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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): November 1, 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 November 1, 2024, Telephone and Data Systems, Inc. (TDS) issued a news release announcing its results of operations for the period ended September 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:November 1, 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 November 1, 2024, at 9:00 a.m. CDT. Listen to the call live via the Events & Presentations page of investors.tdsinc.com.
TDS reports third quarter 2024 results
CHICAGO (November 1, 2024) — Telephone and Data Systems, Inc. (NYSE:TDS) reported total operating revenues of $1,224 million for the third quarter of 2024, versus $1,278 million for the same period one year ago. Net income (loss) attributable to TDS common shareholders and related diluted earnings (loss) per share were $(83) million and $(0.73), respectively, for the third quarter of 2024 compared to $(17) million and $(0.16), respectively, in the same period one year ago.
Net income attributable to TDS common shareholders excluding a UScellular wireless spectrum license impairment (non-GAAP) of $136 million ($102 million, net of tax) and related diluted earnings per share excluding a UScellular wireless spectrum license impairment (non-GAAP) were $2 million and $0.01, respectively, for the third quarter of 2024. The impairment loss was substantially all related to the retained high-band spectrum unit of accounting which includes the 28 GHz, 37 GHz and 39 GHz frequency bands.
Recent Highlights*
UScellular
•Announced sale of select spectrum assets for $1 billion to Verizon in October 2024, and the sale of additional spectrum to two other mobile network operators
•Improved wireless operating results
◦Postpaid handset net losses improved
◦Postpaid ARPU grew 2%; service revenues decreased 2%
◦Prepaid net additions up
◦Both postpaid and prepaid churn improved
•Fixed wireless customers grew 32% to 140,000

TDS Telecom
•Reached a milestone of 50% of service addresses now served with fiber
◦Grew total year-over-year service address footprint 9%
◦Delivered 32,000 marketable fiber services addresses in Q3; 87,000 YTD
•Operating revenues grew 2%; residential revenue growth of 5%
◦Residential broadband connections grew 4% due to broadband investments
◦Strong net income and Adjusted EBITDA growth
◦Good expense discipline

* Comparisons are 3Q’23 to 3Q’24 unless otherwise noted
1

“We continue to strategically optimize our portfolio in order to focus our resources appropriately throughout the enterprise,” said LeRoy T. Carlson, Jr., TDS President and CEO. “In the third quarter, TDS completed the sale of its OneNeck operations. In addition, TDS Telecom has entered into agreements to sell certain ILEC and cable properties. In October, as part of its ongoing process to opportunistically monetize its remaining spectrum, UScellular announced that it had entered into agreements to monetize select spectrum assets for $1 billion.

“UScellular’s third quarter results show that the company is continuing to balance subscriber growth with financial discipline. And while it had postpaid handset net losses in the quarter, the company saw a notable year-over-year improvement in its subscriber trajectory.

“TDS Telecom is implementing its ongoing fiber expansion strategy and it reached a milestone of 50% of its service addresses passed with fiber."

Announced Transactions 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.

The T-Mobile transaction excluded UScellular's approximately 4,400 owned towers, its equity method investments, and approximately 70% of its spectrum assets.

In October, UScellular announced a sale of select spectrum assets to Verizon for a portion of the remaining spectrum for $1 billion, and the sale of additional spectrum to two other mobile network operators for an undisclosed price. Each transaction is subject to regulatory approvals and the satisfaction of customary closing conditions and contingent upon the close of the proposed T-Mobile transaction. The process to opportunistically monetize the remaining spectrum assets continues.
2

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 November 1, 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-$3,050$2,950-$3,000
Adjusted OIBDA1, 2 (Non-GAAP)
$750-$850$800-$875
Adjusted EBITDA1, 2 (Non-GAAP)
$920-$1,020$970-$1,045
Capital expenditures$550-$650$550-$600
TDS TelecomPreviousCurrent
(Dollars in millions)  
Total operating revenues$1,050-$1,080Unchanged
Adjusted OIBDA1 (Non-GAAP)
$330-$360Unchanged
Adjusted EBITDA1 (Non-GAAP)
$330-$360Unchanged
Capital expenditures$310-$340Unchanged

