Exhibit 12
TELEPHONE AND DATA SYSTEMS, INC.
RATIO OF EARNINGS TO FIXED CHARGES
For the Year Ended December 31,
(Dollars in thousands) |
| 2010 |
| 2009 |
| 2008 |
| 2007 |
| 2006 |
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EARNINGS: |
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Income before income taxes (1) |
| $ | 281,265 |
| $ | 380,909 |
| $ | 152,194 |
| $ | 669,510 |
| $ | 320,715 |
|
Add (deduct): |
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Equity in earnings of unconsolidated entities |
| (98,074 | ) | (90,732 | ) | (89,812 | ) | (91,831 | ) | (95,170 | ) | |||||
Distributions from unconsolidated entities |
| 100,845 |
| 91,587 |
| 92,335 |
| 87,404 |
| 78,248 |
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Amortization of capitalized interest |
| 867 |
| 497 |
| — |
| — |
| — |
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Income attributable to noncontrolling interests in subsidiaries that do not have fixed charges |
| (21,938 | ) | (20,333 | ) | (23,955 | ) | (20,408 | ) | (13,571 | ) | |||||
|
| 262,965 |
| 361,928 |
| 130,762 |
| 644,675 |
| 290,222 |
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Add fixed charges: |
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Consolidated interest expense (2) |
| 115,220 |
| 126,209 |
| 139,304 |
| 209,525 |
| 234,929 |
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Interest portion (1/3) of consolidated rent expense |
| 51,244 |
| 49,553 |
| 46,420 |
| 45,198 |
| 41,977 |
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|
| $ | 429,429 |
| $ | 537,690 |
| $ | 316,486 |
| $ | 899,398 |
| $ | 567,128 |
|
FIXED CHARGES: |
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Consolidated interest expense (2) |
| $ | 115,220 |
| $ | 126,209 |
| $ | 139,304 |
| $ | 209,525 |
| $ | 234,929 |
|
Capitalized interest |
| 4,825 |
| 3,850 |
| 4,162 |
| 811 |
| 494 |
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Interest portion (1/3) of consolidated rent expense |
| 51,244 |
| 49,553 |
| 46,420 |
| 45,198 |
| 41,977 |
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|
| $ | 171,289 |
| $ | 179,612 |
| $ | 189,886 |
| $ | 255,534 |
| $ | 277,400 |
|
RATIO OF EARNINGS TO FIXED CHARGES |
| 2.51 |
| 2.99 |
| 1.67 |
| 3.52 |
| 2.04 |
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Tax-effected preferred dividends |
| $ | 74 |
| $ | 78 |
| $ | 82 |
| $ | 88 |
| $ | 259 |
|
Fixed charges |
| 171,289 |
| 179,612 |
| 189,886 |
| 255,534 |
| 277,400 |
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Fixed charges and preferred dividends |
| $ | 171,363 |
| $ | 179,690 |
| $ | 189,968 |
| $ | 255,622 |
| $ | 277,659 |
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RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS |
| 2.51 |
| 2.99 |
| 1.67 |
| 3.52 |
| 2.04 |
|
(1) Includes non-cash charges related to losses on impairment as follows: 2009: $14.0 million; 2008: $414.4 million; 2007: $24.9 million.
Includes gain (loss) on investments and financial instruments as follows: 2008: $31.6 million; 2007: $81.4 million; 2006: $(137.7) million.
(2) Interest expense on income tax contingencies is not included in fixed charges.