XML 101 R20.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Debt | 12 Months Ended
--- | ---
Dec. 31, 2011
Disclosure Text Block |
Debt | NOTE 13 DEBT Revolving Credit Facility At December 31, 2011, U.S. Cellular had a revolving credit facility available f or general corporate purposes. Amounts under the revolving credit facility may be borrowed, repaid and reborrowed from time to time from and after December 17, 2010 until maturity in December 2015. U.S. Cellular did not borrow under its current or previous revolving credit facilities in 2011, 2010 or 2009 except for letters of credit. U.S. Cellular's interest cost on its revolving credit facility is subject to increase if its current credit ratings from Standard & Poor's Rating Services, Moody's Investors Service or Fitch Ratings is lowered, and is subject to decrease i f the ratings are raised. The credit facili ty would not cease to be available nor would the maturity date accelerate solely as a result of a downgrade in U.S. Cellular's credit rating. However, a downgrade in U.S. Cellular's credit rating could adversely affect its ability to renew the credit facilities or obtain access to other credit facilities in the future. The maturity date of any borrowings under the U.S. Cellular revolving credit facilit y would accelerate in the event of a change in control. The following table summarizes the terms of the revolving credit facility as of December 31, 2011:
(Dollars in millions) |  |
Maximum borrowing capacity | $ | 300.0 |
Letters of credit outstanding | $ | 0.2 |
Amount borrowed | $ | — |
Amount available for use | $ | 299.8 |
Fees on borrowing capacity, rate |  | 0.41 | %
Borrowing rate: One-month London Interbank Offered Rate ("LIBOR") plus contractual spread (1) |  | 0.50 | %
| LIBOR |  | 0.30 | %
| Contractual spread |  | 0.20 | %
Range of commitment fees (2) |  |  |
| Low |  | 0.20 | %
| High |  | 0.45 | %
Fees recognized |  |  |
| 2011 | $ | 1.2 |
| 2010 | $ | 3.8 |
| 2009 | $ | 5.9 |
Agreement date | December 2010 |
Maturity date | December 2015 |
Borrowings under the revolving credit facility bear interest at LIBOR plus a contractual spread based on U.S. Cellular's credit rating or, at U.S. Cellular's option, an alternate “Base Rate” as defined in the revolving credit agreement. U.S. Cellular may select a borrowing period of either one, two, three or six months (or other period of twelve months or less if requested by U.S. Cellular and approved by the lenders). If U.S. Cellular provides notice of intent to borrow less than three business days in advance of a borrowing, interest on borrowing is at the Base Rate plus the contractual spread. The revolving credit facility has commitment fees based on the unsecured senior debt ratings assigned to U.S. Cellular by certain ratings agencies. The continued availability of the revolving credit facility requires U.S. Cellular to comply with certain negative and affirmative covenants, maintain certain financial ratios and make representations regarding certain matters at the time of each borrowing. U.S. Cellular believe s it was in compliance as of December 31, 2011 with all covenants and other requirements set forth in the revolving credit facilit y. In connection with U.S. Cellular's revolving credit facility, TDS and U.S. Cellular entered into a subordination agreement dated December 17, 2010 together with the administrative agent for the lenders under U.S. Cellular's revolving credit agreement. Pursuant to this subordination agreement, (a) any consolidated funded indebtedness from U.S. Cellular to TDS will be unsecured and (b) any (i) consolidated funded indebtedness from U.S. Cellular to TDS (other than “refinancing indebtedness” as defined in the subordination agreement) in excess of $105,000,000, and (ii) refinancing indebtedness in excess of $250,000,000, will be subordinated and made junior in right of payment to the prior payment in full of obligations to the lenders under U.S. Cellular's revolving credit agreement. As of December 31, 2011, U.S. Cellular had no outstanding consolidated funded indebtedness or refinancing indebtedness that was subordinated to the revolving credit agreement pursuant to the subordination agreement. At December 31, 2011, U.S. Cellular has recorded $3.8 million of issuance costs related to the revolving credit facilit y which is included in Other assets and deferred charges in the Consolidated Balance Sheet. Long-Term Debt Long-term debt at December 31, 2011 and 2010 was as follows:
December 31, |  |  |  |  |  |  |  | 2011 |  | 2010
(Dollars in thousands) |  | Issuance date |  | Maturity date |  | Call date (1) |  |  |  |  |  |  |  |
|  | Unsecured Senior Notes (2) |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | 6.7% |  | December 2003 and June 2004 |  | December 2033 |  | December 2003 |  | $ | 544,000 |  |  | $ | 544,000 |
|  |  | Less: 6.7% Unamortized discount |  |  |  |  |  |  |  |  | (9,889 | ) |  |  | (10,343 | )
|  |  |  |  |  |  |  |  |  |  |  |  | 534,111 |  |  |  | 533,657 |
|  |  | 6.95% (3) |  | May 2011 |  | May 2060 |  | May 2016 |  |  | 342,000 |  |  |  | — |
|  |  | 7.5% (4) |  | June 2004 |  | June 2034 |  | June 2009 |  |  | — |  |  |  | 330,000 |
|  | Obligation on capital leases |  |  |  |  |  |  |  |  | 4,336 |  |  |  | 4,385 |
Total long-term debt |  |  |  |  |  |  |  |  | 880,447 |  |  |  | 868,042 |
Less: Current portion of long-term debt |  |  |  |  |  |  |  |  | 127 |  |  |  | 101 |
Total long-term debt, excluding current portion |  |  |  |  |  |  |  | $ | 880,320 |  |  | $ | 867,941 |
U.S. Cellular may redeem the 6.95% Senior Notes, in whole or in part at any time after the call date, at a redemption price equal to 100% of the principal amount redeemed plus accrued and unpaid interest. U.S. Cellular may redeem the 6.7% Senior Notes, in whole or in part, at any time prior to maturity at a redemption price equal to the greater of (a) 100% of the principal amount of such notes, plus accrued and unpaid interest, or (b) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date on a semi-annual basis at the Treasury Rate plus 30 basis points. Interest on the 6.7% Senior Notes is payable semi-annually, and on the 6.95% Senior Notes is payable quarterly. Capitalized debt issuance costs totaled $11.0 million and are being amortized over the life of the notes. Such issuance costs are included in Other assets and deferred charges. On June 20, 2011, U.S. Cellular used substantially all of the net proceeds from the issuance of the 6.95% Senior Notes to redeem $330 million (the entire outstanding amount) of its unsecured 7.5% Senior Notes at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest to the redemption date. This redemption required U.S. Cellular to write-off to interest expense $8.2 million of previously capitalized debt issuance costs related to the 7.5% Senior Notes in 2011. U.S. Cellular does not have any annual requirements for principal payments on long-term debt over the next five years (excluding capital lease obli g ations). The covenants associated with U.S. Cellular's long-term debt obligations, among other things, restrict U.S. Cellular's ability, subject to certain exclus ions, to incur additional liens, enter into s ale and leaseback transactions, and sell, consolidate or merge assets. U.S. Cellular's long-term debt indenture does not contain any provisions resulting in acceleration of the maturities of outstanding debt in the event of a change in U.S. Cellular's credit rating. However, a downgrade in U.S. Cellular's credit rating could adversely affect its ability to obtain long-term debt financing in the future.

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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