US Cellular 2015 Annual Report Download - page 13

Download and view the complete annual report

Please find page 13 of the 2015 US Cellular annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 124

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124

RESULTS OF OPERATIONS — TDS CONSOLIDATED
Year Ended December 31, 2015 2014 2013 2015 vs. 2014 2014 vs. 2013
(Dollars in thousands)
Operating revenues
U.S. Cellular .............. $3,996,853 $3,892,747 $3,918,836 $ 104,106 3% $ (26,089) (1)%
TDS Telecom ............. 1,158,043 1,088,312 947,003 69,731 6% 141,309 15%
All other1................ 21,345 28,379 35,397 (7,034) (25)% (7,018) (20)%
Total operating revenues ..... 5,176,241 5,009,438 4,901,236 166,803 3% 108,202 2%
Operating expenses
U.S. Cellular .............. 3,683,911 4,036,137 3,771,971 (352,226) (9)% 264,166 7%
TDS Telecom ............. 1,078,583 1,098,683 902,171 (20,100) (2)% 196,512 22%
All other12 ............... 16,676 64,482 (8,265) (47,806) (74)% 72,747 >100%
Total operating expenses .... 4,779,170 5,199,302 4,665,877 (420,132) (8)% 533,425 11%
Operating income (loss)
U.S. Cellular .............. 312,942 (143,390) 146,865 456,332 >100% (290,255) >(100)%
TDS Telecom ............. 79,460 (10,371) 44,832 89,831 >100% (55,203) >(100)%
All other12 ............... 4,669 (36,103) 43,662 40,772 >100% (79,765) >(100)%
Total operating income (loss) . . 397,071 (189,864) 235,359 586,935 >100% (425,223) >(100)%
Other income (expenses)
Equity in earnings of
unconsolidated entities ...... 140,076 131,965 132,714 8,111 6% (749) (1)%
Interest and dividend income . . . 38,783 16,957 9,092 21,826 >100% 7,865 87%
Gain (loss) on investments ..... –– 14,547 – N/M (14,547) N/M
Interest expense ........... (141,719) (111,397) (98,811) (30,322) (27)% (12,586) (13)%
Other, net ............... 391 115 (37) 276 >100% 152 >100%
Total other income (expenses) . 37,531 37,640 57,505 (109) – (19,865) (35)%
Income (loss) before income
taxes .................. 434,602 (152,224) 292,864 586,826 >100% (445,088) >(100)%
Income tax expense (benefit) . . . 171,992 (4,932) 126,043 176,924 >100% (130,975) >(100)%
Net income (loss) ........... 262,610 (147,292) 166,821 409,902 >100% (314,113) >(100)%
Less: Net income (loss)
attributable to noncontrolling
interests, net of tax ........ 43,573 (10,937) 24,894 54,510 >100% (35,831) >(100)%
Net income (loss) attributable to
TDS shareholders ......... 219,037 (136,355) 141,927 355,392 >100% (278,282) >(100)%
Preferred dividend requirement . . (49) (49) (49) –– ––
Net income (loss) available to
common shareholders ...... $ 218,988 $ (136,404) $ 141,878 $ 355,392 >100% $ (278,282) >(100)%
Capital expenditures ......... $ 759,368 $ 770,577 $ 909,660 $ (11,209) (1)% $ (139,083) (15)%
N/M – Percentage change not meaningful
1Consists of corporate and other operations and intercompany eliminations.
2In 2015 and 2013, TDS recognized an incremental gain compared to U.S. Cellular of $11.9 million on the Tower Sale and $53.5 million upon closing of
the Divestiture Transaction, respectively, as a result of lower asset basis in the assets disposed. In 2014, TDS recognized expenses of $20.2 million
related to exit and disposal activities due to a License Purchase and Customer Recommendation Agreement between U.S. Cellular and Airadigm. See
Note 6 — Acquisitions, Divestitures and Exchanges for additional information related to these transactions.
5
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS