Clearwire 2009 Annual Report Download - page 67

We acqu
i
re
d
our
d
e
b
t as a resu
l
to
f
t
h
e acqu
i
s
i
t
i
on o
f
O
ld
C
l
earw
i
re on Novem
b
er 28, 2008; t
h
ere
f
ore we
did
n
ot incur an
y
interest expense durin
g
2007
.
Other Income (Expense), Ne
t
(
In thousands, except percenta
g
es) 2009 2008 2007
P
ercenta
g
e
Change 2009
V
ersus 2008
P
ercenta
ge
C
hange 2008
V
ersus 2007
Y
ear
E
n
d
e
d
D
ecember 31
,
O
t
h
er-t
h
an-temporar
yi
mpa
i
rment
l
os
s
o
n
i
n
v
estment
s
................
$
(10,015) $(17,036) $ — 41.2% N/M
Loss on un
d
es
ig
nate
d
swap contracts
,
net.........................
(6
,97
6) (6
,072
)
— 14.9% N/M
Ga
i
non
d
e
b
text
i
ngu
i
s
h
ment
.......
8,
252 — — N/M N/M
O
the
r
........................
(
1,27
5)
900 4,022
(
241.8
)
%
(
77.6
)
%
Tota
l
.........................
$
(10,014) $(22,208) $4,022 54.9% (652.2)
%
D
uring 2009, we recorded an other-than-temporary impairment loss of
$
10.0 million on our auction rate
s
ecur
i
t
i
es. Dur
i
n
g
t
h
e
y
ear en
d
e
d
Decem
b
er 31, 2008, we
i
ncurre
d
ot
h
er-t
h
an-temporar
yi
mpa
i
rment
l
osses o
f
$17.0 million related to these securities. We ac
q
uired our auction rate securities as a result of the ac
q
uisition of Old
Clearwire on November 28, 2008; therefore we did not incur any other-than-temporary impairment losses during
200
7.
D
uring November 2009, we recorded a gain of $8.3 million in connection with the retirement of our Senio
r
Term Loan Facility and terminated the swap contracts
.
I
ncome T
a
x Provisio
n
(
In thousands, except percentages
)
2009 2008 2007
P
ercenta
g
e
Change 2009
Versus
2008
P
ercenta
ge
C
hange 2008
Versus
200
7
Y
ear Ende
d
D
ecember
31,
I
ncome tax
p
rovisio
n
.............
.
$
(
712
)
$
(
61,607
)
$
(
16,362
)
98.8%
(
276.5
)
%
Th
e
d
ecrease
i
nt
h
e
i
ncome tax prov
i
s
i
on
f
or 2009 compare
d
to 2008
i
spr
i
mar
ily d
ue to t
h
ec
h
an
g
e
i
n our
deferred tax position as a result of the Closing. Prior to the Closing, the income tax provision was primarily due to
i
ncrease
dd
e
f
erre
dli
a
bili
t
i
es
f
rom a
ddi
t
i
ona
l
amort
i
zat
i
on ta
k
en
f
or
f
e
d
era
li
ncome tax purposes
b
yt
h
e Spr
i
n
t
Wi
MAX Bus
i
ness on certa
i
n
i
n
d
e
fi
n
i
te-
li
ve
dli
cense
d
spectrum. As a resu
l
to
f
t
h
eC
l
os
i
n
g
,t
h
eon
ly
Un
i
te
d
State
s
t
emporar
y
difference is the basis difference associated with our investment in Clearwire Communications, a
p
artners
hi
p
f
or Un
i
te
d
States
i
ncome tax purposes.
T
he increase in the income tax provision for 2008 compared to 2007 is primaril
y
due to increased deferred ta
x
li
a
bili
t
i
es
f
rom a
ddi
t
i
ona
l
amort
i
zat
i
on ta
k
en
f
or
f
e
d
era
li
ncome tax purposes
b
yt
h
e Spr
i
nt W
i
MAX Bus
i
ness on
c
erta
i
n
i
n
d
e
fi
n
i
te-
li
ve
dli
cense
d
spectrum pr
i
or to t
h
eC
l
os
i
ng. T
h
e ongo
i
ng
diff
erence
b
etween
b
oo
k
an
d
tax
amortization resulted in an additional deferred income tax provision of $61.4 million in 2008 prior to the Closin
g
.
We pro
j
ect t
h
at t
h
e partners
hi
pw
ill h
ave a
ddi
t
i
ona
ll
osses
i
nt
h
eUn
i
te
d
States
i
n 2010. We
d
o not
b
e
li
eve suc
h
losses will be realizable at a more likel
y
than not level and accordin
g
l
y
, the pro
j
ected additional losses allocated t
o
us
i
n 2010 w
ill
not resu
l
t
i
naUn
i
te
d
States tax prov
i
s
i
on or
b
ene
fi
t
f
or 2010
.
Non-contro
ll
ing Interests in Net Loss o
f
Conso
l
i
d
ate
d
Su
b
si
d
iaries
(
In thousands, except percentages
)
2009 2008 200
7
P
ercenta
g
e
Change 2009
Versus
2008
P
ercenta
ge
C
hange 2008
Versus
200
7
Year Ended
December
31
,
Non-controlling interests in net loss of
conso
lid
ate
d
su
b
s
idi
ar
i
es
.
.........
$
928
,
264
$
159
,
721
$
— 481.2% N/
M
5
7