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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
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 2, 2024
image1a27.jpg
TELEPHONE AND DATA SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
Delaware 001-14157 36-2669023
(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)

30 North LaSalle Street, Suite 4000, Chicago, Illinois 60602
(Address of principal executive offices and zip code)

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:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Shares, $.01 par valueTDSNew York Stock Exchange
Depositary Shares each representing a 1/1000th interest in a share of 6.625% Series UU Cumulative Redeemable Perpetual Preferred Stock, $.01 par valueTDSPrUNew York Stock Exchange
Depositary Shares each representing a 1/1000th interest in a share of 6.000% Series VV Cumulative Redeemable Perpetual Preferred Stock, $.01 par valueTDSPrVNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐
Emerging growth company
☐If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


Item 2.02. Results of Operations and Financial Condition
On August 2, 2024, Telephone and Data Systems, Inc. (TDS) issued a news release announcing its results of operations for the period ended June 30, 2024. A copy of the news release is attached hereto as Exhibit 99.1 and 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, nor will any such information or exhibits be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits
(d)   The following exhibits are being filed herewith:
Exhibit Number Description of Exhibits
99.1 
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
  TELEPHONE AND DATA SYSTEMS, INC.
  
    
Date:August 2, 2024By:/s/ Vicki L. Villacrez
   Vicki L. Villacrez
   Executive Vice President and Chief Financial Officer
   
    
    


Exhibit 99.1
NEWS RELEASE

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As previously announced, TDS will hold a teleconference on August 2, 2024, at 9:00 a.m. CDT. Listen to the call live via the Events & Presentations page of investors.tdsinc.com.
TDS reports second quarter 2024 results

CHICAGO (August 2, 2024) — Telephone and Data Systems, Inc. (NYSE:TDS) reported total operating revenues of $1,238 million for the second quarter of 2024, versus $1,267 million for the same period one year ago. Net income (loss) attributable to TDS common shareholders and related diluted earnings (loss) per share were $(14) million and $(0.13), respectively, for the second quarter of 2024 compared to $(19) million and $(0.17), respectively, in the same period one year ago.
2Q 2024 Highlights*
UScellular
•Announced sale of wireless operations and select spectrum assets
•Now reporting Wireless and Towers segments
◦Wireless
•Sequential improvement in postpaid gross additions and postpaid net losses
•Postpaid ARPU grew 2%; service revenues decreased 2%
◦Towers
•Third-party tower revenues increased 1%
•Fixed wireless customers grew 40% to 134,000
•Strong cost management led to increased operating income, net income and Adjusted OIBDA

TDS Telecom
•Making progress on goal to deliver 125,000 fiber service addresses in 2024
◦Grew total year over year service address footprint 10%
◦Delivered 27,000 fiber services addresses in Q2
•Operating revenues grew 4%; residential revenue growth of 7%
◦Residential broadband connections grew 5% due to broadband investments
◦Residential ARPU grew 5% due to price increases
•Strong net income and Adjusted EBITDA growth
◦Good expense discipline

* Comparisons are 2Q’23 to 2Q’24 unless otherwise noted

“TDS is working to optimize our portfolio of businesses to position the Company for future success” said LeRoy T. Carlson, Jr., TDS President and CEO. “During the second quarter, we announced transactions regarding both UScellular and OneNeck IT Solutions that we anticipate will accelerate achievement of our strategic objectives. We remain focused on effectively operating all our businesses and serving our customers with high-quality communications services, while we work towards successfully closing these transactions and enhancing the performance of our ongoing businesses.

“In Q2, UScellular remained focused on balancing subscriber growth with financial discipline and reported solid ARPU growth, good expense discipline, and improved profitability - all combining to generate higher free cash flow. While postpaid handset subscribers declined in the quarter, UScellular saw a return to subscriber growth in prepaid and steady growth in fixed wireless.

“TDS Telecom reported another quarter of notable growth in revenue and profitability as a result of its broadband investments. TDS Telecom added an additional 27,000 marketable fiber service addresses and is making good progress on its long-term goal of 1.2 million marketable fiber service addresses.”
1

Announced Transaction and Exploration of Strategic Alternatives for UScellular
On May 28, 2024, Telephone and Data Systems, Inc. (TDS) and UScellular announced that they have entered into a definitive agreement to sell UScellular's wireless operations and select spectrum assets to T-Mobile. The transaction is expected to close in mid-2025, subject to regulatory approvals and the satisfaction of customary closing conditions.

