TDS Consolidated

At the Corporate level, TDS™ works to realize the overall company mission by delivering effective shared services and support to the TDS businesses, and by providing strategic direction and financial stability to the TDS Enterprise. As such, TDS’ goals at the Corporate level are to:

  • Build and maintain strong, experienced management teams, which in turn develop talented and dedicated workforces that are focused on ensuring the best possible communications experiences for TDS customers;
  • Focus on steady growth over the long term, while empowering business unit management teams to make operating decisions in a rapidly changing industry;
  • Continuously evaluate and improve processes to ensure that the TDS companies operate as efficiently as possible and make the most effective use of their resources;
  • Maintain a strong balance sheet that gives the TDS companies the flexibility to take advantage of market opportunities;
  • Balance risk and return in the company’s investment position and minimize exposure to economic crises; and
  • Champion ethical practices in all areas of the business and in every relationship with associates and employees, customers and vendors.

In addition, TDS’ fundamental financial goals are to:

  • Grow revenues at rates greater than those of the markets in which we participate. The long-term target is five- to seven-percent compound annual revenue growth;
  • Generate in each business a return on capital (ROC) greater than its weighted average cost of capital; and
  • Maintain strong, investment-grade credit ratings from rating agencies.

TDS carefully managed its liquid investment portfolio in 2008 to limit its exposure to the credit crisis. The company also used portions of its substantial cash reserves to take advantage of attractive opportunities in 2008, including strategic spectrum purchases for its wireless business, and acquisitions to strengthen its wireline footprint.

TDS maintained investment-grade credit ratings from Moody’s Investors Services, Standard & Poor’s Rating Services, and Fitch Ratings.

Continuing Stock Repurchase Programs

TDS continued to buy back stock in 2008, completing a $250 million stock repurchase program begun in June 2007, and beginning a new $250 million stock repurchase program that will continue until 2011. U.S. Cellular® also repurchased common shares in 2008.

Improving Stock Liquidity

To provide greater liquidity and higher visibility for the companies’ stocks, TDS and U.S. Cellular moved their stock listings from the American Stock Exchange to the New York Stock Exchange (NYSE) in 2008. The NYSE’s considerable investments in technology benefit our shareholders, and our bondholders, by providing high-quality, more liquid trading markets, and thereby reducing volatility.

Enhancing Finance and Accounting Processes

Building on its significant work in 2007 to strengthen accounting and reporting processes, TDS in 2008 remediated its final material weakness, related to accounting for income taxes. The company implemented additional processes and internal controls in this area, which are discussed in TDS’ 2008 Form 10-K.

For the past several years, TDS has strengthened its accounting and control teams and placed special emphasis on ensuring that team members in finance, accounting, and other key areas continuously update their understanding of internal and external regulations and processes. As a result, TDS’ collective expertise and skills in these areas are much stronger.