United States Cellular Corporat (UZD) 10-Q 2016 Q2 Quarterly report

Exhibit 12

UNITED STATES CELLULAR CORPORATION

RATIO OF EARNINGS TO FIXED CHARGES

			Six Months Ended
			June 30,
			2016		2015
(Dollars in millions)
EARNINGS:
	Income before income taxes1		$	60	$	306
	Add (deduct):
		Equity in earnings of unconsolidated entities		(72)		(70)
		Distributions from unconsolidated entities		30		27
		Amortization of capitalized interest		3		3
		Income attributable to noncontrolling interests in subsidiaries   that do not have fixed charges		–		(6)
			$	21	$	260
	Add fixed charges:
		Consolidated interest expense2		56		40
		Interest portion (1/3) of consolidated rent expense		26		25
			$	103	$	325
FIXED CHARGES:
		Consolidated interest expense2	$	56	$	40
		Capitalized interest		–		2
		Interest portion (1/3) of consolidated rent expense		26		25
			$	82	$	67
RATIO OF EARNINGS TO FIXED CHARGES				1.26		4.85
1		Includes Gain on sale of business and other exit costs, net of $113 million in 2015.  Additionally, includes $9 million and $123 million of Gain on license sales and exchanges, net in 2016 and 2015, respectively.
2		Interest expense on income tax contingencies is not included in fixed charges.