Telephone and Data Systems, Inc. Telephone and Data Systems, Inc. Annual Report 2001 66 Telephone and Data Systems, Inc. Annual Report 2001 67 Eleven-Year Summary of Earnings Eleven-Year Summary of Earnings Year Ended December 31, 2001 2000 1999 1998 (Dollars in thousands, except per share amounts) Operating Revenues U.S. Cellular $ 1,894,830 $ 1,716,640 $1,576,429 $ 1,315,535 TDS Telecom 693,712 610,216 545,917 488,104 2,588,542 2,326,856 2,122,346 1,803,639 Operating Expenses U.S. Cellular 1,577,618 1,424,327 1,320,587 1,139,460 TDS Telecom 574,769 482,463 431,366 393,692 2,152,387 1,906,790 1,751,953 1,533,152 Operating Income from Ongoing Operations 436,155 420,066 370,393 270,487 American Paging Operating (Loss) — — — (11,406) Operating Income  436,155 420,066 370,393 259,081 Investment and Other Income (Expense) Interest and dividend income 14,246 15,637 8,708 10,070 Investment income 50,639 38,723 31,324 40,774 Amortization of costs related to minority investments (1,263) (10,258) (12,927) (11,395) Gain (loss) on marketable securities and other investments  (548,305) 15,716 345,938 262,698 Other (expense) income, net 5,048 (8,082) (11,198) (35,435) (479,635) 51,736 361,845 266,712 Income (Loss) Before Interest and Income Taxes (43,480) 471,802 732,238 525,793 Interest expense 103,710 100,559 99,984 108,371 Minority interest in income of subsidiary trust 24,810 24,810 24,810 23,504 Income (Loss) From Continuing Operations Before Income Taxes (172,000) 346,433 607,444 393,918 Income tax expense (benefit) (44,908) 149,481 251,001 161,235 Income (Loss) Before Minority Interest (127,092) 196,952 356,443 232,683 Minority share of (income) loss  (41,156) (51,425) (65,117) (47,461) Income (Loss) From Continuing Operations (168,248) 145,527 291,326 185,222 Discontinued Operations, net of tax (24,092) 2,125,787 (111,492) (106,965) Income (Loss) Before Extraordinary Item and Cumulative Effect of Accounting Changes (192,340) 2,271,314 179,834 78,257 Extraordinary Item (5,715) (30,471) — — Cumulative Effect of Accounting Changes — (3,841) — — Net Income (Loss) (198,055) 2,237,002 179,834 78,257 Preferred Dividend Requirement (458) (504) (1,147) (1,651) Net Income (Loss) Available to Common $ (198,513) $ 2,236,498 $ 178,687 $ 76,606 Basic Weighted Average Shares Outstanding (000s) 58,661 59,922 61,436 60,982 Basic Earnings per Share Net Income (Loss) from Continuing Operations $ (2.87) $ 2.42 $ 4.72 $ 3.01 Net Income (Loss) $ (3.38) $ 37.32 $ 2.91 $ 1.26 Diluted Weighted Average Shares Outstanding (000’s) 58,661 60,636 62,376 61,937 Diluted Earnings per Share Continuing Operations Excluding Gains (Losses) $ 2.86 $ 2.54 $ 1.78 $ 0.97 Continuing Operations – Gains (Losses) (5.73) (0.15) 2.87 2.02 Net Income (Loss) from Continuing Operations $ (2.87) $ 2.39 $ 4.65 $ 2.99 Net Income (Loss) $ (3.38) $ 36.88 $ 2.87 $ 1.26 1997 1996 1995 1994 1993 1992 1991 (Dollars in thousands, except per share amounts) $ 993,124 $ 779,676 $ 552,795 $ 375,472 $ 243,293 $ 164,085 $ 96,564 437,624 395,059 354,841 306,341 268,122 238,095 211,232 1,430,748 1,174,735 907,636 681,813 511,415 402,180 307,796 863,581 692,310 510,040 358,087 251,949 176,790 113,395 337,481 292,410 256,601 214,735 189,012 165,878 145,990 1,201,062 984,720 766,641 572,822 440,961 342,668 259,385 229,686 190,015 140,995 108,991 70,454 59,512 48,411 (35,307) (36,626) (8,997) (169) (721) (5,447) (7,750 ) 194,379 153,389 131,998 108,822 69,733 54,065 40,661 11,526 14,418 12,975 10,610 8,082 7,708 8,100 83,668 58,759 43,188 30,083 20,015 13,265 9,404 (6,857) (4,878) (3,960) (3,262) (3,657) (3,969) (1,670 ) 41,438 136,152 86,625 7,457 4,970 31,396 3,407 (8,749) 911 (3,311) (1,284) (809) 2,198 2,392 121,026 205,362 135,517 43,604 28,601 50,598 21,633 315,405 358,751 267,515 152,426 98,334 104,663 62,294 92,010 65,343 62,850 41,251 37,466 32,610 28,993 1,523 — — — — — — 221,872 293,408 204,665 111,175 60,868 72,053 33,301 95,819 131,116 86,796 41,808 20,674 29,767 14,944 126,053 162,292 117,869 69,367 40,194 42,286 18,357 (34,722) (31,260) (25,896) (9,111) (475) (3,766) 2,756 91,331 131,032 91,973 60,256 39,719 38,520 21,113 (92,320) (8,515) 5,495 (525) — — — (989) 122,517 97,468 59,731 39,719 38,520 21,113 — — — — — (769) — — — — (723) — (6,866) (5,035 ) (989) 122,517 97,468 59,008 39,719 30,885 16,078 (1,892) (1,957) (2,509) (2,459) (2,386) (2,247) (1,716 ) $ (2,881) $ 120,560 $ 94,959 $ 56,549 $ 37,333 $ 28,638 $ 14,362 60,211 60,464 57,456 53,295 46,995 38,672 32,432 $ 1.49 $ 2.13 $ 1.56 $ 1.08 $ .79 $ .94 $ .60 $ (.05) $ 1.99 $ 1.65 $ 1.06 $ .79 $ .74 $ .44 60,837 61,201 58,681 54,468 47,315 39,316 32,997 $ 1.24 $ 1.17 $ 0.92 $ 0.97 $ 0.75 $ 0.58 $ 0.54 0.24 0.95 0.62 0.10 0.04 0.33 0.05 $ 1.48 $ 2.12 $ 1.54 $ 1.07 $ 0.79 $ 0.91 $ 0.59 $ (0.04) $ 1.98 $ 1.63 $ 1.05 $ 0.79 $ 0.72 $ 0.44