EX-12 4 a07-10583_1ex12.htm EX-12

Exhibit 12

UNITED STATES CELLULAR CORPORATION

RATIO OF EARNINGS TO FIXED CHARGES

For the Year Ended December 31,

(Dollars in Thousands)

 

 

2006

 

2005

 

2004

 

2003

 

2002

 

EARNINGS:

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes and minority interest

 

$

313,138

 

$

261,347

 

$

159,469

 

$

44,831

 

$

(31,577

)

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of unconsolidated entities

 

(93,119

)

(66,719

)

(64,161

)

(50,425

)

(42,192

)

Distributions from unconsolidated entities

 

77,835

 

52,112

 

46,385

 

44,940

 

28,881

 

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

 

(15,999

)

(12,478

)

(12,625

)

(13,846

)

(16,649

)

 

 

281,855

 

234,262

 

129,068

 

25,500

 

(61,537

)

Add fixed charges:

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

93,674

 

84,867

 

86,241

 

64,607

 

47,878

 

Interest portion (1/3) of consolidated rent expense

 

30,659

 

30,142

 

26,938

 

21,051

 

16,582

 

 

 

$

406,188

 

$

349,271

 

$

242,247

 

$

111,158

 

$

2,923

 

FIXED CHARGES:

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

$

93,674

 

$

84,867

 

$

86,241

 

$

64,607

 

$

47,878

 

Interest portion (1/3) of consolidated rent expense

 

30,659

 

30,142

 

26,938

 

21,051

 

16,582

 

 

 

$

124,333

 

$

115,009

 

$

113,179

 

$

85,658

 

$

64,460

 

RATIO OF EARNINGS TO FIXED CHARGES

 

3.27

 

3.04

 

2.14

 

1.30

 

—

(a)

Tax-effected preferred dividends

 

$

—

 

$

—

 

$

—

 

$

25

 

$

70

 

Fixed charges

 

124,333

 

115,009

 

113,179

 

85,658

 

64,460

 

Fixed charges and preferred dividends

 

$

124,333

 

$

115,009

 

$

113,179

 

$

85,683

 

$

64,530

 

RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS

 

3.27

 

3.04

 

2.14

 

1.30

 

—

(a)

 

(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.