assets acquired exceeded the purchase price; therefore, no
g
oodwill is reflected in the purchase price allocation. Th
e
e
xcess of estimated fair value of net assets acquired over the purchase price was allocated to eligible non-curren
t
assets, spec
ifi
ca
lly
propert
y
,p
l
ant an
d
equ
i
pment, ot
h
er non-current assets an
di
ntan
gibl
e assets,
b
ase
d
upon t
h
e
ir
r
elative fair values
.
D
urin
g
2009, we finalized the allocation of the purchase consideration to the identifiable tan
g
ible an
d
i
ntangible assets acquired and liabilities assumed of Old Clearwire. In connection therewith, there was a reduction
i
n the amount allocated to consolidated property, plant and equipment of approximately
$
11.3 million, and a
c
orrespon
di
n
gi
ncrease
i
nt
h
e amount a
ll
ocate
d
to spectrum, pr
i
mar
ily b
ase
d
on t
h
e rece
i
pt o
f
a
ddi
t
i
ona
li
n
f
or
-
m
ation and final appraisal valuations. The followin
g
table sets forth the final allocation of the purchase consid-
e
ration to the identifiable tangible and intangible assets acquired and liabilities assumed of Old Clearwire, including
th
ea
ll
ocat
i
on o
f
t
h
e excess o
f
t
h
e est
i
mate
df
a
i
rva
l
ue o
f
net assets acqu
i
re
d
over t
h
e purc
h
ase pr
i
ce (
i
nt
h
ousan
d
s):
Wor
ki
ng cap
i
ta
l
.
....................................................
$
128
,
53
2
P
roperty, plant and equipmen
t
.
..........................................
3
93
,551
O
ther non-current assets
...............................................
106
,
676
Sp
ectrum license
s
....................................................
1,644,82
5
I
ntan
g
ible assets
.....................................................
122,
6
73
T
erm
d
e
bt
.........................................................
(1,187,500
)
D
e
f
erre
d
tax
li
a
bili
t
y
.................................................
(
4,952
)
O
t
h
er non-current
li
a
bili
t
i
es an
d
non-contro
lli
ng
i
nterest
s
.......................
(
8
6
,04
6)
T
otal purchase pric
e
.
.................................................
$
1
,
117
,
7
59
9
2
C
LEARWIRE
CO
RP
O
RATI
O
N AND
SU
B
S
IDIARIE
S
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(
Continued
)