Exhibit 12
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 |
| $ | 194,825 |
| $ | 94,836 |
| $ | (13,666 | ) | $ | 330,941 |
| $ | 372,924 |
|
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
| |||||
Earnings on equity method investments |
| (63,758 | ) | (51,088 | ) | (42,192 | ) | (42,586 | ) | (40,499 | ) | |||||
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 |
| (11,668 | ) | (13,859 | ) | (16,649 | ) | (10,388 | ) | (7,909 | ) | |||||
|
| 165,929 |
| 74,722 |
| (43,626 | ) | 292,780 |
| 345,098 |
| |||||
Add fixed charges: |
|
|
|
|
|
|
|
|
|
|
| |||||
Consolidated interest expense |
| 86,241 |
| 64,607 |
| 47,878 |
| 35,164 |
| 36,608 |
| |||||
Interest portion (1/3) of consolidated rent expense |
| 24,448 |
| 21,051 |
| 16,582 |
| 13,824 |
| 11,170 |
| |||||
|
| $ | 276,618 |
| $ | 160,380 |
| $ | 20,834 |
| $ | 341,768 |
| $ | 392,876 |
|
FIXED CHARGES: |
|
|
|
|
|
|
|
|
|
|
| |||||
Consolidated interest expense |
| $ | 86,241 |
| $ | 64,607 |
| $ | 47,878 |
| $ | 35,164 |
| $ | 36,608 |
|
Interest portion (1/3) of consolidated rent expense |
| 24,448 |
| 21,051 |
| 16,582 |
| 13,824 |
| 11,170 |
| |||||
|
| $ | 110,689 |
| $ | 85,658 |
| $ | 64,460 |
| $ | 48,988 |
| $ | 47,778 |
|
RATIO OF EARNINGS TO FIXED CHARGES |
| 2.50 |
| 1.87 |
| — | (a) | 6.98 |
| 8.22 |
| |||||
Tax-effected preferred dividends |
| $ | — |
| $ | 25 |
| $ | 70 |
| $ | 124 |
| $ | 121 |
|
Fixed charges |
| 110,689 |
| 85,658 |
| 64,460 |
| 48,988 |
| 47,778 |
| |||||
Fixed charges and preferred dividends |
| $ | 110,689 |
| $ | 85,683 |
| $ | 64,530 |
| $ | 49,112 |
| $ | 47,899 |
|
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS |
| 2.50 |
| 1.87 |
| — | (a) | 6.96 |
| 8.20 |
| |||||
(a) Earnings for the year ended December 31, 2002 were insufficient to cover fixed charges by $43.6 million and fixed charges and preferred dividends by $43.7 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.