EX-12 2 usmexhibit12.htm EX-12

Exhibit 12

UNITED STATES CELLULAR CORPORATION

RATIO OF EARNINGS TO FIXED CHARGES

|  |  |  |  | Three Months Ended
|  |  |  |  | March 31,
|  |  |  |  | 2018 |  | 2017
(Dollars in millions) |  |  |  |  |
EARNINGS: |  |  |  |  |
| Income before income taxes 1 | $ | 77 |  | $ | 61
| Add (deduct): |  |  |  |  |
|  | Equity in earnings of unconsolidated entities |  | (38) |  |  | (33)
|  | Distributions from unconsolidated entities |  | 17 |  |  | 11
|  | Amortization of capitalized interest |  | 2 |  |  | 2
|  | Income attributable to noncontrolling interests in subsidiaries that do not have fixed charges |  | (10) |  |  | –
|  |  |  |  | $ | 48 |  | $ | 41
| Add fixed charges: |  |  |  |  |
|  | Consolidated interest expense 2 |  | 29 |  |  | 28
|  | Interest portion (1/3) of consolidated rent expense |  | 15 |  |  | 14
|  |  |  |  | $ | 92 |  | $ | 83
FIXED CHARGES: |  |  |  |  |
|  | Consolidated interest expense 2 | $ | 29 |  | $ | 28
|  | Interest portion (1/3) of consolidated rent expense |  | 15 |  |  | 14
|  |  |  |  | $ | 44 |  | $ | 42
RATIO OF EARNINGS TO FIXED CHARGES |  | 2.09 |  |  | 1.98
1 | Amounts include $7 million and $17 million of Gain on license sales and exchanges, net in 2018 and 2017, respectively.
2 | Interest expense on income tax contingencies is not included in fixed charges.