Reconciliation of NON-GAAP Financial Measures
The following table reconciles total costs used in the calculation of CPGA to selling and marketing expense, which we consider to be the most directly comparable GAAP financial measure to CPGA.
Year Ended December 31,
| (In thousands, except gross customer additions and CPGA) | 2008 | 2007 | 2006 | |||
|---|---|---|---|---|---|---|
| Selling and marketing expense | $ | 294,917 | $ | 206,213 | $ | 159,257 |
| Less share-based compensation expense included in selling and marketing expense | (4,580) | (3,330) | (1,970) | |||
| Plus cost of equipment | 465,422 | 405,997 | 310,834 | |||
| Less equipment revenue | (249,761) | (235,136) | (210,822) | |||
| Less net loss on equipment transactions unrelated to initial customer acquisition | (42,174) | (17,866) | (8,196) | |||
| Total costs used in the calculation of CPGA | $ | 463,824 | $ | 355,878 | $ | 249,103 |
| Gross customer additions | 2,487,579 | 1,974,504 | 1,455,810 | |||
| CPGA | $ | 186 | $ | 180 | $ | 171 |
The following table reconciles total costs used in the calculation of CCU to cost of service, which we consider to be the most directly comparable GAAP financial measure to CCU.
Year Ended December 31,
| (In thousands, except gross customer additions and CPGA) | 2008 | 2007 | 2006 | |||
|---|---|---|---|---|---|---|
| Cost of service | $ | 488,298 | $ | 384,128 | $ | 264,162 |
| Plus general and administrative expense | 331,691 | 271,536 | 196,604 | |||
| Less share-based compensation expense included in cost of service and general and administrative expense | (30,635) | (26,009) | (17,755) | |||
| Plus net loss on equipment transactions unrelated to initial customer acquisition | 42,174 | 17,866 | 8,196 | |||
| Total costs used in the calculation of CCU | $ | 831,528 | $ | 647,521 | $ | 451,207 |
| Weighted-average number of customers | 3,272,347 | 2,589,312 | 1,861,477 | |||
| CCU | $ | 21.18 | $ | 20.84 | $ | 20.20 |
Calculated contribution per user per month is calculated as follows:
Year Ended December 31,
| 2008 | 2007 | 2006 | ||||
|---|---|---|---|---|---|---|
| ARPU | $ | 43.52 | $ | 44.92 | $ | 42.81 |
| Less CCU | (21.18) | (20.84) | (20.20) | |||
| Less CPGA times churn ($186 x 4.0%), ($180 x 4.3%) and ($171 x 3.9%) | (7.44) | (7.74) | (6.67) | |||
| Calculated contribution per user per month | $ | 14.90 | $ | 16.34 | $ | 15.94 |
The following table reconciles Adjusted OIBDA and Existing Business Adjusted OIBDA to operating income, which we consider to be the most directly comparable GAAP financial measure to Adjusted OIBDA and Existing Business Adjusted OIBDA.
Year Ended December 31,
| (In thousands) | 2008 | 2007 | 2006 | |||
|---|---|---|---|---|---|---|
| Operating income | $ | 46,700 | $ | 60,262 | $ | 23,725 |
| Plus depreciation and amortization | 331,448 | 302,201 | 226,747 | |||
| OIBDA | 378,148 | 362,463 | 250,472 | |||
| Less equipment revenue | 209 | (902) | (22,054) | |||
| Plus impairment of assets | 177 | 1,368 | 7,912 | |||
| Plus share-based compensation expense | 35,215 | 29,339 | 19,725 | |||
| Adjusted OIBDA | 413,749 | 392,268 | 256,055 | |||
| Plus net operating expense attributable to new markets included in total operating expenses | 114,911 | — | — | |||
| Plus net operating expense attributable to broadband included in total operating expenses | 57,120 | — | — | |||
| Existing Business Adjusted OIBDA | $ | 585,780 | $ | 392,268 | $ | 256,055 |