Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended |
Sep. 30, 2013 | |
Entity Registrant Name | 'United States Cellular Corporation |
Entity Central Index Key | '0000821130 |
Document Type | '10-Q |
Document Period End Date | 30-Sep-13 |
Amendment Flag | 'false |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Large Accelerated Filer |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'Q3 |
Trading Symbol | 'USM |
Series A Common Shares | ' |
Entity Common Stock, Shares Outstanding | 33,005,877 |
Common Shares | ' |
Entity Common Stock, Shares Outstanding | 51,092,437 |
Consolidated_Statement_Of_Oper
Consolidated Statement Of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Operating revenues | ' | ' | ' | ' |
Service | $862,330 | $1,036,370 | $2,769,645 | $3,089,932 |
Equipment sales | 76,906 | 103,987 | 246,467 | 246,946 |
Total operating revenues | 939,236 | 1,140,357 | 3,016,112 | 3,336,878 |
Operating expenses | ' | ' | ' | ' |
System operations (excluding Depreciation, amortization and accretion reported below) | 177,431 | 249,245 | 585,997 | 725,636 |
Cost of equipment sold | 193,392 | 248,029 | 652,153 | 626,765 |
Selling, general and administrative (including charges from affiliates of $22.7 million and $25.6 million, respectively, for the three months, and $71.2 million and $77.6 million, respectively for the nine months) | 410,468 | 438,526 | 1,234,675 | 1,315,823 |
Depreciation, amortization and accretion | 200,985 | 145,151 | 593,410 | 439,391 |
Loss on asset disposals, net | 1,701 | 11,262 | 16,153 | 15,967 |
(Gain) loss on sale of business and other exit costs, net | -1,534 | 65 | -243,627 | -4,148 |
Total operating expenses | 982,443 | 1,092,278 | 2,838,761 | 3,119,434 |
Operating income (loss) | -43,207 | 48,079 | 177,351 | 217,444 |
Investment and other income (expense) | ' | ' | ' | ' |
Equity in earnings of unconsolidated entities | 37,360 | 24,816 | 99,797 | 71,584 |
Interest and dividend income | 1,095 | 935 | 2,967 | 2,823 |
Gain (loss) on investments | ' | ' | 18,527 | -3,728 |
Interest expense | -11,329 | -9,501 | -32,393 | -35,272 |
Other, net | 47 | 200 | 153 | 173 |
Total investment and other income (expense) | 27,173 | 16,450 | 89,051 | 35,580 |
Income (loss) before income taxes | -16,034 | 64,529 | 266,402 | 253,024 |
Income tax expense (benefit) | -6,433 | 22,389 | 121,618 | 82,624 |
Net income (loss) | -9,601 | 42,140 | 144,784 | 170,400 |
Less: Net income attributable to noncontrolling interests, net of tax | 258 | 6,689 | 6,338 | 19,772 |
Net income (loss) attributable to U.S. Cellular shareholders | ($9,859) | $35,451 | $138,446 | $150,628 |
Basic weighted average shares outstanding | 84,005 | 84,737 | 83,897 | 84,671 |
Basic earnings (loss) per share attributable to U.S. Cellular shareholders | ($0.12) | $0.42 | $1.65 | $1.78 |
Diluted weighted average shares outstanding | 84,005 | 85,348 | 84,676 | 85,261 |
Diluted earnings (loss) per share attributable to U.S. Cellular shareholders | ($0.12) | $0.42 | $1.64 | $1.77 |
Special dividend per share to U.S. Cellular shareholders | ' | ' | $5.75 | ' |
Consolidated_Statement_Of_Oper1
Consolidated Statement Of Operations Parenthetical (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Operating expenses | ' | ' | ' | ' |
Selling, general and administrative, charges from affiliates | $22.70 | $25.60 | $71.20 | $77.60 |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities | ' | ' |
Net income | $144,784 | $170,400 |
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities | ' | ' |
Depreciation, amortization and accretion | 593,410 | 439,391 |
Bad debts expense | 52,184 | 51,293 |
Stock-based compensation expense | 11,143 | 15,924 |
Deferred income taxes, net | -38,515 | 52,865 |
Equity in earnings of unconsolidated entities | -99,797 | -71,584 |
Distributions from unconsolidated entities | 49,612 | 45,211 |
Loss on asset disposals, net | 16,153 | 15,967 |
(Gain) loss on sale of business and other exit costs, net | -243,627 | -4,148 |
(Gain) loss on investments | -18,527 | 3,728 |
Noncash interest expense | 792 | 1,331 |
Other operating activities | 590 | 863 |
Changes in assets and liabilities from operations | ' | ' |
Accounts receivable | -214,114 | -67,302 |
Inventory | 13,236 | -69,423 |
Accounts payable - trade | 32,202 | -28,902 |
Accounts payable - affiliate | 345 | -4,785 |
Customer deposits and deferred revenues | 22,538 | 26,687 |
Accrued taxes | 45,780 | 99,556 |
Accrued interest | 9,385 | 9,508 |
Other assets and liabilities | -81,341 | -77,821 |
Cash flows from operating activities | 296,233 | 608,759 |
Cash flows from investing activities | ' | ' |
Cash used for additions to property, plant and equipment | -522,180 | -611,431 |
Cash paid for licenses | -16,540 | -57,957 |
Cash received from divestitures | 484,300 | 49,932 |
Cash paid for investments | ' | -45,000 |
Cash received for investments | 65,000 | 50,000 |
Other investing activities | 583 | -5,030 |
Cash flows from investing activities | 11,163 | -619,486 |
Cash flows from financing activities | ' | ' |
Repayment of long-term debt | -393 | -343 |
Common shares reissued for benefit plans, net of tax payments | 2,840 | -2,299 |
Common shares repurchased | -18,544 | ' |
Dividends paid | -482,270 | ' |
Distributions to noncontrolling interests | -3,447 | -1,491 |
Other financing activities | -839 | 284 |
Cash flows from financing activities | -502,653 | -3,849 |
Net decrease in cash and cash equivalents | -195,257 | -14,576 |
Cash and cash equivalents | ' | ' |
Beginning of period | 378,358 | 424,155 |
End of period | $183,101 | $409,579 |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $183,101 | $378,358 |
Short-term investments | 45,162 | 100,676 |
Accounts receivable | ' | ' |
Customers and agents, less allowances of $31,477 and $24,290, respectively | 445,165 | 349,424 |
Roaming | 35,784 | 31,782 |
Affiliated | 397 | 375 |
Other, less allowances of $1,546 and $2,612, respectively | 79,569 | 63,639 |
Inventory | 142,560 | 155,886 |
Income taxes receivable | ' | 1,612 |
Prepaid expenses | 71,047 | 62,560 |
Net deferred income tax asset | 54,475 | 35,419 |
Other current assets | 19,051 | 16,745 |
Total current assets | 1,076,311 | 1,196,476 |
Assets held for sale | 78,413 | 216,763 |
Investments | ' | ' |
Licenses | 1,397,888 | 1,456,794 |
Goodwill | 387,360 | 421,743 |
Customer lists, net of accumulated amortization of $50,258 and $96,809, respectively | ' | 102 |
Investments in unconsolidated entities | 309,481 | 144,531 |
Long-term investments | 40,099 | 50,305 |
Total investments | 2,134,828 | 2,073,475 |
Property, plant and equipment | ' | ' |
In service and under construction | 7,571,429 | 7,478,428 |
Less: Accumulated depreciation | 4,696,836 | 4,455,840 |
Property, plant and equipment, net | 2,874,593 | 3,022,588 |
Other assets and deferred charges | 95,709 | 78,148 |
Total assets | 6,259,854 | 6,587,450 |
Current liabilities | ' | ' |
Current portion of long-term debt | 102 | 92 |
Accounts payable | ' | ' |
Affiliated | 11,069 | 10,725 |
Trade | 334,047 | 310,936 |
Customer deposits and deferred revenues | 212,733 | 192,113 |
Accrued taxes | 102,510 | 35,834 |
Accrued compensation | 58,282 | 90,418 |
Other current liabilities | 133,637 | 114,881 |
Total current liabilities | 852,380 | 754,999 |
Liabilities held for sale | 471 | 19,594 |
Deferred liabilities and credits | ' | ' |
Net deferred income tax liability | 829,247 | 849,818 |
Other deferred liabilities and credits | 294,675 | 288,441 |
Long-term debt | 878,939 | 878,858 |
Commitments and contingencies | ' | ' |
Noncontrolling interests with redemption features | 540 | 493 |
U.S. Cellular shareholders' equity | ' | ' |
Series A Common and Common Shares | 88,074 | 88,074 |
Additional paid-in capital | 1,421,261 | 1,412,453 |
Treasury Shares at cost | -168,454 | -165,724 |
Retained earnings | 2,042,254 | 2,399,052 |
Total U.S. Cellular shareholders' equity | 3,383,135 | 3,733,855 |
Noncontrolling interests | 20,467 | 61,392 |
Total equity | 3,403,602 | 3,795,247 |
Total liabilities and equity | $6,259,854 | $6,587,450 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet Parenthetical (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Current assets | ' | ' |
Customers and agents, allowances | $31,477 | $24,290 |
Other, allowances | 1,546 | 2,612 |
Investments | ' | ' |
Customer lists, accumulated amortization | 50,258 | 96,809 |
U.S. Cellular shareholders' equity | ' | ' |
Authorized shares | 190,000 | 190,000 |
Issued shares | 88,074 | 88,074 |
Outstanding shares | 84,098 | 84,168 |
Par value | 88,074 | 88,074 |
Treasury shares | 3,976 | 3,906 |
Common Shares | ' | ' |
U.S. Cellular shareholders' equity | ' | ' |
Authorized shares | 140,000 | 140,000 |
Issued shares | 55,068 | 55,068 |
Outstanding shares | 51,092 | 51,162 |
Par value per share | $1 | $1 |
Par value | 55,068 | 55,068 |
Treasury shares | 3,976 | 3,906 |
Series A Common Shares | ' | ' |
U.S. Cellular shareholders' equity | ' | ' |
Authorized shares | 50,000 | 50,000 |
Issued shares | 33,006 | 33,006 |
Outstanding shares | 33,006 | 33,006 |
Par value per share | $1 | $1 |
Par value | $33,006 | $33,006 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Equity (USD $) | Total | Series A Common and Common Shares | Additional Paid-In Capital | Treasury Shares | Retained Earnings | Total U.S. Cellular Shareholders' Equity | Noncontrolling Interests |
In Thousands, unless otherwise specified | |||||||
Beginning balance at Dec. 31, 2011 | $3,675,917 | $88,074 | $1,387,341 | ($152,817) | $2,297,363 | $3,619,961 | $55,956 |
Add (Deduct) | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to U.S. Cellular shareholders | 150,628 | ' | ' | ' | 150,628 | 150,628 | ' |
Net income attributable to noncontrolling interests classified as equity | 19,766 | ' | ' | ' | ' | ' | 19,766 |
Incentive and compensation plans | -2,136 | ' | 137 | 6,958 | -9,231 | -2,136 | ' |
Stock-based compensation awards | 15,761 | ' | 15,761 | ' | ' | 15,761 | ' |
Tax windfall (shortfall) from stock awards | 471 | ' | 471 | ' | ' | 471 | ' |
Distributions to noncontrolling interests | -1,491 | ' | ' | ' | ' | ' | -1,491 |
Adjust investment in subsidiaries for noncontrolling interest purchases | 2,907 | ' | 2,907 | ' | ' | 2,907 | ' |
Other | -28 | ' | ' | ' | ' | ' | -28 |
Ending balance at Sep. 30, 2012 | 3,861,795 | 88,074 | 1,406,617 | -145,859 | 2,438,760 | 3,787,592 | 74,203 |
Beginning balance at Dec. 31, 2012 | 3,795,247 | 88,074 | 1,412,453 | -165,724 | 2,399,052 | 3,733,855 | 61,392 |
Add (Deduct) | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to U.S. Cellular shareholders | 138,446 | ' | ' | ' | 138,446 | 138,446 | ' |
Net income attributable to noncontrolling interests classified as equity | 6,292 | ' | ' | ' | ' | ' | 6,292 |
Common and Series A Common Shares dividends | -482,270 | ' | ' | ' | -482,270 | -482,270 | ' |
Repurchase of Common Shares | -18,544 | ' | ' | -18,544 | ' | -18,544 | ' |
Incentive and compensation plans | 3,062 | ' | 222 | 15,814 | -12,974 | 3,062 | ' |
Stock-based compensation awards | 11,143 | ' | 11,143 | ' | ' | 11,143 | ' |
Tax windfall (shortfall) from stock awards | -2,526 | ' | -2,526 | ' | ' | -2,526 | ' |
Distributions to noncontrolling interests | -3,447 | ' | ' | ' | ' | ' | -3,447 |
Adjust investment in subsidiaries for noncontrolling interest purchases | -31 | ' | -31 | ' | ' | -31 | ' |
Deconsolidation of partnerships | -43,770 | ' | ' | ' | ' | ' | -43,770 |
Ending balance at Sep. 30, 2013 | $3,403,602 | $88,074 | $1,421,261 | ($168,454) | $2,042,254 | $3,383,135 | $20,467 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block | ' |
