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background: none transparent scroll repeat 0% 0%; color: #000000; font-family: Arial, Helvetica;" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr valign="top"><td><b><font class="_mt" style="font-family: 'Times New Roman', Times;">Note 2.  </font></b> </td> <td><b><font class="_mt" style="font-family: 'Times New Roman', Times;">Fair Value Measurements</font></b> </td></tr></table> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 0%; color: #000000; text-indent: 4%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">The following tables set forth the classification within the fair value hierarchy of our financial instruments measured at fair value on a recurring basis in the accompanying condensed consolidated balance sheet as of September 30, 2010 and December 31, 2009 (in thousands): </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <table style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr style="font-size: 1pt;" valign="bottom"><td width="60%"> </td> <td width="2%"> </td> <td align="right" width="1%"> </td> <td align="right" width="5%"> </td> <td align="left" width="1%"> </td> <td width="3%"> </td> <td align="right" width="1%"> </td> <td align="right" width="3%"> </td> <td align="left" width="1%"> </td> <td width="3%"> </td> <td align="right" width="1%"> </td> <td align="right" width="3%"> </td> <td align="left" width="1%"> </td> <td width="3%"> </td> <td align="right" width="1%"> </td> <td align="right" width="10%"> </td> <td align="left" width="1%"> </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="center" colspan="10"><b>Fair Value Measurements as of<br /></b></td> <td>  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="center" colspan="2">  </td> <td>  </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="center" colspan="10"><b>September 30, 2010<br /></b></td> <td>  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>Fair Value as of<br /></b></td> <td>  </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="center" colspan="10"><b>Using the Fair Value Hierarchy</b> </td> <td>  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>September 30,<br /></b></td> <td>  </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="left"><b>Financial Instruments</b> </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>Level 1</b> </td> <td>  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>Level 2</b> </td> <td>  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>Level 3</b> </td> <td>  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>2010</b> </td> <td>  </td></tr> <tr style="font-size: 1pt; line-height: 3pt;"><td>  </td></tr> <tr valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Short-term investments: </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" align="left"> <div style="margin-left: 20pt; text-indent: -10pt;"><font class="_mt" style="white-space: nowrap;">Available-for-sale</font> securities — Nextel Brazil investments </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">55,673 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">55,673 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td></tr></table> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"> </div> <div style="margin-top: 12pt; font-size: 1pt;"> </div> <table style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr style="font-size: 1pt;" valign="bottom"><td width="59%"> </td> <td width="2%"> </td> <td align="right" width="1%"> </td> <td align="right" width="6%"> </td> <td align="left" width="1%"> </td> <td width="3%"> </td> <td align="right" width="1%"> </td> <td align="right" width="3%"> </td> <td align="left" width="1%"> </td> <td width="3%"> </td> <td align="right" width="1%"> </td> <td align="right" width="3%"> </td> <td align="left" width="1%"> </td> <td width="3%"> </td> <td align="right" width="1%"> </td> <td align="right" width="10%"> </td> <td align="left" width="1%"> </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="center" colspan="10"><b>Fair Value Measurements as of<br /></b></td> <td>  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="center" colspan="2">  </td> <td>  </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="center" colspan="10"><b>December 31, 2009<br /></b></td> <td>  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>Fair Value as of<br /></b></td> <td>  </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="center" colspan="10"><b>Using the Fair Value Hierarchy</b> </td> <td>  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>December 31,<br /></b></td> <td>  </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="left"><b>Financial Instruments</b> </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>Level 1</b> </td> <td>  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>Level 2</b> </td> <td>  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>Level 3</b> </td> <td>  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>2009</b> </td> <td>  </td></tr> <tr style="font-size: 1pt; line-height: 3pt;"><td>  </td></tr> <tr valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Short-term investment: </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" align="left"> <div style="margin-left: 20pt; text-indent: -10pt;"><font class="_mt" style="white-space: nowrap;">Available-for-sale</font> securities — Nextel Brazil investments </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">116,289 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">116,289 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td></tr></table> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"> </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 0%; color: #000000; text-indent: 4%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"><font class="_mt" style="white-space: nowrap;">Available-for-sale</font> securities include short-term investments made by Nextel Brazil, primarily in Brazilian government bonds, long-term, low-risk bank certificates of deposit and Brazilian corporate debentures. We account for these securities at fair value in accordance with the FASB's authoritative guidance surrounding the accounting for investments in debt and equity securities. The fair value of the securities is based on the net asset value of the funds. In our judgment, these securities trade with sufficient daily observable market activity to support a Level 1 classification within the fair value hierarchy. </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 0%; color: #000000; text-indent: 4%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">During the nine months ended September 30, 2009, we held short-term investments in an enhanced cash fund similar to, but not in the legal form of, a money market fund that invested primarily in asset-backed securities. During the first nine months of 2009, we received $43.7 million in distributions and recorded a pre-tax unrealized gain of $2.0 million in accumulated other comprehensive income due to a slight increase in the net asset value of the fund from December 31, 2008. This fund was liquidated in December 2009. As a result, during the nine months ended September 30, 2010, we had no activity with respect to assets or liabilities measured at fair value on a recurring basis using Level 3 inputs. The following table summarizes the changes in fair value of our Level 3 financial instruments measured at fair value on a recurring basis for the nine and three months ended September 30, 2009 (in thousands): </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <table style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr style="font-size: 