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Acquisitions Divestitures and Exchanges (Tables) | 9 Months Ended
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Sep. 30, 2014
Business Combination |
Acquisitions, Divestitures and Exchanges |
| TDS' acquisitions during the nine months ended September 30, 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 business (4) |  | 261,786 |  |  | 33,002 |  |  | 2,703 |  |  | 115,629 |  |  | 13,613 |  |  | 96,839
| Total | $ | 303,493 |  | $ | 33,002 |  | $ | 44,410 |  | $ | 115,629 |  | $ | 13,613 |  | $ | 96,839
2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Cellular licenses | $ | 16,540 |  | $ | - |  | $ | 16,540 |  | $ | - |  | $ | - |  | $ | -
TDS Telecom cable business |  | 264,089 |  |  | 61,270 |  |  | - |  |  | 123,668 |  |  | 11,542 |  |  | 67,609
| Total | $ | 280,629 |  | $ | 61,270 |  | $ | 16,540 |  | $ | 123,668 |  | $ | 11,542 |  | $ | 67,609
(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 4.5 years in 2014 and 2.9 years in 2013.
(4) | The allocation of purchase price for Bend is preliminary subject to the final valuation of the tangible assets.
Divestiture Financial Impacts |
Business divestiture financial impacts |
(Dollars in thousands) | Expected Period of Recognition |  | Projected Range |  | Cumulative Amount Recognized as of September 30, 2014 |  | Actual Amount Recognized Nine Months Ended September 30, 2014 |  | Actual Amount Recognized Nine Months Ended September 30, 2013 |  | Actual Amount Recognized Three Months Ended September 30, 2014 |  | Actual Amount Recognized Three Months Ended September 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) |  | $ | - |  | $ | -
|  | Sprint Cost Reimbursement |  | 2013-2015 |  |  | (120,000) |  |  | (175,000) |  |  | (98,289) |  |  | (50,648) |  |  | (4,221) |  |  | (1,454) |  |  | (4,213)
| 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 |  |  | 10,000 |  |  | 15,000 |  |  | 10,965 |  |  | 290 |  |  | 54 |  |  | (48) |  |  | (27)
| Employee related costs including severance, retention and outplacement |  | 2012-2014 |  |  | 13,000 |  |  | 16,000 |  |  | 14,139 |  |  | (123) |  |  | 2,462 |  |  | 10 |  |  | (641)
| Contract termination costs |  | 2012-2015 |  |  | 70,000 |  |  | 100,000 |  |  | 81,377 |  |  | 21,793 |  |  | 18,781 |  |  | (9,040) |  |  | 2,176
| Transaction costs |  | 2012-2014 |  |  | 5,000 |  |  | 7,000 |  |  | 6,183 |  |  | 618 |  |  | 4,081 |  |  | 156 |  |  | 362
|  | Total (Gain) loss on sale of business and other exit costs, net |  |  |  | $ | (341,927) |  | $ | (356,927) |  | $ | (305,552) |  | $ | (28,070) |  | $ | (298,770) |  | $ | (10,376) |  | $ | (2,343)
Depreciation, amortization and accretion expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Incremental depreciation, amortization and accretion, net of salvage values |  | 2012-2014 |  |  | 215,000 |  |  | 216,000 |  |  | 215,238 |  |  | 16,667 |  |  | 134,000 |  |  | 3,582 |  |  | 45,676
(Increase) decrease in Operating income |  |  |  | $ | (126,927) |  | $ | (140,927) |  | $ | (90,314) |  | $ | (11,403) |  | $ | (164,770) |  | $ | (6,794) |  | $ | 43,333
|  | As a result of the transaction, TDS recognized the following amounts in the Consolidated Balance Sheet:
|  |  |  |  |  | Nine Months Ended September 30, 2014 |  |  |
(Dollars in thousands) | Balance December 31, 2013 |  | Costs Incurred |  | Cash Settlements (1) |  | Adjustments (2) |  | Balance September 30, 2014
Accrued compensation |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Employee related costs including severance, retention, outplacement | $ | 2,053 |  | $ | 99 |  | $ | (1,121) |  | $ | (221) |  | $ | 810
Accounts payable |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Contract termination costs | $ | - |  | $ | 4,018 |  | $ | - |  | $ | (1,070) |  | $ | 2,948
Other current liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Contract termination costs | $ | 13,992 |  | $ | 12,703 |  | $ | (19,390) |  | $ | 1,367 |  | $ | 8,672
Other deferred liabilities and credits |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Contract termination costs | $ | 30,849 |  | $ | 24,171 |  | $ | (3,380) |  | $ | (29,707) |  | $ | 21,933
(1) | Cash settlement amounts are included in either the Net income, changes in Accounts payable 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.
(Dollars in thousands) | Projected Range |  | Actual Amount Recognized Nine Months Ended September 30, 2014 |  | Actual Amount Recognized Three Months Ended September 30, 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 |  | $ | 8,719 |  | $ | (3,495)
| Employee related costs including severance, retention and outplacement |  | 500 |  |  | 1,500 |  |  | 647 |  |  | 147
| Contract termination costs |  | 10,000 |  |  | 15,000 |  |  | 11,450 |  |  | 11,042
|  | Total (Gain) loss on sale of business and other exit costs, net | $ | 18,500 |  | $ | 28,500 |  | $ | 20,816 |  | $ | 7,694
|  | As a result of the transaction, TDS recognized the following amounts in the Consolidated Balance Sheet:
|  |  |  |  |  | Nine Months Ended September 30, 2014 |  |  |
(Dollars in thousands) | Balance May 23, 2014 |  | Costs Incurred |  | Cash Settlements (1) |  | Adjustments (2) |  | Balance September 30, 2014
Accrued compensation |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Employee related costs including severance, retention and outplacement | $ | - |  | $ | 647 |  | $ | (247) |  | $ | - |  | $ | 400
Other current liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Contract termination costs | $ | - |  | $ | 7,475 |  | $ | (1,770) |  | $ | - |  | $ | 5,705
Other deferred liabilities and credits |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Contract termination costs | $ | - |  | $ | 3,975 |  | $ | - |  | $ | - |  | $ | 3,975
(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.

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- Definition Tabular disclosure of a material business combination completed during the period, including background, timing, and recognized assets and liabilities. This table does not include leveraged buyouts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1392-128463 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1486-128463 + Details
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