EX-12 2 a06-25501_3ex12.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

 

 

 

(As
Restated)

 

(As
Restated)

 

(As
Restated)

 

(As
Restated)

 

 

 

EARNINGS:

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes and minority interest

 

$

261,347

 

$

159,469

 

$

44,831

 

$

(31,577

)

$

330,941

 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of unconsolidated entities

 

(66,719

)

(64,161

)

(50,425

)

(42,192

)

(42,586

)

Distributions from unconsolidated entities

 

52,112

 

46,385

 

44,940

 

28,881

 

14,813

 

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

 

(12,478

)

(12,625

)

(13,859

)

(16,649

)

(10,388

)

 

 

234,262

 

129,068

 

25,487

 

(61,537

)

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

 

30,142

 

26,938

 

21,051

 

16,582

 

13,824

 

 

 

$

349,271

 

$

242,247

 

$

111,145

 

$

2,923

 

$

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

 

30,142

 

26,938

 

21,051

 

16,582

 

13,824

 

 

 

$

115,009

 

$

113,179

 

$

85,658

 

$

64,460

 

$

48,988

 

RATIO OF EARNINGS TO FIXED CHARGES

 

3.04

 

2.14

 

1.30

 

—

(a)

6.98

 

Tax-effected preferred dividends

 

$

—

 

$

—

 

$

25

 

$

70

 

$

124

 

Fixed charges

 

115,009

 

113,179

 

85,658

 

64,460

 

48,988

 

Fixed charges and preferred dividends

 

$

115,009

 

$

113,179

 

$

85,683

 

$

64,530

 

$

49,112

 

RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS

 

3.04

 

2.14

 

1.30

 

—

(a)

6.96

 

 

(a)                                  Earnings for the year ended December 31, 2002 were insufficient to cover fixed charges by $61.5 million and fixed charges and preferred dividends by $61.6 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. U.S. Cellular also recognized a pre-tax fair value adjustment related to derivative instruments of $13.2 million in the restatement for the year ended December 31, 2002.