-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, dOULuFjrpOtuirQx5gKNLwqDObzQJgvMeWqWd90KDDaXAQBIN3oZ/b3vPAL4hWWb 9DibH+O0QVmhh5d3VDsS/w== 0000096966-94-000018.txt : 19940330 0000096966-94-000018.hdr.sgml : 19940330 ACCESSION NUMBER: 0000096966-94-000018 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19931231 FILED AS OF DATE: 19940329 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: TELEPHONE & DATA SYSTEMS INC CENTRAL INDEX KEY: 0000096966 STANDARD INDUSTRIAL CLASSIFICATION: 4813 IRS NUMBER: 362669023 STATE OF INCORPORATION: IA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 34 SEC FILE NUMBER: 001-08251 FILM NUMBER: 94518608 BUSINESS ADDRESS: STREET 1: 30 N LASALLE ST STE 4000 CITY: CHICAGO STATE: IL ZIP: 60602 BUSINESS PHONE: 3126301900 MAIL ADDRESS: STREET 1: 301 S. WESTFIELD RD STREET 2: PO BOX 5158 CITY: MADISON STATE: WI ZIP: 53705-0158 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 3 months ended December 31, 1993 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, Illinois 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, Illinois 60602 United States Cellular Corporation 8410 West Bryn Mawr Suite 700 Chicago, Illinois 60631 Required Information (a) Financial Statements 1. Audited Statements of Net Assets Available for Benefits as of December 31, 1993 and September 30, 1993. 2. Audited Statements of Changes in Net Assets Available for Benefits for the three months ended December 31, 1993 and for the years ended September 30, 1993 and September 30, 1992. 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: March 24, 1994 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, 1993 and September 30, 1993, and the related statements of changes in net assets available for benefits for the three month period ended December 31, 1993 and the years ended September 30, 1993 and September 30, 1992. 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, 1993 and September 30, 1993, and the changes in net assets available for benefits for the three month period ended December 31, 1993, and the years ended September 30, 1993 and September 30, 1992 in conformity with generally accepted accounting principles. McGladrey & Pullen Madison, Wisconsin February 4, 1994 TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS December 31, 1993
Participant Directed ------------------------------------------------ TDS USCC ANB Lasalle Common Common S & P Income Stock Stock 500 Index Plus Loans ----------- ----------- ----------- ----------- ----------- ASSETS Investments, at fair value: Common stock $ 8,888,981 $ 3,055,745 $ 0 $ 0 $ 0 Mutual funds 0 0 2,291,880 2,187,403 0 ----------- ----------- ----------- ----------- ----------- $ 8,888,981 $ 3,055,745 $ 2,291,880 $ 2,187,403 $ 0 ----------- ----------- ----------- ----------- ----------- Receivables: Plan loans $ 0 $ 0 $ 0 $ 0 $ 363,999 Employers' contributions 0 0 0 0 0 Participants'contributions 8,435 1,773 4,402 792 0 Accrued interest and dividends 445 171 170 10,622 0 Other receivables 55 8 28 0 0 ----------- ----------- ----------- ----------- ----------- $ 8,935 $ 1,952 $ 4,600 $ 11,414 $ 363,999 ----------- ----------- ----------- ----------- ----------- Cash $ 136,777 $ 87,832 $ 59,622 $ 47,738 $ 0 ----------- ----------- ----------- ----------- ----------- Total assets $ 9,034,693 $ 3,145,529 $ 2,356,102 $ 2,246,555 $ 363,999 ----------- ----------- ----------- ----------- ----------- LIABILITIES Accounts Payable $ 496 $ 7 $ 1,708 $ 0 $ 0 ----------- ----------- ----------- ----------- ----------- Total liabilities $ 496 $ 7 $ 1,708 $ 0 $ 0 ----------- ----------- ----------- ----------- ----------- NET ASSETS AVAILABLE FOR BENEFITS $ 9,034,197 $ 3,145,522 $ 2,354,394 $ 2,246,555 $ 363,999 =========== =========== =========== =========== =========== Company Match -------------------------------- TDS Common USCC Common Stock Stock Total --------------- --------------- --------------- ASSETS Investments, at fair value: Common stock $ 1,109,585 $ 113,155 $ 13,167,466 Mutual funds 0 0 4,479,283 --------------- --------------- --------------- $ 1,109,585 $ 113,155 $ 17,646,749 --------------- --------------- --------------- Receivables: Plan loans $ 0 $ 0 $ 363,999 Employers' contributions 51,242 30,198 81,440 Participants' contributions 0 0 15,402 Accrued interest and dividends 0 0 11,408 Other receivables 0 0 91 --------------- --------------- --------------- $ 51,242 $ 30,198 $ 472,340 --------------- --------------- --------------- Cash $ (711) $ (716) $ 330,542 --------------- --------------- --------------- Total assets $ 1,160,116 $ 142,637 $ 18,449,631 --------------- --------------- --------------- LIABILITIES Accounts payable $ 0 $ 0 $ 2,211 --------------- --------------- --------------- Total liabilities $ 0 $ 0 $ 2,211 -------------- -------------- --------------- NET ASSETS AVAILABLE FOR BENEFITS $ 1,160,116 $ 142,637 $ 18,447,420 =============== =============== =============== The accompanying notes are an integral part of these financial statements.
TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS September 30, 1993
Participant Directed ------------------------------------------------ TDS USCC ANB Lasalle Common Common S & P Income Stock Stock 500 Index Plus Loans ----------- ----------- ----------- ----------- ----------- ASSETS Investments, at fair value: Common stock $8,597,010 $2,706,948 $ 0 $ 0 $ 0 Mutual funds 0 0 2,137,121 2,119,405 0 ----------- ----------- ----------- ----------- ----------- $8,597,010 $2,706,948 $ 2,137,121 $2,119,405 $ 0 ----------- ----------- ----------- ----------- ----------- Receivables: Plan loans $ 0 $ 0 $ 0 $ 0 $ 359,341 Employers' contributions 0 0 0 0 0 Participants' contributions 356 64 160 96 0 Accrued interest and dividends 320 131 146 10,382 0 Other receivables 11,658 4,716 289 (15) 0 ----------- ----------- ----------- ----------- ----------- $ 12,334 $ 4,911 $ 595 $ 10,463 $ 359,341 ----------- ----------- ----------- ----------- ----------- Cash $ 162,888 $ 130,921 $ 72,027 $ 188,579 $ 0 ----------- ----------- ----------- ----------- ----------- Total assets $8,772,232 $2,842,780 $ 2,209,743 $2,318,447 $ 359,341 ----------- ----------- ----------- ----------- ----------- LIABILITIES Accounts Payable $ 3,038 $ 907 $ 1,967 $ 532 $ 0 ----------- ----------- ----------- ----------- ----------- Total liabilities $ 3,038 $ 907 $ 1,967 $ 532 $ 0 ----------- ----------- ----------- ----------- ----------- NET ASSETS AVAILABLE FOR BENEFITS $8,769,194 $2,841,873 $ 2,207,776 $2,317,915 $ 359,341 =========== =========== =========== =========== =========== Company Match -------------------------------- TDS Common USCC Common Stock Stock Total --------------- --------------- --------------- ASSETS Investments, at fair value: Common stock $ 980,807 $ 31,821 $ 12,316,586 Mutual funds 0 0 4,256,526 --------------- --------------- --------------- $ 980,807 $ 31,821 $ 16,573,112 --------------- --------------- --------------- Receivables: Plan loans $ 0 $ 0 $ 359,341 Employers' contributions 159,179 82,117 241,296 Participants' contributions 0 0 676 Accrued interest and dividends 0 0 10,979 Other receivables 0 0 16,648 --------------- --------------- --------------- $ 159,179 $ 82,117 $ 628,940 --------------- --------------- --------------- Cash $ 3,160 $ 877 $ 558,452 --------------- --------------- --------------- Total assets $ 1,143,146 $ 114,815 $ 17,760,504 --------------- --------------- --------------- LIABILITIES Accounts payable $ 0 $ 0 $ 6,444 --------------- --------------- --------------- Total liabilities $ 0 $ 0 $ 6,444 -------------- -------------- --------------- NET ASSETS AVAILABLE FOR BENEFITS $ 1,143,146 $ 114,815 $ 17,754,060 =============== =============== =============== The accompanying notes are an integral part of these financial statements.
TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS Three Months Ended December 31, 1993
Participant Directed ----------------------------------------------- TDS USCC ANB LaSalle Common Common S & P Income Stock Stock 500 Index Plus Loans ----------- ----------- ---------- ---------- --------- Investment Income: Net appreciation (depreciation) in fair value of investments $ (90,581) $ 39,077 $ 36,268 $ 0 $ 0 Interest 1,558 671 641 500 6,220 Dividends 14,495 0 14,592 30,622 0 Stock Rights 0 44,613 0 0 0 ----------- ----------- ---------- ---------- --------- $ (74,528) $ 84,361 $ 51,501 $ 31,122 $ 6,220 Less investment expenses (66) (27) (1,701) (1,947) 0 ----------- ----------- ---------- ---------- --------- $ (74,594) $ 84,334 $ 49,800 $ 29,175 $ 6,220 ----------- ----------- ---------- ---------- --------- Contributions: Employer $ 0 $ 0 $ 0 $ 0 $ 0 Participants 409,213 176,257 169,165 131,302 0 Participant fund transfers 15,653 1,475 32,738 7,919 0 Transfers between investments 79,283 90,969 (77,670) (100,473) 7,891 ----------- ----------- ---------- ---------- --------- $ 504,149 $ 268,701 $ 124,233 $ 38,748 $ 7,891 ----------- ----------- ---------- ---------- --------- Total additions $ 429,555 $ 353,035 $ 174,033 $ 67,923 $ 14,111 ----------- ----------- ---------- ---------- --------- Benefits paid $ 164,552 $ 49,386 $ 27,415 $ 139,283 $ 9,453 ----------- ----------- ---------- ---------- --------- Net increase (decrease) $ 265,003 $ 303,649 $ 146,618 $ (71,360) $ 4,658 Net assets available for benefits: Beginning of year 8,769,194 2,841,873 2,207,776 2,317,915 359,341 ----------- ----------- ---------- ---------- --------- End of year $9,034,197 $3,145,522 $2,354,394 $ 2,246,555 $ 363,999 =========== =========== =========== =========== ========= Company Match Company Match TDS Common USCC Common Stock Stock Total --------------- -------------- -------------- Investment Income: Net appreciation (depreciation) in fair value of investments $ (18,370) $ (826) $ (34,432) Interest 0 0 9,590 Dividends 1,810 0 61,519 Stock Rights 0 498 45,111 --------------- -------------- -------------- $ (16,560) $ (328) $ 81,788 Less investment expenses 0 0 (3,741) --------------- -------------- -------------- $ (16,560) $ (328) $ 78,047 --------------- -------------- -------------- Contributions: Employer $ 51,242 $ 29,997 $ 81,239 Participants 0 0 885,937 Participant fund transfers 0 0 57,785 Transfers between investments 0 0 0 --------------- -------------- -------------- $ 51,242 $ 29,997 $ 1,024,961 --------------- -------------- -------------- Total additions $ 34,682 $ 29,669 $ 1,103,008 --------------- -------------- -------------- Benefits paid $ 17,712 $ 1,847 $ 409,648 --------------- -------------- -------------- Net increase (decrease) $ 16,970 $ 27,822 $ 693,360 Net assets available for benefits: Beginning of year 1,143,146 114,815 17,754,060 --------------- -------------- -------------- End of year $ 1,160,116 $ 142,637 $ 18,447,420 =============== ============== ============== The accompanying notes are an integral part of these financial statements.
TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS Year Ended September 30, 1993
Participant Directed ----------------------------------------------- TDS USCC ANB LaSalle Common Common S & P Income Stock Stock 500 Index Plus Loans ----------- ----------- ---------- ---------- --------- Investment Income: Net appreciation in fair value of investments $2,820,977 $1,139,380 $ 150,646 $ 0 $ 0 Interest 3,489 1,311 1,432 1,312 22,282 Dividends 51,638 0 49,113 120,252 0 ----------- ----------- ---------- ---------- --------- $2,876,104 $1,140,691 $ 201,191 $ 121,564 $ 22,282 Less investment expenses (276) (109) (5,879) (7,173) 0 ----------- ----------- ---------- ---------- --------- $2,875,828 $1,140,582 $ 195,312 $ 114,391 $ 22,282 ----------- ----------- ---------- ---------- --------- Contributions: Employer $ 264 $ 0 $ 0 $ 0 $ 0 Participants 1,340,749 519,159 568,896 522,925 0 Participant fund transfers 26,656 101,142 43,683 17,016 0 Transfers between investments (291,667) (70,493) 148,430 122,644 92,641 ----------- ----------- ---------- ---------- --------- $1,076,002 $ 549,808 $ 761,009 $ 662,585 $ 92,641 ----------- ----------- ---------- ---------- --------- Total additions $3,951,830 $1,690,390 $ 956,321 $ 776,976 $ 114,923 ----------- ----------- ---------- ---------- --------- Benefits paid $ 268,069 $ 61,380 $ 89,679 $ 105,387 $ 5,244 ----------- ----------- ---------- ---------- --------- Net increase $3,683,761 $1,629,010 $ 866,642 $ 671,589 $ 109,679 Net assets available for benefits: Beginning of year 5,085,433 1,212,863 1,341,134 1,646,326 249,662 ----------- ----------- ---------- ---------- --------- End of year $8,769,194 $2,841,873 $2,207,776 $ 2,317,915 $ 359,341 =========== =========== =========== =========== ========= Company Match ------------------------------- TDS Common USCC Common Stock Stock Total --------------- -------------- -------------- Investment Income: Net appreciation in fair value of investments $ 335,565 $ 15,474 $ 4,462,042 Interest 9 0 29,835 Dividends 6,317 0 227,320 --------------- -------------- -------------- $ 341,891 $ 15,474 $ 4,719,197 Less investment expenses 0 0 (13,437) --------------- -------------- -------------- $ 341,891 $ 15,474 $ 4,705,760 --------------- -------------- -------------- Contributions: Employer $ 159,065 $ 82,106 $ 241,435 Participants 0 0 2,951,729 Participant fund transfers 0 0 188,497 Transfers between investments (1,555) 0 0 --------------- -------------- -------------- $ 157,510 $ 82,106 $ 3,381,661 --------------- -------------- -------------- Total additions $ 499,401 $ 97,580 $ 8,087,421 --------------- -------------- -------------- Benefits paid $ 28,018 $ 2,278 $ 560,055 --------------- -------------- -------------- Net increase $ 471,383 $ 95,302 $ 7,527,366 Net assets available for benefits: Beginning of year 671,763 19,513 10,226,694 --------------- -------------- -------------- End of year $ 1,143,146 $ 114,815 $ 17,754,060 =============== ============== ============== The accompanying notes are an integral part of these financial statements.
TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS Year Ended September 30, 1992
Participant Directed -------------------------------------------------------------- Lincoln TDS National USCC ANB Common Life Common S & P LaSalle Stock Company Stock 500 Index Income Plus ----------- ----------- ---------- ---------- --------- Investment Income: Net appreciation (depreciation) in fair value of investments $ 185,755 $ 0 $ (83,787) $ 75,340 $ 0 Interest 3,965 248 1,308 1,159 1,522 Dividends 41,171 0 0 34,208 103,960 ----------- ----------- ---------- ---------- ----------- $ 230,891 $ 248 $ (82,479) $ 110,707 $ 105,482 Less investment expenses (305) 0 (98) (4,484) (5,367) ----------- ----------- ---------- ---------- ----------- $ 230,586 $ 248 $ (82,577) $ 106,223 $ 100,115 ----------- ----------- ---------- ---------- ----------- Contributions: Employer $ 0 $ 0 $ 0 $ 0 $ 0 Participants 1,048,632 0 355,418 313,535 406,801 Participant fund transfers 42,406 0 12,071 40,829 165,522 Transfers between investments 118,711 (9,696) 19,571 112 (229,836) ----------- ----------- ---------- ---------- ----------- $1,209,749 $ (9,696) $ 387,060 $ 354,476 $ 342,487 Total additions ----------- ----------- ---------- ---------- ----------- (deductions) $1,440,335 $ (9,448) $ 304,483 $ 460,699 $ 442,602 ----------- ----------- ---------- ---------- ----------- Benefits paid $ 201,009 $ 0 $ 58,058 $ 42,095 $ 108,930 ----------- ----------- ---------- ---------- ----------- Net increase (decrease) $1,239,326 $ (9,448) $ 246,425 $ 418,604 $ 333,672 Net assets available for benefits: Beginning of year 3,846,107 9,448 966,438 922,530 1,312,654 ----------- ----------- ---------- ---------- ----------- End of year $5,085,433 $ 0 $1,212,863 $ 1,341,134 $ 1,646,326 =========== =========== =========== =========== =========== Company Match ------------------------- TDS Common USCC Common Loans Stock Stock Total ------------ ------------ ----------- ----------- Investment Income: Net appreciation in fair value of investments $ 0 $ 11,798 $ 0 $ 189,106 Interest 14,904 0 0 23,106 Dividends 0 4,938 0 184,277 ------------ ------------ ----------- ------------- $ 14,904 $ 16,736 $ 0 $ 396,489 Less investment expenses 0 0 0 (10,254) ------------ ------------ ----------- ------------- $ 14,904 $ 16,736 $ 0 $ 386,235 ------------ ------------ ----------- ------------- Contributions: Employer $ 0 $ 125,415 $ 19,513 $ 144,928 Participants 0 0 0 2,124,386 Participant fund transfers 0 65,813 0 326,641 Transfers between investments 101,138 0 0 0 ------------ ------------ ----------- ------------- $ 101,138 $ 191,228 $ 19,513 $ 2,595,955 ------------ ------------ ----------- ------------- Total additions (deductions) $ 116,042 $ 207,964 $ 19,513 $ 2,982,190 ------------ ------------ ----------- ------------- Benefits paid $ 3,010 $ 44,009 $ 0 $ 457,111 ------------ ------------ ----------- ------------- Net increase (decrease) $ 113,032 $ 163,955 $ 19,513 $ 2,525,079 Net assets available for benefits: Beginning of year 136,630 507,808 0 7,701,615 ------------ ------------ ----------- ------------- End of year $ 249,662 $ 671,763 $ 19,513 $ 10,226,694 ============ ============ =========== ============= 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 and USCC Common Stock. Up to now, all administrative, recordkeeping, and auditing fees have been borne by TDS. B. Eligibility and Vesting: Employees age 21 and older are generally eligible to participate after completing one year of service. Participation is completely voluntary. An employee may become a participant in the Plan on the first calendar quarter after meeting the eligibility requirements upon signing the Election to Participate 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 company 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 Company's contribution and (b) Plan earnings. Allocations are based on participant earnings or account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant's account. 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 still employed on December 31 for contributions made during that year. Effective July 1, 1992, employees of United States Cellular Corporation receive a matching contribution at a rate of $.20 on the $1.00 for the first 6% of salary contributions. All other salary contributions are matched at a rate of $.10 on the $1.00 for the first 4%. Effective April 1, 1993, employees of American Paging, Inc. receive a matching contribution at a rate of $.20 on the $1.00 for the first 6% of salary contributions. Employees may invest their personal contributions in a TDS Common Stock Fund, USCC Common Stock Fund, ANB S&P 500 Index Fund or the LaSalle Income Plus Fund in 25% increments. Effective July 1, 1992, employer contributions of United States Cellular Corporation are made in USCC Common Stock. All other employer contributions are made in TDS Common Stock. E. 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. F. 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 100% of their salary reduction or rollover account balances up to $10,000 or 50% with a limit of $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. G. Change in Plan Year End: Effective 10/1/93, the Plan's Fiscal year was changed from 10/1 - 9/30 to 1/1 - 12/31. The period 10/1/93 - 12/31/93 constituted a Plan year for purposes of vesting and contribution. 2. VALUATION OF INVESTMENTS Market value of investments was determined as of December 31, 1993 and September 30, 1993 as follows: at the latest price from the funds themselves for the ANB S&P 500 Index Fund and the LaSalle Income Plus Fund. TDS Common Stock and USCC Common Stock are valued at the latest bid price from published sources. 3. 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. 