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Revision of Period Period Amounts
9 Months Ended
Sep. 30, 2011
Disclosure Text Block [Abstract] 
Revision of Prior Period Amounts

2. Revision of Prior Period Amounts

 

In preparing its financial statements for the nine months ended September 30, 2011, U.S. Cellular 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 and second quarter 2011 interim financial statements and in the 2010, 2009 and 2008 annual periods reported in the Company's December 31, 2010 financial statements. The December 31, 2007 Retained earnings balance presented in the December 31, 2010 annual financial statements was also overstated as a result of these errors. In accordance with SEC Staff Accounting Bulletin Nos. 99 and 108 (“SAB 99” and “SAB 108”), U.S. Cellular evaluated these errors and determined that they were immaterial to each of the reporting periods affected and, therefore, amendments of previously filed reports were not required. However, if the adjustments to correct the cumulative errors had been recorded in the third quarter 2011, U.S. Cellular believes the impact would have been significant to the third quarter results and would have impacted comparisons to prior periods. As permitted by SAB 108, revisions for these immaterial amounts to previously reported annual and quarterly results are reflected in the financial information herein and will be reflected in future filings containing such financial information. The impact of these errors was an increase to Retained earnings of $3.8 million, $2.8 million and $2.6 million in 2010, 2009 and 2008, respectively.

 

The Consolidated Balance Sheet at December 31, 2010 was revised to reflect the cumulative effect of these errors which resulted in an increase to Retained earnings of $5.9 million.  In accordance with SAB 108, the Consolidated Balance Sheet, the Consolidated Statement of Operations and the Consolidated Statement of Cash Flows have been revised as follows:

 

Consolidated Balance Sheet -- December 31, 2010 
               
    As previously         
 (Dollars in thousands)reported (1)   Adjustment   Revised 
               
 Property, plant and equipment, net$2,615,072  $(40,550) $2,574,522 
 Total assets 5,933,610   (40,550)  5,893,060 
 Net deferred income tax liability 579,769   3,675   583,444 
 Other deferred liabilities and credits 284,949   (50,094)  234,855 
 Retained earnings 2,129,638   5,869   2,135,507 
 Total U.S. Cellular shareholders' equity 3,480,583   5,869   3,486,452 
 Total equity 3,534,101   5,869   3,539,970 
 Total liabilities and equity 5,933,610   (40,550)  5,893,060 
               
               
Consolidated Statement of Operations -- Three Months Ended September 30, 2010  
               
    As previously         
 (Dollars in thousands)reported (2)   Adjustment   Revised 
             
 Depreciation, amortization and accretion$144,717  $(1,526) $143,191 
 Total operating expenses 1,000,948   (1,526)  999,422 
 Operating income 59,833   1,526   61,359 
 Income before income taxes 68,329   1,526   69,855 
 Income tax expense 25,051   588   25,639 
 Net income 43,278   938   44,216 
 Net income attributable to U.S. Cellular shareholders 37,358   938   38,296 
 Basic earnings per share attributable to U.S. Cellular shareholders 0.43   0.02   0.45 
 Diluted earnings per share attributable to U.S. Cellular shareholders 0.43   0.01   0.44 
               
               
Consolidated Statement of Operations -- Nine Months Ended September 30, 2010  
               
    As previously         
 (Dollars in thousands)reported (2)   Adjustment   Revised 
             
 Depreciation, amortization and accretion$432,405  $(4,574) $427,831 
 Total operating expenses 2,913,570   (4,574)  2,908,996 
 Operating income 200,961   4,574   205,535 
 Income before income taxes 229,232   4,574   233,806 
 Income tax expense 86,894   1,762   88,656 
 Net income 142,338   2,812   145,150 
 Net income attributable to U.S. Cellular shareholders 125,480   2,812   128,292 
 Basic earnings per share attributable to U.S. Cellular shareholders 1.45   0.04   1.49 
 Diluted earnings per share attributable to U.S. Cellular shareholders 1.45   0.03   1.48 
               
               
Consolidated Statement of Cash Flows -- Nine Months Ended September 30, 2010  
               
    As previously         
 (Dollars in thousands)reported (2)   Adjustment   Revised 
             
 Net income$142,338  $2,812  $145,150 
 Depreciation, amortization and accretion 432,405   (4,574)  427,831 
 Deferred income taxes, net 50,180   1,762   51,942 
 Cash flows from operating activities 584,013    —   584,013 

  • In Annual Report on Form 10-K for the year ended December 31, 2010, filed on February 25, 2011.
  • In Quarterly Report on Form 10-Q for the period ended September 30, 2010, filed on November 4, 2010.