TELEPHONE DATA SYSTEMS INC DE

The following discussion addresses certain captions in the consolidated balance sheet and changes therein. This discussion is intended to highlight the significant changes and is not intended to fully reconcile the changes. Notable balance sheet changes during 2023 were as follows:

Accounts receivable, other

Accounts receivable, other decreased $30 million due primarily to the collection of vendor credits from original equipment manufacturers.

Inventory, net

Inventory, net decreased $60 million due primarily to efforts to reduce inventory on hand which was elevated due to lower than expected sales in the fourth quarter of 2022.

Income taxes receivable

Income taxes receivable decreased $55 million due primarily to a federal income tax refund received in the second quarter of 2023 related to the 2020 net operating loss carryback enabled by the CARES Act.

Goodwill

Goodwill decreased $547 million due to the impairment of TDS Telecom's Goodwill in the fourth quarter of 2023. See Note 7 — Intangible Assets in the Notes to Consolidated Financial Statements for additional information.

Accounts payable

Accounts payable decreased $146 million due primarily to the timing of vendor invoice payments related to inventory.

Other current liabilities

Other current liabilities decreased $186 million due primarily to the payment of Auction 107 relocation fees and repayments on the EIP receivables repurchase agreement.

Retained earnings

Retained earnings decreased $676 million due primarily to the net loss incurred for the period, driven by the impairment of TDS Telecom's Goodwill of $547 million and the payment of dividends.