-----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, CpZgb3tqpZRrXUUNlfkFiD1WpzxWKHUIm/+flyR8tOMeEdg1JJfmVfGX598QvpAU zoVcecOcx+h6SbNsC0dO/g== 0000096966-96-000025.txt : 19960629 0000096966-96-000025.hdr.sgml : 19960629 ACCESSION NUMBER: 0000096966-96-000025 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960627 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: 96587261 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, 1995 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 Required Information (a) Financial Statements 1. Audited Statements of Net Assets Available for Benefits as of December 31, 1995 and December 31, 1994. 2. Audited Statements of Changes in Net Assets Available for Benefits for the year ended December 31, 1995, for the year ended December 31, 1994 and for the three months ended December 31, 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 7, 1996 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, 1995 and 1994, and the related statements of changes in net assets available for benefits for the year ended December 31, 1995, for the year ended December 31, 1994 and for the three-month period ended December 31, 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, 1995 and 1994, and the changes in net assets available for benefits for the year ended December 31, 1995, for the year ended December 31, 1994 and for the three-month period ended December 31, 1993 in conformity with generally accepted accounting principles. McGladrey & Pullen LLP Madison, Wisconsin May 29, 1996 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 Plus GNMA 500 Index ------------ -------------- -------------- ASSETS Investments, at fair value Common stock $ 0 $ 0 $ 0 Mutual funds 3,381,293 1,018,550 3,223,356 Plan loans 0 0 0 ----------- ----------- ----------- $ 3,381,293 $ 1,018,550 $ 3,223,356 ----------- ----------- ----------- Receivables Employer contributions $ 0 $ 0 $ 0 Participant contributions 6,326 2,864 6,123 Accrued interest and dividends 17,720 132 283 Other receivables 3,046 10 1,289 ----------- ----------- ----------- $ 27,092 $ 3,006 $ 7,696 ----------- ----------- ----------- Cash $ 56,452 $ 8,718 $ 34,113 ----------- ----------- ----------- Total Assets $ 3,464,837 $ 1,030,274 $ 3,265,164 ----------- ----------- ----------- LIABILITIES Accounts payable $ 152 $ 239 $ 2,591 ----------- ----------- ----------- Total liabilities $ 152 $ 239 $ 2,591 ----------- ----------- ----------- NET ASSETS AVAILABLE FOR BENEFITS $ 3,464,685 $ 1,030,035 $ 3,262,573 =========== =========== =========== TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS December 31, 1995 Participant Directed --------------------------------------------- TDS Fidelity Warburg Common Growth International Stock ----------- ------------ ----------- ASSETS Investments, at fair value Common stock $ 0 $ 0 $ 7,918,605 Mutual funds 4,523,625 531,120 0 Plan loans 0 0 0 ----------- ------------ ----------- $ 4,523,625 $ 531,120 $ 7,918,605 ----------- ------------ ----------- Receivables Employer contributions $ 0 $ 0 $ 0 Participant contribution 11,080 2,704 12,416 Accrued interest and dividens 512 125 574 Other receivables 63 1,263 12,228 ----------- ------------ ----------- $ 11,655 $ 4,092 $ 25,218 ----------- ------------ ----------- Cash $ 47,219 $ (17,487) $ 107,297 ----------- ------------- ----------- Total Assets $ 4,582,499 $ 517,725 $ 8,051,120 ----------- ------------ ----------- LIABILITIES Accounts payable $ 600 $ 40 $ 41,271 ----------- ----------- ----------- Total liabilities $ 600 $ 40 $ 41,271 ----------- ----------- ----------- NET ASSETS AVAILABLE FOR BENEFITS $ 4,581,899 $ 517,685 $ 8,009,849 =========== =========== =========== TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS December 31, 1995 Participant Directed ------------------------- USCC API Common Common Stock Stock Loans ------------ ----------- ---------- ASSETS Investments, at fair value Common stock $ 3,861,236 $ 200,513 $ 0 Mutual funds 0 0 0 Plan loans 0 0 561,290 ----------- ----------- ---------- $ 3,861,236 $ 200,513 $ 561,290 ----------- ----------- ---------- Receivables Employer contributions $ 0 $ 0 $ 0 Participant contributions 8,744 882 0 Accured interest and dividens 404 41 0 Other receivables 3,494 12 0 ----------- ----------- ---------- $ 12,642 $ 935 $ 0 ----------- ----------- ---------- Cash $ 45,722 $ (6,296) $ 0 ----------- ------------ ---------- Total assets $ 3,919,600 $ 195,152 $ 561,290 ----------- ----------- ---------- LIABILITIES Accounts payable $ 40,260 $ 38 $ 0 ----------- ---------- ---------- Total liabilites $ 40,260 $ 38 $ 0 ----------- ---------- ---------- NET ASSETS AVAILABLE FOR BENEFITS $ 3,879,340 $ 195,114 $ 561,290 =========== ========== ========== TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS December 31, 1995 Company Match ----------------------------- TDS USCC Common Common Stock Stock ----------- ---------- ASSETS Investments, at fair value Common stock $ 1,252,822 $ 244,215 Mutual funds 0 0 Plan loans 0 0 ----------- ---------- $ 1,252,822 $ 244,215 ----------- ---------- Receivables Employer contributions $ 497,338 $ 191,498 Participant contributions 0 0 Accrued interest and dividens 0 0 Other receivables 0 0 ----------- ---------- $ 497,338 $ 191,498 ----------- ---------- Cash $ (3,464) $ 3,593 ----------- ---------- Total assets $ 1,746,696 $ 439,306 ----------- ---------- LIABILITIES Accounts payable $ 5,110 $ 2,527 ----------- ---------- Total liabilities $ 5,110 $ 2,527 ----------- ---------- NET ASSETS AVAILABLE FOR BENEFITS $ 1,741,586 $ 436,779 =========== ========== TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS December 31, 1995 Company Match ------------------------- API Common Stock Total ----------- ---------- ASSETS Investments, at fair value Common stock $ 0 $13,477,391 Mutual funds 0 12,677,944 Plan loans 0 561,290 ----------- ----------- $ 0 $26,716,625 ----------- ----------- Receivables Employer contributions $ 58,593 $ 747,429 Participant contributions 0 51,139 Accrued interest and dividends 0 19,792 Other receivables 0 21,405 ----------- ----------- $ 58,593 $ 839,766 ----------- ----------- Cash $ 0 $ 275,864 ----------- ----------- Total assets $ 58,593 $27,832,255 ----------- ----------- LIABILITIES Accounts payable $ 0 $ 92,828 ----------- ----------- Total liabilities $ 0 $ 92,828 ----------- ----------- NET ASSETS AVAILABLE FOR BENEFITS $ 58,593 $27,739,427 =========== =========== The accompanying notes are integral part of these finacial statements. TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS December 31, 1994 Participant Directed -------------------------------------------- Lasalle ANB Income Vanguard S&P Plus GNMA 500 Index ----------- ----------- ------------- ASSETS Investments, at fair value Common stock $ 0 $ 0 $ 0 Mutual funds 2,238,363 543,235 2,065,455 Plan loans 0 0 0 ----------- ----------- ------------- $ 2,238,363 $ 543,235 $ 2,065,455 ----------- ----------- ------------- Receivables Employer contributions 0 0 0 Participant contributions 986 455 1,228 Accrued interest and dividends 11,916 93 259 Other receivables 79,633 19,575 61,117 ----------- ----------- ------------- $ 92,535 $ 20,123 $ 62,604 ----------- ----------- ------------- Cash $ (74,813) $ 11,181 $ (36,329) ----------- ----------- ------------- Total assets $ 2,256,085 $ 574,539 $ 2,091,730 ----------- ----------- ------------- LIABILITIES Accounts payable $ 681 $ 572 $ 1,558 ----------- ----------- ------------- Total liabilities $ 681 $ 572 $ 1,558 ----------- ----------- ------------- NET ASSETS AVAILABLE FOR BENEFITS $ 2,255,404 $ 573,967 $ 2,090,172 =========== =========== ============= TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS December 31, 1994 Participant Directed -------------------------- TDS Fidelity Common Growth Stock ------------ ----------- ASSETS Investments, at fair value Common stock $ 0 $ 8,536,031 Mutual funds 2,255,815 0 Plan loans 0 0 ------------ ----------- $ 2,255,815 $ 8,536,031 ------------ ----------- Receivables Employer contributions 0 0 Participant contributions 1,885 3,306 Accrued