Filed Pursuant to Rule 424(b)(3)

Registration Nos.    033-08857-99

033-59435-99

333-125001

 

PROSPECTUS SUPPLEMENT

 

to

 

PROSPECTUS DATED MARCH 12, 2008

 

The attached Current Report on Form 8-K dated August 7, 2008 was filed by the registrant with the Securities and Exchange Commission, and should be read in conjunction with the Prospectus dated March 12, 2008.

 

The date of this Prospectus Supplement is August 7, 2008

 

 

 

FORM 8-K

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): August 7, 2008

 

TELEPHONE AND DATA SYSTEMS, INC.

(Exact name of registrant as specified in their charter)

 

 

 

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

 

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

Item 2.02.  Results of Operations and Financial Condition

 

On August 7, 2008, Telephone and Data Systems, Inc. (“TDS”) issued a news release announcing its results of operations for the period ended June 30, 2008.  A copy of the news release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.

 

  The information in this Item 2.02 of Form 8-K is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section.

 

Item 9.01.  Financial Statements and Exhibits

 

(d)      Exhibits:

 

In accordance with the provisions of Item 601 of Regulation S-K, any Exhibits filed or furnished herewith are set forth on the Exhibit Index attached hereto.

 

Attached as Exhibit 99.2 is a safe harbor cautionary statement under the Private Securities Litigation Reform Act of 1995.

 

2

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on their behalf by the undersigned, thereto duly authorized.

 

 

Telephone and Data Systems, Inc.
(Registrant)
Date: August 7, 2008
By:	/s/ Douglas D. Shuma
	Douglas D. Shuma
	Senior Vice President and Corporate Controller

 

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EXHIBIT INDEX

 

The following exhibits are filed or furnished herewith as noted below.

 

Exhibit
No.		Description
99.1		Earnings Press Release dated August 7, 2008
99.2		Private Securities Litigation Reform Act of 1995 Safe Harbor Cautionary Statement

 

4

Exhibit 99.1

 

30 North LaSalle Street

Suite 4000

Chicago, IL  60602

312/630-1900

 

 

Excellence in Communications Services

 

As previously announced, TDS^TM will hold a teleconference Aug. 7, 2008, at 10:00 a.m. Chicago time. Interested parties may listen to the call live via the Internet by accessing the Conference Calls page of www.teldta.com.

 

Contact:	Mark A. Steinkrauss, Vice President, Corporate Relations
	(312) 592-5384 mark.steinkrauss@teldta.com
	Julie D. Mathews, Manager, Investor Relations
	(312) 592-5341 julie.mathews@teldta.com

 

FOR RELEASE: IMMEDIATE

 

TDS REPORTS SECOND QUARTER RESULTS

 

Note: Comparisons are year over year unless otherwise noted.

 

2Q 2008 Highlights

 

Enterprise/TDS Corporate

 

·                  7 percent increase in operating revenues, to $1,274.4 million.

 

·                  3 percent decrease in operating income, to $149.7 million.

 

·                  Repurchased 1,015,650 TDS special common shares using $39.6 million of a $250 million stock repurchase program authorized in 2007 ($38.7 million remains).

 

Wireless/U.S. Cellular®

 

·                  9 percent increase in service revenues, to $987.4 million.

 

·                  45 percent increase in data revenues, to $123.7 million.

 

·                  5.7 percent increase in ARPU (average monthly revenue per unit), to $53.27.

 

·                  Retail postpay churn remained flat at 1.4 percent; postpay customers comprised 95 percent of retail customers.

 

Wireline/TDS Telecom

 

·                  7 percent increase in operating income, to $35.2 million, despite a 4 percent decrease in operating revenues.

 

·                  29 percent increase in ILEC DSL (digital subscriber line) customers, to 164,100; CLEC DSL customers totaled 42,500.

 

·                  24 percent increase in ILEC data revenue, to $21.7 million.

 

·                  Acquired Mosinee Telephone Company, LLC in May; 4,900 physical access lines in Wisconsin.

 

1

 

·                  ILEC equivalent access lines grew nearly 2 percent to 774,300; ILEC physical access lines declined to 577,000.

