Clearwire 2009 Annual Report Download - page 59

t
o reac
h
up to 120 m
illi
on MHz-POPs
by
t
h
een
d
o
f
2010 an
dl
aunc
h
our 4G mo
bil
e
b
roa
db
an
d
networ
ki
n severa
l
n
ew markets durin
g
2010, includin
g
New York, Boston, Washin
g
ton D.C., Houston, and the San Francisco Ba
y
A
rea. Our actua
l
networ
k
coverage
b
yt
h
een
d
o
f
2010 w
ill l
arge
l
y
b
e
d
eterm
i
ne
db
y our a
bili
ty to success
f
u
ll
y
m
anage ongo
i
ng
d
eve
l
opment act
i
v
i
t
i
es an
d
our per
f
ormance
i
n our
l
aunc
h
e
d
mar
k
ets
.
B
usiness
S
egments
Operat
i
ng segments are
d
e
fi
ne
d
as components o
f
an enterpr
i
se a
b
out w
hi
c
h
separate
fi
nanc
i
a
li
n
f
ormat
i
on
i
s
available that is evaluated re
g
ularl
y
b
y
the chief operatin
g
decision maker, which we refer to as the CODM, in
decidin
g
how to allocate resources and in assessin
g
performance. Operatin
g
se
g
ments can be a
gg
re
g
ated fo
r
s
egment report
i
ng purposes so
l
ong as certa
i
n aggregat
i
on cr
i
ter
i
a are met. We
d
e
fi
ne t
h
e CODM as our C
hi
e
f
Execut
i
ve O
ffi
cer. As our
b
us
i
ness cont
i
nues to mature, we assess
h
ow we v
i
ew an
d
o
p
erate our
b
us
i
ness. Base
d
o
n
t
he nature of our operations, we market a product that is basicall
y
the same product across our United States an
d
i
nternat
i
ona
l
mar
k
ets. Our CODM assesses an
d
rev
i
ews t
h
e Company’s per
f
ormance an
d
ma
k
es resource a
ll
ocat
i
o
n
d
ec
i
s
i
ons at t
h
e
d
omest
i
can
di
nternat
i
ona
ll
eve
l
s. For t
h
e
y
ears en
d
e
d
Decem
b
er 31, 2009 an
d
2008, we
h
av
e
id
ent
ifi
e
d
two reporta
bl
ese
g
ments: t
h
eUn
i
te
d
States an
d
t
h
e Internat
i
ona
lb
us
i
ness. In 2007, we on
ly h
a
d
on
e
r
eportable business segment: the United States, as we had no international operations prior to the completion of th
e
Transact
i
ons on Novem
b
er 28, 2008, w
h
en O
ld
C
l
earw
i
re an
d
t
h
e Spr
i
nt W
i
MAX
b
us
i
ness com
bi
ne
d
t
h
e
i
rnext
g
enerat
i
on w
i
re
l
ess
b
roa
db
an
db
us
i
nesses to
f
orm C
l
earw
i
re
.
C
ritical Accounting Policies and Estimate
s
Our
di
scuss
i
on an
d
ana
ly
s
i
so
f
our
fi
nanc
i
a
l
con
di
t
i
on an
d
resu
l
ts o
f
operat
i
ons are
b
ase
d
upon ou
r
c
onsolidated financial statements, which have been
p
re
p
ared in accordance with United States GAAP. Th
e
p
reparation of these consolidated financial statements requires us to make estimates and judgments that affec
t
th
e reporte
d
amounts o
f
assets,
li
a
bili
t
i
es, revenues an
d
expenses, an
d
re
l
ate
ddi
sc
l
osure o
f
cont
i
ngent assets an
d
liabilities. On an on
g
oin
g
basis, we evaluate our estimates used, includin
g
those related to lon
g
-lived assets and
i
ntan
g
ible assets, includin
g
spectrum, share-based compensation, and deferred tax asset valuation allowance
.
Our account
i
ng po
li
c
i
es requ
i
re management to ma
k
e comp
l
ex an
d
su
bj
ect
i
ve
j
u
d
gments. By t
h
e
i
r nature
,
th
ese
j
u
d
gments are su
bj
ect to an
i
n
h
erent
d
egree o
f
uncerta
i
nty. T
h
ese
j
u
d
gments are
b
ase
d
on our
hi
stor
i
ca
l
e
xper
i
ence, terms o
f
ex
i
st
i
n
g
contracts, o
b
servance o
f
tren
d
s
i
nt
h
e
i
n
d
ustr
y
,
i
n
f
ormat
i
on prov
id
e
dby
our customer
s
and information available from other outside sources, as appropriate. Additionally, changes in accounting estimate
s
are reasona
bl
y
lik
e
l
y to occur
f
rom per
i
o
d
to per
i
o
d
.T
h
ese
f
actors cou
ld h
ave a mater
i
a
li
mpact on our
fi
nanc
i
a
l
s
tatements, t
h
e presentat
i
on o
f
our
fi
nanc
i
a
l
con
di
t
i
on, c
h
an
g
es
i
n
fi
nanc
i
a
l
con
di
t
i
on or resu
l
ts o
f
operat
i
ons
.
We
h
ave
id
ent
ifi
e
d
t
h
e
f
o
ll
ow
i
n
g
account
i
n
g
po
li
c
i
es an
d
est
i
mates t
h
at
i
nvo
l
ve a
high
er
d
e
g
ree o
fj
u
dg
ment o
r
c
omplexit
y
and that we believe are ke
y
to an understandin
g
of our financial statements: spectrum licenses
;
i
mpa
i
rments o
fl
ong-
li
ve
d
assets; s
h
are-
b
ase
d
compensat
i
on; account
i
ng
f
or property, p
l
ant & equ
i
pment; an
d
t
he
deferred tax asset valuation allowance.
S
pectrum License
s
We
h
ave t
h
ree types o
f
arrangements
f
or spectrum
li
censes: owne
d
spectrum
li
censes w
i
t
hi
n
d
e
fi
n
i
te
li
ves,
owned s
p
ectrum licenses with definite lives and s
p
ectrum leases. While owned s
p
ectrum licenses in the
U
nited States are issued for a fixed time, renewals of these licenses have occurred routinel
y
and at nominal cost
.
Moreover, management
h
as
d
eterm
i
ne
d
t
h
at t
h
ere are current
l
yno
l
ega
l
, regu
l
atory, contractua
l
, compet
i
t
i
ve,
e
conomic or other factors that limit the useful lives of our owned s
p
ectrum licenses and therefore, the licenses are
accounted for as intan
g
ible assets with indefinite lives. Chan
g
es in these factors ma
y
have a si
g
nificant effect on our
assessment o
f
t
h
e use
f
u
lli
ves o
f
our owne
d
spectrum
li
censes
.
49
CLEARWIRE CORPORATION AND
S
UB
S
IDIARIE
S
MANA
G
EMENT’
S
DI
SCUSS
I
O
N AND ANALY
S
I
SO
F FINAN
C
IAL
CO
NDITI
O
N
A
ND RESULTS OF OPERATIONS —
(
Continued
)