Exhibit 12
UNITED STATES CELLULAR CORPORATION
RATIO OF EARNINGS TO FIXED CHARGES
For the Year Ended December 31
(Dollars in thousands) |
| 2008 |
| 2007 |
| 2006 |
| 2005 |
| 2004 |
| |||||
EARNINGS: |
|
|
|
|
|
|
|
|
|
|
| |||||
Income before income taxes and minority interest(1) |
| $ | 66,128 |
| $ | 546,501 |
| $ | 313,138 |
| $ | 261,347 |
| $ | 159,469 |
|
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
| |||||
Equity in earnings of unconsolidated entities |
| (91,981 | ) | (90,033 | ) | (93,119 | ) | (66,719 | ) | (64,161 | ) | |||||
Distributions from unconsolidated entities |
| 91,845 |
| 86,873 |
| 77,835 |
| 52,112 |
| 46,385 |
| |||||
Minority interests in pre-tax income of subsidiaries that do not have fixed charges |
| (26,131 | ) | (23,481 | ) | (15,999 | ) | (12,478 | ) | (12,625 | ) | |||||
|
| $ | 39,861 |
| $ | 519,860 |
| $ | 281,855 |
| $ | 234,262 |
| $ | 129,068 |
|
Add fixed charges: |
|
|
|
|
|
|
|
|
|
|
| |||||
Consolidated interest expense(2) |
| 77,190 |
| 84,679 |
| 93,674 |
| 84,867 |
| 86,241 |
| |||||
Interest portion (1/3) of consolidated rent expense |
| 37,585 |
| 35,461 |
| 30,659 |
| 30,142 |
| 26,938 |
| |||||
|
| $ | 154,636 |
| $ | 640,000 |
| $ | 406,188 |
| $ | 349,271 |
| $ | 242,247 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
FIXED CHARGES: |
|
|
|
|
|
|
|
|
|
|
| |||||
Consolidated interest expense(2) |
| 77,190 |
| $ | 84,679 |
| $ | 93,674 |
| $ | 84,867 |
| $ | 86,241 |
| |
Capitalized interest |
| 2,805 |
| — |
| — |
| — |
| — |
| |||||
Interest portion (1/3) of consolidated rent expense |
| 37,585 |
| 35,461 |
| 30,659 |
| 30,142 |
| 26,938 |
| |||||
|
| $ | 117,580 |
| $ | 120,140 |
| $ | 124,333 |
| $ | 115,009 |
| $ | 113,179 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
RATIO OF EARNINGS TO FIXED CHARGES |
| 1.32 |
| 5.33 |
| 3.27 |
| 3.04 |
| 2.14 |
| |||||
(1) Includes non-cash charges related to losses on impairments as follows: 2008: $386.7 million; 2007: $24.9 million; 2004: $1.8 million.
(2) Interest expense on income tax contingencies is not included in fixed charges.