Exhibit 12
UNITED STATES CELLULAR CORPORATION
RATIO OF EARNINGS TO FIXED CHARGES
For the Year Ended December 31
|
| 2010 |
| 2009 |
| 2008 |
| 2007 |
| 2006 |
| |||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
| |||||||
EARNINGS: |
|
|
|
|
|
|
|
|
|
|
| |||||||
Income before income taxes (1) |
| $ | 235,017 |
| $ | 344,586 |
| $ | 65,683 |
| $ | 530,928 |
| $ | 310,881 |
| ||
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
| |||||||
Equity in earnings of unconsolidated entities |
| (97,318 | ) | (96,800 | ) | (91,981 | ) | (90,033 | ) | (93,119 | ) | |||||||
Distributions from unconsolidated entities |
| 100,359 |
| 91,105 |
| 91,845 |
| 86,873 |
| 77,835 |
| |||||||
Amortization of capitalized interest |
| 492 |
| 320 |
| — |
| — |
| — |
| |||||||
Income attributable to noncontrolling interests in subsidiaries that do not have fixed charges |
| (23,869 | ) | (22,663 | ) | (26,131 | ) | (23,481 | ) | (15,999 | ) | |||||||
|
| $ | 214,681 |
| $ | 316,548 |
| $ | 39,416 |
| $ | 504,287 |
| $ | 279,598 |
| ||
Add fixed charges: |
|
|
|
|
|
|
|
|
|
|
| |||||||
Consolidated interest expense (2) |
| 61,555 |
| 78,199 |
| 78,535 |
| 85,408 |
| 94,000 |
| |||||||
Interest portion (1/3) of consolidated rent expense |
| 42,550 |
| 41,305 |
| 37,254 |
| 35,208 |
| 30,482 |
| |||||||
|
| $ | 318,786 |
| $ | 436,052 |
| $ | 155,205 |
| $ | 624,903 |
| $ | 404,080 |
| ||
|
|
|
|
|
|
|
|
|
|
|
| |||||||
FIXED CHARGES: |
|
|
|
|
|
|
|
|
|
|
| |||||||
Consolidated interest expense (2) |
| $ | 61,555 |
| $ | 78,199 |
| $ | 78,535 |
| $ | 85,408 |
| $ | 94,000 |
| ||
Capitalized interest |
| 2,446 |
| 1,647 |
| 2,805 |
| — |
| — |
| |||||||
Interest portion (1/3) of consolidated rent expense |
| 42,550 |
| 41,305 |
| 37,254 |
| 35,208 |
| 30,482 |
| |||||||
|
| $ | 106,551 |
| $ | 121,151 |
| $ | 118,594 |
| $ | 120,616 |
| $ | 124,482 |
| ||
|
|
|
|
|
|
|
|
|
|
|
| |||||||
RATIO OF EARNINGS TO FIXED CHARGES |
| 2.99 |
| 3.60 |
| 1.31 |
| 5.18 |
| 3.25 |
| |||||||
(1) Includes non-cash charges related to losses on impairments as follows: 2009: $14.0 million; 2008: $386.7 million; 2007: $24.9 million.
Includes fair value adjustment of derivative instruments and gain on disposition of investments as follows: 2008: $16.6 million; 2007: $132.6 million; 2006: $7.4 million.
(2) Interest expense on income tax contingencies is not included in fixed charges.