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UNITED STATES CELLULAR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 16 STOCK-BASED COMPENSATION (Continued)
stock issued under these plans was required. Compensation cost is measured as the difference between
the cost of the shares to plan participants and the market value of the shares on the date of issuance.
Compensation of Non-Employee Directors—U.S. Cellular issued 6,600, 9,000 and 5,200 Common Shares
in 2011, 2010 and 2009, respectively, under its Non-Employee Director compensation plan.
Stock-Based Compensation Expense
The following table summarizes stock-based compensation expense recognized during 2011, 2010 and
2009:
Year Ended December 31, 2011 2010 2009
(Dollars in thousands)
Stock option awards ....................................... $ 9,549 $ 7,179 $ 7,024
Restricted stock unit awards ................................. 10,037 10,056 8,640
Deferred compensation matching stock unit awards ................ 12 165 151
Awards under employee stock purchase plan ..................... 255 314 241
Awards under Non-Employee Director compensation plan ............ 330 330 306
Total stock-based compensation, before income taxes ............... 20,183 18,044 16,362
Income tax benefit ........................................ (7,581) (6,812) (6,154)
Total stock-based compensation expense, net of income taxes ........ $12,602 $11,232 $10,208
The following table provides a summary of the stock-based compensation expense included in the
Consolidated Statement of Operations for the years ended:
December 31, 2011 2010 2009
(Dollars in thousands)
Selling, general and administrative expense ...................... $17,538 $16,009 $14,512
System operations ........................................ 2,645 2,035 1,850
Total stock-based compensation expense ........................ $20,183 $18,044 $16,362
At December 31, 2011, unrecognized compensation cost for all U.S. Cellular stock-based compensation
awards was $24.1 million and is expected to be recognized over a weighted average period of 2.0 years.
U.S. Cellular’s tax benefits realized from the exercise of stock options and other awards totaled
$4.6 million in 2011.
NOTE 17 SUPPLEMENTAL CASH FLOW DISCLOSURES
Following are supplemental cash flow disclosures regarding interest paid and income taxes paid.
Year Ended December 31, 2011 2010 2009
(Dollars in thousands)
Interest paid ............................................ $60,604 $59,049 $77,877
Income taxes paid (refunded) ................................ $(54,469) $53,050 $36,863
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