EX-12 2 tdsexhibit12.htm EX-12

Exhibit 12

TELEPHONE AND DATA SYSTEMS, INC.

RATIO OF EARNINGS TO FIXED CHA RGES

|  |  |  |  | Three Months Ended
|  |  |  |  | March 31,
|  |  |  |  | 2018 |  | 2017
(Dollars in millions) |  |  |  |  |
EARNINGS: |  |  |  |  |
| Income before income taxes 1 | $ | 81 |  | $ | 77
| Add (deduct): |  |  |  |  |
|  | Equity in earnings of unconsolidated entities |  | (38) |  |  | (32)
|  | Distributions from unconsolidated entities |  | 17 |  |  | 11
|  | Amortization of capitalized interest |  | 2 |  |  | 2
|  | Income attributable to noncontrolling interests in subsidiaries that do not have fixed charges |  | (10) |  |  | –
|  |  |  |  | $ | 52 |  | $ | 58
| Add fixed charges: |  |  |  |  |
|  | Consolidated interest expense 2 |  | 43 |  |  | 42
|  | Interest portion (1/3) of consolidated rent expense |  | 17 |  |  | 16
|  |  |  |  | $ | 112 |  | $ | 116
FIXED CHARGES: |  |  |  |  |
|  | Consolidated interest expense 2 | $ | 43 |  | $ | 42
|  | Capitalized interest |  | 1 |  |  | –
|  | Interest portion (1/3) of consolidated rent expense |  | 17 |  |  | 16
|  |  |  |  | $ | 61 |  | $ | 58
RATIO OF EARNINGS TO FIXED CHARGES 3 |  | 1.84 |  |  | 2.00
1 | Amounts include $7 million and $17 million of Gain on license sales and exchanges, net in 2018 and 2017, 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 2.00 for the three months ended March 31, 2017.