Document and Entity Information
Document and Entity Information - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Jan. 31, 2022 | Jun. 30, 2021 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
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 | 2021 | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Common Shares | |||
Title of 12(b) Security | Common Shares, $.01 par value | ||
Trading Symbol | TDS | ||
Security Exchange Name | NYSE | ||
Entity Public Float | $ 2,000 | ||
Share Price | $ 22.66 | ||
Entity Common Stock, Shares Outstanding | 107,255,500 | ||
Depository Shares each representing a 1/1000th interest in a share of 6.625% Series UU Cumulative Redeemable Perpetual Preferred Stock $.01 par value | |||
Title of 12(b) Security | Depository Shares each representing a 1/1000th interest in a share of 6.625% Series UU Cumulative Redeemable Perpetual Preferred Stock $.01 par value | ||
Trading Symbol | TDSPrU | ||
Security Exchange Name | NYSE | ||
Depository Shares each representing a 1/1000th interest in a share of 6.000% Series VV Cumulative Redeemable Perpetual Preferred Stock $.01 par value | |||
Title of 12(b) Security | Depository Shares each representing a 1/1000th interest in a share of 6.000% Series VV Cumulative Redeemable Perpetual Preferred Stock $.01 par value | ||
Trading Symbol | TDSPrV | ||
Security Exchange Name | NYSE | ||
Series A Common Shares | |||
Entity Common Stock, Shares Outstanding | 7,331,100 | ||
Series A Common Shares | Maximum | |||
Entity Public Float | $ 1 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Chicago, Illinois |
Consolidated Statement Of Opera
Consolidated Statement Of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating revenues | |||
Total operating revenues | $ 5,329 | $ 5,225 | $ 5,176 |
Operating expenses | |||
Selling, general and administrative | 1,677 | 1,681 | 1,717 |
Depreciation, amortization and accretion | 895 | 909 | 932 |
(Gain) loss on asset disposals, net | 26 | 27 | 12 |
(Gain) loss on sale of business and other exit costs, net | (2) | 0 | (1) |
(Gain) loss on license sales and exchanges, net | 0 | (5) | 0 |
Total operating expenses | 5,068 | 4,966 | 4,997 |
Operating income | 261 | 259 | 179 |
Investment and other income (expense) | |||
Equity in earnings of unconsolidated entities | 182 | 181 | 168 |
Interest and dividend income | 11 | 15 | 29 |
Gain (loss) on investments | 0 | 2 | 0 |
Interest expense | (232) | (168) | (165) |
Other, net | (1) | (1) | 0 |
Total investment and other income (expense) | (40) | 29 | 32 |
Income before income taxes | 221 | 288 | 211 |
Income tax expense | 33 | 19 | 64 |
Net income | 188 | 269 | 147 |
Less: Net income attributable to noncontrolling interests, net of tax | 32 | 43 | 26 |
Net income attributable to TDS shareholders | 156 | 226 | 121 |
TDS Preferred Share dividends | 39 | 0 | 0 |
Net income attributable to TDS common shareholders | $ 117 | $ 226 | $ 121 |
Basic weighted average shares outstanding (in shares) | 115 | 114 | 114 |
Basic earnings per share attributable to TDS common shareholders | $ 1.03 | $ 1.97 | $ 1.06 |
Diluted weighted average shares outstanding (in shares) | 116 | 115 | 116 |
Diluted earnings per share attributable to TDS common shareholders | $ 1 | $ 1.93 | $ 1.03 |
Service | |||
Operating revenues | |||
Total operating revenues | $ 4,216 | $ 4,136 | $ 4,059 |
Operating expenses | |||
Cost of goods and services sold | 1,267 | 1,244 | 1,202 |
Equipment and product sales | |||
Operating revenues | |||
Total operating revenues | 1,113 | 1,089 | 1,117 |
Operating expenses | |||
Cost of goods and services sold | $ 1,205 | $ 1,110 | $ 1,135 |
Consolidated Statement Of Compr
Consolidated Statement Of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 188 | $ 269 | $ 147 |
Change related to retirement plan | |||
Net actuarial gains | 9 | 3 | 1 |
Amortization of prior service cost | 4 | 3 | 1 |
Amounts included in net periodic benefit cost for the period | 13 | 6 | 2 |
Change in deferred income taxes | (4) | (1) | (1) |
Change related to retirement plan, net of tax | 9 | 5 | 1 |
Net change in accumulated other comprehensive income | 9 | 5 | 1 |
Comprehensive income | 197 | 274 | 148 |
Less: Net income attributable to noncontrolling interests, net of tax | 32 | 43 | 26 |
Comprehensive income attributable to TDS shareholders | $ 165 | $ 231 | $ 122 |
Consolidated Statement Of Cash
Consolidated Statement Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net income | $ 188 | $ 269 | $ 147 |
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities | |||
Depreciation, amortization and accretion | 895 | 909 | 932 |
Bad debts expense | 60 | 77 | 112 |
Stock-based compensation expense | 49 | 53 | 59 |
Deferred income taxes, net | 52 | 190 | 34 |
Equity in earnings of unconsolidated entities | (182) | (181) | (168) |
Distributions from unconsolidated entities | 180 | 189 | 162 |
(Gain) loss on asset disposals, net | 26 | 27 | 12 |
(Gain) loss on sale of business and other exit costs, net | (2) | 0 | (1) |
(Gain) loss on license sales and exchanges, net | 0 | (5) | 0 |
(Gain) loss on investments | 0 | (2) | 0 |
Other operating activities | 61 | 3 | 4 |
Changes in assets and liabilities from operations | |||
Accounts receivable | (22) | (16) | (49) |
Equipment installment plans receivable | (116) | (54) | (97) |
Inventory | (25) | 12 | (19) |
Accounts payable | (69) | 173 | (60) |
Customer deposits and deferred revenues | 43 | 4 | (9) |
Accrued taxes | (49) | (120) | (17) |
Other assets and liabilities | 14 | 4 | (26) |
Net cash provided by operating activities | 1,103 | 1,532 | 1,016 |
Cash flows from investing activities | |||
Cash paid for additions to property, plant and equipment | (1,131) | (1,338) | (957) |
Cash paid for acquisitions, licenses and other intangible assets | (1,308) | (172) | (346) |
Cash received from investments | 3 | 1 | 29 |
Cash paid for investments | 0 | (3) | (11) |
Cash received from divestitures and exchanges | 3 | 26 | 41 |
Advance payments for license acquisitions | (20) | (30) | (5) |
Other investing activities | (9) | 5 | 0 |
Net cash used in investing activities | (2,462) | (1,511) | (1,249) |
Cash flows from financing activities | |||
Issuance of long-term debt | 1,543 | 1,250 | 0 |
Repayment of long-term debt | (2,081) | (110) | (118) |
Issuance of TDS Preferred Shares | 1,110 | 0 | 0 |
TDS Common Shares reissued for benefit plans, net of tax payments | (5) | (3) | (6) |
UScellular Common Shares reissued for benefit plans, net of tax payments | (16) | (11) | (9) |
Repurchase of TDS Common Shares | (8) | (14) | 0 |
Repurchase of UScellular Common Shares | (31) | (23) | (21) |
Dividends paid to TDS shareholders | (119) | (78) | (75) |
Payment of debt and equity issuance costs | (62) | (41) | (1) |
Distributions to noncontrolling interests | (3) | (2) | (4) |
Payments to acquire additional interest in subsidiaries | 0 | (11) | 0 |
Other financing activities | (7) | 0 | 14 |
Net cash provided by (used in) financing activities | 321 | 957 | (220) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (1,038) | 978 | (453) |
Cash, cash equivalents and restricted cash | |||
Beginning of period | 1,452 | 474 | 927 |
End of period | $ 414 | $ 1,452 | $ 474 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Current assets | |||
Cash and cash equivalents | $ 367 | $ 1,429 | |
Short-term investments | 0 | 3 | |
Accounts receivable | |||
Customers and agents, less allowances of $60 and $67, respectively | 1,058 | 1,004 | |
Other, less allowances of $2 and $2, respectively | 93 | 108 | |
Inventory, net | 178 | 154 | |
Prepaid expenses | 103 | 105 | |
Income taxes receivable | 184 | 187 | |
Other current assets | 61 | 36 | |
Total current assets | 2,044 | 3,026 | |
Assets held for sale | 18 | 2 | |
Licenses | 4,097 | 2,638 | |
Goodwill | 547 | 547 | |
Other intangible assets, net of accumulated amortization of $91 and $71, respectively | 197 | 213 | |
Investments in unconsolidated entities | 479 | 477 | |
Property, plant and equipment | |||
In service and under construction | 14,265 | 13,659 | |
Less: Accumulated depreciation and amortization | 9,904 | 9,687 | |
Property, plant and equipment, net | 4,361 | 3,972 | |
Operating lease right-of-use assets | 1,040 | 998 | |
Other assets and deferred charges | 710 | 652 | |
Total assets | [1] | 13,493 | 12,525 |
Current liabilities | |||
Current portion of long-term debt | 6 | 5 | |
Accounts payable | 481 | 508 | |
Customer deposits and deferred revenues | 236 | 193 | |
Accrued interest | 10 | 16 | |
Accrued taxes | 45 | 69 | |
Accrued compensation | 137 | 132 | |
Short-term operating lease liabilities | 141 | 129 | |
Other current liabilities | 124 | 101 | |
Total current liabilities | 1,180 | 1,153 | |
Liabilities held for sale | 0 | 1 | |
Deferred liabilities and credits | |||
Deferred income tax liability, net | 921 | 863 | |
Long-term operating lease liabilities | 960 | 940 | |
Other deferred liabilities and credits | 759 | 541 | |
Long-term debt, net | 2,928 | 3,424 | |
Commitments and contingencies | |||
Noncontrolling interests with redemption features | 11 | 10 | |
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 ($0.01 per share) | 1 | 1 | |
Capital in excess of par value | 2,496 | 2,482 | |
Preferred Shares, .279 shares authorized, par value $0.01 per share, .0444 shares outstanding (.0168 Series UU and .0276 Series VV) | 1,074 | 0 | |
Treasury shares, at cost, 18 and 19 Common Shares, respectively | (461) | (477) | |
Accumulated other comprehensive income (loss) | 5 | (4) | |
Retained earnings | 2,812 | 2,802 | |
Total TDS shareholders’ equity | 5,927 | 4,804 | |
Noncontrolling interests | 807 | 789 | |
Total equity | 6,734 | 5,593 | |
Total liabilities and equity | [1] | $ 13,493 | $ 12,525 |
[1] | The consolidated total assets as of December 31, 2021 and 2020, include assets held by consolidated variable interest entities (VIEs) of $1,456 million and $1,042 million, respectively, which are not available to be used to settle the obligations of TDS. The consolidated total liabilities as of December 31, 2021 and 2020, include certain liabilities of consolidated VIEs of $21 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of TDS. See Note 15 — Variable Interest Entities for additional information. |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Current assets | |||
Customer and agent allowances | $ 60 | $ 67 | |
Other allowances | 2 | 2 | |
Investments | |||
Other intangible assets accumulated amortization | $ 91 | $ 71 | |
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 | |
Preferred shares authorized | 279,000 | ||
Par value per share (in dollars per share) | $ 0.01 | ||
Outstanding shares (in shares) | 44,400 | ||
Variable Interest Entities VIEs | |||
Assets | [1] | $ 13,493 | $ 12,525 |
Consolidated Variable Interest Entities | |||
Variable Interest Entities VIEs | |||
Assets | 1,929 | 1,803 | |
Liabilities | 88 | 79 | |
Consolidated Variable Interest Entities | Assets held | |||
Variable Interest Entities VIEs | |||
Assets | 1,456 | 1,042 | |
Consolidated Variable Interest Entities | No recourse | |||
Variable Interest Entities VIEs | |||
Liabilities | $ 21 | $ 18 | |
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 | |
Series VV Preferred Shares | |||
TDS shareholders’ equity | |||
Outstanding shares (in shares) | 27,600 | ||
Series UU Preferred Shares | |||
TDS shareholders’ equity | |||
Outstanding shares (in shares) | 16,800 | ||
[1] | The consolidated total assets as of December 31, 2021 and 2020, include assets held by consolidated variable interest entities (VIEs) of $1,456 million and $1,042 million, respectively, which are not available to be used to settle the obligations of TDS. The consolidated total liabilities as of December 31, 2021 and 2020, include certain liabilities of consolidated VIEs of $21 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of TDS. See Note 15 — Variable Interest Entities for additional information. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Millions | Total | Series A Common and Common shares | Capital in excess of par value | Preferred Shares | Treasury shares | Accumulated other comprehensive income (loss) | Retained earnings | Total TDS shareholders' equity | Noncontrolling interests |
Retained earnings | ASC 842 | $ 2 | $ 2 | $ 2 | ||||||
Beginning balance at Dec. 31, 2018 | 5,293 | $ 1 | $ 2,432 | $ (519) | $ (10) | 2,656 | 4,560 | $ 733 | |
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 | 12 | 18 | 20 | (26) | 12 | ||||
Adjust investment in subsidiaries for repurchases, issuances and other compensation plans | 12 | 17 | 17 | (5) | |||||
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 | |
Retained earnings | ASC 326 | (2) | (2) | (2) | ||||||
Net income attributable to TDS shareholders | 226 | 226 | 226 | ||||||
Net income attributable to noncontrolling interests classified as equity | 43 | 0 | 43 | ||||||
Other comprehensive income (loss) | 5 | 5 | 5 | ||||||
TDS Common and Series A Common Share dividends | (78) | (78) | (78) | ||||||
Repurchase of Common Shares | (14) | (14) | (14) | ||||||
Dividend reinvestment plan | 3 | 3 | 3 | ||||||
Incentive and compensation plans | 18 | 21 | 13 | (16) | 18 | ||||
Adjust investment in subsidiaries for repurchases, issuances and other compensation plans | (10) | (7) | (7) | (3) | |||||
Distributions to noncontrolling interests | (2) | 0 | (2) | ||||||
Ending balance at Dec. 31, 2020 | 5,593 | 1 | 2,482 | $ 0 | (477) | (4) | 2,802 | 4,804 | 789 |
Retained earnings | 2,802 | ||||||||
Net income attributable to TDS shareholders | 156 | 156 | 156 | ||||||
Net income attributable to noncontrolling interests classified as equity | 32 | 0 | 32 | ||||||
Other comprehensive income (loss) | 9 | 9 | 9 | ||||||
TDS Common and Series A Common Share dividends | (80) | (80) | (80) | ||||||
Issuance of TDS Preferred Shares, net of costs | 1,074 | 1,074 | 1,074 | ||||||
TDS Preferred share dividends | (39) | (39) | (39) | ||||||
Repurchase of Common Shares | (8) | (8) | (8) | ||||||
Dividend reinvestment plan | 2 | 3 | (1) | 2 | |||||
Incentive and compensation plans | 17 | 22 | 21 | (26) | 17 | ||||
Adjust investment in subsidiaries for repurchases, issuances and other compensation plans | (19) | (8) | (8) | (11) | |||||
Distributions to noncontrolling interests | (3) | 0 | (3) | ||||||
Ending balance at Dec. 31, 2021 | 6,734 | $ 1 | $ 2,496 | $ 1,074 | $ (461) | $ 5 | $ 2,812 | $ 5,927 | $ 807 |
Retained earnings | $ 2,812 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
TDS Common and Series A Common Share dividends (in dollars per share) | $ 0.7 | $ 0.68 | $ 0.66 |
Series UU Preferred Shares | |||
TDS Preferred share dividends (in dollars per share) | 1,380 | ||
Series VV Preferred Shares | |||
TDS Preferred share dividends (in dollars per share) | $ 558 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 Summary of Significant Accounting Policies Nature of Operations Telephone and Data Systems, Inc. (TDS) is a diversified telecommunications company providing high-quality communications services to customers with 5.0 million wireless connections and 1.2 million wireline and cable connections at December 31, 2021. TDS conducts all of its wireless operations through its 82%-owned subsidiary, United States Cellular Corporation (UScellular). TDS provides broadband, video and voice services through its wholly-owned subsidiaries, TDS Telecommunications LLC and TDS Broadband LLC (collectively, TDS Telecom). TDS has the following reportable segments: UScellular and TDS Telecom. 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 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 19 — Business Segment Information for summary financial information on each business segment. Change in Reportable Segments During the first quarter of 2021, TDS modified its reporting segment structure to combine its Wireline and Cable segments into a single reportable segment for TDS Telecom. TDS Telecom believes this presentation better articulates its progress and performance against its strategy, which includes a focus on overall broadband growth and future fiber deployment across its markets. This change also reflects TDS Telecom's progress in aligning its organizational, operational and support structures to leverage one cost base to better support its customers across all of its markets. Prior periods have been updated to conform to this revised presentation. See Note 19 — Business Segment Information for additional information on TDS' reportable segments. 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 UScellular 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 15 — Variable Interest Entities for additional information relating to TDS’ VIEs. 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. Restricted cash primarily consists of balances required under the receivables securitization agreement. See Note 12 — Debt for additional information related to the receivables securitization agreement. 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, 2021 2020 (Dollars in millions) Cash and cash equivalents $ 367 $ 1,429 Restricted cash included in Other current assets 47 23 Cash, cash equivalents and restricted cash in the statement of cash flows $ 414 $ 1,452 Accounts Receivable and Allowance for Credit Losses UScellular’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 and third-party distributors for sales of equipment to them and by other wireless carriers whose customers have used UScellular’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 and data traffic, which TDS Telecom carries on its network. TDS estimates expected credit losses related to accounts receivable balances based on a review of available and relevant information including current economic conditions, projected economic conditions, historical loss experience, account aging, and other factors that could affect collectability. Expected credit losses are determined for each pool of accounts receivable balances that share similar risk characteristics. The allowance for credit losses is the best estimate of the amount of expected credit losses related to existing accounts receivable. 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. Cloud-Hosted Arrangements TDS' cloud-hosted arrangements that are service contracts consist primarily of software used to perform administrative functions. Implementation costs related to TDS' cloud-hosted arrangements, which are recorded in Prepaid expenses and Other assets and deferred charges in the Consolidated Balance Sheet, were as follows: December 31, 2021 2020 (Dollars in millions) Implementation costs, gross $ 87 $ 69 Accumulated amortization (30) (13) Implementation costs, net $ 57 $ 56 These costs are amortized over the period of the service contract, which is generally three Licenses Licenses consist of direct and incremental costs incurred in acquiring Federal Communications Commission (FCC) wireless spectrum licenses that generally provide UScellular 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 UScellular 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 UScellular 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, UScellular 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 units of accounting for geographic non-operating market wireless spectrum licenses (unbuilt wireless spectrum licenses). UScellular performed a qualitative impairment assessment to determine whether the wireless spectrum licenses were impaired. In 2021 and 2020, UScellular considered several qualitative factors, including analyst estimates of wireless spectrum license values which contemplated recent spectrum auction results, recent UScellular and other market participant transactions and other industry and market factors. Based on these assessments, UScellular concluded that it was more likely than not that the fair value of the wireless spectrum licenses in each unit of accounting exceeded their respective carrying values. Therefore, no quantitative impairment evaluation was completed. See Note 7 — Intangible Assets for additional details related to wireless spectrum licenses. Goodwill TDS has Goodwill as a result of past business acquisitions. 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 test, TDS Telecom has one reporting unit. TDS Telecom performed a qualitative impairment assessment in 2021 and a quantitative assessment consisting of a discounted cash flow approach and the guideline public company method in 2020. Based on the annual impairment assessments performed, TDS Telecom did not have an impairment of its Goodwill in 2021 or 2020. See Note 7 — 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. 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. Franchise rights are included in Other intangible assets in the Consolidated Balance Sheet. See Note 7 — 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 TDS Telecom 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 a fixed 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 TDS Telecom 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 2021, 2020 or 2019. However, in 2021, 2020 and 2019, depreciation for certain specific assets was accelerated due to changes in technology. See Note 9 — 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. UScellular and TDS Telecom each have one asset group 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 10 — Leases for additional details related to 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 as an adjustment to the beginning balance of retained earnings. The cumulative effect of applying the provisions of ASC 842 had no material impact on retained earnings. Agent Liabilities UScellular has relationships with agents, which are independent businesses that obtain customers for UScellular. At December 31, 2021 and 2020, UScellular had accrued $51 million and $55 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 UScellular's revolving credit agreements and UScellular'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 11 — 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 $203 million, $213 million and $227 million in 2021, 2020 and 2019, 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. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 2 Revenue Recognition 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 UScellular 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. UScellular also sells wireless devices to agents and other third-party distributors for resale. UScellular frequently discounts wireless devices sold to new and current customers. UScellular 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 UScellular. UScellular 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 UScellular receives roaming revenues when other wireless carriers’ customers use UScellular’s wireless systems. UScellular 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 UScellular is entitled to receive for such period, as determined and approved in connection with UScellular’s designation as an ETC in various states. Wireless tower rents UScellular receives tower rental revenues when another carrier leases tower space on a UScellular owned tower. UScellular recognizes revenue in Service revenues in the period during which the services are provided. Wireline and cable services Wireline and cable services include broadband, video and voice services. Revenue is recognized in Service revenues as service is provided to the customer. Wireline and cable services are generally billed and paid in advance on a monthly basis. 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. 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 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. 