EX-12 2 usm9302018ex12.htm EXHIBIT 12
Exhibit 12
UNITED STATES CELLULAR CORPORATION
RATIO OF EARNINGS TO FIXED CHARGES

| Nine Months Ended September 30,
| 2018 |  | 2017
(Dollars in millions) |  |  |
EARNINGS: |  |  |  |  |
Income (loss) before income taxes 1 | $ | 198 |  |  | $ | (278 | )
Add (deduct): |  |  |
Equity in earnings of unconsolidated entities | (120 | ) |  | (101 | )
Distributions from unconsolidated entities | 90 |  |  | 85 |
Amortization of capitalized interest | 4 |  |  | 5 |
Income attributable to noncontrolling interests in subsidiaries that do not have fixed charges | (14 | ) |  | — |
| $ | 158 |  |  | $ | (289 | )
Add fixed charges: |  |  |
Consolidated interest expense 2 | 87 |  |  | 85 |
Interest portion (1/3) of consolidated rent expense | 43 |  |  | 41 |
| $ | 288 |  |  | $ | (163 | )
FIXED CHARGES: |  |  |
Consolidated interest expense 2 | $ | 87 |  |  | $ | 85 |
Interest portion (1/3) of consolidated rent expense | 43 |  |  | 41 |
| $ | 130 |  |  | $ | 126 |
RATIO OF EARNINGS TO FIXED CHARGES | 2.22 |  |  | * |

1 | Includes Loss on impairment of goodwill of $370 million in 2017. Amount also includes $18 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.

* | Earnings in 2017 were inadequate to cover Fixed charges by $289 million.