The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income (loss) or Income (loss) before income taxes. In providing 2024 estimated results, TDS has not completed the below reconciliation to Net income (loss) 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 (loss) before income taxes (GAAP)$(35)-$40$60-$90
Add back:  
Interest expense180 — 
Depreciation, amortization and accretion expense665 270 
EBITDA (Non-GAAP)1
$810-$885$330-$360
Add back or deduct:  
(Gain) loss on asset disposals, net20 — 
Adjusted EBITDA (Non-GAAP)1
$970-$1,045$330-$360
Deduct:  
Equity in earnings of unconsolidated entities160 — 
Interest and dividend income10 — 
Adjusted OIBDA (Non-GAAP)1
$800-$875$330-$360
3

 Actual Results
 Nine Months Ended
September 30, 2024		Year Ended
December 31, 2023
 UScellularTDS
Telecom		UScellular
TDS
Telecom
(Dollars in millions)    
Net income (loss) (GAAP)$(37)$51 $58 $(483)
Add back:    
Income tax expense (benefit)29 15 53 (26)
Income (loss) before income taxes (GAAP)$(8)$66 $111 $(509)
Add back:    
Interest expense137 (4)196 (8)
Depreciation, amortization and accretion expense499 199 656 245 
EBITDA (Non-GAAP)1
$628 $261 $963 $(272)
Add back or deduct:    
Expenses related to strategic alternatives review28 — 8 — 
Loss on impairment of licenses136 — — — 
Loss on impairment of goodwill— — — 547 
(Gain) loss on asset disposals, net14 8 17 10 
(Gain) loss on license sales and exchanges, net4 — (2)— 
Adjusted EBITDA (Non-GAAP)1
$810 $269 $986 $285 
Deduct:    
Equity in earnings of unconsolidated entities123 — 158 — 
Interest and dividend income9 4 10 4 
Other, net — 3 — 2 
Adjusted OIBDA (Non-GAAP)1
$678 $263 $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 September 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.
4


Conference Call Information
TDS will hold a conference call on November 1, 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/666898854
▪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 to approximately 6 million connections nationwide through its businesses, UScellular and TDS Telecom. Founded in 1969 and headquartered in Chicago, TDS employed approximately 8,000 associates as of September 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 transactions whereby UScellular has agreed to sell its wireless operations and selected spectrum assets will be successfully completed or whether UScellular will be able to find buyers at mutually agreeable prices for its remaining spectrum assets; 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
5

United States Cellular Corporation
Summary Operating Data (Unaudited)
As of or for the Quarter Ended9/30/20246/30/20243/31/202412/31/20239/30/2023
Retail Connections     
Postpaid     
Total at end of period1
3,999,000 4,027,000 4,051,000 4,106,000 4,159,000 
Gross additions123,000 117,000 106,000 129,000 128,000 
Handsets84,000 73,000 63,000 80,000 84,000 
Connected devices39,000 44,000 43,000 49,000 44,000 
Net additions (losses)1
(28,000)(24,000)(44,000)(50,000)(35,000)
Handsets(28,000)(29,000)(47,000)(53,000)(38,000)
Connected devices— 5,000 3,000 3,000 3,000 
ARPU2
$52.04 $51.45 $51.96 $51.61 $51.11 
ARPA3
$131.81 $130.41 $132.00 $131.63 $130.91 
Handset upgrade rate4
3.5 %4.1 %4.5 %5.8 %4.5 %
Churn rate5
1.25 %1.16 %1.22 %1.44 %1.30 %
Handsets1.07 %0.97 %1.03 %1.22 %1.11 %
Connected devices2.47 %2.47 %2.52 %3.03 %2.64 %
Prepaid
Total at end of period1
452,000 439,000 436,000 451,000 462,000 
Gross additions57,000 50,000 41,000 43,000 52,000 
Net additions (losses)1
13,000 3,000 (13,000)(11,000)— 
ARPU2, 6
$32.01 $32.37 $32.25 $32.32 $33.44 
Churn rate5
3.30 %3.60 %4.06 %3.87 %3.68 %
Market penetration at end of period
Consolidated operating population32,550,000 32,550,000 32,550,000 32,350,000 32,350,000 
Consolidated operating penetration7
15 %15 %14 %15 %15 %
Capital expenditures (millions)$120 $165 $131 $148 $111 
Total cell sites in service7,007 6,990 6,995 7,000 6,973 
Owned towers4,407 4,388 4,382 4,373 4,356 
Number of colocations8
2,418 2,392 2,397 2,390 2,406 
Tower tenancy rate9
1.55 1.55 1.55 1.55 1.55 

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.
8Represents instances where a third-party wireless carrier rents or leases space on a company-owned tower.
9Average number of tenants that lease space on company-owned towers, measured on a per-tower basis.
6

