tds10q1.htm - Generated by SEC Publisher for SEC Filing  

 



 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

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

                                                                                              

For the quarterly period ended June 30, 2012

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 or incorporation of organization)

(I.R.S. Employer Identification No.) 

 

 

30 North LaSalle Street, Chicago, Illinois 60602

(Address of principal executive offices) (Zip Code)

 

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

 

Indicate by check mark 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.  Yes x   No ¨ 

 

Indicate by check mark 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).  Yes x   No ¨ 

 

Indicate by check mark 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 ¨ 

(Do not check if a smaller reporting company)

 

Smaller reporting company ¨ 

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ¨   No 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, 2012

 

Common Shares, $.01 par value

 

101,495,552 Shares

 

Series A Common Shares, $.01 par value

 

7,135,334 Shares

 

 




 
 

Table of contents

Telephone and Data Systems, Inc.

 

Quarterly Report on Form 10-Q

For the Quarterly Period Ended June 30, 2012

 

Index

 

Page No.

Part I.

Financial Information

 

 

 

 

Item 1.

Financial Statements (Unaudited)

 

 

 

 

 

Consolidated Statement of Operations

 

 

 

 

Three and Six Months Ended June 30, 2012 and 2011

3

 

 

 

 

Consolidated Statement of Comprehensive Income

 

 

 

 

Three and Six Months Ended June 30, 2012 and 2011

4

 

 

 

 

Consolidated Statement of Cash Flows

 

 

 

 

Six Months Ended June 30, 2012 and 2011

5

 

 

 

 

Consolidated Balance Sheet

 

 

 

 

June 30, 2012 and December 31, 2011

6

 

 

 

 

Consolidated Statement of Changes in Equity

 

 

 

 

Six Months Ended June 30, 2012 and 2011

8

 

 

 

 

Notes to Consolidated Financial Statements

10

 

 

 

Item 2.

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

26

 

 

 

 

Overview

26

 

 

Six Months Ended June 30, 2012 and 2011

32

 

 

 

Results of Operations — Consolidated

32

 

 

 

Results of Operations — U.S. Cellular

34

 

 

 

Results of Operations — TDS Telecom

39

 

 

Three Months Ended June 30, 2012 and 2011

44

 

 

 

Results of Operations — Consolidated

44

 

 

 

Results of Operations — U.S. Cellular

45

 

 

 

Results of Operations — TDS Telecom

47

 

 

Recent Accounting Pronouncements

51

 

 

Financial Resources

51

 

 

Liquidity and Capital Resources

54

 

 

Application of Critical Accounting Policies and Estimates

58

 

 

Safe Harbor Cautionary Statement

62

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk 

65

 

 

 

Item 4.

Controls and Procedures

66

 

 

Part II.

Other Information

67

 

 

 

Item 1.

Legal Proceedings

67

 

 

 

Item 1A.

Risk Factors

67

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

67

 

 

 

Item 5.

Other Information

68

 

 

 

Item 6.

Exhibits

68

 

 

Signatures

 

69


 
 

Table of contents

 

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)

2012

 

2011

 

2012

 

2011

 

 

 

 

  

  

  

  

  

 

  

  

  

 

  

 

Operating revenues

$

1,323,169

 

 

$

1,279,640

 

 

$

2,628,960

 

 

$

2,538,321

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

Cost of services and products (excluding Depreciation, amortization and accretion expense reported below)

 

527,670

 

 

 

476,118

 

 

 

1,036,881

 

 

965,159

 

 

Selling, general and administrative

 

502,404

 

 

 

479,884

 

 

 

1,010,003

 

 

 

968,695

 

 

Depreciation, amortization and accretion

 

198,509

 

 

 

193,045

 

 

 

395,943

 

 

 

383,858

 

 

Loss on impairment of intangible assets

 

515

 

 

 

— 

 

 

 

515

 

 

 

— 

 

 

Loss on asset disposals, net

 

2,995

 

 

 

3,238

 

 

 

900

 

 

 

4,381

 

 

 

Total operating expenses

 

1,232,093

 

 

 

1,152,285

 

 

 

2,444,242

 

 

 

2,322,093

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

91,076

 

 

 

127,355

 

 

 

184,718

 

 

 

216,228

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment and other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of unconsolidated entities

 

25,392

 

 

 

22,590

 

 

 

48,781

 

 

 

41,978

 

 

Interest and dividend income

 

2,352

 

 

 

2,093

 

 

 

4,535

 

 

 

4,717

 

 

Gain (loss) on investment

 

(3,728

)

 

 

13,373

 