UScellular retains its nearly 4,400 owned towers, its equity method investments, and approximately 70% of its spectrum assets. The strategic alternatives review process is ongoing as UScellular seeks to opportunistically monetize its spectrum assets that are not subject to the T-Mobile transaction.

2024 Estimated Results
TDS’ current estimates of full-year 2024 results for UScellular and TDS Telecom are shown below. Such estimates represent management’s view as of August 2, 2024 and should not be assumed to be current as of any future date. TDS undertakes no duty to update such estimates, whether as a result of new information, future events, or otherwise. There can be no assurance that final results will not differ materially from estimated results.

2024 Estimated Results
UScellularPreviousCurrent
(Dollars in millions)  
Service revenues$2,950-$3,050Unchanged
Adjusted OIBDA1, 2
$750-$850Unchanged
Adjusted EBITDA1, 2
$920-$1,020Unchanged
Capital expenditures$550-$650Unchanged
TDS TelecomPreviousCurrent
(Dollars in millions)  
Total operating revenues$1,070-$1,100$1,050-$1,080
Adjusted OIBDA1
$310-$340$330-$360
Adjusted EBITDA1
$310-$340$330-$360
Capital expenditures$310-$340Unchanged

The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income or Income before income taxes. In providing 2024 estimated results, TDS has not completed the below reconciliation to Net income because it does not provide guidance for income taxes. Although potentially significant, TDS believes that the impact of income taxes cannot be reasonably predicted; therefore, TDS is unable to provide such guidance.
 
2024 Estimated Results2
UScellularTDS Telecom
(Dollars in millions)  
Net income (GAAP)N/AN/A
Add back:  
Income tax expense N/AN/A
Income before income taxes (GAAP)$60-$160$60-$90
Add back:  
Interest expense185 — 
Depreciation, amortization and accretion expense660 270 
EBITDA (Non-GAAP)1
$905-$1,005$330-$360
Add back or deduct:  
(Gain) loss on asset disposals, net15 — 
Adjusted EBITDA (Non-GAAP)1
$920-$1,020$330-$360
Deduct:  
Equity in earnings of unconsolidated entities155 — 
Interest and dividend income15 — 
Adjusted OIBDA (Non-GAAP)1
$750-$850$330-$360
2

 Actual Results
 Six Months Ended
June 30, 2024		Year Ended
December 31, 2023
 UScellularTDS
Telecom		UScellular
TDS
Telecom
(Dollars in millions)    
Net income (loss) (GAAP)$42 $42 $58 $(483)
Add back:    
Income tax expense (benefit)41 10 53 (26)
Income (loss) before income taxes (GAAP)$83 $52 $111 $(509)
Add back:    
Interest expense91 (2)196 (8)
Depreciation, amortization and accretion expense329 131 656 245 
EBITDA (Non-GAAP)1
$503 $181 $963 $(272)
Add back or deduct:    
Expenses related to strategic alternatives review21 — 8 — 
Loss on impairment of goodwill— — — 547 
(Gain) loss on asset disposals, net11 6 17 10 
(Gain) loss on license sales and exchanges, net7 — (2)— 
Adjusted EBITDA (Non-GAAP)1
$542 $187 $986 $285 
Deduct:    
Equity in earnings of unconsolidated entities80 — 158 — 
Interest and dividend income6 2 10 4 
Other, net — 2 — 2 
Adjusted OIBDA (Non-GAAP)1
$456 $183 $818 $279 
Numbers may not foot due to rounding.
1EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income adjusted for the items set forth in the reconciliation above. EBITDA, Adjusted EBITDA and Adjusted OIBDA are not measures of financial performance under Generally Accepted Accounting Principles in the United States (GAAP) and should not be considered as alternatives to Net income or Cash flows from operating activities, as indicators of cash flows or as measures of liquidity. TDS does not intend to imply that any such items set forth in the reconciliation above are infrequent or unusual; such items may occur in the future. Management uses Adjusted EBITDA and Adjusted OIBDA as measurements of profitability, and therefore reconciliations to Net income are deemed appropriate. Management believes Adjusted EBITDA and Adjusted OIBDA are useful measures of TDS’ operating results before significant recurring non-cash charges, nonrecurring expenses, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of TDS’ financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance. Adjusted EBITDA shows adjusted earnings before interest, taxes, depreciation, amortization and accretion, gains and losses, and expenses related to the strategic alternatives review of UScellular while Adjusted OIBDA reduces this measure further to exclude Equity in earnings of unconsolidated entities and Interest and dividend income in order to more effectively show the performance of operating activities excluding investment activities. The table above reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income or Income before income taxes. Additional information and reconciliations related to Non-GAAP financial measures for June 30, 2024, can be found on TDS' website at investors.tdsinc.com.
22024 Estimated Results do not reflect any anticipated costs, expenses or results of the strategic alternatives review referenced above.
3

Conference Call Information
TDS will hold a conference call on August 2, 2024 at 9:00 a.m. Central Time.
▪Access the live call on the Events & Presentations page of investors.tdsinc.com or at
https://events.q4inc.com/attendee/870908711
▪Access the call by phone at (888)330-2384, conference ID: 1328528.

