Investment in Unconsolidated Entities

12 Months Ended

Dec. 31, 2012

NOTE 9 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 as shown in the following table:

December 31,		2012		2011
(Dollars in thousands)
Equity method investments:
	Capital contributions, loans and advances	$	10,323	$	13,787
	Cumulative share of income		1,017,449		928,019
	Cumulative share of distributions		(884,852)		(805,321)
			142,920		136,485
Cost method investments			1,611		1,611
Total investments in unconsolidated entities		$	144,531	$	138,096

Equity in earnings of unconsolidated entities totaled $90.4 million, $83.6 million and $97.3 million in 2012, 2011 and 2010, respectively; of those amounts, U.S. Cellular's investment in the Los Angeles SMSA Limited Partnership (“LA Partnership”) contributed $67.2 million, $55.3 million and $64.8 million in 2012, 2011 and 2010, respectively. U.S. Cellular held a 5.5% ownership interest in the LA Partnership throughout and at the end of each of these years.

The following tables, which are based on information provided in part by third parties, summarize the combined assets, liabilities and equity, and the combined results of operations of U.S. Cellular's equity method investments:

December 31,		2012		2011
(Dollars in thousands)
Assets
	Current	$	444,100	$	404,751
	Due from affiliates		298,707		199,167
	Property and other		1,896,784		1,935,125
		$	2,639,591	$	2,539,043

Liabilities and Equity
	Current liabilities	$	350,067	$	300,780
	Deferred credits		80,660		79,787
	Long-term liabilities		21,328		22,943
	Long-term capital lease obligations		405		234
	Partners' capital and shareholders' equity		2,187,131		2,135,299
		$	2,639,591	$	2,539,043

Year Ended December 31,		2012		2011		2010
(Dollars in thousands)
Results of Operations
	Revenues	$	5,804,466	$	5,519,024	$	4,950,306
	Operating expenses		4,363,399		4,282,277		3,549,098
	Operating income		1,441,067		1,236,747		1,401,208
	Other income, net		4,003		4,976		37,701
	Net income	$	1,445,070	$	1,241,723	$	1,438,909