US Cellular 2009 Annual Report Download - page 81

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UNITED STATES CELLULAR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 17 SUPPLEMENTAL CASH FLOWS
Following are supplemental cash flow disclosures regarding interest paid and income taxes paid.
Year Ended December 31, 2009 2008 2007
(Dollars in thousands)
Interest paid ........................................... $77,692 $ 78,223 $ 84,095
Income taxes paid ....................................... $36,863 $116,525 $212,578
Following are supplemental cash flow disclosures regarding transactions related to stock-based
compensation awards:
Year Ended December 31, 2009 2008 2007
(Dollars in thousands)
Common Shares withheld(1) ................................ 200,025 368,231 716,446
Aggregate value of Common Shares withheld .................... $ 7,622 $20,055 $ 59,969
Cash receipts upon exercise of stock options .................... $ 1,572 $ 3,588 $ 23,582
Cash disbursements for payment of taxes(2) ..................... (1,654) (5,876) (13,509)
Net cash receipts (disbursements) from exercise of stock options and
vesting of other stock awards .............................. $ (82) $ (2,288) $ 10,073
(1) Such shares were withheld to cover the exercise price of stock options, if applicable, and required
tax withholdings.
(2) In certain situations, U.S. Cellular withholds shares that are issuable upon the exercise of stock
options or the vesting of restricted shares to cover, and with a value equivalent to, the exercise price
and/or the amount of taxes required to be withheld from the stock award holder at the time of the
exercise or vesting. U.S. Cellular then pays the amount of the required tax withholdings to the taxing
authorities in cash.
NOTE 18 RELATED PARTIES
U.S. Cellular is billed for all services it receives from TDS, pursuant to the terms of various agreements
between it and TDS. The majority of these billings are included in U.S. Cellular’s Selling, general and
administrative expenses. Some of these agreements were established at a time prior to U.S. Cellular’s
initial public offering when TDS owned more than 90% of U.S. Cellular’s outstanding capital stock and
may not reflect terms that would be obtainable from an unrelated third party through arms-length
negotiations. Billings from TDS to U.S. Cellular are based on expenses specifically identified to
U.S. Cellular and on allocations of common expenses. Such allocations are based on the relationship of
U.S. Cellular’s assets, employees, investment in property, plant and equipment and expenses relative to
all subsidiaries in the TDS consolidated group. Management believes the method TDS uses to allocate
common expenses is reasonable and that all expenses and costs applicable to U.S. Cellular are reflected
in its financial statements. Billings to U.S. Cellular from TDS totaled $114.8 million, $113.3 million and
$121.8 million in 2009, 2008 and 2007, respectively.
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