US Cellular 2008 Annual Report Download - page 191

UNITED STATES CELLULAR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 17 COMMON SHAREHOLDERS’ EQUITY (Continued)
Accumulated Other Comprehensive Income
The cumulative balance of unrealized gains and (losses) on securities and derivative instruments and
related income tax effects included in Accumulated other comprehensive income are as follows:
(Dollars in thousands) 2008 2007
Marketable Equity Securities
Balance, beginning of period ...................................... $10,134 $ 77,545
Add (deduct):
Unrealized gains .............................................. 338 20,825
Deferred income tax expense ..................................... (124) (7,647)
Net change in unrealized gains in comprehensive income .............. 214 13,178
Recognized gain on disposition of marketable equity securities ............ (16,356) (127,207)
Income tax expense ........................................... 6,008 46,618
Net recognized gain in comprehensive income ...................... (10,348) (80,589)
Net change in comprehensive income ................................ (10,134) (67,411)
Balance, end of period ........................................... $ — $ 10,134
Derivative Instruments
Balance, beginning of period ...................................... $ — $ 2,837
Add (deduct):
Recognized gain on settlement of derivative instruments ................. — (4,479)
Income tax expense ........................................... — 1,642
Net recognized gain in comprehensive income ...................... — (2,837)
Net change in comprehensive income ................................ — (2,837)
Balance, end of period ........................................... $ — $ —
Accumulated Other Comprehensive Income
Balance, beginning of period ...................................... $10,134 $ 80,382
Net change in marketable equity securities ........................... (10,134) (67,411)
Net change in derivative instruments ............................... — (2,837)
Net change in comprehensive income .............................. (10,134) (70,248)
Balance, end of period ........................................... $ — $ 10,134
NOTE 18 STOCK-BASED COMPENSATION
U.S. Cellular has established the following stock-based compensation plans: a long-term incentive plan,
an employee stock purchase plan, and a non-employee director compensation plan. Also, U.S. Cellular
employees are eligible to participate in the TDS employee stock purchase plan.
Under the U.S. Cellular 2005 Long-Term Incentive Plan, U.S. Cellular may grant fixed and performance-
based incentive and non-qualified stock options, restricted stock, restricted stock units, and deferred
compensation stock unit awards to key employees. At December 31, 2008, the only types of awards
outstanding are fixed non-qualified stock option awards, restricted stock unit awards, and deferred
compensation stock unit awards.
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