-----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, Fqrbkdr4IiIj+ojVpqmzY+X+0SdFhnnwGN+kFPqX/Z8kwi0FB6r+ql7IBY7/WmD1 HxcCOXcXn6W1RgvhjUSFvw== 0000096966-95-000032.txt : 199506290000096966-95-000032.hdr.sgml : 19950629 ACCESSION NUMBER: 0000096966-95-000032 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19941231 FILED AS OF DATE: 19950628 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: TELEPHONE & DATA SYSTEMS INC CENTRAL INDEX KEY: 0000096966 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] 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: 95550033 BUSINESS ADDRESS: STREET 1: P O BOX 628010********** CITY: MIDDLETON STATE: WI ZIP: 53562-8010 BUSINESS PHONE: 6088288324 MAIL ADDRESS: STREET 1: P O BOX 628010***** CITY: MIDDLETON STATE: WI ZIP: 53562-8010 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 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, 1994 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, 1994 and December 31, 1993. 2. Audited Statements of Changes in Net Assets Available for Benefits for the year ended December 31, 1994, for the three months ended December 31, 1993 and for the year ended September 30, 1993. 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 28, 1995 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, 1994 and 1993, and the related statements of changes in net assets available for benefits for the year ended December 31, 1994, the three- month period ended December 31, 1993, and the year ended September 30, 1993. 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, 1994 and 1993, and the changes in net assets available for benefits for the year ended December 31, 1994, the three-month period ended December 31, 1993, and the year ended September 30, 1993 in conformity with generally accepted accounting principles. McGladrey & Pullen, LLP Madison, Wisconsin June 2, 1995 TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS December 31, 1994
Participant Directed ----------------------------------------------------- TDS USCC ANB Common Common Fidelity Vanguard S&P Stock Stock Growth GNMA 500 Index --------- --------- --------- --------- --------- ASSETS Investments, at fair value: Common stock $8,536,031 $3,462,886 $ 0 $ 0 $ 0 Mutual funds 0 0 2,255,815 543,235 2,065,455 --------- --------- --------- --------- --------- $8,536,031 $3,462,886 $2,255,815 $ 543,235 $2,065,455 --------- --------- --------- --------- --------- Receivables: Plan loans $ 0 $ 0 $ 0 $ 0 $ 0 Employer contributions 0 0 0 0 0 Participant contributions 3,306 1,924 1,885 455 1,228 Accrued interest and dividends 683 400 379 93 259 Other receivables 12,085 4,936 63,287 19,575 61,117 --------- --------- --------- --------- --------- $ 16,074 $ 7,260 $ 65,551 $ 20,123 $ 62,604 --------- --------- --------- --------- --------- Cash $ 185,139 $ 88,723 $ 8,377 $ 11,181 $ (36,329) --------- --------- --------- --------- --------- Total assets $8,737,244 $3,558,869 $2,329,743 $ 574,539 $2,091,730 --------- --------- --------- --------- --------- LIABILITIES Accounts Payable $ 2,533 $ 1,763 $ 576 $ 572 $ 1,558 --------- --------- --------- --------- --------- Total liabilities $ 2,533 $ 1,763 $ 576 $ 572 $ 1,558 --------- --------- --------- --------- --------- NET ASSETS AVAILABLE $8,734,711 $3,557,106 $2,329,167 $ 573,967 $2,090,172 FOR BENEFITS ========= ========= ========= ========= ========= Participant Directed Company Match ---------- ------------------ LaSalle TDS USCC Income Common Common Plus Loans Stock Stock Total ---------- --------- ---------- ------- ----------- ASSETS Investments, at fair value: Common stock $ 0 $ 0 $ 979,372 $120,717 $ 13,099,006 Mutual funds 2,238,363 0 0 0 7,102,868 ---------- --------- ---------- ------- ----------- $2,238,363 $ 0 $ 979,372 $120,717 $ 20,201,874 ---------- --------- ---------- ------- ----------- Receivables: Plan loans $ 0 $ 470,141 $ 0 $ 0 $ 470,141 Employer contributions 0 0 524,082 135,360 659,442 Participant contributions 