US Cellular 2009 Annual Report Download - page 68

Download and view the complete annual report

Please find page 68 of the 2009 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 96

  • 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

UNITED STATES CELLULAR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 9 LICENSES AND GOODWILL (Continued)
2007 Impairment Assessment
During 2007, U.S. Cellular recognized a $2.1 million impairment of licenses as a result of its annual
impairment assessment in the second quarter of 2007. In addition, U.S. Cellular recognized an
impairment of licenses of $20.8 million in the fourth quarter of 2007 in conjunction with an exchange of
licenses with Sprint Nextel. No impairment of goodwill was recognized in 2007.
NOTE 10 INVESTMENTS IN UNCONSOLIDATED ENTITIES
Investments in unconsolidated entities consist of amounts invested in wireless entities which are
accounted for using either the equity or cost method as shown in the following table:
December 31, 2009 2008
(Dollars in thousands)
Equity method investments:
Capital contributions, loans and advances .............. $ 21,120 $ 21,857
Goodwill ...................................... 1,171 1,171
Cumulative share of income ........................ 768,005 671,204
Cumulative share of distributions .................... (630,426) (539,206)
159,870 155,026
Cost method investments ........................... 1,611 1,611
Total investments in unconsolidated entities .............. $161,481 $ 156,637
Investments in unconsolidated entities include goodwill and costs in excess of the underlying book value
of certain investments.
Equity in earnings of unconsolidated entities totaled $96.8 million, $92.0 million and $90.0 million in
2009, 2008 and 2007, respectively; of those amounts, U.S. Cellular’s investment in the Los Angeles
SMSA Limited Partnership (‘‘LA Partnership’’) contributed $64.7 million, $66.1 million and $71.2 million in
2009, 2008 and 2007, respectively. U.S. Cellular held a 5.5% ownership interest in the LA Partnership
throughout and at the end of each of these years.
60