EX-12 2 exhibit12.htm EX-12

Exhibit 12

UNITED STATES CELLULAR CORPORATION

RATIO OF EARNINGS TO FIXED CHARGES

|  |  |  |  | Three Months Ended
|  |  |  |  | March 31,
|  |  |  |  | 2016 |  | 2015
(Dollars in millions) |  |  |  |  |
EARNINGS: |  |  |  |  |
| Income before income taxes 1 | $ | 20 |  | $ | 272
| Add (deduct): |  |  |  |  |
|  | Equity in earnings of unconsolidated entities |  | (35) |  |  | (34)
|  | Distributions from unconsolidated entities |  | 14 |  |  | 13
|  | Amortization of capitalized interest |  | 2 |  |  | 1
|  | Income attributable to noncontrolling interests in subsidiaries that do not have fixed charges |  | (1) |  |  | (6)
|  |  |  |  | $ | – |  | $ | 246
| Add fixed charges: |  |  |  |  |
|  | Consolidated interest expense 2 |  | 28 |  |  | 20
|  | Interest portion (1/3) of consolidated rent expense |  | 13 |  |  | 13
|  |  |  |  | $ | 41 |  | $ | 279
FIXED CHARGES: |  |  |  |  |
|  | Consolidated interest expense 2 | $ | 28 |  | $ | 20
|  | Capitalized interest |  | – |  |  | 1
|  | Interest portion (1/3) of consolidated rent expense |  | 13 |  |  | 13
|  |  |  |  | $ | 41 |  | $ | 34
RATIO OF EARNINGS TO FIXED CHARGES |  | 1.00 |  |  | 8.21
1 | Includes Gain on sale of business and other exit costs, net of $111 million in 2015. Additionally, includes $123 million of Gain on license sales and exchanges, net in 2015.
2 | Interest expense on income tax contingencies is not included in fixed charges.