Basis of Presentation | ' |
1. Basis of Presentation | |
United States Cellular Corporation (“U.S. Cellular”), a Delaware Corporation, is an 84%-owned subsidiary of Telephone and Data Systems, Inc. (“TDS”). | |
The accounting policies of U.S. Cellular conform to accounting principles generally accepted in the United States of America (“GAAP”) as set forth in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). The consolidated financial statements include the accounts of U.S. Cellular, its majority-owned subsidiaries, general partnerships in which U.S. Cellular has a majority partnership interest and certain entities in which U.S. Cellular has a variable interest that require consolidation under GAAP. All material intercompany accounts and transactions have been eliminated. | |
The consolidated financial statements included herein have been prepared by U.S. Cellular, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. However, U.S. Cellular believes that the disclosures included herein are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in U.S. Cellular's Annual Report on Form 10-K (“Form 10-K”) for the year ended December 31, 2012. | |
In April 2013, U.S. Cellular deconsolidated its investments in the St. Lawrence Seaway RSA Cellular Partnership (“NY1”) and New York RSA 2 Cellular Partnership (“NY2”) and thereafter reported them as equity method investments in its consolidated financial statements (“NY1 & NY2 Deconsolidation”). See Note 7 — Investments in Unconsolidated Entities for additional information. | |
The accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring items, unless otherwise disclosed) necessary for a fair statement of the financial position as of September 30, 2013 and December 31, 2012, and the results of operations for the three and nine months ended September 30, 2013 and 2012 and cash flows and changes in equity for the nine months ended September 30, 2013 and 2012. The Consolidated Statement of Comprehensive Income was not included because comprehensive income for the three and nine months ended September 30, 2013 and 2012 equaled net income. These results are not necessarily indicative of the results to be expected for the full year. | |
Recently Issued Accounting Pronouncements | |
On July 18, 2013, the FASB issued Accounting Standards Update 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryfoward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). ASU 2013-11 addresses the presentation of an unrecognized tax benefit when a net operating loss carryforward or tax credit carryforward exists. In such event, an unrecognized tax benefit, or portion of an unrecognized tax benefit, would be presented in the Consolidated Balance Sheet as a reduction to deferred tax assets unless the net operating loss carryforward or tax credit carryforward at the reporting date is not available under the tax law of the applicable jurisdiction. U.S. Cellular is required to adopt the provisions of ASU 2013-11 effective January 1, 2014. The adoption of ASU 2013-11 is not expected to have a significant impact on U.S. Cellular's financial position or results of operations. | |
Impairment of Long-lived Assets | |
U.S. Cellular reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the assets might be impaired. The impairment test for tangible long-lived assets is a two-step process. The first step compares the carrying value of the asset (or asset group) with the estimated undiscounted cash flows over the remaining asset (or asset group) life. If the carrying value of the asset (or asset group) is greater than the undiscounted cash flows, the second step of the test is performed to measure the amount of impairment loss. The second step compares the carrying value of the asset (or asset group) to its estimated fair value. If the carrying value exceeds the estimated fair value (less cost to sell), an impairment loss is recognized for the difference. | |
U.S. Cellular has one asset group for purposes of assessing property, plant and equipment for impairment based on the fact that the individual operating markets are reliant on centrally operated data centers, mobile telephone switching offices, network operations center and wide-area network. As a result, U.S. Cellular operates a single integrated national wireless network, and the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities represent cash flows generated by this single interdependent network. | |
Quoted market prices in active markets are the best evidence of fair value of a tangible long-lived asset and are used when available. If quoted market prices are not available, the estimate of fair value is based on the best information available, including prices for similar assets and the use of other valuation techniques. A present value analysis of cash flow scenarios is often the best available valuation technique. The use of this technique involves assumptions by management about factors that are uncertain including future cash flows, the appropriate discount rate and other inputs. Different assumptions for these inputs could create materially different results. | |
Amounts Collected from Customers and Remitted to Governmental Authorities | |
If a tax is assessed upon the customer and U.S. Cellular merely acts as an agent in collecting the tax on behalf of the imposing governmental authority, then amounts collected from customers and remitted to governmental authorities are recorded on a net basis within a tax liability account in the Consolidated Balance Sheet. If the tax is assessed upon U.S. Cellular, then amounts collected from customers as recovery of the tax are recorded in Service revenues and amounts remitted to governmental authorities are recorded in Selling, general and administrative expenses in the Consolidated Statement of Operations. The amounts recorded gross in revenues that are billed to customers and remitted to governmental authorities totaled $27.4 million and $87.6 million for the three and nine months ended September 30, 2013, respectively, and $32.3 million and $102.2 for the three and nine months ended September 30, 2012, respectively. | |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Disclosure Text Block | ' | ||||||||||||||
Fair Value Measurements | ' | ||||||||||||||
2. Fair Value Measurements | |||||||||||||||
As of September 30, 2013 and December 31, 2012, U.S. Cellular did not have any financial assets or liabilities that were required to be recorded at fair value in its Consolidated Balance Sheet in accordance with GAAP. However, U.S. Cellular has applied the provisions of fair value accounting for purposes of computing the fair value of financial instruments for disclosure purposes as displayed below. | |||||||||||||||
Level within the Fair Value Hierarchy | 30-Sep-13 | 31-Dec-12 | |||||||||||||
Book Value | Fair Value | Book Value | Fair Value | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Cash and cash equivalents | 1 | $ | 183,101 | $ | 183,101 | $ | 378,358 | $ | 378,358 | ||||||
Short-term investments | |||||||||||||||
U.S. Treasury Notes | 1 | 45,162 | 45,162 | 100,676 | 100,676 | ||||||||||
Long-term investments | |||||||||||||||
U.S. Treasury Notes | 1 | 40,099 | 40,154 | 50,305 | 50,339 | ||||||||||
Long-term debt | |||||||||||||||
6.95% Senior Notes | 1 | 342,000 | 330,509 | 342,000 | 376,610 | ||||||||||
6.7% Senior Notes | 2 | 532,383 | 512,221 | 532,194 | 582,744 | ||||||||||
Short-term investments and Long-term investments are both designated as held-to-maturity investments and recorded at amortized cost in the Consolidated Balance Sheet. Long-term investment maturities range between 14 and 15 months at September 30, 2013. Long-term debt excludes capital lease obligations and the current portion of Long-term debt. | |||||||||||||||
The fair values of Cash and cash equivalents and Short-term investments approximate their book values due to the short-term nature of these financial instruments. The fair values of Long-term investments were estimated using quoted market prices for the individual issuances. The fair value of Long-term debt was estimated using market prices for the 6.95% Senior Notes, and discounted cash flow analysis using an estimated yield to maturity of 7.25% for the 6.7% Senior Notes at September 30, 2013. | |||||||||||||||
As of September 30, 2013 and December 31, 2012, U.S. Cellular did not have nonfinancial assets or liabilities that required the application of fair value accounting for purposes of reporting such amounts in the Consolidated Balance Sheet. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block | ' |
Income Taxes | ' |
3. Income Taxes | |
U.S. Cellular is included in a consolidated federal income tax return and in certain state income tax returns with other members of the TDS consolidated group. For financial statement purposes, U.S. Cellular and its subsidiaries compute their income tax expense as if they comprised a separate affiliated group and were not included in the TDS consolidated group. | |
U.S. Cellular's overall effective tax rate on Income (loss) before income taxes for the three and nine months ended September 30, 2013 was 40.1% and 45.7%, respectively, and for the three and nine months ended September 30, 2012 was 34.7% and 32.7%, respectively. | |
The effective tax rate for the three months ended September 30, 2013 was higher than the rate for the three months ended September 30, 2012 primarily as a result of a tax benefit related to the correction of state deferred taxes in 2012. | |
The effective tax rate for the nine months ended September 30, 2013 was higher than the rate for the nine months ended September 30, 2012 primarily as a result of the deferred tax expense related to the NY1 & NY2 Deconsolidation and the Divestiture Transaction (as described in Note 5 — Acquisitions, Divestitures and Exchanges) in 2013, and tax benefits related to the expiration of the statute of limitations for certain tax years and the correction of state deferred taxes in 2012. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Disclosure Text Block | ' | ||||||||||||
Earnings per Share | ' | ||||||||||||
4. Earnings Per Share | |||||||||||||
Basic earnings (loss) per share attributable to U.S. Cellular shareholders is computed by dividing Net income (loss) attributable to U.S. Cellular shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share attributable to U.S. Cellular shareholders is computed by dividing Net income (loss) attributable to U.S. Cellular shareholders by the weighted average number of common shares outstanding during the period adjusted to include the effects of potentially dilutive securities. Potentially dilutive securities primarily include incremental shares issuable upon exercise of outstanding stock options and the vesting of restricted stock units. | |||||||||||||
The amounts used in computing earnings (loss) per common share and the effects of potentially dilutive securities on the weighted average number of common shares were as follows: | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(Dollars and shares in thousands, except per share amounts) | |||||||||||||
Net income (loss) attributable to U.S. Cellular shareholders | $ | -9,859 | $ | 35,451 | $ | 138,446 | $ | 150,628 | |||||
Weighted average number of shares used in basic earnings (loss) per share | 84,005 | 84,737 | 83,897 | 84,671 | |||||||||
Effects of dilutive securities: | |||||||||||||
Stock options | - | 171 | 209 | 197 | |||||||||
Restricted stock units | - | 440 | 570 | 393 | |||||||||
Weighted average number of shares used in diluted earnings (loss) per share | 84,005 | 85,348 | 84,676 | 85,261 | |||||||||
