Telephone and Data Systems (TDS) 10-Q 2015 Q1 Quarterly report

						Exhibit 12
TELEPHONE AND DATA SYSTEMS, INC. RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS (1)
			Three Months Ended
			March 31,
			2015		2014
(Dollars in thousands)
EARNINGS:
	Income before income taxes (2)		$	291,821	$	31,951
	Add (deduct):
		Equity in earnings of unconsolidated entities		(34,641)		(37,327)
		Distributions from unconsolidated entities		12,988		12,820
		Amortization of capitalized interest		1,769		2,036
		Income attributable to noncontrolling interests in subsidiaries   that do not have fixed charges		(5,611)		(243)
				266,326		9,237
	Add fixed charges:
		Consolidated interest expense (3)		33,830		28,707
		Interest portion (1/3) of consolidated rent expense		15,284		15,535
			$	315,440	$	53,479
FIXED CHARGES:
		Consolidated interest expense (3)	$	33,830	$	28,707
		Capitalized interest		1,655		1,799
		Interest portion (1/3) of consolidated rent expense		15,284		15,535
			$	50,769	$	46,041
RATIO OF EARNINGS TO FIXED CHARGES				6.21		1.16
		Tax-effected preferred dividends	$	21	$	20
		Fixed charges		50,769		46,041
		Fixed charges and preferred dividends	$	50,790	$	46,061
RATIO OF EARNINGS TO FIXED CHARGES AND   PREFERRED DIVIDENDS				6.21		1.16
(1)		Considering, among other things, recent significant divestitures and an increasing amount of rental income in proportion to gross rent expense, TDS revised its approach in the fourth quarter of 2014 in calculating the above ratios to use gross rent expense, rather than net rent expense, for estimating the interest portion of rent expense.  Prior periods have been revised to conform to this presentation.
(2)		Includes Gain on sale of business and other exit costs, net of $123.8 million and $6.9 million in 2015 and 2014, respectively.  Additionally, includes $122.9 million and $91.4 million in Gain on license sales and exchanges, net in 2015 and 2014, respectively.
(3)		Interest expense on income tax contingencies is not included in fixed charges.