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NOTE 8 INVESTMENTS IN UNCONSOLIDATED ENTITIES
Investments in unconsolidated entities consist of amounts invested in wireless and wireline entities in which TDS holds a
noncontrolling interest. These investments are accounted for using either the equity or cost method as shown in the
following table:
December 31, 2015 2014
(Dollars in thousands)
Equity method investments:
Capital contributions, loans, advances and adjustments ........................... $ 123,250 $ 127,939
Cumulative share of income ............................................ 1,468,312 1,323,898
Cumulative share of distributions ......................................... (1,205,497) (1,145,438)
386,065 306,399
Cost method investments ............................................... 15,655 15,330
Total investments in unconsolidated entities .................................... $ 401,720 $ 321,729
The following tables, which are based on information provided in part by third parties, summarize the combined assets,
liabilities and equity, and results of operations of TDS’ equity method investments:
December 31, 2015 2014
(Dollars in thousands)
Assets
Current .......................................................... $ 670,723 $ 733,133
Due from affiliates ................................................... 88,685 303,322
Property and other ................................................... 4,604,312 2,345,562
$ 5,363,720 $ 3,382,017
Liabilities and Equity
Current liabilities .................................................... $ 810,121 $ 407,073
Deferred credits .................................................... 242,301 175,516
Long-term liabilities .................................................. 157,785 29,342
Long-term capital lease obligations ........................................ 1,539 1,722
Partners’ capital and shareholders’ equity ..................................... 4,151,974 2,768,364
$ 5,363,720 $ 3,382,017
Year Ended December 31, 2015 2014 2013
(Dollars in thousands)
Results of Operations
Revenues .............................................. $ 6,979,184 $ 6,700,266 $ 6,239,200
Operating expenses ....................................... 5,245,216 5,063,925 4,492,372
Operating income ......................................... 1,733,968 1,636,341 1,746,828
Other income (expense), net .................................. (9,049) 6,741 4,019
Net income ............................................. $ 1,724,919 $ 1,643,082 $ 1,750,847
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.
83
TELEPHONE AND DATA SYSTEMS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS