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, 1996
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
Aerial Communications, Inc.
8410 West Bryn Mawr Avenue
Suite 1100
Chicago, IL 60631
<PAGE>
Required Information
(a) Financial Statements
1 Audited Statements of Net Assets Available for Benefits as of
December 31, 1996 and December 31, 1995.
2. Audited Statements of Changes in Net Assets Available for
Benefits for the year ended December 31, 1996, for the year
ended December 31, 1995 and for the year ended December 31,
1994.
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 25, 1997
<PAGE>
Telephone and Data Systems, Inc.
Tax-Deferred Savings Plan
Financial Statements
As of December 31, 1996 and December 31, 1995
Together with Independent Auditor's Report
<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, 1996 and 1995, and the related statements of changes in net assets
available for benefits for the years ended December 31, 1996, 1995 and 1994.
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, 1996 and
1995, and the changes in net assets available for benefits for the years ended
December 31, 1996, 1995 and 1994 in conformity with generally accepted
accounting principles.
McGladery & Pullen, LLP
Madison, Wisconsin
March 28, 1997
<PAGE>
TELEPHONE AND DATA SYSTEMS, INC
TAX-DEFERRED SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1996
Participant Directed
------------------------------------------------
Lasalle
Income Vanguard Vanguard Fidelity
Plus GNMA Index 500 Growth
----------- ----------- ---------- -----------
ASSETS
Investments, at fair value
Money market accounts $ 209,193 $ 58,947 $ 266,403 $ 379,993
Common stock 0 0 0 0
Mutual funds 3,908,265 1,510,276 5,651,725 8,582,462
Plan loans 0 0 0 0
---------- ---------- ---------- ----------
$4,117,458 $1,569,223 $5,918,128 $8,962,455
---------- ---------- ---------- ----------
Receivables
Employer contributions $ 0 $ 0 $ 0 $ 0
Participant contributions 7,655 5,664 21,991 28,694
Accrued interest
and dividends 21,258 159 585 7,042
Other receivables 9,171 1,637 3,023 1,960
---------- ---------- ---------- ----------
$ 38,084 $ 7,460 $ 25,599 $ 37,696
---------- ---------- ---------- ----------
Total assets $4,155,542 $1,576,683 $5,943,727 $9,000,151
---------- ---------- ---------- ----------
LIABILITIES
Accounts payable $ 41,661 $ 641 $ 3,004 $ 7,791
---------- ---------- ---------- ----------
Total liabilities $ 41,661 $ 641 $ 3,004 $ 7,791
---------- ---------- ---------- ----------
NET ASSETS AVAILABLE
FOR BENEFITS $4,113,881 $1,576,042 $5,940,723 $8,992,360
========== ========== ========== ==========
The accompanying notes are an integral part of these financial statements.
<PAGE>
TELEPHONE AND DATA SYSTEMS, INC
TAX-DEFERRED SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1996
Participant
Directed
-------------
Warburg
International
-------------
ASSETS
Investments, at fair value
Money market accounts $ 98,317
Common stock 0
Mutual funds 1,638,134
Plan loans 0
----------
$1,736,451
----------
Receivables
Employer contributions $ 0
Participant contributions 9,736
Accrued interest and dividends 298
Other receivables 180
----------
$ 10,214
----------
Total assets $1,746,665
----------
LIABILITIES
Accounts payable $ 2,088
----------
Total liabilities $ 2,088
----------
NET ASSETS AVAILABLE FOR BENEFITS $1,744,577
==========
The accompanying notes are an integral part of these financial statements.
<PAGE>
TELEPHONE AND DATA SYSTEMS, INC
TAX-DEFERRED SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1996
Participant Directed
-------------------------------------------------
TDS USCC API Aerial
Common Common Common Common
Stock Stock Stock Stock
---------- ---------- ---------- ----------
ASSETS
Investments, at fair value
Money market accounts $ 144,944 $ 111,817 $ 12,323 $ 21,641
Common stock 5,989,080 3,190,656 154,172 190,613
Mutual funds 0 0 0 0
Plan loans 0 0 0 0
---------- ---------- ---------- -----------
$6,134,024 $3,302,473 $ 166,495 $ 212,254
---------- ---------- ---------- -----------
Receivables
Employer contributions $ 0 $ 0 $ 0 $ 0
Participant contributions 16,922 15,018 273 (2,415)
Accrued interest
and dividends 377 318 35 88
Other receivables 1,873 4,398 52 51
---------- --------- ---------- -----------
$ 19,172 $ 19,734 $ 360 $ (2,276)
---------- --------- ---------- ------------
Total assets $6,153,196 $3,322,207 $ 166,855 $ 209,978
---------- ---------- ---------- ------------
LIABILITIES
Accounts payable $ 4,191 $ 1,886 $ 78 $ 256
---------- ---------- --------- ------------
Total liabilities $ 4,191 $ 1,886 $ 78 $ 256
---------- ---------- --------- -----------
NET ASSETS AVAILABLE
FOR BENEFITS $6,149,005 $3,320,321 $ 166,777 $ 209,722
========== ========== ========= ===========
The accompanying notes are an integral part of these financial statements.
