US Cellular 2012 Annual Report Download - page 70

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United States Cellular Corporation
Notes to the Consolidated Financial Statements (Continued)
NOTE 11 ASSET RETIREMENT OBLIGATIONS (Continued)
In 2012 and 2011, 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 2012 and 2011, including the
Divestiture Transaction, were as follows:
2012 2011
(Dollars in thousands)
Balance, beginning of period .......................... $143,402 $128,709
Additional liabilities accrued ......................... 5,578 2,105
Revisions in estimated cash outflows(1) ................. 22,588 5,888
Disposition of assets .............................. (2,674) (1,323)
Accretion expense(2) .............................. 10,713 8,023
Balance, end of period .............................. $179,607 $143,402
(1) In 2012, included $14.9 million as a result of changes in expected settlement dates related
to the Divestiture Transaction.
(2) In 2012, included $0.2 million of incremental accretion related to the Divestiture Transaction.
NOTE 12 DEBT
Revolving Credit Facility
At December 31, 2012, U.S. Cellular had a revolving credit facility available for general corporate
purposes. Amounts under the revolving credit facility may be borrowed, repaid and reborrowed from time
to time until maturity. U.S. Cellular did not borrow under its current or previous revolving credit facilities in
2012, 2011 or 2010 except for letters of credit.
U.S. Cellular’s interest cost on its revolving credit facility is subject to increase if its current credit ratings
from nationally recognized credit rating agencies is lowered, and is subject to decrease if the ratings are
raised. The credit facility would not cease to be available nor would the maturity date accelerate solely
as a result of a downgrade in U.S. Cellular’s credit rating. However, a downgrade in U.S. Cellular’s credit
rating could adversely affect its ability to renew the credit facilities or obtain access to other credit
facilities in the future.
The maturity date of any borrowings under the U.S. Cellular revolving credit facility would accelerate in
the event of a change in control.
In 2012, the U.S. Cellular revolving credit facility was amended to extend the maturity date from
December 2015 to December 2017.
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