Investment in Unconsolidated Entities

6 Months Ended

Jun. 30, 2012

Disclosure Text Block

Investment in Unconsolidated Entities

8.Investments in Unconsolidated Entities

Investments in unconsolidated entities consist of amounts invested in wireless entities in which U.S. Cellular holds a noncontrolling interest. These investments are accounted for using either the equity or cost method.

Equity in earnings of unconsolidated entities totaled $25.2 million and $22.5 million in the three months ended June 30, 2012 and 2011, respectively, and $46.8 million and $43.4 million in the six months ended June 30, 2012 and 2011, respectively; of those amounts, U.S. Cellular's investment in the Los Angeles SMSA Limited Partnership (“LA Partnership”) contributed $19.2million and $14.1 millionin the three months ended June 30, 2012 and 2011, respectively, and $36.3 million and $27.1 millionin the six months ended June 30, 2012 and 2011, respectively. U.S. Cellular held a 5.5% ownership interest in the LA Partnership during these periods.

The following table, which is based on information provided in part by third parties, summarizes the combined results of operations of U.S. Cellular's equity method investments:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
(Dollars in thousands)
Revenues	$	1,420,492	$	1,355,114	$	2,851,865	$	2,679,573
Operating expenses		1,014,995		1,034,407		2,086,883		2,065,762
Operating income		405,497		320,707		764,982		613,811
Other income (expense), net		1,320		1,386		2,236		2,813
Net income	$	406,817	$	322,093	$	767,218	$	616,624