Before the call, certain financial and statistical information to be discussed during the call will be posted to investors.tdsinc.com. The call will be archived on the Events & Presentations page of investors.tdsinc.com. 
About TDS
Telephone and Data Systems, Inc. (TDS) provides wireless; broadband, video and voice; and hosted and managed services to approximately 6 million connections nationwide through its businesses, UScellular, TDS Telecom, and OneNeck IT Solutions. Founded in 1969 and headquartered in Chicago, TDS employed approximately 8,500 associates as of June 30, 2024.
Visit investors.tdsinc.com for comprehensive financial information, including earnings releases, quarterly and annual filings, shareholder information and more.
Contacts
Colleen Thompson, Vice President - Corporate Relations
colleen.thompson@tdsinc.com
 
Julie Mathews, IRC, Director - Investor Relations
julie.mathews@tdsinc.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: whether the announced transaction whereby UScellular has agreed to sell its wireless operations and selected spectrum assets to T-Mobile will be successfully completed or whether UScellular will be able to find buyers at mutually agreeable prices for its spectrum assets that are not subject to the agreement with T-Mobile; whether any such strategic alternative will result in additional value for TDS or its shareholders and whether the process will have an adverse impact on TDS’ businesses; strategic decisions regarding the tower business; intense competition; the ability to obtain or maintain roaming arrangements with other carriers on acceptable terms and changes in roaming practices; the ability to obtain access to adequate radio spectrum to meet current or anticipated future needs, including participation in FCC auctions; the ability to attract people of outstanding talent throughout all levels of the organization; TDS' smaller scale relative to larger competitors; changes in demand, consumer preferences and perceptions, price competition, or churn rates; advances in technology; impacts of costs, integration problems or other factors associated with acquisitions, divestitures or exchanges of properties or wireless spectrum licenses and/or expansion of TDS’ businesses; the ability of the company to successfully construct and manage its networks; difficulties involving third parties with which TDS does business; uncertainties in TDS’ future cash flows and liquidity and access to the capital markets; the ability to make payments on TDS and UScellular indebtedness or comply with the terms of debt covenants; the effect on TDS' business if the collateral securing its secured term loan is foreclosed upon; conditions in the U.S. telecommunications industry; the value of assets and investments; the state and federal regulatory environment, including changes in regulatory support received and the ability to pass through certain regulatory fees to customers; pending and future litigation; cyber-attacks or other breaches of network or information technology security; control by the TDS Voting Trust; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; and the impact, duration and severity of public health emergencies. Investors are encouraged to consider these and other risks and uncertainties that are more fully described under “Risk Factors” in the most recent filing of TDS’ Form 10-K, as updated by any TDS Form 10-Q filed subsequent to such Form 10-K.

For more information about TDS and its subsidiaries, visit:
TDS: www.tdsinc.com 
UScellular: www.uscellular.com 
TDS Telecom: www.tdstelecom.com 
OneNeck IT Solutions: www.oneneck.com
4

United States Cellular Corporation
Summary Operating Data (Unaudited)
As of or for the Quarter Ended6/30/20243/31/202412/31/20239/30/20236/30/2023
Retail Connections     
Postpaid     
Total at end of period1
4,027,000 4,051,000 4,106,000 4,159,000 4,194,000 
Gross additions117,000 106,000 129,000 128,000 125,000 
Handsets73,000 63,000 80,000 84,000 83,000 
Connected devices44,000 43,000 49,000 44,000 42,000 
Net additions (losses)1
(24,000)(44,000)(50,000)(35,000)(28,000)
Handsets(29,000)(47,000)(53,000)(38,000)(29,000)
Connected devices5,000 3,000 3,000 3,000 1,000 
ARPU2
$51.45 $51.96 $51.61 $51.11 $50.64 
ARPA3
$130.41 $132.00 $131.63 $130.91 $130.19 
Handset upgrade rate4
4.1 %4.5 %5.8 %4.5 %4.8 %
Churn rate5
1.16 %1.22 %1.44 %1.30 %1.21 %
Handsets0.97 %1.03 %1.22 %1.11 %1.01 %
Connected devices2.47 %2.52 %3.03 %2.64 %2.65 %
Prepaid
Total at end of period1
439,000 436,000 451,000 462,000 462,000 
Gross additions50,000 41,000 43,000 52,000 50,000 
Net additions (losses)1
3,000 (13,000)(11,000)— (8,000)
ARPU2, 6
$32.37 $32.25 $32.32 $33.44 $33.86 
Churn rate5
3.60 %4.06 %3.87 %3.68 %4.18 %
Market penetration at end of period
Consolidated operating population32,550,000 32,550,000 32,350,000 32,350,000 32,350,000 
Consolidated operating penetration7
15 %14 %15 %15 %15 %
Capital expenditures (millions)$165 $131 $148 $111 $143 
Total cell sites in service6,990 6,995 7,000 6,973 6,952 
Owned towers4,388 4,382 4,373 4,356 4,341 