986 0 0 0 9,784 Accrued interest and dividends 11,916 0 0 0 13,730 Other receivables 79,633 0 0 0 240,633 ---------- --------- ---------- ------- ----------- $ 92,535 $ 470,141 $ 524,082 $135,360 $ 1,393,730 ---------- --------- ---------- ------- ----------- Cash $ (74,813) $ 0 $ 1,631 $ 814 $ 184,723 ---------- --------- ---------- ------- ----------- Total assets $2,256,085 $ 470,141 $1,505,085 $256,891 $ 21,780,327 ---------- --------- ---------- ------- ----------- LIABILITIES Accounts Payable $ 681 $ 0 $ 0 $ 0 $ 7,683 ---------- --------- ---------- ------- ----------- Total liabilities $ 681 $ 0 $ 0 $ 0 $ 7,683 ---------- --------- ---------- ------- ----------- NET ASSETS AVAILABLE $2,255,404 $ 470,141 $1,505,085 $256,891 $ 21,772,644 FOR BENEFITS ========== ========= ========== ======= =========== 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 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 Employer contributions 0 0 0 0 0 Participant 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 $9,034,197 $3,145,522 $2,354,394 $2,246,555 $ 363,999 FOR BENEFITS ========= ========= ========= ========= ========= Company Match ----------------- TDS USCC Common 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 Employer contributions 51,242 30,198 81,440 Participant 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 $ 1,160,116 $ 142,637 $ 18,447,420 FOR BENEFITS ========== ========== ============= 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, 1994
Participant Directed ----------------------------------------------------- TDS USCC ANB Common Common Fidelity Vanguard S&P Stock Stock Growth GNMA 500 Index --------- --------- --------- -------- --------- Investment Income: Net appreciation (depreciation) in fair value of investments $ (902,175) $(70,785) $ (57,288) $(38,783) $ (23,721) Interest 6,640 3,629 3,300 813 2,287 Dividends 63,404 0 37,262 32,812 55,449 --------- --------- --------- --------- ---------- $ (832,131) $(67,156) $ (16,726) $ (5,158) $ 34,015 Less investment expenses (1,223) (274) (131) (21) (6,071) --------- --------- --------- --------- ---------- $ (833,354) $(67,430) $ (16,857) $ (5,179) $ 27,944 --------- --------- --------- --------- ---------- Contributions Employer $ 0 $ 0 $ 0 $ 0 $ 0 Participants 1,636,203 884,949 812,428 198,789 571,878 Participant fund transfers 41,249 47,879 44,098 5,319 20,029 Forfeitures 0 0 0 0 0 Transfers between investments (772,973) (290,063) 1,559,492 393,569 (697,097) ---------- --------- --------- --------- ---------- $ 904,479 $642,765 $2,416,018 $597,677 $(105,190) ---------- --------- ---------- --------- ---------- Total additions $ 71,125 $575,335 $2,399,161 $592,498 $ (77,246) ---------- --------- ---------- --------- ---------- Benefits paid $ 370,611 $163,751 $ 69,994 $ 18,531 $ 186,976 ---------- --------- ---------- --------- ---------- Net increase (decrease) $ (299,486) $411,584 $2,329,167 $573,967 $(264,222) Net assets available for benefits Beginning of year $ 9,034,197 $3,145,522 $ 0 $ 0 $2,354,394 ---------- --------- ---------- --------- ---------- End of year $ 8,734,711 $3,557,106 $2,329,167 $573,967 $2,090,172 ========== ========= ========== ========= ========== Participant Directed Company Match ---------- ------------------ LaSalle TDS USCC Income Common Common Plus Loans Stock Stock Total ---------- --------- ---------- ------- ---------- Investment Income: Net appreciation (depreciation) in fair value of investments $ 0 $ 0 $(134,388) $ (5,776)$(1,232,916) Interest 1,664 29,389 3 0 47,725 Dividends 114,858 0 7,792 0 311,577 ----------- --------- --------- -------- ----------- $ 116,522 29,389 $(126,593) $ (5,776)$ (873,614) Less investment expenses (7,158) 0 0 0 (14,878) ----------- --------- --------- -------- ----------- $ 109,364 $ 29,389 $(126,593) $ (5,776)$ (888,492) ----------- --------- --------- -------- ----------- Contributions Employer $ 0 $ 0 $ 524,276 $ 136,382 $ 660,658 Participants 412,228 0 0 0 