Attached files

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EX-12 - EX-12 - TELEPHONE & DATA SYSTEMS INC /DE/exhibit12.htm
EX-31.1 - EX-31.1 - TELEPHONE & DATA SYSTEMS INC /DE/exhibit31_1.htm
EX-32.2 - EX-32.2 - TELEPHONE & DATA SYSTEMS INC /DE/exhibit32_2.htm
EX-31.2 - EX-31.2 - TELEPHONE & DATA SYSTEMS INC /DE/exhibit31_2.htm
EX-32.1 - EX-32.1 - TELEPHONE & DATA SYSTEMS INC /DE/exhibit32_1.htm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

[x]

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the quarterly period ended June 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OR

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[ ]

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the transition period from                                    to                                   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commission file number 001-14157

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TELEPHONE AND DATA SYSTEMS, INC.

(Exact name of Registrant as specified in its charter)

Delaware

 

 

36-2669023

(State or other jurisdiction of incorporation or organization)

 

 

(IRS Employer Identification No.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30 North LaSalle Street, Suite 4000, Chicago, Illinois 60602

(Address of principal executive offices) (Zip code)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Registrant’s telephone number, including area code: (312) 630-1900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Indicate by check mark

Yes

No

•  whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

[x]

[ ]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

[x]

[ ]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

•  whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

[x]

Accelerated filer

[ ]

Non-accelerated filer

[ ]

Smaller reporting company

[ ]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

•  whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

[ ]

[x]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class

 

 

Outstanding at June 30, 2015

Common Shares, $0.01 par value

 

 

101,363,899 Shares

Series A Common Shares, $0.01 par value

 

 

7,196,018 Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Telephone and Data Systems, Inc.

 

Quarterly Report on Form 10-Q

For the Quarterly Period Ended June 30, 2015

 

Index

 

Page No.

Part I.

Financial Information

 

 

 

 

 

 

 

Item 1.

Financial Statements (Unaudited)

4

 

 

 

 

 

 

Consolidated Statement of Operations

4

 

 

 

Three and Six Months Ended June 30, 2015 and 2014

 

 

 

 

 

 

 

 

Consolidated Statement of Comprehensive Income

5

 

 

 

Three and Six Months Ended June 30, 2015 and 2014

 

 

 

 

 

 

 

 

Consolidated Statement of Cash Flows

6

 

 

 

Six Months Ended June 30, 2015 and 2014

 

 

 

 

 

 

 

 

Consolidated Balance Sheet

7

 

 

 

June 30, 2015 and December 31, 2014

 

 

 

 

 

 

 

 

Consolidated Statement of Changes in Equity

9

 

 

 

Six Months Ended June 30, 2015 and 2014

 

 

 

 

 

 

 

 

Notes to Consolidated Financial Statements

11

 

 

 

 

 

 

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

26

 

 

 

 

 

 

 

Overview

26

 

 

 

 

 

 

 

Regulatory Matters

30

 

 

 

 

 

 

 

Six Months Ended June 30, 2015 and 2014

 

 

 

 

Results of Operations — Consolidated

31

 

 

 

Results of Operations — U.S. Cellular

33

 

 

 

Results of Operations — TDS Telecom

37

 

 

 

 

 

 

 

Three Months Ended June 30, 2015 and 2014

 

 

 

 

Results of Operations — Consolidated

42

 

 

 

Results of Operations — U.S. Cellular

44

 

 

 

Results of Operations — TDS Telecom

46

 

 

 

 

 

 

 

Recent Accounting Pronouncements

48

 

 

 

 

 

 

 

Liquidity and Capital Resources

49

 

 

 

 

 

 

Application of Critical Accounting Policies and Estimates

53

 

 

 

 

 

 

Safe Harbor Cautionary Statement

54

 

 

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

56

 

 

 

 

 

 

Item 4.

Controls and Procedures

56

 

 

 

 


Part I.  Financial Information

Item 1.  Financial Statements

Telephone and Data Systems, Inc.

