US Cellular 2010 Annual Report Download - page 38

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United States Cellular Corporation
Consolidated Statement of Cash Flows
Year Ended December 31, 2010 2009 2008
(Dollars in thousands)
Cash flows from operating activities
Net income ............................................. $155,408 $ 228,500 $ 58,223
Add (deduct) adjustments to reconcile net income to net cash flows from
operating activities
Depreciation, amortization and accretion ...................... 577,054 569,514 576,821
Bad debts expense .................................... 76,292 107,991 73,157
Stock-based compensation expense ......................... 18,044 16,362 15,122
Deferred income taxes, net ............................... 71,378 45,496 (78,934)
Equity in earnings of unconsolidated entities ................... (97,318) (96,800) (91,981)
Distributions from unconsolidated entities ..................... 100,359 91,105 91,845
Gain on disposition of investments .......................... — — (16,628)
Loss on impairment of intangible assets ...................... — 14,000 386,653
Loss on asset disposals, net .............................. 10,717 16,169 17,413
Noncash interest expense ................................ 2,540 2,442 1,772
Excess tax benefit from stock awards ........................ (114) (24) (1,151)
Other operating activities ................................. (2,369) — 210
Changes in assets and liabilities from operations
Accounts receivable .................................... (75,252) (114,646) (69,017)
Inventory ........................................... 40,277 (35,992) (15,563)
Accounts payable—trade ................................ (14,660) 47,503 (4,572)
Accounts payable—affiliate ............................... (3,940) 5,119 1,093
Customer deposits and deferred revenues ..................... 6,180 (9,921) 6,713
Accrued taxes ........................................ (70,057) 48,218 (28,197)
Accrued interest ...................................... 204 (2,121) —
Other assets and liabilities ................................ 79,546 (51,107) (202)
874,289 881,808 922,777
Cash flows from investing activities
Additions to property, plant and equipment ....................... (583,134) (546,758) (585,590)
Proceeds from disposition of investments ........................ — — 16,690
Cash received from divestitures ............................... — 50 6,838
Cash paid for acquisitions and licenses .......................... (17,101) (16,027) (341,694)
Cash paid for investments ................................... (250,250) (450) —
Cash received for investments ................................ 60,330 120 —
Other investing activities .................................... (953) 1,614 (271)
(791,108) (561,451) (904,027)
Cash flows from financing activities
Borrowings from revolving credit facilities ........................ — — 100,000
Repayment of revolving credit facilities .......................... — — (100,000)
Repayment of long-term debt ................................ (316) (140,236) (3,039)
Common shares reissued for benefit plans, net of tax payments ......... 509 (82) (2,288)
Common shares repurchased ................................ (52,827) (33,585) (28,366)
Excess tax benefit from stock awards ........................... 114 24 1,151
Payment of debt issuance costs ............................... (2,229) (4,421) —
Distributions to noncontrolling interests .......................... (19,631) (18,426) (19,676)
Payments to acquire additional interest in subsidiaries ................ (8,786) (285) —
Other financing activities .................................... — 69 (69)
(83,166) (196,942) (52,287)
Net increase (decrease) in cash and cash equivalents ............... 15 123,415 (33,537)
Cash and cash equivalents
Beginning of period ....................................... 294,411 170,996 204,533
End of period ........................................... $294,426 $ 294,411 $ 170,996
The accompanying notes are an integral part of these consolidated financial statements.
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