EX-12 2 tdsexhibit12.htm EX-12

Exhibit 12

TELEPHONE AND DATA SYSTEMS, INC.

RATIO OF EARNINGS TO FIXED CHA RGES

|  |  |  |  | Nine Months Ended
|  |  |  |  | September 30,
|  |  |  |  | 2017 |  | 2016
(Dollars in millions) |  |  |  |  |
EARNINGS: |  |  |  |  |
| Income (loss) before income taxes 1 | $ | (137) |  | $ | 103
| Add (deduct): |  |  |  |  |
|  | Equity in earnings of unconsolidated entities |  | (101) |  |  | (109)
|  | Distributions from unconsolidated entities |  | 85 |  |  | 55
|  | Amortization of capitalized interest |  | 6 |  |  | 6
|  |  |  |  | $ | (147) |  | $ | 55
| A dd fixed charges: |  |  |  |  |
|  | Consolidated interest expense 2 |  | 128 |  |  | 127
|  | Interest portion (1/3) of consolidated rent expense |  | 48 |  |  | 46
|  |  |  |  | $ | 29 |  | $ | 228
FIXED CHARGES: |  |  |  |  |
|  | Consolidated interest expense 2 | $ | 128 |  | $ | 127
|  | Capitalized interest |  | 1 |  |  | 2
|  | Interest portion (1/3) of consolidated rent expense |  | 48 |  |  | 46
|  |  |  |  | $ | 177 |  | $ | 175
RATIO OF EARNINGS TO FIXED CHARGES 3 |  | * |  |  | 1.30
1 | Includes Loss on impairment of goodwill of $262 million in 2017. Amount also includes $19 million and $16 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 1.30 for the nine months ended 2016.
* | Earnings in 2017 were inadequate to cover Fixed charges by $148 million.