EX-12 2 a2190855zex-12.htm EXHIBIT 12

Exhibit 12

 

UNITED STATES CELLULAR CORPORATION
RATIO OF EARNINGS TO FIXED CHARGES
For the Year Ended December 31

 

(Dollars in thousands)

 

2008

 

2007

 

2006

 

2005

 

2004

 

EARNINGS:

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes and minority interest(1)

 

$

66,128

 

$

546,501

 

$

313,138

 

$

261,347

 

$

159,469

 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of unconsolidated entities

 

(91,981

)

(90,033

)

(93,119

)

(66,719

)

(64,161

)

Distributions from unconsolidated entities

 

91,845

 

86,873

 

77,835

 

52,112

 

46,385

 

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

 

(26,131

)

(23,481

)

(15,999

)

(12,478

)

(12,625

)

 

 

$

39,861

 

$

519,860

 

$

281,855

 

$

234,262

 

$

129,068

 

Add fixed charges:

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense(2)

 

77,190

 

84,679

 

93,674

 

84,867

 

86,241

 

Interest portion (1/3) of consolidated rent expense

 

37,585

 

35,461

 

30,659

 

30,142

 

26,938

 

 

 

$

154,636

 

$

640,000

 

$

406,188

 

$

349,271

 

$

242,247

 

 

 

 

 

 

 

 

 

 

 

 

 

FIXED CHARGES:

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense(2)

 

77,190

 

$

84,679

 

$

93,674

 

$

84,867

 

$

86,241

 

Capitalized interest

 

2,805

 

—

 

—

 

—

 

—

 

Interest portion (1/3) of consolidated rent expense

 

37,585

 

35,461

 

30,659

 

30,142

 

26,938

 

 

 

$

117,580

 

$

120,140

 

$

124,333

 

$

115,009

 

$

113,179

 

 

 

 

 

 

 

 

 

 

 

 

 

RATIO OF EARNINGS TO FIXED CHARGES

 

1.32

 

5.33

 

3.27

 

3.04

 

2.14

 

 

(1)     Includes non-cash charges related to losses on impairments as follows: 2008: $386.7 million; 2007: $24.9 million; 2004: $1.8 million.

 

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