 

CHICAGO – Aug. 7, 2008 – Telephone and Data Systems, Inc. [AMEX:TDS, TDS.S] reported operating revenues of $1,274.4 million for the second quarter of 2008, an increase of seven percent from $1,192.8 million in the comparable period one year ago. The company recorded operating income of $149.7 million, down from $154 million in the second quarter of 2007. Net income available to common and diluted earnings per share were $87.7 million and $0.75, respectively, for the second quarter of 2008, compared to a net loss available to common and diluted loss per share of $8.6 million and $.08, respectively, in the comparable period one year ago.

 

“We continue to experience steady gains in service and data revenues and in average revenue per customer at our wireless business, U.S. Cellular®, and improved operating margins through cost controls at TDS Telecom, our wireline business,” said LeRoy T. Carlson, Jr., TDS president and CEO. “The company overall increased its year-over-year operating revenues, and at the corporate level we continued the share repurchase program begun in 2007.

 

“Both businesses have challenges, as well as opportunities. The market for wireless voice services continues to mature, and the wireline sector has ongoing competition from cable and wireless companies. Consumer anxieties related to the slow economy might also be having an impact. At U.S. Cellular, however, the low churn rate for retail postpay customers, together with continued increases in data revenues and sales of high-ARPU plans and smartphones, demonstrate that customers believe in U.S. Cellular’s commitment to excellent network quality, customer service, and product and service selection. As wireless voice penetration increases, customer loyalty and demand for data services are critical to ongoing wireless growth and profitability.

 

“TDS Telecom achieved double-digit increases in DSL customers and related revenues, and added equivalent access lines in its ILEC operation, although physical access lines continued to decline. The company also increased its operating income through effective cost controls, despite a decline in operating revenues.

 

“As part of its goal to be the preferred broadband provider in its markets, TDS Telecom continues to increase the broadband speeds offered to its residential and commercial customers, and to develop new broadband services. The company’s Triple Play bundles of voice, high-speed data, and Dish Network™ TV services enable it to compete effectively with cable offerings. In the second quarter, TDS Telecom exceeded sales targets for both Triple Play bundles and DISH Network services.”

 

Settlement of variable prepaid forward contracts

During the second quarter of 2008, the company settled all of its outstanding Deutsche Telekom (DT) forward contracts and disposed of its remaining DT shares. In the quarter, interest and dividend income decreased $130.3 million primarily due to a $118 million decrease in DT dividend income as a result of the disposition of DT shares prior to the 2008 dividend by DT.  Additionally, interest expense decreased $19.7 million due to the settlement of the variable prepaid forward contracts.  In the second quarter of 2007, the company recorded a $220.2 million loss related to its DT, Vodafone Group Plc and VeriSign marketable equity securities and related variable prepaid forward contracts.

 

2

 

Guidance

Guidance for the year ending Dec. 31, 2008 is as follows. There can be no assurance that final results will not differ materially from this guidance.

 

U.S. Cellular 2008 guidance as of Aug. 7, 2008 is as follows:

 

Net Retail Customer Additions		175,000 - 225,000
Service Revenues		$3.9 - 4.0 billion*
Operating Income		$385 - 435 million
Depreciation, Amortization & Accretion**		Approx. $615 million*
Capital Expenditures		$525 - 575 million

 

* Unchanged from guidance issued on May 7, 2008

** Includes losses on exchanges and disposals of assets

 

TDS Telecom (ILEC and CLEC) 2008 guidance as of Aug. 7, 2008 is as follows and remains unchanged from previous guidance issued on May 7, 2008:

 

Operating Revenues		$810 - 840 million
Operating Income		$110 - 140 million
Depreciation, Amortization & Accretion		Approx. $160 million
Capital Expenditures		$130 - 160 million

 

This guidance represents the views of management as of August 7, 2008 and should not be assumed to be accurate as of any other date. TDS undertakes no legal duty to update such information, whether as a result of new information, future events, or otherwise.

 

TDS special common share repurchase summary

In 2007, the TDS Board of Directors authorized the repurchase of up to $250 million in special common shares. As of June 30, 2008, $38.7 million remained under the authorization.

 

Repurchase Period		# Shares		Price (in millions)
2008 (second quarter)		1,015,650		$	39.6
2008 (first quarter)		1,041,016		$	45.1
2007 (full year)		2,076,979		$	126.7
Total		4,133,645		$	211.3

 

Conference call information

TDS will hold a conference call on August 7, 2008 at 10:00 a.m. Chicago time.

