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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 4, 2023
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 4, 2023, Telephone and Data Systems, Inc. (TDS) issued a news release announcing its results of operations for the period ended June 30, 2023. 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 8.01. Other Events
On August 4, 2023, TDS and United States Cellular Corporation (UScellular), a subsidiary of TDS, announced that the Boards of Directors of both companies have decided to initiate a process to explore a range of strategic alternatives for UScellular. The initiation of this process does not impact the June 30, 2023 financial statements. At this time, TDS cannot predict the ultimate outcome of such process or estimate the potential impact of such process on the financial statements. It is possible that no strategic alternative will ultimately be consummated.
A copy of the news release related to this announcement is attached hereto as Exhibit 99.2 and incorporated by reference herein.
Item 9.01. Financial Statements and Exhibits
(d)   The following exhibits are being filed herewith:
Exhibit Number Description of Exhibits
99.1 
99.2
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 4, 2023By:/s/ Vicki L. Villacrez
   Vicki L. Villacrez
   Executive Vice President and Chief Financial Officer
   
    
    


Exhibit 99.1   NEWS RELEASE

image1a27a.jpg
As previously announced, TDS will hold a teleconference on August 4, 2023, at 9:00 a.m. CDT. Listen to the call live via the Events & Presentations page of investors.tdsinc.com.

TDS reports second quarter 2023 results

CHICAGO (August 4, 2023) — Telephone and Data Systems, Inc. (NYSE:TDS) reported total operating revenues of $1,267 million for the second quarter of 2023, versus $1,349 million for the same period one year ago. Net income (loss) attributable to TDS common shareholders and related diluted earnings (loss) per share were $(19) million and $(0.17), respectively, for the second quarter of 2023 compared to $18 million and $0.15, respectively, in the same period one year ago.
2Q 2023 Highlights*

UScellular
•Focused on improving subscriber trajectory to reduce postpaid losses - made progress in reducing postpaid churn
•Executing on growth initiatives
◦Fixed Wireless customers grew 66% to 96,000
◦Tower rental revenues grew 10%
•Reduced debt balance by $150 million in 2Q'23
•Launching 5G Mid-Band network - providing low latency and faster speeds
◦Ended June with availability in parts of Illinois, Iowa, Wisconsin, Maine, Missouri, Nebraska, Oklahoma, Oregon, Virginia and Washington
TDS Telecom
•Delivered 66,000 fiber service addresses through June; remain on track to deliver 175,000 fiber addresses by end of 2023
•Broadband investments driving positive results
◦Residential broadband connections grew 5%
◦Residential broadband revenues grew 8%
◦Residential revenue per connection grew 4%
•Increased full-year Adjusted EBITDA and Adjusted OIBDA guidance due to disciplined spending
•Modestly reduced full-year capital expenditures guidance

* Comparisons are 2Q’22 to 2Q’23 unless otherwise noted

“The TDS Family of Companies continues to execute on its multi-year strategies, while focusing intensely on cost containment,” said LeRoy T. Carlson, Jr., TDS President and CEO. “UScellular has begun deploying mid-band 5G spectrum, and TDS Telecom is making solid progress on its fiber program.

“At UScellular, postpaid handset subscriber trends improved slightly year-over-year driven by improvements in churn, however, subscriber results remained challenged overall as gross additions declined. Two of UScellular’s growth areas, fixed wireless and the tower portfolio, produced year-over-year double-digit increases in gross additions and revenues, respectively. In July, UScellular surpassed 100,000 fixed wireless customers – a key milestone as momentum for the product continues.

“TDS Telecom grew its residential revenue per connection and increased total residential broadband connections for the quarter. TDS Telecom continues to execute its broadband growth strategy through its multi-year fiber expansion program.”

Recent Development: On August 4, 2023, TDS and UScellular announced a process to explore a range of strategic alternatives for UScellular.
1

2023 Estimated Results
TDS’ current estimates of full-year 2023 results for UScellular and TDS Telecom are shown below. Such estimates represent management’s view as of August 4, 2023 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.

The 2023 Estimated Results shown below do not reflect any anticipated costs, expenses or results of the strategic review referenced above.

