Clearwire 2009 Annual Report Download - page 109

C
omponents o
fd
e
f
erre
d
tax assets an
dli
a
bili
t
i
es as o
f
Decem
b
er 31, 2009 an
d
2008 were as
f
o
ll
ows
(
in thousands)
:
2009
2
008
D
ecember 31
,
Noncurrent
d
e
f
erre
d
tax assets
:
Net operating loss carryforward ...............................
$
718
,
853 $ 590
,
76
7
C
apital loss carr
y
forward.
...................................
6
,230 6,187
Other assets
.............................................
1
3,
5
73 3,
5
19
T
ota
ld
e
f
erre
d
tax assets
...
...................................
738,656 600,47
3
V
a
l
uat
i
on a
ll
o
w
anc
e
.........................................
(
573,165
)(
349,001
)
N
et
d
e
f
erre
d
tax asset
s
.
...................................... 16
5,
491 2
5
1
,
47
2
N
oncurrent deferred tax liabilities
:
I
n
v
estment
i
n
Cl
ear
wi
re
C
ommun
i
cat
i
on
s
........................
142
,
434 221
,
3
7
3
Spectrum
li
censes
.........................................
19,43
7
14,943
Ot
h
er
i
ntang
ibl
e assets. . .
...................................
9,93
7
19,113
O
t
h
er ..................................................
36
2
0
7
T
otal deferred tax liabilities .
.
.................................
.
171
,
844 2
55,
63
6
N
et deferred tax liabilities
..
.
..................................
$
6,353 $ 4,16
4
Pursuant to the Transactions, the assets of Old Clearwire and its subsidiaries were combined with the s
p
ectru
m
an
d
certa
i
not
h
er assets o
f
t
h
e Spr
i
nt W
i
MAX Bus
i
ness. In con
j
unct
i
on w
i
t
h
t
h
e acqu
i
s
i
t
i
on o
f
O
ld
C
l
earw
i
re
b
yt
h
e
S
print WiMAX Business, these assets along with the
$
3.2 billion of capital from the Investors were contributed to
C
l
earw
i
re Commun
i
cat
i
ons. C
l
earw
i
re
i
st
h
eso
l
e
h
o
ld
er o
f
vot
i
n
gi
nterests
i
nC
l
earw
i
re Commun
i
cat
i
ons. As suc
h
,
Clearwire controls 100% of the decision making of Clearwire Communications and consolidates 100% of it
s
o
p
erations. Clearwire Communications is treated as a
p
artnershi
p
for United States federal income tax
p
ur
p
oses an
d
t
h
ere
f
ore
d
oes not pay
i
ncome tax
i
nt
h
eUn
i
te
d
States an
d
any current an
dd
e
f
erre
d
tax consequences ar
i
se at t
h
e
p
artner
l
eve
l
,
i
nc
l
u
di
n
g
C
l
earw
i
re. Ot
h
er t
h
an
b
a
l
ances assoc
i
ate
d
w
i
t
h
t
h
e non-Un
i
te
d
States operat
i
ons, t
h
eon
ly
temporary
diff
erence
f
or C
l
earw
i
re a
f
ter t
h
eC
l
os
i
ng
i
st
h
e
b
as
i
s
diff
erence assoc
i
ate
d
w
i
t
h
our
i
nvestment
i
nt
h
e
p
artnership. Consequentl
y
, we recorded a deferred tax liabilit
y
for the difference between the financial statemen
t
c
arr
yi
n
g
va
l
ue an
d
t
h
e tax
b
as
i
swe
h
o
ld i
n our
i
nterest
i
nC
l
earw
i
re Commun
i
cat
i
ons as o
f
t
h
e
d
ate o
f
t
he
T
ransactions
.
As o
f
Decem
b
er 31, 2009, we
h
a
d
Un
i
te
d
States
f
e
d
era
l
tax net operat
i
n
gl
oss carr
yf
orwar
d
so
f
approx
i
mate
ly
$
1.6 billion. A portion of the net operating loss carryforward is subject to certain annual limitations imposed under
S
ection 382 of the Internal Revenue Code of 198
6
. The net operatin
g
loss carr
y
forwards be
g
in to expire in 2021. We
h
ad
$
386.4 million of tax net operating loss carryforwards in foreign jurisdictions;
$
234.2 million have no statutory
e
xpiration date, $130.5 million be
g
ins to expire in 2015, and the remainder of $21.7 million be
g
ins to expire in
2
0
1
0.
We have recorded a valuation allowance against our deferred tax assets to the extent that we determined that i
t
i
s more
lik
e
ly
t
h
an not t
h
at t
h
ese
i
tems w
ill
e
i
t
h
er exp
i
re
b
e
f
ore we are a
bl
e to rea
li
ze t
h
e
i
r
b
ene
fi
ts or t
h
at
f
uture
d
eductibilit
y
is uncertain. As it relates to the United States tax
j
urisdiction, we determined that our temporar
y
taxable difference associated with our investment in Clearwire Communications will reverse within the carr
y
for
-
ward period of the net operating losses and accordingly represents relevant future taxable income.
99
CLEARWIRE CORPORATION AND
S
UB
S
IDIARIE
S
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(
Continued
)