Supplemental Financial Statement Information

Prepaid Expenses and Other.

The components of our prepaid expenses and other current assets are as follows:



	Successor Company
	June 30, 2016		December 31, 2015
	(in thousands)
Cash in escrow	$	173,392	$	6,000
Cash collateral related to performance bonds	54,433		47,450
Value-added taxes	33,554		33,467
Other prepaid expenses	23,924		11,934
Other current assets	26,835		33,683
	$	312,138	$	132,534

Property, Plant and Equipment, Net.

During the three and six months ended June 30, 2016 and 2015, we capitalized immaterial amounts of interest. The components of our property, plant and equipment, net are as follows:



	Successor Company
	June 30, 2016			December 31, 2015
	(in thousands)
Land	$	3,230		$	2,655
Building and leasehold improvements	13,956			11,765
Network equipment, communication towers and network software	613,537			492,814
Software, office equipment, furniture and fixtures and other	85,334			65,747
Less: Accumulated depreciation	(138,083		)	(59,987		)
	577,974			512,994
Construction in progress	30,582			42,029
	$	608,556		$	555,023

Intangible Assets, Net.

Our intangible assets include the following:



		Successor Company
		June 30, 2016							December 31, 2015
	Average Useful Life (Years)	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Gross Carrying Value		Accumulated Amortization			Net Carrying Value
		(in thousands)
Amortizable intangible assets:
Licenses	26	$	1,028,859	$	(39,715	)	$	989,144	$	850,818	$	(16,314	)	$	834,504
Tradename	26	38,700		(1,488		)	37,212		38,700		(744		)	37,956
Customer relationships	4	28,032		(7,008		)	21,024		23,042		(2,880		)	20,162
		$	1,095,591	$	(48,211	)	$	1,047,380	$	912,560	$	(19,938	)	$	892,622

Based on the carrying amount of our intangible assets as of June 30, 2016 and current exchange rates, we estimate amortization expense for each of the next five years ending December 31 to be as follows (in thousands):



Years	Estimated Amortization Expense
2016	$	45,080
2017	48,062
2018	48,062
2019	44,558
2020	41,054

Actual amortization expense to be reported in future periods could differ from these estimates as a result of additional acquisitions of intangibles, as well as changes in foreign currency exchange rates and other relevant factors.

Restricted Cash.

As of June 30, 2016, $173.4 million of our restricted cash was classified as prepaid expenses and other in our condensed consolidated balance sheet and the remainder was classified as other assets. As of December 31, 2015, almost all of our restricted cash was classified as other assets in our consolidated balance sheet. The components of our restricted cash are as follows:



	Successor Company
	June 30, 2016		December 31, 2015
	(in thousands)
Cash in escrow — Nextel Mexico sale	$	167,392	$	186,593
Brazil judicial deposits	80,035		54,289
Cash in escrow — Nextel Peru sale	34,360		34,353
Cash in escrow — Nextel Argentina sale	6,000		6,000
	$	287,787	$	281,235

Other Assets.

The components of our other long-term assets are as follows:



	Successor Company
	June 30, 2016		December 31, 2015
	(in thousands)
Restricted cash	$	114,395	$	275,235
Cash collateral related to performance bonds	63,662		94,236
Equity interest in Nextel Argentina	—		108,148
Other	88,665		76,622
	$	266,722	$	554,241

Accrued Expenses and Other.

The components of our accrued expenses and other are as follows:



	Successor Company
	June 30, 2016		December 31, 2015
	(in thousands)
Accrued contingencies	$	58,625	$	49,507
Network system and information technology	47,767		32,079
Payroll related items and commissions	39,321		31,734
Non-income based taxes	31,788		33,097
Capital expenditures	13,748		25,182
Other	90,812		97,259
	$	282,061	$	268,858

Accumulated Other Comprehensive Loss. As of June 30, 2016 and December 31, 2015, the tax impact on our accumulated other comprehensive loss was not material. In addition, as of June 30, 2016 and December 31, 2015, all of our accumulated other comprehensive loss represented cumulative foreign currency translation adjustment.

Supplemental Cash Flow Information.



	Successor Company			Predecessor Company
	Six Months Ended June 30,
	2016			2015
	(in thousands)
Capital expenditures
Cash paid for capital expenditures, including capitalized interest on property, plant and equipment	$	35,662		$	88,485
Change in capital expenditures accrued and unpaid or financed, including interest capitalized	(24,531		)	(19,282		)
	$	11,131		$	69,203

In connection with the completion of the sale of Nextel Argentina to Grupo Clarin in January 2016, the promissory note that was initially issued in connection with this transaction was canceled. See Note 4 for more information. Other than the cancellation of this promissory note in the first quarter of 2016, we did not have any significant non-cash investing or financing activities during the six months ended June 30, 2016.

For the six months ended June 30, 2015, we had the following non-cash investing and financing activities:


•	$2,067.7 million in Successor Company common stock that we issued in partial satisfaction of certain claims that were settled in connection with our emergence from Chapter 11 (see Note 2 for more information); and


•	a $187.5 million increase in restricted cash, which represented cash placed in escrow to secure our indemnification obligations in connection with the sale of Nextel Mexico (see Note 4 for more information).

Revenue-Based Taxes. We record certain revenue-based taxes and other excise taxes on a gross basis as a component of both service and other revenues and selling, general and administrative expenses in our condensed consolidated financial statements. For the three and six months ended June 30, 2016, we recognized $11.5 million and $25.3 million, respectively, in revenue-based taxes and other excise taxes, respectively. For the three and six months ended June 30, 2015, we recognized $18.7 million and $39.0 million, respectively, in revenue-based taxes and other excise taxes, respectively.

Diluted Net (Loss) Income Per Common Share. As presented for the three and six months ended June 30, 2016, our calculation of diluted net loss from continuing operations per common share is based on the weighted average number of common shares outstanding during those periods and does not include other potential common shares, including shares issuable upon the potential exercise of stock options under our stock-based employee compensation plans or restricted common shares issued under those plans since their effect would have been antidilutive. As presented for the three and six months ended June 30, 2015, our calculation of diluted net income from continuing operations per common share includes 0.2 million and 0.3 million restricted common shares, respectively, but does not include any other potential common shares, including shares issuable upon the potential exercise of stock options issued under our stock-based compensation plans since their effect would have been antidilutive.

For both the three and six months ended June 30, 2016, we did not include 3.6 million stock options in our calculation of diluted net loss from continuing operations per common share because their effect would have been antidilutive. For the three and six months ended June 30, 2016, we did not include 0.8 million and 0.9 million restricted common shares, respectively, in our calculation of diluted net loss from continuing operations per common share because their effect would have been antidilutive. In addition, for the three and six months ended June 30, 2015, we did not include 4.1 million and 4.8 million stock options, respectively, in our calculation of diluted net income from continuing operations per common share because their effect would have been antidilutive.