1First quarter 2024 connections were adjusted to remove subscribers that could no longer access the UScellular network due to the CDMA shutdown. This resulted in 11,000 and 2,000 subscribers removed from the postpaid and prepaid base, respectively, that are not included in Net additions (losses) for the quarter.
2Average Revenue Per User (ARPU) - metric is calculated by dividing a revenue base by an average number of connections and by the number of months in the period. These revenue bases and connection populations are shown below:
•Postpaid ARPU consists of total postpaid service revenues and postpaid connections.
•Prepaid ARPU consists of total prepaid service revenues and prepaid connections.
3Average Revenue Per Account (ARPA) - metric is calculated by dividing total postpaid service revenues by the average number of postpaid accounts and by the number of months in the period.
4Handset upgrade rate calculated as total handset upgrade transactions divided by average postpaid handset connections.
5Churn rate represents the percentage of the connections that disconnect service each month. These rates represent the average monthly churn rate for each respective period.
6Fourth quarter 2023 Prepaid ARPU excludes a $6 million reduction of prepaid revenue related to an adjustment to correct a prior period error recorded in the fourth quarter of 2023.
7Market penetration is calculated by dividing the number of wireless connections at the end of the period by the total estimated population of consolidated operating markets.
5

TDS Telecom
Summary Operating Data (Unaudited)
As of or for the Quarter Ended6/30/20243/31/202412/31/20239/30/20236/30/2023
Residential connections     
Broadband
Incumbent243,700 245,100 244,800 248,800 249,200 
Expansion107,800 100,400 92,200 79,400 70,200 
Cable198,500 202,400 202,900 204,400 204,200 
Total Broadband1
550,000 547,900 539,800 532,600 523,600 
Video124,800 128,800 131,500 132,400 132,300 
Voice275,600 279,400 281,600 284,000 288,200 
Total Residential connections950,400 956,100 952,900 949,000 944,100 
Commercial connections201,500 206,200 210,200 217,400 223,300 
Total connections1,152,000 1,162,200 1,163,100 1,166,400 1,167,400 
Residential revenue per connection2
$65.26 $64.58 $62.74 $62.15 $61.97 
Capital expenditures (millions)$78 $87 $143 $172 $132 
Numbers may not foot due to rounding.
1Total residential broadband connections increased by 8,100 during the three months ended March 31, 2024, due primarily to net additions of 6,400 as well as certain other adjustments.
2Total residential revenue per connection is calculated by dividing total residential revenue by the average number of residential connections and by the number of months in the period.
6

Telephone and Data Systems, Inc.
Consolidated Statement of Operations Highlights
(Unaudited)
 Three Months Ended
June 30,		Six Months Ended
June 30,
 202420232024
vs. 2023		202420232024
vs. 2023
(Dollars and shares in millions, except per share amounts)      
Operating revenues      
UScellular$927 $957 (3)%$1,877 $1,942 (3)%
TDS Telecom267 257 4 %534 510 5 %
All Other1
44 53 (19)%89 118 (24)%
 1,238 1,267 (2)%2,500 2,570 (3)%
Operating expenses      
UScellular      
Expenses excluding depreciation, amortization and accretion713 759 (6)%1,442 1,538 (6)%
Depreciation, amortization and accretion165 161 2 %329 330 —
(Gain) loss on asset disposals, net5 3 49 %11 13 (19)%
(Gain) loss on license sales and exchanges, net8 — N/M7 — N/M
 891 923 (3)%1,789 1,881 (5)%
TDS Telecom      
Expenses excluding depreciation, amortization and accretion178 189 (6)%351 374 (6)%
Depreciation, amortization and accretion67 60 11 %131 119 10 %
(Gain) loss on asset disposals, net4 2 N/M6 3 N/M
 248 251 (1)%488 496 (1)%
All Other1
      
