CHICAGO-U.S. Cellular Corporation Friday said that it has filed with the U.S. Securities and Exchange Commission its previously announced restatements. The company restated financial information for 2002 and 2003, including interim quarterly financial information for those years.
The restatements result in certain changes to the estimated restatements previously announced April 19, 2004.
The company also filed its quarterly report for the quarter ended March 31, 2004. The Form 10-Q includes certain changes to the balance sheets as of March 31, 2004, and December 31, 2003, which were reported by the company April 28, 2004. These changes were the result of the finalization of the restatement calculations and their impact on year-end 2003 balance sheet amounts, the company said.
These changes decreased wireless license costs by approximately $4.5 million, decreased net deferred income tax liability by approximately $1.8 million and decreased retained earnings by approximately $2.7 million from the previously reported amounts. The balance sheet changes had no impact on revenues, cash or cash flow and were the result of a final review of the restatements by the company and its independent auditors.
The restatements involve changing the classification of certain goodwill to licenses as of Jan. 1, 2002, and recording of the resulting non-cash deferred tax effects. These adjustments resulted in higher license values, which required the company to reperform its impairment tests for 2002 and 2003 and resulted in a non-cash expense recorded as a cumulative effect of an accounting change in 2002 and a non-cash impairment charge to licenses in 2003.
In addition, U.S. Cellular said it will file a debt shelf registration statement to permit U.S. Cellular to issue, from time to time, up to $500 million of various senior debt securities.
The proceeds from any sale of debt securities offered under the proposal may be used by U.S. Cellular for general corporate purposes to include the replacement of long-term debt. Proceeds may also be used in connection with acquisition, construction and development programs and the reduction of any short-term debt incurred with such programs, or for working capital or to provide additional investments in U.S. Cellular subsidiaries.
The shelf registration statement does not register the issuance of U.S. Cellular equity securities or debt convertible into U.S. Cellular shares.
