v2.4.0.6
Guarantor Subsidiaries
12 Months Ended
Dec. 31, 2011
Guarantor Subsidiaries [Abstract]  
Guarantor Subsidiaries
Guarantor Subsidiaries:
In connection with Wireless’ 7 7/8% Senior Notes, 6 5/8% Senior Notes, and the Senior Secured Credit Facility, MetroPCS, together with its wholly-owned subsidiary, MetroPCS, Inc., and each of Wireless’ direct and indirect present and future wholly-owned domestic subsidiaries (the “guarantor subsidiaries”), provided guarantees which are full and unconditional as well as joint and several. Certain provisions of the Senior Secured Credit Facility, the indentures and the supplemental indentures relating to the 7 7/8% Senior Notes and 6 5/8% Senior Notes restrict the ability of Wireless to loan funds to MetroPCS or MetroPCS, Inc. However, Wireless is allowed to make certain permitted payments to MetroPCS under the terms of the Senior Secured Credit Facility, the indentures and the supplemental indentures relating to the 7 7/8% Senior Notes and 6 5/8% Senior Notes.
Prior to December 2010, Royal Street Communications, LLC and its subsidiaries (“Royal Street Communications”) and MetroPCS Finance, Inc. (“MetroPCS Finance”) (collectively, the “non-guarantor subsidiaries”) were not guarantors of the 7 7/8% Senior Notes, 6 5/8% Senior Notes or the Senior Secured Credit Facility. In December 2010, Wireless completed the acquisition of the remaining limited liability company member interest in Royal Street Communications, making Royal Street Communications a wholly-owned subsidiary. In addition, MetroPCS Finance was merged with a subsidiary of Wireless. Therefore, the Company no longer had any non-guarantors of any of its outstanding debt as of December 31, 2010. As a result, the comparative historical condensed consolidating financial information has been revised to present this information as if the new guarantor structure existed for all periods presented with the results of Royal Street Communications and MetroPCS Finance being reported as guarantor subsidiaries.
The following information presents condensed consolidating balance sheet information as of December 31, 2011 and 2010, condensed consolidating statement of income information for the years ended December 31, 2011, 2010 and 2009, and condensed consolidating statement of cash flows information for the years ended December 31, 2011, 2010 and 2009 of the parent company (MetroPCS), the issuer (Wireless), and the guarantor subsidiaries. Investments in subsidiaries held by the parent company and the issuer have been presented using the equity method of accounting.
Condensed Consolidating Balance Sheet Information
As of December 31, 2011
 
 
 
Parent
 
Issuer
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
 
(in thousands)
CURRENT ASSETS:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
657,289

 
$
1,285,266

 
$
727

 
$

 
$
1,943,282

Inventories
 

 
226,124

 
13,524

 

 
239,648

Accounts receivable, net
 

 
77,396

 
627

 

 
78,023

Advances to subsidiaries
 
671,193

 
245,866

 

 
(917,059
)
 

Other current assets
 
300,068

 
102,845

 
79,727

 

 
482,640

Total current assets
 
1,628,550

 
1,937,497

 
94,605

 
(917,059
)
 
2,743,593

Property and equipment, net
 

 
1,378

 
4,016,621

 

 
4,017,999

Long-term investments
 
6,319

 

 

 

 
6,319

Investment in subsidiaries
 
1,297,957

 
4,728,985

 

 
(6,026,942
)
 

FCC licenses
 

 
3,800

 
2,535,241

 

 
2,539,041

Other assets
 

 
137,985

 
39,612

 
(1,618
)
 
175,979

Total assets
 
$
2,932,826

 
$
6,809,645

 
$
6,686,079

 
$
(6,945,619
)
 
$
9,482,931

CURRENT LIABILITIES:
 
 
 
 
 
 
 
 
 
 
Advances from subsidiaries
 
$

 
$

 
$
917,059

 
$
(917,059
)
 
$

Other current liabilities
 

 
243,247

 
573,476

 

 
816,723

Total current liabilities
 

 
243,247

 
1,490,535

 
(917,059
)
 
816,723

Long-term debt, net
 

 
4,437,924

 
273,097

 

 
4,711,021

Deferred credits
 
5,226

 
813,498

 
120,028

 
(1,618
)
 
937,134

Other long-term liabilities
 

 
17,019

 
73,434

 

 
90,453

Total liabilities
 
5,226

 
5,511,688

 
1,957,094

 
(918,677
)
 
6,555,331

STOCKHOLDERS’ EQUITY:
 
 
 
 
 
 
 
 
 
 
Common stock
 
36

 

 

 

 
36

Other stockholders’ equity
 
2,927,564

 
1,297,957

 
4,728,985

 
(6,026,942
)
 