Expenses excluding depreciation and amortization58 56 —111 124 (11)%
Depreciation and amortization1 4 (34)%7 7 (24)%
(Gain) loss on asset disposals, net— — (95)%(1)— N/M
 60 60 (2)%117 131 (11)%
Total operating expenses1,199 1,234 (3)%2,394 2,508 (5)%
Operating income (loss)      
UScellular36 34 6 %88 61 44 %
TDS Telecom19 7 N/M46 15 N/M
All Other1
(16)(8)N/M(28)(14)N/M
 39 33 17 %106 62 72 %
Investment and other income (expense)
Equity in earnings of unconsolidated entities39 38 3 %82 82 —
Interest and dividend income7 6 28 %12 11 13 %
Interest expense(73)(62)(18)%(131)(116)(14)%
Other, net1 — N/M2 1 N/M
Total investment and other expense(26)(18)(42)%(35)(22)(62)%
Income before income taxes13 15 (13)%71 40 77 %
Income tax expense6 15 (57)%26 28 (8)%
Net income7 — N/M45 12 N/M
Less: Net income attributable to noncontrolling interests, net of tax4 2 N/M13 6 N/M
Net income (loss) attributable to TDS shareholders3 (2)N/M32 6 N/M
TDS Preferred Share dividends17 17 —35 35 —
Net income (loss) attributable to TDS common shareholders$(14)$(19)24 %$(3)$(29)91 %
Basic weighted average shares outstanding114 113 1 %113 113 1 %
Basic earnings (loss) per share attributable to TDS common shareholders$(0.13)$(0.17)25 %$(0.02)$(0.25)91 %
Diluted weighted average shares outstanding114 113 1 %113 113 1 %
Diluted earnings (loss) per share attributable to TDS common shareholders$(0.13)$(0.17)23 %$(0.03)$(0.25)89 %
N/M - Percentage change not meaningful.
Numbers may not foot due to rounding.
1Consists of TDS corporate, intercompany eliminations and all other business operations not included in the UScellular and TDS Telecom segments.
7

Telephone and Data Systems, Inc.
Consolidated Statement of Cash Flows
(Unaudited)
Six Months Ended
June 30,
 20242023
(Dollars in millions)  
Cash flows from operating activities
Net income$45 $12 
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities
Depreciation, amortization and accretion467 456 
Bad debts expense51 53 
Stock-based compensation expense29 14 
Deferred income taxes, net16 22 
Equity in earnings of unconsolidated entities(82)(82)
Distributions from unconsolidated entities80 78 
(Gain) loss on asset disposals, net16 16 
(Gain) loss on license sales and exchanges, net7 — 
Other operating activities5 4 
Changes in assets and liabilities from operations
Accounts receivable6 19 
Equipment installment plans receivable5 7 
Inventory54 52 
Accounts payable(14)(124)
Customer deposits and deferred revenues7 (9)
Accrued taxes7 56 
Accrued interest5 (1)
Other assets and liabilities(78)(59)
Net cash provided by operating activities626 514 
   
Cash flows from investing activities
Cash paid for additions to property, plant and equipment(451)(629)
Cash paid for intangible assets(15)(8)
Other investing activities1 8 
Net cash used in investing activities(465)(629)
   
Cash flows from financing activities
Issuance of long-term debt440 391 
Repayment of long-term debt(401)(209)
Repayment of short-term debt— (60)
Tax payments for TDS stock-based compensation awards(10)(3)
Tax payments for UScellular stock-based compensation awards(12)(6)
Repurchase of TDS Common Shares— (6)
Dividends paid to TDS shareholders(61)(76)
Payment of debt issuance costs(16)— 
Distributions to noncontrolling interests(3)(2)
Cash paid for software license agreements(21)(20)
Other financing activities(1)— 
Net cash provided by (used in) financing activities(85)9 
Net increase (decrease) in cash, cash equivalents and restricted cash76 (106)
Cash, cash equivalents and restricted cash
Beginning of period270 399 
End of period$346 $293 
8

Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
 
 June 30, 2024December 31, 2023
(Dollars in millions)  
Current assets  
Cash and cash equivalents$322 $236 
Accounts receivable, net1,037 1,074 
Inventory, net148 208 
Prepaid expenses88 86 
Income taxes receivable4 4 
Other current assets42 52 
Total current assets1,641 1,660 
Assets held for sale120 15 
Licenses4,724 4,702 
Other intangible assets, net173 183 
Investments in unconsolidated entities507 505 
Property, plant and equipment, net
4,988 5,062 
Operating lease right-of-use assets966 987 
Other assets and deferred charges753 807 
Total assets$13,872 $13,921 
9

Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
 June 30, 2024December 31, 2023
(Dollars in millions, except per share amounts)  
Current liabilities  
Current portion of long-term debt$29 $26 
Accounts payable327 360 
Customer deposits and deferred revenues282 277 
Accrued interest17 12 
Accrued taxes43 43 
Accrued compensation94 149 
Short-term operating lease liabilities145 147 
Other current liabilities149 170 
Total current liabilities1,086 1,184 
Liabilities held for sale34 — 
Deferred liabilities and credits  
Deferred income tax liability, net992 975 
Long-term operating lease liabilities873 890 
Other deferred liabilities and credits786 784 
Long-term debt, net4,103 4,080 
Noncontrolling interests with redemption features16 12 
Equity  
TDS shareholders' equity  
Series A Common and Common Shares, par value $0.01 per share1 1 
Capital in excess of par value2,542 2,558 
Preferred Shares, par value $0.01 per share1,074 1,074 
Treasury shares, at cost(437)(465)
Accumulated other comprehensive income11 11 
Retained earnings1,957 2,023 
Total TDS shareholders' equity5,148 5,202 
Noncontrolling interests834 794 
Total equity5,982 5,996 
Total liabilities and equity$13,872 $13,921 
10

Balance Sheet Highlights
(Unaudited)
 June 30, 2024
 TDSTDS CorporateIntercompanyTDS
 UScellularTelecom& OtherEliminationsConsolidated
(Dollars in millions)     
Cash and cash equivalents$195 $58 $125 $(56)$322 
Licenses and other intangible assets$4,715 $177 $5 $— $4,897 
Investment in unconsolidated entities461 4 49 (7)507 
 $5,176 $181 $54 $(7)$5,404 
Property, plant and equipment, net$2,540 $2,429 $19 $— $4,988 
Long-term debt, net:
Current portion$20 $— $9 $— $29 
Non-current portion2,887 3 1,213 — 4,103 
 $2,907 $3 $1,222 $— $4,132 
11

United States Cellular Corporation
Segment Results
(Unaudited)

Three Months Ended
June 30,		Six Months Ended
June 30,
UScellular202420232024
vs. 2023		202420232024
vs. 2023
(Dollars in millions)   
Operating Revenues
Wireless$902 $932 (3)%$1,826 $1,892 (3)%
Towers58 57 3 %116 113 3 %
Intra-company eliminations(33)(32)(4)%(65)(63)(3)%
Total operating revenues927 957 (3)%1,877 1,942 (3)%
Operating expenses
Wireless885 916 (3)%1,779 1,868 (5)%
Towers39 39 1 %75 76 (1)%
Intra-company eliminations(33)(32)(4)%(65)(63)(3)%
Total operating expenses891 923 (3)%1,789 1,881 (5)%
Operating income$36 $34 6 %$88 $61 44 %
Adjusted OIBDA (Non-GAAP)$227 $198 14 %$456 $404 13 %
Adjusted EBITDA (Non-GAAP)$268 $239 13 %$542 $491 10 %
Capital expenditures$165 $143 15 %$295 $351 (16)%

Three Months Ended
June 30,		Six Months Ended
June 30,
UScellular Wireless202420232024
vs. 2023		202420232024
vs. 2023
(Dollars in millions)   
Retail service$666 $686 (3)%$1,344 $1,378 (2)%
Other52 49 7 %102 99 3 %
Service revenues718 735 (2)%1,446 1,477 (2)%
Equipment sales184 197 (6)%380 415 (9)%
Total operating revenues902 932 (3)%1,826 1,892 (3)%
System operations (excluding Depreciation, amortization and accretion reported below)194 203 (4)%390 398 (2)%
Cost of equipment sold211 228 (7)%427 480 (11)%
Selling, general and administrative313 333 (6)%637 670 (5)%
Depreciation, amortization and accretion154 149 3 %308 307 — 
(Gain) loss on asset disposals, net5 3 40 %10 13 (23)%
(Gain) loss on license sales and exchanges, net8 — N/M7 — N/M
Total operating expenses885 916 (3)%1,779 1,868 (5)%
Operating income$17 $16 5 %$47 $24 97 %
Adjusted OIBDA (Non-GAAP)$196 $168 16 %$392 $344 14 %
Adjusted EBITDA (Non-GAAP)$196 $168 16 %$392 $344 14 %
Capital expenditures$160 $140 13 %$286 $346 (17)%
N/M - Percentage change not meaningful
12

