EX-12 4 usmexhibit12.htm EX-12

Exhibit 12

UNITED STATES CELLULAR CORPORATION

RATIO OF EARNINGS TO FIXED CHARGES

|  |  |  |  | Nine Months Ended
|  |  |  |  | September 30,
|  |  |  |  | 2017 |  | 2016
(Dollars in millions) |  |  |  |  |
EARNINGS: |  |  |  |  |
| Income (loss) before income taxes 1 | $ | (278) |  | $ | 93
| Add (deduct): |  |  |  |  |
|  | Equity in earnings of unconsolidated entities |  | (101) |  |  | (110)
|  | Distributions from unconsolidated entities |  | 85 |  |  | 55
|  | Amortization of capitalized interest |  | 5 |  |  | 5
|  |  |  |  | $ | (289) |  | $ | 43
| A dd fixed charges: |  |  |  |  |
|  | Consolidated interest expense 2 |  | 85 |  |  | 84
|  | Interest portion (1/3) of consolidated rent expense |  | 41 |  |  | 40
|  |  |  |  | $ | (163) |  | $ | 167
FIXED CHARGES: |  |  |  |  |
|  | Consolidated interest expense 2 | $ | 85 |  | $ | 84
|  | Capitalized interest |  | – |  |  | 1
|  | Interest portion (1/3) of consolidated rent expense |  | 41 |  |  | 40
|  |  |  |  | $ | 126 |  | $ | 125
RATIO OF EARNINGS TO FIXED CHARGES |  | * |  |  | 1.34
1 | Includes Loss on impairment of goodwill of $370 million in 2017. Amount also includes $19 million and $16 million of Gain on license sales and exchanges, net in 2017 and 2016, respectively.
2 | Interest expense on income tax contingencies is not included in fixed charges.
* | Earnings in 2017 were inadequate to cover Fixed charges by $289 million.