Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 28, 2019 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-14157 | ||
Entity Registrant Name | TELEPHONE AND DATA SYSTEMS, INC. | ||
Entity Central Index Key | 0001051512 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 36-2669023 | ||
Entity Address, Address Line One | 30 North LaSalle Street, Suite 4000 | ||
Entity Address, City or Town | Chicago | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60602 | ||
City Area Code | (312) | ||
Local Phone Number | 630-1900 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,000,000,000 | ||
Share Price | $ 30.40 | ||
Common Shares | |||
Title of 12(b) Security | Common Shares, $.01 par value | ||
Trading Symbol | TDS | ||
Security Exchange Name | NYSE | ||
Entity Public Float | $ 3,000,000,000 | ||
Entity Common Stock, Shares Outstanding | 107,543,600 | ||
6.625% Senior Notes | |||
Title of 12(b) Security | 6.625% Senior Notes due 2045 | ||
Trading Symbol | TDI | ||
Security Exchange Name | NYSE | ||
6.875% Senior Notes | |||
Title of 12(b) Security | 6.875% Senior Notes due 2059 | ||
Trading Symbol | TDE | ||
Security Exchange Name | NYSE | ||
7.0% Senior Notes | |||
Title of 12(b) Security | 7.000% Senior Notes due 2060 | ||
Trading Symbol | TDJ | ||
Security Exchange Name | NYSE | ||
5.875% Senior Notes | |||
Title of 12(b) Security | 5.875% Senior Notes due 2061 | ||
Trading Symbol | TDA | ||
Security Exchange Name | NYSE | ||
Series A Common Shares | |||
Entity Public Float | $ 3,000,000 | ||
Entity Common Stock, Shares Outstanding | 7,233,800 |
Consolidated Statement Of Opera
Consolidated Statement Of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating revenues | |||
Total operating revenues | $ 5,176 | $ 5,109 | $ 5,044 |
Operating expenses | |||
Selling, general and administrative | 1,717 | 1,694 | 1,689 |
Depreciation, amortization and accretion | 932 | 883 | 844 |
Loss on impairment of goodwill | 0 | 0 | 262 |
(Gain) loss on asset disposals, net | 12 | 9 | 21 |
(Gain) loss on sale of business and other exit costs, net | (1) | 0 | (1) |
(Gain) loss on license sales and exchanges, net | 0 | (18) | (22) |
Total operating expenses | 4,997 | 4,904 | 5,152 |
Operating income (loss) | 179 | 205 | (108) |
Investment and other income (expense) | |||
Equity in earnings of unconsolidated entities | 168 | 160 | 137 |
Interest and dividend income | 29 | 26 | 15 |
Interest expense | (165) | (172) | (170) |
Other, net | 0 | 2 | 4 |
Total investment and other income (expense) | 32 | 16 | (14) |
Income (loss) before income taxes | 211 | 221 | (122) |
Income tax expense (benefit) | 64 | 46 | (279) |
Net income | 147 | 175 | 157 |
Less: Net income attributable to noncontrolling interests, net of tax | 26 | 40 | 4 |
Net income attributable to TDS shareholders | $ 121 | $ 135 | $ 153 |
Basic weighted average shares outstanding (in shares) | 114 | 112 | 111 |
Basic earnings per share attributable to TDS shareholders (in dollars per share) | $ 1.06 | $ 1.20 | $ 1.39 |
Diluted weighted average shares outstanding (in shares) | 116 | 114 | 112 |
Diluted earnings per share attributable to TDS shareholders (in dollars per share) | $ 1.03 | $ 1.17 | $ 1.37 |
Service | |||
Operating revenues | |||
Total operating revenues | $ 4,059 | $ 3,999 | $ 3,979 |
Operating expenses | |||
Cost of goods and services sold | 1,202 | 1,206 | 1,164 |
Equipment and product sales | |||
Operating revenues | |||
Total operating revenues | 1,117 | 1,110 | 1,065 |
Operating expenses | |||
Cost of goods and services sold | $ 1,135 | $ 1,130 | $ 1,195 |
Consolidated Statement Of Compr
Consolidated Statement Of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 147 | $ 175 | $ 157 |
Change related to retirement plan | |||
Net actuarial gains | 1 | 0 | 2 |
Prior service cost | 0 | (10) | (3) |
Amortization of prior service cost | 1 | (1) | (2) |
Amounts included in net periodic benefit cost for the period | 2 | (11) | (3) |
Change in deferred income taxes | (1) | 3 | 1 |
Change related to retirement plan, net of tax | 1 | (8) | (2) |
Net change in accumulated other comprehensive income | 1 | (8) | (2) |
Comprehensive income | 148 | 167 | 155 |
Less: Net income attributable to noncontrolling interests, net of tax | 26 | 40 | 4 |
Comprehensive income attributable to TDS shareholders | $ 122 | $ 127 | $ 151 |
Consolidated Statement Of Cash
Consolidated Statement Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net income | $ 147 | $ 175 | $ 157 |
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities | |||
Depreciation, amortization and accretion | 932 | 883 | 844 |
Bad debts expense | 112 | 101 | 95 |
Stock-based compensation expense | 59 | 54 | 46 |
Deferred income taxes, net | 34 | 33 | (369) |
Equity in earnings of unconsolidated entities | (168) | (160) | (137) |
Distributions from unconsolidated entities | 162 | 153 | 136 |
Loss on impairment of goodwill | 0 | 0 | 262 |
(Gain) loss on asset disposals, net | 12 | 9 | 21 |
(Gain) loss on sale of business and other exit costs, net | (1) | 0 | (1) |
(Gain) loss on license sales and exchanges, net | 0 | (18) | (22) |
Other operating activities | 4 | 4 | 3 |
Changes in assets and liabilities from operations | |||
Accounts receivable | (49) | (39) | (61) |
Equipment installment plans receivable | (97) | (149) | (261) |
Inventory | (19) | (5) | 6 |
Accounts payable | (60) | 2 | (7) |
Customer deposits and deferred revenues | (9) | 8 | (4) |
Accrued taxes | (17) | (29) | 37 |
Other assets and liabilities | (26) | (5) | 31 |
Net cash provided by operating activities | 1,016 | 1,017 | 776 |
Cash flows from investing activities | |||
Cash paid for additions to property, plant and equipment | (957) | (776) | (685) |
Cash paid for acquisitions and licenses | (346) | (16) | (218) |
Cash received from investments | 29 | 100 | 0 |
Cash paid for investments | (11) | (17) | (100) |
Cash received from divestitures and exchanges | 41 | 29 | 21 |
Other investing activities | (5) | 0 | 1 |
Net cash used in investing activities | (1,249) | (680) | (981) |
Cash flows from financing activities | |||
Repayment of long-term debt | (118) | (20) | (17) |
TDS Common Shares reissued for benefit plans, net of tax payments | (6) | 42 | 4 |
U.S. Cellular Common Shares reissued for benefit plans, net of tax payments | (9) | 18 | 1 |
Repurchase of U.S. Cellular Common Shares | (21) | 0 | 0 |
Dividends paid to TDS shareholders | (75) | (72) | (69) |
Distributions to noncontrolling interests | (4) | (6) | (4) |
Other financing activities | 13 | 6 | 8 |
Net cash used in financing activities | (220) | (32) | (77) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (453) | 305 | (282) |
Cash, cash equivalents and restricted cash | |||
Beginning of period | 927 | 622 | 904 |
End of period | $ 474 | $ 927 | $ 622 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 465 | $ 921 |
Short-term investments | 0 | 17 |
Accounts receivable | ||
Customers and agents, less allowances of $74 and $71, respectively | 1,005 | 992 |
Other, less allowances of $2 and $2, respectively | 119 | 107 |
Inventory, net | 169 | 150 |
Prepaid expenses | 98 | 103 |
Income taxes receivable | 36 | 12 |
Other current assets | 29 | 28 |
Total current assets | 1,921 | 2,330 |
Assets held for sale | 0 | 54 |
Licenses | 2,480 | 2,195 |
Goodwill | 547 | 509 |
Other intangible assets, net of accumulated amortization of $167 and $168, respectively | 239 | 253 |
Investments in unconsolidated entities | 488 | 480 |
Property, plant and equipment | ||
In service and under construction | 12,864 | 12,074 |
Less: Accumulated depreciation and amortization | 9,337 | 8,728 |
Property, plant and equipment, net | 3,527 | 3,346 |
Operating lease right-of-use assets | 972 | 0 |
Other assets and deferred charges | 607 | 616 |
Total assets | 10,781 | 9,783 |
Current liabilities | ||
Current portion of long-term debt | 10 | 21 |
Accounts payable | 374 | 365 |
Customer deposits and deferred revenues | 189 | 197 |
Accrued interest | 11 | 11 |
Accrued taxes | 41 | 44 |
Accrued compensation | 121 | 127 |
Short-term operating lease liabilities | 116 | 0 |
Other current liabilities | 100 | 114 |
Total current liabilities | 962 | 879 |
Liabilities held for sale | 0 | 1 |
Deferred liabilities and credits | ||
Deferred income tax liability, net | 676 | 640 |
Long-term operating lease liabilities | 931 | 0 |
Other deferred liabilities and credits | 481 | 541 |
Long-term debt, net | 2,316 | 2,418 |
Commitments and contingencies | ||
Noncontrolling interests with redemption features | 11 | 11 |
TDS shareholders’ equity | ||
Series A Common and Common Shares Authorized 290 shares (25 Series A Common and 265 Common Shares) Issued 133 shares (7 Series A Common and 126 Common Shares) Outstanding 115 shares (7 Series A Common and 108 Common Shares) and 114 shares (7 Series A Common and 107 Common Shares), respectively Par Value ($.01 per share) | 1 | 1 |
Capital in excess of par value | 2,468 | 2,432 |
Treasury shares, at cost, 18 and 19 Common Shares, respectively | (479) | (519) |
Accumulated other comprehensive loss | (9) | (10) |
Retained earnings | 2,672 | 2,656 |
Total TDS shareholders’ equity | 4,653 | 4,560 |
Noncontrolling interests | 751 | 733 |
Total equity | 5,404 | 5,293 |
Total liabilities and equity | $ 10,781 | $ 9,783 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Customer and agent allowances | $ 74 | $ 71 |
Other allowances | 2 | 2 |
Investments | ||
Other intangible assets accumulated amortization | $ 167 | $ 168 |
TDS shareholders’ equity | ||
Authorized shares (in shares) | 290,000,000 | 290,000,000 |
Issued shares (in shares) | 133,000,000 | 133,000,000 |
Outstanding shares (in shares) | 115,000,000 | 114,000,000 |
Variable Interest Entities VIEs | ||
Total VIE assets that can be used to settle only the VIEs' obligations | $ 915 | $ 848 |
Total VIE liabilities for which creditors have no recourse | $ 20 | $ 21 |
Series A Common Shares | ||
TDS shareholders’ equity | ||
Authorized shares (in shares) | 25,000,000 | 25,000,000 |
Issued shares (in shares) | 7,000,000 | 7,000,000 |
Outstanding shares (in shares) | 7,000,000 | 7,000,000 |
Par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common Shares | ||
TDS shareholders’ equity | ||
Authorized shares (in shares) | 265,000,000 | 265,000,000 |
Issued shares (in shares) | 126,000,000 | 126,000,000 |
Outstanding shares (in shares) | 108,000,000 | 107,000,000 |
Par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Treasury shares (in shares) | 18,000,000 | 19,000,000 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Millions | Total | Series A Common and Common shares | Capital in excess of par value | Treasury shares | Accumulated other comprehensive income (loss) | Retained earnings | Total TDS shareholders' equity | Preferred shares | Noncontrolling interests |
Beginning balance at Dec. 31, 2016 | $ 4,750 | $ 1 | $ 2,386 | $ (698) | $ 1 | $ 2,454 | $ 4,144 | $ 1 | $ 605 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income attributable to TDS shareholders | 153 | 153 | 153 | ||||||
Net income attributable to noncontrolling interests classified as equity | 4 | 0 | 4 | ||||||
Other comprehensive income (loss) | (2) | (2) | (2) | ||||||
TDS Common and Series A Common Share dividends | (69) | (69) | (69) | ||||||
Redemption of Preferred shares | (1) | 0 | (1) | ||||||
Dividend reinvestment plan | 12 | 13 | (1) | 12 | |||||
Incentive and compensation plans | 4 | 16 | (12) | 4 | |||||
Adjust investment in subsidiaries for repurchases, issuances and other compensation plans | 31 | 13 | 13 | 18 | |||||
Stock-based compensation awards | 14 | 14 | 14 | ||||||
Distributions to noncontrolling interests | (4) | 0 | (4) | ||||||
Ending balance at Dec. 31, 2017 | 4,892 | 1 | 2,413 | (669) | (1) | 2,525 | 4,269 | $ 0 | 623 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Cumulative effect of accounting changes | 195 | (1) | 165 | 164 | 31 | ||||
Net income attributable to TDS shareholders | 135 | 135 | 135 | ||||||
Net income attributable to noncontrolling interests classified as equity | 28 | 0 | 28 | ||||||
Other comprehensive income (loss) | (8) | (8) | (8) | ||||||
TDS Common and Series A Common Share dividends | (72) | (72) | (72) | ||||||
Dividend reinvestment plan | 12 | 1 | 25 | (14) | 12 | ||||
Incentive and compensation plans | 42 | 125 | (83) | 42 | |||||
Adjust investment in subsidiaries for repurchases, issuances and other compensation plans | 55 | 1 | 1 | 54 | |||||
Stock-based compensation awards | 17 | 17 | 17 | ||||||
Distributions to noncontrolling interests | (3) | 0 | (3) | ||||||
Ending balance at Dec. 31, 2018 | 5,293 | 1 | 2,432 | (519) | (10) | 2,656 | 4,560 | 733 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Cumulative effect of accounting changes | 2 | 2 | 2 | ||||||
Net income attributable to TDS shareholders | 121 | 121 | 121 | ||||||
Net income attributable to noncontrolling interests classified as equity | 26 | 0 | 26 | ||||||
Other comprehensive income (loss) | 1 | 1 | 1 | ||||||
TDS Common and Series A Common Share dividends | (75) | (75) | (75) | ||||||
Dividend reinvestment plan | 15 | 1 | 20 | (6) | 15 | ||||
Incentive and compensation plans | (6) | 20 | (26) | (6) | |||||
Adjust investment in subsidiaries for repurchases, issuances and other compensation plans | 12 | 17 | 17 | (5) | |||||
Stock-based compensation awards | 18 | 18 | 18 | ||||||
Distributions to noncontrolling interests | (3) | 0 | (3) | ||||||
Ending balance at Dec. 31, 2019 | $ 5,404 | $ 1 | $ 2,468 | $ (479) | $ (9) | $ 2,672 | $ 4,653 | $ 751 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
TDS Common and Series A Common Share dividends (in dollars per share) | $ 0.66 | $ 0.64 | $ 0.62 |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Recent Accounting Pronouncements | Note 1 Summary of Significant Accounting Policies and Recent Accounting Pronouncements Nature of Operations Telephone and Data Systems, Inc. (TDS) is a diversified telecommunications company providing high-quality communications services to customers with 4.9 million wireless connections and 1.2 million wireline and cable connections at December 31, 2019 . TDS conducts all of its wireless operations through its 82% -owned subsidiary, United States Cellular Corporation (U.S. Cellular). TDS provides wireline and cable services through its wholly-owned subsidiary, TDS Telecommunications LLC (TDS Telecom). TDS has the following reportable segments: U.S. Cellular, Wireline, and Cable. TDS’ non-reportable other business activities are presented as “Corporate, Eliminations and Other”, which includes the operations of TDS' wholly-owned hosted and managed services (HMS) subsidiary, which operates under the OneNeck IT Solutions brand, and its wholly-owned printing subsidiary Suttle-Straus, Inc. (Suttle-Straus). HMS' and Suttle-Straus' financial results were not significant to TDS' operations. All of TDS’ segments operate only in the United States. See Note 20 — Business Segment Information for summary financial information on each business segment. Principles of Consolidation The accounting policies of TDS conform to accounting principles generally accepted in the United States of America (GAAP) as set forth in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC). Unless otherwise specified, references to accounting provisions and GAAP in these notes refer to the requirements of the FASB ASC. The consolidated financial statements include the accounts of TDS and subsidiaries in which it has a controlling financial interest, including U.S. Cellular and TDS Telecom. In addition, the consolidated financial statements include certain entities in which TDS has a variable interest that requires consolidation under GAAP. See Note 16 — Variable Interest Entities for additional information relating to TDS’ VIEs. All material intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (a) the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and (b) the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Significant estimates are involved in accounting for goodwill, indefinite-lived intangible assets and income taxes. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include cash and highly liquid investments with original maturities of three months or less. Cash and cash equivalents subject to contractual restrictions are classified as restricted cash. The following table provides a reconciliation of Cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheet to the total of the amounts in the Consolidated Statement of Cash Flows. December 31, 2019 2018 (Dollars in millions) Cash and cash equivalents $ 465 $ 921 Restricted cash included in Other current assets 9 6 Cash, cash equivalents and restricted cash in the statement of cash flows $ 474 $ 927 Accounts Receivable and Allowance for Doubtful Accounts U.S. Cellular’s accounts receivable consist primarily of amounts owed by customers for wireless services and equipment sales, including sales of certain devices and accessories under installment plans, by agents for sales of equipment to them and by other wireless carriers whose customers have used U.S. Cellular’s wireless systems. TDS Telecom’s accounts receivable primarily consist of amounts owed by customers for services and products provided, by state and federal governments for grants and support funds, and by interexchange carriers for long-distance traffic, which TDS Telecom carries on its network. The allowance for doubtful accounts is the best estimate of the amount of probable credit losses related to existing billed and unbilled accounts receivable. The allowance is estimated based on historical experience, account aging and other factors that could affect collectability. Accounts receivable balances are reviewed on either an aggregate or individual basis for collectability depending on the type of receivable. When it is probable that an account balance will not be collected, the account balance is charged against the allowance for doubtful accounts. TDS does not have any off-balance sheet credit exposure related to its customers. Inventory Inventory consists primarily of wireless devices stated at the lower of cost, which approximates cost determined on the first-in first-out basis, or net realizable value. Net realizable value is determined by reference to the stand-alone selling price. Licenses Licenses consist of direct and incremental costs incurred in acquiring Federal Communications Commission (FCC) wireless spectrum licenses that provide TDS with the exclusive right to utilize designated radio spectrum within specific geographic service areas to provide wireless service. Although wireless spectrum licenses are issued for a fixed period of time, generally ten years , or in some cases twelve or fifteen years , the FCC has granted license renewals routinely and at a nominal cost. The wireless spectrum licenses held by TDS expire at various dates. TDS believes that it is probable that its future wireless spectrum license renewal applications will be granted. TDS determined that there are currently no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of the wireless spectrum licenses. Therefore, TDS has determined that wireless spectrum licenses are indefinite-lived intangible assets. U.S. Cellular performs its annual impairment assessment of wireless spectrum licenses as of November 1 of each year or more frequently if there are events or circumstances that cause U.S. Cellular to believe it is more likely than not that the carrying value of wireless spectrum licenses exceeds fair value. For purposes of its impairment testing, U.S. Cellular separated its FCC wireless spectrum licenses into eight units of accounting. The eight units of accounting consisted of one unit of accounting for developed operating market wireless spectrum licenses (built wireless spectrum licenses) and seven geographic non-operating market wireless spectrum licenses (unbuilt wireless spectrum licenses). U.S. Cellular performed a quantitative impairment assessment in 2019 and a qualitative impairment assessment in 2018 to determine whether the wireless spectrum licenses were impaired. Based on the impairment assessments performed, U.S. Cellular did no t have an impairment of its wireless spectrum licenses in 2019 or 2018 . See Note 8 — Intangible Assets for additional details related to wireless spectrum licenses. Goodwill TDS has Goodwill as a result of its acquisition of wireline and cable companies. TDS performs its annual impairment assessment of Goodwill as of November 1 of each year or more frequently if there are events or circumstances that cause TDS to believe it is more likely than not that the carrying value of individual reporting units exceeds their respective fair values. Goodwill impairment loss will be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value. The loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. For purposes of conducting its Goodwill impairment tests, TDS Telecom identified two reporting units: Wireline and Cable. The discounted cash flow approach and guideline public company method were used to value the Wireline and Cable reporting units for the annual impairment tests. Based on the annual impairment assessments performed, Wireline and Cable did no t have an impairment of their Goodwill in 2019 or 2018 . In 2017, TDS recorded goodwill impairments related to its U.S. Cellular and HMS reporting units, which reduced the carrying value of their respective Goodwill to zero . See Note 8 — Intangible Assets for additional details related to Goodwill. Franchise Rights TDS Telecom has franchise rights as a result of acquisitions of cable businesses. Franchise rights are intangible assets that provide their holder with the right to operate a business in a certain geographical location as sanctioned by the franchiser, usually a government agency. Franchise rights are generally granted for ten years and may be renewed for additional terms upon approval by the granting authority. TDS anticipates that future renewals of its franchise rights will be granted. Effective January 1, 2018, TDS prospectively changed its estimated useful life for franchise rights from indefinite-lived to fifteen years , due primarily to the effects of increasing competition and advancements in technology for delivering and consuming video programming. Commensurate with this change, TDS reviewed its franchise rights for impairment, and noted there was no impairment as of January 1, 2018. As a result, Depreciation, amortization and accretion increased $17 million, calculated on a straight-line basis, and Net income decreased $13 million or $0.11 per share (Basic and Diluted) for the year ended December 31, 2018. TDS reviews franchise rights for impairment whenever events or changes in circumstances indicate that the assets might be impaired. TDS re-evaluates the useful life of franchise rights each year to determine if changes in technology or other business changes would warrant a revision of its remaining useful life. See Note 8 — Intangible Assets for additional details related to franchise rights. Investments in Unconsolidated Entities For its equity method investments for which financial information is readily available, TDS records its equity in the earnings of the entity in the current period. For its equity method investments for which financial information is not readily available, TDS records its equity in the earnings of the entity on a one quarter lag basis. Property, Plant and Equipment Property, plant and equipment is stated at the original cost of construction or purchase including capitalized costs of certain taxes, payroll-related expenses, interest and estimated costs to remove the assets. Expenditures that enhance the productive capacity of assets in service or extend their useful lives are capitalized and depreciated. Expenditures for maintenance and repairs of assets in service are charged to Cost of services or Selling, general and administrative expense, as applicable. Retirements and disposals of assets are recorded by removing the original cost of the asset (along with the related accumulated depreciation) from plant in service and recording it, together with proceeds, if any, and net removal costs (removal costs less an applicable accrued asset retirement obligation and salvage value realized), as a gain or loss, as appropriate. Certain Wireline segment assets use the group depreciation method. Accordingly, when a group method asset is retired in the ordinary course of business, the original cost of the asset and accumulated depreciation in the same amount are removed, with no gain or loss recognized on the disposition. TDS capitalizes certain costs of developing new information systems. Software licenses that qualify for capitalization as an asset are accounted for as the acquisition of an intangible asset and the incurrence of a liability to the extent that the license fees are not fully paid at acquisition. Depreciation and Amortization Depreciation is provided using the straight-line method over the estimated useful life of the related asset, except for certain Wireline segment assets, which use the group depreciation method. The group depreciation method develops a depreciation rate based on the average useful life of a specific group of assets, rather than each asset individually. TDS depreciates leasehold improvement assets over periods ranging from one year to thirty years ; such periods approximate the shorter of the assets’ economic lives or the specific lease terms. Useful lives of specific assets are reviewed throughout the year to determine if changes in technology or other business changes would warrant accelerating the depreciation of those specific assets. There were no material changes to the assigned useful lives of the various categories of property, plant and equipment in 2019 , 2018 or 2017 . However, depreciation for certain specific assets was accelerated due to changes in technology. See Note 10 — Property, Plant and Equipment for additional details related to useful lives. Impairment of Long-Lived Assets TDS reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the assets might be impaired. U.S. Cellular has one asset group and TDS Telecom has two asset groups for purposes of assessing property, plant and equipment for impairment based on the integrated nature of its network, assets and operations. The cash flows generated by each of these groups is the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. Leases A lease is generally present in a contract if the lessee controls the use of identified property, plant or equipment for a period of time in exchange for consideration. See Note 11 — Leases for additional details related to leases. Agent Liabilities U.S. Cellular has relationships with agents, which are independent businesses that obtain customers for U.S. Cellular. At December 31, 2019 and 2018 , U.S. Cellular had accrued $59 million and $63 million , respectively, in agent related liabilities. These amounts are included in Other current liabilities in the Consolidated Balance Sheet. Debt Issuance Costs Debt issuance costs include underwriters’ and legal fees and other charges related to issuing and renewing various borrowing instruments and other long–term agreements, and are amortized over the respective term of each instrument. Debt issuance costs related to TDS’ and U.S. Cellular's revolving credit agreements and U.S. Cellular's receivables securitization agreement are recorded in Other assets and deferred charges in the Consolidated Balance Sheet. All other debt issuance costs are presented as an offset to the related debt obligation in the Consolidated Balance Sheet. Asset Retirement Obligations TDS records asset retirement obligations for the fair value of legal obligations associated with asset retirements and a corresponding increase in the carrying amount of the related long-lived asset in the period in which the obligations are incurred. In periods subsequent to initial measurement, TDS recognizes changes in the liability resulting from the passage of time and updates to the timing or the amount of the original estimates. The liability is accreted to its estimated settlement date value over the period to the estimated settlement date. The change in the carrying amount of the long-lived asset is depreciated over the average remaining life of the related asset. See Note 12 — Asset Retirement Obligations for additional information. Treasury Shares Common Shares repurchased by TDS are recorded at cost as treasury shares and result in a reduction of equity. When treasury shares are reissued, TDS determines the cost using the first-in, first-out cost method. The difference between the cost of the treasury shares and reissuance price is included in Capital in excess of par value or Retained earnings. Revenue Recognition Revenues from sales of equipment and products are recognized when control has transferred to the customer, agent or third-party distributor. Service revenues are recognized as the related service is provided. See Note 2 — Revenue Recognition for additional information on TDS' policies related to Revenues. Advertising Costs TDS expenses advertising costs as incurred. Advertising costs totaled $227 million , $230 million and $228 million in 2019 , 2018 and 2017 , respectively. Income Taxes TDS files a consolidated federal income tax return. Deferred taxes are computed using the liability method, whereby deferred tax assets are recognized for future deductible temporary differences and operating loss carryforwards, and deferred tax liabilities are recognized for future taxable temporary differences. Both deferred tax assets and liabilities are measured using the enacted tax rates in effect when the temporary differences are expected to reverse. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. TDS evaluates income tax uncertainties, assesses the probability of the ultimate settlement with the applicable taxing authority and records an amount based on that assessment. Deferred taxes are reported as a net non-current asset or liability by jurisdiction. Any corresponding valuation allowance to reduce the amount of deferred tax assets is also recorded as non-current. See Note 5 — Income Taxes for additional information. Stock-Based Compensation and Other Plans TDS has established long-term incentive plans, dividend reinvestment plans, and a non-employee director compensation plan. The dividend reinvestment plan of TDS is not considered a compensatory plan and, therefore, recognition of compensation costs for grants made under this plan is not required. All other plans are considered compensatory plans; therefore, recognition of costs for grants made under these plans is required. TDS recognizes stock compensation expense based upon the fair value of the specific awards granted using established valuation methodologies. The amount of stock compensation cost recognized on either a straight-line basis or graded attribution method is based on the portion of the award that is expected to vest over the requisite service period, which generally represents the vesting period. Stock-based compensation cost recognized has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. See Note 19 — Stock-Based Compensation for additional information. Recently Issued Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 requires entities to use a new forward-looking, expected loss model to estimate credit losses. It also requires additional disclosure relating to the credit quality of trade and other receivables, including information relating to management’s estimate of credit allowances. TDS is required to adopt ASU 2016-13 on January 1, 2020, using the modified retrospective approach. The adoption of ASU 2016-13 is not expected to have a significant impact on TDS' financial position or results of operations. In August 2018, the FASB issued Accounting Standards Update 2018-15, Intangibles - Goodwill and Other - Internal-Use Software: Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the existing guidance for capitalizing implementation costs for an arrangement that has a software license. The service element of a hosting arrangement will continue to be expensed as incurred. Any capitalized implementation costs will be amortized over the period of the service contract. TDS is required to adopt ASU 2018-15 on January 1, 2020, either retrospectively or prospectively to eligible costs incurred on or after the date that this guidance is first applied. The adoption of ASU 2018-15 is not expected to have a significant impact on TDS' financial position or results of operations. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 2 Revenue Recognition Change in Accounting Policy In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers and subsequently amended the standard with several Accounting Standards Updates, collectively referred to as ASC 606. TDS adopted and applied the provisions of ASC 606 as of January 1, 2018, using a modified retrospective method. Under this method, the new accounting standard is applied only to the most recent period presented, recognizing the cumulative effect of the accounting change as an adjustment to the beginning balance of retained earnings. Accordingly, prior periods have not been recast to reflect the new accounting standard. The cumulative effect of applying the provisions of ASC 606 was an increase of $164 million to retained earnings as of January 1, 2018. As a practical expedient, TDS groups similar contracts or similar performance obligations together into portfolios of contracts or performance obligations if doing so does not result in a significant difference from accounting for the individual contracts discretely. TDS applies this grouping method for the following types of transactions: device activation fees, contract acquisition costs, contract fulfillment costs, and certain customer promotions. Contract portfolios are recognized over the respective expected customer lives or terms of the contracts. Nature of goods and services The following is a description of principal activities from which TDS generates its revenues. Services and products Nature, timing of satisfaction of performance obligations, and significant payment terms Wireless services Wireless service includes voice, messaging and data services. Revenue is recognized in Service revenues as wireless service is provided to the customer. Wireless services generally are billed and paid in advance on a monthly basis. Wireless devices and accessories U.S. Cellular offers a comprehensive range of wireless devices such as handsets, tablets, mobile hotspots, home phones and routers for use by its customers, as well as accessories. U.S. Cellular also sells wireless devices to agents and other third-party distributors for resale. U.S. Cellular frequently discounts wireless devices sold to new and current customers. U.S. Cellular also offers customers the option to purchase certain devices and accessories under installment contracts over a specified time period. For certain equipment installment plans, after a specified period of time, the customer may have the right to upgrade to a new device. Such upgrades require the customer to enter into an equipment installment contract for the new device, and transfer the existing device to U.S. Cellular. U.S. Cellular recognizes revenue in Equipment and product sales revenues when control of the device or accessory is transferred to the customer, agent or third-party distributor, which is generally upon delivery. Wireless roaming U.S. Cellular receives roaming revenues when other wireless carriers’ customers use U.S. Cellular’s wireless systems. U.S. Cellular recognizes revenue in Service revenues when the roaming service is provided. Wireless Eligible Telecommunications Carrier (ETC) Revenues Telecommunications companies may be designated by states, or in some cases by the FCC, as an ETC to receive support payments from the Universal Service Fund if they provide specified services in “high cost” areas. ETC revenues recognized in the reporting period represent the amounts which U.S. Cellular is entitled to receive for such period, as determined and approved in connection with U.S. Cellular’s designation as an ETC in various states. Wireless tower rents U.S. Cellular receives tower rental revenues when another carrier leases tower space on a U.S. Cellular owned tower. U.S. Cellular recognizes revenue in Service revenues in the period during which the services are provided. Wireline services Wireline services include broadband, video and voice services. Revenue is recognized in Service revenues as service is provided to the customer. Wireline services are generally billed and paid in advance on a monthly basis. Wireline wholesale revenues Wholesale revenues include network access services primarily to interexchange and wireless carriers for carrying data and voice traffic on TDS Telecom’s network, special access services and state and federal support payments, including A-CAM. Wholesale revenues are recorded as the related service is provided. Cable services Cable services include broadband, video and voice services. Revenue is recognized in Service revenues as service is provided to the customer. Cable services are generally billed and paid in advance on a monthly basis. IT hardware sales TDS recognizes equipment revenue when it no longer has any requirements to perform, when title has passed and when the products are accepted by the customer. Hosted and managed services HMS Service revenues consist of cloud and hosting solutions, managed services, Enterprise Resource Planning (ERP) application management, colocation services, and IT hardware related maintenance and professional services. Revenues related to these services are recognized as services are provided. Significant Judgments Revenues from sales of equipment and products are recognized when control has transferred to the customer, agent or third-party distributor. Service revenues are recognized as the related service is provided. Services are deemed to be highly interrelated when the method and timing of transfer and performance risk are the same. Highly interrelated services that are determined to not be distinct have been grouped into a single performance obligation. Each month of services promised is a performance obligation. The series of monthly service performance obligations promised over the course of the contract are combined into a single performance obligation for purposes of the allocation. TDS has made judgments regarding transaction price, including but not limited to issues relating to variable consideration, time value of money and returns. When determined to be significant in the context of the contract, these items are considered in the valuation of transaction price at contract inception or modification, as appropriate. Multiple Performance Obligations U.S. Cellular and TDS Telecom sell bundled service and equipment offerings. In these instances, TDS recognizes its revenue based on the relative standalone selling prices for each distinct service or equipment performance obligation, or bundles thereof. TDS estimates the standalone selling price of the device or accessory to be its retail price excluding discounts. TDS estimates the standalone selling price of wireless service to be the price offered to customers on month-to-month contracts. Equipment Installment Plans U.S. Cellular equipment revenue under equipment installment plan contracts is recognized at the time the device is delivered to the customer for the amount allocated to the equipment. Incentives Discounts, incentives, and rebates to agents and end customers that are deemed cash are recognized as a reduction of Operating revenues concurrently with the associated revenue. From time to time, U.S. Cellular may offer certain promotions to incentivize customers to switch to, or to purchase additional services from, U.S. Cellular. Under these types of promotions, an eligible customer may receive an incentive in the form of a discount off additional services purchased shown as a credit to the customer’s monthly bill. U.S. Cellular accounts for the future discounts as material rights at the time of the initial transaction by allocating and deferring revenue based on the relative proportion of the future discounts in comparison to the aggregate initial purchase. The deferred revenue will be recognized as service revenue in future periods. Amounts Collected from Customers and Remitted to Governmental Authorities TDS records amounts collected from customers and remitted to governmental authorities on a net basis within a liability account if the amount is assessed upon the customer and TDS merely acts as an agent in collecting the amount on behalf of the imposing governmental authority. If the amount is assessed upon TDS, then amounts collected from customers are recorded in Service revenues and amounts remitted to governmental authorities are recorded in Selling, general and administrative expenses in the Consolidated Statement of Operations. The amounts recorded gross in revenues that are billed to customers and remitted to governmental authorities totaled $78 million , $90 million and $80 million for 2019 , 2018 and 2017 , respectively. Disaggregation of Revenue In the following table, TDS' revenues are disaggregated by type of service, which represents the relevant categorization of revenues for TDS' reportable segments, and timing of recognition. Service revenues are recognized over time and Equipment sales are point in time. TDS Telecom Year Ended December 31, 2019 U.S. Cellular Wireline Cable TDS Telecom Total 1 Corporate, Eliminations and Other Total (Dollars in millions) Revenues from contracts with customers: Type of service: Retail service $ 2,650 $ — $ — $ — $ — $ 2,650 Inbound roaming 174 — — — — 174 Residential — 328 205 533 — 533 Commercial — 168 41 209 — 209 Wholesale — 185 — 185 — 185 Other service 137 — — (1 ) 72 208 Service revenues from contracts with customers 2,961 681 246 926 72 3,959 Equipment and product sales 987 1 — 1 129 1,117 Total revenues from contracts with customers 2 $ 3,948 $ 682 $ 246 $ 927 $ 201 $ 5,076 TDS Telecom Year Ended December 31, 2018 U.S. Cellular Wireline Cable TDS Telecom Total 1 Corporate, Eliminations and Other Total (Dollars in millions) Revenues from contracts with customers: Type of service: Retail service $ 2,623 $ — $ — $ — $ — $ 2,623 Inbound roaming 154 — — — — 154 Residential — 321 188 509 — 509 Commercial — 184 42 226 — 226 Wholesale — 191 — 191 — 191 Other service 135 — — (1 ) 72 206 Service revenues from contracts with customers 2,912 696 230 925 72 3,909 Equipment and product sales 989 2 — 2 119 1,110 Total revenues from contracts with customers 2 $ 3,901 $ 698 $ 230 $ 927 $ 191 $ 5,019 Numbers may not foot due to rounding. 