US Cellular 2012 Annual Report Download - page 40

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United States Cellular Corporation
Consolidated Statement of Operations
Year Ended December 31, 2012 2011 2010
(Dollars and shares in thousands, except per share amounts)
Operating revenues
Service ........................................ $4,098,856 $4,053,797 $3,913,001
Equipment sales .................................. 353,228 289,549 264,680
Total operating revenues .......................... 4,452,084 4,343,346 4,177,681
Operating expenses
System operations (excluding Depreciation, amortization and
accretion reported below) ......................... 946,805 929,379 854,931
Cost of equipment sold ............................. 935,947 791,802 756,290
Selling, general and administrative (including charges from
affiliates of $104.3 million, $104.1 million and $107.5 million
in 2012, 2011 and 2010) .......................... 1,764,933 1,769,701 1,783,315
Depreciation, amortization and accretion ................ 608,633 573,557 570,955
(Gain) loss on asset disposals and exchanges, net ......... 18,088 (1,873) 10,717
(Gain) loss on sale of business and other exit costs, net ..... 21,022 — —
Total operating expenses .......................... 4,295,428 4,062,566 3,976,208
Operating income ................................. 156,656 280,780 201,473
Investment and other income (expense)
Equity in earnings of unconsolidated entities ............. 90,364 83,566 97,318
Interest and dividend income ........................ 3,644 3,395 3,808
Gain (loss) on investment ........................... (3,718) 11,373 —
Interest expense .................................. (42,393) (65,614) (61,555)
Other, net ...................................... 500 (678) 72
Total investment and other income (expense) ........... 48,397 32,042 39,643
Income before income taxes ......................... 205,053 312,822 241,116
Income tax expense ............................... 63,977 114,078 81,958
Net income ...................................... 141,076 198,744 159,158
Less: Net income attributable to noncontrolling interests, net
of tax........................................ (30,070) (23,703) (23,084)
Net income attributable to U.S. Cellular shareholders ...... $ 111,006 $ 175,041 $ 136,074
Basic weighted average shares outstanding .............. 84,645 84,877 86,128
Basic earnings per share attributable to U.S. Cellular
shareholders .................................... $ 1.31 $ 2.06 $ 1.58
Diluted weighted average shares outstanding ............ 85,067 85,335 86,518
Diluted earnings per share attributable to U.S. Cellular
shareholders .................................... $ 1.30 $ 2.05 $ 1.57
The accompanying notes are an integral part of these consolidated financial statements.
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