Acquisitions Divestitures and Exchanges (Tables)

12 Months Ended

Dec. 31, 2013

TDS' acquisitions in 2013 and 2012 and the allocation of the purchase price for these acquisitions were as follows:

					Allocation of Purchase Price
			Purchase Price (1)		Goodwill (2)		Licenses		Franchise Rights		Intangible Assets Subject to Amortization (3)		Net Tangible Assets/(Liabilities)
(Dollars in thousands)
2013
U.S. Cellular licenses			$	16,540	$	-	$	16,540	$	-	$	-	$	-
TDS Telecom cable business				264,069		61,712		-		123,668		11,542		67,147
TDS Telecom HMS business				43,557		15,203		-		-		17,183		11,171
	Total		$	324,166	$	76,915	$	16,540	$	123,668	$	28,725	$	78,318

2012
U.S. Cellular licenses			$	122,690	$	-	$	122,690	$	-	$	-	$	-
TDS Telecom HMS business				46,126		20,364		-		-		20,300		5,462
	Total		$	168,816	$	20,364	$	122,690	$	-	$	20,300	$	5,462

(1)		Cash amounts paid for acquisitions may differ from the purchase price due to cash acquired in the transactions and the timing of cash payments related to the respective transactions.

(2)		The entire amount of Goodwill acquired in 2013 and 2012 was amortizable for income tax purposes.

(3)		At the date of acquisition, the weighted average amortization period for Intangible Assets Subject to Amortization acquired was as follows: 2013: 2.9 years for TDS Telecom cable business and 10 years for TDS Telecom HMS business; 2012: 8.1 years for TDS Telecom HMS business.


(Dollars in thousands)			Expected Period of Recognition	Projected Range				Cumulative Amount Recognized as of December 31, 2013		Actual Amount Recognized Year Ended December 31, 2013		Actual Amount Recognized Three Months Ended December 31, 2013		Actual Amount Recognized Three Months and Year Ended December 31, 2012
(Gain) loss on sale of business and other exit costs, net
	Proceeds from Sprint
		Purchase price	2013	$	(480,000)	$	(480,000)	$	(480,000)	$	(480,000)	$	-	$	-
		Sprint Cost Reimbursement	2013-2014		(120,000)		(175,000)		(47,641)		(47,641)		(43,420)		-
	Net assets transferred		2013		160,073		160,073		160,073		160,073		-		-
	Non-cash charges for the write-off and write-down of property under construction and related assets		2012-2014		10,000		14,000		10,675		3		(51)		10,672
	Employee related costs including severance, retention and outplacement		2012-2014		12,000		18,000		14,262		1,653		(809)		12,609
	Contract termination costs		2012-2014		110,000		160,000		59,584		59,525		40,744		59
	Transaction costs		2012-2014		5,000		6,000		5,565		4,428		347		1,137
		Total (Gain) loss on sale of business and other exit costs, net		$	(302,927)	$	(296,927)	$	(277,482)	$	(301,959)	$	(3,189)	$	24,477

Depreciation, amortization and accretion expense
	Incremental depreciation, amortization and accretion, net of salvage values		2012-2014		200,000		225,000		198,571		178,513		44,513		20,058
(Increase) decrease in Operating income				$	(102,927)	$	(71,927)	$	(78,911)	$	(123,446)	$	41,324	$	44,535

As a result of the transaction, TDS recognized the following amounts in the Consolidated Balance Sheet:

				Year Ended December 31, 2013
(Dollars in thousands)		Balance December 31, 2012		Costs Incurred		Cash Settlements (1)		Adjustments (2)		Balance December 31, 2013
Accrued compensation
	Employee related costs including severance, retention, outplacement	$	12,305	$	6,853	$	(11,905)	$	(5,200)	$	2,053
Other current liabilities
	Contract termination costs	$	30	$	22,675	$	(8,713)	$	-	$	13,992
Other deferred liabilities and credits
	Contract termination costs	$	-	$	34,283	$	(3,434)	$	-	$	30,849

				Year Ended December 31, 2012
(Dollars in thousands)		Balance November 6, 2012		Costs Incurred		Cash Settlements (1)		Adjustments (2)		Balance December 31, 2012
Accrued compensation
	Employee related costs including severance, retention, outplacement	$	-	$	12,609	$	(304)	$	-	$	12,305
Other current liabilities
	Contract termination costs	$	-	$	59	$	(29)	$	-	$	30

(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.

At December 31, 2013 and 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)
2013
Divestiture of Spectrum Licenses			$	-	$	16,027	$	-	$	-	$	-	$	16,027	$	-

2012
Divestiture Transaction			$	-	$	140,599	$	19,474	$	-	$	-	$	160,073	$	19,594
Bolingbrook Customer Care Center (3)				-		-		-		4,274		(1,105)		3,169		-
	Total		$	-	$	140,599	$	19,474	$	4,274	$	(1,105)	$	163,242	$	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)		Effective January 1, 2013, U.S. Cellular transferred its Bolingbrook Customer Care Center operations to an existing third party vendor.