XML 46 R26.htm IDEA: XBRL DOCUMENT v2.4.0.6
Sprint Nextel Asset Exchange
12 Months Ended
Dec. 31, 2011
Sprint Nextel Asset Exchange [Abstract]  
Sprint Nextel Asset Exchange

NOTE 19

Sprint Nextel Asset Exchange

In 2004, the Federal Communications Commission ("FCC") approved a spectrum allocation exchange between Sprint Nextel Corporation ("Nextel") and public safety entities to eliminate interference caused to public safety radio licenses by Nextel's operations.

In order to utilize this spectrum, Nextel is required to relocate broadcasters to new spectrum by replacing all analog equipment currently used by broadcasters with comparable digital equipment. The Company has agreed to accept the substitute equipment that Nextel will provide in all of its markets, and in turn must relinquish its existing equipment back to Nextel. All replacement equipment purchases will be paid for directly by Nextel. All other reasonable and necessary costs incurred by the Company in conjunction with the exchange, both internal and external, will be reimbursed by Nextel.

The Company has recognized a $32,000, $2.1 million and $2.6 million gain for the years ended December 31, 2011, 2010 and 2009, respectively, which represents the amount of the substitute equipment currently in use, including installation costs and net of assets disposed. This gain on asset exchange was not reported as a capital expenditure on the statement of cash flows as it was not a cash outflow.

The Company had approximately $53,000 and $81,000 of the substitute equipment as of December 31, 2011 and 2010, respectively that had been received but not yet installed. The $53,000 and $81,000 were recorded as deferred gain in other current liabilities on the consolidated balance sheet. Once the equipment is fully installed and is in use, the deferred gain will be recorded as a gain on the Company's consolidated statement of operations.