EX-12 2 tdsexhibit12.htm EX-12

Exhibit 12

TELEPHONE AND DATA SYSTEMS, INC.

RATIO OF EARNINGS TO FIXED CHA RGES

|  |  |  |  | Six Months Ended
|  |  |  |  | June 30,
|  |  |  |  | 2017 |  | 2016
(Dollars in millions) |  |  |  |  |
EARNINGS: |  |  |  |  |
| Income before income taxes 1 | $ | 99 |  | $ | 73
| Add (deduct): |  |  |  |  |
|  | Equity in earnings of unconsolidated entities |  | (65) |  |  | (72)
|  | Distributions from unconsolidated entities |  | 65 |  |  | 30
|  | Amortization of capitalized interest |  | 4 |  |  | 4
|  |  |  |  | $ | 103 |  | $ | 35
| Add fixed charges: |  |  |  |  |
|  | Consolidated interest expense 2 |  | 85 |  |  | 85
|  | Interest portion (1/3) of consolidated rent expense |  | 32 |  |  | 31
|  |  |  |  | $ | 220 |  | $ | 151
FIXED CHARGES: |  |  |  |  |
|  | Consolidated interest expense 2 | $ | 85 |  | $ | 85
|  | Capitalized interest |  | 1 |  |  | 1
|  | Interest portion (1/3) of consolidated rent expense |  | 32 |  |  | 31
|  |  |  |  | $ | 118 |  | $ | 117
RATIO OF EARNINGS TO FIXED CHARGES 3 |  | 1.86 |  |  | 1.29
1 | Includes $19 million and $9 million of Gain on license sales and exchanges, net in 2017 and 2016, respectively.
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 1.86 and 1.29 for the six months ended June 30, 2017 and 2016, respectively.