<PAGE>
TELEPHONE AND DATA SYSTEMS, INC
TAX-DEFERRED SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1996
Company Match
-------------------------------------
TDS USCC API
Common Common Common
Loans Stock Stock Stock
---------- ---------- ----------- -----------
ASSETS
Investments, at fair value
Money market accounts $ 0 $ 12,143 $ 6,458 $ (1,159)
Common stock 0 1,528,699 333,190 32,658
Mutual funds 0 0 0 0
Plan loans 707,944 0 0 0
---------- ---------- ----------- ----------
$ 707,944 $1,540,842 $ 339,648 $ 31,499
---------- ----------- ----------- ----------
Receivables
Employer contributions $ 0 $ 632,734 $ 601,115 $ 115,143
Participant contributions 0 0 0 0
Accrued interest
and dividends 0 0 0 0
Other receivables 0 0 0 0
---------- ---------- ----------- ----------
$ 0 $ 632,734 $ 601,115 $ 115,143
---------- ---------- ----------- ----------
Total assets $ 707,944 $2,173,576 $ 940,763 $ 146,642
---------- ---------- ----------- ----------
LIABILITIES
Accounts payable $ 0 $ 142 $ 0 $ 3
---------- ---------- ----------- ----------
Total liabilities $ 0 $ 142 $ 0 $ 3
---------- ---------- ----------- ----------
NET ASSETS AVAILABLE
FOR BENEFITS $ 707,944 $2,173,434 $ 940,763 $ 146,639
========== ========== =========== ==========
The accompanying notes are an integral part of these financial statements.
<PAGE>
TELEPHONE AND DATA SYSTEMS, INC
TAX-DEFERRED SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1996
Company Match
----------------------------
AERIAL
Common
Stock Total
---------- -----------
ASSETS
Investments, at fair value
Money market accounts $ 0 $ 1,321,020
Common stock 0 11,419,068
Mutual funds 0 21,290,862
Plan loans 0 707,944
---------- -----------
$ 0 $34,738,894
---------- -----------
Receivables
Employer contributions $ 65,005 $ 1,413,997
Participant contributions 0 103,538
Accrued interest and dividends 0 30,160
Other receivables 0 22,345
---------- -----------
$ 65,005 $ 1,570,040
---------- -----------
Total assets $ 65,005 $36,308,934
---------- -----------
LIABILITIES
Accounts payable $ 0 $ 61,741
---------- -----------
Total liabilities $ 0 $ 61,741
---------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $ 65,005 $36,247,193
========== ===========
The accompanying notes are an integral part of these financial statements.
<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 Fidelity
Plus GNMA 500 Index Growth
---------- ---------- ---------- -----------
ASSETS
Investments, at fair value
Money market accounts $ 56,452 $ 8,718 $ 34,113 $ 47,219
Common stock 0 0 0 0
Mutual funds 3,381,293 1,018,550 3,223,356 4,523,625
Plan loans 0 0 0 0
---------- ---------- ---------- -----------
$3,437,745 $1,027,268 $3,257,469 $ 4,570,844
---------- ---------- ---------- -----------
Receivables
Employer contributions $ 0 $ 0 $ 0 $ 0
Participant contributions 6,326 2,864 6,123 11,080
Accrued interest
and dividends 17,720 132 283 512
Other receivables 3,046 10 1,289 63
---------- ---------- ---------- -----------
$ 27,092 $ 3,006 $ 7,695 $ 11,655
---------- ---------- ---------- -----------
Total assets $3,464,837 $1,030,274 $3,265,164 $ 4,582,499
---------- ---------- ---------- -----------
LIABILITIES
Accounts payable $ 152 $ 239 $ 2,591 $ 600
---------- ---------- ---------- -----------
Total liabilities $ 152 $ 239 $ 2,591 $ 600
---------- ---------- ---------- -----------
NET ASSETS AVAILABLE
FOR BENEFITS $3,464,685 $1,030,035 $3,262,573 $ 4,581,899
========== ========== ========== ===========
The accompanying notes are an integral part of these financial statements.
<PAGE>
TELEPHONE AND DATA SYSTEMS, INC.
