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Noncontrolling Interests
6 Months Ended
Jun. 30, 2013
Disclosure Text Block  
Noncontrolling Interests

11. Noncontrolling Interests

 

The following schedule discloses the effects of Net income attributable to TDS shareholders and changes in TDS' ownership interest in U.S. Cellular on TDS' equity for the six months ended June 30, 2013 and 2012:

 

    Six Months Ended
    June 30,
    2013 2012
(Dollars in thousands) 
Net income attributable to TDS shareholders$ 157,496 $ 94,591
 Transfer (to) from the noncontrolling interests     
  Change in TDS' Capital in excess of par value from U.S. Cellular's issuance of U.S. Cellular shares  (9,712)   (8,318)
  Change in TDS' Capital in excess of par value from U.S. Cellular's repurchase of U.S. Cellular shares  3,470   -
  Net transfers (to) from noncontrolling interests  (6,242)   (8,318)
  Change from net income attributable to TDS and transfers (to) from noncontrolling interests$ 151,254 $ 86,273

Mandatorily Redeemable Noncontrolling Interests in Finite-Lived Subsidiaries

 

TDS' consolidated financial statements include certain noncontrolling interests that meet the GAAP definition of mandatorily redeemable financial instruments. These mandatorily redeemable noncontrolling interests represent interests held by third parties in consolidated partnerships and limited liability companies (“LLCs”), where the terms of the underlying partnership or LLC agreement provide for a defined termination date at which time the assets of the subsidiary are to be sold, the liabilities are to be extinguished and the remaining net proceeds are to be distributed to the noncontrolling interest holders and TDS in accordance with the respective partnership and LLC agreements. The termination dates of these mandatorily redeemable noncontrolling interests range from 2085 to 2107.

 

The estimated aggregate amount that would be due and payable to settle all of these noncontrolling interests, assuming an orderly liquidation of the finite-lived consolidated partnerships and LLCs on June 30, 2013, net of estimated liquidation costs, is $33.5 million. This amount excludes redemption amounts recorded in Noncontrolling interests with redemption features in the Consolidated Balance Sheet. The estimate of settlement value was based on certain factors and assumptions which are subjective in nature. Changes in those factors and assumptions could result in a materially larger or smaller settlement amount. TDS currently has no plans or intentions relating to the liquidation of any of the related partnerships or LLCs prior to their scheduled termination dates. The corresponding carrying value of the mandatorily redeemable noncontrolling interests in finite-lived consolidated partnerships and LLCs at June 30, 2013 was $10.0 million, and is included in Noncontrolling interests in the Consolidated Balance Sheet. The excess of the aggregate settlement value over the aggregate carrying value of these mandatorily redeemable noncontrolling interests is due primarily to the unrecognized appreciation of the noncontrolling interest holders' share of the underlying net assets in the consolidated partnerships and LLCs. Neither the noncontrolling interest holders' share, nor TDS' share, of the appreciation of the underlying net assets of these subsidiaries is reflected in the consolidated financial statements.