US Cellular 2009 Annual Report Download - page 39

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United States Cellular Corporation
Consolidated Statement of Operations
Year Ended December 31, 2009 2008 2007
(Dollars and shares in thousands, except per share amounts)
Operating revenues
Service ........................................ $3,927,859 $3,940,326 $3,679,237
Equipment sales .................................. 286,752 302,859 267,027
Total operating revenues .......................... 4,214,611 4,243,185 3,946,264
Operating expenses
System operations (excluding Depreciation, amortization and
accretion reported below) ......................... 796,617 784,057 717,075
Cost of equipment sold ............................. 742,993 743,406 637,297
Selling, general and administrative (including charges from
affiliates of $114.8 million, $113.3 million and $121.8 million
in 2009, 2008 and 2007) .......................... 1,748,760 1,701,050 1,558,568
Depreciation, amortization and accretion ................ 570,658 576,931 578,186
Loss on impairment of intangible assets ................. 14,000 386,653 24,923
Loss on asset disposals, net ......................... 15,176 23,378 34,016
Total operating expenses .......................... 3,888,204 4,215,475 3,550,065
Operating income ................................. 326,407 27,710 396,199
Investment and other income (expense)
Equity in earnings of unconsolidated entities ............. 96,800 91,981 90,033
Interest and dividend income ........................ 3,597 5,730 13,059
Fair value adjustment of derivative instruments ............ — — (5,388)
Gain on disposition of investments .................... — 16,628 137,987
Interest expense .................................. (76,367) (77,190) (84,679)
Other, net ...................................... 1,442 1,269 (710)
Total investment and other income (expense) ........... 25,472 38,418 150,302
Income before income taxes ......................... 351,879 66,128 546,501
Income tax expense ................................. 114,103 8,055 216,711
Net income ...................................... 237,776 58,073 329,790
Less: Net income attributable to noncontrolling interests, net
of tax........................................ (21,768) (25,083) (15,056)
Net income attributable to U.S. Cellular shareholders ...... $ 216,008 $ 32,990 $ 314,734
Basic weighted average shares outstanding .............. 86,946 87,457 87,730
Basic earnings per share attributable to U.S. Cellular
shareholders .................................... $ 2.48 $ 0.38 $ 3.59
Diluted weighted average shares outstanding ............ 87,168 87,754 88,481
Diluted earnings per share attributable to U.S. Cellular
shareholders .................................... $ 2.48 $ 0.38 $ 3.56
The accompanying notes are an integral part of these consolidated financial statements.
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