2,927,564

Total stockholders’ equity
 
2,927,600

 
1,297,957

 
4,728,985

 
(6,026,942
)
 
2,927,600

Total liabilities and stockholders’ equity
 
$
2,932,826

 
$
6,809,645

 
$
6,686,079

 
$
(6,945,619
)
 
$
9,482,931


 

Condensed Consolidating Balance Sheet Information
As of December 31, 2010
 
 
 
Parent
 
Issuer
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
 
(in thousands)
CURRENT ASSETS:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
507,849

 
$
287,942

 
$
740

 
$

 
$
796,531

Inventories
 

 
145,260

 
15,789

 

 
161,049

Accounts receivable, net
 

 
57,047

 
1,009

 

 
58,056

Advances to subsidiaries
 
647,701

 
462,518

 

 
(1,110,219
)
 

Other current assets
 
374,956

 
114,285

 
89,008

 

 
578,249

Total current assets
 
1,530,506

 
1,067,052

 
106,546

 
(1,110,219
)
 
1,593,885

Property and equipment, net
 

 
246,249

 
3,413,196

 

 
3,659,445

Long-term investments
 
6,319

 
10,381

 

 

 
16,700

Investment in subsidiaries
 
1,006,295

 
3,994,553

 

 
(5,000,848
)
 

FCC licenses
 

 
3,800

 
2,518,441

 

 
2,522,241

Other assets
 

 
75,085

 
51,224

 

 
126,309

Total assets
 
$
2,543,120

 
$
5,397,120

 
$
6,089,407

 
$
(6,111,067
)
 
$
7,918,580

CURRENT LIABILITIES:
 
 
 
 
 
 
 
 
 
 
Advances from subsidiaries
 
$

 
$

 
$
1,110,219

 
$
(1,110,219
)
 
$

Other current liabilities
 

 
233,678

 
568,742

 

 
802,420

Total current liabilities
 

 
233,678

 
1,678,961

 
(1,110,219
)
 
802,420

Long-term debt, net
 

 
3,508,948

 
248,339

 

 
3,757,287

Deferred credits
 
1,544

 
639,766

 
103,159

 

 
744,469

Other long-term liabilities
 

 
8,433

 
64,395

 

 
72,828

Total liabilities
 
1,544

 
4,390,825

 
2,094,854

 
(1,110,219
)
 
5,377,004

STOCKHOLDERS’ EQUITY:
 
 
 
 
 
 
 
 
 
 
Common stock
 
36

 

 

 

 
36

Other stockholders’ equity
 
2,541,540

 
1,006,295

 
3,994,553

 
(5,000,848
)
 
2,541,540

Total stockholders’ equity
 
2,541,576

 
1,006,295

 
3,994,553

 
(5,000,848
)
 
2,541,576

Total liabilities and stockholders’ equity
 
$
2,543,120

 
$
5,397,120

 
$
6,089,407

 
$
(6,111,067
)
 
$
7,918,580


 


 
Condensed Consolidating Statement of Income Information
Year Ended December 31, 2011
 
 
 
Parent
 
Issuer
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
 
(in thousands)
REVENUES:
 
 
 
 
 
 
 
 
 
 
Total Revenues
 
$

 
$
18,802

 
$
4,858,650

 
$
(30,070
)
 
$
4,847,382

OPERATING EXPENSES:
 
 
 
 
 
 
 
 
 
 
Cost of revenues
 

 
17,452

 
2,926,049

 
(30,070
)
 
2,913,431

Selling, general and administrative expenses
 

 
1,350

 
642,609

 

 
643,959

Other operating expenses
 

 
264

 
542,190

 

 
542,454

Total operating expenses
 

 
19,066

 
4,110,848

 
(30,070
)
 
4,099,844

(Loss) income from operations
 

 
(264
)
 
747,802

 

 
747,538

OTHER EXPENSE (INCOME):
 
 
 
 
 
 
 
 
 
 
Interest expense
 

 
243,163

 
17,910

 

 
261,073

Non-operating expenses
 
(1,859
)
 
9,414

 
(746
)
 

 
6,809

Earnings from consolidated subsidiaries
 
(299,451
)
 
(734,432
)
 

 
1,033,883

 

Total other (income) expense
 
(301,310
)
 
(481,855
)
 
17,164

 
1,033,883

 
267,882

Income (loss) before provision for income taxes
 
301,310

 
481,591

 
730,638

 
(1,033,883
)
 
479,656

Provision for income taxes
 

 
(182,140
)
 
3,794

 

 
(178,346
)
Net income (loss)
 
$
301,310

 
$
299,451

 
$
734,432

 
$
(1,033,883
)
 
$
301,310



Condensed Consolidating Statement of Income Information
Year Ended December 31, 2010
 
 
 
Parent
 
Issuer
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
 
(in thousands)
REVENUES:
 