1 TDS Telecom Total includes eliminations between the Wireline and Cable segments. 2 Revenue line items in this table will not agree to amounts presented in the Consolidated Statement of Operations as the amounts in this table only include revenue resulting from contracts with customers. Contract Balances For contracts that involve multiple element service and equipment offerings, the transaction price is allocated to each performance obligation based on its relative standalone selling price. When payment is collected in advance of delivery of goods or services, a contract liability is recorded. A contract asset is recorded when revenue is recognized in advance of TDS’ right to receive consideration. Once there is an unconditional right to receive the consideration, TDS bills the customer under the terms of the respective contract and the amounts are recorded as receivables. TDS recognizes Equipment and product sales revenue when the equipment is delivered to the customer and a corresponding contract asset or liability is recorded for the difference between the amount of revenue recognized and the amount billed to the customer in cases where discounts are offered. The contract asset or liability is reduced over the contract term as service is provided and billed to the customer. The following table provides balances for contract assets from contracts with customers, which are recorded in Other current assets and Other assets and deferred charges in the Consolidated Balance Sheet, and contract liabilities from contracts with customers, which are recorded in Customer deposits and deferred revenues and Other deferred liabilities and credits in the Consolidated Balance Sheet. December 31, 2019 December 31, 2018 (Dollars in millions) Contract assets $ 10 $ 11 Contract liabilities 1 $ 197 $ 187 1 The contract liability balance at December 31, 2018 differs from the amount reported in Note 2 — Revenue Recognition of the 2018 Form 10-K, as the previously reported amount included certain lease-related balances that did not result from contracts with customers. Revenue recognized related to contract liabilities existing at January 1, 2019 was $164 million for the year ended December 31, 2019 . Transaction price allocated to the remaining performance obligations The following table includes estimated service revenues expected to be recognized related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. These estimates represent service revenues to be recognized when services are delivered to customers pursuant to service plan contracts and under certain roaming agreements with other carriers. These estimates are based on contracts in place as of December 31, 2019 , and may vary from actual results. As practical expedients, revenue related to contracts of less than one year, generally month-to-month contracts, and contracts with a fixed per-unit price and variable quantity, are excluded from these estimates. Service Revenues (Dollars in millions) 2020 $ 367 2021 167 Thereafter 202 Total $ 736 Contract Cost Assets TDS expects that commission fees paid as a result of obtaining contracts are recoverable and therefore TDS capitalizes these costs. As a practical expedient, costs with an amortization period of one year or less are not capitalized. TDS also incurs fulfillment costs, such as installation costs, where there is an expectation that a future benefit will be realized. Capitalized commission fees and fulfillment costs are amortized based on the timing of transfer of the goods or services to which the assets relate, typically the contract term. Contract cost asset balances, which are recorded in Other assets and deferred charges in the Consolidated Balance Sheet, were as follows: December 31, 2019 December 31, 2018 (Dollars in millions) Costs to obtain contracts Sales commissions $ 146 $ 154 Fulfillment costs Installation costs 11 10 Total contract cost assets $ 157 $ 164 Amortization of contract cost assets was $126 million and $124 million for the year ended December 31, 2019 and December 31, 2018 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 3 Fair Value Measurements As of December 31, 2019 and 2018 , TDS did not have any material financial or nonfinancial assets or liabilities that were required to be recorded at fair value in its Consolidated Balance Sheet in accordance with GAAP. The provisions of GAAP establish a fair value hierarchy that contains three levels for inputs used in fair value measurements. Level 1 inputs include quoted market prices for identical assets or liabilities in active markets. Level 2 inputs include quoted market prices for similar assets and liabilities in active markets or quoted market prices for identical assets and liabilities in inactive markets. Level 3 inputs are unobservable. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. A financial instrument’s level within the fair value hierarchy is not representative of its expected performance or its overall risk profile and, therefore, Level 3 assets are not necessarily higher risk than Level 2 assets or Level 1 assets. TDS has applied the provisions of fair value accounting for purposes of computing the fair value of financial instruments for disclosure purposes as displayed below. Level within the Fair Value Hierarchy December 31, 2019 December 31, 2018 Book Value Fair Value Book Value Fair Value (Dollars in millions) Cash and cash equivalents 1 $ 465 $ 465 $ 921 $ 921 Short-term investments 1 — — 17 17 Long-term debt Retail 2 1,753 1,796 1,753 1,596 Institutional 2 534 594 534 531 Other 2 84 84 182 182 The fair values of Cash and cash equivalents and Short-term investments approximate their book values due to the short-term nature of these financial instruments. Long-term debt excludes lease obligations, other installment arrangements, the current portion of Long-term debt and debt financing costs. The fair value of “Retail” Long-term debt was estimated using market prices for TDS’ 7.0% Senior Notes, 6.875% Senior Notes, 6.625% Senior Notes and 5.875% Senior Notes, and U.S. Cellular’s 7.25% 2063 Senior Notes, 7.25% 2064 Senior Notes and 6.95% Senior Notes. TDS’ “Institutional” debt consists of U.S. Cellular’s 6.7% Senior Notes which are traded over the counter. TDS’ “Other” debt consists of a senior term loan credit agreement and other borrowings with financial institutions. TDS estimated the fair value of its Institutional and Other debt through a discounted cash flow analysis using the interest rates or estimated yield to maturity for each borrowing, which ranged from 3.55% to 6.25% and 5.03% to 8.00% at December 31, 2019 and 2018 , respectively. |
Equipment Installment Plans
Equipment Installment Plans | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Equipment Installment Plans | Note 4 Equipment Installment Plans TDS sells devices to customers under equipment installment plans over a specified time period. For certain equipment installment plans, after a specified period of time or amount of payments, the customer may have the right to upgrade to a new device and have the remaining unpaid equipment installment contract balance waived, subject to certain conditions, including trading in the original device in good working condition and signing a new equipment installment contract. The following table summarizes equipment installment plan receivables as of December 31, 2019 and 2018 . December 31, 2019 2018 (Dollars in millions) Equipment installment plan receivables, gross $ 1,008 $ 974 Allowance for credit losses (84 ) (77 ) Equipment installment plan receivables, net $ 924 $ 897 Net balance presented in the Consolidated Balance Sheet as: Accounts receivable — Customers and agents (Current portion) $ 587 $ 560 Other assets and deferred charges (Non-current portion) 337 337 Equipment installment plan receivables, net $ 924 $ 897 TDS uses various inputs, including internal data, information from credit bureaus and other sources, to evaluate the credit profiles of its customers. From this evaluation, a credit class is assigned to the customer that determines the number of eligible lines, the amount of credit available, and the down payment requirement, if any. Customers assigned to credit classes requiring no down payment represent a lower risk category, whereas those assigned to credit classes requiring a down payment represent a higher risk category. A customer's assigned credit class is reviewed periodically and a change is made, if appropriate. The balance and aging of the equipment installment plan receivables on a gross basis by current credit category were as follows: December 31, 2019 December 31, 2018 Lower Risk Higher Risk Total Lower Risk Higher Risk Total (Dollars in millions) Unbilled $ 931 $ 11 $ 942 $ 904 $ 17 $ 921 Billed — current 44 1 45 35 1 36 Billed — past due 20 1 21 15 2 17 Equipment installment plan receivables, gross $ 995 $ 13 $ 1,008 $ 954 $ 20 $ 974 The activity in the allowance for credit losses for equipment installment plan receivables was as follows: 2019 2018 (Dollars in millions) Allowance for credit losses, beginning of year $ 77 $ 65 Bad debts expense 82 71 Write-offs, net of recoveries (75 ) (59 ) Allowance for credit losses, end of year $ 84 $ 77 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 5 Income Taxes TDS’ current income taxes balances at December 31, 2019 and 2018 , were as follows: December 31, 2019 2018 (Dollars in millions) Federal income taxes receivable $ 31 $ 6 Net state income taxes receivable 5 6 Income tax expense (benefit) is summarized as follows: Year Ended December 31, 2019 2018 2017 (Dollars in millions) Current Federal $ 15 $ 10 $ 77 State 15 3 13 Deferred Federal 36 24 (366 ) State (2 ) 9 (3 ) Total income tax expense (benefit) $ 64 $ 46 $ (279 ) In December 2017, the Tax Act was signed into law. Following the guidance of FASB Accounting Standards Update 2018-05, Income Taxes: Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 , Income tax expense (benefit) for the year ended December 31, 2017, included a provisional estimate for the impact of the Tax Act on TDS’ 2017 depreciation expense deduction. During 2018, TDS completed a full analysis of depreciation expense deductions related to fixed assets placed in service during 2017 and Income tax expense (benefit) for 2018 included a benefit of $4 million related to this adjustment. A reconciliation of TDS’ income tax expense computed at the statutory rate to the reported income tax expense, and the statutory federal income tax rate to TDS’ effective income tax rate is as follows: Year Ended December 31, 2019 2018 2017 Amount Rate Amount Rate Amount Rate (Dollars in millions) Statutory federal income tax expense and rate $ 44 21.0 % $ 46 21.0 % $ (43 ) 35.0 % State income taxes, net of federal benefit 1 12 5.5 11 4.9 6 (5.2 ) Effect of noncontrolling interests — (0.1 ) (1 ) (0.4 ) (2 ) 1.6 Federal income tax rate change 2 — — (16 ) (7.1 ) (314 ) 257.5 Change in federal valuation allowance 3 7 3.1 (1 ) (0.3 ) (5 ) 4.3 Goodwill impairment 4 — — — — 71 (58.2 ) Nondeductible compensation 4 1.9 9 4.1 10 (8.1 ) Tax credits (4 ) (1.9 ) (1 ) (0.6 ) (1 ) 0.8 Other differences, net 1 0.8 (1 ) (0.6 ) (1 ) 1.4 Total income tax expense (benefit) and rate $ 64 30.3 % $ 46 21.0 % $ (279 ) 229.1 % 1 State income taxes, net of federal benefit, include changes in unrecognized tax benefits as well as adjustments to the valuation allowance. 2 Federal income tax rate change due to the Tax Act reducing the federal income tax rate from 35% to 21% resulting in a tax benefit in 2018 due primarily to an income tax accounting method change that accelerated tax depreciation on certain assets for the 2017 tax year. The $314 million tax benefit in 2017 related to adjusting the deferred tax liability to the lower tax rate upon enactment of the Tax Act. 3 Change in federal valuation allowance in 2019 is due primarily to interest expense carryforwards not expected to be realized. The 2018 change also includes a change in judgment related to net operating loss carryforwards that are now realizable due to an internal restructuring. 4 Goodwill impairment reflects an adjustment to increase 2017 income tax expense by $71 million related to a portion of the impaired goodwill that is not amortizable for income tax purposes. See Note 8 — Intangible Assets for additional information related to the goodwill impairment. Significant components of TDS’ deferred income tax assets and liabilities at December 31, 2019 and 2018 , were as follows 1 : December 31, 2019 2018 (Dollars in millions) Deferred tax assets Net operating loss (NOL) carryforwards $ 168 $ 159 Lease liabilities 251 — Asset retirement obligation 74 67 Other 106 151 Total deferred tax assets 599 377 Less valuation allowance (152 ) (135 ) Net deferred tax assets 447 242 Deferred tax liabilities Property, plant and equipment 481 458 Licenses/intangibles 261 237 Partnership investments 132 134 Lease assets 226 — Other 22 53 Total deferred tax liabilities 1,122 882 Net deferred income tax liability $ 675 $ 640 1 Certain prior year deferred tax assets and liabilities have been reclassified to align with the current year presentation. At December 31, 2019 , TDS and certain subsidiaries had $2,861 million of state NOL carryforwards (generating a $151 million deferred tax asset) available to offset future taxable income. The state NOL carryforwards expire between 2020 and 2039 . Certain subsidiaries had federal NOL carryforwards (generating a $17 million deferred tax asset) available to offset their future taxable income. The federal NOL carryforwards generally expire between 2020 and 2037 , with the exception of federal NOLs generated after 2017, which do not expire. A valuation allowance was established for certain state NOL carryforwards and federal NOL carryforwards since it is more likely than not that a portion of such carryforwards will expire before they can be utilized. A summary of TDS' deferred tax asset valuation allowance is as follows: 2019 2018 2017 (Dollars in millions) Balance at beginning of year $ 135 $ 147 $ 122 Charged to income tax expense 17 (5 ) 25 Charged to Retained earnings — (7 ) — Balance at end of year $ 152 $ 135 $ 147 A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2019 2018 2017 (Dollars in millions) Unrecognized tax benefits balance at beginning of year $ 49 $ 46 $ 42 Additions for tax positions of current year 8 8 6 Additions for tax positions of prior years — 2 1 Reductions for tax positions of prior years (7 ) (1 ) (1 ) Reductions for settlements of tax positions (1 ) — — Reductions for lapses in statutes of limitations — (6 ) (2 ) Unrecognized tax benefits balance at end of year $ 49 $ 49 $ 46 Unrecognized tax benefits are included in Accrued taxes and Other deferred liabilities and credits in the Consolidated Balance Sheet. If these benefits were recognized, they would have reduced income tax expense in 2019 , 2018 and 2017 by $39 million , $39 million and $37 million , respectively, net of the federal benefit from state income taxes. TDS recognizes accrued interest and penalties related to unrecognized tax benefits in Income tax expense (benefit). The amounts charged to income tax expense related to interest and penalties resulted in an expense of $3 million, less than $1 million and $3 million in 2019 , 2018 and 2017 , respectively. Net accrued liabilities for interest and penalties were $21 million and $19 million at December 31, 2019 and 2018 , respectively, and are included in Other deferred liabilities and credits in the Consolidated Balance Sheet. TDS and its subsidiaries file federal and state income tax returns. With limited exceptions, TDS is no longer subject to federal and state income tax audits for the years prior to 2016 . |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 6 Earnings Per Share Basic earnings per share attributable to TDS shareholders is computed by dividing Net income attributable to TDS shareholders by the weighted average number of Common Shares outstanding during the period. Diluted earnings per share attributable to TDS shareholders is computed by dividing Net income attributable to TDS shareholders by the weighted average number of Common Shares outstanding during the period adjusted to include the effects of potentially dilutive securities. Potentially dilutive securities primarily include incremental shares issuable upon the exercise of outstanding stock options and the vesting of performance and restricted stock units. The amounts used in computing basic and diluted earnings per share attributable to TDS shareholders were as follows: Year Ended December 31, 2019 2018 2017 (Dollars and shares in millions, except per share amounts) Net income attributable to TDS shareholders used in basic earnings per share $ 121 $ 135 $ 153 Adjustments to compute diluted earnings: Noncontrolling interest adjustment (1 ) (2 ) — Net income attributable to TDS shareholders used in diluted earnings per share $ 120 $ 133 $ 153 Weighted average number of shares used in basic earnings per share: Common Shares 107 105 104 Series A Common Shares 7 7 7 Total 114 112 111 Effects of dilutive securities 2 2 1 Weighted average number of shares used in diluted earnings per share 116 114 112 Basic earnings per share attributable to TDS shareholders $ 1.06 $ 1.20 $ 1.39 Diluted earnings per share attributable to TDS shareholders $ 1.03 $ 1.17 $ 1.37 Certain Common Shares issuable upon the exercise of stock options or vesting of performance and restricted stock units were not included in weighted average diluted shares outstanding for the calculation of Diluted earnings per share attributable to TDS shareholders because their effects were antidilutive. The number of such Common Shares excluded was 2 million shares, 3 million shares and 4 million shares for 2019 , 2018 and 2017 , respectively. |
Acquisitions, Divestures and Ex
Acquisitions, Divestures and Exchanges | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions, Divestures and Exchanges | Note 7 Acquisitions, Divestitures and Exchanges On December 31, 2019, TDS acquired substantially all of the assets of MI Connection Communications System, dba Continuum, for $80 million in cash, subject to working capital adjustments. Continuum is a cable company that passes approximately 40,000 service addresses in North Carolina and offers broadband, video and voice services, which complement the TDS Telecom portfolio of products. The operations of Continuum will be included in the Cable segment for reporting purposes. The goodwill recorded represents future economic benefits expected to be generated by the acquisition. The allocation of the purchase price was as follows: Allocation of Purchase Price Purchase Price Goodwill 1 Intangible Assets Subject to Amortization 2 Net Tangible Assets (Liabilities) (Dollars in millions) Continuum $ 80 $ 38 $ 9 $ 33 1 The entire amount of Goodwill acquired in 2019 is amortizable for income tax purposes. 2 In 2019, at the date of acquisition, the weighted average amortization period for Intangible Assets Subject to Amortization acquired was approximately four years . |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 8 Intangible Assets Licenses TDS reviews attractive opportunities to acquire additional wireless spectrum, including pursuant to FCC auctions. TDS also may seek to divest outright or include in exchanges wireless spectrum that is not strategic to its long-term success. Prior to 2009, TDS accounted for U.S. Cellular’s share repurchases as step acquisitions, allocating a portion of the share repurchase value to TDS’ Licenses. Consequently, U.S. Cellular's Licenses on a stand-alone basis do not equal the TDS consolidated Licenses related to U.S. Cellular. Activity related to TDS' Licenses is presented below. U.S. Cellular Wireline Cable Total (Dollars in millions) Balance at December 31, 2017 $ 2,227 $ 2 $ 3 $ 2,232 Acquisitions 8 — — 8 Transferred to Assets held for sale (51 ) — — (51 ) Divestitures (11 ) — — (11 ) Exchanges - Licenses received 18 — — 18 Exchanges - Licenses surrendered (1 ) — — (1 ) Balance at December 31, 2018 2,190 2 3 2,195 Acquisitions 267 — — 267 Divestitures (10 ) — — (10 ) Exchanges - Licenses received 26 — — 26 Exchanges - Licenses surrendered — — — — Capitalized interest 2 — — 2 Balance at December 31, 2019 $ 2,475 $ 2 $ 3 $ 2,480 Auctions 101 and 102 In June 2019, the FCC announced by way of public notice that U.S. Cellular was the provisional winning bidder for 408 wireless spectrum licenses in its 28 GHz auction (Auction 101) and 282 wireless spectrum licenses in its 24 GHz auction (Auction 102) for an aggregate purchase price of $256 million . U.S. Cellular paid substantially all of the $256 million in the first half of 2019. The wireless spectrum licenses from Auction 101 were granted by the FCC on October 2, 2019, and the wireless spectrum licenses from Auction 102 were granted by the FCC on December 11, 2019. Goodwill Activity related to TDS' Goodwill is presented below. Wireline 1 Cable Total (Dollars in millions) Balance at December 31, 2017 $ 409 $ 100 $ 509 Other — — — Balance at December 31, 2018 409 100 509 Acquisitions — 38 38 Balance at December 31, 2019 $ 409 $ 138 $ 547 1 Accumulated impairment losses in prior periods were $29 million for Wireline. Goodwill — Interim Impairment Assessment in 2017 U.S. Cellular Based on 2017 developments, including wireless expansion plans announced by other companies and the results of the FCC’s forward auction of 600 MHz wireless spectrum licenses and other FCC actions, U.S. Cellular anticipated increased competition for customers in its primary operating markets from new and existing market participants over the long term. In addition, the widening adoption of unlimited data plans and other data pricing constructs across the industry, including U.S. Cellular’s introduction of unlimited plans in 2017, may limit the industry’s ability to monetize future growth in data usage. These factors when assessed and considered as part of U.S. Cellular’s annual planning process conducted in the third quarter of each year caused management to revise its long-range financial forecast in the third quarter of 2017. Based on the factors noted above, management identified a triggering event and performed a quantitative goodwill impairment test during the third quarter of 2017. The results of the interim goodwill impairment test indicated that the carrying value of the U.S. Cellular reporting unit exceeded its fair value. Therefore, TDS recognized a loss on impairment of goodwill of $227 million to reduce the carrying value of goodwill for the U.S. Cellular reporting unit to zero in the third quarter of 2017. Other During the third quarter of 2017, due to slower than expected service revenue growth and revenue mix trending towards a higher proportion of lower margin revenue streams, management identified a triggering event related to its HMS operations and performed a quantitative goodwill impairment test. TDS used a one-step quantitative approach that compared the fair value of its HMS operations to the carrying value. TDS weighted the discounted cash flow approach and guideline public company method to value the HMS operations. The discounted cash flow approach uses value drivers and considers risks specific to the industry as well as current economic factors. The guideline public company method develops an indication of fair value by calculating average market pricing multiples for selected publicly-traded companies. The developed multiples were applied to applicable financial measures of the HMS operations to determine fair value. The results of the interim goodwill impairment test indicated that the carrying value of the HMS operations exceeded its fair value. Therefore, TDS recognized a loss on impairment of goodwill of $35 million to reduce the carrying value of goodwill for the HMS operations to zero in the third quarter of 2017. Other intangible assets Activity related to TDS' Other intangible assets is presented below. December 31, 2019 December 31, 2018 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount (Dollars in millions) Franchise rights $ 255 $ (34 ) $ 221 $ 255 $ (17 ) $ 238 Customer lists and Trade name 151 (133 ) 18 166 (151 ) 15 Total $ 406 $ (167 ) $ 239 $ 421 $ (168 ) $ 253 As discussed in Note 1 — Summary of Significant Accounting Policies and Recent Accounting Pronouncements, effective January 1, 2018, TDS prospectively changed its assessment of useful life for its franchise rights from indefinite-lived to 15 years . Amortization expense for intangible assets was $24 million , $26 million and $11 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Based on the current balance of finite-lived intangible assets, the estimated amortization expense is $25 million , $21 million , $20 million , $19 million and $17 million for the years 2020 through 2024, respectively. |
Investments In Unconsolidated E
Investments In Unconsolidated Entities | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Entities | Note 9 Investments in Unconsolidated Entities Investments in unconsolidated entities consist of amounts invested in entities in which TDS holds a noncontrolling interest. TDS' Investments in unconsolidated entities are accounted for using either the equity method or measurement alternative method as shown in the table below. The carrying value of measurement alternative method investments represents cost minus any impairments plus or minus any observable price changes. December 31, 2019 2018 (Dollars in millions) Equity method investments: Capital contributions, loans, advances and adjustments $ 116 $ 116 Cumulative share of income 2,099 1,930 Cumulative share of distributions (1,748 ) (1,587 ) Total equity method investments 467 459 Measurement alternative method investments 21 21 Total investments in unconsolidated entities $ 488 $ 480 The following tables, which are based on information provided in part by third parties, summarize the combined assets, liabilities and equity, and results of operations of TDS’ equity method investments: December 31, 2019 2018 (Dollars in millions) Assets Current $ 1,516 $ 1,299 Noncurrent 5,776 5,010 Total assets $ 7,292 $ 6,309 Liabilities and Equity Current liabilities $ 626 $ 436 Noncurrent liabilities 1,132 405 Partners’ capital and shareholders’ equity 5,534 5,468 Total liabilities and equity $ 7,292 $ 6,309 Year Ended December 31, 2019 2018 2017 (Dollars in millions) Results of Operations Revenues $ 6,929 $ 6,801 $ 6,585 Operating expenses 5,043 4,985 4,985 Operating income 1,886 1,816 1,600 Other income (expense), net (24 ) 9 (3 ) Net income $ 1,862 $ 1,825 $ 1,597 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 10 Property, Plant and Equipment TDS’ Property, plant and equipment in service and under construction, and related accumulated depreciation and amortization, as of December 31, 2019 and 2018 , were as follows: December 31, Useful Lives (Years) 2019 2018 (Dollars in millions) Land N/A $ 57 $ 55 Buildings 5-40 527 523 Leasehold and land improvements 1-30 1,314 1,245 Cable and wire 15-35 1,996 1,884 Network and switching equipment 3-13 2,507 2,423 Cell site equipment 7-25 3,708 3,460 Office furniture and equipment 3-10 387 378 Other operating assets and equipment 3-12 174 193 System development 1-7 1,604 1,486 Work in process N/A 590 427 Total property, plant and equipment, gross 12,864 12,074 Accumulated depreciation and amortization (9,337 ) (8,728 ) Total property, plant and equipment, net $ 3,527 $ 3,346 Depreciation and amortization expense totaled $890 million , $839 million and $817 million in 2019 , 2018 and 2017 , respectively. In 2019 , 2018 and 2017 , (Gain) loss on asset disposals, net included charges of $12 million , $9 million and $21 million , respectively, related to disposals of assets, trade-ins of older assets for replacement assets and other retirements of assets from service in the normal course of business. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 11 Leases Change in Accounting Policy In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases and subsequently amended the standard with several Accounting Standards Updates, collectively referred to as ASC 842. This standard replaces the previous lease accounting standard under ASC 840 - Leases and requires lessees to record a right-of-use (ROU) asset and lease liability for the majority of leases. TDS adopted the provisions of ASC 842 on January 1, 2019, using a modified retrospective method. Under this method, TDS elected to apply the new accounting standard only to the most recent period presented, recognizing the cumulative effect of the accounting change, if any, as an adjustment to the beginning balance of retained earnings. Accordingly, prior periods have not been recast to reflect the new accounting standard. The cumulative effect of applying the provisions of ASC 842 had no material impact on retained earnings. TDS elected transitional practical expedients for existing leases which eliminated the requirements to reassess existing lease classification, initial direct costs, and whether contracts contain leases. TDS also elected the practical expedient related to land easements that allows it to carry forward the accounting treatment for pre-existing land easement agreements. The cumulative effect of the adoption of ASC 842 on TDS’ Consolidated Balance Sheet as of January 1, 2019 is presented below. December 31, 2018 ASC 842 Adjustment January 1, 2019 (Dollars in millions) Prepaid expenses $ 103 $ (13 ) $ 90 Operating lease right-of-use assets — 975 975 Other assets and deferred charges 616 (12 ) 604 Short-term operating lease liabilities — 112 112 Other current liabilities 114 (8 ) 106 Long-term operating lease liabilities — 949 949 Other deferred liabilities and credits 541 (103 ) 438 In connection with the adoption of ASC 842, TDS recorded ROU assets and lease liabilities for its operating leases in its Consolidated Balance Sheet as of January 1, 2019. The amounts for ROU assets and lease liabilities initially were calculated as the discounted value of future lease payments. The difference between the ROU assets and the corresponding lease liabilities at January 1, 2019 as shown in the table above resulted from adjustments to ROU assets to account for various lease prepayments and straight-line expense recognition deferral balances which existed as of December 31, 2018. Finance leases are included in Property, plant and equipment and Long-term debt, net consistent with the presentation under prior accounting standards. Lessee Agreements A lease is generally present in a contract if the lessee controls the use of identified property, plant or equipment for a period of time in exchange for consideration. Nearly all of TDS’ leases are classified as operating leases, although it does have a small number of finance leases. TDS’ most significant leases are for land and tower spaces, network facilities, retail spaces, and offices. TDS has agreements with both lease and nonlease components, which are accounted for separately. As part of the present value calculation for the lease liabilities, TDS uses an incremental borrowing rate as the rates implicit in the leases are not readily determinable. The incremental borrowing rates used for lease accounting are based on TDS' unsecured rates, adjusted to approximate the rates at which TDS would be required to borrow on a collateralized basis over a term similar to the recognized lease term. TDS applies the incremental borrowing rates to lease components using a portfolio approach based upon the length of the lease term and the reporting entity in which the lease resides. The cost of nonlease components in TDS’ lease portfolio (e.g., utilities and common area maintenance) are not typically predetermined at lease commencement and are expensed as incurred at their relative standalone price. Variable lease expense occurs when, subsequent to the lease commencement, lease payments are made that were not originally included in the lease liability calculation. TDS’ variable lease payments are primarily a result of leases with escalations that are tied to an index. The incremental changes due to the index changes are recorded as variable lease expense and are not included in the ROU assets or lease liabilities. The identified lease term determines the periods to which expense is allocated and also has a significant impact on the ROU asset and lease liability calculations. Many of TDS’ leases include renewal and early termination options. At lease commencement, the lease terms include options to extend the lease when TDS is reasonably certain that it will exercise the options. The lease terms do not include early termination options unless TDS is reasonably certain to exercise the options. Certain asset classes have similar lease characteristics; therefore, TDS has applied the portfolio approach for lease term recognition for its tower space, retail, and certain ground lease asset classes. The following table shows the components of lease cost included in the Consolidated Statement of Operations: Year Ended (Dollars in millions) Operating lease cost $ 177 Financing lease cost: Amortization of ROU assets 2 Interest on lease liabilities 1 Variable lease cost 8 Total lease cost $ 188 The following table shows supplemental cash flow information related to lease activities: Year Ended (Dollars in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 172 Operating cash flows from finance leases 1 ROU assets obtained in exchange for lease obligations: Operating leases $ 132 Finance leases 10 The following table shows the classification of TDS’ finance leases in its Consolidated Balance Sheet: December 31, 2019 (Dollars in millions) Finance Leases Property, plant and equipment $ 20 Less: Accumulated depreciation and amortization 5 Property, plant and equipment, net $ 15 Current portion of long-term debt 1 Long-term debt, net $ 7 Total finance lease liabilities $ 8 The table below shows a weighted-average analysis for lease terms and discount rates for all leases: December 31, 2019 Weighted Average Remaining Lease Term Operating leases 12 years Finance leases 24 years Weighted Average Discount Rate Operating leases 4.4 Finance leases 6.3 The maturities of lease liabilities are as follows: Operating Leases Finance Leases (Dollars in millions) 2020 $ 159 $ 1 2021 159 — 2022 143 1 2023 127 1 2024 109 1 Thereafter 730 16 Total lease payments 1 $ 1,427 $ 20 Less: Imputed interest 380 12 Present value of lease liabilities $ 1,047 $ 8 1 Lease payments exclude $ 29 million of legally binding lease payments for leases signed but not yet commenced. Lessor Agreements TDS’ most significant lessor leases are for tower space and colocation space. All of TDS’ lessor leases are classified as operating leases. A lease is generally present in a contract if the lessee controls the use of identified property, plant, or equipment for a period of time in exchange for consideration. TDS’ lessor agreements with lease and nonlease components are generally accounted for separately; however, certain service agreements with insignificant lease components are accounted for as nonlease transactions. The identified lease term determines the periods to which revenue is allocated over the term of the lease. Many of TDS’ leases include renewal and early termination options. At lease commencement, lease terms include options to extend the lease when TDS is reasonably certain that lessees will exercise the options. Lease terms would not include periods after the date of a termination option that lessees are reasonably certain to exercise. Variable lease income occurs when, subsequent to the lease commencement, lease payments are received that were not originally included in the lease receivable calculation. TDS’ variable lease income is primarily a result of leases with escalations that are tied to an index. The incremental increases due to the index changes are recorded as variable lease income. The following table shows the components of lease income which are included in Service revenues in the Consolidated Statement of Operations: Year Ended (Dollars in millions) Operating lease income 1 $ 100 1 During the third quarter of 2019, TDS recorded an out-of-period adjustment attributable to 2009 through the second quarter of 2019 due to errors in the timing of recognition of revenue for certain tower leases. This out-of-period adjustment had the impact of increasing operating lease income by $5 million for the year ended December 31, 2019 . TDS determined that this adjustment was not material to any of the periods impacted. The maturities of expected lease payments to be received are as follows: Operating Leases (Dollars in millions) 2020 $ 87 2021 70 2022 44 2023 32 2024 16 Thereafter 17 Total future lease maturities $ 266 Disclosures under ASC 840 As of December 31, 2018, future minimum rental payments required under operating leases and rental receipts expected under operating leases that had noncancellable lease terms in excess of one year were as follows: Operating Leases Future Minimum Rental Payments Operating Leases Future Minimum Rental Receipts (Dollars in millions) 2019 $ 170 $ 59 2020 158 48 2021 142 35 2022 126 23 2023 110 10 Thereafter 784 7 Total $ 1,490 $ 182 For 2018 and 2017 , rent expense for noncancellable long-term leases was $189 million and $183 million , respectively; and rent expense under cancellable short-term leases was $12 million |
