TELEPHONE AND DATA SYSTEMS, INC.
RATIO OF EARNINGS TO FIXED CHARGES
For the Year Ended December 31,
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| 2015 |
| 2014 |
| 2013 |
| 2012 |
| 2011 | ||||||
(Dollars in thousands) |
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EARNINGS: |
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Income (loss) before income taxes1 | $ | 434,602 |
| $ | (152,224) |
| $ | 292,864 |
| $ | 196,235 |
| $ | 363,745 | ||
Add (deduct): |
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| Equity in earnings of unconsolidated entities |
| (140,076) |
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| (131,965) |
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| (132,714) |
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| (92,867) |
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| (82,538) | |
| Distributions from unconsolidated entities |
| 60,060 |
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| 112,349 |
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| 127,929 |
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| 84,884 |
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| 92,231 | |
| Amortization of capitalized interest |
| 7,516 |
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| 7,142 |
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| 4,638 |
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| 1,676 |
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| 1,109 | |
| Income attributable to noncontrolling interests in subsidiaries that do not have fixed charges |
| (6,180) |
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| (1,361) |
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| (5,651) |
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| (25,709) |
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| (22,004) | |
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| 355,922 |
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| (166,059) |
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| 287,066 |
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| 164,219 |
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| 352,543 |
Add fixed charges: |
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| Consolidated interest expense2 |
| 141,719 |
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| 111,397 |
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| 98,811 |
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| 86,745 |
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| 118,201 | |
| Interest portion (1/3) of consolidated rent expense |
| 59,734 |
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| 61,909 |
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| 66,698 |
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| 71,505 |
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| 65,470 | |
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| $ | 557,375 |
| $ | 7,247 |
| $ | 452,575 |
| $ | 322,469 |
| $ | 536,214 |
FIXED CHARGES: |
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| Consolidated interest expense2 | $ | 141,719 |
| $ | 111,397 |
| $ | 98,811 |
| $ | 86,745 |
| $ | 118,201 | |
| Capitalized interest |
| 6,486 |
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| 10,295 |
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| 22,206 |
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| 21,369 |
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| 14,321 | |
| Interest portion (1/3) of consolidated rent expense |
| 59,734 |
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| 61,909 |
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| 66,698 |
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| 71,505 |
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| 65,470 | |
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| $ | 207,939 |
| $ | 183,601 |
| $ | 187,715 |
| $ | 179,619 |
| $ | 197,992 |
RATIO OF EARNINGS TO FIXED CHARGES |
| 2.68 |
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| * |
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| 2.41 |
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| 1.80 |
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| 2.71 | ||
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| Tax-effected preferred dividends | $ | 87 |
| $ | 62 |
| $ | 78 |
| $ | 78 |
| $ | 71 | |
| Fixed charges |
| 207,939 |
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| 183,601 |
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| 187,715 |
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| 179,619 |
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| 197,992 | |
| Fixed charges and preferred dividends | $ | 208,026 |
| $ | 183,663 |
| $ | 187,793 |
| $ | 179,697 |
| $ | 198,063 | |
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS |
| 2.68 |
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| * |
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| 2.41 |
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| 1.79 |
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| 2.71 | ||
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1 | Includes non-cash charges related to losses on impairment of $87.8 million in 2014 and $0.5 million in 2012. | |||||||||||||||
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| Includes gain on sale of business and other exit costs, net of $135.9 million, $15.8 million and $300.7 million in 2015, 2014 and 2013, respectively, and loss on sale of business and other exit costs, net of $21.1 million in 2012. | |||||||||||||||
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| Includes gain on license sales and exchanges of $146.9 million, $113.0 million, $255.5 million, and $11.8 million in 2015, 2014, 2013, and 2011, respectively. | |||||||||||||||
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| Includes gain on investments of $14.5 million in 2013 and $24.1 million in 2011 and loss on investments of $3.7 million in 2012. | |||||||||||||||
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2 | Interest expense on income tax contingencies is not included in fixed charges. | |||||||||||||||
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* | Earnings in 2014 were inadequate to cover fixed charges by $176.4 million, and fixed charges and preferred dividends by $176.4 million. | |||||||||||||||