·                  Access the live call online at http://www.videonewswire.com/event.asp?id=50620 or on the Conference Calls page of www.teldta.com.

·                  Access the call by phone at 800/723-6498 (US/Canada) and use conference ID 6948709.

 

Before the call, certain financial and statistical information to be discussed during the call will be posted to the Conference Calls page of www.teldta.com, together with reconciliations to generally accepted accounting principles (GAAP) of any non-GAAP information to be disclosed. The call will be archived on the Conference Calls page of www.teldta.com.

 

About TDS

Telephone and Data Systems, Inc. (TDS), a Fortune 500® company, provides wireless, local and long-distance telephone, and broadband services to nearly 7.4 million customers in 36 states through its business units, U.S. Cellular (wireless) and TDS Telecom (wireline). Founded in 1969 and headquartered in Chicago, TDS employed 11,700 full-time equivalent employees as of June 30, 2008. For more information about TDS, visit www.teldta.com.

 

3

 

About U.S. Cellular®

United States Cellular Corporation, the nation’s sixth-largest, full-service wireless carrier, provides a comprehensive range of wireless products and services, excellent customer support, and a high-quality network to nearly 6.2 million customers in 26 states. The Chicago-based company employed 8,400 full-time equivalent associates as of June 30, 2008. For more information about U.S. Cellular, visit www.uscellular.com.

 

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company’s plans, beliefs, estimates, and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: The ability of U.S. Cellular to successfully manage and grow the operations of more recently launched markets; changes in the overall economy, competition, the access to and pricing of unbundled network elements, the state and federal telecommunications regulatory environment, and the value of assets and investments; adverse changes in the ratings afforded TDS and U.S. Cellular debt securities by accredited ratings organizations; industry consolidation; advances in telecommunications technology; uncertainty of access to the capital markets; risks and uncertainties relating to restatements and possible future restatements; ability to remediate the material weakness; pending and future litigation; changes in income tax rates, laws, regulations or rulings; acquisitions/divestitures of properties and/or licenses; and changes in customer growth rates, average monthly revenue per unit, churn rates, roaming revenue and terms, the availability of devices, or the mix of products and services offered by U.S. Cellular and TDS Telecom. Investors are encouraged to consider these and other risks and uncertainties that are discussed in the Form 8-K used by TDS to furnish this press release to the SEC, which are incorporated by reference herein.

 

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UNITED STATES CELLULAR CORPORATION

SUMMARY OPERATING DATA

 

Quarter Ended		6/30/2008			3/31/2008			12/31/2007			9/30/2007			6/30/2007
Total Population:
Consolidated markets (1)		82,875,000			82,846,000			82,371,000			81,841,000			81,581,000
Consolidated operating markets (1)		45,493,000			45,262,000			44,955,000			44,955,000			44,955,000
All customers:
Customer units (2)		6,194,000			6,175,000			6,102,000			6,058,000			6,010,000
Gross customer unit additions		365,000			409,000			436,000			447,000			418,000
Net customer unit additions		16,000			74,000			44,000			48,000			37,000
Market penetration at end of period:
Consolidated markets (3)		7.5		%	7.5		%	7.4		%	7.4		%	7.4		%
Consolidated operating markets (3)		13.6		%	13.6		%	13.6		%	13.5		%	13.4		%
Retail customers:
Customer units (2)		5,677,000			5,640,000			5,564,000			5,500,000			5,448,000
Gross customer unit additions		318,000			360,000			367,000			374,000			347,000
Net customer unit additions		34,000			85,000			64,000			52,000			71,000
Cell sites in service		6,596			6,452			6,383			6,255			6,140
Average monthly revenue per unit (4)		$	53.27		$	52.24		$	52.57		$	52.73		$	50.42
Retail service revenue per unit (4)		$	45.62		$	45.30		$	45.45		$	45.02		$	43.87
Inbound roaming revenue per unit (4)		$	3.40		$	2.94		$	3.09		$	3.36		$	2.68
Long-distance/other revenue per unit (4)		$	4.25		$	4.00		$	4.03		$	4.35		$	3.87
Minutes of use (MOU) (5)		1,012			951			908			888			858
Retail postpay churn rate per month (6)		1.4		%	1.4		%	1.5		%	1.6		%	1.4		%
Construction Expenditures (000s)		$	137,800		$	111,700		$	188,100		$	130,600		$	137,100

