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United States Cellular Corporation
Notes to Consolidated Financial Statements (Continued)
NOTE 16 STOCK-BASED COMPENSATION (Continued)
The following table provides a summary of the stock-based compensation expense included in the
Consolidated Statement of Operations for the years ended:
December 31, 2014 2013 2012
(Dollars in thousands)
Selling, general and administrative expense ...................... $19,429 $12,933 $18,437
System operations ........................................ 2,954 2,911 3,029
Total stock-based compensation expense ........................ $22,383 $15,844 $21,466
At December 31, 2014, unrecognized compensation cost for all U.S. Cellular stock-based compensation
awards was $24.1 million and is expected to be recognized over a weighted average period of 2.0 years.
U.S. Cellular’s tax benefits realized from the exercise of stock options and other awards totaled
$5.3 million in 2014.
NOTE 17 SUPPLEMENTAL CASH FLOW DISCLOSURES
Following are supplemental cash flow disclosures regarding interest paid and income taxes paid.
Year Ended December 31, 2014 2013 2012
(Dollars in thousands)
Interest paid ........................................... $54,955 $ 42,904 $ 44,048
Income taxes paid (refunded) ............................... 33,276 157,778 (58,609)
Following are supplemental cash flow disclosures regarding transactions related to stock-based
compensation awards. In certain situations, U.S. Cellular withholds shares that are issuable upon the
exercise of stock options or the vesting of restricted shares to cover, and with a value equivalent to, the
exercise price and/or the amount of taxes required to be withheld from the stock award holder at the
time of the exercise or vesting. U.S. Cellular then pays the amount of the required tax withholdings to the
taxing authorities in cash.
Year Ended December 31, 2014 2013 2012
(Dollars in thousands)
Common Shares withheld ................................. 163,355 606,582 92,846
Aggregate value of Common Shares withheld ................... $ 6,868 $ 25,179 $ 3,604
Cash receipts upon exercise of stock options ................... 5,166 10,468 900
Cash disbursements for payment of taxes ...................... (4,336) (4,684) (3,105)
Net cash receipts (disbursements) from exercise of stock options and
vesting of other stock awards ............................. $ 830 $ 5,784 $ (2,205)
On September 27, 2012, the FCC conducted a single round, sealed bid, reverse auction to award up to
$300 million in one-time Mobility Fund Phase I support to successful bidders that commit to provide 3G,
or better, wireless service in areas designated as unserved by the FCC. This auction was designated by
the FCC as Auction 901. U.S. Cellular and several of its wholly-owned subsidiaries participated in Auction
901 and were winning bidders in eligible areas within 10 states and will receive up to $40.1 million in
one-time support from the Mobility Fund. These funds when received reduce the carrying amount of the
assets to which they relate or offset operating expenses. In connection with these winning bids, in June
2013, U.S. Cellular provided $17.4 million letters of credit to the FCC, of which the entire amount
remained outstanding as of December 31, 2014. U.S. Cellular has received $13.4 million in support funds
as of December 31, 2014, of which $1.9 million is included as a component of Other assets and deferred
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