4,516,475 Participant fund transfers 12,613 0 0 0 171,187 Forfeitures 0 0 (256) (967) (1,223) Transfers between investments (291,337) 98,409 0 0 0 ----------- --------- --------- -------- ----------- $ 133,504 $ 98,409 $ 524,020 $ 135,415 $ 5,347,097 ----------- --------- --------- -------- ----------- Total additions $ 242,868 $ 127,798 $ 397,427 $ 129,639 $ 4,458,605 ----------- --------- --------- -------- ----------- Benefits paid $ 234,019 $ 21,656 $ 52,458 $ 15,385 $ 1,133,381 ----------- --------- --------- -------- ----------- Net increase (decrease) $ 8,849 $ 106,142 $ 344,969 $ 114,254 $ 3,325,224 Net assets available for benefits Beginning of year 2,246,555 $ 363,999 $1,160,116 $ 142,637 $18,447,420 ----------- --------- --------- -------- ----------- End of year $ 2,255,404 $ 470,141 $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 STATEMENT OF CHANGES IN 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 --------- --------- --------- -------- --------- 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 Forfeitures 0 0 0 0 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 ----------------- TDS USCC Common 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 Forfeitures 0 0 0 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 STATEMENT 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 (depreciation) 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 Forfeitures 0 0 0 0 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 (decrease) $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 USCC Common Common Stock Stock Total ---------- ------- ----------- Investment Income: Net appreciation (depreciation) in fair value of investments $ 335,565 $ 15,474 $ 4,462,042 Interest 9 0 29,835 Dividend 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 Forfeitures 0 0 0 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 (decrease) $ 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 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 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. 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 provided the participant has completed at least 1,000 hours of service during the period from January 1 to December 31. Employer matching contributions are credited to participant accounts as of December 31 of each year. Effective January 1, 1994, the employer matching contribution for each participant 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. 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, ANB S&P 500 Index Fund, LaSalle Income Plus Fund, Vanguard GNMA Fund (effective January 1, 1994), or Fidelity Advisor Equity Growth Institutional Fund (effective January 1, 1994). Also, effective January 1, 1994, participants are able to invest contributions in the six funds in increments of 5%. 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 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. G. Change in Plan Year End: Effective October 1, 1993, the Plan's Fiscal year, October 1 to September 30, changed to a calendar year, January 1 to December 31. The period October 1, 1993 to December 31, 1993 constituted a plan year for purposes of vesting and contribution. Tax-Deferred Savings Plan Page 3 H. Direction of 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. 2. VALUATION OF INVESTMENTS Market value of investments was determined as of December 31, 1994 and December 31, 1993 as follows: at the latest price from the funds themselves for the ANB S&P 500 Index Fund, the LaSalle Income Plus Fund, the Vanguard GNMA Fund, and the Fidelity Advisor Equity Growth 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, registered investment companies, 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 1,662 participants in this fund. The USCC Common Stock Fund is made up of USCC Common Shares. There were approximately 1,185 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 875 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 697 participants in this fund. 