Telephone and Data Systems (TDS) 10-Q 30 Oct 15 2015 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information	9 Months Ended
	Sep. 30, 2015shares
Entity Registrant Name	TELEPHONE & DATA SYSTEMS INC /DE/
Entity Central Index Key	1,051,512
Document Type	10-Q
Document Period End Date	Sep. 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	Q3
Trading Symbol	TDS
Common Shares
Entity Common Stock, Shares Outstanding	101,556,713
Series A Common Shares
Entity Common Stock, Shares Outstanding	7,204,168

Consolidated Statement Of Opera

Consolidated Statement Of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Operating revenues
Service	$ 1,137,767	$ 1,081,472	$ 3,281,508	$ 3,233,893
Equipment and product sales	236,031	198,551	620,278	478,484
Total operating revenues	1,373,798	1,280,023	3,901,786	3,712,377
Operating expenses
Cost of services (excluding Depreciation, amortization and accretion reported below)	303,091	297,183	896,890	859,629
Cost of equipment and products	337,051	349,209	907,482	968,867
Selling, general and administrative	449,084	465,014	1,322,554	1,399,585
Depreciation, amortization and accretion	210,764	205,529	628,443	635,015
Loss on impairment of assets		84,000		84,000
(Gain) loss on asset disposals, net	4,919	9,293	15,048	19,626
(Gain) loss on sale of business and other exit costs, net	(559)	(4,790)	(129,931)	(9,079)
(Gain) loss on license sales and exchanges, net	(23,986)		(146,884)	(91,446)
Total operating expenses	1,280,364	1,405,438	3,493,602	3,866,197
Operating income (loss)	93,434	(125,415)	408,184	(153,820)
Investment and other income (expense)
Equity in earnings of unconsolidated entities	39,770	36,081	109,823	108,198
Interest and dividend income	9,617	4,526	28,119	9,763
Interest expense	(35,043)	(27,170)	(102,792)	(83,775)
Other, net	(56)	69	142	279
Total investment and other income	14,288	13,506	35,292	34,465
Income (loss) before income taxes	107,722	(111,909)	443,476	(119,355)
Income tax expense	45,327	9,290	178,780	7,276
Net income (loss)	62,395	(121,199)	264,696	(126,631)
Less: Net income (loss) attributable to noncontrolling interests, net of tax	11,312	(5,169)	44,827	(6,817)
Net income (loss) attributable to TDS shareholders	51,083	(116,030)	219,869	(119,814)
TDS Preferred dividend requirement	(12)	(12)	(37)	(37)
Net income (loss) available to common shareholders	$ 51,071	$ (116,042)	$ 219,832	$ (119,851)
Basic weighted average shares outstanding	108,848	108,252	108,503	108,650
Basic earnings (loss) per share attributable to TDS shareholders	$ 0.47	$ (1.07)	$ 2.03	$ (1.10)
Diluted weighted average shares outstanding	110,214	108,252	109,737	108,650
Diluted earnings (loss) per share attributable to TDS shareholders	$ 0.46	$ (1.07)	$ 1.99	$ (1.10)
Dividends per share to TDS shareholders	$ 0.141	$ 0.134	$ 0.423	$ 0.402

Consolidated Statement Of Compr

Consolidated Statement Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Consolidated Statement of Comprehensive Income (Loss)
Net income (loss)	$ 62,395	$ (121,199)	$ 264,696	$ (126,631)
Net change in accumulated other comprehensive income (loss)
Change in net unrealized gain (loss) on equity investments			(353)	341
Change in foreign currency translation adjustment	23	38	20	17
Change related to retirement plan
Change in prior service cost	(8,263)	(911)	(9,967)	(2,733)
Change in unrecognized net loss	(1,124)	322	(994)	966
Total gains (losses) recognized in Comprehensive Income before income tax benefit (expense)	(9,387)	(589)	(10,961)	(1,767)
Change in deferred income taxes	3,550	224	4,158	671
Change related to retirement plan, net of tax	(5,837)	(365)	(6,803)	(1,096)
Net change in accumulated other comprehensive income (loss)	(5,814)	(327)	(7,136)	(738)
Comprehensive income (loss)	56,581	(121,526)	257,560	(127,369)
Less: Comprehensive income (loss) attributable to noncontrolling interest	11,312	(5,169)	44,827	(6,817)
Comprehensive income (loss) attributable to TDS shareholders	$ 45,269	$ (116,357)	$ 212,733	$ (120,552)

