-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Be/F5MNt2C1Tzbg0nQT2JHRPHxc9Jfp5OSxXTWddeUKIqlC++wIc5XQHIYr9Ge5l 7ZTU8R+pENsVVVVZ/Ynekw== 0000096966-97-000018.txt : 19970701 0000096966-97-000018.hdr.sgml : 19970701 ACCESSION NUMBER: 0000096966-97-000018 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970630 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: TELEPHONE & DATA SYSTEMS INC CENTRAL INDEX KEY: 0000096966 STANDARD INDUSTRIAL CLASSIFICATION: RADIO TELEPHONE COMMUNICATIONS [4812] IRS NUMBER: 362669023 STATE OF INCORPORATION: IA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08251 FILM NUMBER: 97632402 BUSINESS ADDRESS: STREET 1: 30 NORTH LASALLE STREET SUITE 400 CITY: CHICAGO STATE: IL ZIP: 60602 BUSINESS PHONE: 6088288324 MAIL ADDRESS: STREET 1: 30 NORTH LASALLE STREE SUITE 400 CITY: CHICAGO STATE: IL ZIP: 60602 FORMER COMPANY: FORMER CONFORMED NAME: TELEPHONE SYSTEMS INC STOCK OPTION PLANS DATE OF NAME CHANGE: 19741118 FORMER COMPANY: FORMER CONFORMED NAME: TELEPHONE SYSTEMS INC DATE OF NAME CHANGE: 19740509 11-K 1 FORM 11-K SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 11-K ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One) [ X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED) For the fiscal year ended December 31, 1996 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED) For the transition period from _____ to _____ Commission file number 1-8251 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 40th Floor 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 40th Floor Chicago, IL 60602 United States Cellular Corporation 8410 West Bryn Mawr Ave. Suite 700 Chicago, IL 60631 American Paging, Inc. 1300 Godward St., NE Suite 3100 Minneapolis, MN 55413 Aerial Communications, Inc. 8410 West Bryn Mawr Avenue Suite 1100 Chicago, IL 60631 Required Information (a) Financial Statements 1 Audited Statements of Net Assets Available for Benefits as of December 31, 1996 and December 31, 1995. 2. Audited Statements of Changes in Net Assets Available for Benefits for the year ended December 31, 1996, for the year ended December 31, 1995 and for the year ended December 31, 1994. 3. Notes to Financial Statements. 4. Schedule I - Schedule of Reportable Transactions 5. Schedule II - Assets Held for Investment Purposes (b) Exhibits No. Description --- ----------- 1. Consent of Independent Public Accountants Signatures The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees have 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/ LeRoy T. Carlson, Jr. ------------------------------------ LeRoy T. Carlson, Jr., Trustee /s/ C. Theodore Herbert ------------------------------------ C. Theodore Herbert, Trustee /s/ Ronald D. Webster ------------------------------------ Ronald D. Webster, Trustee /s/ Michael G. Hron ------------------------------------ Michael G. Hron, Trustee Dated: June 25, 1997 Telephone and Data Systems, Inc. Tax-Deferred Savings Plan Financial Statements As of December 31, 1996 and December 31, 1995 Together with Independent Auditor's Report Independent Auditor's Report To the Trustees of: TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN Chicago, Illinois We have audited the accompanying statements of net assets available for benefits of the TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN as of December 31, 1996 and 1995, and the related statements of changes in net assets available for benefits for the years ended December 31, 1996, 1995 and 1994. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the TELEPHONE AND DATA SYSTEMS, INC. TAX- DEFERRED SAVINGS PLAN as of December 31, 1996 and 1995, and the changes in net assets available for benefits for the years ended December 31, 1996, 1995 and 1994 in conformity with generally accepted accounting principles. McGladery & Pullen, LLP Madison, Wisconsin March 28, 1997 TELEPHONE AND DATA SYSTEMS, INC TAX-DEFERRED SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS December 31, 1996 Participant Directed ------------------------------------------------ Lasalle Income Vanguard Vanguard Fidelity Plus GNMA Index 500 Growth ----------- ----------- ---------- ----------- ASSETS Investments, at fair value Money market accounts $ 209,193 $ 58,947 $ 266,403 $ 379,993 Common stock 0 0 0 0 Mutual funds 3,908,265 1,510,276 5,651,725 8,582,462 Plan loans 0 0 0 0 ---------- ---------- ---------- ---------- $4,117,458 $1,569,223 $5,918,128 $8,962,455 ---------- ---------- ---------- ---------- Receivables Employer contributions $ 0 $ 0 $ 0 $ 0 Participant contributions 7,655 5,664 21,991 28,694 Accrued interest and dividends 21,258 159 585 7,042 Other receivables 9,171 1,637 3,023 1,960 ---------- ---------- ---------- ---------- $ 38,084 $ 7,460 $ 25,599 $ 37,696 ---------- ---------- ---------- ---------- Total assets $4,155,542 $1,576,683 $5,943,727 $9,000,151 ---------- ---------- ---------- ---------- LIABILITIES Accounts payable $ 41,661 $ 641 $ 3,004 $ 7,791 ---------- ---------- ---------- ---------- Total liabilities $ 41,661 $ 641 $ 3,004 $ 7,791 ---------- ---------- ---------- ---------- NET ASSETS AVAILABLE FOR BENEFITS $4,113,881 $1,576,042 $5,940,723 $8,992,360 ========== ========== ========== ========== The accompanying notes are an integral part of these financial statements. TELEPHONE AND DATA SYSTEMS, INC TAX-DEFERRED SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS December 31, 1996 Participant Directed ------------- Warburg International ------------- ASSETS Investments, at fair value Money market accounts $ 98,317 Common stock 0 Mutual funds 1,638,134 Plan loans 0 ---------- $1,736,451 ---------- Receivables Employer contributions $ 0 Participant contributions 9,736 Accrued interest and dividends 298 Other receivables 180 ---------- $ 10,214 ---------- Total assets $1,746,665 ---------- LIABILITIES Accounts payable $ 2,088 ---------- Total liabilities $ 2,088 ---------- NET ASSETS AVAILABLE FOR BENEFITS $1,744,577 ========== The accompanying notes are an integral part of these financial statements. TELEPHONE AND DATA SYSTEMS, INC TAX-DEFERRED SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS December 31, 1996 Participant Directed ------------------------------------------------- TDS USCC API Aerial Common Common Common Common Stock Stock Stock Stock ---------- ---------- ---------- ---------- ASSETS Investments, at fair value Money market accounts $ 144,944 $ 111,817 $ 12,323 $ 21,641 Common stock 5,989,080 3,190,656 154,172 190,613 Mutual funds 0 0 0 0 Plan loans 0 0 0 0 ---------- ---------- ---------- ----------- $6,134,024 $3,302,473 $ 166,495 $ 212,254 ---------- ---------- ---------- ----------- Receivables Employer contributions $ 0 $ 0 $ 0 $ 0 Participant contributions 16,922 15,018 273 (2,415) Accrued interest and dividends 377 318 35 88 Other receivables 1,873 4,398 52 51 ---------- --------- ---------- ----------- $ 19,172 $ 19,734 $ 360 $ (2,276) ---------- --------- ---------- ------------ Total assets $6,153,196 $3,322,207 $ 166,855 $ 209,978 ---------- ---------- ---------- ------------ LIABILITIES Accounts payable $ 4,191 $ 1,886 $ 78 $ 256 ---------- ---------- --------- ------------ Total liabilities $ 4,191 $ 1,886 $ 78 $ 256 ---------- ---------- --------- ----------- NET ASSETS AVAILABLE FOR BENEFITS $6,149,005 $3,320,321 $ 166,777 $ 209,722 ========== ========== ========= =========== The accompanying notes are an integral part of these financial statements. TELEPHONE AND DATA SYSTEMS, INC TAX-DEFERRED SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS December 31, 1996 Company Match ------------------------------------- TDS USCC API Common Common Common Loans Stock Stock Stock ---------- ---------- ----------- ----------- ASSETS Investments, at fair value Money market accounts $ 0 $ 12,143 $ 6,458 $ (1,159) Common stock 0 1,528,699 333,190 32,658 Mutual funds 0 0 0 0 Plan loans 707,944 0 0 0 ---------- ---------- ----------- ---------- $ 707,944 $1,540,842 $ 339,648 $ 31,499 ---------- ----------- ----------- ---------- Receivables Employer contributions $ 0 $ 632,734 $ 601,115 $ 115,143 Participant contributions 0 0 0 0 Accrued interest and dividends 0 0 0 0 Other receivables 0 0 0 0 ---------- ---------- ----------- ---------- $ 0 $ 632,734 $ 601,115 $ 115,143 ---------- ---------- ----------- ---------- Total assets $ 707,944 $2,173,576 $ 940,763 $ 146,642 ---------- ---------- ----------- ---------- LIABILITIES Accounts payable $ 0 $ 142 $ 0 $ 3 ---------- ---------- ----------- ---------- Total liabilities $ 0 $ 142 $ 0 $ 3 ---------- ---------- ----------- ---------- NET ASSETS AVAILABLE FOR BENEFITS $ 707,944 $2,173,434 $ 940,763 $ 146,639 ========== ========== =========== ========== The accompanying notes are an integral part of these financial statements. TELEPHONE AND DATA SYSTEMS, INC TAX-DEFERRED SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS December 31, 1996 Company Match ---------------------------- AERIAL Common Stock Total ---------- ----------- ASSETS Investments, at fair value Money market accounts $ 0 $ 1,321,020 Common stock 0 11,419,068 Mutual funds 0 21,290,862 Plan loans 0 707,944 ---------- ----------- $ 0 $34,738,894 ---------- ----------- Receivables Employer contributions $ 65,005 $ 1,413,997 Participant contributions 0 103,538 Accrued interest and dividends 0 30,160 Other receivables 0 22,345 ---------- ----------- $ 65,005 $ 1,570,040 ---------- ----------- Total assets $ 65,005 $36,308,934 ---------- ----------- LIABILITIES Accounts payable $ 0 $ 61,741 ---------- ----------- Total liabilities $ 0 $ 61,741 ---------- ----------- NET ASSETS AVAILABLE FOR BENEFITS $ 65,005 $36,247,193 ========== =========== The accompanying notes are an integral part of these financial statements. TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS December 31, 1995 Participant Directed ------------------------------------------------- Lasalle ANB Income Vanguard S&P Fidelity Plus GNMA 500 Index Growth ---------- ---------- ---------- ----------- ASSETS Investments, at fair value Money market accounts $ 56,452 $ 8,718 $ 34,113 $ 47,219 Common stock 0 0 0 0 Mutual funds 3,381,293 1,018,550 3,223,356 4,523,625 Plan loans 0 0 0 0 ---------- ---------- ---------- ----------- $3,437,745 $1,027,268 $3,257,469 $ 4,570,844 ---------- ---------- ---------- ----------- Receivables Employer contributions $ 0 $ 0 $ 0 $ 0 Participant contributions 6,326 2,864 6,123 11,080 Accrued interest and dividends 17,720 132 283 512 Other receivables 3,046 10 1,289 63 ---------- ---------- ---------- ----------- $ 27,092 $ 3,006 $ 7,695 $ 11,655 ---------- ---------- ---------- ----------- Total assets $3,464,837 $1,030,274 $3,265,164 $ 4,582,499 ---------- ---------- ---------- ----------- LIABILITIES Accounts payable $ 152 $ 239 $ 2,591 $ 600 ---------- ---------- ---------- ----------- Total liabilities $ 152 $ 239 $ 2,591 $ 600 ---------- ---------- ---------- ----------- NET ASSETS AVAILABLE FOR BENEFITS $3,464,685 $1,030,035 $3,262,573 $ 4,581,899 ========== ========== ========== =========== The accompanying notes are an integral part of these financial statements. TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS December 31, 1995 Participant Directed ------------ Warburg International ------------ ASSETS Investments, at fair value Money market accounts $ (17,487) Common stock 0 Mutual funds 531,120 Plan loans 0 ---------- $ 513,633 ---------- Receivables Employer contributions $ 0 Participant