Consolidated Statement of Operations

(Unaudited)

 

 

 

 

 

Three months ended

 

Six Months Ended

 

 

 

 

June 30,

 

June 30,

(Dollars and shares in thousands, except per share amounts)

2015

 

2014

 

2015

 

2014

Operating revenues

 

 

 

 

 

 

 

 

 

 

 

 

Service

$

1,070,650 

 

$

1,072,179 

 

$

2,143,741 

 

$

2,152,421 

 

Equipment and product sales

 

205,745 

 

 

164,213 

 

 

384,247 

 

 

279,933 

 

 

Total operating revenues

 

1,276,395 

 

 

1,236,392 

 

 

2,527,988 

 

 

2,432,354 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Cost of services (excluding Depreciation,

  amortization and accretion reported below)

 

300,152 

 

 

286,488 

 

 

593,799 

 

 

562,446 

 

Cost of equipment and products

 

298,450 

 

 

313,011 

 

 

570,431 

 

 

619,658 

 

Selling, general and administrative

 

435,430 

 

 

470,902 

 

 

873,470 

 

 

934,571 

 

Depreciation, amortization and accretion

 

211,104 

 

 

204,567 

 

 

417,679 

 

 

429,486 

 

(Gain) loss on asset disposals, net

 

4,752 

 

 

7,903 

 

 

10,129 

 

 

10,333 

 

(Gain) loss on sale of business and other exit costs, net

 

(5,589)

 

 

2,611 

 

 

(129,372)

 

 

(4,289)

 

(Gain) loss on license sales and exchanges, net

 

(25)

 

 

 

 

 

(122,898)

 

 

(91,446)

 

 

Total operating expenses

 

1,244,274 

 

 

1,285,482 

 

 

2,213,238 

 

 

2,460,759 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

32,121 

 

 

(49,090)

 

 

314,750 

 

 

(28,405)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment and other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of unconsolidated entities

 

35,412 

 

 

34,790 

 

 

70,053 

 

 

72,117 

 

Interest and dividend income

 

10,117 

 

 

2,751 

 

 

18,502 

 

 

5,237 

 

Interest expense

 

(33,919)

 

 

(27,898)

 

 

(67,749)

 

 

(56,605)

 

Other, net

 

202 

 

 

50 

 

 

198 

 

 

210 

 

 

Total investment and other income

 

11,812 

 

 

9,693 

 

 

21,004 

 

 

20,959 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

43,933 

 

 

(39,397)

 

 

335,754 

 

 

(7,446)

 

Income tax expense (benefit)

 

17,433 

 

 

(13,671)

 

 

133,453 

 

 

(2,014)

Net income (loss)

 

26,500 

 

 

(25,726)

 

 

202,301 

 

 

(5,432)

Less: Net income (loss) attributable to noncontrolling

  interests, net of tax

 

3,454 

 

 

(3,688)

 

 

33,515 

 

 

(1,648)

Net income (loss) attributable to TDS shareholders

 

23,046 

 

 

(22,038)

 

 

168,786 

 

 

(3,784)

TDS Preferred dividend requirement

 

(12)

 

 

(12)

 

 

(25)

 

 

(25)

Net income (loss) available to common shareholders

$

23,034 

 

$

(22,050)

 

$

168,761 

 

$

(3,809)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

108,484 

 

 

108,719 

 

 

108,327 

 

 

108,853 

Basic earnings (loss) per share attributable to TDS

  shareholders

$

0.21 

 

$

(0.20)

 

$

1.56 

 

$

(0.04)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average shares outstanding

 

109,785 

 

 

108,719 

 

 

109,380 

 

 

108,853 

Diluted earnings (loss) per share attributable to TDS

  shareholders

$

0.21 

 

$

(0.20)

 

$

1.53 

 

$

(0.04)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per share to TDS shareholders

$

0.141 

 

$

0.134 

 

$

0.282 

 

$

0.268 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these consolidated financial statements.


 

Telephone and Data Systems, Inc.

Consolidated Statement of Comprehensive Income

(Unaudited)

 

 

 

 

 

 

Three months ended

 

Six Months Ended

 

 

 

 

 

June 30,

 

June 30,

(Dollars in thousands)

2015

 

2014

 

2015

 

2014

Net income (loss)

$

26,500 

 

$

(25,726)

 

$

202,301 

 

$

(5,432)

Net change in accumulated other

 

 

 

 

 

 

 

 

 

 

 

 

comprehensive income (loss)

 

 

Change in net unrealized gain (loss) on equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

investments

 

(353)

 

 

341 

 

 

(353)

 

 

341 

 

 

Change in foreign currency translation adjustment

 

(39)

 

 

(17)

 

 

(3)

 

 

(21)

 

 

Change related to retirement plan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts included in net periodic benefit cost for

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

 

 

 

Amortization of prior service cost

 

(852)

 

 

