EX-12 2 ex12.htm EX-12

|  |  |  |  |  |  |  |  | Exhibit 12
UNITED STATES CELLULAR CORPORATION RATIO OF EARNINGS TO FIXED CHARGES
|  |  |  |  | Nine Months Ended
|  |  |  |  | September 30,
|  |  |  |  | 2014 |  | 2013
(Dollars in thousands) |  |  |  |  |
EARNINGS: |  |  |  |  |
| Income before income taxes (1) | $ | (24,072) |  | $ | 266,402
| Add (deduct): |  |  |  |  |
|  | Equity in earnings of unconsolidated entities |  | (106,166) |  |  | (99,797)
|  | Distributions from unconsolidated entities |  | 74,853 |  |  | 49,612
|  | Amortization of capitalized interest |  | 4,816 |  |  | 1,920
|  | Income attributable to noncontrolling interests in subsidiaries |  |  |  |  |
|  |  | that do not have fixed charges |  | (935) |  |  | (6,914)
|  |  |  |  | $ | (51,504) |  | $ | 211,223
| Add fixed charges: |  |  |  |  |
|  | Consolidated interest expense (2) |  | 42,712 |  |  | 32,393
|  | Interest portion (1/3) of consolidated rent expense |  | 24,179 |  |  | 30,551
|  |  |  |  | $ | 15,387 |  | $ | 274,167
FIXED CHARGES: |  |  |  |  |
|  | Consolidated interest expense (2) | $ | 42,712 |  | $ | 32,393
|  | Capitalized interest |  | 3,720 |  |  | 14,259
|  | Interest portion (1/3) of consolidated rent expense |  | 24,179 |  |  | 30,551
|  |  |  |  | $ | 70,611 |  | $ | 77,203
RATIO OF EARNINGS TO FIXED CHARGES |  | * |  |  | 3.55
(1) | Includes Gain on license sales and exchanges of $91.4 million and Gain on sale of business and other exit costs, net of $27.7 million in 2014, and Gain on sale of business and other exit costs, net of $243.6 million in 2013.
(2) | Interest expense on income tax contingencies is not included in fixed charges.
* | Earnings for the nine months ended September 30, 2014 were inadequate to cover Fixed charges by $55.2 million.