11-K 1 tds202111-k.htm 11-K Document

 

                  
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
                  
FORM 11-K
                  
                  
 (Mark one)               
 [x]
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
   
                  
   For the fiscal year ended December 31, 2021
                  
OR
                  
 [ ]TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
   
                  
   For the transition period from ________________ to ________________
                  
                  
 Commission File Number: 001-14157 (Telephone and Data Systems, Inc.)  
       001-09712 (United States Cellular Corporation) 
                  
 A.   Full title of the plan and the address of the plan, if different from that of the issuer named below:
                  
Telephone and Data Systems, Inc.
Tax-Deferred Savings Plan
30 North LaSalle Street
Suite 4000
Chicago, IL 60602
                  
 B.   Name of issuers of the securities held pursuant to the plan and the addresses of the principal executive office:
                  
Telephone and Data Systems, Inc.
30 North LaSalle Street
Suite 4000
Chicago, IL 60602
                  
United States Cellular Corporation
8410 West Bryn Mawr Ave.
Chicago, IL 60631
                  
 
 
 


 



BDO USA, LLP
 
 
Report of Independent Registered Public Accounting Firm
 
 

To the Investment Management Committee and Plan Participants of
Telephone and Data Systems, Inc. Tax-Deferred Savings Plan
Madison, Wisconsin
 
Opinion on the Financial Statements

We have audited the accompanying statement of net assets available for benefits of Telephone and Data Systems, Inc. Tax-Deferred Savings Plan (the “Plan”) as of December 31, 2021, the related statement of changes in net assets available for benefits for the year then ended, and the related notes (collectively, the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2021, and the changes in net assets available for benefits for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on the Plan’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risk of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by the Plan’s management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

Supplemental Information

The supplemental information in the accompanying schedule of Schedule H, Line 4i – Schedule of Assets (Held at End of Year) as of December 31, 2021, has been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements. The supplemental information is presented for the purpose of additional analysis and is not a required part of the financial statements but included supplemental information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental information is the responsibility of the Plan’s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole.

/s/ BDO USA, LLP

We have served as the Plan's auditor since 2022.

Madison, Wisconsin
June 28, 2022
1
RSM US LLP


Report of Independent Registered Public Accounting Firm


To the Investment Management Committee and Plan Participants of
Telephone and Data Systems, Inc. Tax-Deferred Savings Plan


Opinion on the Financial Statements

We have audited the accompanying statements of net assets available for benefits of Telephone and Data Systems, Inc. Tax-Deferred Savings Plan (the Plan) as of December 31, 2020, and the related notes to the financial statements. In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2020, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on the Plan’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Plan in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

We served as the Plan's auditor from 2006 to 2021.


/s/ RSM US LLP

Indianapolis, Indiana
June 29, 2021
2
Telephone and Data Systems, Inc.
Tax-Deferred Savings Plan
Statements of Net Assets Available for Benefits
December 31, 2021 and 2020
 20212020
Assets  
Investments, at fair value$1,590,556,990 $1,381,695,636 
Receivables  
Accrued income83,971 146,247 
Contributions receivable from participants and employer3,117,523 2,590,329 
Notes receivable from participants13,255,711 13,827,169 
Total receivables16,457,205 16,563,745 
Total assets1,607,014,195 1,398,259,381 
  
Liabilities
Distributions in transit and other32,808 316,140 
Due to broker for securities sold100,194 84,134 
Total liabilities133,002 400,274 
Net assets available for benefits$1,606,881,193 $1,397,859,107 
The accompanying notes are an integral part of these financial statements.

3
Telephone and Data Systems, Inc.
Tax-Deferred Savings Plan
  
Statement of Changes in Net Assets Available for Benefits
Year Ended December 31, 2021
  
Additions to plan assets attributed to 
Investment income: 
Interest and dividends$14,273,195 
Net appreciation in fair value of investments201,805,368 
Total investment income216,078,563 
  
Interest income on notes receivable from participants685,257 
  
Contributions: 
Participant67,351,603 
Participant rollover6,471,408 
Employer25,970,403 
Total contributions99,793,414 
  
Total additions316,557,234 
  
Deductions from plan assets attributed to
 
Benefits paid to participants106,001,605 
Administrative expenses1,533,543 
Total deductions107,535,148 
  
Net increase209,022,086 
  
Net assets available for benefits: 
Beginning of year1,397,859,107 
  
End of year$1,606,881,193 
  
The accompanying notes are an integral part of these financial statements.