2023 Estimated Results
UScellularPreviousCurrent
(Dollars in millions)  
Service revenues$3,050-$3,150$3,025-$3,075
Adjusted OIBDA1
$725-$875$750-$850
Adjusted EBITDA1
$875-$1,025$925-$1,025
Capital expenditures$600-$700Unchanged
TDS TelecomPreviousCurrent
(Dollars in millions)  
Total operating revenues$1,030-$1,060Unchanged
Adjusted OIBDA1
$260-$290$270-$300
Adjusted EBITDA1
$260-$290$270-$300
Capital expenditures$500-$550$475-$525

The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income or Income before income taxes. In providing 2023 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.
 2023 Estimated Results
UScellularTDS Telecom
(Dollars in millions)  
Net income (GAAP)N/AN/A
Add back:  
Income tax expense N/AN/A
Income before income taxes (GAAP)$50-$150$40-$70
Add back:  
Interest expense200 — 
Depreciation, amortization and accretion expense655 230 
EBITDA (Non-GAAP)1
$905-$1,005$270-$300
Add back or deduct:  
(Gain) loss on asset disposals, net20 — 
Adjusted EBITDA (Non-GAAP)1
$925-$1,025$270-$300
Deduct:  
Equity in earnings of unconsolidated entities160 — 
Interest and dividend income15 — 
Adjusted OIBDA (Non-GAAP)1
$750-$850$270-$300
2

 Actual Results
 Six Months Ended
June 30, 2023		Year Ended
December 31, 2022
 UScellularTDS
Telecom		UScellular
TDS
Telecom
(Dollars in millions)    
Net income (GAAP)$20 $15 $35 $53 
Add back:    
Income tax expense29 5 37 23 
Income before income taxes (GAAP)$49 $21 $72 $76 
Add back:    
Interest expense99 (4)163 (7)
Depreciation, amortization and accretion expense330 119 700 215 
EBITDA (Non-GAAP)1
$478 $136 $935 $284 
Add back or deduct:    
Loss on impairment of licenses— — 3 — 
(Gain) loss on asset disposals, net13 3 19 7 
(Gain) loss on sale of business and other exit costs, net— — (1)— 
Adjusted EBITDA (Non-GAAP)1
$491 $139 $956 $291 
Deduct:    
Equity in earnings of unconsolidated entities82 — 158 — 
Interest and dividend income5 2 8 2 
Other, net — 1 — 1 
Adjusted OIBDA (Non-GAAP)1
$404 $136 $790 $288 
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 non-recurring, 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, 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, and gains and losses, 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, 2023, can be found on TDS' website at investors.tdsinc.com.
3

Stock Repurchase
During the second quarter of 2023, TDS repurchased 255,090 of its Common Shares for $3 million.
Conference Call Information
TDS will hold a conference call on August 4, 2023 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/745533112
▪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), a Fortune 1000® company, 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 9,100 associates as of June 30, 2023.
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 any strategic alternatives for UScellular will be successfully identified or completed; 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; 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; conditions in the U.S. telecommunications industry; the value of assets and investments; the state and federal regulatory environment; 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 Ended6/30/20233/31/202312/31/20229/30/20226/30/2022
Retail Connections     
Postpaid     
Total at end of period4,194,000 4,223,000 4,247,000 4,264,000 4,296,000 
Gross additions125,000 137,000 154,000 151,000 128,000 
Handsets83,000 93,000 105,000 107,000 94,000 
Connected devices42,000 44,000 49,000 44,000 34,000 
Net additions (losses)(28,000)(24,000)(17,000)(31,000)(40,000)
Handsets(29,000)(25,000)(20,000)(22,000)(31,000)
Connected devices1,000 1,000 3,000 (9,000)(9,000)
ARPU1
$50.64 $50.66 $50.60 $50.21 $50.07 
ARPA2
$130.19 $130.77 $130.97 $130.27 $130.43 
Handset upgrade rate3
4.8 %4.9 %7.0 %8.1 %6.0 %
Churn rate4
1.21 %1.27 %1.35 %1.42 %1.30 %
Handsets1.01 %1.06 %1.12 %1.15 %1.10 %
Connected devices2.65 %2.78 %2.99 %3.40 %2.73 %
Prepaid
Total at end of period462,000 470,000 493,000 493,000 490,000 
Gross additions50,000 43,000 61,000 62,000 56,000 
Net additions (losses)(8,000)(23,000)— 2,000 (4,000)
ARPU1
$33.86 $33.19 $33.34 $35.04 $35.25 
Churn rate4
4.18 %4.63 %4.11 %4.07 %4.07 %
Market penetration at end of period
Consolidated operating population32,350,000 32,350,000 32,370,000 32,370,000 32,370,000 
Consolidated operating penetration5
15 %15 %15 %15 %15 %
Capital expenditures (millions)$143 $208 $176 $136 $268 
Total cell sites in service6,952 6,950 6,945 6,933 6,916 
Owned towers4,341 4,338 4,336 4,329 4,323 

