US Cellular 2014 Annual Report Download - page 40

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United States Cellular Corporation
Consolidated Statement of Operations
Year Ended December 31, 2014 2013 2012
(Dollars and shares in thousands, except per share amounts)
Operating revenues
Service ........................................ $3,397,937 $3,594,773 $4,098,856
Equipment sales .................................. 494,810 324,063 353,228
Total operating revenues .......................... 3,892,747 3,918,836 4,452,084
Operating expenses
System operations (excluding Depreciation, amortization and
accretion reported below) ......................... 769,911 763,435 946,805
Cost of equipment sold ............................. 1,192,669 999,000 935,947
Selling, general and administrative (including charges from
affiliates of $91.1 million, $99.2 million and $104.3 million in
2014, 2013 and 2012) ............................ 1,591,914 1,677,395 1,764,933
Depreciation, amortization and accretion ................ 605,997 803,781 608,633
(Gain) loss on asset disposals, net .................... 21,469 30,606 18,088
(Gain) loss on sale of business and other exit costs, net ..... (32,830) (246,767) 21,022
(Gain) loss on license sales and exchanges .............. (112,993) (255,479) —
Total operating expenses .......................... 4,036,137 3,771,971 4,295,428
Operating income (loss) ............................. (143,390) 146,865 156,656
Investment and other income (expense)
Equity in earnings of unconsolidated entities ............. 129,764 131,949 90,364
Interest and dividend income ........................ 12,148 3,961 3,644
Gain (loss) on investments .......................... — 18,556 (3,718)
Interest expense .................................. (57,386) (43,963) (42,393)
Other, net ...................................... 160 288 500
Total investment and other income (expense) ........... 84,686 110,791 48,397
Income (loss) before income taxes .................... (58,704) 257,656 205,053
Income tax expense (benefit) ........................ (11,782) 113,134 63,977
Net income (loss) .................................. (46,922) 144,522 141,076
Less: Net income (loss) attributable to noncontrolling interests,
net of tax ..................................... (4,110) 4,484 30,070
Net income (loss) attributable to U.S. Cellular shareholders . . $ (42,812) $ 140,038 $ 111,006
Basic weighted average shares outstanding .............. 84,213 83,968 84,645
Basic earnings (loss) per share attributable to U.S. Cellular
shareholders .................................... $ (0.51) $ 1.67 $ 1.31
Diluted weighted average shares outstanding ............ 84,213 84,730 85,230
Diluted earnings (loss) per share attributable to U.S. Cellular
shareholders .................................... $ (0.51) $ 1.65 $ 1.30
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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