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
<PAGE>
<PAGE>
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
<PAGE>
<PAGE>
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
<PAGE>
<PAGE>
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
<PAGE>
<PAGE>
<TABLE>
TELEPHONE AND DATA SYSTEMS, INC.
TAX-DEFERRED SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1993
<CAPTION>
Participant Directed
------------------------------------------------
TDS USCC ANB Lasalle
Common Common S & P Income
Stock Stock 500 Index Plus Loans
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
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
=========== =========== =========== =========== ===========
<CAPTION>
Company Match
--------------------------------
TDS Common USCC Common
Stock Stock Total
--------------- --------------- ---------------
<S> <C> <C> <C>
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
=============== =============== ===============
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
TELEPHONE AND DATA SYSTEMS, INC.
TAX-DEFERRED SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
September 30, 1993
<CAPTION>
Participant Directed
------------------------------------------------
TDS USCC ANB Lasalle
Common Common S & P Income
Stock Stock 500 Index Plus Loans
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
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
=========== =========== =========== =========== ===========
<CAPTION>
Company Match
--------------------------------
TDS Common USCC Common
Stock Stock Total
--------------- --------------- ---------------
<S> <C> <C> <C>
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
=============== =============== ===============
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
TELEPHONE AND DATA SYSTEMS, INC.
TAX-DEFERRED SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Three Months Ended December 31, 1993
<CAPTION>
Participant Directed
-----------------------------------------------
TDS USCC ANB LaSalle
Common Common S & P Income
Stock Stock 500 Index Plus Loans
----------- ----------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C>
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
=========== =========== =========== =========== =========
<CAPTION>
Company Match Company Match
TDS Common USCC Common
Stock Stock Total
--------------- -------------- --------------
<S> <C> <C> <C>
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
=============== ============== ==============
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
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<TABLE>
TELEPHONE AND DATA SYSTEMS, INC.
TAX-DEFERRED SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Year Ended September 30, 1993
<CAPTION>
Participant Directed
-----------------------------------------------
TDS USCC ANB LaSalle
Common Common S & P Income
Stock Stock 500 Index Plus Loans
----------- ----------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C>
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
=========== =========== =========== =========== =========
<CAPTION>
Company Match
-------------------------------
TDS Common USCC Common
Stock Stock Total
--------------- -------------- --------------
<S> <C> <C> <C>
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
=============== ============== ==============
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
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<TABLE>
TELEPHONE AND DATA SYSTEMS, INC.
TAX-DEFERRED SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Year Ended September 30, 1992
<CAPTION>
Participant Directed
--------------------------------------------------------------
Lincoln
TDS National USCC ANB
Common Life Common S & P LaSalle
Stock Company Stock 500 Index Income Plus
----------- ----------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C>
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
=========== =========== =========== =========== ===========
<CAPTION>
Company Match
-------------------------
TDS Common USCC Common
Loans Stock Stock Total
------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
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
============ ============ =========== =============
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<PAGE>
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
<PAGE>
<PAGE>
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.
<PAGE>
<PAGE>
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.
<PAGE>
<PAGE>
<TABLE>
Fair Value of Investments
<CAPTION>
December 31, 1993 September 30, 1993
--------------------- ----------------------
Number of Fair Number of Fair
Shares Value Shares Value
----------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
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
=========== ============
</TABLE>
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:
<TABLE>
Net Change in Fair Value
<CAPTION>
3 Months Ended Year Ended Year Ended
12/31/93 09/30/93 09/30/92
-------------- -------------- ---------------
<S> <C> <C> <C>
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
</TABLE>
<PAGE>
<PAGE>
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
<PAGE>
<PAGE>
<TABLE>
Telephone and Data Systems, Inc.
Tax-Deferred Savings Plan
Schedule I
Three Months Ended December 31, 1993
Schedule of Reportable Transactions
<CAPTION>
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
-------------- --------- --------- ---------- ---------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
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
</TABLE>
<PAGE>
<PAGE>
<TABLE>
Telephone and Data Systems, Inc.
Tax-Deferred Savings Plan
Schedule II
Assets Held for Investment Purposes
<CAPTION>
December 31, 1993 September 30, 1993
----------------- ------------------
Number Value Number Value
Common Stocks of Per of Per
------------- Units Unit Units Unit
------- ------ ------- -------
<S> <C> <C> <C> <C>
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
</TABLE>
<PAGE>
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
