Exhibit 99.1
As previously announced, U.S. Cellular® will hold a teleconference on Nov. 5, 2009, at 10:00 a.m. Chicago time. Interested parties may listen to the call live by accessing the Conference Calls page ofwww.teldta.comoruscellular.com.
Contact: Jane W. McCahon, Vice President, Corporate Relations
(312) 592-5379jane.mccahon@teldta.com
Julie D. Mathews, Manager, Investor Relations
(312) 592-5341julie.mathews@teldta.com
FOR RELEASE: IMMEDIATE
U.S. cellular Reports THIRD QUARTER RESULTS
Data revenues increase 34 percent
Note: Comparisons are year over year unless otherwise noted.
3Q 2009 Highlights
§ Postpay net additions were 8,000; prepaid net losses were 14,000.
§ Service revenues of $984.9 million, down 3 percent due primarily to a $24.7 million decrease in inbound roaming revenues.
§ Retail service ARPU (average revenue per unit) increased from $46.97 to $47.02.
§ 34 percent increase in data revenues, to $174.3 million, representing 18 percent of service revenues. Data revenue per customer increased from $7.01 to $9.46.
§ Postpay churn was 1.7 percent; postpay customers comprised 96 percent of retail customers.
§ 7 percent increase in cell sites in service, to 7,161.
CHICAGO – Nov. 5, 2009 – United States Cellular Corporation [NYSE:USM] reported service revenues of $984.9 million for the third quarter of 2009, a 3 percent decrease from $1,013.9 million in the comparable period one year ago, due primarily to a $24.7 million reduction in inbound roaming revenues related to the acquisition of Alltel Corporation by Verizon Wireless. Net income attributable to U.S. Cellular and related diluted earnings per share were $35.6 million and $0.41, respectively, for the third quarter of 2009, compared to $89.9 million and $1.02, respectively, in the comparable period one year ago. In the third quarter of 2008, U.S. Cellular recorded a $16.4 million pre-tax gain on disposition of investments related to Rural Cellular Corporation.
“During the third quarter, both gross and net retail additions improved significantly over the second quarter,” said John E. Rooney, U.S. Cellular president and CEO. “We reached out with targeted postpay promotions and more value-driven prepaid plans and customers responded well, particularly in our larger markets. In fact, retail net additions improved sequentially each month in the quarter.
“Data revenues grew 34 percent, helping to offset the expected decline in inbound roaming revenue,” continued Rooney. “To promote continued growth in data revenues, we have accelerated the expansion of our 3G network, reaching approximately 75 percent of our customers at the end of the third quarter. This will help us further drive the already strong sales of smartphones, messaging products and data applications. We’re also seeing excellent demand for our premium phones, like the recently launched LG Bliss™ and LG Tritan™. And, we’re optimizing our handset mix,including the recent launch of the Blackberry Tour™ to promote sales in all of our customer segments during the holiday season.
“As expected, operating income declined this quarter, reflecting lower revenues, as well as increased spending in support of multi-year initiatives,” added Rooney. “These initiatives will be a strong focus for U.S. Cellular in 2010 and beyond, enabling us to increase efficiency, while strengthening our relationships with customers and developing targeted marketing and sales programs for all channels.”
Guidance
Guidance for the year ending Dec. 31, 2009 is as follows. Guidance is unchanged from Aug. 6, 2009. There can be no assurance that final results will not differ materially from this guidance.
U.S. Cellular 2009 guidance as of Nov. 5, 2009 is as follows: | ||
| Service revenues | $3,900-$3,950 million |
| Operating income (1) | $300-$375 million |
| Depreciation, amortization and accretion (1) | Approx. $600 million |
| Capital expenditures | Approx. $575 million |
(1) Includes losses on disposals of assets.
The foregoing guidance represents the views of management as of Nov. 5, 2009 and should not be assumed to be accurate as of any other date. U.S. Cellular undertakes no legal duty to update such information, whether as a result of new information, future events or otherwise.
Conference call information
U.S. Cellular will hold a conference call on Nov. 5, 2009 at 10:00 a.m. Chicago time.