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. There were approximately 425 participants in this fund. Tax-Deferred Savings Plan Page 4 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. There were approximately 841 participants in this fund. C. Effective April 1, 1995, the Plan offers two additional investment options. The new funds are the API Common Stock Fund and the Warburg, Pincus International Equity Fund. 5. 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. 6. FAIR VALUE OF INVESTMENTS See page 5. Tax-Deferred Savings Plan Page 5 Fair Value of Investments December 31, 1994 December 31, 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 185,063 $ 8,536,031 170,532 $ 8,888,981 Match 21,233 979,372 21,287 1,109,585 United States Cellular Corp. Investment 105,737 3,462,886 87,307 3,055,745 Match 3,686 120,717 3,233 113,155 ----------- ----------- $13,099,006 $13,167,466 ----------- ----------- Investments at Fund Quoted Value Mutual Funds American National Bank S&P 500 Index 14,486 $ 2,065,455 16,294 $ 2,291,880 LaSalle Income Plus Fund 2,238,363 2,238,363 2,187,403 2,187,403 Vanguard GNMA Fund 56,705 543,235 N/A N/A Fidelity Advisor Fund 78,957 2,255,815 N/A N/A ----------- ----------- $ 7,102,868 $ 4,479,283 ----------- ----------- Total Investments at Fair Value $20,201,874 $17,646,749 =========== =========== The Plan's investments (including investments sold and held during the year) depreciated in value by $1,232,916 during the year ended December 31, 1994, depreciated in value by $34,432 during the 3 months ended December 31, 1993 and appreciated in value by $4,462,042 during the year ended September 30, 1993 as follows: Net Change in Fair Value Year Ended 3 Months Year Ended Ended 12/31/94 12/31/93 09/30/93 ------------- ----------- ---------- Investments at Fair Value as Determined by Quoted Market Price Common Stocks $ (1,113,124) $ (70,700) $4,311,396 Investments at Fund Quoted Value Mutual Funds (119,792) 36,268 150,646 Net Change in Fair Value $ (1,232,916) $ (34,432) $4,462,042 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, LLP Madison, Wisconsin June 2, 1995 Telephone and Data Systems, Inc. Tax-Deferred Savings Plan Schedule I For Year Ended December 31, 1994 Schedule of Reportable Transactions Total Total Gain Description Number of Amount of Number Amount of Cost of (Loss) of the Security Purchases Purchases of Sales Sales Sales On Sales -------------- --------- --------- -------------------- ------- -------- LaSalle Income Plus 22 $500,399 8 $449,440 $449,440 $ 0 TDS Common Stock Investment 10 1,265,940 6 716,715 444,614 272,101 TDS Common Stock Match 3 56,511 11 52,336 38,565 13,771 USCC Common Stock Investment 12 713,731 2 54,889 180,739 (125,850) USCC Common Stock Match 5 32,230 7 18,892 20,052 (1,160) ANB S&P 500 Index 16 290,125 13 492,830 416,628 76,202 Fidelity 16 2,313,102 0 - - - Vanguard GNMA 25 653,790 2 71,771 75,115 (3,344) Telephone and Data Systems, Inc. Tax-Deferred Savings Plan Schedule II Assets Held for Investment Purposes December 31, 1994 December 31, 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 185,063 $46.125 170,532 $52.125 - Match 21,233 46.125 21,287 52.125 United States Cellular Corporation Common Shares, $1 par value - Investment 105,737 32.75 87,307 35.00 - Match 3,686 32.75 3,233 35.00 Mutual Funds ANB S&P 500 Index Fund 14,486 142.58 16,294 140.66 LaSalle National Bank Income Plus Fund 2,238,363 1.00 2,187,403 1.00 Vanguard GNMA Fund 56,705 9.58 N/A N/A Fidelity Advisor Fund 78,957 28.57 N/A N/A EX-1 2 Exhibit 1 CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS As independent public accountants, we hereby consent to the use of our report dated June 2, 1995, in the Telephone and Data Systems, Inc. Tax-Deferred Savings Plan's filing of its Annual Report on Form 11-K for the year ended December 31, 1994. McGladrey & Pullen, LLP Madison, Wisconsin Date: June 2, 1995 -----END PRIVACY-ENHANCED MESSAGE-----