XML 103 R34.htm IDEA: XBRL DOCUMENT
v2.4.1.9

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

X
- Details
Name: | us-gaap_BusinessCombinationConsiderationTransferredAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_RestructuringCostsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228 + Details
Name: | us-gaap_ScheduleOfDisposalGroupsIncludingDiscontinuedOperationsIncomeStatementBalanceSheetAndAdditionalDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 + Details
Name: | us-gaap_ScheduleOfRestructuringAndRelatedCostsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration