United States Cellular (USM) 10-K 2012 FY Annual report

Exhibit 12

UNITED STATES CELLULAR CORPORATION

RATIO OF EARNINGS TO FIXED CHARGES

For the Year Ended December 31,

(Dollars in thousands)	2012			2011			2010			2009			2008
EARNINGS:
Income before income taxes (1)	$	205,053		$	312,822		$	241,116		$	349,165		$	69,855
Add (deduct):
Equity in earnings of unconsolidated entities	(90,364		)	(83,566		)	(97,318		)	(96,800		)	(91,981		)
Distributions from unconsolidated entities	84,417			91,768			100,359			91,105			91,845
Amortization of capitalized interest	855			613			492			320			—
Income attributable to noncontrolling interests in subsidiaries that do not have fixed charges	(30,122		)	(24,247		)	(23,869		)	(22,663		)	(26,131		)
	169,839			297,390			220,780			321,127			43,588
Add fixed charges:
Consolidated interest expense (2)	42,393			65,614			61,555			78,199			78,535
Interest portion (1/3) of consolidated rent expense	47,394			44,130			42,550			41,305			37,254
	259,626			407,134			324,885			440,631			159,377
FIXED CHARGES:
Consolidated interest expense (2)	42,393			65,614			61,555			78,199			78,535
Capitalized interest	17,930			10,064			2,446			1,647			2,805
Interest portion (1/3) of consolidated rent expense	47,394			44,130			42,550			41,305			37,254
	$	107,717		$	119,808		$	106,551		$	121,151		$	118,594
RATIO OF EARNINGS TO FIXED CHARGES	2.41			3.40			3.05			3.64			1.34

(1)  Includes non-cash charges related to losses on impairment as follows: 2009: $14.0 million; 2008: $386.7 million.

       Includes (Gain) loss on sale of business and other exit costs, net as follows: 2012: $21.0 million.

       Includes loss on investment of $3.7 million in 2012 and gain on investment as follows: 2011: $11.4 million; 2008: $16.6 million.

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