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 revenue allocation. TDS has made judgments regarding transaction price, including but not limited to issues relating to variable consideration, time value of money, returns and non-cash consideration. 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 UScellular 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. 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, UScellular may offer certain promotions to incentivize customers to switch to, or to purchase additional services from, UScellular. 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. UScellular 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 $95 million, $82 million and $78 million for 2021, 2020 and 2019, 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 and product sales are point in time. Year Ended December 31, 2021 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Revenues from contracts with customers: Type of service: Retail service 1 $ 2,765 $ — $ — $ 2,765 Inbound roaming 110 — — 110 Residential — 641 — 641 Commercial — 183 — 183 Wholesale — 178 — 178 Other service 157 — 73 230 Service revenues from contracts with customers 3,032 1,002 73 4,107 Equipment and product sales 1,007 1 105 1,113 Total revenues from contracts with customers 2 $ 4,039 $ 1,003 $ 178 $ 5,220 Year Ended December 31, 2020 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Revenues from contracts with customers: Type of service: Retail service $ 2,686 $ — $ — $ 2,686 Inbound roaming 152 — — 152 Residential — 594 — 594 Commercial — 194 — 194 Wholesale — 184 — 184 Other service 152 — 69 221 Service revenues from contracts with customers 2,990 972 69 4,031 Equipment and product sales 970 1 118 1,089 Total revenues from contracts with customers 2 $ 3,960 $ 973 $ 187 $ 5,120 Year Ended December 31, 2019 UScellular TDS Telecom 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 — 533 — 533 Commercial — 205 — 205 Wholesale — 188 — 188 Other service 137 — 72 209 Service revenues from contracts with customers 2,961 926 72 3,959 Equipment and product sales 987 1 129 1,117 Total revenues from contracts with customers 2 $ 3,948 $ 927 $ 201 $ 5,076 Numbers may not foot due to rounding. 1 During the third quarter of 2021, UScellular recorded a $9 million out-of-period error related to the timing of recognition of regulatory fee billings. This adjustment had the impact of increasing Service revenue by $9 million in 2021. UScellular determined that this adjustment was not material to any of the periods impacted. 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 records such amounts as receivables, and then bills the customer under the terms of the respective contract. 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, 2021 2020 (Dollars in millions) Contract assets $ 10 $ 13 Contract liabilities $ 289 $ 216 Revenue recognized related to contract liabilities existing at January 1, 2021 was $172 million for the year ended December 31, 2021. 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, 2021, 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) 2022 $ 400 2023 174 Thereafter 120 Total $ 694 Contract Cost Assets TDS expects that commission fees paid as a result of obtaining contracts are recoverable and therefore TDS defers and amortizes these costs. As a practical expedient, costs with an amortization period of one year or less are expensed as incurred. TDS also incurs fulfillment costs, such as installation costs, where there is an expectation that a future benefit will be realized. Deferred 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, 2021 2020 (Dollars in millions) Costs to obtain contracts Sales commissions $ 139 $ 139 Fulfillment costs Installation costs 10 10 Total contract cost assets $ 149 $ 149 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 3 Fair Value Measurements As of December 31, 2021 and 2020, 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, 2021 December 31, 2020 Book Value Fair Value Book Value Fair Value (Dollars in millions) Long-term debt Retail 2 $ 1,500 $ 1,594 $ 2,753 $ 2,809 Institutional 2 535 659 535 707 Other 2 944 944 230 230 Long-term debt excludes lease obligations, 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 UScellular Senior Notes in 2021 and TDS and UScellular Senior Notes in 2020, all of which are traded on the New York Stock Exchange. TDS’ “Institutional” debt consists of UScellular’s 6.7% Senior Notes which are traded over the counter. TDS’ “Other” debt consists of senior term loan credit agreements and receivables securitization agreement. 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 1.31% to 4.40% and 1.35% to 3.75% at December 31, 2021 and 2020, respectively. |
Equipment Installment Plans
Equipment Installment Plans | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Equipment Installment Plans | Note 4 Equipment Installment Plans UScellular 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. December 31, 2021 2020 (Dollars in millions) Equipment installment plan receivables, gross $ 1,085 $ 1,007 Allowance for credit losses (72) (78) Equipment installment plan receivables, net $ 1,013 $ 929 Net balance presented in the Consolidated Balance Sheet as: Accounts receivable — Customers and agents (Current portion) $ 639 $ 590 Other assets and deferred charges (Non-current portion) 374 339 Equipment installment plan receivables, net $ 1,013 $ 929 UScellular 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. These credit classes are grouped into four credit categories: lowest risk, lower risk, slight risk and higher risk. A customer's assigned credit class is reviewed periodically and a change is made, if appropriate. An equipment installment plan billed amount is considered past due if not paid within 30 days. The balance and aging of the equipment installment plan receivables on a gross basis by credit category were as follows: December 31, 2021 December 31, 2020 Lowest Risk Lower Risk Slight Risk Higher Risk Total Lowest Risk Lower Risk Slight Risk Higher Risk Total (Dollars in millions) Unbilled $ 896 $ 94 $ 24 $ 5 $ 1,019 $ 819 $ 98 $ 22 $ 9 $ 948 Billed — current 40 5 1 1 47 36 5 1 1 43 Billed — past due 10 6 2 1 19 8 5 2 1 16 Total $ 946 $ 105 $ 27 $ 7 $ 1,085 $ 863 $ 108 $ 25 $ 11 $ 1,007 The balance of the equipment installment plan receivables as of December 31, 2021 on a gross basis by year of origination were as follows: 2019 2020 2021 Total (Dollars in millions) Lowest Risk $ 41 $ 278 $ 627 $ 946 Lower Risk 3 26 76 105 Slight Risk 1 4 22 27 Higher Risk — 1 6 7 Total $ 45 $ 309 $ 731 $ 1,085 Activity for the years ended December 31, 2021 and 2020, in the allowance for credit losses for equipment installment plan receivables was as follows: 2021 2020 (Dollars in millions) Allowance for credit losses, beginning of year $ 78 $ 84 Bad debts expense 38 50 Write-offs, net of recoveries (44) (56) Allowance for credit losses, end of year $ 72 $ 78 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 5 Income Taxes TDS’ current income taxes balances at December 31, 2021 and 2020, were as follows: December 31, 2021 2020 (Dollars in millions) Federal income taxes receivable $ 179 $ 180 Net state income taxes receivable 5 7 Income tax expense (benefit) is summarized as follows: Year Ended December 31, 2021 2020 2019 (Dollars in millions) Current Federal $ 2 $ (175) $ 15 State (21) 4 15 Deferred Federal 59 179 36 State (7) 11 (2) Total income tax expense (benefit) $ 33 $ 19 $ 64 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, 2021 2020 2019 Amount Rate Amount Rate Amount Rate (Dollars in millions) Statutory federal income tax expense and rate $ 47 21.0 % $ 60 21.0 % $ 44 21.0 % State income taxes, net of federal benefit 1 (23) (10.3) 11 4.0 12 5.5 Change in federal valuation allowance 2 7 3.1 — — 7 3.1 Loss carryback benefit of CARES Act 3 — — (60) (21.0) — — Nondeductible compensation 6 2.9 9 3.0 4 1.9 Tax credits (2) (0.8) (2) (0.6) (4) (1.9) Other differences, net (2) (0.8) 1 — 1 0.7 Total income tax expense (benefit) and rate $ 33 15.1 % $ 19 6.4 % $ 64 30.3 % 1 State income taxes, net of federal benefit, include changes in unrecognized tax benefits as well as adjustments to state valuation allowances. State taxes in 2021 are a net benefit due primarily to the reduction of tax accruals resulting from expirations of state statute of limitations for prior tax years. 2 Change in federal valuation allowance is due primarily to interest expense carryforwards from partnership investments that may not be realized. 3 The CARES Act provides a 5-year carryback of net operating losses generated in years 2018-2020. As the statutory federal tax rate applicable to certain years within the carryback period is 35%, carryback to those years provides a tax benefit in excess of the current federal statutory rate of 21%. Significant components of TDS’ deferred income tax assets and liabilities at December 31, 2021 and 2020, were as follows: December 31, 2021 2020 (Dollars in millions) Deferred tax assets Net operating loss (NOL) carryforwards $ 226 $ 183 Lease liabilities 277 257 Asset retirement obligation 101 81 Other 157 109 Total deferred tax assets 761 630 Less valuation allowance (149) (158) Net deferred tax assets 612 472 Deferred tax liabilities Property, plant and equipment 751 652 Licenses/intangibles 364 287 Partnership investments 155 144 Lease assets 255 235 Other 6 17 Total deferred tax liabilities 1,531 1,335 Net deferred income tax liability $ 919 $ 863 Presented in the Consolidated Balance Sheet as: Deferred income tax liability, net $ 921 $ 863 Other assets and deferred charges (2) — Net deferred income tax liability $ 919 $ 863 At December 31, 2021, TDS and certain subsidiaries had $3,149 million of state NOL carryforwards (generating a $165 million deferred tax asset) available to offset future taxable income. The state NOL carryforwards expire between 2022 and 2041. TDS and certain subsidiaries had $291 million of federal NOL carryforwards (generating a $61 million deferred tax asset) available to offset future taxable income. The federal NOL carryforwards generally expire between 2022 and 2037, with the exception of federal NOLs generated after 2017, which do not expire. A valuation allowance was established for certain federal and state 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: 2021 2020 2019 (Dollars in millions) Balance at beginning of year $ 158 $ 152 $ 135 Charged to Income tax expense (9) 6 17 Balance at end of year $ 149 $ 158 $ 152 A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2021 2020 2019 (Dollars in millions) Unrecognized tax benefits balance at beginning of year $ 54 $ 49 $ 49 Additions for tax positions of current year 8 8 8 Additions for tax positions of prior years — 3 — Reductions for tax positions of prior years (3) (1) (7) Reductions for settlements of tax positions (2) — (1) Reductions for lapses in statutes of limitations (20) (5) — Unrecognized tax benefits balance at end of year $ 37 $ 54 $ 49 Unrecognized tax benefits are included in Accrued taxes and Other deferred liabilities and credits in the Consolidated Balance Sheet. If these benefits were recognized at each respective year end period, they would have reduced income tax expense in 2021, 2020 and 2019 by $30 million, $43 million and $39 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 a benefit of $10 million in 2021, and expenses of $2 million and $3 million in 2020 and 2019, respectively. Net accrued liabilities for interest and penalties were $13 million and $23 million at December 31, 2021 and 2020, 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 2018. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 6 Earnings Per Share Basic earnings per share attributable to TDS common shareholders is computed by dividing Net income attributable to TDS common shareholders by the weighted average number of Common Shares outstanding during the period. Diluted earnings per share attributable to TDS common shareholders is computed by dividing Net income attributable to TDS common 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 common shareholders were as follows: Year Ended December 31, 2021 2020 2019 (Dollars and shares in millions, except per share amounts) Net income attributable to TDS common shareholders used in basic earnings per share $ 117 $ 226 $ 121 Adjustments to compute diluted earnings: Noncontrolling interest adjustment (1) (3) (1) Net income attributable to TDS common shareholders used in diluted earnings per share $ 116 $ 223 $ 120 Weighted average number of shares used in basic earnings per share: Common Shares 108 107 107 Series A Common Shares 7 7 7 Total 115 114 114 Effects of dilutive securities 1 1 2 Weighted average number of shares used in diluted earnings per share 116 115 116 Basic earnings per share attributable to TDS common shareholders $ 1.03 $ 1.97 $ 1.06 Diluted earnings per share attributable to TDS common shareholders $ 1.00 $ 1.93 $ 1.03 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 7 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 exchange wireless spectrum that is not strategic to its long-term success. Prior to 2009, TDS accounted for UScellular’s share repurchases as step acquisitions, allocating a portion of the share repurchase value to TDS’ Licenses. Consequently, UScellular's Licenses on a stand-alone basis do not equal the TDS consolidated Licenses related to UScellular. Activity related to TDS' Licenses is presented below. UScellular TDS Telecom Total (Dollars in millions) Balance at December 31, 2019 $ 2,475 $ 5 $ 2,480 Acquisitions 171 — 171 Divestitures (18) — (18) Capitalized interest 5 — 5 Balance at December 31, 2020 2,633 5 2,638 Acquisitions 1,464 — 1,464 Transferred to Assets held for sale (18) — (18) Capitalized interest 13 — 13 Balance at December 31, 2021 $ 4,092 $ 5 $ 4,097 Auction 103 In March 2020, the FCC announced by way of public notice that UScellular was the provisional winning bidder for 237 wireless spectrum licenses in the 37, 39 and 47 GHz bands (Auction 103) for $146 million. UScellular paid $5 million of this amount in 2019 and the remainder in 2020. In June 2020, the wireless spectrum licenses from Auction 103 were granted by the FCC. Auction 107 In February 2021, the FCC announced by way of public notice that UScellular was the provisional winning bidder for 254 wireless spectrum licenses in the 3.7-3.98 GHz bands (Auction 107) for $1,283 million. UScellular paid $30 million of this amount in 2020 and the remainder in March 2021. The wireless spectrum licenses from Auction 107 were granted by the FCC in July 2021. Additionally, UScellular expects to be obligated to pay approximately $181 million in total from 2021 through 2024 related to relocation costs and accelerated relocation incentive payments. Such additional costs were accrued and capitalized at the time the licenses were granted. In October 2021, UScellular paid $36 million related to the additional costs. The spectrum must be cleared by incumbent providers before UScellular can access it. UScellular does not expect to have access to this spectrum until late 2023. Auction 110 In January 2022, the FCC announced by way of public notice that UScellular was the provisional winning bidder for 380 wireless spectrum licenses in the 3.45-3.55 GHz band (Auction 110) for $580 million. UScellular paid $20 million of this amount in 2021 and the remainder in January and February 2022. The advance payment is included in Other assets and deferred charges in the December 31, 2021 Consolidated Balance Sheet. The wireless spectrum licenses from Auction 110 are expected to be granted by the FCC in 2022. Goodwill The Goodwill balance of TDS Telecom was $547 million at both December 31, 2021 and 2020. Accumulated impairment losses in prior periods were $29 million for TDS Telecom. Other intangible assets Activity related to TDS' Other intangible assets is presented below. December 31, 2021 December 31, 2020 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount (Dollars in millions) Franchise rights $ 255 $ (68) $ 187 $ 255 $ (51) $ 204 Customer lists and Trade name 27 (23) 4 29 (20) 9 Other 6 — 6 — — — Total $ 288 $ (91) $ 197 $ 284 $ (71) $ 213 Amortization expense for intangible assets was $21 million, $26 million and $24 million for the years ended December 31, 2021, 2020 and 2019, respectively. Based on the current balance of finite-lived intangible assets, the estimated amortization expense is $20 million, $20 million, $17 million, $17 million and $17 million for the years 2022 through 2026, respectively. |
Investments In Unconsolidated E
Investments In Unconsolidated Entities | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Entities | Note 8 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, 2021 2020 (Dollars in millions) Equity method investments: Capital contributions, loans, advances and adjustments $ 115 $ 115 Cumulative share of income 2,460 2,278 Cumulative share of distributions (2,118) (1,937) Total equity method investments 457 456 Measurement alternative method investments 22 21 Total investments in unconsolidated entities $ 479 $ 477 The following tables, which are based on unaudited 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, 2021 2020 (Dollars in millions) Assets Current $ 1,257 $ 1,232 Noncurrent 6,189 5,908 Total assets $ 7,446 $ 7,140 Liabilities and Equity Current liabilities $ 710 $ 646 Noncurrent liabilities 1,260 1,124 Partners’ capital and shareholders’ equity 5,476 5,370 Total liabilities and equity $ 7,446 $ 7,140 Year Ended December 31, 2021 2020 2019 (Dollars in millions) Results of Operations Revenues $ 7,127 $ 6,702 $ 6,929 Operating expenses 5,152 4,753 5,043 Operating income 1,975 1,949 1,886 Other income (expense), net 14 13 (24) Net income $ 1,989 $ 1,962 $ 1,862 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 9 Property, Plant and Equipment TDS’ Property, plant and equipment in service and under construction, and related accumulated depreciation and amortization, as of December 31, 2021 and 2020, were as follows: December 31, Useful Lives (Years) 2021 2020 (Dollars in millions) Land N/A $ 62 $ 56 Buildings 5-40 541 533 Leasehold and land improvements 1-30 1,476 1,404 Cable and wire 15-40 2,403 2,195 Network and switching equipment 3-10 2,671 2,634 Cell site equipment 7-25 4,150 4,017 Office furniture and equipment 3-10 346 394 Other operating assets and equipment 1-12 176 189 System development 1-7 1,864 1,709 Work in process N/A 576 528 Total property, plant and equipment, gross 14,265 13,659 Accumulated depreciation and amortization (9,904) (9,687) Total property, plant and equipment, net $ 4,361 $ 3,972 Depreciation and amortization expense totaled $851 million, $862 million and $890 million in 2021, 2020 and 2019, respectively. In 2021, 2020 and 2019, (Gain) loss on asset disposals, net included charges of $26 million, $27 million and $12 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, 2021 | |
Leases [Abstract] | |
Leases | Note 10 Leases 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 right-of-use assets or lease liabilities. The identified lease term determines the periods to which expense is allocated and also has a significant impact on the right-of-use 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 December 31, 2021 2020 2019 (Dollars in millions) Operating lease cost $ 198 $ 184 $ 177 Variable lease cost 10 11 8 Total $ 208 $ 195 $ 185 The following table shows supplemental cash flow information related to lease activities: Year Ended December 31, 2021 2020 2019 (Dollars in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 204 $ 188 $ 172 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 188 $ 157 $ 132 The table below shows a weighted-average analysis for lease terms and discount rates for operating leases: December 31, 2021 2020 Weighted Average Remaining Lease Term 12 years 12 years Weighted Average Discount Rate 3.8 % 4.1 % The maturities of lease liabilities are as follows: Operating Leases (Dollars in millions) 2022 $ 178 2023 178 2024 156 2025 129 2026 96 Thereafter 713 Total lease payments 1 $ 1,450 Less: Imputed interest 349 Present value of lease liabilities $ 1,101 1 Lease payments exclude $34 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 December 31, 2021 2020 2019 (Dollars in millions) Operating lease income 1 $ 109 $ 105 $ 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) 2022 $ 87 2023 84 2024 58 2025 37 2026 19 Thereafter 30 Total future lease maturities $ 315 |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2021 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligations | Note 11 Asset Retirement Obligations UScellular 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 a future date. Asset retirement obligations are included in Other deferred liabilities and credits in the Consolidated Balance Sheet. In 2021 and 2020, UScellular and TDS Telecom performed a review of the assumptions and estimated future costs related to asset retirement obligations. The results of the reviews and other changes in asset retirement obligations during 2021 and 2020, were as follows: 2021 2020 (Dollars in millions) Balance at beginning of year $ 377 $ 342 Additional liabilities accrued 28 5 Revisions in estimated cash outflows 42 11 Disposition of assets (1) (1) Accretion expense 23 20 Balance at end of year $ 469 $ 377 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Note 12 Debt Revolving Credit Agreements At December 31, 2021, TDS and UScellular had revolving credit agreements available for general corporate purposes. Amounts under the revolving credit agreements may be borrowed, repaid and reborrowed from time to time until maturity in July 2026. The following table summarizes the revolving credit agreements as of December 31, 2021: TDS UScellular (Dollars in millions) Maximum borrowing capacity $ 400 $ 300 Letters of credit outstanding $ 1 $ — Amount borrowed $ — $ — Amount available for use $ 399 $ 300 Borrowings under the TDS revolving credit agreement bear interest at a rate of London Inter-bank Offered Rate (LIBOR) plus 1.50%. Borrowings under the UScellular revolving credit agreement bear interest at a rate of Secured Overnight Financing Rate (SOFR) plus 1.60%. TDS and UScellular 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 UScellular and approved by the lenders). TDS’ and UScellular’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 UScellular’s revolving credit agreement, TDS and UScellular entered into a subordination agreement together with the administrative agent for the lenders under UScellular’s revolving credit agreement. Pursuant to this subordination agreement, (a) any consolidated funded indebtedness from UScellular to TDS will be unsecured and (b) any (i) consolidated funded indebtedness from UScellular 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 UScellular’s revolving credit agreement. As of December 31, 2021, UScellular 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 UScellular 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 3.75 to 1.00 as of the end of any fiscal quarter. Certain TDS and UScellular wholly-owned subsidiaries have jointly and severally unconditionally guaranteed the payment and performance of the obligations of TDS and UScellular under the revolving credit agreements. Other subsidiaries that meet certain criteria will be required to provide a similar guaranty in the future. TDS and UScellular 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, 2021. In January 2022, UScellular borrowed $75 million under its