Exhibit 99.1
TELEPHONE AND DATA SYSTEMS, INC.
RATIO OF EARNINGS TO FIXED CHARGES
For the Year Ended December 31,
(Dollars in thousands) | | | 2009 | | 2008 | | 2007 | | 2006 | | 2005 | |
EARNINGS: | | | | | | | | | | | |
Income before income taxes (1) | | $ | 380,909 | | $ | 152,194 | | $ | 669,510 | | $ | 320,715 | | $ | 1,104,505 | |
Add (deduct): | | | | | | | | | | | |
Equity in earnings of unconsolidated entities | | (90,732 | ) | (89,812 | ) | (91,831 | ) | (95,170 | ) | (68,039 | ) |
Distributions from unconsolidated entities | | 91,587 | | 92,335 | | 87,404 | | 78,248 | | 52,624 | |
Amortization of capitalized interest | | 497 | | — | | — | | — | | — | |
Income attributable to noncontrolling interests in subsidiaries that do not have fixed charges | | (20,333 | ) | (23,955 | ) | (20,408 | ) | (13,571 | ) | (9,631 | ) |
| | 361,928 | | 130,762 | | 644,675 | | 290,222 | | 1,079,459 | |
Add fixed charges: | | | | | | | | | | | |
Consolidated interest expense (2) | | 126,209 | | 139,304 | | 209,525 | | 234,929 | | 216,150 | |
Interest portion (1/3) of consolidated rent expense | | 49,553 | | 46,420 | | 45,198 | | 41,977 | | 40,715 | |
| | $ | 537,690 | | $ | 316,486 | | $ | 899,398 | | $ | 567,128 | | $ | 1,336,324 | |
FIXED CHARGES: | | | | | | | | | | | |
Consolidated interest expense (2) | | $ | 126,209 | | $ | 139,304 | | $ | 209,525 | | $ | 234,929 | | $ | 216,150 | |
Capitalized interest | | 3,850 | | 4,162 | | 811 | | 494 | | — | |
Interest portion (1/3) of consolidated rent expense | | 49,553 | | 46,420 | | 45,198 | | 41,977 | | 40,715 | |
| | $ | 179,612 | | $ | 189,886 | | $ | 255,534 | | $ | 277,400 | | $ | 256,865 | |
RATIO OF EARNINGS TO FIXED CHARGES | | 2.99 | | 1.67 | | 3.52 | | 2.04 | | 5.20 | |
Tax-effected preferred dividends | | $ | 78 | | $ | 82 | | $ | 88 | | $ | 259 | | $ | 312 | |
Fixed charges | | 179,612 | | 189,886 | | 255,534 | | 277,400 | | 256,865 | |
Fixed charges and preferred dividends | | $ | 179,690 | | $ | 189,968 | | $ | 255,622 | | $ | 277,659 | | $ | 257,177 | |
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS | | 2.99 | | 1.67 | | 3.52 | | 2.04 | | 5.20 | |
(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; 2005: $727.5 million.
(2) Interest expense on income tax contingencies is not included in fixed charges.