4

Telephone and Data Systems, Inc.
Tax-Deferred Savings Plan
December 31, 2021 and 2020
Notes to Financial Statements

Note 1 Description of the Plan
The following description of the Telephone and Data Systems, Inc. Tax-Deferred Savings Plan (the Plan) provides only general information. Participants should refer to the Telephone and Data Systems, Inc. Tax-Deferred Savings Plan official plan document or summary plan description for a more complete description of the Plan's provisions.
General
The Plan is a contributory tax-qualified profit sharing plan established by Telephone and Data Systems, Inc. (TDS or the Company) and is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). The Company is the administrator and sponsor of the Plan and The Northern Trust Company (Northern Trust) is the directed trustee and asset custodian of the Plan. Northern Trust also provides record keeping and reporting services to the Plan in conjunction with Alight Solutions (Alight), the Plan's third party administrator. All employees of TDS and its subsidiaries which have adopted the Plan (the Company and such subsidiaries being referred to as “employers”) whom are age 18 or older generally are eligible to participate. Effective January 1, 2021, the eligible age to participate was reduced from age 21 to age 18. The Plan allows eligible employees to enter the Plan upon the latter of 30 days of continuous service with the employers or their 18th birthday. Participation in the Plan is voluntary, however, any eligible employee who does not enroll on his or her own, or opt out of automatic enrollment, will be automatically enrolled in the Plan starting on his or her eligibility date (or as soon as practicable thereafter). 
Contributions
Participants may contribute to the Plan on a pre-tax basis (before-tax contributions) or on a designated Roth basis (after-tax contributions). The combined pre-tax and designated Roth contributions may not exceed 60% of the Participant’s compensation, as defined in the Plan, or exceed the maximum annual contribution amount per participant set forth in the Internal Revenue Code (IRC).  Eligible employees and participants (including terminated participants with a balance) may also contribute amounts representing eligible distributions from other qualified plans or individual retirement accounts including the Telephone and Data Systems, Inc. Pension Plan (rollover contributions).
Newly eligible employees with 30 days of continuous service are automatically enrolled in the Plan on a pre-tax basis at a 6% deferral rate with the rate increasing by 1% annually until it reaches 15%, unless the employees elect otherwise. Effective January 1, 2021, the automatic enrollment annual escalation rate maximum was increased from 10% to 15%. Non-contributing employees may from time to time be automatically re-enrolled unless they make an affirmative election not to participate. The Vanguard Target Date Retirement Funds are used as the Qualified Default Investment Alternative for automatic enrollment. 
The employer matching contribution is 100% of the first 3% of a participant’s before-tax and designated Roth contributions and 40% of the next 2% of before-tax and designated Roth contributions.
Participants' Accounts and Investment Options
Each participant's account is credited with the participant's before-tax and designated Roth contributions, rollover contributions, employer matching contributions and investment income, and reduced by investment losses and fees. The benefit to which a participant is entitled is the benefit that can be provided from the participant's vested account.
The Plan's assets are overseen by the Investment Management Committee. The Investment Management Committee is authorized to select investment options and to invest Plan assets as directed by the participants (or in the absence of such a direction, as determined by the Investment Management Committee). Participants may invest their accounts in a variety of investment options as more fully described in the Plan's summary plan description and other Plan materials. Participants may change their investment elections via telephone or internet. Participants can direct no more than 20% of their contributions into the TDS Common Stock Fund and Common Stock Fund of United States Cellular Corporation (UScellular), a TDS subsidiary, on a combined basis. 
Vesting
Participants are always 100% vested in their before-tax, designated Roth and rollover contributions plus earnings thereon. Vesting in employer matching contributions plus earnings thereon is based on years of vesting service. Employer matching contributions plus earnings thereon vest 34% after the participant completes one year of vesting service; and 100% after the participant completes two years of vesting service.
A participant also becomes 100% vested in employer matching contributions plus earnings thereon upon termination of employment after attaining age 65 or due to death or total and permanent disability (as defined in the Plan and determined by the disability insurer). 
Forfeited Accounts
For the year ended December 31, 2021, forfeited non-vested accounts used to reduce employer contributions were $651,462. 
5

