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United States Cellular Corporation
Notes to Consolidated Financial Statements (Continued)
NOTE 5 ACQUISITIONS, DIVESTITURES AND EXCHANGES (Continued)
settlement dates of certain asset retirement obligations in conjunction with the Divestiture Transaction.
Specifically, for the years indicated, this is estimated depreciation, amortization and accretion recorded
on assets and liabilities of the Divestiture Markets after the November 6, 2012 transaction date less
depreciation, amortization and accretion that would have been recorded on such assets and liabilities in
the normal course, absent the Divestiture Transaction.
As a result of the transaction, U.S. Cellular recognized the following amounts in the Consolidated
Balance Sheet:
Year Ended December 31, 2013
Balance Balance
December 31, Costs Cash December 31,
2012 Incurred Settlements(1) Adjustments(2) 2013
(Dollars in thousands)
Accrued compensation
Employee related costs including
severance, retention,
outplacement ............. $12,305 $ 6,853 $(11,905) $(5,200) $ 2,053
Other current liabilities
Contract termination costs ...... $ 30 $22,675 $ (8,713) $ — $13,992
Other deferred liabilities and
credits
Contract termination costs ...... $ — $34,283 $ (3,434) $ — $30,849
Year Ended December 31, 2012
Balance Balance
November 6, Costs Cash December 31,
2012 Incurred Settlements(1) Adjustments(2) 2012
(Dollars in thousands)
Accrued compensation
Employee related costs including
severance, retention,
outplacement ............... $ — $12,609 $ (304) $ — $12,305
Other current liabilities
Contract termination costs ...... $ — $ 59 $ (29) $ — $ 30
(1) Cash settlement amounts are included in either the Net income or changes in Other assets and
liabilities line items as part of Cash flows from operating activities on the Consolidated Statement of
Cash Flows.
(2) Adjustment to liability represents changes to previously accrued amounts.
Other Acquisitions, Divestitures and Exchanges
On October 4, 2013, U.S. Cellular sold the majority of its Mississippi Valley non-operating market license
(‘‘unbuilt license’’) for $308.0 million. At the time of the sale, a $250.6 million gain was recorded in (Gain)
loss on license sales and exchanges in the Consolidated Statement of Operations.
On August 14, 2013 U.S. Cellular entered into a definitive agreement to sell the majority of its St. Louis
area unbuilt license for $92.3 million. This transaction is subject to regulatory approval and is expected to
close in the first quarter of 2014. In accordance with GAAP, the book value of the license has been
accounted for and disclosed as ‘‘held for sale’’ in the Consolidated Balance Sheet at December 31,
2013.
On November 20, 2012, U.S. Cellular acquired seven 700 MHz licenses covering portions of Illinois,
Michigan, Minnesota, Missouri, Nebraska, Oregon, Washington and Wisconsin for $57.7 million.
On August 15, 2012, U.S. Cellular acquired four 700 MHz licenses covering portions of Iowa, Kansas,
Missouri, Nebraska and Oklahoma for $34.0 million.
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