revolving credit agreement and in February 2022, repaid the entire borrowing. Term Loan Agreements At December 31, 2021, TDS and UScellular had senior term loan credit agreements available for general corporate purposes. The following table summarizes the term loan credit agreements as of December 31, 2021: TDS UScellular (Dollars in millions) Maximum borrowing capacity $ 500 $ 800 Amount borrowed and outstanding $ 200 $ 299 Amount borrowed and repaid $ — $ 1 Amount available for use $ 300 $ 500 In July 2021, TDS amended and restated its term loan agreement to allow for an additional $300 million of borrowing capacity. Principal reductions on the existing borrowings are due and payable in quarterly installments of $0.5 million beginning in December 2021. Amounts borrowed under the existing term loan agreement will bear interest at a rate of LIBOR plus 2.00% and are due and payable in July 2028. Borrowings under the additional $300 million borrowing capacity may be drawn in one or more advances by the one-year anniversary of the date of the agreement which is July 30, 2022; amounts not drawn by that time will cease to be available. Borrowings bear interest at a rate of LIBOR plus 2.50% and are due and payable in July 2031. Principal reductions on any new borrowings will be due and payable in quarterly installments beginning in December 2022 at a rate of 0.25% of the initial outstanding principal balance through September 2026 and at a rate of 0.625% of the initial outstanding principal balance from December 2026 through the maturity date. In January 2022, TDS borrowed $150 million under the term loan agreement. In July 2021, UScellular amended and restated its term loan agreement to allow for an additional $200 million of borrowing capacity. Principal reductions on the existing borrowings are due and payable in quarterly installments of $0.75 million beginning in December 2021. Amounts borrowed under the existing term loan agreement will bear interest at a rate of SOFR plus 2.10% and are due and payable in July 2028. Borrowings under the additional $200 million borrowing capacity may be drawn in one or more advances by the one-year anniversary of the date of the agreement which is July 30, 2022; amounts not drawn by that time will cease to be available. Borrowings bear interest at a rate of SOFR plus 2.60% and are due and payable in July 2031. Principal reductions on any new borrowings will be due and payable in quarterly installments beginning in December 2022 at a rate of 0.25% of the initial outstanding principal balance through September 2026 and at a rate of 0.625% of the initial outstanding principal balance from December 2026 through the maturity date. In January 2022, UScellular borrowed $100 million under the term loan agreement. In December 2021, UScellular entered into an additional $300 million term loan agreement. The agreement may be drawn in one or more advances by the three-month anniversary of the date of the agreement which is March 9, 2022; amounts not drawn by that time will cease to be available. Borrowings bear interest at a rate of SOFR plus 1.60% and are due and payable in July 2026. Principal reductions on any borrowings will be due and payable in quarterly installments beginning in March 2023 at a rate of 0.625% of the initial outstanding principal balance through December 2023; at a rate of 1.25% of the initial outstanding principal balance from March 2024 through December 2025; and at a rate of 2.50% of the initial outstanding principal balance from March 2026 through the maturity date. In February 2022, UScellular borrowed $225 million under the term loan agreement. In connection with UScellular’s term loan credit agreements, TDS and UScellular entered into subordination agreements together with the administrative agent for the lenders under UScellular’s term loan credit agreements, which is substantially the same as the subordination agreement for UScellular as described above under the “Revolving Credit Agreements.” As of December 31, 2021, UScellular had no outstanding consolidated funded indebtedness or refinancing indebtedness that was subordinated to the term loan agreements pursuant to these subordination agreements. The senior term loan credit agreements contain financial covenants and subsidiary guarantees that are consistent with the revolving credit agreements described above. TDS and UScellular believe that they were in compliance with all of the financial and other covenants and requirements set forth in their term loan credit agreements as of December 31, 2021. Export Credit Financing Agreement In December 2021, UScellular entered into a $150 million term loan credit facility with Export Development Canada to finance (or refinance) equipment imported from Canada, including equipment purchased prior to entering the term loan credit facility agreement. The agreement may be drawn in one or more advances by the three-month anniversary of the date of the agreement which is March 17, 2022; amounts not drawn by that time will cease to be available. Borrowings bear interest at a rate of SOFR plus 1.60% and are due and payable on the five-year anniversary of the first borrowing, which is in January 2027. As of December 31, 2021, there were no outstanding borrowings under the credit facility and the unused borrowing capacity was $150 million. In January 2022, UScellular borrowed $150 million under the agreement. In connection with UScellular export credit financing agreement, TDS and UScellular entered into a subordination agreement together with the administrative agent for the lenders under UScellular’s export credit financing agreement, which is substantially the same as the subordination agreement for UScellular as described above under the “Revolving Credit Agreements.” As of December 31, 2021, UScellular had no outstanding consolidated funded indebtedness or refinancing indebtedness that was subordinated to the export credit financing agreement pursuant to this subordination agreement. The export credit financing agreement contains financial covenants and subsidiary guarantees that are consistent with the revolving credit agreements described above. TDS believes that UScellular was in compliance with all of the financial and other covenants and requirements set forth in their export credit financing agreement as of December 31, 2021. Receivables Securitization Agreement At December 31, 2021, UScellular, through its subsidiaries, had a receivables securitization agreement for securitized borrowings using its equipment installment receivables for general corporate purposes. In June 2021, UScellular increased the borrowing capacity under the receivables securitization agreement to $450 million. Amounts under the receivables securitization agreement may be borrowed, repaid and reborrowed from time to time until maturity in December 2022. Unless the agreement is amended to extend the maturity date, repayments based on receivable collections commence in January 2023. UScellular intends to extend the maturity date of the facility. The outstanding borrowings bear interest at floating rates. As of December 31, 2021, UScellular has borrowed the full amount available under the agreement of $450 million. As of December 31, 2021, the USCC Master Note Trust held $638 million of assets available to be pledged as collateral for the receivables securitization agreement. In connection with entering into the receivables securitization agreement in 2017, UScellular formed a wholly-owned subsidiary, USCC Master Note Trust (Trust), which qualifies as a bankruptcy remote entity. Under the terms of the agreement, UScellular, 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 UScellular 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 15 — Variable Interest Entities for additional information. UScellular entered into a performance guaranty whereby UScellular guarantees the performance of certain wholly-owned subsidiaries of UScellular under the receivables securitization agreement. The continued availability of the receivables securitization agreement requires UScellular 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 UScellular as described above under the “Revolving Credit Agreements.” TDS believes that UScellular was in compliance as of December 31, 2021, with all of the financial covenants and requirements set forth in its receivables securitization agreement. Repurchase Agreement In January 2022, UScellular, through a subsidiary (the repo subsidiary), entered into a repurchase agreement to borrow up to $200 million, subject to the availability of eligible equipment installment plan receivables and the agreement of the lender. The transaction form involves the sale of receivables by the repo subsidiary and the commitment to repurchase at the end of the applicable repurchase term, which may extend up to one month. The transaction is accounted for as a one-month secured borrowing. The outstanding borrowings bear interest at a rate of SOFR plus 1.25%. Although the lender holds a security interest in the receivables, the repo subsidiary retains effective control of the receivables, and therefore, any activity associated with the repurchase agreement will be treated as a secured borrowing. UScellular will continue to report equipment installment plan receivables and any related balances on the Consolidated Balance Sheet. The expiration date of the repurchase agreement is in January 2023. As of January 31, 2022, UScellular held $455 million of assets available for inclusion in the repurchase facility; these assets are distinct from the assets held by the USCC Master Note Trust for UScellular's receivables securitization agreement. In February 2022, the repo subsidiary borrowed $60 million under the repurchase agreement. UScellular entered into a performance guaranty whereby UScellular guarantees the performance of the repo subsidiary under the repurchase agreement. Other Long-Term Debt Long-term debt as of December 31, 2021 and 2020, was as follows: December 31, 2021 December 31, 2020 Issuance date Redemption date Maturity date Call date (any time on or after) Principal Amount Less Total Principal Amount Less Unamortized discount and debt issuance costs Total (Dollars in millions) TDS Unsecured Senior Notes 6.625% Mar 2005 Sep 2021 Mar 2045 Mar 2010 $ — $ — $ — $ 116 $ 3 $ 113 6.875% Nov 2010 May 2021 Nov 2059 Nov 2015 — — — 225 7 218 7.000% Mar 2011 May 2021 Mar 2060 Mar 2016 — — — 300 9 291 5.875% Dec 2012 Oct 2021 Dec 2061 Dec 2017 — — — 195 7 188 UScellular Unsecured Senior Notes 6.700% Dec 2003 Dec 2033 Dec 2003 $ 544 $ 12 $ 532 $ 544 $ 13 $ 531 6.950% May 2011 Sep 2021 May 2060 May 2016 — — — 342 11 331 7.250% Dec 2014 May 2021 Dec 2063 Dec 2019 — — — 275 10 265 7.250% Nov 2015 Jun 2021 Dec 2064 Dec 2020 — — — 300 10 290 6.250% Aug 2020 Sep 2069 Sep 2025 500 17 483 500 17 483 5.500% Dec 2020 Mar 2070 Mar 2026 500 17 483 500 17 483 5.500% May 2021 Jun 2070 Jun 2026 500 16 484 — — — UScellular Term Loan 299 3 296 83 3 80 TDS Term Loan 200 2 198 125 2 123 EIP Securitization 450 — 450 25 — 25 Finance lease obligations 7 — 7 7 — 7 Other long-term notes 1 — 1 1 — 1 Total long-term debt $ 3,001 $ 67 $ 2,934 $ 3,538 $ 109 $ 3,429 Long-term debt, current $ 6 $ 5 Long-term debt, noncurrent $ 2,928 $ 3,424 In May 2021, UScellular issued $500 million of 5.5% Senior Notes due in June 2070, and received cash proceeds of $484 million after payment of debt issuance costs of $16 million. These funds will be used for general corporate purposes. Interest on these notes is payable quarterly beginning in September 2021. UScellular may redeem these notes, in whole or in part, at any time after June 2026 at a redemption price equal to 100% of the principal amount redeemed plus accrued and unpaid interest. TDS and UScellular redeemed outstanding Senior Notes in 2021. At time of redemption, $57 million of interest expense was recorded related to unamortized debt issuance costs for the notes. The notes were redeemed at a price of 100% of the principal amount, including accrued and unpaid interest to the redemption date. UScellular may redeem its 6.25% Senior Notes, 5.5% March 2070 Senior Notes and 5.5% June 2070 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. UScellular 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, 2021, is payable quarterly, with the exception of UScellular's 6.7% Senior Notes for which interest is payable semi-annually. The annual requirements for principal payments on long-term debt are approximately $6 million, $6 million, $5 million, $5 million and $5 million for the years 2022 through 2026, respectively. These amounts do not include payments on the $450 million of outstanding borrowings under the receivables securitization agreement. If the maturity date of the facility is not extended, principal repayments begin in January 2023. Principal repayments are not scheduled but are instead based on actual receivable collections. UScellular intends to extend the maturity date of the facility. 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. UScellular’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 UScellular’s credit rating. |
Employee Benefits Plans
Employee Benefits Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 13 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 UScellular. Under this plan, pension costs are calculated separately for each participant and are funded annually. Total pension costs were $16 million, $16 million and $17 million in 2021, 2020 and 2019, respectively. 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 $27 million , $27 million and $25 million in 2021, 2020 and 2019, respectively. 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, 2021 and 2020. 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, UScellular or any related parties. The fair value of the plan assets of the post-retirement benefit fund was $77 million and $69 million as of December 31, 2021 and 2020, respectively. The total plan benefit obligations were $54 million and $57 million as of December 31, 2021 and 2020, respectively. Therefore, the total funded status was an asset of $23 million and $12 million as of December 31, 2021 and 2020, 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 2022. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14 Commitments and Contingencies 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 had no accrual with respect to legal proceedings and unasserted claims as of December 31, 2021. TDS accrued less than $1 million with respect to legal proceedings and unasserted claims as of December 31, 2020. 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 UScellular and TDS under the federal False Claims Act relating to UScellular’s participation in wireless spectrum license auctions 58, 66, 73 and 97 conducted by the FCC. UScellular 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 UScellular that it would not intervene in the above-referenced actions. Subsequently, the private party plaintiffs filed amended complaints in both actions in the U.S. District Court for the Western District of Oklahoma and are continuing the action on their own. In July 2020, these actions were transferred to the U.S. District Court for the District of Columbia. TDS and UScellular believe that UScellular’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, 2021 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Note 15 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. TDS reviews the criteria for a controlling financial interest at the time it enters into agreements and subsequently when events warranting reconsideration occur. These VIEs have risks similar to those described in the “Risk Factors” in TDS’ Form 10-K for the year ended December 31, 2021. UScellular 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, UScellular 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 UScellular, 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 UScellular has the power to direct the activities of these SPEs, and that these SPEs lack sufficient equity to finance their activities, UScellular 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 12 — 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, UScellular is the general partner and manages the operations. In these partnerships, the limited partners do not have substantive kick-out or participating rights and, further, such limited partners do not have the authority to remove the general partner. Therefore, these limited partnerships also are recognized as VIEs and are consolidated 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, 2021 2020 (Dollars in millions) Assets Cash and cash equivalents $ 22 $ 18 Short-term investments — 3 Accounts receivable 692 638 Inventory, net 2 3 Other current assets 44 21 Licenses 637 637 Property, plant and equipment, net 108 99 Operating lease right-of-use assets 42 37 Other assets and deferred charges 382 347 Total assets $ 1,929 $ 1,803 Liabilities Current liabilities $ 28 $ 26 Long-term operating lease liabilities 37 34 Other deferred liabilities and credits 23 19 Total liabilities 1 $ 88 $ 79 1 Total liabilities does not include amounts borrowed under the receivables securitization agreement. See Note 12 – Debt for additional information. 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 $4 million and $5 million at December 31, 2021 and 2020, 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 or advances to its VIEs totaling $36 million, $111 million and $255 million during 2021, 2020 and 2019, respectively; of which $83 million in 2020 and $214 million in 2019 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 or receivables securitization agreements 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 agreement of Advantage Spectrum also provides the general partner with a put option whereby the general partner may require the limited partner, a subsidiary of UScellular, to purchase its interest in the limited partnership. The general partner’s put option related to its interest in Advantage Spectrum was not exercised during the first exercise period and will be exercisable again in the third quarter of 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 option, 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. |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Note 16 Noncontrolling Interests The following schedule discloses the effects of Net income attributable to TDS shareholders and changes in TDS’ ownership interest in UScellular on TDS’ equity: Year Ended December 31, 2021 2020 2019 (Dollars in millions) Net income attributable to TDS shareholders $ 156 $ 226 $ 121 Transfers (to) from noncontrolling interests Change in TDS’ Capital in excess of par value from UScellular's issuance of UScellular shares (49) (38) (23) Change in TDS’ Capital in excess of par value from UScellular’s repurchases of UScellular shares 17 14 6 Purchase of ownership in subsidiaries from noncontrolling interests — (9) — Net transfers (to) from noncontrolling interests (32) (33) (17) Net income attributable to TDS shareholders after transfers (to) from noncontrolling interests $ 124 $ 193 $ 104 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, 2021, net of estimated liquidation costs, is $21 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, 2021, was $6 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. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Note 17 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 7,331,000 Common Shares at December 31, 2021, for possible issuance upon conversion of Series A Common Shares. 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, 2021, the maximum dollar value of TDS Common Shares that may yet be purchased under TDS' program was $177 million. In November 2009, UScellular announced by Form 8-K that the Board of Directors of UScellular 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 UScellular 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, 2021, the total cumulative amount of Common Shares authorized to be purchased is 3,517,000. 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. Preferred Stock In March 2021, TDS issued 16,800 shares of TDS’ 6.625% Series UU Cumulative Redeemable Perpetual Preferred Stock (Preferred Shares) for $25,000 per Preferred Share, for total gross proceeds of $420 million. The Preferred Shares were issued to a depositary to facilitate the issuance of 16,800,000 depositary shares (Depositary Shares), each representing 1/1,000 th of a Preferred Share. TDS received net cash proceeds of $406 million after payment of issuance costs of $14 million. The proceeds were for general corporate purposes, including but not limited to, the funding of capital expenditures associated with TDS Telecom's fiber program and retirement of existing debt. In August 2021, TDS issued 27,600 shares of TDS’ 6.000% Series VV Preferred Shares for $25,000 per Preferred Share, for total gross proceeds of $690 million. The Preferred Shares were issued to a depositary to facilitate the issuance of 27,600,000 Depositary Shares, each representing 1/1,000 th of a Preferred Share. TDS received net cash proceeds of $668 million after payment of issuance costs of $22 million. The proceeds were for general corporate purposes, including but not limited to, the funding of capital expenditures associated with TDS Telecom's fiber program and retirement of existing debt. Each holder of Depositary Shares is entitled to a proportional fractional interest in all rights and preferences of the Preferred Shares, including dividend, voting, redemption and liquidation rights. The Preferred Shares have no maturity or mandatory redemption date and are not redeemable at the option of the holders. Dividends on the Preferred Shares, when declared, are payable quarterly at a rate equal to 6.625% per year for the Series UU Preferred Shares and 6.000% for the Series VV Preferred Shares. As of December 31, 2021, there were no dividends in arrears. The Preferred Shares rank senior to TDS’ Common Shares and junior to all of TDS’ existing and future indebtedness outstanding under TDS’ credit facilities and unsecured senior notes. The Series VV Preferred Shares rank on parity with the Series UU Preferred Shares. Upon voluntary or involuntary liquidation, holders of Preferred Shares are entitled to a liquidating distribution of $25,000 per Preferred Share after satisfaction of liabilities and obligations to creditors. The Preferred Shares have voting rights only if certain limited conditions are met. TDS may, at its option, redeem the Series UU Preferred Shares (a) in whole or in part, on or after March 31, 2026 at a redemption price of $25,000 per Preferred Share, or (b) in whole but not in part, any time prior to March 31, 2026, within 120 days after a credit rating downgrade as specified in the offering prospectus, at a redemption price of $25,500 per Preferred Share, or (c) in whole or in part, within 120 days of the occurrence of a change in control as specified in the offering prospectus, at a redemption price of $25,000 per Preferred Share, plus, in each case, all accumulated and unpaid dividends (whether or not declared) up to the redemption date. TDS may, at its option, redeem the Series VV Preferred Shares (a) in whole or in part, on or after September 30, 2026 at a redemption price of $25,000 per Preferred Share, or (b) in whole but not in part, any time prior to September 30, 2026, within 120 days after a credit rating downgrade as specified in the offering prospectus, at a redemption price of $25,500 per Preferred Share, or (c) in whole or in part, within 120 days of the occurrence of a change in control as specified in the offering prospectus, at a redemption price of $25,000 per Preferred Share, plus, in each case, all accumulated and unpaid dividends (whether or not declared) up to the redemption date. The Preferred Shares are convertible, at the option of the holder, to shares of TDS Common Shares upon a change of control as specified in the offering prospectus. The conversion right is the lesser of (a) Common Shares equal to $25,000 per Preferred Share plus any accumulated and unpaid dividends, divided by the TDS Common Stock price, or (b) 2,773.200 Common Shares for each Series UU Preferred Share and 2,584.000 Common Shares for each Series VV Preferred Share, which represents one-half the conversion rate at the time of closing. In both cases, certain other adjustments and provisions may impact the conversion. Tax-Deferred Savings Plan At December 31, 2021,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 UScellular Common Share fund or certain unaffiliated funds. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | Note 18 Stock-Based Compensation TDS Consolidated The following table summarizes stock-based compensation expense recognized during 2021, 2020 and 2019: Year Ended December 31, 2021 2020 2019 (Dollars in millions) Stock option awards $ 2 $ 3 $ 3 Restricted stock unit awards 29 30 33 Performance share unit awards 16 17 21 Deferred compensation bonus and matching stock unit awards — 1 — Awards under Non-Employee Director compensation plan 2 2 2 Total stock-based compensation, before income taxes 49 53 59 Income tax benefit (12) (13) (15) Total stock-based compensation expense, net of income taxes $ 37 $ 40 $ 44 At December 31, 2021, unrecognized compensation cost for all stock‑based compensation awards was $60 million and is expected to be recognized over a weighted average period of 2.1 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, 2021 2020 2019 (Dollars in millions) Selling, general and administrative expense $ 44 $ 48 $ 54 Cost of services expense 5 5 5 Total stock-based compensation expense $ 49 $ 53 $ 59 TDS’ tax benefits realized from the exercise of stock options and the vesting of other awards totaled $15 million in 2021. TDS (Excluding UScellular) 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 UScellular are shown in the UScellular 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 16,350,000 Common Shares at December 31, 2021, for equity awards granted and to be granted under the TDS Long-Term Incentive Plans in effect. At December 31, 2021, 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 132,000 TDS Common Shares at December 31, 2021, 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, 2021, expire between 2022 and 2031. 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 2021, 2020 and 2019 using the Black-Scholes valuation model and the assumptions shown in the table below: 2021 2020 2019 Expected life 6.3 years 6.2 years 6.2 years Expected annual volatility rate 36.6 % 35.0 % 29.0 % Dividend yield 2.8 % 3.6 % 2.1 % Risk-free interest rate 1.1 % 0.5 % 2.4 % 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 2021 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, 2020 4,286,000 $ 25.94 Granted 289,000 $ 25.36 Exercised (23,000) $ 21.54 Forfeited (6,000) $ 23.75 Expired (458,000) $ 29.73 Outstanding at December 31, 2021 4,088,000 $ 25.50 $ — 4.2 (3,264,000 exercisable) $ 25.91 $ — 3.1 The weighted average grant date fair value per share of the TDS stock options granted in 2021, 2020 and 2019 was $6.86, $4.24 and $7.70, respectively. The aggregate intrinsic value of TDS stock options exercised in 2021 and 2019 was less than $1 million and $7 million, respectively. There were no TDS stock options exercised in 2020. The aggregate intrinsic value at December 31, 2021, 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, 2021. 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 2019, 2020 and 2021 and will vest in 2022, 2023 and 2024, 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 2021 is presented in the table below: Common Restricted Stock Units Number Weighted Average Grant Date Fair Value Nonvested at December 31, 2020 1,496,000 $ 22.26 Granted 580,000 $ 23.34 Vested (451,000) $ 23.69 Forfeited (33,000) $ 22.08 Nonvested at December 31, 2021 1,592,000 $ 22.25 The total fair values as of the respective vesting dates of restricted stock units vested during 2021, 2020 and 2019 were $11 million, $7 million and $11 million, respectively. The weighted average grant date fair value per share of the restricted stock units granted in 2021, 2020 and 2019 was $23.34, $17.19 and $28.81, 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. 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 units granted in 2019, 2020 and 2021 will vest in 2022, 2023 and 2024, respectively. 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 2021, 2020 and 2019. 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 2021 is presented in the table below: Common Performance Share Units Number Weighted Average Grant Date Fair Value Nonvested at December 31, 2020 924,000 $ 23.18 Granted 303,000 $ 25.36 Vested (152,000) $ 25.70 Change in units based on approved performance factors 38,000 $ 25.70 Forfeited (61,000) $ 24.36 Accumulated dividend equivalents 33,000 $ 23.29 Nonvested at December 31, 2021 1,085,000 $ 23.46 The total fair value of performance share units that vested during 2021, 2020 and 2019 was $3 million, $2 million and $4 million, respectively. The weighted average grant date fair value per share of the performance share units granted in 2021, 2020 and 2019 was $25.36, $19.15 and $30.72, 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. Compensation of Non-Employee Directors TDS issued 50,000, 43,000 and 28,000 Common Shares under its Non-Employee Director plan in 2021, 2020 and 2019, respectively. Dividend Reinvestment Plans TDS had reserved 2,329,000 Common Shares at December 31, 2021, for issuance under Automatic Dividend Reinvestment and Stock Purchase Plans and 78,000 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. UScellular The information in this section relates to stock‑based compensation plans using the equity instruments of UScellular. Participants in these plans are employees of UScellular and Non-employee Directors of UScellular. Information related to plans using the equity instruments of TDS are shown in the previous section. UScellular has established the following stock‑based compensation plans: Long-Term Incentive Plans and a Non-Employee Director compensation plan. Under the UScellular Long-Term Incentive Plans, UScellular 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, 2021, 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, UScellular may grant Common Shares to members of the Board of Directors who are not employees of UScellular or TDS. At December 31, 2021, UScellular had reserved 11,370,000 Common Shares for equity awards granted and to be granted under the Long-Term Incentive Plans and 84,000 Common Shares for issuance under the Non-Employee Director compensation plan. UScellular uses treasury stock to satisfy requirements for Common Shares issued pursuant to its various stock-based compensation plans. Long-Term Incentive Plans – Stock Options UScellular's last stock option grant occurred in 2016. Stock options outstanding, and the related weighted average exercise price, at December 31, 2021 and 2020 were 378,000 units at $42.18 and 418,000 units at $42.23, respectively. All stock options are exercisable and expire between 2022 and 2026. The aggregate intrinsic value of UScellular stock options exercised in 2021 and 2019 was less than $1 million and $3 million, respectively. No stock options were exercised in 2020. 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 2019, 2020 and 2021 and will vest in 2022, 2023 and 2024, respectively. UScellular estimates the fair value of restricted stock units based on the closing market price of UScellular 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 UScellular nonvested restricted stock units and changes during 2021 is presented in the table below: Common Restricted Stock Units Number Weighted Average Grant Date Fair Value Nonvested at December 31, 2020 1,660,000 $ 36.43 Granted 672,000 $ 36.68 Vested (609,000) $ 39.10 Forfeited (122,000) $ 35.77 Nonvested at December 31, 2021 1,601,000 $ 35.57 The total fair value of restricted stock units that vested during 2021, 2020 and 2019 was $22 million, $20 million and $25 million, respectively. The weighted average grant date fair value per share of the restricted stock units granted in 2021, 2020 and 2019 was $36.68, $29.18 and $46.81, respectively. Long-Term Incentive Plans – Performance Share Units Beginning in 2017, UScellular granted performance share units to key employees. The performance share units generally vest after three years. Beginning with the 2021 grants, each recipient may be entitled to shares of UScellular common stock equal to 0% to 200% of a communicated target award depending on the achievement of a predetermined performance based operating target over the performance period, which is generally a three-year period beginning on January 1 in the year of grant to December 31 of the third year. The performance-based operating target for the 2021 grants is Return on Capital. Prior to the 2021 grants, each recipient was entitled to shares of UScellular 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 was generally 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 for grants made in 2020 included Consolidated Total Service Revenues, Consolidated Operating Cash Flow, Consolidated Capital Expenditures and Postpaid Handset Voluntary Defections; and for grants made prior to 2020 included Simple Free Cash Flow, Consolidated Total Operating Revenues and Postpaid Handset Voluntary Defections. Grants made prior to 2021 are subject to vesting during the time-based period and their performance share unit award agreements provide that in no event shall the awards be less than 50% of the target opportunity as of their grant dates. The performance share units currently outstanding were granted in 2019, 2020 and 2021 and will vest in 2022, 2023 and 2024, respectively. Additionally, UScellular granted performance share units during 2020 to a newly appointed President and Chief Executive Officer. The recipient may be entitled to shares of UScellular common stock equal to 100% of the communicated target award depending on the achievement of predetermined performance-based operating targets over the performance period, which is any two calendar-year period commencing no earlier than January 1, 2021 and ending no later than December 31, 2026. Performance-based operating targets include Average Total Revenue Growth and Average Annual Return on Capital. If one, or both, of the performance targets are not satisfied, the award will be forfeited. UScellular estimates the fair value of performance share units using UScellular’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 UScellular’s nonvested performance share units and changes during 2021 is presented in the table below: Common Performance Share Units Number Weighted Average Grant Date Fair Value Nonvested at December 31, 2020 1,305,000 $ 36.60 Granted 394,000 $ 37.67 Vested (601,000) $ 39.50 Change in units based on approved performance factors 42,000 $ 28.94 Forfeited (91,000) $ 35.13 Nonvested at December 31, 2021 1,049,000 $ 35.17 The total fair value of performance share units that vested during 2021, 2020 and 2019 was $22 million, $11 million and less than $1 million, respectively. The weighted average grant date fair value per share of the performance share units granted in 2021, 2020 and 2019 was $37.67, $29.71 and $46.43, respectively. Long-Term Incentive Plans – Deferred Compensation Stock Units Certain UScellular 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 UScellular Common Share stock units. Beginning with the 2021 performance year, the amount of UScellular's matching contribution is a 33% match for the amount of their total annual bonus that is deferred into the program. Prior to the 2021 performance year, the amount of UScellular’s matching contribution was a 25% match for amounts deferred up to 50% of their total annual bonus and a 33% match for amounts that exceeded 50% of their total annual bonus. Matching contributions are also deemed to be invested in UScellular Common Share stock units and vest over three years. Compensation of Non-Employee Directors |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 19 Business Segment Information UScellular and TDS Telecom are billed for services they receive from TDS, consisting primarily of information processing, accounting, finance, and general management services. Such billings are based on expenses specifically identified to UScellular 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 UScellular and TDS Telecom are reflected in the accompanying business segment information on a basis that is representative of what they would have been if UScellular and TDS Telecom operated on a stand-alone basis. During the first quarter of 2021, TDS modified its reporting segment structure to combine its Wireline and Cable segments into a single reportable segment for TDS Telecom. TDS Telecom believes this presentation better articulates its progress and performance against its strategy, which includes a focus on overall broadband growth and future fiber deployment across its markets. This change also reflects TDS Telecom's progress in aligning its organizational, operational and support structures to leverage one cost base to better support its customers across all of its markets. Prior periods have been updated to conform to this revised presentation. Financial data for TDS’ reportable segments for 2021, 2020 and 2019, is as follows. See Note 1 — Summary of Significant Accounting Policies for additional information. Year ended or as of December 31, 2021 UScellular TDS Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 3,115 $ 1,005 $ 96 $ 4,216 Equipment and product sales 1,007 1 105 1,113 Total operating revenues 4,122 1,006 201 5,329 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 790 404 73 1,267 Cost of equipment and products 1,118 1 86 1,205 Selling, general and administrative 1,345 291 41 1,677 Depreciation, amortization and accretion 678 198 19 895 (Gain) loss on asset disposals, net 23 2 1 26 (Gain) loss on sale of business and other exit costs, net (2) — — (2) Operating income (loss) 170 110 (19) 261 Equity in earnings of unconsolidated entities 179 — 3 182 Interest and dividend income 6 1 4 11 Interest expense (175) 5 (62) (232) Other, net — (1) — (1) Income (loss) before income taxes 180 114 (73) 221 Income tax expense (benefit) 20 24 (11) 33 Net income (loss) 160 90 (62) 188 Add back: Depreciation, amortization and accretion 678 198 19 895 (Gain) loss on asset disposals, net 23 2 1 26 (Gain) loss on sale of business and other exit costs, net (2) — — (2) Interest expense 175 (5) 62 232 Income tax expense (benefit) 20 24 (11) 33 Adjusted EBITDA 1 $ 1,054 $ 310 $ 8 $ 1,372 Investments in unconsolidated entities $ 439 $ 4 $ 36 $ 479 Total assets $ 10,341 $ 2,645 $ 507 $ 13,493 Capital expenditures $ 780 $ 411 $ 10 $ 1,201 Year Ended or as of December 31, 2020 UScellular TDS Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 3,067 $ 975 $ 94 $ 4,136 Equipment and product sales 970 1 118 1,089 Total operating revenues 4,037 976 212 5,225 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 782 392 70 1,244 Cost of equipment and products 1,011 1 98 1,110 Selling, general and administrative 1,368 270 43 1,681 Depreciation, amortization and accretion 683 203 23 909 (Gain) loss on asset disposals, net 25 1 1 27 (Gain) loss on license sales and exchanges, net (5) — — (5) Operating income (loss) 173 110 (24) 259 Equity in earnings of unconsolidated entities 179 — 2 181 Interest and dividend income 8 5 2 15 Gain (loss) on investments 2 — — 2 Interest expense (112) 4 (60) (168) Other, net — (1) — (1) Income (loss) before income taxes 250 117 (79) 288 Income tax expense (benefit) 17 18 (16) 19 Net income (loss) 233 100 (64) 269 Add back: Depreciation, amortization and accretion 683 203 23 909 (Gain) loss on asset disposals, net 25 1 1 27 (Gain) loss on license sales and exchanges, net (5) — — (5) Gain (loss) on investments (2) — — (2) Interest expense 112 (4) 60 168 Income tax expense (benefit) 17 18 (16) 19 Adjusted EBITDA 1 $ 1,063 $ 317 $ 5 $ 1,385 Investments in unconsolidated entities $ 435 $ 4 $ 38 $ 477 Total assets $ 9,681 $ 2,359 $ 485 $ 12,525 Capital expenditures $ 940 $ 368 $ 9 $ 1,317 Year Ended or as of December 31, 2019 UScellular TDS Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 3,035 $ 928 $ 96 $ 4,059 Equipment and product sales 987 1 129 1,117 Total operating revenues 4,022 930 224 5,176 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 756 368 78 1,202 Cost of equipment and products 1,028 1 106 1,135 Selling, general and administrative 1,406 260 51 1,717 Depreciation, amortization and accretion 702 200 30 932 (Gain) loss on asset disposals, net 19 (7) — 12 (Gain) loss on sale of business and other exit costs, net (1) — — (1) Operating income (loss) 112 107 (40) 179 Equity in earnings of unconsolidated entities 166 — 2 168 Interest and dividend income 17 12 — 29 Interest expense (110) 3 (58) (165) Income (loss) before income taxes 185 122 (96) 211 Income tax expense (benefit) 52 30 (18) 64 Net income (loss) 133 92 (78) 147 Add back: Depreciation, amortization and accretion 702 200 30 932 (Gain) loss on asset disposals, net 19 (7) — 12 (Gain) loss on sale of business and other exit costs, net (1) — — (1) Interest expense 110 (3) 58 165 Income tax expense (benefit) 52 30 (18) 64 Adjusted EBITDA 1 $ 1,015 $ 313 $ (9) $ 1,319 Investments in unconsolidated entities $ 447 $ 4 $ 37 $ 488 Total assets $ 8,164 $ 2,196 $ 421 $ 10,781 Capital expenditures $ 710 $ 316 $ 6 $ 1,032 Numbers may not foot due to rounding. |
Supplemental Cash Flow Disclosu
Supplemental Cash Flow Disclosures | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Disclosures | Note 20 Supplemental Cash Flow Disclosures Following are supplemental cash flow disclosures regarding interest paid and income taxes paid. Year Ended December 31, 2021 2020 2019 (Dollars in millions) Interest paid $ 177 $ 160 $ 162 Income taxes paid, net of (refunds received) 6 (23) 44 Following are supplemental cash flow disclosures regarding transactions related to stock-based compensation awards. In certain situations, TDS and UScellular 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 UScellular then pay the amount of the required tax withholdings to the taxing authorities in cash. TDS: Year Ended December 31, 2021 2020 2019 (Dollars in millions) Common Shares withheld 223,000 153,000 814,000 Aggregate value of Common Shares withheld $ 5 $ 3 $ 29 Cash receipts upon exercise of stock options — — 2 Cash disbursements for payment of taxes (5) (3) (8) Net cash receipts (disbursements) from exercise of stock options and vesting of other stock awards $ (5) $ (3) $ (6) UScellular: Year Ended December 31, 2021 2020 2019 (Dollars in millions) Common Shares withheld 438,000 376,000 452,000 Aggregate value of Common Shares withheld $ 16 $ 11 $ 23 Cash receipts upon exercise of stock options — — 1 Cash disbursements for payment of taxes (16) (11) (10) Net cash receipts (disbursements) from exercise of stock options and vesting of other stock awards $ (16) $ (11) $ (9) |
Certain Relationships And Relat
Certain Relationships And Related Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Certain Relationships and Related Transactions | Note 21 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 UScellular, a subsidiary of TDS; and John P. Kelsh, the General Counsel and/or an Assistant Secretary of TDS and UScellular and certain other subsidiaries of TDS. Walter C.D. Carlson does not provide legal services to TDS or its subsidiaries. TDS, UScellular and their subsidiaries incurred legal costs from Sidley Austin LLP of $10 million, $11 million and $10 million in 2021, 2020 and 2019, 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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 UScellular 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 15 — Variable Interest Entities for additional information relating to TDS’ VIEs. 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. Restricted cash primarily consists of balances required under the receivables securitization agreement. See Note 12 — Debt for additional information related to the receivables securitization agreement. |
Accounts Receivable | UScellular’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 and third-party distributors for sales of equipment to them and by other wireless carriers whose customers have used UScellular’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 and data traffic, which TDS Telecom carries on its network. |
Allowance for Credit Losses | TDS estimates expected credit losses related to accounts receivable balances based on a review of available and relevant information including current economic conditions, projected economic conditions, historical loss experience, account aging, and other factors that could affect collectability. Expected credit losses are determined for each pool of accounts receivable balances that share similar risk characteristics. The allowance for credit losses is the best estimate of the amount of expected credit losses related to existing accounts receivable. 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. |
Cloud-Hosted Arrangements | TDS' cloud-hosted arrangements that are service contracts consist primarily of software used to perform administrative functions.These costs are amortized over the period of the service contract, which is generally three |
Licenses and Goodwill | Licenses Licenses consist of direct and incremental costs incurred in acquiring Federal Communications Commission (FCC) wireless spectrum licenses that generally provide UScellular 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 UScellular 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 UScellular 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, UScellular 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 units of accounting for geographic non-operating market wireless spectrum licenses (unbuilt wireless spectrum licenses). UScellular performed a qualitative impairment assessment to determine whether the wireless spectrum licenses were impaired. In 2021 and 2020, UScellular considered several qualitative factors, including analyst estimates of wireless spectrum license values which contemplated recent spectrum auction results, recent UScellular and other market participant transactions and other industry and market factors. Based on these assessments, UScellular concluded that it was more likely than not that the fair value of the wireless spectrum licenses in each unit of accounting exceeded their respective carrying values. Therefore, no quantitative impairment evaluation was completed. See Note 7 — Intangible Assets for additional details related to wireless spectrum licenses. Goodwill TDS has Goodwill as a result of past business acquisitions. 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. |
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. 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. |
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 TDS Telecom 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. |