contributions 2,704 Accrued interest and dividends 125 Other receivables 1,263 ---------- $ 4,092 ---------- Total assets $ 517,725 ---------- LIABILITIES Accounts payable $ 40 ---------- Total liabilities $ 40 ---------- NET ASSETS AVAILABLE FOR BENEFITS $ 517,685 ========== The accompanying notes are an integral part of these financial statements. TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS December 31, 1995 Participant Directed ----------------------------------- TDS USCC API Common Common Common Stock Stock Stock Loans ---------- ---------- ---------- ---------- ASSETS Investments, at fair value Money market accounts $ 107,297 $ 45,722 $ (6,296) $ 0 Common stock 7,918,605 3,861,236 200,513 0 Mutual funds 0 0 0 0 Plan loans 0 0 0 561,290 ---------- ---------- ---------- ---------- $8,025,902 $3,906,958 $ 194,217 $ 561,290 ---------- ---------- ---------- ---------- Receivables Employer contributions $ 0 $ 0 $ 0 $ 0 Participant contributions 12,416 8,744 882 0 Accrued interest and dividends 574 404 41 0 Other receivables 12,228 3,494 12 0 ---------- ---------- ---------- ---------- $ 25,218 $ 12,642 $ 935 $ 0 ---------- ---------- ---------- ---------- Total assets $8,051,120 $3,919,600 $ 195,152 $ 561,290 ---------- ---------- ---------- ---------- LIABILITIES Accounts payable $ 41,271 $ 40,260 $ 38 $ 0 ---------- ---------- ---------- ---------- Total liabilities $ 41,271 $ 40,260 $ 38 $ 0 ---------- ---------- --------- ---------- NET ASSETS AVAILABLE FOR BENEFITS $8,009,849 $3,879,340 $ 195,114 $ 561,290 ========== ========== ========= ========== The accompanying notes are an integral part of these financial statements. TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS December 31, 1995 Company Match --------------------------------- TDS USCC API Common Common Common Stock Stock Stock Total ---------- ---------- --------- ------------ ASSETS Investments, at fair value Money market accounts $ (3,464) $ 3,593 $ 0 $ 275,867 Common stock 1,252,822 244,215 0 13,477,391 Mutual funds 0 0 0 12,677,944 Plan loans 0 0 0 561,290 ---------- ---------- --------- ------------ $1,249,358 $ 247,808 $ 0 $ 26,992,492 ---------- ---------- --------- ------------ Receivables Employer contributions $ 497,338 $ 191,498 $ 58,593 $ 747,429 Participant contributions 0 0 0 51,139 Accrued interest and dividends 0 0 0 19,791 Other receivables 0 0 0 21,405 ---------- ---------- --------- ------------ $ 497,338 $ 191,498 $ 58,593 $ 839,764 ---------- ---------- --------- ------------ Total assets $1,746,696 $ 439,306 $ 58,593 $ 27,832,256 ---------- ---------- --------- ------------ LIABILITIES Accounts payable $ 5,110 $ 2,527 $ 0 $ 92,828 ---------- ---------- --------- ------------ Total liabilities $ 5,110 $ 2,527 $ 0 $ 92,828 ---------- ---------- --------- ------------ NET ASSETS AVAILABLE FOR BENEFITS $1,741,586 $ 436,779 $ 58,593 $ 27,739,428 ========== ========== ========= ============ The accompanying notes are an integral part of these financial statements. TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS Year Ended December 31, 1996 Participant Directed ----------------------------------------------- LaSalle Income Vanguard Vanguard Fidelity Plus GNMA Index 500 Growth ---------- ---------- ---------- ----------- Investment Income: Net appreciation (depreciation) in fair value of investments $ 0 $ (19,500) $ 773,409 $ 747,403 Interest 3,392 1,719 4,838 9,023 Dividends 227,822 92,935 117,329 335,714 ---------- ----------- ---------- ---------- $ 231,214 $ 75,154 $ 895,576 $1,092,140 Less investment expenses (13,530) (35) (2,237) (165) ---------- ---------- ---------- ---------- $ 217,684 $ 75,119 $ 893,339 $1,091,975 ---------- ---------- ---------- ---------- Contributions Employer $ 0 $ 0 $ 0 $ 0 Participants 822,836 423,709 1,186,006 2,211,718 Participant fund transfers 172,671 46,784 164,922 308,241 Forfeitures 0 0 0 0 Transfers between investments (108,818) 90,155 702,594 1,263,512 ---------- ---------- ---------- ----------- $ 886,689 $ 560,648 $2,053,522 $3,783,471 ---------- ---------- ---------- ----------- Total additions $1,104,373 $ 635,767 $2,946,861 $4,875,446 ---------- ---------- ---------- ----------- Benefits paid $ 455,177 $ 89,760 $ 268,711 $ 464,985 ---------- ---------- ---------- ----------- Net increase (decrease) $ 649,196 $ 546,007 $2,678,150 $4,410,461 Net assets available for benefits Beginning of year $3,464,685 $1,030,035 $3,262,573 $4,581,899 ---------- ---------- ---------- ----------- End of year $4,113,881 $1,576,042 $5,940,723 $8,992,360 ========== ========== ========== =========== The accompanying notes are an integral part of these financial statements. TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS Year Ended December 31, 1996 Participant Directed ------------------------------------------------- TDS USCC API Warburg Common Common Common International Stock Stock Stock ----------- ------------ ---------- ----------- Investment Income: Net appreciation (depreciation) in fair value of investments $ 36,804 $ (375,828) $ (652,687) $ (54,919) Interest 2,310 6,506 4,629 378 Dividends 64,184 69,953 0 0 ---------- ------------ ---------- ---------- $ 103,298 $ (299,369) $ (648,058) $ (54,541) Less investment expenses (39) (122) (92) (8) ---------- ----------- ---------- ---------- $ 103,259 $ (299,491) $ (648,150) $ (54,549) ---------- ----------- ---------- ---------- Contributions Employer $ 0 $ 0 $ 0 $ 0 Participants 563,061 1,245,460 976,138 82,934 Participant fund transfers 79,019 37,789 163,863 7,187 Forfeitures 0 0 0 0 Transfers between investments 579,584 (2,045,222) (714,407) (48,903) ---------- ---------- ---------- ---------- $1,221,664 $ (761,973) $ 425,594 $ 41,218 ---------- ---------- ---------- ---------- Total additions $1,324,923 $(1,061,464) $ (222,556) $ (13,331) ---------- ----------- ---------- ---------- Benefits paid $ 98,031 $ 799,380 $ 336,463 $ 15,006 ---------- ----------- ---------- ---------- Net increase (decrease) $1,226,892 $(1,860,844) $ (559,019) $ (28,337) Net assets available for benefits Beginning of year $ 517,685 $ 8,009,849 $ 3,879,340 $ 195,114 ---------- ----------- ----------- ---------- End of year $1,744,577 $ 6,149,005 $ 3,320,321 $ 166,777 ========== =========== =========== ========== The accompanying notes are an integral part of these financial statements. TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS Year Ended December 31, 1996 Participant Directed Company Match ----------- ------------------------- AERIAL TDS USCC Common Common Common Stock Loans Stock Stock ---------- ----------- ---------- ------------ Investment Income: Net appreciation (depreciation) in fair value of investments $ (30,219) $ 0 $ (146,592) $ (74,696) Interest 257 49,251 1,002 381 Dividends 0 0 17,379 0 ---------- ----------- ---------- ------------ $ (29,962) $ 49,251 $ (128,211) $ (74,315) Less investment expenses 0 0 0 0 ---------- ----------- ---------- ------------ $ (29,962) $ 49,251 $ (128,211) $ (74,315) ---------- ----------- ---------- ------------ Contributions Employer $ 0 $ 0 $ 700,579 $ 621,227 Participants 57,497 0 0 0 Participant fund transfers 23,810 0 0 0 Forfeitures 0 0 (867) (982) Transfers between investments 158,377 120,398 0 2,730 ---------- ----------- ---------- ------------ $ 239,684 $ 120,398 $ 699,712 $ 622,975 ---------- ----------- ---------- ------------ Total additions $ 209,722 $ 169,649 $ 571,501 $ 548,660 ---------- ----------- ---------- ------------ Benefits paid $ 0 $ 22,995 $ 139,653 $ 44,676 ---------- ----------- ---------- ------------ Net increase (decrease) $ 209,722 $ 146,654 $ 431,848 $ 503,984 Net assets available for benefits Beginning of year $ 0 $ 561,290 $1,741,586 $ 436,779 ---------- ----------- ---------- ------------ End of year $ 209,722 $ 707,944 $2,173,434 $ 940,763 ========== =========== ========== ============ The accompanying notes are an integral part of these financial statements. TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS December 31, 1996 Company Match ---------------------------- API AERIAL Common Common Stock Stock Total ----------- ------------ --------------- Investment Income: Net appreciation (depreciation) in fair value of investments $ (19,890) $ 0 $ 183,285 Interest 115 0 83,801 Dividends 0 0 925,316 ---------- ----------- ---------------- $ (19,775) $ 0 $ 1,192,402 Less investment expenses 0 0 (16,228) ---------- ----------- ---------------- $ (19,775) $ 0 $ 1,176,174 ---------- ----------- ---------------- Contributions Employer $ 120,821 $ 65,005 $ 1,507,632 Participants 0 0 7,569,359 Participant fund transfers 0 0 1,004,286 Forfeitures (176) 0 (2,025) Transfers between investments 0 0 0 ---------- ----------- --------------- $ 120,645 $ 65,005 $ 10,079,252 ---------- ----------- --------------- Total additions $ 100,870 $ 65,005 $ 11,255,426 ---------- ----------- --------------- Benefits paid $ 12,824 $ 0 $ 2,747,661 ---------- ----------- --------------- Net increase (decrease) $ 88,046 $ 65,005 $ 8,507,765 Net assets available for benefits Beginning of year $ 58,593 $ 0 $ 27,739,428 ---------- ----------- --------------- End of year $ 146,639 $ 65,005 $ 36,247,193 ========== =========== =============== The accompanying notes are an integral part of these financial statements. TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS Year Ended December 31, 1995 Participant Directed -------------------------------------------------- Lasalle ANB Income Vanguard S&P Fidelity Plus GNMA 500 Index Growth ---------- ----------- ----------- ------------ Investment Income: Net appreciation (depreciation) in fair value of investments $ 0 $ 59,552 $ 751,760 $ 848,887 Interest 3,697 1,712 4,000 6,883 Dividends 174,779 54,291 67,782 239,565 ---------- ----------- ----------- ------------ $ 178,476 $ 115,555 $ 823,542 $ 1,095,335 Less investment expenses (10,168) (30) (7,741) (125) ---------- ----------- ----------- ----------- $ 168,308 $ 115,525 $ 815,801 $ 1,095,210 ---------- ----------- ----------- ----------- Contributions Employer $ 0 $ 0 $ 0 $ 0 Participants 631,461 293,933 672,786 1,173,313 Participant fund transfers 170,820 51,062 62,365 82,422 Forfeitures 0 0 0 0 Transfers between investments 343,532 52,615 (185,470) 244,413 --------- ----------- ----------- ------------ $1,145,813 $ 397,610 $ 549,681 $ 1,500,148 ---------- ----------- ----------- ------------ Total additions $1,314,121 $ 513,135 $ 1,365,482 $ 2,595,358 ---------- ----------- ----------- ------------ Benefits paid $ 104,840 $ 57,067 $ 193,081 $ 342,626 ---------- ----------- ----------- ------------ Net increase (decrease) $1,209,281 $ 456,068 $ 1,172,401 $ 2,252,732 Net assets available for benefits Beginning of year $2,255,404 $ 573,967 $ 2,090,172 $ 2,329,167 ---------- ----------- ----------- ------------ End of year $3,464,685 $ 1,030,035 $ 3,262,573 $ 4,581,899 ========== =========== =========== ============ The accompanying notes are an integral part of these financial statements. TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS Year Ended December 31, 1995 Participant Directed ------------------------------------------------- TDS USCC API Warburg Common Common Common International Stock Stock Stock ----------- ----------- ----------- ------------ Investment Income: Net appreciation (depreciation) in fair value of investments $ 36,329 $(1,200,597) $ 105,171 $ (32,207) Interest 990 10,090 6,147 328 Dividends 15,654 74,339 0 0 ---------- ----------- ----------- ----------- $ 52,973 $(1,116,168) $ 111,318 $ (31,879) Less investment expenses (11) (185) (112) (4) ---------- ----------- ----------- ----------- $ 52,962 $(1,116,353) $ 111,206 $ (31,883) ---------- ----------- ----------- ----------- Contributions Employer $ 0 $ 0 $ 0 $ 0 Participants 185,603 1,575,143 1,005,924 59,980 Participant fund transfers 11,913 61,041 66,417 10,250 Forfeitures 0 0 0 0 Transfers between investments 313,077 (617,082) (407,668) 173,251 ---------- ----------- ----------- ----------- $ 510,593 $ 1,019,102 $ 664,673 $ 243,481 ---------- ----------- ----------- ----------- Total additions $ 563,555 $ (97,251) $ 775,879 $ 211,598 ---------- ----------- ----------- ----------- Benefits paid $ 45,870 $ 627,611 $ 453,645 $ 16,484 ---------- ----------- ----------- ----------- Net increase (decrease) $ 517,685 $ (724,862) $ 322,234 $ 195,114 Net assets available for benefits Beginning of year $ 0 $ 8,734,711 $ 3,557,106 $ 0 ---------- ----------- ----------- ----------- End of year $ 517,685 $ 8,009,849 $ 3,879,340 $ 195,114 ========== =========== =========== =========== The accompanying notes are an integral part of these financial statements. TELEPHONE AND DATA SYSTEMS, INC TAX-DEFERRED SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS Year Ended December 31, 1995 Company Match -------------------------------------- TDS USCC API Common Common Common Loans Stock Stock Stock ---------- ---------- ----------- ---------- Investment Income: Net appreciation (depreciation) in fair value of investments $ 0 $ (189,643) $ 19,527 $ 0 Interest 38,343 61 23 0 Dividends 0 12,284 0 0 ---------- ---------- ----------- ----------- $ 38,343 $ (177,298) $ 19,550 $ 0 Less investment expenses 0 0 0 0 ---------- ---------- ----------- ----------- $ 38,343 $ (177,298) $ 19,550 $ 0 ---------- ---------- ----------- ----------- Contributions Employer $ 0 $ 498,451 $ 191,724 $ 58,593 Participants 0 0 0 0 Participant fund transfers 0 0 0 0 Forfeitures 0 (69) (233) 0 Transfers between investments 83,332 0 0 0 ---------- ----------- ----------- ----------- $ 83,332 $ 498,382 $ 191,491 $ 58,593 ---------- ----------- ----------- ----------- Total additions $ 121,675 $ 321,084 $ 211,041 $ 58,593 ---------- ----------- ----------- ----------- Benefits paid $ 30,526 $ 84,583 $ 31,154 $ 0 ---------- ----------- ----------- ----------- Net increase (decrease) $ 91,149 $ 236,501 $ 179,887 $ 58,593 Net assets available for benefits Beginning of year $ 470,141 $ 1,505,085 $ 256,891 $ 0 ---------- ----------- ----------- ----------- End of year $ 561,290 $ 1,741,586 $ 436,778 $ 58,593 ========== =========== =========== =========== The accompanying notes are an integral part of these financial statements. TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS Year Ended December 31, 1995 Total ------------ Investment Income: Net appreciation (depreciation) in fair value of investments $ 398,779 Interest 72,274 Dividends 638,694 ------------ $ 1,109,747 Less investment expenses (18,376) ------------ $ 1,091,371 ------------ Contributions Employer $ 748,768 Participants 5,598,143 Participant fund transfers 516,290 Forfeitures (302) Transfers between investments 0 ------------ $ 6,862,899 ------------ Total additions $ 7,954,270 ------------ Benefits paid $ 1,987,487 ------------ Net increase (decrease) $ 5,966,783 Net assets available for benefits Beginning of year $21,772,644 ------------ End of year $27,739,427 ============ The accompanying notes are an integral part of these financial statements. TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS Year Ended December 31, 1994 Participant Directed ----------------------------------------------- Lasalle ANB Income Vanguard S&P Fidelity Plus GNMA 500 Index Growth ---------- ----------- ---------- ------------ Investment Income: Net appreciation (depreciation) in fair value of investments $ 0 $ (38,783)$ (23,721) $ (57,288) Interest 1,664 813 2,287 3,300 Dividends 114,858 32,812 55,449 37,262 ---------- ----------- ---------- ------------ $ 116,522 $ (5,158)$ 34,015 $ (16,726) Less investment expenses (7,158) (21) (6,071) (131) ---------- ----------- --------- ----------- $ 109,364 $ (5,179)$ 27,944 $ (16,857) ---------- ----------- ---------- ----------- Contributions Employer $ 0 $ 0 $ 0 $ 0 Participants 412,228 198,789 571,878 812,428 Participant fund transfers 12,613 5,319 20,029 44,098 Forfeitures 0 0 0 0 Transfers between investments (291,337) 393,569 (697,097) 1,559,492 ---------- ---------- ---------- ----------- $ 133,504 $ 597,677 $ (105,190) $ 2,416,018 ---------- ---------- ---------- ----------- Total additions $ 242,868 $ 592,498 $ (77,246) $ 2,399,161 ---------- ---------- ---------- ----------- Benefits paid $ 234,019 $ 18,531 $ 186,976 $ 69,994 ---------- ---------- ---------- ----------- Net increase (decrease) $ 8,849 $ 573,967 $ (264,222) $ 2,329,167 Net assets available for benefits Beginning of year $2,246,555 $ 0 $2,354,394 $ 0 ---------- ---------- ---------- ----------- End of year $2,255,404 $ 573,967 $2,090,172 $ 2,329,167 ========== ========== ========== =========== The accompanying notes are an integral part of these financial statements. TELEPHONE AND DATA SYSTEMS, INC TAX-DEFERRED SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS Year Ended December 31, 1994 Participant Directed ------------------------- TDS USCC Common Common Stock Stock Loans ---------- ----------- ------------ Investment Income: Net appreciation (depreciation) in fair value of investments $ (902,175) $ (70,785) $ 0 Interest 6,640 3,629 29,389 Dividends 63,404 0 0 ---------- ----------- ----------- $ (832,131) $ (67,156) $ 29,389 Less investment expenses (1,223) (274) 