(911)

 

 

(1,704)

 

 

(1,822)

 

 

 

 

Amortization of unrecognized net loss

 

64 

 

 

322 

 

 

129 

 

 

644 

 

 

 

 

 

 

(788)

 

 

(589)

 

 

(1,575)

 

 

(1,178)

 

 

 

Changes in deferred income taxes

 

298 

 

 

224 

 

 

609 

 

 

447 

 

 

Change related to retirement plan, net of tax

 

(490)

 

 

(365)

 

 

(966)

 

 

(731)

 

 

Net change in accumulated other comprehensive

 

(882)

 

 

(41)

 

 

(1,322)

 

 

(411)

 

 

income (loss)

Comprehensive income (loss)

 

25,618 

 

 

(25,767)

 

 

200,979 

 

 

(5,843)

 

 

Less: Comprehensive income (loss) attributable to

 

3,454 

 

 

(3,688)

 

 

33,515 

 

 

(1,648)

 

 

noncontrolling interest

Comprehensive income (loss) attributable to

$

22,164 

 

$

(22,079)

 

$

167,464 

 

$

(4,195)

 

TDS shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these consolidated financial statements.


Telephone and Data Systems, Inc.

Consolidated Statement of Cash Flows

(Unaudited)

 

 

 

 

Six Months Ended

 

 

 

 

June 30,

(Dollars in thousands)

2015

 

2014

Cash flows from operating activities

 

 

 

 

 

 

Net income (loss)

$

202,301 

 

$

(5,432)

 

Add (deduct) adjustments to reconcile net income (loss) to cash flows

 

 

 

 

 

 

  from operating activities

 

 

 

 

 

 

 

 

Depreciation, amortization and accretion

 

417,679 

 

 

429,486 

 

 

 

Bad debts expense

 

54,599 

 

 

52,098 

 

 

 

Stock-based compensation expense

 

17,949 

 

 

15,488 

 

 

 

Deferred income taxes, net

 

(40,640)

 

 

(33,346)

 

 

 

Equity in earnings of unconsolidated entities

 

(70,053)

 

 

(72,117)

 

 

 

Distributions from unconsolidated entities

 

27,226 

 

 

65,569 

 

 

 

(Gain) loss on asset disposals, net

 

10,129 

 

 

10,333 

 

 

 

(Gain) loss on sale of business and other exit costs, net

 

(129,372)

 

 

(4,289)

 

 

 

(Gain) loss on license sales and exchanges, net

 

(122,898)

 

 

(91,446)

 

 

 

Noncash interest expense

 

1,363 

 

 

1,014 

 

 

 

Other operating activities

 

(387)

 

 

3 

 

Changes in assets and liabilities from operations

 

 

 

 

 

 

 

 

Accounts receivable

 

(17,935)

 

 

67,136 

 

 

 

Equipment installment plans receivable

 

(65,124)

 

 

(47,971)

 

 

 

Inventory

 

127,021 

 

 

38,674 

 

 

 

Accounts payable

 

29,589 

 

 

(43,132)

 

 

 

Customer deposits and deferred revenues

 

(7,005)

 

 

13,139 

 

 

 

Accrued taxes

 

191,508 

 

 

1,049 

 

 

 

Accrued interest

 

361 

 

 

22 

 

 

 

Other assets and liabilities

 

(87,880)

 

 

(80,636)

 

 

 

 

 

538,431 

 

 

315,642 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

Cash used for additions to property, plant and equipment

 

(359,513)

 

 

(339,907)

 

Cash paid for acquisitions and licenses

 

(280,710)

 

 

(18,681)

 

Cash received from divestitures and exchanges

 

291,888 

 

 

125,905 

 

Cash received for investments

 

 

 

 

10,000 

 

Other investing activities

 

2,328 

 

 

3,720 

 

 

 

 

 

(346,007)

 

 

(218,963)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

Repayment of long-term debt

 

(434)

 

 

(589)

 

TDS Common Shares reissued for benefit plans, net of tax payments

 

9,831 

 

 

401 

 

U.S. Cellular Common Shares reissued for benefit plans, net of tax payments

 

(1,570)

 

 

830 

 

Repurchase of TDS Common Shares

 

 

 

 

(20,090)

 

Repurchase of U.S. Cellular Common Shares

 

(2,302)

 

 

(8,298)

 

Dividends paid to TDS shareholders

 

(30,530)

 

 

(29,107)

 

Payment of debt issuance costs

 

(3,080)

 

 

 

 

Distributions to noncontrolling interests

 

(5,872)

 

 

(482)

 

Other financing activities

 

1,181 

 

 

5,502 

 

 

 

 

 

(32,776)

 

 

(51,833)

 

 

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

159,648 

 

 

44,846 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

 

 

 

Beginning of period

 

471,901 

 

 

830,014 

 

End of period

$

631,549 

 

$

874,860 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 


 

Telephone and Data Systems, Inc.

