EX-12 2 USM10kExhibit12.htm EX-12

Exhibit 12

UNITED STATES CELLULAR CORPORATION

RAT IO OF EARNINGS TO FIXED CHARGES

For the Year Ended December 31,

| 2016 |  | 2015 |  | 2014 |  | 2013 |  | 2012
(Dollars in millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EARNINGS: |  |  |  |  |  |  |  |  |  |  |  |  |  |
I ncome (loss) before income taxes 1 | $ | 82 |  | $ | 404 |  | $ | (59) |  | $ | 258 |  | $ | 205
Add (deduct): |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Equity in earnings of unconsolidated entities |  | (140) |  |  | (140) |  |  | (130) |  |  | (132) |  |  | (90)
| Distributions from unconsolidated entities |  | 93 |  |  | 60 |  |  | 112 |  |  | 126 |  |  | 84
| Amortization of capitalized interest |  | 6 |  |  | 6 |  |  | 6 |  |  | 4 |  |  | 1
| Income attributable to noncontrolling interests in subsidiaries that do not have fixed charges |  | (1) |  |  | (6) |  |  | (2) |  |  | (7) |  |  | (30)
|  |  |  | 40 |  |  | 324 |  |  | (73) |  |  | 249 |  |  | 170
Add fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Consolidated interest expense 2 |  | 113 |  |  | 86 |  |  | 57 |  |  | 44 |  |  | 42
| Interest portion (1/3) of consolidated rent expense |  | 54 |  |  | 51 |  |  | 51 |  |  | 54 |  |  | 61
|  |  | $ | 207 |  | $ | 461 |  | $ | 35 |  | $ | 347 |  | $ | 273
FIXED CHARGES: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Consolidated interest expense 2 | $ | 113 |  | $ | 86 |  | $ | 57 |  | $ | 44 |  | $ | 42
| Capitalized interest |  | 1 |  |  | 3 |  |  | 6 |  |  | 18 |  |  | 18
| Interest portion (1/3) of consolidated rent expense |  | 54 |  |  | 51 |  |  | 51 |  |  | 54 |  |  | 61
|  |  | $ | 168 |  | $ | 140 |  | $ | 114 |  | $ | 116 |  | $ | 121
RATIO OF EARNINGS TO FIXED CHARGES |  | 1.23 |  |  | 3.29 |  |  | * |  |  | 2.99 |  |  | 2.26
1 | Includes gain on sale of business and other exit costs, net of $114 million, $33 million and $247 million in 2015, 2014 and 2013, respectively, and loss on sale of business and other exit costs, net of $21 million in 2012.
| Includes gain on license sales and exchanges, net of $19 million, $147 million, $113 million and $255 million in 2016, 2015, 2014 and 2013, respectively.
| Includes gain on investments of $19 million in 2013 and loss on investments of $4 million in 2012.
2 | Interest expense on income tax contingencies is not included in fixed charges.
* | Earnings in 2014 were inadequate to cover Fixed charges by $79 million.