0 ---------- ----------- ----------- $ (833,354) $ (67,430) $ 29,389 ---------- ----------- ----------- Contributions Employer $ 0 $ 0 $ 0 Participants 1,636,203 884,949 0 Participant fund transfers 41,249 47,879 0 Forfeitures 0 0 0 Transfers between investments (772,973) (290,063) 98,409 ---------- ----------- ----------- $ 904,479 $ 642,765 $ 98,409 ---------- ----------- ----------- Total additions $ 71,125 $ 575,335 $ 127,798 ---------- ----------- ----------- Benefits paid $ 370,611 $ 163,751 $ 21,656 ---------- ----------- ----------- Net increase (decrease) $ (299,486) $ 411,584 $ 106,142 Net assets available for benefits Beginning of year $9,034,197 $ 3,145,522 $ 363,999 ---------- ----------- ----------- End of year $8,734,711 $ 3,557,106 $ 470,141 ========== =========== =========== The accompanying notes are an integral part of these financial statements. TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLANS STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS Year Ended December 31, 1994 Company Match --------------------------- TDS USCC Common Common Stock Stock Total ----------- ----------- ------------ Investment Income: Net appreciation (depreciation) in fair value of investments $ (134,388) $ (5,776) $(1,232,916) Interest 3 0 47,725 Dividends 7,792 0 311,577 ---------- ----------- ----------- $ (126,593) $ (5,776) $ (873,614) Less investment expenses 0 0 (14,878) ---------- ----------- ----------- $ (126,593) $ (5,776) $ (888,492) ---------- ----------- ----------- Contributions Employer $ 524,276 $ 136,382 $ 660,658 Participants 0 0 4,516,475 Participant fund transfers 0 0 171,187 Forfeitures (256) (967) (1,223) Transfers between investments 0 0 0 ---------- ----------- ------------ $ 524,020 $ 135,415 $ 5,347,097 ---------- ----------- ------------ Total additions $ 397,427 $ 129,639 $ 4,458,605 ---------- ----------- ------------ Benefits paid $ 52,458 $ 15,385 $ 1,133,381 ---------- ----------- ------------ Net increase (decrease) $ 344,969 $ 114,254 $ 3,325,224 Net assets available for benefits Beginning of year $1,160,116 $ 142,637 $18,447,420 ---------- ----------- ------------ End of year $1,505,085 $ 256,891 $21,772,644 ========== =========== ============ The accompanying notes are an integral part of these financial statements. Telephone and Data Systems, Inc. Tax-Deferred Savings Plan Notes to Financial Statements 1. PLAN DESCRIPTION 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 Plan agreement for a more complete description of the Plan's provisions. A. General: The Telephone and Data Systems, Inc. Tax-Deferred Savings Plan (the Plan), a contributory tax-exempt profit-sharing plan, qualifies under Section 401 and 501 of the Internal Revenue Code, and is subject to and files reports under the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). The Plan (together with Social Security, any other tax qualified retirement plan or plans maintained by the Company and personal savings) provides for the livelihood of the employees of Telephone and Data Systems, Inc. and its participating subsidiaries upon their retirement or other separation from service. The Plan is administered by four trustees appointed by TDS. The trustees are authorized to invest Plan assets as directed by the participants, except in the case of the company match which is invested in TDS Common Stock, USCC Common Stock, API Common Stock and Aerial Communications, Inc. Common Stock. Up to now, all administrative, recordkeeping, and auditing fees have been borne by TDS. B. Eligibility and Vesting: Prior to October 1, 1996, employees age 21 and older were generally eligible to participate after completing one year of service. Effective October 1, 1996, employees completing three months of service are eligible to participate. Participation is completely voluntary. An employee may become a participant in the Plan on the first of the month after meeting the eligibility requirements and upon completing the Deferral Election form. Employees' personal contributions and any investment earnings/losses on the personal contributions are always 100% vested. Employer matching contributions are subject to a three-year graded vesting schedule. Participants vest one-third in all employer matching contributions for each year of service they complete. A participant becomes 100% vested in employer contributions after three years of service, or upon retirement, death, or disability. C. Participant Accounts: Each participant's account is credited with the participant's contribution and allocation of (a) the employer's contribution and (b) Plan earnings. Allocations are based on account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant's account. Telephone and Data Systems, Inc. Tax-Deferred Savings Plan Page 2 D. Contributions: Participants may defer 1% to 15% (in whole increments) of their salary on a per pay period basis. The Plan provides for an annual employer matching contribution to each participant employed by the Company as of December 31. Employer matching contributions are credited to participant accounts as of December 31 of each year. Effective January 1, 1996, the employer matching contribution for each USCC, API and Aerial participant is $.33 1/3 per $1.00 for the first 6% of salary deferral contributions. Effective January 1, 1995, the employer matching contribution for each participant employed by Suttle Press is $.40 per $1.00 for the first 6% of salary deferral contributions. The employer matching contribution for all other participants is $.20 per $1.00 for the first 6% of salary deferral contributions. Effective July 1, 1992, employer contributions of United States Cellular Corporation are made in USCC Common Stock. Effective