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United States Cellular Corporation
Notes to Consolidated Financial Statements (Continued)
NOTE 6 INTANGIBLE ASSETS
Changes in U.S. Cellular’s Licenses and Goodwill are presented below. See Note 5—Acquisitions,
Divestitures and Exchanges for information regarding transactions which affected Licenses and Goodwill
during the periods.
Licenses
Year Ended December 31, 2013 2012
(Dollars in thousands)
Balance, beginning of year ......................... $1,456,794 $1,470,769
Acquisitions .................................... 16,540 122,690
Divestitures .................................... (59,419) —
Transferred to Assets held for sale ................... (16,027) (140,599)
Other ........................................ 3,238 3,934
Balance, end of year ............................. $1,401,126 $1,456,794
Goodwill
Year Ended December 31, 2013 2012
(Dollars in thousands)
Assigned value at time of acquisition .................... $494,737 $494,737
Accumulated impairment losses in prior periods .......... — —
Transferred to Assets held for sale .................... (72,994) —
Balance, beginning of year ........................... 421,743 494,737
Divestitures ..................................... (505) —
Transferred to Assets held for sale .................... — (72,994)
NY1 & NY2 Deconsolidation ......................... (33,714) —
Balance, end of year ................................ $387,524 $421,743
NOTE 7 INVESTMENTS IN UNCONSOLIDATED ENTITIES
Investments in unconsolidated entities consist of amounts invested in wireless entities in which U.S.
Cellular holds a noncontrolling interest. These investments are accounted for using either the equity or
cost method as shown in the following table:
December 31, 2013 2012
(Dollars in thousands)
Equity method investments:
Capital contributions, loans, advances and adjustments . . $ 121,571 $ 10,323
Cumulative share of income ...................... 1,152,916 1,017,449
Cumulative share of distributions .................. (1,010,513) (884,852)
263,974 142,920
Cost method investments ......................... 1,611 1,611
Total investments in unconsolidated entities ............ $ 265,585 $ 144,531
Equity in earnings of unconsolidated entities totaled $131.9 million, $90.4 million and $83.6 million in
2013, 2012 and 2011, respectively; of those amounts, U.S. Cellular’s investment in the Los Angeles
SMSA Limited Partnership (‘‘LA Partnership’’) contributed $78.4 million, $67.2 million and $55.3 million in
2013, 2012 and 2011, respectively. U.S. Cellular held a 5.5% ownership interest in the LA Partnership
throughout and at the end of each of these years.
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