US Cellular 2008 Annual Report Download - page 190

UNITED STATES CELLULAR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 17 COMMON SHAREHOLDERS’ EQUITY (Continued)
5% of the outstanding U.S. Cellular Common Shares held by persons other than TDS affiliates in each
twelve month period. This authorization does not have an expiration date.
During 2008, U.S. Cellular repurchased 600,000 Common Shares for $32.9 million, or an average of
$54.87 per Common Share. As of December 31, 2008, the number of additional Common Shares that
U.S. Cellular could have purchased during the twelve-months then ended pursuant to the Limited
Authorization was 225,000.
In addition to U.S. Cellular’s Limited Authorization discussed above, on March 6, 2007, the Board of
Directors of U.S. Cellular authorized the repurchase of up to 500,000 Common Shares of U.S. Cellular
from time to time through open market purchases, block transactions, private transactions or other
methods (the ‘‘Additional Authorization’’).
During 2007, U.S. Cellular purchased 1,006,000 Common Shares from an investment banking firm in
private accelerated share repurchase (‘‘ASR’’) transactions dated April 4, July 10, and October 25, 2007.
These purchases consisted of 506,000 shares under the Limited Authorization and 500,000 shares under
the Additional Authorization. Activity related to these purchases is detailed in the table below.
(Dollars in thousands, except per share amounts) April 4, 2007 July 10, 2007 October 25, 2007 Total
Number of shares purchased ............. 670,000 168,000 168,000 1,006,000
ASR transactions
Initial purchase price paid to investment banking
firm ............................... $49,057 $16,145 $16,215 $ 81,417
Weighted average price per share ........... $ 73.22 $ 96.10 $ 96.52 $ 80.93
ASR settlements
Additional amount paid to (received from)
investment banking firm(1) ............... $ 6,485 $ (2,080) $ (2,474) $ 1,931
Final total cost of shares, including discount and
commission ......................... $55,542 $14,065 $13,741 $ 83,348
Final weighted average price per share ....... $ 82.90 $ 83.72 $ 81.79 $ 82.85
(1) The cash settlements with the investment banking firm occurred in December 2007 for the April 4,
2007 ASRs and in January 2008 for the July 10, 2007, and October 25, 2007 ASRs. These cash
settlements, consisting of an additional payment of $6.5 million in 2007 and a refund of $4.6 million
in 2008, resulted in an adjustment to U.S. Cellular’s Additional paid-in capital upon the respective
settlements.
U.S. Cellular did not repurchase any Common Shares in 2006.
Pursuant to certain employee and non-employee benefit plans, U.S. Cellular reissued 283,567, 880,647
and 632,929 Treasury Shares in 2008, 2007 and 2006, respectively.
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