interest and dividends 379 683 Other receivables 63,287 12,085 ------------ ----------- $ 65,551 $ 16,074 ------------ ----------- Cash $ 8,377 $ 185,139 ------------ ----------- Total assets $ 2,329,743 $ 8,737,244 ------------ ----------- LIABILITIES Accounts payable $ 576 $ 2,533 ------------ ----------- Total liabilities $ 576 $ 2,533 ------------ ----------- NET ASSETS AVAILABLE FOR BENEFITS $ 2,329,167 $ 8,734,711 ============ =========== TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS December 31, 1994 Participant Directed ------------- USCC Common Stock Loans ------------- ------------ ASSETS Investments, at fair value Common stock $ 3,462,886 $ 0 Mutual funds 0 0 Plan loans 0 470,141 ------------ ------------ $ 3,462,886 $ 470,141 ------------ ------------ Receivables Employer contributions 0 0 Participant contributions 1,924 0 Accrued interest and dividends 400 0 Other receivables 4,936 0 ------------ ------------ $ 7,260 $ 0 ------------ ------------ Cash $ 88,723 $ 0 ------------ ------------ Total assets $ 3,558,869 $ 470,141 ------------ ------------ LIABILITIES Accounts payable $ 1,763 $ 0 ------------ ------------ Total liabilities $ 1,763 $ 0 ------------ ------------ NET ASSETS AVAILABLE FOR BENEFITS $ 3,557,106 $ 470,141 ============ ============ TELEPHONE AND DATA SYSTEMS, INC. TAX-DEFERRED SAVINGS PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS December 31, 1994 Company Match --------------------------- TDS USCC Common Common Stock Stock Total ------------ ------------- ----------- ASSETS Investments, at fair value Common stock $ 979,372 $ 120,717 $13,099,006 Mutual funds 0 0 7,102,868 Plan loans 0 0 470,141 ------------ ------------ ----------- $ 979,372 $ 120,717 $20,672,015 ------------ ------------ ----------- Receivables Employer contributions 524,082 135,360 659,442 Participant contributions 0 0 9,784 Accrued interest and dividends 0 0 13,730 Other receivables 0 0 240,633 ------------ ------------ ----------- $ 524,082 $ 135,360 $ 923,589 ------------ ------------ ----------- Cash $ 1,631 $ 814 $ 184,723 ------------ ------------ ----------- Total assets $ 1,505,085 $ 256,891 $21,780,327 ------------ ------------ ----------- LIABILITIES Accounts payable $ 0 $ 0 $ 7,683 ------------ ------------ ----------- Total liabilities $ 0 $ 0 $ 7,683 ------------ ------------ ----------- NET ASSETS AVAILABLE FOR BENEFITS $ 1,505,085 $ 256,891 $21,772,644 ============ ============ =========== 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 Plus GNMA 500 Index ------------ ------------ ----------- Investment Income: Net appreciation (depreciation) in fair value of investments $ 0 $ 59,552 $ 751,760 Interest 3,697 1,712 4,000 Dividends 174,779 54,291 67,782 ------------ ------------ ----------- $ 178,476 $ 115,555 $ 823,542 Less investment expenses (10,168) (30) (7,741) ------------ ------------ ----------- $ 168,308 $ 115,525 $ 815,801 ------------ ------------ ----------- Contributions Employer $ 0 $ 0 $ 0 Participants 631,461 293,933 672,786 Participant fund transfers 170,820 51,062 62,365 Forfeitures 0 0 0 Transfers between investments 343,532 52,615 (185,470) ------------ ------------ ----------- $ 1,145,813 $ 397,610 $ 549,681 ------------ ------------ ----------- Total additions $ 1,314,121 $ 513,135 $ 1,365,482 ------------ ------------ ----------- Benefits paid $ 104,840 $ 57,067 $ 193,081 ------------ ------------ ----------- Net increase (decrease) $ 1,209,281 $ 456,068 $ 1,172,401 Net assets available for benefits Beginning of year 2,255,404 $ 573,967 $ 2,090,172 ------------ ------------ ----------- End of year $ 3,464,685 $ 1,030,035 $ 3,262,573 ============ ============ =========== 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 Fidelity Warburg Common Growth International Stock ------------ ------------ ----------- Investment Income: Net apprecations(depreciation) in fair value of investments $ 848,887 $ 36,329 $(1,200,597) Interest 6,883 990 10,090 Dividends 239,565 15,654 74,339 ------------ ------------ ----------- $ 1,095,335 $ 52,973 $(1,116,168) Less