Basic earnings (loss) per share attributable to U.S. Cellular shareholders | $ | -0.12 | $ | 0.42 | $ | 1.65 | $ | 1.78 | |||||
Diluted earnings (loss) per share attributable to U.S. Cellular shareholders | $ | -0.12 | $ | 0.42 | $ | 1.64 | $ | 1.77 | |||||
Certain Common Shares issuable upon the exercise of stock options or vesting of restricted stock units were not included in average diluted shares outstanding for the calculation of Diluted earnings per share attributable to U.S. Cellular shareholders because their effects were antidilutive. The number of such Common Shares excluded, if any, is shown in the table below. | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(Shares in thousands) | |||||||||||||
Stock options | 3,416 | 2,434 | 2,126 | 2,088 | |||||||||
Restricted stock units | 1,243 | - | 305 | 329 | |||||||||
On June 25, 2013, U.S. Cellular paid a special cash dividend of $5.75 per share, for an aggregate amount of $482.3 million, to all holders of U.S. Cellular Common Shares and Series A Common Shares. Outstanding U.S. Cellular stock options and restricted stock unit awards were equitably adjusted for the special cash dividend. The impact of such adjustments on the earnings per share calculation was reflected in the three and nine months ended September 30, 2012. | |||||||||||||
Acquisitions_Divestitures_and_
Acquisitions, Divestitures and Exchanges | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Disclosure Text Block | ' | ||||||||||||||||||||||
Acquisitions, Divestitures and Exchanges | ' | ||||||||||||||||||||||
5. Acquisitions, Divestitures and Exchanges | |||||||||||||||||||||||
U.S. Cellular assesses its existing wireless interests on an ongoing basis with a goal of improving the competitiveness of its operations and maximizing its long-term return on investment. As part of this strategy, U.S. Cellular reviews attractive opportunities to acquire additional operating markets and wireless spectrum. In addition, U.S. Cellular may seek to divest outright or include in exchanges for other wireless interests those interests that are not strategic to its long-term success. | |||||||||||||||||||||||
Acquisitions did not have a material impact on U.S. Cellular's consolidated financial statements for the periods presented and pro forma results, assuming acquisitions had occurred at the beginning of each period presented, would not be materially different from the results reported. | |||||||||||||||||||||||
Divestiture Transaction | |||||||||||||||||||||||
On November 6, 2012, U.S. Cellular entered into a Purchase and Sale Agreement with subsidiaries of Sprint Nextel Corporation (“Sprint”). Pursuant to the Purchase and Sale Agreement, on May 16, 2013, U.S. Cellular transferred customers and certain PCS license spectrum to Sprint in U.S. Cellular's Chicago, central Illinois, St. Louis and certain Indiana/Michigan/Ohio markets (“Divestiture Markets”) in consideration for $480 million in cash. The Purchase and Sale Agreement also contemplated certain other agreements, together with the Purchase and Sale Agreement collectively referred to as the “Divestiture Transaction.” | |||||||||||||||||||||||
U.S. Cellular has retained other assets and liabilities related to the Divestiture Markets, including network assets, retail stores and related equipment, and other buildings and facilities. The transaction does not affect spectrum licenses held by U.S. Cellular or variable interest entities (“VIEs”) that are not currently used in the operations of the Divestiture Markets. Pursuant to the Purchase and Sale Agreement, U.S. Cellular and Sprint also entered into certain other agreements, including customer and network transition services agreements, which require U.S. Cellular to provide customer, billing and network services to Sprint for a period of up to 24 months after the May 16, 2013 closing date. Sprint will reimburse U.S. Cellular for providing such services at an amount equal to U.S. Cellular's cost, including applicable overhead allocations. In addition, these agreements require Sprint to reimburse U.S. Cellular up to $200 million (the “Sprint Cost Reimbursement”) for certain network decommissioning costs, network site lease rent and termination costs, network access termination costs, and employee termination benefits for specified engineering employees. It is estimated that up to $160 million of the Sprint Cost Reimbursement will be recorded in (Gain) loss on sale of business and other exit costs, net and up to $40 million of the Sprint Cost Reimbursement will be recorded in System operations in the Consolidated Statement of Operations. For the nine months ended September 30, 2013, $1.1 million of the Sprint Cost Reimbursement had been received and recorded in Cash received from divestitures in the Consolidated Statement of Cash Flows. | |||||||||||||||||||||||
Financial impacts of the Divestiture Transaction are classified in the Consolidated Statement of Operations within Operating income (loss). The table below describes the amounts U.S. Cellular has recognized and expects to recognize in the Consolidated Statement of Operations between the date the Purchase and Sale Agreement was signed and the end of the transition services period. | |||||||||||||||||||||||
(Dollars in thousands) | Expected Period of Recognition | Projected Range | Cumulative Amount Recognized as of September 30, 2013 | Actual Amount Recognized Nine Months Ended September 30, 2013 | 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 | 2013-2014 | -120,000 | -160,000 | -4,221 | -4,221 | -4,213 | |||||||||||||||||
Net assets transferred | 2013 | 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 | 10,000 | 14,000 | 10,726 | 54 | -27 | |||||||||||||||||
Employee related costs including severance, retention and outplacement | 2012-2014 | 15,000 | 20,000 | 15,071 | 2,462 | -641 | |||||||||||||||||
Contract termination costs | 2012-2014 | 125,000 | 175,000 | 18,840 | 18,781 | 2,176 | |||||||||||||||||
Transaction costs | 2012-2013 | 4,000 | 6,000 | 5,218 | 4,081 | 362 | |||||||||||||||||
Total (Gain) loss on sale of business and other exit costs, net | $ | -232,407 | $ | -211,407 | $ | -220,773 | $ | -245,250 | $ | -2,343 | |||||||||||||
Depreciation, amortization and accretion expense | |||||||||||||||||||||||
Incremental depreciation, amortization and accretion, net of salvage values | 2012-2014 | 175,000 | 210,000 | 154,058 | 134,000 | 45,676 | |||||||||||||||||
(Increase) decrease in Operating income | $ | -57,407 | $ | -1,407 | $ | -66,715 | $ | -111,250 | $ | 43,333 | |||||||||||||
Incremental depreciation, amortization and accretion, net of salvage values represents anticipated amounts to be recorded in the specified time periods as a result of a change in estimate for the remaining useful life and salvage value of certain assets and a change in estimate which accelerated the settlement dates of certain asset retirement obligations in conjunction with the Divestiture Transaction. Specifically, for the years indicated, this is estimated depreciation, amortization and accretion recorded on assets and liabilities of the Divestiture Markets after the November 6, 2012 transaction date less depreciation, amortization and accretion that would have been recorded on such assets and liabilities in the normal course, absent the Divestiture Transaction. As a result of the accelerated settlement dates of certain asset retirement obligations, U.S. Cellular reclassified $34.0 million of its asset retirement obligations from long to short-term liabilities at September 30, 2013. | |||||||||||||||||||||||
As a result of the transaction, U.S. Cellular recognized the following amounts in the Consolidated Balance Sheet: | |||||||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||
(Dollars in thousands) | Balance December 31, 2012 | Costs Incurred | Cash Settlements (1) | Adjustments (2) | Balance September 30, 2013 | ||||||||||||||||||
Accrued compensation | |||||||||||||||||||||||
Employee related costs including severance, retention, outplacement | $ | 12,305 | $ | 6,750 | $ | -11,460 | $ | -4,288 | $ | 3,307 | |||||||||||||
Other current liabilities | |||||||||||||||||||||||
Contract termination costs | $ | 30 | $ | 12,201 | $ | -6,561 | $ | - | $ | 5,670 | |||||||||||||
Other deferred liabilities and credits | |||||||||||||||||||||||
Contract termination costs | $ | - | $ | 7,246 | $ | -1,488 | $ | - | $ | 5,758 | |||||||||||||
-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. | ||||||||||||||||||||||
Other Acquisitions, Divestitures and Exchanges | |||||||||||||||||||||||
On October 4, 2013, U.S. Cellular sold the majority of its Mississippi Valley non-operating market license (“unbuilt license”) for $308.0 million. The sale will result in a $252.2 million gain and a $96.0 million current tax expense, which will be recorded in the fourth quarter of 2013. In addition, on August 14, 2013 U.S. Cellular entered into a definitive agreement to sell the majority of its St. Louis area unbuilt license for $92.3 million. This transaction is subject to regulatory approval and is expected to close by the end of 2013. In accordance with GAAP, the book value of both licenses has been accounted for and disclosed as “held for sale” in the Consolidated Balance Sheet at September 30, 2013. | |||||||||||||||||||||||
U.S. Cellular acquisitions during the nine months ended September 30, 2013 and 2012 and the allocation of the purchase price for these acquisitions were as follows: | |||||||||||||||||||||||
Allocation of Purchase Price | |||||||||||||||||||||||
Purchase Price | Goodwill | Licenses | Intangible Assets Subject to Amortization | Net Tangible Assets/(Liabilities) | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||
Licenses | $ | 16,540 | $ | - | $ | 16,540 | $ | - | $ | - | |||||||||||||
2012 | |||||||||||||||||||||||
Licenses | $ | 57,957 | $ | - | $ | 57,957 | $ | - | $ | - | |||||||||||||
At September 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) | |||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||
Divestiture of Missouri Market (3) | $ | 726 | $ | 2,909 | $ | 669 | $ | 3,179 | $ | -1,607 | $ | 5,876 | $ | 471 | |||||||||
Divestiture of Spectrum Licenses (4) | - | 72,537 | - | - | - | 72,537 | - | ||||||||||||||||
Total | $ | 726 | $ | 75,446 | $ | 669 | $ | 3,179 | $ | -1,607 | $ | 78,413 | $ | 471 | |||||||||
31-Dec-12 | |||||||||||||||||||||||
Divestiture Transaction | $ | - | $ | 140,599 | $ | 72,994 | $ | - | $ | - | $ | 213,593 | $ | 19,594 | |||||||||
Bolingbrook Customer Care Center (5) | - | - | - | 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 | U.S. Cellular and/or its consolidated VIEs entered into agreements with third parties to sell unbuilt licenses in Mississippi Valley; St. Louis, MO; South Bend-Mishawaka, IN and Jackson, MI. | ||||||||||||||||||||||
-5 | Effective January 1, 2013, U.S. Cellular transferred its Bolingbrook Customer Care Center operations to an existing third party vendor. |
Intangible_Assets
Intangible Assets | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Disclosure Text Block | ' | |||||||
Intangible Assets | ' | |||||||
6. Intangible Assets | ||||||||
Changes in U.S. Cellular's Licenses and Goodwill for the nine months ended September 30, 2013 and 2012 are presented below. | ||||||||
Licenses | ||||||||
30-Sep-13 | 30-Sep-12 | |||||||
(Dollars in thousands) | ||||||||
Balance, beginning of period | $ | 1,456,794 | $ | 1,470,769 | ||||
Acquisitions | 16,540 | 57,957 | ||||||
Transferred to Assets held for sale | -75,446 | - | ||||||
Other | - | 3,147 | ||||||
Balance, end of period | $ | 1,397,888 | $ | 1,531,873 | ||||
