Telephone and Data Systems (TDS) 10-Q 2014 Q2 Quarterly report

						Exhibit 12
TELEPHONE AND DATA SYSTEMS, INC. RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
			Six Months Ended
			June 30,
			2014		2013
(Dollars in thousands)
EARNINGS:
	Income (loss) before income taxes (1)		$	(7,446)	$	322,173
	Add (deduct):
		Equity in earnings of unconsolidated entities		(72,117)		(62,694)
		Distributions from unconsolidated entities		65,569		47,635
		Amortization of capitalized interest		3,301		1,318
		Income attributable to noncontrolling interests in subsidiaries   that do not have fixed charges		(645)		(5,522)
				(11,338)		302,910
	Add fixed charges:
		Consolidated interest expense (2)		56,605		48,247
		Interest portion (1/3) of consolidated rent expense		23,126		27,276
			$	68,393	$	378,433
FIXED CHARGES:
		Consolidated interest expense (2)	$	56,605	$	48,247
		Capitalized interest		3,824		12,062
		Interest portion (1/3) of consolidated rent expense		23,126		27,276
			$	83,555	$	87,585
RATIO OF EARNINGS TO FIXED CHARGES				*		4.32
		Tax-effected preferred dividends	$	39	$	57
		Fixed charges		83,555		87,585
		Fixed charges and preferred dividends	$	83,594	$	87,642
RATIO OF EARNINGS TO FIXED CHARGES AND   PREFERRED DIVIDENDS				*		4.32
(1)		Includes Gain on license sales and exchanges of $91.4 million and Gain on sale of business and other exit costs, net of $4.3 million in 2014, and Gain on sale of business and other exit costs, net of $296.1 million in 2013.
(2)		Interest expense on income tax contingencies is not included in fixed charges.
*		Earnings for the six months ended June 30, 2014 were inadequate to cover Fixed charges and Fixed charges and preferred dividends by $15.2 million.