Telephone and Data Systems (TDS) 10-Q 31 Jul 15 2015 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - Jun. 30, 2015 - shares	Total
Entity Registrant Name	TELEPHONE & DATA SYSTEMS INC /DE/
Entity Central Index Key	1,051,512
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Trading Symbol	TDS
Common Shares
Entity Common Stock, Shares Outstanding	101,363,899
Series A Common Shares
Entity Common Stock, Shares Outstanding	7,196,018

Consolidated Statement Of Opera

Consolidated Statement Of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Operating revenues
Service	$ 1,070,650	$ 1,072,179	$ 2,143,741	$ 2,152,421
Equipment and product sales	205,745	164,213	384,247	279,933
Total operating revenues	1,276,395	1,236,392	2,527,988	2,432,354
Operating expenses
Cost of services (excluding Depreciation, amortization and accretion reported below)	300,152	286,488	593,799	562,446
Cost of equipment and products	298,450	313,011	570,431	619,658
Selling, general and administrative	435,430	470,902	873,470	934,571
Depreciation, amortization and accretion	211,104	204,567	417,679	429,486
(Gain) loss on asset disposals, net	4,752	7,903	10,129	10,333
(Gain) loss on sale of business and other exit costs, net	(5,589)	2,611	(129,372)	(4,289)
(Gain) loss on license sales and exchanges, net	(25)		(122,898)	(91,446)
Total operating expenses	1,244,274	1,285,482	2,213,238	2,460,759
Operating income (loss)	32,121	(49,090)	314,750	(28,405)
Investment and other income (expense)
Equity in earnings of unconsolidated entities	35,412	34,790	70,053	72,117
Interest and dividend income	10,117	2,751	18,502	5,237
Interest expense	(33,919)	(27,898)	(67,749)	(56,605)
Other, net	202	50	198	210
Total investment and other income	11,812	9,693	21,004	20,959
Income (loss) before income taxes	43,933	(39,397)	335,754	(7,446)
Income tax expense (benefit)	17,433	(13,671)	133,453	(2,014)
Net income (loss)	26,500	(25,726)	202,301	(5,432)
Less: Net income (loss) attributable to noncontrolling interests, net of tax	3,454	(3,688)	33,515	(1,648)
Net income (loss) attributable to TDS shareholders	23,046	(22,038)	168,786	(3,784)
TDS Preferred dividend requirement	(12)	(12)	(25)	(25)
Net income (loss) available to common shareholders	$ 23,034	$ (22,050)	$ 168,761	$ (3,809)
Basic weighted average shares outstanding	108,484	108,719	108,327	108,853
Basic earnings (loss) per share attributable to TDS shareholders	$ 0.21	$ (0.20)	$ 1.56	$ (0.04)
Diluted weighted average shares outstanding	109,785	108,719	109,380	108,853
Diluted earnings (loss) per share attributable to TDS shareholders	$ 0.21	$ (0.20)	$ 1.53	$ (0.04)
Dividends per share to TDS shareholders	$ 0.141	$ 0.134	$ 0.282	$ 0.268

Consolidated Statement Of Compr

Consolidated Statement Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Consolidated Statement of Comprehensive Income
Net income (loss)	$ 26,500	$ (25,726)	$ 202,301	$ (5,432)
Net change in accumulated other comprehensive income (loss)
Change in net unrealized gain (loss) on equity investments	(353)	341	(353)	341
Change in foreign currency translation adjustment	(39)	(17)	(3)	(21)
Change related to retirement plan
Amortization of prior service cost	(852)	(911)	(1,704)	(1,822)
Amortization of unrecognized net loss	64	322	129	644
Total gains (losses) recognized in Comprehensive Income before income tax benefit (expense)	(788)	(589)	(1,575)	(1,178)
Change in deferred income taxes	298	224	609	447
Change related to retirement plan, net of tax	(490)	(365)	(966)	(731)
Net change in accumulated other comprehensive income (loss)	(882)	(41)	(1,322)	(411)
Comprehensive income (loss)	25,618	(25,767)	200,979	(5,843)
Less: Comprehensive income (loss) attributable to noncontrolling interest	3,454	(3,688)	33,515	(1,648)
Comprehensive income (loss) attributable to TDS shareholders	$ 22,164	$ (22,079)	$ 167,464	$ (4,195)

Consolidated Statement Of Cash

Consolidated Statement Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities
Net income (loss)	$ 202,301	$ (5,432)
Add (deduct) adjustments to reconcile net income to cash flows from operating activities
Depreciation, amortization and accretion	417,679	429,486
Bad debts expense	54,599	52,098
Stock-based compensation expense	17,949	15,488
Deferred income taxes, net	(40,640)	(33,346)
Equity in earnings of unconsolidated entities	(70,053)	(72,117)
Distributions from unconsolidated entities	27,226	65,569
(Gain) loss on asset disposals, net	10,129	10,333
(Gain) loss on sale of business and other exit costs, net	(129,372)	(4,289)
(Gain) loss on license sales and exchanges, net	(122,898)	(91,446)
Noncash interest expense	1,363	1,014
Other operating activities	(387)	3
Changes in assets and liabilities from operations
Accounts receivable	(17,935)	67,136
Equipment installment plans receivable	(65,124)	(47,971)
Inventory	127,021	38,674
Accounts payable	29,589	(43,132)
Customer deposits and deferred revenues	(7,005)	13,139
Accrued taxes	191,508	1,049
Accrued interest	361	22
Other assets and liabilities	(87,880)	(80,636)
Cash flows from operating activities	538,431	315,642
Cash flows from investing activities
Cash used for additions to property, plant and equipment	(359,513)	(339,907)
Cash paid for acquisitions and licenses	(280,710)	(18,681)
Cash received from divestitures and exchanges	291,888	125,905
Cash received for investments		10,000
Other investing activities	2,328	3,720
Cash flows from investing activities	(346,007)	(218,963)
Cash flows from financing activities
Repayment of long-term debt	(434)	(589)
TDS Common Shares reissued for benefit plans, net of tax payments	9,831	401
U.S. Cellular Common Shares reissued for benefit plans, net of tax payments	(1,570)	830
Repurchase of TDS Common Shares		(20,090)
Repurchase of U.S. Cellular Common Shares	(2,302)	(8,298)
Dividends paid to TDS shareholders	(30,530)	(29,107)
Payment of debt issuance costs	(3,080)
Distributions to noncontrolling interests	(5,872)	(482)
Other financing activities	1,181	5,502
Cash flows from financing activities	(32,776)	(51,833)
Net increase in cash and cash equivalents	159,648	44,846
Cash and cash equivalents
Beginning of period	471,901	830,014
End of period	$ 631,549	$ 874,860

Consolidated Balance Sheet

Consolidated Balance Sheet - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 631,549	$ 471,901
Accounts receivable
Due from customers and agents, less allowances of $43,485 and $41,431, respectively	588,085	548,537
Other, less allowances of $1,153 and $1,141, respectively	115,807	135,144
Inventory, net	146,686	273,707
Net deferred income tax asset	92,881	107,686
Prepaid expenses	102,975	86,506
Income taxes receivable	426	113,708
Other current assets	30,480	29,766
Total current assets	1,708,889	1,766,955
Assets held for sale	22,203	103,343
Investments
Licenses	1,837,792	1,453,574
Goodwill	771,119	771,352
Franchise rights	244,300	244,300
Other intangible assets, net of accumulated amortization of $139,086 and $133,823, respectively	55,123	64,499
Investments in unconsolidated entities	364,205	321,729
Other investments	465	508
Total investments	3,273,004	2,855,962
Property, plant and equipment
In service and under construction	11,203,446	11,194,044
Less: Accumulated depreciation	7,476,991	7,347,919
Property, plant and equipment, net	3,726,455	3,846,125
Other assets and deferred charges	255,761	334,554
Total assets	8,986,312	8,906,939
Current liabilities
Current portion of long-term debt	747	808
Accounts payable	345,747	387,125
Customer deposits and deferred revenues	317,759	324,318
Accrued interest	8,276	7,919
Accrued taxes	121,144	46,734
Accrued compensation	92,994	114,549
Other current liabilities	134,516	181,803
Total current liabilities	1,021,183	1,063,256
Liabilities held for sale		21,643
Deferred liabilities and credits
Net deferred income tax liability	885,462	941,519
Other deferred liabilities and credits	436,810	430,774
Long-term debt	$ 1,993,429	$ 1,993,586
Commitments and contingencies
Noncontrolling interests with redemption features	$ 1,178	$ 1,150
TDS shareholders' equity
Series A Common and Common Shares	1,327	1,327
Capital in excess of par value	2,342,587	2,336,511
Treasury shares at cost	(735,218)	(748,199)
Accumulated other comprehensive income	5,130	6,452
Retained earnings	2,468,070	2,330,187
Total TDS shareholders' equity	4,081,896	3,926,278
Preferred shares	824	824
Noncontrolling interests	565,530	527,909
Total equity	4,648,250	4,455,011
Total liabilities and equity	$ 8,986,312	$ 8,906,939

Consolidated Balance Sheet Pare

Consolidated Balance Sheet Parenthetical - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets
Due from customers and agents, allowances	$ 43,485	$ 41,431
Other, allowances	1,153	1,141
Investments
Other intangible assets, accumulated amortization	$ 139,086	$ 133,823
TDS shareholders' equity
Authorized shares	290,000	290,000
Issued shares	132,766	132,749
Outstanding shares	108,559	107,899
Par value	$ 1,327	$ 1,327
Treasury Shares
TDS shareholders' equity
Treasury shares	24,207	24,850
Series A Common Shares
TDS shareholders' equity
Authorized shares	25,000	25,000
Issued shares	7,196	7,179
Outstanding shares	7,196	7,179
Par value per share	$ 0.01	$ 0.01
Par value	$ 72	$ 72
Common Shares
TDS shareholders' equity
Authorized shares	265,000	265,000
Issued shares	125,570	125,570
Outstanding shares	101,363	100,720
Par value per share	$ 0.01	$ 0.01
Par value	$ 1,255	$ 1,255
Common Shares | Treasury Shares
TDS shareholders' equity
Treasury shares	24,207	24,850

Consolidated Statement of Chang

Consolidated Statement of Changes in Equity - USD ($) $ in Thousands	Total	Series A Common and Common Shares	Capital in Excess of Par Value	Treasury Common Shares	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Total TDS Shareholders' Equity	Preferred Shares	Noncontrolling Interests
Beginning balance at Dec. 31, 2013	$ 4,670,097	$ 1,327	$ 2,308,807	$ (721,354)	$ (569)	$ 2,529,626	$ 4,117,837	$ 824	$ 551,436
Add (Deduct)
Net income (loss) attributable to TDS shareholders	(3,784)					(3,784)	(3,784)
Net income (loss) attributable to noncontrolling interests classified as equity	(2,045)								(2,045)
Net unrealized gain (loss) on equity investments	341				341		341
Change in foreign currency translation adjustment	(21)				(21)		(21)
Changes related to retirement plan	(731)				(731)		(731)
TDS Common and Series A Common Share dividends	(29,082)					(29,082)	(29,082)
TDS Preferred dividend requirement	(25)					(25)	(25)
Repurchase of Common Shares	(21,096)			(21,096)			(21,096)
Dividend reinvestment plan	4,938		1,470	3,468			4,938
Incentive and compensation plans	833		(314)	1,147			833
Adjust investment in subsidiaries for repurchases, issuances and other compensation plans	1,438		(2,224)				(2,224)		3,662
Stock-based compensation awards	5,354		5,354				5,354
Tax windfall (shortfall) from stock awards	(578)		(578)				(578)
Distributions to noncontrolling interests	(459)								(459)
Ending balance at Jun. 30, 2014	4,625,180	1,327	2,312,515	(737,835)	(980)	2,496,735	4,071,762	824	552,594
Beginning balance at Dec. 31, 2014	4,455,011	1,327	2,336,511	(748,199)	6,452	2,330,187	3,926,278	824	527,909
Add (Deduct)
Net income (loss) attributable to TDS shareholders	168,786					168,786	168,786
Net income (loss) attributable to noncontrolling interests classified as equity	27,847								27,847
Net unrealized gain (loss) on equity investments	(353)				(353)		(353)
Change in foreign currency translation adjustment	(3)				(3)		(3)
Changes related to retirement plan	(966)				(966)		(966)
TDS Common and Series A Common Share dividends	(30,505)					(30,505)	(30,505)
TDS Preferred dividend requirement	(25)					(25)	(25)
Dividend reinvestment plan	5,367		1,612	3,755			5,367
Incentive and compensation plans	10,019		1,166	9,226		(373)	10,019
Adjust investment in subsidiaries for repurchases, issuances and other compensation plans	7,177		(2,830)				(2,830)		10,007
Stock-based compensation awards	6,262		6,262				6,262
Tax windfall (shortfall) from stock awards	(134)		(134)				(134)
Distributions to noncontrolling interests	(233)								(233)
Ending balance at Jun. 30, 2015	$ 4,648,250	$ 1,327	$ 2,342,587	$ (735,218)	$ 5,130	$ 2,468,070	$ 4,081,896	$ 824	$ 565,530