investment expenses (125) (11) (185) ------------ ------------ ----------- $ 1,095,210 $ 52,962 $(1,116,353) ------------ ------------ ----------- Contributions Employer $ 0 $ 0 $ 0 Participants 1,173,313 185,603 1,575,143 Participant fund transfers 82,422 11,913 61,041 Forfeitures 0 0 0 Transfers between investments 244,413 313,077 (617,082) ------------ ------------ ----------- $ 1,500,148 $ 510,593 $ 1,019,102 ------------ ------------ ----------- Total additions $ 2,595,358 $ 563,555 $ (97,251) ------------ ------------ ----------- Benefits paid $ 342,626 $ 45,870 $ 627,611 ------------ ------------ ----------- Net increase (decrease) $ 2,252,732 $ 517,685 $ (724,862) Net assets available for benefits Beginning of year $ 2,329,167 $ 0 $ 8,734,711 ------------ ------------ ----------- End of year $ 4,581,899 $ 517,685 $ 8,009,849 ============ ============ =========== 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 --------------------------------------------- USCC API Common Common Stock Stock Loans ------------ ------------- ----------- Investment Income: Net appreication (depreciation) in fair value of investments $ 105,171 $ (32,207) $ 0 Interest 6,147 328 38,343 Dividends 0 0 0 ------------ ------------- ----------- $ 111,318 $ (31,879) $ 38,343 Less investment expenses (112) (4) 0 ------------ ------------- ----------- $ 111,206 $ (31,883) $ 38,343 ------------ ------------- ----------- Contributions Employer $ 0 $ 0 $ 0 Participants 1,005,924 59,980 0 Participant fund transfers 66,417 10,250 0 Forfeitures 0 0 0 Transfers between investments (407,668) 173,251 83,332 ------------ ------------- ----------- $ 664,673 $ 243,481 $ 83,332 ------------ ------------- ----------- Total additions $ 775,879 $ 211,598 $ 121,675 ------------ ------------- ----------- Benefits paid $ 453,645 $ 16,484 $ 30,526 ------------ ------------- ----------- Net increase (decrease) $ 322,234 $ 195,114 $ 91,149 Net assets available for benefits Beginning of year $ 3,557,106 $ 0 $ 470,141 ------------ ------------- ----------- End of year $ 3,879,340 $ 195,114 $ 561,290 ============ ============= =========== 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 Common Common Stock Stock ------------ ------------- Investment Income: Net appreciation (depreciation) in fair value of investments $ (189,643) $ 19,527 Interest 61 23 Dividends 12,284 0 ------------ ------------- $ (177,298) $ 19,550 Less investment expenses 0 0 ------------ ------------- $ (177,298) $ 19,550 ------------ ------------- Contributions Employer $ 498,451 $ 191,724 Participants 0 0 Participant fund transfers 0 0 Forfeitures (69) (233) Transfers between investments 0 0 ------------ ------------- $ 498,382 $ 191,491 ------------ ------------- Total additions $ 321,084 $ 211,041 ------------ ------------- Benefits paid $ 84,583 $ 31,154 ------------ ------------- Net increase (decrease) $ 236,501 $ 179,887 Net assets available for benefits Beginning of year $ 1,505,085 $ 256,891 ------------ ------------- End of year $ 1,741,586 $ 436,778 ============ ============= 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 ------------- API Common Stock Total ------------ ------------- Investment Income: Net appreication (depreciation) in fair value of investments $ 0 $ 398,779 Interest 0 72,274 Dividends 0 638,694 ------------ ------------- $ 0 $ 1,109,747 Less investment expenses 0 (18,376) ------------ ------------- $ 0 $ 1,091,371 ------------ ------------- Contributions Employer $ 58,593 $ 748,768 Participants 0 5,598,143 Participant fund transfers 0 516,290 Forfeitures 0 (302) Transfers between investments 0 0 ------------ ------------- $ 58,593 $ 6,862,899 ------------ ------------- Total additions $ 58,593 $ 7,954,270 ------------ ------------- Benefits paid $ 0 $ 1,987,487 ------------ ------------- Net increase (decrease) $ 58,593 $ 5,966,783 Net assets available for benefits Beginning of year $ 0 $ 21,772,644 ------------ ------------- End of year $ 58,593 $ 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 Plus GNMA 500 Index ---------- ------------- ------------ Investment Income: Net appreciation (depreciation) in fair value of investments $ 0 $ (38,783) $ (23,721) Interest 1,664 813 2,287 Dividends 114,858 32,812 55,449 ----------- ------------- ------------ $ 116,522 $ (5,158) $ 34,015 Less investment expenses (7,158) (21) (6,071) ----------- ------------- ------------ $ 109,364 $ (5,179) $ 27,944 ----------- ------------- ------------ Contributions Employer $ 0 $ 0 $ 0 Participants 412,228 198,789 571,878 Participant fund transfers 12,613 5,319 20,029 Forfeitures 0 0 0 Transfers between investments (291,337) 393,569 (697,097) ----------- ------------- ------------ $ 133,504 $ 597,677 $ (105,190) ----------- ------------- ------------ Total additions $ 242,868 $ 592,498 $ (77,246) ----------- ------------- ------------ Benefits paid $ 234,019 $ 18,531 $ 186,976 ----------- ------------- ------------ Net increase (decrease) $ 8,849 $ 573,967 $ (264,222) Net assets available for benefits Beginning of year 2,246,555 0 2,354,394 ----------- ------------- ------------ End of year $ 2,255,404 $ 573,967 $ 2,090,172 =========== ============= ============ 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 Fidelity Common Growth Stock ----------- ------------- Investment Income: Net appreciation (depreciation) in fair value of investments $ (57,288) $ (902,175) Interest 3,300 6,640 Dividends 37,262 63,404 ----------- ------------- $ (16,726) $ (832,131) Less investment expenses (131) (1,223) ----------- ------------- $ (16,857) $ (833,354) ----------- ------------- Contributions Employer $ 0 $ 0 Participants 812,428 1,636,203 Participant fund transfers 44,098 41,249 Forfeitures 0 0 Transfers between investments 1,559,492 (772,973) ----------- ------------- $ 2,416,018 $ 904,479 ----------- ------------- Total additions $ 2,399,161 $ 71,125 ----------- ------------- Benefits paid $ 69,994 $ 370,611 ----------- ------------- Net increase (decrease) $ 2,329,167 $ (299,486) Net assets available for benefits Beginning of year 0 9,034,197 ----------- ------------- End of year $ 2,329,167 $ 8,734,711 =========== ============= 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 ------------ USCC Common Stock Loans ----------- ------------- Investment Income: Net appreciation (deprecation) in fair value of investments $ (70,785) $ 0 Interest 3,629 29,389 Dividends 0 0 ----------- ------------- $ (67,156) $ 29,389 Less investment expenses (274) 0 ----------- ------------- $ (67,430) $ 29,389 ----------- ------------- Contributions Employer $ 0 $ 0 Participants 884,949 0 Participant fund transfers 47,879 0 Forfeitures 0 0 Transfers between investments (290,063) 98,409 ----------- ------------- $ 642,765 $ 98,409 ----------- ------------- Total additions $ 575,335 $ 127,798 ----------- ------------- Benefits paid $ 163,751 $ 21,656 ----------- ------------- Net increase (decrease) $ 411,584 $ 106,142 Net assets available for benefits Beginning of year 3,145,522 363,999 ----------- ------------- End of year $ 3,557,106 $ 470,141 =========== ============= TELEPHONE AND DATA SYSTEMS, INC TAX-DEFERRED SAVINGS PLAN 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 statments. TELEPHONE AND DATA SYSTEMS, INC TAX-DEFERRED SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS Three Months Ended December 31, 1993 Participant Directed --------------------------------------------- Lasalle ANB TDS Income S&P Common Plus 500 Index Stock ----------- ------------- ------------ Investment Income: Net appreciation (depreciation) in fair value of investment $ 0 $ 36,268 $ (90,581) Interest 500 641 1,558 Dividends 30,622 14,592 14,495 Stock Rights 0 0 0 ----------- ------------- ------------ $ 31,122 $ 51,501 $ (74,528) Less investment expenses (1,947) (1,701) (66) ----------- ------------- ------------ $ 29,175 $ 49,800 $ (74,594) ----------- ------------- ------------ Contributions Employer $ 0 $ 0 $ 0 Participants 131,302 169,165 409,213 Participant fund transfers 7,919 32,738 15,653 Forfeitures 0 0 0 Transfers between investments (100,473) (77,670) 