Business Segment Information

3 Months Ended

Mar. 31, 2012

Disclosure Text Block

Business Segment Information

13. Business Segment Information

Financial data for TDS' business segments for the three month periods ended,or as of March 31, 2012 and 2011, is as follows. TDS Telecom's incumbent local exchange carriers are designated as “ILEC” in the table, its competitive local exchange carrier is designated as “CLEC” and its Hosted and Managed Services operations are designated as “HMS.”

				TDS Telecom										Non-		Other
Three Months Ended or as of		U.S.								TDS Telecom		TDS Telecom		Reportable		Reconciling
March 31, 2012		Cellular		ILEC		CLEC		HMS		Eliminations		Total		Segment (1)		Items (2)		Total
(Dollars in thousands)
Operating revenues		$	1,092,121	$	145,065	$	44,044	$	17,558	$	(2,592)	$	204,075	$	14,769	$	(5,174)	$	1,305,791
Cost of services and products (excluding
	Depreciation, amortization and accretion
	expense reported below)		420,200		49,168		22,564		9,774		(2,161)		79,345		10,205		(539)		509,211
Selling, general and administrative expense			442,244		41,514		16,260		6,732		(431)		64,075		4,186		(2,906)		507,599
Adjusted OIBDA (3)			229,677		54,383		5,220		1,052		—		60,655		378		(1,729)		288,981
Depreciation, amortization and accretion expense			146,685		37,778		5,489		4,176		—		47,443		1,530		1,776		197,434
Loss on impairment of intangible assets			—		—		—		—		—		—		—		—		—
(Gain) loss on asset disposals, net			(2,210)		66		53		1		—		120		—		(5)		(2,095)
Operating income (loss)			85,202		16,539		(322)		(3,125)		—		13,092		(1,152)		(3,500)		93,642
Total assets			6,341,435		1,387,900		113,520		208,785		—		1,710,205		67,950		53,078		8,172,668
Capital expenditures		$	201,337	$	27,526	$	5,058	$	3,091	$	—	$	35,675	$	216	$	(8,764)	$	228,464

				TDS Telecom										Non-		Other
Three Months Ended or as of		U.S.								TDS Telecom		TDS Telecom		Reportable		Reconciling
March 31, 2011		Cellular		ILEC		CLEC		HMS		Eliminations		Total		Segment (1)		Items (2)		Total
(Dollars in thousands)
Operating revenues		$	1,057,092	$	149,574	$	45,328	$	6,242	$	(2,228)	$	198,916	$	8,615	$	(5,942)	$	1,258,681
Cost of services and products (excluding
	Depreciation, amortization and accretion
	expense reported below)		411,963		45,402		22,472		2,282		(1,791)		68,365		6,821		(403)		486,746
Selling, general and administrative expense			442,004		35,482		15,648		2,711		(437)		53,404		1,632		(5,934)		491,106
Adjusted OIBDA (3)			203,125		68,690		7,208		1,249		—		77,147		162		395		280,829
Depreciation, amortization and accretion expense			143,340		37,200		5,490		2,147		—		44,837		474		2,162		190,813
Loss on impairment of intangible assets			—		—		—		—		—		—		—		—		—
(Gain) loss on asset disposals, net			1,037		41		31		32		—		104		—		2		1,143
Operating income (loss)			58,748		31,449		1,687		(930)		—		32,206		(312)		(1,769)		88,873
Total assets (4)			5,934,782		1,355,869		118,674		85,130		—		1,559,673		23,279		527,475		8,045,209
Capital expenditures		$	95,933	$	20,517	$	4,234	$	1,537	$	—	$	26,288	$	1,890	$	3,352	$	127,463

• Represents Suttle-Straus and, as of September 23, 2011, Airadigm.
• Consists of corporate operations, intercompany eliminations between U.S. Cellular, TDS Telecom and corporate operations.
• Adjusted OIBDA is defined as operating income excluding the effects of: depreciation, amortization and accretion (OIBDA); the net gain or loss on asset disposals and exchanges (if any); and the loss on impairment of assets (if any). Adjusted OIBDA is a segment measure reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance. This amount may also be commonly referred to by management as operating cash flow. This amount should not be confused with Cash flows from operating activities, which is a component of the Consolidated Statement of Cash Flows. Adjusted OIBDA excludes the net gain or loss on asset disposals and exchanges and loss on impairment of assets (if any), in order to show operating results on a more comparable basis from period to period. TDS does not intend to imply that any of such amounts that are excluded are non-recurring, infrequent or unusual. Accordingly you should be aware that TDS may incur such amounts in the future.
• In preparing its financial statements for the nine months ended September 30, 2011, TDS discovered certain errors related to accounting for asset retirement obligations and asset retirement costs. These errors resulted in the overstatement of Total operating expenses, Property, plant and equipment, net and Other deferred liabilities and credits in the first quarter 2011 interim financial statements. The amounts herein have been revised to reflect the proper amounts. See Note 2 ― Revision of Prior Period Amounts for additional information.