US Cellular 2013 Annual Report Download - page 38

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United States Cellular Corporation
Consolidated Statement of Operations
Year Ended December 31, 2013 2012 2011
(Dollars and shares in thousands, except per share amounts)
Operating revenues
Service ........................................ $3,594,773 $4,098,856 $4,053,797
Equipment sales .................................. 324,063 353,228 289,549
Total operating revenues .......................... 3,918,836 4,452,084 4,343,346
Operating expenses
System operations (excluding Depreciation, amortization and
accretion reported below) ......................... 763,435 946,805 929,379
Cost of equipment sold ............................. 999,000 935,947 791,802
Selling, general and administrative (including charges from
affiliates of $99.2 million, $104.3 million and $104.1 million
in 2013, 2012 and 2011) .......................... 1,677,395 1,764,933 1,769,701
Depreciation, amortization and accretion ................ 803,781 608,633 573,557
(Gain) loss on asset disposals, net .................... 30,606 18,088 9,889
(Gain) loss on sale of business and other exit costs, net ..... (246,767) 21,022 —
(Gain) loss on license sales and exchanges .............. (255,479) — (11,762)
Total operating expenses .......................... 3,771,971 4,295,428 4,062,566
Operating income ................................. 146,865 156,656 280,780
Investment and other income (expense)
Equity in earnings of unconsolidated entities ............. 131,949 90,364 83,566
Interest and dividend income ........................ 3,961 3,644 3,395
Gain (loss) on investments .......................... 18,556 (3,718) 11,373
Interest expense .................................. (43,963) (42,393) (65,614)
Other, net ...................................... 288 500 (678)
Total investment and other income (expense) ........... 110,791 48,397 32,042
Income before income taxes ......................... 257,656 205,053 312,822
Income tax expense ............................... 113,134 63,977 114,078
Net income ...................................... 144,522 141,076 198,744
Less: Net income attributable to noncontrolling interests, net
of tax ........................................ 4,484 30,070 23,703
Net income attributable to U.S. Cellular shareholders ...... $ 140,038 $ 111,006 $ 175,041
Basic weighted average shares outstanding .............. 83,968 84,645 84,877
Basic earnings per share attributable to U.S. Cellular
shareholders .................................... $ 1.67 $ 1.31 $ 2.06
Diluted weighted average shares outstanding ............ 84,730 85,230 85,448
Diluted earnings per share attributable to U.S. Cellular
shareholders .................................... $ 1.65 $ 1.30 $ 2.05
Special dividend per share to U.S. Cellular shareholders .... $ 5.75 $ — $ —
The accompanying notes are an integral part of these consolidated financial statements.
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