79,283 ----------- ------------- ------------ $ 38,748 $ 124,233 $ 504,149 ----------- ------------- ------------ Total additions $ 67,923 $ 174,033 $ 429,555 ----------- ------------- ------------ Benefits paid $ 139,283 $ 27,415 $ 164,552 ----------- ------------- ------------ Net increase (decrease) $ (71,360) $ 146,618 $ 265,003 Net assets available for benefits Beginning of year 2,317,915 2,207,776 8,769,194 ----------- ------------- ------------ End of year $ 2,246,555 $ 2,354,394 $ 9,034,197 =========== ============= ============ TELEPHONE AND DATA SYSTEMS, INC TAX-DEFERRED SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS Three Months Ended December 31, 1993 Participant Directed ----------- USCC Common Stock Loans ----------- ------------- Investment Income: Net appreciation (depreciation) in fair value of investments $ 39,077 $ 0 Interest 671 6,220 Dividends 0 0 Stock Rights 44,613 0 ----------- ------------- $ 84,361 $ 6,220 Less investment expenses (27) 0 ----------- ------------- $ 84,334 $ 6,220 ----------- ------------- Contributions Employer $ 0 $ 0 Participants 176,257 0 Participant fund transfers 1,475 0 Forfeitures 0 0 Transfers between investments 90,969 7,891 ----------- ------------- $ 268,701 $ 7,891 ----------- ------------- Total additions $ 353,035 $ 14,111 ----------- ------------- Benefits paid $ 49,386 $ 9,453 ----------- ------------- Net increase (decrease) $ 303,649 $ 4,658 Net assets available for benefits Beginning of year 2,841,873 359,341 ----------- ------------- End of year $ 3,145,522 $ 363,999 =========== ============= TELEPHONE AND DATA SYSTEMS, INC TAX-DEFERRED SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS Three Months Ended December 31, 1993 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 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 and API 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 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. 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. 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), ANB S&P 500 Index Fund, 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 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. Tax-Deferred Savings Plan Page 3 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. 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. 2. VALUATION OF INVESTMENTS Market value of investments was determined as of December 31, 1995 and December 31, 1994 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, the Fidelity Advisor Equity Growth Institutional Fund and the Warburg, Pincus International Equity Fund. TDS Common Stock, USCC Common Stock and API Common Stock are valued at the latest bid price from published sources. Plan loans are valued at cost, which approximates fair value. 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 1,812 participants in this fund as of December 31, 1995. The USCC Common Stock Fund is made up of USCC Common Shares. There were approximately 1,424 participants in this fund as of December 31, 1995. The API Common Stock Fund is made up of API Common Shares. There were approximately 181 participants in this fund as of December 31, 1995. Tax-Deferred Savings Plan Page 4 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 1,100 participants in this fund as of December 31, 1995. The LaSalle Income Plus Fund is a pooled investment fund invested in short-term securities, consisting mainly of Guaranteed Investment Contracts. There were approximately 1,012 participants in this fund as of December 31, 1995. 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 629 participants in this fund as of December 31, 1995. 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 1,265 participants in this fund as of December 31, 1995. 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. There were approximately 394 participants in this fund as of December 31, 1995. 5. PRIOR YEAR INFORMATION Certain amounts in the 1994 financial statements have been reclassified to conform to the 1995 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. 