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Disclosure Text Block
Basis of Presentation	1 . Basis of Presentation The accounting policies of Telephone and Data Systems, Inc. (“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”). The consolidated financial statements include the accounts of TDS and subsidiaries in which it has a controlling financial interest, including TDS’ 84% -owned wireless telephone subsidiary, United States Cellular Corporation (“U.S. Cellular”) and TDS’ wholly-owned subsidiary, T DS Telecommunications Corporation (“TDS Telecom”). In addition, the consolidated financial statements include certain entities in which TDS has a variable interest that require consolidation under GAAP. All material intercompany accounts and transactions have been eliminated. Certain prior year amounts have been reclassified to conform to the 2015 presentation. The consolidated financial statements included herein have been prepared by TDS, without audit, pursuant to the rules and regulations of the Secur ities and Exchange Commission (“SEC”). Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. However, TDS believes that the dis closures included herein are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in TDS’ Annual Report o n Form 10-K (“Form 10-K”) for the year ended December 31, 2014 . TDS’ business segments reflected in this Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2015 are U.S. Cellular, TDS Telecom’s Wireline, Cable, and Hosted and Managed Services (“HMS”) operations. TDS’ non-reportable other business activities are presented as “Corporate, Eliminations and Other”, which includes the operations of TDS’ wholly- owned subsidiaries Suttle-Straus, Inc. (“Suttle-Straus”) and Airadigm Communications, Inc. (“Airadigm”). Suttle-Straus and Airadigm’s financial results were not significant to TDS’ operations. All of TDS’ segments operate only in the United States, exce pt for HMS, which includes an insignificant foreign operation. See Note 12 — Business Segment Information for summary financial information on each business segment. The a ccompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring items, unless otherwise disclosed) necessary for a fair statement of the financial position as of June 30, 2015 and December 31, 2014 , and the results of operations and changes in comprehensive income for the three and six months ended June 30, 2015 and 2014 and cash flows and changes in equity for the six months ended June 30, 2015 and 2014 . These results are not necessarily indicative of the results to be expected for the full year. Recently Issued Accounting Pronouncements On May 28, 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 outlines a single comprehensive model to use in accounting for revenue arising from contracts with customers. ASU 2014-09 has an effective date of January 1, 2017. However, on July 9, 2015, the FASB affirmed a proposal to defer the effective date for one year to January 1, 2018. Under this proposal, e arly adoption as of January 1, 2017 also would be permissible ; however , TDS does not intend to adopt early . TDS is evaluating the effects that adoption of ASU 2014-09 will have on its financial position, results of operations, and disclosures. On August 27, 2014, the FASB issued Accounting Standards Update 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“AS U 2014-15”). ASU 2014-15 requires TDS to assess its ability to continue as a going concern each interim and annual reporting period and provide certain disclosures if there is substantial doubt about the entity’s ability to continue as a going concern, in cluding management’s plan to alleviate the substantial doubt. TDS is required to adopt the provisions of ASU 2014-15 for the annual period ending December 31, 2016, but early adoption is permitted. The adoption of ASU 2014-15 will not impact TDS’ financi al position or results of operations but may impact future disclosures. On February 18, 2015, the FASB issued Accounting Standards Update 2015-02, Consolidation: Amendments to the Consolidation Analysis (“ASU 2015-02”). ASU 2015-02 simplifies consolidatio n accounting by reducing the number of consolidation models. Additionally, ASU 2015-02 changes certain criteria for identifying variable interest entities. TDS is required to adopt the provisions of ASU 2015-02 effective January 1, 2016. Early adoption i s permitted. TDS expects that certain consolidated subsidiaries that are not defined as variable interest entities under current accounting guidance will be defined as variable interest entities under the provisions of ASU 2015-02. However, TDS does not expect the adoption of ASU 2015-02 to change the group of entities which TDS is required to consolidate in its financial statements. Accordingly, TDS does not expect the adoption of ASU 2015-02 to impact its financial position or results of operations. H owever, additional disclosures are expected. On April 7, 2015, the FASB issued Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs , which requires certain debt issuance costs to be presented in the balance sheet as an offset to the related debt obligation. TDS is required to apply the provisions of this update effective January 1, 2016 on a retrospective basis. Early adoption is permitted. As of June 30, 2015 , TDS had $ 54.8 million in debt issuance costs classified as Other assets and deferred charges that, upon adoption of the new standard, would be reclassified as an offset to Long-term debt. On July 22, 2015, the FASB issued Accounting Standards Update 2015-11, Inventory: Simplifying the Measurement of Inventory (“ASU 2015-11”), which requires inventory to be measured at the lower of cost or net realizable value. TDS is required to adopt ASU 2015-11 on January 1, 2017. Early adoption is permitt ed. TDS is evaluating the effects that adoption of ASU 2015-11 will have on its financial position and results of operations. Amounts Collected from Customers and Remitted to Governmental Authorities TDS records amounts collected from customers and remitt ed to governmental authorities net within a tax liability account if the tax is assessed upon the customer and TDS merely acts as an agent in collecting the tax on behalf of the imposing governmental authority. If the tax is assessed upon TDS, then amount s collected from customers as recovery of the tax 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 record ed gross in revenues that are billed to customers and remitted to governmental authorities totaled $ 25.2 million and $ 51.5 million for the three and six mon ths ended June 30, 2015 , respectively, and $ 29.1 million and $ 60.1 million for the three and six months ended June 30, 2014 , respectively.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2015
Disclosure Text Block
Fair Value Measurements	2 . Fair Value Measurements As of June 30, 2015 and December 31, 2014 , TDS did not have any 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 iden tical 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 in strument’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 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 June 30, 2015 December 31, 2014 Book Value Fair Value Book Value Fair Value (Dollars in thousands) Cash and cash equivalents 1 $ 631,549 $ 631,549 $ 471,901 $ 471,901 Long-term debt Retail 2 1,453,250 1,435,862 1,453,250 1,414,105 Institutional and other 2 537,315 508,127 537,471 518,322 The fair value of Cash and cash equivalents approximates the book value due to the short-term nature of these financial instruments. Long-term debt excludes capital lease obligations and the current portion of Long-term debt. The fair value of “Retail” Long-term debt was estimated using market prices for TDS’ 7.0% Senior Notes, 6.875% Senior Notes, 6.625% Senior Notes and 5.875% Senior Notes, and U.S . Cellular’s 6.95% Senior Notes and 7.25% Senior Notes. TDS’ “Institutional” debt consists of U.S. Cellular’s 6.7% Senior Notes which are traded over the counter. 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 0.00% to 7.44% and 0.00% to 7.25% at June 30, 2015 and December 31, 2014 , respec tively.

Equipment Installment Plans

Equipment Installment Plans	6 Months Ended
	Jun. 30, 2015
Disclosure Text Block
Equipment Installment Plans	3 . Equipment Installment Plans TDS offers customers the option to purchase certain devices under an equipment installment contract over a period of up to 24 months. Under certain equipment installment plans, the customer has the right to upgrade to a new device after a specified period of time and have the remaining unpaid equipment installment contract balance waived, subject to certain conditions, including trading in th e original device in good working condition and signing a new equipment installment contract. TDS values this trade-in right as a guarantee liability. The guarantee liability is initially measured at fair value and is determined based on assumptions incl uding the probability and timing of the customer upgrading to a new device and the fair value of the device being traded-in at the time of trade-in. As of June 30, 2015 and December 31, 2014 , the guarantee liability related to these plans was $ 80.2 million and $ 57.5 million, respectively, and is reflected in Customer deposits and deferred revenues in the Consolidated Balance Sheet. TDS equipment installment plans do not provide for explicit interest charges. For equipment installment plans with a duration of greater than twelve months, TDS imputes interest. The following table summarizes unbilled equipment installm ent plan receivables as of June 30, 2015 and December 31, 2014 . Such amounts are presented on the Consolidated Balance Sheet as Accounts receivable – customers and agents (short-term portion) and Other assets and deferred charges (long-term portion). (Dollars in thousands) June 30, 2015 December 31, 2014 Short-term portion of unbilled equipment installment plan receivables, gross $ 208,955 $ 127,400 Short-term portion of unbilled deferred interest (19,488) (16,365) Short-term portion of unbilled allowance for credit losses (7,404) (3,686) Short-term portion of unbilled equipment installment plan receivables, net $ 182,063 $ 107,349 Long-term portion of unbilled equipment installment plan receivables, gross $ 73,548 $ 89,435 Long-term portion of unbilled deferred interest (1,136) (2,791) Long-term portion of unbilled allowance for credit losses (5,176) (6,065) Long-term portion of unbilled equipment installment plan receivables, net $ 67,236 $ 80,579 TDS assesses the collectability of equipment installment plan receivables based on historical payment experience, account aging and other qualitative factors. To mitigate credit risk, TDS requires certain customers who desire to purchase equipment under an installment plan to make a down payment. TDS recorded out-of-period adjustments during the six months ended June 30, 2015 due to errors related to equipment installment plan transactions that were attributable to 2014. TDS has determined that these adjustments were not material to the prior quarterly or annual periods , and also were not material to the current period or anticipated full year 2015 results. These equipment installment plan adjustments had the impact of reducing Equipment and product sales revenues by $ 5.7 million and $ 6.2 million, and Income before income taxes by $ 5.3 million and $ 5.8 million, for the three and six months ended June 30, 2015, respectively.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2015
Disclosure Text Block
Income Taxes	4 . Income Taxes TDS’ overall effective tax rate on Income (loss) before income taxes for the three and six months ended June 30, 2015 was 39.7% , and for the three and six months ended June 30, 2014 was 34.7% and 27.0% , respectively. The lower effective tax rate for the six months ended June 30, 2014 resulted from the relatively low amount of Income (loss) before income taxes in that period, which magnified the effective rate impact of discrete tax expense items.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2015
Disclosure Text Block
Earnings per Share	5 . Earnings Per Share Basic earnings (loss) per share attributable to TDS shareholders is computed by dividing Net income (loss) available to common shareholders of TDS by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share attributable to TDS shareholders is computed by dividing Net income (loss) available to common sharehol ders of TDS 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 exercise of out standing stock options and the vesting of restricted stock units. The amounts used in computing earnings (loss) per common share and the effects of potentially dilutive securities on the weighted average number of common shares were as follows: Three Mont hs Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (Dollars and shares in thousands, except per share amounts) Basic earnings (loss) per share attributable to TDS shareholders: Net income (loss) available to common shareholders of TDS used in basic earnings (loss) per share $ 23,034 $ (22,050) $ 168,761 $ (3,809) Adjustments to compute diluted earnings (loss): Noncontrolling interest adjustment (116) – (1,214) (5) Preferred dividend adjustment – – 25 – Net income (loss) attributable to common shareholders of TDS used in diluted earnings (loss) per share $ 22,918 $ (22,050) $ 167,572 $ (3,814) Weighted average number of shares used in basic earnings (loss) per share: Common Shares 101,296 101,543 101,144 101,682 Series A Common Shares 7,188 7,176 7,183 7,171 Total 108,484 108,719 108,327 108,853 Effects of dilutive securities: Stock options 896 – 623 – Restricted stock units 405 – 384 – Preferred shares – – 46 – Weighted average number of shares used in diluted earnings (loss) per share 109,785 108,719 109,380 108,853 Basic earnings (loss) per share attributable to TDS shareholders $ 0.21 $ (0.20) $ 1.56 $ (0.04) Diluted earnings (loss) per share attributable to TDS shareholders $ 0.21 $ (0.20) $ 1.53 $ (0.04) Certain Common Shares issuable upon the exercise of stock options, vesting of restricted stock units or conversion of preferred shares were not included in average diluted shares outstanding for the calculation of Diluted earn ings (loss) per share attributable to TDS shareholders because their effects were antidilutive. The number of such Common Shares excluded, if any, is shown in the table below. Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (Shares in thousands) Stock options 4,523 8,883 5,304 8,777 Restricted stock units 204 824 104 737 Preferred shares 46 56 – 56