Goodwill | ||||||||
30-Sep-13 | 30-Sep-12 | |||||||
(Dollars in thousands) | ||||||||
Assigned value at time of acquisition | $ | 494,737 | $ | 494,737 | ||||
Accumulated impairment losses in prior periods | - | - | ||||||
Transferred to Assets held for sale | -72,994 | - | ||||||
Balance, beginning of period | 421,743 | 494,737 | ||||||
Transferred to Assets held for sale | -669 | - | ||||||
NY1 & NY2 Deconsolidation | -33,714 | - | ||||||
Balance, end of period | $ | 387,360 | $ | 494,737 |
Investment_in_Unconsolidated_E
Investment in Unconsolidated Entities | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Disclosure Text Block | ' | ||||||||||||
Investment in Unconsolidated Entities | ' | ||||||||||||
7. Investments in Unconsolidated Entities | |||||||||||||
Investments in unconsolidated entities consist of amounts invested in wireless entities in which U.S. Cellular holds a noncontrolling interest. These investments are accounted for using either the equity or cost method. | |||||||||||||
Equity in earnings of unconsolidated entities totaled $37.4 million and $24.8 million in the three months ended September 30, 2013 and 2012, respectively, and $99.8 million and $71.6 million in the nine months ended September 30, 2013 and 2012, respectively; of those amounts, U.S. Cellular's investment in the Los Angeles SMSA Limited Partnership (“LA Partnership”) contributed $20.8 million and $18.3 million in the three months ended September 30, 2013 and 2012, respectively, and $61.2 million and $54.6 million in the nine months ended September 30, 2013 and 2012, respectively. U.S. Cellular held a 5.5% ownership interest in the LA Partnership during these periods. | |||||||||||||
The following table, which is based on information provided in part by third parties, summarizes the combined results of operations of U.S. Cellular’s equity method investments. Such combined results of operations include the results of the NY1 & NY2 Partnerships from April 3, 2013, the effective date of their deconsolidation as discussed below. | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(Dollars in thousands) | |||||||||||||
Revenues | $ | 1,577,934 | $ | 1,446,311 | $ | 4,615,224 | $ | 4,298,176 | |||||
Operating expenses | 1,125,966 | 1,063,285 | 3,288,743 | 3,150,168 | |||||||||
Operating income | 451,968 | 383,026 | 1,326,481 | 1,148,008 | |||||||||
Other income, net | 1,063 | -51 | 2,764 | 2,185 | |||||||||
Net income | $ | 453,031 | $ | 382,975 | $ | 1,329,245 | $ | 1,150,193 | |||||
NY1 & NY2 Deconsolidation | |||||||||||||
U.S. Cellular holds a 60.00% interest in NY1 and a 57.14% interest in NY2 (together with NY1, the “Partnerships”). The remaining interests in the Partnerships are held by Cellco Partnership d/b/a Verizon Wireless (“Verizon Wireless”). The Partnerships are operated by Verizon Wireless under the Verizon Wireless brand. Prior to April 3, 2013, because U.S. Cellular owned a greater than 50% interest in each of these Partnerships and based on U.S. Cellular's rights under the Partnership Agreements, U.S. Cellular consolidated the financial results of these Partnerships in accordance with GAAP. | |||||||||||||
On April 3, 2013, U.S. Cellular entered into an agreement relating to the Partnerships. The agreement amends the Partnership Agreements in several ways which provide Verizon Wireless with substantive participating rights that allow Verizon Wireless to make decisions that are in the ordinary course of business of the Partnerships and which are significant to directing and executing the activities of the business. Accordingly, as required by GAAP, U.S. Cellular deconsolidated the Partnerships effective as of April 3, 2013 and thereafter reported them as equity method investments in its consolidated financial statements. After the NY1 & NY2 Deconsolidation, U.S. Cellular retained the same ownership percentages in the Partnerships and will continue to report the same percentages of income from the Partnerships, which will be recorded in Equity in earnings of unconsolidated entities in the Consolidated Statement of Operations. In addition to the foregoing described arrangements, U.S. Cellular has certain other arm's length, ordinary business relationships with Verizon Wireless and its affiliates. | |||||||||||||
In accordance with GAAP, as a result of the NY1 & NY2 Deconsolidation, U.S. Cellular's interest in the Partnerships was reflected in Investments in unconsolidated entities at a fair value of $114.8 million as of April 3, 2013. Recording U.S. Cellular's interest in the Partnerships required allocation of the excess of fair value over book value to customer lists, licenses, a favorable contract and goodwill of the Partnerships. Amortization expense related to customer lists and the favorable contract will be recognized over their respective useful lives and is included in Equity in earnings of unconsolidated entities in the Consolidated Statement of Operations. In addition, U.S. Cellular recognized a non-cash pre-tax gain of $18.5 million in the second quarter of 2013. The gain was recorded in Gain on investments in the Consolidated Statement of Operations. | |||||||||||||
The Partnerships were valued using a discounted cash flow approach and a publicly-traded guideline company method. The discounted cash flow approach uses value drivers and risks specific to the industry and current economic factors. The cash flow estimates incorporated assumptions that market participants would use in their estimates of fair value and may not be indicative of U.S. Cellular specific assumptions. The most significant assumptions made in this process were the revenue growth rate (shown as a simple average in the table below), the terminal revenue growth rate, discount rate and capital expenditures. The assumptions were as follows: | |||||||||||||
Key assumptions | |||||||||||||
Average expected revenue growth rate (next ten years) | 2 | % | |||||||||||
Terminal revenue growth rate (after year ten) | 2 | % | |||||||||||
Discount rate | 10.5 | % | |||||||||||
Capital expenditures as a percentage of revenue | 14.9-18.8 | % | |||||||||||
The publicly-traded guideline company method develops an indication of fair value by calculating average market pricing multiples for selected publicly-traded companies using multiples of: Revenue and Earnings before Interest, Taxes, and Depreciation and Amortization (EBITDA). The developed multiples were applied to applicable financial measures of the Partnerships to determine fair value. The discounted cash flow approach and publicly-traded guideline company method were weighted to arrive at the total fair value of the Partnerships. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block | ' |
Commitments and Contingencies | ' |
8. Commitments, Contingencies and Other Liabilities | |
Agreements | |
As previously disclosed, on August 17, 2010, U.S. Cellular and Amdocs Software Systems Limited (“Amdocs”) entered into a Software License and Maintenance Agreement (“SLMA”) and a Master Service Agreement (“MSA”) (collectively, the “Amdocs Agreements”) to develop a Billing and Operational Support System (“B/OSS”). In July 2013, U.S. Cellular implemented B/OSS, pursuant to an updated Statement of Work dated June 29, 2012. Total payments to Amdocs related to this implementation are estimated to be approximately $183.5 million (subject to certain potential adjustments) over the period from commencement of the SLMA through the first half of 2014. As of September 30, 2013, $133.3 million had been paid to Amdocs. | |
Indemnifications | |
U.S. Cellular enters into agreements in the normal course of business that provide for indemnification of counterparties. The terms of the indemnifications vary by agreement. The events or circumstances that would require U.S. Cellular to perform under these indemnities are transaction specific; however, these agreements may require U.S. Cellular to indemnify the counterparty for costs and losses incurred from litigation or claims arising from the underlying transaction. U.S. Cellular is unable to estimate the maximum potential liability for these types of indemnifications as the amounts are dependent on the outcome of future events, the nature and likelihood of which cannot be determined at this time. Historically, U.S. Cellular has not made any significant indemnification payments under such agreements. | |
Legal Proceedings | |
U.S. Cellular is involved or may be involved from time to time in legal proceedings before the Federal Communications Commission (“FCC”), other regulatory authorities, and/or various state and federal courts. If U.S. Cellular believes that a loss arising from such legal proceedings is probable and can be reasonably estimated, an amount is accrued in the financial statements for the estimated loss. If only a range of loss can be determined, the best estimate within that range is accrued; if none of the estimates within that range is better than another, the low end of the range is accrued. The assessment of the expected outcomes of legal proceedings is a highly subjective process that requires judgments about future events. The legal proceedings are reviewed at least quarterly to determine the adequacy of accruals and related financial statement disclosures. The ultimate outcomes of legal proceedings could differ materially from amounts accrued in the financial statements. | |
U.S. Cellular has accrued $1.7 million with respect to legal proceedings and unasserted claims as of both September 30, 2013 and December 31, 2012. U.S. Cellular has not accrued any amount for legal proceedings if it cannot reasonably estimate the amount of the possible loss or range of loss. U.S. Cellular does not believe that the amount of any contingent loss in excess of the amounts accrued would be material. | |
Apple iPhone Products Purchase Commitment | |
In March 2013, U.S. Cellular entered into an agreement with Apple to purchase an estimated $1.2 billion of Apple iPhone products over a three-year period beginning in November 2013. |
Variable_Interest_Entities
Variable Interest Entities | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Disclosure Text Block | ' | ||||||
Variable Interest Entities | ' | ||||||
9. Variable Interest Entities (VIEs) | |||||||
Consolidated VIEs | |||||||
As of September 30, 2013, U.S. Cellular holds a variable interest in and consolidates the following VIEs under GAAP: | |||||||
Aquinas Wireless L.P. (“Aquinas Wireless”); and | |||||||
King Street Wireless L.P. (“King Street Wireless”) and King Street Wireless, Inc., the general partner of King Street Wireless. | |||||||
The power to direct the activities that most significantly impact the economic performance of Aquinas Wireless and King Street Wireless (collectively, the “limited partnerships”) is shared. Specifically, the general partner of these VIEs has the exclusive right to manage, operate and control the limited partnerships and make all decisions to carry on the business of the partnerships; however, the general partner of each partnership needs consent of the limited partner, a U.S. Cellular subsidiary, to sell or lease certain licenses, to make certain large expenditures, admit other partners or liquidate the limited partnerships. Although the power to direct the activities of the VIEs is shared, U.S. Cellular has a disproportionate level of exposure to the variability associated with the economic performance of the VIEs, indicating that U.S. Cellular is the primary beneficiary of the VIEs in accordance with GAAP. Accordingly, these VIEs are consolidated. | |||||||
