EX-12 2 usmexhibit12.htm EX-12

Exhibit 12

UNITED STATES CELLULAR CORPORATION

RATIO OF EARNINGS TO FIXED CHARGES

|  |  |  |  | Six Months Ended
|  |  |  |  | June 30,
|  |  |  |  | 2018 |  | 2017
(Dollars in millions) |  |  |  |  |
EARNINGS: |  |  |  |  |
| Income before income taxes 1 | $ | 147 |  | $ | 73
| Add (deduct): |  |  |  |  |
|  | Equity in earnings of unconsolidated entities |  | (78) |  |  | (66)
|  | Distributions from unconsolidated entities |  | 70 |  |  | 65
|  | Amortization of capitalized interest |  | 3 |  |  | 3
|  | Income attributable to noncontrolling interests in subsidiaries that do not have fixed charges |  | (13) |  |  | –
|  |  |  |  | $ | 129 |  | $ | 75
| Add fixed charges: |  |  |  |  |
|  | Consolidated interest expense 2 |  | 58 |  |  | 56
|  | Interest portion (1/3) of consolidated rent expense |  | 29 |  |  | 27
|  |  |  |  | $ | 216 |  | $ | 158
FIXED CHARGES: |  |  |  |  |
|  | Consolidated interest expense 2 | $ | 58 |  | $ | 56
|  | Interest portion (1/3) of consolidated rent expense |  | 29 |  |  | 27
|  |  |  |  | $ | 87 |  | $ | 83
RATIO OF EARNINGS TO FIXED CHARGES |  | 2.48 |  |  | 1.90
1 | Amounts include $17 million and $19 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.