Consolidated Statement Of Cash

Consolidated Statement Of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities
Net income (loss)	$ 264,696	$ (126,631)
Add (deduct) adjustments to reconcile net income (loss) to cash flows from operating activities
Depreciation, amortization and accretion	628,443	635,015
Bad debts expense	83,368	79,218
Stock-based compensation expense	28,961	25,715
Deferred income taxes, net	(39,516)	(33,242)
Equity in earnings of unconsolidated entities	(109,823)	(108,198)
Distributions from unconsolidated entities	45,047	74,864
Loss on impairment of assets		84,000
(Gain) loss on asset disposals, net	15,048	19,626
(Gain) loss on sale of business and other exit costs, net	(129,931)	(9,079)
(Gain) loss on license sales and exchanges, net	(146,884)	(91,446)
Noncash interest expense	2,058	1,584
Other operating activities	(701)	13
Changes in assets and liabilities from operations
Accounts receivable	(93,540)	70,653
Equipment installment plans receivable	(95,799)	(131,520)
Inventory	89,821	52,078
Accounts payable	125,123	11,034
Customer deposits and deferred revenues	(49,970)	28,684
Accrued taxes	211,803	14,307
Accrued interest	10,798	9,105
Other assets and liabilities	(112,084)	(109,569)
Cash flows from operating activities	726,918	496,211
Cash flows from investing activities
Cash used for additions to property, plant and equipment	(558,112)	(553,718)
Cash paid for acquisitions and licenses	(286,710)	(284,089)
Cash received from divestitures and exchanges	324,772	151,369
Cash received for investments		10,000
Other investing activities	6,338	5,598
Cash flows from investing activities	(513,712)	(670,840)
Cash flows from financing activities
Issuance of long-term debt	225,000
Repayment of long-term debt	(615)	(819)
TDS Common Shares reissued for benefit plans, net of tax payments	11,409	486
U.S. Cellular Common Shares reissued for benefit plans, net of tax payments	(868)	1,150
Repurchase of TDS Common Shares		(31,293)
Repurchase of U.S. Cellular Common Shares	(4,070)	(14,698)
Dividends paid to TDS shareholders	(45,859)	(43,575)
Payment of debt issuance costs	(3,101)	(1,019)
Distributions to noncontrolling interests	(6,097)	(439)
Other financing activities	4,519	7,889
Cash flows from financing activities	180,318	(82,318)
Net increase (decrease) in cash and cash equivalents	393,524	(256,947)
Cash and cash equivalents
Beginning of period	471,901	830,014
End of period	$ 865,425	$ 573,067

Consolidated Balance Sheet

Consolidated Balance Sheet - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 865,425	$ 471,901
Accounts receivable
Due from customers and agents, less allowances of $45,565 and $41,431, respectively	672,845	548,537
Other, less allowances of $1,268 and $1,141, respectively	102,684	135,144
Inventory, net	183,884	273,707
Net deferred income tax asset	98,343	107,686
Prepaid expenses	119,453	86,506
Income taxes receivable		113,708
Other current assets	30,425	29,766
Total current assets	2,073,059	1,766,955
Assets held for sale	9,018	103,343
Investments
Licenses	1,844,197	1,453,574
Goodwill	765,773	771,352
Franchise rights	244,300	244,300
Other intangible assets, net of accumulated amortization of $143,286 and $133,823, respectively	50,923	64,499
Investments in unconsolidated entities	386,153	321,729
Other investments	445	508
Total investments	3,291,791	2,855,962
Property, plant and equipment
In service and under construction	11,307,122	11,194,044
Less: Accumulated depreciation	7,600,435	7,347,919
Property, plant and equipment, net	3,706,687	3,846,125
Other assets and deferred charges	236,803	334,554
Total assets	9,317,358	8,906,939
Current liabilities
Current portion of long-term debt	9,102	808
Accounts payable	433,620	387,125
Customer deposits and deferred revenues	274,293	324,318
Accrued interest	18,714	7,919
Accrued taxes	143,082	46,734
Accrued compensation	98,134	114,549
Other current liabilities	105,625	181,803
Total current liabilities	1,082,570	1,063,256
Liabilities held for sale	687	21,643
Deferred liabilities and credits
Net deferred income tax liability	888,499	941,519
Other deferred liabilities and credits	431,874	430,774
Long-term debt	$ 2,209,992	$ 1,993,586
Commitments and contingencies
Noncontrolling interests with redemption features	$ 910	$ 1,150
TDS shareholders' equity
Series A Common and Common Shares	1,327	1,327
Capital in excess of par value	2,353,054	2,336,511
Treasury shares at cost	(731,224)	(748,199)
Accumulated other comprehensive income (loss)	(684)	6,452
Retained earnings	2,503,825	2,330,187
Total TDS shareholders' equity	4,126,298	3,926,278
Preferred shares	824	824
Noncontrolling interests	575,704	527,909
Total equity	4,702,826	4,455,011
Total liabilities and equity	$ 9,317,358	$ 8,906,939

Consolidated Balance Sheet Pare

Consolidated Balance Sheet Parenthetical - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets
Due from customers and agents, allowances	$ 45,565	$ 41,431
Other, allowances	1,268	1,141
Investments
Other intangible assets, accumulated amortization	$ 143,286	$ 133,823
TDS shareholders' equity
Authorized shares	290,000	290,000
Issued shares	132,774	132,749
Outstanding shares	108,760	107,899
Par value	$ 1,327	$ 1,327
Treasury Shares
TDS shareholders' equity
Treasury shares	24,014	24,850
Series A Common Shares
TDS shareholders' equity
Authorized shares	25,000	25,000
Issued shares	7,204	7,179
Outstanding shares	7,204	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	101,556	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	24,014	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 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	(119,814)					(119,814)	(119,814)
Net income (loss) attributable to noncontrolling interests classified as equity	(7,209)								(7,209)
Net unrealized gain (loss) on equity investments	341				341		341
Change in foreign currency translation adjustment	17				17		17
Change related to retirement plan	(1,096)				(1,096)		(1,096)
TDS Common and Series A Common Share dividends	(43,538)					(43,538)	(43,538)
TDS Preferred dividend requirement	(37)					(37)	(37)
Repurchase of Common Shares	(31,794)			(31,794)			(31,794)
Dividend reinvestment plan	7,387		2,119	5,268			7,387
Incentive and compensation plans	917		(303)	1,220			917
Adjust investment in subsidiaries for repurchases, issuances and other compensation plans	827		9,831				9,831		(9,004)
Stock-based compensation awards	9,821		9,821				9,821
Tax windfall (shortfall) from stock awards	(601)		(601)				(601)
Distributions to noncontrolling interests	(517)								(517)
Ending balance at Sep. 30, 2014	4,484,801	1,327	2,329,674	(746,660)	(1,307)	2,366,237	3,949,271	824	534,706
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	219,869					219,869	219,869
Net income (loss) attributable to noncontrolling interests classified as equity	39,407								39,407
Net unrealized gain (loss) on equity investments	(353)				(353)		(353)
Change in foreign currency translation adjustment	20				20		20
Change related to retirement plan	(6,803)				(6,803)		(6,803)
TDS Common and Series A Common Share dividends	(45,822)					(45,822)	(45,822)
TDS Preferred dividend requirement	(37)					(37)	(37)
Dividend reinvestment plan	8,636		2,321	6,315			8,636
Incentive and compensation plans	11,649		1,361	10,660		(372)	11,649
Adjust investment in subsidiaries for repurchases, issuances and other compensation plans	10,714		1,889				1,889		8,825
Stock-based compensation awards	11,122		11,122				11,122
Tax windfall (shortfall) from stock awards	(150)		(150)				(150)
Distributions to noncontrolling interests	(437)								(437)
Ending balance at Sep. 30, 2015	$ 4,702,826	$ 1,327	$ 2,353,054	$ (731,224)	$ (684)	$ 2,503,825	$ 4,126,298	$ 824	$ 575,704