Asset Retirement Obligation
Asset Retirement Obligation | 12 Months Ended |
Dec. 31, 2019 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligation | Note 12 Asset Retirement Obligations U.S. Cellular is subject to asset retirement obligations associated with its leased cell sites, switching office sites, retail store sites and office locations. Asset retirement obligations generally include obligations to restore leased land, towers, retail store and office premises to their pre-lease conditions. TDS Telecom owns poles, cable and wire and certain buildings and also leases office space and property used for housing central office switching equipment and fiber cable. These assets and leases often have removal or remediation requirements associated with them. For example, TDS Telecom’s poles, cable and wire are often located on property that is not owned by TDS Telecom and may be subject to the provisions of easements, permits, or leasing arrangements. Pursuant to the terms of the permits, easements, or leasing arrangements, TDS Telecom is often required to remove these assets and return the property to its original condition at some defined date in the future. Asset retirement obligations are included in Other deferred liabilities and credits in the Consolidated Balance Sheet. In 2019 and 2018 , U.S. Cellular and TDS Telecom performed a review of the assumptions and estimated costs related to asset retirement obligations. The results of the reviews (identified as Revisions in estimated cash outflows) and other changes in asset retirement obligations during 2019 and 2018 , were as follows: 2019 2018 (Dollars in millions) Balance at beginning of year $ 307 $ 283 Additional liabilities accrued 13 2 Revisions in estimated cash outflows 2 6 Acquisition of assets 1 — Disposition of assets (1 ) (1 ) Accretion expense 20 18 Transferred to Liabilities held for sale — (1 ) Balance at end of year $ 342 $ 307 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 13 Debt Revolving Credit Agreements At December 31, 2019 , TDS and U.S. Cellular had revolving credit agreements available for general corporate purposes including acquisitions, spectrum purchases and capital expenditures. Amounts under the revolving credit agreements may be borrowed, repaid and reborrowed from time to time until maturity in May 2023 . As of December 31, 2019 , there were no outstanding borrowings under the revolving credit agreements, except for letters of credit. Interest expense representing commitment fees on the unused portion of the revolving lines of credit was $2 million in each of 2019 , 2018 and 2017 . The commitment fees are based on the unsecured senior debt ratings assigned to TDS and U.S. Cellular by certain ratings agencies. The following table summarizes the revolving credit agreements as of December 31, 2019 : TDS U.S. Cellular (Dollars in millions) Maximum borrowing capacity $ 400 $ 300 Letters of credit outstanding $ 1 $ 2 Amount borrowed $ — $ — Amount available for use $ 399 $ 298 Borrowings under the revolving credit agreements bear interest either at a London Inter-bank Offered Rate ( LIBOR) plus 1.75% or at an alternative Base Rate as defined in the revolving credit agreement plus 0.75% , at TDS’ or U.S. Cellular’s option. TDS and U.S. Cellular may select a borrowing period of either one, two, three or six months (or other period of twelve months or less if requested by TDS or U.S. Cellular and approved by the lenders). TDS’ and U.S. Cellular’s credit spread and commitment fees on their revolving credit agreements may be subject to increase if their current credit ratings from nationally recognized credit rating agencies are lowered, and may be subject to decrease if the ratings are raised. In connection with U.S. Cellular’s revolving credit agreement, TDS and U.S. Cellular entered into a subordination agreement dated May 10, 2018 , together with the administrative agent for the lenders under U.S. Cellular’s revolving credit agreement. Pursuant to this subordination agreement, (a) any consolidated funded indebtedness from U.S. Cellular to TDS will be unsecured and (b) any (i) consolidated funded indebtedness from U.S. Cellular to TDS (other than “refinancing indebtedness” as defined in the subordination agreement) in excess of $105 million and (ii) refinancing indebtedness in excess of $250 million will be subordinated and made junior in right of payment to the prior payment in full of obligations to the lenders under U.S. Cellular’s revolving credit agreement. As of December 31, 2019 , U.S. Cellular had no outstanding consolidated funded indebtedness or refinancing indebtedness that was subordinated to the revolving credit agreement pursuant to the subordination agreement. The continued availability of the revolving credit agreements requires TDS and U.S. Cellular to comply with certain negative and affirmative covenants, maintain certain financial ratios and make representations regarding certain matters at the time of each borrowing. The revolving credit agreements include the following financial covenants: ▪ Consolidated Interest Coverage Ratio may not be less than 3.00 to 1.00 as of the end of any fiscal quarter. ▪ Consolidated Leverage Ratio may not be greater than the ratios indicated as of the end of any fiscal quarter for each period specified below: Period Ratios From the agreement date of May 10, 2018 through June 30, 2019 3.25 to 1.00 From July 1, 2019 and thereafter 3.00 to 1.00 Certain TDS and U.S. Cellular wholly-owned subsidiaries have jointly and severally unconditionally guaranteed the payment and performance of the obligations of TDS and U.S. Cellular under the revolving credit agreements pursuant to a guaranty dated May 10, 2018 . Other subsidiaries that meet certain criteria will be required to provide a similar guaranty in the future. TDS and U.S. Cellular believe that they were in compliance with all of the financial and other covenants and requirements set forth in their revolving credit agreements as of December 31, 2019 . Term Loan In July 2015 , U.S. Cellular borrowed $225 million on a senior term loan credit agreement in two separate draws. This agreement was entered into for general corporate purposes, including working capital, spectrum purchases and capital expenditures. This agreement was entered into in January 2015, amended and restated in June 2016, and further amended in May 2018 and March 2019. The interest rate on outstanding borrowings is reset at one, three or six month intervals at a rate of LIBOR plus 175 basis points . This credit agreement provides for the draws to be continued on a long-term basis under terms that are readily determinable. In October 2019, U.S. Cellular made a $100 million principal prepayment on the senior term loan. The remaining unpaid balance will be due and payable in January 2022. The senior term loan credit agreement contains financial covenants and subsidiary guarantees that are consistent with the revolving credit agreements described above. U.S. Cellular believes that it was in compliance with all of the financial and other covenants and requirements set forth in its term loan credit agreement as of December 31, 2019 . In connection with U.S. Cellular’s term loan credit agreement, TDS and U.S. Cellular entered into a subordination agreement in June 2016 together with the administrative agent for the lenders under U.S. Cellular’s term loan credit agreement, which is substantially the same as the subordination agreement for U.S. Cellular as described above under the “Revolving Credit Agreements.” As of December 31, 2019 , U.S. Cellular had no outstanding consolidated funded indebtedness or refinancing indebtedness that was subordinated to the term loan agreement pursuant to this subordination agreement. Receivables Securitization Agreement In December 2017, U.S. Cellular, through its subsidiaries, entered into a $200 million credit agreement to permit securitized borrowings using its equipment installment receivables for general corporate purposes, including acquisitions, spectrum purchases and capital expenditures. In connection with the receivables securitization agreement, U.S. Cellular formed a wholly-owned subsidiary, USCC Master Note Trust (Trust), which qualifies as a bankruptcy remote entity. Under the terms of the agreement, U.S. Cellular, through its subsidiaries, transfers eligible equipment installment receivables to the Trust. The Trust then utilizes the transferred assets as collateral for notes payables issued to third party financial institutions. Since U.S. Cellular retains effective control of the transferred assets in the Trust, any activity associated with this receivables securitization agreement will be treated as a secured borrowing. Therefore, TDS will continue to report equipment installment receivables and any related balances on the Consolidated Balance Sheet. Cash received from borrowings under the receivables securitization agreement will be reported as Debt. Refer to Note 16 — Variable Interest Entities for additional information. U.S. Cellular entered into a performance guaranty whereby U.S. Cellular guarantees the performance of certain wholly-owned subsidiaries of U.S. Cellular under the receivables securitization agreement. Amounts under the receivables securitization agreement may be borrowed, repaid and reborrowed from time to time until maturity in December 2021 , which may be extended from time to time as specified therein. As of December 31, 2019 , there were no outstanding borrowings under the receivables securitization agreement, and the entire unused capacity of $200 million was available, subject to sufficient collateral to satisfy the asset borrowing base provisions of the agreement. Interest expense representing commitment fees on the unused portion of the agreement was $1 million , $1 million and zero for the years 2019 , 2018 and 2017 , respectively. The continued availability of the receivables securitization agreement requires U.S. Cellular to comply with certain negative and affirmative covenants, maintain certain financial ratios and provide representations on certain matters at the time of each borrowing. The covenants include the same financial covenants for U.S. Cellular as described above under the “Revolving Credit Agreements.” TDS believes that U.S. Cellular was in compliance as of December 31, 2019 , with all of the financial covenants and requirements set forth in its receivables securitization agreement. Other Long-Term Debt Long-term debt as of December 31, 2019 and 2018 , was as follows: December 31, 2019 December 31, 2018 Issuance date Maturity date Call date (any time on or after) Principal Amount Less Unamortized discounts and debt issuance costs Total Principal Amount Less Unamortized discount and debt issuance costs Total (Dollars in millions) TDS Unsecured Senior Notes 6.625% Mar 2005 Mar 2045 Mar 2010 $ 116 $ 3 $ 113 $ 116 $ 3 $ 113 6.875% Nov 2010 Nov 2059 Nov 2015 225 7 218 225 7 218 7.000% Mar 2011 Mar 2060 Mar 2016 300 9 291 300 9 291 5.875% Dec 2012 Dec 2061 Dec 2017 195 7 188 195 7 188 U.S. Cellular Unsecured Senior Notes 6.700% Dec 2003 Dec 2033 Dec 2003 $ 544 $ 13 $ 531 $ 544 $ 14 $ 530 6.950% May 2011 May 2060 May 2016 342 11 331 342 11 331 7.250% Dec 2014 Dec 2063 Dec 2019 275 10 265 275 10 265 7.250% Nov 2015 Dec 2064 Dec 2020 300 10 290 300 10 290 Term Loan Jul 2015 Jan 2022 83 1 82 191 1 190 Finance lease obligations 8 — 8 6 — 6 Installment payment agreement 8 1 7 15 1 14 Other long-term notes Through 2021 2 — 2 3 — 3 Total long-term debt $ 2,398 $ 72 $ 2,326 $ 2,512 $ 73 $ 2,439 Long-term debt, current $ 10 $ 21 Long-term debt, noncurrent $ 2,316 $ 2,418 TDS may redeem its callable notes and U.S. Cellular may redeem its 6.95% Senior Notes, 7.25% 2063 Senior Notes and 7.25% 2064 Senior Notes, in whole or in part at any time after the respective call date, at a redemption price equal to 100% of the principal amount redeemed plus accrued and unpaid interest. U.S. Cellular may redeem the 6.7% Senior Notes, in whole or in part, at any time prior to maturity at a redemption price equal to the greater of (a) 100% of the principal amount of such notes, plus accrued and unpaid interest, or (b) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date on a semi-annual basis at the Treasury Rate plus 30 basis points. Interest on the Senior Notes outstanding at December 31, 2019 , is payable quarterly, with the exception of U.S. Cellular's 6.7% Senior Notes for which interest is payable semi-annually. The annual requirements for principal payments on long-term debt are approximately $10 million , $2 million , $83 million , less than $1 million and less than $1 million for the years 2020 through 2024 , respectively. The covenants associated with TDS and its subsidiaries’ long-term debt obligations, among other things, restrict TDS’ ability, subject to certain exclusions, to incur additional liens, enter into sale and leaseback transactions, and sell, consolidate or merge assets. TDS’ and U.S. Cellular’s long-term debt notes do not contain any provisions resulting in acceleration of the maturities of outstanding debt in the event of a change in TDS’ or U.S. Cellular’s credit rating. |
Employee Benefits Plans
Employee Benefits Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 14 Employee Benefit Plans Defined Contribution Plans TDS sponsors a qualified noncontributory defined contribution pension plan. The plan provides benefits for certain employees of TDS Corporate, TDS Telecom and U.S. Cellular. Under this plan, pension costs are calculated separately for each participant and are funded annually. Total pension costs were $17 million in 2019 and $16 million in 2018 and 2017 . In addition, TDS sponsors a defined contribution retirement savings plan (401(k) plan). Total costs incurred from TDS’ contributions to the 401(k) plan were $25 million in 2019 , $28 million in 2018 and $27 million in 2017 . TDS also sponsors an unfunded nonqualified deferred supplemental executive retirement plan for certain employees to offset the reduction of benefits caused by the limitation on annual employee compensation under the tax laws. Other Post-Retirement Benefits TDS sponsors a defined benefit post-retirement plan that provides medical benefits to retirees and that covers certain employees of TDS Corporate and TDS Telecom, which is not significant to TDS’ financial position or operating results. The plan is contributory, with retiree contributions adjusted annually. TDS recognizes the funded status of the plan as a component of Other assets and deferred charges in the Consolidated Balance Sheet as of December 31, 2019 and 2018 . Changes in the funded status are included in Accumulated other comprehensive income (loss) in the Consolidated Balance Sheet before affecting such amounts for income taxes to the extent that such changes are not recognized in earnings as a component of net periodic benefit cost. The post-retirement benefit fund invests mainly in mutual funds that hold U.S. equities, international equities, and debt securities. The post-retirement benefit fund does not hold any debt or equity securities issued by TDS, U.S. Cellular or any related parties. The fair value of the plan assets of the post-retirement benefit fund was $63 million and $55 million as of December 31, 2019 and 2018 , respectively. The total plan benefit obligations were $55 million and $49 million as of December 31, 2019 and 2018 , respectively. Therefore, the total funded status was an asset of $8 million and $6 million as of December 31, 2019 and 2018 , respectively. TDS is not required to set aside current funds for its future retiree health insurance benefits. The decision to contribute to the plan assets is based upon several factors, including the funded status of the plan, market conditions, alternative investment opportunities, tax benefits and other circumstances. In accordance with applicable income tax regulations, annual contributions to fund the costs of future retiree medical benefits may not exceed certain thresholds. TDS has not determined whether it will make a contribution to the plan in 2020 . |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 15 Commitments and Contingencies Purchase Obligations TDS has obligations payable under non-cancellable contracts, commitments for device purchases, network facilities and transport services, agreements for software licensing, long-term marketing programs, as well as certain agreements to purchase goods or services. For certain contracts, TDS calculates its obligation based on termination fees that can be paid to exit the contract. Future minimum payments required under these commitments as of December 31, 2019 are as follows: Purchase Obligations (Dollars in millions) 2020 $ 1,065 2021 448 2022 755 2023 63 2024 40 Thereafter 37 Total $ 2,408 Subsequent to December 31, 2019 , TDS committed to purchase assets in the amount of $146 million , subject to regulatory approval. This amount is not included in the 2020 purchase obligations above, which are stated as of December 31, 2019. Indemnifications TDS enters into agreements in the normal course of business that provide for indemnification of counterparties. The terms of the indemnifications vary by agreement. The events or circumstances that would require TDS to perform under these indemnities are transaction specific; however, these agreements may require TDS to indemnify the counterparty for costs and losses incurred from litigation or claims arising from the underlying transaction. TDS is unable to estimate the maximum potential liability for these types of indemnifications as the amounts are dependent on the outcome of future events, the nature and likelihood of which cannot be determined at this time. Historically, TDS has not made any significant indemnification payments under such agreements. Legal Proceedings TDS is involved or may be involved from time to time in legal proceedings before the FCC, other regulatory authorities, and/or various state and federal courts. If TDS believes that a loss arising from such legal proceedings is probable and can be reasonably estimated, an amount is accrued in the financial statements for the estimated loss. If only a range of loss can be determined, the best estimate within that range is accrued; if none of the estimates within that range is better than another, the low end of the range is accrued. The assessment of the expected outcomes of legal proceedings is a highly subjective process that requires judgments about future events. The legal proceedings are reviewed at least quarterly to determine the adequacy of accruals and related financial statement disclosures. The ultimate outcomes of legal proceedings could differ materially from amounts accrued in the financial statements. TDS has accrued $2 million and less than $1 million with respect to legal proceedings and unasserted claims as of December 31, 2019 and 2018 , respectively. TDS is unable to estimate any contingent loss in excess of the amounts accrued. In April 2018, the United States Department of Justice (DOJ) notified TDS that it was conducting inquiries of U.S. Cellular and TDS under the federal False Claims Act relating to U.S. Cellular’s participation in wireless spectrum license auctions 58, 66, 73 and 97 conducted by the FCC. U.S. Cellular is/was a limited partner in several limited partnerships which qualified for the 25% bid credit in each auction. The investigation arose from civil actions under the Federal False Claims Act brought by private parties in the U.S. District Court for the Western District of Oklahoma. In November and December 2019, following the DOJ’s investigation, the DOJ informed TDS and U.S. Cellular that it would not intervene in the above referenced actions. In addition, on December 5, 2019, the District Court unsealed the complaints. The private party plaintiffs have advised TDS and U.S. Cellular of their intent to pursue the matter and intent to serve the complaint on TDS and U.S. Cellular within the required 90 days of the Court’s unsealing of the complaint. TDS and U.S. Cellular believe that U.S. Cellular’s arrangements with the limited partnerships and the limited partnerships’ participation in the FCC auctions complied with applicable law and FCC rules. At this time, TDS cannot predict the outcome of any proceeding. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Note 16 Variable Interest Entities Consolidated VIEs TDS consolidates VIEs in which it has a controlling financial interest as defined by GAAP and is therefore deemed the primary beneficiary. A controlling financial interest will have both of the following characteristics: (a) the power to direct the VIE activities that most significantly impact economic performance; and (b) the obligation to absorb the VIE losses and the right to receive benefits that are significant to the VIE. TDS reviews these criteria initially 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 TDS’ Form 10-K for the year ended December 31, 2019. During 2017, U.S. Cellular formed USCC EIP LLC (Seller/Sub-Servicer), USCC Receivables Funding LLC (Transferor) and the Trust, collectively the special purpose entities (SPEs), to facilitate a securitized borrowing using its equipment installment plan receivables. Under a Receivables Sale Agreement, U.S. Cellular wholly-owned, majority-owned and unconsolidated entities, collectively referred to as “affiliated entities”, transfer device equipment installment plan contracts to the Seller/Sub-Servicer. The Seller/Sub-Servicer aggregates device equipment installment plan contracts, and performs servicing, collection and all other administrative activities related to accounting for the equipment installment plan contracts. The Seller/Sub-Servicer sells the eligible equipment installment plan receivables to the Transferor, a bankruptcy remote entity, which subsequently sells the receivables to the Trust. The Trust, which is bankruptcy remote and isolated from the creditors of U.S. Cellular, will be responsible for issuing asset-backed variable funding notes (Notes), which are collateralized by the equipment installment plan receivables owned by the Trust. Given that U.S. Cellular has the power to direct the activities of these SPEs, and that these SPEs lack sufficient equity to finance their activities, U.S. Cellular is deemed to have a controlling financial interest in the SPEs and, therefore, consolidates them. All transactions with third parties (e.g., issuance of the asset-backed variable funding notes) will be accounted for as a secured borrowing due to the pledging of equipment installment plan contracts as collateral, significant continuing involvement in the transferred assets, subordinated interests of the cash flows, and continued evidence of control of the receivables. Refer to Note 13 — Debt , Receivables Securitization Agreement for additional details regarding the securitization agreement for which these entities were established. The following VIEs were formed to participate in FCC auctions of wireless spectrum licenses and to fund, establish, and provide wireless service with respect to any FCC wireless spectrum licenses won in the auctions: ▪ Advantage Spectrum, L.P. (Advantage Spectrum) and Sunshine Spectrum, Inc., the general partner of Advantage Spectrum; and ▪ King Street Wireless, L.P. (King Street Wireless) and King Street Wireless, Inc., the general partner of King Street Wireless. These particular VIEs are collectively referred to as designated entities. The power to direct the activities that most significantly impact the economic performance of these VIEs is shared. Specifically, the general partner of these VIEs has the exclusive right to manage, operate and control the limited partnerships and make all decisions to carry on the business of the partnerships. The general partner of each partnership needs the consent of the limited partner, an indirect TDS subsidiary, to sell or lease certain wireless spectrum licenses, to make certain large expenditures, admit other partners or liquidate the limited partnerships. Although the power to direct the activities of these VIEs is shared, TDS has the most significant level of exposure to the variability associated with the economic performance of the VIEs, indicating that TDS is the primary beneficiary of the VIEs. Therefore, in accordance with GAAP, these VIEs are consolidated. TDS also consolidates other VIEs that are limited partnerships that provide wireless service. 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, U.S. Cellular 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 are also recognized as VIEs and are consolidated 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. December 31, 2019 2018 (Dollars in millions) Assets Cash and cash equivalents $ 19 $ 9 Short-term investments — 17 Accounts receivable 637 609 Inventory, net 5 5 Other current assets 7 5 Licenses 647 647 Property, plant and equipment, net 95 88 Operating lease right-of-use assets 42 — Other assets and deferred charges 347 347 Total assets $ 1,799 $ 1,727 Liabilities Current liabilities $ 30 $ 31 Long-term operating lease liabilities 39 — Other deferred liabilities and credits 13 15 Total liabilities $ 82 $ 46 Unconsolidated VIEs TDS manages the operations of and holds a variable interest in certain other limited partnerships, but is not the primary beneficiary of these entities and, therefore, does not consolidate them under the variable interest model. TDS’ total investment in these unconsolidated entities was $5 million and $4 million at December 31, 2019 and 2018 , respectively, and is included in Investments in unconsolidated entities in TDS’ Consolidated Balance Sheet. The maximum exposure from unconsolidated VIEs is limited to the investment held by TDS in those entities. Other Related Matters TDS made contributions, loans and/or advances to its VIEs totaling $255 million , $152 million and $821 million during 2019 , 2018 and 2017 , respectively; of which $214 million in 2019 , $116 million in 2018 and $790 million in 2017 are related to USCC EIP LLC as discussed above. TDS may agree to make additional capital contributions and/or advances to these or other VIEs and/or to their general partners to provide additional funding for operations or the development of wireless spectrum licenses granted in various auctions. TDS may finance such amounts with a combination of cash on hand, borrowings under its revolving credit agreement and/or other long-term debt. There is no assurance that TDS will be able to obtain additional financing on commercially reasonable terms or at all to provide such financial support. The limited partnership agreements of Advantage Spectrum and King Street Wireless also provide the general partner with a put option whereby the general partner may require the limited partner, a subsidiary of U.S. Cellular, to purchase its interest in the limited partnership. The general partner’s put options related to its interests in King Street Wireless became exercisable in 2019. The general partner’s put options related to its interest in Advantage Spectrum will become exercisable in 2021 and 2022. The greater of the carrying value of the general partner's investment or the value of the put option, net of any borrowings due to TDS, is recorded as Noncontrolling interests with redemption features in TDS’ Consolidated Balance Sheet. Also in accordance with GAAP, minority share of income or changes in the redemption value of the put options, net of interest accrued on the loans, are recorded as a component of Net income attributable to noncontrolling interests, net of tax, in TDS’ Consolidated Statement of Operations. During the first quarter of 2018, TDS recorded an out-of-period adjustment attributable to 2016 and 2017 due to errors in the application of accounting guidance applicable to the calculation of Noncontrolling interests with redemption features related to King Street Wireless, Inc. This out-of-period adjustment had the impact of increasing Net income attributable to noncontrolling interests, net of tax, by $6 million and decreasing Net income attributable to TDS shareholders by $6 million in 2018. TDS determined that this adjustment was not material to any of the periods impacted. |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Note 17 Noncontrolling Interests The following schedule discloses the effects of Net income attributable to TDS shareholders and changes in TDS’ ownership interest in U.S. Cellular on TDS’ equity for 2019 , 2018 and 2017 : Year Ended December 31, 2019 2018 2017 (Dollars in millions) Net income attributable to TDS shareholders $ 121 $ 135 $ 153 Transfers (to) from the noncontrolling interests Change in TDS’ Capital in excess of par value from U.S. Cellular's issuance of U.S. Cellular shares (23 ) (30 ) (12 ) Change in TDS’ Capital in excess of par value from U.S. Cellular’s repurchase of U.S. Cellular shares 6 — — Net transfers (to) from noncontrolling interests (17 ) (30 ) (12 ) Change from net income attributable to TDS shareholders and transfers (to) from noncontrolling interests $ 104 $ 105 $ 141 Mandatorily Redeemable Noncontrolling Interests in Finite-Lived Subsidiaries TDS’ consolidated financial statements include certain noncontrolling interests that meet the GAAP definition of mandatorily redeemable financial instruments. These mandatorily redeemable noncontrolling interests represent interests held by third parties in consolidated partnerships, where the terms of the underlying partnership agreement provide for a defined termination date at which time the assets of the subsidiary are to be sold, the liabilities are to be extinguished and the remaining net proceeds are to be distributed to the noncontrolling interest holders and TDS in accordance with the respective partnership agreements. The termination dates of these mandatorily redeemable noncontrolling interests range from 2085 to 2092 . The estimated aggregate amount that would be due and payable to settle all of these noncontrolling interests, assuming an orderly liquidation of the finite-lived consolidated partnerships on December 31, 2019 , net of estimated liquidation costs, is $20 million . This amount excludes redemption amounts recorded in Noncontrolling interests with redemption features in the Consolidated Balance Sheet. The estimate of settlement value was based on certain factors and assumptions which are subjective in nature. Changes in those factors and assumptions could result in a materially larger or smaller settlement amount. The corresponding carrying value of the mandatorily redeemable noncontrolling interests in finite-lived consolidated partnerships at December 31, 2019 , was $5 million , and is included in Noncontrolling interests in the Consolidated Balance Sheet. The excess of the aggregate settlement value over the aggregate carrying value of these mandatorily redeemable noncontrolling interests is due primarily to the unrecognized appreciation of the noncontrolling interest holders’ share of the underlying net assets in the consolidated partnerships. Neither the noncontrolling interest holders’ share, nor TDS’ share, of the appreciation of the underlying net assets of these subsidiaries is reflected in the consolidated financial statements. |
Common Shareholders' Equity
