US Cellular 2009 Annual Report Download - page 66

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UNITED STATES CELLULAR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 7 EARNINGS PER SHARE (Continued)
During 2007, U.S. Cellular purchased Common Shares from an investment banking firm in private
accelerated share repurchase transactions (‘‘ASRs’’). The 2007 weighted average number of shares used
in computing Diluted earnings per share does not include the impact of unsettled ASRs at December 31,
2007 because the effects were antidilutive.
NOTE 8 ACQUISITIONS, DIVESTITURES AND EXCHANGES
U.S. Cellular assesses its existing wireless interests on an ongoing basis with a goal of improving the
competitiveness of its operations and maximizing its long-term return on investment. As part of this
strategy, U.S. Cellular reviews attractive opportunities to acquire additional operating markets and
wireless spectrum. In addition, U.S. Cellular may seek to divest outright or include in exchanges for other
wireless interests those markets and wireless interests that are not strategic to its long-term success.
U.S. Cellular acquisitions for the years ended 2009, 2008 and 2007 and the allocation of the purchase
price for these acquisitions were as follows:
Allocation of Purchase Price
Net tangible
Purchase Customer assets
(Dollars in thousands) price(1) Goodwill(2) Licenses lists (liabilities)
2009
Licenses .......................... $ 15,750 $ — $ 15,750 $ — $ —
Total ........................... $ 15,750 $ — $ 15,750 $ — $ —
2008
FCC Auction 73 licenses(3) ............ $300,479 $ — $300,479 $ — $ —
Other licenses ..................... 32,340 — 32,340 — —
Businesses ........................ 9,152 2,963 4,803 1,045 341
Total ........................... $341,971 $2,963 $337,622 $1,045 $ 341
2007
Licenses .......................... $ 3,195 $ — $ 3,195 $ — $ —
Businesses ........................ 18,283 5,864 7,900 1,560 2,959
Total ........................... $ 21,478 $5,864 $ 11,095 $1,560 $2,959
(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) $1.6 million and $5.9 million of the goodwill was amortizable for income tax purposes in 2008 and
2007, respectively.
(3) 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.
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