US Cellular 2010 Annual Report Download - page 18

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Depreciation, amortization and accretion
Depreciation, amortization and accretion remained relatively flat in 2010, 2009 and 2008.
See ‘‘Financial Resources’’ and ‘‘Liquidity and Capital Resources’’ for a discussion of U.S. Cellular’s
capital expenditures.
Loss on impairment of intangible assets
There was no impairment of intangible assets in 2010.
In 2009 and 2008, U.S. Cellular recognized impairment losses on licenses as indicated in the table
below. The 2009 impairment loss was incurred in connection with the annual impairment assessment of
licenses and goodwill performed during the fourth quarter of 2009. The 2008 impairment loss was
attributable to the deterioration in the credit and financial markets and the accelerated decline in the
overall economy in the fourth quarter of 2008. These factors impacted U.S. Cellular’s calculation of the
estimated fair value of licenses in the fourth quarter of 2008 through the use of a higher discount rate
when projecting future cash flows and lower than previously projected earnings in the wireless industry.
The impacts of impairment losses related to licenses were as follows:
2010 2009 2008
Net income attributable to U.S. Cellular shareholders, excluding licenses
impairments(1) ........................................... $132.3 $215.4 $ 269.4
Loss on impairment of intangible assets related to licenses ............. — (14.0) (386.7)
Income tax benefit and noncontrolling interest impact of licenses
impairments(1) ........................................... — 5.3 150.4
Impact of licenses impairments on Net income attributable to U.S. Cellular
shareholders(1) ........................................... — (8.7) (236.3)
Net income attributable to U.S. Cellular shareholders .................. $132.3 $206.7 $ 33.1
Diluted earnings per share attributable to U.S. Cellular shareholders,
excluding licenses impairments(1) .............................. $ 1.53 $ 2.47 $ 3.07
Impact of licenses impairments on Diluted earnings per share attributable to
U.S. Cellular shareholders(1) ................................. — (0.10) (2.69)
Diluted earnings per share attributable to U.S. Cellular shareholders ....... $ 1.53 $ 2.37 $ 0.38
(1) These amounts are non-GAAP financial measures. The purpose of presenting these measures is to
provide information on the impact of losses on impairment related to licenses on results of
operations. Such impairments are discrete, significant amounts that impact the comparability of the
results of operations, and U.S. Cellular believes it is useful to disclose these impacts. The income tax
and noncontrolling interest impact is calculated by allocating the losses on impairment to the
respective consolidated subsidiaries, and applying the income tax rate and noncontrolling interest
percentages applicable to these respective subsidiaries.
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