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UNITED STATES CELLULAR CORPORATION
RATIO OF EARNINGS TO FIXED CHARGES
For the Year Ended December 31,
(Dollars in Thousands)
| 2004 | 2003 | 2002 | 2001 | 2000 | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
EARNINGS: | ||||||||||||||||||
Income (loss) before income taxes and minority interest | $ | 192,632 | $ | 106,150 | $ | (12,388 | ) | $ | 331,337 | $ | 377,165 | |||||||
Add (deduct): | ||||||||||||||||||
Earnings on equity method investments | (68,841 | ) | (52,063 | ) | (42,068 | ) | (41,934 | ) | (43,727 | ) | ||||||||
Distributions from unconsolidated entities | 46,530 | 44,833 | 28,881 | 14,813 | 20,582 | |||||||||||||
Minority interest in pre-tax income of subsidiaries that do not have fixed charges | (10,940 | ) | (14,622 | ) | (16,829 | ) | (10,429 | ) | (7,975 | ) | ||||||||
159,741 | 84,298 | (42,404 | ) | 293,787 | 346,045 | |||||||||||||
Add fixed charges: | ||||||||||||||||||
Consolidated interest expense | 86,241 | 64,607 | 47,878 | 35,164 | 36,608 | |||||||||||||
Interest portion (1/3) of consolidated rent expense | 25,113 | 17,412 | 19,061 | 11,808 | 10,933 | |||||||||||||
$ | 271,095 | $ | 166,317 | $ | 24,535 | $ | 340,759 | $ | 393,586 | |||||||||
FIXED CHARGES: | ||||||||||||||||||
Consolidated interest expense | $ | 86,241 | $ | 64,607 | $ | 47,878 | $ | 35,164 | $ | 36,608 | ||||||||
Interest portion (1/3) of consolidated rent expense | 25,113 | 17,412 | 19,061 | 11,808 | 10,933 | |||||||||||||
$ | 111,354 | $ | 82,019 | $ | 66,939 | $ | 46,972 | $ | 47,541 | |||||||||
RATIO OF EARNINGS TO FIXED CHARGES | 2.43 | 2.03 | — | (a) | 7.25 | 8.28 | ||||||||||||
Tax-effected preferred dividends | $ | — | $ | 25 | $ | 70 | $ | 124 | $ | 121 | ||||||||
Fixed charges | 111,354 | 82,019 | 66,939 | 46,972 | 47,541 | |||||||||||||
Fixed charges and preferred dividends | $ | 111,354 | $ | 82,044 | $ | 67,009 | $ | 47,096 | $ | 47,662 | ||||||||
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS | 2.43 | 2.03 | — | (a) | 7.24 | 8.26 | ||||||||||||
- (a)
- Earnings for the year ended December 31, 2002 were insufficient to cover fixed charges by $42.4 million and fixed charges and preferred dividends by $42.5 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.