US Cellular 2010 Annual Report Download - page 60

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UNITED STATES CELLULAR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 5 VARIABLE INTEREST ENTITIES (VIEs) (Continued)
Consolidated VIEs
As of December 31, 2010, U.S. Cellular consolidates the following VIEs under GAAP:
• Aquinas Wireless;
• King Street Wireless and King Street Wireless, Inc., the general partner of King Street Wireless;
• Barat Wireless and Barat Wireless, Inc., the general partner of Barat Wireless; and
• Carroll Wireless and Carroll PCS, Inc., the general partner of Carroll Wireless.
U.S. Cellular holds a variable interest in the entities listed above. It has made capital contributions and/or
advances to these entities. The power to direct the activities of the VIEs that most significantly impact
their economic performance is shared. Specifically, the general partner of each of these VIEs has the
exclusive right to manage, operate and control the limited partnerships and make all decisions to carry
on the business of the partnerships; however, the general partner of each partnership needs consent of
the limited partner, a U.S. Cellular subsidiary, to sell or lease certain licenses, to make certain large
expenditures, admit other partners or liquidate the limited partnerships. Although the power to direct the
activities of the VIEs is shared, U.S. Cellular has a disproportionate level of exposure to the variability
associated with the economic performance of the VIEs, indicating that U.S. Cellular is the primary
beneficiary of the VIEs in accordance with GAAP. Accordingly, these VIEs are consolidated.
Following is a summary of the capital contributions and advances made to each entity by U.S. Cellular
as of December 31, 2010. The amounts shown in the table below exclude funds provided to these
entities solely from the shareholder of the general partner.
(Dollars in thousands)
Aquinas Wireless ........................................... $ 2,132
King Street Wireless & King Street Wireless, Inc. .................... 300,904
Barat Wireless & Barat Wireless, Inc. ............................ 127,685
Carroll Wireless & Carroll PCS, Inc. ............................. 131,294
$562,015
The following table presents the classification of the consolidated VIEs’ assets and liabilities in U.S.
Cellular’s Consolidated Balance Sheet.
December 31, 2010 2009
(Dollars in thousands)
Assets
Cash .......................................... $ 1,673 $ 679
Other current assets .............................. 323 393
Licenses ....................................... 487,962 487,962
Property, plant and equipment ....................... 1,548 440
Total assets ...................................... $491,506 $489,474
Liabilities
Customer deposits and deferred revenues ............... $ 95 $ 70
Total liabilities ................................... $ 95 $ 70
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