TAX-DEFERRED SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1995
Participant
Directed
------------
Warburg
International
------------
ASSETS
Investments, at fair value
Money market accounts $ (17,487)
Common stock 0
Mutual funds 531,120
Plan loans 0
----------
$ 513,633
----------
Receivables
Employer contributions $ 0
Participant contributions 2,704
Accrued interest and dividends 125
Other receivables 1,263
----------
$ 4,092
----------
Total assets $ 517,725
----------
LIABILITIES
Accounts payable $ 40
----------
Total liabilities $ 40
----------
NET ASSETS AVAILABLE FOR BENEFITS $ 517,685
==========
The accompanying notes are an integral part of these financial statements.
<PAGE>
TELEPHONE AND DATA SYSTEMS, INC.
TAX-DEFERRED SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1995
Participant Directed
-----------------------------------
TDS USCC API
Common Common Common
Stock Stock Stock Loans
---------- ---------- ---------- ----------
ASSETS
Investments, at fair value
Money market accounts $ 107,297 $ 45,722 $ (6,296) $ 0
Common stock 7,918,605 3,861,236 200,513 0
Mutual funds 0 0 0 0
Plan loans 0 0 0 561,290
---------- ---------- ---------- ----------
$8,025,902 $3,906,958 $ 194,217 $ 561,290
---------- ---------- ---------- ----------
Receivables
Employer contributions $ 0 $ 0 $ 0 $ 0
Participant contributions 12,416 8,744 882 0
Accrued interest
and dividends 574 404 41 0
Other receivables 12,228 3,494 12 0
---------- ---------- ---------- ----------
$ 25,218 $ 12,642 $ 935 $ 0
---------- ---------- ---------- ----------
Total assets $8,051,120 $3,919,600 $ 195,152 $ 561,290
---------- ---------- ---------- ----------
LIABILITIES
Accounts payable $ 41,271 $ 40,260 $ 38 $ 0
---------- ---------- ---------- ----------
Total liabilities $ 41,271 $ 40,260 $ 38 $ 0
---------- ---------- --------- ----------
NET ASSETS AVAILABLE
FOR BENEFITS $8,009,849 $3,879,340 $ 195,114 $ 561,290
========== ========== ========= ==========
The accompanying notes are an integral part of these financial statements.
<PAGE>
TELEPHONE AND DATA SYSTEMS, INC.
TAX-DEFERRED SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1995
Company Match
---------------------------------
TDS USCC API
Common Common Common
Stock Stock Stock Total
---------- ---------- --------- ------------
ASSETS
Investments, at fair value
Money market accounts $ (3,464) $ 3,593 $ 0 $ 275,867
Common stock 1,252,822 244,215 0 13,477,391
Mutual funds 0 0 0 12,677,944
Plan loans 0 0 0 561,290
---------- ---------- --------- ------------
$1,249,358 $ 247,808 $ 0 $ 26,992,492
---------- ---------- --------- ------------
Receivables
Employer contributions $ 497,338 $ 191,498 $ 58,593 $ 747,429
Participant contributions 0 0 0 51,139
Accrued interest
and dividends 0 0 0 19,791
Other receivables 0 0 0 21,405
---------- ---------- --------- ------------
$ 497,338 $ 191,498 $ 58,593 $ 839,764
---------- ---------- --------- ------------
Total assets $1,746,696 $ 439,306 $ 58,593 $ 27,832,256
---------- ---------- --------- ------------
LIABILITIES
Accounts payable $ 5,110 $ 2,527 $ 0 $ 92,828
---------- ---------- --------- ------------
Total liabilities $ 5,110 $ 2,527 $ 0 $ 92,828
---------- ---------- --------- ------------
NET ASSETS AVAILABLE
FOR BENEFITS $1,741,586 $ 436,779 $ 58,593 $ 27,739,428
========== ========== ========= ============
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, 1996
Participant Directed
-----------------------------------------------
LaSalle
Income Vanguard Vanguard Fidelity
Plus GNMA Index 500 Growth
---------- ---------- ---------- -----------
Investment Income:
Net appreciation
(depreciation) in fair value
of investments $ 0 $ (19,500) $ 773,409 $ 747,403
Interest 3,392 1,719 4,838 9,023
Dividends 227,822 92,935 117,329 335,714
---------- ----------- ---------- ----------
$ 231,214 $ 75,154 $ 895,576 $1,092,140
Less investment expenses (13,530) (35) (2,237) (165)
---------- ---------- ---------- ----------
$ 217,684 $ 75,119 $ 893,339 $1,091,975
---------- ---------- ---------- ----------
Contributions
Employer $ 0 $ 0 $ 0 $ 0
Participants 822,836 423,709 1,186,006 2,211,718
Participant fund transfers 172,671 46,784 164,922 308,241
Forfeitures 0 0 0 0
Transfers between investments (108,818) 90,155 702,594 1,263,512
---------- ---------- ---------- -----------