 

 

(3,728

)

 

 

13,373

 

 

Interest expense

 

(23,139

)

 

 

(45,417

)

 

 

(47,603

)

 

 

(71,926

)

 

Other, net

 

(249

)

 

 

1,306

 

 

 

(21

)

 

 

1,386

 

 

 

Total investment and other income (expense)

 

628

 

 

 

(6,055

)

 

 

1,964

 

 

 

(10,472

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

91,704

 

 

 

121,300

 

 

 

186,682

 

 

 

205,756

 

 

Income tax expense

 

35,765

 

 

 

11,560

 

 

 

63,177

 

 

 

41,719

 

Net income

 

55,939

 

 

 

109,740

 

 

 

123,505

 

 

 

164,037

 

Less: Net income attributable to noncontrolling interests, net of tax

 

(13,602

)

 

 

(17,786

)

 

 

(28,914

)

 

 

(28,579

)

Net income attributable to TDS shareholders

 

42,337

 

 

 

91,954

 

 

 

94,591

 

 

 

135,458

 

Preferred dividend requirement

 

(12

)

 

 

(12

)

 

 

(25

)

 

 

(25

)

Net income available to common shareholders

$

42,325

 

 

$

91,942

 

 

$

94,566

 

 

$

135,433

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding (1)

 

108,732

 

 

 

108,423

 

 

 

108,693

 

 

 

108,678

 

Basic earnings per share attributable to TDS shareholders (1)

$

0.39

 

 

$

0.85

 

 

$

0.87

 

 

$

1.25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average shares outstanding (1)

 

109,022

 

 

 

109,133

 

 

 

108,964

 

 

 

109,385

 

Diluted earnings per share attributable to TDS shareholders (1)

$

0.39

 

 

$

0.84

 

 

$

0.86

 

 

$

1.23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per share (2)

$

0.1225

 

 

$

0.1175

 

 

$

0.2450

 

  

$

0.2350

 

 


(1)           On January 13, 2012, TDS shareholders approved a Share Consolidation Amendment to the Restated Certificate of Incorporation of TDS. Average basic and diluted shares outstanding used to calculate earnings per share for the comparative periods presented have been retroactively restated to reflect the impact of the increased shares outstanding as a result of the Share Consolidation Amendment.

 

(2)           Dividends per share reflects the amount paid per share outstanding at the date the dividend was declared and has not been retroactively adjusted to reflect the impact of the Share Consolidation Amendment.

 

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

 

3

 


 
 

Table of contents

 

Telephone and Data Systems, Inc.

 

Consolidated Statement of Comprehensive Income

(Unaudited)

 

 

Three Months Ended

  

Six Months Ended

 

June 30,

 

June 30,

(Dollars in thousands)

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

55,939

 

 

$

109,740

 

 

$

123,505

 

 

$

164,037

 

Net change in accumulated other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in net unrealized gain (loss) on equity investments

 

49

 

 

 

138

 

 

 

49

 

 

 

138

 

 

Change related to retirement plan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts included in net periodic benefit cost for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of prior service cost

 

(934

)

 

 

(954

)

 

 

(1,868

)

 

 

(1,908

)

 

 

 

Amortization of unrecognized net loss

 

623

 

 

 

480

 

 

 

1,246

 

 

 

960

 

 

 

(311

)

 

 

(474

)

 

 

(622

)

 

 

(948

)

 

 

 

Change in deferred income taxes

 

463

 

 

 

523

 

 

 

933

 

 

 

1,046

 

 

 

Change related to retirement plan, net of tax

 

152

 

 

 

49

 

 

 

311

 

 

 

98

 

 

Net change in accumulated other comprehensive income

 

201

 

 

 

187

 

 

 

360

 

 

 

236

 

Comprehensive income

 

56,140

 

 

 

109,927

 

 

 

123,865

 

 

 

164,273

 

 

Less: Comprehensive income attributable to noncontrolling interest

 

(13,602

)

 

 

(17,786

)

 

 

(28,914

)

 

 

(28,579

)

Comprehensive income attributable to TDS Shareholders

$

42,538

 

 

$

92,141

 

 

$

94,951

 

 

$

135,694

 

 

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

 

4

 


 
 

Table of contents

Telephone and Data Systems, Inc.

