Company: UZF
Filing Date: 2025-01-23
Form Type: DEFM14C
Source: 0000821130-25-000013
Chunk: 29

Company: ARRAY DIGITAL INFRASTRUCTURE, INC.
Filing Date: 2025-01-23
Form: DEFM14C
Chunk 29
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 respect to each of the Licenses to be sold. Accordingly, we may recognize gain on the sale of certain Licenses and loss on the sale of certain other Licenses, depending on the amount of consideration allocated to a License as compared with the basis of that License. With certain exceptions, losses can generally be netted against gains. It is also possible that, upon the sale of a License, certain Sellers may be required to recapture amortization deductions that were previously taken with respect to such License. Any such recapture would generally be expected to result in ordinary income (meaning certain losses may not be available to offset).

We expect the AT&T Transactions to result in us recognizing a significant net gain for U.S. federal income tax purposes, meaning we expect to incur a significant U.S. federal income tax liability from the AT&T Transactions. The determination of how much tax we expect to incur is highly complex and is based in part upon facts that will not be known until completion of the AT&T Transactions (including the timing of the sale of any Excluded Licenses or Delayed 3.45 Licenses (as defined below) and the amount of carryforward attributes available to offset the taxable gain). Because we are a member of a consolidated tax group that includes TDS as the common parent, TDS will be the party responsible for remitting any resulting tax to the Internal Revenue Service, but under that certain Tax Allocation Agreement between TDS and the Company, dated as of July 1, 1987 (the

#### “TAA”
), we are required to determine our tax liability as though we were a separate affiliated group and to pay TDS an amount equal to such liability (as so determined). Thus, any carryforward attributes of the TDS consolidated tax group that reduce the consolidated tax group’s liability would not reduce our obligations under the TAA unless those losses were generated by our operations.

Because we expect to incur significant U.S. federal income tax liabilities as a result of the AT&T Transactions, the net proceeds from the AT&T Transactions are expected to be significantly less than the cash received from the Purchaser under the Agreement. Proceeds used to fund federal income tax liabilities will not be available for future acquisitions, distributions to our stockholders or other general corporate purposes.

#### Accounting Treatment of the AT&T Transactions
Under generally accepted accounting principles, upon completion of the AT&T Transactions, we plan to remove the assets sold and add the proceeds from the AT&T Transactions to our consolidated balance sheet, which we anticipate will result in recording