Clearwire 2009 Annual Report Download - page 79

C
as
h
F
l
ow Ana
ly
si
s
T
he followin
g
anal
y
sis includes the sources and uses of cash for the Sprint WiMAX Business for the first
e
leven months of 2008 prior to the Closin
g
and for 2007, and the sources and uses of cash for Clearwire subsequent
t
ot
h
eC
l
os
i
ng
.
Th
e statement o
f
cas
hfl
ows
i
nc
l
u
d
es t
h
e act
i
v
i
t
i
es t
h
at were pa
id b
y Spr
i
nt on
b
e
h
a
lf
o
f
us pr
i
or to t
h
eC
l
os
i
ng.
Financin
g
activities include fundin
g
advances from Sprint throu
g
h November 28, 2008. Further, the net cash used i
n
operatin
g
activities and the net cash used in investin
g
activities for capital expenditures and acquisitions of spectru
m
li
censes an
d
patents represent trans
f
ers o
f
expenses or assets pa
id f
or
b
yot
h
er Spr
i
nt su
b
s
idi
ar
i
es.
Th
e
f
o
ll
ow
i
ng ta
bl
e presents a summary o
f
our cas
hfl
ows an
db
eg
i
nn
i
ng an
d
en
di
ng cas
hb
a
l
ances
f
or t
he
y
ears ended December 31, 2009, 2008 and 2007 (in thousands):
2009 2008 200
7
Year Ended December
31,
Net cash used in operatin
g
activities
.
...............
$
(472,484) $ (406,306) $ (339,519
)
Net cash used in investin
g
activities
................
(1,782,999) (2,24
5
,830) (683,080)
Net cas
h
prov
id
e
db
y
fi
nanc
i
ng act
i
v
i
t
i
e
s
............
2,
745
,
847 3
,
857
,
755 1
,
022
,
59
9
E
ff
ect o
ff
ore
i
gn currency exc
h
ange rates on cas
h
an
d
cas
h
equ
i
va
l
ents
.............................
1,
510 524 —
T
otal net cash flo
ws
............................
4
91
,
874 1
,
206
,
143 —
C
ash and cash equivalents at beginning of period
.
....
.
1
,
206
,
143 — —
C
ash and cash e
q
uivalents at end of
p
eriod
.
..........
$
1,698,017 $ 1,206,143 $
—
Op
erating Activitie
s
N
et cash used in operating activities was
$
472.5 million for the year ended December 31, 2009 compared to
$
406.3 million in 2008. The increase is due primaril
y
to an increase in all operatin
g
expenses, as we continue to
e
xpand and operate our business, and interest payments to service debt. This is partially offset by
$
268.1 million in
c
as
h
rece
i
ve
df
rom customers, w
hi
c
hi
ncrease
d
as we grew our su
b
scr
ib
ers an
dl
aunc
h
e
d
a
ddi
t
i
ona
l
mar
k
ets
.
N
et cash used in operatin
g
activities for the
y
ears ended December 31, 2008 and 2007 was due primaril
y
to
p
a
y
ments for operatin
g
expenses, as we continue to expand and operate our business. For the
y
ear ende
d
D
ecem
b
er 31, 2008, net cas
h
use
di
n operat
i
ng act
i
v
i
t
i
es a
l
so
i
nc
l
u
d
e
di
nterest payments to serv
i
ce
d
e
b
t. T
he
2008 net cash used is partiall
y
offset b
y
$20.2 million in cash received from customers.
Invest
i
n
g
Act
i
v
i
t
i
es
Durin
g
the
y
ear ended December 31, 2009, net cash used in investin
g
activities was $1.78 billion. The net cas
h
u
sed in investin
g
activities was due primaril
y
to $1.45 billion in cash paid for PP&E, $290.7 million in net purchases
of available-for-sale securities and
$
46.8 million in payments for acquisition of spectrum licenses and othe
r
i
ntan
gibl
es
.
Durin
g
the
y
ear ended December 31, 2008, net cash used in investin
g
activities was $2.25 billion. The net cas
h
u
sed in investin
g
activities was due primaril
y
to $1.77 billion in purchases of available-for-sale securities followin
g
the
$
3.2 billion cash investment from the Investors,
$
534.2 million in cash paid for PP&E and
$
109.3 million in
p
a
y
ments
f
or acqu
i
s
i
t
i
on o
f
spectrum
li
censes an
d
ot
h
er
i
ntan
gibl
es. T
h
ese uses o
f
cas
h
were part
i
a
lly
o
ff
set
by
$
171.8 million of cash acquired from Old Clearwire as a result of the Closing.
During the year ended December 31, 2007, net cash used in investing activities was
$
683.1 million. The net
c
ash used in investing activities is due to
$
353.6 million in payments for acquisition of spectrum licenses and other
i
ntan
g
ibles and $329.5 million in cash paid for PP&E.
69