 

Consolidated Statement of Cash Flows

(Unaudited)

 

 

Six Months Ended

 

June 30,

(Dollars in thousands)

2012

 

2011

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net income

$

123,505

 

 

$

164,037

 

 

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

 

 

 

 

 

 

 

 

 

from operating activities

 

 

 

 

 

 

 

 

 

 

Depreciation, amortization and accretion

 

395,943

 

 

 

383,858

 

 

 

 

Bad debts expense

 

33,626

 

 

 

29,906

 

 

 

 

Stock-based compensation expense

 

20,955

 

 

 

18,913

 

 

 

 

Deferred income taxes, net

 

29,929

 

 

 

79,637

 

 

 

 

Equity in earnings of unconsolidated entities

 

(48,781

)

 

 

(41,978

)

 

 

 

Distributions from unconsolidated entities

 

6,973

 

 

 

47,375

 

 

 

 

Loss on impairment of intangible assets

 

515

 

 

 

 

 

 

 

Loss on asset disposals, net

 

900

 

 

 

4,381

 

 

 

 

(Gain) loss on investment

 

3,728

 

 

 

(13,373

)

 

 

 

Noncash interest expense

 

1,728

 

 

 

17,147

 

 

 

 

Other operating activities

 

1,010

 

 

 

1,070

 

 

Changes in assets and liabilities from operations

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

(10,197

)

 

 

(37,819

)

 

 

 

Inventory

 

(58,467

)

 

 

(48,826

)

 

 

 

Accounts payable

 

(23,336

)

 

 

24,678

 

 

 

 

Customer deposits and deferred revenues

 

22,786

 

 

 

22,600

 

 

 

 

Accrued taxes

 

89,433

 

 

 

(459

)

 

 

 

Accrued interest

 

(1,823

)

 

 

1,355

 

 

 

 

Other assets and liabilities

 

(81,517

)

 

 

(90,291

)

 

 

506,910

 

 

 

562,211

 

  

Cash flows from investing activities

 

 

 

 

 

 

 

 

Cash used for additions to property, plant and equipment

 

(501,211

)

 

 

(350,856

)

 

Cash paid for acquisitions and licenses

 

(52,213

)

 

 

(22,167

)

 

Cash received from divestitures

 

50,036

 

 

 

— 

 

 

Cash paid for investments

 

(45,000

)

 

 

(71,000

)

 

Cash received for investments

 

128,444

 

 

 

213,030

 

 

Other investing activities

 

(8,916

)

 

 

(816

)

 

 

(428,860

)

 

 

(231,809

)

  

Cash flows from financing activities

 

 

 

 

 

 

 

 

Repayment of long-term debt

 

(952

)

 

 

(613,387

)

 

Issuance of long-term debt

 

358

 

 

 

643,700

 

 

TDS Common Shares and Special Common Shares reissued

 

 

 

 

 

 

 

 

 

for benefit plans, net of tax payments

 

(39

)

 

 

1,055

 

 

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

 

(2,465

)

 

 

1,264

 

 

Repurchase of TDS Common and Special Common Shares

 

— 

 

 

 

(21,500

)

 

Repurchase of U.S. Cellular Common Shares

 

— 

 

 

 

(62,308

)

 

Dividends paid

 

(26,610

)

 

 

(24,343

)

 

Payment of debt issuance costs

 

— 

 

 

 

(21,191

)

 

Distributions to noncontrolling interests

 

(643

)

 

 

(1,377

)

 

Other financing activities

 

2,790

 

 

 

2,077

 

 

 

(27,561

)

 

 

(96,010

)

 

 

Cash classified as held for sale

 

— 

 

 

 

(5,687

)

 

Net increase in cash and cash equivalents

 

50,489

 

 

 

228,705

 

 

Cash and cash equivalents

 

 

 

 

 

 

 

 

Beginning of period

 

563,275

 

 

 

341,683

 

 

End of period

$

613,764

 

 

$

570,388

 

 

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

 

5


 
 

Table of contents

 

Telephone and Data Systems, Inc.

  

Consolidated Balance Sheet — Assets

(Unaudited)

 

 

June 30,

 

December 31,

(Dollars in thousands)

2012

 

2011

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

$

613,764

 

$

563,275

 

Short-term investments

 

150,921

 

 

246,273

 

Accounts receivable

 

 

 

 

 

 

Due from customers and agents, less allowances of $25,195 and $25,738, respectively

 

380,629

 

 

393,978

 

 

Other, less allowances of $6,186 and $5,333, respectively

 

161,527

 

 

148,599

 

Inventory

 

189,242

 

 

130,044

 

Net deferred income tax asset

 

44,598

 

 

40,898

 

Prepaid expenses

 

86,794

 

 

80,628

 

Income taxes receivable

 

9,376

 

 

85,636

 

Other current assets

 

19,224

 

 

