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,
|  |  |  |  | 2018 |  | 2017
(Dollars in millions) |  |  |  |  |
EARNINGS: |  |  |  |  |
| Income before income taxes 1 | $ | 146 |  | $ | 99
| Add (deduct): |  |  |  |  |
|  | Equity in earnings of unconsolidated entities |  | (78) |  |  | (65)
|  | Distributions from unconsolidated entities |  | 70 |  |  | 65
|  | Amortization of capitalized interest |  | 4 |  |  | 4
|  | Income attributable to noncontrolling interests in subsidiaries that do not have fixed charges |  | (13) |  |  | –
|  |  |  |  | $ | 129 |  | $ | 103
| Add fixed charges: |  |  |  |  |
|  | Consolidated interest expense 2 |  | 86 |  |  | 85
|  | Interest portion (1/3) of consolidated rent expense |  | 33 |  |  | 32
|  |  |  |  | $ | 248 |  | $ | 220
FIXED CHARGES: |  |  |  |  |
|  | Consolidated interest expense 2 | $ | 86 |  | $ | 85
|  | Capitalized interest |  | 1 |  |  | 1
|  | Interest portion (1/3) of consolidated rent expense |  | 33 |  |  | 32
|  |  |  |  | $ | 120 |  | $ | 118
RATIO OF EARNINGS TO FIXED CHARGES 3 |  | 2.07 |  |  | 1.86
1 | Amounts include $17 million and $19 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 1.86 for the six months ended June 30, 2017.