Revision of Prior Period Amounts

3 Months Ended

Mar. 31, 2012

Disclosure Text Block

Revision of Prior Period Amounts

2. Revision of Prior Period Amounts

In preparing its Consolidated Statement of Cash Flows for the year ended December 31, 2011, TDS discovered certain errors related to the classification of outstanding checks with the right of offset and the classification of Accounts payable for Additions to property, plant and equipment. These errors resulted in the misstatement of Cash and cash equivalents and Accounts payable as of December 31, 2010 and each quarterly period in 2011, and the misstatement of Cash flows from operating activities and Cash flows from investing activities for the years ended December 31, 2010 and 2009 and each of the quarterly periods in 2011 and 2010. In accordance with SEC Staff Accounting Bulletin Nos. 99 and 108 ("SAB 99" and "SAB 108"), TDS evaluated these errors and determined that they were immaterial to each of the reporting periods affected and, therefore, amendment of previously filed reports was not required. However, in order to provide consistency in the Consolidated Statement of Cash Flows and as permitted by SAB 108, revisions for these immaterial amounts to previously reported amounts were reflected in the financial information as of and for the periods ended December 31, 2011, are reflected in the financial information herein and will be reflected in future filings containing such financial information.

In preparing its financial statements for the nine months ended September 30, 2011, TDS discovered certain errors related to accounting for asset retirement obligations and asset retirement costs. These errors resulted in the overstatement of Total operating expenses, Property, plant and equipment, net and Other deferred liabilitiesand credits in the first and second quarter 2011 interim financial statements and in the 2010, 2009 and 2008 annual periods reported in the Company's December 31, 2010 financial statements. In addition to these errors, TDS identified two other immaterial errors, related to interest expense and income tax expense that impacted the year ended December 31, 2010. The December 31, 2007 Retained earnings balance presented in the December 31, 2010 annual financial statements also wasoverstated as a result of these errors. In accordance with SAB 99 andSAB 108, TDS evaluated these errors and determined that they were immaterial to each of the reporting periods affected and, therefore, amendments of previously filed reports were not required. However, if the adjustments to correct the cumulative errors had been recorded in the third quarter 2011, TDS believes that the impact would have been significant to the third quarter results and would have impacted comparisons to prior periods. As permitted by SAB 108, revisions for these immaterial amounts to previously reported annual and quarterly results were reflected in the financial information as of and for the periods ended September 30, 2011 and December 31, 2011, are reflected in the financial information herein and will be reflected in future filings containing such financial information.

In accordance with SAB 108, the combined effects of the foregoing revisions to theConsolidated Statement of Operations and the Consolidated Statement of Cash Flows were as follows:

Consolidated Statement of Operations -- Three Months Ended March 31, 2011
			As previously
	(Dollars in thousands)		reported (1)			Adjustment			Revised
	Depreciation, amortization and accretion	$	192,518		$	(1,705	)	$	190,813
	Total operating expenses		1,171,513			(1,705	)		1,169,808
	Operating income		87,168			1,705			88,873
	Interest expense		(28,099	)		1,590			(26,509	)
	Total investment and other income (expense)		(6,007	)		1,590			(4,417	)
	Income before income taxes		81,161			3,295			84,456
	Income tax expense		28,917			1,242			30,159
	Net income		52,244			2,053			54,297
	Net income attributable to noncontrolling interests, net of tax		(10,622	)		(171	)		(10,793	)
	Net income attributable to TDS shareholders		41,622			1,882			43,504
	Net income available to common shareholders		41,610			1,882			43,492
	Basic earnings per share attributable to TDS shareholders		0.40			—			0.40
	Diluted earnings per share attributable to TDS shareholders		0.40			(0.01	)		0.39
Consolidated Statement of Cash Flows -- Three Months Ended March 31, 2011
			As previously
	(Dollars in thousands)		reported (1)			Adjustment			Revised
	Net income	$	52,244		$	2,053		$	54,297
	Depreciation, amortization and accretion		192,518			(1,705	)		190,813
	Change in Accounts payable		(15,134	)		71,323			56,189
	Change in Accrued taxes		17,590			1,242			18,832
	Change in Accrued interest		16,662			(1,590	)		15,072
	Change in Other assets and liabilities		(87,661	)		(71	)		(87,732	)
	Cash flows from operating activities		261,790			71,252			333,042
	Cash used for additions to property, plant and equipment		(127,463	)		(30,434	)		(157,897	)
	Cash flows from investing activities		(288,681	)		(30,434	)		(319,115	)
	Net increase (decrease) in cash and cash equivalents		223,876			40,818			264,694

• In Quarterly Report on Form 10-Q for the period ended March 31, 2011, filed on May 6, 2011.