Telephone and Data Systems, Inc.
Tax-Deferred Savings Plan
December 31, 2021 and 2020
Notes to Financial Statements

Payment of Benefits
Vested benefits may be paid to the participant upon termination of employment in the form of a lump sum payment, partial distribution (of not less than $500) or installments. Alternatively, a terminated participant generally may rollover the eligible portion of his or her vested benefits to an eligible retirement plan or individual retirement account. Participants experiencing a qualified financial hardship, on a qualified military leave or who have attained age 59½ may withdraw a portion of their vested account balance as defined in the Plan while employed by TDS and its affiliates.
During 2020, the Plan was temporarily amended to allow participants, directly impacted by COVID-19, special tax-favored access to their retirement plan accounts. Participants were allowed to take an emergency relief distribution in an amount not to exceed $100,000 in accordance with the Coronavirus Aid, Relief, and Economic Security Act. The emergency relief distribution option ended on December 31, 2020 but repayments can be made up to 3 years following the distribution.
Additionally, effective July 1, 2021, the Plan was amended to allow participants to take a taxable distribution from their vested accounts while employed of up to $5,000 per child for eligible births or adoptions. Repayment is not required for eligible distributions.
Notes Receivable from Participants
Participants may borrow from their Plan accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their account balance (excluding employer matching contributions and related earnings). Participants may only have one note outstanding at a time and such note is secured by the remaining balance in the participant's account. The notes bear interest at the prime rate plus 1% as published in the Wall Street Journal on the fifteenth day of the month prior to the quarter in which the note is processed. Principal and interest are generally paid ratably through after-tax payroll deductions. Effective January 1, 2021, participants who terminated employment and have an outstanding loan balance generally may continue to make monthly loan repayments following their termination. The repayment period on the note generally ranges from one to five years. Notes are considered delinquent if two consecutive note payments are not received. If the delinquency is not cured, the loan will be considered in default and taxation of the loan balance to the participant will occur.

Termination of Plan
Although it has not expressed any intent to do so, the Company has the right under the Plan to terminate the Plan at any time subject to the provisions of ERISA. In the event of Plan termination, participants become 100% vested in their accounts.
Plan Expenses
Certain administrative, recordkeeping and trustee fees, as well as investment option expenses, are paid by Plan participants. Legal, auditing and investment consulting fees are paid by TDS. Plan participants also pay participant-initiated transaction fees (such as distribution, withdrawal, loan and Qualified Domestic Relations Order fees). 
Note 2 Summary of Significant Accounting Policies
Basis of Accounting and Use of Estimates
The accompanying financial statements have been prepared on the accrual basis of accounting. The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires the Plan's management to use estimates and assumptions that affect the accompanying financial statements and disclosures. Actual results could differ from these estimates and assumptions. 
Investment Valuation and Income Recognition
Investments are reported at fair value.  See Note 3 – Fair Value Measurements for further information on the fair value of the Plan’s investments. The Plan’s Investment Management Committee determines the Plan’s valuation policies utilizing information provided by the investment advisers and custodians. 
Net appreciation in fair value of investments included in the accompanying Statement of Changes in Net Assets Available for Benefits includes realized gains or losses from the sale of investments and unrealized appreciation or depreciation in the fair value of investments. The net realized gains or losses on the sale of investments represent the difference between the sale proceeds and the fair value of the investment as of the beginning of the period, or the cost of the investment if purchased during the year. Net unrealized appreciation or depreciation in the fair value of investments represents the net change in the fair value of the investments held during the year.
Purchases and sales of securities are recorded on a trade date basis. Interest income is recorded on the accrual basis, and dividends are recorded on the ex-dividend date.
6

