US Cellular 2015 Annual Report Download - page 44

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31MAR201601273856
Capital expenditures (i.e., additions to property, plant and equipment and system development expenditures), which
include the effects of accruals and capitalized interest, in 2015, 2014 and 2013 were as follows:
In 2015, U.S. Cellular completed its deployment of 4G
LTE technology in certain markets and TDS Telecom
continued its fiber deployment and completed its
expansion of certain HMS data center facilities.
U.S. Cellular’s capital expenditures for 2016 are expected
to be approximately $500 million. These expenditures are
expected to be for the following general purposes:
ᔢExpand and enhance network coverage, including
construction of a new regional connectivity center and
providing additional capacity to accommodate
increased network usage, principally data usage, by
current customers;
ᔢDeploy VoLTE technology in certain markets;
ᔢExpand and enhance the retail store network; and
ᔢDevelop and enhance office systems.
TDS Telecom’s capital expenditures for 2016 are
expected to be approximately $180 million. These
expenditures are expected to be for the following general
purposes:
ᔢMaintain and enhance existing infrastructure at
Wireline, Cable and HMS;
ᔢComplete planned fiber expansion in Wireline and
Cable markets to support IPTV and super high-speed
data; and
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
2013 2014 2015
Corporate
and Other
HMS
Cable
Wireline
U.S. Cellular
ᔢSuccess-based spending to sustain managedIP, IPTV,
Cable and HMS growth.
TDS plans to finance its capital expenditures program for 2016 using primarily Cash flows from operating activities,
existing cash balances, borrowings under its revolving credit agreements and/or other long-term debt.
Acquisitions, Divestitures and Exchanges
TDS may be engaged from time to time in negotiations relating to the acquisition, divestiture or exchange of companies,
properties, wireless spectrum and other possible businesses. In general, TDS may not disclose such transactions until
36
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Capital Expenditures
(Dollars in millions)