Exhibit 12

TELEPHONE AND DATA SYSTEMS, INC.

RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS (1)

Three Months Ended

March 31,

2015 

2014 

(Dollars in thousands)

EARNINGS:

Income before income taxes (2)

$

 291,821 

$

 31,951 

Add (deduct):

Equity in earnings of unconsolidated entities

 (34,641) 

 (37,327) 

Distributions from unconsolidated entities

 12,988 

 12,820 

Amortization of capitalized interest

 1,769 

 2,036 

Income attributable to noncontrolling interests in subsidiaries

  that do not have fixed charges

 (5,611) 

 (243) 

 266,326 

 9,237 

Add fixed charges:

Consolidated interest expense (3)

 33,830 

 28,707 

Interest portion (1/3) of consolidated rent expense

 15,284 

 15,535 

$

 315,440 

$

 53,479 

FIXED CHARGES:

Consolidated interest expense (3)

$

 33,830 

$

 28,707 

Capitalized interest

 1,655 

 1,799 

Interest portion (1/3) of consolidated rent expense

 15,284 

 15,535 

$

 50,769 

$

 46,041 

RATIO OF EARNINGS TO FIXED CHARGES

 6.21 

 1.16 

Tax-effected preferred dividends

$

 21 

$

 20 

Fixed charges

 50,769 

 46,041 

Fixed charges and preferred dividends

$

 50,790 

$

 46,061 

RATIO OF EARNINGS TO FIXED CHARGES AND

  PREFERRED DIVIDENDS

 6.21 

 1.16 

(1)

Considering, among other things, recent significant divestitures and an increasing amount of rental income in proportion to gross rent expense, TDS revised its approach in the fourth quarter of 2014 in calculating the above ratios to use gross rent expense, rather than net rent expense, for estimating the interest portion of rent expense.  Prior periods have been revised to conform to this presentation.

(2)

Includes Gain on sale of business and other exit costs, net of $123.8 million and $6.9 million in 2015 and 2014, respectively.  Additionally, includes $122.9 million and $91.4 million in Gain on license sales and exchanges, net in 2015 and 2014, respectively.

(3)

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