The following table presents the classification of the consolidated VIEs' assets and liabilities in U.S. Cellular's Consolidated Balance Sheet. | |||||||
30-Sep-13 | 31-Dec-12 | ||||||
(Dollars in thousands) | |||||||
Assets | |||||||
Cash and cash equivalents | $ | 2,669 | $ | 5,849 | |||
Other current assets | 1,190 | 120 | |||||
Licenses | 308,091 | 308,091 | |||||
Property, plant and equipment, net | 17,535 | 16,443 | |||||
Other assets and deferred charges | 541 | 887 | |||||
Total assets | $ | 330,026 | $ | 331,390 | |||
Liabilities | |||||||
Current liabilities | $ | 3 | $ | 1,013 | |||
Deferred liabilities and credits | 3,280 | 3,024 | |||||
Total liabilities | $ | 3,283 | $ | 4,037 | |||
Other Related Matters | |||||||
Aquinas Wireless and King Street Wireless were formed to participate in FCC auctions of wireless spectrum and to fund, establish, and provide wireless service with respect to any FCC licenses won in the auctions. As such, these entities have risks similar to the business risks described in the “Risk Factors” in U.S. Cellular's Form 10-K for the year ended December 31, 2012. | |||||||
U.S. Cellular may agree to make additional capital contributions and/or advances to Aquinas Wireless and King Street Wireless and/or to their general partners to provide additional funding for the development of licenses granted in various auctions. U.S. Cellular may finance such amounts with a combination of cash on hand, borrowings under its revolving credit agreement and/or long-term debt. There is no assurance that U.S. Cellular will be able to obtain additional financing on commercially reasonable terms or at all to provide such financial support. | |||||||
U.S. Cellular's capital contributions and advances made to Aquinas Wireless and King Street Wireless and/or their general partners in the nine months ended September 30, 2012 totaled $5.0 million. There were no capital contributions or advances made to Aquinas Wireless or King Street Wireless or their general partners in the nine months ended September 30, 2013. | |||||||
U.S. Cellular began offering fourth generation Long-term Evolution (“4G LTE”) service in certain cities within its service areas during the first quarter of 2012 and has plans to continue the deployment of 4G LTE. U.S. Cellular currently provides 4G LTE service in conjunction with King Street Wireless. Aquinas Wireless is still in the process of developing long-term business plans. | |||||||
Common_Share_Repurchases
Common Share Repurchases | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Disclosure Text Block | ' | ||||||
Common Share Repurchases | ' | ||||||
10. Common Share Repurchases | |||||||
On November 17, 2009, the Board of Directors of U.S. Cellular authorized the repurchase of up to 1,300,000 Common Shares on an annual basis beginning in 2009 and continuing each year thereafter, on a cumulative basis. These purchases will be made pursuant to open market purchases, block purchases, private purchases, or otherwise, depending on market prices and other conditions. This authorization does not have an expiration date. | |||||||
Share repurchases made under this authorization were as follows: | |||||||
Nine Months Ended | |||||||
September 30, | |||||||
2013 | 2012 | ||||||
(Dollars and shares in thousands, except cost per share) | |||||||
Number of shares | 499 | - | |||||
Average cost per share | $ | 37.19 | $ | - | |||
Total cost | $ | 18,544 | $ | - |
Noncontrolling_Interests
Noncontrolling Interests | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block | ' |
Noncontrolling Interests | ' |
11. Noncontrolling Interests | |
U.S. Cellular's consolidated financial statements include certain noncontrolling interests that meet the GAAP definition of mandatorily redeemable financial instruments. These mandatorily redeemable noncontrolling interests represent interests held by third parties in consolidated partnerships and limited liability companies (“LLCs”), where the terms of the underlying partnership or LLC agreement provide for a defined termination date at which time the assets of the subsidiary are to be sold, the liabilities are to be extinguished and the remaining net proceeds are to be distributed to the noncontrolling interest holders and U.S. Cellular in accordance with the respective partnership and LLC agreements. The termination dates of these mandatorily redeemable noncontrolling interests range from 2085 to 2107. | |
The estimated aggregate amount that would be due and payable to settle all of these noncontrolling interests, assuming an orderly liquidation of the finite-lived consolidated partnerships and LLCs on September 30, 2013, net of estimated liquidation costs, is $61.3 million. This amount excludes redemption amounts recorded in Noncontrolling interests with redemption features in the Consolidated Balance Sheet. The estimate of settlement value was based on certain factors and assumptions which are subjective in nature. Changes in those factors and assumptions could result in a materially larger or smaller settlement amount. U.S. Cellular currently has no plans or intentions relating to the liquidation of any of the related partnerships or LLCs prior to their scheduled termination dates. The corresponding carrying value of the mandatorily redeemable noncontrolling interests in finite-lived consolidated partnerships and LLCs at September 30, 2013 was $17.4 million, and is included in Noncontrolling interests in the Consolidated Balance Sheet. The excess of the aggregate settlement value over the aggregate carrying value of these mandatorily redeemable noncontrolling interests is due primarily to the unrecognized appreciation of the noncontrolling interest holders' share of the underlying net assets in the consolidated partnerships and LLCs. Neither the noncontrolling interest holders' share, nor U.S. Cellular's share, of the appreciation of the underlying net assets of these subsidiaries is reflected in the consolidated financial statements. | |
Supplemental_Cash_Flow_Disclos
Supplemental Cash Flow Disclosures | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Disclosure Text Block | ' | ||||||
Supplemental Cash Flow Disclosures | ' | ||||||
12. Supplemental Cash Flow Disclosures | |||||||
Following are supplemental cash flow disclosures regarding transactions related to stock-based compensation awards. In certain situations, U.S. Cellular withholds shares that are issuable upon the exercise of stock options or the vesting of restricted shares to cover, and with a value equivalent to, the exercise price and/or the amount of taxes required to be withheld from the stock award holder at the time of the exercise or vesting. U.S. Cellular then pays the amount of the required tax withholdings to the taxing authorities in cash. | |||||||
Nine Months Ended | |||||||
September 30, | |||||||
2013 | 2012 | ||||||
(Dollars and shares in thousands) | |||||||
Common Shares withheld | 524 | 78 | |||||
Aggregate value of Common Shares withheld | $ | 21,387 | $ | 3,076 | |||
Cash receipts upon exercise of stock options | $ | 7,223 | $ | 793 | |||
Cash disbursements for payment of taxes | -4,383 | -3,092 | |||||
Net cash receipts (disbursements) from exercise of stock options and vesting of other stock awards | $ | 2,840 | $ | -2,299 | |||
On September 27, 2012, the FCC conducted a single round, sealed bid, reverse auction to award up to $300 million in one-time Mobility Fund Phase I support to successful bidders that commit to provide 3G, or better, wireless service in areas designated as unserved by the FCC. This auction was designated by the FCC as Auction 901. U.S. Cellular and several of its wholly-owned subsidiaries participated in Auction 901 and were winning bidders in eligible areas within 10 states and will receive up to $40.1 million in one-time support from the Mobility Fund. These funds will reduce the carrying amount of the assets to which they relate or will offset operating expenses. U.S. Cellular has received $13.4 million in support funds as of September 30, 2013, of which $12.1 million is included as a component of Other assets and deferred charges in the Consolidated Balance Sheet and $1.3 million reduced the carrying amount of the assets to which they relate, which are included in Property, plant and equipment in the Consolidated Balance Sheet. | |||||||
On June 25, 2013, U.S. Cellular paid a special cash dividend of $5.75 per share, for an aggregate amount of $482.3 million, to all holders of U.S. Cellular Common Shares and Series A Common Shares. | |||||||
Fair_Value_Measurements_Table
Fair Value Measurements (Table) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Fair Value Disclosures | ' | ||||||||||||||
Fair value measurements | ' | ||||||||||||||
Level within the Fair Value Hierarchy | 30-Sep-13 | 31-Dec-12 | |||||||||||||
Book Value | Fair Value | Book Value | Fair Value | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Cash and cash equivalents | 1 | $ | 183,101 | $ | 183,101 | $ | 378,358 | $ | 378,358 | ||||||
Short-term investments | |||||||||||||||
U.S. Treasury Notes | 1 | 45,162 | 45,162 | 100,676 | 100,676 | ||||||||||
Long-term investments | |||||||||||||||
U.S. Treasury Notes | 1 | 40,099 | 40,154 | 50,305 | 50,339 | ||||||||||
Long-term debt | |||||||||||||||
6.95% Senior Notes | 1 | 342,000 | 330,509 | 342,000 | 376,610 | ||||||||||
6.7% Senior Notes | 2 | 532,383 | 512,221 | 532,194 | 582,744 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Earnings Per Share | ' | ||||||||||||
Earnings per share | ' | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(Dollars and shares in thousands, except per share amounts) | |||||||||||||
Net income (loss) attributable to U.S. Cellular shareholders | $ | -9,859 | $ | 35,451 | $ | 138,446 | $ | 150,628 | |||||
Weighted average number of shares used in basic earnings (loss) per share | 84,005 | 84,737 | 83,897 | 84,671 | |||||||||
Effects of dilutive securities: | |||||||||||||
Stock options | - | 171 | 209 | 197 | |||||||||
Restricted stock units | - | 440 | 570 | 393 | |||||||||
Weighted average number of shares used in diluted earnings (loss) per share | 84,005 | 85,348 | 84,676 | 85,261 | |||||||||
Basic earnings (loss) per share attributable to U.S. Cellular shareholders | $ | -0.12 | $ | 0.42 | $ | 1.65 | $ | 1.78 | |||||
Diluted earnings (loss) per share attributable to U.S. Cellular shareholders | $ | -0.12 | $ | 0.42 | $ | 1.64 | $ | 1.77 | |||||
Summary of antidilutive shares | ' | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(Shares in thousands) | |||||||||||||
Stock options | 3,416 | 2,434 | 2,126 | 2,088 | |||||||||
Restricted stock units | 1,243 | - | 305 | 329 |
Acquisitions_Divestitures_and_1
Acquisitions, Divestitures and Exchanges (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Business Combination | ' | ||||||||||||||||||||||
Acquisitions, Divestitures and Exchanges | ' | ||||||||||||||||||||||
U.S. Cellular acquisitions during the nine months ended September 30, 2013 and 2012 and the allocation of the purchase price for these acquisitions were as follows: | |||||||||||||||||||||||
Allocation of Purchase Price | |||||||||||||||||||||||
Purchase Price | Goodwill | Licenses | Intangible Assets Subject to Amortization | Net Tangible Assets/(Liabilities) | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||
Licenses | $ | 16,540 | $ | - | $ | 16,540 | $ | - | $ | - | |||||||||||||
2012 | |||||||||||||||||||||||
Licenses | $ | 57,957 | $ | - | $ | 57,957 | $ | - | $ | - | |||||||||||||
Divestiture Financial Impacts | ' | ||||||||||||||||||||||
Business divestiture financial impacts | ' | ||||||||||||||||||||||
