EX-12 2 a07-26055_1ex12.htm EX-12

Exhibit 12

 

TELEPHONE AND DATA SYSTEMS, INC.

 

RATIOS OF EARNINGS TO FIXED CHARGES

 

 

 

Nine Months Ended
September 30,

 

 

 

2007

 

2006

 

 

 

(Dollars in thousands)

 

EARNINGS:

 

 

 

 

 

Income before income taxes and minority interest

 

$

747,260

 

$

496,522

 

Add (deduct):

 

 

 

 

 

Equity in earnings of unconsolidated entities

 

(71,394

)

(66,376

)

Distributions from unconsolidated entities

 

47,871

 

39,692

 

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

 

(12,024

)

(10,130

)

 

 

$

711,713

 

$

459,708

 

Add fixed charges:

 

 

 

 

 

Consolidated interest expense (1)

 

162,776

 

177,185

 

Interest portion (1/3) of consolidated rent expense

 

34,473

 

30,840

 

 

 

$

908,962

 

$

667,733

 

 

 

 

 

 

 

FIXED CHARGES:

 

 

 

 

 

Consolidated interest expense (1)

 

$

162,776

 

$

177,185

 

Capitalized interest

 

582

 

—

 

Interest portion (1/3) of consolidated rent expense

 

34,473

 

30,840

 

 

 

$

197,831

 

$

208,025

 

 

 

 

 

 

 

RATIO OF EARNINGS TO FIXED CHARGES

 

4.59

 

3.21

 

 

 

 

 

 

 

Tax-effected preferred dividends

 

$

65

 

$

245

 

Fixed charges

 

197,831

 

208,025

 

Fixed charges and preferred dividends

 

$

197,896

 

$

208,270

 

 

 

 

 

 

 

RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS

 

4.59

 

3.21

 

 

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