4. INVESTMENTS A. The Plan's investments are held by bank-administered trust funds and in Telephone and Data Systems, Inc. and United States Cellular Corporation common stock. B. Description of Elective Investments: The TDS Common Stock Fund is made up of TDS Common Shares. There were approximately 1,370 participants in this fund. The USCC Common Stock Fund is made up of USCC Common Shares. There were approximately 826 participants in this fund. The ANB S & P 500 Index Fund is a pooled investment fund invested in 499 of 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. There were approximately 669 participants in this fund. The LaSalle Income Plus Fund is a pooled investment fund invested in short-term securities, consisting mainly of Guaranteed Investment Contracts. There were approximately 573 participants in this fund. C. On October 26, 1993, the Trustees exercised their right to sell USCC stock rights offered to the Trust. The sale generated income of $45,110.49, which was allocated to USCC Common Stock Fund and USCC Common Stock Match Fund participants. D. Effective January 1, 1994, the Plan offers two additional investment options. The new funds are the Fidelity Equity Growth Fund and the Vanguard GNMA Fund. 5. INCOME TAX STATUS The Plan and Trust was, and is, intended to continuously qualify under Section 401 and 501 of the Code, respectively, and that contributions to the Trust be deductible under Section 404 of the Code. The Internal Revenue Service has most recently issued a favorable determination letter on June 2, 1987 which exempts the Plan from Federal income taxes. Fair Value of Investments
December 31, 1993 September 30, 1993 --------------------- ---------------------- Number of Fair Number of Fair Shares Value Shares Value ----------- ---------- ---------- ---------- Investments at Fair Value as Determined by Quoted Market Price Common Stocks Telephone and Data Systems, Inc Investment 170,532 $ 8,888,981 162,977 $ 8,597,010 Match 21,287 1,109,585 18,593 980,807 United States Cellular Corp. Investment 87,307 3,055,745 78,179 2,706,948 Match 3,233 113,155 919 31,821 ----------- ------------ $13,167,466 $ 12,316,586 ----------- ------------ Investments at Fund Quoted Value Mutual Funds American National Bank S&P 500 Index 16,294 $ 2,291,880 15,553 $ 2,137,121 LaSalle Income Plus Fund 2,187,403 2,187,403 2,119,405 2,119,405 ----------- ------------ $ 4,479,283 $ 4,256,526 ----------- ------------ Total investments at fair value $17,646,749 $ 16,573,112 =========== ============
The Plan's investments (including investments sold and held during the year) depreciated in value by $34,432 during the 3 months ended December 31, 1993, appreciated in value by $4,462,042 during the year ended September 30, 1993, and appreciated in value by $189,106 during the year ended September 30, 1992 as follows: Net Change in Fair Value
3 Months Ended Year Ended Year Ended 12/31/93 09/30/93 09/30/92 -------------- -------------- --------------- Investments at Fair Value as Determined by Quoted Market Price Common Stocks (70,700) 4,311,396 113,766 Investments at Fund Quoted Value Mutual Funds 36,268 150,646 75,340 Net change in fair value (34,432) 4,462,042 189,106
Independent Auditor's Report 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 Reportable Transactions and Assets Held for Investment Purposes 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 Madison, Wisconsin February 4, 1994 Telephone and Data Systems, Inc. Tax-Deferred Savings Plan Schedule I Three Months Ended December 31, 1993 Schedule of Reportable Transactions
Total Total Gain Description of Number of Amount of Number Amount of Cost of (Loss) the Security Purchases Purchases of Sales Sales Sales On Sales -------------- --------- --------- ---------- ---------- ------- -------- LaSalle Income Plus 4 76,681 2 8,682 8,682 - TDS Common Stock - Investment 3 409,717 1 27,166 14,382 12,784 TDS Common Stock - Match 2 156,485 2 9,337 5,007 4,330 USCC Common Stock 3 320,316 1 10,595 7,825 2,770 USCC Common Stock-Match 2 82,347 1 187 185 2 ANB S&P 500 Index 4 144,052 2 25,560 21,950 3,610
Telephone and Data Systems, Inc. Tax-Deferred Savings Plan Schedule II Assets Held for Investment Purposes
December 31, 1993 September 30, 1993 ----------------- ------------------ Number Value Number Value Common Stocks of Per of Per ------------- Units Unit Units Unit ------- ------ ------- ------- Telephone and Data Systems, Inc. Common Shares, $1 par value - Investment 170,532 $ 52.125 162,977 $52.75 - Match 21,287 52.125 18,593 52.75 United States Cellular Corporation Common Shares, $1 par value - Investment 87,307 35.00 78,179 34.625 - Match 3,233 35.00 919 34.625 Mutual Funds ------------ ANB S&P 500 Index Fund 16,294 140.66 15,553 137.40 LaSalle National Bank Income Plus Fund 2,187,403 1.00 2,119,405 1.00
EX-1 2 CONSENTS Exhibit 1 CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS ----------------------------------------- As independent public accountants, we hereby consent to the use of our report dated February 4, 1994, in the Telephone and Data Systems, Inc. Tax-Deferred Savings Plan's filing of its Annual Report on Form 11-K for the 3 months ended December 31, 1993. McGladrey & Pullen Madison, Wisconsin Date: February 18, 1994 -----END PRIVACY-ENHANCED MESSAGE-----