2.2.0.25falsefalse0204 - Disclosure - Property, Plant and Equipmenttruefalsefalse1falsefalseUSDfalsefalse1/1/2011 - 3/31/2011
USD ($)
$Jan-01-2011_Mar-31-2011http://www.sec.gov/CIK0001442505duration2011-01-01T00:00:002011-03-31T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDUSD$2true0us-gaap_PropertyPlantAndEquipmentAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalse3false0us-gaap_PropertyPlantAndEquipmentDisclosureTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabel1falsefalsefalse00<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
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<div align="left" style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>4. Property, Plant and Equipment</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Property, plant and equipment consisted of the following (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Useful</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>March 31,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>December 31,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Lives (Years)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2011</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="11" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Network and base station equipment
</div></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">5-15</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">3,262,237</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">3,160,790</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Customer premise equipment
</div></td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">164,413</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">147,959</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Furniture, fixtures and equipment
</div></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">3-7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">451,931</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">433,858</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Leasehold improvements
</div></td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center"> Lesser of useful life or lease term</td>
<td> </td>
<td> </td>
<td align="right">51,818</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">49,712</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Construction in progress
</div></td>
<td> </td>
<td> </td>
<td align="right">N/A</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,083,598</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,299,244</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,013,997</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,091,563</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Less: accumulated depreciation and amortization
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(783,026</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(627,029</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">4,230,971</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">4,464,534</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Three Months Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>March 31,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2011</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Supplemental information:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Capitalized interest
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">12,234</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">52,412</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Depreciation expense
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">178,482</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">70,843</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We have entered into lease arrangements related to our network construction and equipment that
meet the criteria for capital leases. At March 31, 2011 and December 31, 2010, we have recorded
capital lease assets with an original cost of $79.9 million and $73.0 million, respectively, within
Network and base station equipment.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Construction in progress is primarily composed of costs incurred during the process of
completing network projects. The balance at March 31, 2011 also includes $338.4 million of Network
and base station equipment not yet assigned to a project, $33.5 million of
Customer premise equipment, which we refer to as CPE, that we intend to lease and $68.3
million of costs related to information technology, which we refer to as IT, and other corporate
properties.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We periodically assess certain assets that have not yet been deployed in our networks,
including equipment and cell site development costs classified as construction in progress. This
assessment includes the provision for differences between recorded amounts and the results of
physical counts, which resulted in a charge of approximately $6.8 million and $5.8 million
for the three months ended March 31, 2011 and 2010, respectively. The periodic assessment also includes a
write-down of network equipment and cell site development costs whenever events
or changes in circumstances cause us to conclude that such assets are no longer needed to meet
management’s strategic network plans and will not be deployed. Any projects that no longer fit within
management’s strategic network plans were abandoned and the related costs written down, resulting in a charge of
approximately $31.1 million and $611,000 for the three months ended March 31, 2011 and 2010, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Additionally, in connection with our savings initiatives, during the first quarter of 2011, we
identified, evaluated and terminated certain tower leases, or when early termination was not
available under the terms of the lease, we advised our landlords of our intention not to renew. The
costs for projects classified as construction in progress related to leases for which we have
initiated such termination actions were written down, resulting in a charge of approximately $140.8
million for the three months ended March 31, 2011. Together with the charge resulting from our periodic assessment of
network projects described above, the total charge from Abandonment of
network projects for the three months ended March 31, 2011 and 2010 was $171.9 million and $611,000, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We incurred the following losses associated with Property, plant and equipment (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Three Months Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>March 31,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2011</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Loss from abandonment and impairment of network and other assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Abandonment of network projects
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">171,862</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">611</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Impairment of assets held by international subsidiaries <sup style="font-size: 85%; vertical-align: text-top">(1)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">30,317</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total loss from abandonment and impairment of network and other assets
</div></td>
<td> </td>
<td> </td>
<td align="right">202,179</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">611</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Charges for differences between recorded amounts and the results of physical counts and excessive and obsolete equipment<sup style="font-size: 85%; vertical-align: text-top">(2)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">6,803</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,817</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total losses on property, plant and equipment
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">208,982</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">6,428</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="7" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td>
<td>Includes impairment losses of $23.8 million on spectrum licenses and other intangible assets.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td>
<td> </td>
<td>Included in Cost of goods and services and network costs on the condensed consolidated statements of operations.</td>
</tr>
</table>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our long-lived assets, consisting of property, plant and equipment, which refer to as
PP&E, and definite-lived intangible assets such as subscriber relationships, and our spectrum
assets in the United States are combined into a single unit of account for purposes of testing
impairment, because management believes that utilizing these assets as a group represents the
highest and best use of the assets and is consistent with management’s strategy of utilizing our
spectrum licenses on an integrated basis as part of our nationwide network. Internationally, our
long-lived assets, consisting of PP&E, definite-lived intangible assets, such as subscriber
relationships, and our spectrum assets are primarily combined into a single unit of account for
each country in which we operate for purposes of testing impairment.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We review our long-lived assets to be held and used for recoverability whenever an event or
change in circumstances indicates that the carrying amount of such long-lived asset or group of
long-lived assets may not be recoverable. Due to active efforts undertaken in the first quarter to
sell certain of our International operations, management has concluded that a change in circumstances exists
requiring us to assess whether the carrying amount of our International long-lived assets is
recoverable. We perform the recoverability test of the assets’ carrying value by estimating the
undiscounted future net cash flows (cash inflows less associated cash outflows) that are directly
associated with and that are expected to arise as a direct result of the use of the assets in an
asset group. If the total of the expected undiscounted future net cash flows is less than the
carrying amount of the asset group, a loss, if any, is recognized for the difference between the
fair value of the asset group and its carrying value.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In estimating the future cash flows used to test the asset group for recoverability, we used
our own assumptions about the use of the asset group, and considered all available evidence. Based
on the undiscounted estimated future cash flow, management has determined that the carrying value
of our long-lived assets in Belgium met the recoverability test as of March 31, 2011. Management
has determined that the carrying value of our long-lived assets in Spain and Germany did not meet
the recoverability test as of March 31, 2011. An impairment test for long-lived assets, consisting
of a comparison of the fair value of the assets in the asset group with their carrying amounts, was
performed at March 31, 2011 for assets in Spain and Germany, resulting in an impairment charge of
$30.3
million recorded in Loss from abandonment and impairment of network and other assets. In
estimating the fair value of the asset group, we used our own assumptions about the use of the
asset group by a market participant and considered all available evidence.
However, as our efforts to sell our International operations progress, additional evidence may
emerge that could result in an additional charge that is required to be recorded in subsequent periods.
</div>
</div>
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<!-- Begin Block Tagged NotefalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringDisclosure of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, building and production equipment. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures. This element may be used as a single block of text to include the entire PPE disclosure, including data and tables.Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 5
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