$ 886,689 $ 560,648 $2,053,522 $3,783,471
---------- ---------- ---------- -----------
Total additions $1,104,373 $ 635,767 $2,946,861 $4,875,446
---------- ---------- ---------- -----------
Benefits paid $ 455,177 $ 89,760 $ 268,711 $ 464,985
---------- ---------- ---------- -----------
Net increase (decrease) $ 649,196 $ 546,007 $2,678,150 $4,410,461
Net assets available for
benefits
Beginning of year $3,464,685 $1,030,035 $3,262,573 $4,581,899
---------- ---------- ---------- -----------
End of year $4,113,881 $1,576,042 $5,940,723 $8,992,360
========== ========== ========== ===========
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, 1996
Participant Directed
-------------------------------------------------
TDS USCC API
Warburg Common Common Common
International Stock Stock Stock
----------- ------------ ---------- -----------
Investment Income:
Net appreciation
(depreciation) in fair value
of investments $ 36,804 $ (375,828) $ (652,687) $ (54,919)
Interest 2,310 6,506 4,629 378
Dividends 64,184 69,953 0 0
---------- ------------ ---------- ----------
$ 103,298 $ (299,369) $ (648,058) $ (54,541)
Less investment expenses (39) (122) (92) (8)
---------- ----------- ---------- ----------
$ 103,259 $ (299,491) $ (648,150) $ (54,549)
---------- ----------- ---------- ----------
Contributions
Employer $ 0 $ 0 $ 0 $ 0
Participants 563,061 1,245,460 976,138 82,934
Participant fund transfers 79,019 37,789 163,863 7,187
Forfeitures 0 0 0 0
Transfers between
investments 579,584 (2,045,222) (714,407) (48,903)
---------- ---------- ---------- ----------
$1,221,664 $ (761,973) $ 425,594 $ 41,218
---------- ---------- ---------- ----------
Total additions $1,324,923 $(1,061,464) $ (222,556) $ (13,331)
---------- ----------- ---------- ----------
Benefits paid $ 98,031 $ 799,380 $ 336,463 $ 15,006
---------- ----------- ---------- ----------
Net increase (decrease) $1,226,892 $(1,860,844) $ (559,019) $ (28,337)
Net assets available for
benefits
Beginning of year $ 517,685 $ 8,009,849 $ 3,879,340 $ 195,114
---------- ----------- ----------- ----------
End of year $1,744,577 $ 6,149,005 $ 3,320,321 $ 166,777
========== =========== =========== ==========
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, 1996
Participant
Directed Company Match
----------- -------------------------
AERIAL TDS USCC
Common Common Common
Stock Loans Stock Stock
---------- ----------- ---------- ------------
Investment Income:
Net appreciation
(depreciation) in fair value
of investments $ (30,219) $ 0 $ (146,592) $ (74,696)
Interest 257 49,251 1,002 381
Dividends 0 0 17,379 0
---------- ----------- ---------- ------------
$ (29,962) $ 49,251 $ (128,211) $ (74,315)
Less investment expenses 0 0 0 0
---------- ----------- ---------- ------------
$ (29,962) $ 49,251 $ (128,211) $ (74,315)
---------- ----------- ---------- ------------
Contributions
Employer $ 0 $ 0 $ 700,579 $ 621,227
Participants 57,497 0 0 0
Participant fund transfers 23,810 0 0 0
Forfeitures 0 0 (867) (982)
Transfers between
investments 158,377 120,398 0 2,730
---------- ----------- ---------- ------------
$ 239,684 $ 120,398 $ 699,712 $ 622,975
---------- ----------- ---------- ------------
Total additions $ 209,722 $ 169,649 $ 571,501 $ 548,660
---------- ----------- ---------- ------------
Benefits paid $ 0 $ 22,995 $ 139,653 $ 44,676
---------- ----------- ---------- ------------
Net increase (decrease) $ 209,722 $ 146,654 $ 431,848 $ 503,984
Net assets available for
benefits
Beginning of year $ 0 $ 561,290 $1,741,586 $ 436,779
---------- ----------- ---------- ------------
End of year $ 209,722 $ 707,944 $2,173,434 $ 940,763
========== =========== ========== ============
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
December 31, 1996
Company Match
----------------------------
API AERIAL
Common Common
Stock Stock Total
----------- ------------ ---------------
Investment Income:
Net appreciation
(depreciation) in fair value
of investments $ (19,890) $ 0 $ 183,285
Interest 115 0 83,801
Dividends 0 0 925,316
---------- ----------- ----------------
$ (19,775) $ 0 $ 1,192,402
Less investment expenses 0 0 (16,228)
---------- ----------- ----------------
$ (19,775) $ 0 $ 1,176,174
---------- ----------- ----------------
Contributions
Employer $ 120,821 $ 65,005 $ 1,507,632
Participants 0 0 7,569,359