 

(1)		“Total population of consolidated markets” and “Total population of consolidated operating markets” are used only for the purposes of calculating market penetration of consolidated markets and consolidated operating markets, respectively, which is calculated by dividing customers by the total market population (without duplication of population in overlapping markets).
(2)		All customer units and Retail customer units as of June 30, 2008 include one time adjustments, resulting from a review of U.S. Cellular’s customer reporting procedures.
(3)		Calculated by dividing the number of wireless customers at the end of the period by the total population of consolidated markets and consolidated operating markets, respectively, as estimated by Claritas.
(4)		Per unit revenue measurements are derived from Service Revenues as reported in Financial Highlights for each respective quarter as follows:

 

Service Revenues per Financial Highlights		$	987,352		$	962,094		$	957,896		$	954,540		$	906,218
Components:
Retail service revenue during quarter		845,564			834,213			828,169			814,948			788,535
Inbound roaming revenue during quarter		63,033			54,089			56,358			60,843			48,084
Long-distance/other revenue during quarter		78,755			73,792			73,369			78,749			69,599
Divided by average customers during quarter (000s)		6,178			6,139			6,074			6,034			5,991
Divided by three months in each quarter		3			3			3			3			3
Average monthly revenue per unit		$	53.27		$	52.24		$	52.57		$	52.73		$	50.42
Retail service revenue per unit		$	45.62		$	45.30		$	45.45		$	45.02		$	43.87
Inbound roaming revenue per unit		$	3.40		$	2.94		$	3.09		$	3.36		$	2.68
Long-distance/other revenue per unit		$	4.25		$	4.00		$	4.03		$	4.35		$	3.87

 

(5)		Average monthly local minutes of use per customer (without roaming).
(6)		Retail postpay churn rate per month is calculated by dividing the total monthly retail postpay customer disconnects during the quarter by the average retail postpay customer base for the quarter.

 

5

 

TELEPHONE AND DATA SYSTEMS, INC.

SUMMARY OPERATING DATA

 

Quarter Ended		6/30/2008			3/31/2008			12/31/2007			9/30/2007			6/30/2007
TDS Telecom
ILEC:
Access line equivalents(1)		774,300			767,100			762,700			763,000			761,200
Access lines		577,000			579,200			585,600			595,100			601,600
Digital Subscriber Lines (DSL) customers		164,100			154,800			143,500			135,500			127,400
Long Distance customers		346,100			344,900			345,200			346,400			346,500
Construction Expenditures (000s)		$	22,800		$	14,600		$	41,300		$	23,500		$	30,900
CLEC:
Access line equivalents (1)		417,200			426,700			435,000			443,700			448,400
Percent of access lines on-switch		94.4		%	94.3		%	94.0		%	93.9		%	93.7		%
Digital Subscriber Lines (DSL) customers		42,500			43,100			43,300			43,600			43,800
Construction Expenditures (000s)		$	4,700		$	3,500		$	5,700		$	3,400		$	4,800

 

(1)

Equivalent access lines are the sum of physical access lines and high-capacity data lines adjusted to estimate the equivalent number of physical access lines in terms of capacity.  A physical access line is the individual circuit connecting a customer to a telephone company’s central office facilities.

 

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TELEPHONE AND DATA SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS HIGHLIGHTS

Three Months Ended June 30,

(Unaudited, dollars and shares in thousands, except per share amounts)

 