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 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, TDS 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 unaudited consolidated financial statements included herein have been prepared by TDS pursuant to the rules and regulations of the Securities 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 disclosures included herein are adequate to make the information presented not misleading. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in TDS’ Annual Report on 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 period ended September 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, except for HMS, which includes an insignificant foreign operation. See Note 13 — Business Segment Information for summary financial information on each business segment. The accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring items, unless otherwise disclosed) necessary for a fair statement of the financial position as of September 30, 2015 and December 31, 2014 , and the results of operations and changes in comprehensive income for the three and nine months ended September 30, 2015 and 2014 and cash flows and changes in equity for the nine months ended September 30, 2015 and 2014 . These results are not necessarily indicative of the results to be expected for the full year. Recently Issued Accounting Pronouncements I n May 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. In August 2015, the FASB issued Accounting Standards Update 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, requiring the adoption of ASU 2014-09 on January 1, 2018. Early adoption as of January 1, 2017 is permitted; 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. In August 2014, the FASB issued Accounting Standards Update 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 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, including 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’ financial position or results of operations but may impact future disclosures. In February 2015, the FASB issued Accounting Standards Update 2015-02, Consolidation: Amendments to the Consolidation Analysis (“ASU 2015-02”). ASU 2015-02 simplifies consolidation 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 is 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. However, additional disclosures are expected. In April 2015, the FASB issued Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”) , 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. In August 2015, the FASB issued Accounting Standards Update 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements , excluding debt issuance costs related to line-of-credit arrangements from the scope of ASU 2015-03. As of September 30, 2015 , TDS had $ 54.7 million in debt issuance costs classified as Other assets and deferre d charges that, upon adoption of ASU 2015-03 , would be reclassified as an offset to Long-term debt. I n July 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 permitted. TDS is evaluating the effects that adoption of ASU 2015-11 will have on its financial position and results of operations. In September 2015, the FASB issued Accounting Standards Update 2015-16, Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments (“ASU 2015- 16”). ASU 2015-16 simplifies how adjustments are made to provisional amounts recognized in a business combination during the measurement period. TDS is required to adopt ASU 2015-16 on January 1, 2016. TDS is evaluating the effects that adoption of ASU 2015-16 will have on its financial position, results of operations, and disclosures. Amounts Collected from Customers and Remitted to Governmental Authorities TDS records amounts collected from customers and remitted 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 amounts 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 recorded gross in revenues that are billed to customers and remitted to governmental authorities totaled $ 23.8 million and $ 75.4 million for the three and nine months ended September 30, 2015 , respectively, and $ 26.4 million and $ 86.5 million for the three and nine months ended September 30, 2014 , respectively.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2015
Disclosure Text Block
Fair Value Measurements	2 . Fair Value Measurements As of September 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 identical assets and liabilities in inactive markets. Level 3 inputs are unobservable. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. A financial instrument’s level within the fair value hierarchy is not representative of its expected performance or its overall risk profile and, therefore, Level 3 assets are not necessarily higher risk than Level 2 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 September 30, 2015 December 31, 2014 Book Value Fair Value Book Value Fair Value (Dollars in thousands) Cash and cash equivalents 1 $ 865,425 $ 865,425 $ 471,901 $ 471,901 Long-term debt Retail 2 1,453,250 1,460,294 1,453,250 1,414,105 Institutional 2 532,940 489,373 532,722 513,647 Other 2 220,922 221,538 4,749 4,675 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’ “Other” debt consists of a senior term loan credit facility and other borrowings with financial institutions. TDS estimated the fair value of its Institutional and Other debt through a discounted cash flow analysis using the interest rates or estimated yield to maturity for each borrowing, which ranged from 0.00% to 7.73% and 0.00% to 7.25% at September 30, 2015 and December 31, 2014 , respectively.

