Revision of Prior Period Amounts

9 Months Ended

Sep. 30, 2011

Disclosure Text Block [Abstract]

Revision of prior period amounts

2. Revision of Prior Period Amounts

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. The December 31, 2007 Retained earnings balance presented in the December 31, 2010 annual financial statements was also overstated as a result of these errors. 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, 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 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 are reflected in the financial information herein and will be reflected in future filings containing such financial information. In addition, TDS has recorded adjustments to prior-year amounts to correct other immaterial items.In total, the impact of all errors was an increase to Retained earnings of $1.0 million, $2.4 million and $2.2 million in 2010, 2009 and 2008, respectively.

The Consolidated Balance Sheet at December 31, 2010 was revised to reflect the cumulative effect of these errors which resulted in an increase to Retained earnings of $4.0 million.  In accordance with SAB 108, the Consolidated Balance Sheet, the Consolidated Statement of Operations and the Consolidated Statement of Cash Flows have been revised as follows:

Consolidated Balance Sheet -- December 31, 2010
			As previously
	(Dollars in thousands)		reported (1)			Adjustment			Revised
	Income taxes receivable	$	64,386		$	599		$	64,985
	Total current assets		1,596,076			599			1,596,675
	Property, plant and equipment, net		3,558,334			(40,550	)		3,517,784
	Total assets		7,762,519			(39,951	)		7,722,568
	Accrued interest		2,718			1,590			4,308
	Total current liabilities		810,633			1,590			812,223
	Net deferred income tax liability		585,468			3,624			589,092
	Other deferred liabilities and credits		404,892			(50,094	)		354,798
	Retained earnings		2,446,626			3,973			2,450,599
	Total TDS shareholders' equity		3,813,922			3,973			3,817,895
	Noncontrolling interests		646,057			956			647,013
	Total equity		4,460,809			4,929			4,465,738
	Total liabilities and equity		7,762,519			(39,951	)		7,722,568
Consolidated Statement of Operations -- Three Months Ended September 30, 2010
			As previously
	(Dollars in thousands)		reported (2)			Adjustment			Revised
	Depreciation, amortization and accretion	$	190,972		$	(1,526	)	$	189,446
	Total operating expenses		1,183,255			(1,526	)		1,181,729
	Operating income		83,161			1,526			84,687
	Income before income taxes		81,358			1,526			82,884
	Income tax expense		28,775			579			29,354
	Net income		52,583			947			53,530
	Net income attributable to noncontrolling interests, net of tax		(11,958	)		(153	)		(12,111	)
	Net income attributable to TDS shareholders		40,625			794			41,419
	Net income available to common shareholders		40,613			794			41,407
	Basic earnings per share attributable to TDS shareholders		0.39			—			0.39
	Diluted earnings per share attributable to TDS shareholders		0.38			0.01			0.39
Consolidated Statement of Operations -- Nine Months Ended September 30, 2010
			As previously
	(Dollars in thousands)		reported (2)			Adjustment			Revised
	Depreciation, amortization and accretion	$	570,619		$	(4,574	)	$	566,045
	Total operating expenses		3,449,532			(4,574	)		3,444,958
	Operating income		271,538			4,574			276,112
	Income before income taxes		265,408			4,574			269,982
	Income tax expense		98,167			1,737			99,904
	Net income		167,241			2,837			170,078
	Net income attributable to noncontrolling interests, net of tax		(37,915	)		(458	)		(38,373	)
	Net income attributable to TDS shareholders		129,326			2,379			131,705
	Net income available to common shareholders		129,289			2,379			131,668
	Basic earnings per share attributable to TDS shareholders		1.23			0.02			1.25
	Diluted earnings per share attributable to TDS shareholders		1.22			0.02			1.24
Consolidated Statement of Cash Flows -- Nine Months Ended September 30, 2010
			As previously
	(Dollars in thousands)		reported (2)			Adjustment			Revised
	Net income	$	167,241		$	2,837		$	170,078
	Depreciation, amortization and accretion		570,619			(4,574	)		566,045
	Deferred income taxes, net		55,102			1,737			56,839
	Cash flows from operating activities		764,780			—			764,780

• In Annual Report on Form 10-K for the year ended December 31, 2010, filed on February 25, 2011.
• In Quarterly Report on Form 10-Q for the period ended September 30, 2010, filed on November 4, 2010.