EX-12 2 exhibit12.htm EX-12

Exhibit 12

TELEPHONE AND DATA SYSTEMS, INC.

RATIO OF EARNINGS TO FIXED CHA RGES

|  |  |  |  | Three Months Ended
|  |  |  |  | March 31,
|  |  |  |  | 2017 |  | 2016
(Dollars in millions) |  |  |  |  |
EARNINGS: |  |  |  |  |
| Income before income taxes 1 | $ | 77 |  | $ | 23
| Add (deduct): |  |  |  |  |
|  | Equity in earnings of unconsolidated entities |  | (32) |  |  | (35)
|  | Distributions from unconsolidated entities |  | 11 |  |  | 14
|  | Amortization of capitalized interest |  | 2 |  |  | 2
|  | Income attributable to noncontrolling interests in subsidiaries that do not have fixed charges |  | – |  |  | (1)
|  |  |  |  | $ | 58 |  | $ | 3
| Add fixed charges: |  |  |  |  |
|  | Consolidated interest expense 2 |  | 42 |  |  | 41
|  | Interest portion (1/3) of consolidated rent expense |  | 16 |  |  | 15
|  |  |  |  | $ | 116 |  | $ | 59
FIXED CHARGES: |  |  |  |  |
|  | Consolidated interest expense 2 | $ | 42 |  | $ | 41
|  | Capitalized interest |  | – |  |  | 1
|  | Interest portion (1/3) of consolidated rent expense |  | 16 |  |  | 15
|  |  |  |  | $ | 58 |  | $ | 57
RATIO OF EARNINGS TO FIXED CHARGES 3 |  | 2.00 |  |  | 1.03
1 | Includes $17 million of Gain on license sales and exchanges, net in 2017.
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 2.00 and 1.03 for the three months ended March 31, 2017 and 2016, respectively.