text: Depreciation and amortization expense was $14.5 million, an increase of $3.2 million or 28.6%. The PCS operation had 
  depreciation expense of $8.6 million, an increase of $3.6 million or 72.7%. The PCS operation added 53 additional base 
  stations during 2002. 
  
  Selling, general and administrative expenses were $26.1 million, an increase of $9.3 million or 55.0%. Customer 
  support costs were $7.8 million, an increase of $2.8 million or 55.3%. The growth in Sprint wireless subscribers was 
  the primary driver for this increase. Advertising expense was $4.3 million, an increase of $1.5 million or 55.8%. This 
  change was primarily due to the stepped-up and ongoing marketing efforts to support the PCS operations in the Quad 
  State market and particularly the Central Penn market. PCS sales staff expenses were $2.7 million, an increase of $0.7 
  million or 32.7%. The increase was principally due to the full year operations of the three retail locations and adding 
  additional sales staff. 
  
  sm 
  
  The Company experienced significant bad debt losses in its PCS operations related to the Sprint Clear PaySM program. 
  The program was initially targeted at customers in sub-prime credit classes and did not require a deposit upon 
  activation of service. As a result of default rates that exceeded projections, the Company experienced a substantial 
  increase in bad debt expense, which rose from $1.2 million in 2001 to $4.4 million in 2002. The reinstatement of 
  deposit requirements in April 2002 caused some moderation in bad debt expense by the end of the year. Total PCS 
  bade debt expense for 2002 was $3.7 million of this expense is associated with several large telecommunications 
  customers who filed bankruptcies in 2002. 
  
  program. 