Acquisitions Divestures And Exc

Acquisitions Divestures And Exchanges	6 Months Ended
	Jun. 30, 2015
Disclosure Text Block
Acquisitions, Divestures and Exchanges	6 . Acquisitions, Divestitures and Exchanges Divestiture Transaction On May 16, 2013, pursuant to a Purchase and Sale Agreement, U.S. Cellular sold customers and certain PCS license spectrum to subsidiaries of Sprint Corp. fka Sprint Nextel Corporation (“Sprint”) in U.S. Cellular’s Chicago, central Illinois, St. Louis and certain Indiana/Michigan/Ohio markets (“Divestiture Markets”) in consideration for $ 480 million in cash. The Purchase and Sale Agreement also contemplated certain other agreements, together with the Purchase and Sale Agreement collectively referred to as the “Divestiture Transaction.” These agreements require Sprint to reimburse U.S. Cellu lar up to $ 200 million (the “Sprint Cost Reimbursement”) for certain network decommissioning costs, network site lease rent and termination costs, network access termination costs, and employee termination benefits for specified engineering employees. As of June 30, 2015 , U.S. Cellular had received a cumulative total of $ 104.8 million pursuant to the Sprint Cost Reimbursement. For the six months ended June 30, 2015 and 2014 , $ 23.2 million and $ 34.1 million, respectively, of the Sprint Cost Reimb ursement had been received and recorded in Cash received from divestitures and exchanges in the Consolidated Statement of Cash Flows. For the six months ended June 30, 2015 and 2014 , as a result of the Divestiture Transaction, U.S. Cellular recognized gains of $ 5.9 million and $ 17.7 million, respectively, in (Gain) loss on sale of business an d other exit costs, net. For the three months ended June 30, 2015 and 2014 , U.S. Cellular recognized gains of $ 1.5 million and $ 10.6 million, respectively. Other Acquisitions, Divestitures and Exchanges In March 2015, U.S. Cellular exchanged certain of its unbuilt PCS licenses for certain other PCS licenses located in U.S. Cellular’s existing operating markets and $ 117.0 million of cash. As of the transaction date, the licenses received in the transaction had an estimated fair value, per a market approach, of $ 43.5 million. A gain of $ 125.2 million was recorded in (Gain) loss on license sales and exchanges, net in the Consolidated Statement of Operations in the first quarter of 2015. An FCC auction of AWS-3 spectrum licenses, referred to as Auction 97, ended in January 2015. U.S. Cellular participated in Auction 97 indirectly through its limited partnership interest in Advantage Spectrum L.P. (“Advantage Spectrum”). Advantage Spectrum was the provisional winning bidder for 124 licenses for an aggregate w inning bid of $ 338.3 million, after its designated entity discount of 25 %. Advantage Spectrum’s bid amount, less the initial deposit amount of $ 60.0 million paid in 2014, was paid to the FCC in March 2015. These licenses are expected to be granted by the FCC during the latter half of 2015. See Note 9 — Variable Interest Entities for additional informati on. In December 2014, U.S. Cellular entered into an agreement with a third party to sell 595 towers and certain related contracts, assets, and liabilities for $ 159.0 million. This transaction was acc omplished in two closings. The first closing occurred in December 2014 and included the sale of 236 towers, without tenants, for $ 10.0 million. On this same date, U.S. Cellular received $ 7.5 million in earnest money. At the time of the first closing, a $ 4.7 million gain was recorded. The second closing for the remaining 359 towers, primarily with tenants, took plac e in January 2015, at which time U.S. Cellular received $ 141.5 million in additional cash proceeds and recorded a gain of $ 119.6 million in (Gain) loss on sale of business and other exit costs, net. In September 2014, U.S. Cellular entered into an agreement with a third party to exchange certain PCS and AWS licenses for certain other PCS and AWS licenses and $ 28.0 million of cash. This license exchange was accomplished in two closings. The first closing occurred in December 2014 at which time U.S. Cellular received licenses with an estimated fair value, per a market approach, of $ 51.5 million, recorded a $ 21.7 million gain and recorded an $ 18.3 million deferred credit in Other current liabilities. The license that was transferred to the counterparty in the second closing had a n et book value of $ 22.2 million and was classified as “Assets held for sale” in the Consolidated Balance Sheet as of June 30, 2015 . The second closing occurred in July 2015. At the tim e of the second closing, U.S. Cellular received $ 28.0 million in cash, recognized the deferred credit from the first closing and recorded a $ 24.1 million gain on this part of the license exchange.

Intangible Assets

Intangible Assets	6 Months Ended
	Jun. 30, 2015
Disclosure Text Block
Intangible Assets	7 . Intangible Assets Changes in Licenses at TDS for the six months ended June 30, 2015 are presented below. There were no significant changes to Franchise rights, Goodwill or other intangible assets during the six months ended June 30, 2015 . Licenses (Do llars in thousands) Balance December 31, 2014 $ 1,453,574 Acquisitions (1) 339,656 Exchanges (2) 43,485 Other 1,077 Balance June 30, 2015 $ 1,837,792 (1) Amount includes payments totaling $338.3 million made by Advantage Spectrum to the FCC for licenses in which it was the provisional winning bidder in Auction 97. See Note 6 — Acquisitions, Divestitures and Exchanges, and Note 9 — Variable Interest Entities for further information. (2) Amount represents licenses received in the March 2015 PCS license exchange. See Note 6 — Acquisitions, Divestitures and Exchanges for further information. Licenses disposed of in the exchange were previously removed from the Licenses balance and reflected in Assets held for sale in the Consolidated Balance S heet as of December 31, 2014.

Investments In Unconsolidated E

Investments In Unconsolidated Entities	6 Months Ended
	Jun. 30, 2015
Disclosure Text Block
Investments in Unconsolidated Entities	8 . Investments in Unconsolidated Entities Investments in unconsolidated entities consist of amounts invested in wireless and wireline entities in which TDS holds a noncontrolling interest. These investments are accounted for using either the equity or cost method. The following table, which is based on information provided in part by third parties, summarizes the combined results of operations of TDS’ equity method investments. T hree Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (Dollars in thousands) Revenues $ 1,726,558 $ 1,635,216 $ 3,460,818 $ 3,259,900 Operating expenses 1,281,625 1,209,412 2,572,643 2,343,092 Operating income 444,933 425,804 888,175 916,808 Other income, net (10,873) 378 (6,508) 2,403 Net income $ 434,060 $ 426,182 $ 881,667 $ 919,211

Variable Interest Entities

Variable Interest Entities	6 Months Ended
	Jun. 30, 2015
Disclosure Text Block
Variable Interest Entities	9 . Variable Interest Entities TDS consolidates variable interest entities (VIEs) in which it has a controlling financial interest and is the primary beneficiary. A controlling financial interest will have both of the following characteristics: (a) the power to direct the VIE activities that most significantly impact economic performance and (b) the obligation to absorb VIE losses and the right to receive benefits that are significant to the VIE. TDS reviews these criteria initially at the time it enters into agreements and subsequently when reconsideration events occur. Consolidated VIEs As of June 30, 2015 , TDS holds a variable interest in and consolidates the following VIEs under GAAP: Advantage Spectrum and Frequency Advantage L.P., the gene ral partner of Advantage Spectrum; Aquinas Wireless L.P. (“Aquinas Wireless”); and King Street Wireless L.P. (“King Street Wireless”) and King Street Wireless, Inc., the general partner of King Street Wireless. The power to direct the activities that most significantly impact the economic performance of Advantage Spectrum, Aquinas Wireless and King Street Wireless (collectively, the “limited partnerships”) 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; however, the general partner of each partnership needs the consent of the limited partner, a TDS subsidiary, to sell or lease certain licenses, to mak e certain large expenditures, admit other partners or liquidate the limited partnerships. Although the power to direct the activities of the VIEs is shared, TDS has a disproportionate level of exposure to the variability associated with the economic perfor mance of the VIEs, indicating that TDS is the primary beneficiary of the VIEs in accordance with GAAP. Accordingly, these VIEs are consolidated. The following table presents the classification of the consolidated VIEs’ assets and liabilities in TDS’ Cons olidated Balance Sheet. June 30, December 31, 2015 2014 (Dollars in thousands) Assets Cash and cash equivalents $ 2,069 $ 2,588 Other current assets 211 278 Licenses (1) 651,281 312,977 Property, plant and equipment, net 9,636 10,671 Other assets and deferred charges 150 60,059 Total assets $ 663,347 $ 386,573 Liabilities Current liabilities $ 83 $ 110 Deferred liabilities and credits 567 622 Total liabilities $ 650 $ 732 (1) Includes payments totaling $338.3 million made by Advantage Spectrum to the FCC as described below. Other Related Matters In March 2015, King Street Wireless made a $ 60.0 million distribution to its investors. Of this distribution, $ 6.0 million was provided to King Street Wireless, Inc. and $ 54.0 million was provided to U.S. Cellular. An FCC auction of AWS-3 spec trum licenses, referred to as Auction 97, ended in January 2015. TDS participated in Auction 97 indirectly through its interest in Advantage Spectrum. A subsidiary of U.S. Cellular is a limited partner in Advantage Spectrum. Advantage Spectrum qualified as a “designated entity,” and thereby was eligible for bid credits with respect to spectrum purchased in Auction 97. Advantage Spectrum was the winning bidder for 124 licenses for an aggregate bid of $ 338.3 million, after its designated entity discount of 25 %. This amount is classified as Licenses in TDS’ Consolidated Balance Sheet. Advantage Spectrum’s bid amount, less the initial deposit of $ 60.0 million paid in 2014, plus certain other charges totaling $ 2.3 million, were paid to the FCC in March 2015. To help fund this payment, U.S. Cellular made loans and capital contributions to Advantage Spectrum and Frequenc y Advantage totaling $ 280.6 million for the six months ended June 30, 2015 . There were no capital contributions, loans or advances made to TDS ’ VIEs during the six months ended June 30, 2014 . Advantage Spectrum, Aquinas Wireless and King Street Wireless were formed to participate in FCC auctions of wireless spect rum and to fund, establish, and provide wireless service with respect to any FCC licenses won in the auctions. As such, these entities have risks similar to those described in the “Risk Factors” in TDS’ Form 10-K for the year ended December 31, 2014 . TDS may agree to make additional capital contributions and/or advances to Advantage Spectrum, Aquinas Wireless or King Street Wireless and/or to their general partners to provide additional funding for the development of licenses granted in various auctions. TDS may finance such amounts with a combination of cash on hand, borrowings under its revolving credit agreement and/or other long-term debt. There is no assurance that TDS will be able to obtain additional financi ng on commercially reasonable terms or at all to provide such financial support.

Noncontrolling Interests

Noncontrolling Interests	6 Months Ended
	Jun. 30, 2015
Disclosure Text Block
Noncontrolling Interests	10 . Noncontrolling Interests The following schedule discloses the effects of Net income (loss) attributable to TDS shareholders and changes in TDS’ ownership interest in U.S. Cellular on TDS’ equity: Six Months Ended June 30, 2015 2014 (Dollars in thousands) Net income (loss) attributable to TDS shareholders $ 168,786 $ (3,784) Transfer (to) from the noncontrolling interests Change in TDS' Capital in excess of par value from U.S. Cellular's issuance of U.S. Cellular shares (13,096) (10,292) Change in TDS' Capital in excess of par value from U.S. Cellular's repurchases of U.S. Cellular shares 372 242 Purchase of ownership in subsidiaries from noncontrolling interests 240 – Net transfers (to) from noncontrolling interests (12,484) (10,050) Change from net income (loss) attributable to TDS and transfers (to) from noncontrolling interests $ 156,302 $ (13,834)

Common Share Repurchases

Common Share Repurchases	6 Months Ended
	Jun. 30, 2015
Disclosure Text Block
Common Share Repurchases	11 . Common Share Repurchases 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 . On November 17, 2009, the Board of Directors of U.S. Cellular aut horized 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. These purchases will be made pursuant to open market purchases, block purchases, private purchases or otherwise, depending on market conditions. This authorization does not have an expiration date . Share repurchases made under these authorizations were as follows: Number of Average Cost Six Months Ended June 30, Shares Per Share Amount (Dollar amounts and shares in thousands, except per share data) 2015 TDS Common Shares – $ – $ – U.S. Cellular Common Shares 66 $ 34.77 $ 2,302 2014 TDS Common Shares 809 $ 26.09 $ 21,096 U.S. Cellular Common Shares 212 $ 40.49 $ 8,598