Participant fund transfers 0 0 1,004,286
Forfeitures (176) 0 (2,025)
Transfers between
investments 0 0 0
---------- ----------- ---------------
$ 120,645 $ 65,005 $ 10,079,252
---------- ----------- ---------------
Total additions $ 100,870 $ 65,005 $ 11,255,426
---------- ----------- ---------------
Benefits paid $ 12,824 $ 0 $ 2,747,661
---------- ----------- ---------------
Net increase (decrease) $ 88,046 $ 65,005 $ 8,507,765
Net assets available for
benefits
Beginning of year $ 58,593 $ 0 $ 27,739,428
---------- ----------- ---------------
End of year $ 146,639 $ 65,005 $ 36,247,193
========== =========== ===============
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, 1995
Participant Directed
--------------------------------------------------
Lasalle ANB
Income Vanguard S&P Fidelity
Plus GNMA 500 Index Growth
---------- ----------- ----------- ------------
Investment Income:
Net appreciation
(depreciation) in fair value
of investments $ 0 $ 59,552 $ 751,760 $ 848,887
Interest 3,697 1,712 4,000 6,883
Dividends 174,779 54,291 67,782 239,565
---------- ----------- ----------- ------------
$ 178,476 $ 115,555 $ 823,542 $ 1,095,335
Less investment expenses (10,168) (30) (7,741) (125)
---------- ----------- ----------- -----------
$ 168,308 $ 115,525 $ 815,801 $ 1,095,210
---------- ----------- ----------- -----------
Contributions
Employer $ 0 $ 0 $ 0 $ 0
Participants 631,461 293,933 672,786 1,173,313
Participant fund transfers 170,820 51,062 62,365 82,422
Forfeitures 0 0 0 0
Transfers between
investments 343,532 52,615 (185,470) 244,413
--------- ----------- ----------- ------------
$1,145,813 $ 397,610 $ 549,681 $ 1,500,148
---------- ----------- ----------- ------------
Total additions $1,314,121 $ 513,135 $ 1,365,482 $ 2,595,358
---------- ----------- ----------- ------------
Benefits paid $ 104,840 $ 57,067 $ 193,081 $ 342,626
---------- ----------- ----------- ------------
Net increase (decrease) $1,209,281 $ 456,068 $ 1,172,401 $ 2,252,732
Net assets available for
benefits
Beginning of year $2,255,404 $ 573,967 $ 2,090,172 $ 2,329,167
---------- ----------- ----------- ------------
End of year $3,464,685 $ 1,030,035 $ 3,262,573 $ 4,581,899
========== =========== =========== ============
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, 1995
Participant Directed
-------------------------------------------------
TDS USCC API
Warburg Common Common Common
International Stock Stock Stock
----------- ----------- ----------- ------------
Investment Income:
Net appreciation
(depreciation) in fair value
of investments $ 36,329 $(1,200,597) $ 105,171 $ (32,207)
Interest 990 10,090 6,147 328
Dividends 15,654 74,339 0 0
---------- ----------- ----------- -----------
$ 52,973 $(1,116,168) $ 111,318 $ (31,879)
Less investment expenses (11) (185) (112) (4)
---------- ----------- ----------- -----------
$ 52,962 $(1,116,353) $ 111,206 $ (31,883)
---------- ----------- ----------- -----------
Contributions
Employer $ 0 $ 0 $ 0 $ 0
Participants 185,603 1,575,143 1,005,924 59,980
Participant fund transfers 11,913 61,041 66,417 10,250
Forfeitures 0 0 0 0
Transfers between
investments 313,077 (617,082) (407,668) 173,251
---------- ----------- ----------- -----------
$ 510,593 $ 1,019,102 $ 664,673 $ 243,481
---------- ----------- ----------- -----------
Total additions $ 563,555 $ (97,251) $ 775,879 $ 211,598
---------- ----------- ----------- -----------
Benefits paid $ 45,870 $ 627,611 $ 453,645 $ 16,484
---------- ----------- ----------- -----------
Net increase (decrease) $ 517,685 $ (724,862) $ 322,234 $ 195,114
Net assets available for
benefits
Beginning of year $ 0 $ 8,734,711 $ 3,557,106 $ 0
---------- ----------- ----------- -----------
End of year $ 517,685 $ 8,009,849 $ 3,879,340 $ 195,114
========== =========== =========== ===========
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, 1995
Company Match
--------------------------------------
TDS USCC API
Common Common Common
Loans Stock Stock Stock
---------- ---------- ----------- ----------
Investment Income:
Net appreciation
(depreciation) in fair value
of investments $ 0 $ (189,643) $ 19,527 $ 0
Interest 38,343 61 23 0
Dividends 0 12,284 0 0
---------- ---------- ----------- -----------
$ 38,343 $ (177,298) $ 19,550 $ 0
Less investment expenses 0 0 0 0
---------- ---------- ----------- -----------