Consolidated Balance Sheet — Assets

 (Unaudited)

  

 

 

June 30,

 

December 31,

(Dollars in thousands)

2015

 

2014

Current assets

 

 

 

 

 

 

Cash and cash equivalents

$

631,549 

 

$

471,901 

 

Accounts receivable

 

 

 

 

 

 

 

Due from customers and agents, less allowances of $43,485 and $41,431, respectively

 

588,085 

 

 

548,537 

 

 

Other, less allowances of $1,153 and $1,141, respectively

 

115,807 

 

 

135,144 

 

Inventory, net

 

146,686 

 

 

273,707 

 

Net deferred income tax asset

 

92,881 

 

 

107,686 

 

Prepaid expenses

 

102,975 

 

 

86,506 

 

Income taxes receivable

 

426 

 

 

113,708 

 

Other current assets

 

30,480 

 

 

29,766 

 

 

 

 

 

1,708,889 

 

 

1,766,955 

 

 

 

 

 

 

 

 

 

Assets held for sale

 

22,203 

 

 

103,343 

 

 

 

 

 

 

 

 

 

Investments

 

 

 

 

 

 

Licenses

 

1,837,792 

 

 

1,453,574 

 

Goodwill

 

771,119 

 

 

771,352 

 

Franchise rights

 

244,300 

 

 

244,300 

 

Other intangible assets, net of accumulated amortization of $139,086 and $133,823,

 

 

 

 

 

 

 

respectively

 

55,123 

 

 

64,499 

 

Investments in unconsolidated entities

 

364,205 

 

 

321,729 

 

Other investments

 

465 

 

 

508 

 

 

 

 

 

3,273,004 

 

 

2,855,962 

Property, plant and equipment

 

 

 

 

 

 

In service and under construction

 

11,203,446 

 

 

11,194,044 

 

Less: Accumulated depreciation

 

7,476,991 

 

 

7,347,919 

 

 

 

 

 

3,726,455 

 

 

3,846,125 

 

 

 

 

 

 

 

 

 

Other assets and deferred charges

 

255,761 

 

 

334,554 

 

 

 

 

 

 

 

 

 

Total assets

$

8,986,312 

 

$

8,906,939 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these consolidated financial statements.


 

Telephone and Data Systems, Inc.

Consolidated Balance Sheet — Liabilities and Equity

 (Unaudited)

  

 

June 30,

 

December 31,

(Dollars and shares in thousands)

2015

 

2014

Current liabilities

 

 

 

 

 

 

Current portion of long-term debt

$

747 

 

$

808 

 

Accounts payable

 

345,747 

 

 

387,125 

 

Customer deposits and deferred revenues

 

317,759 

 

 

324,318 

 

Accrued interest

 

8,276 

 

 

7,919 

 

Accrued taxes

 

121,144 

 

 

46,734 

 

Accrued compensation

 

92,994 

 

 

114,549 

 

Other current liabilities

 

134,516 

 

 

181,803 

 

 

 

 

 

1,021,183 

 

 

1,063,256 

 

 

 

 

 

 

 

 

 

Liabilities held for sale

 

 

 

 

21,643 

 

 

 

 

 

 

 

 

 

Deferred liabilities and credits

 

 

 

 

 

 

Net deferred income tax liability

 

885,462 

 

 

941,519 

 

Other deferred liabilities and credits

 

436,810 

 

 

430,774 

 

 

 

 

 

 

 

 

 

Long-term debt

 

1,993,429 

 

 

1,993,586 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interests with redemption features

 

1,178 

 

 

1,150 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

TDS shareholders’ equity

 

 

 

 

 

 

 

Series A Common and Common Shares

 

 

 

 

 

 

 

 

Authorized 290,000 shares (25,000 Series A Common and 265,000 Common Shares)

 

 

 

 

 

 

 

 

Issued 132,766 shares (7,196 Series A Common and 125,570 Common Shares) and 132,749 shares (7,179 Series A Common and 125,570 Common Shares), respectively

