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UNITED STATES CELLULAR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 5 INCOME TAXES (Continued)
Income tax expense is summarized as follows:
Year Ended December 31, 2011 2010 2009
(Dollars in thousands)
Current
Federal ................................ $(90,235) $ 19,290 $ 69,942
State ................................. 1,049 (11,059) 648
Deferred
Federal ................................ 187,581 57,759 41,884
State ................................. 15,683 15,968 5,376
$114,078 $ 81,958 $117,850
A reconciliation of U.S. Cellular’s income tax expense computed at the statutory rate to the reported
income tax expense, and the statutory federal income tax expense rate to U.S. Cellular’s effective income
tax expense rate is as follows:
Year Ended December 31, 2011 2010 2009
Amount Rate Amount Rate Amount Rate
(Dollars in millions)
Statutory federal income tax expense and rate ........... $109.5 35.0% $84.4 35.0% $122.2 35.0%
State income taxes, net of federal benefit(1) ............. 5.2 1.7 5.0 2.1 0.1 0.1
Effect of noncontrolling interests ..................... (4.9) (1.6) (4.6) (1.9) (4.8) (1.4)
Correction of deferred taxes(2) ...................... 5.4 1.7 — — — —
Other differences, net ............................. (1.1) (0.3) (2.8) (1.2) 0.4 0.1
Effective income tax expense and rate ................. $114.1 36.5% $82.0 34.0% $117.9 33.8%
(1) Net state income taxes include changes in the valuation allowance. These changes primarily relate to the
ability to utilize state net operating losses as a result of state income tax law changes.
(2) U.S. Cellular recorded an immaterial adjustment to correct deferred tax balances related to a difference in
the tax basis of certain partnership investments for errors occurring prior to 2009.
U.S. Cellular’s current Net deferred income tax asset totaled $31.9 million and $26.8 million at
December 31, 2011 and 2010, respectively, and primarily represents the deferred tax effects of accrued
liabilities and the allowance for doubtful accounts on customer receivables.
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