Common Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Common Shareholders' Equity | Note 18 Common Shareholders’ Equity Common Stock Series A Common Shares are convertible on a share-for-share basis into Common Shares. In matters other than the election of directors, each Series A Common Share is entitled to ten votes per share, compared to one vote for each Common Share. The Series A Common Shares are entitled to elect eight directors, and the Common Shares elect four . TDS has reserved 7,234,000 Common Shares at December 31, 2019 , for possible issuance upon conversion of Series A Common Shares. The following table summarizes the number of Common and Series A Common Shares issued. Common Shares Series A Common Shares Common Treasury Shares (Shares in millions) Balance at December 31, 2016 126 7 23 Dividend reinvestment, incentive and compensation plans — — (1 ) Balance at December 31, 2017 126 7 22 Dividend reinvestment, incentive and compensation plans — — (3 ) Balance at December 31, 2018 126 7 19 Dividend reinvestment, incentive and compensation plans — — (1 ) Balance at December 31, 2019 126 7 18 On August 2, 2013, the Board of Directors of TDS authorized a $250 million stock repurchase program for the purchase of TDS Common Shares from time to time pursuant to open market purchases, block transactions, private purchases or otherwise, depending on market conditions. This authorization does not have an expiration date. As of December 31, 2019 , the maximum dollar value of TDS Common Shares that may yet be purchased under TDS' program was $199 million . In November 2009, U.S. Cellular announced by Form 8-K that the Board of Directors of U.S. Cellular authorized the repurchase of up to 1,300,000 Common Shares on an annual basis beginning in 2009 and continuing each year thereafter, on a cumulative basis. In December 2016, the U.S. Cellular Board amended this authorization to provide that, beginning on January 1, 2017, the authorized repurchase amount with respect to a particular year will be any amount from zero to 1,300,000 Common Shares, as determined by the Pricing Committee of the Board of Directors, and that if the Pricing Committee did not specify an amount for any year, such amount would be zero for such year. The Pricing Committee has not specified any increase in the authorization since that time. The Pricing Committee also was authorized to decrease the cumulative amount of the authorization at any time, but has not taken any action to do so at this time. As of December 31, 2019 , the total cumulative amount of Common Shares authorized to be purchased is 5,311,000 . The authorization provides that share repurchases will be made pursuant to open market purchases, block purchases, private purchases, or otherwise, depending on market prices and other conditions. This authorization does not have an expiration date. Tax-Deferred Savings Plan At December 31, 2019 ,TDS has reserved 90,000 Common Shares for issuance under the TDS Tax-Deferred Savings Plan, a qualified profit‑sharing plan pursuant to Sections 401(a) and 401(k) of the Internal Revenue Code. Participating employees have the option of investing their contributions and TDS’ contributions in a TDS Common Share fund, a U.S. Cellular Common Share fund or certain unaffiliated funds. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock Based Compensation | Note 19 Stock-Based Compensation TDS Consolidated The following table summarizes stock-based compensation expense recognized during 2019 , 2018 and 2017 : Year Ended December 31, 2019 2018 2017 (Dollars in millions) Stock option awards $ 3 $ 5 $ 10 Restricted stock unit awards 33 30 29 Performance share unit awards 21 17 5 Deferred compensation bonus and matching stock unit awards — — 1 Awards under Non-Employee Director compensation plan 2 2 1 Total stock-based compensation, before income taxes 59 54 46 Income tax benefit (15 ) (14 ) (17 ) Total stock-based compensation expense, net of income taxes $ 44 $ 40 $ 29 At December 31, 2019 , unrecognized compensation cost for all stock‑based compensation awards was $49 million and is expected to be recognized over a weighted average period of 1.8 years. The following table provides a summary of the classification of stock-based compensation expense included in the Consolidated Statement of Operations for the years ended: December 31, 2019 2018 2017 (Dollars in millions) Selling, general and administrative expense $ 54 $ 49 $ 42 Cost of services expense 5 5 4 Total stock-based compensation $ 59 $ 54 $ 46 TDS’ tax benefits realized from the exercise of stock options and the vesting of other awards totaled $13 million in 2019 . TDS (Excluding U.S. Cellular) The information in this section relates to stock‑based compensation plans using the equity instruments of TDS. Participants in these plans are employees of TDS Corporate and TDS Telecom and Non-employee Directors of TDS. Information related to plans using the equity instruments of U.S. Cellular are shown in the U.S. Cellular section following the TDS section. Under the TDS Long-Term Incentive Plans, TDS may grant fixed and performance based incentive and non-qualified stock options, restricted stock, restricted stock units, and deferred compensation stock unit awards to key employees. TDS had reserved 12,475,000 Common Shares at December 31, 2019 , for equity awards granted and to be granted under the TDS Long-Term Incentive Plans in effect. At December 31, 2019 , the only types of awards outstanding are fixed non-qualified stock option awards, restricted stock unit awards, performance share awards and deferred compensation stock unit awards. TDS has also established a Non-Employee Directors’ compensation plan under which it has reserved 225,000 TDS Common Shares at December 31, 2019 , for issuance as compensation to members of the Board of Directors who are not employees of TDS. TDS uses treasury stock to satisfy requirements for shares issued pursuant to its various stock-based compensation plans. Long-Term Incentive Plan – Stock Options Stock options granted to key employees are exercisable over a specified period not in excess of ten years . Stock options generally vest over periods up to three years from the date of grant. Stock options outstanding at December 31, 2019 , expire between 2020 and 2029 . However, vested stock options typically expire 30 days after the effective date of an employee’s termination of employment for reasons other than retirement. Employees who leave at the age of retirement have 90 days (or one year if they satisfy certain requirements) within which to exercise their vested stock options. The exercise price of options equals the market value of TDS common stock on the date of grant. TDS estimated the fair value of stock options granted in 2019 , 2018 and 2017 using the Black-Scholes valuation model and the assumptions shown in the table below: 2019 2018 2017 Expected life 6.2 years 6.3 years 6.4 years Expected annual volatility rate 29.0 % 28.6 % 30.4 % Dividend yield 2.1 % 2.5 % 2.2 % Risk-free interest rate 2.4 % 2.9 % 2.0 % Estimated annual forfeiture rate 3.8 % 3.3 % 2.5 % Pre-vesting forfeitures and expected life are estimated based on historical experience related to similar awards, giving considerations to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. TDS believes that its historical experience provides the best estimates of future pre-vesting forfeitures and future expected life. The expected volatility assumption is based on historical volatility of TDS’ common stock over a period commensurate with the expected life. The dividend yield assumption is equal to the dividends declared in the most recent year as a percentage of the share price on the date of grant. The risk-free interest rate assumption is determined using the U.S. Treasury Yield Curve Rate with a term length that approximates the expected life of the stock options. A summary of TDS stock options (total and portion exercisable) and changes during 2019 is presented in the tables and narrative below. Common Share Options Number of Options Weighted Average Exercise Prices Aggregate Intrinsic Value (in millions) Weighted Average Remaining Contractual Life (in years) Outstanding at December 31, 2018 4,763,000 $ 26.57 (3,270,000 exercisable) $ 26.12 Granted 208,000 $ 30.72 Exercised (826,000 ) $ 27.25 Forfeited (54,000 ) $ 27.70 Outstanding at December 31, 2019 4,091,000 $ 26.63 $ 4 5.0 (2,896,000 exercisable) $ 26.32 $ 4 3.7 The weighted average grant date fair value per share of the TDS stock options granted in 2019 , 2018 and 2017 was $7.70 , $6.33 and $7.06 , respectively. The aggregate intrinsic value of TDS stock options exercised in 2019 , 2018 and 2017 was $7 million , $14 million and $1 million , respectively. The aggregate intrinsic value at December 31, 2019 , presented in the table above represents the total pre-tax intrinsic value (the difference between TDS’ closing stock prices and the exercise price, multiplied by the number of in-the-money options) that would have been received by option holders had all options been exercised on December 31, 2019 . Long-Term Incentive Plans – Restricted Stock Units TDS also grants restricted stock unit awards to key employees. Each outstanding restricted stock unit is convertible into one Common Share Award. The restricted stock unit awards currently outstanding were granted in 2017 , 2018 and 2019 and will vest in 2020 , 2021 and 2022 , respectively. TDS estimates the fair value of restricted stock units by reducing the grant-date price of TDS’ shares by the present value of the dividends expected to be paid on the underlying shares during the requisite service period, discounted at the appropriate risk-free interest rate, since employees are not entitled to dividends declared on the underlying shares while the restricted stock is unvested. The fair value is then recognized as compensation cost on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. A summary of TDS nonvested restricted stock units and changes during 2019 is presented in the table below: Common Restricted Stock Units Number Weighted Average Grant Date Fair Value Nonvested at December 31, 2018 1,212,000 $ 25.73 Granted 425,000 $ 28.81 Vested (355,000 ) $ 27.87 Forfeited (49,000 ) $ 26.11 Nonvested at December 31, 2019 1,233,000 $ 26.16 The total fair values as of the respective vesting dates of restricted stock units vested during 2019 , 2018 and 2017 were $11 million , $9 million and $9 million , respectively. The weighted average grant date fair value per share of the restricted stock units granted in 2019 , 2018 and 2017 was $28.81 , $23.87 and $25.97 , respectively. Long-Term Incentive Plans – Performance Share Units Beginning in 2016, TDS granted performance share units to certain TDS executive officers, and beginning in 2019 , to certain key TDS Corporate and TDS Telecom employees. Each recipient may be entitled to shares of TDS common stock equal to 0% to 200% of a communicated target award depending on the achievement of predetermined performance-based and market-based operating targets over three years . Performance-based operating targets for the TDS awards include Total Revenue and Return on Capital. Market-based operating targets are measured against TDS’ total shareholder return relative to a defined peer group. Performance-based operating targets for the TDS Telecom employees' awards include Total Revenue, Return on Capital and Adjusted EBITDA Margin Percent. Performance shares accumulate dividend equivalents, which are forfeitable if the performance metrics are not achieved. If the predetermined performance-based and market-based operating targets are met, the TDS units granted in 2017 , 2018 and 2019 will vest in 2020 , 2021 and 2022 , respectively, and the TDS Telecom employees' units granted in 2019 will vest in 2022 . TDS estimates fair value of performance-based operating targets using TDS’ closing stock price on the date of grant. An estimate of the number of performance units expected to vest based upon achieving the performance-based operating targets is made and the fair value is expensed on a straight-line basis over the requisite service period. Each reporting period these estimates are reviewed and stock compensation expense is adjusted accordingly to reflect the new estimates of total units expected to vest. If any part of the performance share units do not vest as a result of the established performance-based operating targets not being achieved, the related stock compensation expense is reversed. TDS estimates the market-based operating target’s fair value using an internally developed valuation model. This estimated fair value approximated TDS’ closing stock price at the date of grant for market-based share units granted in 2019 , 2018 and 2017 . This market-based operating target value determined at the date of grant is expensed on a straight-line basis over the requisite service period and the stock compensation expense is not adjusted during the performance period for the subsequent changes in the value of the market-based unit awards and will not be reversed even if the market-based operating target is not achieved. A summary of TDS nonvested performance share units and changes during 2019 is presented in the table below: Common Performance Share Units Number Weighted Average Grant Date Fair Value Nonvested at December 31, 2018 350,000 $ 27.38 Granted 229,000 $ 30.72 Vested (99,000 ) $ 29.45 Change in units based on approved performance factors 6,000 $ 29.45 Forfeited (7,000 ) $ 30.33 Accumulated dividend equivalents 10,000 $ 28.26 Nonvested at December 31, 2019 489,000 $ 28.53 The total fair value of performance share units that vested during 2019 was $4 million . No performance share units vested during 2018 or 2017 . The weighted average grant date fair value per share of the performance share units granted in 2019 , 2018 and 2017 was $30.72 , $25.70 and $27.79 , respectively. Long-Term Incentive Plans – Deferred Compensation Stock Units Certain TDS employees may elect to defer receipt of all or a portion of their annual bonuses and to receive a company matching contribution on the amount deferred. All bonus compensation that is deferred by employees electing to participate is immediately vested and is deemed to be invested in TDS Common Share units. The amount of TDS’ matching contribution depends on the portion of the annual bonus that is deferred. Participants receive a 25% stock unit match for amounts deferred up to 50% of their total annual bonus and a 33% match for amounts that exceed 50% of their total annual bonus; such matching contributions also are deemed to be invested in TDS Common Share units and vest over three years . The total fair values of deferred compensation stock units that vested during 2019 , 2018 and 2017 were less than $1 million in each respective year. The weighted average grant date fair value per share of the deferred compensation stock units granted in 2019 , 2018 and 2017 was $31.05 , $28.96 and $27.13 , respectively. As of December 31, 2019 , there were 96,000 vested but unissued deferred compensation stock units valued at $2 million . Compensation of Non-Employee Directors TDS issued 28,000 , 32,000 and 27,000 Common Shares under its Non-Employee Director plan in 2019 , 2018 and 2017 , respectively. Dividend Reinvestment Plans TDS had reserved 464,000 Common Shares at December 31, 2019 , for issuance under Automatic Dividend Reinvestment and Stock Purchase Plans and 183,000 Series A Common Shares for issuance under the Series A Common Share Automatic Dividend Reinvestment Plan. These plans enabled holders of TDS’ Common Shares to reinvest cash dividends in Common Shares and holders of Series A Common Shares to reinvest cash dividends in Series A Common Shares. The purchase price of the shares is 95% of the market value, based on the average of the daily high and low sales prices for TDS’ Common Shares on the New York Stock Exchange for the ten trading days preceding the date on which the purchase is made. These plans are considered non-compensatory plans; therefore, no compensation expense is recognized for stock issued under these plans. U.S. Cellular The information in this section relates to stock‑based compensation plans using the equity instruments of U.S. Cellular. Participants in these plans are employees of U.S. Cellular and Non-employee Directors of U.S. Cellular. Information related to plans using the equity instruments of TDS are shown in the previous section. U.S. Cellular has established the following stock‑based compensation plans: Long-Term Incentive Plans and a Non-Employee Director compensation plan. Under the U.S. Cellular Long-Term Incentive Plans, U.S. Cellular may grant fixed and performance based incentive and non-qualified stock options, restricted stock, restricted stock units, and deferred compensation stock unit awards to key employees. At December 31, 2019 , the only types of awards outstanding are fixed non-qualified stock option awards, restricted stock unit awards, performance share awards and deferred compensation stock unit awards. Under the Non-Employee Director compensation plan, U.S. Cellular may grant Common Shares to members of the Board of Directors who are not employees of U.S. Cellular or TDS. At December 31, 2019 , U.S. Cellular had reserved 12,867,000 Common Shares for equity awards granted and to be granted under the Long-Term Incentive Plans and 123,000 Common Shares for issuance under the Non-Employee Director compensation plan. U.S. Cellular uses treasury stock to satisfy requirements for Common Shares issued pursuant to its various stock-based compensation plans. Long-Term Incentive Plans – Stock Options Stock options granted to key employees are exercisable over a specified period not in excess of ten years . Stock options generally vest over a period of three years from the date of grant. Stock options outstanding at December 31, 2019 , expire between 2020 and 2026 . However, vested stock options typically expire 30 days after the effective date of an employee’s termination of employment for reasons other than retirement. Employees who leave at the age of retirement have 90 days (or one year if they satisfy certain requirements) within which to exercise their vested stock options. The exercise price of options equals the market value of U.S. Cellular Common Shares on the date of grant. U.S. Cellular did not grant stock option awards in 2019 , 2018 or 2017 . A summary of U.S. Cellular stock options outstanding (total and portion exercisable) and changes during 2019 is presented in the table below: Common Share Options Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value (in millions) Weighted Average Remaining Contractual Life (in years) Outstanding at December 31, 2018 806,000 $ 43.10 (420,000 exercisable) $ 42.39 Exercised (339,000 ) $ 44.27 Expired (7,000 ) $ 45.87 Outstanding at December 31, 2019 460,000 $ 42.20 $ — 4.9 (460,000 exercisable) $ 42.20 $ — 4.9 The aggregate intrinsic value of U.S. Cellular stock options exercised in 2019 , 2018 and 2017 was $3 million , $19 million and $1 million , respectively. The aggregate intrinsic value at December 31, 2019 , presented in the table above represents the total pre-tax intrinsic value (the difference between U.S. Cellular’s closing stock price and the exercise price multiplied by the number of in-the-money options) that would have been received by option holders had all options been exercised on December 31, 2019 . Long-Term Incentive Plans – Restricted Stock Units Restricted stock unit awards granted to key employees generally vest after three years . The restricted stock unit awards currently outstanding were granted in 2017 , 2018 and 2019 and will vest in 2020 , 2021 and 2022 , respectively. U.S. Cellular estimates the fair value of restricted stock units based on the closing market price of U.S. Cellular shares on the date of grant. The fair value is then recognized as compensation cost on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. A summary of U.S. Cellular nonvested restricted stock units at December 31, 2019 , and changes during the year then ended is presented in the table below: Common Restricted Stock Units Number Weighted Average Grant Date Fair Value Nonvested at December 31, 2018 1,569,000 $ 39.74 Granted 478,000 $ 46.81 Vested (525,000 ) $ 42.99 Forfeited (61,000 ) $ 39.38 Nonvested at December 31, 2019 1,461,000 $ 40.90 The total fair value of restricted stock units that vested during 2019 , 2018 and 2017 was $25 million , $16 million and $11 million , respectively. The weighted average grant date fair value per share of the restricted stock units granted in 2019 , 2018 and 2017 was $46.81 , $38.19 and $38.04 , respectively. Long-Term Incentive Plans – Performance Share Units Beginning in 2017, U.S. Cellular granted performance share units to key employees. The performance share units vest after three years . Each recipient may be entitled to shares of U.S. Cellular common stock equal to 50% to 200% of a communicated target award depending on the achievement of predetermined performance-based operating targets over the performance period, which is a one-year period beginning on January 1 in the year of grant to December 31 in the year of grant. The remaining time through the end of the vesting period is considered the “time-based period”. Performance-based operating targets include Simple Free Cash Flow, Consolidated Total Operating Revenues and Postpaid Handset Voluntary Defections. Subject to vesting during the time-based period, the performance share unit award agreement provides that in no event shall the award be less than 50% of the target opportunity as of the grant date. The performance share units currently outstanding were granted in 2017 , 2018 and 2019 and will vest in 2020 , 2021 and 2022 , respectively. U.S. Cellular estimates the fair value of performance share units using U.S. Cellular’s closing stock price on the date of grant. An estimate of the number of performance share units expected to vest based upon achieving the performance-based operating targets is made and the aggregate fair value is expensed on a straight-line basis over the requisite service period. Each reporting period, during the performance period, the estimate of the number of performance share units expected to vest is reviewed and stock compensation expense is adjusted as appropriate to reflect the revised estimate of the aggregate fair value of the performance share units expected to vest. A summary of U.S. Cellular’s nonvested performance share units and changes during 2019 is presented in the table below: Common Performance Share Units Number Weighted Average Grant Date Fair Value Nonvested at December 31, 2018 768,000 $ 37.78 Granted 323,000 $ 46.43 Vested (5,000 ) $ 37.92 Change in units based on approved performance factors 188,000 $ 38.81 Forfeited (29,000 ) $ 38.55 Nonvested at December 31, 2019 1,245,000 $ 40.16 The total fair value of performance share units that vested during 2019 was less than $1 million . No performance share units vested during 2018 or 2017 . The weighted average grant date fair value per share of the performance share units granted in 2019 , 2018 and 2017 was $46.43 , $38.81 and $36.92 , respectively. Long-Term Incentive Plans – Deferred Compensation Stock Units Certain U.S. Cellular employees may elect to defer receipt of all or a portion of their annual bonuses and to receive a company matching contribution on the amount deferred. All bonus compensation that is deferred by employees electing to participate is immediately vested and is deemed to be invested in U.S. Cellular Common Share stock units. The amount of U.S. Cellular’s matching contribution depends on the portion of the annual bonus that is deferred. Participants receive a 25% match for amounts deferred up to 50% of their total annual bonus and a 33% match for amounts that exceed 50% of their total annual bonus; such matching contributions also are deemed to be invested in U.S. Cellular Common Share stock units and vest over three years . The total fair value of deferred compensation stock units that vested during 2019 , 2018 and 2017 was less than $1 million in each respective year. The weighted average grant date fair value per share of the deferred compensation stock units granted in 2018 and 2017 was $40.72 and $36.02 , respectively. There were no deferred compensation stock units granted during 2019 . As of December 31, 2019 , there were 34,000 vested but unissued deferred compensation stock units valued at $1 million . Compensation of Non-Employee Directors U.S. Cellular issued 13,000 , 18,000 and 15,000 Common Shares in 2019 , 2018 and 2017 , respectively, under its Non-Employee Director compensation plan. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 20 Business Segment Information U.S. Cellular and TDS Telecom are billed for services they receive from TDS, consisting primarily of information processing, accounting and finance, and general management services. Such billings are based on expenses specifically identified to U.S. Cellular and TDS Telecom and on allocations of common expenses. Management believes the method used to allocate common expenses is reasonable and that all expenses and costs applicable to U.S. Cellular and TDS Telecom are reflected in the accompanying business segment information on a basis that is representative of what they would have been if U.S. Cellular and TDS Telecom operated on a stand-alone basis. TDS has re-evaluated internal reporting roles with regard to its HMS business unit and, as a result, has changed its reportable segments. Effective January 1, 2018, HMS is no longer reported under TDS Telecom, but is reported as a part of Corporate, Eliminations and Other. Prior periods have been recast to conform to the revised presentation. Financial data for TDS’ reportable segments for 2019 , 2018 and 2017 , is as follows. See Note 1 — Summary of Significant Accounting Policies and Recent Accounting Pronouncements for additional information. TDS Telecom Year ended or as of December 31, 2019 U.S. Cellular Wireline Cable TDS Telecom Total 1 Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 3,035 $ 682 $ 247 $ 928 $ 96 $ 4,059 Equipment and product sales 987 1 — 1 129 1,117 Total operating revenues 4,022 683 247 930 224 5,176 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 756 263 105 368 78 1,202 Cost of equipment and products 1,028 1 — 1 106 1,135 Selling, general and administrative 1,406 199 62 260 51 1,717 Depreciation, amortization and accretion 702 132 68 200 30 932 (Gain) loss on asset disposals, net 19 (8 ) 1 (7 ) — 12 (Gain) loss on sale of business and other exit costs, net (1 ) — — — — (1 ) Operating income (loss) 112 96 11 107 (40 ) 179 Equity in earnings of unconsolidated entities 166 — — — 2 168 Interest and dividend income 17 10 2 12 — 29 Interest expense (110 ) 3 — 3 (58 ) (165 ) Income (loss) before income taxes 185 110 13 122 (96 ) 211 Income tax expense (benefit) 2 52 30 (18 ) 64 Net income 133 92 (78 ) 147 Add back: Depreciation, amortization and accretion 702 132 68 200 30 932 (Gain) loss on asset disposals, net 19 (8 ) 1 (7 ) — 12 (Gain) loss on sale of business and other exit costs, net (1 ) — — — — (1 ) Interest expense 110 (3 ) — (3 ) 58 165 Income tax expense (benefit) 2 52 30 (18 ) 64 Adjusted EBITDA 3 $ 1,015 $ 231 $ 82 $ 313 $ (9 ) $ 1,319 Investments in unconsolidated entities $ 447 $ 4 $ — $ 4 $ 37 $ 488 Total assets 4 $ 8,164 $ 1,471 $ 734 $ 2,196 $ 421 $ 10,781 Capital expenditures $ 710 $ 243 $ 73 $ 316 $ 6 $ 1,032 TDS Telecom Year ended or as of December 31, 2018 5 U.S. Cellular Wireline Cable TDS Telecom Total 1 Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 2,978 $ 697 $ 230 $ 925 $ 96 $ 3,999 Equipment and product sales 989 2 — 2 119 1,110 Total operating revenues 3,967 699 230 927 215 5,109 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 758 266 104 369 79 1,206 Cost of equipment and products 1,031 1 — 1 98 1,130 Selling, general and administrative 1,388 197 57 254 52 1,694 Depreciation, amortization and accretion 640 142 69 212 31 883 (Gain) loss on asset disposals, net 10 (3 ) 1 (2 ) 1 9 (Gain) loss on license sales and exchanges, net (18 ) — — — — (18 ) Operating income (loss) 158 95 (2 ) 93 (46 ) 205 Equity in earnings of unconsolidated entities 159 — — — 1 160 Interest and dividend income 15 7 1 8 3 26 Interest expense (116 ) 2 — 2 (58 ) (172 ) Other, net (1 ) 3 — 2 1 2 Income (loss) before income taxes 215 106 (1 ) 105 (99 ) 221 Income tax expense (benefit) 2 51 16 (21 ) 46 Net income (loss) 164 89 (78 ) 175 Add back: Depreciation, amortization and accretion 640 142 69 212 31 883 (Gain) loss on asset disposals, net 10 (3 ) 1 (2 ) 1 9 (Gain) loss on license sales and exchanges, net (18 ) — — — — (18 ) Interest expense 116 (2 ) — (2 ) 58 172 Income tax expense (benefit) 2 51 16 (21 ) 46 Adjusted EBITDA 3 $ 963 $ 243 $ 70 $ 313 $ (9 ) $ 1,267 Investments in unconsolidated entities $ 441 $ 4 $ — $ 4 $ 35 $ 480 Total assets $ 7,274 $ 1,304 $ 639 $ 1,934 $ 575 $ 9,783 Capital expenditures $ 515 $ 176 $ 56 $ 232 $ 20 $ 767 TDS Telecom Year ended or as of December 31, 2017 U.S. Cellular Wireline Cable TDS Telecom Total 1 Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 2,978 $ 713 $ 206 $ 917 $ 84 $ 3,979 Equipment and product sales 912 1 — 1 152 1,065 Total operating revenues 3,890 714 206 919 235 5,044 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 732 258 98 355 77 1,164 Cost of equipment and products 1,071 2 — 2 122 1,195 Selling, general and administrative 6 1,412 194 54 248 29 1,689 Depreciation, amortization and accretion 615 151 44 195 34 844 Loss on impairment of goodwill 7 370 — — — (108 ) 262 (Gain) loss on asset disposals, net 17 1 2 3 1 21 (Gain) loss on sale of business and other exit costs, net (1 ) — — — — (1 ) (Gain) loss on license sales and exchanges, net (22 ) — — — — (22 ) Operating income (loss) (304 ) 108 8 116 80 (108 ) Equity in earnings of unconsolidated entities 137 — — — — 137 Interest and dividend income 8 5 — 5 2 15 Interest expense (113 ) — — — (57 ) (170 ) Other, net 6 — 3 — 3 1 4 Income (loss) before income taxes (272 ) 117 8 125 25 (122 ) Income tax expense (benefit) 2 (287 ) (13 ) 21 (279 ) Net income (loss) 15 138 4 157 Add back: Depreciation, amortization and accretion 615 151 44 195 34 844 Loss on impairment of goodwill 7 370 — — — (108 ) 262 (Gain) loss on asset disposals, net 17 1 2 3 1 21 (Gain) loss on sale of business and other exit costs, net (1 ) — — — — (1 ) (Gain) loss on license sales and exchanges, net (22 ) — — — — (22 ) Interest expense 113 — — — 57 170 Income tax expense (benefit) 2 (287 ) (13 ) 21 (279 ) Adjusted EBITDA 3 $ 820 $ 269 $ 54 $ 323 $ 9 $ 1,152 Investments in unconsolidated entities $ 415 $ 4 $ — $ 4 $ 34 $ 453 Total assets $ 6,841 $ 1,260 $ 644 $ 1,897 $ 557 $ 9,295 Capital expenditures $ 469 $ 146 $ 55 $ 201 $ 24 $ 694 Numbers may not foot due to rounding. 1 TDS Telecom Total includes eliminations between the Wireline and Cable segments. 2 Income tax expense (benefit) is not provided at the individual segment level for Wireline and Cable. TDS calculates income tax expense for “TDS Telecom Total”. 3 Adjusted earnings before interest, taxes, depreciation, amortization and accretion (Adjusted EBITDA) is a segment measure reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance. Adjusted EBITDA is defined as net income, adjusted for the items set forth in the reconciliation above. TDS believes Adjusted EBITDA is a useful measure of TDS’ operating results before significant recurring non-cash charges, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of TDS' financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management's evaluation of business performance. 4 As of January 1, 2019, U.S. Cellular adopted ASC 842 using a modified retrospective method. Under this method, the new accounting standard is applied only to the most recent period presented. As a result, 2019 includes the impacts of ASC 842, but prior periods remain as previously reported. See Note 11 — Leases for additional information. 5 As of January 1, 2018, TDS adopted the new revenue recognition accounting standard, ASC 606, using a modified retrospective approach. Under this method, the new accounting standard is applied only to the most recent period presented. As a result, 2018 amounts include the impacts of ASC 606, but prior periods remain as previously reported. 6 ASU 2017-07, regarding net periodic pension cost and net periodic postretirement benefit cost was adopted as of January 1, 2018, and applied retrospectively. All prior year numbers have been recast to conform to this standard. 7 During 2017, U.S. Cellular recorded a goodwill impairment of $370 million while TDS recorded a goodwill impairment of the U.S. Cellular reporting unit of $227 million . Prior to 2009, TDS accounted for U.S. Cellular's share repurchases as step acquisitions, allocating a portion of the share repurchase value to TDS' Goodwill. Further, goodwill of the U.S. Cellular reporting unit was impaired at the TDS level in 2003 but not at U.S. Cellular. Consequently, U.S. Cellular's goodwill on a stand-alone basis and any resulting impairments of goodwill does not equal the TDS consolidated goodwill related to U.S. Cellular. The TDS adjustment of $143 million is included in "Corporate, Eliminations and Other." During 2017, TDS also recorded a goodwill impairment of $35 million related to its HMS operations included in "Corporate, Eliminations and Other." For further information on the goodwill impairment see Note 8 — Intangible Assets . |
Supplemental Cash Flow Disclosu
Supplemental Cash Flow Disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Disclosures | Note 21 Supplemental Cash Flow Disclosures Following are supplemental cash flow disclosures regarding interest paid and income taxes paid. Year Ended December 31, 2019 2018 2017 (Dollars in millions) Interest paid $ 162 $ 168 $ 167 Income taxes paid, net of refunds received 44 40 56 Following are supplemental cash flow disclosures regarding transactions related to stock-based compensation awards. In certain situations, TDS and U.S. Cellular withhold shares that are issuable upon the exercise of stock options or the vesting of restricted shares to cover, and with a value equivalent to, the exercise price and/or the amount of taxes required to be withheld from the stock award holder at the time of the exercise or vesting. TDS and U.S. Cellular then pay the amount of the required tax withholdings to the taxing authorities in cash. TDS: Year Ended December 31, 2019 2018 2017 (Dollars in millions) Common Shares withheld 814,000 676,000 121,000 Aggregate value of Common Shares withheld $ 29 $ 21 $ 3 Cash receipts upon exercise of stock options 2 48 7 Cash disbursements for payment of taxes (8 ) (6 ) (3 ) Net cash receipts (disbursements) from exercise of stock options and vesting of other stock awards $ (6 ) $ 42 $ 4 U.S. Cellular: Year Ended December 31, 2019 2018 2017 (Dollars in millions) Common Shares withheld 452,000 1,550,000 145,000 Aggregate value of Common Shares withheld $ 23 $ 73 $ 6 Cash receipts upon exercise of stock options 1 29 5 Cash disbursements for payment of taxes (10 ) (11 ) (4 ) Net cash receipts (disbursements) from exercise of stock options and vesting of other stock awards $ (9 ) $ 18 $ 1 |
Certain Relationships And Relat
Certain Relationships And Related Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Certain Relationships and Related Transactions | Note 22 Certain Relationships and Related Transactions The following persons are partners of Sidley Austin LLP, the principal law firm of TDS and its subsidiaries: Walter C.D. Carlson, a trustee and beneficiary of a voting trust that controls TDS, the non-executive Chairman of the Board and member of the Board of Directors of TDS and a director of U.S. Cellular, a subsidiary of TDS and certain subsidiaries of TDS; and Stephen P. Fitzell, the General Counsel and/or an Assistant Secretary of TDS and U.S. Cellular and certain other subsidiaries of TDS. Walter C.D. Carlson does not provide legal services to TDS or its subsidiaries. TDS, U.S. Cellular and their subsidiaries incurred legal costs from Sidley Austin LLP of $10 million , $10 million and $11 million in 2019 , 2018 and 2017 , respectively. The Audit Committee of the Board of Directors of TDS is responsible for the review and evaluation of all related-party transactions as such term is defined by the rules of the New York Stock Exchange. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent events | Note 23 Subsequent Events On January 6, 2020, TDS entered into an unsecured $200 million senior term loan credit agreement. As of February 25, 2020, no borrowings have been made under the agreement. The term loan may be drawn in one or more advances by the one-year anniversary of the date of the agreement; amounts not drawn by that time will cease to be available. The maturity date of the term loan is January 6, 2027 and would accelerate in the event of a change in control. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The accounting policies of TDS conform to accounting principles generally accepted in the United States of America (GAAP) as set forth in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC). Unless otherwise specified, references to accounting provisions and GAAP in these notes refer to the requirements of the FASB ASC. The consolidated financial statements include the accounts of TDS and subsidiaries in which it has a controlling financial interest, including U.S. Cellular and TDS Telecom. In addition, the consolidated financial statements include certain entities in which TDS has a variable interest that requires consolidation under GAAP. See Note 16 — Variable Interest Entities for additional information relating to TDS’ VIEs. All material intercompany accounts and transactions have been eliminated. |
Use of Estimates | The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (a) the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and (b) the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Significant estimates are involved in accounting for goodwill, indefinite-lived intangible assets and income taxes. |
Cash, Cash Equivalents and Restricted Cash | Cash and cash equivalents include cash and highly liquid investments with original maturities of three months or less. Cash and cash equivalents subject to contractual restrictions are classified as restricted cash. |
Accounts Receivable | U.S. Cellular’s accounts receivable consist primarily of amounts owed by customers for wireless services and equipment sales, including sales of certain devices and accessories under installment plans, by agents for sales of equipment to them and by other wireless carriers whose customers have used U.S. Cellular’s wireless systems. TDS Telecom’s accounts receivable primarily consist of amounts owed by customers for services and products provided, by state and federal governments for grants and support funds, and by interexchange carriers for long-distance traffic, which TDS Telecom carries on its network. |
Allowance for Doubtful Accounts | The allowance for doubtful accounts is the best estimate of the amount of probable credit losses related to existing billed and unbilled accounts receivable. The allowance is estimated based on historical experience, account aging and other factors that could affect collectability. Accounts receivable balances are reviewed on either an aggregate or individual basis for collectability depending on the type of receivable. When it is probable that an account balance will not be collected, the account balance is charged against the allowance for doubtful accounts. TDS does not have any off-balance sheet credit exposure related to its customers. |
Inventory | Inventory consists primarily of wireless devices stated at the lower of cost, which approximates cost determined on the first-in first-out basis, or net realizable value. Net realizable value is determined by reference to the stand-alone selling price. |
Licenses and Goodwill | TDS has Goodwill as a result of its acquisition of wireline and cable companies. TDS performs its annual impairment assessment of Goodwill as of November 1 of each year or more frequently if there are events or circumstances that cause TDS to believe it is more likely than not that the carrying value of individual reporting units exceeds their respective fair values. Goodwill impairment loss will be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value. The loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. For purposes of conducting its Goodwill impairment tests, TDS Telecom identified two reporting units: Wireline and Cable. The discounted cash flow approach and guideline public company method were used to value the Wireline and Cable reporting units for the annual impairment tests. Based on the annual impairment assessments performed, Wireline and Cable did no t have an impairment of their Goodwill in 2019 or 2018 . In 2017, TDS recorded goodwill impairments related to its U.S. Cellular and HMS reporting units, which reduced the carrying value of their respective Goodwill to zero . Licenses consist of direct and incremental costs incurred in acquiring Federal Communications Commission (FCC) wireless spectrum licenses that provide TDS with the exclusive right to utilize designated radio spectrum within specific geographic service areas to provide wireless service. Although wireless spectrum licenses are issued for a fixed period of time, generally ten years , or in some cases twelve or fifteen years , the FCC has granted license renewals routinely and at a nominal cost. The wireless spectrum licenses held by TDS expire at various dates. TDS believes that it is probable that its future wireless spectrum license renewal applications will be granted. TDS determined that there are currently no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of the wireless spectrum licenses. Therefore, TDS has determined that wireless spectrum licenses are indefinite-lived intangible assets. U.S. Cellular performs its annual impairment assessment of wireless spectrum licenses as of November 1 of each year or more frequently if there are events or circumstances that cause U.S. Cellular to believe it is more likely than not that the carrying value of wireless spectrum licenses exceeds fair value. For purposes of its impairment testing, U.S. Cellular separated its FCC wireless spectrum licenses into eight units of accounting. The eight units of accounting consisted of one unit of accounting for developed operating market wireless spectrum licenses (built wireless spectrum licenses) and seven geographic non-operating market wireless spectrum licenses (unbuilt wireless spectrum licenses). U.S. Cellular performed a quantitative impairment assessment in 2019 and a qualitative impairment assessment in 2018 to determine whether the wireless spectrum licenses were impaired. Based on the impairment assessments performed, U.S. Cellular did no t have an impairment of its wireless spectrum licenses in 2019 or 2018 |
Franchise Rights | TDS Telecom has franchise rights as a result of acquisitions of cable businesses. Franchise rights are intangible assets that provide their holder with the right to operate a business in a certain geographical location as sanctioned by the franchiser, usually a government agency. Franchise rights are generally granted for ten years and may be renewed for additional terms upon approval by the granting authority. TDS anticipates that future renewals of its franchise rights will be granted. Effective January 1, 2018, TDS prospectively changed its estimated useful life for franchise rights from indefinite-lived to fifteen years , due primarily to the effects of increasing competition and advancements in technology for delivering and consuming video programming. Commensurate with this change, TDS reviewed its franchise rights for impairment, and noted there was no impairment as of January 1, 2018. As a result, Depreciation, amortization and accretion increased $17 million, calculated on a straight-line basis, and Net income decreased $13 million or $0.11 |
Investments in Unconsolidated Entities | For its equity method investments for which financial information is readily available, TDS records its equity in the earnings of the entity in the current period. For its equity method investments for which financial information is not readily available, TDS records its equity in the earnings of the entity on a one quarter lag basis. |
Property, Plant and Equipment | Property, plant and equipment is stated at the original cost of construction or purchase including capitalized costs of certain taxes, payroll-related expenses, interest and estimated costs to remove the assets. Expenditures that enhance the productive capacity of assets in service or extend their useful lives are capitalized and depreciated. Expenditures for maintenance and repairs of assets in service are charged to Cost of services or Selling, general and administrative expense, as applicable. Retirements and disposals of assets are recorded by removing the original cost of the asset (along with the related accumulated depreciation) from plant in service and recording it, together with proceeds, if any, and net removal costs (removal costs less an applicable accrued asset retirement obligation and salvage value realized), as a gain or loss, as appropriate. Certain Wireline segment assets use the group depreciation method. Accordingly, when a group method asset is retired in the ordinary course of business, the original cost of the asset and accumulated depreciation in the same amount are removed, with no gain or loss recognized on the disposition. TDS capitalizes certain costs of developing new information systems. Software licenses that qualify for capitalization as an asset are accounted for as the acquisition of an intangible asset and the incurrence of a liability to the extent that the license fees are not fully paid at acquisition. |
Depreciation and Amortization | Depreciation is provided using the straight-line method over the estimated useful life of the related asset, except for certain Wireline segment assets, which use the group depreciation method. The group depreciation method develops a depreciation rate based on the average useful life of a specific group of assets, rather than each asset individually. TDS depreciates leasehold improvement assets over periods ranging from one year to thirty years ; such periods approximate the shorter of the assets’ economic lives or the specific lease terms. Useful lives of specific assets are reviewed throughout the year to determine if changes in technology or other business changes would warrant accelerating the depreciation of those specific assets. There were no material changes to the assigned useful lives of the various categories of property, plant and equipment in 2019 , 2018 or 2017 . However, depreciation for certain specific assets was accelerated due to changes in technology. |
Impairment of Long-Lived Assets | TDS reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the assets might be impaired. U.S. Cellular has one asset group and TDS Telecom has two asset groups for purposes of assessing property, plant and equipment for impairment based on the integrated nature of its network, assets and operations. The cash flows generated by each of these groups is the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. |
Agent Liabilities | U.S. Cellular has relationships with agents, which are independent businesses that obtain customers for U.S. Cellular. At December 31, 2019 and 2018 , U.S. Cellular had accrued $59 million and $63 million , respectively, in agent related liabilities. These amounts are included in Other current liabilities in the Consolidated Balance Sheet. |
Debt Issuance Costs | Debt issuance costs include underwriters’ and legal fees and other charges related to issuing and renewing various borrowing instruments and other long–term agreements, and are amortized over the respective term of each instrument. Debt issuance costs related to TDS’ and U.S. Cellular's revolving credit agreements and U.S. Cellular's receivables securitization agreement are recorded in Other assets and deferred charges in the Consolidated Balance Sheet. All other debt issuance costs are presented as an offset to the related debt obligation in the Consolidated Balance Sheet. |
Asset Retirement Obligations | TDS records asset retirement obligations for the fair value of legal obligations associated with asset retirements and a corresponding increase in the carrying amount of the related long-lived asset in the period in which the obligations are incurred. In periods subsequent to initial measurement, TDS recognizes changes in the liability resulting from the passage of time and updates to the timing or the amount of the original estimates. The liability is accreted to its estimated settlement date value over the period to the estimated settlement date. The change in the carrying amount of the long-lived asset is depreciated over the average remaining life of the related asset. |
Treasury Shares | Common Shares repurchased by TDS are recorded at cost as treasury shares and result in a reduction of equity. When treasury shares are reissued, TDS determines the cost using the first-in, first-out cost method. The difference between the cost of the treasury shares and reissuance price is included in Capital in excess of par value or Retained earnings. |
Revenue Recognition | Revenues from sales of equipment and products are recognized when control has transferred to the customer, agent or third-party distributor. Service revenues are recognized as the related service is provided. Multiple Performance Obligations U.S. Cellular and TDS Telecom sell bundled service and equipment offerings. In these instances, TDS recognizes its revenue based on the relative standalone selling prices for each distinct service or equipment performance obligation, or bundles thereof. TDS estimates the standalone selling price of the device or accessory to be its retail price excluding discounts. TDS estimates the standalone selling price of wireless service to be the price offered to customers on month-to-month contracts. Equipment Installment Plans U.S. Cellular equipment revenue under equipment installment plan contracts is recognized at the time the device is delivered to the customer for the amount allocated to the equipment. Incentives Discounts, incentives, and rebates to agents and end customers that are deemed cash are recognized as a reduction of Operating revenues concurrently with the associated revenue. From time to time, U.S. Cellular may offer certain promotions to incentivize customers to switch to, or to purchase additional services from, U.S. Cellular. Under these types of promotions, an eligible customer may receive an incentive in the form of a discount off additional services purchased shown as a credit to the customer’s monthly bill. U.S. Cellular accounts for the future discounts as material rights at the time of the initial transaction by allocating and deferring revenue based on the relative proportion of the future discounts in comparison to the aggregate initial purchase. The deferred revenue will be recognized as service revenue in future periods. The following is a description of principal activities from which TDS generates its revenues. Services and products Nature, timing of satisfaction of performance obligations, and significant payment terms Wireless services Wireless service includes voice, messaging and data services. Revenue is recognized in Service revenues as wireless service is provided to the customer. Wireless services generally are billed and paid in advance on a monthly basis. Wireless devices and accessories U.S. Cellular offers a comprehensive range of wireless devices such as handsets, tablets, mobile hotspots, home phones and routers for use by its customers, as well as accessories. U.S. Cellular also sells wireless devices to agents and other third-party distributors for resale. U.S. Cellular frequently discounts wireless devices sold to new and current customers. U.S. Cellular also offers customers the option to purchase certain devices and accessories under installment contracts over a specified time period. For certain equipment installment plans, after a specified period of time, the customer may have the right to upgrade to a new device. Such upgrades require the customer to enter into an equipment installment contract for the new device, and transfer the existing device to U.S. Cellular. U.S. Cellular recognizes revenue in Equipment and product sales revenues when control of the device or accessory is transferred to the customer, agent or third-party distributor, which is generally upon delivery. Wireless roaming U.S. Cellular receives roaming revenues when other wireless carriers’ customers use U.S. Cellular’s wireless systems. U.S. Cellular recognizes revenue in Service revenues when the roaming service is provided. Wireless Eligible Telecommunications Carrier (ETC) Revenues Telecommunications companies may be designated by states, or in some cases by the FCC, as an ETC to receive support payments from the Universal Service Fund if they provide specified services in “high cost” areas. ETC revenues recognized in the reporting period represent the amounts which U.S. Cellular is entitled to receive for such period, as determined and approved in connection with U.S. Cellular’s designation as an ETC in various states. Wireless tower rents U.S. Cellular receives tower rental revenues when another carrier leases tower space on a U.S. Cellular owned tower. U.S. Cellular recognizes revenue in Service revenues in the period during which the services are provided. Wireline services Wireline services include broadband, video and voice services. Revenue is recognized in Service revenues as service is provided to the customer. Wireline services are generally billed and paid in advance on a monthly basis. Wireline wholesale revenues Wholesale revenues include network access services primarily to interexchange and wireless carriers for carrying data and voice traffic on TDS Telecom’s network, special access services and state and federal support payments, including A-CAM. Wholesale revenues are recorded as the related service is provided. Cable services Cable services include broadband, video and voice services. Revenue is recognized in Service revenues as service is provided to the customer. Cable services are generally billed and paid in advance on a monthly basis. IT hardware sales TDS recognizes equipment revenue when it no longer has any requirements to perform, when title has passed and when the products are accepted by the customer. Hosted and managed services HMS Service revenues consist of cloud and hosting solutions, managed services, Enterprise Resource Planning (ERP) application management, colocation services, and IT hardware related maintenance and professional services. Revenues related to these services are recognized as services are provided. Significant Judgments Revenues from sales of equipment and products are recognized when control has transferred to the customer, agent or third-party distributor. Service revenues are recognized as the related service is provided. Services are deemed to be highly interrelated when the method and timing of transfer and performance risk are the same. Highly interrelated services that are determined to not be distinct have been grouped into a single performance obligation. Each month of services promised is a performance obligation. The series of monthly service performance obligations promised over the course of the contract are combined into a single performance obligation for purposes of the allocation. TDS has made judgments regarding transaction price, including but not limited to issues relating to variable consideration, time value of money and returns. When determined to be significant in the context of the contract, these items are considered in the valuation of transaction price at contract inception or modification, as appropriate. As a practical expedient, TDS groups similar contracts or similar performance obligations together into portfolios of contracts or performance obligations if doing so does not result in a significant difference from accounting for the individual contracts discretely. TDS applies this grouping method for the following types of transactions: device activation fees, contract acquisition costs, contract fulfillment costs, and certain customer promotions. Contract portfolios are recognized over the respective expected customer lives or terms of the contracts. For contracts that involve multiple element service and equipment offerings, the transaction price is allocated to each performance obligation based on its relative standalone selling price. When payment is collected in advance of delivery of goods or services, a contract liability is recorded. A contract asset is recorded when revenue is recognized in advance of TDS’ right to receive consideration. Once there is an unconditional right to receive the consideration, TDS bills the customer under the terms of the respective contract and the amounts are recorded as receivables. TDS recognizes Equipment and product sales revenue when the equipment is delivered to the customer and a corresponding contract asset or liability is recorded for the difference between the amount of revenue recognized and the amount billed to the customer in cases where discounts are offered. The contract asset or liability is reduced over the contract term as service is provided and billed to the customer. |
Advertising Costs | TDS expenses advertising costs as incurred. Advertising costs totaled $227 million , $230 million and $228 million in 2019 , 2018 and 2017 , respectively. |
Income Taxes | TDS files a consolidated federal income tax return. Deferred taxes are computed using the liability method, whereby deferred tax assets are recognized for future deductible temporary differences and operating loss carryforwards, and deferred tax liabilities are recognized for future taxable temporary differences. Both deferred tax assets and liabilities are measured using the enacted tax rates in effect when the temporary differences are expected to reverse. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. TDS evaluates income tax uncertainties, assesses the probability of the ultimate settlement with the applicable taxing authority and records an amount based on that assessment. Deferred taxes are reported as a net non-current asset or liability by jurisdiction. Any corresponding valuation allowance to reduce the amount of deferred tax assets is also recorded as non-current. |
Stock-Based Compensation and Other Plans | TDS has established long-term incentive plans, dividend reinvestment plans, and a non-employee director compensation plan. The dividend reinvestment plan of TDS is not considered a compensatory plan and, therefore, recognition of compensation costs for grants made under this plan is not required. All other plans are considered compensatory plans; therefore, recognition of costs for grants made under these plans is required. |
Recently Adopted and Recently Issued Accounting Pronouncements | In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 requires entities to use a new forward-looking, expected loss model to estimate credit losses. It also requires additional disclosure relating to the credit quality of trade and other receivables, including information relating to management’s estimate of credit allowances. TDS is required to adopt ASU 2016-13 on January 1, 2020, using the modified retrospective approach. The adoption of ASU 2016-13 is not expected to have a significant impact on TDS' financial position or results of operations. In August 2018, the FASB issued Accounting Standards Update 2018-15, Intangibles - Goodwill and Other - Internal-Use Software: Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the existing guidance for capitalizing implementation costs for an arrangement that has a software license. The service element of a hosting arrangement will continue to be expensed as incurred. Any capitalized implementation costs will be amortized over the period of the service contract. TDS is required to adopt ASU 2018-15 on January 1, 2020, either retrospectively or prospectively to eligible costs incurred on or after the date that this guidance is first applied. The adoption of ASU 2018-15 is not expected to have a significant impact on TDS' financial position or results of operations. In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers and subsequently amended the standard with several Accounting Standards Updates, collectively referred to as ASC 606. TDS adopted and applied the provisions of ASC 606 as of January 1, 2018, using a modified retrospective method. Under this method, the new accounting standard is applied only to the most recent period presented, recognizing the cumulative effect of the accounting change as an adjustment to the beginning balance of retained earnings. Accordingly, prior periods have not been recast to reflect the new accounting standard. The cumulative effect of applying the provisions of ASC 606 was an increase of $164 million to retained earnings as of January 1, 2018. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases and subsequently amended the standard with several Accounting Standards Updates, collectively referred to as ASC 842. This standard replaces the previous lease accounting standard under ASC 840 - Leases and requires lessees to record a right-of-use (ROU) asset and lease liability for the majority of leases. TDS adopted the provisions of ASC 842 on January 1, 2019, using a modified retrospective method. Under this method, TDS elected to apply the new accounting standard only to the most recent period presented, recognizing the cumulative effect of the accounting change, if any, as an adjustment to the beginning balance of retained earnings. Accordingly, prior periods have not been recast to reflect the new accounting standard. The cumulative effect of applying the provisions of ASC 842 had no material impact on retained earnings. |
Lessee Agreements | A lease is generally present in a contract if the lessee controls the use of identified property, plant or equipment for a period of time in exchange for consideration. Nearly all of TDS’ leases are classified as operating leases, although it does have a small number of finance leases. TDS’ most significant leases are for land and tower spaces, network facilities, retail spaces, and offices. TDS has agreements with both lease and nonlease components, which are accounted for separately. As part of the present value calculation for the lease liabilities, TDS uses an incremental borrowing rate as the rates implicit in the leases are not readily determinable. The incremental borrowing rates used for lease accounting are based on TDS' unsecured rates, adjusted to approximate the rates at which TDS would be required to borrow on a collateralized basis over a term similar to the recognized lease term. TDS applies the incremental borrowing rates to lease components using a portfolio approach based upon the length of the lease term and the reporting entity in which the lease resides. The cost of nonlease components in TDS’ lease portfolio (e.g., utilities and common area maintenance) are not typically predetermined at lease commencement and are expensed as incurred at their relative standalone price. Variable lease expense occurs when, subsequent to the lease commencement, lease payments are made that were not originally included in the lease liability calculation. TDS’ variable lease payments are primarily a result of leases with escalations that are tied to an index. The incremental changes due to the index changes are recorded as variable lease expense and are not included in the ROU assets or lease liabilities. The identified lease term determines the periods to which expense is allocated and also has a significant impact on the ROU asset and lease liability calculations. Many of TDS’ leases include renewal and early termination options. At lease commencement, the lease terms include options to extend the lease when TDS is reasonably certain that it will exercise the options. The lease terms do not include early termination options unless TDS is reasonably certain to exercise the options. Certain asset classes have similar lease characteristics; therefore, TDS has applied the portfolio approach for lease term recognition for its tower space, retail, and certain ground lease asset classes. |
Lessor Agreements | TDS’ most significant lessor leases are for tower space and colocation space. All of TDS’ lessor leases are classified as operating leases. A lease is generally present in a contract if the lessee controls the use of identified property, plant, or equipment for a period of time in exchange for consideration. TDS’ lessor agreements with lease and nonlease components are generally accounted for separately; however, certain service agreements with insignificant lease components are accounted for as nonlease transactions. The identified lease term determines the periods to which revenue is allocated over the term of the lease. Many of TDS’ leases include renewal and early termination options. At lease commencement, lease terms include options to extend the lease when TDS is reasonably certain that lessees will exercise the options. Lease terms would not include periods after the date of a termination option that lessees are reasonably certain to exercise. Variable lease income occurs when, subsequent to the lease commencement, lease payments are received that were not originally included in the lease receivable calculation. TDS’ variable lease income is primarily a result of leases with escalations that are tied to an index. The incremental increases due to the index changes are recorded as variable lease income. |
Legal proceedings | TDS is involved or may be involved from time to time in legal proceedings before the FCC, other regulatory authorities, and/or various state and federal courts. If TDS believes that a loss arising from such legal proceedings is probable and can be reasonably estimated, an amount is accrued in the financial statements for the estimated loss. If only a range of loss can be determined, the best estimate within that range is accrued; if none of the estimates within that range is better than another, the low end of the range is accrued. The assessment of the expected outcomes of legal proceedings is a highly subjective process that requires judgments about future events. The legal proceedings are reviewed at least quarterly to determine the adequacy of accruals and related financial statement disclosures. The ultimate outcomes of legal proceedings could differ materially from amounts accrued in the financial statements. |
Variable Interest Entities | TDS consolidates VIEs in which it has a controlling financial interest as defined by GAAP and is therefore deemed the primary beneficiary. A controlling financial interest will have both of the following characteristics: (a) the power to direct the VIE activities that most significantly impact economic performance; and (b) the obligation to absorb the VIE losses and the right to receive benefits that are significant to the VIE. TDS reviews these criteria initially 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 TDS’ Form 10-K for the year ended December 31, 2019. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Table) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Reconciliation of cash, cash equivalents and restricted cash | The following table provides a reconciliation of Cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheet to the total of the amounts in the Consolidated Statement of Cash Flows. December 31, 2019 2018 (Dollars in millions) Cash and cash equivalents $ 465 $ 921 Restricted cash included in Other current assets 9 6 Cash, cash equivalents and restricted cash in the statement of cash flows $ 474 $ 927 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Multiple-deliverable Arrangements | The following is a description of principal activities from which TDS generates its revenues. Services and products Nature, timing of satisfaction of performance obligations, and significant payment terms Wireless services Wireless service includes voice, messaging and data services. Revenue is recognized in Service revenues as wireless service is provided to the customer. Wireless services generally are billed and paid in advance on a monthly basis. Wireless devices and accessories U.S. Cellular offers a comprehensive range of wireless devices such as handsets, tablets, mobile hotspots, home phones and routers for use by its customers, as well as accessories. U.S. Cellular also sells wireless devices to agents and other third-party distributors for resale. U.S. Cellular frequently discounts wireless devices sold to new and current customers. U.S. Cellular also offers customers the option to purchase certain devices and accessories under installment contracts over a specified time period. For certain equipment installment plans, after a specified period of time, the customer may have the right to upgrade to a new device. Such upgrades require the customer to enter into an equipment installment contract for the new device, and transfer the existing device to U.S. Cellular. U.S. Cellular recognizes revenue in Equipment and product sales revenues when control of the device or accessory is transferred to the customer, agent or third-party distributor, which is generally upon delivery. Wireless roaming U.S. Cellular receives roaming revenues when other wireless carriers’ customers use U.S. Cellular’s wireless systems. U.S. Cellular recognizes revenue in Service revenues when the roaming service is provided. Wireless Eligible Telecommunications Carrier (ETC) Revenues Telecommunications companies may be designated by states, or in some cases by the FCC, as an ETC to receive support payments from the Universal Service Fund if they provide specified services in “high cost” areas. ETC revenues recognized in the reporting period represent the amounts which U.S. Cellular is entitled to receive for such period, as determined and approved in connection with U.S. Cellular’s designation as an ETC in various states. Wireless tower rents U.S. Cellular receives tower rental revenues when another carrier leases tower space on a U.S. Cellular owned tower. U.S. Cellular recognizes revenue in Service revenues in the period during which the services are provided. Wireline services Wireline services include broadband, video and voice services. Revenue is recognized in Service revenues as service is provided to the customer. Wireline services are generally billed and paid in advance on a monthly basis. Wireline wholesale revenues Wholesale revenues include network access services primarily to interexchange and wireless carriers for carrying data and voice traffic on TDS Telecom’s network, special access services and state and federal support payments, including A-CAM. Wholesale revenues are recorded as the related service is provided. Cable services Cable services include broadband, video and voice services. Revenue is recognized in Service revenues as service is provided to the customer. Cable services are generally billed and paid in advance on a monthly basis. IT hardware sales TDS recognizes equipment revenue when it no longer has any requirements to perform, when title has passed and when the products are accepted by the customer. Hosted and managed services HMS Service revenues consist of cloud and hosting solutions, managed services, Enterprise Resource Planning (ERP) application management, colocation services, and IT hardware related maintenance and professional services. Revenues related to these services are recognized as services are provided. |
Disaggregation of Revenues | In the following table, TDS' revenues are disaggregated by type of service, which represents the relevant categorization of revenues for TDS' reportable segments, and timing of recognition. Service revenues are recognized over time and Equipment sales are point in time. TDS Telecom Year Ended December 31, 2019 U.S. Cellular Wireline Cable TDS Telecom Total 1 Corporate, Eliminations and Other Total (Dollars in millions) Revenues from contracts with customers: Type of service: Retail service $ 2,650 $ — $ — $ — $ — $ 2,650 Inbound roaming 174 — — — — 174 Residential — 328 205 533 — 533 Commercial — 168 41 209 — 209 Wholesale — 185 — 185 — 185 Other service 137 — — (1 ) 72 208 Service revenues from contracts with customers 2,961 681 246 926 72 3,959 Equipment and product sales 987 1 — 1 129 1,117 Total revenues from contracts with customers 2 $ 3,948 $ 682 $ 246 $ 927 $ 201 $ 5,076 TDS Telecom Year Ended December 31, 2018 U.S. Cellular Wireline Cable TDS Telecom Total 1 Corporate, Eliminations and Other Total (Dollars in millions) Revenues from contracts with customers: Type of service: Retail service $ 2,623 $ — $ — $ — $ — $ 2,623 Inbound roaming 154 — — — — 154 Residential — 321 188 509 — 509 Commercial — 184 42 226 — 226 Wholesale — 191 — 191 — 191 Other service 135 — — (1 ) 72 206 Service revenues from contracts with customers 2,912 696 230 925 72 3,909 Equipment and product sales 989 2 — 2 119 1,110 Total revenues from contracts with customers 2 $ 3,901 $ 698 $ 230 $ 927 $ 191 $ 5,019 Numbers may not foot due to rounding. 1 TDS Telecom Total includes eliminations between the Wireline and Cable segments. 2 Revenue line items in this table will not agree to amounts presented in the Consolidated Statement of Operations as the amounts in this table only include revenue resulting from contracts with customers. |
Contract with Customer, Assets and Liabilities | The following table provides balances for contract assets from contracts with customers, which are recorded in Other current assets and Other assets and deferred charges in the Consolidated Balance Sheet, and contract liabilities from contracts with customers, which are recorded in Customer deposits and deferred revenues and Other deferred liabilities and credits in the Consolidated Balance Sheet. December 31, 2019 December 31, 2018 (Dollars in millions) Contract assets $ 10 $ 11 Contract liabilities 1 $ 197 $ 187 1 The contract liability balance at December 31, 2018 differs from the amount reported in Note 2 — Revenue Recognition of the 2018 Form 10-K, as the previously reported amount included certain lease-related balances that did not result from contracts with customers. Revenue recognized related to contract liabilities existing at January 1, 2019 was $164 million for the year ended December 31, 2019 . |
Remaining Performance Obligations | The following table includes estimated service revenues expected to be recognized related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. These estimates represent service revenues to be recognized when services are delivered to customers pursuant to service plan contracts and under certain roaming agreements with other carriers. These estimates are based on contracts in place as of December 31, 2019 , and may vary from actual results. As practical expedients, revenue related to contracts of less than one year, generally month-to-month contracts, and contracts with a fixed per-unit price and variable quantity, are excluded from these estimates. Service Revenues (Dollars in millions) 2020 $ 367 2021 167 Thereafter 202 Total $ 736 |
Contract Cost Assets | Contract cost asset balances, which are recorded in Other assets and deferred charges in the Consolidated Balance Sheet, were as follows: December 31, 2019 December 31, 2018 (Dollars in millions) Costs to obtain contracts Sales commissions $ 146 $ 154 Fulfillment costs Installation costs 11 10 Total contract cost assets $ 157 $ 164 |
Fair Value Measurements (Table)
Fair Value Measurements (Table) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | TDS has applied the provisions of fair value accounting for purposes of computing the fair value of financial instruments for disclosure purposes as displayed below. Level within the Fair Value Hierarchy December 31, 2019 December 31, 2018 Book Value Fair Value Book Value Fair Value (Dollars in millions) Cash and cash equivalents 1 $ 465 $ 465 $ 921 $ 921 Short-term investments 1 — — 17 17 Long-term debt Retail 2 1,753 1,796 1,753 1,596 Institutional 2 534 594 534 531 Other 2 84 84 182 182 |
Equipment Installment Plans (Ta
Equipment Installment Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Equipment installment plan receivables | The following table summarizes equipment installment plan receivables as of December 31, 2019 and 2018 . December 31, 2019 2018 (Dollars in millions) Equipment installment plan receivables, gross $ 1,008 $ 974 Allowance for credit losses (84 ) (77 ) Equipment installment plan receivables, net $ 924 $ 897 Net balance presented in the Consolidated Balance Sheet as: Accounts receivable — Customers and agents (Current portion) $ 587 $ 560 Other assets and deferred charges (Non-current portion) 337 337 Equipment installment plan receivables, net $ 924 $ 897 |
Equipment installment plan receivables credit categories | The balance and aging of the equipment installment plan receivables on a gross basis by current credit category were as follows: December 31, 2019 December 31, 2018 Lower Risk Higher Risk Total Lower Risk Higher Risk Total (Dollars in millions) Unbilled $ 931 $ 11 $ 942 $ 904 $ 17 $ 921 Billed — current 44 1 45 35 1 36 Billed — past due 20 1 21 15 2 17 Equipment installment plan receivables, gross $ 995 $ 13 $ 1,008 $ 954 $ 20 $ 974 |
