EX-12 8 a2196626zex-12.htm EXHIBIT 12

Exhibit 12

 

TELEPHONE AND DATA SYSTEMS, INC.

RATIO OF EARNINGS TO FIXED CHARGES

For the Year Ended December 31,

 

(Dollars in thousands)

 

2009

 

2008

 

2007

 

2006

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes(1)

 

$

387,102

 

$

153,006

 

$

685,450

 

$

323,338

 

$

1,107,135

 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of unconsolidated entities

 

(90,732

)

(89,812

)

(91,831

)

(95,170

)

(68,039

)

Distributions from unconsolidated entities

 

91,587

 

92,335

 

87,404

 

78,248

 

52,624

 

Amortization of capitalized interest

 

497

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Income attributable to noncontrolling interests in subsidiaries that do not have fixed charges

 

(20,333

)

(23,955

)

(20,408

)

(13,571

)

(9,631

)

 

 

368,121

 

131,574

 

660,615

 

292,845

 

1,082,089

 

Add fixed charges:

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense (2)

 

124,557

 

137,899

 

208,736

 

234,543

 

216,021

 

Interest portion (1/3) of consolidated rent
expense

 

47,383

 

46,752

 

45,451

 

42,187

 

40,919

 

 

 

$

540,061

 

$

316,225

 

$

914,802

 

$

569,575

 

$

1,339,029

 

FIXED CHARGES:

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense (2)

 

$

124,557

 

$

137,899

 

$

208,736

 

$

234,543

 

$

216,021

 

Capitalized interest

 

3,850

 

4,162

 

811

 

494

 

—

 

Interest portion (1/3) of consolidated rent
expense

 

47,383

 

46,752

 

45,451

 

42,187

 

40,919

 

 

 

$

175,790

 

$

188,813

 

$

254,998

 

$

277,224

 

$

256,940

 

RATIO OF EARNINGS TO FIXED CHARGES

 

3.07

 

1.67

 

3.59

 

2.05

 

5.21

 

Tax-effected preferred dividends

 

$

78

 

$

82

 

$

88

 

$

259

 

$

312

 

Fixed charges

 

175,790

 

188,813

 

254,998

 

277,224

 

256,940

 

Fixed charges and preferred dividends

 

$

175,868

 

$

188,895

 

$

255,086

 

$

277,483

 

$

257,252

 

RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS

 

3.07

 

1.67

 

3.59

 

2.05

 

5.21

 

 

(1)          Includes non-cash charges related to losses on impairment as follows: 2009: $14.0 million; 2008: $414.4 million; 2007: $24.9 million.

 

Includes gain (loss) on investments and financial instruments as follows: 2008: $31.6 million; 2007: $81.4 million; 2006: $(137.7) million; 2005: $727.5 million.

 

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

 

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