Acquisitions Divestitures and Exchanges (Tables)

6 Months Ended

Jun. 30, 2013

Business Acquisition Purchase Price Allocation [Abstract]

Acquisitions, Divestitures and Exchanges

	TDS' acquisitions during the six months ended June 30, 2013 and 2012 and the allocation of the purchase price for these acquisitions were as follows:
					Allocation of Purchase Price
			Purchase Price (1)		Goodwill (2)		Licenses		Intangible Assets Subject to Amortization (3)		Net Tangible Assets/(Liabilities)
(Dollars in thousands)
2013
U.S. Cellular licenses			$	14,150	$	-	$	14,150	$	-	$	-
2012
U.S. Cellular licenses			$	12,647	$	-	$	12,647	$	-	$	-
TDS Telecom HMS business				46,126		20,364		-		20,300		5,462
	Total		$	58,773	$	20,364	$	12,647	$	20,300	$	5,462
(1)		Cash amounts paid for acquisitions may differ from the purchase price due to cash acquired in the transactions and the timing of cash payments related to the respective transactions.
(2)		The entire amount of Goodwill acquired in 2012 was amortizable for income tax purposes.
(3)		The weighted average amortization period for Intangible Assets Subject to Amortization acquired in 2012 was 8.1 years.

Divestiture Financial Impacts

Business divestiture financial impacts

(Dollars in thousands)			Expected Period of Recognition		Projected Range				Cumulative Amount Recognized as of June 30, 2013		Actual Amount Recognized Six Months Ended June 30, 2013		Actual Amount Recognized Three Months Ended June 30, 2013
(Gain) loss on sale of business and other exit costs, net
	Proceeds from Sprint
		Purchase price		2013	$	(480,000)	$	(480,000)	$	(480,000)	$	(480,000)	$	(480,000)
		Sprint Cost Reimbursement		2013-2014		(120,000)		(160,000)		(8)		(8)		(8)
	Net assets transferred			2013		160,073		160,073		160,073		160,073		160,073
	Non-cash charges for the write-off and write-down of property under construction and related assets			2012-2013		11,000		15,000		10,753		81		(141)
	Employee related costs including severance, retention and outplacement			2012-2014		16,000		25,000		15,712		3,103		53
	Contract termination costs			2012-2014		125,000		175,000		16,664		16,605		13,705
	Transaction costs			2012-2013		4,000		6,000		4,856		3,719		2,801
		Total (Gain) loss on sale of business and other exit costs, net			$	(283,927)	$	(258,927)	$	(271,950)	$	(296,427)	$	(303,517)
Depreciation, amortization and accretion expense
	Incremental depreciation, amortization and accretion, net of salvage values			2012-2014		175,000		210,000		108,382		88,324		50,278
Other Operating expenses
	Non-cash charges for the write-off and write-down of various operating assets and liabilities			2013		-		10,000		-		-		-
(Increase) decrease in Operating income					$	(108,927)	$	(38,927)	$	(163,568)	$	(208,103)	$	(253,239)

	As a result of the transaction, TDS recognized the following amounts in the Consolidated Balance Sheet:
					Six Months Ended June 30, 2013
(Dollars in thousands)			Balance December 31, 2012		Costs Incurred		Cash Settlements (1)		Non-cash Settlements		Adjustments		Other		Balance June 30, 2013
Accrued compensation
	Employee related costs including severance, retention, outplacement		$	12,305	$	6,037	$	(10,282)	$	-	$	(2,934)	$	372	$	5,498
Other current liabilities
	Contract termination costs		$	30	$	10,183	$	(3,405)	$	-	$	-	$	942	$	7,750
Other deferred liabilities and credits
	Contract termination costs		$	-	$	6,421	$	-	$	-	$	-	$	-	$	6,421
(1)		Cash settlement amounts are included in either the Net income or changes in Other assets and liabilities line items as part of Cash flows from operating activities on the Consolidated Statement of Cash Flows.

Assets and Liabilities held for sale

	At June 30, 2013 and December 31, 2012, the following assets and liabilities were classified in the Consolidated Balance Sheet as "Assets held for sale" and "Liabilities held for sale":
			Current Assets		Licenses		Goodwill		Property, Plant and Equipment		Loss on Assets Held for Sale (1)		Total Assets Held for Sale		Liabilities Held for Sale (2)
(Dollars in thousands)
June 30, 2013
Divestiture of Missouri Market (3)			$	633	$	2,909	$	178	$	3,179		(366)	$	6,533	$	559
Divestiture of Spectrum Licenses				-		71,856		-		-		-		71,856		-
	Total		$	633	$	74,765	$	178	$	3,179	$	(366)	$	78,389	$	559
December 31, 2012
Divestiture Transaction			$	-	$	140,599	$	19,474	$	-	$	-	$	160,073	$	19,594
Bolingbrook Customer Care Center (4)				-		-		-		4,274		(1,105)		3,169		-
	Total		$	-	$	140,599	$	19,474	$	4,274	$	(1,105)	$	163,242	$	19,594
(1)		Loss on assets held for sale was recorded in (Gain) loss on sale of business and other exit costs, net in the Consolidated Statement of Operations.
(2)		Liabilities held for sale primarily consisted of Customer deposits and deferred revenues.
(3)		On May 15, 2013, U.S. Cellular entered into an agreement with a third party to sell the subscribers, spectrum and the network assets for a Missouri market.
(4)		Effective January 1, 2013, U.S. Cellular transferred its Bolingbrook Customer Care Center operations to an existing third party vendor.