Equipment installment plans allowance for credit losses | The activity in the allowance for credit losses for equipment installment plan receivables was as follows: 2019 2018 (Dollars in millions) Allowance for credit losses, beginning of year $ 77 $ 65 Bad debts expense 82 71 Write-offs, net of recoveries (75 ) (59 ) Allowance for credit losses, end of year $ 84 $ 77 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income taxes receivable (payable) | TDS’ current income taxes balances at December 31, 2019 and 2018 , were as follows: December 31, 2019 2018 (Dollars in millions) Federal income taxes receivable $ 31 $ 6 Net state income taxes receivable 5 6 |
Income tax expense (benefit) | Income tax expense (benefit) is summarized as follows: Year Ended December 31, 2019 2018 2017 (Dollars in millions) Current Federal $ 15 $ 10 $ 77 State 15 3 13 Deferred Federal 36 24 (366 ) State (2 ) 9 (3 ) Total income tax expense (benefit) $ 64 $ 46 $ (279 ) |
Income tax reconciliation | A reconciliation of TDS’ income tax expense computed at the statutory rate to the reported income tax expense, and the statutory federal income tax rate to TDS’ effective income tax rate is as follows: Year Ended December 31, 2019 2018 2017 Amount Rate Amount Rate Amount Rate (Dollars in millions) Statutory federal income tax expense and rate $ 44 21.0 % $ 46 21.0 % $ (43 ) 35.0 % State income taxes, net of federal benefit 1 12 5.5 11 4.9 6 (5.2 ) Effect of noncontrolling interests — (0.1 ) (1 ) (0.4 ) (2 ) 1.6 Federal income tax rate change 2 — — (16 ) (7.1 ) (314 ) 257.5 Change in federal valuation allowance 3 7 3.1 (1 ) (0.3 ) (5 ) 4.3 Goodwill impairment 4 — — — — 71 (58.2 ) Nondeductible compensation 4 1.9 9 4.1 10 (8.1 ) Tax credits (4 ) (1.9 ) (1 ) (0.6 ) (1 ) 0.8 Other differences, net 1 0.8 (1 ) (0.6 ) (1 ) 1.4 Total income tax expense (benefit) and rate $ 64 30.3 % $ 46 21.0 % $ (279 ) 229.1 % 1 State income taxes, net of federal benefit, include changes in unrecognized tax benefits as well as adjustments to the valuation allowance. 2 Federal income tax rate change due to the Tax Act reducing the federal income tax rate from 35% to 21% resulting in a tax benefit in 2018 due primarily to an income tax accounting method change that accelerated tax depreciation on certain assets for the 2017 tax year. The $314 million tax benefit in 2017 related to adjusting the deferred tax liability to the lower tax rate upon enactment of the Tax Act. 3 Change in federal valuation allowance in 2019 is due primarily to interest expense carryforwards not expected to be realized. The 2018 change also includes a change in judgment related to net operating loss carryforwards that are now realizable due to an internal restructuring. 4 Goodwill impairment reflects an adjustment to increase 2017 income tax expense by $71 million related to a portion of the impaired goodwill that is not amortizable for income tax purposes. See Note 8 — Intangible Assets for additional information related to the goodwill impairment. |
Deferred income tax assets and liabilities | Significant components of TDS’ deferred income tax assets and liabilities at December 31, 2019 and 2018 , were as follows 1 : December 31, 2019 2018 (Dollars in millions) Deferred tax assets Net operating loss (NOL) carryforwards $ 168 $ 159 Lease liabilities 251 — Asset retirement obligation 74 67 Other 106 151 Total deferred tax assets 599 377 Less valuation allowance (152 ) (135 ) Net deferred tax assets 447 242 Deferred tax liabilities Property, plant and equipment 481 458 Licenses/intangibles 261 237 Partnership investments 132 134 Lease assets 226 — Other 22 53 Total deferred tax liabilities 1,122 882 Net deferred income tax liability $ 675 $ 640 |
Deferred tax valuation allowance | A summary of TDS' deferred tax asset valuation allowance is as follows: 2019 2018 2017 (Dollars in millions) Balance at beginning of year $ 135 $ 147 $ 122 Charged to income tax expense 17 (5 ) 25 Charged to Retained earnings — (7 ) — Balance at end of year $ 152 $ 135 $ 147 |
Income tax unrecognized benefits summary | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2019 2018 2017 (Dollars in millions) Unrecognized tax benefits balance at beginning of year $ 49 $ 46 $ 42 Additions for tax positions of current year 8 8 6 Additions for tax positions of prior years — 2 1 Reductions for tax positions of prior years (7 ) (1 ) (1 ) Reductions for settlements of tax positions (1 ) — — Reductions for lapses in statutes of limitations — (6 ) (2 ) Unrecognized tax benefits balance at end of year $ 49 $ 49 $ 46 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per share | The amounts used in computing basic and diluted earnings per share attributable to TDS shareholders were as follows: Year Ended December 31, 2019 2018 2017 (Dollars and shares in millions, except per share amounts) Net income attributable to TDS shareholders used in basic earnings per share $ 121 $ 135 $ 153 Adjustments to compute diluted earnings: Noncontrolling interest adjustment (1 ) (2 ) — Net income attributable to TDS shareholders used in diluted earnings per share $ 120 $ 133 $ 153 Weighted average number of shares used in basic earnings per share: Common Shares 107 105 104 Series A Common Shares 7 7 7 Total 114 112 111 Effects of dilutive securities 2 2 1 Weighted average number of shares used in diluted earnings per share 116 114 112 Basic earnings per share attributable to TDS shareholders $ 1.06 $ 1.20 $ 1.39 Diluted earnings per share attributable to TDS shareholders $ 1.03 $ 1.17 $ 1.37 |
Acquisitions, Divestitures and
Acquisitions, Divestitures and Exchanges (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions, Divestitures and Exchanges | Allocation of Purchase Price Purchase Price Goodwill 1 Intangible Assets Subject to Amortization 2 Net Tangible Assets (Liabilities) (Dollars in millions) Continuum $ 80 $ 38 $ 9 $ 33 1 The entire amount of Goodwill acquired in 2019 is amortizable for income tax purposes. 2 In 2019, at the date of acquisition, the weighted average amortization period for Intangible Assets Subject to Amortization acquired was approximately four years . |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Licenses | Activity related to TDS' Licenses is presented below. U.S. Cellular Wireline Cable Total (Dollars in millions) Balance at December 31, 2017 $ 2,227 $ 2 $ 3 $ 2,232 Acquisitions 8 — — 8 Transferred to Assets held for sale (51 ) — — (51 ) Divestitures (11 ) — — (11 ) Exchanges - Licenses received 18 — — 18 Exchanges - Licenses surrendered (1 ) — — (1 ) Balance at December 31, 2018 2,190 2 3 2,195 Acquisitions 267 — — 267 Divestitures (10 ) — — (10 ) Exchanges - Licenses received 26 — — 26 Exchanges - Licenses surrendered — — — — Capitalized interest 2 — — 2 Balance at December 31, 2019 $ 2,475 $ 2 $ 3 $ 2,480 |
Schedule of Goodwill | Activity related to TDS' Goodwill is presented below. Wireline 1 Cable Total (Dollars in millions) Balance at December 31, 2017 $ 409 $ 100 $ 509 Other — — — Balance at December 31, 2018 409 100 509 Acquisitions — 38 38 Balance at December 31, 2019 $ 409 $ 138 $ 547 1 Accumulated impairment losses in prior periods were $29 million for Wireline. |
Schedule of Other intangible Assets | Activity related to TDS' Other intangible assets is presented below. December 31, 2019 December 31, 2018 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount (Dollars in millions) Franchise rights $ 255 $ (34 ) $ 221 $ 255 $ (17 ) $ 238 Customer lists and Trade name 151 (133 ) 18 166 (151 ) 15 Total $ 406 $ (167 ) $ 239 $ 421 $ (168 ) $ 253 |
Investments in Unconsolidated_2
Investments in Unconsolidated Entities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity and measurement alternative method investments | December 31, 2019 2018 (Dollars in millions) Equity method investments: Capital contributions, loans, advances and adjustments $ 116 $ 116 Cumulative share of income 2,099 1,930 Cumulative share of distributions (1,748 ) (1,587 ) Total equity method investments 467 459 Measurement alternative method investments 21 21 Total investments in unconsolidated entities $ 488 $ 480 The following tables, which are based on information provided in part by third parties, summarize the combined assets, liabilities and equity, and results of operations of TDS’ equity method investments: December 31, 2019 2018 (Dollars in millions) Assets Current $ 1,516 $ 1,299 Noncurrent 5,776 5,010 Total assets $ 7,292 $ 6,309 Liabilities and Equity Current liabilities $ 626 $ 436 Noncurrent liabilities 1,132 405 Partners’ capital and shareholders’ equity 5,534 5,468 Total liabilities and equity $ 7,292 $ 6,309 |
Equity method investments, summarized results of operations | Year Ended December 31, 2019 2018 2017 (Dollars in millions) Results of Operations Revenues $ 6,929 $ 6,801 $ 6,585 Operating expenses 5,043 4,985 4,985 Operating income 1,886 1,816 1,600 Other income (expense), net (24 ) 9 (3 ) Net income $ 1,862 $ 1,825 $ 1,597 |
Property, Plant and Equpment (T
Property, Plant and Equpment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | TDS’ Property, plant and equipment in service and under construction, and related accumulated depreciation and amortization, as of December 31, 2019 and 2018 , were as follows: December 31, Useful Lives (Years) 2019 2018 (Dollars in millions) Land N/A $ 57 $ 55 Buildings 5-40 527 523 Leasehold and land improvements 1-30 1,314 1,245 Cable and wire 15-35 1,996 1,884 Network and switching equipment 3-13 2,507 2,423 Cell site equipment 7-25 3,708 3,460 Office furniture and equipment 3-10 387 378 Other operating assets and equipment 3-12 174 193 System development 1-7 1,604 1,486 Work in process N/A 590 427 Total property, plant and equipment, gross 12,864 12,074 Accumulated depreciation and amortization (9,337 ) (8,728 ) Total property, plant and equipment, net $ 3,527 $ 3,346 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of new accounting pronouncements and changes in accounting principles | The cumulative effect of the adoption of ASC 842 on TDS’ Consolidated Balance Sheet as of January 1, 2019 is presented below. December 31, 2018 ASC 842 Adjustment January 1, 2019 (Dollars in millions) Prepaid expenses $ 103 $ (13 ) $ 90 Operating lease right-of-use assets — 975 975 Other assets and deferred charges 616 (12 ) 604 Short-term operating lease liabilities — 112 112 Other current liabilities 114 (8 ) 106 Long-term operating lease liabilities — 949 949 Other deferred liabilities and credits 541 (103 ) 438 |
Components of lease expense | The following table shows the components of lease cost included in the Consolidated Statement of Operations: Year Ended (Dollars in millions) Operating lease cost $ 177 Financing lease cost: Amortization of ROU assets 2 Interest on lease liabilities 1 Variable lease cost 8 Total lease cost $ 188 |
Supplemental cash flow information related to leases | The following table shows supplemental cash flow information related to lease activities: Year Ended (Dollars in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 172 Operating cash flows from finance leases 1 ROU assets obtained in exchange for lease obligations: Operating leases $ 132 Finance leases 10 |
Supplemental balance sheet information related to leases | The following table shows the classification of TDS’ finance leases in its Consolidated Balance Sheet: December 31, 2019 (Dollars in millions) Finance Leases Property, plant and equipment $ 20 Less: Accumulated depreciation and amortization 5 Property, plant and equipment, net $ 15 Current portion of long-term debt 1 Long-term debt, net $ 7 Total finance lease liabilities $ 8 |
Schedule of weighted average remaining lease term and weighted average discount rate related to leases | The table below shows a weighted-average analysis for lease terms and discount rates for all leases: December 31, 2019 Weighted Average Remaining Lease Term Operating leases 12 years Finance leases 24 years Weighted Average Discount Rate Operating leases 4.4 Finance leases 6.3 |
Maturities of lease liabilities | The maturities of lease liabilities are as follows: Operating Leases Finance Leases (Dollars in millions) 2020 $ 159 $ 1 2021 159 — 2022 143 1 2023 127 1 2024 109 1 Thereafter 730 16 Total lease payments 1 $ 1,427 $ 20 Less: Imputed interest 380 12 Present value of lease liabilities $ 1,047 $ 8 1 Lease payments exclude $ 29 million of legally binding lease payments for leases signed but not yet commenced. |
Lease income | The following table shows the components of lease income which are included in Service revenues in the Consolidated Statement of Operations: Year Ended (Dollars in millions) Operating lease income 1 $ 100 1 During the third quarter of 2019, TDS recorded an out-of-period adjustment attributable to 2009 through the second quarter of 2019 due to errors in the timing of recognition of revenue for certain tower leases. This out-of-period adjustment had the impact of increasing operating lease income by $5 million for the year ended December 31, 2019 . TDS determined that this adjustment was not material to any of the periods impacted. |
Maturities of expected lease revenues | The maturities of expected lease payments to be received are as follows: Operating Leases (Dollars in millions) 2020 $ 87 2021 70 2022 44 2023 32 2024 16 Thereafter 17 Total future lease maturities $ 266 |
Lease commitments | As of December 31, 2018, future minimum rental payments required under operating leases and rental receipts expected under operating leases that had noncancellable lease terms in excess of one year were as follows: Operating Leases Future Minimum Rental Payments Operating Leases Future Minimum Rental Receipts (Dollars in millions) 2019 $ 170 $ 59 2020 158 48 2021 142 35 2022 126 23 2023 110 10 Thereafter 784 7 Total $ 1,490 $ 182 |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Asset Retirement Obligation [Abstract] | |
Asset retirement obligations | The results of the reviews (identified as Revisions in estimated cash outflows) and other changes in asset retirement obligations during 2019 and 2018 , were as follows: 2019 2018 (Dollars in millions) Balance at beginning of year $ 307 $ 283 Additional liabilities accrued 13 2 Revisions in estimated cash outflows 2 6 Acquisition of assets 1 — Disposition of assets (1 ) (1 ) Accretion expense 20 18 Transferred to Liabilities held for sale — (1 ) Balance at end of year $ 342 $ 307 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Revolving credit facilities | The following table summarizes the revolving credit agreements as of December 31, 2019 : TDS U.S. Cellular (Dollars in millions) Maximum borrowing capacity $ 400 $ 300 Letters of credit outstanding $ 1 $ 2 Amount borrowed $ — $ — Amount available for use $ 399 $ 298 |
Financial covenants | The revolving credit agreements include the following financial covenants: ▪ Consolidated Interest Coverage Ratio may not be less than 3.00 to 1.00 as of the end of any fiscal quarter. ▪ Consolidated Leverage Ratio may not be greater than the ratios indicated as of the end of any fiscal quarter for each period specified below: Period Ratios From the agreement date of May 10, 2018 through June 30, 2019 3.25 to 1.00 From July 1, 2019 and thereafter 3.00 to 1.00 |
Long-term debt | Long-term debt as of December 31, 2019 and 2018 , was as follows: December 31, 2019 December 31, 2018 Issuance date Maturity date Call date (any time on or after) Principal Amount Less Unamortized discounts and debt issuance costs Total Principal Amount Less Unamortized discount and debt issuance costs Total (Dollars in millions) TDS Unsecured Senior Notes 6.625% Mar 2005 Mar 2045 Mar 2010 $ 116 $ 3 $ 113 $ 116 $ 3 $ 113 6.875% Nov 2010 Nov 2059 Nov 2015 225 7 218 225 7 218 7.000% Mar 2011 Mar 2060 Mar 2016 300 9 291 300 9 291 5.875% Dec 2012 Dec 2061 Dec 2017 195 7 188 195 7 188 U.S. Cellular Unsecured Senior Notes 6.700% Dec 2003 Dec 2033 Dec 2003 $ 544 $ 13 $ 531 $ 544 $ 14 $ 530 6.950% May 2011 May 2060 May 2016 342 11 331 342 11 331 7.250% Dec 2014 Dec 2063 Dec 2019 275 10 265 275 10 265 7.250% Nov 2015 Dec 2064 Dec 2020 300 10 290 300 10 290 Term Loan Jul 2015 Jan 2022 83 1 82 191 1 190 Finance lease obligations 8 — 8 6 — 6 Installment payment agreement 8 1 7 15 1 14 Other long-term notes Through 2021 2 — 2 3 — 3 Total long-term debt $ 2,398 $ 72 $ 2,326 $ 2,512 $ 73 $ 2,439 Long-term debt, current $ 10 $ 21 Long-term debt, noncurrent $ 2,316 $ 2,418 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase Obligations | Future minimum payments required under these commitments as of December 31, 2019 are as follows: Purchase Obligations (Dollars in millions) 2020 $ 1,065 2021 448 2022 755 2023 63 2024 40 Thereafter 37 Total $ 2,408 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entities [Abstract] | |
Consolidated VIE assets and liabilities | The following table presents the classification and balances of the consolidated VIEs’ assets and liabilities in TDS’ Consolidated Balance Sheet. December 31, 2019 2018 (Dollars in millions) Assets Cash and cash equivalents $ 19 $ 9 Short-term investments — 17 Accounts receivable 637 609 Inventory, net 5 5 Other current assets 7 5 Licenses 647 647 Property, plant and equipment, net 95 88 Operating lease right-of-use assets 42 — Other assets and deferred charges 347 347 Total assets $ 1,799 $ 1,727 Liabilities Current liabilities $ 30 $ 31 Long-term operating lease liabilities 39 — Other deferred liabilities and credits 13 15 Total liabilities $ 82 $ 46 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling interests | The following schedule discloses the effects of Net income attributable to TDS shareholders and changes in TDS’ ownership interest in U.S. Cellular on TDS’ equity for 2019 , 2018 and 2017 : Year Ended December 31, 2019 2018 2017 (Dollars in millions) Net income attributable to TDS shareholders $ 121 $ 135 $ 153 Transfers (to) from the noncontrolling interests Change in TDS’ Capital in excess of par value from U.S. Cellular's issuance of U.S. Cellular shares (23 ) (30 ) (12 ) Change in TDS’ Capital in excess of par value from U.S. Cellular’s repurchase of U.S. Cellular shares 6 — — Net transfers (to) from noncontrolling interests (17 ) (30 ) (12 ) Change from net income attributable to TDS shareholders and transfers (to) from noncontrolling interests $ 104 $ 105 $ 141 |
Common Shareholders' Equity (Ta
Common Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Share issued | The following table summarizes the number of Common and Series A Common Shares issued. Common Shares Series A Common Shares Common Treasury Shares (Shares in millions) Balance at December 31, 2016 126 7 23 Dividend reinvestment, incentive and compensation plans — — (1 ) Balance at December 31, 2017 126 7 22 Dividend reinvestment, incentive and compensation plans — — (3 ) Balance at December 31, 2018 126 7 19 Dividend reinvestment, incentive and compensation plans — — (1 ) Balance at December 31, 2019 126 7 18 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-based compensation | The following table summarizes stock-based compensation expense recognized during 2019 , 2018 and 2017 : Year Ended December 31, 2019 2018 2017 (Dollars in millions) Stock option awards $ 3 $ 5 $ 10 Restricted stock unit awards 33 30 29 Performance share unit awards 21 17 5 Deferred compensation bonus and matching stock unit awards — — 1 Awards under Non-Employee Director compensation plan 2 2 1 Total stock-based compensation, before income taxes 59 54 46 Income tax benefit (15 ) (14 ) (17 ) Total stock-based compensation expense, net of income taxes $ 44 $ 40 $ 29 |
Stock-based compensation, allocation by financial statement line item | The following table provides a summary of the classification of stock-based compensation expense included in the Consolidated Statement of Operations for the years ended: December 31, 2019 2018 2017 (Dollars in millions) Selling, general and administrative expense $ 54 $ 49 $ 42 Cost of services expense 5 5 4 Total stock-based compensation $ 59 $ 54 $ 46 |
Stock-based compensation, fair value assumptions | U.S. Cellular did not grant stock option awards in 2019 , 2018 or 2017 . TDS estimated the fair value of stock options granted in 2019 , 2018 and 2017 using the Black-Scholes valuation model and the assumptions shown in the table below: 2019 2018 2017 Expected life 6.2 years 6.3 years 6.4 years Expected annual volatility rate 29.0 % 28.6 % 30.4 % Dividend yield 2.1 % 2.5 % 2.2 % Risk-free interest rate 2.4 % 2.9 % 2.0 % Estimated annual forfeiture rate 3.8 % 3.3 % 2.5 % |
Summary of stock options | A summary of TDS stock options (total and portion exercisable) and changes during 2019 is presented in the tables and narrative below. Common Share Options Number of Options Weighted Average Exercise Prices Aggregate Intrinsic Value (in millions) Weighted Average Remaining Contractual Life (in years) Outstanding at December 31, 2018 4,763,000 $ 26.57 (3,270,000 exercisable) $ 26.12 Granted 208,000 $ 30.72 Exercised (826,000 ) $ 27.25 Forfeited (54,000 ) $ 27.70 Outstanding at December 31, 2019 4,091,000 $ 26.63 $ 4 5.0 (2,896,000 exercisable) $ 26.32 $ 4 3.7 A summary of U.S. Cellular stock options outstanding (total and portion exercisable) and changes during 2019 is presented in the table below: Common Share Options Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value (in millions) Weighted Average Remaining Contractual Life (in years) Outstanding at December 31, 2018 806,000 $ 43.10 (420,000 exercisable) $ 42.39 Exercised (339,000 ) $ 44.27 Expired (7,000 ) $ 45.87 Outstanding at December 31, 2019 460,000 $ 42.20 $ — 4.9 (460,000 exercisable) $ 42.20 $ — 4.9 |
Summary of nonvested restricted stock units | A summary of TDS nonvested restricted stock units and changes during 2019 is presented in the table below: Common Restricted Stock Units Number Weighted Average Grant Date Fair Value Nonvested at December 31, 2018 1,212,000 $ 25.73 Granted 425,000 $ 28.81 Vested (355,000 ) $ 27.87 Forfeited (49,000 ) $ 26.11 Nonvested at December 31, 2019 1,233,000 $ 26.16 A summary of U.S. Cellular nonvested restricted stock units at December 31, 2019 , and changes during the year then ended is presented in the table below: Common Restricted Stock Units Number Weighted Average Grant Date Fair Value Nonvested at December 31, 2018 1,569,000 $ 39.74 Granted 478,000 $ 46.81 Vested (525,000 ) $ 42.99 Forfeited (61,000 ) $ 39.38 Nonvested at December 31, 2019 1,461,000 $ 40.90 |
Summary of nonvested performance share units | A summary of TDS nonvested performance share units and changes during 2019 is presented in the table below: Common Performance Share Units Number Weighted Average Grant Date Fair Value Nonvested at December 31, 2018 350,000 $ 27.38 Granted 229,000 $ 30.72 Vested (99,000 ) $ 29.45 Change in units based on approved performance factors 6,000 $ 29.45 Forfeited (7,000 ) $ 30.33 Accumulated dividend equivalents 10,000 $ 28.26 Nonvested at December 31, 2019 489,000 $ 28.53 A summary of U.S. Cellular’s nonvested performance share units and changes during 2019 is presented in the table below: Common Performance Share Units Number Weighted Average Grant Date Fair Value Nonvested at December 31, 2018 768,000 $ 37.78 Granted 323,000 $ 46.43 Vested (5,000 ) $ 37.92 Change in units based on approved performance factors 188,000 $ 38.81 Forfeited (29,000 ) $ 38.55 Nonvested at December 31, 2019 1,245,000 $ 40.16 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Business segment information | Financial data for TDS’ reportable segments for 2019 , 2018 and 2017 , is as follows. See Note 1 — Summary of Significant Accounting Policies and Recent Accounting Pronouncements for additional information. TDS Telecom Year ended or as of December 31, 2019 U.S. Cellular Wireline Cable TDS Telecom Total 1 Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 3,035 $ 682 $ 247 $ 928 $ 96 $ 4,059 Equipment and product sales 987 1 — 1 129 1,117 Total operating revenues 4,022 683 247 930 224 5,176 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 756 263 105 368 78 1,202 Cost of equipment and products 1,028 1 — 1 106 1,135 Selling, general and administrative 1,406 199 62 260 51 1,717 Depreciation, amortization and accretion 702 132 68 200 30 932 (Gain) loss on asset disposals, net 19 (8 ) 1 (7 ) — 12 (Gain) loss on sale of business and other exit costs, net (1 ) — — — — (1 ) Operating income (loss) 112 96 11 107 (40 ) 179 Equity in earnings of unconsolidated entities 166 — — — 2 168 Interest and dividend income 17 10 2 12 — 29 Interest expense (110 ) 3 — 3 (58 ) (165 ) Income (loss) before income taxes 185 110 13 122 (96 ) 211 Income tax expense (benefit) 2 52 30 (18 ) 64 Net income 133 92 (78 ) 147 Add back: Depreciation, amortization and accretion 702 132 68 200 30 932 (Gain) loss on asset disposals, net 19 (8 ) 1 (7 ) — 12 (Gain) loss on sale of business and other exit costs, net (1 ) — — — — (1 ) Interest expense 110 (3 ) — (3 ) 58 165 Income tax expense (benefit) 2 52 30 (18 ) 64 Adjusted EBITDA 3 $ 1,015 $ 231 $ 82 $ 313 $ (9 ) $ 1,319 Investments in unconsolidated entities $ 447 $ 4 $ — $ 4 $ 37 $ 488 Total assets 4 $ 8,164 $ 1,471 $ 734 $ 2,196 $ 421 $ 10,781 Capital expenditures $ 710 $ 243 $ 73 $ 316 $ 6 $ 1,032 TDS Telecom Year ended or as of December 31, 2018 5 U.S. Cellular Wireline Cable TDS Telecom Total 1 Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 2,978 $ 697 $ 230 $ 925 $ 96 $ 3,999 Equipment and product sales 989 2 — 2 119 1,110 Total operating revenues 3,967 699 230 927 215 5,109 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 758 266 104 369 79 1,206 Cost of equipment and products 1,031 1 — 1 98 1,130 Selling, general and administrative 1,388 197 57 254 52 1,694 Depreciation, amortization and accretion 640 142 69 212 31 883 (Gain) loss on asset disposals, net 10 (3 ) 1 (2 ) 1 9 (Gain) loss on license sales and exchanges, net (18 ) — — — — (18 ) Operating income (loss) 158 95 (2 ) 93 (46 ) 205 Equity in earnings of unconsolidated entities 159 — — — 1 160 Interest and dividend income 15 7 1 8 3 26 Interest expense (116 ) 2 — 2 (58 ) (172 ) Other, net (1 ) 3 — 2 1 2 Income (loss) before income taxes 215 106 (1 ) 105 (99 ) 221 Income tax expense (benefit) 2 51 16 (21 ) 46 Net income (loss) 164 89 (78 ) 175 Add back: Depreciation, amortization and accretion 640 142 69 212 31 883 (Gain) loss on asset disposals, net 10 (3 ) 1 (2 ) 1 9 (Gain) loss on license sales and exchanges, net (18 ) — — — — (18 ) Interest expense 116 (2 ) — (2 ) 58 172 Income tax expense (benefit) 2 51 16 (21 ) 46 Adjusted EBITDA 3 $ 963 $ 243 $ 70 $ 313 $ (9 ) $ 1,267 Investments in unconsolidated entities $ 441 $ 4 $ — $ 4 $ 35 $ 480 Total assets $ 7,274 $ 1,304 $ 639 $ 1,934 $ 575 $ 9,783 Capital expenditures $ 515 $ 176 $ 56 $ 232 $ 20 $ 767 TDS Telecom Year ended or as of December 31, 2017 U.S. Cellular Wireline Cable TDS Telecom Total 1 Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 2,978 $ 713 $ 206 $ 917 $ 84 $ 3,979 Equipment and product sales 912 1 — 1 152 1,065 Total operating revenues 3,890 714 206 919 235 5,044 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 732 258 98 355 77 1,164 Cost of equipment and products 1,071 2 — 2 122 1,195 Selling, general and administrative 6 1,412 194 54 248 29 1,689 Depreciation, amortization and accretion 615 151 44 195 34 844 Loss on impairment of goodwill 7 370 — — — (108 ) 262 (Gain) loss on asset disposals, net 17 1 2 3 1 21 (Gain) loss on sale of business and other exit costs, net (1 ) — — — — (1 ) (Gain) loss on license sales and exchanges, net (22 ) — — — — (22 ) Operating income (loss) (304 ) 108 8 116 80 (108 ) Equity in earnings of unconsolidated entities 137 — — — — 137 Interest and dividend income 8 5 — 5 2 15 Interest expense (113 ) — — — (57 ) (170 ) Other, net 6 — 3 — 3 1 4 Income (loss) before income taxes (272 ) 117 8 125 25 (122 ) Income tax expense (benefit) 2 (287 ) (13 ) 21 (279 ) Net income (loss) 15 138 4 157 Add back: Depreciation, amortization and accretion 615 151 44 195 34 844 Loss on impairment of goodwill 7 370 — — — (108 ) 262 (Gain) loss on asset disposals, net 17 1 2 3 1 21 (Gain) loss on sale of business and other exit costs, net (1 ) — — — — (1 ) (Gain) loss on license sales and exchanges, net (22 ) — — — — (22 ) Interest expense 113 — — — 57 170 Income tax expense (benefit) 2 (287 ) (13 ) 21 (279 ) Adjusted EBITDA 3 $ 820 $ 269 $ 54 $ 323 $ 9 $ 1,152 Investments in unconsolidated entities $ 415 $ 4 $ — $ 4 $ 34 $ 453 Total assets $ 6,841 $ 1,260 $ 644 $ 1,897 $ 557 $ 9,295 Capital expenditures $ 469 $ 146 $ 55 $ 201 $ 24 $ 694 Numbers may not foot due to rounding. 1 TDS Telecom Total includes eliminations between the Wireline and Cable segments. 2 Income tax expense (benefit) is not provided at the individual segment level for Wireline and Cable. TDS calculates income tax expense for “TDS Telecom Total”. 3 Adjusted earnings before interest, taxes, depreciation, amortization and accretion (Adjusted EBITDA) is a segment measure reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance. Adjusted EBITDA is defined as net income, adjusted for the items set forth in the reconciliation above. TDS believes Adjusted EBITDA is a useful measure of TDS’ operating results before significant recurring non-cash charges, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of TDS' financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management's evaluation of business performance. 4 As of January 1, 2019, U.S. Cellular adopted ASC 842 using a modified retrospective method. Under this method, the new accounting standard is applied only to the most recent period presented. As a result, 2019 includes the impacts of ASC 842, but prior periods remain as previously reported. See Note 11 — Leases for additional information. 5 As of January 1, 2018, TDS adopted the new revenue recognition accounting standard, ASC 606, using a modified retrospective approach. Under this method, the new accounting standard is applied only to the most recent period presented. As a result, 2018 amounts include the impacts of ASC 606, but prior periods remain as previously reported. 6 ASU 2017-07, regarding net periodic pension cost and net periodic postretirement benefit cost was adopted as of January 1, 2018, and applied retrospectively. All prior year numbers have been recast to conform to this standard. 7 During 2017, U.S. Cellular recorded a goodwill impairment of $370 million while TDS recorded a goodwill impairment of the U.S. Cellular reporting unit of $227 million . Prior to 2009, TDS accounted for U.S. Cellular's share repurchases as step acquisitions, allocating a portion of the share repurchase value to TDS' Goodwill. Further, goodwill of the U.S. Cellular reporting unit was impaired at the TDS level in 2003 but not at U.S. Cellular. Consequently, U.S. Cellular's goodwill on a stand-alone basis and any resulting impairments of goodwill does not equal the TDS consolidated goodwill related to U.S. Cellular. The TDS adjustment of $143 million is included in "Corporate, Eliminations and Other." During 2017, TDS also recorded a goodwill impairment of $35 million related to its HMS operations included in "Corporate, Eliminations and Other." For further information on the goodwill impairment see Note 8 — Intangible Assets . |
Supplemental Cash Flow Disclo_2
Supplemental Cash Flow Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental cash flow disclosures | Following are supplemental cash flow disclosures regarding interest paid and income taxes paid. Year Ended December 31, 2019 2018 2017 (Dollars in millions) Interest paid $ 162 $ 168 $ 167 Income taxes paid, net of refunds received 44 40 56 |
Stock-based compensation supplemental cash flows | Following are supplemental cash flow disclosures regarding transactions related to stock-based compensation awards. In certain situations, TDS and U.S. Cellular withhold shares that are issuable upon the exercise of stock options or the vesting of restricted shares to cover, and with a value equivalent to, the exercise price and/or the amount of taxes required to be withheld from the stock award holder at the time of the exercise or vesting. TDS and U.S. Cellular then pay the amount of the required tax withholdings to the taxing authorities in cash. TDS: Year Ended December 31, 2019 2018 2017 (Dollars in millions) Common Shares withheld 814,000 676,000 121,000 Aggregate value of Common Shares withheld $ 29 $ 21 $ 3 Cash receipts upon exercise of stock options 2 48 7 Cash disbursements for payment of taxes (8 ) (6 ) (3 ) Net cash receipts (disbursements) from exercise of stock options and vesting of other stock awards $ (6 ) $ 42 $ 4 U.S. Cellular: Year Ended December 31, 2019 2018 2017 (Dollars in millions) Common Shares withheld 452,000 1,550,000 145,000 Aggregate value of Common Shares withheld $ 23 $ 73 $ 6 Cash receipts upon exercise of stock options 1 29 5 Cash disbursements for payment of taxes (10 ) (11 ) (4 ) Net cash receipts (disbursements) from exercise of stock options and vesting of other stock awards $ (9 ) $ 18 $ 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Recent Accounting Pronouncements - Narrative (Details) | Jan. 01, 2018USD ($) | Dec. 31, 2019USD ($)reporting_unitunitasset_group | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($) |
Basis of presentation | ||||
Number of wireless connections | 4,900,000 | |||
Wireline and Cable connections | 1,200,000 | |||
FCC licenses, number of accounting units | unit | 8 | |||
FCC licenses, number of accounting units, built licenses | unit | 1 | |||
FCC licenses, number of accounting units, unbuilt licenses | unit | 7 | |||
Loss on impairment of goodwill | $ 0 | $ 0 | $ 262,000,000 | |
Goodwill | 547,000,000 | 509,000,000 | 509,000,000 | |
Depreciation, amortization and accretion | 932,000,000 | 883,000,000 | 844,000,000 | |
Net income | 147,000,000 | 175,000,000 | 157,000,000 | |
Advertising costs | 227,000,000 | 230,000,000 | 228,000,000 | |
U.S. Cellular | ||||
Basis of presentation | ||||
Loss on impairment of goodwill | 370,000,000 | |||
Goodwill | 0 | |||
Depreciation, amortization and accretion | 702,000,000 | 640,000,000 | 615,000,000 | |
Net income | 133,000,000 | 164,000,000 | 15,000,000 | |
Agent liability | $ 59,000,000 | 63,000,000 | ||
TDS Telecom | ||||
Basis of presentation | ||||
Number of reporting units | reporting_unit | 2 | |||
Loss on impairment of goodwill | 0 | |||
Asset groups | asset_group | 2 | |||
Depreciation, amortization and accretion | $ 200,000,000 | 212,000,000 | 195,000,000 | |
Net income | 92,000,000 | 89,000,000 | 138,000,000 | |
Wireline | ||||
Basis of presentation | ||||
Loss on impairment of goodwill | 0 | 0 | 0 | |
Goodwill | 409,000,000 | 409,000,000 | 409,000,000 | |
Depreciation, amortization and accretion | 132,000,000 | 142,000,000 | 151,000,000 | |
HMS | ||||
Basis of presentation | ||||
Goodwill | 0 | |||
Cable | ||||
Basis of presentation | ||||
Loss on impairment of goodwill | 0 | 0 | 0 | |
Goodwill | 138,000,000 | 100,000,000 | 100,000,000 | |
Depreciation, amortization and accretion | $ 68,000,000 | 69,000,000 | $ 44,000,000 | |
U.S. Cellular | ||||
Basis of presentation | ||||
Asset groups | asset_group | 1 | |||
Franchise rights | ||||
Basis of presentation | ||||
Useful life | 15 years | |||
Franchise rights | Intangible Assets, Amortization Period | ||||
Basis of presentation | ||||
Renewal period | 10 years | |||
Useful life | 15 years | |||
Impairment of intangible assets | $ 0 | |||
Depreciation, amortization and accretion | 17,000,000 | |||
Net income | $ (13,000,000) | |||
Basic and diluted earnings (loss) per share available to TDS common shareholders (in dollars per share) | $ / shares | $ (0.11) | |||
Licenses | ||||
Basis of presentation | ||||
Renewal period | 12 years | |||
Licenses | U.S. Cellular | ||||
Basis of presentation | ||||
Impairment of intangible assets | $ 0 | $ 0 | ||
Minimum | Leasehold Improvements | ||||
Basis of presentation | ||||
Useful life | 1 year | |||
Minimum | Licenses | ||||
Basis of presentation | ||||
Renewal period | 10 years | |||
Maximum | Leasehold Improvements | ||||
Basis of presentation | ||||
Useful life | 30 years | |||
Maximum | Licenses | ||||
Basis of presentation | ||||
Renewal period | 15 years | |||
U.S. Cellular | ||||
Basis of presentation | ||||
TDS ownership of U.S. Cellular | 82.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Recent Accounting Pronouncements - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 465 | $ 921 | ||
Restricted cash included in Other current assets | 9 | 6 | ||
Cash, cash equivalents and restricted cash in the statement of cash flows | $ 474 | $ 927 | $ 622 | $ 904 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | ||||
Amounts recorded gross in revenues that are billed to customers and remitted to governmental authorities | $ 78 | $ 90 | $ 80 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Cumulative effect of accounting changes | 2 | 195 | ||
Capitalized contract cost | ||||
Amortization of contract cost assets | 126 | 124 | ||
Revenue recognized | $ 164 | |||
Retained earnings | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Cumulative effect of accounting changes | $ 2 | $ 165 | ||
ASC 606 | Retained earnings | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Cumulative effect of accounting changes | $ 164 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation Of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 5,076 | $ 5,019 |
Transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 3,959 | 3,909 |
Transferred over time | Retail service | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 2,650 | 2,623 |
Transferred over time | Inbound roaming | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 174 | 154 |