Equipment Installment Plans

Equipment Installment Plans	9 Months Ended
	Sep. 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 the 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 including 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 September 30, 2015 and December 31, 2014 , the guarantee liability related to these plans was $ 91.3 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 installment plan receivables as of September 30, 2015 and December 31, 2014 . Such amounts are included in 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) September 30, 2015 December 31, 2014 Short-term portion of unbilled equipment installment plan receivables, gross $ 245,218 $ 127,400 Short-term portion of unbilled deferred interest (18,504) (16,365) Short-term portion of unbilled allowance for credit losses (9,326) (3,686) Short-term portion of unbilled equipment installment plan receivables, net $ 217,388 $ 107,349 Long-term portion of unbilled equipment installment plan receivables, gross $ 66,512 $ 89,435 Long-term portion of unbilled deferred interest (819) (2,791) Long-term portion of unbilled allowance for credit losses (4,740) (6,065) Long-term portion of unbilled equipment installment plan receivables, net $ 60,953 $ 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 nine months ended September 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 $ 6.2 million and Income before income taxes by $ 5.8 million for the nine months ended September 30, 2015 . These adjustments were made in the first six months of 2015.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 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 nine months ended September 30, 2015 were 42.1% and 40.3% , respectively . The effective tax rates for the three and nine months ended September 30, 2014 were negative and not meaningful due to the impact of several items on tax expense, including: A $40.8 million tax expense related to a valuation allowance recorded against certain state deferred tax assets that TDS determined were not realizable, on a more likely than not basis. A $10.8 million tax benefit due to a valuation allowance reduction for federal net operating losses previously limited under loss utilization rules. Due to the shutdown of Airadigm’s consumer wireless business and resulting intercompany sale of certain assets by Airadigm to U.S. Cellular during the period, Airadigm is expected to recognize sufficient taxable income for TDS to utilize the previously limited net operating losses. A $19.9 million expense related to a portion of the goodwill impairment of the HMS reporting unit recorded in the third quarter of 2014, which is nondeductible for income tax purposes.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 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 shareholders 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 outstanding 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 Months Ended Nine Months Ended September 30, September 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 $ 51,071 $ (116,042) $ 219,832 $ (119,851) Adjustments to compute diluted earnings (loss): Noncontrolling interest adjustment (384) – (1,540) – Preferred dividend adjustment 12 – 37 – Net income (loss) attributable to common shareholders of TDS used in diluted earnings (loss) per share $ 50,699 $ (116,042) $ 218,329 $ (119,851) Weighted average number of shares used in basic earnings (loss) per share: Common Shares 101,652 101,067 101,315 101,474 Series A Common Shares 7,196 7,185 7,188 7,176 Total 108,848 108,252 108,503 108,650 Effects of dilutive securities: Stock options 818 – 778 – Restricted stock units 498 – 406 – Preferred shares 50 – 50 – Weighted average number of shares used in diluted earnings (loss) per share 110,214 108,252 109,737 108,650 Basic earnings (loss) per share attributable to TDS shareholders $ 0.47 $ (1.07) $ 2.03 $ (1.10) Diluted earnings (loss) per share attributable to TDS shareholders $ 0.46 $ (1.07) $ 1.99 $ (1.10) 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 earnings (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 Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (Shares in thousands) Stock options 4,687 9,207 4,438 8,922 Restricted stock units – 992 191 823 Preferred shares – 52 – 52

Acquisitions Divestures And Exc

Acquisitions Divestures And Exchanges	9 Months Ended
	Sep. 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 spectrum licenses 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. As of September 30, 2015 , U.S. Cellular had received a cumulative total of $ 109.3 million pursuant to the Sprint Cost Reimbursement. For the nine months ended September 30, 2015 and 2014 , $ 27.6 million and $ 52.0 million, respectively, of the Sprint Cost Reimbursement had been received and recorded in Cash received from divestitures and exchanges in the Consolidated Statement of Cash Flows. For the nine months ended September 30, 2015 and 2014 , as a result of the Divestiture Transaction, U.S. Cellular recognized gains of $ 6.2 million and $ 28.1 million, respectively, in (Gain) loss on sale of business and other exit costs, net. For the three months ended September 30, 2015 and 2014 , U.S. Cellular recognized gains of $ 0.3 million and $ 10.4 million, respectively. Other Acquisitions, Divestitures and Exchanges At September 30, 2015, TDS’ assets and liabilities classified in the Consolidated Balance Sheet as held for sale were related to agr eements to sell certain Wireline markets and Airadigm operations . 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 s pectrum licenses (“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 have not yet been granted by the FCC. See Note 10 — Variable Interest Entities for additional information. 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 agreement and related transactions are referred to as the “Tower Sale” and were 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. 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. The second closing occurred in July 2015. At the time of the second closing, U.S. Cellular received $ 28.0 million in cash and recognized the deferred credit from the first closing, resulting in a total gain of $ 24.1 million recorded on this part of the license exchange.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2015
Disclosure Text Block
Intangible Assets	7 . Intangible Assets Changes in Licenses at TDS for the nine months ended September 30, 2015 are presented below. There were no significant changes to Franchise rights, Goodwill or Other intangible assets during the nine months ended September 30, 2015 . Licenses (Dollars in thousands) Balance December 31, 2014 $ 1,453,574 Acquisitions (1) 345,656 Exchanges (2) 43,485 Other 1,482 Balance September 30, 2015 $ 1,844,197 (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 10 — 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 this exchange and the exchange that closed in July 2015 were previously removed from the Licenses balance and reflected in Assets held for sale in the Consolidated Balance Sheet as of December 31, 2014.