Business Segment Information

Business Segment Information	6 Months Ended
	Jun. 30, 2015
Disclosure Text Block
Business Segment Information	12 . Business Segment Information U.S. Cellular and TDS Telecom are billed for all services they receive from TDS, consisting primarily of information processing, accounting and finance, and general management services. Such billings are based on expenses specifically identified to U.S. Cellular and TDS Telecom and on allocations of common expenses. Management believes the method used to allocate common expenses is reasonable and that all expenses and costs applicable to U.S. Cellular and TDS Telecom are reflected in the accompanying business segment information on a basis that is representative of what they would have been if U.S. Cellular and TDS Telecom operated on a stand-alon e basis. Financial data for TDS’ reportable segments for the three and six month periods ended, or as of June 30, 2015 and 2014 , i s as follows. See Note 1 — Basis of Presentation for additional information. TDS Telecom Three Months Ended or as of June 30, 2015 U.S. Cellular Wireline Cable HMS TDS Telecom Eliminations TDS Telecom Total Corporate, Eliminations and Other Total (Dollars in thousands) Operating revenues Services $ 824,373 $ 175,413 $ 44,545 $ 29,467 $ (1,358) $ 248,067 $ (1,790) $ 1,070,650 Equipment and product sales 151,294 557 70 46,119 – 46,746 7,705 205,745 Total operating revenues 975,667 175,970 44,615 75,586 (1,358) 294,813 5,915 1,276,395 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 196,276 62,604 19,849 21,954 (1,293) 103,114 762 300,152 Cost of equipment and products 253,671 5 97 15 38,566 – 39,178 5,601 298,450 Selling, general and administrative 362,971 49,200 13,764 10,969 (65) 73,868 (1,409) 435,430 Depreciation, amortization and accretion 150,581 41, 203 8,860 6,573 – 56,636 3,887 211,104 (Gain) loss on asset disposals, net 5,399 1,010 (1,668) 27 – (631) (16) 4,752 (Gain) loss on sale of business and other exit costs, net (1,705) (3,054) – – – (3,054) (830) (5,589) (Gain) loss on license sales and exchanges, net (25) – – – – – – (25) Operating income (loss) 8,499 24,410 3,795 (2,503) – 25,702 (2,080) 32,121 Equity in earnings of unconsolidated entities 35,584 9 – – – 9 (181) 35,412 Interest and dividend income 8,969 647 8 9 – 664 484 10,117 Interest expense (20,154) 290 143 (485) – (52) (13,713) (33,919) Other, net 91 (15) 2 107 – 94 17 202 Income (loss) before income taxes 32,989 25,341 3,948 (2,872) – 26,417 (15,473) 43,933 Income tax expense (benef it) (1) 13,079 10,625 (6,271) 17,433 Net income (loss) 19,910 15,792 (9,202) 26,500 Add back: Depreciation, amortization and accretion 150,581 41,203 8,860 6,573 – 56,636 3,887 211,104 (Gain) loss on asset disposals, net 5,399 1,010 (1,668) 27 – (631) (16) 4,752 (Gain) loss on sale of business and other exit costs, net (1,705) (3,054) – – – (3,054) (830) (5,589) (Gain) loss on license sales and exchanges, net (25) – – – – – – (25) Interest expense 20,154 (290) (143) 485 – 52 13,713 33,919 Income tax expense (benefit) (1) 13,079 10,625 (6,271) 17,433 Adjusted EBITDA (2) $ 207,393 $ 64,210 $ 10,997 $ 4,213 $ – $ 79,420 $ 1,281 $ 288,094 Investments in unconsolidated entities $ 325,857 $ 3,804 $ – $ – $ – $ 3,804 $ 34,544 $ 364,205 Total assets $ 6,596,619 $ 1,351,221 $ 568,494 $ 284,067 $ – $ 2,203,782 $ 185,911 $ 8,986,312 Capital expenditures $ 133,666 $ 31,722 $ 11,926 $ 9,422 $ – $ 53,070 $ 1,864 $ 188,600 TDS Telecom Three Months Ended or as of June 30, 2014 U.S. Cellular Wireline Cable HMS TDS Telecom Eliminations TDS Telecom Total Corporate, Eliminations and Other Total (Dollars in thousands) Operating revenues Services $ 843,473 $ 180,297 $ 22,484 $ 27,575 $ (298) $ 230,058 $ (1,352) $ 1,072,179 Equipment and product sales 114,300 431 – 40,361 – 40,792 9,121 164,213 Total operating revenues 957,773 180,728 22,484 67,936 (298) 270,850 7,769 1,236,392 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 187,131 64,305 11,394 21,301 (249) 96,751 2,606 286,488 Cost of equipment and products 271,978 481 – 33,875 – 34,356 6,677 313,011 Selling, general and administrative 404,252 47,708 6,285 12,376 (49) 66,320 330 470,902 Depreciation, amortization and accretion 148,337 41,827 4,557 6,791 – 53,175 3,055 204,567 (Gain) loss on asset disposals, net 6,893 514 425 44 – 983 27 7,903 (Gain) loss on sale of business and other exit costs, net (10,511) – – – – – 13,122 2,611 Operating income (loss) (50,307) 25,893 (177) (6,451) – 19,265 (18,048) (49,090) Equity in earnings of unconsolidated entities 33,120 4 – – – 4 1,666 34,790 Interest and dividend income 1,573 490 1 22 – 513 665 2,751 Interest expense (14,336) 677 30 (439) – 268 (13,830) (27,898) Other, net 100 (95) – 45 – (50) – 50 Income (loss) before income taxes (29,850) 26,969 (146) (6,823) – 20,000 (29,547) (39,397) Income tax expense (benefit) (1) (10,399) 7,962 (11,234) (13,671) Net income (loss) (19,451) 12,038 (18,313) (25,726) Add back: Depreciation, amortization and accretion 148,337 41,827 4,557 6,791 – 53,175 3,055 204,567 (Gain) loss on asset disposals, net 6,893 514 425 44 – 983 27 7,903 (Gain) loss on sale of business and other exit costs, net (10,511) – – – – – 13,122 2,611 Interest expense 14,336 (677) (30) 439 – (268) 13,830 27,898 Income tax expense (benefit) (1) (10,399) – – – – 7,962 (11,234) (13,671) Adjusted EBITDA (2) $ 129,205 $ 68,633 $ 4,806 $ 451 $ – $ 73,890 $ 487 $ 203,582 Investments in unconsolidated entities $ 270,215 $ 3,810 $ – $ – $ – $ 3,810 $ 34,636 $ 308,661 Total assets $ 6,298,967 $ 1,408,809 $ 287,809 $ 335,680 $ – $ 2,032,298 $ 376,404 $ 8,707,669 Capital expenditures $ 143,927 $ 27,370 $ 7,181 $ 10,628 $ – $ 45,179 $ 1,575 $ 190,681 TDS Telecom Six Months Ended or as of June 30, 2015 U.S. Cellular Wireline Cable HMS TDS Telecom Eliminations TDS Telecom Total Corporate, Eliminations and Other Total (D ollars in thousands) Operating revenues Services $ 1,652,584 $ 351,104 $ 88,026 $ 57,883 $ (2,038) $ 494,975 $ (3,818) $ 2,143,741 Equipment and product sales 288,328 1,001 158 78,664 – 79,823 16,096 384,247 Total operating revenues 1,940,912 352,105 88,184 136,547 (2,038) 574,798 12,278 2,527,988 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 386,953 125,031 39,797 41,982 (1,886) 204,924 1,922 593,799 Cost of equipment and products 491,972 1 ,160 75 65,696 – 66,931 11,528 570,431 Selling, general and administrative 731,939 94,869 26,389 23,659 (152) 144,765 (3,234) 873,470 Depreciation, amortization and accretion 297,666 83, 212 17,579 13,008 – 113,799 6,214 417,679 (Gain) loss on asset disposals, net 9,650 1,528 (986) (43) – 499 (20) 10,129 (Gain) loss on sale of business and other exit costs, net (113,182) (3,054) – – – (3,054) (13,136) (129,372) (Gain) loss on license sales and exchanges, net (122,898) – – – – – – (122,898) Operating income (loss) 258,812 49,359 5,330 (7,755) – 46,934 9,004 314,750 Equity in earnings of unconsolidated entities 70,055 13 – – – 13 (15) 70,053 Interest and dividend income 16,535 1,102 13 23 – 1,138 829 18,502 Interest expense (40,118) 591 243 (985) – (151) (27,480) (67,749) Other, net 196 (33) 3 14 – (16) 18 198 Income (loss) before income taxes 305,480 51,032 5,589 (8,703) – 47,918 (17,644) 335,754 Income tax expense (benef it) (1) 120,580 18,805 (5,932) 133,453 Net income (loss) 184,900 29,113 (11,712) 202,301 Add back: Depreciation, amortization and accretion 297,666 83,212 17,579 13,008 – 113,799 6,214 417,679 (Gain) loss on asset disposals, net 9,650 1,528 (986) (43) – 499 (20) 10,129 (Gain) loss on sale of business and other exit costs, net (113,182) (3,054) – – – (3,054) (13,136) (129,372) (Gain) loss on license sales and exchanges, net (122,8 98) – – – – – – (122,898) Interest expense 40,118 (591) (243) 985 – 151 27,480 67,749 Income tax expense (benefit) (1) 120,580 18,805 (5,932) 133,453 Adjusted EBITDA (2) $ 416,834 $ 132,127 $ 21,939 $ 5,247 $ – $ 159,313 $ 2,894 $ 579,041 Investments in unconsolidated entities $ 325,857 $ 3,804 $ – $ – $ – $ 3,804 $ 34,544 $ 364,205 Total assets $ 6,596,619 $ 1,351,221 $ 568,494 $ 284,067 $ – $ 2,203,782 $ 185,911 $ 8,986,312 Capital expenditures $ 200,126 $ 52,163 $ 23,552 $ 14,251 $ – $ 89,966 $ 3,145 $ 293,237 TDS Telecom Six Months Ended or as of June 30, 2014 U.S. Cellular Wireline Cable HMS TDS Telecom Eliminations TDS Telecom Total Corporate, Eliminations and Other Total (Dollars in thousands) Operating revenues Services $ 1,697,086 $ 357,230 $ 44,987 $ 54,951 $ (979) $ 456,189 $ (854) $ 2,152,421 Equipment and product sales 186,498 984 – 76,093 – 77,077 16,358 279,933 Total operating revenues 1,883,584 358,214 44,987 131,044 (979) 533,266 15,504 2,432,354 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 367,738 128,7 05 22,349 38,247 (894) 188,407 6,301 562,446 Cost of equipment and products 542,452 9 64 – 64,342 – 65,306 11,900 619,658 Selling, general and administrative 799,816 94,228 12,663 27,211 (85) 134,017 738 934,571 Depreciation, amortization and accretion 316,090 84, 563 8,918 13,469 – 106,950 6,446 429,486 (Gain) loss on asset disposals, net 8,827 759 490 78 – 1,327 179 10,333 (Gain) loss on sale of business and other exit costs, ne t (17,411) – – – – – 13,122 (4,289) (Gain) loss on license sales and exchanges, net (91,446) – – – – – – (91,446) Operating income (loss) (42,482) 48,995 567 (12,303) – 37,259 (23,182) (28,405) Equity in earnings of unconsolidated entities 70,195 4 – – – 4 1,918 72,117 Interest and dividend income 2,457 1,175 2 42 – 1,219 1,561 5,237 Interest expense (29,198) 1,341 35 (860) – 516 (27,923) (56,605) Other, net 186 (149) – 179 – 30 (6) 210 Income (loss) before income taxes 1,158 51,366 604 (12,942) – 39,028 (47,632) (7,446) Income tax expense (benef it) (1) 2,205 15,508 (19,727) (2,014) Net income (loss) (1,047) 23,520 (27,905) (5,432) Add back: Depreciation, amortization and accretion 316,090 84,563 8,918 13,469 – 106,950 6,446 429,486 (Gain) loss on asset disposals, net 8,827 759 490 78 – 1,327 179 10,333 (Gain) loss on sale of business and other exit costs, net (17,411) – – – – – 13,122 (4,289) (Gain) loss on license sales and exchanges, net (91,44 6) – – – – – – (91,446) Interest expense 29,198 (1,341) (35) 860 – (516) 27,923 56,605 Income tax expense (benefit) (1) 2,205 – – – – 15,508 (19,727) (2,014) Adjusted EBITDA (2) $ 246,416 $ 135,347 $ 9,977 $ 1,465 $ – $ 146,789 $ 38 $ 393,243 Investments in unconsolidated entities $ 270,215 $ 3,810 $ – $ – $ – $ 3,810 $ 34,636 $ 308,661 Total assets $ 6,298,967 $ 1,408,809 $ 287,809 $ 335,680 $ – $ 2,032,298 $ 376,404 $ 8,707,669 Capital expenditures $ 233,508 $ 50,268 $ 13,400 $ 13,379 $ – $ 77,047 $ 2,724 $ 313,279 (1) Income tax expense (benefit) is not provided at the individual segment level for Wireline, Cable and HMS. TDS calculates income tax expense for “TDS Telecom Total”. (2) Adjusted earnings before interest, taxes, depreciation, amortization and accretion (“Adjusted EBITDA”) is a segment measure reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and asse ssing their performance. Adjusted EBITDA is defined as net income, adjusted for the items set forth in the reconciliation above. Adjusted EBITDA excludes these items in order to show operating results on a more comparable basis from period to period. Fr om time to time, TDS may also exclude other items from Adjusted EBITDA if such items help reflect operating results on a more comparable basis. TDS does not intend to imply that any of such items that are excluded are non-recurring, infrequent or unusual; such items may occur in the future. TDS believes Adjusted EBITDA is a useful measure of TDS’ operating results before significant recurring non-cash charges, discrete gains and losses, and other items as indicated above.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2015
Disclosure Text Block
Subsequent events	13 . Subsequent Events I n January 2015, U.S. Cellular entered into a senior term loan credit facility. In July 2015, U.S. Cellular borrowed the full amount of $225 million available under this facility. These funds will be used for general corporate purposes, including working capital, spectrum purchases and capital expenditures. Amounts borrowed will be due and payable in quarterly installments of $2.8 million beginning in March 20 16 through December 2021, and the remaining unpaid balance will be due and payable in January 2022.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures
Fair value measurements	Level within the Fair Value Hierarchy June 30, 2015 December 31, 2014 Book Value Fair Value Book Value Fair Value (Dollars in thousands) Cash and cash equivalents 1 $ 631,549 $ 631,549 $ 471,901 $ 471,901 Long-term debt Retail 2 1,453,250 1,435,862 1,453,250 1,414,105 Institutional and other 2 537,315 508,127 537,471 518,322