Transferred over time | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 533 | 509 |
Transferred over time | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 209 | 226 |
Transferred over time | Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 185 | 191 |
Transferred over time | Other service | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 208 | 206 |
Transferred at point in time | Equipment and product sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 1,117 | 1,110 |
U.S. Cellular | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 3,948 | 3,901 |
U.S. Cellular | Transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 2,961 | 2,912 |
U.S. Cellular | Transferred over time | Retail service | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 2,650 | 2,623 |
U.S. Cellular | Transferred over time | Inbound roaming | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 174 | 154 |
U.S. Cellular | Transferred over time | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
U.S. Cellular | Transferred over time | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
U.S. Cellular | Transferred over time | Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
U.S. Cellular | Transferred over time | Other service | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 137 | 135 |
U.S. Cellular | Transferred at point in time | Equipment and product sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 987 | 989 |
TDS Telecom | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 927 | 927 |
TDS Telecom | Transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 926 | 925 |
TDS Telecom | Transferred over time | Retail service | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
TDS Telecom | Transferred over time | Inbound roaming | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
TDS Telecom | Transferred over time | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 533 | 509 |
TDS Telecom | Transferred over time | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 209 | 226 |
TDS Telecom | Transferred over time | Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 185 | 191 |
TDS Telecom | Transferred over time | Other service | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | (1) | (1) |
TDS Telecom | Transferred at point in time | Equipment and product sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 1 | 2 |
TDS Telecom Wireline | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 682 | 698 |
TDS Telecom Wireline | Transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 681 | 696 |
TDS Telecom Wireline | Transferred over time | Retail service | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
TDS Telecom Wireline | Transferred over time | Inbound roaming | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
TDS Telecom Wireline | Transferred over time | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 328 | 321 |
TDS Telecom Wireline | Transferred over time | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 168 | 184 |
TDS Telecom Wireline | Transferred over time | Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 185 | 191 |
TDS Telecom Wireline | Transferred over time | Other service | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
TDS Telecom Wireline | Transferred at point in time | Equipment and product sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 1 | 2 |
TDS Telecom Cable | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 246 | 230 |
TDS Telecom Cable | Transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 246 | 230 |
TDS Telecom Cable | Transferred over time | Retail service | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
TDS Telecom Cable | Transferred over time | Inbound roaming | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
TDS Telecom Cable | Transferred over time | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 205 | 188 |
TDS Telecom Cable | Transferred over time | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 41 | 42 |
TDS Telecom Cable | Transferred over time | Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
TDS Telecom Cable | Transferred over time | Other service | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
TDS Telecom Cable | Transferred at point in time | Equipment and product sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Corporate, Eliminations and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 201 | 191 |
Corporate, Eliminations and Other | Transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 72 | 72 |
Corporate, Eliminations and Other | Transferred over time | Retail service | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Corporate, Eliminations and Other | Transferred over time | Inbound roaming | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Corporate, Eliminations and Other | Transferred over time | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Corporate, Eliminations and Other | Transferred over time | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Corporate, Eliminations and Other | Transferred over time | Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Corporate, Eliminations and Other | Transferred over time | Other service | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 72 | 72 |
Corporate, Eliminations and Other | Transferred at point in time | Equipment and product sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 129 | $ 119 |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 10 | $ 11 |
Contract liabilities | $ 197 | $ 187 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligations (Details) $ in Millions | Dec. 31, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 736 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 367 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 167 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 202 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of remaining performance obligation, period |
Revenue Recognition - Contrac_2
Revenue Recognition - Contract Cost Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Contract cost assets | ||
Total contract cost assets | $ 157 | $ 164 |
Sales commissions | ||
Contract cost assets | ||
Total contract cost assets | 146 | 154 |
Installation costs | ||
Contract cost assets | ||
Total contract cost assets | $ 11 | $ 10 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financial Instruments | ||
Cash and cash equivalents | $ 465 | $ 921 |
Short-term investments | 0 | 17 |
Book Value | ||
Financial Instruments | ||
Cash and cash equivalents | 465 | 921 |
Short-term investments | 0 | 17 |
Book Value | Retail | ||
Financial Instruments | ||
Long-term debt | 1,753 | 1,753 |
Book Value | Institutional | ||
Financial Instruments | ||
Long-term debt | 534 | 534 |
Book Value | Other | ||
Financial Instruments | ||
Long-term debt | 84 | 182 |
Fair Value | Level 1 | ||
Financial Instruments | ||
Cash and cash equivalents | 465 | 921 |
Short-term investments | 0 | 17 |
Fair Value | Level 2 | Retail | ||
Financial Instruments | ||
Long-term debt | 1,796 | 1,596 |
Fair Value | Level 2 | Institutional | ||
Financial Instruments | ||
Long-term debt | 594 | 531 |
Fair Value | Level 2 | Other | ||
Financial Instruments | ||
Long-term debt | $ 84 | $ 182 |
7.0% Senior Notes | ||
Financial Instruments | ||
Interest rate on debt | 7.00% | |
6.875% Senior Notes | ||
Financial Instruments | ||
Interest rate on debt | 6.875% | |
6.625% Senior Notes | ||
Financial Instruments | ||
Interest rate on debt | 6.625% | |
5.875% Senior Notes | ||
Financial Instruments | ||
Interest rate on debt | 5.875% | |
7.25% 2063 Senior Notes | U.S. Cellular | ||
Financial Instruments | ||
Interest rate on debt | 7.25% | |
7.25% 2064 Senior Notes | U.S. Cellular | ||
Financial Instruments | ||
Interest rate on debt | 7.25% | |
6.95% Senior Notes | U.S. Cellular | ||
Financial Instruments | ||
Interest rate on debt | 6.95% | |
6.7% Senior Notes | U.S. Cellular | ||
Financial Instruments | ||
Interest rate on debt | 6.70% | |
Interest rate | Institutional and Other | Minimum | ||
Financial Instruments | ||
Fair value assumption, interest rate | 3.55% | 5.03% |
Interest rate | Institutional and Other | Maximum | ||
Financial Instruments | ||
Fair value assumption, interest rate | 6.25% | 8.00% |
Equipment Installment Plan Rece
Equipment Installment Plan Receivables - EIP Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Equipment installment plan receivables, gross | $ 1,008 | $ 974 |
Allowance for credit losses | (84) | (77) |
Equipment installment plan receivables, net | 924 | 897 |
Accounts receivable — Customers and agents (Current portion) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Equipment installment plan receivables, net | 587 | 560 |
Other assets and deferred charges (Non-current portion) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Equipment installment plan receivables, net | $ 337 | $ 337 |
Equipment Installment Plan Re_2
Equipment Installment Plan Receivables - Gross Receivables by Credit Category (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | $ 1,008 | $ 974 |
Unbilled | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables | 942 | 921 |
Billed | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables | 45 | 36 |
Equipment installment plan receivables, past due | 21 | 17 |
Lower Risk | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 995 | 954 |
Lower Risk | Unbilled | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables | 931 | 904 |
Lower Risk | Billed | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables | 44 | 35 |
Equipment installment plan receivables, past due | 20 | 15 |
Higher Risk | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 13 | 20 |
Higher Risk | Unbilled | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables | 11 | 17 |
Higher Risk | Billed | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables | 1 | 1 |
Equipment installment plan receivables, past due | $ 1 | $ 2 |
Equipment Installment Plan Re_3
Equipment Installment Plan Receivables - Allowance for Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for credit losses | ||
Allowance for credit losses, beginning of year | $ 77 | |
Allowance for credit losses, end of year | 84 | $ 77 |
Equipment Installment Plan Receivable | ||
Allowance for credit losses | ||
Allowance for credit losses, beginning of year | 77 | 65 |
Bad debts expense | 82 | 71 |
Write-offs, net of recoveries | (75) | (59) |
Allowance for credit losses, end of year | $ 84 | $ 77 |
Income Taxes - Balances (Detail
Income Taxes - Balances (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax [Line Items] | ||
Income taxes receivable | $ 36 | $ 12 |
Federal | ||
Income Tax [Line Items] | ||
Income taxes receivable | 31 | 6 |
State | ||
Income Tax [Line Items] | ||
Income taxes receivable | $ 5 | $ 6 |
Income Taxes - Expense (Benefit
Income Taxes - Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current | |||
Current federal income tax expense | $ 15 | $ 10 | $ 77 |
Current state income tax expense | 15 | 3 | 13 |
Deferred | |||
Deferred federal income tax expense (benefit) | 36 | 24 | (366) |
Deferred state income tax expense (benefit) | (2) | 9 | (3) |
Total income tax expense (benefit) | $ 64 | $ 46 | $ (279) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax [Line Items] | |||
Income tax benefit, adjustment | $ 4 | ||
Other income tax disclosures | |||
Effect of unrecognized tax benefit on income tax expense | $ 39 | 39 | $ 37 |
Interest expense and penalties related to unrecognized income tax expense | 3 | $ 3 | |
Net accrued interest and penalties | 21 | 19 | |
State | |||
Operating loss carryforwards | |||
NOL carryforwards | 2,861 | ||
Deferred income tax asset for State NOL carryforwards | 151 | ||
Federal | |||
Operating loss carryforwards | |||
Deferred income tax asset for Federal NOL carryforwards | $ 17 | ||
Maximum | |||
Other income tax disclosures | |||
Interest expense and penalties related to unrecognized income tax expense | $ 1 |
Income Taxes - Expense Reconcil
Income Taxes - Expense Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income tax expense reconciliation | |||
Statutory federal income tax expense | $ 44 | $ 46 | $ (43) |
State income taxes, net of federal benefit | 12 | 11 | 6 |
Effect of noncontrolling interests | 0 | (1) | (2) |
Federal income tax rate change | 0 | (16) | (314) |
Change in federal valuation allowance | 7 | (1) | (5) |
Goodwill impairment | 0 | 0 | 71 |
Nondeductible compensation | 4 | 9 | 10 |
Tax credits | (4) | (1) | (1) |
Other differences, net | 1 | (1) | (1) |
Total income tax expense (benefit) | $ 64 | $ 46 | $ (279) |
Income tax rate reconciliation | |||
Statutory federal income tax rate | 21.00% | 21.00% | 35.00% |
State income taxes, net of federal benefit | 5.50% | 4.90% | (5.20%) |
Effect of noncontrolling interests | (0.10%) | (0.40%) | 1.60% |
Federal income tax rate change | 0.00% | (7.10%) | 257.50% |
Change in federal valuation allowance | 3.10% | (0.30%) | 4.30% |
Goodwill impairment | 0.00% | 0.00% | (58.20%) |
Nondeductible compensation | 1.90% | 4.10% | (8.10%) |
Tax credits | (1.90%) | (0.60%) | 0.80% |
Other differences, net | 0.80% | (0.60%) | 1.40% |
Total income tax rate | 30.30% | 21.00% | 229.10% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Tax (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||
Net operating loss (NOL) carryforwards | $ 168 | $ 159 |
Lease liabilities | 251 | 0 |
Asset retirement obligation | 74 | 67 |
Other | 106 | 151 |
Total deferred tax assets | 599 | 377 |
Less valuation allowance | (152) | (135) |
Net deferred tax assets | 447 | 242 |
Deferred tax liabilities | ||
Property, plant and equipment | 481 | 458 |
Licenses/intangibles | 261 | 237 |
Partnership investments | 132 | 134 |
Lease assets | 226 | 0 |
Other | 22 | 53 |
Total deferred tax liabilities | 1,122 | 882 |
Net deferred income tax liability | $ 675 | $ 640 |
Income Taxes - Deferred Tax Val
Income Taxes - Deferred Tax Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred tax valuation allowance, rollfoward | |||
Balance at beginning of year | $ 135 | ||
Balance at end of year | 152 | $ 135 | |
Deferred tax asset valuation allowance | |||
Deferred tax valuation allowance, rollfoward | |||
Balance at beginning of year | 135 | 147 | $ 122 |
Charged to income tax expense | 17 | (5) | 25 |
Charged to Retained earnings | 0 | (7) | 0 |
Balance at end of year | $ 152 | $ 135 | $ 147 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of unrecognized income tax benefits | |||
Unrecognized tax benefits balance at beginning of year | $ 49 | $ 46 | $ 42 |
Additions for tax positions of current year | 8 | 8 | 6 |
Additions for tax positions of prior years | 0 | 2 | 1 |
Reductions for tax positions of prior years | (7) | (1) | (1) |
Reductions for settlements of tax positions | (1) | 0 | 0 |
Reductions for lapses in statutes of limitations | 0 | (6) | (2) |
Unrecognized tax benefits balance at end of year | $ 49 | $ 49 | $ 46 |
Earnings Per Share - Computatio
Earnings Per Share - Computation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per share | |||
Net income attributable to TDS shareholders used in basic earnings per share | $ 121 | $ 135 | $ 153 |
Noncontrolling interest adjustment | (1) | (2) | 0 |
Net income attributable to TDS shareholders used in diluted earnings per share | $ 120 | $ 133 | $ 153 |
Weighted average number of shares used in basic earnings per share (in shares) | 114 | 112 | 111 |
Effects of dilutive securities (in shares) | 2 | 2 | 1 |
Weighted average number of shares used in diluted earnings per share (in shares) | 116 | 114 | 112 |
Basic earnings per share attributable to TDS shareholders (in dollars per share) | $ 1.06 | $ 1.20 | $ 1.39 |
Diluted earnings per share attributable to TDS shareholders (in dollars per share) | $ 1.03 | $ 1.17 | $ 1.37 |
Common Shares | |||
Earnings per share | |||
Weighted average number of shares used in basic earnings per share (in shares) | 107 | 105 | 104 |
Series A Common Shares | |||
Earnings per share | |||
Weighted average number of shares used in basic earnings per share (in shares) | 7 | 7 | 7 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities (in shares) | 2 | 3 | 4 |
Acquisitions, Divestitures an_2
Acquisitions, Divestitures and Exchanges - Narrative (Details) - Continuum $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Acquisitions, divestitures and exchanges | |
Purchase price | $ 80 |
Households passed | 40,000 |
Acquisitions, Divestitures an_3
Acquisitions, Divestitures and Exchanges (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Acquisitions, divestitures and exchanges | |
Goodwill | $ 38 |
Continuum | |
Acquisitions, divestitures and exchanges | |
Purchase price | 80 |
Goodwill | 38 |
Intangible assets subject to amortization | 9 |
Net tangible assets (liabilities) | $ 33 |
Weighted average amortization period | 4 years |
Intangible Assets - Schedules (
Intangible Assets - Schedules (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill | |||
Balance, beginning of period | $ 509,000,000 | $ 509,000,000 | |
Acquisitions | 38,000,000 | ||
Other | 0 | ||
Balance, end of period | 547,000,000 | 509,000,000 | $ 509,000,000 |
Finite-Lived Intangible Assets | |||
Gross Amount | 406,000,000 | 421,000,000 | |
Accumulated Amortization | (167,000,000) | (168,000,000) | |
Net Amount | 239,000,000 | 253,000,000 | |
Franchise rights | |||
Finite-Lived Intangible Assets | |||
Gross Amount | 255,000,000 | 255,000,000 | |
Accumulated Amortization | (34,000,000) | (17,000,000) | |
Net Amount | 221,000,000 | 238,000,000 | |
Customer lists and Trade name | |||
Finite-Lived Intangible Assets | |||
Gross Amount | 151,000,000 | 166,000,000 | |
Accumulated Amortization | (133,000,000) | (151,000,000) | |
Net Amount | 18,000,000 | 15,000,000 | |
Wireline | |||
Schedule Of Indefinite Lived and Finite Lived Intangible Assets [Line Items] | |||
Accumulated impairment losses in prior periods | 29,000,000 | ||
Goodwill | |||
Balance, beginning of period | 409,000,000 | 409,000,000 | |
Acquisitions | 0 | ||
Other | 0 | ||
Balance, end of period | 409,000,000 | 409,000,000 | 409,000,000 |
Cable | |||
Goodwill | |||
Balance, beginning of period | 100,000,000 | 100,000,000 | |
Acquisitions | 38,000,000 | ||
Other | 0 | ||
Balance, end of period | 138,000,000 | 100,000,000 | 100,000,000 |
U.S. Cellular | |||
Goodwill | |||
Balance, beginning of period | 0 | ||
Loss on impairment | (227,000,000) | ||
Balance, end of period | 0 | ||
Licenses | |||
Licenses | |||
Balance, beginning of period | 2,195,000,000 | 2,232,000,000 | |
Acquisitions | 267,000,000 | 8,000,000 | |
Transferred to Assets held for sale | (51,000,000) | ||
Divestitures | (10,000,000) | (11,000,000) | |
Exchanges - Licenses received | 26,000,000 | 18,000,000 | |
Exchanges - Licenses surrendered | 0 | (1,000,000) | |
Capitalized interest | 2,000,000 | ||
Balance, end of period | 2,480,000,000 | 2,195,000,000 | 2,232,000,000 |
Licenses | Wireline | |||
Licenses | |||
Balance, beginning of period | 2,000,000 | 2,000,000 | |
Acquisitions | 0 | 0 | |
Transferred to Assets held for sale | 0 | ||
Divestitures | 0 | 0 | |
Exchanges - Licenses received | 0 | 0 | |
Exchanges - Licenses surrendered | 0 | 0 | |
Capitalized interest | 0 | ||
Balance, end of period | 2,000,000 | 2,000,000 | 2,000,000 |
Licenses | Cable | |||
Licenses | |||
Balance, beginning of period | 3,000,000 | 3,000,000 | |
Acquisitions | 0 | 0 | |
Transferred to Assets held for sale | 0 | ||
Divestitures | 0 | 0 | |
Exchanges - Licenses received | 0 | 0 | |
Exchanges - Licenses surrendered | 0 | 0 | |
Capitalized interest | 0 | ||
Balance, end of period | 3,000,000 | 3,000,000 | 3,000,000 |
Licenses | U.S. Cellular | |||
Licenses | |||
Balance, beginning of period | 2,190,000,000 | 2,227,000,000 | |
Acquisitions | 267,000,000 | 8,000,000 | |
Transferred to Assets held for sale | (51,000,000) | ||
Divestitures | (10,000,000) | (11,000,000) | |
Exchanges - Licenses received | 26,000,000 | 18,000,000 | |
Exchanges - Licenses surrendered | 0 | (1,000,000) | |
Capitalized interest | 2,000,000 | ||
Balance, end of period | $ 2,475,000,000 | $ 2,190,000,000 | $ 2,227,000,000 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)license | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Goodwill [Line Items] | |||
Goodwill | $ 547,000,000 | $ 509,000,000 | $ 509,000,000 |
Amortization expense for intangible assets | 24,000,000 | 26,000,000 | 11,000,000 |
Estimated amortization expense | |||
2020 | 25,000,000 | ||
2021 | 21,000,000 | ||
2022 | 20,000,000 | ||
2023 | 19,000,000 | ||
2024 | $ 17,000,000 | ||
Franchise rights | |||
Goodwill [Line Items] | |||
Useful life | 15 years | ||
U.S. Cellular | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Total winning bid | $ 256,000,000 | ||
U.S. Cellular | |||
Goodwill [Line Items] | |||
Loss on impairment | 227,000,000 | ||
Goodwill | 0 | ||
HMS | |||
Goodwill [Line Items] | |||
Loss on impairment | 35,000,000 | ||
Goodwill | 0 | ||
Wireline | |||
Goodwill [Line Items] | |||
Goodwill | $ 409,000,000 | $ 409,000,000 | $ 409,000,000 |
Auction 101 | U.S. Cellular | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Licenses won | license | 408 | ||
Auction 102 | U.S. Cellular | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Licenses won | license | 282 |
Investments in Unconsolidated_3
Investments in Unconsolidated Entities - Schedule of Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Capital contributions, loans, advances and adjustments | $ 116 | $ 116 | |
Cumulative share of income | 2,099 | 1,930 | |
Cumulative share of distributions | (1,748) | (1,587) | |
Total equity method investments | 467 | 459 | |
Measurement alternative method investments | 21 | 21 | |
Total investments in unconsolidated entities | 488 | 480 | $ 453 |
Assets | |||
Current | 1,516 | 1,299 | |
Noncurrent | 5,776 | 5,010 | |
Total assets | 7,292 | 6,309 | |
Liabilities and Equity | |||
Current liabilities | 626 | 436 | |
Noncurrent liabilities | 1,132 | 405 | |
Partners’ capital and shareholders’ equity | 5,534 | 5,468 | |
Total liabilities and equity | 7,292 | 6,309 | |
Results of Operations | |||
Revenues | 6,929 | 6,801 | 6,585 |
Operating expenses | 5,043 | 4,985 | 4,985 |
Operating income | 1,886 | 1,816 | 1,600 |
Other income (expense), net | (24) | 9 | (3) |
Net income | $ 1,862 | $ 1,825 | $ 1,597 |
Property, Plant and Equipment (
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Land | $ 57 | $ 55 | |
Buildings | 527 | 523 | |
Leasehold and land improvements | 1,314 | 1,245 | |
Cable and wire | 1,996 | 1,884 | |
Network and switching equipment | 2,507 | 2,423 | |
Cell site equipment | 3,708 | 3,460 | |
Office furniture and equipment | 387 | 378 | |
Other operating assets and equipment | 174 | 193 | |
System development | 1,604 | 1,486 | |
Work in process | 590 | 427 | |
Total property, plant and equipment, gross | 12,864 | 12,074 | |
Accumulated depreciation and amortization | (9,337) | (8,728) | |
Property, plant and equipment, net | 3,527 | 3,346 | |
Depreciation and amortization expense | 890 | 839 | $ 817 |
(Gain) loss on asset disposals, net | $ 12 | $ 9 | $ 21 |
Buildings | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
Buildings | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 40 years | ||
Leasehold and land improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 1 year | ||
Leasehold and land improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 30 years | ||
Cable and wire | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 15 years | ||
Cable and wire | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 35 years | ||
Network and switching equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 3 years | ||
Network and switching equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 13 years | ||
Cell site equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 7 years | ||
Cell site equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 25 years | ||
Office furniture and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 3 years | ||
Office furniture and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 10 years | ||
Other operating assets and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 3 years | ||
Other operating assets and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 12 years | ||
System development | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 1 year | ||
System development | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 7 years |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Leases | |||
Cumulative effect of accounting changes | $ 2 | $ 195 | |
Rent expense, cancellable long-term operating lease | 189 | 183 | |
Rent expense, cancellable short-term operating lease | 12 | 12 | |
Retained earnings | |||
Leases | |||
Cumulative effect of accounting changes | $ 2 | $ 165 | |
Minimum | ASC 842 | Retained earnings | |||
Leases | |||
Cumulative effect of accounting changes | $ 0 |
Leases - Consolidated Balance S
Leases - Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Leases - Consolidated Balance Sheet [Abstract] | |||
Prepaid expenses | $ 98 | $ 90 | $ 103 |
Operating lease right-of-use assets | 972 | 975 | 0 |
Other assets and deferred charges | 607 | 604 | 616 |
Short-term operating lease liabilities | 116 | 112 | 0 |
Other current liabilities | 100 | 106 | 114 |
Long-term operating lease liabilities | 931 | 949 | 0 |
Other deferred liabilities and credits | $ 481 | 438 | $ 541 |
ASC 842 Adjustment | |||
Leases - Consolidated Balance Sheet [Abstract] | |||
Prepaid expenses | (13) | ||
Operating lease right-of-use assets | 975 | ||
Other assets and deferred charges | (12) | ||
Short-term operating lease liabilities | 112 | ||
Other current liabilities | (8) | ||
Long-term operating lease liabilities | 949 | ||
Other deferred liabilities and credits | $ (103) |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease, Cost [Abstract] | |
Operating lease cost | $ 177 |
Amortization of ROU assets | 2 |
Interest on lease liabilities | 1 |
Variable lease cost | 8 |
Total lease cost | $ 188 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 172 |
Operating cash flows from finance leases | 1 |
ROU assets obtained in exchange for lease obligations: | |
Operating leases | 132 |
Finance leases | $ 10 |
Leases - Classification of Fina
Leases - Classification of Finance Leases (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Finance Leases | ||
Property, plant and equipment | $ 12,864 | $ 12,074 |
Less: Accumulated depreciation and amortization | 9,337 | 8,728 |
Property, plant and equipment, net | 3,527 | 3,346 |
Current portion of long-term debt | 10 | 21 |
Long-term debt, net | 2,316 | $ 2,418 |
Total finance lease liabilities | 8 | |
Finance leases | ||
Finance Leases | ||
Property, plant and equipment | 20 | |
Less: Accumulated depreciation and amortization | 5 | |
Property, plant and equipment, net | 15 | |
Current portion of long-term debt | 1 | |
Long-term debt, net | 7 | |
Total finance lease liabilities | $ 8 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Dec. 31, 2019 |
Weighted Average Remaining Lease Term | |
Operating leases | 12 years |
Finance leases | 24 years |
Weighted Average Discount Rate | |
Operating leases | 4.40% |
Finance leases | 6.30% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Millions | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 159 |
2021 | 159 |
2022 | 143 |
2023 | 127 |
2024 | 109 |
Thereafter | 730 |
Total lease payments | 1,427 |
Less: Imputed interest | 380 |
Present value of lease liabilities | 1,047 |
Finance Leases | |
2020 | 1 |
2021 | 0 |
2022 | 1 |
2023 | 1 |
2024 | 1 |
Thereafter | 16 |
Total lease payments | 20 |
Less: Imputed interest | 12 |
Present value of lease liabilities | 8 |
Legally binding lease payments for leases signed but not yet commenced | $ 29 |
Leases - Components of Lease In
Leases - Components of Lease Income (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases | |
Operating lease income | $ 100 |
Tower leases out of period adjustment | |
Leases | |
Immaterial error correction | During the third quarter of 2019, TDS recorded an out-of-period adjustment attributable to 2009 through the second quarter of 2019 due to errors in the timing of recognition of revenue for certain tower leases. This out-of-period adjustment had the impact of increasing operating lease income by $5 million for the year ended December 31, 2019. TDS determined that this adjustment was not material to any of the periods impacted. |
Other service revenues | Tower leases out of period adjustment | |
Leases | |
Out-of-period adjustment | $ 5 |
Leases - Maturities of Expected
Leases - Maturities of Expected Lease Revenues (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 87 |
2021 | 70 |
2022 | 44 |
2023 | 32 |
2024 | 16 |
Thereafter | 17 |
Total future lease maturities | $ 266 |
Leases - Minimum Lease Obligati
Leases - Minimum Lease Obligations (Details) $ in Millions | Dec. 31, 2018USD ($) |
Operating Leases Future Minimum Rental Payments | |
2019 | $ 170 |
2020 | 158 |
2021 | 142 |
2022 | 126 |
2023 | 110 |
Thereafter | 784 |
Total | 1,490 |
Operating Leases Future Minimum Rental Receipts | |
2019 | 59 |
2020 | 48 |
2021 | 35 |
2022 | 23 |
2023 | 10 |
Thereafter | 7 |
Total | $ 182 |
Asset Retirement Obligation (De
Asset Retirement Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Asset retirement obligation | ||
Balance at beginning of year | $ 307 | $ 283 |
Additional liabilities accrued | 13 | 2 |
Revisions in estimated cash outflows | 2 | 6 |
Acquisition of assets | 1 | 0 |
Disposition of assets | (1) | (1) |
Accretion expense | 20 | 18 |
Transferred to Liabilities held for sale | 0 | (1) |
Balance at end of year | $ 342 | $ 307 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facilities (Details) | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jul. 01, 2019 | Jun. 30, 2019 | |
TDS Revolving credit facility | |||||
Revolving credit | |||||
Maximum borrowing capacity | $ 400,000,000 | ||||
Letters of credit outstanding | 1,000,000 | ||||
Amount borrowed | 0 | ||||
Amount available for use | 399,000,000 | ||||
U.S. Cellular Revolving credit facility | |||||
Revolving credit | |||||
Maximum borrowing capacity | 300,000,000 | ||||
Letters of credit outstanding | 2,000,000 | ||||
Amount borrowed | 0 | ||||
Amount available for use | 298,000,000 | ||||
TDS and U.S. Cellular Revolving credit facility | |||||
Revolving credit | |||||
Unused commitment fees | 2,000,000 | $ 2,000,000 | $ 2,000,000 | ||
Amount borrowed | $ 0 | ||||
Consolidated interest coverage ratio | 3 | ||||
Consolidated leverage ratio | 3 | 3.25 | |||
TDS and U.S. Cellular Revolving credit facility | LIBOR rate | |||||
Revolving credit | |||||
Contractual spread | 1.75% | ||||
TDS and U.S. Cellular Revolving credit facility | Alternative Base Rate | |||||
Revolving credit | |||||
Contractual spread | 0.75% | ||||
Maximum | Subordinated Agreement | U.S. Cellular | |||||
Revolving credit | |||||
Consolidated funded indebtedness | $ 105,000,000 | ||||
Refinancing indebtedness | 250,000,000 | ||||
Subordinated Agreement | U.S. Cellular Revolving credit facility | |||||
Revolving credit | |||||
Consolidated funded indebtedness | 0 | ||||
Refinancing indebtedness | $ 0 |
Debt - Term Loan Facility (Deta
Debt - Term Loan Facility (Details) - USD ($) | Oct. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 31, 2015 |
Long-term debt | ||||
Principal amount | $ 2,398,000,000 | $ 2,512,000,000 | ||
U.S. Cellular Term loan facility | U.S. Cellular | ||||
Long-term debt | ||||
Principal amount | $ 83,000,000 | $ 191,000,000 | $ 225,000,000 | |
Principal prepayment | $ 100,000,000 | |||
U.S. Cellular Term loan facility | U.S. Cellular | LIBOR rate | ||||
Long-term debt | ||||
Contractual spread | 1.75% | |||
Subordinated Agreement | U.S. Cellular Term loan facility | U.S. Cellular | ||||
Debt Instrument [Line Items] | ||||
Consolidated funded indebtedness | $ 0 | |||
Refinancing indebtedness | $ 0 |
Debt - Receivables Securitizati
Debt - Receivables Securitization Agreement (Details) - U.S. Cellular - Receivables securitization facility - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 200,000,000 | $ 200,000,000 | |
Amounts borrowed | 0 | ||
Unused commitment fees | $ 1,000,000 | $ 1,000,000 | $ 0 |
Debt - Long-Term Debt (Details)
Debt - Long-Term Debt (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jul. 31, 2015 | |
Long-term debt | |||
Principal amount | $ 2,398,000,000 | $ 2,512,000,000 | |
Unamortized discount and debt issuance costs | 72,000,000 | 73,000,000 | |
Total long term debt | 2,326,000,000 | 2,439,000,000 | |
Current portion of long-term debt | 10,000,000 | 21,000,000 | |
Long-term debt, net | 2,316,000,000 | 2,418,000,000 | |
Long-term debt maturities | |||
Scheduled principal payments 2020 | 10,000,000 | ||
Scheduled principal payments 2021 | 2,000,000 | ||
Scheduled principal payments 2022 | 83,000,000 | ||
Maximum | |||
Long-term debt maturities | |||
Scheduled principal payments 2023 | 1,000,000 | ||
Scheduled principal payments 2024 | $ 1,000,000 | ||
6.625% Senior Notes | |||
Long-term debt | |||
Interest rate on debt | 6.625% | ||
6.875% Senior Notes | |||
Long-term debt | |||
Interest rate on debt | 6.875% | ||
7.0% Senior Notes | |||
Long-term debt | |||
Interest rate on debt | 7.00% | ||
5.875% Senior Notes | |||
Long-term debt | |||
Interest rate on debt | 5.875% | ||
6.7% Senior Notes | Treasury Rate | |||
Long-term debt | |||
Interest rate on debt | 0.30% | ||
Callable Notes | |||
Long-term debt | |||
Redemption price, percentage | 100.00% | ||
Finance lease obligations | |||
Long-term debt | |||
Principal amount | $ 8,000,000 | 6,000,000 | |
Unamortized discount and debt issuance costs | 0 | 0 | |
Finance lease obligations | 8,000,000 | 6,000,000 | |
Installment payment agreement | |||
Long-term debt | |||
Principal amount | 8,000,000 | 15,000,000 | |
Unamortized discount and debt issuance costs | 1,000,000 | 1,000,000 | |
Long-term debt | 7,000,000 | 14,000,000 | |
Other long-term notes | |||
Long-term debt | |||
Principal amount | 2,000,000 | 3,000,000 | |
Unamortized discount and debt issuance costs | 0 | 0 | |
Long-term debt | $ 2,000,000 | 3,000,000 | |
TDS Parent Company | 6.625% Senior Notes | |||
Long-term debt | |||
Interest rate on debt | 6.625% | ||
Principal amount | $ 116,000,000 | 116,000,000 | |
Unamortized discount and debt issuance costs | 3,000,000 | 3,000,000 | |
Long-term debt | $ 113,000,000 | 113,000,000 | |
TDS Parent Company | 6.875% Senior Notes | |||
Long-term debt | |||
Interest rate on debt | 6.875% | ||
Principal amount | $ 225,000,000 | 225,000,000 | |
Unamortized discount and debt issuance costs | 7,000,000 | 7,000,000 | |
Long-term debt | $ 218,000,000 | 218,000,000 | |
TDS Parent Company | 7.0% Senior Notes | |||
Long-term debt | |||
Interest rate on debt | 7.00% | ||
Principal amount | $ 300,000,000 | 300,000,000 | |
Unamortized discount and debt issuance costs | 9,000,000 | 9,000,000 | |
Long-term debt | $ 291,000,000 | 291,000,000 | |
TDS Parent Company | 5.875% Senior Notes | |||
Long-term debt | |||
Interest rate on debt | 5.875% | ||
Principal amount | $ 195,000,000 | 195,000,000 | |
Unamortized discount and debt issuance costs | 7,000,000 | 7,000,000 | |
Long-term debt | $ 188,000,000 | 188,000,000 | |
U.S. Cellular | 6.7% Senior Notes | |||
Long-term debt | |||
Interest rate on debt | 6.70% | ||
Principal amount | $ 544,000,000 | 544,000,000 | |
Unamortized discount and debt issuance costs | 13,000,000 | 14,000,000 | |
Long-term debt | $ 531,000,000 | 530,000,000 | |
Redemption price, percentage | 100.00% | ||
U.S. Cellular | 6.95% Senior Notes | |||
Long-term debt | |||
Interest rate on debt | 6.95% | ||
Principal amount | $ 342,000,000 | 342,000,000 | |
Unamortized discount and debt issuance costs | 11,000,000 | 11,000,000 | |
Long-term debt | $ 331,000,000 | 331,000,000 | |
U.S. Cellular | 7.25% Senior Notes due 2063 | |||
Long-term debt | |||
Interest rate on debt | 7.25% | ||
Principal amount | $ 275,000,000 | 275,000,000 | |
Unamortized discount and debt issuance costs | 10,000,000 | 10,000,000 | |
Long-term debt | $ 265,000,000 | 265,000,000 | |
U.S. Cellular | 7.25% Senior Notes due 2064 | |||
Long-term debt | |||
Interest rate on debt | 7.25% | ||
Principal amount | $ 300,000,000 | 300,000,000 | |
Unamortized discount and debt issuance costs | 10,000,000 | 10,000,000 | |
Long-term debt | 290,000,000 | 290,000,000 | |
U.S. Cellular | U.S. Cellular Term loan facility | |||
Long-term debt | |||
Principal amount | 83,000,000 | 191,000,000 | $ 225,000,000 |
Unamortized discount and debt issuance costs | 1,000,000 | 1,000,000 | |
Long-term debt | $ 82,000,000 | $ 190,000,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | $ 63 | $ 55 | |
Benefit obligation at end of year | 55 | 49 | |
Funded status | 8 | 6 | |
Pension | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution cost | 17 | 16 | $ 16 |
Retirement Savings (401(k) Plan) | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution cost | $ 25 | $ 28 | $ 27 |
Commitments and Contingencies -
Commitments and Contingencies - Purchase obligations (Details) $ in Millions | Dec. 31, 2019USD ($) |
Purchase Obligations | |
2020 | $ 1,065 |
2021 | 448 |
2022 | 755 |
2023 | 63 |
2024 | 40 |
Thereafter | 37 |
Total | $ 2,408 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | Feb. 25, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Loss Contingency, Estimate [Abstract] | |||
Accrual for legal proceedings and unasserted claims | $ 2 | ||
Maximum | |||
Loss Contingency, Estimate [Abstract] | |||
Accrual for legal proceedings and unasserted claims | $ 1 | ||
U.S. Cellular | |||
Loss Contingency, Estimate [Abstract] | |||
FCC License Auction, Percent of Bid Credit in Each Auction | 25.00% | ||
Subsequent Event | |||
Long-term Purchase Commitment [Line Items] | |||
