Investment in Unconsolidated Entities

9 Months Ended

Sep. 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 $24.8 million and $21.9 million in the three months ended September 30, 2012 and 2011, respectively, and $71.6 million and $65.3 million in the nine months ended September 30, 2012 and 2011, respectively; of those amounts, U.S. Cellular's investment in the Los Angeles SMSA Limited Partnership (“LA Partnership”) contributed $18.3million and $16.6 millionin the three months ended September 30, 2012 and 2011, respectively, and $54.6 million and $43.7 millionin the nine months ended September 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				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
(Dollars in thousands)
Revenues	$	1,446,311	$	1,386,808	$	4,298,176	$	4,066,382
Operating expenses		1,063,285		1,033,792		3,150,168		3,099,555
Operating income		383,026		353,016		1,148,008		966,827
Other income (expense), net		(51)		853		2,185		3,666
Net income	$	382,975	$	353,869	$	1,150,193	$	970,493