US Cellular 2011 Annual Report Download - page 26

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U.S. Cellular, at its discretion, may from time to time seek to retire or purchase its outstanding debt
through cash purchases and/or exchanges for other securities, in open market purchases, privately
negotiated transactions, tender offers, exchange offers or otherwise. Such repurchases or exchanges, if
any, will depend on prevailing market conditions, liquidity requirements, contractual restrictions and other
factors. The amounts involved may be material.
U.S. Cellular has an effective shelf registration statement on Form S-3 that it can use to issue senior debt
securities that can be used for general corporate purposes, including to finance the redemption of any of
the above existing debt. The U.S. Cellular shelf registration statement permits U.S. Cellular to issue at
any time and from time to time, senior debt securities in one or more offerings up to an aggregate
principal amount of $500 million. The ability of U.S. Cellular to complete an offering pursuant to such
shelf registration statement is subject to market conditions and other factors at the time.
Capital Expenditures
U.S. Cellular’s capital expenditures for 2012 are expected to be approximately $850 million. These
expenditures are expected to be for the following general purposes:
• Expand and enhance U.S. Cellular’s network coverage in its service areas, including providing
additional capacity to accommodate increased network usage, primarily data usage, by current
customers;
• Deploy 4G LTE technology in certain markets;
• Enhance U.S. Cellular’s retail store network;
• Develop and enhance office systems; and
• Develop new billing and other customer management related systems and platforms.
U.S. Cellular plans to finance its capital expenditures program for 2012 using cash flows from operating
activities, existing cash balances, short-term investments and, if necessary, debt.
Acquisitions, Divestitures and Exchanges
U.S. Cellular assesses its existing wireless interests on an ongoing basis with a goal of improving the
competitiveness of its operations and maximizing its long-term return on investment. As part of this
strategy, U.S. Cellular reviews attractive opportunities to acquire additional wireless operating markets
and wireless spectrum. In addition, U.S. Cellular may seek to divest outright or include in exchanges for
other wireless interests those wireless interests that are not strategic to its long-term success. U.S.
Cellular also may be engaged from time to time in negotiations relating to the acquisition, divestiture or
exchange of companies, strategic properties or wireless spectrum. In general, U.S. Cellular may not
disclose such transactions until there is a definitive agreement. See Note 8—Acquisitions, Divestitures
and Exchanges in the Notes to Consolidated Financial Statements for details on significant transactions
in 2011 and 2010.
Variable Interest Entities
U.S. Cellular consolidates certain entities because they are ‘‘variable interest entities’’ under accounting
principles generally accepted in the United States of America (‘‘GAAP’’). See Note 6—Variable Interest
Entities in the Notes to Consolidated Financial Statements for the details of these variable interest
entities. U.S. Cellular may elect to make additional capital contributions and/or advances to these
variable interest entities in future periods in order to fund their operations.
Common Share Repurchase Program
U.S. Cellular has repurchased and expects to continue to repurchase its Common Shares subject to the
repurchase program. For additional information related to the current repurchase authorization and
repurchases made during 2011, 2010 and 2009, see Note 15—Common Shareholders’ Equity in the
Notes to Consolidated Financial Statements.
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