US Cellular 2014 Annual Report Download - page 62

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United States Cellular Corporation
Notes to Consolidated Financial Statements (Continued)
NOTE 6 ACQUISITIONS, DIVESTITURES AND EXCHANGES (Continued)
As a result of the transaction, U.S. Cellular recognized the following amounts in the Consolidated
Balance Sheet:
Year Ended December 31, 2014
Balance Balance
December 31, Costs Cash December 31,
2013 Incurred Settlements(1) Adjustments(2) 2014
(Dollars in thousands)
Accrued compensation
Employee related costs including
severance, retention,
outplacement ............. $ 2,053 $ 127 $ (1,223) $ (242) $ 715
Accounts payable—trade
Contract termination costs ...... $ — $ 4,018 $ — $ (1,190) $ 2,828
Other current liabilities
Contract termination costs ...... $13,992 $12,703 $(22,210) $ 3,747 $ 8,232
Other deferred liabilities and
credits
Contract termination costs ...... $30,849 $24,171 $ (3,569) $(30,411) $21,040
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
(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 in the Consolidated Statement of
Cash Flows.
(2) Adjustment to liability represents changes to previously accrued amounts.
Other Acquisitions, Divestitures and Exchanges
• In December 2014, U.S. Cellular entered into an agreement with a third party to sell 595 towers and
certain related contracts, assets, and liabilities for approximately $159 million. This transaction was
accomplished in two closings. The first closing occurred in December 2014 and included the sale of
236 towers, without tenants, for $10.0 million. On this same date, U.S. Cellular received $7.5 million in
earnest money. At the time of the first closing, a $3.8 million gain was recorded in (Gain) loss on sale
of business and other exit costs, net. The second closing for the remaining 359 towers, primarily with
tenants, took place in January 2015, at which time U.S. Cellular received $141.5 million in additional
cash proceeds and recorded a gain of approximately $107 million. The assets and liabilities subject to
the second closing have been classified as ‘‘held for sale’’ in the Consolidated Balance Sheet as of
December 31, 2014.
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