US Cellular 2010 Annual Report Download - page 23

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Acquisitions required cash payments of $17.1 million in 2010, $16.0 million in 2009 and $341.7 million in
2008, as summarized below:
Cash Payment for Acquisitions(1) 2010 2009 2008
(Dollars in millions)
Auction 73 licenses(2) .................................... $ — $ — $300.5
All other licenses ....................................... 17.1 15.8 32.3
Business acquisitions .................................... — — 8.9
All other .............................................. — 0.2 —
Total ................................................ $17.1 $16.0 $341.7
(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) King Street Wireless L.P., an entity in which a subsidiary of U.S. Cellular is a limited partner,
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.
In 2010, U.S. Cellular invested $250.3 million in U.S. treasuries and corporate notes with maturities
greater than three months from the acquisition date. U.S. Cellular realized cash proceeds of $60.3 million
in 2010 related to the maturities of its investments in U.S. treasuries, corporate notes and CDs.
In 2008, U.S. Cellular realized cash proceeds of $16.7 million from the disposition of Rural Cellular
Corporation (‘‘RCC’’) Common Shares in conjunction with Verizon Wireless’ acquisition of RCC.
Cash Flows from Financing Activities
Cash flows from financing activities primarily reflect changes in short-term and long-term debt balances,
distributions to noncontrolling interests, cash used to repurchase Common Shares and cash proceeds
from re-issuance of Common Shares pursuant to stock-based compensation plans. U.S. Cellular has
used short-term debt to finance acquisitions, for general corporate purposes and to repurchase Common
Shares. Internally generated funds as well as proceeds from the sale of non-strategic wireless and other
investments, from time to time, have been used to reduce short-term debt.
There were no short-term borrowings or repayments during 2010 or 2009. Cash received from short-term
borrowings under U.S. Cellular’s revolving credit facility provided $100.0 million in 2008, while
repayments required $100.0 million in 2008.
In 2009, U.S. Cellular redeemed its outstanding 8.75% senior notes for their principal amount of
$130.0 million and retired its 9% installment notes payable in the amount of $10.0 million. There were no
redemptions of long-term debt in 2010 or 2008.
U.S. Cellular repurchased Common Shares for $52.8 million, $33.6 million and $32.9 million in 2010,
2009 and 2008, respectively. U.S. Cellular also received $4.6 million in 2008 from an investment banking
firm for the final settlement of Accelerated Share Repurchases (‘‘ASR’’) made in 2007. See Note 14—
Common Shareholders’ Equity in the Notes to Consolidated Financial Statements for additional
information related to these transactions.
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