(Dollars in thousands) | Expected Period of Recognition | Projected Range | Cumulative Amount Recognized as of September 30, 2013 | Actual Amount Recognized Nine Months Ended September 30, 2013 | 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 | 2013-2014 | -120,000 | -160,000 | -4,221 | -4,221 | -4,213 | |||||||||||||||||
Net assets transferred | 2013 | 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 | 10,000 | 14,000 | 10,726 | 54 | -27 | |||||||||||||||||
Employee related costs including severance, retention and outplacement | 2012-2014 | 15,000 | 20,000 | 15,071 | 2,462 | -641 | |||||||||||||||||
Contract termination costs | 2012-2014 | 125,000 | 175,000 | 18,840 | 18,781 | 2,176 | |||||||||||||||||
Transaction costs | 2012-2013 | 4,000 | 6,000 | 5,218 | 4,081 | 362 | |||||||||||||||||
Total (Gain) loss on sale of business and other exit costs, net | $ | -232,407 | $ | -211,407 | $ | -220,773 | $ | -245,250 | $ | -2,343 | |||||||||||||
Depreciation, amortization and accretion expense | |||||||||||||||||||||||
Incremental depreciation, amortization and accretion, net of salvage values | 2012-2014 | 175,000 | 210,000 | 154,058 | 134,000 | 45,676 | |||||||||||||||||
(Increase) decrease in Operating income | $ | -57,407 | $ | -1,407 | $ | -66,715 | $ | -111,250 | $ | 43,333 | |||||||||||||
As a result of the transaction, U.S. Cellular recognized the following amounts in the Consolidated Balance Sheet: | |||||||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||
(Dollars in thousands) | Balance December 31, 2012 | Costs Incurred | Cash Settlements (1) | Adjustments (2) | Balance September 30, 2013 | ||||||||||||||||||
Accrued compensation | |||||||||||||||||||||||
Employee related costs including severance, retention, outplacement | $ | 12,305 | $ | 6,750 | $ | -11,460 | $ | -4,288 | $ | 3,307 | |||||||||||||
Other current liabilities | |||||||||||||||||||||||
Contract termination costs | $ | 30 | $ | 12,201 | $ | -6,561 | $ | - | $ | 5,670 | |||||||||||||
Other deferred liabilities and credits | |||||||||||||||||||||||
Contract termination costs | $ | - | $ | 7,246 | $ | -1,488 | $ | - | $ | 5,758 | |||||||||||||
-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 September 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) | |||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||
Divestiture of Missouri Market (3) | $ | 726 | $ | 2,909 | $ | 669 | $ | 3,179 | $ | -1,607 | $ | 5,876 | $ | 471 | |||||||||
Divestiture of Spectrum Licenses (4) | - | 72,537 | - | - | - | 72,537 | - | ||||||||||||||||
Total | $ | 726 | $ | 75,446 | $ | 669 | $ | 3,179 | $ | -1,607 | $ | 78,413 | $ | 471 | |||||||||
31-Dec-12 | |||||||||||||||||||||||
Divestiture Transaction | $ | - | $ | 140,599 | $ | 72,994 | $ | - | $ | - | $ | 213,593 | $ | 19,594 | |||||||||
Bolingbrook Customer Care Center (5) | - | - | - | 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 | U.S. Cellular and/or its consolidated VIEs entered into agreements with third parties to sell unbuilt licenses in Mississippi Valley; St. Louis, MO; South Bend-Mishawaka, IN and Jackson, MI. | ||||||||||||||||||||||
-5 | Effective January 1, 2013, U.S. Cellular transferred its Bolingbrook Customer Care Center operations to an existing third party vendor. |
Intangible_Assets_Tables
Intangible Assets (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Licenses | ' | |||||||
Licenses | ' | |||||||
Licenses | ||||||||
30-Sep-13 | 30-Sep-12 | |||||||
(Dollars in thousands) | ||||||||
Balance, beginning of period | $ | 1,456,794 | $ | 1,470,769 | ||||
Acquisitions | 16,540 | 57,957 | ||||||
Transferred to Assets held for sale | -75,446 | - | ||||||
Other | - | 3,147 | ||||||
Balance, end of period | $ | 1,397,888 | $ | 1,531,873 | ||||
Goodwill | ' | |||||||
Goodwill | ' | |||||||
Goodwill | ||||||||
30-Sep-13 | 30-Sep-12 | |||||||
(Dollars in thousands) | ||||||||
Assigned value at time of acquisition | $ | 494,737 | $ | 494,737 | ||||
Accumulated impairment losses in prior periods | - | - | ||||||
Transferred to Assets held for sale | -72,994 | - | ||||||
Balance, beginning of period | 421,743 | 494,737 | ||||||
Transferred to Assets held for sale | -669 | - | ||||||
NY1 & NY2 Deconsolidation | -33,714 | - | ||||||
Balance, end of period | $ | 387,360 | $ | 494,737 |
Investment_in_Unconsolidated_E1
Investment in Unconsolidated Entities (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Equity Method Investment, Summarized Financial Information | ' | ||||||||||||
Equity method investments, summarized results of operations | ' | ||||||||||||
The following table, which is based on information provided in part by third parties, summarizes the combined results of operations of U.S. Cellular’s equity method investments. Such combined results of operations include the results of the NY1 & NY2 Partnerships from April 3, 2013, the effective date of their deconsolidation as discussed below. | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(Dollars in thousands) | |||||||||||||
Revenues | $ | 1,577,934 | $ | 1,446,311 | $ | 4,615,224 | $ | 4,298,176 | |||||
Operating expenses | 1,125,966 | 1,063,285 | 3,288,743 | 3,150,168 | |||||||||
Operating income | 451,968 | 383,026 | 1,326,481 | 1,148,008 | |||||||||
Other income, net | 1,063 | -51 | 2,764 | 2,185 | |||||||||
Net income | $ | 453,031 | $ | 382,975 | $ | 1,329,245 | $ | 1,150,193 | |||||
Fair Value Key Assumptions | ' | ||||||||||||
Key assumptions | |||||||||||||
Average expected revenue growth rate (next ten years) | 2 | % | |||||||||||
Terminal revenue growth rate (after year ten) | 2 | % | |||||||||||
Discount rate | 10.5 | % | |||||||||||
Capital expenditures as a percentage of revenue | 14.9-18.8 | % |
Variable_Interest_Entities_VIE
Variable Interest Entities VIEs (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Variable Interest Entities VIEs | ' | ||||||
Consolidated VIE assets and liabilities | ' | ||||||
30-Sep-13 | 31-Dec-12 | ||||||
(Dollars in thousands) | |||||||
Assets | |||||||
Cash and cash equivalents | $ | 2,669 | $ | 5,849 | |||
Other current assets | 1,190 | 120 | |||||
Licenses | 308,091 | 308,091 | |||||
Property, plant and equipment, net | 17,535 | 16,443 | |||||
Other assets and deferred charges | 541 | 887 | |||||
Total assets | $ | 330,026 | $ | 331,390 | |||
Liabilities | |||||||
Current liabilities | $ | 3 | $ | 1,013 | |||
Deferred liabilities and credits | 3,280 | 3,024 | |||||
Total liabilities | $ | 3,283 | $ | 4,037 |
Common_Share_Repurchases_Table
Common Share Repurchases (Table) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Common Share Repurchases | ' | ||||||
Share repurchases | ' | ||||||
Nine Months Ended | |||||||
September 30, | |||||||
2013 | 2012 | ||||||
(Dollars and shares in thousands, except cost per share) | |||||||
Number of shares | 499 | - | |||||
Average cost per share | $ | 37.19 | $ | - | |||
Total cost | $ | 18,544 | $ | - |
Supplemental_Cash_Flow_Table
Supplemental Cash Flow (Table) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Supplemental Cash Flow Disclosures | ' | ||||||
Supplemental cash flow disclosures | ' | ||||||
Nine Months Ended | |||||||
September 30, | |||||||
2013 | 2012 | ||||||
(Dollars and shares in thousands) | |||||||
Common Shares withheld | 524 | 78 | |||||
Aggregate value of Common Shares withheld | $ | 21,387 | $ | 3,076 | |||
Cash receipts upon exercise of stock options | $ | 7,223 | $ | 793 | |||
Cash disbursements for payment of taxes | -4,383 | -3,092 | |||||
Net cash receipts (disbursements) from exercise of stock options and vesting of other stock awards | $ | 2,840 | $ | -2,299 |
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Basis of Presentation | ' | ' | ' | ' |
TDS ownership of U.S. Cellular | 84.00% | ' | 84.00% | ' |
Amounts recorded gross in revenues that are billed to customers and remitted to governmental authorities | $27.40 | $32.30 | $87.60 | $102.20 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Minimum | Maximum | 6.7% Senior Notes | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Book Value | Book Value | Book Value | Book Value | Book Value | Book Value | Book Value | Book Value | ||||
Level 1 | Level 1 | Level 1 | Level 1 | Level 2 | Level 2 | U.S. Treasury Notes | U.S. Treasury Notes | 6.95% Senior Notes | 6.95% Senior Notes | 6.7% Senior Notes | 6.7% Senior Notes | U.S. Treasury Notes | U.S. Treasury Notes | ||||||||||
6.95% Senior Notes | 6.95% Senior Notes | 6.7% Senior Notes | 6.7% Senior Notes | Level 1 | Level 1 | ||||||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | $183,101 | $378,358 | $409,579 | $424,155 | ' | ' | ' | $183,101 | $378,358 | ' | ' | ' | ' | ' | ' | $183,101 | $378,358 | ' | ' | ' | ' | ' | ' |
Short-term investments | 45,162 | 100,676 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,162 | 100,676 | ' | ' | ' | ' | ' | ' | 45,162 | 100,676 |
Long-term investments | 40,099 | 50,305 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,154 | 50,339 | ' | ' | ' | ' | ' | ' | 40,099 | 50,305 |
Long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | $330,509 | $376,610 | $512,221 | $582,744 | ' | ' | ' | ' | $342,000 | $342,000 | $532,383 | $532,194 | ' | ' |
Long term investment maturities | ' | ' | ' | ' | 30-Nov-14 | 15-Dec-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value assumption, interest rate | ' | ' | ' | ' | ' | ' | 7.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Additional_Disclo
Income Taxes, Additional Disclosures (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Effective income tax rate | 40.10% | 34.70% | 45.70% | 32.70% |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings per share | ' | ' | ' | ' |
Net income (loss) attributable to U.S. Cellular shareholders | ($9,859) | $35,451 | $138,446 | $150,628 |
Weighted average number of shares used in basic earnings (loss) per share | ' | ' | ' | ' |
Weighted average number of shares used in basic earnings (loss) per share | 84,005 | 84,737 | 83,897 | 84,671 |
Effect of dilutive securities: | ' | ' | ' | ' |
Stock options | ' | 171 | 209 | 197 |
Restricted stock units | ' | 440 | 570 | 393 |
Weighted average number of shares used in diluted earnings (loss) per share | 84,005 | 85,348 | 84,676 | 85,261 |
Basic earnings (loss) per share attributable to U.S. Cellular shareholders | ($0.12) | $0.42 | $1.65 | $1.78 |
Diluted earnings (loss) per share attributable to U.S. Cellular shareholders | ($0.12) | $0.42 | $1.64 | $1.77 |
Common Shares | Stock Options | ' | ' | ' | ' |
Effect of dilutive securities: | ' | ' | ' | ' |
Antidilutive securities | 3,416 | 2,434 | 2,126 | 2,088 |
Common Shares | Restricted Stock | ' | ' | ' | ' |
Effect of dilutive securities: | ' | ' | ' | ' |
Antidilutive securities | 1,243 | ' | 305 | 329 |
Acquisitions_Divestitures_and_2
Acquisitions, Divestitures and Exchanges, acquisitions (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | License Acquisitions | License Acquisitions | ||||
Acquisitions, divestitures and exchanges | ' | ' | ' | ' | ' | ' |
Licenses | $1,397,888 | $1,456,794 | $1,531,873 | $1,470,769 | $16,540 | $57,957 |
Purchase price | ' | ' | ' | ' | $16,540 | $57,957 |
Acquisitions_Divestitures_and_3
Acquisitions, Divestitures and Exchanges, divestitures (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 11 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 14 Months Ended | 26 Months Ended | 9 Months Ended | 12 Months Ended | 14 Months Ended | 26 Months Ended | 9 Months Ended | 11 Months Ended | 12 Months Ended | 9 Months Ended | 24 Months Ended | 3 Months Ended | 9 Months Ended | 11 Months Ended | 9 Months Ended | 24 Months Ended | 9 Months Ended | 24 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |||||||||||