Telephone and Data Systems, Inc.
Tax-Deferred Savings Plan
December 31, 2021 and 2020
Notes to Financial Statements

Notes Receivable from Participants
Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Interest income is recorded on the accrual basis. Delinquent participant notes are reclassified as distributions in accordance with the terms of the Plan document. Notes receivable from participants have been classified as an investment asset for Form 5500 reporting purposes and, accordingly, have been included as an investment in the supplemental schedule, Schedule H, Line 4i – Schedule of Assets (Held at End of Year).
Payment of Benefits
Benefit payments are recorded when paid.
Accounting for Uncertainty in Income Taxes
Management evaluated the Plan’s tax positions and concluded that the Plan had maintained its tax-exempt status and had taken no uncertain tax positions that require adjustment to the financial statements. Therefore, no provision or liability for income taxes has been included in the financial statements at December 31, 2021 or 2020. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.
Risks and Uncertainties
The Plan invests in various investment securities, including mutual funds, common collective trusts, and employer common stock. Investments, in general, are subject to various risks, including credit, interest, and overall market volatility risks. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in values of investment securities will occur in the near term, and such changes could materially affect participants’ account balances and the amounts reported in the Statements of Net Assets Available for Benefits.

Note 3 Fair Value Measurements
Fair value is a market based measurement and not an entity specific measurement, based on an exchange transaction in which the entity sells an asset or transfers a liability (exit price) in an orderly transaction between market participants. 
The provisions of GAAP establish a fair value hierarchy that contains three levels for inputs used in fair value measurements. 

Level 1 - inputs include quoted market prices for identical assets or liabilities in active markets.

Level 2 - inputs include quoted market prices for similar assets and liabilities in active markets or quoted market prices for identical assets and liabilities in inactive markets.

Level 3 - inputs are unobservable.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. A financial instrument’s level within the fair value hierarchy is not representative of its expected performance or its overall risk profile and, therefore, Level 3 assets are not necessarily higher risk than Level 2 assets or Level 1 assets. At December 31, 2021 and 2020, the Plan held no Level 2 or Level 3 assets. The following is a description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy.

The Plan values shares of TDS Common Stock and UScellular Common Stock based on the closing price reported in the active market in which the securities are traded. These securities are classified as Common Stock of the Plan Sponsor and Subsidiary. The Plan also values Mutual Funds based on the closing price reported in the active market in which the individual securities are traded. 
7

Telephone and Data Systems, Inc.
Tax-Deferred Savings Plan
December 31, 2021 and 2020
Notes to Financial Statements

The following tables set forth by level, within the fair value hierarchy, the Plan's investments at fair value at December 31, 2021 and 2020, respectively.
   
December 31, 2021Level 1Total
Mutual Funds$865,632,882 $865,632,882 
Common Stock of Plan Sponsor and Subsidiary18,666,475 18,666,475 
Total investments in the fair value hierarchy$884,299,357 $884,299,357 
Bank common trusts measured at net asset value  
Target retirement(1) (2)
 503,097,898 
Bond(1) (3)
 107,132,163 
Investment contracts(1) (4)
 96,027,572 
Total investments at fair value $1,590,556,990 
   
December 31, 2020Level 1Total
Mutual Funds$737,235,823 $737,235,823 
Common Stock of Plan Sponsor and Subsidiary17,239,371 17,239,371 
Total investments in the fair value hierarchy$754,475,194 $754,475,194 
Bank common trusts measured at net asset value  
Target retirement(1) (2)
 422,026,873 
Bond(1) (3)
 109,139,254 
Investment contracts(1) (4)
 96,054,315 
Total investments at fair value $1,381,695,636 
   
(1) Certain investments that are measured at fair value using the net asset value (NAV per share or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statements of Net Assets Available for Benefits.
 
(2) The Vanguard Target Retirement Trusts invest mainly in mutual funds with the remainder invested in money market funds. The fair value of these trusts is calculated using the market approach which values the underlying investments of the trust based on observable market prices. These trusts are measured at fair value based on the NAV per share.
 