16,349

 

 

1,656,075

 

 

1,705,680

   

Assets held for sale

 

 

 

49,647

 

Investments

 

 

 

 

 

Licenses

 

1,507,447

 

 

1,494,014

 

Goodwill

 

816,668

 

 

797,077

 

Other intangible assets, net of accumulated amortization of $136,851 and $131,101, respectively

 

65,285

 

 

50,734

 

Investments in unconsolidated entities

 

213,049

 

 

173,710

 

Long-term investments

 

55,468

 

 

45,138

 

Other investments

 

1,017

 

 

3,072

 

 

2,658,934

 

 

2,563,745

Property, plant and equipment

 

 

 

 

 

In service and under construction

 

10,482,936

 

 

10,197,596

 

Less: Accumulated depreciation

 

6,629,649

 

 

6,413,061

 

 

3,853,287

 

 

3,784,535

 

Other assets and deferred charges

 

115,435

 

 

97,398

 

Total assets

$

8,283,731

 

$

8,201,005

 

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

 

6

 


 
 

Table of contents

 

Telephone and Data Systems, Inc.

 

Consolidated Balance Sheet — Liabilities and Equity

(Unaudited)

 

 

June 30,

 

December 31,

(Dollars and shares in thousands)

2012

2011

 

 

Current liabilities

 

Current portion of long-term debt

$

1,283

 

 

$

1,509

 

 

Accounts payable

 

310,610

 

 

 

364,746

 

 

Customer deposits and deferred revenues

 

231,743

 

 

 

207,633

 

 

Accrued interest

 

5,522

 

 

 

7,456

 

 

Accrued taxes

 

53,698

 

 

 

41,069

 

 

Accrued compensation

 

83,080

 

 

 

107,719

 

 

Other current liabilities

 

105,640

 

 

 

144,001

 

 

 

791,576

 

 

 

874,133

 

 

Liabilities held for sale

 

 

 

 

1,051

 

 

Deferred liabilities and credits

 

Net deferred income tax liability

 

847,725

 

 

 

808,713

 

 

Other deferred liabilities and credits

 

391,898

 

 

 

383,567

 

 

Long-term debt

 

1,529,836

 

 

 

1,529,857

 

 

Commitments and contingencies

 

— 

 

 

 

— 

 

 

 

 

 

 

 

Noncontrolling interests with redemption features

 

1,050

 

 

 

1,005

 

 

Equity

 

 

 

 

 

 

 

 

TDS shareholders’ equity

 

 

 

 

 

 

 

 

 

Series A Common and Common Shares (1)

 

 

 

 

 

 

 

 

 

 

Authorized 290,000 shares (25,000 Series A Common and 265,000 Common Shares) (1)

 

 

 

 

 

 

 

 

 

 

Issued 132,647 shares (7,135 Series A Common and 125,512 Common Shares) and 132,621 shares (7,119 Series A Common and 125,502 Common Shares), respectively (1)

 

  

 

 

 

  

 

 

 

 

Outstanding 108,631 shares (7,135 Series A Common and 101,496 Common Shares) and 108,456 shares (7,119 Series A Common and 101,337 Common Shares), respectively (1)

 

 

 

 

 

 

 

 

 

 

Par Value ($.01 per share) ($71 Series A Common and $1,255 Common Shares) (1)

 

1,326

 

 

 

1,326

 

 

 

Capital in excess of par value (1)

 

2,280,802

 

 

 

2,268,711

 

 

 

Treasury shares at cost:

 

 

 

 

 

 

 

 

 

 

24,017 and 24,165 Common Shares, respectively (1)

 

(742,906

)

 

 

(750,921

)

 

 

Accumulated other comprehensive loss

 

(8,494

)

 

 

(8,854

)

 

 

Retained earnings (1)

 

2,514,327

 

 

 

2,451,899

 

 

 

 

Total TDS shareholders’ equity

 

4,045,055

 

 

 

3,962,161

 

 

 

Preferred shares

 

830

 

 

 

830

 

 

Noncontrolling interests

 

675,761

 

 

 

639,688

 

 

 

 

Total equity

 

4,721,646

 

 

 

4,602,679

 

 
             

Total liabilities and equity

$

8,283,731

 

 

$

8,201,005

 

 


(1)         The December 31, 2011 amounts reflect the impact of the Share Consolidation Amendment to the Restated Certificate of Incorporation of TDS, as approved by the TDS shareholders on January 13, 2012.

 

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

 

7

 


 
 

Table of contents

 

Telephone and Data Systems, Inc.

