Income Taxes

3 Months Ended

Mar. 31, 2013

Disclosure Text Block

Income Taxes

3. Income Taxes

TDS' overall effective tax rate on Income before income taxes for the three months ended March 31, 2013 and March 31, 2012 was 37.4% and 28.9%, respectively. The effective tax rate for the three months ended March 31, 2013washigher than the rate for the three months ended March 31, 2012 primarily as a result of tax benefits related to the expiration of the statute of limitations for certain tax years and the adjustment of deferred tax balances related to certain partnership investments in 2012.

TDS incurred a federal net operating loss in 2011 largely attributable to 100% bonus depreciation applicable to qualified capital expenditures. TDS carried back this federal net operating loss to prior tax years, and received a $71.4 million federal income tax refund in 2012 for carrybacks to 2009 and 2010 tax years. Of this amount, $59.9 million of the refund was received in the three months ended March 31, 2012.