7. FAIR VALUE OF INVESTMENTS Fair Value of Investments December 31, 1995 December 31, 1994 ----------------- ----------------- Number of Fair Number of Fair Shares Value Shares Value --------- ------ --------- ----- Investments at Fair Value As Determined by Quoted Market Price Common Stocks Telephone & Data Systems, Inc Investment 200,471 $ 7,918,605 185,063 $ 8,536,031 Match 31,717 1,252,822 21,233 979,372 United States Cellular Corp. Investment 114,407 3,861,236 105,737 3,462,886 Match 7,236 244,215 3,686 120,717 American Paging, Inc Investment 31,453 200,513 N/A N/A Match 0 0 N/A N/A ----------- ----------- $13,477,391 $13,099,006 ----------- ----------- Investments at Fund Quoted Value Mutual Funds American National Bank S&P 500 Index 16,450 $ 3,223,356 14,486 $ 2,065,455 LaSalle Income Plus Fund 3,381,293 3,381,293 2,238,363 2,238,363 Vanguard GNMA Fund 97,656 1,018,550 56,705 543,235 Fidelity Advisor Fund 119,357 4,523,625 78,957 2,255,815 Warburg, Pincus Int'l Fund 27,043 531,121 N/A N/A ----------- ----------- $12,677,945 $ 7,102,868 ----------- ----------- Investments at Cost Which Approximate Fair Value Plan Loans -- $ 561,705 -- $ 470,141 ----------- ----------- Total Investments at Fair Value $26,717,041 $20,672,015 =========== =========== The Plan's investments (including investments sold and held during the year) appreciated in value by $398,779 during the year ended December 31, 1995, depreciated in value by $1,232,916 during the year ended December 31, 1994, and depreciated in value by $34,432 during the 3 months ended December 31, 1993, as follows: Net Change in Fair Value Year Ended, 3 Months Ended 12/31/95 12/31/94 12/31/93 -------- -------- -------- Investments at Fair Value as Determined by Quoted Market Price Common Stocks $ (1,297,749) $ (1,113,124) $ (70,700) Investments at Fund Quoted Value Mutual Funds 1,696,528 (119,792) 36,268 ------------ ------------ ---------- Net Change in Fair Value $ 398,779 $ (1,232,916) $ (34,432) ============ ============ ========== 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 May 29, 1996 Telephone and Data Systems, Inc. Tax-Deferred Savings Plan Schedule I For Year Ended December 31, 1995 Schedule of Reportable Transactions Total Total Number Amount Number Amount Cost Gain Description of of of of of of (Loss) The Security Purchases Purchases Sales Sales Sales On Sales - -------------------- --------- ---------- ----- ------- ------- -------- LaSalle Income Plus 24 1,142,930 0 - - - TDS Common Stock-- 8 1,148,650 5 565,480 410,645 154,835 Investment TDS Common Stock-- 6 533,021 6 69,928 61,179 8,750 Match USCC Common Stock-- 8 696,941 5 403,763 347,409 56,354 Investment USCC Common Stock-- 3 142,095 9 38,123 36,309 1,814 Match API Common Stock-- 9 232,720 0 - - - Investment ANB S&P 500 Index 27 622,776 2 216,597 176,331 40,266 Fidelity Advisor 15 1,418,923 0 - - - Equity Growth Vanguard GNMA 22 415,763 0 - - - Warburg International 11 494,792 0 - - - Telephone and Data Systems, Inc. Tax-Deferred Savings Plan Schedule II Assets Held for Investment Purposes December 31, 1995 ------------------------------ Cost Fair Value ---------- ----------- Common Stocks Telephone and Data Systems, Inc. Common Share, $1 par value - Investment $6,382,590 $7,918,605 - Match 1,148,965 1,252,822 United States Cellular Corporation Common Shares, $1 par value - Investment 3,127,378 3,861,236 - Match 217,408 244,215 American Paging, Inc. Common Shares, $1 par value - Investment 232,720 200,513 - Match - - - - Mutual Funds ANB S&P 500 Index Fund 2,277,265 3,223,356 LaSalle Income Plus Fund 3,381,293 3,381,293 Vanguard GNMA Fund 994,438 1,018,550 Fidelity Advisor Fund 3,732,025 4,523,625 Warburg, Pincus International Fund 494,792 531,121 Plan Loans 561,705 561,705 EX-1 2 AUDITOR CONSENT Exhibit 1 CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS We consent to our reports dated May 29, 1996, 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, 1995. McGladrey & Pullen LLP Madison, Wisconsin Date: June 27, 1996 -----END PRIVACY-ENHANCED MESSAGE-----