EX-12 2 a2182847zex-12.htm EX-12

Exhibit 12

 

TELEPHONE AND DATA SYSTEMS, INC.

RATIOS OF EARNINGS TO FIXED CHARGES

For the Year Ended December 31,

(Dollars in Thousands)

 

 

 

2007

 

2006

 

2005

 

2004

 

2003

 

EARNINGS:

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes and minority interest

 

$

685,450

 

$

323,338

 

$

1,107,135

 

$

(392,884

)

$

(527,591

)

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

Earnings on equity method investments

 

(91,831

)

(95,170

)

(68,039

)

(65,303

)

(51,516

)

Distributions from unconsolidated entities

 

87,404

 

78,248

 

52,624

 

49,088

 

45,534

 

Minority interest in pre-tax income of subsidiaries that do not have fixed charges

 

(20,265

)

(13,571

)

(9,631

)

(10,682

)

(11,830

)

 

 

660,758

 

292,845

 

1,082,089

 

(419,781

)

(545,403

)

Add fixed charges:

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense (1)

 

208,736

 

234,543

 

216,021

 

198,706

 

188,069

 

Interest portion (1/3) of consolidated rent expense

 

45,451

 

42,187

 

40,919

 

37,207

 

29,620

 

 

 

$

914,945

 

$

569,575

 

$

1,339,029

 

$

(183,868

)

$

(327,714

)

FIXED CHARGES:

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense (1)

 

$

208,736

 

$

234,543

 

$

216,021

 

$

198,706

 

$

188,069

 

Capitalized interest

 

811

 

494

 

—

 

—

 

—

 

Interest portion (1/3) of consolidated rent expense

 

45,451

 

42,187

 

40,919

 

37,207

 

29,620

 

 

 

$

254,998

 

$

277,224

 

$

256,940

 

$

235,913

 

$

217,689

 

RATIO OF EARNINGS TO FIXED CHARGES

 

3.59

 

2.05

 

5.21

 

—

(a)

—

(b)

Tax-effected preferred dividends

 

$

88

 

$

259

 

$

312

 

$

255

 

$

705

 

Fixed charges

 

254,998

 

277,224

 

256,940

 

235,913

 

217,689

 

Fixed charges and preferred dividends

 

$

255,086

 

$

277,483

 

$

257,252

 

$

236,168

 

$

218,394

 

RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS

 

3.59

 

2.05

 

5.21

 

—

(a)

—

(b)

 

(a)          Earnings for the year ended December 31, 2004 were insufficient to cover fixed charges by $419.8 million and fixed charges and preferred dividends of $420.0 million.  TDS recognized a pre-tax $519.0 million loss on a fair value adjustment related to derivative instruments for the year ended December 31, 2004.

 

(b)         Earnings for the year ended December 31, 2003 were insufficient to cover fixed charges by $545.4 million and fixed charges and preferred dividends by $546.1 million.  TDS recognized a pre-tax $297.1 million loss on a fair value adjustment related to derivative instruments for the year ended December 31, 2003.

 

(1)          Interest expense on income tax contingencies is not included in fixed charges.