US Cellular 2009 Annual Report Download - page 19

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The impact of impairment losses related to licenses was as follows:
(Dollars in millions, except per share amounts) 2009 2008 2007
Net income attributable to U.S. Cellular shareholders, excluding licenses
impairments(1) ........................................... $224.7 $ 269.3 $ 329.2
Loss on impairment of intangible assets related to licenses(2) ........... (14.0) (386.7) (23.0)
Income tax benefit and noncontrolling interest impact of licenses
impairments(1) ........................................... 5.3 150.4 8.5
Impact of licenses impairments on Net income attributable to U.S. Cellular
shareholders(1) ........................................... (8.7) (236.3) (14.5)
Net income attributable to U.S. Cellular shareholders ................. $216.0 $ 33.0 $ 314.7
Diluted earnings per share attributable to U.S. Cellular shareholders,
excluding licenses impairments(1) ............................. $ 2.58 $ 3.07 $ 3.72
Impact of licenses impairments on Diluted earnings per share attributable to
U.S. Cellular shareholders(1) ................................. (0.10) (2.69) (0.16)
Diluted earnings per share attributable to U.S. Cellular shareholders ...... $ 2.48 $ 0.38 $ 3.56
(1) These amounts are non-GAAP financial measures. The purpose of presenting these measures is to
provide information on the impact of losses on impairment related to licenses on results of
operations. Such impairments are discrete, significant amounts that impact the comparability of the
results of operations, and U.S. Cellular believes it is useful to disclose these impacts. The income tax
and noncontrolling interest impact is calculated by allocating the losses on impairment to the
respective consolidated subsidiaries, and applying the income tax rate and noncontrolling interest
percentages applicable to these respective subsidiaries.
(2) Loss on impairment of intangible assets on the Consolidated Statement of Operations for 2007 also
included a $1.9 million loss on impairment related to customer lists.
See the section below entitled, ‘‘Application of Critical Accounting Policies and Estimates—Goodwill and
Licenses’’ for a further discussion of the 2009 and 2008 licenses impairments.
Loss on asset disposals, net
These amounts represent charges related to disposals of assets, trade-ins of older assets for
replacement assets and other retirements of assets from service. In 2007, U.S. Cellular conducted a
physical inventory of its significant cell site and switching assets. As a result, Loss on asset disposals,
net included a charge of $14.6 million in 2007 to reflect the results of the physical inventory and related
valuation and reconciliation.
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