TDS Telecom
Summary Operating Data (Unaudited)
As of or for the Quarter Ended9/30/20246/30/20243/31/202412/31/20239/30/2023
Residential connections     
Broadband
Incumbent241,500 243,700 245,100 244,800 248,800 
Expansion115,300 107,800 100,400 92,200 79,400 
Cable195,900 198,500 202,400 202,900 204,400 
Total Broadband1
552,700 550,000 547,900 539,800 532,600 
Video122,100 124,800 128,800 131,500 132,400 
Voice271,300 275,600 279,400 281,600 284,000 
Total Residential connections946,100 950,400 956,100 952,900 949,000 
Commercial connections197,200 201,500 206,200 210,200 217,400 
Total connections1,143,300 1,152,000 1,162,200 1,163,100 1,166,400 
Residential revenue per connection2
$65.41 $65.26 $64.58 $62.74 $62.15 
Capital expenditures (millions)$78 $78 $87 $143 $172 
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.
7

Telephone and Data Systems, Inc.
Consolidated Statement of Operations Highlights
(Unaudited)
 Three Months Ended
September 30,		Nine Months Ended
September 30,
 202420232024
vs. 2023		202420232024
vs. 2023
(Dollars and shares in millions, except per share amounts)      
Operating revenues      
UScellular$922 $963 (4)%$2,799 $2,906 (4)%
TDS Telecom263 256 2 %797 767 4 %
All Other1
39 59 (33)%128 175 (27)%
 1,224 1,278 (4)%3,724 3,848 (3)%
Operating expenses      
UScellular      
Expenses excluding depreciation, amortization and accretion707 746 (5)%2,149 2,285 (6)%
Depreciation, amortization and accretion167 159 5 %499 490 2 %
Loss on impairment of licenses136 — N/M136 — N/M
(Gain) loss on asset disposals, net4 1 N/M14 14 4 %
(Gain) loss on license sales and exchanges, net(2)— N/M4 — N/M
 1,012 906 12 %2,802 2,789 —
TDS Telecom      
Expenses excluding depreciation, amortization and accretion182 189 (4)%533 563 (5)%
Depreciation, amortization and accretion68 61 11 %199 180 11 %
(Gain) loss on asset disposals, net3 6 (52)%8 8 —
 252 256 (1)%741 752 (1)%
All Other1
      
Expenses excluding depreciation and amortization49 64 (22)%159 187 (14)%
Depreciation and amortization3 5 (73)%6 11 (40)%
(Gain) loss on asset disposals, net(1)(1)N/M1 — N/M
(Gain) loss on sale of business and other exit costs, net(12)— N/M(12)— N/M
 40 68 (43)%154 197 (22)%
Total operating expenses1,304 1,230 6 %3,697 3,738 (1)%
Operating income (loss)      
UScellular(90)57 N/M(3)117 N/M
TDS Telecom10 — N/M56 15 N/M
All Other1
— (9)N/M(26)(22)(18)%
 (80)48 N/M27 110 (76)%
Investment and other income (expense)
Equity in earnings of unconsolidated entities43 40 9 %125 122 3 %
Interest and dividend income8 5 51 %20 16 25 %
Interest expense(76)(62)(22)%(208)(178)(17)%
Other, net1 — N/M3 1 N/M
Total investment and other expense(24)(17)(41)%(60)(39)(52)%
Income (loss) before income taxes(104)31 N/M(33)71 N/M
Income tax expense (benefit)(25)27 N/M1 55 (98)%
Net income (loss)(79)4 N/M(34)16 N/M
Less: Net income (loss) attributable to noncontrolling interests, net of tax(13)4 N/M— 10 N/M
Net income (loss) attributable to TDS shareholders(66)— N/M(34)6 N/M
TDS Preferred Share dividends17 17 —52 52 —
Net income (loss) attributable to TDS common shareholders$(83)$(17)N/M$(86)$(46)(86)%
Basic weighted average shares outstanding114 113 1 %114 113 1 %
Basic earnings (loss) per share attributable to TDS common shareholders$(0.73)$(0.16)N/M$(0.75)$(0.41)(85)%
Diluted weighted average shares outstanding114 113 1 %114 113 1 %
Diluted earnings (loss) per share attributable to TDS common shareholders$(0.73)$(0.16)N/M$(0.75)$(0.41)(83)%
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.
8