Equipment Installment Plans (Ta

Equipment Installment Plans (Table)	6 Months Ended
	Jun. 30, 2015
Equipment Installment Plans
Equipment installment plans	(Dollars in thousands) June 30, 2015 December 31, 2014 Short-term portion of unbilled equipment installment plan receivables, gross $ 208,955 $ 127,400 Short-term portion of unbilled deferred interest (19,488) (16,365) Short-term portion of unbilled allowance for credit losses (7,404) (3,686) Short-term portion of unbilled equipment installment plan receivables, net $ 182,063 $ 107,349 Long-term portion of unbilled equipment installment plan receivables, gross $ 73,548 $ 89,435 Long-term portion of unbilled deferred interest (1,136) (2,791) Long-term portion of unbilled allowance for credit losses (5,176) (6,065) Long-term portion of unbilled equipment installment plan receivables, net $ 67,236 $ 80,579

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2015
Earnings Per Share
Earnings per share	Three Mont hs Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (Dollars and shares in thousands, except per share amounts) Basic earnings (loss) per share attributable to TDS shareholders: Net income (loss) available to common shareholders of TDS used in basic earnings (loss) per share $ 23,034 $ (22,050) $ 168,761 $ (3,809) Adjustments to compute diluted earnings (loss): Noncontrolling interest adjustment (116) – (1,214) (5) Preferred dividend adjustment – – 25 – Net income (loss) attributable to common shareholders of TDS used in diluted earnings (loss) per share $ 22,918 $ (22,050) $ 167,572 $ (3,814) Weighted average number of shares used in basic earnings (loss) per share: Common Shares 101,296 101,543 101,144 101,682 Series A Common Shares 7,188 7,176 7,183 7,171 Total 108,484 108,719 108,327 108,853 Effects of dilutive securities: Stock options 896 – 623 – Restricted stock units 405 – 384 – Preferred shares – – 46 – Weighted average number of shares used in diluted earnings (loss) per share 109,785 108,719 109,380 108,853 Basic earnings (loss) per share attributable to TDS shareholders $ 0.21 $ (0.20) $ 1.56 $ (0.04) Diluted earnings (loss) per share attributable to TDS shareholders $ 0.21 $ (0.20) $ 1.53 $ (0.04)
Summary of antidilutive shares	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (Shares in thousands) Stock options 4,523 8,883 5,304 8,777 Restricted stock units 204 824 104 737 Preferred shares 46 56 – 56

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2015
Licenses
Licenses	Licenses (Do llars in thousands) Balance December 31, 2014 $ 1,453,574 Acquisitions (1) 339,656 Exchanges (2) 43,485 Other 1,077 Balance June 30, 2015 $ 1,837,792 (1) Amount includes payments totaling $338.3 million made by Advantage Spectrum to the FCC for licenses in which it was the provisional winning bidder in Auction 97. See Note 6 — Acquisitions, Divestitures and Exchanges, and Note 9 — Variable Interest Entities for further information. (2) Amount represents licenses received in the March 2015 PCS license exchange. See Note 6 — Acquisitions, Divestitures and Exchanges for further information. Licenses disposed of in the exchange were previously removed from the Licenses balance and reflected in Assets held for sale in the Consolidated Balance S heet as of December 31, 2014.

Investment in Unconsolidated En

Investment in Unconsolidated Entities (Tables)	6 Months Ended
	Jun. 30, 2015
Equity Method Investment, Summarized Financial Information
Equity method investments, summarized results of operations	T hree Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (Dollars in thousands) Revenues $ 1,726,558 $ 1,635,216 $ 3,460,818 $ 3,259,900 Operating expenses 1,281,625 1,209,412 2,572,643 2,343,092 Operating income 444,933 425,804 888,175 916,808 Other income, net (10,873) 378 (6,508) 2,403 Net income $ 434,060 $ 426,182 $ 881,667 $ 919,211

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	6 Months Ended
	Jun. 30, 2015
Variable Interest Entities VIEs
Consolidated VIE assets and liabilities	June 30, December 31, 2015 2014 (Dollars in thousands) Assets Cash and cash equivalents $ 2,069 $ 2,588 Other current assets 211 278 Licenses (1) 651,281 312,977 Property, plant and equipment, net 9,636 10,671 Other assets and deferred charges 150 60,059 Total assets $ 663,347 $ 386,573 Liabilities Current liabilities $ 83 $ 110 Deferred liabilities and credits 567 622 Total liabilities $ 650 $ 732 (1) Includes payments totaling $338.3 million made by Advantage Spectrum to the FCC as described below.

Noncontrolling Interests (Table

Noncontrolling Interests (Tables)	6 Months Ended
	Jun. 30, 2015
Noncontrolling interests
Noncontrolling interests	Six Months Ended June 30, 2015 2014 (Dollars in thousands) Net income (loss) attributable to TDS shareholders $ 168,786 $ (3,784) Transfer (to) from the noncontrolling interests Change in TDS' Capital in excess of par value from U.S. Cellular's issuance of U.S. Cellular shares (13,096) (10,292) Change in TDS' Capital in excess of par value from U.S. Cellular's repurchases of U.S. Cellular shares 372 242 Purchase of ownership in subsidiaries from noncontrolling interests 240 – Net transfers (to) from noncontrolling interests (12,484) (10,050) Change from net income (loss) attributable to TDS and transfers (to) from noncontrolling interests $ 156,302 $ (13,834)

Common Share Repurchases (Table

Common Share Repurchases (Tables)	6 Months Ended
	Jun. 30, 2015
Common Share Repurchases
Share repurchases	Number of Average Cost Six Months Ended June 30, Shares Per Share Amount (Dollar amounts and shares in thousands, except per share data) 2015 TDS Common Shares – $ – $ – U.S. Cellular Common Shares 66 $ 34.77 $ 2,302 2014 TDS Common Shares 809 $ 26.09 $ 21,096 U.S. Cellular Common Shares 212 $ 40.49 $ 8,598

Business Segment (Tables)