United States Cellular Corporation
Segment Results
(Unaudited)

Three Months Ended
June 30,		Six Months Ended
June 30,
UScellular Towers202420232024
vs. 2023		202420232024
vs. 2023
(Dollars in millions)   
Third-party revenues$25 $25 1 %$51 $50 2 %
Intra-company revenues33 32 4 %65 63 3 %
Total tower revenues58 57 3 %116 113 3 %
System operations (excluding Depreciation, amortization and accretion reported below)19 19 (1)%37 37 1 %
Selling, general and administrative9 8 8 %16 16 (3)%
Depreciation, amortization and accretion11 12 (5)%21 23 (5)%
(Gain) loss on asset disposals, net— — N/M1 — N/M
Total operating expenses39 39 1 %75 76 (1)%
Operating income$19 $18 7 %$41 $37 10 %
Adjusted OIBDA (Non-GAAP)$31 $30 6 %$64 $60 7 %
Adjusted EBITDA (Non-GAAP)$31 $30 6 %$64 $60 7 %
Capital expenditures$5 $3 N/M$9 $5 89 %
N/M - Percentage change not meaningful
13

TDS Telecom Highlights
(Unaudited)
 Three Months Ended
June 30,		Six Months Ended
June 30,
 202420232024
vs. 2023		202420232024
vs. 2023
(Dollars in millions)      
Operating revenues      
Residential
Incumbent$90 $89 1 %$180 $175 3 %
Expansion28 18 60 %54 33 65 %
Cable69 68 1 %138 136 2 %
Total residential186 175 7 %372 344 8 %
Commercial37 39 (6)%74 80 (8)%
Wholesale44 43 2 %88 86 2 %
Total service revenues267 257 4 %534 510 5 %
Equipment revenues— — 19 %— — (12)%
Total operating revenues267 257 4 %534 510 5 %
Cost of services98 108 (9)%196 212 (8)%
Cost of equipment and products— — (28)%— — (7)%
Selling, general and administrative expenses80 81 (2)%155 162 (4)%
Depreciation, amortization and accretion67 60 11 %131 119 10 %
(Gain) loss on asset disposals, net4 2 N/M6 3 N/M
Total operating expenses248 251 (1)%488 496 (1)%
 
Operating income$19 $7 N/M$46 $15 N/M
N/M - Percentage change not meaningful
Numbers may not foot due to rounding.
14

Telephone and Data Systems, Inc.
Free Cash Flow
(Unaudited)
 Three Months Ended
June 30,		Six Months Ended
June 30,
TDS - CONSOLIDATED2024202320242023
(Dollars in millions)    
Cash flows from operating activities (GAAP)$403 $469 $626 $514 
Cash paid for additions to property, plant and equipment(216)(298)(451)(629)
Cash paid for software license agreements(11)(12)(21)(20)
Free cash flow (Non-GAAP)1
$176 $159 $154 $(135)
 Three Months Ended
June 30,		Six Months Ended
June 30,
UScellular2024202320242023
(Dollars in millions)
Cash flows from operating activities (GAAP)$313 $349 $516 $390 
Cash paid for additions to property, plant and equipment(137)(155)(270)(351)
Cash paid for software license agreements(11)(12)(20)(19)
Free cash flow (Non-GAAP)1
$165 $182 $226 $20 
1Free cash flow is a non-GAAP financial measure which TDS believes may be useful to investors and other users of its financial information in evaluating liquidity, specifically, the amount of net cash generated by business operations after deducting Cash paid for additions to property, plant and equipment and Cash paid for software license agreements.
15

Telephone and Data Systems, Inc.
EBITDA, Adjusted EBITDA and Adjusted OIBDA
(Unaudited)

The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income, Income before income taxes and/or Operating income. Income and expense items below Operating income are not provided at the individual segment level for UScellular Wireless and UScellular Towers; therefore, the reconciliations begin with EBITDA and the most comparable GAAP measure is Operating income rather than Net income at the segment level.
Three Months Ended
June 30,
TDS - CONSOLIDATED20242023
(Dollars in millions)
Net income (GAAP)$7 $— 
Add back:
Income tax expense6 15 
Income before income taxes (GAAP)13 15 
Add back:
Interest expense73 62 
Depreciation, amortization and accretion233 225 
EBITDA (Non-GAAP)319 302 
Add back or deduct:
Expenses related to strategic alternatives review21 — 
(Gain) loss on asset disposals, net9 5 
(Gain) loss on license sales and exchanges, net8 — 
Adjusted EBITDA (Non-GAAP)357 307 
Deduct:
Equity in earnings of unconsolidated entities39 38 
Interest and dividend income7 6 
Other, net1 — 
Adjusted OIBDA (Non-GAAP)$310 $263 
16

