Investment in Unconsolidated Entities

3 Months Ended

Mar. 31, 2013

Disclosure Text Block

Investment in Unconsolidated Entities

7. 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 $26.8 million and $21.6 million in the three months ended March 31, 2013 and 2012, respectively; of those amounts, U.S. Cellular's investment in the Los Angeles SMSA Limited Partnership (“LA Partnership”) contributed $20.6 million and $17.1 million in the three months ended March 31, 2013 and 2012, 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 March 31,
	2013		2012
(Dollars in thousands)
Revenues	$	1,492,726	$	1,431,372
Operating expenses		1,066,967		1,071,887
Operating income		425,759		359,485
Other income		588		916
Net income	$	426,347	$	360,401