· Access the live call on the Conference Calls page ofuscellular.comathttp://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=67422&eventID=2517092
· Access the call by phone at 800/706-9695 (US/Canada) and use conference ID #38289990.
Before the call, certain financial and statistical information to be discussed during the call will be posted to the Conference Calls page ofuscellular.com, together with reconciliations to generally accepted accounting principles (GAAP) of any non-GAAP information to be disclosed. The call will be archived on the Conference Calls page ofuscellular.com.
About U.S. Cellular®
United States Cellular Corporation, the nation's fifth-largest, full-service wireless carrier, provides a comprehensive range of wireless products and services, excellent customer support, and a high-quality network to approximately 6.1 million customers in 26 states. The Chicago-based company employed approximately 8,700 full-time equivalent associates as of Sept. 30, 2009. At the end of the quarter, Telephone and Data Systems, Inc. owned 82 percent of U.S. Cellular.
Visituscellular.comfor comprehensive financial information, including earnings releases, quarterly and annual filings, shareholder information, and more.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company’s plans, beliefs, estimates, and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and
2
uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: The ability of the company to successfully manage and grow its markets; the current credit crisis affecting financial markets, and its effects on the overall economy; competition; the state and federal telecommunications regulatory environment; the value of assets and investments; adverse changes in the ratings afforded our debt securities by accredited ratings organizations; industry consolidation; advances in telecommunications technology;uncertainty of access to the capital markets;pending and future litigation; changes in income tax rates, laws, regulations or rulings;acquisitions/divestitures of properties and/or licenses; changes in customer growth rates, average monthly revenue per unit, churn rates, roaming revenue and terms, the availability of handset devices, or the mix of products and services offered by the company; and the ability to obtain or maintain roaming arrangements with other carriers. Investors are encouraged to consider these and other risks and uncertainties that are discussed in the Form 8-K used by U.S. Cellular to furnish this press release to the SEC, which are incorporated by reference herein.
3
UNITED STATES CELLULAR CORPORATION SUMMARY OPERATING DATA | ||||||||||||||||||||
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Quarter Ended | 9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | |||||||||||||||
Total population |
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| ||||||||||
| Consolidated markets (1) |
| 85,118,000 |
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| 83,726,000 |
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| 83,726,000 |
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| 83,014,000 |
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|
| 82,875,000 |
|
| Consolidated operating markets (1) |
| 46,306,000 |
| 46,306,000 |
| 46,306,000 |
| 46,009,000 |
| 45,493,000 | |||||||||
All customers |
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| Total at end of period |
| 6,131,000 |
| 6,155,000 |
| 6,243,000 |
| 6,196,000 |
| 6,176,000 | |||||||||
| Gross additions |
| 386,000 |
| 317,000 |
| 404,000 |
| 395,000 |
| 367,000 | |||||||||
| Net additions (losses) |
| (24,000 | ) |
| (88,000 | ) |
| 47,000 |
| 20,000 |
| (18,000 | ) | ||||||
Market penetration at end of period |
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| Consolidated markets (2) |
| 7.2 | % |
| 7.4 | % |
| 7.5 | % |
| 7.5 | % |
| 7.5 | % | ||||
| Consolidated operating markets (2) |
| 13.2 | % |
| 13.3 | % |
| 13.5 | % |
