EX-12 3 a07-16206_1ex12.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)

 

 

 

2006

 

2005
(As Restated)

 

2004

 

2003
(As Restated)

 

2002
(As Restated)

 

EARNINGS:

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes and minority Interest

 

$

323,338

 

$

1,107,135

 

$

(392,884

)

$

(527,591

)

$

(1,574,565

)

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

Earnings on equity method investments

 

(95,170

)

(68,039

)

(65,303

)

(51,516

)

(43,799

)

Distributions from unconsolidated entities

 

78,248

 

52,624

 

49,088

 

45,534

 

31,328

 

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

 

(13,571

)

(9,631

)

(10,682

)

(11,830

)

(15,940

)

 

 

292,845

 

1,082,089

 

(419,781

)

(545,403

)

(1,602,976

)

 

 

 

 

 

 

 

 

 

 

 

 

Add fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 Consolidated interest expense

 

234,543

 

216,021

 

198,706

 

188,069

 

157,034

 

 Interest portion (1/3) of consolidated rent expense

 

42,187

 

40,919

 

37,207

 

29,620

 

28,696

 

 

 

$

569,575

 

$

1,339,029

 

$

(183,868

)

$

(327,714

)

$

(1,417,246

)

 

 

 

 

 

 

 

 

 

 

 

 

FIXED CHARGES:

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

$

234,543

 

$

216,021

 

$

198,706

 

$

188,069

 

$

157,034

 

Capitalized interest

 

494

 

—

 

—

 

—

 

—

 

Interest portion (1/3) of consolidated rent expense

 

42,187

 

40,919

 

37,207

 

29,620

 

28,696

 

 

 

$

277,224

 

$

256,940

 

$

235,913

 

$

217,689

 

$

185,730

 

RATIO OF EARNINGS TO FIXED CHARGES

 

2.05

 

5.21

 

—

(a)

—

(b)

—

(c)

Tax-effected preferred dividends

 

$

259

 

$

312

 

$

255

 

$

705

 

$

665

 

Fixed charges

 

277,224

 

256,940

 

235,913

 

217,689

 

185,730

 

Fixed charges and preferred dividends

 

$

277,483

 

$

257,252

 

$

236,168

 

$

218,394

 

$

186,395

 

RATIO OF EARNINGS TO FIXED CHARGES AND

 

 

 

 

 

 

 

 

 

 

 

 PREFERRED DIVIDENDS

 

2.05

 

5.21

 

—

(a)

—

(b)

—

(c)

(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.

(c)          Earnings for the year ended December 31, 2002 were insufficient to cover fixed charges by $1,603.0 million and fixed charges and preferred dividends by $1,603.8 million. In the year ended December 31, 2002, TDS recognized a pre-tax loss on marketable securities and other investments of $1,888.4 million as a result of management’s determination that unrealized losses with respect to the investments were other than temporary and the write-off of a note receivable.