January 1, 1995, employer contributions of American Paging, Inc. are made in API Common Stock. Effective January 1, 1996 employer contributions of Aerial Communications, Inc. are made in Aerial Common Stock. All other employer contributions are made in TDS Common Stock. Employees may invest their personal contributions in one or more of the following funds: TDS Common Stock Fund, USCC Common Stock Fund, API Common Stock Fund (effective April 1, 1995), Aerial Common Stock Fund (effective April 1, 1996), Vanguard Index 500 Fund (replaced ANB S&P 500 Index Fund on April 1, 1996), LaSalle Income Plus Fund, Vanguard GNMA Fund (effective January 1, 1994), Fidelity Advisor Equity Growth Institutional Fund (effective January 1, 1994) or Warburg, Pincus International Equity Fund (effective April 1, 1995). Also, effective January 1, 1994, participants are able to invest contributions in the funds in increments of 5%. E. Investment Options The TDS Common Stock Fund is made up of TDS Common Shares. The USCC Common Stock Fund is made up of USCC Common Shares. The Aerial Common Stock Fund is made up of Aerial Common Shares. The API Common Stock Fund is made up of API Common Shares. The Vanguard Index 500 Fund is a pooled investment fund invested in the stocks in the S&P 500 with each stock owned and maintained at a portfolio weighting that is virtually identical to its weighting in the composite. The LaSalle Income Plus Fund is a pooled investment fund invested in short-term securities, consisting mainly of Guaranteed Investment Contracts. Telephone and Data Systems, Inc. Tax-Deferred Savings Plan Page 3 The Vanguard GNMA Fund invests its assets mainly in Government National Mortgage Association (GNMA) Certificates, which are mortgage-backed securities representing part ownership of a pool of mortgage loans. The Fidelity Advisor Equity Growth Institutional Fund has the objective of long-term capital appreciation. It invests primarily in common and preferred stocks and convertible securities of companies with above-average earnings or sales growth. The Warburg, Pincus International Equity Fund is a diversified mutual fund that invests primarily in the common stocks of companies that have their principal business activities and interests outside the United States. The fund's primary investment objective is long-term capital appreciation. F. Payment of Benefits: If a participant retires or terminates service for any reason, the Plan Administrator shall provide for the distribution of a participant's account balance in one lump sum or periodic payments. G. Plan Loans: The Plan loan provision allows employees with account balances to borrow from their account and repay their account with interest through payroll deductions. Loans may be taken for purposes of: buying, constructing, or rehabilitating a primary residence; non-reimbursable medical expenses; education expenses; or expenses arising out of other emergency financial needs. Employees may borrow the greater of (a) 100% of their salary reduction and rollover account balances up to $10,000 or (b) 50% of their salary reduction and rollover account balances limited to $50,000. The minimum loan amount is $1,000 or the entire salary reduction and rollover account balance, if less. The repayment period on the loan can range from one to five years. The rate of interest is a reasonable rate of interest set by the Trustees at the beginning of each calendar quarter. A reasonable rate of interest is a rate that provides the Plan with a return commensurate with the interest rates charged by persons engaged in the business of lending money for loans made in similar circumstances. H. Direction of Account Balances and Contributions to the Investment Funds: Effective January 1, 1994, participants have the opportunity to direct their existing salary reduction and rollover account balances to one set of funds, and future salary reduction contributions to a different set of investment funds. Telephone and Data Systems, Inc. Tax-Deferred Savings Plan Page 4 2. SUMMARY OF ACCOUNTING POLICIES A. Valuation of Investment Market value of investments was determined as of December 31, 1996 and December 31, 1995 as follows: at the latest price from the funds themselves for the Vanguard Index 500 fund, ANB S&P 500 Index Fund, the LaSalle Income Plus Fund, the Vanguard GNMA Fund, the Fidelity Advisor Equity Growth Institutional Fund and the Warburg, Pincus International Equity Fund. TDS Common Stock, USCC Common Stock, API Common Stock and Aerial Common Stock are valued at the latest bid price from published sources. Plan loans are valued at cost, which approximates fair value. B. Payment of Benefits Benefits are recorded when paid. Telephone and Data Systems, Inc. Tax-Deferred Savings Plan Page 5 3. FAIR VALUE OF INVESTMENTS December 31, 1996 December 31, 1995 --------------------- --------------------- Number of Fair Number of Fair Shares Value Shares Value ----------- ---------- --------- ---------- Investments at Fair Value as Determined by Quoted Market Price Money Market Accounts 1,321,020 $ 1,321,020 275,864 $ 275,867 ------------ ------------- Common Stocks Telephone and Data Systems, Inc. 207,387 $ 7,517,779* 232,188 $ 9,171,427* United States Cellular Corp. 126,416 3,523,846* 121,643 4,105,451* American Paging, Inc. 39,857 186,830 31,453 200,513 Aerial Communications, Inc. 23,460 190,613 0 0 ----------- ------------- $11,419,068 $ 13,477,391 ----------- ------------- Mutual Funds American National Bank S&P 500 Index 0 $ 0 16,450 $ 3,223,356* LaSalle Income Plus Fund 3,908,265 3,908,265* 3,381,293 3,381,293* Vanguard GNMA Fund 147,776 1,510,276* 97,656 1,018,550 Fidelity Advisor Fund 201,893 8,582,462* 119,357 