Business Segment (Tables)	6 Months Ended
	Jun. 30, 2015
Business Segment Information
Business segment information	TDS Telecom Three Months Ended or as of June 30, 2015 U.S. Cellular Wireline Cable HMS TDS Telecom Eliminations TDS Telecom Total Corporate, Eliminations and Other Total (Dollars in thousands) Operating revenues Services $ 824,373 $ 175,413 $ 44,545 $ 29,467 $ (1,358) $ 248,067 $ (1,790) $ 1,070,650 Equipment and product sales 151,294 557 70 46,119 – 46,746 7,705 205,745 Total operating revenues 975,667 175,970 44,615 75,586 (1,358) 294,813 5,915 1,276,395 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 196,276 62,604 19,849 21,954 (1,293) 103,114 762 300,152 Cost of equipment and products 253,671 5 97 15 38,566 – 39,178 5,601 298,450 Selling, general and administrative 362,971 49,200 13,764 10,969 (65) 73,868 (1,409) 435,430 Depreciation, amortization and accretion 150,581 41, 203 8,860 6,573 – 56,636 3,887 211,104 (Gain) loss on asset disposals, net 5,399 1,010 (1,668) 27 – (631) (16) 4,752 (Gain) loss on sale of business and other exit costs, net (1,705) (3,054) – – – (3,054) (830) (5,589) (Gain) loss on license sales and exchanges, net (25) – – – – – – (25) Operating income (loss) 8,499 24,410 3,795 (2,503) – 25,702 (2,080) 32,121 Equity in earnings of unconsolidated entities 35,584 9 – – – 9 (181) 35,412 Interest and dividend income 8,969 647 8 9 – 664 484 10,117 Interest expense (20,154) 290 143 (485) – (52) (13,713) (33,919) Other, net 91 (15) 2 107 – 94 17 202 Income (loss) before income taxes 32,989 25,341 3,948 (2,872) – 26,417 (15,473) 43,933 Income tax expense (benef it) (1) 13,079 10,625 (6,271) 17,433 Net income (loss) 19,910 15,792 (9,202) 26,500 Add back: Depreciation, amortization and accretion 150,581 41,203 8,860 6,573 – 56,636 3,887 211,104 (Gain) loss on asset disposals, net 5,399 1,010 (1,668) 27 – (631) (16) 4,752 (Gain) loss on sale of business and other exit costs, net (1,705) (3,054) – – – (3,054) (830) (5,589) (Gain) loss on license sales and exchanges, net (25) – – – – – – (25) Interest expense 20,154 (290) (143) 485 – 52 13,713 33,919 Income tax expense (benefit) (1) 13,079 10,625 (6,271) 17,433 Adjusted EBITDA (2) $ 207,393 $ 64,210 $ 10,997 $ 4,213 $ – $ 79,420 $ 1,281 $ 288,094 Investments in unconsolidated entities $ 325,857 $ 3,804 $ – $ – $ – $ 3,804 $ 34,544 $ 364,205 Total assets $ 6,596,619 $ 1,351,221 $ 568,494 $ 284,067 $ – $ 2,203,782 $ 185,911 $ 8,986,312 Capital expenditures $ 133,666 $ 31,722 $ 11,926 $ 9,422 $ – $ 53,070 $ 1,864 $ 188,600 TDS Telecom Three Months Ended or as of June 30, 2014 U.S. Cellular Wireline Cable HMS TDS Telecom Eliminations TDS Telecom Total Corporate, Eliminations and Other Total (Dollars in thousands) Operating revenues Services $ 843,473 $ 180,297 $ 22,484 $ 27,575 $ (298) $ 230,058 $ (1,352) $ 1,072,179 Equipment and product sales 114,300 431 – 40,361 – 40,792 9,121 164,213 Total operating revenues 957,773 180,728 22,484 67,936 (298) 270,850 7,769 1,236,392 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 187,131 64,305 11,394 21,301 (249) 96,751 2,606 286,488 Cost of equipment and products 271,978 481 – 33,875 – 34,356 6,677 313,011 Selling, general and administrative 404,252 47,708 6,285 12,376 (49) 66,320 330 470,902 Depreciation, amortization and accretion 148,337 41,827 4,557 6,791 – 53,175 3,055 204,567 (Gain) loss on asset disposals, net 6,893 514 425 44 – 983 27 7,903 (Gain) loss on sale of business and other exit costs, net (10,511) – – – – – 13,122 2,611 Operating income (loss) (50,307) 25,893 (177) (6,451) – 19,265 (18,048) (49,090) Equity in earnings of unconsolidated entities 33,120 4 – – – 4 1,666 34,790 Interest and dividend income 1,573 490 1 22 – 513 665 2,751 Interest expense (14,336) 677 30 (439) – 268 (13,830) (27,898) Other, net 100 (95) – 45 – (50) – 50 Income (loss) before income taxes (29,850) 26,969 (146) (6,823) – 20,000 (29,547) (39,397) Income tax expense (benefit) (1) (10,399) 7,962 (11,234) (13,671) Net income (loss) (19,451) 12,038 (18,313) (25,726) Add back: Depreciation, amortization and accretion 148,337 41,827 4,557 6,791 – 53,175 3,055 204,567 (Gain) loss on asset disposals, net 6,893 514 425 44 – 983 27 7,903 (Gain) loss on sale of business and other exit costs, net (10,511) – – – – – 13,122 2,611 Interest expense 14,336 (677) (30) 439 – (268) 13,830 27,898 Income tax expense (benefit) (1) (10,399) – – – – 7,962 (11,234) (13,671) Adjusted EBITDA (2) $ 129,205 $ 68,633 $ 4,806 $ 451 $ – $ 73,890 $ 487 $ 203,582 Investments in unconsolidated entities $ 270,215 $ 3,810 $ – $ – $ – $ 3,810 $ 34,636 $ 308,661 Total assets $ 6,298,967 $ 1,408,809 $ 287,809 $ 335,680 $ – $ 2,032,298 $ 376,404 $ 8,707,669 Capital expenditures $ 143,927 $ 27,370 $ 7,181 $ 10,628 $ – $ 45,179 $ 1,575 $ 190,681 TDS Telecom Six Months Ended or as of June 30, 2015 U.S. Cellular Wireline Cable HMS TDS Telecom Eliminations TDS Telecom Total Corporate, Eliminations and Other Total (D ollars in thousands) Operating revenues Services $ 1,652,584 $ 351,104 $ 88,026 $ 57,883 $ (2,038) $ 494,975 $ (3,818) $ 2,143,741 Equipment and product sales 288,328 1,001 158 78,664 – 79,823 16,096 384,247 Total operating revenues 1,940,912 352,105 88,184 136,547 (2,038) 574,798 12,278 2,527,988 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 386,953 125,031 39,797 41,982 (1,886) 204,924 1,922 593,799 Cost of equipment and products 491,972 1 ,160 75 65,696 – 66,931 11,528 570,431 Selling, general and administrative 731,939 94,869 26,389 23,659 (152) 144,765 (3,234) 873,470 Depreciation, amortization and accretion 297,666 83, 212 17,579 13,008 – 113,799 6,214 417,679 (Gain) loss on asset disposals, net 9,650 1,528 (986) (43) – 499 (20) 10,129 (Gain) loss on sale of business and other exit costs, net (113,182) (3,054) – – – (3,054) (13,136) (129,372) (Gain) loss on license sales and exchanges, net (122,898) – – – – – – (122,898) Operating income (loss) 258,812 49,359 5,330 (7,755) – 46,934 9,004 314,750 Equity in earnings of unconsolidated entities 70,055 13 – – – 13 (15) 70,053 Interest and dividend income 16,535 1,102 13 23 – 1,138 829 18,502 Interest expense (40,118) 591 243 (985) – (151) (27,480) (67,749) Other, net 196 (33) 3 14 – (16) 18 198 Income (loss) before income taxes 305,480 51,032 5,589 (8,703) – 47,918 (17,644) 335,754 Income tax expense (benef it) (1) 120,580 18,805 (5,932) 133,453 Net income (loss) 184,900 29,113 (11,712) 202,301 Add back: Depreciation, amortization and accretion 297,666 83,212 17,579 13,008 – 113,799 6,214 417,679 (Gain) loss on asset disposals, net 9,650 1,528 (986) (43) – 499 (20) 10,129 (Gain) loss on sale of business and other exit costs, net (113,182) (3,054) – – – (3,054) (13,136) (129,372) (Gain) loss on license sales and exchanges, net (122,8 98) – – – – – – (122,898) Interest expense 40,118 (591) (243) 985 – 151 27,480 67,749 Income tax expense (benefit) (1) 120,580 18,805 (5,932) 133,453 Adjusted EBITDA (2) $ 416,834 $ 132,127 $ 21,939 $ 5,247 $ – $ 159,313 $ 2,894 $ 579,041 Investments in unconsolidated entities $ 325,857 $ 3,804 $ – $ – $ – $ 3,804 $ 34,544 $ 364,205 Total assets $ 6,596,619 $ 1,351,221 $ 568,494 $ 284,067 $ – $ 2,203,782 $ 185,911 $ 8,986,312 Capital expenditures $ 200,126 $ 52,163 $ 23,552 $ 14,251 $ – $ 89,966 $ 3,145 $ 293,237 TDS Telecom Six Months Ended or as of June 30, 2014 U.S. Cellular Wireline Cable HMS TDS Telecom Eliminations TDS Telecom Total Corporate, Eliminations and Other Total (Dollars in thousands) Operating revenues Services $ 1,697,086 $ 357,230 $ 44,987 $ 54,951 $ (979) $ 456,189 $ (854) $ 2,152,421 Equipment and product sales 186,498 984 – 76,093 – 77,077 16,358 279,933 Total operating revenues 1,883,584 358,214 44,987 131,044 (979) 533,266 15,504 2,432,354 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 367,738 128,7 05 22,349 38,247 (894) 188,407 6,301 562,446 Cost of equipment and products 542,452 9 64 – 64,342 – 65,306 11,900 619,658 Selling, general and administrative 799,816 94,228 12,663 27,211 (85) 134,017 738 934,571 Depreciation, amortization and accretion 316,090 84, 563 8,918 13,469 – 106,950 6,446 429,486 (Gain) loss on asset disposals, net 8,827 759 490 78 – 1,327 179 10,333 (Gain) loss on sale of business and other exit costs, ne t (17,411) – – – – – 13,122 (4,289) (Gain) loss on license sales and exchanges, net (91,446) – – – – – – (91,446) Operating income (loss) (42,482) 48,995 567 (12,303) – 37,259 (23,182) (28,405) Equity in earnings of unconsolidated entities 70,195 4 – – – 4 1,918 72,117 Interest and dividend income 2,457 1,175 2 42 – 1,219 1,561 5,237 Interest expense (29,198) 1,341 35 (860) – 516 (27,923) (56,605) Other, net 186 (149) – 179 – 30 (6) 210 Income (loss) before income taxes 1,158 51,366 604 (12,942) – 39,028 (47,632) (7,446) Income tax expense (benef it) (1) 2,205 15,508 (19,727) (2,014) Net income (loss) (1,047) 23,520 (27,905) (5,432) Add back: Depreciation, amortization and accretion 316,090 84,563 8,918 13,469 – 106,950 6,446 429,486 (Gain) loss on asset disposals, net 8,827 759 490 78 – 1,327 179 10,333 (Gain) loss on sale of business and other exit costs, net (17,411) – – – – – 13,122 (4,289) (Gain) loss on license sales and exchanges, net (91,44 6) – – – – – – (91,446) Interest expense 29,198 (1,341) (35) 860 – (516) 27,923 56,605 Income tax expense (benefit) (1) 2,205 – – – – 15,508 (19,727) (2,014) Adjusted EBITDA (2) $ 246,416 $ 135,347 $ 9,977 $ 1,465 $ – $ 146,789 $ 38 $ 393,243 Investments in unconsolidated entities $ 270,215 $ 3,810 $ – $ – $ – $ 3,810 $ 34,636 $ 308,661 Total assets $ 6,298,967 $ 1,408,809 $ 287,809 $ 335,680 $ – $ 2,032,298 $ 376,404 $ 8,707,669 Capital expenditures $ 233,508 $ 50,268 $ 13,400 $ 13,379 $ – $ 77,047 $ 2,724 $ 313,279 (1) Income tax expense (benefit) is not provided at the individual segment level for Wireline, Cable and HMS. TDS calculates income tax expense for “TDS Telecom Total”. (2) Adjusted earnings before interest, taxes, depreciation, amortization and accretion (“Adjusted EBITDA”) is a segment measure reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and asse ssing their performance. Adjusted EBITDA is defined as net income, adjusted for the items set forth in the reconciliation above. Adjusted EBITDA excludes these items in order to show operating results on a more comparable basis from period to period. Fr om time to time, TDS may also exclude other items from Adjusted EBITDA if such items help reflect operating results on a more comparable basis. TDS does not intend to imply that any of such items that are excluded are non-recurring, infrequent or unusual; such items may occur in the future. TDS believes Adjusted EBITDA is a useful measure of TDS’ operating results before significant recurring non-cash charges, discrete gains and losses, and other items as indicated above.

Basis of Presentation (Details)

Basis of Presentation (Details) - Segment [Domain] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Basis of Presentation
Business segments, additional information			TDS’ business segments reflected in this Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2015 are U.S. Cellular, TDS Telecom’s Wireline, Cable, and Hosted and Managed Services (“HMS”) operations. TDS’ non-reportable other business activities are presented as “Corporate, Eliminations and Other”, which includes the operations of TDS’ wholly-owned subsidiaries Suttle-Straus, Inc. (“Suttle-Straus”) and Airadigm Communications, Inc. (“Airadigm”).
Amounts recorded gross in revenues that are billed to customers and remitted to governmental authorities	$ 25.2	$ 29.1	$ 51.5	$ 60.1
Long-term notes
Basis of Presentation
Debt issuance costs, net	$ 54.8		$ 54.8
U.S. Cellular
Basis of Presentation
TDS ownership of U.S. Cellular	84.00%		84.00%

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Fair Value | Level 1
Financial Instruments
Cash and cash equivalents	$ 631,549	$ 471,901
Fair Value | Level 2 | Retail
Financial Instruments
Long-term debt	1,435,862	1,414,105
Fair Value | Level 2 | Institutional and Other
Financial Instruments
Long-term debt	508,127	518,322
Book Value
Financial Instruments
Cash and cash equivalents	631,549	471,901
Book Value | Retail
Financial Instruments
Long-term debt	1,453,250	1,453,250
Book Value | Institutional and Other
Financial Instruments
Long-term debt	537,315	537,471
Cash and cash equivalents	$ 631,549	$ 471,901	$ 874,860	$ 830,014
Institutional and Other | Minimum
Financial Instruments
Fair value assumption, interest rate	0.00%	0.00%
Institutional and Other | Maximum
Financial Instruments
Fair value assumption, interest rate	7.44%	7.25%

Equipment Installment Plans (De

Equipment Installment Plans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Equipment installment plan receivables
Equipment installment plan payment period			24 months
Guarantee liability	$ 80,200		$ 80,200		$ 57,500
Accounting Changes and Error Corrections
Equipment and product sales	205,745	$ 164,213	384,247	$ 279,933
Income before income taxes	43,933	$ (39,397)	$ 335,754	$ (7,446)
Adjustment
Accounting Changes and Error Corrections
Immaterial Error Correction			TDS recorded out-of-period adjustments during the six months ended June 30, 2015 due to errors related to equipment installment plan transactions that were attributable to 2014.  TDS has determined that these adjustments were not material to the prior quarterly or annual periods, and also were not material to the current period or anticipated full year 2015 results.  These equipment installment plan adjustments had the impact of reducing Equipment and product sales revenues by $5.7 million and $6.2 million, and Income before income taxes by $5.3 million and $5.8 million, for the three and six months ended June 30, 2015, respectively.
Equipment and product sales	5,700		$ 6,200
Income before income taxes	5,300		5,800
Short-term
Equipment installment plan receivables
Unbilled equipment installment plan receivables, gross	208,955		208,955		127,400
Unbilled deferred interest	(19,488)		(19,488)		(16,365)
Unbilled allowance for credit losses	(7,404)		(7,404)		(3,686)
Unbilled equipment installment plan receivables, net	182,063		182,063		107,349
Long-term
Equipment installment plan receivables
Unbilled equipment installment plan receivables, gross	73,548		73,548		89,435
Unbilled deferred interest	(1,136)		(1,136)		(2,791)
Unbilled allowance for credit losses	(5,176)		(5,176)		(6,065)
Unbilled equipment installment plan receivables, net	$ 67,236		$ 67,236		$ 80,579

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Tax Disclosure
Effective income tax rate	39.70%	34.70%	39.70%	27.00%

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Basic earnings (loss) per share attributable to TDS shareholders
Net income (loss) available to common shareholders of TDS used in basic earnings (loss) per share	$ 23,034	$ (22,050)	$ 168,761	$ (3,809)
Adjustments to compute diluted earnings (loss)
Noncontrolling interest adjustment	(116)		(1,214)	(5)
Preferred dividend adjustment			25
Net income (loss) attributable to common shareholders of TDS used in diluted earnings (loss) per share	$ 22,918	$ (22,050)	$ 167,572	$ (3,814)
Weighted average number of shares used in basic earnings (loss) per share
Weighted average number of shares used in basic earnings (loss) per share	108,484	108,719	108,327	108,853
Effects of dilutive securities:
Stock options	896		623
Restricted stock units	405		384
Preferred shares			46
Weighted average number of shares used in diluted earnings (loss) per share	109,785	108,719	109,380	108,853
Earnings per share, Other disclosures
Basic earnings (loss) per share attributable to TDS shareholders	$ 0.21	$ (0.20)	$ 1.56	$ (0.04)
Diluted earnings (loss) per share attributable to TDS shareholders	$ 0.21	$ (0.20)	$ 1.53	$ (0.04)
Stock Options
Earnings per share, Other disclosures
Antidilutive shares	4,523	8,883	5,304	8,777
Restricted Stock Units
Earnings per share, Other disclosures
Antidilutive shares	204	824	104	737
Preferred Shares
Earnings per share, Other disclosures
Antidilutive shares	46	56		56
Common Shares
Weighted average number of shares used in basic earnings (loss) per share
Weighted average number of shares used in basic earnings (loss) per share	101,296	101,543	101,144	101,682
Series A Common Shares
Weighted average number of shares used in basic earnings (loss) per share
Weighted average number of shares used in basic earnings (loss) per share	7,188	7,176	7,183	7,171