$ 38,343 $ (177,298) $ 19,550 $ 0
---------- ---------- ----------- -----------
Contributions
Employer $ 0 $ 498,451 $ 191,724 $ 58,593
Participants 0 0 0 0
Participant fund transfers 0 0 0 0
Forfeitures 0 (69) (233) 0
Transfers between
investments 83,332 0 0 0
---------- ----------- ----------- -----------
$ 83,332 $ 498,382 $ 191,491 $ 58,593
---------- ----------- ----------- -----------
Total additions $ 121,675 $ 321,084 $ 211,041 $ 58,593
---------- ----------- ----------- -----------
Benefits paid $ 30,526 $ 84,583 $ 31,154 $ 0
---------- ----------- ----------- -----------
Net increase (decrease) $ 91,149 $ 236,501 $ 179,887 $ 58,593
Net assets available for
benefits
Beginning of year $ 470,141 $ 1,505,085 $ 256,891 $ 0
---------- ----------- ----------- -----------
End of year $ 561,290 $ 1,741,586 $ 436,778 $ 58,593
========== =========== =========== ===========
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, 1995
Total
------------
Investment Income:
Net appreciation
(depreciation) in fair value
of investments $ 398,779
Interest 72,274
Dividends 638,694
------------
$ 1,109,747
Less investment expenses (18,376)
------------
$ 1,091,371
------------
Contributions
Employer $ 748,768
Participants 5,598,143
Participant fund transfers 516,290
Forfeitures (302)
Transfers between
investments 0
------------
$ 6,862,899
------------
Total additions $ 7,954,270
------------
Benefits paid $ 1,987,487
------------
Net increase (decrease) $ 5,966,783
Net assets available for benefits
Beginning of year $21,772,644
------------
End of year $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 Fidelity
Plus GNMA 500 Index Growth
---------- ----------- ---------- ------------
Investment Income:
Net appreciation
(depreciation) in fair value
of investments $ 0 $ (38,783)$ (23,721) $ (57,288)
Interest 1,664 813 2,287 3,300
Dividends 114,858 32,812 55,449 37,262
---------- ----------- ---------- ------------
$ 116,522 $ (5,158)$ 34,015 $ (16,726)
Less investment expenses (7,158) (21) (6,071) (131)
---------- ----------- --------- -----------
$ 109,364 $ (5,179)$ 27,944 $ (16,857)
---------- ----------- ---------- -----------
Contributions
Employer $ 0 $ 0 $ 0 $ 0
Participants 412,228 198,789 571,878 812,428
Participant fund transfers 12,613 5,319 20,029 44,098
Forfeitures 0 0 0 0
Transfers between investments (291,337) 393,569 (697,097) 1,559,492
---------- ---------- ---------- -----------
$ 133,504 $ 597,677 $ (105,190) $ 2,416,018
---------- ---------- ---------- -----------
Total additions $ 242,868 $ 592,498 $ (77,246) $ 2,399,161
---------- ---------- ---------- -----------
Benefits paid $ 234,019 $ 18,531 $ 186,976 $ 69,994
---------- ---------- ---------- -----------
Net increase (decrease) $ 8,849 $ 573,967 $ (264,222) $ 2,329,167
Net assets available for benefits
Beginning of year $2,246,555 $ 0 $2,354,394 $ 0
---------- ---------- ---------- -----------
End of year $2,255,404 $ 573,967 $2,090,172 $ 2,329,167
========== ========== ========== ===========
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
-------------------------
TDS USCC
Common Common
Stock Stock Loans
---------- ----------- ------------
Investment Income:
Net appreciation
(depreciation) in fair value
of investments $ (902,175) $ (70,785) $ 0
Interest 6,640 3,629 29,389
Dividends 63,404 0 0
---------- ----------- -----------
$ (832,131) $ (67,156) $ 29,389
Less investment expenses (1,223) (274) 0
---------- ----------- -----------
$ (833,354) $ (67,430) $ 29,389
---------- ----------- -----------
Contributions
Employer $ 0 $ 0 $ 0
Participants 1,636,203 884,949 0
Participant fund transfers 41,249 47,879 0
Forfeitures 0 0 0
Transfers between investments (772,973) (290,063) 98,409
---------- ----------- -----------
$ 904,479 $ 642,765 $ 98,409
---------- ----------- -----------
Total additions $ 71,125 $ 575,335 $ 127,798
---------- ----------- -----------
Benefits paid $ 370,611 $ 163,751 $ 21,656
---------- ----------- -----------
Net increase (decrease) $ (299,486) $ 411,584 $ 106,142
Net assets available for benefits
Beginning of year $9,034,197 $ 3,145,522 $ 363,999
---------- ----------- -----------
End of year $8,734,711 $ 3,557,106 $ 470,141
========== =========== ===========
The accompanying notes are an integral part of these financial statements.
