Clearwire 2009 Annual Report Download - page 93

• Accounts paya
bl
e, w
hi
c
h
were processe
d
centra
ll
y
b
y Spr
i
nt an
d
were passe
d
to us t
h
roug
hi
ntercompan
y
accounts t
h
at were
i
nc
l
u
d
e
di
n
b
us
i
ness equ
i
ty; an
d
• Certa
i
n accrue
dli
a
bili
t
i
es, w
hi
c
h
were passe
d
t
h
rou
gh
to us t
h
rou
gh i
ntercompan
y
accounts t
h
at were
i
ncluded in business equity.
O
ur statement of cash flows prior to the Closin
g
presents the activities that were paid b
y
Sprint on our behalf.
Fi
nanc
i
ng act
i
v
i
t
i
es
i
nc
l
u
d
e
f
un
di
ng a
d
vances
f
rom Spr
i
nt, presente
d
as
b
us
i
ness equ
i
ty, s
i
nce Spr
i
nt manage
d
ou
r
fi
nanc
i
n
g
act
i
v
i
t
i
es on a centra
li
ze
db
as
i
s. Furt
h
er, t
h
e net cas
h
use
di
n operat
i
n
g
act
i
v
i
t
i
es an
d
t
h
e net cas
h
use
din
i
nvestin
g
activities for capital expenditures and acquisitions of FCC licenses and patents represent transfers of
e
xpenses or assets pa
id f
or
b
yot
h
er Spr
i
nt su
b
s
idi
ar
i
es. No cas
h
payments were ma
d
e
b
yus
f
or
i
ncome taxes o
r
i
nterest pr
i
or to t
h
eC
l
os
i
ng.
We w
ill b
e
f
ocuse
d
on expe
di
t
i
n
g
t
h
e
d
ep
l
o
y
ment o
f
t
h
e
fi
rst nat
i
onw
id
e4Gmo
bil
e
b
roa
db
an
d
networ
k
t
o
p
rovide a true mobile broadband experience for consumers, small businesses, medium and lar
g
e enterprises, publi
c
s
afety organizations and educational institutions. We expect to deploy our mobile WiMAX technology, based on the
IEEE 802.16e standard, in our planned markets usin
g
2.5 GHz FCC licenses
.
2.
S
ummary of
S
i
g
nificant Accountin
g
Policies
Th
e accompany
i
ng
fi
nanc
i
a
l
statements
h
ave
b
een prepare
di
n accor
d
ance w
i
t
h
account
i
ng pr
i
nc
i
p
l
es
g
enera
lly
accepte
di
nt
h
eUn
i
te
d
States o
f
Amer
i
ca an
d
pursuant to t
h
eru
l
es an
d
re
g
u
l
at
i
ons o
f
t
h
e Secur
i
t
i
e
s
and Exchange Commission, which we refer to as the SEC. The following is a summary of our significant accounting
p
olicies
:
P
rincip
l
es of Conso
l
i
d
atio
n
—
T
h
e conso
lid
ate
dfi
nanc
i
a
l
statements
i
nc
l
u
d
ea
ll
o
f
t
h
e assets
,li
a
bili
t
i
es an
d
r
esu
l
ts o
f
operat
i
ons o
f
our w
h
o
ll
y-owne
d
su
b
s
idi
ar
i
es, an
d
su
b
s
idi
ar
i
es we contro
l
or
i
nw
hi
c
h
we
h
ave a
c
ontrollin
g
financial interest. Investments in entities that we do not control and are not the primar
y
beneficiar
y
,bu
t
f
or w
hi
c
h
we
h
ave t
h
ea
bili
ty to exerc
i
se s
i
gn
ifi
cant
i
n
fl
uence over operat
i
ng an
dfi
nanc
i
a
l
po
li
c
i
es, are accounte
d
f
or un
d
er t
h
e equ
i
ty met
h
o
d
.A
ll i
ntercompany transact
i
ons are e
li
m
i
nate
di
n conso
lid
at
i
on
.
Non-contro
lli
n
gi
nterests on t
h
e conso
lid
ate
db
a
l
ance s
h
eets
i
nc
l
u
d
et
hi
r
d
-part
yi
nvestments
i
n ent
i
t
i
es t
h
at we
c
onso
lid
ate,
b
ut
d
o not w
h
o
lly
own. We c
l
ass
ify
our non-contro
lli
n
gi
nterests as part o
f
equ
i
t
y
an
di
nc
l
u
d
ene
t
i
ncome (loss) attributable to our non-controlling interests in net income (loss). We allocate net income (loss), othe
r
c
ompre
h
ens
i
ve
i
ncome (
l
oss) an
d
ot
h
er equ
i
t
y
transact
i
ons to our non-contro
lli
n
gi
nterests
i
n accor
d
ance w
i
t
h
t
h
e
i
r
app
li
ca
bl
e owners
hi
p percenta
g
es. We a
l
so cont
i
nue to attr
ib
ute our non-contro
lli
n
gi
nterests t
h
e
i
rs
h
are o
fl
osses
e
ven if that attribution results in a deficit non-controllin
g
interest balance
.
Rec
l
assi
f
ications — Certa
i
n rec
l
ass
ifi
cat
i
ons
h
ave
b
een ma
d
etopr
i
or per
i
o
d
amounts to con
f
orm w
i
t
h
t
he
c
urrent per
i
o
d
presentat
i
on.
U
se of Estimates — Our account
i
n
g
po
li
c
i
es requ
i
re mana
g
ement to ma
k
e comp
l
ex an
d
su
bj
ect
i
ve
j
u
dg
ments
.
By
t
h
e
i
r nature, t
h
ese
j
u
dg
ments are su
bj
ect to an
i
n
h
erent
d
e
g
ree o
f
uncerta
i
nt
y
.T
h
ese
j
u
dg
ments are
b
ase
d
on our
h
istorical experience, terms of existing contracts, observance of trends in the industry, information provided by ou
r
c
ustomers an
di
n
f
ormat
i
on ava
il
a
bl
e
f
rom ot
h
er outs
id
e sources, as appropr
i
ate. A
ddi
t
i
ona
ll
y, c
h
anges
i
n account
-
i
n
g
est
i
mates are reasona
bly lik
e
ly
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 ou
r
financial statements, the presentation of our financial condition, chan
g
es in financial condition or results o
f
operat
i
ons
.
S
i
gn
ifi
cant est
i
mates
i
n
h
erent
i
nt
h
e preparat
i
on o
f
t
h
e accompany
i
ng
fi
nanc
i
a
l
statements
i
nc
l
u
d
e:
i
mpa
i
r
-
m
ent ana
ly
s
i
so
f
spectrum
li
censes w
i
t
hi
n
d
e
fi
n
i
te
li
ves, t
h
e recovera
bili
t
y
an
dd
eterm
i
nat
i
on o
f
use
f
u
lli
ves
f
o
r
lon
g
-lived assets, which include propert
y
, plant and equipment and other intan
g
ible assets, tax valuation allow
-
ances, and share-based compensation related to equity-based awards granted.
83
CLEARWIRE CORPORATION AND
S
UB
S
IDIARIE
S
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(
Continued
)