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Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2012
Stock based compensation  
Stock-based compensation
Year Ended December 31,2012 2011 2010
(Dollars in thousands)        
Stock option awards $ 20,884 $ 20,443 $ 18,623
Restricted stock unit awards   19,025   14,905   14,781
Deferred compensation bonus and matching stock unit awards   749   124   269
Employee stock purchase plans   -   485   566
Awards under Non-Employee Director compensation plan   1,213   880   889
Total stock-based compensation, before income taxes   41,871   36,837   35,128
Income tax benefit   (15,848)   (13,862)   (13,288)
Total stock-based compensation expense, net of income taxes $ 26,023 $ 22,975 $ 21,840
Stock-based compensation, allocation by financial statement line item
December 31,  2012  2011  2010
(Dollars in thousands)        
Selling, general and administrative expense$ 38,563 $ 33,949 $ 32,838
Cost of services and products  3,308   2,888   2,290
Total stock-based compensation$ 41,871 $ 36,837 $ 35,128
Stock-based compensation, fair value assumptions
TDS estimated the fair value of stock options granted in 2012, 2011 and 2010 using the Black Scholes valuation model and the assumptions shown in the table below:
         
 2012 2011 2010
Expected life 5.5 Years  5.5 Years  5.3 Years 
Expected annual volatility rate 41.1% 37.6% 37.8%
Dividend yield 2.4% 1.6% 1.7%
Risk-free interest rate 0.9% 2.1% 2.1%
Estimated annual forfeiture rate 2.9% 3.0% 3.0%

U.S. Cellular estimated the fair value of stock options granted during 2012, 2011, and 2010 using the Black Scholes valuation model and the assumptions shown in the table below.
       
  2012 2011 2010
Expected life 4.5 years 4.3 years 0.9-8.0 years
Expected volatility 40.7%-42.6% 43.4%-44.8% 26.9%-43.9%
Dividend yield 0% 0% 0%
Risk-free interest rate 0.5%-0.9% 0.7%-2.0% 0.4%-3.1%
Estimated annual forfeiture rate 0.0%-9.1% 0.0%-7.8% 0.0%-8.4%
Summary of stock options
Tandem Options Number of Options  Weighted Average Exercise Price Weighted Average Grant Date Fair Value Aggregate Intrinsic Value
Outstanding at December 31, 2009  901,000 $ 81.73      
(901,000 exercisable)     81.73      
 Exercised   (2,000)   45.53    $ 46,000
 Forfeited   -  -       
 Expired   (248,000)   113.56      
Outstanding at December 31, 2010  651,000 $ 69.60      
(651,000 exercisable)     69.60      
 Exercised   (2,000)   53.77    $ 30,000
 Forfeited   -   -       
 Expired   (78,000)   99.23      
 Reclassification of Tandem Options due to Share Consolidation  (571,000)   65.64    $ 158,000
Outstanding at December 31, 2011  -         

Special Common Share Options Number ofOptions Weighted Average Exercise Prices Weighted Average Grant Date Fair Value Aggregate Intrinsic Value
Outstanding at December 31, 2009   3,860,000 $ 38.46      
(1,732,000 exercisable)      48.91      
 Granted    1,387,000   26.66 $ 8.37   
 Exercised    (5,000)   26.95    $ 17,000
 Forfeited    (105,000)   29.64      
 Expired    (29,000)   45.16      
Outstanding at December 31, 2010   5,108,000 $ 35.41      
(2,506,000 exercisable)      43.14      
 Granted    1,034,000   29.94 $ 9.59   
 Exercised    (5,000)   26.95    $ 19,000
 Forfeited    (34,000)   28.12      
 Expired   (79,000)   35.00      
 Reclassification of Special Common Options due to Share Consolidation   (6,024,000) $ 34.38    $ -
Outstanding at December 31, 2011   -         

             Weighted
             Average
    Weighted Weighted    Remaining
    Average Average Aggregate Contractual
  Number of Exercise Grant Date Intrinsic Life
Common Share Options Options Prices Fair Value Value (in years)
Outstanding at December 31, 2010  -  $ -         
Reclassification of Tandem Options due to Share Consolidation  1,192,000   31.45        
Reclassification of Special Common Options due to Share Consolidation  6,024,000   34.38        
Outstanding at December 31, 2011  7,216,000 $ 33.89        
(4,865,000 exercisable)     36.67        
Granted  1,702,000  20.79 $6.28     
Exercised  (1,000)  20.65    $4,000  
Forfeited  (106,000)  23.81        
Expired  (298,000)  30.12        
Outstanding at December 31, 2012  8,513,000 $31.53    $2,279,000 6.4
(5,782,000 exercisable)   $35.12    $68,000 5.2

             Weighted
             Average
    Weighted Weighted    Remaining
    Average Average Aggregate Contractual
  Number of Exercise Grant Date Intrinsic Life
  Options Price Fair Value Value (in years)
              
Outstanding at December 31, 2009  2,029,000 $ 51.37        
(1,046,000 exercisable)     54.40        
Granted   831,000   41.98 $ 13.75     
Exercised   (317,000)   38.60    $ 1,555,000  
Forfeited   (88,000)   44.28        
Expired   (193,000)   61.50        
Outstanding at December 31, 2010  2,262,000 $ 49.12        
(1,151,000 exercisable)     54.64        
Granted   595,000   51.70 $ 19.42     
Exercised   (173,000)   37.50    $ 2,099,000  
Forfeited   (72,000)   45.97        
Expired   (175,000)   57.05        
Outstanding at December 31, 2011  2,437,000 $ 50.10        
(1,321,000 exercisable)     53.68        
Granted   580,000   40.70 $ 14.71     
Exercised   (41,000)   34.27    $ 205,000  
Forfeited   (97,000)   44.81        
Expired   (116,000)   52.92        
Outstanding at December 31, 2012  2,763,000 $ 48.43    $ 513,000  6.60
(1,657,000 exercisable)   $ 51.20    $ 513,000  5.30
Summary of nonvested restricted stock units
Common Restricted Stock Units Number Weighted AverageGrant Date Fair Value 
Nonvested at December 31, 2011  389,000 $ 27.45 
Granted  333,000 $ 19.62 
Vested  (151,000) $ 25.73 
Forfeited  (24,000) $ 24.10 
Nonvested at December 31, 2012  547,000 $ 23.44 

  Number Weighted AverageGrant Date Fair Value 
Nonvested at December 31, 2011  845,000 $ 42.48 
Granted  468,000   39.75 
Vested  (225,000)   32.96 
Forfeited  (75,000)   43.74 
Nonvested at December 31, 2012  1,013,000 $ 43.24