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UNITED STATES CELLULAR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 11 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment in service and under construction, and related accumulated depreciation
and amortization, as of December 31, 2011 and 2010 were as follows:
Useful Lives
December 31, (Years) 2011 2010
(Dollars in thousands)
Land ........................................... N/A $ 30,807 $ 26,791
Buildings ........................................ 20 330,925 317,474
Leasehold and land improvements ..................... 1-30 1,129,818 1,048,278
Cell site equipment ................................ 6-25 2,874,397 2,676,878
Switching equipment ............................... 1-8 1,113,780 991,934
Office furniture and equipment ........................ 3-5 570,776 520,756
Other operating assets and equipment .................. 5-25 127,253 120,586
System development ............................... 3-7 545,193 471,334
Work in process ................................... N/A 285,500 166,506
7,008,449 6,340,537
Accumulated depreciation and amortization ............... (4,218,147) (3,766,015)
$ 2,790,302 $ 2,574,522
Depreciation and amortization expense totaled $565.1 million, $559.0 million and $551.7 million in 2011,
2010 and 2009, respectively.
In 2011, 2010 and 2009, (Gain) loss on asset disposals and exchanges, net included charges of
$9.9 million, $10.7 million and $16.2 million, respectively, related to disposals of assets, trade-ins of older
assets for replacement assets and other retirements of assets from service.
NOTE 12 ASSET RETIREMENT OBLIGATIONS
U.S. Cellular is subject to asset retirement obligations associated with its leased cell sites, switching
office sites, retail store sites and office locations in its operating markets. Asset retirement obligations
generally include obligations to restore leased land and retail store and office premises to their pre-lease
conditions. These obligations are included in Other deferred liabilities and credits in the Consolidated
Balance Sheet.
During 2011 and 2010, U.S. Cellular performed a review of the assumptions and estimated costs related
to its asset retirement obligations. The results of the reviews (identified as ‘‘Revisions in estimated cash
outflows’’) and other changes in asset retirement obligations during 2011 and 2010 were as follows:
2011 2010
(Dollars in thousands)
Balance, beginning of period .......................... $128,709 $118,742
Additional liabilities accrued ......................... 2,105 4,757
Revisions in estimated cash outflows .................. 5,888 (1,382)
Disposition of assets .............................. (1,323) (2,086)
Accretion expense ................................ 8,023 8,678
Balance, end of period .............................. $143,402 $128,709
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