 
 
 
 
 
 
 
 
 
Total Revenues
 
$

 
$
16,036

 
$
4,277,726

 
$
(224,409
)
 
$
4,069,353

OPERATING EXPENSES:
 
 
 
 
 
 
 
 
 
 
Cost of revenues
 

 
15,200

 
2,527,084

 
(224,409
)
 
2,317,875

Selling, general and administrative expenses
 

 
835

 
620,825

 

 
621,660

Other operating expenses
 

 
16,773

 
394,147

 

 
410,920

Total operating expenses
 

 
32,808

 
3,542,056

 
(224,409
)
 
3,350,455

(Loss) income from operations
 

 
(16,772
)
 
735,670

 

 
718,898

OTHER EXPENSE (INCOME):
 
 
 
 
 
 
 
 
 
 
Interest expense
 

 
252,661

 
153,672

 
(143,208
)
 
263,125

Non-operating expenses
 
(1,797
)
 
2,233

 
(165
)
 
143,208

 
143,479

Earnings from consolidated subsidiaries
 
(191,546
)
 
(581,027
)
 

 
772,573

 

Total other (income) expense
 
(193,343
)
 
(326,133
)
 
153,507

 
772,573

 
406,604

Income (loss) before provision for
income taxes
 
193,343

 
309,361

 
582,163

 
(772,573
)
 
312,294

Provision for income taxes
 
72

 
(117,815
)
 
(1,136
)
 

 
(118,879
)
Net income (loss)
 
$
193,415

 
$
191,546

 
$
581,027

 
$
(772,573
)
 
$
193,415



Condensed Consolidating Statement of Income Information
Year Ended December 31, 2009
 
 
 
Parent
 
Issuer
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
 
(in thousands)
REVENUES:
 
 
 
 
 
 
 
 
 
 
Total Revenues
 
$

 
$
16,409

 
$
3,628,698

 
$
(164,592
)
 
$
3,480,515

OPERATING EXPENSES:
 
 
 
 
 
 
 
 
 
 
Cost of revenues
 

 
15,336

 
2,153,580

 
(164,592
)
 
2,004,324

Selling, general and administrative expenses
 

 
1,074

 
566,656

 

 
567,730

Other operating expenses
 

 
228

 
372,945

 

 
373,173

Total operating expenses
 

 
16,638

 
3,093,181

 
(164,592
)
 
2,945,227

(Loss) income from operations
 

 
(229
)
 
535,517

 

 
535,288

OTHER EXPENSE (INCOME):
 
 
 
 
 
 
 
 
 
 
Interest expense
 

 
270,662

 
135,039

 
(135,416
)
 
270,285

Non-operating expenses
 
(2,456
)
 
(131,512
)
 
(124
)
 
135,416

 
1,324

Earnings from consolidated subsidiaries
 
(174,388
)
 
(402,358
)
 

 
576,746

 

Total other (income) expense
 
(176,844
)
 
(263,208
)
 
134,915

 
576,746

 
271,609

Income (loss) before provision for
income taxes
 
176,844

 
262,979

 
400,602

 
(576,746
)
 
263,679

Provision for income taxes
 

 
(88,591
)
 
1,756

 

 
(86,835
)
Net income (loss)
 
$
176,844

 
$
174,388

 
$
402,358

 
$
(576,746
)
 
$
176,844



 
Condensed Consolidating Statement of Cash Flows Information
Year Ended December 31, 2011
 
 
 
Parent
 
Issuer
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
 
(in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
Net cash provided by (used in) operating activities
 
$
1,363

 
$
(331,843
)
 
$
1,392,288

 
$

 
$
1,061,808

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
Purchases of property and equipment
 

 
(5,944
)
 
(883,825
)
 

 
(889,769
)
Purchase of investments
 
(599,765
)
 

 

 

 
(599,765
)
Proceeds from maturity of investments
 
675,000

 

 

 

 
675,000

Change in advances – affiliates
 
18,683

 
471,116

 

 
(489,799
)
 

Other investing activities, net
 

 
(61,515
)
 
(10,822
)
 

 
(72,337
)
Net cash provided by (used in) investing activities
 
93,918

 
403,657

 
(894,647
)
 
(489,799
)
 
(886,871
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
Change in advances – affiliates
 

 

 
(489,799
)
 
489,799

 

Change in book overdraft
 

 
3,445

 

 

 
3,445

Proceeds from debt issuance, net of discount
 

 
1,497,500

 

 

 
1,497,500

Retirement of long-term debt
 

 
(535,792
)
 

 

 
(535,792
)
Repayment of debt
 

 
(24,292
)
 

 

 
(24,292
)
Other financing activities, net
 
54,159

 
(15,351
)
 
(7,855
)
 

