Exhibit 12
UNITED STATES CELLULAR CORPORATION
RATIO OF EARNINGS TO FIXED CHARGES
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
(Dollars in millions) | |||||||
EARNINGS: | |||||||
Income (loss) before income taxes1 | $ | 198 | $ | (278 | ) | ||
Add (deduct): | |||||||
Equity in earnings of unconsolidated entities | (120 | ) | (101 | ) | |||
Distributions from unconsolidated entities | 90 | 85 | |||||
Amortization of capitalized interest | 4 | 5 | |||||
Income attributable to noncontrolling interests in subsidiaries that do not have fixed charges | (14 | ) | — | ||||
$ | 158 | $ | (289 | ) | |||
Add fixed charges: | |||||||
Consolidated interest expense2 | 87 | 85 | |||||
Interest portion (1/3) of consolidated rent expense | 43 | 41 | |||||
$ | 288 | $ | (163 | ) | |||
FIXED CHARGES: | |||||||
Consolidated interest expense2 | $ | 87 | $ | 85 | |||
Interest portion (1/3) of consolidated rent expense | 43 | 41 | |||||
$ | 130 | $ | 126 | ||||
RATIO OF EARNINGS TO FIXED CHARGES | 2.22 | * |
1 | Includes Loss on impairment of goodwill of $370 million in 2017. Amount also includes $18 million and $19 million of Gain on license sales and exchanges, net in 2018 and 2017, respectively. |
2 | Interest expense on income tax contingencies is not included in fixed charges. |
* | Earnings in 2017 were inadequate to cover Fixed charges by $289 million. |