Business Segment Information

3 Months Ended

Mar. 31, 2013

Disclosure Text Block

Business Segment Information

13. Business Segment Information

Financial data for TDS' business segments for the threemonthsended,or as of March 31, 2013 and 2012, is as follows. See Note 1 — Basis of Presentation for additional information.

			TDS Telecom
Three Months Ended or as of March 31, 2013	U.S. Cellular		ILEC		CLEC		HMS		TDS Telecom Eliminations		TDS Telecom Total		Non- Reportable Segment		Other Reconciling Items		Total
(Dollars in thousands)
Operating revenues	$	1,081,746	$	141,520	$	42,554	$	35,564	$	(2,577)	$	217,061	$	14,446	$	(4,680)	$	1,308,573
Cost of services and products (excluding Depreciation, amortization and accretion expense reported below)		457,990		47,595		21,962		24,814		(2,186)		92,185		10,073		(356)		559,892
Selling, general and administrative		420,080		41,839		15,932		9,921		(391)		67,301		3,761		(4,239)		486,903
Depreciation, amortization and accretion expense		189,845		38,576		5,447		5,468		-		49,491		1,509		1,232		242,077
Loss on asset disposals, net		5,434		122		41		30		-		193		1		(12)		5,616
(Gain) loss on sale of business and other exit costs, net		6,931		-		-		-		-		-		-		-		6,931
Operating income (loss)		1,466		13,388		(828)		(4,669)		-		7,891		(898)		(1,305)		7,154
Equity in earnings of unconsolidated entities		26,835		7		-		-		-		7		-		247		27,089
Interest and dividend income		903		329		57		16		-		402		1		272		1,578
(Interest expense) Capitalized interest		(10,910)		759		72		(405)		-		426		(982)		(13,032)		(24,498)
Other, net		(215)		(52)		-		(122)		-		(174)		237		(2)		(154)
Income before income taxes		18,079		14,431		(699)		(5,180)		-		8,552		(1,642)		(13,820)		11,169
Add back:
Depreciation, amortization and accretion expense		189,845		38,576		5,447		5,468		-		49,491		1,509		1,232		242,077
(Gain) loss on sale of business and other exit costs, net		6,931		-		-		-		-		-		-		-		6,931
(Interest expense) Capitalized interest		10,910		(759)		(72)		405		-		(426)		982		13,032		24,498
Adjusted income before income taxes	$	225,765	$	52,248	$	4,676	$	693	$	-	$	57,617	$	849	$	444	$	284,675
Investments in unconsolidated entities	$	165,529	$	3,814	$	-	$	-	$	-	$	3,814	$	-	$	31,828	$	201,171
Total assets		6,523,635		1,372,394		112,497		264,586		-		1,749,477		61,178		167,533		8,501,823
Capital expenditures	$	118,410	$	22,384	$	5,482	$	2,591	$	-	$	30,457	$	285	$	984	$	150,136

			TDS Telecom
Three Months Ended or as of March 31, 2012	U.S. Cellular		ILEC		CLEC		HMS		TDS Telecom Eliminations		TDS Telecom Total		Non- Reportable Segment		Other Reconciling Items		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		442,244		41,514		16,260		6,732		(431)		64,075		4,186		(2,906)		507,599
Depreciation, amortization and accretion expense		146,685		37,778		5,489		4,176		-		47,443		1,530		1,776		197,434
Loss on asset disposals, net		2,003		27		53		1		-		81		-		(5)		2,079
(Gain) loss on sale of business and other exit costs, net		(4,213)		39		-		-		-		39		-		-		(4,174)
Operating income (loss)		85,202		16,539		(322)		(3,125)		-		13,092		(1,152)		(3,500)		93,642
Equity in earnings of unconsolidated entities		21,614		6		-		-		-		6		-		1,769		23,389
Interest and dividend income		1,043		630		71		2		-		703		2		435		2,183
(Interest expense) Capitalized interest		(13,411)		455		89		(241)		-		303		(971)		(10,385)		(24,464)
Other, net		202		(156)		-		-		-		(156)		182		-		228
Income before income taxes		94,650		17,474		(162)		(3,364)		-		13,948		(1,939)		(11,681)		94,978
Add back:
Depreciation, amortization and accretion expense		146,685		37,778		5,489		4,176		-		47,443		1,530		1,776		197,434
(Gain) loss on sale of business and other exit costs, net		(4,213)		39		-		-		-		39		-		-		(4,174)
(Interest expense) Capitalized interest		13,411		(455)		(89)		241		-		(303)		971		10,385		24,464
Adjusted income before income taxes	$	250,533	$	54,836	$	5,238	$	1,053	$	-	$	61,127	$	562	$	480	$	312,702
Investments in unconsolidated entities	$	154,431	$	3,813	$	-	$	-	$	-	$	3,813	$	-	$	33,400	$	191,644
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

Adjusted income before income taxes 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. Adjusted income before income taxes is defined as Income before income taxes, adjusted for: Depreciation, amortization and accretion; net Gain or loss on sale of business and other exit costs (if any), and Interest expense. Adjusted income before income taxes excludes significant recurring non-cash charges, gains and losses and financing charges (Interest expense) 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; such amounts may occur in the future.