Telephone and Data Systems (TDS) 10-Q 2013 Q1 Quarterly report

						Exhibit 12
TELEPHONE AND DATA SYSTEMS, INC. RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
			Three Months Ended
			March 31,
			2013		2012
(Dollars in thousands)
EARNINGS:
	Income before income taxes (1)		$	11,169	$	94,978
	Add (deduct):
		Equity in earnings of unconsolidated entities		(27,089)		(23,389)
		Distributions from unconsolidated entities		8,089		2,938
		Amortization of capitalized interest		466		389
		Income attributable to noncontrolling interests in subsidiaries   that do not have fixed charges		(5,441)		(6,034)
				(12,806)		68,882
	Add fixed charges:
		Consolidated interest expense (2)		24,498		24,464
		Interest portion (1/3) of consolidated rent expense		14,529		13,797
			$	26,221	$	107,143
FIXED CHARGES:
		Consolidated interest expense (2)	$	24,498	$	24,464
		Capitalized interest		5,664		3,198
		Interest portion (1/3) of consolidated rent expense		14,529		13,797
			$	44,691	$	41,459
RATIO OF EARNINGS TO FIXED CHARGES				0.59		2.58
		Tax-effected preferred dividends	$	20	$	17
		Fixed charges		44,691		41,459
		Fixed charges and preferred dividends	$	44,711	$	41,476
RATIO OF EARNINGS TO FIXED CHARGES AND   PREFERRED DIVIDENDS				0.59		2.58
	(1)	Includes loss on sale of business and other exit costs, net of $6.9 million in 2013 and gain on sale of business and other exit costs, net of $4.2 million in 2012.
	(2)	Interest expense on income tax contingencies is not included in fixed charges.