| 13.5 | % |
| 13.6 | % | ||||
Retail customers |
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| Total at end of period |
| 5,705,000 |
| 5,711,000 |
| 5,770,000 |
| 5,707,000 |
| 5,674,000 | |||||||||
| Gross additions |
| 351,000 |
| 286,000 |
| 366,000 |
| 352,000 |
| 325,000 | |||||||||
| Net postpay additions (losses) |
| 8,000 |
| (32,000 | ) |
| 60,000 |
| 41,000 |
| 12,000 | ||||||||
| Net prepay additions (losses) |
| (14,000 | ) |
| (27,000 | ) |
| 3,000 |
| (8,000) |
| (15,000 | ) | ||||||
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Cell sites in service |
| 7,161 |
| 7,043 |
| 6,942 |
| 6,877 |
| 6,716 | ||||||||||
Average monthly revenue per unit (3) | $ | 53.49 | $ | 52.41 | $ | 52.54 | $ | 52.71 | $ | 54.59 | ||||||||||
| Retail service revenue per unit (3) (5) | $ | 47.02 | $ | 46.85 | $ | 46.78 | $ | 46.43 | $ | 46.97 | |||||||||
| Inbound roaming revenue per unit (3) (5) | $ | 3.73 | $ | 3.35 | $ | 3.21 | $ | 4.25 | $ | 5.03 | |||||||||
| Other revenue per unit (3) (5) | $ | 2.74 | $ | 2.21 | $ | 2.55 | $ | 2.03 | $ | 2.59 | |||||||||
Postpay churn rate (4) |
| 1.7 | % |
| 1.7 | % |
| 1.5 | % |
| 1.6 | % |
| 1.6 | % | |||||
Construction expenditures (000s) | $ | 128,900 | $ | 91,200 | $ | 137,700 | $ | 190,000 | $ | 146,100 |
(1) Used only to calculate market penetration of consolidated markets and consolidated operating markets, respectively, which is calculated by dividing customers by the total market population (without duplication of population in overlapping markets).
(2) Calculated by dividing the number of wireless customers at the end of the period by the total population of consolidated markets and consolidated operating markets, respectively, as estimated by Claritas.
(3) Derived from Service revenues as reported in Financial Highlights for each respective quarter as follows:
| Service revenue (000s) | $ | 984,923 |
| $ | 974,755 |
| $ | 981,874 |
| $ | 976,952 |
| $ | 1,013,928 | |
| Components |
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| |
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| Retail service revenue (000s) |
| 865,867 |
|
| 871,209 |
|
| 874,098 |
|
| 860,503 |
|
| 872,397 |
|
| Inbound roaming revenue (000s) |
| 68,767 |
|
| 62,223 |
|
| 60,057 |
|
| 78,768 |
|
| 93,472 |
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| Other revenue (000s) |
| 50,289 |
|
| 41,323 |
|
| 47,719 |
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| 37,681 |
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| 48,059 |
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| Divided by average customers (000s) |
| 6,138 |
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| 6,199 |
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| 6,229 |
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| 6,178 |
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| 6,191 | |
| Divided by three months in each quarter |
| 3 |
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| 3 |
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| 3 |
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| 3 |
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| 3 | |
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| Average monthly revenue per unit | $ | 53.49 |
| $ | 52.41 |
| $ | 52.54 |
| $ | 52.71 |
| $ | 54.59 | |
| Retail service revenue per unit | $ | 47.02 |
| $ | 46.85 |
| $ | 46.78 |
| $ | 46.43 |
| $ | 46.97 | |
| Inbound roaming revenue per unit | $ | 3.73 |
| $ | 3.35 |
| $ | 3.21 |
| $ | 4.25 |
| $ | 5.03 | |
| Other revenue per unit | $ | 2.74 |
| $ | 2.21 |
| $ | 2.55 |
| $ | 2.03 |
| $ | 2.59 |
(4) Calculated by dividing the total postpay customer disconnects during the quarter by the average postpay customer base for the quarter.
(5) Long-distance revenue was reclassified in the fourth quarter of 2008 from Other revenue to Retail service revenue and Inbound roaming revenue. Previous quarters have been adjusted to reflect this change.