Depreciation and Amortization | Depreciation is provided using the straight-line method over the estimated useful life of the related asset, except for certain TDS Telecom 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 2021, 2020 or 2019. However, in 2021, 2020 and 2019, 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. UScellular and TDS Telecom each have one asset group 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 | UScellular has relationships with agents, which are independent businesses that obtain customers for UScellular. At December 31, 2021 and 2020, UScellular had accrued $51 million and $55 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 UScellular's revolving credit agreements and UScellular'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 UScellular 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. 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, UScellular may offer certain promotions to incentivize customers to switch to, or to purchase additional services from, UScellular. 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. UScellular 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. 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 records such amounts as receivables, and then bills the customer under the terms of the respective contract. 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 $203 million, $213 million and $227 million in 2021, 2020 and 2019, 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.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. |
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 right-of-use assets or lease liabilities. |
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. TDS reviews the criteria for a controlling financial interest at the time it enters into agreements and subsequently when events warranting reconsideration occur. These VIEs have risks similar to those described in the “Risk Factors” in TDS’ Form 10-K for the year ended December 31, 2021. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Table) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 (Dollars in millions) Cash and cash equivalents $ 367 $ 1,429 Restricted cash included in Other current assets 47 23 Cash, cash equivalents and restricted cash in the statement of cash flows $ 414 $ 1,452 |
Implementation costs | Implementation costs related to TDS' cloud-hosted arrangements, which are recorded in Prepaid expenses and Other assets and deferred charges in the Consolidated Balance Sheet, were as follows: December 31, 2021 2020 (Dollars in millions) Implementation costs, gross $ 87 $ 69 Accumulated amortization (30) (13) Implementation costs, net $ 57 $ 56 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
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 and product sales are point in time. Year Ended December 31, 2021 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Revenues from contracts with customers: Type of service: Retail service 1 $ 2,765 $ — $ — $ 2,765 Inbound roaming 110 — — 110 Residential — 641 — 641 Commercial — 183 — 183 Wholesale — 178 — 178 Other service 157 — 73 230 Service revenues from contracts with customers 3,032 1,002 73 4,107 Equipment and product sales 1,007 1 105 1,113 Total revenues from contracts with customers 2 $ 4,039 $ 1,003 $ 178 $ 5,220 Year Ended December 31, 2020 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Revenues from contracts with customers: Type of service: Retail service $ 2,686 $ — $ — $ 2,686 Inbound roaming 152 — — 152 Residential — 594 — 594 Commercial — 194 — 194 Wholesale — 184 — 184 Other service 152 — 69 221 Service revenues from contracts with customers 2,990 972 69 4,031 Equipment and product sales 970 1 118 1,089 Total revenues from contracts with customers 2 $ 3,960 $ 973 $ 187 $ 5,120 Year Ended December 31, 2019 UScellular TDS Telecom 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 — 533 — 533 Commercial — 205 — 205 Wholesale — 188 — 188 Other service 137 — 72 209 Service revenues from contracts with customers 2,961 926 72 3,959 Equipment and product sales 987 1 129 1,117 Total revenues from contracts with customers 2 $ 3,948 $ 927 $ 201 $ 5,076 Numbers may not foot due to rounding. 1 During the third quarter of 2021, UScellular recorded a $9 million out-of-period error related to the timing of recognition of regulatory fee billings. This adjustment had the impact of increasing Service revenue by $9 million in 2021. UScellular determined that this adjustment was not material to any of the periods impacted. 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, 2021 2020 (Dollars in millions) Contract assets $ 10 $ 13 Contract liabilities $ 289 $ 216 |
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, 2021, 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) 2022 $ 400 2023 174 Thereafter 120 Total $ 694 |
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, 2021 2020 (Dollars in millions) Costs to obtain contracts Sales commissions $ 139 $ 139 Fulfillment costs Installation costs 10 10 Total contract cost assets $ 149 $ 149 |
Fair Value Measurements (Table)
Fair Value Measurements (Table) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 December 31, 2020 Book Value Fair Value Book Value Fair Value (Dollars in millions) Long-term debt Retail 2 $ 1,500 $ 1,594 $ 2,753 $ 2,809 Institutional 2 535 659 535 707 Other 2 944 944 230 230 |
Equipment Installment Plans (Ta
Equipment Installment Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Equipment installment plan receivables | The following table summarizes equipment installment plan receivables. December 31, 2021 2020 (Dollars in millions) Equipment installment plan receivables, gross $ 1,085 $ 1,007 Allowance for credit losses (72) (78) Equipment installment plan receivables, net $ 1,013 $ 929 Net balance presented in the Consolidated Balance Sheet as: Accounts receivable — Customers and agents (Current portion) $ 639 $ 590 Other assets and deferred charges (Non-current portion) 374 339 Equipment installment plan receivables, net $ 1,013 $ 929 |
Equipment installment plan receivables credit categories | The balance and aging of the equipment installment plan receivables on a gross basis by credit category were as follows: December 31, 2021 December 31, 2020 Lowest Risk Lower Risk Slight Risk Higher Risk Total Lowest Risk Lower Risk Slight Risk Higher Risk Total (Dollars in millions) Unbilled $ 896 $ 94 $ 24 $ 5 $ 1,019 $ 819 $ 98 $ 22 $ 9 $ 948 Billed — current 40 5 1 1 47 36 5 1 1 43 Billed — past due 10 6 2 1 19 8 5 2 1 16 Total $ 946 $ 105 $ 27 $ 7 $ 1,085 $ 863 $ 108 $ 25 $ 11 $ 1,007 2019 2020 2021 Total (Dollars in millions) Lowest Risk $ 41 $ 278 $ 627 $ 946 Lower Risk 3 26 76 105 Slight Risk 1 4 22 27 Higher Risk — 1 6 7 Total $ 45 $ 309 $ 731 $ 1,085 |
Equipment installment plans allowance for credit losses | Activity for the years ended December 31, 2021 and 2020, in the allowance for credit losses for equipment installment plan receivables was as follows: 2021 2020 (Dollars in millions) Allowance for credit losses, beginning of year $ 78 $ 84 Bad debts expense 38 50 Write-offs, net of recoveries (44) (56) Allowance for credit losses, end of year $ 72 $ 78 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income taxes receivable (payable) | TDS’ current income taxes balances at December 31, 2021 and 2020, were as follows: December 31, 2021 2020 (Dollars in millions) Federal income taxes receivable $ 179 $ 180 Net state income taxes receivable 5 7 |
Income tax expense (benefit) | Income tax expense (benefit) is summarized as follows: Year Ended December 31, 2021 2020 2019 (Dollars in millions) Current Federal $ 2 $ (175) $ 15 State (21) 4 15 Deferred Federal 59 179 36 State (7) 11 (2) Total income tax expense (benefit) $ 33 $ 19 $ 64 |
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, 2021 2020 2019 Amount Rate Amount Rate Amount Rate (Dollars in millions) Statutory federal income tax expense and rate $ 47 21.0 % $ 60 21.0 % $ 44 21.0 % State income taxes, net of federal benefit 1 (23) (10.3) 11 4.0 12 5.5 Change in federal valuation allowance 2 7 3.1 — — 7 3.1 Loss carryback benefit of CARES Act 3 — — (60) (21.0) — — Nondeductible compensation 6 2.9 9 3.0 4 1.9 Tax credits (2) (0.8) (2) (0.6) (4) (1.9) Other differences, net (2) (0.8) 1 — 1 0.7 Total income tax expense (benefit) and rate $ 33 15.1 % $ 19 6.4 % $ 64 30.3 % 1 State income taxes, net of federal benefit, include changes in unrecognized tax benefits as well as adjustments to state valuation allowances. State taxes in 2021 are a net benefit due primarily to the reduction of tax accruals resulting from expirations of state statute of limitations for prior tax years. 2 Change in federal valuation allowance is due primarily to interest expense carryforwards from partnership investments that may not be realized. |
Deferred income tax assets and liabilities | Significant components of TDS’ deferred income tax assets and liabilities at December 31, 2021 and 2020, were as follows: December 31, 2021 2020 (Dollars in millions) Deferred tax assets Net operating loss (NOL) carryforwards $ 226 $ 183 Lease liabilities 277 257 Asset retirement obligation 101 81 Other 157 109 Total deferred tax assets 761 630 Less valuation allowance (149) (158) Net deferred tax assets 612 472 Deferred tax liabilities Property, plant and equipment 751 652 Licenses/intangibles 364 287 Partnership investments 155 144 Lease assets 255 235 Other 6 17 Total deferred tax liabilities 1,531 1,335 Net deferred income tax liability $ 919 $ 863 Presented in the Consolidated Balance Sheet as: Deferred income tax liability, net $ 921 $ 863 Other assets and deferred charges (2) — Net deferred income tax liability $ 919 $ 863 |
Deferred tax valuation allowance | A summary of TDS' deferred tax asset valuation allowance is as follows: 2021 2020 2019 (Dollars in millions) Balance at beginning of year $ 158 $ 152 $ 135 Charged to Income tax expense (9) 6 17 Balance at end of year $ 149 $ 158 $ 152 |
Income tax unrecognized benefits summary | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2021 2020 2019 (Dollars in millions) Unrecognized tax benefits balance at beginning of year $ 54 $ 49 $ 49 Additions for tax positions of current year 8 8 8 Additions for tax positions of prior years — 3 — Reductions for tax positions of prior years (3) (1) (7) Reductions for settlements of tax positions (2) — (1) Reductions for lapses in statutes of limitations (20) (5) — Unrecognized tax benefits balance at end of year $ 37 $ 54 $ 49 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per share | The amounts used in computing basic and diluted earnings per share attributable to TDS common shareholders were as follows: Year Ended December 31, 2021 2020 2019 (Dollars and shares in millions, except per share amounts) Net income attributable to TDS common shareholders used in basic earnings per share $ 117 $ 226 $ 121 Adjustments to compute diluted earnings: Noncontrolling interest adjustment (1) (3) (1) Net income attributable to TDS common shareholders used in diluted earnings per share $ 116 $ 223 $ 120 Weighted average number of shares used in basic earnings per share: Common Shares 108 107 107 Series A Common Shares 7 7 7 Total 115 114 114 Effects of dilutive securities 1 1 2 Weighted average number of shares used in diluted earnings per share 116 115 116 Basic earnings per share attributable to TDS common shareholders $ 1.03 $ 1.97 $ 1.06 Diluted earnings per share attributable to TDS common shareholders $ 1.00 $ 1.93 $ 1.03 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Licenses | Activity related to TDS' Licenses is presented below. UScellular TDS Telecom Total (Dollars in millions) Balance at December 31, 2019 $ 2,475 $ 5 $ 2,480 Acquisitions 171 — 171 Divestitures (18) — (18) Capitalized interest 5 — 5 Balance at December 31, 2020 2,633 5 2,638 Acquisitions 1,464 — 1,464 Transferred to Assets held for sale (18) — (18) Capitalized interest 13 — 13 Balance at December 31, 2021 $ 4,092 $ 5 $ 4,097 |
Other intangible assets | Activity related to TDS' Other intangible assets is presented below. December 31, 2021 December 31, 2020 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount (Dollars in millions) Franchise rights $ 255 $ (68) $ 187 $ 255 $ (51) $ 204 Customer lists and Trade name 27 (23) 4 29 (20) 9 Other 6 — 6 — — — Total $ 288 $ (91) $ 197 $ 284 $ (71) $ 213 |
Investments in Unconsolidated_2
Investments in Unconsolidated Entities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Entities | 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, 2021 2020 (Dollars in millions) Equity method investments: Capital contributions, loans, advances and adjustments $ 115 $ 115 Cumulative share of income 2,460 2,278 Cumulative share of distributions (2,118) (1,937) Total equity method investments 457 456 Measurement alternative method investments 22 21 Total investments in unconsolidated entities $ 479 $ 477 The following tables, which are based on unaudited 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, 2021 2020 (Dollars in millions) Assets Current $ 1,257 $ 1,232 Noncurrent 6,189 5,908 Total assets $ 7,446 $ 7,140 Liabilities and Equity Current liabilities $ 710 $ 646 Noncurrent liabilities 1,260 1,124 Partners’ capital and shareholders’ equity 5,476 5,370 Total liabilities and equity $ 7,446 $ 7,140 Year Ended December 31, 2021 2020 2019 (Dollars in millions) Results of Operations Revenues $ 7,127 $ 6,702 $ 6,929 Operating expenses 5,152 4,753 5,043 Operating income 1,975 1,949 1,886 Other income (expense), net 14 13 (24) Net income $ 1,989 $ 1,962 $ 1,862 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and 2020, were as follows: December 31, Useful Lives (Years) 2021 2020 (Dollars in millions) Land N/A $ 62 $ 56 Buildings 5-40 541 533 Leasehold and land improvements 1-30 1,476 1,404 Cable and wire 15-40 2,403 2,195 Network and switching equipment 3-10 2,671 2,634 Cell site equipment 7-25 4,150 4,017 Office furniture and equipment 3-10 346 394 Other operating assets and equipment 1-12 176 189 System development 1-7 1,864 1,709 Work in process N/A 576 528 Total property, plant and equipment, gross 14,265 13,659 Accumulated depreciation and amortization (9,904) (9,687) Total property, plant and equipment, net $ 4,361 $ 3,972 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Components of lease expense | The following table shows the components of lease cost included in the Consolidated Statement of Operations: Year Ended December 31, 2021 2020 2019 (Dollars in millions) Operating lease cost $ 198 $ 184 $ 177 Variable lease cost 10 11 8 Total $ 208 $ 195 $ 185 |
Supplemental cash flow information related to leases | The following table shows supplemental cash flow information related to lease activities: Year Ended December 31, 2021 2020 2019 (Dollars in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 204 $ 188 $ 172 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 188 $ 157 $ 132 |
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 operating leases: December 31, 2021 2020 Weighted Average Remaining Lease Term 12 years 12 years Weighted Average Discount Rate 3.8 % 4.1 % |
Maturities of lease liabilities | The maturities of lease liabilities are as follows: Operating Leases (Dollars in millions) 2022 $ 178 2023 178 2024 156 2025 129 2026 96 Thereafter 713 Total lease payments 1 $ 1,450 Less: Imputed interest 349 Present value of lease liabilities $ 1,101 1 Lease payments exclude $34 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 December 31, 2021 2020 2019 (Dollars in millions) Operating lease income 1 $ 109 $ 105 $ 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) 2022 $ 87 2023 84 2024 58 2025 37 2026 19 Thereafter 30 Total future lease maturities $ 315 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Asset Retirement Obligation [Abstract] | |
Asset retirement obligations | The results of the reviews and other changes in asset retirement obligations during 2021 and 2020, were as follows: 2021 2020 (Dollars in millions) Balance at beginning of year $ 377 $ 342 Additional liabilities accrued 28 5 Revisions in estimated cash outflows 42 11 Disposition of assets (1) (1) Accretion expense 23 20 Balance at end of year $ 469 $ 377 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Revolving credit facilities | The following table summarizes the revolving credit agreements as of December 31, 2021: TDS UScellular (Dollars in millions) Maximum borrowing capacity $ 400 $ 300 Letters of credit outstanding $ 1 $ — Amount borrowed $ — $ — Amount available for use $ 399 $ 300 The following table summarizes the term loan credit agreements as of December 31, 2021: TDS UScellular (Dollars in millions) Maximum borrowing capacity $ 500 $ 800 Amount borrowed and outstanding $ 200 $ 299 Amount borrowed and repaid $ — $ 1 Amount available for use $ 300 $ 500 |
Long-term debt | Long-term debt as of December 31, 2021 and 2020, was as follows: December 31, 2021 December 31, 2020 Issuance date Redemption date Maturity date Call date (any time on or after) Principal Amount Less Total Principal Amount Less Unamortized discount and debt issuance costs Total (Dollars in millions) TDS Unsecured Senior Notes 6.625% Mar 2005 Sep 2021 Mar 2045 Mar 2010 $ — $ — $ — $ 116 $ 3 $ 113 6.875% Nov 2010 May 2021 Nov 2059 Nov 2015 — — — 225 7 218 7.000% Mar 2011 May 2021 Mar 2060 Mar 2016 — — — 300 9 291 5.875% Dec 2012 Oct 2021 Dec 2061 Dec 2017 — — — 195 7 188 UScellular Unsecured Senior Notes 6.700% Dec 2003 Dec 2033 Dec 2003 $ 544 $ 12 $ 532 $ 544 $ 13 $ 531 6.950% May 2011 Sep 2021 May 2060 May 2016 — — — 342 11 331 7.250% Dec 2014 May 2021 Dec 2063 Dec 2019 — — — 275 10 265 7.250% Nov 2015 Jun 2021 Dec 2064 Dec 2020 — — — 300 10 290 6.250% Aug 2020 Sep 2069 Sep 2025 500 17 483 500 17 483 5.500% Dec 2020 Mar 2070 Mar 2026 500 17 483 500 17 483 5.500% May 2021 Jun 2070 Jun 2026 500 16 484 — — — UScellular Term Loan 299 3 296 83 3 80 TDS Term Loan 200 2 198 125 2 123 EIP Securitization 450 — 450 25 — 25 Finance lease obligations 7 — 7 7 — 7 Other long-term notes 1 — 1 1 — 1 Total long-term debt $ 3,001 $ 67 $ 2,934 $ 3,538 $ 109 $ 3,429 Long-term debt, current $ 6 $ 5 Long-term debt, noncurrent $ 2,928 $ 3,424 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 (Dollars in millions) Assets Cash and cash equivalents $ 22 $ 18 Short-term investments — 3 Accounts receivable 692 638 Inventory, net 2 3 Other current assets 44 21 Licenses 637 637 Property, plant and equipment, net 108 99 Operating lease right-of-use assets 42 37 Other assets and deferred charges 382 347 Total assets $ 1,929 $ 1,803 Liabilities Current liabilities $ 28 $ 26 Long-term operating lease liabilities 37 34 Other deferred liabilities and credits 23 19 Total liabilities 1 $ 88 $ 79 1 Total liabilities does not include amounts borrowed under the receivables securitization agreement. See Note 12 – Debt for additional information. |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 UScellular on TDS’ equity: Year Ended December 31, 2021 2020 2019 (Dollars in millions) Net income attributable to TDS shareholders $ 156 $ 226 $ 121 Transfers (to) from noncontrolling interests Change in TDS’ Capital in excess of par value from UScellular's issuance of UScellular shares (49) (38) (23) Change in TDS’ Capital in excess of par value from UScellular’s repurchases of UScellular shares 17 14 6 Purchase of ownership in subsidiaries from noncontrolling interests — (9) — Net transfers (to) from noncontrolling interests (32) (33) (17) Net income attributable to TDS shareholders after transfers (to) from noncontrolling interests $ 124 $ 193 $ 104 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-based compensation | The following table summarizes stock-based compensation expense recognized during 2021, 2020 and 2019: Year Ended December 31, 2021 2020 2019 (Dollars in millions) Stock option awards $ 2 $ 3 $ 3 Restricted stock unit awards 29 30 33 Performance share unit awards 16 17 21 Deferred compensation bonus and matching stock unit awards — 1 — Awards under Non-Employee Director compensation plan 2 2 2 Total stock-based compensation, before income taxes 49 53 59 Income tax benefit (12) (13) (15) Total stock-based compensation expense, net of income taxes $ 37 $ 40 $ 44 |
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, 2021 2020 2019 (Dollars in millions) Selling, general and administrative expense $ 44 $ 48 $ 54 Cost of services expense 5 5 5 Total stock-based compensation expense $ 49 $ 53 $ 59 |
Stock-based compensation, fair value assumptions | TDS estimated the fair value of stock options granted in 2021, 2020 and 2019 using the Black-Scholes valuation model and the assumptions shown in the table below: 2021 2020 2019 Expected life 6.3 years 6.2 years 6.2 years Expected annual volatility rate 36.6 % 35.0 % 29.0 % Dividend yield 2.8 % 3.6 % 2.1 % Risk-free interest rate 1.1 % 0.5 % 2.4 % |
Summary of stock options | A summary of TDS stock options (total and portion exercisable) and changes during 2021 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, 2020 4,286,000 $ 25.94 Granted 289,000 $ 25.36 Exercised (23,000) $ 21.54 Forfeited (6,000) $ 23.75 Expired (458,000) $ 29.73 Outstanding at December 31, 2021 4,088,000 $ 25.50 $ — 4.2 (3,264,000 exercisable) $ 25.91 $ — 3.1 |
Summary of nonvested restricted stock units | A summary of TDS nonvested restricted stock units and changes during 2021 is presented in the table below: Common Restricted Stock Units Number Weighted Average Grant Date Fair Value Nonvested at December 31, 2020 1,496,000 $ 22.26 Granted 580,000 $ 23.34 Vested (451,000) $ 23.69 Forfeited (33,000) $ 22.08 Nonvested at December 31, 2021 1,592,000 $ 22.25 A summary of UScellular nonvested restricted stock units and changes during 2021 is presented in the table below: Common Restricted Stock Units Number Weighted Average Grant Date Fair Value Nonvested at December 31, 2020 1,660,000 $ 36.43 Granted 672,000 $ 36.68 Vested (609,000) $ 39.10 Forfeited (122,000) $ 35.77 Nonvested at December 31, 2021 1,601,000 $ 35.57 |
