US Cellular 2011 Annual Report Download - page 37

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United States Cellular Corporation
Consolidated Statement of Operations
Year Ended December 31, 2011 2010 2009
(Dollars and shares in thousands, except per share amounts)
Operating revenues
Service ........................................ $4,053,797 $3,913,001 $3,927,128
Equipment sales .................................. 289,549 264,680 286,752
Total operating revenues .......................... 4,343,346 4,177,681 4,213,880
Operating expenses
System operations (excluding Depreciation, amortization and
accretion reported below) ......................... 929,379 854,931 802,854
Cost of equipment sold ............................. 782,300 742,981 742,993
Selling, general and administrative (including charges from
affiliates of $104.1 million, $107.5 million and $114.8 million
in 2011, 2010 and 2009) .......................... 1,779,203 1,796,624 1,747,404
Depreciation, amortization and accretion ................ 573,557 570,955 564,935
Loss on impairment of intangible assets ................. — — 14,000
(Gain) loss on asset disposals and exchanges, net ......... (1,873) 10,717 16,169
Total operating expenses .......................... 4,062,566 3,976,208 3,888,355
Operating income ................................. 280,780 201,473 325,525
Investment and other income (expense)
Equity in earnings of unconsolidated entities ............. 83,566 97,318 96,800
Interest and dividend income ........................ 3,395 3,808 3,597
Gain on investment ............................... 11,373 — —
Interest expense .................................. (65,614) (61,555) (78,199)
Other, net ...................................... (678) 72 1,442
Total investment and other income (expense) ........... 32,042 39,643 23,640
Income before income taxes ......................... 312,822 241,116 349,165
Income tax expense ............................... 114,078 81,958 117,850
Net income ...................................... 198,744 159,158 231,315
Less: Net income attributable to noncontrolling interests, net
of tax........................................ (23,703) (23,084) (21,768)
Net income attributable to U.S. Cellular shareholders ...... $ 175,041 $ 136,074 $ 209,547
Basic weighted average shares outstanding .............. 84,877 86,128 86,946
Basic earnings per share attributable to U.S. Cellular
shareholders .................................... $ 2.06 $ 1.58 $ 2.41
Diluted weighted average shares outstanding ............ 85,335 86,518 87,168
Diluted earnings per share attributable to U.S. Cellular
shareholders .................................... $ 2.05 $ 1.57 $ 2.40
The accompanying notes are an integral part of these consolidated financial statements.
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