4
United States Cellular Corporation Consolidated Statement of Operations Highlights Three Months Ended September 30, (Unaudited, dollars and shares in thousands, except per share amounts) | |||||||||||||||||
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| Increase (Decrease) | |||||||
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| 2009 |
| 2008 |
| Amount |
| Percent | |||||||
Operating revenues |
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| |||||||
| Service | $ | 984,923 |
| $ | 1,013,928 |
| $ | (29,005 | ) |
| (3 | )% | ||||
| Equipment sales |
| 73,377 |
|
| 77,947 |
|
| (4,570 | ) |
| (6 | )% | ||||
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| Total operating revenues |
| 1,058,300 |
|
| 1,091,875 |
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| (33,575 | ) |
| (3 | )% | |||
Operating expenses |
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| System operations (excluding Depreciation,amortization and accretion reported below) |
| 205,458 |
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| 197,473 |
|
| 7,985 |
| 4 | % | |||||
| Cost of equipment sold |
| 189,354 |
|
| 185,992 |
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| 3,362 |
| 2 | % | |||||
| Selling, general and administrative |
| 454,839 |
|
| 436,135 |
|
| 18,704 |
| 4 | % | |||||
| Depreciation, amortization and accretion |
| 147,586 |
|
| 145,434 |
|
| 2,152 |
| 1 | % | |||||
| Loss on asset disposals, net |
| 3,371 |
|
| 6,884 |
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| (3,513 | ) |
| (51 | )% | ||||
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| Total operating expenses |
| 1,000,608 |
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| 971,918 |
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| 28,690 |
| 3 | % | ||||
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Operating income |
| 57,692 |
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| 119,957 |
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| (62,265 | ) |
| (52 | )% | |||||
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Investment and other income (expense) |
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| Equity in earnings of unconsolidated entities |
| 23,126 |
|
| 22,319 |
|
| 807 |
| 4 | % | |||||
| Interest and dividend income |
| 1,420 |
|
| 1,137 |
|
| 283 |
| 25 | % | |||||
| Gain on disposition of investments |
| — |
|
| 16,628 |
|
| (16,628 | ) |
| N/M | |||||
| Interest expense |
| (19,358 | ) |
|
| (19,722 | ) |
|
| 364 |
| 2 | % | |||
| Other, net |
| 905 |
|
| 391 |
|
| 514 |
| N/M | ||||||
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| Total investment and other income (expense) |
| 6,093 |
|
| 20,753 |
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| (14,660 | ) |
| (71 | )% | |||
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Income before income taxes |
| 63,785 |
|
| 140,710 |
|
| (76,925 | ) |
| (55 | )% | |||||
| Income tax expense |
| 22,541 |
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| 45,506 |
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| (22,965 | ) |
| (50 | )% | ||||
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Net income |
| 41,244 |
|
| 95,204 |
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| (53,960 | ) |
| (57 | )% | |||||
| Less: Net income attributable to noncontrolling interests, net of tax |
| (5,606 | ) |
|
| (5,255 | ) |
|
| (351 | ) |
| (7 | )% | ||
Net income attributable to U.S. Cellular | $ | 35,638 |
| $ | 89,949 |
| $ | (54,311 | ) |
| (60 | )% | |||||
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Basic weighted average shares outstanding |
| 86,848 |
|
| 87,460 |
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| (612 | ) |
