Exhibit 12
UNITED STATES CELLULAR CORPORATION
RATIO OF EARNINGS TO FIXED CHARGES
For the Year Ended December 31,
(Dollars in thousands) |
| 2012 |
| 2011 |
| 2010 |
| 2009 |
| 2008 |
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EARNINGS: |
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Income before income taxes (1) |
| $ | 205,053 |
| $ | 312,822 |
| $ | 241,116 |
| $ | 349,165 |
| $ | 69,855 |
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Add (deduct): |
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Equity in earnings of unconsolidated entities |
| (90,364 | ) | (83,566 | ) | (97,318 | ) | (96,800 | ) | (91,981 | ) | |||||
Distributions from unconsolidated entities |
| 84,417 |
| 91,768 |
| 100,359 |
| 91,105 |
| 91,845 |
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Amortization of capitalized interest |
| 855 |
| 613 |
| 492 |
| 320 |
| — |
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Income attributable to noncontrolling interests in subsidiaries that do not have fixed charges |
| (30,122 | ) | (24,247 | ) | (23,869 | ) | (22,663 | ) | (26,131 | ) | |||||
|
| 169,839 |
| 297,390 |
| 220,780 |
| 321,127 |
| 43,588 |
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Add fixed charges: |
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Consolidated interest expense (2) |
| 42,393 |
| 65,614 |
| 61,555 |
| 78,199 |
| 78,535 |
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Interest portion (1/3) of consolidated rent expense |
| 47,394 |
| 44,130 |
| 42,550 |
| 41,305 |
| 37,254 |
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|
| 259,626 |
| 407,134 |
| 324,885 |
| 440,631 |
| 159,377 |
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FIXED CHARGES: |
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Consolidated interest expense (2) |
| 42,393 |
| 65,614 |
| 61,555 |
| 78,199 |
| 78,535 |
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Capitalized interest |
| 17,930 |
| 10,064 |
| 2,446 |
| 1,647 |
| 2,805 |
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Interest portion (1/3) of consolidated rent expense |
| 47,394 |
| 44,130 |
| 42,550 |
| 41,305 |
| 37,254 |
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|
| $ | 107,717 |
| $ | 119,808 |
| $ | 106,551 |
| $ | 121,151 |
| $ | 118,594 |
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RATIO OF EARNINGS TO FIXED CHARGES |
| 2.41 |
| 3.40 |
| 3.05 |
| 3.64 |
| 1.34 |
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(1) Includes non-cash charges related to losses on impairment as follows: 2009: $14.0 million; 2008: $386.7 million.
Includes (Gain) loss on sale of business and other exit costs, net as follows: 2012: $21.0 million.
Includes loss on investment of $3.7 million in 2012 and gain on investment as follows: 2011: $11.4 million; 2008: $16.6 million.
(2) Interest expense on income tax contingencies is not included in fixed charges.