Licenses And Goodwill

9 Months Ended

Sep. 30, 2011

7. Licenses and Goodwill

Changes in TDS' licenses and goodwill for the nine months ended September 30, 2011 and 2010 are presented below.

Licenses
		U.S.					Non-Reportable
		Cellular (1)			TDS Telecom			segment (2)			Total
(Dollars in thousands)

Balance, beginning of period December 31, 2010		$	1,457,326	$	2,800	$	—		$	1,460,126
	Acquisitions (3)		4,406		—		15,220			19,626
	Exchanges		11,842		—		—			11,842
	Other		2,202		—		—			2,202
Balance, end of period September 30, 2011		$	1,475,776	$	2,800	$	15,220		$	1,493,796


Balance, beginning of period December 31, 2009		$	1,440,225	$	2,800	$	—		$	1,443,025
	Acquisitions		10,501		—		—			10,501
Balance, end of period September 30, 2010		$	1,450,726	$	2,800	$	—		$	1,453,526

Goodwill
		U.S.			TDS			Non-Reportable
		Cellular (1)			Telecom (4)			segment (2)			Total
(Dollars in thousands)

Assigned value at time of acquisition		$	622,681		$	465,312		$	3,802	$	1,091,795
	Accumulated impairment losses in prior periods		(333,900	)		(29,440	)		—		(363,340	)
Balance, beginning of period December 31, 2010			288,781			435,872			3,802		728,455
	Acquisitions		—			68,107			522		68,629
Balance, end of period September 30, 2011		$	288,781		$	503,979		$	4,324	$	797,084

Assigned value at time of acquisition		$	617,222		$	450,156		$	3,802	$	1,071,180
	Accumulated impairment losses in prior periods		(333,900	)		(29,440	)		—		(363,340	)
Balance, beginning of period December 31, 2009			283,322			420,716			3,802		707,840
	Acquisitions		—			5,336			—		5,336
	Other (5)		5,459			—			—		5,459
Balance, end of period September 30, 2010		$	288,781		$	426,052		$	3,802	$	718,635

Prior to January 1, 2009, TDS accounted for U.S. Cellular's share repurchases as step acquisitions, allocating a portion of the share repurchase value to TDS licenses and goodwill, as required by GAAP in effect at that time. Consequently, U.S. Cellular's licenses, goodwill and accumulated impairment loss reported on a stand-alone basis do not match the TDS consolidated licenses, goodwill and accumulated impairment losses related to U.S. Cellular.
''Non-Reportable segment'' consists of amounts related to Suttle-Straus and Airadigm. See Note 6 — Acquisitions, Divestitures and Exchanges for additional information related to Airadigm.
Does not include amounts reported as Assets held for sale in the Consolidated Balance Sheet.
Remaining goodwill at TDS Telecom is attributed to the ILEC business segment.
Amount reclassified from Investments in unconsolidated entities to Goodwill in June 2010.

Goodwill and Licenses Impairment Assessment

Goodwill and licenses must be assessed for impairment annually or more frequently if events or changes in circumstances indicate that such assets might be impaired. TDS performs annual impairment testing of goodwill and licenses, as required by GAAP, in the fourth quarter of its fiscal year, based on fair values and net carrying values determined as of November 1.

During the third quarter of 2011, the deterioration of macroeconomic conditions and financial markets coupled with a sustained decrease in TDS' stock price resulted in a triggering event, as defined by GAAP, requiring an interim impairment test of goodwill and licenses as of September 30, 2011. TDS performed an interim impairment assessment of goodwill and licenses as of September 30, 2011. The assessment resulted in no impairment of either goodwill or licenses.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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