 

 

 

 

 

 

 

 

Outstanding 108,559 shares (7,196 Series A Common and 101,363 Common Shares) and 107,899 shares (7,179 Series A Common and 100,720 Common Shares), respectively

 

 

 

 

 

 

 

 

Par Value ($.01 per share) $1,327 ($72 Series A Common and $1,255 Common Shares)

 

1,327 

 

 

1,327 

 

 

Capital in excess of par value

 

2,342,587 

 

 

2,336,511 

 

 

Treasury shares at cost:

 

 

 

 

 

 

 

 

24,207 and 24,850 Common Shares, respectively

 

(735,218)

 

 

(748,199)

 

 

Accumulated other comprehensive income

 

5,130 

 

 

6,452 

 

 

Retained earnings

 

2,468,070 

 

 

2,330,187 

 

 

 

Total TDS shareholders' equity

 

4,081,896 

 

 

3,926,278 

 

 

 

 

 

 

 

 

 

 

Preferred shares

 

824 

 

 

824 

 

Noncontrolling interests

 

565,530 

 

 

527,909 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

4,648,250 

 

 

4,455,011 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

$

8,986,312 

 

$

8,906,939 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these consolidated financial statements.


 

Telephone and Data Systems, Inc.

Consolidated Statement of Changes in Equity

(Unaudited)

 

 

 

TDS Shareholders

 

 

 

 

 

 

 

 

 

 

Series A

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

Common and

 

Capital in

 

Treasury

 

Other

 

 

 

Total TDS

 

 

 

Non

 

 

 

Common

 

Excess of

 

Common

 

Comprehensive

 

Retained

 

Shareholders'

 

Preferred

 

controlling

 

Total

(Dollars in thousands)

Shares

 

Par Value

 

Shares

 

Income (Loss)

 

Earnings

 

Equity

 

Shares

 

Interests

 

Equity

December 31, 2014

$

1,327 

 

$

2,336,511 

 

$

(748,199)

 

$

6,452 

 

$

2,330,187 

 

$

3,926,278 

 

$

824 

 

$

527,909 

 

$

4,455,011 

Add (Deduct)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to

  TDS shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

168,786 

 

 

168,786 

 

 

 

 

 

 

 

 

168,786 

Net income attributable  

  to noncontrolling interests

  classified as equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27,847 

 

 

27,847 

Net unrealized gain

   (loss) on equity investments

 

 

 

 

 

 

 

 

 

 

(353)

 

 

 

 

 

(353)

 

 

 

 

 

 

 

 

(353)

Change in foreign currency

  translation adjustment

 

 

 

 

 

 

 

 

 

 

(3)

 

 

 

 

 

(3)

 

 

 

 

 

 

 

 

(3)

Change related to retirement 

  plan

 

 

 

 

 

 

 

 

 

 

(966)

 

 

 

 

 

(966)

 

 

 

 

 

 

 

 

(966)

TDS Common and Series A  

  Common Share dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

(30,505)

 

 

(30,505)

 

 

 

 

 

 

 

 

(30,505)

TDS Preferred dividend 

  requirement

 

 

 

 

 

 

 

 

 

 

 

 

 

(25)

 

 

(25)

 

 

 

 

 

 

 

 

(25)

Dividend reinvestment plan

 

 

 

 

1,612 

 

 

3,755 

 

 

 

 

 

 

 

 

5,367 

 

 

 

 

 

 

 

 

5,367 

Incentive and compensation

  plans

 

 

 

 

1,166 

 

 

9,226 

 

 

 

 

 

(373)

 

 

10,019 

 

 

 

 

 

 

 

 

10,019 

Adjust investment in

  subsidiaries for repurchases,

  issuances and other compensation

  plans

 

 

 

 

(2,830)

 

 

 

 

 

 

 

 

 

 

 

(2,830)

 

 

 

 

 

10,007 

 

 

7,177 

Stock-based compensation

  awards

 

 

 

 

6,262 

 

 

 

 

 

 

 

 

 

 

 

6,262 

 

 

 

 

 

 

 

 

6,262 

Tax windfall (shortfall) from

  stock awards

 

 

 

 

(134)

 

 

 

 

 

 

 

 

 

 

 

(134)

 

 

 

 

 

 

 

 

(134)

Distributions to

  noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(233)

 

 

(233)

June 30, 2015

$

1,327 

 

$

2,342,587