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United States Cellular Corporation
Notes to Consolidated Financial Statements (Continued)
NOTE 8 INVESTMENTS IN UNCONSOLIDATED ENTITIES (Continued)
The following tables, which are based on information provided in part by third parties, summarize the
combined assets, liabilities and equity, and the combined results of operations of U.S. Cellular’s equity
method investments:
December 31, 2014 2013
(Dollars in thousands)
Assets
Current ........................... $ 691,519 $ 489,659
Due from affiliates .................... 303,322 408,735
Property and other ................... 2,295,936 2,026,104
$3,290,777 $2,924,498
Liabilities and Equity
Current liabilities ..................... $ 403,005 $ 351,624
Deferred credits ..................... 170,887 84,834
Long-term liabilities ................... 18,101 19,712
Long-term capital lease obligations ....... 1,722 707
Partners’ capital and shareholders’ equity . . . 2,697,062 2,467,621
$3,290,777 $2,924,498
Year Ended December 31, 2014 2013 2012
(Dollars in thousands)
Results of Operations
Revenues .......................... $6,668,615 $6,218,067 $5,804,466
Operating expenses .................. 5,035,544 4,473,722 4,363,399
Operating income .................... 1,633,071 1,744,345 1,441,067
Other income, net .................... 1,160 4,842 4,003
Net income ........................ $1,634,231 $1,749,187 $1,445,070
NY1 & NY2 Deconsolidation
U.S. Cellular holds a 60.00% interest in St. Lawrence Seaway RSA Cellular Partnership (‘‘NY1’’) and a
57.14% interest in New York RSA 2 Cellular Partnership (‘‘NY2’’) (together with NY1, the ‘‘Partnerships’’).
The remaining interests in the Partnerships are held by Cellco Partnership d/b/a Verizon Wireless
(‘‘Verizon Wireless’’). Prior to April 3, 2013, because U.S. Cellular owned a greater than 50% interest in
each of these Partnerships and based on U.S. Cellular’s rights under the Partnership Agreements, U.S.
Cellular consolidated the financial results of these Partnerships in accordance with GAAP.
On April 3, 2013, U.S. Cellular entered into an agreement with Verizon Wireless relating to the
Partnerships. The agreement amends the Partnership Agreements in several ways which provide Verizon
Wireless with substantive participating rights that allow Verizon Wireless to make decisions that are in the
ordinary course of business of the Partnerships and which are significant to directing and executing the
activities of the business. Accordingly, as required by GAAP, U.S. Cellular deconsolidated the
Partnerships effective as of April 3, 2013 and thereafter reported them as equity method investments in
its consolidated financial statements (‘‘NY1 & NY2 Deconsolidation’’). After the NY1 &
NY2 Deconsolidation, U.S. Cellular retained the same ownership percentages in the Partnerships and
continues to report the same percentages of income from the Partnerships. Effective April 3, 2013, U.S.
Cellular’s income from the Partnerships is reported in Equity in earnings of unconsolidated entities in the
Consolidated Statement of Operations.
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