Investments In Unconsolidated E

Investments In Unconsolidated Entities	9 Months Ended
	Sep. 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. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in thousands) Revenues $ 1,738,488 $ 1,649,160 $ 5,199,305 $ 4,876,269 Operating expenses 1,267,820 1,230,366 3,840,462 3,554,598 Operating income 470,668 418,794 1,358,843 1,321,671 Other income (loss), net (10,236) 4,752 (16,744) 7,178 Net income $ 460,432 $ 423,546 $ 1,342,099 $ 1,328,849

Debt

Debt	9 Months Ended
	Sep. 30, 2015
Disclosure Text Block
Debt	9 . Debt In 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 in two separate draws at an overall interest rate of 2.88%. The interest rate on outstanding borrowings will be reset at three and six month in tervals at a rate of LIBOR plus 250 basis points. This credit facility provides for the draws to be continued on a long-term basis under terms that are readily determinable. U.S. Cellular has the ability and intent to carry the debt for the duration of the agreement. Principal reductions will be due and payable in quarterly installments of $2.8 million beginning in March 2016 through December 2021, and the remaining unpaid balance will be due and payable in January 2022. These funds will be used for general corporate purposes, including working capital, spectrum purchases and capital expenditures.

Variable Interest Entities

Variable Interest Entities	9 Months Ended
	Sep. 30, 2015
Disclosure Text Block
Variable Interest Entities	10 . 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 September 30, 2015 , TDS holds a variable interest in and consolidates the following VIEs: Advantage Spectrum and Frequency Advantage L.P., the general 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 make 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 performance of the VIEs, indicating that TDS is the primary beneficiary of the VIEs. Accordingly, these VIEs are consolidated. The following table presents the classification of the consolidated VIEs’ assets and liabilities in TDS’ Consolidated Balance Sheet. September 30, December 31, 2015 2014 (Dollars in thousands) Assets Cash and cash equivalents $ 1,681 $ 2,588 Other current assets 175 278 Licenses (1) 648,661 312,977 Property, plant and equipment, net 8,635 10,671 Other assets and deferred charges 324 60,059 Total assets $ 659,476 $ 386,573 Liabilities Current liabilities $ 1 $ 110 Deferred liabilities and credits 494 622 Total liabilities $ 495 $ 732 (1) At September 30, 2015, 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. FCC 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 Frequency Advantage totaling $ 280.6 million during the nine months ended September 30, 2015 . There were no capital contributions, loans or advances made to TDS’ VIEs during the nine months ended September 30, 2014 . Advantage Spectrum, Aquinas Wireless and King Street Wireless were formed to participate in FCC auctions of wireless spectrum 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 financing on commercially reasonable terms or at all to provide such financial support. During the three and nine-months ended September 30, 2015, TDS recorded out-of-period adjustments attributable to the third quarter of 2013 through the second quarter of 2015 related to an agreement with King Street Wireless. 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. As a result of these out-of-period adjustments, for the three and nine months ended September 30, 2015, Net income decreased by $ 3.2 million and $ 2.8 million, and Net income attributable to TDS shareholders decreased by $ 3.8 million and $ 3.3 million, respectively.

Noncontrolling Interests

Noncontrolling Interests	9 Months Ended
	Sep. 30, 2015
Disclosure Text Block
Noncontrolling Interests	11 . 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: Nine Months Ended September 30, 2015 2014 (Dollars in thousands) Net income (loss) attributable to TDS shareholders $ 219,869 $ (119,814) 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 (13,768) (11,042) Change in TDS' Capital in excess of par value from U.S. Cellular's repurchases of U.S. Cellular shares 951 858 Purchase of ownership in subsidiaries from noncontrolling interests 240 7,484 Net transfers (to) from noncontrolling interests (12,577) (2,700) Change from net income (loss) attributable to TDS and transfers (to) from noncontrolling interests $ 207,292 $ (122,514)

Common Share Repurchases

Common Share Repurchases	9 Months Ended
	Sep. 30, 2015
Disclosure Text Block
Common Share Repurchases	12 . 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 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 . Share repurchases made under these authorizations were as follows: Number of Average Cost Nine Months Ended September 30, Shares Per Share Amount (Dollar amounts and shares in thousands, except per share data) 2015 TDS Common Shares – $ – $ – U.S. Cellular Common Shares 154 $ 34.85 $ 5,362 2014 TDS Common Shares 1,230 $ 25.85 $ 31,794 U.S. Cellular Common Shares 384 $ 39.37 $ 15,124

