TDS consolidates VIEs in which it has a controlling financial interest as defined by GAAP and is therefore deemed the primary beneficiary. TDS reviews the criteria for a controlling financial interest at the time it enters into agreements and subsequently when events warranting reconsideration occur. These VIEs have risks similar to those described in the “Risk Factors” in this Form 10-Q and TDS' Form 10-K for the year ended December 31, 2025.

TDS consolidates VIEs that are limited partnerships that lease tower space to tenants. A limited partnership is a variable interest entity unless the limited partners hold substantive participating rights or kick-out rights over the general partner. For certain limited partnerships, Array is the general partner and manages the operations. In these partnerships, the limited partners do not have substantive kick-out or participating rights and, further, such limited partners do not have the authority to remove the general partner. Therefore, these limited partnerships also are recognized as VIEs and are consolidated into the TDS financial statements under the variable interest model.

The following table presents the classification and balances of the consolidated VIEs’ assets and liabilities in TDS’ Consolidated Balance Sheet.


	June 30, 2026		December 31, 2025
(Dollars in thousands)
Assets


Accounts receivable	$	771	$	1,116

Other current assets	160		313



Property, plant and equipment, net	11,901		12,471
Operating lease right-of-use assets	20,303		20,564
Other assets and deferred charges	1,163		1,041
Total assets	$	34,298	$	35,505

Liabilities
Current liabilities	$	1,607	$	2,675
Long-term operating lease liabilities	22,118		22,400
Other deferred liabilities and credits	10,658		11,693
Total liabilities	$	34,383	$	36,768

TDS made contributions, loans or advances to its VIEs totaling $3.0 million and $4.5 million during the six months ended June 30, 2026 and 2025, respectively.