Clearwire 2009 Annual Report Download - page 127

2009 2008
D
ecember 31,
T
o
t
a
l
asse
t
s
U
n
i
te
dS
tates ..........................................
$
11
,
115
,
815
$
8
,
901
,
988
I
n
te
rn
at
i
o
n
al
..........................................
.
1
5
2
,
038 222
,
179
$11,267,853 $9,124,167
18. Related Party Transaction
s
We
h
ave a num
b
er o
f
strateg
i
can
d
commerc
i
a
l
re
l
at
i
ons
hi
ps w
i
t
h
t
hi
r
d
part
i
es t
h
at
h
ave
h
a
d
as
i
gn
ifi
cant
i
mpact on our
b
us
i
ness, operat
i
ons an
dfi
nanc
i
a
l
resu
l
ts. T
h
ese re
l
at
i
ons
hi
ps
h
ave
b
een w
i
t
h
Spr
i
nt, t
h
e Investors,
E
a
g
le River, Motorola, Inc. and Bell Canada, all of which are or have been related parties.
T
he followin
g
amounts for related part
y
transactions are included in our consolidated financial statements (i
n
th
ousan
d
s
):
2009 200
8
December 31
,
Accounts pa
y
a
bl
ean
d
accrue
d
expenses ............................
$
22
,
521
$
33
,
87
2
D
e
b
t
......................................................
$
246
,
494
$
178
,
748
2
009 2008(1) 2007
Y
ear Ended December
31,
R
evenue
.
........................................
$
2
,230 $ — $ —
C
ost o
f
goo
d
san
d
serv
i
ces an
d
networ
k
costs (
i
nc
l
us
i
ve o
f
ca
p
italized costs) (COGS)
..........................
$
75,283 $118,331 $ 41,554
Se
lli
ng, genera
l
an
d
a
d
m
i
n
i
strat
i
ve (SG&A)
...............
$
10
,
773
$
95
,
840
$
75
,
554
I
nterest costs (
i
nc
l
us
i
ve o
f
cap
i
ta
li
ze
di
nterest
)
............
.
$
23
,
883
$
1
,
353
$
—
T
otal contributions and advances from Sprint ..............
$—
$
451
,
925
$
1
,
287
,
25
1
(1) The amounts
p
resented for 2008 reflect the correction of a classification error between COGS and SG&A in the
amount of
$
77.4 million that had been previousl
y
presented in SG&A and has been reclassified to COGS t
o
c
orrect t
h
e
p
resentat
i
on.
R
o
ll
over Note
s
— In connection with the issuance of the Senior Secured Notes, on November 24, 2009, w
e
also issued
$
252.5 million of notes to Sprint and Comcast with identical terms as the Senior Secured Notes. Th
e
p
roceeds from the Rollover Notes were used to retire the
p
rinci
p
al amounts owed to S
p
rint and Comcast under our
S
enior Term Loan Facilit
y
. From time to time, other related parties ma
y
hold debt under our Senior Secured Notes
,
an
d
as
d
e
b
t
h
o
ld
ers, wou
ld b
e ent
i
t
l
e
d
to rece
i
ve
i
nterest payments
f
rom us.
Sprint Pre-Closing Financing Amount and Amended Credit Agreement — As a resu
l
to
f
t
h
e Transact
i
ons
,
we assumed the liability to reimburse Sprint for the Sprint Pre-Closing Financing Amount. We were required to pa
y
$
213.0 million, plus related interest of
$
4.5 million, to Sprint in cash on the first business day after the Closing, with
th
e rema
i
n
d
er a
dd
e
d
as t
h
e Spr
i
nt Tranc
h
eun
d
er t
h
e Amen
d
e
d
Cre
di
tA
g
reement
f
or our Sen
i
or Term Loan Fac
ili
t
y
i
n the amount of $179.2 million. From time to time, other related parties ma
y
have held debt under our Senior Ter
m
Loan Fac
ili
ty, an
d
as
d
e
b
t
h
o
ld
ers, wou
ld h
ave
b
een ent
i
t
l
e
d
to rece
i
ve
i
nterest payments
f
rom us un
d
er t
h
e Amen
d
e
d
Cre
di
t Agreement. Dur
i
ng 2009, we repa
id
our Sen
i
or Term Loan Fac
ili
ty w
i
t
h
procee
d
s
f
rom our Sen
i
or Secure
d
Notes and Rollover Notes.
117
CLEARWIRE CORPORATION AND
S
UB
S
IDIARIE
S
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(
Continued
)