Exhibit 99.1
UNITED STATES CELLULAR CORPORATION
RATIO OF EARNINGS TO FIXED CHARGES
For the Year Ended December 31
(Dollars in thousands) | | | 2009 | | 2008 | | 2007 | | 2006 | | 2005 | |
| | | | | | | | | | | | |
EARNINGS: | | | | | | | | | | | |
Income before income taxes(1) | | $ | 344,586 | | $ | 65,683 | | $ | 530,928 | | $ | 310,881 | | $ | 258,717 | |
Add (deduct): | | | | | | | | | | | |
Equity in earnings of unconsolidated entities | | (96,800 | ) | (91,981 | ) | (90,033 | ) | (93,119 | ) | (66,719 | ) |
Distributions from unconsolidated entities | | 91,105 | | 91,845 | | 86,873 | | 77,835 | | 52,112 | |
Amortization of capitalized interest | | 320 | | — | | — | | — | | — | |
Income attributable to noncontrolling interests in subsidiaries that do not have fixed charges | | (22,663 | ) | (26,131 | ) | (23,481 | ) | (15,999 | ) | (12,478 | ) |
| | $ | 316,548 | | $ | 39,416 | | $ | 504,287 | | $ | 279,598 | | $ | 231,632 | |
Add fixed charges: | | | | | | | | | | | |
Consolidated interest expense(2) | | 78,199 | | 78,535 | | 85,408 | | 94,000 | | 84,996 | |
Interest portion (1/3) of consolidated rent expense | | 41,305 | | 37,254 | | 35,208 | | 30,482 | | 29,938 | |
| | $ | 436,052 | | $ | 155,205 | | $ | 624,903 | | $ | 404,080 | | $ | 346,566 | |
| | | | | | | | | | | |
FIXED CHARGES: | | | | | | | | | | | |
Consolidated interest expense(2) | | 78,199 | | 78,535 | | $ | 85,408 | | $ | 94,000 | | $ | 84,996 | |
Capitalized interest | | 1,647 | | 2,805 | | — | | — | | — | |
Interest portion (1/3) of consolidated rent expense | | 41,305 | | 37,254 | | 35,208 | | 30,482 | | 29,938 | |
| | $ | 121,151 | | $ | 118,594 | | $ | 120,616 | | $ | 124,482 | | $ | 114,934 | |
| | | | | | | | | | | |
RATIO OF EARNINGS TO FIXED CHARGES | | 3.60 | | 1.31 | | 5.18 | | 3.25 | | 3.02 | |
(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; 2005: $38.8 million.
(2) Interest expense on income tax contingencies is not included in fixed charges.