1Average 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.
2Average 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.
3Handset upgrade rate calculated as total handset upgrade transactions divided by average postpaid handset connections.
4Churn rate represents the percentage of the connections that disconnect service each month. These rates represent the average monthly churn rate for each respective period.
5Market 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 Ended6/30/20233/31/202312/31/20229/30/20226/30/2022
Residential connections     
Broadband
Wireline, Incumbent249,200 247,900 249,100 252,600 252,700 
Wireline, Expansion70,200 62,800 56,100 49,400 44,100 
Cable204,200 204,700 204,800 204,500 204,000 
Total Broadband523,600 515,400 510,000 506,500 500,800 
Video132,300 132,600 135,300 136,600 137,400 
Voice288,200 289,200 291,600 295,500 298,300 
Total Residential connections944,100 937,200 936,900 938,600 936,500 
Commercial connections223,300 229,800 236,000 242,800 250,700 
Total connections1,167,400 1,167,000 1,173,000 1,181,400 1,187,200 
Residential revenue per connection1
$61.97 $60.24 $59.91 $60.32 $59.67 
Capital expenditures (millions)$132 $130 $165 $166 $120 
Numbers may not foot due to rounding.
1Total 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,
 202320222023
vs. 2022		202320222023
vs. 2022
(Dollars and shares in millions, except per share amounts)      
Operating revenues      
UScellular$957 $1,027 (7)%$1,942 $2,037 (5)%
TDS Telecom257 256 1 %510 507 1 %
All Other1
53 66 (19)%118 120 (2)%
 1,267 1,349 (6)%2,570 2,664 (4)%
Operating expenses      
UScellular      
Expenses excluding depreciation, amortization and accretion759 806 (6)%1,538 1,573 (2)%
Depreciation, amortization and accretion161 172 (7)%330 342 (4)%
Loss on impairment of licenses— 3 N/M— 3 N/M
(Gain) loss on asset disposals, net3 6 (44)%13 8 73 %
 923 987 (7)%1,881 1,926 (2)%
TDS Telecom      
Expenses excluding depreciation, amortization and accretion189 180 5 %374 349 7 %
Depreciation, amortization and accretion60 52 15 %119 106 12 %
(Gain) loss on asset disposals, net2 1 N/M3 1 N/M
 251 233 8 %496 456 9 %
All Other1
      
Expenses excluding depreciation and amortization56 61 (7)%124 116 6 %
Depreciation and amortization4 5 3 %7 8 (2)%
 60 66 (7)%131 124 6 %
Total operating expenses1,234 1,286 (4)%2,508 2,506 —
Operating income (loss)      
UScellular34 40 (13)%61 111 (45)%
TDS Telecom7 23 (71)%15 51 (72)%
All Other1
(8)— N/M(14)(4)N/M
 33 63 (47)%62 158 (61)%
Investment and other income (expense)
Equity in earnings of unconsolidated entities38 38 1 %82 83 (1)%
Interest and dividend income6 5 10 %11 7 61 %
Interest expense(62)(40)(54)%(116)(72)(59)%
Other, net— — (34)%1 — 26 %
Total investment and other income (expense)(18)3 N/M(22)18 N/M
Income before income taxes15 66 (77)%40 176 (77)%
Income tax expense15 27 (43)%28 65 (56)%
Net income— 39 (100)%12 111 (90)%
Less: Net income attributable to noncontrolling interests, net of tax2 4 (63)%6 15 (67)%
Net income (loss) attributable to TDS shareholders(2)35 N/M6 96 (93)%
TDS Preferred Share dividends17 17 —35 35 —
Net income (loss) attributable to TDS common shareholders$(19)$18 N/M$(29)$61 N/M
Basic weighted average shares outstanding113 115 (2)%113 115 (2)%
Basic earnings (loss) per share attributable to TDS common shareholders$(0.17)$0.15 N/M$(0.25)$0.53 N/M
Diluted weighted average shares outstanding113 116 (3)%113 116 (3)%
Diluted earnings (loss) per share attributable to TDS common shareholders$(0.17)$0.15 N/M$(0.25)$0.52 N/M
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,
 20232022
(Dollars in millions)  
Cash flows from operating activities
Net income$12 $111 
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities
Depreciation, amortization and accretion456 456 
Bad debts expense53 54 
Stock-based compensation expense14 23 
Deferred income taxes, net22 52 
Equity in earnings of unconsolidated entities(82)(83)
Distributions from unconsolidated entities78 80 
Loss on impairment of licenses— 3 
(Gain) loss on asset disposals, net16 9 
Other operating activities4 3 
Changes in assets and liabilities from operations
Accounts receivable19 (25)
Equipment installment plans receivable7 (25)
Inventory52 (35)
Accounts payable(124)(6)
Customer deposits and deferred revenues(9)7 
Accrued taxes56 131 
Accrued interest(1)1 
Other assets and liabilities(59)(22)
Net cash provided by operating activities514 734 
   
