Acquisitions Divestitures and Exchanges (Tables)

12 Months Ended

Dec. 31, 2014

Business Combination

Acquisitions, Divestitures and Exchanges

TDS' acquisitions in 2014 and 2013 and the allocation of the purchase price for these acquisitions were as follows:
					Allocation of Purchase Price
			Purchase Price (1)		Goodwill (2)		Licenses		Franchise Rights		Intangible Assets Subject to Amortization (3)		Net Tangible Assets/(Liabilities)
(Dollars in thousands)
2014
U.S. Cellular licenses			$	41,707	$	-	$	41,707	$	-	$	-	$	-
TDS Telecom cable businesses				273,789		33,610		2,703		120,979		14,056		102,441
	Total		$	315,496	$	33,610	$	44,410	$	120,979	$	14,056	$	102,441
2013
U.S. Cellular licenses			$	16,540	$	-	$	16,540	$	-	$	-	$	-
TDS Telecom cable business				264,069		61,712		-		123,668		11,542		67,147
TDS Telecom HMS business				43,557		15,203		-		-		17,183		11,171
	Total		$	324,166	$	76,915	$	16,540	$	123,668	$	28,725	$	78,318
(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 2014 and 2013 was amortizable for income tax purposes.
(3)		At the date of acquisition, the weighted average amortization period for Intangible Assets Subject to Amortization acquired was as follows: 2014: 4.6 years for TDS Telecom cable business; 2013: 2.9 years for TDS Telecom cable business and 10 years for TDS HMS business

Divestiture Financial Impacts

Business divestiture financial impacts

(Dollars in thousands)			Expected Period of Recognition	Projected Range				Cumulative Amount Recognized as of December 31, 2014		Actual Amount Recognized Year Ended December 31, 2014		Actual Amount Recognized Year Ended December 31, 2013		Actual Amount Recognized Year Ended December 31, 2012
(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)	$	-
		Sprint Cost Reimbursement	2013-2015		(120,000)		(175,000)		(111,970)		(64,329)		(47,641)		-
	Net assets transferred		2013		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		2012-2015		20,000		22,000		20,410		9,735		3		10,672
	Employee related costs including severance, retention and outplacement		2012-2015		13,000		16,000		14,147		(115)		1,653		12,609
	Contract termination costs		2012-2015		70,000		100,000		84,320		24,736		59,525		59
	Transaction costs		2012-2015		5,000		7,000		6,284		719		4,428		1,137
		Total (Gain) loss on sale of business and other exit costs, net		$	(331,927)	$	(349,927)	$	(306,736)	$	(29,254)	$	(301,959)	$	24,477
Depreciation, amortization and accretion expense
	Incremental depreciation, amortization and accretion, net of salvage values		2012-2014		215,049		215,049		215,049		16,478		178,513		20,058
(Increase) decrease in Operating income				$	(116,878)	$	(134,878)	$	(91,687)	$	(12,776)	$	(123,446)	$	44,535

As a result of the transaction, TDS recognized the following amounts in the Consolidated Balance Sheet:
				Year Ended December 31, 2014
(Dollars in thousands)		Balance December 31, 2013		Costs Incurred		Cash Settlements (1)		Adjustments (2)		Balance December 31, 2014
Accrued compensation
	Employee related costs including severance, retention, outplacement	$	2,053	$	127	$	(1,223)	$	(242)	$	715
Accounts payable
	Contract termination costs	$	-	$	4,018	$	-	$	(1,190)	$	2,828
Other current liabilities
	Contract termination costs	$	13,992	$	12,703	$	(22,210)	$	3,747	$	8,232
Other deferred liabilities and credits
	Contract termination costs	$	30,849	$	24,171	$	(3,569)	$	(30,411)	$	21,040
				Year Ended December 31, 2013
(Dollars in thousands)		Balance December 31, 2012		Costs Incurred		Cash Settlements (1)		Adjustments (2)		Balance December 31, 2013
Accrued compensation
	Employee related costs including severance, retention, outplacement	$	12,305	$	6,853	$	(11,905)	$	(5,200)	$	2,053
Other current liabilities
	Contract termination costs	$	30	$	22,675	$	(8,713)	$	-	$	13,992
Other deferred liabilities and credits
	Contract termination costs	$	-	$	34,283	$	(3,434)	$	-	$	30,849
(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 in the Consolidated Statement of Cash Flows.
(2)	Adjustment to liability represents changes to previously accrued amounts.

(Dollars in thousands)			Projected Range				Actual Amount Recognized Year Ended December 31, 2014
(Gain) loss on sale of business and other exit costs, net
	Charges for the impairment and decommissioning of various operating assets		$	8,000	$	12,000	$	8,467
	Employee related costs including severance, retention and outplacement			500		1,500		676
	Contract termination costs			10,000		15,000		11,099
		Total (Gain) loss on sale of business and other exit costs, net	$	18,500	$	28,500	$	20,242

		As a result of the transaction, TDS recognized the following amounts in the Consolidated Balance Sheet:
					Year Ended December 31, 2014
(Dollars in thousands)			Balance May 23, 2014		Costs Incurred		Cash Settlements (1)		Adjustments (2)		Balance December 31, 2014
Accrued compensation
	Employee related costs including severance, retention and outplacement		$	-	$	676	$	(523)	$	-	$	153
Other current liabilities
	Contract termination costs		$	-	$	7,475	$	(4,291)	$	1,043	$	4,227
Other deferred liabilities and credits
	Contract termination costs		$	-	$	3,975	$	-	$	(1,396)	$	2,579
(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.
(2)		Adjustment to liability represents changes to previously accrued amounts.

Assets and Liabilities held for sale

At December 31, 2014 and 2013, the following assets were classified in the Consolidated Balance Sheet as "Assets held for sale" and "Liabilities held for sale":
			Current Assets		Other Assets and Deferred Charges		Licenses		Goodwill		Property, Plant and Equipment		Total Assets Held for Sale
(Dollars in thousands)
2014
Divestiture of Spectrum Licenses			$	-	$	-	$	56,809	$	-	$	-	$	56,809
Sale of Business - Towers				1,472		773		-		4,344		31,770		38,359
Divestiture of Wireline markets (1)				215		2		-		4,100		3,858		8,175
	Total		$	1,687	$	775	$	56,809	$	8,444	$	35,628	$	103,343
2013
Divestiture of Spectrum Licenses			$	-	$	-	$	16,027	$	-	$	-	$	16,027
(1)		On December 30, 2014, TDS Telecom entered into an agreement with a third party to sell certain Wireline markets.

		Current Liabilities		Other Deferred Liabilities and Credits		Total Liabilities Held for Sale
(Dollars in thousands)
2014
Sale of Business - Towers		$	3,607	$	17,641	$	21,248
Divestiture of Wireline markets			218		177		395
	Total	$	3,825	$	17,818	$	21,643