EX-12 2 a06-12109_2ex12.htm EX-12

Exhibit 12

UNITED STATES CELLULAR CORPORATION
RATIO OF EARNINGS TO FIXED CHARGES
For the Year Ended December 31,
(Dollars in Thousands)

 

 

2005

 

2004

 

2003

 

2002

 

2001

 

EARNINGS:

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes and minority interest

 

$

234,260

 

$

194,825

 

$

94,836

 

$

(13,666

)

$

330,941

 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

Earnings on equity method investments

 

(68,433

)

(63,758

)

(51,088

)

(42,192

)

(42,586

)

Distributions from unconsolidated entities

 

52,523

 

46,530

 

44,833

 

28,881

 

14,813

 

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

 

(11,910

)

(11,668

)

(13,859

)

(16,649

)

(10,388

)

 

 

206,440

 

165,929

 

74,722

 

(43,626

)

292,780

 

Add fixed charges:

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

84,867

 

86,241

 

64,607

 

47,878

 

35,164

 

Interest portion (1/3) of consolidated rent expense

 

26,023

 

24,448

 

21,051

 

16,582

 

13,824

 

 

 

$

317,330

 

$

276,618

 

$

160,380

 

$

20,834

 

$

341,768

 

FIXED CHARGES:

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

$

84,867

 

$

86,241

 

$

64,607

 

$

47,878

 

$

35,164

 

Interest portion (1/3) of consolidated rent expense

 

26,023

 

24,448

 

21,051

 

16,582

 

13,824

 

 

 

$

110,890

 

$

110,689

 

$

85,658

 

$

64,460

 

$

48,988

 

RATIO OF EARNINGS TO FIXED CHARGES

 

2.86

 

2.50

 

1.87

 

—

(a)

6.98

 

Tax-effected preferred dividends

 

$

—

 

$

—

 

$

25

 

$

70

 

$

124

 

Fixed charges

 

110,890

 

110,689

 

85,658

 

64,460

 

48,988

 

Fixed charges and preferred dividends

 

$

110,890

 

$

110,689

 

$

85,683

 

$

64,530

 

$

49,112

 

RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS

 

2.86

 

2.50

 

1.87

 

—

(a)

6.96

 

(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.