Business Segment Information

Business Segment Information	9 Months Ended
	Sep. 30, 2015
Disclosure Text Block
Business Segment Information	13 . 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-alone basis. Financial data for TDS’ reportable segments for the three and nine month periods ended, or as of September 30, 2015 and 2014 , is as follows. See Note 1 — Basis of Presentation for additional information. TDS Telecom Three Months Ended or as of September 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 $ 895,960 $ 174,579 $ 43,741 $ 30,428 $ (1,184) $ 247,564 $ (5,757) $ 1,137,767 Equipment and product sales 172,946 477 119 51,214 – 51,810 11,275 236,031 Total operating revenues 1,068,906 175,056 43,860 81,642 (1,184) 299,374 5,518 1,373,798 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 198,982 63,696 19,545 21,163 (1,125) 103,279 830 303,091 Cost of equipment and products 287,256 515 25 43,081 – 43,621 6,174 337,051 Selling, general and administrative 374,585 50,062 14,346 12,446 (59) 76,795 (2,296) 449,084 Depreciation, amortization and accretion 152,369 41,228 8,530 6,790 – 56,548 1,847 210,764 (Gain) loss on asset disposals, net 2,618 1,845 425 22 – 2,292 9 4,919 (Gain) loss on sale of business and other exit costs, net (643) (105) – – – (105) 189 (559) (Gain) loss on license sales and exchanges, net (23,986) – – – – – – (23,986) Operating income (loss) 77,725 17,815 989 (1,860) – 16,944 (1,235) 93,434 Equity in earnings of unconsolidated entities 39,674 2 – – – 2 94 39,770 Interest and dividend income 9,299 624 10 6 – 640 (322) 9,617 Interest expense (21,121) 193 109 (565) – (263) (13,659) (35,043) Other, net 78 (48) – (79) – (127) (7) (56) Income (loss) before income taxes 105,655 18,586 1,108 (2,498) – 17,196 (15,129) 107,722 Income tax expense (benefit) (1) 40,634 8,278 (3,585) 45,327 Net income (loss) 65,021 8,918 (11,544) 62,395 Add back: Depreciation, amortization and accretion 152,369 41,228 8,530 6,790 – 56,548 1,847 210,764 (Gain) loss on asset disposals, net 2,618 1,845 425 22 – 2,292 9 4,919 (Gain) loss on sale of business and other exit costs, net (643) (105) – – – (105) 189 (559) (Gain) loss on license sales and exchanges, net (23,986) – – – – – – (23,986) Interest expense 21,121 (193) (109) 565 – 263 13,659 35,043 Income tax expense (benefit) (1) 40,634 8,278 (3,585) 45,327 Adjusted EBITDA (2) $ 257,134 $ 61,361 $ 9,954 $ 4,879 $ – $ 76,194 $ 575 $ 333,903 Investments in unconsolidated entities $ 347,709 $ 3,806 $ – $ – $ – $ 3,806 $ 34,638 $ 386,153 Total assets $ 6,938,384 $ 1,322,359 $ 571,836 $ 299,101 $ – $ 2,193,296 $ 185,678 $ 9,317,358 Capital expenditures $ 134,816 $ 38,354 $ 13,023 $ 5,090 $ – $ 56,467 $ 2,425 $ 193,708 TDS Telecom Three Months Ended or as of September 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 $ 851,063 $ 177,650 $ 28,519 $ 27,806 $ (980) $ 232,995 $ (2,586) $ 1,081,472 Equipment and product sales 149,356 425 – 39,737 – 40,162 9,033 198,551 Total operating revenues 1,000,419 178,075 28,519 67,543 (980) 273,157 6,447 1,280,023 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 199,750 64,072 12,651 19,442 (926) 95,239 2,194 297,183 Cost of equipment and products 307,862 829 – 33,819 – 34,648 6,699 349,209 Selling, general and administrative 397,545 46,627 9,948 12,724 (54) 69,245 (1,776) 465,014 Depreciation, amortization and accretion 148,952 41,358 6,171 6,726 – 54,255 2,322 205,529 Loss on impairment of assets – – – 84,000 – 84,000 – 84,000 (Gain) loss on asset disposals, net 7,947 743 626 (2) – 1,367 (21) 9,293 (Gain) loss on sale of business and other exit costs, net (10,283) (2,201) – – – (2,201) 7,694 (4,790) Operating income (loss) (51,354) 26,647 (877) (89,166) – (63,396) (10,665) (125,415) Equity in earnings of unconsolidated entities 35,971 2 – – – 2 108 36,081 Interest and dividend income 3,572 569 (1) (23) – 545 409 4,526 Interest expense (13,514) 598 32 (343) – 287 (13,943) (27,170) Other, net 95 71 – (86) – (15) (11) 69 Income (loss) before income taxes (25,230) 27,887 (846) (89,618) – (62,577) (24,102) (111,909) Income tax expense (benefit) (1) (1,459) (2,937) 13,686 9,290 Net income (loss) (23,771) (59,640) (37,788) (121,199) Add back: Depreciation, amortization and accretion 148,952 41,358 6,171 6,726 – 54,255 2,322 205,529 Loss on impairment of assets – – – 84,000 – 84,000 – 84,000 (Gain) loss on asset disposals, net 7,947 743 626 (2) – 1,367 (21) 9,293 (Gain) loss on sale of business and other exit costs, net (10,283) (2,201) – – – (2,201) 7,694 (4,790) Interest expense 13,514 (598) (32) 343 – (287) 13,943 27,170 Income tax expense (benefit) (1) (1,459) – – – – (2,937) 13,686 9,290 Adjusted EBITDA (2) $ 134,900 $ 67,189 $ 5,919 $ 1,449 $ – $ 74,557 $ (164) $ 209,293 Investments in unconsolidated entities $ 296,900 $ 3,804 $ – $ – $ – $ 3,804 $ 34,744 $ 335,448 Total assets $ 6,257,075 $ 1,385,524 $ 543,731 $ 255,519 $ – $ 2,184,774 $ 198,699 $ 8,640,548 Capital expenditures $ 142,452 $ 34,243 $ 7,598 $ 9,800 $ – $ 51,641 $ 1,132 $ 195,225 TDS Telecom Nine Months Ended or as of September 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 $ 2,548,544 $ 525,683 $ 131,767 $ 88,311 $ (3,222) $ 742,539 $ (9,575) $ 3,281,508 Equipment and product sales 461,274 1,478 277 