| (1 | )% | |||||
Basic earnings per share attributable toU.S. Cellular shareholders | $ | 0.41 |
| $ | 1.03 |
| $ | (0.62 | ) |
| (60 | )% | |||||
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Diluted weighted average shares outstanding |
| 87,128 |
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| 87,833 |
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| (705 | ) |
| (1 | )% | |||||
Diluted earnings per share attributable to U.S. Cellular shareholders | $ | 0.41 |
| $ | 1.02 |
| $ | (0.61 | ) |
| (60 | )% | |||||
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N/M - Percentage change not meaningful |
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5
United States Cellular Corporation Consolidated Statement of Operations Highlights Nine Months Ended September 30, (Unaudited, dollars and shares in thousands, except per share amounts) | ||||||||||||||||
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| Increase (Decrease) | |||||||
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| 2009 |
| 2008 |
| Amount |
| Percent | |||||||
Operating revenues |
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| Service | $ | 2,941,552 |
| $ | 2,963,374 |
| $ | (21,822 | ) |
| (1 | )% | |||
| Equipment sales |
| 212,062 |
|
| 226,949 |
|
| (14,887 | ) |
| (7 | )% | |||
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| Total operating revenues |
| 3,153,614 |
|
| 3,190,323 |
|
| ��(36,709 | ) |
| (1 | )% | ||
Operating expenses |
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| System operations (excluding Depreciation,amortization and accretion reported below) |
| 600,267 |
|
| 585,141 |
|
| 15,126 |
| 3 | % | ||||
| Cost of equipment sold |
| 531,110 |
|
| 540,182 |
|
| (9,072 | ) |
| (2 | )% | |||
| Selling, general and administrative |
| 1,277,357 |
|
| 1,258,177 |
|
| 19,180 |
| 2 | % | ||||
| Depreciation, amortization and accretion |
| 423,851 |
|
| 433,222 |
|
| (9,371 | ) |
| (2 | )% | |||
| Loss on asset disposals, net |
| 7,648 |
|
| 16,776 |
|
| (9,128 | ) |
| (54 | )% | |||
|
| Total operating expenses |
| 2,840,233 |
|
| 2,833,498 |
|
| 6,735 |
| — | ||||
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Operating income |
| 313,381 |
|
| 356,825 |
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| (43,444 | ) |
| (12 | )% | ||||
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Investment and other income (expense) |
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| Equity in earnings of unconsolidated entities |
| 73,247 |
|
| 66,361 |
|
| 6,886 |
| 10 | % | ||||
| Interest and dividend income |
| 2,648 |
|
| 4,471 |
|
| (1,823 | ) |
| (41 | )% | |||
| Gain on disposition of investments |
| — |
|
| 16,628 |
|
| (16,628 | ) |
| N/M | ||||
| Interest expense |
| (57,767 | ) |
|
| (60,611 | ) |
|
| 2,844 |
| 5 | % | ||
| Other, net |
| 1,183 |
|
| 1,109 |
|
| 74 |
| 7 | % | ||||
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| Total investment and other income (expense) |
| 19,311 |
|
| 27,958 |
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| (8,647 | ) |
| (31 | )% | ||
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Income before income taxes |
| 332,692 |
|
| 384,783 |
|
| (52,091 | ) |
| (14 | )% | ||||
| Income tax expense |
| 111,521 |
|
| 137,062 |
|
| (25,541 | ) |
| (19 | )% | |||
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Net income |
| 221,171 |
|
| 247,721 |
|
| (26,550 | ) |
| (11 | )% | ||||
| Less: Net income attributable to noncontrollinginterests, net of tax |
| (17,583 | ) |
|
| (14,613 | ) |
|
| (2,970 | ) |
| (20 | )% | |
Net income attributable to U.S. Cellular | $ | 203,588 |
| $ | 233,108 |
| $ | (29,520 | ) |
