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Investment in Unconsolidated Entities

9 Months Ended

Sep. 30, 2011

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 $21.9 million and $24.0 million in the three months ended September 30, 2011 and 2010, respectively, and $65.3 million and $74.4 million in the nine months ended September 30, 2011 and 2010, respectively; of those amounts, U.S. Cellular's investment in the Los Angeles SMSA Limited Partnership (“LA Partnership”) contributed $16.6 million and $16.1 million in the three months ended September 30, 2011 and 2010, respectively, and $43.7 million and $49.5 million in the nine months ended September 30, 2011 and 2010, 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,
	2011		2010		2011		2010
(Dollars in thousands)

Revenues	$	1,387,000	$	1,260,000	$	4,066,000	$	3,680,000
Operating expenses		1,034,000		908,000		3,099,000		2,613,000
Operating income		353,000		352,000		967,000		1,067,000
Other income		1,000		8,000		3,000		28,000
Net income	$	354,000	$	360,000	$	970,000	$	1,095,000