US Cellular 2009 Annual Report Download - page 24

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Acquisitions required cash payments of $16.0 million in 2009, $341.7 million in 2008 and $21.5 million in
2007, respectively, as summarized below:
Cash Payment for Acquisitions(1) 2009 2008 2007
(Dollars in millions)
Auction 73 licenses(2) .................................... $ — $300.5 $ —
All other licenses ....................................... 15.8 32.3 3.2
Business acquisitions(3) .................................. — 8.9 18.3
All other .............................................. 0.2 — —
Total ................................................ $16.0 $341.7 $21.5
(1) Cash amounts paid for the acquisitions may differ from the purchase price due to cash acquired
in the transactions and cash payments remitted in periods subsequent to the respective
transactions.
(2) King Street Wireless L.P., an entity in which a subsidiary of U.S. Cellular is a limited partner with
a 90% partnership interest, made these payments. U.S. Cellular loaned these funds to the
partnership and the general partner and made direct capital investments to fund the auction
payment.
(3) For purposes of presentation in this table, this line item includes the purchase of an entire
business or the purchase of additional interests in entities already partially owned by
U.S. Cellular.
In 2008, U.S. Cellular realized cash proceeds of $16.7 million from the disposition of Rural Cellular
Corporation (‘‘RCC’’) Common Shares in conjunction with Verizon Wireless’ acquisition of RCC. In 2007,
U.S. Cellular realized cash proceeds of $4.3 million related to the disposition of Vodafone ADRs. See
Note 4—Gain on Disposition of Investments in the Notes to Consolidated Financial Statements for details
of these transactions.
Cash Flows From Financing Activities
Cash flows from financing activities primarily reflect changes in short-term and long-term debt balances,
distributions to noncontrolling interests, cash used to repurchase Common Shares and cash proceeds
from re-issuance of Common Shares pursuant to stock-based compensation plans. U.S. Cellular has
used short-term debt to finance acquisitions, for general corporate purposes and to repurchase Common
Shares. Internally generated funds as well as proceeds from forward contracts and the sale of
non-strategic wireless and other investments, from time to time, have been used to reduce short-term
debt.
There were no short-term borrowings or repayments during 2009. Cash received from short-term
borrowings under U.S. Cellular’s revolving credit facility provided $100.0 million in 2008 and $25.0 million
in 2007, while repayments required $100.0 million in 2008 and $60.0 million in 2007.
In 2009, U.S. Cellular redeemed its outstanding 8.75% senior notes for their principal amount of
$130.0 million and retired its 9% installment notes payable in the amount of $10.0 million. There were no
redemptions of long-term debt in 2008 or 2007.
In 2009, U.S. Cellular repurchased Common Shares at an aggregate cost of $33.6 million. In 2008,
U.S. Cellular repurchased Common Shares at an aggregate cost of $32.9 million. U.S. Cellular also
received $4.6 million in 2008 from an investment banking firm for the final settlement of Accelerated
Share Repurchases (‘‘ASR’’) made in 2007. In 2007, U.S. Cellular purchased Common Shares for
$87.9 million from an investment banking firm in connection with three ASR programs. As discussed
above, in 2008, U.S. Cellular received $4.6 million from the investment banking firm in final settlement of
the ASR programs; thus, the net cost of Common Shares purchased pursuant to such programs was
$83.3 million. See Note 15—Common Shareholders’ Equity in the Notes to Consolidated Financial
Statements for additional information related to these transactions.
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