US Cellular 2008 Annual Report Download - page 65

(b) For additional details relating to 2007, see the U.S. Cellular proxy statement filed with the SEC on Schedule 14A on April 15,
2008. For additional details relating to 2006, see the U.S. Cellular proxy statement filed with the SEC on Schedule 14A on
April 25, 2007. Amounts for 2006 are not required to be reported for Steven T. Campbell because he was not a named
executive officer in 2006.
(c) Represents the dollar value of base salary (cash and non-cash) earned by the named executive officer during the fiscal year.
John E. Rooney deferred 20% of his base salary in 2008. See ‘‘Information Regarding Nonqualified Deferred Compensation’’
below. The other officers did not defer any salary in 2008.
(d) Represents the dollar value of bonus (cash and non-cash) earned by the named executive officer during the fiscal year. As
discussed in the Compensation Disclosure and Analysis, officers do not become entitled to any amount of bonus solely as a
result of achievement of any performance measures. The officers are not entitled to any amount of bonus unless and only to
the extent awarded and paid. Performance measures are only one category of the factors used to determine the amount of
the bonus, all of which is discretionary, as discussed above. The entire amount of the bonus is not earned until awarded.
Because officers are not entitled to any bonus until awarded, the bonus amounts reported as earned in 2008 above represent
bonuses awarded and paid in 2008. This includes the bonus based on 2007 performance that was paid on March 14, 2008.
See ‘‘Bonus’’ in the Compensation Disclosure and Analysis. Mr. Rooney deferred 100% of his 2007 bonus (earned and paid in
2008). The amount deferred is deemed invested in phantom stock units in U.S. Cellular Common Shares. See ‘‘Grants of
Plan-Based Awards’’ below. The entire amount of Mr. Rooney’s bonus earned in 2008, including the amount deferred, is
included above in column (d). See ‘‘Information Regarding Nonqualified Deferred Compensation’’ below. As a result,
Mr. Rooney also received a Company match of phantom stock bonus match units in U.S. Cellular Common Shares having a
value of $196,897. See Note (e) below. The other officers did not defer any bonus in 2008.
For disclosure purposes, the amount of bonus paid on March 13, 2009 with respect to 2008 performance is as follows:
John E. Steven T. Jay M. Michael S. Jeffrey J.
Rooney Campbell Ellison Irizarry Childs
Total Bonus for 2008 paid in 2009 ................. $410,000 $143,976 $223,086 $152,068 $111,567
The amount of the Bonus for 2008 paid in 2009 is only provided for disclosure purposes. These amounts were not earned
until paid in 2009 and will be reported in next year’s Summary Compensation Table with respect to 2009.
(e) Represents the dollar amount recognized for financial statement reporting purposes with respect to the fiscal year in
accordance with FAS 123R, disregarding the estimate of forfeitures related to service-based vesting conditions. The vesting
period of the awards is set forth under ‘‘Grants of Plan-Based Awards’’ below. Assumptions made in the valuation of stock
awards in this column are incorporated by reference to Note 18—Stock Based Compensation, in U.S. Cellular’s financial
statements for the year ended December 31, 2008 included in its Form 10-K for the year ended December 31, 2008. All
above stock awards were valued based on grant date fair value using an annual forfeiture rate (the percentage of stock
awards granted that are assumed will be forfeited) of 0%. The annual forfeiture rate used in the calculation of the FAS 123R
expense was 9.14% in 2008, 8.03% in 2007 and 7.74% in 2006. There were no forfeitures of stock awards in 2008, 2007 or
2006 for the identified officers.
Includes the amount of FAS 123R expense related to restricted stock units under the U.S. Cellular 2005 Long-Term Incentive
Plan. U.S. Cellular restricted stock units granted in 2008 will become vested on the third anniversary of the grant date, or on
April 1, 2011, except with respect to Mr. Rooney whose restricted stock units became vested on October 1, 2008.
Also includes the amount of FAS 123R expense related to phantom stock bonus match units in U.S. Cellular Common Shares
credited to such officer with respect to deferred bonuses. Deferred bonus is deemed invested in phantom U.S. Cellular
Common Shares. U.S. Cellular does not currently pay dividends. Mr. Rooney deferred 100% of his 2007 bonus, which was
paid in 2008. Accordingly, Mr. Rooney received a phantom stock bonus match with respect to such deferred bonus in 2008
having a grant date value of $196,897. However, column (e) above includes the amount of FAS 123R expense recognized in
2008 of $328,163. In accordance with FAS 123R, U.S. Cellular recognized expense in 2008 with respect to 100% of the
grant-date value bonus match awards granted in 2008 to Mr. Rooney, and recognized expense for all of Mr. Rooney’s prior
unvested bonus match awards, because he was eligible for retirement. See ‘‘Information Regarding Nonqualified Deferred
Compensation’’ below.
The following is a summary of the amount of FAS 123R expense related to stock awards reflected in column (e) above:
John E. Steven T. Jay M. Michael S. Jeffrey J.
Rooney Campbell Ellison Irizarry Childs
2005 Restricted Stock Units ..................... $ — $ — $ 52,603 $ 33,302 $ 29,434
2006 Restricted Stock Units ..................... — 11,699 76,794 48,737 43,067
2007 Restricted Stock Units ..................... — 76,937 179,373 128,919 76,937
2008 Restricted Stock Units ..................... 440,077 87,820 197,939 142,679 84,706
Amount of restricted stock unit expense in 2008 ........ $440,077 $176,456 $506,709 $353,637 $234,144
Amount of bonus match expense in 2008 ............ 328,163 — — — —
Total ................................... $768,240 $176,456 $506,709 $353,637 $234,144
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