EX-12 2 tdsexhibit12.htm EX-12

Exhibit 12

 

TELEPHONE AND DATA SYSTEMS, INC.

RATIO OF EARNINGS TO FIXED CHARGES

For the Year Ended December 31,

 

 

 

 

2015

 

2014

 

2013

 

2012

 

2011

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes1

$

434,602

 

$

(152,224)

 

$

292,864

 

$

196,235

 

$

363,745

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of unconsolidated entities

 

(140,076)

 

 

(131,965)

 

 

(132,714)

 

 

(92,867)

 

 

(82,538)

 

Distributions from unconsolidated entities

 

60,060

 

 

112,349

 

 

127,929

 

 

84,884

 

 

92,231

 

Amortization of capitalized interest

 

7,516

 

 

7,142

 

 

4,638

 

 

1,676

 

 

1,109

 

Income attributable to noncontrolling interests

  in subsidiaries that do not have fixed charges

 

(6,180)

 

 

(1,361)

 

 

(5,651)

 

 

(25,709)

 

 

(22,004)

 

 

 

 

355,922

 

 

(166,059)

 

 

287,066

 

 

164,219

 

 

352,543

Add fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense2

 

141,719

 

 

111,397

 

 

98,811

 

 

86,745

 

 

118,201

 

Interest portion (1/3) of consolidated

  rent expense

 

59,734

 

 

61,909

 

 

66,698

 

 

71,505

 

 

65,470

 

 

 

$

557,375

 

$

7,247

 

$

452,575

 

$

322,469

 

$

536,214

FIXED CHARGES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense2

$

141,719

 

$

111,397

 

$

98,811

 

$

86,745

 

$

118,201

 

Capitalized interest

 

6,486

 

 

10,295

 

 

22,206

 

 

21,369

 

 

14,321

 

Interest portion (1/3) of consolidated

  rent expense

 

59,734

 

 

61,909

 

 

66,698

 

 

71,505

 

 

65,470

 

 

 

$

207,939

 

$

183,601

 

$

187,715

 

$

179,619

 

$

197,992

RATIO OF EARNINGS TO FIXED CHARGES

 

2.68

 

 

*

 

 

2.41

 

 

1.80

 

 

2.71

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax-effected preferred dividends

$

87

 

$

62

 

$

78

 

$

78

 

$

71

 

Fixed charges

 

207,939

 

 

183,601

 

 

187,715

 

 

179,619

 

 

197,992

 

Fixed charges and preferred dividends

$

208,026

 

$

183,663

 

$

187,793

 

$

179,697

 

$

198,063

RATIO OF EARNINGS TO FIXED CHARGES

  AND PREFERRED DIVIDENDS

 

2.68

 

 

*

 

 

2.41

 

 

1.79

 

 

2.71

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

Includes non-cash charges related to losses on impairment of $87.8 million in 2014 and $0.5 million in 2012.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Includes gain on sale of business and other exit costs, net of $135.9 million, $15.8 million and $300.7 million in 2015, 2014 and 2013, respectively, and loss on sale of business and other exit costs, net of $21.1 million in 2012.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Includes gain on license sales and exchanges of $146.9 million, $113.0 million, $255.5 million, and $11.8 million in 2015, 2014, 2013, and 2011, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Includes gain on investments of $14.5 million in 2013 and $24.1 million in 2011 and loss on investments of $3.7 million in 2012.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*

Earnings in 2014 were inadequate to cover fixed charges by $176.4 million, and fixed charges and preferred dividends by $176.4 million.