Telephone and Data Systems, Inc. 40 Telephone and Data Systems, Inc. Annual Report 2001 Telephone and Data Systems, Inc. Annual Report 2001 41 The accompanying notes to consolidated financial statements are an integral part of these statements. The accompanying notes to consolidated financial statements are an integral part of these statements. (a) As described in Note 17, the sole asset of TDS Capital I is $154.6 million principal amount of 8.5% subordinated debentures due 2037 from TDS,  and the sole asset of TDS Capital II is $154.6 million principal amount of 8.04% subordinated debentures due 2038 from TDS. December 31, 2001 2000 (Dollars in thousands) Current Liabilities Current portion of long-term debt  $ 67,461 $ 15,639 Notes payable 265,300 499,000 Accounts payable 270,005 275,901 Advance billings and customer deposits 68,044 61,958 Accrued interest 24,264 24,912 Accrued taxes 14,263 17,904 Accrued compensation 56,973 52,314 Other current liabilities 49,906 36,783 816,216 984,411 Deferred Liabilities and Credits Net deferred income tax liability 1,378,280 1,756,217 Other 50,468 45,990 1,428,748 1,802,207 Long-term Debt, excluding current portion 1,507,764 1,172,987 Minority Interest in subsidiaries 467,698 431,110 Company-Obligated Mandatorily Redeemable Preferred Securities of Subsidiary Trust Holding Solely Company Subordinated Debentures (a) 300,000 300,000 Preferred Shares 7,442 7,827 Common Stockholders’ Equity Common Shares, par value $.01 per share; authorized 100,000,000 shares; issued and outstanding 55,659,000 and 55,524,000 shares, respectively 557 555 Series A Common Shares, par value $.01 per share; authorized 25,000,000 shares; issued and outstanding 6,778,000 and 6,880,000 shares, respectively 68 69 Capital in excess of par value 1,826,840 1,816,619 Treasury Shares, at cost, 3,868,000 and 3,716,000 shares, respectively (406,894) (383,501) Accumulated other comprehensive (loss) (352,120) (178,344) Retained earnings 2,450,473 2,680,669 3,518,924 3,936,067 $8,046,792 $8,634,609 Consolidated Balance Sheets – Assets Consolidated Balance Sheets – Liabilities and Stockholders’ Equity December 31, 2001 2000 (Dollars in thousands) Current Assets Cash and cash equivalents $ 140,744 $ 99,019 Accounts receivable  Due from customers, less allowance of $13,657 and $13,664, respectively 202,714 189,078 Other, principally connecting companies 176,447 148,407 Deposit receivable from FCC 56,060 — Materials and supplies, at average cost 71,370 61,450 Other current assets 27,021 29,146 674,356 527,100 Investments Marketable equity securities 2,700,230 4,121,904 Intangible assets Cellular license costs, net of amortization 1,334,523 1,261,404 Telephone franchise and other costs in excess of the underlying book value of subsidiaries, net of amortization 348,696 203,532 Investments in unconsolidated entities 233,678 182,325 Notes receivable 101,887 86,464 Other investments 15,078 13,588 4,734,092 5,869,217 Property, Plant and Equipment, net U.S. Cellular 1,527,805 1,265,347 TDS Telecom 1,030,226 920,678 2,558,031 2,186,025 Other Assets and Deferred Charges 80,313 52,267 $8,046,792 $8,634,609