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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
2011
Operating revenues .......................... $1,057,092 $1,076,182 $1,110,439 $1,099,633
Operating income (1)(4) ....................... 58,748 104,096 101,620 16,316
Gain (loss) on investment ...................... — 13,373 — (2,000)
Net income (4) .............................. 40,430 80,932 69,507 7,875
Net income attributable to U.S. Cellular shareholders .... $ 35,161 $ 74,939 $ 62,140 $ 2,801
Basic weighted average shares outstanding .......... 85,484 84,930 84,547 84,559
Diluted weighted average shares outstanding ......... 86,101 85,397 84,940 85,005
Basic earnings per share attributable to U.S. Cellular
shareholders .............................. $ 0.41 $ 0.88 $ 0.73 $ 0.03
Diluted earnings per share attributable to U.S. Cellular
shareholders .............................. $ 0.41 $ 0.88 $ 0.73 $ 0.03
Stock price (2)
U.S. Cellular Common Shares
High .................................. $ 52.10 $ 52.41 $ 49.75 $ 44.09
Low .................................. 44.21 46.25 35.58 36.84
Close ................................. $ 51.49 $ 48.42 $ 39.65 $ 43.63
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)(3) ....................... 79,148 65,028 61,359 (4,062)
Net income (3) .............................. 54,025 46,909 44,216 14,008
Net income attributable to U.S. Cellular shareholders .... $ 48,306 $ 41,690 $ 38,296 $ 7,782
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 .............................. $ 0.56 $ 0.48 $ 0.45 $ 0.09
Diluted earnings per share attributable to U.S. Cellular
shareholders .............................. $ 0.56 $ 0.48 $ 0.44 $ 0.09
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
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 September 30, 2011, U.S. Cellular recorded adjustments for asset retirement
obligations and asset retirement costs. These adjustments relate to periods from 2006 through second quarter
of 2011. These adjustments corrected an overstatement of Total operating expenses, Property, plant and
equipment, net and Other deferred liabilities and credits in first and second quarter 2011 and all 2010 interim
financial statements.
(2) The high, low and closing sales prices as reported by the New York Stock Exchange (‘‘NYSE’’).
(3) 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 expenses, 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 a change in 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.
(4) During the quarter ended December 31, 2011, U.S. Cellular recorded an immaterial adjustment to correct its
liabilities and prepaid expense related to property taxes for errors occurring primarily prior to 2009. This
adjustment reduced Selling, general and administrative expenses by $5.4 million in the quarter. U.S. Cellular
also recorded an immaterial adjustment to correct its deferred tax balances related to a difference in the tax
basis in certain partnerships for errors occurring prior to 2009. This adjustment increased Income tax expense
by $6.1 million in the quarter. U.S. Cellular also recorded other immaterial adjustments to correct errors in prior
periods which, together with the foregoing adjustments, reduced Net income attributable to U.S. Cellular
shareholders by a net of $6.4 million. The correction of such errors in the fourth quarter of 2011 did not have a
material effect on any prior periods, the full year ended December 31, 2011, or the trend in earnings.
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