(3) The BlackRock Intermediate Government/Credit Bond Index Fund F (BlackRock Bond Fund) is a bank maintained collective investment fund that invests in bond index funds and other short-term investments. The fair value is calculated using the market approach which values the underlying investments in the fund using observable inputs for similar assets. The BlackRock Bond Fund is measured at fair value based on the NAV per share.
 
(4) The Vanguard Retirement Savings Trust II is a collective trust that invests in the Vanguard Retirement Savings Master Trust, which invests in traditional and synthetic investment contracts backed by investments issued by insurance companies and banks. The fair value is determined based on the underlying investments of the common trust as traded in active markets or valued using significant observable inputs. The NAV for the investment contracts is $1 per share.
8

Telephone and Data Systems, Inc.
Tax-Deferred Savings Plan
December 31, 2021 and 2020
Notes to Financial Statements

The tables below summarize the Plan’s investments that are measured at fair value based on the net asset value per share at December 31, 2021 and 2020, respectively.
   
  
December 31, 2021Fair ValueUnfunded CommitmentsParticipant Redemption Frequency
Redemption Notice Period(1)
Bank common trusts
Target retirement$503,097,898 $—DailyOne month
Bond107,132,163 —DailyOne month
Investment contracts96,027,572 —DailyTwelve months
  
December 31, 2020Fair ValueUnfunded CommitmentsParticipant Redemption Frequency
Redemption Notice Period(1)
Bank common trusts
Target retirement$422,026,873 $—DailyOne month
Bond109,139,254 —DailyOne month
Investment contracts96,054,315 —DailyTwelve months
(1) There are no participant redemption restrictions for these investments. The redemption notice period is applicable only to the Plan.

Note 4 Parties-in-Interest
Transactions between the Plan and certain parties meet the definition of parties-in-interest transactions under the provisions of ERISA (Parties-in-interest transactions).

Transactions with Northern Trust, the directed trustee of the Plan, Alight, provider of certain reporting and administrative services to the Plan, and BlackRock, provider of investment management services, are Parties-in-interest transactions. The aggregate cost of administrative and investment management charges to the Plan by Northern Trust, Alight, and BlackRock, paid by the Plan, was $1,649,669 for the year ended December 31, 2021.

The Plan made participant-directed purchases of $2,239,135 and sales of $2,084,309 of TDS and UScellular Common Stock on an aggregate basis for the year ended December 31, 2021, which are Parties-in-interest transactions. Additionally, the Plan loaned $6,841,503 to participants, and participants paid back loans of $8,093,929, during the year ended December 31, 2021, which are Parties-in-interest transactions.
Outstanding Notes receivable from participants, and the related interest income on Notes receivable from participants, for the year ended December 31, 2021 are presented on the Statement of Net Assets Available for Benefits and the Statement of Changes in Net Assets Available for Benefits, respectively.
Note 5 Tax Status
The Plan obtained its latest determination letter on February 25, 2015 in which the Internal Revenue Service stated that the Plan, as designed, complied with the applicable requirements of the IRC, and the related trust was exempt from taxation. The Plan has been amended since the receipt of the determination letter. The Plan Administrator believes that the Plan is designed and being operated in material compliance with the applicable requirements of the IRC. Therefore, the Plan Administrator believes that the Plan was qualified and the related trust was tax-exempt at December 31, 2021.
9

Telephone and Data Systems, Inc.
Tax-Deferred Savings Plan
December 31, 2021 and 2020
Notes to Financial Statements

Note 6 Reconciliation of Financial Statements to Form 5500
A reconciliation between the financial statements and Form 5500 at December 31, 2021 and 2020 is as follows:
 20212020
Total net assets per Form 5500, Schedule H$1,606,797,398 $1,397,834,637 
Deemed distributions of notes receivable from participants83,795 24,470 
Net Assets Available for Benefits Per Financial Statements$1,606,881,193 $1,397,859,107 
Change in net assets per Form 5500, Schedule H$208,962,761  
Change in deemed distributions of notes receivable from participants59,325  
Changes in Net Assets Available for Benefits Per Financial Statements$209,022,086  
Note 7 Subsequent Events
The Plan’s management evaluated subsequent events from December 31, 2021 through June 28, 2022, the date these financial statements were issued. There have been no significant subsequent events during this period that require adjustments to or disclosure in the financial statements as of December 31, 2021 and for the year then ended.
10
Telephone and Data Systems, Inc.
Tax-Deferred Savings Plan
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
Plan 003 EIN 36-2669023
December 31, 2021
    
