EX-12 2 exhibit12.htm EX-12

|  |  |  |  |  |  |  |  | Exhibit 12
UNITED STATES CELLULAR CORPORATION RATIO OF EARNINGS TO FIXED CHARGES
|  |  |  |  | Six Months Ended
|  |  |  |  | June 30,
|  |  |  |  | 2013 |  | 2012
(Dollars in thousands) |  |  |  |  |
EARNINGS: |  |  |  |  |
| Income before income taxes (1) | $ | 282,436 |  | $ | 188,495
| Add (deduct): |  |  |  |  |
|  | Equity in earnings of unconsolidated entities |  | (62,437) |  |  | (46,768)
|  | Distributions from unconsolidated entities |  | 45,370 |  |  | 6,743
|  | Amortization of capitalized interest |  | 878 |  |  | 410
|  | Income attributable to noncontrolling interests in subsidiaries |  |  |  |  |
|  |  | that do not have fixed charges |  | (6,328) |  |  | (13,367)
|  |  |  |  | $ | 259,919 |  | $ | 135,513
| Add fixed charges: |  |  |  |  |
|  | Consolidated interest expense (2) |  | 21,064 |  |  | 25,771
|  | Interest portion (1/3) of consolidated rent expense |  | 22,176 |  |  | 23,339
|  |  |  |  | $ | 303,159 |  | $ | 184,623
FIXED CHARGES: |  |  |  |  |
|  | Consolidated interest expense (2) | $ | 21,064 |  | $ | 25,771
|  | Capitalized interest |  | 10,208 |  |  | 6,232
|  | Interest portion (1/3) of consolidated rent expense |  | 22,176 |  |  | 23,339
|  |  |  |  | $ | 53,448 |  | $ | 55,342
RATIO OF EARNINGS TO FIXED CHARGES |  | 5.67 |  |  | 3.34
| (1) | Includes gain on sale of business and other exit costs, net of $242.1 million and $4.2 million in 2013 and 2012, respectively.
| (2) | Interest expense on income tax contingencies is not included in fixed charges.