129,878 – 131,633 27,371 620,278 Total operating revenues 3,009,818 527,161 132,044 218,189 (3,222) 874,172 17,796 3,901,786 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 585,935 188,727 59,342 63,145 (3,011) 308,203 2,752 896,890 Cost of equipment and products 779,228 1,675 100 108,777 – 110,552 17,702 907,482 Selling, general and administrative 1,106,524 144,931 40,735 36,105 (211) 221,560 (5,530) 1,322,554 Depreciation, amortization and accretion 450,035 124,440 26,109 19,798 – 170,347 8,061 628,443 (Gain) loss on asset disposals, net 12,268 3,373 (561) (21) – 2,791 (11) 15,048 (Gain) loss on sale of business and other exit costs, net (113,825) (3,159) – – – (3,159) (12,947) (129,931) (Gain) loss on license sales and exchanges, net (146,884) – – – – – – (146,884) Operating income (loss) 336,537 67,174 6,319 (9,615) – 63,878 7,769 408,184 Equity in earnings of unconsolidated entities 109,729 15 – – – 15 79 109,823 Interest and dividend income 25,834 1,726 23 29 – 1,778 507 28,119 Interest expense (61,239) 784 352 (1,550) – (414) (41,139) (102,792) Other, net 274 (81) 3 (65) – (143) 11 142 Income (loss) before income taxes 411,135 69,618 6,697 (11,201) – 65,114 (32,773) 443,476 Income tax expense (benefit) (1) 161,214 27,083 (9,517) 178,780 Net income (loss) 249,921 38,031 (23,256) 264,696 Add back: Depreciation, amortization and accretion 450,035 124,440 26,109 19,798 – 170,347 8,061 628,443 (Gain) loss on asset disposals, net 12,268 3,373 (561) (21) – 2,791 (11) 15,048 (Gain) loss on sale of business and other exit costs, net (113,825) (3,159) – – – (3,159) (12,947) (129,931) (Gain) loss on license sales and exchanges, net (146,884) – – – – – – (146,884) Interest expense 61,239 (784) (352) 1,550 – 414 41,139 102,792 Income tax expense (benefit) (1) 161,214 27,083 (9,517) 178,780 Adjusted EBITDA (2) $ 673,968 $ 193,488 $ 31,893 $ 10,126 $ – $ 235,507 $ 3,469 $ 912,944 Investments in unconsolidated entities $ 347,709 $ 3,806 $ – $ – $ – $ 3,806 $ 34,638 $ 386,153 Total assets $ 6,938,384 $ 1,322,359 $ 571,836 $ 299,101 $ – $ 2,193,296 $ 185,678 $ 9,317,358 Capital expenditures $ 334,942 $ 90,517 $ 36,575 $ 19,341 $ – $ 146,433 $ 5,570 $ 486,945 TDS Telecom Nine Months Ended or as of September 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 $ 2,548,149 $ 534,880 $ 73,506 $ 82,757 $ (1,959) $ 689,184 $ (3,440) $ 3,233,893 Equipment and product sales 335,854 1,409 – 115,830 – 117,239 25,391 478,484 Total operating revenues 2,884,003 536,289 73,506 198,587 (1,959) 806,423 21,951 3,712,377 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 567,488 192,777 35,000 57,689 (1,820) 283,646 8,495 859,629 Cost of equipment and products 850,314 1,793 – 98,161 – 99,954 18,599 968,867 Selling, general and administrative 1,197,361 140,855 22,611 39,935 (139) 203,262 (1,038) 1,399,585 Depreciation, amortization and accretion 465,042 125,921 15,089 20,195 – 161,205 8,768 635,015 Loss on impairment of assets – – – 84,000 – 84,000 – 84,000 (Gain) loss on asset disposals, net 16,774 1,502 1,116 76 – 2,694 158 19,626 (Gain) loss on sale of business and other exit costs, net (27,694) (2,201) – – – (2,201) 20,816 (9,079) (Gain) loss on license sales and exchanges, net (91,446) – – – – – – (91,446) Operating income (loss) (93,836) 75,642 (310) (101,469) – (26,137) (33,847) (153,820) Equity in earnings of unconsolidated entities 106,166 6 – – – 6 2,026 108,198 Interest and dividend income 6,029 1,744 1 19 – 1,764 1,970 9,763 Interest expense (42,712) 1,939 67 (1,203) – 803 (41,866) (83,775) Other, net 281 (78) – 93 – 15 (17) 279 Income (loss) before income taxes (24,072) 79,253 (242) (102,560) – (23,549) (71,734) (119,355) Income tax expense (benefit) (1) 746 12,571 (6,041) 7,276 Net income (loss) (24,818) (36,120) (65,693) (126,631) Add back: Depreciation, amortization and accretion 465,042 125,921 15,089 20,195 – 161,205 8,768 635,015 Loss on impairment of assets – – – 84,000 – 84,000 – 84,000 (Gain) loss on asset disposals, net 16,774 1,502 1,116 76 – 2,694 158 19,626 (Gain) loss on sale of business and other exit costs, net (27,694) (2,201) – – – (2,201) 20,816 (9,079) (Gain) loss on license sales and exchanges, net (91,446) – – – – – – (91,446) Interest expense 42,712 (1,939) (67) 1,203 – (803) 41,866 83,775 Income tax expense (benefit) (1) 746 – – – – 12,571 (6,041) 7,276 Adjusted EBITDA (2) $ 381,316 $ 202,536 $ 15,896 $ 2,914 $ – $ 221,346 $ (126) $ 602,536 Investments in unconsolidated entities $ 296,900 $ 3,804 $ – $ – $ – $ 3,804 $ 34,744 $ 335,448 Total assets $ 6,257,075 $ 1,385,524 $ 543,731 $ 255,519 $ – $ 2,184,774 $ 198,699 $ 8,640,548 Capital expenditures $ 375,960 $ 84,511 $ 20,998 $ 23,179 $ – $ 128,688 $ 3,856 $ 508,504 (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 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.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures
Fair value measurements	Level within the Fair Value Hierarchy September 30, 2015 December 31, 2014 Book Value Fair Value Book Value Fair Value (Dollars in thousands) Cash and cash equivalents 1 $ 865,425 $ 865,425 $ 471,901 $ 471,901 Long-term debt Retail 2 1,453,250 1,460,294 1,453,250 1,414,105 Institutional 2 532,940 489,373 532,722 513,647 Other 2 220,922 221,538 4,749 4,675