    
(a)(b)(c)(d)(e)
Identity of Issue, Borrower, Lessor, or Similar PartyDescription of Investment Including Maturity Date,
Rate of Interest, Collateral, Par or Maturity Value		CostCurrent Value
 Bank Common Trusts    
 Vanguard Retirement Savings Trust II96,027,572 
Shares 
**$96,027,572 
 Vanguard Target Retirement Income Trust II238,741 
Shares 
**10,430,600 
 Vanguard Target 2015 Retirement Trust II145,125 
Shares 
**6,132,966 
 Vanguard Target 2020 Retirement Trust II446,484 
Shares 
**20,109,658 
 Vanguard Target 2025 Retirement Trust II1,149,837 Shares **53,605,380 
 Vanguard Target 2030 Retirement Trust II1,481,139 
Shares 
**70,294,856 
 Vanguard Target 2035 Retirement Trust II1,545,717 
Shares 
**76,342,971 
 Vanguard Target 2040 Retirement Trust II1,341,846 
Shares 
**70,004,116 
 Vanguard Target 2045 Retirement Trust II1,423,632 
Shares 
**76,463,260 
 Vanguard Target 2050 Retirement Trust II1,265,118 
Shares 
**68,506,135 
 Vanguard Target 2055 Retirement Trust II536,134 
Shares 
**38,880,470 
 Vanguard Target 2060 Retirement Trust II202,855 
Shares 
**11,605,349 
Vanguard Target 2065 Retirement Trust II20,498 
Shares 
**722,137 
 BlackRock Intermediate Government/Credit Bond Index Fund F3,543,281 
Shares 
**107,132,163 
 Common Stock of Plan Sponsor and Subsidiary    
*Telephone and Data Systems, Inc.517,323 
Shares 
**10,424,058 
*United States Cellular Corporation261,498 
Shares 
**8,242,417 
 Mutual Funds    
 Vanguard Institutional Index Fund Institutional Plus Shares553,897 
Shares 
**224,771,256 
 Vanguard Small Cap Value Index Fund1,769,269 
Shares 
**75,972,416 
 Vanguard Value Index Fund1,753,124 
Shares 
**100,576,706 
 Vanguard Small Cap Growth Index Fund1,031,652 
Shares 
**81,799,683 
 Vanguard Growth Index Fund1,365,299 
Shares 
**225,492,735 
 Vanguard Total International Stock Index Fund1,145,658 
Shares 
**156,726,030 
*Northern Institutional Funds U.S. Government Select Portfolio294,056 
Shares 
**294,056 
*ParticipantsParticipant loans (interest rates range from 4.25% to 8.25%, maturing through April 2027) ***13,171,916 
     $1,603,728,906 
* Represents a party-in-interest, as defined by ERISA.    
** Cost omitted for participant-directed investments.    
*** Certain notes originated outside the plan may bear interest at different rates.    


11
Exhibits
12

Signatures
 
Pursuant to the requirements of the Securities and Exchange Act of 1934, Telephone and Data Systems, Inc., the Plan Administrator, has duly caused this Annual Report on Form 11-K to be signed on its behalf by the undersigned hereunto duly authorized.
 
    TELEPHONE AND DATA SYSTEMS, INC.
    TAX-DEFERRED SAVINGS PLAN
         
    By: /s/ Daniel J. DeWitt
      Daniel J. DeWitt
      Senior Vice President - Human Resources
    By: /s/ Anita J. Kroll
      Anita J. Kroll
      Vice President - Controller and Chief Accounting Officer
Dated:June 28, 2022