Summary of nonvested performance share units | A summary of TDS nonvested performance share units and changes during 2021 is presented in the table below: Common Performance Share Units Number Weighted Average Grant Date Fair Value Nonvested at December 31, 2020 924,000 $ 23.18 Granted 303,000 $ 25.36 Vested (152,000) $ 25.70 Change in units based on approved performance factors 38,000 $ 25.70 Forfeited (61,000) $ 24.36 Accumulated dividend equivalents 33,000 $ 23.29 Nonvested at December 31, 2021 1,085,000 $ 23.46 A summary of UScellular’s nonvested performance share units and changes during 2021 is presented in the table below: Common Performance Share Units Number Weighted Average Grant Date Fair Value Nonvested at December 31, 2020 1,305,000 $ 36.60 Granted 394,000 $ 37.67 Vested (601,000) $ 39.50 Change in units based on approved performance factors 42,000 $ 28.94 Forfeited (91,000) $ 35.13 Nonvested at December 31, 2021 1,049,000 $ 35.17 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Business segment information | Financial data for TDS’ reportable segments for 2021, 2020 and 2019, is as follows. See Note 1 — Summary of Significant Accounting Policies for additional information. Year ended or as of December 31, 2021 UScellular TDS Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 3,115 $ 1,005 $ 96 $ 4,216 Equipment and product sales 1,007 1 105 1,113 Total operating revenues 4,122 1,006 201 5,329 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 790 404 73 1,267 Cost of equipment and products 1,118 1 86 1,205 Selling, general and administrative 1,345 291 41 1,677 Depreciation, amortization and accretion 678 198 19 895 (Gain) loss on asset disposals, net 23 2 1 26 (Gain) loss on sale of business and other exit costs, net (2) — — (2) Operating income (loss) 170 110 (19) 261 Equity in earnings of unconsolidated entities 179 — 3 182 Interest and dividend income 6 1 4 11 Interest expense (175) 5 (62) (232) Other, net — (1) — (1) Income (loss) before income taxes 180 114 (73) 221 Income tax expense (benefit) 20 24 (11) 33 Net income (loss) 160 90 (62) 188 Add back: Depreciation, amortization and accretion 678 198 19 895 (Gain) loss on asset disposals, net 23 2 1 26 (Gain) loss on sale of business and other exit costs, net (2) — — (2) Interest expense 175 (5) 62 232 Income tax expense (benefit) 20 24 (11) 33 Adjusted EBITDA 1 $ 1,054 $ 310 $ 8 $ 1,372 Investments in unconsolidated entities $ 439 $ 4 $ 36 $ 479 Total assets $ 10,341 $ 2,645 $ 507 $ 13,493 Capital expenditures $ 780 $ 411 $ 10 $ 1,201 Year Ended or as of December 31, 2020 UScellular TDS Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 3,067 $ 975 $ 94 $ 4,136 Equipment and product sales 970 1 118 1,089 Total operating revenues 4,037 976 212 5,225 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 782 392 70 1,244 Cost of equipment and products 1,011 1 98 1,110 Selling, general and administrative 1,368 270 43 1,681 Depreciation, amortization and accretion 683 203 23 909 (Gain) loss on asset disposals, net 25 1 1 27 (Gain) loss on license sales and exchanges, net (5) — — (5) Operating income (loss) 173 110 (24) 259 Equity in earnings of unconsolidated entities 179 — 2 181 Interest and dividend income 8 5 2 15 Gain (loss) on investments 2 — — 2 Interest expense (112) 4 (60) (168) Other, net — (1) — (1) Income (loss) before income taxes 250 117 (79) 288 Income tax expense (benefit) 17 18 (16) 19 Net income (loss) 233 100 (64) 269 Add back: Depreciation, amortization and accretion 683 203 23 909 (Gain) loss on asset disposals, net 25 1 1 27 (Gain) loss on license sales and exchanges, net (5) — — (5) Gain (loss) on investments (2) — — (2) Interest expense 112 (4) 60 168 Income tax expense (benefit) 17 18 (16) 19 Adjusted EBITDA 1 $ 1,063 $ 317 $ 5 $ 1,385 Investments in unconsolidated entities $ 435 $ 4 $ 38 $ 477 Total assets $ 9,681 $ 2,359 $ 485 $ 12,525 Capital expenditures $ 940 $ 368 $ 9 $ 1,317 Year Ended or as of December 31, 2019 UScellular TDS Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 3,035 $ 928 $ 96 $ 4,059 Equipment and product sales 987 1 129 1,117 Total operating revenues 4,022 930 224 5,176 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 756 368 78 1,202 Cost of equipment and products 1,028 1 106 1,135 Selling, general and administrative 1,406 260 51 1,717 Depreciation, amortization and accretion 702 200 30 932 (Gain) loss on asset disposals, net 19 (7) — 12 (Gain) loss on sale of business and other exit costs, net (1) — — (1) Operating income (loss) 112 107 (40) 179 Equity in earnings of unconsolidated entities 166 — 2 168 Interest and dividend income 17 12 — 29 Interest expense (110) 3 (58) (165) Income (loss) before income taxes 185 122 (96) 211 Income tax expense (benefit) 52 30 (18) 64 Net income (loss) 133 92 (78) 147 Add back: Depreciation, amortization and accretion 702 200 30 932 (Gain) loss on asset disposals, net 19 (7) — 12 (Gain) loss on sale of business and other exit costs, net (1) — — (1) Interest expense 110 (3) 58 165 Income tax expense (benefit) 52 30 (18) 64 Adjusted EBITDA 1 $ 1,015 $ 313 $ (9) $ 1,319 Investments in unconsolidated entities $ 447 $ 4 $ 37 $ 488 Total assets $ 8,164 $ 2,196 $ 421 $ 10,781 Capital expenditures $ 710 $ 316 $ 6 $ 1,032 Numbers may not foot due to rounding. |
Supplemental Cash Flow Disclo_2
Supplemental Cash Flow Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 2019 (Dollars in millions) Interest paid $ 177 $ 160 $ 162 Income taxes paid, net of (refunds received) 6 (23) 44 |
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 UScellular 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 UScellular then pay the amount of the required tax withholdings to the taxing authorities in cash. TDS: Year Ended December 31, 2021 2020 2019 (Dollars in millions) Common Shares withheld 223,000 153,000 814,000 Aggregate value of Common Shares withheld $ 5 $ 3 $ 29 Cash receipts upon exercise of stock options — — 2 Cash disbursements for payment of taxes (5) (3) (8) Net cash receipts (disbursements) from exercise of stock options and vesting of other stock awards $ (5) $ (3) $ (6) UScellular: Year Ended December 31, 2021 2020 2019 (Dollars in millions) Common Shares withheld 438,000 376,000 452,000 Aggregate value of Common Shares withheld $ 16 $ 11 $ 23 Cash receipts upon exercise of stock options — — 1 Cash disbursements for payment of taxes (16) (11) (10) Net cash receipts (disbursements) from exercise of stock options and vesting of other stock awards $ (16) $ (11) $ (9) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | ||||
Dec. 31, 2021USD ($)unitreporting_unitasset_group | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Basis of presentation | |||||
Number of wireless connections | 5,000,000 | ||||
Number of wireline and cable connections | 1,200,000 | ||||
Change in reportable segments | During the first quarter of 2021, TDS modified its reporting segment structure to combine its Wireline and Cable segments into a single reportable segment for TDS Telecom. TDS Telecom believes this presentation better articulates its progress and performance against its strategy, which includes a focus on overall broadband growth and future fiber deployment across its markets. This change also reflects TDS Telecom's progress in aligning its organizational, operational and support structures to leverage one cost base to better support its customers across all of its markets. Prior periods have been updated to conform to this revised presentation. See Note 19 — Business Segment Information for additional information on TDS' reportable segments. | ||||
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 | ||||
Cumulative effect of accounting changes | $ 2,812,000,000 | $ 2,802,000,000 | |||
Advertising costs | 203,000,000 | 213,000,000 | $ 227,000,000 | ||
Amortization of implementation costs | 17,000,000 | 11,000,000 | |||
ASC 842 | |||||
Basis of presentation | |||||
Cumulative effect of accounting changes | $ 2,000,000 | ||||
ASC 842 | Retained earnings | |||||
Basis of presentation | |||||
Cumulative effect of accounting changes | $ 2,000,000 | ||||
UScellular | |||||
Basis of presentation | |||||
Agent liability | $ 51,000,000 | 55,000,000 | |||
TDS Telecom | |||||
Basis of presentation | |||||
Number of reporting units | reporting_unit | 1 | ||||
Loss on impairment of goodwill | $ 0 | 0 | |||
Asset groups | asset_group | 1 | ||||
UScellular | |||||
Basis of presentation | |||||
Asset groups | asset_group | 1 | ||||
TDS Telecom | Franchise rights | |||||
Basis of presentation | |||||
Renewal period | 10 years | ||||
Licenses | |||||
Basis of presentation | |||||
Renewal period | 12 years | ||||
Licenses | UScellular | |||||
Basis of presentation | |||||
Impairment of intangible assets | $ 0 | $ 0 | |||
Minimum | |||||
Basis of presentation | |||||
Amortization period | 3 years | ||||
Minimum | ASC 842 | Retained earnings | |||||
Basis of presentation | |||||
Cumulative effect of accounting changes | $ 0 | ||||
Minimum | Leasehold Improvements | |||||
Basis of presentation | |||||
Useful life | 1 year | ||||
Minimum | Licenses | |||||
Basis of presentation | |||||
Renewal period | 10 years | ||||
Maximum | |||||
Basis of presentation | |||||
Amortization period | 5 years | ||||
Maximum | Leasehold Improvements | |||||
Basis of presentation | |||||
Useful life | 30 years | ||||
Maximum | Licenses | |||||
Basis of presentation | |||||
Renewal period | 15 years | ||||
UScellular | |||||
Basis of presentation | |||||
TDS ownership of UScellular | 82.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 367 | $ 1,429 | ||
Restricted cash included in Other current assets | 47 | 23 | ||
Cash, cash equivalents and restricted cash in the statement of cash flows | $ 414 | $ 1,452 | $ 474 | $ 927 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Cloud-Hosted Arrangements (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Implementation costs, gross | $ 87 | $ 69 |
Accumulated amortization | (30) | (13) |
Implementation costs, net | $ 57 | $ 56 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Amounts recorded gross in revenues that are billed to customers and remitted to governmental authorities | $ 95 | $ 82 | $ 78 |
Revenue recognized | 172 | ||
Amortization of contract cost assets | $ 116 | $ 120 | $ 126 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation Of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 5,220 | $ 5,120 | $ 5,076 |
Out-of-period adjustment | |||
Disaggregation of Revenue [Line Items] | |||
Immaterial error correction | During the third quarter of 2021, UScellular recorded a $9 million out-of-period error related to the timing of recognition of regulatory fee billings. This adjustment had the impact of increasing Service revenue by $9 million in 2021. UScellular determined that this adjustment was not material to any of the periods impacted. | ||
Transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 4,107 | 4,031 | 3,959 |
Transferred over time | Retail service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 2,765 | 2,686 | 2,650 |
Transferred over time | Inbound roaming | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 110 | 152 | 174 |
Transferred over time | Residential | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 641 | 594 | 533 |
Transferred over time | Commercial | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 183 | 194 | 205 |
Transferred over time | Wholesale | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 178 | 184 | 188 |
Transferred over time | Other service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 230 | 221 | 209 |
Transferred at point in time | Equipment and product sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1,113 | 1,089 | 1,117 |
UScellular | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 4,039 | 3,960 | 3,948 |
UScellular | Transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 3,032 | 2,990 | 2,961 |
UScellular | Transferred over time | Retail service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 2,765 | 2,686 | 2,650 |
UScellular | Transferred over time | Retail service | Out-of-period adjustment | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 9 | ||
UScellular | Transferred over time | Inbound roaming | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 110 | 152 | 174 |
UScellular | Transferred over time | Residential | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
UScellular | Transferred over time | Commercial | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
UScellular | Transferred over time | Wholesale | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
UScellular | Transferred over time | Other service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 157 | 152 | 137 |
UScellular | Transferred at point in time | Equipment and product sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1,007 | 970 | 987 |
TDS Telecom | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1,003 | 973 | 927 |
TDS Telecom | Transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1,002 | 972 | 926 |
TDS Telecom | Transferred over time | Retail service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
TDS Telecom | Transferred over time | Inbound roaming | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
TDS Telecom | Transferred over time | Residential | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 641 | 594 | 533 |
TDS Telecom | Transferred over time | Commercial | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 183 | 194 | 205 |
TDS Telecom | Transferred over time | Wholesale | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 178 | 184 | 188 |
TDS Telecom | Transferred over time | Other service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
TDS Telecom | Transferred at point in time | Equipment and product sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1 | 1 | 1 |
Corporate, Eliminations and Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 178 | 187 | 201 |
Corporate, Eliminations and Other | Transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 73 | 69 | 72 |
Corporate, Eliminations and Other | Transferred over time | Retail service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Corporate, Eliminations and Other | Transferred over time | Inbound roaming | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Corporate, Eliminations and Other | Transferred over time | Residential | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Corporate, Eliminations and Other | Transferred over time | Commercial | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Corporate, Eliminations and Other | Transferred over time | Wholesale | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Corporate, Eliminations and Other | Transferred over time | Other service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 73 | 69 | 72 |
Corporate, Eliminations and Other | Transferred at point in time | Equipment and product sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 105 | $ 118 | $ 129 |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 10 | $ 13 |
Contract liabilities | $ 289 | $ 216 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligations (Details) $ in Millions | Dec. 31, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 694 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 400 |
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]: 2023-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 174 |
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]: 2024-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 120 |
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, 2021 | Dec. 31, 2020 |
Contract cost assets | ||
Total contract cost assets | $ 149 | $ 149 |
Sales commissions | ||
Contract cost assets | ||
Total contract cost assets | 139 | 139 |
Installation costs | ||
Contract cost assets | ||
Total contract cost assets | $ 10 | $ 10 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Book Value | Retail | ||
Financial Instruments | ||
Long-term debt | $ 1,500 | $ 2,753 |
Book Value | Institutional | ||
Financial Instruments | ||
Long-term debt | 535 | 535 |
Book Value | Other | ||
Financial Instruments | ||
Long-term debt | 944 | 230 |
Fair Value | Level 2 | Retail | ||
Financial Instruments | ||
Long-term debt | 1,594 | 2,809 |
Fair Value | Level 2 | Institutional | ||
Financial Instruments | ||
Long-term debt | 659 | 707 |
Fair Value | Level 2 | Other | ||
Financial Instruments | ||
Long-term debt | $ 944 | $ 230 |
6.7% Senior Notes | UScellular | ||
Financial Instruments | ||
Interest rate on debt | 6.70% | |
Interest rate | Institutional and Other | Minimum | ||
Financial Instruments | ||
Fair value assumption, interest rate | 1.31% | 1.35% |
Interest rate | Institutional and Other | Maximum | ||
Financial Instruments | ||
Fair value assumption, interest rate | 4.40% | 3.75% |
Equipment Installment Plans - N
Equipment Installment Plans - Narrative (Details) | Dec. 31, 2021 |
Receivables [Abstract] | |
Past due | 30 days |
Equipment Installment Plans - E
Equipment Installment Plans - EIP Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Equipment installment plan receivables, gross | $ 1,085 | $ 1,007 |
Allowance for credit losses | (72) | (78) |
Equipment installment plan receivables, net | 1,013 | 929 |
Accounts receivable — Customers and agents (Current portion) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Equipment installment plan receivables, net | 639 | 590 |
Other assets and deferred charges (Non-current portion) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Equipment installment plan receivables, net | $ 374 | $ 339 |
Equipment Installment Plans - G
Equipment Installment Plans - Gross Receivables by Credit Category (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | $ 1,085 | $ 1,007 |
2019 | 45 | |
2020 | 309 | |
2021 | 731 | |
Unbilled | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 1,019 | 948 |
Billed | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 47 | 43 |
Billed | Past due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 19 | 16 |
Lowest Risk | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 946 | 863 |
2019 | 41 | |
2020 | 278 | |
2021 | 627 | |
Lowest Risk | Unbilled | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 896 | 819 |
Lowest Risk | Billed | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 40 | 36 |
Lowest Risk | Billed | Past due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 10 | 8 |
Lower Risk | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 105 | 108 |
2019 | 3 | |
2020 | 26 | |
2021 | 76 | |
Lower Risk | Unbilled | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 94 | 98 |
Lower Risk | Billed | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 5 | 5 |
Lower Risk | Billed | Past due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 6 | 5 |
Slight Risk | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 27 | 25 |
2019 | 1 | |
2020 | 4 | |
2021 | 22 | |
Slight Risk | Unbilled | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 24 | 22 |
Slight Risk | Billed | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 1 | 1 |
Slight Risk | Billed | Past due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 2 | 2 |
Higher Risk | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 7 | 11 |
2019 | 0 | |
2020 | 1 | |
2021 | 6 | |
Higher Risk | Unbilled | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 5 | 9 |
Higher Risk | Billed | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 1 | 1 |
Higher Risk | Billed | Past due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | $ 1 | $ 1 |
Equipment Installment Plans - A
Equipment Installment Plans - Allowance for Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for credit losses | ||
Allowance for credit losses, beginning of year | $ 78 | |
Allowance for credit losses, end of year | 72 | $ 78 |
Equipment Installment Plan Receivable | ||
Allowance for credit losses | ||
Allowance for credit losses, beginning of year | 78 | 84 |
Bad debts expense | 38 | 50 |
Write-offs, net of recoveries | (44) | (56) |
Allowance for credit losses, end of year | $ 72 | $ 78 |
Income Taxes - Balances (Detail
Income Taxes - Balances (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax [Line Items] | ||
Income taxes receivable | $ 184 | $ 187 |
Federal | ||
Income Tax [Line Items] | ||
Income taxes receivable | 179 | 180 |
State | ||
Income Tax [Line Items] | ||
Income taxes receivable | $ 5 | $ 7 |
Income Taxes - Expense (Benefit
Income Taxes - Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current | |||
Current federal income tax expense (benefit) | $ 2 | $ (175) | $ 15 |
Current state income tax expense | (21) | 4 | 15 |
Deferred | |||
Deferred federal income tax expense | 59 | 179 | 36 |
Deferred state income tax expense (benefit) | (7) | 11 | (2) |
Total income tax expense (benefit) | $ 33 | $ 19 | $ 64 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other income tax disclosures | |||
Effect of unrecognized tax benefit on income tax expense | $ 30 | $ 43 | $ 39 |
Interest expense and penalties related to unrecognized income tax expense | (10) | 2 | $ 3 |
Net accrued interest and penalties | 13 | $ 23 | |
State | |||
Operating loss carryforwards | |||
State NOL carryforwards | 3,149 | ||
Deferred income tax asset for State NOL carryforwards | 165 | ||
Federal | |||
Operating loss carryforwards | |||
Federal NOL carryforwards | 291 | ||
Deferred income tax asset for Federal NOL carryforwards | $ 61 |
Income Taxes - Expense Reconcil
Income Taxes - Expense Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income tax expense reconciliation | |||
Statutory federal income tax expense | $ 47 | $ 60 | $ 44 |
State income taxes, net of federal benefit | (23) | 11 | 12 |
Change in federal valuation allowance | 7 | 0 | 7 |
Loss carryback benefit of CARES Act | 0 | (60) | 0 |
Nondeductible compensation | 6 | 9 | 4 |
Tax credits | (2) | (2) | (4) |
Other differences, net | (2) | 1 | 1 |
Total income tax expense (benefit) | $ 33 | $ 19 | $ 64 |
Income tax rate reconciliation | |||
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal benefit | (10.30%) | 4.00% | 5.50% |
Change in federal valuation allowance | 3.10% | 0.00% | 3.10% |
Loss carryback benefit of CARES Act | 0.00% | (21.00%) | 0.00% |
Nondeductible compensation | 2.90% | 3.00% | 1.90% |
Tax credits | (0.80%) | (0.60%) | (1.90%) |
Other differences, net | (0.80%) | 0.00% | 0.70% |
Total income tax rate | 15.10% | 6.40% | 30.30% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Tax (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||
Net operating loss (NOL) carryforwards | $ 226 | $ 183 |
Lease liabilities | 277 | 257 |
Asset retirement obligation | 101 | 81 |
Other | 157 | 109 |
Total deferred tax assets | 761 | 630 |
Less valuation allowance | (149) | (158) |
Net deferred tax assets | 612 | 472 |
Deferred tax liabilities | ||
Property, plant and equipment | 751 | 652 |
Licenses/intangibles | 364 | 287 |
Partnership investments | 155 | 144 |
Lease assets | 255 | 235 |
Other | 6 | 17 |
Total deferred tax liabilities | 1,531 | 1,335 |
Net deferred income tax liability | 919 | 863 |
Other assets and deferred charges | ||
Deferred tax liabilities | ||
Net deferred income tax liability | (2) | 0 |
Deferred income tax liability, net | ||
Deferred tax liabilities | ||
Net deferred income tax liability | $ 921 | $ 863 |
Income Taxes - Deferred Tax Val
Income Taxes - Deferred Tax Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred tax valuation allowance, rollfoward | |||
Balance at beginning of year | $ 158 | ||
Balance at end of year | 149 | $ 158 | |
Deferred tax asset valuation allowance | |||
Deferred tax valuation allowance, rollfoward | |||
Balance at beginning of year | 158 | 152 | $ 135 |
Charged to Income tax expense | (9) | 6 | 17 |
Balance at end of year | $ 149 | $ 158 | $ 152 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of unrecognized income tax benefits | |||
Unrecognized tax benefits balance at beginning of year | $ 54 | $ 49 | $ 49 |
Additions for tax positions of current year | 8 | 8 | 8 |
Additions for tax positions of prior years | 0 | 3 | 0 |
Reductions for tax positions of prior years | (3) | (1) | (7) |
Reductions for settlements of tax positions | (2) | 0 | (1) |
Reductions for lapses in statutes of limitations | (20) | (5) | 0 |
Unrecognized tax benefits balance at end of year | $ 37 | $ 54 | $ 49 |
Earnings Per Share - Computatio
Earnings Per Share - Computation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings per share | |||
Net income attributable to TDS common shareholders used in basic earnings per share | $ 117 | $ 226 | $ 121 |
Noncontrolling interest adjustment | (1) | (3) | (1) |
Net income attributable to TDS common shareholders used in diluted earnings per share | $ 116 | $ 223 | $ 120 |
Weighted average number of shares used in basic earnings per share (in shares) | 115 | 114 | 114 |
Effects of dilutive securities (in shares) | 1 | 1 | 2 |
Weighted average number of shares used in diluted earnings per share (in shares) | 116 | 115 | 116 |
Basic earnings per share attributable to TDS common shareholders | $ 1.03 | $ 1.97 | $ 1.06 |
