EX-12 2 tds9302018ex12.htm EXHIBIT 12
Exhibit 12
TELEPHONE AND DATA SYSTEMS, INC.
RATIO OF EARNINGS TO FIXED CHARGES

| Nine Months Ended September 30,
| 2018 |  | 2017
(Dollars in millions) |  |  |
EARNINGS: |  |  |  |  |
Income (loss) before income taxes 1 | $ | 203 |  |  | $ | (137 | )
Add (deduct): |  |  |  |  |
Equity in earnings of unconsolidated entities | (121 | ) |  | (101 | )
Distributions from unconsolidated entities | 91 |  |  | 85 |
Amortization of capitalized interest | 5 |  |  | 6 |
Income attributable to noncontrolling interests in subsidiaries that do not have fixed charges | (14 | ) |  | — |
| $ | 164 |  |  | $ | (147 | )
Add fixed charges: |  |  |  |  |
Consolidated interest expense 2 | 129 |  |  | 128 |
Interest portion (1/3) of consolidated rent expense | 50 |  |  | 48 |
| $ | 343 |  |  | $ | 29 |
FIXED CHARGES: |  |  |  |  |
Consolidated interest expense 2 | $ | 129 |  |  | $ | 128 |
Capitalized interest | 2 |  |  | 1 |
Interest portion (1/3) of consolidated rent expense | 50 |  |  | 48 |
| $ | 181 |  |  | $ | 177 |
RATIO OF EARNINGS TO FIXED CHARGES | 1.90 |  |  | * |

1 | Includes Loss on impairment of goodwill of $262 million in 2017. Amount also includes $18 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.

* | Earnings in 2017 were inadequate to cover Fixed charges by $148 million.