Acquisitions, Divestitures and

Acquisitions, Divestitures and Exchanges, acquisitions (Details) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2015USD ($)	Dec. 31, 2014USD ($)
Acquisitions, divestitures and exchanges
Total winning bid	$ 338.3
U.S. Cellular | License Acquisitions | Auction 97
Acquisitions, divestitures and exchanges
Description of acquired entity	An FCC auction of AWS-3 spectrum licenses, referred to as Auction 97, ended in January 2015.  U.S. Cellular participated in Auction 97 indirectly through its limited partnership interest in Advantage Spectrum L.P. (“Advantage Spectrum”). Advantage Spectrum was the provisional winning bidder for 124 licenses for an aggregate winning bid of $338.3 million, after its designated entity discount of 25%.  Advantage Spectrum’s bid amount, less the initial deposit amount of $60.0 million paid in 2014, was paid to the FCC in March 2015.  These licenses are expected to be granted by the FCC during the latter half of 2015.  See Note 9 — Variable Interest Entities for additional information.
Federal Communications Commission deposit		$ 60
Licenses won	124
Total winning bid	$ 338.3
Designated entity auction discount	25.00%

Acquisitions, Divestitures an36

Acquisitions, Divestitures and Exchanges, divestitures (Details) $ in Thousands	May. 16, 2013USD ($)	Jan. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Divestiture Financial Impacts
Cash received from divestitures and exchanges						$ 291,888	$ 125,905
(Gain) loss on sale of business and other exit costs, net				$ (5,589)	$ 2,611	(129,372)	(4,289)
U.S. Cellular
Divestiture Financial Impacts
(Gain) loss on sale of business and other exit costs, net				(1,705)	(10,511)	$ (113,182)	(17,411)
U.S. Cellular | Divestiture Transaction
Divestitures
Business divestiture description						On May 16, 2013, pursuant to a Purchase and Sale Agreement, U.S. Cellular sold customers and certain PCS license spectrum to subsidiaries of Sprint Corp. fka Sprint Nextel Corporation (“Sprint”) in U.S. Cellular’s Chicago, central Illinois, St. Louis and certain Indiana/Michigan/Ohio markets (“Divestiture Markets”) in consideration for $480 million in cash. The Purchase and Sale Agreement also contemplated certain other agreements, together with the Purchase and Sale Agreement collectively referred to as the “Divestiture Transaction.”  These agreements require Sprint to reimburse U.S. Cellular up to $200 million (the “Sprint Cost Reimbursement”) for certain network decommissioning costs, network site lease rent and termination costs, network access termination costs, and employee termination benefits for specified engineering employees.
Divestiture Financial Impacts
Cash received from divestitures and exchanges	$ 480,000
(Gain) loss on sale of business and other exit costs, net				$ (1,500)	$ (10,600)	$ (5,900)	(17,700)
U.S. Cellular | Tower sale
Divestitures
Business divestiture description						In December 2014, U.S. Cellular entered into an agreement with a third party to sell 595 towers and certain related contracts, assets, and liabilities for $159.0 million.  This transaction was accomplished in two closings.  The first closing occurred in December 2014 and included the sale of 236 towers, without tenants, for $10.0 million.  On this same date, U.S. Cellular received $7.5 million in earnest money.  At the time of the first closing, a $4.7 million gain was recorded.  The second closing for the remaining 359 towers, primarily with tenants, took place in January 2015, at which time U.S. Cellular received $141.5 million in additional cash proceeds and recorded a gain of $119.6 million in (Gain) loss on sale of business and other exit costs, net.
Number Of Towers				595		595		595
Divestiture Financial Impacts
Cash received from divestitures and exchanges						$ 159,000
U.S. Cellular | Tower sale - first closing
Divestitures
Number Of Towers			236
Divestiture Financial Impacts
Cash received from divestitures and exchanges			$ 10,000
(Gain) loss on sale of business and other exit costs, net			(4,700)
U.S. Cellular | Tower sale - second closing
Divestitures
Number Of Towers		359
Divestiture Financial Impacts
Cash received from divestitures and exchanges		$ 141,500
(Gain) loss on sale of business and other exit costs, net		$ (119,600)
U.S. Cellular | Sprint Cost Reimbursement | Divestiture Transaction
Divestiture Financial Impacts
Cash received from divestitures and exchanges						$ 23,200	$ 34,100	$ 104,800
U.S. Cellular | Sprint Cost Reimbursement | Maximum | Expected event | Divestiture Transaction
Divestiture Financial Impacts
Cash received from divestitures and exchanges									$ 200,000
U.S. Cellular | Earnest money received | Tower sale - first closing
Divestiture Financial Impacts
Cash received from divestitures and exchanges			$ 7,500

Acquisitions, Divestitures an37

Acquisitions, Divestitures and Exchanges, exchanges (Details) - USD ($) $ in Thousands	1 Months Ended			3 Months Ended	6 Months Ended
	Jul. 31, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2015	Jun. 30, 2015	Jun. 30, 2014
Exchanges
(Gain) loss on license sales and exchanges, net				$ (25)	$ (122,898)	$ (91,446)
Cash received from divestitures and exchanges					291,888	125,905
Other current liabilities			$ 181,803	134,516	134,516
Assets held for sale			103,343	22,203	22,203
U.S. Cellular
Exchanges
(Gain) loss on license sales and exchanges, net				(25)	$ (122,898)	$ (91,446)
U.S. Cellular | PCS and AWS license exchange
Exchanges
Asset exchange description					In September 2014, U.S. Cellular entered into an agreement with a third party to exchange certain PCS and AWS licenses for certain other PCS and AWS licenses and $28.0 million of cash.  This license exchange was accomplished in two closings.  The first closing occurred in December 2014 at which time U.S. Cellular received licenses with an estimated fair value, per a market approach, of $51.5 million, recorded a $21.7 million gain and recorded an $18.3 million deferred credit in Other current liabilities. The license that was transferred to the counterparty in the second closing had a net book value of $22.2 million and was classified as “Assets held for sale” in the Consolidated Balance Sheet as of June 30, 2015. The second closing occurred in July 2015.  At the time of the second closing, U.S. Cellular received $28.0 million in cash, recognized the deferred credit from the first closing and recorded a $24.1 million gain on this part of the license exchange.
U.S. Cellular | PCS and AWS license exchange - first closing
Exchanges
(Gain) loss on license sales and exchanges, net			(21,700)
Fair value			51,500
Other current liabilities			$ 18,300
U.S. Cellular | PCS and AWS license exchange - second closing
Exchanges
Assets held for sale				$ 22,200	$ 22,200
U.S. Cellular | PCS and AWS license exchange - second closing | Subsequent event
Exchanges
(Gain) loss on license sales and exchanges, net	$ (24,100)
Cash received from divestitures and exchanges	$ 28,000
U.S. Cellular | PCS license exchange
Exchanges
Asset exchange description					In March 2015, U.S. Cellular exchanged certain of its unbuilt PCS licenses for certain other PCS licenses located in U.S. Cellular’s existing operating markets and $117.0 million of cash.  As of the transaction date, the licenses received in the transaction had an estimated fair value, per a market approach, of $43.5 million.  A gain of $125.2 million was recorded in (Gain) loss on license sales and exchanges, net in the Consolidated Statement of Operations in the first quarter of 2015.
(Gain) loss on license sales and exchanges, net		$ (125,200)
Fair value		43,500
Cash received from divestitures and exchanges		$ 117,000

Intangible Assets (Details)

Intangible Assets (Details) - Jun. 30, 2015 - Segment [Domain] - USD ($) $ in Thousands		Total
Licenses and Franchise Rights
Total winning bid		$ 338,300
Licenses
Licenses and Franchise Rights
Balance, beginning of period		1,453,574
Acquisitions	[1]	339,656
Exchanges	[2]	43,485
Other		1,077
Balance, end of period		$ 1,837,792
[1]	Amount includes payments totaling $338.3 million made by Advantage Spectrum to the FCC for licenses in which it was the provisional winning bidder in Auction 97. See Note 6 — Acquisitions, Divestitures and Exchanges, and Note 9 — Variable Interest Entities for further information.
[2]	Amount represents licenses received in the March 2015 PCS license exchange. See Note 6 — Acquisitions, Divestitures and Exchanges for further information. Licenses disposed of in the exchange were previously removed from the Licenses balance and reflected in Assets held for sale in the Consolidated Balance Sheet as of December 31, 2014.

Investment in Unconsolidated 39

Investment in Unconsolidated Entities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Equity method investments, combined income statements
Revenues	$ 1,726,558	$ 1,635,216	$ 3,460,818	$ 3,259,900
Operating expenses	1,281,625	1,209,412	2,572,643	2,343,092
Operating income	444,933	425,804	888,175	916,808
Other income, net	(10,873)	378	(6,508)	2,403
Net income	$ 434,060	$ 426,182	$ 881,667	$ 919,211

Variable Interest Entities (Det

Variable Interest Entities (Details) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended		12 Months Ended
	Mar. 31, 2015	Jun. 30, 2015		Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Assets
Cash and cash equivalents		$ 631,549		$ 471,901	$ 874,860	$ 830,014
Other current assets		30,480		29,766
Licenses		1,837,792		1,453,574
Property, plant and equipment, net		3,726,455		3,846,125
Other assets and deferred charges		255,761		334,554
Liabilities
Current liabilities		1,021,183		1,063,256
Variable Interest Entities, Other Disclosures
Total winning bid		338,300
Variable Interest Entities
Assets
Cash and cash equivalents		2,069		2,588
Other current assets		211		278
Licenses		651,281	[1]	312,977
Property, plant and equipment, net		9,636		10,671
Other assets and deferred charges		150		60,059
Total assets		663,347		386,573
Liabilities
Current liabilities		83		110
Deferred liabilities and credits		567		622
Total liabilities		650		732
Variable Interest Entities, Other Disclosures
Capital contributions, loans or advances		$ 280,600
Advantage Spectrum L.P. | U.S. Cellular
Variable Interest Entities, Other Disclosures
Federal Communications Commission deposit				$ 60,000
Licenses won		124
Total winning bid		$ 338,300
Designated entity auction discount		25.00%
Other auction charges		$ 2,300
King Street Wireless L.P.
Variable Interest Entities, Other Disclosures
Cash distributions paid	$ 60,000
King Street Wireless, L.P. distribution paid to U.S. Cellular	54,000
King Street Wireless, Inc.
Variable Interest Entities, Other Disclosures
King Street Wireless, L.P. distribution paid to King Street Wireless, Inc.	$ 6,000
[1]	Includes payments totaling $338.3 million made by Advantage Spectrum to the FCC as described below.

Noncontrolling Interests (Detai

Noncontrolling Interests (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Noncontrolling interests
Net income (loss) attributable to TDS shareholders	$ 23,046	$ (22,038)	$ 168,786	$ (3,784)
Transfer (to) from the noncontrolling interests
Change in TDS' Capital in excess of par value from U.S. Cellular's issuance of U.S. Cellular shares			(13,096)	(10,292)
Change in TDS' Capital in excess of par value from U.S. Cellular's repurchase of U.S. Cellular shares			372	242
Purchase of ownership in subsidiaries from noncontrolling interests			240
Net transfers (to) from noncontrolling interests			(12,484)	(10,050)
Change from net income (loss) attributable to TDS shareholders and transfers (to) from noncontrolling interests			$ 156,302	$ (13,834)

Common Share Repurchases (Detai

Common Share Repurchases (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Share repurchases
Amount		$ 21,096
Treasury Shares
Share repurchases
Amount		$ 21,096
Common Shares | TDS Parent Company | Treasury Shares
Share repurchases
Number of shares acquired		809
Average cost per share		$ 26.09
Amount		$ 21,096
Common share repurchase authorization	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.
Repurchase authorization, dollar value	$ 250,000
Repurchase expiration	does not have an expiration date
U.S. Cellular Common Shares | U.S. Cellular | Treasury Shares
Share repurchases
Number of shares acquired	66	212
Average cost per share	$ 34.77	$ 40.49
Amount	$ 2,302	$ 8,598
Common share repurchase authorization	On November 17, 2009, the Board of Directors of U.S. Cellular authorized the repurchase of up to 1,300,000 Common Shares on an annual basis beginning in 2009 and continuing each year thereafter, on a cumulative basis. These purchases will be made pursuant to open market purchases, block purchases, private purchases or otherwise, depending on market conditions. This authorization does not have an expiration date.
Repurchase authorization, additional number of shares	1,300
Repurchase expiration	does not have an expiration date

Business Segment (Details)