Cash flows from investing activities
Cash paid for additions to property, plant and equipment(629)(526)
Cash paid for intangible assets(8)(585)
Advance payments for license acquisitions— (1)
Other investing activities8 (10)
Net cash used in investing activities(629)(1,122)
   
Cash flows from financing activities
Issuance of long-term debt391 776 
Repayment of long-term debt(209)(228)
Issuance of short-term debt— 60 
Repayment of short-term debt(60)— 
TDS Common Shares reissued for benefit plans, net of tax payments(3)(4)
UScellular Common Shares reissued for benefit plans, net of tax payments(6)(5)
Repurchase of TDS Common Shares(6)(20)
Repurchase of UScellular Common Shares— (18)
Dividends paid to TDS shareholders(76)(76)
Distributions to noncontrolling interests(2)(2)
Cash paid for software license agreements(20)(3)
Other financing activities— (1)
Net cash provided by financing activities9 479 
Net increase (decrease) in cash, cash equivalents and restricted cash(106)91 
Cash, cash equivalents and restricted cash
Beginning of period399 414 
End of period$293 $505 
8

Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
 
 June 30, 2023December 31, 2022
(Dollars in millions)  
Current assets  
Cash and cash equivalents$251 $360 
Accounts receivable, net1,107 1,181 
Inventory, net216 268 
Prepaid expenses104 102 
Income taxes receivable5 59 
Other current assets63 58 
Total current assets1,746 2,028 
Assets held for sale16 26 
Licenses4,704 4,699 
Goodwill547 547 
Other intangible assets, net193 204 
Investments in unconsolidated entities500 495 
Property, plant and equipment, net
4,932 4,760 
Operating lease right-of-use assets988 995 
Other assets and deferred charges780 796 
Total assets$14,406 $14,550 
9

Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
 June 30, 2023December 31, 2022
(Dollars in millions, except per share amounts)  
Current liabilities  
Current portion of long-term debt$60 $19 
Accounts payable364 506 
Customer deposits and deferred revenues278 285 
Accrued interest12 12 
Accrued taxes45 46 
Accrued compensation104 144 
Short-term operating lease liabilities147 146 
Other current liabilities268 356 
Total current liabilities1,278 1,514 
Deferred liabilities and credits  
Deferred income tax liability, net987 969 
Long-term operating lease liabilities900 908 
Other deferred liabilities and credits820 813 
Long-term debt, net3,872 3,731 
Noncontrolling interests with redemption features12 12 
Equity  
TDS shareholders' equity  
Series A Common and Common Shares, par value $0.01 per share1 1 
Capital in excess of par value2,532 2,551 
Preferred Shares, par value $0.01 per share1,074 1,074 
Treasury shares, at cost(466)(481)
Accumulated other comprehensive income5 5 
Retained earnings2,606 2,699 
Total TDS shareholders' equity5,752 5,849 
Noncontrolling interests785 754 
Total equity6,537 6,603 
Total liabilities and equity$14,406 $14,550 
10

Balance Sheet Highlights
(Unaudited)
 June 30, 2023
 TDSTDS CorporateIntercompanyTDS
 UScellularTelecom& OtherEliminationsConsolidated
(Dollars in millions)     
Cash and cash equivalents$186 $73 $69 $(77)$251 
Licenses, goodwill and other intangible assets$4,694 $744 $6 $— $5,444 
Investment in unconsolidated entities457 4 47 (8)500 
 $5,151 $748 $53 $(8)$5,944 
Property, plant and equipment, net$2,640 $2,203 $89 $— $4,932 
Long-term debt, net:
Current portion$54 $— $6 $— $60 
Non-current portion3,105 3 764 — 3,872 
 $3,159 $3 $770 $— $3,932 
11

