EX-12 2 exhibit12.htm EX-12

|  |  |  |  |  |  |  |  | Exhibit 12
UNITED STATES CELLULAR CORPORATION RATIO OF EARNINGS TO FIXED CHARGES
|  |  |  |  | Six Months Ended
|  |  |  |  | June 30,
|  |  |  |  | 2014 |  | 2013
(Dollars in thousands) |  |  |  |  |
EARNINGS: |  |  |  |  |
| Income before income taxes (1) | $ | 1,158 |  | $ | 282,436
| Add (deduct): |  |  |  |  |
|  | Equity in earnings of unconsolidated entities |  | (70,195) |  |  | (62,437)
|  | Distributions from unconsolidated entities |  | 65,565 |  |  | 45,370
|  | Amortization of capitalized interest |  | 2,800 |  |  | 878
|  | Income attributable to noncontrolling interests in subsidiaries |  |  |  |  |
|  |  | that do not have fixed charges |  | (819) |  |  | (6,328)
|  |  |  |  | $ | (1,491) |  | $ | 259,919
| Add fixed charges: |  |  |  |  |
|  | Consolidated interest expense (2) |  | 29,198 |  |  | 21,064
|  | Interest portion (1/3) of consolidated rent expense |  | 16,276 |  |  | 22,176
|  |  |  |  | $ | 43,983 |  | $ | 303,159
FIXED CHARGES: |  |  |  |  |
|  | Consolidated interest expense (2) | $ | 29,198 |  | $ | 21,064
|  | Capitalized interest |  | 1,982 |  |  | 10,208
|  | Interest portion (1/3) of consolidated rent expense |  | 16,276 |  |  | 22,176
|  |  |  |  | $ | 47,456 |  | $ | 53,448
RATIO OF EARNINGS TO FIXED CHARGES |  | * |  |  | 5.67
(1) | Includes Gain on license sales and exchanges of $91.4 million and Gain on sale of business and other exit costs, net of $17.4 million in 2014, and Gain on sale of business and other exit costs, net of $242.1 million in 2013.
(2) | Interest expense on income tax contingencies is not included in fixed charges.
* | Earnings for the six months ended June 30, 2014 were inadequate to cover fixed charges by $3.5 million.