EX-12 2 a06-1371_1ex12.htm STATEMENTS REGARDING COMPUTATION OF RATIOS

Exhibit 12

 

UNITED STATES CELLULAR CORPORATION

RATIO OF EARNINGS TO FIXED CHARGES

For the Year Ended December 31,

(Dollars in Thousands)

 

 

 

2004
(As Restated)

 

2003
(As Restated)

 

2002
(As Restated)

 

2001
(As Restated)

 

2000
(As Restated)

 

EARNINGS:

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes and minority interest

 

$

194,825

 

$

94,836

 

$

(13,666

)

$

330,941

 

$

372,924

 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

Earnings on equity method investments

 

(63,758

)

(51,088

)

(42,192

)

(42,586

)

(40,499

)

Distributions from unconsolidated entities

 

46,530

 

44,833

 

28,881

 

14,813

 

20,582

 

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

 

(11,668

)

(13,859

)

(16,649

)

(10,388

)

(7,909

)

 

 

165,929

 

74,722

 

(43,626

)

292,780

 

345,098

 

Add fixed charges:

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

86,241

 

64,607

 

47,878

 

35,164

 

36,608

 

Interest portion (1/3) of consolidated rent expense

 

24,448

 

21,051

 

16,582

 

13,824

 

11,170

 

 

 

$

276,618

 

$

160,380

 

$

20,834

 

$

341,768

 

$

392,876

 

FIXED CHARGES:

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

$

86,241

 

$

64,607

 

$

47,878

 

$

35,164

 

$

36,608

 

Interest portion (1/3) of consolidated rent expense

 

24,448

 

21,051

 

16,582

 

13,824

 

11,170

 

 

 

$

110,689

 

$

85,658

 

$

64,460

 

$

48,988

 

$

47,778

 

RATIO OF EARNINGS TO FIXED CHARGES

 

2.50

 

1.87

 

—

(a)

6.98

 

8.22

 

Tax-effected preferred dividends

 

$

—

 

$

25

 

$

70

 

$

124

 

$

121

 

Fixed charges

 

110,689

 

85,658

 

64,460

 

48,988

 

47,778

 

Fixed charges and preferred dividends

 

$

110,689

 

$

85,683

 

$

64,530

 

$

49,112

 

$

47,899

 

RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS

 

2.50

 

1.87

 

—

(a)

6.96

 

8.20

 

 

(a)                                  Earnings for the year ended December 31, 2002 were insufficient to cover fixed charges by $43.6 million and fixed charges and preferred dividends by $43.7 million. In the year ended December 31, 2002, U.S. Cellular recognized a pre-tax loss on marketable securities and other investments of $295.5 million as a result of management’s determination that unrealized losses with respect to the investments were other than temporary and the write-down of other assets.