Clearwire 2009 Annual Report Download - page 94

S
u
b
sequent Events —
W
eeva
l
uate
d
su
b
sequent events occurr
i
ng t
h
roug
h
t
h
e
d
ate t
h
e
fi
nanc
i
a
l
statements
w
ere
i
ssue
d.
C
as
h
an
d
Cas
h
Equiva
l
ent
s
—
Cas
h
equ
i
va
l
ents cons
i
st o
f
money mar
k
et mutua
lf
un
d
san
dhi
g
hl
y
li
qu
id
s
hort-term investments with ori
g
inal maturities of three months or less. Cash equivalents are stated at cost, whic
h
approximates market value. Cash and cash equivalents exclude cash that is contractually restricted for operationa
l
purposes. We ma
i
nta
i
n cas
h
an
d
cas
h
equ
i
va
l
ent
b
a
l
ances w
i
t
hfi
nanc
i
a
li
nst
i
tut
i
ons t
h
at excee
df
e
d
era
ll
y
i
nsure
d
li
m
i
ts. We
h
ave not exper
i
ence
d
an
yl
osses re
l
ate
d
to t
h
ese
b
a
l
ances, an
d
mana
g
ement
b
e
li
eves t
h
e cre
di
tr
i
s
k
related to these balances to be minimal.
Restricted
C
ash — Restricted cash consists primaril
y
of amounts we have set aside to satisf
y
certai
n
c
ontractual obligations and is classified as a current or noncurrent asset based on its designated purpose. The
m
a
j
or
i
t
y
o
f
t
hi
s restr
i
cte
d
cas
h
re
l
ates to outstan
di
n
gl
etters o
f
cre
di
t
.
I
nvestments
—
We
h
ave an
i
nvestment port
f
o
li
o compr
i
se
d
o
f
U.S. Treasur
i
es an
d
ot
h
er
d
e
b
t secur
i
t
i
es. T
he
value of these securities is sub
j
ect to market and credit volatilit
y
durin
g
the period the investments are held and until
their sale or maturit
y
. We classif
y
marketable debt securities as available-for-sale investments and these securities
are state
d
at t
h
e
i
r est
i
mate
df
a
i
rva
l
ue. Our
i
nvestments t
h
at are ava
il
a
bl
e
f
or current operat
i
ons are recor
d
e
d
a
s
s
hort-term investments when the ori
g
inal maturities are
g
reater than three months but remainin
g
maturities are less
than one
y
ear. Our investments with maturities of more than one
y
ear are recorded as lon
g
-term investments.
U
nrea
li
ze
d
ga
i
ns an
dl
osses are recor
d
e
d
w
i
t
hi
n accumu
l
ate
d
ot
h
er compre
h
ens
i
ve
i
ncome (
l
oss). Rea
li
ze
d
ga
i
n
s
an
dl
osses are measure
d
an
d
rec
l
ass
ifi
e
df
rom accumu
l
ate
d
ot
h
er com
p
re
h
ens
i
ve
i
ncome (
l
oss) on t
h
e
b
as
i
so
f
t
he
sp
ecific identification method
.
We reco
g
n
i
ze rea
li
ze
dl
osses w
h
en
d
ec
li
nes
i
nt
h
e
f
a
i
rva
l
ue o
f
our
i
nvestments
b
e
l
ow t
h
e
i
r cost
b
as
i
s are
judged to be other-than-temporary. In determining whether a decline in fair value is other-than-temporary, we
c
ons
id
er var
i
ous
f
actors
i
nc
l
u
di
ng mar
k
et pr
i
ce (w
h
en ava
il
a
bl
e),
i
nvestment rat
i
ngs, t
h
e
fi
nanc
i
a
l
con
di
t
i
on an
d
n
ear-term prospects o
f
t
h
e
i
ssuer, t
h
e
l
en
g
t
h
o
f
t
i
me an
d
t
h
e extent to w
hi
c
h
t
h
e
f
a
i
rva
l
ue
h
as
b
een
l
ess t
h
an t
h
e cost
basis, and our intent and abilit
y
to hold the investment until maturit
y
or for a period of time sufficient to allow fo
r
any ant
i
c
i
pate
d
recovery
i
n mar
k
et va
l
ue. We ma
k
es
i
gn
ifi
cant
j
u
d
gments
i
n cons
id
er
i
ng t
h
ese
f
actors. I
fi
t
i
s
j
u
d
ge
d
t
h
at a
d
ec
li
ne
i
n
f
a
i
rva
l
ue
i
sot
h
er-t
h
an-temporary, a rea
li
ze
dl
oss equa
l
to t
h
e
d
ec
li
ne
i
sre
fl
ecte
di
nt
h
e
c
onsolidated statement of o
p
erations, and a new cost basis in the investment is established.
We account for certain of our investments usin
g
the equit
y
method based on our ownership interest and ou
r
abilit
y
to exercise si
g
nificant influence. Accordin
g
l
y
, we record our investment initiall
y
at cost and we ad
j
ust the
c
arry
i
ng amount o
f
t
h
e
i
nvestment to recogn
i
ze our s
h
are o
f
t
h
e earn
i
ngs or
l
osses o
f
t
h
e
i
nvestee eac
h
report
i
n
g
p
er
i
o
d
. We cease to reco
g
n
i
ze
i
nvestee
l
osses w
h
en our
i
nvestment
b
as
i
s
i
s zero.
Fair Va
l
ue Measurement
s
—
Fa
i
rva
l
ue
i
st
h
e
p
r
i
ce t
h
at wou
ld b
e rece
i
ve
d
to se
ll
an asset or
p
a
id
to trans
f
er
a
liabilit
y
in an orderl
y
transaction between market participants at the measurement date. In determinin
g
fair value
,
we use various methods including market, cost and income approaches. Based on these approaches, we utilize
c
erta
i
n assumpt
i
ons t
h
at mar
k
et part
i
c
i
pants wou
ld
use
i
npr
i
c
i
n
g
t
h
e asset or
li
a
bili
t
y
,
i
nc
l
u
di
n
g
assumpt
i
ons a
b
out
ri
s
k
. Base
d
on t
h
eo
b
serva
bili
t
y
o
f
t
h
e
i
nputs use
di
nt
h
eva
l
uat
i
on tec
h
n
i
ques, we are requ
i
re
d
to prov
id
et
he
followin
g
information accordin
g
to the fair value hierarch
y
. The fair value hierarch
y
ranks the qualit
y
and reliabilit
y
o
f
t
h
e
i
n
f
ormat
i
on use
d
to
d
eterm
i
ne
f
a
i
r
v
a
l
ues. F
i
nanc
i
a
l
assets an
dfi
nanc
i
a
lli
a
bili
t
i
es carr
i
e
d
at
f
a
i
r
v
a
l
ue
will b
e
cl
ass
ifi
e
d
an
ddi
sc
l
ose
di
n one o
f
t
h
e
f
o
ll
ow
i
n
g
t
h
ree cate
g
or
i
es
:
L
eve
l
1: Quote
d
mar
k
et pr
i
ces
i
n act
i
ve mar
k
ets
f
or
id
ent
i
ca
l
assets or
li
a
bili
t
i
es
L
eve
l
2: O
b
serva
bl
e mar
k
et
b
ase
di
nputs or uno
b
serva
bl
e
i
nputs t
h
at are corro
b
orate
db
y mar
k
et
d
at
a
L
eve
l
3: Uno
b
serva
bl
e
i
nputs t
h
at are not corro
b
orate
db
y mar
k
et
d
at
a
84
CLEARWIRE CORPORATION AND
S
UB
S
IDIARIE
S
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(
Continued
)