Diluted earnings per share attributable to TDS common shareholders | $ 1 | $ 1.93 | $ 1.03 |
Common Shares | |||
Earnings per share | |||
Weighted average number of shares used in basic earnings per share (in shares) | 108 | 107 | 107 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities (in shares) | 4 | 5 | 2 |
Intangible Assets - Schedules (
Intangible Assets - Schedules (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets | ||
Gross Amount | $ 288 | $ 284 |
Accumulated Amortization | (91) | (71) |
Net Amount | 197 | 213 |
Franchise rights | ||
Finite-Lived Intangible Assets | ||
Gross Amount | 255 | 255 |
Accumulated Amortization | (68) | (51) |
Net Amount | 187 | 204 |
Customer lists and Trade name | ||
Finite-Lived Intangible Assets | ||
Gross Amount | 27 | 29 |
Accumulated Amortization | (23) | (20) |
Net Amount | 4 | 9 |
Other | ||
Finite-Lived Intangible Assets | ||
Gross Amount | 6 | 0 |
Accumulated Amortization | 0 | 0 |
Net Amount | 6 | 0 |
Licenses | ||
Licenses | ||
Balance, beginning of period | 2,638 | 2,480 |
Acquisitions | 1,464 | 171 |
Transferred to Assets held for sale | (18) | |
Divestitures | (18) | |
Capitalized interest | 13 | 5 |
Balance, end of period | 4,097 | 2,638 |
Licenses | UScellular | ||
Licenses | ||
Balance, beginning of period | 2,633 | 2,475 |
Acquisitions | 1,464 | 171 |
Transferred to Assets held for sale | (18) | |
Divestitures | (18) | |
Capitalized interest | 13 | 5 |
Balance, end of period | 4,092 | 2,633 |
Licenses | TDS Telecom | ||
Licenses | ||
Balance, beginning of period | 5 | 5 |
Acquisitions | 0 | 0 |
Transferred to Assets held for sale | 0 | |
Divestitures | 0 | |
Capitalized interest | 0 | 0 |
Balance, end of period | $ 5 | $ 5 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) $ in Millions | Dec. 31, 2024USD ($) | Jan. 14, 2022USD ($)license | Dec. 31, 2021USD ($)license | Dec. 31, 2020USD ($)license | Dec. 31, 2019USD ($) |
Indefinite-lived Intangible Assets [Line Items] | |||||
Goodwill | $ 547 | $ 547 | |||
Amortization expense for intangible assets | 21 | 26 | $ 24 | ||
Estimated amortization expense | |||||
2022 | 20 | ||||
2023 | 20 | ||||
2024 | 17 | ||||
2025 | 17 | ||||
2026 | 17 | ||||
TDS Telecom | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Goodwill | 547 | $ 547 | |||
Accumulated impairment losses in prior periods | $ 29 | ||||
Auction 103 | UScellular | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Licenses won | license | 237 | ||||
Total winning bid | $ 146 | ||||
FCC upfront payment | $ 5 | ||||
Auction 107 | UScellular | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Licenses won | license | 254 | ||||
Total winning bid | $ 1,283 | ||||
FCC upfront payment | $ 30 | ||||
Cash paid for licenses | 36 | ||||
Auction 107 | UScellular | Subsequent Event | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Cash paid for licenses | $ 181 | ||||
Auction 110 | UScellular | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
FCC upfront payment | $ 20 | ||||
Auction 110 | UScellular | Subsequent Event | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Licenses won | license | 380 | ||||
Total winning bid | $ 580 |
Investments in Unconsolidated_3
Investments in Unconsolidated Entities (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||
Capital contributions, loans, advances and adjustments | $ 115 | $ 115 | |||||
Cumulative share of income | 2,460 | 2,278 | |||||
Cumulative share of distributions | (2,118) | (1,937) | |||||
Total equity method investments | 457 | 456 | |||||
Measurement alternative method investments | 22 | 21 | |||||
Total investments in unconsolidated entities | 479 | 477 | $ 488 | ||||
Assets | |||||||
Current | 2,044 | 3,026 | |||||
Assets | 13,493 | [1] | 12,525 | [1] | 10,781 | ||
Liabilities and Equity | |||||||
Current liabilities | 1,180 | 1,153 | |||||
Partners’ capital and shareholders’ equity | 6,734 | 5,593 | 5,404 | $ 5,293 | |||
Total liabilities and equity | [1] | 13,493 | 12,525 | ||||
Results of Operations | |||||||
Revenues | 5,329 | 5,225 | 5,176 | ||||
Operating expenses | 5,068 | 4,966 | 4,997 | ||||
Operating income | 261 | 259 | 179 | ||||
Net income | 188 | 269 | 147 | ||||
Equity Method Investments [Member] | |||||||
Assets | |||||||
Current | 1,257 | 1,232 | |||||
Noncurrent | 6,189 | 5,908 | |||||
Assets | 7,446 | 7,140 | |||||
Liabilities and Equity | |||||||
Current liabilities | 710 | 646 | |||||
Noncurrent liabilities | 1,260 | 1,124 | |||||
Partners’ capital and shareholders’ equity | 5,476 | 5,370 | |||||
Total liabilities and equity | 7,446 | 7,140 | |||||
Results of Operations | |||||||
Revenues | 7,127 | 6,702 | 6,929 | ||||
Operating expenses | 5,152 | 4,753 | 5,043 | ||||
Operating income | 1,975 | 1,949 | 1,886 | ||||
Other income (expense), net | 14 | 13 | (24) | ||||
Net income | $ 1,989 | $ 1,962 | $ 1,862 | ||||
[1] | The consolidated total assets as of December 31, 2021 and 2020, include assets held by consolidated variable interest entities (VIEs) of $1,456 million and $1,042 million, respectively, which are not available to be used to settle the obligations of TDS. The consolidated total liabilities as of December 31, 2021 and 2020, include certain liabilities of consolidated VIEs of $21 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of TDS. See Note 15 — Variable Interest Entities for additional information. |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Land | $ 62 | $ 56 | |
Buildings | 541 | 533 | |
Leasehold and land improvements | 1,476 | 1,404 | |
Cable and wire | 2,403 | 2,195 | |
Network and switching equipment | 2,671 | 2,634 | |
Cell site equipment | 4,150 | 4,017 | |
Office furniture and equipment | 346 | 394 | |
Other operating assets and equipment | 176 | 189 | |
System development | 1,864 | 1,709 | |
Work in process | 576 | 528 | |
Total property, plant and equipment, gross | 14,265 | 13,659 | |
Accumulated depreciation and amortization | (9,904) | (9,687) | |
Property, plant and equipment, net | 4,361 | 3,972 | |
Depreciation and amortization expense | 851 | 862 | $ 890 |
(Gain) loss on asset disposals, net | $ 26 | $ 27 | $ 12 |
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 | 40 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 | 10 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 | 1 year | ||
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 - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lease, Cost [Abstract] | |||
Operating lease cost | $ 198 | $ 184 | $ 177 |
Variable lease cost | 10 | 11 | 8 |
Total lease cost | $ 208 | $ 195 | $ 185 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 204 | $ 188 | $ 172 |
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | $ 188 | $ 157 | $ 132 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Weighted Average Remaining Lease Term | ||
Operating leases | 12 years | 12 years |
Weighted Average Discount Rate | ||
Operating leases | 3.80% | 4.10% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Millions | Dec. 31, 2021USD ($) |
Operating Leases | |
2022 | $ 178 |
2023 | 178 |
2024 | 156 |
2025 | 129 |
2026 | 96 |
Thereafter | 713 |
Total lease payments | 1,450 |
Less: Imputed interest | 349 |
Present value of lease liabilities | 1,101 |
Legally binding lease payments for leases signed but not yet commenced | $ 34 |
Leases - Components of Lease In
Leases - Components of Lease Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases | |||
Operating lease income | $ 109 | $ 105 | $ 100 |
Other service revenues | Tower leases out of period adjustment | |||
Leases | |||
Operating lease income | $ 5 | ||
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. |
Leases - Maturities of Expected
Leases - Maturities of Expected Lease Revenues (Details) $ in Millions | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 87 |
2023 | 84 |
2024 | 58 |
2025 | 37 |
2026 | 19 |
Thereafter | 30 |
Total future lease maturities | $ 315 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Asset retirement obligations | ||
Balance at beginning of year | $ 377 | $ 342 |
Additional liabilities accrued | 28 | 5 |
Revisions in estimated cash outflows | 42 | 11 |
Disposition of assets | (1) | (1) |
Accretion expense | 23 | 20 |
Balance at end of year | $ 469 | $ 377 |
Debt - Revolving Credit Agreeme
Debt - Revolving Credit Agreements (Details) | Feb. 04, 2022USD ($) | Jan. 04, 2022USD ($) | Dec. 31, 2021USD ($) |
TDS Revolving Credit Agreement | |||
Revolving credit | |||
Maximum borrowing capacity | $ 400,000,000 | ||
Letters of credit outstanding | 1,000,000 | ||
Amounts borrowed | 0 | ||
Amount available for use | $ 399,000,000 | ||
TDS Revolving Credit Agreement | LIBOR rate | |||
Revolving credit | |||
Contractual spread | 1.50% | ||
UScellular Revolving Credit Agreement | |||
Revolving credit | |||
Maximum borrowing capacity | $ 300,000,000 | ||
Letters of credit outstanding | 0 | ||
Amounts borrowed | 0 | ||
Amount available for use | $ 300,000,000 | ||
UScellular Revolving Credit Agreement | Subsequent Event | |||
Revolving credit | |||
Amounts repaid | $ 75,000,000 | ||
Amount borrowed | $ 75,000,000 | ||
UScellular Revolving Credit Agreement | SOFR Rate | |||
Revolving credit | |||
Contractual spread | 1.60% | ||
TDS and UScellular Revolving Credit Agreements | |||
Revolving credit | |||
Consolidated interest coverage ratio | 3 | ||
Consolidated leverage ratio | 3.75 | ||
Subordination Agreement | UScellular Revolving Credit Agreement | |||
Revolving credit | |||
Consolidated funded indebtedness | $ 0 | ||
Refinancing indebtedness | 0 | ||
Subordination Agreement | UScellular Revolving Credit Agreement | Maximum | |||
Revolving credit | |||
Consolidated funded indebtedness | 105,000,000 | ||
Refinancing indebtedness | $ 250,000,000 |
Debt - Term Loan Agreements (De
Debt - Term Loan Agreements (Details) - USD ($) | Dec. 01, 2026 | Mar. 01, 2026 | Mar. 01, 2024 | Mar. 01, 2023 | Dec. 01, 2022 | Feb. 04, 2022 | Jan. 28, 2022 | Dec. 31, 2021 |
TDS Term Loan Agreement | ||||||||
Long-term debt | ||||||||
Maximum borrowing capacity | $ 500,000,000 | |||||||
Amount borrowed and outstanding | 200,000,000 | |||||||
Amount borrowed and repaid | 0 | |||||||
Amount available for use | 300,000,000 | |||||||
Repayment of long-term debt | 500,000 | |||||||
UScellular Term Loan Agreements | ||||||||
Long-term debt | ||||||||
Maximum borrowing capacity | 800,000,000 | |||||||
Amount borrowed and outstanding | 299,000,000 | |||||||
Amount borrowed and repaid | 1,000,000 | |||||||
Amount available for use | 500,000,000 | |||||||
TDS Term Loan Agreement Amendment | ||||||||
Long-term debt | ||||||||
Borrowing capacity increase | 300,000,000 | |||||||
TDS Term Loan Agreement Amendment | Subsequent Event | ||||||||
Long-term debt | ||||||||
Repayment of long-term debt rate | 0.625% | 0.25% | ||||||
Amount borrowed | $ 150,000,000 | |||||||
UScellular Term Loan Agreement | ||||||||
Long-term debt | ||||||||
Repayment of long-term debt | 750,000 | |||||||
UScellular Term Loan Agreement Amendment | ||||||||
Long-term debt | ||||||||
Borrowing capacity increase | 200,000,000 | |||||||
UScellular Term Loan Agreement Amendment | Subsequent Event | ||||||||
Long-term debt | ||||||||
Repayment of long-term debt rate | 0.625% | 0.25% | ||||||
Amount borrowed | $ 100,000,000 | |||||||
UScellular 2021 Term Loan Agreement | ||||||||
Long-term debt | ||||||||
Maximum borrowing capacity | $ 300,000,000 | |||||||
UScellular 2021 Term Loan Agreement | Subsequent Event | ||||||||
Long-term debt | ||||||||
Repayment of long-term debt rate | 2.50% | 1.25% | 0.625% | |||||
Amount borrowed | $ 225,000,000 | |||||||
LIBOR rate | TDS Term Loan Agreement | ||||||||
Long-term debt | ||||||||
Contractual spread | 2.00% | |||||||
LIBOR rate | TDS Term Loan Agreement Amendment | ||||||||
Long-term debt | ||||||||
Contractual spread | 2.50% | |||||||
SOFR Rate | UScellular Term Loan Agreement Amendment | ||||||||
Long-term debt | ||||||||
Contractual spread | 2.60% | |||||||
SOFR Rate | UScellular 2021 Term Loan Agreement | ||||||||
Long-term debt | ||||||||
Contractual spread | 1.60% | |||||||
UScellular | SOFR Rate | UScellular Term Loan Agreement | ||||||||
Long-term debt | ||||||||
Contractual spread | 2.10% | |||||||
Subordination Agreement | UScellular Term Loan Agreement | UScellular | ||||||||
Long-term debt | ||||||||
Consolidated funded indebtedness | $ 0 | |||||||
Refinancing indebtedness | $ 0 |
Debt - Export Credit Financing
Debt - Export Credit Financing Agreement (Details) - Export credit financing agreement - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Jan. 14, 2022 | |
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 150,000,000 | |
Amount available for use | 150,000,000 | |
Subordination Agreement | ||
Debt Instrument [Line Items] | ||
Consolidated funded indebtedness | 0 | |
Refinancing indebtedness | $ 0 | |
Subsequent Event | ||
Debt Instrument [Line Items] | ||
Amounts borrowed | $ 150,000,000 | |
SOFR Rate | ||
Debt Instrument [Line Items] | ||
Contractual spread | 1.60% |
Debt - Receivables Securitizati
Debt - Receivables Securitization Agreement (Details) - UScellular - Receivables securitization agreement $ in Millions | Dec. 31, 2021USD ($) |
Debt Instrument [Line Items] | |
Amounts borrowed | $ 450 |
Maximum borrowing capacity | 450 |
Assets available to be pledged | $ 638 |
Debt - Repurchase Agreement (De
Debt - Repurchase Agreement (Details) - Repurchase Agreement - Subsequent Event - USD ($) $ in Millions | Jan. 27, 2022 | Feb. 02, 2022 | Jan. 31, 2022 |
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 200 | ||
Assets available for inclusion | $ 455 | ||
Amounts borrowed | $ 60 | ||
SOFR Rate | |||
Debt Instrument [Line Items] | |||
Contractual spread | 1.25% |
Debt - Long-Term Debt (Details)
Debt - Long-Term Debt (Details) - USD ($) $ in Millions | May 17, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Long-term debt | |||
Principal amount | $ 3,001 | $ 3,538 | |
Unamortized discount and debt issuance costs | 67 | 109 | |
Total long term debt | 2,934 | 3,429 | |
Current portion of long-term debt | 6 | 5 | |
Long-term debt, net | $ 2,928 | 3,424 | |
Redemption price, percentage | 100.00% | ||
Unamortized debt issuance costs | $ 57 | ||
Long-term debt maturities | |||
Scheduled principal payments 2022 | 6 | ||
Scheduled principal payments 2023 | 6 | ||
Scheduled principal payments 2024 | 5 | ||
Scheduled principal payments 2025 | 5 | ||
Scheduled principal payments 2026 | $ 5 | ||
6.625% Senior Notes | TDS | |||
Long-term debt | |||
Interest rate on debt | 6.625% | ||
Principal amount | $ 0 | 116 | |
Long-term debt | 0 | 113 | |
Unamortized discount and debt issuance costs | $ 0 | 3 | |
6.875% Senior Notes | TDS | |||
Long-term debt | |||
Interest rate on debt | 6.875% | ||
Principal amount | $ 0 | 225 | |
Long-term debt | 0 | 218 | |
Unamortized discount and debt issuance costs | $ 0 | 7 | |
7.0% Senior Notes | TDS | |||
Long-term debt | |||
Interest rate on debt | 7.00% | ||
Principal amount | $ 0 | 300 | |
Long-term debt | 0 | 291 | |
Unamortized discount and debt issuance costs | $ 0 | 9 | |
5.875% Senior Notes | TDS | |||
Long-term debt | |||
Interest rate on debt | 5.875% | ||
Principal amount | $ 0 | 195 | |
Long-term debt | 0 | 188 | |
Unamortized discount and debt issuance costs | $ 0 | 7 | |
6.7% Senior Notes | UScellular | |||
Long-term debt | |||
Interest rate on debt | 6.70% | ||
Principal amount | $ 544 | 544 | |
Long-term debt | 532 | 531 | |
Unamortized discount and debt issuance costs | $ 12 | 13 | |
Redemption price, percentage | 100.00% | ||
6.7% Senior Notes | Treasury Rate | UScellular | |||
Long-term debt | |||
Interest rate on debt | 0.30% | ||
6.95% Senior Notes | UScellular | |||
Long-term debt | |||
Interest rate on debt | 6.95% | ||
Principal amount | $ 0 | 342 | |
Long-term debt | 0 | 331 | |
Unamortized discount and debt issuance costs | $ 0 | 11 | |
7.25% Senior Notes due 2063 | UScellular | |||
Long-term debt | |||
Interest rate on debt | 7.25% | ||
Principal amount | $ 0 | 275 | |
Long-term debt | 0 | 265 | |
Unamortized discount and debt issuance costs | $ 0 | 10 | |
7.25% Senior Notes due 2064 | UScellular | |||
Long-term debt | |||
Interest rate on debt | 7.25% | ||
Principal amount | $ 0 | 300 | |
Long-term debt | 0 | 290 | |
Unamortized discount and debt issuance costs | $ 0 | 10 | |
6.25% Senior Notes | UScellular | |||
Long-term debt | |||
Interest rate on debt | 6.25% | ||
Principal amount | $ 500 | 500 | |
Long-term debt | 483 | 483 | |
Unamortized discount and debt issuance costs | $ 17 | 17 | |
5.5% Senior Notes | UScellular | |||
Long-term debt | |||
Interest rate on debt | 5.50% | ||
Principal amount | $ 500 | 500 | |
Long-term debt | 483 | 483 | |
Unamortized discount and debt issuance costs | $ 17 | 17 | |
5.5% Senior Notes | UScellular | |||
Long-term debt | |||
Interest rate on debt | 5.50% | 5.50% | |
Principal amount | $ 500 | $ 500 | 0 |
Debt issuance costs | 16 | ||
Long-term debt | $ 484 | 484 | 0 |
Unamortized discount and debt issuance costs | $ 16 | 0 | |
Redemption price, percentage | 100.00% | ||
Callable Notes | |||
Long-term debt | |||
Redemption price, percentage | 100.00% | ||
UScellular Term Loan Agreement | UScellular | |||
Long-term debt | |||
Principal amount | $ 299 | 83 | |
Long-term debt | 296 | 80 | |
Unamortized discount and debt issuance costs | 3 | 3 | |
Finance lease obligations | |||
Long-term debt | |||
Principal amount | 7 | 7 | |
Unamortized discount and debt issuance costs | 0 | 0 | |
Finance lease obligations | 7 | 7 | |
Other long-term notes | |||
Long-term debt | |||
Principal amount | 1 | 1 | |
Long-term debt | 1 | 1 | |
Unamortized discount and debt issuance costs | 0 | 0 | |
TDS Term Loan Agreement | |||
Long-term debt | |||
Principal amount | 200 | 125 | |
Long-term debt | 198 | 123 | |
Unamortized discount and debt issuance costs | 2 | 2 | |
Receivables securitization agreement | UScellular | |||
Long-term debt | |||
Principal amount | 450 | 25 | |
Long-term debt | 450 | 25 | |
Unamortized discount and debt issuance costs | $ 0 | $ 0 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | $ 77 | $ 69 | |
Benefit obligation at end of year | 54 | 57 | |
Funded status | 23 | 12 | |
Pension | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution cost | 16 | 16 | $ 17 |
Retirement Savings (401(k) Plan) | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution cost | $ 27 | $ 27 | $ 25 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Loss Contingency, Estimate [Abstract] | ||
Accrual for legal proceedings and unasserted claims | $ 0 | |
Maximum | ||
Loss Contingency, Estimate [Abstract] | ||
Accrual for legal proceedings and unasserted claims | $ 1 | |
UScellular | ||
Loss Contingency, Estimate [Abstract] | ||
FCC License Auction, Percent of Bid Credit in Each Auction | 25.00% |
Variable Interest Entities - Co
Variable Interest Entities - Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Assets | |||||
Cash and cash equivalents | $ 367 | $ 1,429 | |||
Short-term investments | 0 | 3 | |||
Accounts receivable | 1,058 | 1,004 | |||
Inventory, net | 178 | 154 | |||
Other current assets | 61 | 36 | |||
Licenses | 4,097 | 2,638 | |||
Property, plant and equipment, net | 4,361 | 3,972 | |||
Operating lease right-of-use assets | 1,040 | 998 | |||
Other assets and deferred charges | 710 | 652 | |||
Total assets | 13,493 | [1] | 12,525 | [1] | $ 10,781 |
Liabilities | |||||
Current liabilities | 1,180 | 1,153 | |||
Long-term operating lease liabilities | 960 | 940 | |||
Other deferred liabilities and credits | 759 | 541 | |||
Consolidated Variable Interest Entities | |||||
Assets | |||||
Cash and cash equivalents | 22 | 18 | |||
Short-term investments | 0 | 3 | |||
Accounts receivable | 692 | 638 | |||
Inventory, net | 2 | 3 | |||
Other current assets | 44 | 21 | |||
Licenses | 637 | 637 | |||
Property, plant and equipment, net | 108 | 99 | |||
Operating lease right-of-use assets | 42 | 37 | |||
Other assets and deferred charges | 382 | 347 | |||
Total assets | 1,929 | 1,803 | |||
Liabilities | |||||
Current liabilities | 28 | 26 | |||
Long-term operating lease liabilities | 37 | 34 | |||
Other deferred liabilities and credits | 23 | 19 | |||
Total liabilities | $ 88 | $ 79 | |||
[1] | The consolidated total assets as of December 31, 2021 and 2020, include assets held by consolidated variable interest entities (VIEs) of $1,456 million and $1,042 million, respectively, which are not available to be used to settle the obligations of TDS. The consolidated total liabilities as of December 31, 2021 and 2020, include certain liabilities of consolidated VIEs of $21 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of TDS. See Note 15 — Variable Interest Entities for additional information. |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entities, Other Disclosures | |||
Investment in unconsolidated entities, maximum exposure | $ 4 | $ 5 | |
Capital contributions, loans or advances | $ 36 | 111 | $ 255 |
USCC EIP LLC | |||
Variable Interest Entities, Other Disclosures | |||
Capital contributions, loans or advances | $ 83 | $ 214 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |||
Net income attributable to TDS shareholders | $ 156 | $ 226 | $ 121 |
Transfer (to) from the noncontrolling interests | |||
Change in TDS’ Capital in excess of par value from UScellular's issuance of UScellular shares | (49) | (38) | (23) |
Change in TDS’ Capital in excess of par value from UScellular’s repurchases of UScellular shares | 17 | 14 | 6 |
Purchase of ownership in subsidiaries from noncontrolling interests | 0 | (9) | 0 |
Net transfers (to) from noncontrolling interests | (32) | (33) | (17) |
Net income attributable to TDS shareholders after transfers (to) from noncontrolling interests | 124 | $ 193 | $ 104 |
Redeemable noncontrolling interest | |||
Settlement value of mandatorily redeemable noncontrolling interests | 21 | ||
Carrying value of mandatorily redeemable noncontrolling interests | $ 6 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) | Jan. 01, 2017shares | Nov. 30, 2009shares | Dec. 31, 2021USD ($)votedirector$ / sharesshares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Aug. 02, 2013USD ($) |
Shareholders' equity, other disclosures | ||||||
Gross proceeds | $ 1,110,000,000 | $ 0 | $ 0 | |||
Series A Common Shares | ||||||
Shareholders' equity, other disclosures | ||||||
Number of votes | vote | 10 | |||||
Number of directors entitled to elect shares | director | 8 | |||||
Common Shares | ||||||
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 | |||||
Repurchase authorization, maximum dollar value | $ 177,000,000 | |||||
Common Shares | Share Conversion | ||||||
Shareholders' equity, other disclosures | ||||||
Shares reserved (in shares) | shares | 7,331,000 | |||||
Common Shares | Tax-Deferred Savings Plan | ||||||
Shareholders' equity, other disclosures | ||||||
Shares reserved (in shares) | shares | 90,000 | |||||
UScellular Common Shares | UScellular | ||||||
Share repurchases | ||||||
Repurchase authorization, additional number of shares per year (in shares) | shares | 1,300,000 | |||||
Repurchase authorization, cumulative shares authorized (in shares) | shares | 3,517,000 | |||||
UScellular Common Shares | UScellular | Maximum | ||||||
Share repurchases | ||||||
Repurchase authorization, additional number of shares per year (in shares) | shares | 1,300,000 | |||||
UScellular Common Shares | UScellular | Minimum | ||||||
Share repurchases | ||||||
Repurchase authorization, additional number of shares per year (in shares) | shares | 0 | |||||
Series UU Preferred Shares | ||||||
Shareholders' equity, other disclosures | ||||||
Shares issued | shares | 16,800 | |||||
