EX-12 5 a2213083zex-12.htm EX-12

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 |
EARNINGS: |  |  |  |  |  |  |  |  |  |  |
Income before income taxes (1) |  | $ | 205,053 |  | $ | 312,822 |  | $ | 241,116 |  | $ | 349,165 |  | $ | 69,855 |
Add (deduct): |  |  |  |  |  |  |  |  |  |  |
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 |
Amortization of capitalized interest |  | 855 |  | 613 |  | 492 |  | 320 |  | — |
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 |
Add fixed charges: |  |  |  |  |  |  |  |  |  |  |
Consolidated interest expense (2) |  | 42,393 |  | 65,614 |  | 61,555 |  | 78,199 |  | 78,535 |
Interest portion (1/3) of consolidated rent expense |  | 47,394 |  | 44,130 |  | 42,550 |  | 41,305 |  | 37,254 |
|  | 259,626 |  | 407,134 |  | 324,885 |  | 440,631 |  | 159,377 |
FIXED CHARGES: |  |  |  |  |  |  |  |  |  |  |
Consolidated interest expense (2) |  | 42,393 |  | 65,614 |  | 61,555 |  | 78,199 |  | 78,535 |
Capitalized interest |  | 17,930 |  | 10,064 |  | 2,446 |  | 1,647 |  | 2,805 |
Interest portion (1/3) of consolidated rent expense |  | 47,394 |  | 44,130 |  | 42,550 |  | 41,305 |  | 37,254 |
|  | $ | 107,717 |  | $ | 119,808 |  | $ | 106,551 |  | $ | 121,151 |  | $ | 118,594 |
RATIO OF EARNINGS TO FIXED CHARGES |  | 2.41 |  | 3.40 |  | 3.05 |  | 3.64 |  | 1.34 |

(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.