Telephone and Data Systems (TDS) 10-Q 2007 Q2 Quarterly report

Exhibit 12

TELEPHONE AND DATA SYSTEMS, INC.

RATIOS OF EARNINGS TO FIXED CHARGES

	Six Months Ended
	June 30,
	2007			2006
	(Dollars in Thousands)
EARNINGS:
Income before income taxes and minority interest	$	426,820		$	374,809
Add (deduct):
Equity in earnings of unconsolidated entities	(47,571		)	(42,296		)
Distributions from unconsolidated entities	43,435			37,399
Minority interests in pre-tax income of subsidiaries that do not have fixed charges	(7,826		)	(5,501		)
	$	414,858		$	364,411
Add fixed charges:
Consolidated interest expense (1)	113,046			117,820
Interest portion (1/3) of consolidated rent expense	19,944			20,305
	$	547,848		$	502,536
FIXED CHARGES:
Consolidated interest expense (1)	$	113,046		$	117,820
Capitalized interest	333			—
Interest portion (1/3) of consolidated rent expense	19,944			20,305
	$	133,323		$	138,125
RATIO OF EARNINGS TO FIXED CHARGES	4.11			3.64
Tax-effected preferred dividends	$	43		$	172
Fixed charges	133,323			138,125
Fixed charges and preferred dividends	$	133,366		$	138,297
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS	4.11			3.63

(1)Interest expense on income tax contingencies is not included in fixed charges.