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UNITED STATES CELLULAR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 13 COMMITMENTS AND CONTINGENCIES (Continued)
As of December 31, 2010, future minimum rental payments required under operating and capital leases
and rental receipts expected under operating leases that have noncancellable lease terms in excess of
one year were as follows:
Operating Leases Operating Leases Capital Leases
Future Minimum Future Minimum Future Minimum
Rental Payments Rental Receipts Rental Payments
(Dollars in thousands)
2011 ................................. $ 142,437 $ 33,813 $ 532
2012 ................................. 120,887 28,723 544
2013 ................................. 101,211 22,100 560
2014 ................................. 77,111 16,170 568
2015 ................................. 59,812 7,237 576
Thereafter ............................. 676,671 634 5,811
Total ................................. $1,178,129 $108,677 8,591
Less: Interest expense .................... (4,206)
Present value of minimum lease payments .................................. 4,385
Less: Current portion of obligations under capital leases ........................ (101)
Long-term portion of obligations under capital leases .......................... $4,284
Rent expense totaled $163.1 million, $155.7 million and $138.6 million in 2010, 2009 and 2008,
respectively.
Rent revenue totaled $35.4 million, $31.8 million and $26.8 million in 2010, 2009 and 2008, respectively.
Agreements
On August 17, 2010, U.S. Cellular and Amdocs Software Systems Limited (‘‘Amdocs’’) entered into
agreements to develop a Billing and Operational Support System (‘‘B/OSS’’). Amdocs will license to U.S.
Cellular certain customer order and relationship management, revenue management and billing software
relating to the B/OSS.
The implementation of the licensed systems commenced in September 2010, and is expected to take
over two years to complete. The total estimated amount to be paid to Amdocs with respect to the
agreements for delivery of the B/OSS is $73 million, and is expected to be paid out from August 2010 to
October 2012. At December 31, 2010, $11 million of the total $73 million commitment has been paid to
Amdocs. U.S. Cellular anticipates capitalizing a majority of these costs as Systems development costs
and amortizing such capitalized costs over the estimated useful life of the B/OSS system. U.S. Cellular
also is committed to purchase maintenance for an aggregate amount of approximately $35 million over a
period of seven years, beginning in 2013.
Indemnifications
U.S. Cellular enters into agreements in the normal course of business that provide for indemnification of
counterparties. The terms of the indemnifications vary by agreement. The events or circumstances that
would require U.S. Cellular to perform under these indemnities are transaction specific; however, these
agreements may require U.S. Cellular to indemnify the counterparty for costs and losses incurred from
litigation or claims arising from the underlying transaction. U.S. Cellular is unable to estimate the
maximum potential liability for these types of indemnifications as the amounts are dependent on the
outcome of future events, the nature and likelihood of which cannot be determined at this time.
Historically, U.S. Cellular has not made any significant indemnification payments under such agreements.
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