Telephone and Data Systems, Inc.
Consolidated Statement of Cash Flows
(Unaudited)
Nine Months Ended
September 30,
 20242023
(Dollars in millions)  
Cash flows from operating activities
Net income (loss)$(34)$16 
Add (deduct) adjustments to reconcile net income (loss) to net cash flows from operating activities
Depreciation, amortization and accretion704 681 
Bad debts expense72 77 
Stock-based compensation expense48 27 
Deferred income taxes, net(15)38 
Equity in earnings of unconsolidated entities(125)(122)
Distributions from unconsolidated entities106 97 
Loss on impairment of licenses136 — 
(Gain) loss on asset disposals, net23 22 
(Gain) loss on sale of business and other exit costs, net(12)— 
(Gain) loss on license sales and exchanges, net4 — 
Other operating activities6 4 
Changes in assets and liabilities from operations
Accounts receivable33 11 
Equipment installment plans receivable12 20 
Inventory37 87 
Accounts payable3 (36)
Customer deposits and deferred revenues(3)(15)
Accrued taxes16 72 
Accrued interest13 8 
Other assets and liabilities(91)(64)
Net cash provided by operating activities933 923 
   
Cash flows from investing activities
Cash paid for additions to property, plant and equipment(655)(906)
Cash paid for licenses(17)(24)
Cash received from divestitures91 — 
Other investing activities1 8 
Net cash used in investing activities(580)(922)
   
Cash flows from financing activities
Issuance of long-term debt440 781 
Repayment of long-term debt(408)(664)
Repayment of short-term debt— (60)
Tax payments for TDS stock-based compensation awards(10)(3)
Tax payments for UScellular stock-based compensation awards(11)(6)
Repurchase of TDS Common Shares— (6)
Repurchase of UScellular Common Shares(26)— 
Dividends paid to TDS shareholders(83)(114)
Payment of debt issuance costs(16)(4)
Distributions to noncontrolling interests(4)(2)
Cash paid for software license agreements(32)(29)
Other financing activities(1)— 
Net cash used in financing activities(151)(107)
Net increase (decrease) in cash, cash equivalents and restricted cash202 (106)
Cash, cash equivalents and restricted cash
Beginning of period270 399 
End of period$472 $293 
9

Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
 
 September 30, 2024December 31, 2023
(Dollars in millions)  
Current assets  
Cash and cash equivalents$451 $236 
Accounts receivable, net997 1,074 
Inventory, net167 208 
Prepaid expenses88 86 
Income taxes receivable3 4 
Other current assets40 52 
Total current assets1,746 1,660 
Assets held for sale17 15 
Licenses4,586 4,702 
Other intangible assets, net168 183 
Investments in unconsolidated entities524 505 
Property, plant and equipment, net
4,987 5,062 
Operating lease right-of-use assets970 987 
Other assets and deferred charges728 807 
Total assets$13,726 $13,921 
10

Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
 September 30, 2024December 31, 2023
(Dollars in millions, except per share amounts)  
Current liabilities  
Current portion of long-term debt$29 $26 
Accounts payable334 360 
Customer deposits and deferred revenues270 277 
Accrued interest26 12 
Accrued taxes49 43 
Accrued compensation107 149 
Short-term operating lease liabilities151 147 
Other current liabilities132 170 
Total current liabilities1,098 1,184 
Liabilities held for sale7 — 
Deferred liabilities and credits  
Deferred income tax liability, net961 975 
Long-term operating lease liabilities862 890 
Other deferred liabilities and credits812 784 
Long-term debt, net4,097 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 value2,557 2,558 
Preferred Shares, par value $0.01 per share1,074 1,074 
Treasury shares, at cost(433)(465)
Accumulated other comprehensive income11 11 
Retained earnings1,865 2,023 
Total TDS shareholders' equity5,075 5,202 
Noncontrolling interests798 794 
Total equity5,873 5,996 
Total liabilities and equity$13,726 $13,921 
11

Balance Sheet Highlights
(Unaudited)
 September 30, 2024
 TDSTDS CorporateIntercompanyTDS
 UScellularTelecom& OtherEliminationsConsolidated
(Dollars in millions)     
Cash and cash equivalents$272 $83 $175 $(79)$451 
Licenses and other intangible assets$4,576 $173 $5 $— $4,754 
Investment in unconsolidated entities478 4 50 (8)524 
 $5,054 $177 $55 $(8)$5,278 
Property, plant and equipment, net$2,504 $2,465 $18 $— $4,987 
Long-term debt, net:
Current portion$20 $— $9 $— $29 
Non-current portion2,882 3 1,212 — 4,097 
 $2,902 $3 $1,221 $— $4,126 
12

United States Cellular Corporation
Segment Results
(Unaudited)

