US Cellular 2008 Annual Report Download - page 25

Download and view the complete annual report

Please find page 25 of the 2008 US Cellular annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 207

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207

Federal Income Taxes
In general, a non-employee director who is issued Common Shares under the Directors Plan will
recognize taxable compensation in the year of issuance in an amount equal to the fair market value of
such Common Shares on the date of issuance, and U.S. Cellular will be allowed a deduction for federal
income tax purposes at the time the non-employee director recognizes taxable compensation equal to
the amount of compensation recognized by such non-employee director.
In general, a non-employee director’s basis for Common Shares received under the Directors Plan
will be the amount recognized as taxable compensation with respect to such Common Shares, and a
non-employee director’s holding period for such shares will begin on the date the non-employee director
recognizes taxable compensation with respect to the shares.
The foregoing tax effects may be different if Common Shares are subject to restrictions imposed by
Section 16(b) of the Exchange Act. In such case, a non-employee director who is issued Common
Shares under the Directors Plan will recognize taxable compensation on the issued shares when the
restrictions on such shares imposed by Section 16(b) of the Exchange Act lapse, unless the
non-employee director makes an appropriate election under Section 83(b) of the Internal Revenue Code
of 1986, as amended, to be taxed at the time of issuance of the shares.
In general, a non-employee director will recognize taxable compensation in the year of payment of
the cash annual retainer or meeting fees in an amount equal to such cash payment, and in the year of
payment U.S. Cellular will be allowed a deduction for federal income tax purposes equal to the
compensation recognized by such non-employee director.
Plan Benefits
No disclosure is being made of the benefits or amounts that will be received by or allocated to any
participants because the benefit or amount is not determinable until earned and paid.
The board of directors recommends a vote ‘‘FOR’’ approval of the Compensation Plan for
Non-Employee Directors, as amended.
18