Interest rate | 6.625% | |||||
Shares issued (price per share) | $ / shares | $ 25,000 | |||||
Gross proceeds | $ 420,000,000 | |||||
Depositary shares | 16,800,000 | |||||
Net cash proceeds | 406,000,000 | |||||
Issuance costs | $ 14,000,000 | |||||
Redemption price per Preferred Share | $ / shares | $ 25,000 | |||||
Common Shares issued upon conversion | shares | 2,773.2 | |||||
Series UU Preferred Shares | Redemption price after credit rating downgrade | ||||||
Shareholders' equity, other disclosures | ||||||
Redemption price per Preferred Share | $ / shares | $ 25,500 | |||||
Series UU Preferred Shares | Redemption price after change in control | ||||||
Shareholders' equity, other disclosures | ||||||
Redemption price per Preferred Share | $ / shares | $ 25,000 | |||||
Series VV Preferred Shares | ||||||
Shareholders' equity, other disclosures | ||||||
Shares issued | shares | 27,600 | |||||
Interest rate | 6.00% | |||||
Shares issued (price per share) | $ / shares | $ 25,000 | |||||
Gross proceeds | $ 690,000,000 | |||||
Depositary shares | 27,600,000 | |||||
Net cash proceeds | 668,000,000 | |||||
Issuance costs | $ 22,000,000 | |||||
Redemption price per Preferred Share | $ / shares | $ 25,000 | |||||
Common Shares issued upon conversion | shares | 2,584 | |||||
Series VV Preferred Shares | Redemption price after credit rating downgrade | ||||||
Shareholders' equity, other disclosures | ||||||
Redemption price per Preferred Share | $ / shares | $ 25,500 | |||||
Series VV Preferred Shares | Redemption price after change in control | ||||||
Shareholders' equity, other disclosures | ||||||
Redemption price per Preferred Share | $ / shares | $ 25,000 | |||||
Preferred Shares | ||||||
Shareholders' equity, other disclosures | ||||||
Liquidation preference per share (in dollars per share) | $ 25,000 | |||||
Redemption price per Preferred Share | $ / shares | $ 25,000 |
Stock-Based Compensation - TDS,
Stock-Based Compensation - TDS, Overview (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock based compensation | |||
Stock-based compensation expense | $ 49 | $ 53 | $ 59 |
Income tax benefit | (12) | (13) | (15) |
Total stock-based compensation expense, net of income taxes | 37 | 40 | 44 |
Unrecognized compensation cost for all stock-based compensation awards | $ 60 | ||
Weighted average period for recognition of unrecognized compensation cost for all stock-based compensation awards | 2 years 1 month 6 days | ||
Tax benefit from exercise of stock options and other awards | $ 15 | ||
Selling, general and administrative expense | |||
Stock based compensation | |||
Stock-based compensation expense | 44 | 48 | 54 |
Cost of services expense | |||
Stock based compensation | |||
Stock-based compensation expense | 5 | 5 | 5 |
Long-Term Incentive Plans | Stock Options | |||
Stock based compensation | |||
Stock-based compensation expense | 2 | 3 | 3 |
Long-Term Incentive Plans | Restricted Stock Units | |||
Stock based compensation | |||
Stock-based compensation expense | 29 | 30 | 33 |
Long-Term Incentive Plans | Performance Share Units | |||
Stock based compensation | |||
Stock-based compensation expense | 16 | 17 | 21 |
Long-Term Incentive Plans | Deferred Compensation Stock Units | |||
Stock based compensation | |||
Stock-based compensation expense | 0 | 1 | 0 |
Non-Employee Directors' Plan | |||
Stock based compensation | |||
Stock-based compensation expense | $ 2 | $ 2 | $ 2 |
Non-Employee Directors' Plan | TDS | Common Shares | |||
Stock based compensation | |||
Shares reserved | 132,000 | ||
Shares issued | 50,000 | 43,000 | 28,000 |
TDS Long-Term Incentive Plans | TDS | Common Shares | |||
Stock based compensation | |||
Shares reserved | 16,350,000 | ||
Dividend Reinvestment Plan | TDS | Series A Common Shares | |||
Stock based compensation | |||
Shares reserved | 78,000 | ||
Purchase price, percent | 95.00% | ||
Dividend Reinvestment Plan | TDS | Common Shares | |||
Stock based compensation | |||
Shares reserved | 2,329,000 | ||
Purchase price, percent | 95.00% |
Stock-Based Compensation - TDS
Stock-Based Compensation - TDS excluding UScellular, Stock options (Details) - TDS Long-Term Incentive Plans - Stock Options - TDS - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Black Scholes valuation model assumptions | |||
Expected life | 6 years 3 months 18 days | 6 years 2 months 12 days | 6 years 2 months 12 days |
Expected annual volatility rate | 36.60% | 35.00% | 29.00% |
Dividend yield | 2.80% | 3.60% | 2.10% |
Risk-free interest rate | 1.10% | 0.50% | 2.40% |
Common Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Stock compensation, number of shares | |||
Outstanding, beginning of period (in shares) | 4,286,000 | ||
Granted options (in shares) | 289,000 | ||
Exercised options (in shares) | (23,000) | ||
Forfeited options (in shares) | (6,000) | ||
Expired options (in shares) | (458,000) | ||
Outstanding, end of period (in shares) | 4,088,000 | 4,286,000 | |
Exercisable options, end of period (in shares) | 3,264,000 | ||
Stock compensation, other information | |||
Options outstanding, beginning of period - weighted average exercise price (USD per share) | $ 25.94 | ||
Options granted, weighted average exercise price (USD per share) | 25.36 | ||
Options exercised, weighted average exercise price (USD per share) | 21.54 | ||
Options forfeited, weighted average exercise price (USD per share) | 23.75 | ||
Options expired, weighted average exercise price (USD per share) | 29.73 | ||
Options outstanding, end of period - weighted average exercise price (USD per share) | 25.50 | $ 25.94 | |
Options exercisable, end of period - weighted average exercise price (USD per share) | $ 25.91 | ||
Aggregate intrinsic value, options outstanding | $ 0 | ||
Aggregate intrinsic value, options exercisable | $ 0 | ||
Weighted average remaining contractual life, outstanding | 4 years 2 months 12 days | ||
Weighted average remaining contractual life, exercisable | 3 years 1 month 6 days | ||
Options granted, weighted average grant date fair value | $ 6.86 | $ 4.24 | $ 7.70 |
Aggregate intrinsic value, options exercised | $ 7 | ||
Common Shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
Stock compensation, other information | |||
Aggregate intrinsic value, options exercised | $ 1 | ||
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_2
Stock-Based Compensation - TDS excluding UScellular, Restricted Stock Units (Details) - Restricted Stock Units - TDS - Common Shares - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock based compensation, Nonvested shares rollforward, number of shares | |||
Nonvested stock units, beginning of period - Number of shares (in shares) | 1,496,000 | ||
Granted number of shares (in shares) | 580,000 | ||
Vested number of shares (in shares) | (451,000) | ||
Forfeited number of shares (in shares) | (33,000) | ||
Nonvested stock units, end of period - Number of shares (in shares) | 1,592,000 | 1,496,000 | |
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) | $ 22.26 | ||
Granted weighted average grant date fair value (USD per share) | 23.34 | $ 17.19 | $ 28.81 |
Vested weighted average grant date fair value (USD per share) | 23.69 | ||
Forfeited weighted average grant date fair value (USD per share) | 22.08 | ||
Nonvested stock units - end of period weighted average grant date fair value (USD per share) | $ 22.25 | $ 22.26 | |
Shares issued and granted under stock compensation plans | |||
Fair value of vested stock units | $ 11 | $ 7 | $ 11 |
Stock-Based Compensation - TD_3
Stock-Based Compensation - TDS excluding UScellular, Performance Share Units (Details) - Common Shares - Performance Share Units - TDS - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock based compensation, Nonvested shares rollforward, number of shares | |||
Nonvested stock units, beginning of period - Number of shares (in shares) | 924,000 | ||
Granted number of shares (in shares) | 303,000 | ||
Vested number of shares (in shares) | (152,000) | ||
Change in units based on approved performance factors (in shares) | 38,000 | ||
Forfeited number of shares (in shares) | (61,000) | ||
Accumulated dividend equivalents (in shares) | 33,000 | ||
Nonvested stock units, end of period - Number of shares (in shares) | 1,085,000 | 924,000 | |
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) | $ 23.18 | ||
Granted weighted average grant date fair value (USD per share) | 25.36 | $ 19.15 | $ 30.72 |
Vested weighted average grant date fair value (USD per share) | 25.70 | ||
Change in units based on approved performance factors weighted average grant date fair value (USD per share) | 25.70 | ||
Forfeited weighted average grant date fair value (USD per share) | 24.36 | ||
Accumulated dividend equivalents, weighted average grant date fair value (USD per share) | 23.29 | ||
Nonvested stock units - end of period weighted average grant date fair value (USD per share) | $ 23.46 | $ 23.18 | |
Shares issued and granted under stock compensation plans | |||
Award vesting period | 3 years | ||
Fair value of vested stock units | $ 3,000,000 | $ 2,000,000 | $ 4,000,000 |
Minimum | |||
Shares issued and granted under stock compensation plans | |||
Performance share awards target | 0.00% | ||
Maximum | |||
Shares issued and granted under stock compensation plans | |||
Performance share awards target | 200.00% |
Stock-Based Compensation - TD_4
Stock-Based Compensation - TDS excluding UScellular, Deferred Stock Compensation Units (Details) - Deferred Compensation Stock Units - TDS - Common Shares | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
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 |
Stock-Based Compensation - USce
Stock-Based Compensation - UScellular, Overview (Details) - UScellular - Common Shares - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
UScellular Long-Term Incentive Plans | |||
Stock-based compensation, overview | |||
Shares reserved | 11,370,000 | ||
Non-Employee Directors' Plan | |||
Stock-based compensation, overview | |||
Shares reserved | 84,000 | ||
Shares issued | 20,000 | 19,000 | 13,000 |
Stock-Based Compensation - US_2
Stock-Based Compensation - UScellular, Stock options (Details) - UScellular Long-Term Incentive Plans - Common Shares - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock compensation, number of shares | |||
Stock options outstanding | 378 | 418 | |
Stock compensation, other information | |||
Stock options outstanding - weighted average exercise price (USD per share) | $ 42.18 | $ 42.23 | |
Aggregate intrinsic value, options exercised | $ 0 | $ 3 | |
Maximum | |||
Stock compensation, other information | |||
Aggregate intrinsic value, options exercised | $ 1 |
Stock-Based Compensation - US_3
Stock-Based Compensation - UScellular, Restricted Stock Units (Details) - UScellular Long-Term Incentive Plans - Common Shares - Restricted Stock Units - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock based compensation, Nonvested shares rollforward, number of shares | |||
Nonvested stock units, beginning of period - Number of shares (in shares) | 1,660,000 | ||
Granted number of shares (in shares) | 672,000 | ||
Vested number of shares (in shares) | (609,000) | ||
Forfeited number of shares (in shares) | (122,000) | ||
Nonvested stock units, end of period - Number of shares (in shares) | 1,601,000 | 1,660,000 | |
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) | $ 36.43 | ||
Granted weighted average grant date fair value (USD per share) | 36.68 | $ 29.18 | $ 46.81 |
Vested weighted average grant date fair value (USD per share) | 39.10 | ||
Forfeited weighted average grant date fair value (USD per share) | 35.77 | ||
Nonvested stock units - end of period weighted average grant date fair value (USD per share) | $ 35.57 | $ 36.43 | |
Shares issued and granted under stock compensation plans | |||
Fair value of vested stock units | $ 22 | $ 20 | $ 25 |
Award vesting period | 3 years |
Stock-Based Compensation - US_4
Stock-Based Compensation - UScellular, Performance Stock Units (Details) - Performance Share Units - UScellular Long-Term Incentive Plans - Common Shares - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock based compensation, Nonvested shares rollforward, number of shares | |||
Nonvested stock units, beginning of period - Number of shares (in shares) | 1,305,000 | ||
Granted number of shares (in shares) | 394,000 | ||
Vested number of shares (in shares) | (601,000) | ||
Change in units based on approved performance factors number of shares | 42,000 | ||
Forfeited number of shares (in shares) | (91,000) | ||
Nonvested stock units, end of period - Number of shares (in shares) | 1,049,000 | 1,305,000 | |
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) | $ 36.60 | ||
Granted weighted average grant date fair value (USD per share) | 37.67 | $ 29.71 | $ 46.43 |
Vested weighted average grant date fair value (USD per share) | 39.50 | ||
Change in units based on approved performance factors weighted average grant date fair value (USD per share) | 28.94 | ||
Forfeited weighted average grant date fair value (USD per share) | 35.13 | ||
Nonvested stock units - end of period weighted average grant date fair value (USD per share) | $ 35.17 | $ 36.60 | |
Shares issued and granted under stock compensation plans | |||
Fair value of vested stock units | $ 22 | $ 11 | |
Award vesting period | 3 years | ||
Chief Executive Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance share awards target | 100.00% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance share awards target | 200.00% | 200.00% | |
Shares issued and granted under stock compensation plans | |||
Fair value of vested stock units | $ 1 | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance share awards target | 0.00% | 50.00% |
Stock-Based Compensation - US_5
Stock-Based Compensation - UScellular, Deferred Stock Units (Details) - Deferred Compensation Stock Units - UScellular Long-Term Incentive Plans - Common Shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of match from annual bonus | 33.00% | ||
Percent of match up to 50% from annual bonus | 25.00% | 25.00% | |
Percent of match above 50% from annual bonus | 33.00% | 33.00% | |
Award vesting period | 3 years |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Segment Reporting Information [Line Items] | |||||
Total operating revenues | $ 5,329 | $ 5,225 | $ 5,176 | ||
Selling, general and administrative | 1,677 | 1,681 | 1,717 | ||
Depreciation, amortization and accretion | 895 | 909 | 932 | ||
(Gain) loss on asset disposals, net | 26 | 27 | 12 | ||
(Gain) loss on sale of business and other exit costs, net | (2) | 0 | (1) | ||
(Gain) loss on license sales and exchanges, net | 0 | (5) | 0 | ||
Operating income | 261 | 259 | 179 | ||
Equity in earnings of unconsolidated entities | 182 | 181 | 168 | ||
Interest and dividend income | 11 | 15 | 29 | ||
Gain (loss) on investments | 0 | 2 | 0 | ||
Interest expense | (232) | (168) | (165) | ||
Other, net | (1) | (1) | 0 | ||
Income before income taxes | 221 | 288 | 211 | ||
Income tax expense (benefit) | 33 | 19 | 64 | ||
Net income | 188 | 269 | 147 | ||
Depreciation, amortization and accretion | 895 | 909 | 932 | ||
(Gain) loss on asset disposals, net | 26 | 27 | 12 | ||
(Gain) loss on sale of business and other exit costs, net | (2) | 0 | (1) | ||
(Gain) loss on license sales and exchanges, net | 0 | (5) | 0 | ||
Gain (loss) on investments | 0 | (2) | 0 | ||
Interest expense | 232 | 168 | 165 | ||
Income tax expense | 33 | 19 | 64 | ||
Adjusted EBITDA | 1,372 | 1,385 | 1,319 | ||
Investments in unconsolidated entities | 479 | 477 | 488 | ||
Total assets | 13,493 | [1] | 12,525 | [1] | 10,781 |
Capital expenditures | 1,201 | 1,317 | 1,032 | ||
UScellular | |||||
Segment Reporting Information [Line Items] | |||||
Total operating revenues | 4,122 | 4,037 | 4,022 | ||
Selling, general and administrative | 1,345 | 1,368 | 1,406 | ||
Depreciation, amortization and accretion | 678 | 683 | 702 | ||
(Gain) loss on asset disposals, net | 23 | 25 | 19 | ||
(Gain) loss on sale of business and other exit costs, net | (2) | (1) | |||
(Gain) loss on license sales and exchanges, net | (5) | ||||
Operating income | 170 | 173 | 112 | ||
Equity in earnings of unconsolidated entities | 179 | 179 | 166 | ||
Interest and dividend income | 6 | 8 | 17 | ||
Gain (loss) on investments | 2 | ||||
Interest expense | (175) | (112) | (110) | ||
Other, net | 0 | 0 | |||
Income before income taxes | 180 | 250 | 185 | ||
Income tax expense (benefit) | 20 | 17 | 52 | ||
Net income | 160 | 233 | 133 | ||
Depreciation, amortization and accretion | 678 | 683 | 702 | ||
(Gain) loss on asset disposals, net | 23 | 25 | 19 | ||
(Gain) loss on sale of business and other exit costs, net | (2) | (1) | |||
(Gain) loss on license sales and exchanges, net | (5) | ||||
Gain (loss) on investments | (2) | ||||
Interest expense | 175 | 112 | 110 | ||
Income tax expense | 20 | 17 | 52 | ||
Adjusted EBITDA | 1,054 | 1,063 | 1,015 | ||
Investments in unconsolidated entities | 439 | 435 | 447 | ||
Total assets | 10,341 | 9,681 | 8,164 | ||
Capital expenditures | 780 | 940 | 710 | ||
TDS Telecom | |||||
Segment Reporting Information [Line Items] | |||||
Total operating revenues | 1,006 | 976 | 930 | ||
Selling, general and administrative | 291 | 270 | 260 | ||
Depreciation, amortization and accretion | 198 | 203 | 200 | ||
(Gain) loss on asset disposals, net | 2 | 1 | (7) | ||
(Gain) loss on sale of business and other exit costs, net | 0 | 0 | |||
(Gain) loss on license sales and exchanges, net | 0 | ||||
Operating income | 110 | 110 | 107 | ||
Equity in earnings of unconsolidated entities | 0 | 0 | 0 | ||
Interest and dividend income | 1 | 5 | 12 | ||
Gain (loss) on investments | 0 | ||||
Interest expense | 5 | 4 | 3 | ||
Other, net | (1) | (1) | |||
Income before income taxes | 114 | 117 | 122 | ||
Income tax expense (benefit) | 24 | 18 | 30 | ||
Net income | 90 | 100 | 92 | ||
Depreciation, amortization and accretion | 198 | 203 | 200 | ||
(Gain) loss on asset disposals, net | 2 | 1 | (7) | ||
(Gain) loss on sale of business and other exit costs, net | 0 | 0 | |||
(Gain) loss on license sales and exchanges, net | 0 | ||||
Gain (loss) on investments | 0 | ||||
Interest expense | (5) | (4) | (3) | ||
Income tax expense | 24 | 18 | 30 | ||
Adjusted EBITDA | 310 | 317 | 313 | ||
Investments in unconsolidated entities | 4 | 4 | 4 | ||
Total assets | 2,645 | 2,359 | 2,196 | ||
Capital expenditures | 411 | 368 | 316 | ||
Corporate, Eliminations and Other | |||||
Segment Reporting Information [Line Items] | |||||
Total operating revenues | 201 | 212 | 224 | ||
Selling, general and administrative | 41 | 43 | 51 | ||
Depreciation, amortization and accretion | 19 | 23 | 30 | ||
(Gain) loss on asset disposals, net | 1 | 1 | 0 | ||
(Gain) loss on sale of business and other exit costs, net | 0 | 0 | |||
(Gain) loss on license sales and exchanges, net | 0 | ||||
Operating income | (19) | (24) | (40) | ||
Equity in earnings of unconsolidated entities | 3 | 2 | 2 | ||
Interest and dividend income | 4 | 2 | 0 | ||
Gain (loss) on investments | 0 | ||||
Interest expense | (62) | (60) | (58) | ||
Other, net | 0 | 0 | |||
Income before income taxes | (73) | (79) | (96) | ||
Income tax expense (benefit) | (11) | (16) | (18) | ||
Net income | (62) | (64) | (78) | ||
Depreciation, amortization and accretion | 19 | 23 | 30 | ||
(Gain) loss on asset disposals, net | 1 | 1 | 0 | ||
(Gain) loss on sale of business and other exit costs, net | 0 | 0 | |||
(Gain) loss on license sales and exchanges, net | 0 | ||||
Gain (loss) on investments | 0 | ||||
Interest expense | 62 | 60 | 58 | ||
Income tax expense | (11) | (16) | (18) | ||
Adjusted EBITDA | 8 | 5 | (9) | ||
Investments in unconsolidated entities | 36 | 38 | 37 | ||
Total assets | 507 | 485 | 421 | ||
Capital expenditures | 10 | 9 | 6 | ||
Service | |||||
Segment Reporting Information [Line Items] | |||||
Total operating revenues | 4,216 | 4,136 | 4,059 | ||
Cost of goods and services sold | 1,267 | 1,244 | 1,202 | ||
Service | UScellular | |||||
Segment Reporting Information [Line Items] | |||||
Total operating revenues | 3,115 | 3,067 | 3,035 | ||
Cost of goods and services sold | 790 | 782 | 756 | ||
Service | TDS Telecom | |||||
Segment Reporting Information [Line Items] | |||||
Total operating revenues | 1,005 | 975 | 928 | ||
Cost of goods and services sold | 404 | 392 | 368 | ||
Service | Corporate, Eliminations and Other | |||||
Segment Reporting Information [Line Items] | |||||
Total operating revenues | 96 | 94 | 96 | ||
Cost of goods and services sold | 73 | 70 | 78 | ||
Equipment and product sales | |||||
Segment Reporting Information [Line Items] | |||||
Total operating revenues | 1,113 | 1,089 | 1,117 | ||
Cost of goods and services sold | 1,205 | 1,110 | 1,135 | ||
Equipment and product sales | UScellular | |||||
Segment Reporting Information [Line Items] | |||||
Total operating revenues | 1,007 | 970 | 987 | ||
Cost of goods and services sold | 1,118 | 1,011 | 1,028 | ||
Equipment and product sales | TDS Telecom | |||||
Segment Reporting Information [Line Items] | |||||
Total operating revenues | 1 | 1 | 1 | ||
Cost of goods and services sold | 1 | 1 | 1 | ||
Equipment and product sales | Corporate, Eliminations and Other | |||||
Segment Reporting Information [Line Items] | |||||
Total operating revenues | 105 | 118 | 129 | ||
Cost of goods and services sold | $ 86 | $ 98 | $ 106 | ||
[1] | The consolidated total assets as of December 31, 2021 and 2020, include assets held by consolidated variable interest entities (VIEs) of $1,456 million and $1,042 million, respectively, which are not available to be used to settle the obligations of TDS. The consolidated total liabilities as of December 31, 2021 and 2020, include certain liabilities of consolidated VIEs of $21 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of TDS. See Note 15 — Variable Interest Entities for additional information. |
Supplemental Cash Flow Disclo_3
Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow [Line Items] | |||
Interest paid | $ 177 | $ 160 | $ 162 |
Income taxes paid, net of (refunds received) | 6 | (23) | 44 |
Supplemental cash flows, stock based compensation | |||
Net cash receipts (disbursements) from exercise of stock options and vesting of other stock awards | (5) | (3) | (6) |
UScellular Common Shares reissued for benefit plans, net of tax payments | (16) | (11) | (9) |
TDS | |||
Supplemental cash flows, stock based compensation | |||
Cash receipts upon exercise of stock options | 0 | 0 | 2 |
Cash disbursements for payment of taxes | (5) | (3) | (8) |
Net cash receipts (disbursements) from exercise of stock options and vesting of other stock awards | (5) | (3) | (6) |
UScellular | |||
Supplemental cash flows, stock based compensation | |||
Cash receipts upon exercise of stock options | 0 | 0 | 1 |
Cash disbursements for payment of taxes | (16) | (11) | (10) |
UScellular Common Shares reissued for benefit plans, net of tax payments | $ (16) | $ (11) | $ (9) |
Common Shares | TDS | |||
Supplemental cash flows, stock based compensation | |||
Common Shares withheld (in shares) | 223,000 | 153,000 | 814,000 |
Aggregate value of Common Shares withheld | $ 5 | $ 3 | $ 29 |
UScellular Common Shares | UScellular | |||
Supplemental cash flows, stock based compensation | |||
Common Shares withheld (in shares) | 438,000 | 376,000 | 452,000 |
Aggregate value of Common Shares withheld | $ 16 | $ 11 | $ 23 |
Certain Relationships and Rel_2
Certain Relationships and Related Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Sidley Austin LLP | |||
Related Party Transaction [Line Items] | |||
Legal expense | $ 10 | $ 11 | $ 10 |