EX-12 2 a2190848zex-12.htm EX-12

Exhibit 12

 

TELEPHONE AND DATA SYSTEMS, INC.

RATIO OF EARNINGS TO FIXED CHARGES

For the Year Ended December 31,

 

(Dollars in thousands)

 

2008

 

2007

 

2006

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes, minority interest and extraordinary item(1)

 

$

153,006

 

$

685,450

 

$

323,338

 

$

1,107,135

 

$

(392,884

)

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of unconsolidated
entities

 

(89,812

)

(91,831

)

(95,170

)

(68,039

)

(65,303

)

Distributions from unconsolidated entities

 

92,335

 

87,404

 

78,248

 

52,624

 

49,088

 

Minority interests in pre-tax income of subsidiaries that do not have fixed charges

 

(23,955

)

(20,408

)

(13,571

)

(9,631

)

(10,682

)

 

 

131,574

 

660,615

 

292,845

 

1,082,089

 

(419,781

)

Add fixed charges:

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense (2)

 

137,899

 

208,736

 

234,543

 

216,021

 

198,706

 

Interest portion (1/3) of consolidated rent
expense

 

46,752

 

45,451

 

42,187

 

40,919

 

37,207

 

 

 

$

316,225

 

$

914,802

 

$

569,575

 

$

1,339,029

 

$

(183,868

)

FIXED CHARGES:

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense (2)

 

$

137,899

 

$

208,736

 

$

234,543

 

$

216,021

 

$

198,706

 

Capitalized interest

 

4,162

 

811

 

494

 

—

 

—

 

Interest portion (1/3) of consolidated rent
expense

 

46,752

 

45,451

 

42,187

 

40,919

 

37,207

 

 

 

$

188,813

 

$

254,998

 

$

277,224

 

$

256,940

 

$

235,913

 

RATIO OF EARNINGS TO FIXED CHARGES

 

1.67

 

3.59

 

2.05

 

5.21

 

—

(a)

Tax-effected preferred dividends

 

$

82

 

$

88

 

$

259

 

$

312

 

$

255

 

Fixed charges

 

188,813

 

254,998

 

277,224

 

256,940

 

235,913

 

Fixed charges and preferred dividends

 

$

188,895

 

$

255,086

 

$

277,483

 

$

257,252

 

$

236,168

 

RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS

 

1.67

 

3.59

 

2.05

 

5.21

 

—

(a)

 

(a)         Earnings for the year ended December 31, 2004 were insufficient to cover fixed charges by $419.8 million and fixed charges and preferred dividends of $420.0 million.  TDS recognized a pre-tax $519.0 million loss on a fair value adjustment related to derivative instruments for the year ended December 31, 2004.

 

(1)         Includes non-cash charges related to losses on impairment as follows: 2008: $414.4 million; 2007: $24.9 million; 2004: $31.3 million.

 

(2)         Interest expense on income tax contingencies is not included in fixed charges.