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United States Cellular Corporation
Notes to Consolidated Financial Statements (Continued)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING
PRONOUNCEMENTS (Continued)
Defined Contribution Plans
U.S. Cellular participates in a qualified noncontributory defined contribution pension plan sponsored by
TDS; such plan provides pension benefits for the employees of U.S. Cellular and its subsidiaries. Under
this plan, pension benefits and costs are calculated separately for each participant and are funded
currently. Pension costs were $10.6 million, $10.4 million and $12.4 million in 2014, 2013 and 2012,
respectively.
U.S. Cellular also participates in a defined contribution retirement savings plan (‘‘401(k) plan’’) sponsored
by TDS. Total costs incurred for U.S. Cellular’s contributions to the 401(k) plan were $14.9 million,
$15.4 million and $17.1 million in 2014, 2013 and 2012, respectively.
Recently Issued Accounting Pronouncements
On April 10, 2014, the FASB issued Accounting Standards Update 2014-08, Reporting Discontinued
Operations and Disclosures of Disposals of Components of an Entity (‘‘ASU 2014-08’’). ASU 2014-08
changes the requirements and disclosures for reporting discontinued operations. U.S. Cellular was
required to adopt the provisions of ASU 2014-08 effective January 1, 2015, but early adoption was
permitted. U.S. Cellular adopted the provisions of ASU 2014-08 upon its issuance. The adoption of ASU
2014-08 did not have a significant impact on U.S. Cellular’s financial position or results of operations.
On May 28, 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with
Customers (‘‘ASU 2014-09’’). ASU 2014-09 outlines a single comprehensive model to use in accounting
for revenue arising from contracts with customers. U.S. Cellular is required to adopt the provisions of
ASU 2014-09 effective January 1, 2017. Early adoption is prohibited. U.S. Cellular is evaluating what
effects the adoption of ASU 2014-09 will have on U.S. Cellular’s financial position and results of
operations.
On August 27, 2014, the FASB issued Accounting Standards Update 2014-15, Disclosure of Uncertainties
about an Entity’s Ability to Continue as a Going Concern (‘‘ASU 2014-15’’). ASU 2014-15 requires
management to perform interim and annual assessments of an entity’s ability to continue as a going
concern within one year of the date financial statements are issued and provides guidance on
determining when and how to disclose going concern uncertainties in financial statements. U.S. Cellular
is required to adopt the provisions of ASU 2014-15 effective January 1, 2016, but early adoption is
permitted. The adoption of ASU 2014-15 is not expected to impact U.S. Cellular’s financial position or
results of operations.
On January 9, 2015, the FASB issued Accounting Standards Update 2015-01, Simplifying Income
Statement Presentation by Eliminating the Concept of Extraordinary Items (‘‘ASU 2015-01’’). ASU 2015-01
eliminates from GAAP the requirement to separately classify, present and disclose extraordinary events
and transactions. U.S. Cellular is required to adopt the provisions of ASU 2015-01 effective January 1,
2016, but early adoption is permitted. The adoption of ASU 2015-01 is not expected to impact U.S.
Cellular’s financial position or results of operations.
On February 18, 2015, the FASB issued Accounting Standards Update 2015-02, Consolidation:
Amendments to the Consolidation Analysis (‘‘ASU 2015-02’’). ASU 2015-02 simplifies consolidation
accounting by reducing the number of consolidation models and changing various aspects of current
GAAP, including certain consolidation criteria for variable interest entities. U.S. Cellular is required to
adopt the provisions of ASU 2015-02 effective January 1, 2016. Early adoption is permitted. U.S. Cellular
is still assessing the impact, if any, the adoption of ASU 2015-02 will have on U.S. Cellular’s financial
position or results of operations.
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