1pt;" valign="bottom"><td width="62%"> </td> <td width="2%"> </td> <td align="right" width="1%"> </td> <td align="right" width="14%"> </td> <td align="left" width="1%"> </td> <td width="3%"> </td> <td align="right" width="1%"> </td> <td align="right" width="15%"> </td> <td align="left" width="1%"> </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>Nine Months Ended<br /></b></td> <td>  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>Three Months Ended<br /></b></td> <td>  </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center">  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>September 30, 2009</b> </td> <td>  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>September 30, 2009</b> </td> <td>  </td></tr> <tr style="font-size: 1pt; line-height: 3pt;"><td>  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Beginning balance </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">53,160 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">34,815 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Principal distributions </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(43,727 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(23,355 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Unrealized gain, included in other comprehensive income </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">1,994 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">150 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Realized gain on distributions, included in net income </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">421 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">238 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Ending balance </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">11,848 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">11,848 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td></tr></table> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"> </div> <div style="margin-top: 12pt; font-size: 1pt;"> </div> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 2%; color: #000000; margin-right: 0%; font-family: Arial, Helvetica;" align="left"><b><i><font class="_mt" style="font-family: 'Times New Roman', Times;">Other Financial Instruments.</font></i></b> </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 0%; color: #000000; text-indent: 4%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">We estimate the fair value of our financial instruments other than our <font class="_mt" style="white-space: nowrap;">available-for-sale</font> securities, including cash and cash equivalents, <font class="_mt" style="white-space: nowrap;">held-to-maturity</font> investments, accounts receivable, accounts payable, derivative instruments and debt. The carrying value of cash and cash equivalents, accounts receivable, accounts payable and short- </div></div></div></div></div> <div style="margin-left: 6%; width: 87%;"> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">term borrowings contained in the condensed consolidated balance sheets approximate their fair values due to the short-term nature of these instruments. The fair values of our derivative instruments are immaterial. </div> <div style="margin-top: 12pt; font-size: 1pt;"> </div> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 2%; color: #000000; margin-right: 0%; font-family: Arial, Helvetica;" align="left"><b><i><font class="_mt" style="font-family: 'Times New Roman', Times;"><font class="_mt" style="white-space: nowrap;">Held-to-Maturity</font> Investments.</font></i></b> </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 0%; color: #000000; text-indent: 4%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">In the second quarter of 2010, we invested some of our cash holdings in certain securities that we intend to hold to maturity. These <font class="_mt" style="white-space: nowrap;">held-to-maturity</font> securities include investments in U.S. treasury securities, as well as investments in corporate bonds, which consist of securities issued by U.S. government agencies and corporate debt securities backed by the U.S. government with maturities ranging from 3 to 18 months. We account for <font class="_mt" style="white-space: nowrap;">held-to-maturity</font> securities at amortized cost. We determined the fair value of our <font class="_mt" style="white-space: nowrap;">held-to-maturity</font> investments in U.S. treasury securities based on quoted market prices for the individual instruments. In our judgment, these securities trade with sufficient daily observable market activity to support a Level 1 classification within the fair value hierarchy. We determined the fair value of our investments in corporate bonds based on reported trade data in a broker dealer market for the individual instruments. We consider these measurements to be Level 2 in the fair value hierarchy. The gross unrecognized holding gains and losses as of September 30, 2010 were immaterial. The carrying amounts and estimated fair values of our <font class="_mt" style="white-space: nowrap;">held-to-maturity</font> investments as of September 30, 2010 are as follows: </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <table style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr style="font-size: 1pt;" valign="bottom"><td width="79%"> </td> <td width="2%"> </td> <td align="right" width="1%"> </td> <td align="right" width="6%"> </td> <td align="left" width="1%"> </td> <td width="3%"> </td> <td align="right" width="1%"> </td> <td align="right" width="6%"> </td> <td align="left" width="1%"> </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center">  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" align="center" colspan="6"><b>September 30, 2010</b> </td> <td>  </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>Carrying<br /></b></td> <td>  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>Estimated<br /></b></td> <td>  </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center">  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>Amount</b> </td> <td>  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>Fair Value</b> </td> <td>  </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center">  </td> <td>  </td> <td valign="bottom" align="center" colspan="6"><b>(in thousands)</b> </td> <td>  </td></tr> <tr style="font-size: 1pt; line-height: 3pt;"><td>  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Short-term investments: </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" align="left"> <div style="margin-left: 20pt; text-indent: -10pt;"><font class="_mt" style="white-space: nowrap;">Held-to-maturity</font> securities — U.S. Treasuries </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">463,215 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">464,793 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="margin-left: 20pt; text-indent: -10pt;"><font class="_mt" style="white-space: nowrap;">Held-to-maturity</font> securities — corporate bonds </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">40,229 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">40,377 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td></tr> <tr valign="bottom"><td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">503,444 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">505,170 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Long-term investments: </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" align="left"> <div style="margin-left: 20pt; text-indent: -10pt;"><font class="_mt" style="white-space: nowrap;">Held-to-maturity</font> securities — corporate bonds </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">124,962 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">125,395 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">628,406 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">630,565 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td></tr></table> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"> </div> <div style="margin-top: 12pt; font-size: 1pt;"> </div> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 2%; color: #000000; margin-right: 0%; font-family: Arial, Helvetica;" align="left"><b><i><font class="_mt" style="font-family: 'Times New Roman', Times;">Long-Term Debt Instruments.