EX-12 3 exhibit12.htm EX-12

Exhibit 12

TELEPHONE AND DATA SYSTEMS, INC.

RATIO OF EARNINGS TO FIXED CHARGES

					Three Months Ended
					March 31,
					2016			2015
(Dollars in millions)
EARNINGS:
	Income before income taxes1				$	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 expense2				41			34
		Interest portion (1/3) of consolidated rent expense				15			15
					$	59		$	315
FIXED CHARGES:
		Consolidated interest expense2			$	41		$	34
		Capitalized interest				1			2
		Interest portion (1/3) of consolidated rent expense				15			15
					$	57		$	51
RATIO OF EARNINGS TO FIXED CHARGES3						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.