Consolidated Statements of Operations The accompanying notes to consolidated financial statements are an integral part of these statements. Year Ended December 31, 2003 2002 2001 (as restated) (as restated) (Dollars in thousands, except per share amounts) Operating Revenues Service $2,423,789 $2,098,893 $1,826,385 Equipment sales 158,994 98,693 68,445 Total Operating Revenues 2,582,783 2,197,586 1,894,830 Operating Expenses System operations (excluding Depreciation shown separately below) 576,159 492,750 421,114 Cost of equipment sold 355,150 242,523 166,759 Selling, general and administrative 1,004,655 829,993 689,087 Depreciation 374,769 311,993 237,346 Amortization and accretion 57,564 39,161 63,312 Loss on impairment of intangible assets 49,595 — — Loss on assets held for sale 45,908 — — Total Operating Expenses 2,463,800 1,916,420 1,577,618 Operating Income 118,983 281,166 317,212 Investment and Other Income (Expense) Investment income 52,063 42,068 41,934 Interest income 1,560 4,411 10,300 Other income, net 3,351 3,299 4,011 Loss on marketable equity securities and other investments (5,200) (295,454) — Loss on extinguishment of debt — — (6,956) Interest (expense) (64,607) (47,878) (35,164) Total Investment and Other Income (Expense) (12,833) (293,554) 14,125 Income (Loss) Before Income Taxes and Minority Interest 106,150 (12,388) 331,337 Income tax expense (benefit) 37,232 (7,541) 147,315 Income (Loss) Before Minority Interest 68,918 (4,847) 184,022 Minority share of income (11,912) (13,538) (10,146) Income (Loss) Before Cumulative Effect of Accounting Change 57,006 (18,385) 173,876 Cumulative effect of accounting change, net of tax (14,346) (8,560) — Net Income (Loss) $ 42,660 $( 26,945) $ 173,876 Basic Weighted Average Shares Outstanding (000s) 86,136 86,086 86,200 Basic Earnings per Share Income (Loss) Before Cumulative Effect of Accounting Change $ 0.67 $ (0.22) $ 2.02 Cumulative Effect of Accounting Change (0.17) (0.09) — Net Income (Loss) $ 0.50 $ (0.31) $ 2.02 Diluted Weighted Average Shares Outstanding (000s) 86,602 86,086 89,977 Diluted Earnings per Share Income (Loss) Before Cumulative Effect of Accounting Change $ 0.66 $ (0.22) $ 1.99 Cumulative Effect of Accounting Change (0.17) (0.09) — Net Income (Loss) $ 0.49 $ (0.31) $ 1.99 40