US Cellular 2009 Annual Report Download - page 36

•Restatements of financial statements by U.S. Cellular and related matters, including resulting delays in
filing periodic reports with the SEC, could have an adverse effect on U.S. Cellular’s business, financial
condition or results of operations.
•The existence of material weaknesses in the effectiveness of internal control over financial reporting
could result in inaccurate financial statements or other disclosures or failure to prevent fraud, which
could have an adverse effect on U.S. Cellular’s business, financial condition or results of operations.
•Changes in facts or circumstances, including new or additional information that affects the calculation
of potential liabilities for contingent obligations under guarantees, indemnities, claims, litigation or
otherwise, could require U.S. Cellular to record charges in excess of amounts accrued in the financial
statements, if any, which could have an adverse effect on U.S. Cellular’s financial condition or results of
operations.
•Early redemptions or repurchases of debt, issuances of debt, changes in operating leases, changes in
purchase obligations or other factors or developments could cause the amounts reported under
Contractual Obligations in U.S. Cellular’s Management’s Discussion and Analysis of Financial Condition
and Results of Operations to be different from the amounts actually incurred.
•An increase in the amount of U.S. Cellular’s debt could subject U.S. Cellular to higher interest costs and
restrictions on its financing, investing and operating activities and could decrease its net income and
cash flows.
•Disruption in credit or other financial markets, a deterioration of U.S. or global economic conditions or
other events, could, among other things, impede U.S. Cellular’s access to or increase the cost of
financing its operating and investment activities and/or result in reduced revenues and lower operating
income and cash flows, which would have an adverse effect on U.S. Cellular’s financial condition or
results of operations.
•Uncertainty of access to capital for telecommunications companies, deterioration in the capital markets,
other changes in market conditions, changes in U.S. Cellular’s credit ratings or other factors could limit
or restrict the availability of financing on terms and prices acceptable to U.S. Cellular, which could
require U.S. Cellular to reduce its construction, development or acquisition programs.
•U.S. Cellular’s credit facility and the indenture governing its senior notes include restrictive covenants
that limit its operating flexibility and U.S. Cellular may be unable to service its debt or to refinance its
indebtedness before maturity.
•Changes in income tax rates, laws, regulations or rulings, or federal or state tax assessments could
have an adverse effect on U.S. Cellular’s financial condition or results of operations.
•Settlements, judgments, restraints on its current or future manner of doing business and/or legal costs
resulting from pending and future litigation could have an adverse effect on U.S. Cellular’s financial
condition, results of operations or ability to do business.
•The possible development of adverse precedent in litigation or conclusions in professional studies to
the effect that radio frequency emissions from handsets, wireless data devices and/or cell sites cause
harmful health consequences, including cancer or tumors, or may interfere with various electronic
medical devices such as pacemakers, could have an adverse effect on U.S. Cellular’s business,
financial condition or results of operations.
•Claims of infringement of intellectual property and proprietary rights of others, primarily involving patent
infringement claims, could prevent U.S. Cellular from using necessary technology to provide services or
subject U.S. Cellular to expensive intellectual property litigation or monetary penalties, which could have
an adverse effect on U.S. Cellular’s business, financial condition or results of operations.
•There are potential conflicts of interests between TDS and U.S. Cellular.
•Certain matters, such as control by TDS and provisions in the U.S. Cellular Restated Certificate of
Incorporation, may serve to discourage or make more difficult a change in control of U.S. Cellular.
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