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
<PAGE>
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
<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 7, 1996
<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, 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
<PAGE>
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
=========== =========== ===========
<PAGE>
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
=========== =========== ===========
<PAGE>
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
=========== ========== ==========
<PAGE>
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
=========== ==========
<PAGE>
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.
<PAGE>
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
=========== =========== =============
<PAGE>
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
============ ===========
<PAGE>
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
============ ============
<PAGE>
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
============ ============ ===========
<PAGE>
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
============ ============ ===========
<PAGE>
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
============ ============ ===========
<PAGE>
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
============ ============= ===========
<PAGE>
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
============ =============
<PAGE>
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.
<PAGE>
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
=========== ============= ============
<PAGE>
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
=========== =============
<PAGE>
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
=========== =============
<PAGE>
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.
<PAGE>
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
=========== ============= ============
<PAGE>
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
=========== =============
<PAGE>
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.
<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, 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.
<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 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.
<PAGE>
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.
<PAGE>
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.
<PAGE>
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)
============ ============ ==========
<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
May 29, 1996
<PAGE>
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 - - -
<PAGE>
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
<PAGE>
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
<PAGE>
