EX-12 3 tdsexhibit12.htm EX-12

Exhibit 12

 

TELEPHONE AND DATA SYSTEMS, INC.

RATIO OF EARNINGS TO FIXED CHARGES

 

 

For the Year Ended December 31,

2017

 

2016

 

2015

 

2014

 

2013

(Dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes1

$

(122)

 

$

92 

 

$

435 

 

$

(152)

 

$

293 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of unconsolidated entities

 

(137)

 

 

(140)

 

 

(140)

 

 

(132)

 

 

(133)

 

Distributions from unconsolidated entities

 

136 

 

 

93 

 

 

60 

 

 

112 

 

 

128 

 

Amortization of capitalized interest

 

8 

 

 

8 

 

 

8 

 

 

7 

 

 

5 

 

Income attributable to noncontrolling interests

  in subsidiaries that do not have fixed charges

 

(1)

 

 

(1)

 

 

(6)

 

 

(1)

 

 

(6)

 

 

 

 

(116)

 

 

52 

 

 

357 

 

 

(166)

 

 

287 

Add fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense2

 

170 

 

 

170 

 

 

142 

 

 

111 

 

 

99 

 

Interest portion (1/3) of consolidated

  rent expense

 

64 

 

 

63 

 

 

60 

 

 

62 

 

 

67 

 

 

 

$

118 

 

$

285 

 

$

559 

 

$

7 

 

$

453 

FIXED CHARGES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense2

$

170 

 

$

170 

 

$

142 

 

$

111 

 

$

99 

 

Capitalized interest

 

2 

 

 

3 

 

 

6 

 

 

10 

 

 

22 

 

Interest portion (1/3) of consolidated

  rent expense

 

64 

 

 

63 

 

 

60 

 

 

62 

 

 

67 

 

 

 

$

236 

 

$

236 

 

$

208 

 

$

183 

 

$

188 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RATIO OF EARNINGS TO FIXED CHARGES3

 

* 

 

 

1.21 

 

 

2.69 

 

 

* 

 

 

2.41 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

Includes non-cash charges related to losses on impairment of $262 million in 2017 and $88 million in 2014.

 

Includes gain on sale of business and other exit costs, net of $1 million, $1 million, $136 million, $16 million and $301 million in 2017, 2016, 2015, 2014 and 2013, respectively.

 

Includes gain on license sales and exchanges, net of $22 million, $20 million, $147 million, $113 million and $256 million in 2017, 2016, 2015, 2014 and 2013, respectively.

 

Includes gain on investments of $15 million in 2013.

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 1.21, 2.69 and 2.41 for the years ended December 31, 2016, 2015 and 2013, respectively.

*

Earnings in 2017 and 2014 were inadequate to cover fixed charges by $118 million, and $176 million, respectively, and fixed charges and preferred dividends by $118 million and $176 million, respectively.