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United States Cellular Corporation
CONSOLIDATED QUARTERLY INFORMATION (UNAUDITED)
Quarter Ended
(Amounts in thousands, except per share amounts) March 31 June 30 September 30 December 31
2010
Operating revenues .......................... $1,023,857 $1,029,893 $1,060,781 $1,063,150
Operating income (1) ......................... 77,624 63,504 59,833 (5,587)
Net income ................................ 53,088 45,972 43,278 13,070
Net income attributable to U.S. Cellular shareholders .... $ 47,369 $ 40,753 $ 37,358 $ 6,844
Basic weighted average shares outstanding .......... 86,576 86,425 85,992 85,668
Diluted weighted average shares outstanding ......... 86,978 86,787 86,428 86,190
Basic earnings per share attributable to U.S. Cellular
shareholders .............................. $ 0.55 $ 0.47 $ 0.43 $ 0.08
Diluted earnings per share attributable to U.S. Cellular
shareholders .............................. $ 0.54 $ 0.47 $ 0.43 $ 0.08
Stock price (2)
U.S. Cellular Common Shares
High .................................. $ 43.11 $ 43.66 $ 48.00 $ 50.24
Low .................................. 33.84 38.17 40.68 45.01
Close ................................. $ 41.38 $ 41.15 $ 45.97 $ 49.94
Quarter Ended
(Amounts in thousands, except per share amounts) March 31 June 30 September 30 December 31
2009
Operating revenues .......................... $1,054,344 $1,042,143 $1,057,295 $1,060,098
Loss on impairment of intangible assets (3) .......... — — — 14,000
Operating income (3)(4) ....................... 118,369 138,838 59,548 4,191
Net income ................................ 90,067 87,737 39,938 10,758
Net income attributable to U.S. Cellular shareholders .... $ 84,059 $ 81,768 $ 34,332 $ 6,573
Basic weighted average shares outstanding .......... 87,196 86,992 86,848 86,719
Diluted weighted average shares outstanding ......... 87,446 87,177 87,128 87,087
Basic earnings per share attributable to U.S. Cellular
shareholders .............................. $ 0.96 $ 0.94 $ 0.40 $ 0.08
Diluted earnings per share attributable to U.S. Cellular
shareholders .............................. $ 0.96 $ 0.94 $ 0.39 $ 0.08
Stock price (2)
U.S. Cellular Common Shares
High .................................. $ 47.95 $ 44.74 $ 40.87 $ 42.80
Low .................................. 29.62 30.00 33.86 35.67
Close ................................. $ 33.34 $ 38.45 $ 39.07 $ 42.41
U.S. Cellular has not paid any cash dividends and currently intends to retain all earnings for use in U.S. Cellular’s
business.
(1) During the quarter ended December 31, 2010, U.S. Cellular recorded adjustments to reduce its liability for
transactional taxes in the amount of $5.8 million. Of this amount, $2.7 million and $3.1 million reduced Selling,
general and administrative expense and Interest expense, respectively, in the quarter ended December 31,
2010. These transactional taxes related to periods from 2002 through the first quarter of 2010. This adjustment
reflects the difference between U.S. Cellular’s estimate of its liability for transactional taxes and interest and the
actual amounts due and settled with the taxing authorities of taxes and interest.
(2) The high, low and closing sales prices as reported by the New York Stock Exchange (‘‘NYSE’’).
(3) During the fourth quarter of 2009, U.S. Cellular recognized a Loss on impairment of intangible assets related to
licenses of $14.0 million. See Note 8—Licenses and Goodwill in the Notes to Consolidated Financial Statements
for details of this impairment.
(4) During the quarter ended December 31, 2009, U.S. Cellular recorded adjustments that reduced System
operations expense and increased Selling, general and administrative expense by $9.7 million and
$11.6 million, respectively, to reflect revised estimates related to customer usage charges and bad debts
expense. The net of these adjustments was an increase to Operating expenses of $1.9 million during the
quarter ended December 31, 2009.
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