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United States Cellular Corporation
Notes to Consolidated Financial Statements (Continued)
NOTE 10 DEBT (Continued)
U.S. Cellular does not have any annual requirements for principal payments on long-term debt over the
next five years (excluding capital lease obligations).
The covenants associated with U.S. Cellular’s long-term debt obligations, among other things, restrict
U.S. Cellular’s ability, subject to certain exclusions, to incur additional liens, enter into sale and leaseback
transactions, and sell, consolidate or merge assets.
U.S. Cellular’s long-term debt indentures do not contain any provisions resulting in acceleration of the
maturities of outstanding debt in the event of a change in U.S. Cellular’s credit rating. However, a
downgrade in U.S. Cellular’s credit rating could adversely affect its ability to obtain long-term debt
financing in the future.
NOTE 11 COMMITMENTS AND CONTINGENCIES
Agreements
As previously disclosed, on August 17, 2010, U.S. Cellular and Amdocs Software Systems Limited
(‘‘Amdocs’’) entered into a Software License and Maintenance Agreement (‘‘SLMA’’) and a Master
Service Agreement (‘‘MSA’’) (collectively, the ‘‘Amdocs Agreements’’) to develop a Billing and
Operational Support System (‘‘B/OSS’’). In July 2013, U.S. Cellular implemented B/OSS, pursuant to an
updated Statement of Work dated June 29, 2012. Total payments to Amdocs related to this
implementation are estimated to be approximately $183.9 million (subject to certain potential
adjustments) over the period from commencement of the SLMA through the first half of 2014. As of
December 31, 2013, $136.8 million had been paid to Amdocs.
Lease Commitments
U.S. Cellular is a party to various lease agreements, both as lessee and lessor, for office space, retail
store sites, cell sites and equipment which are accounted for as operating leases. Certain leases have
renewal options and/or fixed rental increases. Renewal options that are reasonably assured of exercise
are included in determining the lease term. Any rent abatements or lease incentives, in addition to fixed
rental increases, are included in the calculation of rent expense and calculated on a straight-line basis
over the defined lease term.
As of December 31, 2013, future minimum rental payments required under operating leases and rental
receipts expected under operating leases that have noncancellable lease terms in excess of one year
were as follows:
Operating Leases Operating Leases
Future Minimum Future Minimum
Rental Payments Rental Receipts
(Dollars in thousands)
2014 ................................................ $ 152,349 $ 46,357
2015 ................................................ 134,852 36,847
2016 ................................................ 116,397 26,201
2017 ................................................ 97,098 17,226
2018 ................................................ 79,166 6,521
Thereafter ............................................ 783,730 227
Total ................................................ $1,363,592 $133,379
Rent expense totaled $162.1 million, $183.9 million and $171.6 million in 2013, 2012 and 2011,
respectively.
Rent revenue totaled $45.7 million, $41.7 million and $39.2 million in 2013, 2012 and 2011, respectively.
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