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11MAR201618343100
11MAR201618465399 11MAR201618464613
EXECUTIVE OVERVIEW
Management’s Discussion and Analysis of Financial Condition and Results of Operations (‘‘MD&A’’) should be read in
conjunction with the Financial Statements and Notes to Consolidated Financial Statements for the year ended
December 31, 2015. This report contains statements that are not based on historical facts, including the words
‘‘believes,’’ ‘‘anticipates,’’ ‘‘intends,’’ ‘‘expects’’ and similar words. These statements constitute and represent ‘‘forward
looking statements’’ as this term is defined in the Private Securities Litigation Reform Act of 1995. Such forward looking
statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events or
developments to be significantly different from any future results, events or developments expressed or implied by such
forward looking statements.
TDS uses certain ‘‘non-GAAP financial measures’’ throughout the MD&A. A discussion of the reason TDS uses these
measures and a reconciliation to their most directly comparable GAAP financial measure is included in the Supplemental
Information section within this MD&A.
General
Telephone and Data Systems, Inc. (‘‘TDS’’) is a diversified telecommunications company that provides high-quality
telecommunications services to approximately 6 million customers nationwide. TDS provides wireless services through its
84%-owned subsidiary, United States Cellular Corporation (‘‘U.S. Cellular’’). TDS also provides wireline services, cable
services and hosted and managed services (‘‘HMS’’), through its wholly-owned subsidiary, TDS Telecommunications
Corporation (‘‘TDS Telecom’’). TDS’ segments operate almost entirely in the United States. See Note 18 — Business
Segment Information in the Notes to Consolidated Financial Statements for summary financial information on each
business segment.
2015 Operating Revenues 2015 Adjusted EBITDA*
77%
14%
3% 6%
Wireless
Wireline
Cable
HMS
Wireless
Wireline
Cable
HMS
74%
22%
3%1%
* Represents a non-GAAP financial measure. Refer to Supplemental Information within this MD&A for a reconciliation of this measure.
TDS Mission and Strategy
TDS’ mission is to provide outstanding communications services to its customers and meet the needs of its
shareholders, its people, and its communities. In pursuing this mission, TDS seeks to profitably grow its businesses,
create opportunities for its associates and employees, and steadily build value over the long-term for its shareholders.
Across all of its businesses, TDS is focused on providing exceptional customer experiences through best-in-class
services and products and superior customer service.
TDS’ long-term strategy calls for the majority of its capital to be reinvested in its operating businesses to strengthen their
competitive positions, while still returning value to TDS shareholders through the payment of a regular quarterly cash
dividend and share repurchases.
1
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS