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
<PAGE>
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
<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: June 28, 1995
<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, 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
<PAGE>
<TABLE>
TELEPHONE AND DATA SYSTEMS, INC.
TAX-DEFERRED SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1994
<CAPTION>
Participant Directed
-----------------------------------------------------
TDS USCC ANB
Common Common Fidelity Vanguard S&P
Stock Stock Growth GNMA 500 Index
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
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 ========= ========= ========= ========= =========
<CAPTION>
Participant
Directed Company Match
---------- ------------------
LaSalle TDS USCC
Income Common Common
Plus Loans Stock Stock Total
---------- --------- ---------- ------- -----------
<S> <C> <C> <C> <C> <C>
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 ========== ========= ========== ======= ===========
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<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
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 ========= ========= ========= ========= =========
<CAPTION>
Company Match
-----------------
TDS USCC
Common 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
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 ========== ========== =============
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
TELEPHONE AND DATA SYSTEMS, INC.
TAX-DEFERRED SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1994
<CAPTION>
Participant Directed
-----------------------------------------------------
TDS USCC ANB
Common Common Fidelity Vanguard S&P
Stock Stock Growth GNMA 500 Index
--------- --------- --------- -------- ---------
<S> <C> <C> <C> <C> <C>
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
========== ========= ========== ========= ==========
<CAPTION>
Participant
Directed Company Match
---------- ------------------
LaSalle TDS USCC
Income Common Common
Plus Loans Stock Stock Total
---------- --------- ---------- ------- ----------
<S> <C> <C> <C> <C> <C>
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
=========== ========= ========= ======== ===========
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
TELEPHONE AND DATA SYSTEMS, INC.
TAX-DEFERRED SAVINGS PLAN
STATEMENT OF CHANGES IN 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>
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
========== ========= ========= ========== ==========
<CAPTION>
Company Match
-----------------
TDS USCC
Common 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
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
========== ========= ============
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
TELEPHONE AND DATA SYSTEMS, INC.
TAX-DEFERRED SAVINGS PLAN
STATEMENT 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
(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
========== ========= ========= ========== ==========
<CAPTION>
Company Match
-----------------
TDS USCC
Common Common
Stock Stock Total
---------- ------- -----------
<S> <C> <C> <C>
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
========== ========= ============
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<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 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.
<PAGE>
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.
<PAGE>
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.
<PAGE>
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.
<PAGE>
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
<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, LLP
Madison, Wisconsin
June 2, 1995
<PAGE>
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)
<PAGE>
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
<PAGE>
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
<PAGE>