Divestiture transaction | Divestiture transaction | Divestiture transaction | Divestiture transaction | Bolingbrook customer care center | Bolingbrook customer care center | Wireless market | Non-operating market licenses | Mississippi Valley | St. Louis | Expected event | Expected event | Minimum | Minimum | Minimum | Maximum | Maximum | Maximum | Maximum | Other current liabilities | Purchase price | Purchase price | Purchase price | Purchase price | Sprint Cost Reimbursement | Sprint Cost Reimbursement | Sprint Cost Reimbursement | Sprint Cost Reimbursement | Sprint Cost Reimbursement | Sprint Cost Reimbursement | Sprint Cost Reimbursement | Sprint Cost Reimbursement | Sprint Cost Reimbursement | Sprint Cost Reimbursement | Net assets transferred | Non-cash charges for the write-off and write-down of property under construction and related assets | Non-cash charges for the write-off and write-down of property under construction and related assets | Employee related costs including severance, retention and outplacement | Employee related costs including severance, retention and outplacement | Employee related costs including severance, retention and outplacement | Contract termination costs | Contract termination costs | Contract termination costs | Contract termination costs | Transaction costs | Transaction costs | Incremental depreciation, amortization and accretion, net of salvage values | Incremental depreciation, amortization and accretion, net of salvage values | ||||||||||||||||
Mississippi Valley | St. Louis | Expected event | Expected event | Expected event | Divestiture transaction | Expected event | Expected event | Expected event | Divestiture transaction | Divestiture transaction | Divestiture transaction | Minimum | Maximum | Divestiture transaction | Maximum | (Gain) loss on sale of business and other exit costs, net | (Gain) loss on sale of business and other exit costs, net | (Gain) loss on sale of business and other exit costs, net | (Gain) loss on sale of business and other exit costs, net | (Gain) loss on sale of business and other exit costs, net | (Gain) loss on sale of business and other exit costs, net | (Gain) loss on sale of business and other exit costs, net | System operations | Divestiture transaction | Minimum | Maximum | Divestiture transaction | Minimum | Maximum | Minimum | Maximum | Other current liabilities | Other deferred liabilities and credits | Minimum | Maximum | Minimum | Maximum | ||||||||||||||||||||||||||
Divestiture transaction | Divestiture transaction | Divestiture transaction | Divestiture transaction | Divestiture transaction | Divestiture transaction | Expected event | Expected event | Cash received from divestitures | Expected event | Divestiture transaction | Divestiture transaction | Divestiture transaction | Minimum | Minimum | Maximum | Maximum | Maximum | Divestiture transaction | Divestiture transaction | Divestiture transaction | Divestiture transaction | Divestiture transaction | Divestiture transaction | Divestiture transaction | Divestiture transaction | Divestiture transaction | Divestiture transaction | Divestiture transaction | Divestiture transaction | ||||||||||||||||||||||||||||||||||
Divestiture transaction | Divestiture transaction | Divestiture transaction | Divestiture transaction | Expected event | Divestiture transaction | Expected event | Expected event | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Divestiture transaction | Divestiture transaction | Divestiture transaction | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Divestitures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Business divestiture date | ' | ' | ' | ' | ' | ' | 16-May-13 | ' | ' | 1-Jan-13 | ' | ' | ' | ' | ' | 4-Oct-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Business divestiture description | ' | ' | ' | ' | ' | ' | 'On November 6, 2012, U.S. Cellular entered into a Purchase and Sale Agreement with subsidiaries of Sprint Nextel Corporation (“Sprint”). Pursuant to the Purchase and Sale Agreement, on May 16, 2013, U.S. Cellular transferred customers and certain PCS license spectrum to Sprint in U.S. Cellular's Chicago, central Illinois, St. Louis and certain Indiana/Michigan/Ohio markets (“Divestiture Markets”) in consideration for $480 million in cash. The Purchase and Sale Agreement also contemplated certain other agreements, together with the Purchase and Sale Agreement collectively referred to as the “Divestiture Transaction.” U.S. Cellular has retained other assets and liabilities related to the Divestiture Markets, including network assets, retail stores and related equipment, and other buildings and facilities. The transaction does not affect spectrum licenses held by U.S. Cellular or variable interest entities (“VIEs”) that are not currently used in the operations of the Divestiture Markets. Pursuant to the Purchase and Sale Agreement, U.S. Cellular and Sprint also entered into certain other agreements, including customer and network transition services agreements, which require U.S. Cellular to provide customer, billing and network services to Sprint for a period of up to 24 months after the May 16, 2013 closing date. Sprint will reimburse U.S. Cellular for providing such services at an amount equal to U.S. Cellular's cost, including applicable overhead allocations. In addition, these agreements require Sprint to reimburse U.S. Cellular up to $200 million (the “Sprint Cost Reimbursement”) for certain network decommissioning costs, network site lease rent and termination costs, network access termination costs, and employee termination benefits for specified engineering employees. | ' | ' | 'Effective January 1, 2013, U.S. Cellular transferred its Bolingbrook Customer Care Center operations to an existing third party vendor. | ' | ' | ' | 'On October 4, 2013, U.S. Cellular sold the majority of its Mississippi Valley non-operating market license (“unbuilt license”) for $308.0 million. The sale will result in a $252.2 million gain and a $96.0 million current tax expense, which will be recorded in the fourth quarter of 2013. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Business divestiture agreement description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '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. | ' | ' | 'In addition, on August 14, 2013 U.S. Cellular entered into a definitive agreement to sell the majority of its St. Louis area unbuilt license for $92.3 million. This transaction is subject to regulatory approval and is expected to close by the end of 2013. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Business divestiture agreement date | ' | ' | ' | ' | ' | ' | 6-Nov-12 | ' | ' | ' | ' | 15-May-13 | ' | ' | 14-Aug-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Transition services agreement duration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '24M | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Gain of divestiture | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $252,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
(Increase) decrease in Operating Income | 43,207,000 | -48,079,000 | -177,351,000 | -217,444,000 | ' | 43,333,000 | -111,250,000 | -66,715,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -57,407,000 | ' | ' | ' | -1,407,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Current tax expense | -6,433,000 | 22,389,000 | 121,618,000 | 82,624,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 96,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Asset retirement obligation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Divestiture Financial Impacts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Expected period of recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2013 | ' | ' | ' | ' | ' | ' | ' | ' | '2013 | ' | '2014 | ' | ' | '2013 | '2012 | '2013 | ' | '2012 | '2014 | '2012 | '2014 | ' | ' | '2012 | '2013 | '2012 | '2014 | ||||||||||
Cash received from divestitures | ' | ' | -484,300,000 | -49,932,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -308,000,000 | -92,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | -480,000,000 | -480,000,000 | -480,000,000 | -480,000,000 | -1,100,000 | -200,000,000 | -4,213,000 | -4,221,000 | -4,221,000 | ' | -120,000,000 | ' | -160,000,000 | -40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Net assets transferred | ' | ' | ' | ' | ' | ' | 213,593,000 | 213,593,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 213,593,000 | ' | ' | ' | 213,593,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Non-cash charges for the write-off and write-down of property under construction and related assets | ' | ' | ' | ' | ' | -27,000 | 54,000 | 10,726,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | 14,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Employee related costs including severance, retention and outplacement | ' | ' | ' | ' | ' | -641,000 | 2,462,000 | 15,071,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Contract termination costs | ' | ' | ' | ' | ' | 2,176,000 | 18,781,000 | 18,840,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,000,000 | ' | ' | ' | 175,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Transaction costs | ' | ' | ' | ' | ' | 362,000 | 4,081,000 | 5,218,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Total (Gain) loss on sale of business and other exit costs, net | -1,534,000 | 65,000 | -243,627,000 | -4,148,000 | ' | -2,343,000 | -245,250,000 | -220,773,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -232,407,000 | ' | ' | ' | -211,407,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Incremental depreciation, amortization and accretion, net of salvage values | 200,985,000 | 145,151,000 | 593,410,000 | 439,391,000 | ' | 45,676,000 | 134,000,000 | 154,058,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 175,000,000 | ' | ' | ' | 210,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Balance Sheet rollforward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Balance, beginning of period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,305,000 | ' | ' | ' | ' | 30,000 | ' | ' | ' | ' | ' | ||||||||||
Costs incurred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,750,000 | ' | ' | ' | ' | 12,201,000 | 7,246,000 | ' | ' | ' | ' | ||||||||||
Cash settlements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -11,460,000 | [1] | ' | ' | ' | ' | -6,561,000 | [1] | -1,488,000 | [1] | ' | ' | ' | ' | |||||||
Adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4,288,000 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Balance, end of period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,307,000 | ' | ' | ' | ' | 5,670,000 | 5,758,000 | ' | ' | ' | ' | ||||||||||
Assets and liabilities held for sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Current assets | 726,000 | ' | 726,000 | ' | ' | ' | ' | ' | ' | ' | ' | 726,000 | [3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Licenses | 75,446,000 | ' | 75,446,000 | ' | 140,599,000 | ' | ' | ' | 140,599,000 | ' | ' | 2,909,000 | [3] | 72,537,000 | [4] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Goodwill | 669,000 | ' | 669,000 | ' | 72,994,000 | ' | ' | ' | 72,994,000 | ' | ' | 669,000 | [3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Property, plant and equipment | 3,179,000 | ' | 3,179,000 | ' | 4,275,000 | ' | ' | ' | ' | ' | 4,275,000 | [5] | 3,179,000 | [3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Loss on assets held for sale | -1,607,000 | [6] | ' | -1,607,000 | [6] | ' | -1,105,000 | [6] | ' | ' | ' | ' | ' | -1,105,000 | [5],[6] | -1,607,000 | [3],[6] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total Assets held for sale | 78,413,000 | ' | 78,413,000 | ' | 216,763,000 | ' | ' | ' | 213,593,000 | ' | 3,170,000 | [5] | 5,876,000 | [3] | 72,537,000 | [4] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Liabilities held for sale | $471,000 | ' | $471,000 | ' | $19,594,000 | ' | ' | ' | $19,594,000 | [7] | ' | ' | $471,000 | [3],[7] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