<PAGE>
TELEPHONE AND DATA SYSTEMS, INC.
TAX-DEFERRED SAVINGS PLANS
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 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, API Common Stock and
Aerial Communications, Inc. Common Stock. Up to now, all
administrative, recordkeeping, and auditing fees have been borne by
TDS.
B. Eligibility and Vesting:
Prior to October 1, 1996, employees age 21 and older were
generally eligible to participate after completing one year of
service. Effective October 1, 1996, employees completing three months
of service are eligible to participate. Participation is completely
voluntary. An employee may become a participant in the Plan on the
first of the month 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>
Telephone and Data Systems, Inc.
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.
Employer matching contributions are credited to participant accounts
as of December 31 of each year. Effective January 1, 1996, the
employer matching contribution for each USCC, API and Aerial
participant is $.33 1/3 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. The
employer matching contribution for all other participants 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. Effective
January 1, 1995, employer contributions of American Paging, Inc. are
made in API Common Stock. Effective January 1, 1996 employer
contributions of Aerial Communications, Inc. are made in Aerial
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), Aerial Common
Stock Fund (effective April 1, 1996), Vanguard Index 500 Fund
(replaced ANB S&P 500 Index Fund on April 1, 1996), 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 funds in increments of 5%.
E. Investment Options
The TDS Common Stock Fund is made up of TDS Common Shares.
The USCC Common Stock Fund is made up of USCC Common Shares.
The Aerial Common Stock Fund is made up of Aerial Common
Shares.
The API Common Stock Fund is made up of API Common Shares.
The Vanguard Index 500 Fund is a pooled investment fund
invested in 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.
The LaSalle Income Plus Fund is a pooled investment fund
invested in short-term securities, consisting mainly of Guaranteed
Investment Contracts.
<PAGE>
Telephone and Data Systems, Inc.
Tax-Deferred Savings Plan
Page 3
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.
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.
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.
F. 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.
G. 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.
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.
<PAGE>
Telephone and Data Systems, Inc.
Tax-Deferred Savings Plan
Page 4
2. SUMMARY OF ACCOUNTING POLICIES
A. Valuation of Investment
Market value of investments was determined as of December 31, 1996
and December 31, 1995 as follows: at the latest price from the funds
themselves for the Vanguard Index 500 fund, 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, API
Common Stock and Aerial Common Stock are valued at the latest bid
price from published sources. Plan loans are valued at cost, which
approximates fair value.
B. Payment of Benefits
Benefits are recorded when paid.
<PAGE>
Telephone and Data Systems, Inc.
Tax-Deferred Savings Plan
Page 5
3. FAIR VALUE OF INVESTMENTS
December 31, 1996 December 31, 1995
--------------------- ---------------------
Number of Fair Number of Fair
Shares Value Shares Value
----------- ---------- --------- ----------
Investments at Fair Value
as Determined by Quoted
Market Price
Money Market Accounts 1,321,020 $ 1,321,020 275,864 $ 275,867
------------ -------------
Common Stocks
Telephone and Data Systems,
Inc. 207,387 $ 7,517,779* 232,188 $ 9,171,427*
United States Cellular Corp. 126,416 3,523,846* 121,643 4,105,451*
American Paging, Inc. 39,857 186,830 31,453 200,513
Aerial Communications, Inc. 23,460 190,613 0 0
----------- -------------
$11,419,068 $ 13,477,391
----------- -------------
Mutual Funds
American National Bank
S&P 500 Index 0 $ 0 16,450 $ 3,223,356*
LaSalle Income Plus Fund 3,908,265 3,908,265* 3,381,293 3,381,293*
Vanguard GNMA Fund 147,776 1,510,276* 97,656 1,018,550
Fidelity Advisor Fund 201,893 8,582,462* 119,357 4,523,625*
Warburg, Pincus Int'l Fund 78,605 1,638,134* 27,043 531,120
Vanguard Index 500 Fund 81,720 5,651,725* 0 0
----------- -------------
$21,290,862 $ 12,677,944
----------- -------------
Investments at Cost Which
Approximate Fair Value
Plan Loans - $ 707,944 - $ 561,290
----------- ------------
Total Investments at Fair Value $34,738,894 $ 26,992,492
=========== ============
* Investments that represent five percent or more of the Plan's net assets.
<PAGE>
Telephone and Data Systems, Inc.
