Acquisitions Divestitures and Exchanges (Tables)

6 Months Ended

Jun. 30, 2014

Divestiture Financial Impacts

Business divestiture financial impacts

(Dollars in thousands)			Expected Period of Recognition		Projected Range				Cumulative Amount Recognized as of June 30, 2014		Actual Amount Recognized Six Months Ended June 30, 2014		Actual Amount Recognized Six Months Ended June 30, 2013		Actual Amount Recognized Three Months Ended June 30, 2014		Actual Amount Recognized Three Months Ended June 30, 2013
(Gain) loss on sale of business and other exit costs, net
	Proceeds from Sprint
		Purchase price		2013	$	(480,000)	$	(480,000)	$	(480,000)	$	-	$	(480,000)	$	-	$	(480,000)
		Sprint Cost Reimbursement		2013-2015		(120,000)		(175,000)		(96,835)		(49,194)		(8)		(4,563)		(8)
	Net assets transferred			2013		160,073		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			2012-2015		10,000		15,000		11,013		338		81		(5)		(141)
	Employee related costs including severance, retention and outplacement			2012-2014		13,000		16,000		14,129		(133)		3,103		(71)		53
	Contract termination costs			2012-2015		90,000		120,000		90,417		30,833		16,605		(6,254)		13,705
	Transaction costs			2012-2014		5,000		7,000		6,027		462		3,719		253		2,801
		Total (Gain) loss on sale of business and other exit costs, net			$	(321,927)	$	(336,927)	$	(295,176)	$	(17,694)	$	(296,427)	$	(10,640)	$	(303,517)
Depreciation, amortization and accretion expense
	Incremental depreciation, amortization and accretion, net of salvage values			2012-2014		211,656		211,656		211,656		13,085		88,324		-		50,278
(Increase) decrease in Operating income					$	(110,271)	$	(125,271)	$	(83,520)	$	(4,609)	$	(208,103)	$	(10,640)	$	(253,239)

		As a result of the transaction, TDS recognized the following amounts in the Consolidated Balance Sheet:
					Six Months Ended June 30, 2014
(Dollars in thousands)			Balance December 31, 2013		Costs Incurred		Cash Settlements (1)		Adjustments (2)		Balance June 30, 2014
Accrued compensation
	Employee related costs including severance, retention, outplacement		$	2,053	$	180	$	(908)	$	(313)	$	1,012
Other current liabilities
	Contract termination costs		$	13,992	$	16,691	$	(12,887)	$	2,091	$	19,887
Other deferred liabilities and credits
	Contract termination costs		$	30,849	$	23,773	$	(2,424)	$	(19,898)	$	32,300
(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.

(Dollars in thousands)			Projected Range				Actual Amount Recognized Three and Six Months Ended June 30, 2014
(Gain) loss on sale of business and other exit costs, net
	Charges for the impairment and decommissioning of various operating assets		$	8,000	$	17,000	$	12,214
	Employee related costs including severance, retention and outplacement			1,000		2,000		500
	Contract termination costs			10,000		15,000		408
	Transaction costs			-		1,000		-
		Total (Gain) loss on sale of business and other exit costs, net	$	19,000	$	35,000	$	13,122

		As a result of the transaction, TDS recognized the following amounts in the Consolidated Balance Sheet:
					Period Ended June 30, 2014
(Dollars in thousands)			Balance May 23, 2014		Costs Incurred		Cash Settlements (1)		Adjustments (2)		Balance June 30, 2014
Accrued compensation
	Employee related costs including severance, retention and outplacement		$	-	$	500	$	-	$	-	$	500
Other current liabilities
	Contract termination costs		$	-	$	408	$	-	$	-	$	408
(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 June 30, 2014 and December 31, 2013, 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		Investments		Total Assets Held for Sale		Liabilities Held for Sale (1)
(Dollars in thousands)
June 30, 2014
Divestiture of Wireline Markets (2)		$	534	$	-	$	2,546	$	2,800	$	100	$	5,980	$	722
December 31, 2013
Divestiture of Spectrum Licenses		$	-	$	16,027	$	-	$	-	$	-	$	16,027	$	-
(1)	Liabilities held for sale primarily consisted of Customer deposits and deferred revenues and Other deferred liabilities and credits.
(2)	On May 2, 2014, TDS Telecom entered into agreements with third parties to sell certain Wireline markets.