Three Months Ended
September 30,		Nine Months Ended
September 30,
UScellular202420232024
vs. 2023		202420232024
vs. 2023
(Dollars in millions)   
Operating Revenues
Wireless$896 $938 (4)%$2,722 $2,831 (4)%
Towers59 57 2 %175 170 3 %
Intra-company eliminations(33)(32)(3)%(98)(95)(3)%
Total operating revenues922 963 (4)%2,799 2,906 (4)%
Operating expenses
Wireless1,005 900 12 %2,784 2,770 1 %
Towers40 38 4 %116 114 1 %
Intra-company eliminations(33)(32)(3)%(98)(95)(3)%
Total operating expenses1,012 906 12 %2,802 2,789 —
Operating income (loss)$(90)$57 N/M$(3)$117 N/M
Adjusted OIBDA (Non-GAAP)$222 $220 1 %$678 $624 9 %
Adjusted EBITDA (Non-GAAP)$269 $263 3 %$810 $753 8 %
Capital expenditures$120 $111 8 %$415 $462 (10)%

N/M - Percentage change not meaningful
13

United States Cellular Corporation
Segment Results
(Unaudited)
Three Months Ended
September 30,		Nine Months Ended
September 30,
UScellular Wireless202420232024
vs. 2023		202420232024
vs. 2023
(Dollars in millions)   
Retail service$669 $687 (3)%$2,014 $2,065 (2)%
Other52 50 5 %154 149 4 %
Service revenues721 737 (2)%2,168 2,214 (2)%
Equipment sales175 201 (13)%554 617 (10)%
Total operating revenues896 938 (4)%2,722 2,831 (4)%
System operations (excluding Depreciation, amortization and accretion reported below)193 199 (3)%582 597 (2)%
Cost of equipment sold203 228 (11)%630 708 (11)%
Selling, general and administrative316 324 (3)%953 995 (4)%
Depreciation, amortization and accretion155 148 5 %466 456 2 %
Loss on impairment of licenses136 — N/M136 — N/M
(Gain) loss on asset disposals, net4 1 N/M13 14 (1)%
(Gain) loss on license sales and exchanges, net(2)— N/M4 — N/M
Total operating expenses1,005 900 12 %2,784 2,770 1 %
Operating income (loss)$(109)$38 N/M$(62)$61 N/M
Adjusted OIBDA (Non-GAAP)$191 $190 1 %$583 $534 9 %
Adjusted EBITDA (Non-GAAP)$191 $190 1 %$583 $534 9 %
Capital expenditures$114 $106 7 %$400 $452 (12)%

Three Months Ended
September 30,		Nine Months Ended
September 30,
UScellular Towers202420232024
vs. 2023		202420232024
vs. 2023
(Dollars in millions)   
Third-party revenues$26 $25 1 %$77 $75 2 %
Intra-company revenues33 32 3 %98 95 3 %
Total tower revenues59 57 2 %175 170 3 %
System operations (excluding Depreciation, amortization and accretion reported below)20 18 10 %58 55 4 %
Selling, general and administrative8 9 (14)%24 25 (7)%
Depreciation, amortization and accretion12 11 7 %33 34 (1)%
(Gain) loss on asset disposals, net— — N/M1 — N/M
Total operating expenses40 38 4 %116 114 1 %
Operating income$19 $19 (1)%$59 $56 7 %
Adjusted OIBDA (Non-GAAP)$31 $30 3 %$95 $90 6 %
Adjusted EBITDA (Non-GAAP)$31 $30 3 %$95 $90 6 %
Capital expenditures$6 $5 33 %$15 $10 61 %
N/M - Percentage change not meaningful
14

TDS Telecom Highlights
(Unaudited)
 Three Months Ended
September 30,		Nine Months Ended
September 30,
 202420232024
vs. 2023		202420232024
vs. 2023
(Dollars in millions)      
Operating revenues      
Residential
Incumbent$90 $89 1 %$269 $264 2 %
Expansion29 20 46 %83 52 58 %
Cable67 68 (2)%206 204 1 %
Total residential186 177 5 %558 521 7 %
Commercial36 38 (4)%110 118 (7)%
Wholesale40 42 (3)%128 127 1 %
Total service revenues262 256 2 %796 766 4 %
Equipment revenues— — (6)%1 1 (10)%
Total operating revenues263 256 2 %797 767 4 %
Cost of services101 107 (6)%297 319 (7)%
Cost of equipment and products— — 26 %1 — 4 %
Selling, general and administrative expenses81 82 (1)%236 244 (3)%
Depreciation, amortization and accretion68 61 11 %199 180 11 %
(Gain) loss on asset disposals, net3 6 (52)%8 8 —
Total operating expenses252 256 (1)%741 752 (1)%
 
Operating income$10 $— N/M$56 $15 N/M
N/M - Percentage change not meaningful
Numbers may not foot due to rounding.
15

Telephone and Data Systems, Inc.
Financial Measures
(Unaudited)
Free Cash Flow
 Three Months Ended
September 30,		Nine Months Ended
September 30,
TDS - CONSOLIDATED2024202320242023
(Dollars in millions)    
Cash flows from operating activities (GAAP)$306 $408 $933 $923 
Cash paid for additions to property, plant and equipment(203)(278)(655)(906)
Cash paid for software license agreements(11)(9)(32)(29)
Free cash flow (Non-GAAP)1
$92 $121 $246 $(12)
 Three Months Ended
September 30,		Nine Months Ended
September 30,
UScellular2024202320242023
(Dollars in millions)
Cash flows from operating activities (GAAP)$245 $329 $761 $719 
Cash paid for additions to property, plant and equipment(129)(103)(399)(454)
Cash paid for software license agreements(11)(9)(31)(28)
Free cash flow (Non-GAAP)1
$105 $217 $331 $237 
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.
16

Licenses impairment, net of tax

The following non-GAAP financial measure isolates the total effects on net income of the current period Loss on impairment of intangible assets at UScellular, including tax impacts. TDS believes this measure may be useful to investors and other users of its financial information to assist in comparing the current period financial results with periods that were not impacted by such a charge.
Three Months Ended
September 30,		Nine Months Ended
September 30,
 2024202320242023
(Dollars in millions)  
Net loss attributable to TDS common shareholders (GAAP)$(83)$(17)$(86)$(46)
Adjustments:
Loss on impairment of licenses136 — 136 — 
Deferred tax benefit on the tax-amortizable portion of the impaired licenses(34)— (34)— 
UScellular noncontrolling public shareholders' portion of the impaired licenses(17)— (17)— 
Subtotal of Non-GAAP adjustments85 — 85 — 
Net income (loss) attributable to TDS common shareholders excluding licenses impairment charge (Non-GAAP)2 (17)(1)(46)
Noncontrolling interest adjustment to compute diluted earnings (loss)(1)(1)(1)— 
Net income (loss) attributable to TDS common shareholders excluding licenses impairment charge used in diluted earnings (loss) per share (Non-GAAP)$1 $(18)$(2)$(46)
Diluted weighted average shares outstanding used for diluted loss per share attributable to TDS common shareholders114 113 114 113 
Diluted weighted average shares outstanding used for diluted earnings (loss) per share attributable to TDS common shareholders excluding licenses impairment charge117 113 114 113 
Diluted earnings (loss) per share attributable to TDS common shareholders (GAAP)$(0.73)$(0.16)$(0.75)$(0.41)
Adjustments:
Loss on impairment of licenses1.18 — 1.19 — 
Deferred tax benefit on the tax-amortizable portion of the impaired licenses(0.29)— (0.30)— 
UScellular noncontrolling public shareholders' portion of the impaired licenses(0.15)— (0.16)— 
Diluted earnings (loss) per share attributable to TDS common shareholders excluding licenses impairment charge (Non-GAAP)$0.01 $(0.16)$(0.02)$(0.41)
17

Telephone and Data Systems, Inc.
EBITDA, Adjusted EBITDA and Adjusted OIBDA
(Unaudited)
The following table reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income and Income before income taxes.
Three Months Ended
September 30,
TDS TELECOM
20242023
(Dollars in millions)
Net income (GAAP)
$9 $4 
Add back:
Income tax expense4 — 
Income before income taxes (GAAP)14 4 
Add back:
Interest expense(1)(2)
Depreciation, amortization and accretion68 61 
EBITDA (Non-GAAP)80 63 
Add back or deduct:
(Gain) loss on asset disposals, net3 6 
Adjusted EBITDA (Non-GAAP)83 68 
Deduct:
Interest and dividend income1 1 
Other, net1 — 
Adjusted OIBDA (Non-GAAP)$81 $67 
Numbers may not foot due to rounding.
18
v3.24.3
Document and Entity Information Document
Nov. 01, 2024
Entity Central Index Key 0001051512
Document Type 8-K
Document Period End Date Nov. 01, 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
Telephone and Data Systems (NYSE:TDS-V)
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