								Increase (Decrease)
		2008			2007			Amount			Percent
Operating Revenues
U.S. Cellular		$	1,060,592		$	971,646		$	88,946		9.2	%
TDS Telecom		207,424			216,301			(8,877		)	(4.1	)%
All Other(1)		6,335			4,887			1,448			29.6	%
		1,274,351			1,192,834			81,517			6.8	%
Operating Expenses
U.S. Cellular
Expenses excluding depreciation, amortization and accretion		791,213			699,318			91,895			13.1	%
Depreciation, amortization and accretion		145,258			146,024			(766		)	(0.5	)%
(Gain) Loss on asset disposals, net		6,219			2,832			3,387			N/M
		942,690			848,174			94,516			11.1	%
TDS Telecom
Expenses excluding depreciation, amortization and accretion		132,911			144,805			(11,894		)	(8.2	)%
Depreciation, amortization and accretion		39,071			38,444			627			1.6	%
(Gain) Loss on asset disposals, net		219			—			219			N/M
		172,201			183,249			(11,048		)	(6.0	)%
All Other (1)
Expenses excluding depreciation and amortization		6,020			4,227			1,793			42.4	%
Depreciation and amortization		3,697			3,229			468			14.5	%
		9,717			7,456			2,261			30.3	%
Total Operating Expenses		1,124,608			1,038,879			85,729			8.3	%
Operating Income (Loss)
U.S. Cellular		117,902			123,472			(5,570		)	(4.5	)%
TDS Telecom		35,223			33,052			2,171			6.6	%
All Other (1)		(3,382		)	(2,569		)	(813		)	(31.6	)%
		149,743			153,955			(4,212		)	(2.7	)%
Investment and Other Income (Expense)
Equity in earnings of unconsolidated entities		22,909			23,875			(966		)	(4.0	)%
Interest and dividend income		17,455			147,768			(130,313		)	(88.2	)%
Gain (loss) on investments and financial instruments		3,088			(220,199		)	223,287			N/M
Interest expense		(35,570		)	(55,245		)	19,675			35.6	%
Other, net		1,902			(1,868		)	3,770			N/M
		9,784			(105,669		)	115,453			N/M
Income Before Income Taxes and Minority Interest		159,527			48,286			111,241			N/M
Income tax expense		53,261			26,700			26,561			99.5	%
Income Before Minority Interest		106,266			21,586			84,680			N/M
Minority share of income		(18,509		)	(30,213		)	11,704			38.7	%
Net Income (Loss)		87,757			(8,627		)	96,384			N/M
Preferred dividend requirement		(13		)	(13		)	—			0.0	%
Net Income (Loss) Available to Common		$	87,744		$	(8,640	)	$	96,384		N/M
Basic Weighted Average Common Shares Outstanding		116,267			117,031			(764		)	(0.7	)%
Basic Earnings (Loss) Per Share		$	0.75		$	(0.07	)	$	0.82		N/M
Diluted Weighted Average Common Shares Outstanding		116,814			117,031			(217		)	(0.2	)%
Diluted Earnings (Loss) Per Share		$	0.75		$	(0.08	)	$	0.83		N/M

 

(1) Consists of Suttle Straus printing and distribution operations and intercompany eliminations.

N/M - Percentage change not meaningful

 

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TELEPHONE AND DATA SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS HIGHLIGHTS

Six Months Ended June 30,

(Unaudited, dollars and shares in thousands, except per share amounts)

 

								Increase/ (Decrease)
		2008			2007			Amount			Percent
Operating Revenues
U.S. Cellular		$	2,098,448		$	1,906,320		$	192,128		10.1	%
TDS Telecom		413,500			433,923			(20,423		)	(4.7	)%
All Other(1)		11,504			9,148			2,356			25.8	%
		2,523,452			2,349,391			174,061			7.4	%
Operating Expenses
U.S. Cellular
Expenses excluding depreciation, amortization and accretion		1,563,900			1,376,212			187,688			13.6	%
Depreciation, amortization and accretion		287,788			291,976			(4,188		)	(1.4	)%
Loss on asset disposals, net		9,892			6,137			3,755			61.2	%
		1,861,580			1,674,325			187,255			11.2	%
TDS Telecom
Expenses excluding depreciation, amortization and accretion		261,717			285,001			(23,284		)	(8.2	)%
Depreciation, amortization and accretion		78,579			78,349			230			0.3	%
(Gain) on asset disposals, net		198			—			198			N/M
		340,494			363,350			(22,856		)	(6.3	)%
All Other(1)
Expenses excluding depreciation and amortization		10,209			9,588			621			6.5	%
Depreciation and amortization		7,817			5,376			2,441			45.4	%
		18,026			14,964			3,062			20.5	%
Total Operating Expenses		2,220,100			2,052,639			167,461			8.2	%
Operating Income (Loss)
U.S. Cellular		236,868			231,995			4,873			2.1	%
TDS Telecom		73,006			70,573			2,433			3.4	%
All Other (1)		(6,522		)	(5,816		)	(706		)	(12.1	)%
		303,352			296,752			6,600			2.2	%
Investment and Other Income (Expense)
Equity in earnings of unconsolidated entities		44,379			47,571			(3,192		)	(6.7	)%
Interest and dividend income		27,201			163,964			(136,763		)	(83.4	)%
Gain (loss) on investments and financial instruments		(402		)	35,671			(36,073		)	N/M
Interest expense		(76,950		)	(113,046		)	36,096			31.9	%
Other, net		1,703			(4,092		)	5,795			N/M
		(4,069		)	130,068			(134,137		)	N/M
Income Before Income Taxes and Minority Interest		299,283			426,820			(127,537		)	(29.9	)%
Income tax expense		102,512			167,938			(65,426		)	(39.0	)%
Income Before Minority Interest		196,771			258,882			(62,111		)	(24.0	)%
Minority share of income		(35,527		)	(48,184		)	12,657			26.3	%
Net Income		161,244			210,698			(49,454		)	(23.5	)%
Preferred dividend requirement		(26		)	(26		)	—			0.0	%
Net Income Available to Common		$	161,218		$	210,672		$	(49,454	)	(23.5	)%
Basic Weighted Average Common Shares Outstanding		116,919			116,935			(16		)	(0.0	)%
Basic Earnings Per Share		$	1.38		$	1.80		$	(0.42	)	(23.3	)%
Diluted Weighted Average Common Shares Outstanding		117,500			118,432			(932		)	(0.8	)%
Diluted Earnings Per Share		$	1.37		$	1.76		$	(0.39	)	(22.2	)%