Business Segment (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Business Segment Information
Service		$ 1,070,650	$ 1,072,179	$ 2,143,741	$ 2,152,421
Equipment and product sales		205,745	164,213	384,247	279,933
Total operating revenues		1,276,395	1,236,392	2,527,988	2,432,354
Cost of services (excluding Depreciation, amortization and accretion reported below)		300,152	286,488	593,799	562,446
Cost of equipment and products		298,450	313,011	570,431	619,658
Selling, general and administrative		435,430	470,902	873,470	934,571
Depreciation, amortization and accretion		211,104	204,567	417,679	429,486
(Gain) loss on asset disposals, net		4,752	7,903	10,129	10,333
(Gain) loss on sale of business and other exit costs, net		(5,589)	2,611	(129,372)	(4,289)
(Gain) loss on license sales and exchanges, net		(25)		(122,898)	(91,446)
Operating income (loss)		32,121	(49,090)	314,750	(28,405)
Equity in earnings of unconsolidated entities		35,412	34,790	70,053	72,117
Interest and dividend income		10,117	2,751	18,502	5,237
Interest expense		(33,919)	(27,898)	(67,749)	(56,605)
Other, net		202	50	198	210
Income (loss) before income taxes		43,933	(39,397)	335,754	(7,446)
Income tax expense		17,433	(13,671)	133,453	(2,014)
Net income (loss)		26,500	(25,726)	202,301	(5,432)
Depreciation, amortization and accretion		211,104	204,567	417,679	429,486
(Gain) loss on asset disposals, net		4,752	7,903	10,129	10,333
(Gain) loss on sale of business and other exit costs, net		(5,589)	2,611	(129,372)	(4,289)
(Gain) loss on license sales and exchanges, net		(25)		(122,898)	(91,446)
Interest expense		33,919	27,898	67,749	56,605
Income tax expense (benefit)		17,433	(13,671)	133,453	(2,014)
Adjusted EBITDA	[1]	288,094	203,582	579,041	393,243
Investments in unconsolidated entities		364,205	308,661	364,205	308,661	$ 321,729
Total assets		8,986,312	8,707,669	8,986,312	8,707,669	$ 8,906,939
Capital expenditures		188,600	190,681	293,237	313,279
U.S. Cellular
Business Segment Information
Service		824,373	843,473	1,652,584	1,697,086
Equipment and product sales		151,294	114,300	288,328	186,498
Total operating revenues		975,667	957,773	1,940,912	1,883,584
Cost of services (excluding Depreciation, amortization and accretion reported below)		196,276	187,131	386,953	367,738
Cost of equipment and products		253,671	271,978	491,972	542,452
Selling, general and administrative		362,971	404,252	731,939	799,816
Depreciation, amortization and accretion		150,581	148,337	297,666	316,090
(Gain) loss on asset disposals, net		5,399	6,893	9,650	8,827
(Gain) loss on sale of business and other exit costs, net		(1,705)	(10,511)	(113,182)	(17,411)
(Gain) loss on license sales and exchanges, net		(25)		(122,898)	(91,446)
Operating income (loss)		8,499	(50,307)	258,812	(42,482)
Equity in earnings of unconsolidated entities		35,584	33,120	70,055	70,195
Interest and dividend income		8,969	1,573	16,535	2,457
Interest expense		(20,154)	(14,336)	(40,118)	(29,198)
Other, net		91	100	196	186
Income (loss) before income taxes		32,989	(29,850)	305,480	1,158
Income tax expense	[2]	13,079	(10,399)	120,580	2,205
Net income (loss)		19,910	(19,451)	184,900	(1,047)
Depreciation, amortization and accretion		150,581	148,337	297,666	316,090
(Gain) loss on asset disposals, net		5,399	6,893	9,650	8,827
(Gain) loss on sale of business and other exit costs, net		(1,705)	(10,511)	(113,182)	(17,411)
(Gain) loss on license sales and exchanges, net		(25)		(122,898)	(91,446)
Interest expense		20,154	14,336	40,118	29,198
Income tax expense (benefit)	[2]	13,079	(10,399)	120,580	2,205
Adjusted EBITDA	[1]	207,393	129,205	416,834	246,416
Investments in unconsolidated entities		325,857	270,215	325,857	270,215
Total assets		6,596,619	6,298,967	6,596,619	6,298,967
Capital expenditures		133,666	143,927	200,126	233,508
TDS Telecom Wireline
Business Segment Information
Service		175,413	180,297	351,104	357,230
Equipment and product sales		557	431	1,001	984
Total operating revenues		175,970	180,728	352,105	358,214
Cost of services (excluding Depreciation, amortization and accretion reported below)		62,604	64,305	125,031	128,705
Cost of equipment and products		597	481	1,160	964
Selling, general and administrative		49,200	47,708	94,869	94,228
Depreciation, amortization and accretion		41,203	41,827	83,212	84,563
(Gain) loss on asset disposals, net		1,010	514	1,528	759
(Gain) loss on sale of business and other exit costs, net		(3,054)		(3,054)
Operating income (loss)		24,410	25,893	49,359	48,995
Equity in earnings of unconsolidated entities		9	4	13	4
Interest and dividend income		647	490	1,102	1,175
Interest expense		290	677	591	1,341
Other, net		(15)	(95)	(33)	(149)
Income (loss) before income taxes		25,341	26,969	51,032	51,366
Depreciation, amortization and accretion		41,203	41,827	83,212	84,563
(Gain) loss on asset disposals, net		1,010	514	1,528	759
(Gain) loss on sale of business and other exit costs, net		(3,054)		(3,054)
Interest expense		(290)	(677)	(591)	(1,341)
Adjusted EBITDA	[1]	64,210	68,633	132,127	135,347
Investments in unconsolidated entities		3,804	3,810	3,804	3,810
Total assets		1,351,221	1,408,809	1,351,221	1,408,809
Capital expenditures		31,722	27,370	52,163	50,268
TDS Telecom Cable
Business Segment Information
Service		44,545	22,484	88,026	44,987
Equipment and product sales		70		158
Total operating revenues		44,615	22,484	88,184	44,987
Cost of services (excluding Depreciation, amortization and accretion reported below)		19,849	11,394	39,797	22,349
Cost of equipment and products		15		75
Selling, general and administrative		13,764	6,285	26,389	12,663
Depreciation, amortization and accretion		8,860	4,557	17,579	8,918
(Gain) loss on asset disposals, net		(1,668)	425	(986)	490
Operating income (loss)		3,795	(177)	5,330	567
Interest and dividend income		8	1	13	2
Interest expense		143	30	243	35
Other, net		2		3
Income (loss) before income taxes		3,948	(146)	5,589	604
Depreciation, amortization and accretion		8,860	4,557	17,579	8,918
(Gain) loss on asset disposals, net		(1,668)	425	(986)	490
Interest expense		(143)	(30)	(243)	(35)
Adjusted EBITDA	[1]	10,997	4,806	21,939	9,977
Total assets		568,494	287,809	568,494	287,809
Capital expenditures		11,926	7,181	23,552	13,400
TDS Telecom HMS
Business Segment Information
Service		29,467	27,575	57,883	54,951
Equipment and product sales		46,119	40,361	78,664	76,093
Total operating revenues		75,586	67,936	136,547	131,044
Cost of services (excluding Depreciation, amortization and accretion reported below)		21,954	21,301	41,982	38,247
Cost of equipment and products		38,566	33,875	65,696	64,342
Selling, general and administrative		10,969	12,376	23,659	27,211
Depreciation, amortization and accretion		6,573	6,791	13,008	13,469
(Gain) loss on asset disposals, net		27	44	(43)	78
Operating income (loss)		(2,503)	(6,451)	(7,755)	(12,303)
Interest and dividend income		9	22	23	42
Interest expense		(485)	(439)	(985)	(860)
Other, net		107	45	14	179
Income (loss) before income taxes		(2,872)	(6,823)	(8,703)	(12,942)
Depreciation, amortization and accretion		6,573	6,791	13,008	13,469
(Gain) loss on asset disposals, net		27	44	(43)	78
Interest expense		485	439	985	860
Adjusted EBITDA	[1]	4,213	451	5,247	1,465
Total assets		284,067	335,680	284,067	335,680
Capital expenditures		9,422	10,628	14,251	13,379
TDS Telecom Eliminations
Business Segment Information
Service		(1,358)	(298)	(2,038)	(979)
Total operating revenues		(1,358)	(298)	(2,038)	(979)
Cost of services (excluding Depreciation, amortization and accretion reported below)		(1,293)	(249)	(1,886)	(894)
Selling, general and administrative		(65)	(49)	(152)	(85)
TDS Telecom
Business Segment Information
Service		248,067	230,058	494,975	456,189
Equipment and product sales		46,746	40,792	79,823	77,077
Total operating revenues		294,813	270,850	574,798	533,266
Cost of services (excluding Depreciation, amortization and accretion reported below)		103,114	96,751	204,924	188,407
Cost of equipment and products		39,178	34,356	66,931	65,306
Selling, general and administrative		73,868	66,320	144,765	134,017
Depreciation, amortization and accretion		56,636	53,175	113,799	106,950
(Gain) loss on asset disposals, net		(631)	983	499	1,327
(Gain) loss on sale of business and other exit costs, net		(3,054)		(3,054)
Operating income (loss)		25,702	19,265	46,934	37,259
Equity in earnings of unconsolidated entities		9	4	13	4
Interest and dividend income		664	513	1,138	1,219
Interest expense		(52)	268	(151)	516
Other, net		94	(50)	(16)	30
Income (loss) before income taxes		26,417	20,000	47,918	39,028
Income tax expense	[2]	10,625	7,962	18,805	15,508
Net income (loss)		15,792	12,038	29,113	23,520
Depreciation, amortization and accretion		56,636	53,175	113,799	106,950
(Gain) loss on asset disposals, net		(631)	983	499	1,327
(Gain) loss on sale of business and other exit costs, net		(3,054)		(3,054)
Interest expense		52	(268)	151	(516)
Income tax expense (benefit)	[2]	10,625	7,962	18,805	15,508
Adjusted EBITDA	[1]	79,420	73,890	159,313	146,789
Investments in unconsolidated entities		3,804	3,810	3,804	3,810
Total assets		2,203,782	2,032,298	2,203,782	2,032,298
Capital expenditures		53,070	45,179	89,966	77,047
Corporate, Eliminations and Other
Business Segment Information
Service		(1,790)	(1,352)	(3,818)	(854)
Equipment and product sales		7,705	9,121	16,096	16,358
Total operating revenues		5,915	7,769	12,278	15,504
Cost of services (excluding Depreciation, amortization and accretion reported below)		762	2,606	1,922	6,301
Cost of equipment and products		5,601	6,677	11,528	11,900
Selling, general and administrative		(1,409)	330	(3,234)	738
Depreciation, amortization and accretion		3,887	3,055	6,214	6,446
(Gain) loss on asset disposals, net		(16)	27	(20)	179
(Gain) loss on sale of business and other exit costs, net		(830)	13,122	(13,136)	13,122
Operating income (loss)		(2,080)	(18,048)	9,004	(23,182)
Equity in earnings of unconsolidated entities		(181)	1,666	(15)	1,918
Interest and dividend income		484	665	829	1,561
Interest expense		(13,713)	(13,830)	(27,480)	(27,923)
Other, net		17		18	(6)
Income (loss) before income taxes		(15,473)	(29,547)	(17,644)	(47,632)
Income tax expense	[2]	(6,271)	(11,234)	(5,932)	(19,727)
Net income (loss)		(9,202)	(18,313)	(11,712)	(27,905)
Depreciation, amortization and accretion		3,887	3,055	6,214	6,446
(Gain) loss on asset disposals, net		(16)	27	(20)	179
(Gain) loss on sale of business and other exit costs, net		(830)	13,122	(13,136)	13,122
Interest expense		13,713	13,830	27,480	27,923
Income tax expense (benefit)	[2]	(6,271)	(11,234)	(5,932)	(19,727)
Adjusted EBITDA	[1]	1,281	487	2,894	38
Investments in unconsolidated entities		34,544	34,636	34,544	34,636
Total assets		185,911	376,404	185,911	376,404
Capital expenditures		$ 1,864	$ 1,575	$ 3,145	$ 2,724
[1]	Adjusted earnings before interest, taxes, depreciation, amortization and accretion (“Adjusted EBITDA”) is a segment measure reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance. Adjusted EBITDA is defined as net income, adjusted for the items set forth in the reconciliation above. Adjusted EBITDA excludes these items in order to show operating results on a more comparable basis from period to period. From time to time, TDS may also exclude other items from Adjusted EBITDA if such items help reflect operating results on a more comparable basis. TDS does not intend to imply that any of such items that are excluded are non-recurring, infrequent or unusual; such items may occur in the future. TDS believes Adjusted EBITDA is a useful measure of TDS’ operating results before significant recurring non-cash charges, discrete gains and losses, and other items as indicated above.
[2]	Income tax expense (benefit) is not provided at the individual segment level for Wireline, Cable and HMS. TDS calculates income tax expense for "TDS Telecom Total".

Subsequent Events (Details)

Subsequent Events (Details) - Term Loan Facility [Member] - USD ($) $ in Millions	1 Months Ended	6 Months Ended	12 Months Ended
	Jul. 31, 2015	Jun. 30, 2015	Dec. 31, 2016
Subsequent events
Frequency of periodic Term Loan payment		quarterly
Expected event
Subsequent events
Term Loan periodic payment amount			$ 2.8
Subsequent event
Subsequent events
Proceeds from Term Loan borrowings	$ 225