EXHIBIT 12 TELEPHONE AND DATA SYSTEMS, INC. RATIOS OF EARNINGS TO FIXED CHARGES FOR THE YEAR ENDED DECEMBER 31, 1994 (DOLLARS IN THOUSANDS) EARNINGS: Income from Continuing Operations before Income Taxes.......................... $ 101,257 Add (Deduct): Minority Share of Losses................................................... (336) Earnings on Equity Method.................................................. (30,083) Distributions from Minority Subsidiaries................................... 17,375 Amortization of Non-Telephone Capitalized Interest......................... 28 Minority share of income in majority-owned subsidiaries that have fixed charges................................................................... 4,411 --------- 92,652 Add fixed charges: Consolidated interest expense.............................................. 41,061 Interest Portion (1/3) of Consolidated Rent Expense........................ 5,103 Amortization of debt expense and discount on indebtedness.................. 189 --------- $ 139,005 --------- --------- FIXED CHARGES: Consolidated interest expense.................................................. $ 41,061 Interest Portion (1/3) of Consolidated Rent Expense............................ 5,103 Amortization of debt expense and discount on indebtedness...................... 189 --------- $ 46,353 --------- --------- RATIO OF EARNINGS TO FIXED CHARGES............................................... 3.00 --------- --------- Tax-Effected Redeemable Preferred Dividends.................................... $ 2,166 Fixed Charges.................................................................. 46,353 --------- Fixed Charges and Redeemable Preferred Dividends............................. $ 48,519 --------- --------- RATIO OF EARNINGS TO FIXED CHARGES AND REDEEMABLE PREFERRED DIVIDENDS............ 2.86 --------- --------- Tax-Effected Preferred Dividends............................................... $ 4,112 Fixed Charges.................................................................. 46,353 --------- Fixed Charges and Preferred Dividends........................................ $ 50,465 --------- --------- RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS....................... 2.75 --------- ---------