Clearwire 2009 Annual Report Download - page 52

Cl
ear
wi
re
C
ommun
i
cat
i
ons an
d
assoc
i
ate
dwi
t
h
t
h
e trans
f
erre
dCl
ear
wi
re
C
ommun
i
cat
i
ons
Cl
ass B
C
ommon
Interests, and an
y
Section 704(c) consequences associated with that built-in
g
ain, and (2) in the case of an
y
transfer,
any built-in gain arising after the formation of Clearwire Communications and associated with the transferre
d
C
l
earw
i
re Commun
i
cat
i
ons C
l
ass B Common Interests. Sect
i
on 384 o
f
t
h
eCo
d
e may
li
m
i
tt
h
ea
bili
ty o
f
C
l
earw
i
r
e
t
o use its NOLs arisin
g
before the holdin
g
compan
y
exchan
g
e to offset an
y
built-in
g
ain of Sprint or an Investor t
o
w
hi
c
h
C
l
earw
i
re succee
d
s
i
n suc
h
an exc
h
ange. Accor
di
ng
l
y, C
l
earw
i
re may
i
ncur a mater
i
a
lli
a
bili
ty
f
or taxes as a
r
esu
l
to
f
a
h
o
ldi
ng company exc
h
ange, even
if i
t
h
as su
b
stant
i
a
l
NOLs. C
l
earw
i
re Commun
i
cat
i
ons
i
s requ
i
re
d
t
o
m
a
k
e
di
str
ib
ut
i
ons to C
l
earw
i
re
i
n amounts necessar
y
to pa
y
a
ll
taxes reasona
bly d
eterm
i
ne
dby
C
l
earw
i
re to
be
p
ayable with respect to its distributive share of the taxable income of Clearwire Communications, after taking int
o
account the NOL deductions and other tax benefits reasonably expected to be available to Clearwire. See th
e
s
ect
i
ons t
i
t
l
e
d
“R
i
s
k
Factors — Man
d
ator
y
tax
di
str
ib
ut
i
ons ma
yd
epr
i
ve C
l
earw
i
re Commun
i
cat
i
ons o
ff
un
d
st
h
a
t
are required in its business” be
g
innin
g
on pa
g
e 38 and “Certain Relationships and Related Transactions, an
d
D
irector Independence” beginning on page 127 of this report
.
ITEM 1B
.
Unreso
l
ve
d
Sta
ff
Comments
Th
ere were no unreso
l
ve
d
sta
ff
comments as o
f
Decem
b
er 31
,
2009.
ITEM 2
.
Propert
i
es
O
ur execut
i
ve o
ffi
ces are current
l
y
l
ocate
di
nt
h
eK
i
r
kl
an
d
,Was
hi
ngton area, w
h
ere we
l
ease approx
i
mate
l
y
1
8
5
,000 square feet of space. The leases for our executive offices expire at various dates throu
g
h 2019
.
We
b
e
li
eve t
h
at su
b
stant
i
a
lly
a
ll
o
f
our propert
y
an
d
equ
i
pment
i
s
i
n
g
oo
d
con
di
t
i
on, su
bj
ect to norma
l
wear
an
d
tear. We
b
e
li
eve t
h
at our current
f
ac
ili
t
i
es
h
ave su
ffi
c
i
ent capac
i
t
y
to meet t
h
e pro
j
ecte
d
nee
d
so
f
our
b
us
i
nes
s
for the next 12 months
.
T
he followin
g
table lists our si
g
nificant leased properties and the inside square foota
g
e of those properties:
Cit
y
, State (Function
)
App
roximate
S
iz
e
(S
q
uare Feet
)
Ki
r
kl
an
d
, WA area (
h
ea
dq
uarters an
d
a
d
m
i
n
i
strat
i
ve
)
.......................
1
85,000
H
ern
d
on, VA
(
a
d
m
i
n
i
strat
i
ve an
d
W
i
MAX
l
a
b)
............................
130,000
Las Vegas, NV (ca
ll
center)
..........................................
55
,
000
H
en
d
erson, NV (a
d
m
i
n
i
strat
i
ve an
d
ware
h
ouse space
)
......................
.
53
,
000
Milton, FL
(
call center
)
.............................................
4
0
,
000
We lease additional office space in man
y
of our current and planned markets. We also lease approximatel
y
12
0
r
eta
il
stores an
d
ma
ll ki
os
k
s. Our reta
il
stores, exc
l
u
di
ng ma
ll ki
os
k
s, range
i
ns
i
ze
f
rom approx
i
mate
l
y 480 squar
e
f
eet to 2,800 square
f
eet, w
i
t
hl
eases
h
av
i
ng terms typ
i
ca
ll
y
f
rom t
h
ree to seven years. Internat
i
ona
ll
y, as o
f
D
ecember 31, 2009, we also have offices in Dublin, Ireland; Bucharest, Romania; Brussels, Bel
g
ium; Madrid,
S
pa
i
nan
d
Warsaw, Po
l
an
d.
Th
e Hern
d
on, VA
l
ocat
i
on
h
as su
b
-
l
et a sma
ll
port
i
on o
f
t
h
e
f
ac
ili
t
y
to certa
i
no
fi
ts
k
e
y
W
i
MAX
i
n
f
rastructure
vendors, including Intel, Motorola and Samsung, for the purpose of ensuring close collaboration on WiMAX
d
eve
l
opment w
i
t
h
t
h
ose ven
d
ors.
ITEM
3
.
L
e
g
al Proceedin
g
s
As more
f
u
ll
y
d
escr
ib
e
db
e
l
ow, we are
i
nvo
l
ve
di
navar
i
ety o
fl
awsu
i
ts, c
l
a
i
ms,
i
nvest
i
gat
i
ons an
d
procee
di
ngs
c
oncern
i
ng
i
nte
ll
ectua
l
property,
b
us
i
ness pract
i
ces, commerc
i
a
l
an
d
ot
h
er matters. We
d
eterm
i
ne w
h
et
h
er we s
h
ou
ld
accrue an estimated loss for a contin
g
enc
y
in a particular le
g
al proceedin
g
b
y
assessin
g
whether a loss is deemed
p
ro
b
a
bl
ean
d
can
b
e reasona
bl
yest
i
mate
d
. We reassess our v
i
ews on est
i
mate
dl
osses on a quarter
l
y
b
as
i
store
fl
ect t
h
e
i
mpact o
f
any
d
eve
l
opments
i
nt
h
e matters
i
nw
hi
c
h
we are
i
nvo
l
ve
d
.Lega
l
procee
di
ngs are
i
n
h
erent
l
yunpre
di
cta
bl
e, an
d
t
he matters in which we are involved often present complex le
g
al and factual issues. We vi
g
orousl
y
pursue defenses in
legal proceedings and engage in discussions where possible to resolve these matters on terms favorable to us. It is
p
oss
ibl
e,
h
owever, t
h
at our
b
us
i
ness,
fi
nanc
i
a
l
con
di
t
i
on an
d
resu
l
ts o
f
operat
i
ons
i
n
f
uture per
i
o
d
s cou
ld b
e mater
i
a
ll
y
a
ff
ecte
dbyi
ncrease
dli
t
ig
at
i
on expense, s
ig
n
ifi
cant
s
ett
l
ement costs an
d
/or un
f
avora
bl
e
d
ama
g
eawar
d
s.
42