EX-12 2 tdsexhibit12.htm EX-12

 

 


Exhibit 12

TELEPHONE AND DATA SYSTEMS, INC.

RATIO OF EARNINGS TO FIXED CHARGES

 

 

 

 

 

 

Six Months Ended

 

 

 

 

 

June 30,

 

 

 

 

 

2017

 

2016

(Dollars in millions)

 

 

 

 

 

EARNINGS:

 

 

 

 

 

 

Income before income taxes1

$

99 

 

$

73 

 

Add (deduct):

 

 

 

 

 

 

 

Equity in earnings of unconsolidated entities

 

(65)

 

 

(72)

 

 

Distributions from unconsolidated entities

 

65 

 

 

30 

 

 

Amortization of capitalized interest

 

4 

 

 

4 

 

 

 

 

 

$

103 

 

$

35 

 

Add fixed charges:

 

 

 

 

 

 

 

Consolidated interest expense2

 

85 

 

 

85 

 

 

Interest portion (1/3) of consolidated rent expense

 

32 

 

 

31 

 

 

 

 

 

$

220 

 

$

151 

 

 

 

 

 

 

 

 

 

 

FIXED CHARGES:

 

 

 

 

 

 

 

Consolidated interest expense2

$

85 

 

$

85 

 

 

Capitalized interest

 

1 

 

 

1 

 

 

Interest portion (1/3) of consolidated rent expense

 

32 

 

 

31 

 

 

 

 

 

$

118 

 

$

117 

 

 

 

 

 

 

 

 

 

 

RATIO OF EARNINGS TO FIXED CHARGES3

 

1.86 

 

 

1.29 

 

 

 

 

 

 

 

 

 

 

1

Includes $19 million and $9 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.

 

 

 

 

 

 

 

 

 

 

3

Ratio of earnings to fixed charges and preferred dividends was also 1.86 and 1.29 for the six months ended June 30, 2017 and 2016, respectively.