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