XML 61 R40.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Stock-Based Compensation (Table) | 12 Months Ended
--- | ---
Dec. 31, 2016
Stock-based compensation |
Stock-based compensation, fair value assumptions | U.S. Cellular estimated the fair value of stock options granted during 2016, 2015 and 2014 using the Black-Scholes valuation model and the assumptions shown in the table below.
| 2016 |  | 2015 |  | 2014
Expected life | 4.7 years |  | 4.6 years |  | 4.5 years
Expected annual volatility rate | 30.5% |  | 30.1% |  | 28.0%-28.1%
Dividend yield | 0% |  | 0% |  | 0%
Risk-free interest rate | 1.2% |  | 1.2% |  | 1.4%-1.5%
Estimated annual forfeiture rate | 9.4% |  | 9.7% |  | 9.4%
Summary of stock options | A summary of U.S. Cellular stock options outstanding (total and portion exercisable) and changes during 2016 is presented in the table below:
Common Share Options |  | Number of Options |  | Weighted Average Exercise Price |  | Aggregate Intrinsic Value (in millions) |  | Weighted Average Remaining Contractual Life (in years)
Outstanding at December 31, 2015 |  | 4,102,000 |  | $ | 40.62 |  |  |  |  |
(1,849,000 exercisable) |  |  |  | $ | 44.33 |  |  |  |  |
| Granted |  | 898,000 |  |  | 45.87 |  |  |  |  |
| Exercised |  | (541,000) |  |  | 35.34 |  |  |  |  |
| Forfeited |  | (197,000) |  |  | 39.08 |  |  |  |  |
| Expired |  | (289,000) |  |  | 50.06 |  |  |  |  |
Outstanding at December 31, 2016 |  | 3,973,000 |  | $ | 41.92 |  | $ | 14 |  | 6.8
(1,937,000 exercisable) |  |  |  | $ | 42.54 |  | $ | 7 |  | 5.0
Summary of nonvested restricted stock units | A summary of U.S. Cellular nonvested restricted stock units at December 31, 2016 and changes during the year then ended is presented in the table below:
Common Restricted Stock Units | Number |  | Weighted Average
Grant Date
Fair Value
Nonvested at December 31, 2015 | 1,194,000 |  | $ | 36.70
Granted | 571,000 |  |  | 43.32
Vested | (348,000) |  |  | 31.52
Forfeited | (107,000) |  |  | 39.28
Nonvested at December 31, 2016 | 1,310,000 |  | $ | 40.74
Stock-based compensation | The following table summarizes stock‑based compensation expense recognized during 2016, 2015 and 2014:
Year Ended December 31, | 2016 |  | 2015 |  | 2014
(Dollars in millions) |  |  |  |  |  |  |  |
Stock option awards | $ | 11 |  | $ | 11 |  | $ | 10
Restricted stock unit awards |  | 14 |  |  | 13 |  |  | 11
Deferred compensation bonus and matching stock unit awards |  | – |  |  | – |  |  | –
Awards under Non-Employee Director compensation plan |  | 1 |  |  | 1 |  |  | 1
Total stock-based compensation, before income taxes |  | 26 |  |  | 25 |  |  | 22
Income tax benefit |  | (10) |  |  | (10) |  |  | (8)
Total stock-based compensation expense, net of income taxes | $ | 16 |  | $ | 15 |  | $ | 14
Stock-based compensation, allocation by financial statement line item | The following table provides a summary of the stock-based compensation expense included in the Consolidated Statement of Operations for the years ended:
December 31, | 2016 |  | 2015 |  | 2014
(Dollars in millions) |  |  |  |  |  |  |  |
Selling, general and administrative expense | $ | 23 |  | $ | 22 |  | $ | 19
System operations |  | 3 |  |  | 3 |  |  | 3
Total stock-based compensation expense | $ | 26 |  | $ | 25 |  | $ | 22

X
- Definition Tabular disclosure of the amount of total share-based compensation cost, including the amounts attributable to each share-based compensation plan and any related tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(1) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfCompensationCostForShareBasedPaymentArrangementsAllocationOfShareBasedCompensationCostsByPlanTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(1) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14.F) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 + Details
Name: | us-gaap_ScheduleOfEmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the changes in outstanding nonvested restricted stock units. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(2) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfNonvestedRestrictedStockUnitsActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the number and weighted-average exercise prices (or conversion ratios) for share options (or share units) that were outstanding at the beginning and end of the year, vested and expected to vest, exercisable or convertible at the end of the year, and the number of share options or share units that were granted, exercised or converted, forfeited, and expired during the year. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ShareBasedCompensationAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration