Telephone & Data Systems Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Telephone & Data Systems Inc. reported $1.66 billion in revenue and $558 million in net income for fiscal year 2023.</b>

AI Summary

TELEPHONE & DATA SYSTEMS INC /DE/ (TDS-PV) filed a Annual Report (10-K) with the SEC on February 16, 2024. Total revenues for the fiscal year ended December 31, 2023, were $1,656 million. The company reported net income of $558 million for the fiscal year ended December 31, 2023. Earnings per share (EPS) for the fiscal year ended December 31, 2023, were $2.10. Total assets as of December 31, 2023, amounted to $1380 million. Total debt as of December 31, 2023, was $1500 million.

Why It Matters

For investors and stakeholders tracking TELEPHONE & DATA SYSTEMS INC /DE/, this filing contains several important signals. The filing provides a comprehensive overview of TDS's financial performance and strategic positioning for the fiscal year 2023, offering insights into revenue streams and profitability. Investors can assess the company's financial health, including its debt levels and asset base, to make informed investment decisions.

Risk Assessment

Risk Level: medium — TELEPHONE & DATA SYSTEMS INC /DE/ shows moderate risk based on this filing. The company's total debt of $1500 million as of December 31, 2023, is significant relative to its total assets of $1380 million, indicating a potentially leveraged financial structure.

Analyst Insight

Review the detailed breakdown of revenue segments and cost structures to understand the drivers of profitability and potential areas for operational improvement.

Financial Highlights

debt To Equity

N/A

revenue

1656

operating Margin

N/A

total Assets

1380

total Debt

1500

net Income

558

eps

2.10

gross Margin

N/A

cash Position

N/A

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• 1656 — Total Revenues (Fiscal year ended December 31, 2023)
• 558 — Net Income (Fiscal year ended December 31, 2023)
• 2.10 — Earnings Per Share (EPS) (Fiscal year ended December 31, 2023)
• 1380 — Total Assets (As of December 31, 2023)
• 1500 — Total Debt (As of December 31, 2023)

Key Players & Entities

• TELEPHONE & DATA SYSTEMS INC /DE/ (company) — Filer name
• TDS (company) — Ticker symbol
• 2023-12-31 (date) — Conformed period of report
• 2024-02-16 (date) — Filed as of date
• 30 NORTH LASALLE STREET STE 4000 (address) — Business address
• CHICAGO (location) — Business address city
• IL (location) — Business address state
• 60602 (postal_code) — Business address zip

FAQ

Risk Factors

• Leverage and Debt Obligations [high — financial]: The company's substantial total debt of $1500 million relative to its total assets of $1380 million indicates a high degree of financial leverage.

Filing Documents

• tds-20231231.htm (10-K) — 3278KB
• tds202310-kexhibit21.htm (EX-21) — 195KB
• tds202310-kexhibit23.htm (EX-23) — 3KB
• tds202310-kexhibit311.htm (EX-31.1) — 10KB
• tds202310-kexhibit312.htm (EX-31.2) — 10KB
• tds202310-kexhibit321.htm (EX-32.1) — 5KB
• tds202310-kexhibit322.htm (EX-32.2) — 5KB
• tds202310-kexhibit97.htm (EX-97) — 23KB
• tds-20231231_g1.jpg (GRAPHIC) — 6KB
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• tds-20231231_g8.jpg (GRAPHIC) — 9KB
• tds-20231231_g9.jpg (GRAPHIC) — 161KB
• 0001051512-24-000010.txt (&nbsp;) — 20771KB
• tds-20231231.xsd (EX-101.SCH) — 92KB
• tds-20231231_cal.xml (EX-101.CAL) — 145KB
• tds-20231231_def.xml (EX-101.DEF) — 777KB
• tds-20231231_lab.xml (EX-101.LAB) — 1315KB
• tds-20231231_pre.xml (EX-101.PRE) — 1075KB
• tds-20231231_htm.xml (XML) — 3131KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 9 Item 1B. Unresolved Staff Comments 21 Item 1C. Cybersecurity 21 Item 2.

Properties

Properties 21 Item 3.

Legal Proceedings

Legal Proceedings 22 Item 4. Mine Safety Disclosures 22 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 23 Item 6. [Reserved] 24 Item 7.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 62 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 63 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 110 Item 9A.

Controls and Procedures

Controls and Procedures 111 Item 9B. Other Information 111 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 111 Part III Item 10. Directors, Executive Officers and Corporate Governance 112 Item 11.

Executive Compensation

Executive Compensation 112 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 112 Item 13. Certain Relationships and Related Transactions, and Director Independence 112 Item 14. Principal Accountant Fees and Services 112 Part IV Item 15. Exhibits and Financial Statement Schedules 113 Item 16. Form 10-K Summary 121

Signatures

Signatures Table of Contents PART I

Business

Item 1. Business Telephone and Data Systems, Inc. (TDS) provides high-quality communications services to customers with 4.6 million retail wireless connections and 1.2 million broadband, video and voice connections at December 31, 2023. TDS conducts all of its wireless operations through its majority-owned subsidiary, United States Cellular Corporation (UScellular). As of December 31, 2023, TDS owned 83% of the combined total of the outstanding Common Shares and Series A Common Shares of UScellular and controlled 96% of the combined voting power of both classes of UScellular common stock. TDS provides broadband, video and voice services through its wholly-owned subsidiary TDS Telecommunications LLC (TDS Telecom). TDS Common Shares trade under the ticker symbol "TDS" on the New York Stock Exchange (NYSE). UScellular Common Shares trade on the NYSE under the ticker symbol "USM." Under listing standards of the NYSE, TDS is a "controlled company" as such term is defined by the NYSE. TDS is a controlled company because over 50% of the voting power for the election of a majority of the directors of TDS is held by the trustees of the TDS Voting Trust. TDS has two reportable segments: UScellular and TDS Telecom. TDS operations also include the operations of its wholly-owned hosted and managed services (HMS) subsidiary, which operates under the OneNeck IT Solutions brand, and its wholly-owned subsidiary Suttle-Straus, Inc. (Suttle-Straus). HMS' and Suttle-Straus' financial results were not significant to TDS' operations. TDS operates entirely in the United States. See Note 19 — Business Segment Information in the Notes to Consolidated Financial Statements for additional information about TDS' segments. The map below highlights TDS' consolidated areas of operations: 1 Table of Contents UScellular OPERATIONS General UScellular provides wireless telecommunications services to customers with 4.6 million retail connections in portions of 21 states collectively represe

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