Commitment to purchase assets | $ 146 |
Variable Interest Entities - As
Variable Interest Entities - Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Assets | |||
Cash and cash equivalents | $ 465 | $ 921 | |
Short-term investments | 0 | 17 | |
Accounts receivable | 1,005 | 992 | |
Inventory, net | 169 | 150 | |
Other current assets | 29 | 28 | |
Licenses | 2,480 | 2,195 | |
Property, plant and equipment, net | 3,527 | 3,346 | |
Operating lease right-of-use assets | 972 | $ 975 | 0 |
Other assets and deferred charges | 607 | 604 | 616 |
Liabilities | |||
Current liabilities | 962 | 879 | |
Long-term operating lease liabilities | 931 | $ 949 | 0 |
Consolidated Variable Interest Entities | |||
Assets | |||
Cash and cash equivalents | 19 | 9 | |
Short-term investments | 0 | 17 | |
Accounts receivable | 637 | 609 | |
Inventory, net | 5 | 5 | |
Other current assets | 7 | 5 | |
Licenses | 647 | 647 | |
Property, plant and equipment, net | 95 | 88 | |
Operating lease right-of-use assets | 42 | 0 | |
Other assets and deferred charges | 347 | 347 | |
Total assets | 1,799 | 1,727 | |
Liabilities | |||
Current liabilities | 30 | 31 | |
Long-term operating lease liabilities | 39 | 0 | |
Deferred liabilities and credits | 13 | 15 | |
Total liabilities | $ 82 | $ 46 |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Variable Interest Entities, Other Disclosures | |||
Capital contributions, loans or advances | $ 255 | $ 152 | $ 821 |
King Street Wireless out-of-period adjustment | |||
Variable Interest Entities, Other Disclosures | |||
Immaterial error correction | During the first quarter of 2018, TDS recorded an out-of-period adjustment attributable to 2016 and 2017 due to errors in the application of accounting guidance applicable to the calculation of Noncontrolling interests with redemption features related to King Street Wireless, Inc. This out-of-period adjustment had the impact of increasing Net income attributable to noncontrolling interests, net of tax, by $6 million and decreasing Net income attributable to TDS shareholders by $6 million in 2018. TDS determined that this adjustment was not material to any of the periods impacted. | ||
Net income attributable to noncontrolling interests, net of tax | King Street Wireless out-of-period adjustment | |||
Variable Interest Entities, Other Disclosures | |||
Out-of-period adjustment | $ 6 | ||
Net income attributable to TDS shareholders | King Street Wireless out-of-period adjustment | |||
Variable Interest Entities, Other Disclosures | |||
Out-of-period adjustment | (6) | ||
Unconsolidated Variable Interest Entities | |||
Variable Interest Entities, Other Disclosures | |||
Investment in unconsolidated entities, maximum exposure | 5 | 4 | |
USCC EIP LLC | |||
Variable Interest Entities, Other Disclosures | |||
Capital contributions, loans or advances | $ 214 | $ 116 | $ 790 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Noncontrolling Interest [Abstract] | |||
Net income attributable to TDS shareholders | $ 121 | $ 135 | $ 153 |
Transfer (to) from the noncontrolling interests | |||
Change in TDS' Capital in excess of par value from U.S. Cellular's issuance of U.S. Cellular shares | (23) | (30) | (12) |
Change in TDS' Capital in excess of par value from U.S. Cellular's repurchase of U.S. Cellular shares | 6 | 0 | 0 |
Net transfers (to) from noncontrolling interests | (17) | (30) | (12) |
Change from net income attributable to TDS shareholders and transfers (to) from noncontrolling interests | 104 | $ 105 | $ 141 |
Redeemable noncontrolling interest | |||
Settlement value of mandatorily redeemable noncontrolling interests | 20 | ||
Carrying value of mandatorily redeemable noncontrolling interests | $ 5 |
Common Shareholders' Equity - N
Common Shareholders' Equity - Narrative (Details) | Jan. 01, 2017shares | Nov. 30, 2009shares | Dec. 31, 2019USD ($)votedirectorshares | Aug. 02, 2013USD ($) |
Share repurchases | ||||
Repurchase authorization, maximum dollar value | $ | $ 199,000,000 | |||
Series A Common Shares | ||||
Common shareholders' equity, other disclosures | ||||
Number of votes | vote | 10 | |||
Number of directors entitled to elect shares | director | 8 | |||
Common Shares | ||||
Common shareholders' equity, other disclosures | ||||
Number of votes | vote | 1 | |||
Number of directors entitled to elect shares | director | 4 | |||
Share repurchases | ||||
Repurchase authorization | $ | $ 250,000,000 | |||
Common Shares | Share Conversion | ||||
Common shareholders' equity, other disclosures | ||||
Shares reserved (in shares) | 7,234,000 | |||
Common Shares | Tax-Deferred Savings Plan | ||||
Common shareholders' equity, other disclosures | ||||
Shares reserved (in shares) | 90,000 | |||
U.S. Cellular Common Shares | U.S. Cellular | ||||
Share repurchases | ||||
Repurchase authorization, additional number of shares per year (in shares) | 1,300,000 | |||
Repurchase authorization, cumulative shares authorized (in shares) | 5,311,000 | |||
U.S. Cellular Common Shares | U.S. Cellular | Maximum | ||||
Share repurchases | ||||
Repurchase authorization, additional number of shares per year (in shares) | 1,300,000 | |||
U.S. Cellular Common Shares | U.S. Cellular | Minimum | ||||
Share repurchases | ||||
Repurchase authorization, additional number of shares per year (in shares) | 0 |
Common Shareholders' Equity - E
Common Shareholders' Equity - Equity Rollforward (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common shareholders' equity, share rollforward | |||
Common stock, shares issued beginning balance (in shares) | 133 | ||
Common stock, shares issued ending balance (in shares) | 133 | 133 | |
Common Shares | |||
Common shareholders' equity, share rollforward | |||
Common stock, shares issued beginning balance (in shares) | 126 | 126 | 126 |
Common stock, shares issued ending balance (in shares) | 126 | 126 | 126 |
Treasury shares, share rollforward | |||
Treasury shares, beginning balance (in shares) | 19 | 22 | 23 |
Dividend reinvestment, incentive and compensation plans - Treasury shares | (1) | (3) | (1) |
Treasury shares, ending balance (in shares) | 18 | 19 | 22 |
Series A Common Shares | |||
Common shareholders' equity, share rollforward | |||
Common stock, shares issued beginning balance (in shares) | 7 | 7 | 7 |
Common stock, shares issued ending balance (in shares) | 7 | 7 | 7 |
Stock-Based Compensation - TDS
Stock-Based Compensation - TDS Consolidated (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock based compensation | |||
Stock-based compensation expense | $ 59 | $ 54 | $ 46 |
Income tax benefit | (15) | (14) | (17) |
Total stock-based compensation expense, net of income taxes | 44 | 40 | 29 |
Unrecognized compensation cost for all stock-based compensation awards | $ 49 | ||
Weighted average period for recognition of unrecognized compensation cost for all stock-based compensation awards | 1 year 9 months 18 days | ||
Tax benefit from exercise of stock options and other awards | $ 13 | ||
Selling, general and administrative expense | |||
Stock based compensation | |||
Stock-based compensation expense | 54 | 49 | 42 |
Cost of services expense | |||
Stock based compensation | |||
Stock-based compensation expense | 5 | 5 | 4 |
Long-Term Incentive Plans | Stock Options | |||
Stock based compensation | |||
Stock-based compensation expense | 3 | 5 | 10 |
Long-Term Incentive Plans | Restricted Stock Units | |||
Stock based compensation | |||
Stock-based compensation expense | 33 | 30 | 29 |
Long-Term Incentive Plans | Performance Share Units | |||
Stock based compensation | |||
Stock-based compensation expense | 21 | 17 | 5 |
Long-Term Incentive Plans | Deferred Compensation Stock Units | |||
Stock based compensation | |||
Stock-based compensation expense | 0 | 0 | 1 |
Non-Employee Directors' Plan | |||
Stock based compensation | |||
Stock-based compensation expense | $ 2 | $ 2 | $ 1 |
Stock-Based Compensation - TD_2
Stock-Based Compensation - TDS excluding U.S. Cellular, Valuation model (Details) - TDS Parent Company - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
TDS Long-Term Incentive Plans | Stock Options | |||
Black Scholes valuation model assumptions | |||
Expected life | 6 years 2 months 12 days | 6 years 3 months 18 days | 6 years 4 months 24 days |
Expected annual volatility rate | 29.00% | 28.60% | 30.40% |
Dividend yield | 2.10% | 2.50% | 2.20% |
Risk-free interest rate | 2.40% | 2.90% | 2.00% |
Estimated annual forfeiture rate | 3.80% | 3.30% | 2.50% |
Common Shares | TDS Long-Term Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved | 12,475,000 | ||
Award vesting period | 3 years | ||
Common Shares | Non-Employee Directors' Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved | 225,000 | ||
Common Shares | Maximum | TDS Long-Term Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
Terminated Employees | Common Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 30 days | ||
Retired Employees | Common Shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 90 days | ||
Retired Employees | Common Shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 1 year |
Stock-Based Compensation - TD_3
Stock-Based Compensation - TDS excluding U.S. Cellular, Stock option rollforward schedules (Details) - TDS Parent Company - Common Shares - Stock Options - TDS Long-Term Incentive Plans - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock compensation, stock option rollforward schedule, number of shares | |||
Outstanding, beginning of period (in shares) | 4,763,000 | ||
Exercisable options, beginning of period (in shares) | 3,270,000 | ||
Granted options (in shares) | 208,000 | ||
Exercised options (in shares) | (826,000) | ||
Forfeited options (in shares) | (54,000) | ||
Outstanding, end of period (in shares) | 4,091,000 | 4,763,000 | |
Exercisable options, end of period (in shares) | 2,896,000 | 3,270,000 | |
Stock compensation, stock option rollforward schedule, other information | |||
Options outstanding, beginning of period - weighted average exercise price (USD per share) | $ 26.57 | ||
Options exercisable, beginning of period - weighted average exercise price (USD per share) | 26.12 | ||
Options granted, weighted average exercise price (USD per share) | 30.72 | ||
Options exercised, weighted average exercise price (USD per share) | 27.25 | ||
Options forfeited, weighted average exercise price (USD per share) | 27.70 | ||
Options outstanding, end of period - weighted average exercise price (USD per share) | 26.63 | $ 26.57 | |
Options exercisable, end of period - weighted average exercise price (USD per share) | $ 26.32 | 26.12 | |
Aggregate intrinsic value, options outstanding | $ 4 | ||
Aggregate intrinsic value, options exercisable | $ 4 | ||
Weighted average remaining contractual life, outstanding | 5 years | ||
Weighted average remaining contractual life, exercisable | 3 years 8 months 12 days | ||
Options granted, weighted average grant date fair value | $ 7.70 | $ 6.33 | $ 7.06 |
Aggregate intrinsic value, options exercised | $ 7 | $ 14 | $ 1 |
Stock-Based Compensation - TD_4
Stock-Based Compensation - TDS excluding U.S. Cellular, Nonvested shares and other stock compensation disclosures (Details) - TDS Parent Company - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Performance Share Units | Minimum | |||
Shares issued and granted under stock compensation plans | |||
Performance share awards target | 0.00% | ||
Performance Share Units | Maximum | |||
Shares issued and granted under stock compensation plans | |||
Performance share awards target | 200.00% | ||
Common Shares | Non-Employee Directors' Plan | |||
Shares issued and granted under stock compensation plans | |||
Shares issued | 28,000 | 32,000 | 27,000 |
Shares reserved | 225,000 | ||
Common Shares | TDS Long-Term Incentive Plans | |||
Shares issued and granted under stock compensation plans | |||
Award vesting period | 3 years | ||
Shares reserved | 12,475,000 | ||
Common Shares | Automatic Dividend Reinvestment and Stock Purchase Plans | |||
Shares issued and granted under stock compensation plans | |||
Shares reserved | 464,000 | ||
Purchase price, percent | 95.00% | ||
Common Shares | Restricted Stock Units | |||
Stock based compensation, Nonvested shares rollforward, number of shares | |||
Nonvested stock units, beginning of period - Number of shares (in shares) | 1,212,000 | ||
Granted number of shares (in shares) | 425,000 | ||
Vested number of shares (in shares) | (355,000) | ||
Forfeited number of shares (in shares) | (49,000) | ||
Nonvested stock units, end of period - Number of shares (in shares) | 1,233,000 | 1,212,000 | |
Stock based compensation, Nonvested shares weighted average grant date fair value | |||
Nonvested stock units - beginning of period weighted average grant date fair value (USD per share) | $ 25.73 | ||
Granted weighted average grant date fair value (USD per share) | 28.81 | $ 23.87 | $ 25.97 |
Vested weighted average grant date fair value (USD per share) | 27.87 | ||
Forfeited weighted average grant date fair value (USD per share) | 26.11 | ||
Nonvested stock units - end of period weighted average grant date fair value (USD per share) | $ 26.16 | $ 25.73 | |
Shares issued and granted under stock compensation plans | |||
Fair value of vested stock units | $ 11,000,000 | $ 9,000,000 | $ 9,000,000 |
Common Shares | Performance Share Units | |||
Stock based compensation, Nonvested shares rollforward, number of shares | |||
Nonvested stock units, beginning of period - Number of shares (in shares) | 350,000 | ||
Granted number of shares (in shares) | 229,000 | ||
Vested number of shares (in shares) | (99,000) | ||
Change in units based on approved performance factors (in shares) | 6,000 | ||
Forfeited number of shares (in shares) | (7,000) | ||
Accumulated dividend equivalents (in shares) | 10,000 | ||
Nonvested stock units, end of period - Number of shares (in shares) | 489,000 | 350,000 | |
Stock based compensation, Nonvested shares weighted average grant date fair value | |||
Nonvested stock units - beginning of period weighted average grant date fair value (USD per share) | $ 27.38 | ||
Granted weighted average grant date fair value (USD per share) | 30.72 | $ 25.70 | $ 27.79 |
Vested weighted average grant date fair value (USD per share) | (29.45) | ||
Change in units based on approved performance factors weighted average grant date fair value (USD per share) | 29.45 | ||
Forfeited weighted average grant date fair value (USD per share) | 30.33 | ||
Accumulated dividend equivalents, weighted average grant date fair value (USD per share) | 28.26 | ||
Nonvested stock units - end of period weighted average grant date fair value (USD per share) | $ 28.53 | $ 27.38 | |
Shares issued and granted under stock compensation plans | |||
Fair value of vested stock units | $ 4,000,000 | $ 0 | $ 0 |
Performance period | 3 years | ||
Common Shares | Deferred Compensation Stock Units | |||
Shares issued and granted under stock compensation plans | |||
Percent of match up to 50% from annual bonus | 25.00% | ||
Percent of match above 50% from annual bonus | 33.00% | ||
Award vesting period | 3 years | ||
Weighted average grant date fair value (USD per share) | $ 31.05 | $ 28.96 | $ 27.13 |
Vested number of shares, unissued | 96,000 | ||
Vested number of shares, unissued, fair value | $ 2,000,000 | ||
Common Shares | Deferred Compensation Stock Units | Maximum | |||
Shares issued and granted under stock compensation plans | |||
Fair value of vested stock units | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 |
Series A Common Shares | Series A Common Share Automatic Dividend Reinvestment Plan | |||
Shares issued and granted under stock compensation plans | |||
Shares reserved | 183,000 | ||
Purchase price, percent | 95.00% |
Stock-Based Compensation - U.S.
Stock-Based Compensation - U.S. Cellular, Overview (Details) - Common Shares | 12 Months Ended |
Dec. 31, 2019shares | |
U.S. Cellular Long-Term Incentive Plans | Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining contractual term | 10 years |
Award vesting period | 3 years |
U.S. Cellular | U.S. Cellular Long-Term Incentive Plans | |
Stock-based compensation, overview | |
Shares reserved | 12,867,000 |
U.S. Cellular | Non-Employee Directors' Plan | |
Stock-based compensation, overview | |
Shares reserved | 123,000 |
Retired Employees | U.S. Cellular Long-Term Incentive Plans | Stock Options | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercisable term | 90 days |
Retired Employees | U.S. Cellular Long-Term Incentive Plans | Stock Options | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercisable term | 1 year |
Terminated Employees | U.S. Cellular Long-Term Incentive Plans | Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expiration period | 30 days |
Stock-Based Compensation - U._2
Stock-Based Compensation - U.S. Cellular, Stock option rollforward schedules (Details) - U.S. Cellular Long-Term Incentive Plans - Common Shares - Stock Options - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock compensation, stock option rollforward schedule, number of shares | |||
Outstanding, beginning of period (in shares) | 806,000 | ||
Exercisable options, beginning of period (in shares) | 420,000 | ||
Exercised options (in shares) | (339,000) | ||
Expired options (in shares) | (7,000) | ||
Outstanding, end of period (in shares) | 460,000 | 806,000 | |
Exercisable options, end of period (in shares) | 460,000 | 420,000 | |
Stock compensation, stock option rollforward schedule, other information | |||
Options outstanding, beginning of period - weighted average exercise price (USD per share) | $ 43.10 | ||
Options exercisable, beginning of period - weighted average exercise price (USD per share) | 42.39 | ||
Options exercised, weighted average exercise price (USD per share) | 44.27 | ||
Options expired, weighted average exercise price (USD per share) | 45.87 | ||
Options outstanding, end of period - weighted average exercise price (USD per share) | 42.20 | $ 43.10 | |
Options exercisable, end of period - weighted average exercise price (USD per share) | $ 42.20 | $ 42.39 | |
Aggregate intrinsic value, options outstanding | $ 0 | ||
Aggregate intrinsic value, options exercisable | $ 0 | ||
Weighted average remaining contractual life, outstanding | 4 years 10 months 24 days | ||
Weighted average remaining contractual life, exercisable | 4 years 10 months 24 days | ||
Aggregate intrinsic value, options exercised | $ 3 | $ 19 | $ 1 |
Stock-Based Compensation - U._3
Stock-Based Compensation - U.S. Cellular, Nonvested shares and other stock compensation disclosures (Details) - Common Shares - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
U.S. Cellular Long-Term Incentive Plans | Restricted Stock Units | |||
Stock based compensation, Nonvested shares rollforward, number of shares | |||
Nonvested stock units, beginning of period - Number of shares (in shares) | 1,569,000 | ||
Granted number of shares (in shares) | 478,000 | ||
Vested number of shares (in shares) | (525,000) | ||
Forfeited number of shares (in shares) | (61,000) | ||
Nonvested stock units, end of period - Number of shares (in shares) | 1,461,000 | 1,569,000 | |
Stock based compensation, Nonvested shares weighted average grant date fair value | |||
Nonvested stock units - beginning of period weighted average grant date fair value (USD per share) | $ 39.74 | ||
Granted weighted average grant date fair value (USD per share) | 46.81 | $ 38.19 | $ 38.04 |
Vested weighted average grant date fair value (USD per share) | 42.99 | ||
Forfeited weighted average grant date fair value (USD per share) | 39.38 | ||
Nonvested stock units - end of period weighted average grant date fair value (USD per share) | $ 40.90 | $ 39.74 | |
Shares issued and granted under stock compensation plans | |||
Fair value of vested stock units | $ 25,000,000 | $ 16,000,000 | $ 11,000,000 |
Award vesting period | 3 years | ||
U.S. Cellular Long-Term Incentive Plans | Performance Share Units | |||
Stock based compensation, Nonvested shares rollforward, number of shares | |||
Nonvested stock units, beginning of period - Number of shares (in shares) | 768,000 | ||
Granted number of shares (in shares) | 323,000 | ||
Vested number of shares (in shares) | (5,000) | ||
Change in units based on approved performance factors number of shares | 188,000 | ||
Forfeited number of shares (in shares) | (29,000) | ||
Nonvested stock units, end of period - Number of shares (in shares) | 1,245,000 | 768,000 | |
Stock based compensation, Nonvested shares weighted average grant date fair value | |||
Nonvested stock units - beginning of period weighted average grant date fair value (USD per share) | $ 37.78 | ||
Granted weighted average grant date fair value (USD per share) | 46.43 | $ 38.81 | $ 36.92 |
Vested weighted average grant date fair value (USD per share) | 37.92 | ||
Change in units based on approved performance factors weighted average grant date fair value (USD per share) | 38.81 | ||
Forfeited weighted average grant date fair value (USD per share) | 38.55 | ||
Nonvested stock units - end of period weighted average grant date fair value (USD per share) | $ 40.16 | $ 37.78 | |
Shares issued and granted under stock compensation plans | |||
Fair value of vested stock units | $ 0 | $ 0 | |
Award vesting period | 3 years | ||
U.S. Cellular Long-Term Incentive Plans | Performance Share Units | Minimum | |||
Shares issued and granted under stock compensation plans | |||
Performance share awards target | 50.00% | ||
U.S. Cellular Long-Term Incentive Plans | Performance Share Units | Maximum | |||
Shares issued and granted under stock compensation plans | |||
Fair value of vested stock units | $ 1,000,000 | ||
Performance share awards target | 200.00% | ||
U.S. Cellular Long-Term Incentive Plans | Share-based Payment Arrangement, Option [Member] | |||
Shares issued and granted under stock compensation plans | |||
Award vesting period | 3 years | ||
U.S. Cellular Long-Term Incentive Plans | Deferred Compensation Stock Units | |||
Stock based compensation, Nonvested shares weighted average grant date fair value | |||
Granted weighted average grant date fair value (USD per share) | $ 0 | $ 40.72 | $ 36.02 |
Shares issued and granted under stock compensation plans | |||
Percent of match up to 50% from annual bonus | 25.00% | ||
Percent of match above 50% from annual bonus | 33.00% | ||
Award vesting period | 3 years | ||
Vested number of shares, unissued | 34,000 | ||
Vested number of shares, unissued, fair value | $ 1,000,000 | ||
U.S. Cellular Long-Term Incentive Plans | Deferred Compensation Stock Units | Maximum | |||
Shares issued and granted under stock compensation plans | |||
Fair value of vested stock units | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 |
Non-Employee Directors' Plan | U.S. Cellular | |||
Shares issued and granted under stock compensation plans | |||
Shares issued | 13,000 | 18,000 | 15,000 |
Business Segment Information (D
Business Segment Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Total operating revenues | $ 5,176,000,000 | $ 5,109,000,000 | $ 5,044,000,000 |
Selling, general and administrative | 1,717,000,000 | 1,694,000,000 | 1,689,000,000 |
Depreciation, amortization and accretion | 932,000,000 | 883,000,000 | 844,000,000 |
Loss on impairment of goodwill | 0 | 0 | 262,000,000 |
(Gain) loss on asset disposals, net | 12,000,000 | 9,000,000 | 21,000,000 |
(Gain) loss on sale of business and other exit costs, net | (1,000,000) | 0 | (1,000,000) |
(Gain) loss on license sales and exchanges, net | 0 | (18,000,000) | (22,000,000) |
Operating income (loss) | 179,000,000 | 205,000,000 | (108,000,000) |
Equity in earnings of unconsolidated entities | 168,000,000 | 160,000,000 | 137,000,000 |
Interest and dividend income | 29,000,000 | 26,000,000 | 15,000,000 |
Interest expense | (165,000,000) | (172,000,000) | (170,000,000) |
Other, net | 0 | 2,000,000 | 4,000,000 |
Income (loss) before income taxes | 211,000,000 | 221,000,000 | (122,000,000) |
Income tax expense (benefit) | 64,000,000 | 46,000,000 | (279,000,000) |
Net income | 147,000,000 | 175,000,000 | 157,000,000 |
Depreciation, amortization and accretion | 932,000,000 | 883,000,000 | 844,000,000 |
Loss on impairment of goodwill | 0 | 0 | 262,000,000 |
(Gain) loss on asset disposals, net | 12,000,000 | 9,000,000 | 21,000,000 |
(Gain) loss on sale of business and other exit costs, net | (1,000,000) | 0 | (1,000,000) |
(Gain) loss on license sales and exchanges, net | 0 | (18,000,000) | (22,000,000) |
Interest expense | 165,000,000 | 172,000,000 | 170,000,000 |
Income tax expense (benefit) | 64,000,000 | 46,000,000 | (279,000,000) |
Adjusted EBITDA | 1,319,000,000 | 1,267,000,000 | 1,152,000,000 |
Investments in unconsolidated entities | 488,000,000 | 480,000,000 | 453,000,000 |
Total assets | 10,781,000,000 | 9,783,000,000 | 9,295,000,000 |
Capital expenditures | 1,032,000,000 | 767,000,000 | 694,000,000 |
U.S. Cellular | |||
Segment Reporting Information [Line Items] | |||
Loss on impairment | 227,000,000 | ||
U.S. Cellular | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 4,022,000,000 | 3,967,000,000 | 3,890,000,000 |
Selling, general and administrative | 1,406,000,000 | 1,388,000,000 | 1,412,000,000 |
Depreciation, amortization and accretion | 702,000,000 | 640,000,000 | 615,000,000 |
Loss on impairment of goodwill | 370,000,000 | ||
(Gain) loss on asset disposals, net | 19,000,000 | 10,000,000 | 17,000,000 |
(Gain) loss on sale of business and other exit costs, net | (1,000,000) | (1,000,000) | |
(Gain) loss on license sales and exchanges, net | (18,000,000) | (22,000,000) | |
Operating income (loss) | 112,000,000 | 158,000,000 | (304,000,000) |
Equity in earnings of unconsolidated entities | 166,000,000 | 159,000,000 | 137,000,000 |
Interest and dividend income | 17,000,000 | 15,000,000 | 8,000,000 |
Interest expense | (110,000,000) | (116,000,000) | (113,000,000) |
Other, net | (1,000,000) | 0 | |
Income (loss) before income taxes | 185,000,000 | 215,000,000 | (272,000,000) |
Income tax expense (benefit) | 52,000,000 | 51,000,000 | (287,000,000) |
Net income | 133,000,000 | 164,000,000 | 15,000,000 |
Depreciation, amortization and accretion | 702,000,000 | 640,000,000 | 615,000,000 |
Loss on impairment of goodwill | 370,000,000 | ||
(Gain) loss on asset disposals, net | 19,000,000 | 10,000,000 | 17,000,000 |
(Gain) loss on sale of business and other exit costs, net | (1,000,000) | (1,000,000) | |
(Gain) loss on license sales and exchanges, net | (18,000,000) | (22,000,000) | |
Interest expense | 110,000,000 | 116,000,000 | 113,000,000 |
Income tax expense (benefit) | 52,000,000 | 51,000,000 | (287,000,000) |
Adjusted EBITDA | 1,015,000,000 | 963,000,000 | 820,000,000 |
Investments in unconsolidated entities | 447,000,000 | 441,000,000 | 415,000,000 |
Total assets | 8,164,000,000 | 7,274,000,000 | 6,841,000,000 |
Capital expenditures | 710,000,000 | 515,000,000 | 469,000,000 |
Loss on impairment | 227,000,000 | ||
TDS Telecom | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 930,000,000 | 927,000,000 | 919,000,000 |
Selling, general and administrative | 260,000,000 | 254,000,000 | 248,000,000 |
Depreciation, amortization and accretion | 200,000,000 | 212,000,000 | 195,000,000 |
Loss on impairment of goodwill | 0 | ||
(Gain) loss on asset disposals, net | (7,000,000) | (2,000,000) | 3,000,000 |
(Gain) loss on sale of business and other exit costs, net | 0 | 0 | |
(Gain) loss on license sales and exchanges, net | 0 | 0 | |
Operating income (loss) | 107,000,000 | 93,000,000 | 116,000,000 |
Equity in earnings of unconsolidated entities | 0 | 0 | 0 |
Interest and dividend income | 12,000,000 | 8,000,000 | 5,000,000 |
Interest expense | 3,000,000 | 2,000,000 | 0 |
Other, net | 2,000,000 | 3,000,000 | |
Income (loss) before income taxes | 122,000,000 | 105,000,000 | 125,000,000 |
Income tax expense (benefit) | 30,000,000 | 16,000,000 | (13,000,000) |
Net income | 92,000,000 | 89,000,000 | 138,000,000 |
Depreciation, amortization and accretion | 200,000,000 | 212,000,000 | 195,000,000 |
Loss on impairment of goodwill | 0 | ||
(Gain) loss on asset disposals, net | (7,000,000) | (2,000,000) | 3,000,000 |
(Gain) loss on sale of business and other exit costs, net | 0 | 0 | |
(Gain) loss on license sales and exchanges, net | 0 | 0 | |
Interest expense | (3,000,000) | (2,000,000) | 0 |
Income tax expense (benefit) | 30,000,000 | 16,000,000 | (13,000,000) |
Adjusted EBITDA | 313,000,000 | 313,000,000 | 323,000,000 |
Investments in unconsolidated entities | 4,000,000 | 4,000,000 | 4,000,000 |
Total assets | 2,196,000,000 | 1,934,000,000 | 1,897,000,000 |
Capital expenditures | 316,000,000 | 232,000,000 | 201,000,000 |
TDS Telecom Wireline | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 683,000,000 | 699,000,000 | 714,000,000 |
Selling, general and administrative | 199,000,000 | 197,000,000 | 194,000,000 |
Depreciation, amortization and accretion | 132,000,000 | 142,000,000 | 151,000,000 |
Loss on impairment of goodwill | 0 | 0 | 0 |
(Gain) loss on asset disposals, net | (8,000,000) | (3,000,000) | 1,000,000 |
(Gain) loss on sale of business and other exit costs, net | 0 | 0 | |
(Gain) loss on license sales and exchanges, net | 0 | 0 | |
Operating income (loss) | 96,000,000 | 95,000,000 | 108,000,000 |
Equity in earnings of unconsolidated entities | 0 | 0 | 0 |
Interest and dividend income | 10,000,000 | 7,000,000 | 5,000,000 |
Interest expense | 3,000,000 | 2,000,000 | 0 |
Other, net | 3,000,000 | 3,000,000 | |
Income (loss) before income taxes | 110,000,000 | 106,000,000 | 117,000,000 |
Depreciation, amortization and accretion | 132,000,000 | 142,000,000 | 151,000,000 |
Loss on impairment of goodwill | 0 | 0 | 0 |
(Gain) loss on asset disposals, net | (8,000,000) | (3,000,000) | 1,000,000 |
(Gain) loss on sale of business and other exit costs, net | 0 | 0 | |
(Gain) loss on license sales and exchanges, net | 0 | 0 | |
Interest expense | (3,000,000) | (2,000,000) | 0 |
Adjusted EBITDA | 231,000,000 | 243,000,000 | 269,000,000 |
Investments in unconsolidated entities | 4,000,000 | 4,000,000 | 4,000,000 |
Total assets | 1,471,000,000 | 1,304,000,000 | 1,260,000,000 |
Capital expenditures | 243,000,000 | 176,000,000 | 146,000,000 |
TDS Telecom Cable | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 247,000,000 | 230,000,000 | 206,000,000 |
Selling, general and administrative | 62,000,000 | 57,000,000 | 54,000,000 |
Depreciation, amortization and accretion | 68,000,000 | 69,000,000 | 44,000,000 |
Loss on impairment of goodwill | 0 | 0 | 0 |
(Gain) loss on asset disposals, net | 1,000,000 | 1,000,000 | 2,000,000 |
(Gain) loss on sale of business and other exit costs, net | 0 | 0 | |
(Gain) loss on license sales and exchanges, net | 0 | 0 | |
Operating income (loss) | 11,000,000 | (2,000,000) | 8,000,000 |
Equity in earnings of unconsolidated entities | 0 | 0 | 0 |
Interest and dividend income | 2,000,000 | 1,000,000 | 0 |
Interest expense | 0 | 0 | 0 |
Other, net | 0 | 0 | |
Income (loss) before income taxes | 13,000,000 | (1,000,000) | 8,000,000 |
Depreciation, amortization and accretion | 68,000,000 | 69,000,000 | 44,000,000 |
Loss on impairment of goodwill | 0 | 0 | 0 |
(Gain) loss on asset disposals, net | 1,000,000 | 1,000,000 | 2,000,000 |
(Gain) loss on sale of business and other exit costs, net | 0 | 0 | |
(Gain) loss on license sales and exchanges, net | 0 | 0 | |
Interest expense | 0 | 0 | 0 |
Adjusted EBITDA | 82,000,000 | 70,000,000 | 54,000,000 |
Investments in unconsolidated entities | 0 | 0 | 0 |
Total assets | 734,000,000 | 639,000,000 | 644,000,000 |
Capital expenditures | 73,000,000 | 56,000,000 | 55,000,000 |
Corporate, Eliminations and Other | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 224,000,000 | 215,000,000 | 235,000,000 |
Selling, general and administrative | 51,000,000 | 52,000,000 | 29,000,000 |
Depreciation, amortization and accretion | 30,000,000 | 31,000,000 | 34,000,000 |
Loss on impairment of goodwill | (108,000,000) | ||
(Gain) loss on asset disposals, net | 0 | 1,000,000 | 1,000,000 |
(Gain) loss on sale of business and other exit costs, net | 0 | 0 | |
(Gain) loss on license sales and exchanges, net | 0 | 0 | |
Operating income (loss) | (40,000,000) | (46,000,000) | 80,000,000 |
Equity in earnings of unconsolidated entities | 2,000,000 | 1,000,000 | 0 |
Interest and dividend income | 0 | 3,000,000 | 2,000,000 |
Interest expense | (58,000,000) | (58,000,000) | (57,000,000) |
Other, net | 1,000,000 | 1,000,000 | |
Income (loss) before income taxes | (96,000,000) | (99,000,000) | 25,000,000 |
Income tax expense (benefit) | (18,000,000) | (21,000,000) | 21,000,000 |
Net income | (78,000,000) | (78,000,000) | 4,000,000 |
Depreciation, amortization and accretion | 30,000,000 | 31,000,000 | 34,000,000 |
Loss on impairment of goodwill | (108,000,000) | ||
(Gain) loss on asset disposals, net | 0 | 1,000,000 | 1,000,000 |
(Gain) loss on sale of business and other exit costs, net | 0 | 0 | |
(Gain) loss on license sales and exchanges, net | 0 | 0 | |
Interest expense | 58,000,000 | 58,000,000 | 57,000,000 |
Income tax expense (benefit) | (18,000,000) | (21,000,000) | 21,000,000 |
Adjusted EBITDA | (9,000,000) | (9,000,000) | 9,000,000 |
Investments in unconsolidated entities | 37,000,000 | 35,000,000 | 34,000,000 |
Total assets | 421,000,000 | 575,000,000 | 557,000,000 |
Capital expenditures | 6,000,000 | 20,000,000 | 24,000,000 |
Loss on impairment | 143,000,000 | ||
HMS | |||
Segment Reporting Information [Line Items] | |||
Loss on impairment | 35,000,000 | ||
Service | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 4,059,000,000 | 3,999,000,000 | 3,979,000,000 |
Cost of goods and services sold | 1,202,000,000 | 1,206,000,000 | 1,164,000,000 |
Service | U.S. Cellular | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 3,035,000,000 | 2,978,000,000 | 2,978,000,000 |
Cost of goods and services sold | 756,000,000 | 758,000,000 | 732,000,000 |
Service | TDS Telecom | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 928,000,000 | 925,000,000 | 917,000,000 |
Cost of goods and services sold | 368,000,000 | 369,000,000 | 355,000,000 |
Service | TDS Telecom Wireline | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 682,000,000 | 697,000,000 | 713,000,000 |
Cost of goods and services sold | 263,000,000 | 266,000,000 | 258,000,000 |
Service | TDS Telecom Cable | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 247,000,000 | 230,000,000 | 206,000,000 |
Cost of goods and services sold | 105,000,000 | 104,000,000 | 98,000,000 |
Service | Corporate, Eliminations and Other | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 96,000,000 | 96,000,000 | 84,000,000 |
Cost of goods and services sold | 78,000,000 | 79,000,000 | 77,000,000 |
Equipment and product sales | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 1,117,000,000 | 1,110,000,000 | 1,065,000,000 |
Cost of goods and services sold | 1,135,000,000 | 1,130,000,000 | 1,195,000,000 |
Equipment and product sales | U.S. Cellular | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 987,000,000 | 989,000,000 | 912,000,000 |
Cost of goods and services sold | 1,028,000,000 | 1,031,000,000 | 1,071,000,000 |
Equipment and product sales | TDS Telecom | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 1,000,000 | 2,000,000 | 1,000,000 |
Cost of goods and services sold | 1,000,000 | 1,000,000 | 2,000,000 |
Equipment and product sales | TDS Telecom Wireline | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 1,000,000 | 2,000,000 | 1,000,000 |
Cost of goods and services sold | 1,000,000 | 1,000,000 | 2,000,000 |
Equipment and product sales | TDS Telecom Cable | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 0 | 0 | 0 |
Cost of goods and services sold | 0 | 0 | 0 |
Equipment and product sales | Corporate, Eliminations and Other | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 129,000,000 | 119,000,000 | 152,000,000 |
Cost of goods and services sold | $ 106,000,000 | $ 98,000,000 | $ 122,000,000 |
Supplemental Cash Flow Disclo_3
Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Cash Flow [Line Items] | |||
Interest paid | $ 162 | $ 168 | $ 167 |
Income taxes paid, net of refunds received | 44 | 40 | 56 |
Supplemental cash flows, stock based compensation | |||
Net cash receipts (disbursements) from exercise of stock options and vesting of other stock awards | (6) | 42 | 4 |
TDS Parent Company | |||
Supplemental cash flows, stock based compensation | |||
Cash receipts upon exercise of stock options | 2 | 48 | 7 |
Cash disbursements for payment of taxes | (8) | (6) | (3) |
Net cash receipts (disbursements) from exercise of stock options and vesting of other stock awards | (6) | 42 | 4 |
U.S. Cellular | |||
Supplemental cash flows, stock based compensation | |||
Cash receipts upon exercise of stock options | 1 | 29 | 5 |
Cash disbursements for payment of taxes | (10) | (11) | (4) |
Net cash receipts (disbursements) from exercise of stock options and vesting of other stock awards | $ (9) | $ 18 | $ 1 |
Common Shares | TDS Parent Company | |||
Supplemental cash flows, stock based compensation | |||
Common Shares withheld (in shares) | 814,000 | 676,000 | 121,000 |
Aggregate value of Common Shares withheld | $ 29 | $ 21 | $ 3 |
U.S. Cellular Common Shares | U.S. Cellular | |||
Supplemental cash flows, stock based compensation | |||
Common Shares withheld (in shares) | 452,000 | 1,550,000 | 145,000 |
Aggregate value of Common Shares withheld | $ 23 | $ 73 | $ 6 |
Certain Relationships and Rel_2
Certain Relationships and Related Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Sidley Austin LLP | |||
Related Party Transaction [Line Items] | |||
Legal expense | $ 10 | $ 10 | $ 11 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent event - TDS Term Loan Facility - USD ($) $ in Millions | Feb. 25, 2020 | Jan. 06, 2020 |
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 200 | |
Amounts borrowed | $ 0 |