US Cellular 2010 Annual Report Download - page 37

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United States Cellular Corporation
Consolidated Statement of Operations
Year Ended December 31, 2010 2009 2008
(Dollars and shares in thousands, except per share amounts)
Operating revenues
Service ........................................ $3,913,001 $3,927,128 $3,939,695
Equipment sales .................................. 264,680 286,752 302,859
Total operating revenues .......................... 4,177,681 4,213,880 4,242,554
Operating expenses
System operations (excluding Depreciation, amortization and
accretion reported below) ......................... 854,931 802,854 783,066
Cost of equipment sold ............................. 742,981 742,993 743,406
Selling, general and administrative (including charges from
affiliates of $107.5 million, $114.8 million and $113.3 million
in 2010, 2009 and 2008) .......................... 1,796,624 1,747,404 1,706,585
Depreciation, amortization and accretion ................ 577,054 569,514 576,821
Loss on impairment of intangible assets ................. — 14,000 386,653
Loss on asset disposals, net ......................... 10,717 16,169 17,413
Total operating expenses .......................... 3,982,307 3,892,934 4,213,944
Operating income ................................. 195,374 320,946 28,610
Investment and other income (expense)
Equity in earnings of unconsolidated entities ............. 97,318 96,800 91,981
Interest and dividend income ........................ 3,808 3,597 5,730
Gain on disposition of investments .................... — — 16,628
Interest expense .................................. (61,555) (78,199) (78,535)
Other, net ...................................... 72 1,442 1,269
Total investment and other income (expense) ........... 39,643 23,640 37,073
Income before income taxes ......................... 235,017 344,586 65,683
Income tax expense ............................... 79,609 116,086 7,460
Net income ...................................... 155,408 228,500 58,223
Less: Net income attributable to noncontrolling interests, net
of tax........................................ (23,084) (21,768) (25,083)
Net income attributable to U.S. Cellular shareholders ...... $ 132,324 $ 206,732 $ 33,140
Basic weighted average shares outstanding .............. 86,128 86,946 87,457
Basic earnings per share attributable to U.S. Cellular
shareholders .................................... $ 1.54 $ 2.38 $ 0.38
Diluted weighted average shares outstanding ............ 86,518 87,168 87,754
Diluted earnings per share attributable to U.S. Cellular
shareholders .................................... $ 1.53 $ 2.37 $ 0.38
The accompanying notes are an integral part of these consolidated financial statements.
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