</font></i></b> </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 0%; color: #000000; text-indent: 4%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">The carrying amounts and estimated fair values of our long-term debt instruments as of September 30, 2010 and December 31, 2009 are as follows: </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <table style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr style="font-size: 1pt;" valign="bottom"><td width="49%"> </td> <td width="2%"> </td> <td align="right" width="1%"> </td> <td align="right" width="8%"> </td> <td align="left" width="1%"> </td> <td width="3%"> </td> <td align="right" width="1%"> </td> <td align="right" width="8%"> </td> <td align="left" width="1%"> </td> <td width="3%"> </td> <td align="right" width="1%"> </td> <td align="right" width="8%"> </td> <td align="left" width="1%"> </td> <td width="3%"> </td> <td align="right" width="1%"> </td> <td align="right" width="8%"> </td> <td align="left" width="1%"> </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center">  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" align="center" colspan="6"><b>September 30, 2010</b> </td> <td>  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" align="center" colspan="6"><b>December 31, 2009</b> </td> <td>  </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>Carrying<br /></b></td> <td>  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>Estimated<br /></b></td> <td>  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>Carrying<br /></b></td> <td>  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>Estimated<br /></b></td> <td>  </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center">  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>Amount</b> </td> <td>  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>Fair Value</b> </td> <td>  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>Amount</b> </td> <td>  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="center" colspan="2"><b>Fair Value</b> </td> <td>  </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center">  </td> <td>  </td> <td valign="bottom" align="center" colspan="14"><b>(in thousands)</b> </td> <td>  </td></tr> <tr style="font-size: 1pt; line-height: 3pt;"><td>  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Senior notes </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">1,278,919 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">1,475,500 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">1,277,207 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">1,312,165 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Convertible notes </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">1,033,836 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">1,068,375 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">1,440,040 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">1,447,655 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Syndicated loan facilities </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">435,301 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">426,724 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">416,081 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">403,079 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Other </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">185,046 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">186,561 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">157,164 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">158,825 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">2,933,102 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">3,157,160 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">3,290,492 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">3,321,724 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td></tr></table> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"> </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 0%; color: #000000; text-indent: 4%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">We estimated the fair values of our senior notes using quoted market prices in a broker dealer market and the fair values of our convertible notes using quoted prices in a traded exchange market, which may be adjusted for certain factors such as historical trading levels and market data for our senior notes, credit default spreads, stock volatility assumptions with respect to our convertible notes and other corroborating market or internally generated data. Because our fair value measurements include assumptions based on market data, corroborating market data and some broker internally generated information, we consider these estimates Level 2 in the fair value hierarchy.</div></div> <div style="margin-left: 6%; width: 87%;"> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 0%; color: #000000; text-indent: 4%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">We estimated the fair values of our syndicated loan facilities using primarily Level 3 inputs such as U.S. Treasury yield curves, prices of comparable bonds, LIBOR and zero-coupon yield curves, U.S. treasury bond rates and credit spreads on comparable publicly traded bonds. </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 0%; color: #000000; text-indent: 4%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">Other debt consists primarily of Brazilian credit paper and import financing agreements. We estimated the fair value of the Brazilian credit paper utilizing primarily Level 3 inputs such as U.S. treasury security yield curves, prices of comparable bonds, LIBOR and zero-coupon yield curves, Treasury bond rates and credit spreads on comparable publicly traded bonds. We believe that the fair value of our short-term, import financing agreements approximate their carrying value primarily because of the short maturities of the agreements prior to realization and consider these measurements to be Level 3 in the fair value hierarchy.</div></div> </div> Note 2.   Fair Value Measurements   The following tables set forth the classification within the fair value hierarchy of our financial false false false us-types:textBlockItemType textblock This item represents the complete disclosure regarding the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the Company is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risk is are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15B -Subparagraph a, b Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 3, 10, 14, 15 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44A, 44B Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32, 33, 34 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15C, 15D Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15A -Subparagraph a-d Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 17-22, 27, 28 false 1 2 false UnKnown UnKnown UnKnown false true