| (13 | )% | ||||
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Basic weighted average shares outstanding |
| 87,011 |
|
| 87,534 |
|
| (523 | ) |
| (1 | )% | ||||
Basic earnings per share attributable toU.S. Cellular shareholders | $ | 2.34 |
| $ | 2.66 |
| $ | (0.32 | ) |
| (12 | )% | ||||
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Diluted weighted average shares outstanding |
| 87,216 |
|
| 87,908 |
|
| (692 | ) |
| (1 | )% | ||||
Diluted earnings per share attributable toU.S. Cellular shareholders | $ | 2.33 |
| $ | 2.65 |
| $ | (0.32 | ) |
| (12 | )% | ||||
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N/M - Percentage change not meaningful |
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United States Cellular Corporation Consolidated Balance Sheet Highlights (Unaudited, dollars in thousands) | ||||||
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ASSETS | ||||||
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| September 30, 2009 |
| December 31, 2008 | ||
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Current assets |
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| |
| Cash and cash equivalents | $ | 404,894 |
| $ | 170,996 |
| Accounts receivable from customers and other |
| 447,958 |
|
| 419,619 |
| Inventory |
| 121,073 |
|
| 116,564 |
| Prepaid income taxes |
| 4,793 |
|
| 22,515 |
| Prepaid expenses |
| 63,020 |
|
| 51,645 |
| Net deferred income tax asset |
| 19,481 |
|
| 19,481 |
| Other current assets |
| 53,101 |
|
| 14,227 |
|
|
| 1,114,320 |
|
| 815,047 |
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Investments |
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| |
| Licenses |
| 1,445,501 |
|
| 1,433,415 |
| Goodwill |
| 494,737 |
|
| 494,279 |
| Customer lists |
| 5,273 |
|
| 8,936 |
| Investments in unconsolidated entities |
| 177,497 |
|
| 156,637 |
| Notes and interest receivable – long-term |
| 4,247 |
|
| 4,297 |
|
|
| 2,127,255 |
|
| 2,097,564 |
|
|
|
|
|
|
|
Property, plant and equipment |
|
|
|
|
| |
| In service and under construction |
| 5,718,767 |
|
| 5,884,383 |
| Less: accumulated depreciation |
| 3,157,001 |
|
| 3,264,007 |
|
|
| 2,561,766 |
|
| 2,620,376 |
|
|
|
|
|
|
|
Other assets and deferred charges |
| 38,484 |
|
| 33,055 | |
|
|
|
|
|
|
|
Total assets | $ | 5,841,825 |
| $ | 5,566,042 |
7
United States Cellular Corporation Consolidated Balance Sheet Highlights (Unaudited, dollars in thousands) | |||||||||
|
|
|
|
|
|
|
| ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||
|
|
|
|
|
|
|
| ||
|
|
| September 30, 2009 |
| December 31, 2008 | ||||
|
|
|
| ||||||
Current liabilities |
|
|
|
|
| ||||
| Current portion of long-term debt | $ | 10,088 |
| $ | 10,258 | |||
| Accounts payable |
|
|
|
|
| |||
|
| Affiliated |
| 8,633 |
|
| 9,613 | ||
|
| Trade |
| 235,353 |
|
| 248,785 | ||
| Customer deposits and deferred revenues |
| 146,224 |
|
| 151,082 | |||
| Accrued taxes |
| 56,500 |
|
| 17,643 | |||
| Accrued compensation |
| 57,012 |
|
| 55,969 | |||
| Other current liabilities |
| 102,157 |
|
| 108,533 | |||
|
|
|
| 615,967 |
|
| 601,883 | ||
|
|
|
|
|
|
|
| ||
Deferred liabilities and credits |
|
|
|
|
| ||||
| Net deferred income tax liability |
| 518,245 |
|
| 478,106 | |||
| Other deferred liabilities and credits |
| 250,762 |
|
| 233,619 | |||
|
|
|
| 769,007 |
|
| 711,725 | ||
|
|
|
|
|
|
|
| ||
Long-term debt |
| 997,552 |
|
| 996,636 | ||||
|
|
|
|
|
|
|
| ||
Commitments and contingencies |
|
|
|
|
| ||||
|
|
|
|
|
|
|
| ||
Noncontrolling interests with mandatory redemption features |
| 708 |
|
| 589 | ||||
|
|
|
|
|
|
|
| ||
Equity |
|
|
|
|
| ||||
U.S. Cellular shareholders’ equity |
|
|
|
|
| ||||
| Common Shares, par value $1 per share |