[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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[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] | U.S. Cellular and/or its consolidated VIEs entered into agreements with third parties to sell unbuilt licenses in Mississippi Valley; St. Louis, MO; South Bend-Mishawaka, IN and Jackson, MI. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[5] | Effective January 1, 2013, U.S. Cellular transferred its Bolingbrook Customer Care Center operations to an existing third party vendor. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[6] | 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[7] | Liabilities held for sale primarily consisted of Customer deposits and deferred revenues. |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
Licenses | ' | ' | ' | ' |
Balance, beginning of period | $1,456,794 | $1,470,769 | $1,470,769 | ' |
Acquisitions | 16,540 | 57,957 | ' | ' |
Transferred to Assets held for sale | -75,446 | ' | ' | ' |
Other | ' | 3,147 | ' | ' |
Balance, end of period | 1,397,888 | 1,531,873 | 1,456,794 | ' |
Goodwill | ' | ' | ' | ' |
Assigned value at time of acquisition | ' | ' | 494,737 | 494,737 |
Balance, beginning of period | 421,743 | 494,737 | 494,737 | ' |
Transferred to Assets held for sale | -669 | ' | -72,994 | ' |
NY1 & NY2 Deconsolidation | -33,714 | ' | ' | ' |
Balance, end of period | $387,360 | $494,737 | $421,743 | ' |
Investments_in_Unconsolidated_
Investments in Unconsolidated Entities (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' |
Equity in earnings of unconsolidated entities | $37,360 | $24,816 | $99,797 | $71,584 |
Equity method investments, combined income statements | ' | ' | ' | ' |
Revenues | 1,577,934 | 1,446,311 | 4,615,224 | 4,298,176 |
Operating expenses | 1,125,966 | 1,063,285 | 3,288,743 | 3,150,168 |
Operating income | 451,968 | 383,026 | 1,326,481 | 1,148,008 |
Other income, net | 1,063 | -51 | 2,764 | 2,185 |
Net income | 453,031 | 382,975 | 1,329,245 | 1,150,193 |
Los Angeles SMSA Limited Partnership | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' |
Equity in earnings of unconsolidated entities | $20,800 | $18,300 | $61,200 | $54,600 |
Ownership interest in equity method investment | 5.50% | 5.50% | 5.50% | 5.50% |
Investment_in_Unconsolidated_E2
Investment in Unconsolidated Entities, Deconsolidation (Details) (USD $) | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Apr. 03, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
St. Lawrence Seaway RSA Cellular Partnership | New York RSA 2 Cellular Partnership | St. Lawrence Seaway RSA Cellular Partnership and New York RSA 2 Cellular Partnership | St. Lawrence Seaway RSA Cellular Partnership and New York RSA 2 Cellular Partnership | Discounted cash flow valuation approach | Discounted cash flow valuation approach | Discounted cash flow valuation approach | |||
Minimum | Maximum | ||||||||
Fair Value Inputs | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average expected revenue growth rate (next ten years) | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' |
Terminal revenue growth rate (after year ten) | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' |
Discount rate | ' | ' | ' | ' | ' | ' | 10.50% | ' | ' |
Capital expenditures as a percentage of revenue | ' | ' | ' | ' | ' | ' | ' | 14.90% | 18.80% |
Deconsolidation of New York Partnerships | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Date of deconsolidation | ' | ' | ' | ' | 3-Apr-13 | ' | ' | ' | ' |
Ownership interest in equity method investment | ' | ' | 60.00% | 57.14% | ' | ' | ' | ' | ' |
Investments in unconsolidated entities | $309,481,000 | $144,531,000 | ' | ' | ' | $114,800,000 | ' | ' | ' |
Deconsolidation description | 'On April 3, 2013, U.S. Cellular entered into an agreement relating to the Partnerships. The agreement amends the Partnership Agreements in several ways which provide Verizon Wireless with substantive participating rights that allow Verizon Wireless to make decisions that are in the ordinary course of business of the Partnerships and which are significant to directing and executing the activities of the business. Accordingly, as required by GAAP, U.S. Cellular deconsolidated the Partnerships effective as of April 3, 2013 and thereafter reported them as equity method investments in its consolidated financial statements. After the NY1 & NY2 Deconsolidation, U.S. Cellular retained the same ownership percentages in the Partnerships and will continue to report the same percentages of income from the Partnerships, which will be recorded in Equity in earnings of unconsolidated entities in the Consolidated Statement of Operations. In addition to the foregoing described arrangements, U.S. Cellular has certain other arm’s length, ordinary business relationships with Verizon Wireless and its affiliates. | ' | ' | ' | ' | ' | ' | ' | ' |
Deconsolidation gain | ' | ' | ' | ' | $18,500,000 | ' | ' | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies, purchase commitments (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
BOSS Installation | ' |
Long Term Purchase Commitment [Line Items] | ' |
Purchase commitment agreement description | 'As previously disclosed, on August 17, 2010, U.S. Cellular and Amdocs Software Systems Limited (“Amdocs”) entered into a Software License and Maintenance Agreement (“SLMA”) and a Master Service Agreement (“MSA”) (collectively, the “Amdocs Agreements”) to develop a Billing and Operational Support System (“B/OSS”). In July 2013, U.S. Cellular implemented B/OSS, pursuant to an updated Statement of Work dated June 29, 2012. Total payments to Amdocs related to this implementation are estimated to be approximately $183.5 million (subject to certain potential adjustments) over the period from commencement of the SLMA through the first half of 2014. As of September 30, 2013, $133.3 million had been paid to Amdocs. |
Purchase commitment required payments | $183,500,000 |
Purchase commitment required payments made | 133,300,000 |
Apple Products | ' |
Long Term Purchase Commitment [Line Items] | ' |
Purchase commitment agreement description | 'In March 2013, U.S. Cellular entered into an agreement with Apple to purchase an estimated $1.2 billion of Apple iPhone products over a three-year period beginning in November 2013. |
Purchase commitment period | 'three-year period beginning in November 2013 |
Purchase commitment estimated payments | $1,200,000,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies, legal accruals and unasserted claims (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Loss Contingency Estimate | ' | ' |
Accrual for legal proceedings and unasserted claims | $1.70 | $1.70 |
Variable_Interest_Entities_VIE1
Variable Interest Entities VIEs (Details) (USD $) | 9 Months Ended | |||
Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | $409,579,000 | $183,101,000 | $378,358,000 | $424,155,000 |
Other current assets | ' | 19,051,000 | 16,745,000 | ' |
Licenses | 1,531,873,000 | 1,397,888,000 | 1,456,794,000 | 1,470,769,000 |
Property, plant and equipment, net | ' | 2,874,593,000 | 3,022,588,000 | ' |
Other assets and deferred charges | ' | 95,709,000 | 78,148,000 | ' |
Liabilities | ' | ' | ' | ' |
Current liabilities | ' | 852,380,000 | 754,999,000 | ' |
Capital contributions and advances | 5,000,000 | ' | ' | ' |
Variable Interest Entities (VIE's) | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | ' | 2,669,000 | 5,849,000 | ' |
Other current assets | ' | 1,190,000 | 120,000 | ' |
Licenses | ' | 308,091,000 | 308,091,000 | ' |
Property, plant and equipment, net | ' | 17,535,000 | 16,443,000 | ' |
Other assets and deferred charges | ' | 541,000 | 887,000 | ' |
Total assets | ' | 330,026,000 | 331,390,000 | ' |
Liabilities | ' | ' | ' | ' |
Current liabilities | ' | 3,000 | 1,013,000 | ' |
Deferred liabilities and credits | ' | 3,280,000 | 3,024,000 | ' |
Total liabilities | ' | $3,283,000 | $4,037,000 | ' |
Common_Share_Repurchases_Detai
Common Share Repurchases (Details) (USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 |
Share repurchases | ' |
Amount | $18,544 |
Treasury Shares | ' |
Share repurchases | ' |
Amount | 18,544 |
Common Shares | ' |
Share repurchases | ' |
Number of shares acquired | 499,000 |
Average cost per share | $37.19 |
Amount | $18,544 |
Common share repurchase authorization | 'On November 17, 2009, the Board of Directors of U.S. Cellular authorized the repurchase of up to 1,300,000 Common Shares on an annual basis beginning in 2009 and continuing each year thereafter, on a cumulative basis. These purchases will be made pursuant to open market purchases, block purchases, private purchases, or otherwise, depending on market prices and other conditions. This authorization does not have an expiration date. |
Repurchase authorization, additional number of shares | 1,300,000 |
Repurchase expiration | 'does not have an expiration date |
Noncontrolling_Interests_Detai
Noncontrolling Interests (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Redeemable noncontrolling interest | ' |
Termination date range of mandatorily redeemable noncontrolling interests - begin | '2085 |
Termination date range of mandatorily redeemable noncontrolling interests - end | '2107 |
Settlement value of mandatorily redeemable noncontrolling interests | $61.30 |
Carrying value of mandatorily redeemable noncontrolling interests | $17.40 |
Supplemental_Cash_Flows_Detail
Supplemental Cash Flows (Details) (USD $) | 9 Months Ended | |
Share data in Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Supplemental cash flow disclosures | ' | ' |
Series A Common and Common Shares, dividends per share paid | $5.75 | ' |
Series A Common and Common Shares, dividends paid | $482,270,000 | ' |
Dividend payable date | 25-Jun-13 | ' |
Supplemental cash flows, stock based compensation | ' | ' |
Net cash receipts (disbursements) from exercise of stock options and vesting of other stock awards | 2,840,000 | -2,299,000 |
Auction 901 Mobility Funds | ' | ' |
Supplemental cash flow disclosures | ' | ' |
FCC auction date | 27-Sep-12 | ' |
FCC auction amount received | 13,400,000 | ' |
FCC auction number of states won | 10 | ' |
Other assets and deferred charges | Auction 901 Mobility Funds | ' | ' |
Supplemental cash flow disclosures | ' | ' |
FCC auction amount received | 12,100,000 | ' |
Property, plant and equipment, net | Auction 901 Mobility Funds | ' | ' |
Supplemental cash flow disclosures | ' | ' |
FCC auction amount received | 1,300,000 | ' |
Maximum | Auction 901 Mobility Funds | ' | ' |
Supplemental cash flow disclosures | ' | ' |
FCC auction amount | 300,000,000 | ' |
FCC auction amount received | 40,100,000 | ' |
Common Shares | ' | ' |
Supplemental cash flows, stock based compensation | ' | ' |
Shares withheld | 524 | 78 |
Aggregate value of shares withheld | 21,387,000 | 3,076,000 |
Cash receipts upon exercise of stock options | 7,223,000 | 793,000 |
Cash disbursements for payments of taxes | -4,383,000 | -3,092,000 |
Net cash receipts (disbursements) from exercise of stock options and vesting of other stock awards | $2,840,000 | ($2,299,000) |