US Cellular 2015 Annual Report Download - page 101

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The following estimated future benefit payments, which reflect expected future service, are expected to be paid:
Estimated Future
Post-Retirement
Year Benefit Payments
(Dollars in thousands)
2016 .................................................................... $ 1,823
2017 .................................................................... 1,969
2018 .................................................................... 2,061
2019 .................................................................... 2,163
2020 .................................................................... 2,257
2021-2025 ................................................................. 12,229
NOTE 13 COMMITMENTS AND CONTINGENCIES
Agreements
In November 2014, U.S. Cellular executed a Master Statement of Work and certain other documents with Amdocs
Software Systems Limited (‘‘Amdocs’’). The agreement provides that U.S. Cellular will outsource to Amdocs certain
support functions for its Billing and Operational Support System (‘‘B/OSS’’). Such functions include application support,
billing operations and some infrastructure services. The agreement has a term through September 30, 2019, subject to
five one-year renewal periods at U.S. Cellular’s option. The estimated amount to be paid to Amdocs with respect to the
agreement during the remaining term is approximately $83 million (exclusive of travel and expenses and subject to
certain potential adjustments).
During 2013, U.S. Cellular entered into agreements with Apple to purchase certain minimum quantities of Apple iPhone
products and fund marketing programs related to the Apple iPhone and iPad products over a three-year period
beginning in November 2013. Based on current forecasts, TDS estimates that the remaining contractual commitment as
of December 31, 2015 under these agreements is approximately $196 million. At this time, TDS expects to meet its
contractual commitments with Apple.
Lease Commitments
TDS and its subsidiaries have leases for certain plant facilities, office space, retail store sites, cell sites, data centers and
data-processing 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, 2015, 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)
2016 ...................................................... $ 156,882 $ 48,304
2017 ...................................................... 136,248 40,180
2018 ...................................................... 117,806 31,940
2019 ...................................................... 100,894 21,608
2020 ...................................................... 87,993 10,184
Thereafter ................................................... 724,217 1,238
Total ...................................................... $ 1,324,040 $ 153,454
For 2015, 2014 and 2013, rent expense for noncancellable long-term leases was $168.4 million, $177.0 million and
$187.4 million, respectively; and rent expense under cancellable short-term leases was $10.8 million, $8.8 million and
$12.5 million, respectively.
93
TELEPHONE AND DATA SYSTEMS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS