US Cellular 2010 Annual Report Download - page 63

Download and view the complete annual report

Please find page 63 of the 2010 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 88

  • 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

UNITED STATES CELLULAR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 7 ACQUISITIONS, DIVESTITURES AND EXCHANGES (Continued)
U.S. Cellular acquisitions in 2010, 2009 and 2008 and the allocation of the purchase price for these
acquisitions were as follows:
Allocation of Purchase Price
Net tangible
Purchase Customer assets
(Dollars in thousands) price(1) Goodwill(2) Licenses lists (liabilities)
2010
Licenses .......................... $ 17,101 $ — $ 17,101 $ — $ —
Total ........................... $ 17,101 $ — $ 17,101 $ — $ —
2009
Licenses .......................... $ 15,750 $ — $ 15,750 $ — $ —
Total ........................... $ 15,750 $ — $ 15,750 $ — $ —
2008
FCC Auction 73 licenses(3) ............ $300,479 $ — $300,479 $ — $ —
Other licenses ..................... 32,340 — 32,340 — —
Businesses ........................ 9,152 2,963 4,803 1,045 341
Total ........................... $341,971 $2,963 $337,622 $1,045 $341
(1) Cash amounts paid for the acquisitions may differ from the purchase price due to cash acquired in
the transactions and the timing of cash payments related to the respective transactions.
(2) $1.6 million of the goodwill was amortizable for income tax purposes in 2008.
(3) 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.
NOTE 8 LICENSES AND GOODWILL
Changes in U.S. Cellular’s licenses and goodwill are presented below. See Note 7—Acquisitions,
Divestitures and Exchanges for information regarding transactions which affected licenses and goodwill
during the periods.
Licenses
Year Ended December 31, 2010 2009
(Dollars in thousands)
Balance, beginning of year ......................... $1,435,000 $1,433,415
Acquisitions .................................. 17,101 15,750
Impairment .................................. — (14,000)
Other ....................................... — (165)
Balance, end of year ............................. $1,452,101 $1,435,000
55