Tax-Deferred Savings Plan
Page 6
The Plan's investments (including investments sold and held during the year)
appreciated in value by $183,285 during the year ended December 31, 1996,
appreciated in value by $398,779 during the year ended December 31, 1995 and
depreciated in value by $1,232,916 during the year ended December 31, 1994 as
follows:
Net Change in Fair Value
----------------------------------------------
Year Ended Year Ended Year Ended
12/31/96 12/31/95 12/31/94
=========== =========== ============
Investments at Fair Value
as Determined by
Quoted Market Price
Common Stocks $(1,354,831) $(1,297,749) $ (1,113,124)
Mutual Funds 1,538,116 1,696,528 (119,792)
Net Change in Fair Value $183,285 $ 398,779 $ (1,232,916)
4. 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.
5. PRIOR YEAR INFORMATION
Certain amounts in the 1995 financial statements have been
reclassified to conform to the 1996 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>
Independent Auditor's Report
On The Supplementary Information
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 Assets Held
for Investment Purposes and Reportable Transactions 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
March 28, 1997
<PAGE>
TELEPHONE AND DATA SYSTEMS, INC.
TAX DEFERRED SAVINGS PLAN
Year Ended December 31, 1996
Schedule of Reportable Transactions
Total Total
Description Number of Amount of Number of
of the Security Purchases Purchases Sales
- ------------------------------ --------- ---------- ----------
LaSalle Trust Money Market 103 17,010,643 92
LaSalle Income Plus 22 772,932 2
Vanguard GNMA 22 526,677 2
ANB S&P 500 Index 3 268,694 1
Vanguard Index 500 13 5,043,443 0
Fidelity Advisor Equity Growth 15 3,311,435 0
Warburg International 13 1,070,209 0
TDS Common Stock
Investment 7 903,255 9
USCC Common Stock
Investment 8 559,126 8
API Common Stock
Investment 7 79,559 5
Aerial Common Stock
Investment 3 220,832 0
TDS Common Stock
Match Investment 4 571,139 9
USCC Common Stock
Match Investment 3 214,074 12
API Common Stock
Match Investment 3 66,581 5
<PAGE>
TELEPHONE AND DATA SYSTEMS, INC.
TAX DEFERRED SAVINGS PLAN
Year Ended December 31, 1996
Schedule of Reportable Transactions
Gain
Description Amount of Cost of (Loss)
of the Security Sales Sales On Sales
- ------------------------------ --------- ---------- ----------
LaSalle Trust Money Market 15,965,490 15,965,490 --
LaSalle Income Plus 245,961 245,961 --
Vanguard GNMA 15,451 15,689 (238)
ANB S&P 500 Index 3,657,176 2,545,960 1,111,216
Vanguard Index 500 -- -- --
Fidelity Advisor Equity Growth -- -- --
Warburg International -- -- --
TDS Common Stock
Investment 2,456,951 1,864,949 592,002
USCC Common Stock
Investment 577,019 480,989 96,030
API Common Stock
Investment 70,982 78,655 (7,673)
Aerial Common Stock
Investment -- -- --
TDS Common Stock
Match Investment 148,670 130,839 17,831
USCC Common Stock
Match Investment 50,403 51,688 (1,285)
API Common Stock
Match Investment 14,033 16,089 (2,056)
<PAGE>
TELEPHONE AND DATA SYSTEMS, INC.
TAX-DEFERRED SAVINGS PLAN
As Of December 31, 1996
Assets Held For Investment Purposes
Shares Cost Current Value
--------- ----------- -------------
Money Market Accounts 1,321,020 $ 1,321,020 $ 1,321,020
Common Stocks
Telephone and Data Systems, Inc.
Common Shares, $1 par value 207,387 7,010,161 7,517,779
United States Cellular Corporation
Common Shares, $1 par value 126,416 3,585,309 3,523,846
American Paging, Inc.
Common Shares, $1 par value 39,857 284,108 186,830
Aerial Communications, Inc.
Common Shares, $1 par value 23,460 220,832 190,613
Mutual Funds
LaSalle National Bank
Income Plus Fund 3,908,265 3,908,265 3,908,265
Vanguard GNMA Fund 147,776 1,505,433 1,510,276
Vanguard Index 500 Fund 81,720 5,043,443 5,651,725
Fidelity Advisor Growth Fund 201,893 7,043,460 8,582,462
Warburg Pincus International Fund 78,605 1,565,001 1,638,134
Plan Loans 707,944 707,944
------------ -----------
$ 32,194,976 $34,738,894
============ ===========
<PAGE>
Exhibit 1
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
We consent to our reports dated March 28, 1997, 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, 1996.
McGladery & Pullen, LLP
Madison, Wisconsin
Date: June 25, 1997