Consolidated Statement of Changes in Equity

(Unaudited)

 

 

TDS Shareholders

 

(Dollars in thousands)

Series A Common and Common Shares (1)

 

Capital in

Excess of

Par Value (1)

 

Treasury Common Shares(1)

 

Accumulated

Other

Comprehensive

Income (Loss)

 

Retained

Earnings (1)

 

Total TDS

Shareholders’

Equity (1)

 

 

Preferred Shares

 

Non

controlling Interests

 

Total Equity (1)

December 31, 2011

$

1,326

 

$

2,268,711

 

 

$

(750,921

)

 

$

(8,854

)

 

$

2,451,899

 

 

$

3,962,161

 

 

$

830

 

$

639,688

 

 

$

4,602,679

 

Add (Deduct)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to TDS shareholders

 

 

 

 

 

 

 

 

 

 

 

 

94,591

 

 

 

94,591

 

 

 

 

 

 

 

 

94,591

 

Net income attributable to noncontrolling interests classified as equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

28,869

 

 

 

28,869

 

Change in net unrealized gain  (loss) on equity investments

 

 

 

 

 

 

 

 

 

49

 

 

 

 

 

 

49

 

 

 

 

 

 

 

 

49

 

Change related to retirement plan

 

 

 

 

 

 

 

 

 

311

 

 

 

 

 

 

311

 

 

 

 

 

 

 

 

311

 

Common and Series A Common Shares dividends

 

 

 

 

 

 

 

 

 

 

 

 

(26,585

)

 

 

(26,585

)

 

 

 

 

 

 

 

(26,585

)

Preferred dividend  requirement

 

 

 

 

 

 

 

 

 

 

 

 

(25

)

 

 

(25

)

 

 

 

 

 

 

 

(25

)

Dividend reinvestment plan

 

 

 

581

 

 

 

6,764

 

 

 

 

 

 

(4,196

)

 

 

3,149

 

 

 

 

 

 

 

 

3,149

 

Incentive and compensation plans

 

 

 

444

 

 

 

1,251

 

 

 

 

 

 

(1,357

)

 

 

338

 

 

 

 

 

 

 

 

338

 

Adjust investment in subsidiaries for repurchases, issuances, and other compensation plans

 

 

 

1,438

 

 

 

 

 

 

 

 

 

 

 

 

1,438

 

 

 

 

 

7,763

 

 

 

9,201

 

Stock-based compensation awards (2)

 

 

 

9,711

 

 

 

 

 

 

 

 

 

 

 

 

9,711

 

 

 

 

 

 

 

 

9,711

 

Tax windfall (shortfall) from stock awards (3)

 

 

 

(83

)

 

 

 

 

 

 

 

 

 

 

 

(83

)

 

 

 

 

 

 

 

(83

)

Distributions to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(643

)

 

 

(643

)

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

84

 

 

 

84

 

June 30, 2012

$

1,326

 

$

2,280,802

 

 

$

(742,906

)

 

$

(8,494

)

 

$

2,514,327

 

 

$

4,045,055

 

 

$

830

 

$

675,761

 

 

$

4,721,646

 

 

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

8


 
 

Table of contents

Telephone and Data Systems, Inc.

Consolidated Statement of Changes in Equity

(Unaudited)

 

 

TDS Shareholders

 

(Dollars in thousands)

Series A Common, Special Common and Common Shares

 

Capital in

Excess of

Par Value

 

Treasury Special Common and Common Shares

 

Accumulated

Other

Comprehensive

Income (Loss)

 

Retained

Earnings

 

Total TDS

Shareholders’

Equity

 

 

Preferred Shares

 

Non

controlling

Interests

 

Total Equity

December 31, 2010

$

1,270

 

 

$

2,107,929

 

 

$

(738,695

)

 

$

(3,208

)

 

$

2,450,599

 

 

$

3,817,895

 

 

$

830

 

 

$

647,013

 

 

$

4,465,738

 

Add (Deduct)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to TDS shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

135,458

 

 

 

135,458

 

 

 

 

 

 

 

 

 

135,458

 

Net income attributable to noncontrolling interests classified as equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

28,571

 

 

 

28,571

 

Change in net unrealized gain (loss) on equity investments

 

 

 

 

 

 

 

 

 

 

138

 

 

 

 

 

 

138

 

 

 

 

 

 

 

 

 

138

 

Change related to retirement plan

 

 

 

 

 

 

 

 

 

 

98

 

 

 

 

 

 

98

 

 

 

 

 

 

 

 

 

98

 

Common, Special Common and Series A Common Shares dividends