EBITDA, Adjusted EBITDA and Adjusted OIBDA
Three Months Ended
June 30,
UScellular20242023
(Dollars in millions)
Net income (GAAP)$18 $5 
Add back:
Income tax expense14 19 
Income before income taxes (GAAP)32 24 
Add back:
Interest expense45 51 
Depreciation, amortization and accretion165 161 
EBITDA (Non-GAAP)242 236 
Add back or deduct:
Expenses related to strategic alternatives review13 — 
(Gain) loss on asset disposals, net5 3 
(Gain) loss on license sales and exchanges, net8 — 
Adjusted EBITDA (Non-GAAP)268 239 
Deduct:
Equity in earnings of unconsolidated entities38 38 
Interest and dividend income3 3 
Adjusted OIBDA (Non-GAAP)$227 $198 
Three Months Ended
June 30,
UScellular Wireless20242023
(Dollars in millions)  
EBITDA (Non-GAAP)$171 $165 
Add back or deduct:
Expenses related to strategic alternatives review12 — 
(Gain) loss on asset disposals, net5 3 
(Gain) loss on license sales and exchanges, net8 — 
Adjusted EBITDA and Adjusted OIBDA (Non-GAAP)196 168 
Deduct:
Depreciation, amortization and accretion154 149 
Expenses related to strategic alternatives review12 — 
(Gain) loss on asset disposals, net5 3 
(Gain) loss on license sales and exchanges, net8 — 
Operating income (GAAP)$17 $16 
Three Months Ended
June 30,
UScellular Towers20242023
(Dollars in millions)  
EBITDA (Non-GAAP)$30 $30 
Add back or deduct:
Expenses related to strategic alternatives review1 — 
Adjusted EBITDA and Adjusted OIBDA (Non-GAAP)31 30 
Deduct:
Depreciation, amortization and accretion11 12 
Expenses related to strategic alternatives review1 — 
Operating income (GAAP)$19 $18 
17

EBITDA, Adjusted EBITDA and Adjusted OIBDA
Three Months Ended
June 30,
TDS TELECOM
20242023
(Dollars in millions)
Net income (GAAP)
$18 $7 
Add back:
Income tax expense3 3 
Income before income taxes (GAAP)21 10 
Add back:
Interest expense— (2)
Depreciation, amortization and accretion67 60 
EBITDA (Non-GAAP)88 68 
Add back or deduct:
(Gain) loss on asset disposals, net4 2 
Adjusted EBITDA (Non-GAAP)91 70 
Deduct:
Interest and dividend income1 1 
Other, net1 — 
Adjusted OIBDA (Non-GAAP)$89 $68 
Numbers may not foot due to rounding.
18
v3.24.2.u1
Document and Entity Information Document
Aug. 02, 2024
Entity Central Index Key 0001051512
Document Type 8-K
Document Period End Date Aug. 02, 2024
Entity Registrant Name TELEPHONE AND DATA SYSTEMS, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-14157
Entity Tax Identification Number 36-2669023
Entity Address, Address Line One 30 North LaSalle Street, Suite 4000
Entity Address, City or Town Chicago
Entity Address, State or Province IL
Entity Address, Postal Zip Code 60602
City Area Code (312)
Local Phone Number 630-1900
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Amendment Flag false
Common Shares  
Title of 12(b) Security Common Shares, $.01 par value
Trading Symbol TDS
Security Exchange Name NYSE
Depositary Shares each representing a 1/1000th interest in a share of 6.625% Series UU Cumulative Redeemable Perpetual Preferred Stock, $.01 par value  
Title of 12(b) Security Depositary Shares each representing a 1/1000th interest in a share of 6.625% Series UU Cumulative Redeemable Perpetual Preferred Stock, $.01 par value
Trading Symbol TDSPrU
Security Exchange Name NYSE
Depositary Shares each representing a 1/1000th interest in a share of 6.000% Series VV Cumulative Redeemable Perpetual Preferred Stock, $.01 par value  
Title of 12(b) Security Depositary Shares each representing a 1/1000th interest in a share of 6.000% Series VV Cumulative Redeemable Perpetual Preferred Stock, $.01 par value
Trading Symbol TDSPrV
Security Exchange Name NYSE
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