 
30,953

Net cash provided by (used in) financing activities
 
54,159

 
925,510

 
(497,654
)
 
489,799

 
971,814

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
 
149,440

 
997,324

 
(13
)
 

 
1,146,751

CASH AND CASH EQUIVALENTS, beginning of period
 
507,849

 
287,942

 
740

 

 
796,531

CASH AND CASH EQUIVALENTS, end of period
 
$
657,289

 
$
1,285,266

 
$
727

 
$

 
$
1,943,282


 

Condensed Consolidating Statement of Cash Flows Information
Year Ended December 31, 2010
 
 
 
Parent
 
Issuer
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
 
(in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
Net cash provided by (used in) operating activities
 
$
1,401

 
$
(37,976
)
 
$
1,031,075

 
$

 
$
994,500

CASH FLOWS FROM INVESTING ACTIVITIES:
 

 

 

 

 

Purchases of property and equipment
 

 
(173,162
)
 
(617,223
)
 

 
(790,385
)
Purchase of investments
 
(711,827
)
 

 

 

 
(711,827
)
Proceeds from maturity of investments
 
562,500

 

 

 

 
562,500

Change in advances - affiliates
 
5,477

 
555,390

 

 
(560,867
)
 

Proceeds from affiliate debt
 

 
505,481

 

 
(505,481
)
 

Issuance of affiliate debt
 

 
(683,000
)
 

 
683,000

 

Other investing activities, net
 

 
30,433

 
(41,139
)
 

 
(10,706
)
Net cash (used in) provided by investing activities
 
(143,850
)
 
235,142

 
(658,362
)
 
(383,348
)
 
(950,418
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 

 

 

 

 

Change in book overdraft
 

 
(80,291
)
 
(2,421
)
 

 
(82,712
)
Proceeds from senior note offerings
 

 
1,992,770

 

 

 
1,992,770

Proceeds from long-term loan
 

 

 
683,000

 
(683,000
)
 

Change in advances - affiliates
 

 

 
(560,867
)
 
560,867

 

Retirement of long-term debt
 

 
(2,040,186
)
 

 

 
(2,040,186
)
Repayment of debt
 

 
(16,000
)
 
(505,481
)
 
505,481

 
(16,000
)
Other financing activities, net
 
8,209

 
(35,353
)
 
(3,660
)
 

 
(30,804
)
Net cash provided by (used in) financing activities
 
8,209

 
(179,060
)
 
(389,429
)
 
383,348

 
(176,932
)
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
 
(134,240
)
 
18,106

 
(16,716
)
 

 
(132,850
)
CASH AND CASH EQUIVALENTS,
beginning of period
 
642,089

 
269,836

 
17,456

 

 
929,381

CASH AND CASH EQUIVALENTS, end of period
 
$
507,849

 
$
287,942

 
$
740

 
$

 
$
796,531



Condensed Consolidating Statement of Cash Flows Information
Year Ended December 31, 2009
 
 
 
Parent
 
Issuer
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
 
(in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
Net cash provided by (used in) operating activities
 
$
258,785

 
$
(26,058
)
 
$
683,212

 
$
(16,590
)
 
$
899,349

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
Purchases of property and equipment
 

 
(9,177
)
 
(822,497
)
 

 
(831,674
)
Purchase of investments
 
(486,645
)
 

 

 

 
(486,645
)
Proceeds from maturity of investments
 
262,500

 

 

 

 
262,500

Proceeds from affiliate debt
 

 
296,700

 

 
(296,700
)
 

Issuance of affiliate debt
 

 
(465,000
)
 

 
465,000

 

Other investing activities, net
 

 
(52,028
)
 
(9,107
)
 

 
(61,135
)
Net cash (used in) provided by investing activities
 
(224,145
)
 
(229,505
)
 
(831,604
)
 
168,300

 
(1,116,954
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
Change in book overdraft
 

 
(17,047
)
 
(3,267
)
 

 
(20,314
)
Proceeds from long-term loan
 

 

 
465,000

 
(465,000
)
 

Proceeds from senior note offerings
 

 
492,250

 

 

 
492,250

Repayment of debt
 

 
(16,000
)
 
(296,700
)
 
296,700

 
(16,000
)
Other financing activities, net
 
8,626

 
(11,925
)
 
(20,189
)
 
16,590

 
(6,898
)
Net cash provided by (used in) financing activities
 
8,626

 
447,278

 
144,844

 
(151,710
)
 
449,038

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
 
43,266

 
191,715

 
(3,548
)
 

 
231,433

CASH AND CASH EQUIVALENTS,
beginning of period
 
598,823

 
78,121

 
21,004

 

 
697,948

CASH AND CASH EQUIVALENTS, end of period
 
$
642,089

 
$
269,836

 
$
17,456

 
$

 
$
929,381