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Acquisitions, Divestitures and Exchanges (Tables) | 6 Months Ended
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Jun. 30, 2013
Business Acquisition Purchase Price Allocation Abstract |
Acquisitions, Divestitures and Exchanges |
| U.S. Cellular acquisitions during the six months ended June 30, 2013 and 2012 and the allocation of the purchase price for these acquisitions were as follows:
|  |  |  |  |  | Allocation of Purchase Price
|  |  | Purchase Price (1) |  | Goodwill |  | Licenses |  | Intangible Assets Subject to Amortization |  | Net Tangible Assets/(Liabilities)
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |
2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Licenses | $ | 14,150 |  | $ | - |  | $ | 14,150 |  | $ | - |  | $ | -
| Total | $ | 14,150 |  | $ | - |  | $ | 14,150 |  | $ | - |  | $ | -
2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Licenses | $ | 12,647 |  | $ | - |  | $ | 12,647 |  | $ | - |  | $ | -
| Total | $ | 12,647 |  | $ | - |  | $ | 12,647 |  | $ | - |  | $ | -
(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.
Restructuring Costs |
Business divestiture financial impacts |
(Dollars in thousands) | Expected Period of Recognition |  | Projected Range |  | Cumulative Amount Recognized as of June 30, 2013 |  | Actual Amount Recognized Six Months Ended June 30, 2013 |  | Actual Amount Recognized Three Months Ended June 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) |  | $ | (480,000)
|  | Sprint Cost Reimbursement |  | 2013-2014 |  |  | (120,000) |  |  | (160,000) |  |  | (8) |  |  | (8) |  |  | (8)
| Net assets transferred |  | 2013 |  |  | 213,593 |  |  | 213,593 |  |  | 213,593 |  |  | 213,593 |  |  | 213,593
| Non-cash charges for the write-off and write-down of property under construction and related assets |  | 2012-2013 |  |  | 11,000 |  |  | 15,000 |  |  | 10,753 |  |  | 81 |  |  | (141)
| Employee related costs including severance, retention and outplacement |  | 2012-2014 |  |  | 16,000 |  |  | 25,000 |  |  | 15,712 |  |  | 3,103 |  |  | 53
| Contract termination costs |  | 2012-2014 |  |  | 125,000 |  |  | 175,000 |  |  | 16,664 |  |  | 16,605 |  |  | 13,705
| Transaction costs |  | 2012-2013 |  |  | 4,000 |  |  | 6,000 |  |  | 4,856 |  |  | 3,719 |  |  | 2,801
|  | Total (Gain) loss on sale of business and other exit costs, net |  |  |  | $ | (230,407) |  | $ | (205,407) |  | $ | (218,430) |  | $ | (242,907) |  | $ | (249,997)
Depreciation, amortization and accretion expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Incremental depreciation, amortization and accretion, net of salvage values |  | 2012-2014 |  |  | 175,000 |  |  | 210,000 |  |  | 108,382 |  |  | 88,324 |  |  | 50,278
Other Operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Non-cash charges for the write-off and write-down of various operating assets and liabilities |  | 2013 |  |  | - |  |  | 10,000 |  |  | - |  |  | - |  |  | -
(Increase) decrease in Operating income |  |  |  | $ | (55,407) |  | $ | 14,593 |  | $ | (110,048) |  | $ | (154,583) |  | $ | (199,719)
| As a result of the transaction, U.S. Cellular recognized the following amounts in the Consolidated Balance Sheet:
|  |  |  |  |  | Six Months Ended June 30, 2013 |  |  |
(Dollars in thousands) | Balance December 31, 2012 |  | Costs Incurred |  | Cash Settlements (1) |  | Non-cash Settlements |  | Adjustments |  | Other |  | Balance June 30, 2013
Accrued compensation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Employee related costs including severance, retention, outplacement | $ | 12,305 |  | $ | 6,037 |  | $ | (10,282) |  | $ | - |  | $ | (2,934) |  | $ | 372 |  | $ | 5,498
Other current liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Contract termination costs | $ | 30 |  | $ | 10,183 |  | $ | (3,405) |  | $ | - |  | $ | - |  | $ | 942 |  | $ | 7,750
Other deferred liabilities and credits |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Contract termination costs | $ | - |  | $ | 6,421 |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | 6,421
(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.
Assets and liabilities held for sale |
| At June 30, 2013 and December 31, 2012, the following assets and liabilities were classified in the Consolidated Balance Sheet as "Assets held for sale" and "Liabilities held for sale":
|  |  | Current Assets |  | Licenses |  | Goodwill |  | Property, Plant and Equipment |  | Loss on Assets Held for Sale (1) |  | Total Assets Held for Sale |  | Liabilities Held for Sale (2)
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
June 30, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Divestiture of Missouri Market (3) | $ | 633 |  | $ | 2,909 |  | $ | 669 |  | $ | 3,179 |  | $ | (857) |  | $ | 6,533 |  | $ | 559
Divestiture of Spectrum Licenses |  | - |  |  | 71,856 |  |  | - |  |  | - |  |  | - |  |  | 71,856 |  |  | -
| Total | $ | 633 |  | $ | 74,765 |  | $ | 669 |  | $ | 3,179 |  | $ | (857) |  | $ | 78,389 |  | $ | 559
December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Divestiture Transaction | $ | - |  | $ | 140,599 |  | $ | 72,994 |  | $ | - |  | $ | - |  | $ | 213,593 |  | $ | 19,594
Bolingbrook Customer Care Center (4) |  | - |  |  | - |  |  | - |  |  | 4,275 |  |  | (1,105) |  |  | 3,170 |  |  | -
| Total | $ | - |  | $ | 140,599 |  | $ | 72,994 |  | $ | 4,275 |  | $ | (1,105) |  | $ | 216,763 |  | $ | 19,594
(1) | Loss on assets held for sale was recorded in (Gain) loss on sale of business and other exit costs, net in the Consolidated Statement of Operations.
(2) | Liabilities held for sale primarily consisted of Customer deposits and deferred revenues.
(3) | On May 15, 2013, U.S. Cellular entered into an agreement with a third party to sell the subscribers, spectrum and the network assets for a Missouri market.
(4) | Effective January 1, 2013, U.S. Cellular transferred its Bolingbrook Customer Care Center operations to an existing third party vendor.

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