EX-12 2 a08-11698_1ex12.htm EX-12

Exhibit 12

 

TELEPHONE AND DATA SYSTEMS, INC.

 

RATIO OF EARNINGS TO FIXED CHARGES

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2008

 

2007

 

 

 

(Dollars in Thousands)

 

EARNINGS:

 

 

 

 

 

Income before income taxes and minority interest

 

$

139,756

 

$

378,534

 

Add (deduct):

 

 

 

 

 

Equity in earnings of unconsolidated entities

 

(21,470

)

(23,696

)

Distributions from unconsolidated entities

 

7,047

 

2,321

 

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

 

(5,160

)

(4,465

)

 

 

120,173

 

352,694

 

 

 

 

 

 

 

Add fixed charges:

 

 

 

 

 

Consolidated interest expense (1)

 

41,380

 

57,801

 

Interest portion (1/3) of consolidated rent expense

 

12,080

 

11,321

 

 

 

 

 

 

 

 

 

$

173,633

 

$

421,816

 

 

 

 

 

 

 

FIXED CHARGES:

 

 

 

 

 

Consolidated interest expense(1)

 

$

41,380

 

$

57,801

 

Capitalized interest

 

293

 

162

 

Interest portion (1/3) of consolidated rent expense

 

12,080

 

11,321

 

 

 

$

53,753

 

$

69,284

 

 

 

 

 

 

 

RATIO OF EARNINGS TO FIXED CHARGES

 

3.23

 

6.09

 

 

 

 

 

 

 

Tax-effected preferred dividends

 

$

22

 

$

21

 

Fixed charges

 

53,753

 

69,284

 

Fixed charges and preferred dividends

 

$

53,775

 

$

69,305

 

 

 

 

 

 

 

RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS

 

3.23

 

6.09

 

 

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