 

(1) Consists of Suttle Straus printing and distribution operations and intercompany eliminations.

N/M - Percentage change not meaningful

 

8

 

TELEPHONE AND DATA SYSTEMS, INC.

CONSOLIDATED BALANCE SHEET HIGHLIGHTS

(Unaudited, dollars in thousands)

 

ASSETS

 

		June 30,			December 31,
		2008			2007
Current Assets
Cash and cash equivalents		$	1,125,163		$	1,174,446
Marketable equity securities		32,020			1,917,893
Accounts receivable from customers and other		542,664			530,421
Inventory		126,083			115,818
Other current assets		144,569			137,010
		1,970,499			3,875,588
Investments
Licenses		1,829,014			1,516,629
Goodwill		695,696			679,129
Customer lists		29,069			25,851
Investments in unconsolidated entities		209,053			206,418
Other investments		11,032			11,509
		2,773,864			2,439,536
Property, Plant and Equipment, net
U.S. Cellular		2,566,940			2,595,096
TDS Telecom		888,521			900,267
Other		29,752			29,739
		3,485,213			3,525,102
Other Assets and Deferred Charges		51,910			53,917
Total Assets		$	8,281,486		$	9,894,143

 

9

 

TELEPHONE AND DATA SYSTEMS, INC.

CONSOLIDATED BALANCE SHEET HIGHLIGHTS

(Unaudited, dollars in thousands)

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

		June 30,			December 31,
		2008			2007
Current Liabilities
Notes payable		$	50,000		$	—
Prepaid forward contracts		—			1,005,512
Current portion of long-term debt		4,390			3,860
Derivative liability		—			711,692
Accounts payable		307,572			308,882
Customer deposits and deferred revenues		176,574			166,191
Accrued interest		14,676			18,456
Accrued taxes		310,861			40,439
Accrued compensation		61,840			91,703
Net deferred income tax liability		—			327,162
Other current liabilities		122,877			125,622
		1,048,790			2,799,519
Deferred Liabilities and Credits
Net deferred income tax liability		595,420			555,593
Asset retirement obligation		182,495			173,468
Other deferred liabilities and credits		149,726			154,602
		927,641			883,663
Long-Term Debt		1,635,147			1,632,226
Minority Interest in Subsidiaries		679,938			651,537
Preferred Shares		860			860
Common Stockholders’ Equity
Common Shares, $.01 par value		566			566
Special Common Shares, $.01 par value		630			629
Series A Common Shares, $.01 par value		65			64
Capital in excess of par value		2,055,677			2,048,110
Treasury Shares, at cost
Common Shares		(118,506		)	(120,544		)
Special Common Shares		(283,682		)	(204,914		)
Accumulated other comprehensive income		9,546			511,776
Retained earnings		2,324,814			1,690,651
		3,989,110			3,926,338
Total Liabilities and Stockholders’ Equity		$	8,281,486		$	9,894,143

 

10