4,523,625* Warburg, Pincus Int'l Fund 78,605 1,638,134* 27,043 531,120 Vanguard Index 500 Fund 81,720 5,651,725* 0 0 ----------- ------------- $21,290,862 $ 12,677,944 ----------- ------------- Investments at Cost Which Approximate Fair Value Plan Loans - $ 707,944 - $ 561,290 ----------- ------------ Total Investments at Fair Value $34,738,894 $ 26,992,492 =========== ============ * Investments that represent five percent or more of the Plan's net assets. Telephone and Data Systems, Inc. Tax-Deferred Savings Plan Page 6 The Plan's investments (including investments sold and held during the year) appreciated in value by $183,285 during the year ended December 31, 1996, appreciated in value by $398,779 during the year ended December 31, 1995 and depreciated in value by $1,232,916 during the year ended December 31, 1994 as follows: Net Change in Fair Value ---------------------------------------------- Year Ended Year Ended Year Ended 12/31/96 12/31/95 12/31/94 =========== =========== ============ Investments at Fair Value as Determined by Quoted Market Price Common Stocks $(1,354,831) $(1,297,749) $ (1,113,124) Mutual Funds 1,538,116 1,696,528 (119,792) Net Change in Fair Value $183,285 $ 398,779 $ (1,232,916) 4. PLAN TERMINATION Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of plan termination, participants will become 100 percent vested. 5. PRIOR YEAR INFORMATION Certain amounts in the 1995 financial statements have been reclassified to conform to the 1996 presentation. 6. INCOME TAX STATUS The Internal Revenue Service has determined and informed the Company by letter dated October 13, 1994 that the Plan and related trust are designed in accordance with applicable sections of the Internal Revenue Code (IRC). The Plan has been amended since receiving the determination letter. However, the Plan administrator and the Plan's tax counsel believe the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC. Independent Auditor's Report On The Supplementary Information To the Trustees of: TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN Chicago, Illinois Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of Assets Held for Investment Purposes and Reportable Transactions are presented for the purpose of additional analysis and are not a required part of the basic financial statements, but are supplementary 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 schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements, and in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. McGladrey & Pullen, LLP Madison, Wisconsin March 28, 1997 TELEPHONE AND DATA SYSTEMS, INC. TAX DEFERRED SAVINGS PLAN Year Ended December 31, 1996 Schedule of Reportable Transactions Total Total Description Number of Amount of Number of of the Security Purchases Purchases Sales - ------------------------------ --------- ---------- ---------- LaSalle Trust Money Market 103 17,010,643 92 LaSalle Income Plus 22 772,932 2 Vanguard GNMA 22 526,677 2 ANB S&P 500 Index 3 268,694 1 Vanguard Index 500 13 5,043,443 0 Fidelity Advisor Equity Growth 15 3,311,435 0 Warburg International 13 1,070,209 0 TDS Common Stock Investment 7 903,255 9 USCC Common Stock Investment 8 559,126 8 API Common Stock Investment 7 79,559 5 Aerial Common Stock Investment 3 220,832 0 TDS Common Stock Match Investment 4 571,139 9 USCC Common Stock Match Investment 3 214,074 12 API Common Stock Match Investment 3 66,581 5 TELEPHONE AND DATA SYSTEMS, INC. TAX DEFERRED SAVINGS PLAN Year Ended December 31, 1996 Schedule of Reportable Transactions Gain Description Amount of Cost of (Loss) of the Security Sales Sales On Sales - ------------------------------ --------- ---------- ---------- LaSalle Trust Money Market 15,965,490 15,965,490 -- LaSalle Income Plus 245,961 245,961 -- Vanguard GNMA 15,451 15,689 (238) ANB S&P 500 Index 3,657,176 2,545,960 1,111,216 Vanguard Index 500 -- -- -- Fidelity Advisor Equity Growth -- -- -- Warburg International -- -- -- TDS Common Stock Investment 2,456,951 1,864,949 592,002 USCC Common Stock Investment 577,019 480,989 96,030 API Common Stock Investment 70,982 78,655 (7,673) Aerial Common Stock Investment -- -- -- TDS Common Stock Match Investment 148,670 130,839 17,831 USCC Common Stock Match Investment 50,403 51,688 (1,285) API Common Stock Match Investment 14,033 16,089 (2,056) TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN As Of December 31, 1996 Assets Held For Investment Purposes Shares Cost Current Value --------- ----------- ------------- Money Market Accounts 1,321,020 $ 1,321,020 $ 1,321,020 Common Stocks Telephone and Data Systems, Inc. Common Shares, $1 par value 207,387 7,010,161 7,517,779 United States Cellular Corporation Common Shares, $1 par value 126,416 3,585,309 3,523,846 American Paging, Inc. Common Shares, $1 par value 39,857 284,108 186,830 Aerial Communications, Inc. Common Shares, $1 par value 23,460 220,832 190,613 Mutual Funds LaSalle National Bank Income Plus Fund 3,908,265 3,908,265 3,908,265 Vanguard GNMA Fund 147,776 1,505,433 1,510,276 Vanguard Index 500 Fund 81,720 5,043,443 5,651,725 Fidelity Advisor Growth Fund 201,893 7,043,460 8,582,462 Warburg Pincus International Fund 78,605 1,565,001 1,638,134 Plan Loans 707,944 707,944 ------------ ----------- $ 32,194,976 $34,738,894 ============ =========== EX-1 2 AUDITOR CONSENT Exhibit 1 CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS We consent to our reports dated March 28, 1997, on the financial statements and supplemental schedules of the Telephone and Data Systems, Inc. Tax-Deferred Savings Plan appearing in its Annual Report on Form 11-K for the year ended December 31, 1996. McGladery & Pullen, LLP Madison, Wisconsin Date: June 25, 1997 -----END PRIVACY-ENHANCED MESSAGE-----