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United States Cellular Corporation
Notes to Consolidated Financial Statements (Continued)
NOTE 8 PROPERTY, PLANT AND EQUIPMENT (Continued)
Depreciation and amortization expense totaled $791.1 million, $597.7 million and $565.1 million in 2013,
2012 and 2011, respectively. As a result of the Divestiture Transaction, U.S. Cellular recognized
incremental depreciation and amortization in 2012 and 2013. See Note 5—Acquisitions, Divestitures and
Exchanges for additional information.
In 2013, 2012 and 2011, (Gain) loss on asset disposals, net included charges of $30.6 million,
$18.1 million and $9.9 million, respectively, related to disposals of assets, trade-ins of older assets for
replacement assets and other retirements of assets from service in the normal course of business.
NOTE 9 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 and Other current
liabilities in the Consolidated Balance Sheet.
In 2013 and 2012, 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 2013 and 2012, including the
Divestiture Transaction, were as follows:
(Dollars in thousands) 2013 2012
Balance, beginning of period .......................... $179,607 $143,402
Additional liabilities accrued ......................... 635 5,578
Revisions in estimated cash outflows(1) ................. 6,268 22,588
Disposition of assets(2) ............................ (3,534) (2,674)
Accretion expense(3) .............................. 12,592 10,713
Balance, end of period(4) ............................ $195,568 $179,607
(1) Included increases of $14.9 million as a result of changes in expected settlement dates
related to the Divestiture Transaction in 2012.
(2) Included $2.0 million of incremental disposition costs related to the Divestiture Transaction
in 2013.
(3) Included $1.1 million and $0.2 million of incremental accretion related to the Divestiture
Transaction in 2013 and 2012, respectively.
(4) In 2013, as a result of the accelerated settlement dates of certain asset retirement
obligations related to the Divestiture Transaction, U.S. Cellular reclassified $37.7 million of
its asset retirement obligations from Other deferred liabilities and credits to Other current
liabilities.
NOTE 10 DEBT
Revolving Credit Facility
At December 31, 2013, 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
2013, 2012 or 2011 except for letters of credit.
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