| 55,068 |
|
| 55,068 | |||
| Series A Common Shares, par value $1 per share |
| 33,006 |
|
| 33,006 | |||
| Additional paid-in capital |
| 1,353,544 |
|
| 1,340,146 | |||
| Treasury shares |
| (63,912 | ) |
|
| (50,258 | ) | |
| Retained earnings |
| 2,020,710 |
|
| 1,828,680 | |||
|
| Total U.S. Cellular shareholders’ equity |
| 3,398,416 |
|
| 3,206,642 | ||
|
|
|
|
|
|
|
| ||
Noncontrolling interests |
| 60,175 |
|
| 48,567 | ||||
|
|
|
|
|
|
|
| ||
| Total equity |
| 3,458,591 |
|
| 3,255,209 | |||
|
|
|
|
|
|
|
| ||
Total liabilities and equity | $ | 5,841,825 |
| $ | 5,566,042 |
8
United States Cellular Corporation Consolidated Statement of Cash Flows Nine Months Ended September 30, (Unaudited, dollars in thousands) | ||||||||||
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
| ||
|
|
|
| 2009 |
| 2008 | ||||
Cash flows from operating activities |
|
|
|
|
| |||||
| Net income | $ | 221,171 |
| $ | 247,721 | ||||
| Add (deduct) adjustments to reconcile net income to net cash flows from operating activities |
|
|
|
|
| ||||
|
|
| Depreciation, amortization and accretion |
| 423,851 |
|
| 433,222 | ||
|
|
| Bad debts expense |
| 73,100 |
|
| 52,753 | ||
|
|
| Stock-based compensation expense |
| 13,000 |
|
| 11,293 | ||
|
|
| Deferred income taxes, net |
| 44,429 |
|
| 44,486 | ||
|
|
| Equity in earnings of unconsolidated entities |
| (73,247 | ) |
|
| (66,361 | ) |
|
|
| Distributions from unconsolidated entities |
| 51,306 |
|
| 50,859 | ||
|
|
| Gain on disposition of investments |
| — |
|
| (16,628 | ) | |
|
|
| Loss on asset disposals, net |
| 7,648 |
|
| 16,776 | ||
|
|
| Excess tax benefit from stock awards |
| (4 | ) |
|
| (1,018 | ) |
|
|
| Other noncash expense |
| 1,828 |
|
| 1,539 | ||
| Changes in assets and liabilities from operations |
|
|
|
|
| ||||
|
|
| Accounts receivable |
| (101,263 | ) |
|
| (71,551 | ) |
|
|
| Inventory |
| (4,509 | ) |
|
| (11,552 | ) |
|
|
| Accounts payable - trade |
| (13,432 | ) |
|
| 11,383 | |
|
|
| Accounts payable - affiliate |
| (980 | ) |
|
| 134 | |
|
|
| Customer deposits and deferred revenues |
| (4,858 | ) |
|
| 9,534 | |
|
|
| Accrued taxes |
| 58,139 |
|
| (1,724 | ) | |
|
|
| Accrued interest |
| 9,787 |
|
| 9,787 | ||
|
|
| Other assets and liabilities |
| (68,272 | ) |
|
| (24,073 | ) |
|
|
|
|
| 637,694 |
|
| 696,580 | ||
Cash flows from investing activities |
|
|
|
|
| |||||
| Additions to property, plant and equipment |
| (357,770 | ) |
|
| (395,637 | ) | ||
| Proceeds from disposition of investments |
| — |
|
| 16,690 | ||||
| Cash received from divestitures |
| 50 |
|
| 6,838 | ||||
| Cash paid for acquisitions and licenses |
| (12,527 | ) |
|
| (314,730 | ) | ||
| Other investing activities |
| 1,357 |
|
| (1,255 | ) | |||
|
|
|
|
| (368,890 | ) |
|
| (688,094 | ) |
Cash flows from financing activities |
|
|
|
|
| |||||
| Issuance of notes payable |
| — |
|
| 100,000 | ||||
| Repayment of notes payable |
| — |
|
| (100,000 | ) | |||
| Common shares reissued for benefit plans, net of tax payments |
| (119 | ) |
|
| (1,286 | ) | ||
| Common shares repurchased |
| (24,283 | ) |
|
| (23,146 | ) | ||
| Excess tax benefit from stock awards |
| 4 |
|
| 1,018 | ||||
| Payment of debt issuance costs |
| (4,416 | ) |
|
| — | |||
| Distributions to noncontrolling interests |
| (5,856 | ) |
|
| (9,146 | ) | ||
| Other financing activities |
| (236 | ) |
|
| (2,851 | ) | ||
|
|
|
|
| (34,906 | ) |
|
| (35,411 | ) |
|
|
|
|
|
|
|
|
| ||
Net increase (decrease) in cash and cash equivalents |
| 233,898 |
|
| (26,925 | ) | ||||
|
|
|
|
|
|
|
|
| ||
Cash and cash equivalents |
|
|
|
|
| |||||
| Beginning of period |
| 170,996 |
|
| 204,533 | ||||
| End of period | $ | 404,894 |
| $ | 177,608 |
9