EX-12 3 exhibit12.htm EX-12

Exhibit 12

TELEPHONE AND DATA SYSTEMS, INC.

RATIO OF EARNINGS TO FIXED CHA RGES

|  |  |  |  | Three Months Ended
|  |  |  |  | March 31,
|  |  |  |  | 2016 |  | 2015
(Dollars in millions) |  |  |  |  |
EARNINGS: |  |  |  |  |
| Income before income taxes 1 | $ | 23 |  | $ | 292
| Add (deduct): |  |  |  |  |
|  | Equity in earnings of unconsolidated entities |  | (35) |  |  | (35)
|  | Distributions from unconsolidated entities |  | 14 |  |  | 13
|  | Amortization of capitalized interest |  | 2 |  |  | 2
|  | Income attributable to noncontrolling interests in subsidiaries that do not have fixed charges |  | (1) |  |  | (6)
|  |  |  |  |  | 3 |  |  | 266
| Add fixed charges: |  |  |  |  |
|  | Consolidated interest expense 2 |  | 41 |  |  | 34
|  | Interest portion (1/3) of consolidated rent expense |  | 15 |  |  | 15
|  |  |  |  | $ | 59 |  | $ | 315
FIXED CHARGES: |  |  |  |  |
|  | Consolidated interest expense 2 | $ | 41 |  | $ | 34
|  | Capitalized interest |  | 1 |  |  | 2
|  | Interest portion (1/3) of consolidated rent expense |  | 15 |  |  | 15
|  |  |  |  | $ | 57 |  | $ | 51
RATIO OF EARNINGS TO FIXED CHARGES 3 |  | 1.03 |  |  | 6.18
1 | Includes Gain on sale of business and other exit costs, net of $124 million in 2015. Additionally, includes $123 million of Gain on license sales and exchanges, net in 2015.
2 | Interest expense on income tax contingencies is not included in fixed charges.
3 | Ratio of earnings to fixed charges and preferred dividends was also 1.03 and 6.18 for the three months ended March 31, 2016 and 2015, respectively.