TDS Telecom Highlights
(Unaudited)
 Three Months Ended
June 30,		Six Months Ended
June 30,
 202320222023
vs. 2022		202320222023
vs. 2022
(Dollars in millions)      
Operating revenues      
Residential
Wireline, Incumbent$89 $88 1 %$175 $173 1 %
Wireline, Expansion18 12 48 %33 22 46 %
Cable68 68 1 %136 135 1 %
Total residential175 168 4 %344 330 4 %
Commercial39 44 (10)%80 87 (8)%
Wholesale43 45 (4)%86 89 (4)%
Total service revenues257 256 1 %510 507 1 %
Equipment revenues— — (5)%— 1 (17)%
Total operating revenues257 256 1 %510 507 1 %
Cost of services108 103 5 %212 199 7 %
Cost of equipment and products— — 24 %— — (10)%
Selling, general and administrative expenses81 77 5 %162 150 8 %
Depreciation, amortization and accretion60 52 15 %119 106 12 %
(Gain) loss on asset disposals, net2 1 N/M3 1 N/M
Total operating expenses251 233 8 %496 456 9 %
 
Operating income$7 $23 (71)%$15 $51 (72)%
N/M - Percentage change not meaningful.
Numbers may not foot due to rounding.
12

Telephone and Data Systems, Inc.
Financial Measures and Reconciliations
(Unaudited)
Free Cash Flow
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2023202220232022
(Dollars in millions)    
Cash flows from operating activities (GAAP)$469 $352 $514 $734 
Cash paid for additions to property, plant and equipment(298)(256)(629)(526)
Cash paid for software license agreements(12)— (20)(3)
Free cash flow (Non-GAAP)1
$159 $96 $(135)$205 
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.
13

Exhibit 99.2
tdslogoa.jpg
usmlogoa.jpg

Telephone and Data Systems and UScellular Announce Exploration of Strategic Alternatives for UScellular

CHICAGO (August 4, 2023) – The boards of directors of Telephone and Data Systems, Inc. (“TDS”) (NYSE: TDS) and United States Cellular Corporation (“UScellular”) (NYSE: USM) have each decided to initiate a process to explore strategic alternatives for UScellular. The comprehensive process will explore a range of strategic alternatives.

“The TDS board believes that now is the right time for a comprehensive review of strategic alternatives for UScellular. We will pursue the pathway that is in the best interest of shareholders,” said Walter C.D. Carlson, Chairman of the TDS Board.

“The UScellular leadership team and I fully support the decision to review strategic alternatives for UScellular. We will remain focused on executing our plan and fulfilling our mission of connecting people to what matters most," said Laurent Therivel, Chief Executive Officer of UScellular.

TDS has retained Citi as its financial advisor and has retained legal counsel in connection with the review of strategic alternatives for UScellular. In connection with the review, the UScellular independent directors, as authorized by the UScellular board, have retained a financial advisor and legal counsel.

There is no deadline or definitive timetable set for completion of the strategic review, and there can be no assurance regarding the results or outcome of this review. TDS and UScellular do not intend to comment further on this strategic review process, and will make further announcements in accordance with their respective ongoing disclosure obligations and pursuant to applicable laws and regulations.

About TDS
Telephone and Data Systems, Inc. (TDS), a Fortune 1000® company, 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 9,100 people as of June 30, 2023.

About UScellular
United States Cellular Corporation provides a comprehensive range of wireless products and services, excellent customer support, and a high-quality network to customers with 4.7 million retail connections in 21 states. The Chicago-based company had 4,600 full- and part-time associates as of June 30, 2023. At the end of the second quarter of 2023, Telephone and Data Systems, Inc. owned 83 percent of UScellular.

For more information about TDS and UScellular, visit:
TDS: www.tdsinc.com
UScellular: www.uscellular.com
TDS Telecom: www.tdstelecom.com
OneNeck IT Solutions: www.oneneck.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 TDS’ and UScellular’s (collectively, the “Companies”) plans, beliefs, estimates, and expectations, including with respect to the exploration of strategic alternatives for UScellular. These statements are based on current intentions and expectations, 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 any strategic alternative for UScellular will be successfully identified or completed, whether any such strategic alternative will result in additional value for the Companies and their respective shareholders and whether the process will have an adverse impact on the business of the Companies. 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 Form 10-K by either of the Companies, as updated by either Company in any Form 10-Q filed subsequent to any such Form 10-K.

Contacts
Media:FGS Global
Bryan Locke, Jim Finkle, Amy Corser – TDS@FGSGlobal.com
Investors:Colleen Thompson – Colleen.Thompson@tdsinc.com
Julie Mathews – Julie.Mathews@tdsinc.com

v3.23.2
Document and Entity Information Document
Aug. 04, 2023
Entity Central Index Key 0001051512
Document Type 8-K
Document Period End Date Aug. 04, 2023
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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