Equipment Installment Plans (Ta

Equipment Installment Plans (Table)	9 Months Ended
	Sep. 30, 2015
Equipment Installment Plans
Equipment installment plans	(Dollars in thousands) September 30, 2015 December 31, 2014 Short-term portion of unbilled equipment installment plan receivables, gross $ 245,218 $ 127,400 Short-term portion of unbilled deferred interest (18,504) (16,365) Short-term portion of unbilled allowance for credit losses (9,326) (3,686) Short-term portion of unbilled equipment installment plan receivables, net $ 217,388 $ 107,349 Long-term portion of unbilled equipment installment plan receivables, gross $ 66,512 $ 89,435 Long-term portion of unbilled deferred interest (819) (2,791) Long-term portion of unbilled allowance for credit losses (4,740) (6,065) Long-term portion of unbilled equipment installment plan receivables, net $ 60,953 $ 80,579

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share
Earnings per share	Three Months Ended Nine Months Ended September 30, September 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 $ 51,071 $ (116,042) $ 219,832 $ (119,851) Adjustments to compute diluted earnings (loss): Noncontrolling interest adjustment (384) – (1,540) – Preferred dividend adjustment 12 – 37 – Net income (loss) attributable to common shareholders of TDS used in diluted earnings (loss) per share $ 50,699 $ (116,042) $ 218,329 $ (119,851) Weighted average number of shares used in basic earnings (loss) per share: Common Shares 101,652 101,067 101,315 101,474 Series A Common Shares 7,196 7,185 7,188 7,176 Total 108,848 108,252 108,503 108,650 Effects of dilutive securities: Stock options 818 – 778 – Restricted stock units 498 – 406 – Preferred shares 50 – 50 – Weighted average number of shares used in diluted earnings (loss) per share 110,214 108,252 109,737 108,650 Basic earnings (loss) per share attributable to TDS shareholders $ 0.47 $ (1.07) $ 2.03 $ (1.10) Diluted earnings (loss) per share attributable to TDS shareholders $ 0.46 $ (1.07) $ 1.99 $ (1.10)
Summary of antidilutive shares	Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (Shares in thousands) Stock options 4,687 9,207 4,438 8,922 Restricted stock units – 992 191 823 Preferred shares – 52 – 52

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2015
Licenses
Licenses	Licenses (Dollars in thousands) Balance December 31, 2014 $ 1,453,574 Acquisitions (1) 345,656 Exchanges (2) 43,485 Other 1,482 Balance September 30, 2015 $ 1,844,197 (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 10 — 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 this exchange and the exchange that closed in July 2015 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 En

Investment in Unconsolidated Entities (Tables)	9 Months Ended
	Sep. 30, 2015
Equity Method Investment, Summarized Financial Information
Equity method investments, summarized financial position	Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in thousands) Revenues $ 1,738,488 $ 1,649,160 $ 5,199,305 $ 4,876,269 Operating expenses 1,267,820 1,230,366 3,840,462 3,554,598 Operating income 470,668 418,794 1,358,843 1,321,671 Other income (loss), net (10,236) 4,752 (16,744) 7,178 Net income $ 460,432 $ 423,546 $ 1,342,099 $ 1,328,849

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	9 Months Ended
	Sep. 30, 2015
Variable Interest Entities VIEs
Consolidated VIE assets and liabilities	September 30, December 31, 2015 2014 (Dollars in thousands) Assets Cash and cash equivalents $ 1,681 $ 2,588 Other current assets 175 278 Licenses (1) 648,661 312,977 Property, plant and equipment, net 8,635 10,671 Other assets and deferred charges 324 60,059 Total assets $ 659,476 $ 386,573 Liabilities Current liabilities $ 1 $ 110 Deferred liabilities and credits 494 622 Total liabilities $ 495 $ 732 (1) At September 30, 2015, includes payments totaling $338.3 million made by Advantage Spectrum to the FCC as described below.

Noncontrolling Interests (Table

Noncontrolling Interests (Tables)	9 Months Ended
	Sep. 30, 2015
Noncontrolling interests
Noncontrolling interests	Nine Months Ended September 30, 2015 2014 (Dollars in thousands) Net income (loss) attributable to TDS shareholders $ 219,869 $ (119,814) 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 (13,768) (11,042) Change in TDS' Capital in excess of par value from U.S. Cellular's repurchases of U.S. Cellular shares 951 858 Purchase of ownership in subsidiaries from noncontrolling interests 240 7,484 Net transfers (to) from noncontrolling interests (12,577) (2,700) Change from net income (loss) attributable to TDS and transfers (to) from noncontrolling interests $ 207,292 $ (122,514)

Common Share Repurchases (Table

Common Share Repurchases (Tables)	9 Months Ended
	Sep. 30, 2015
Common Share Repurchases
Share repurchases	Number of Average Cost Nine Months Ended September 30, Shares Per Share Amount (Dollar amounts and shares in thousands, except per share data) 2015 TDS Common Shares – $ – $ – U.S. Cellular Common Shares 154 $ 34.85 $ 5,362 2014 TDS Common Shares 1,230 $ 25.85 $ 31,794 U.S. Cellular Common Shares 384 $ 39.37 $ 15,124

Business Segment (Tables)

Business Segment (Tables)	9 Months Ended
	Sep. 30, 2015
Business Segment Information
Business segment information	TDS Telecom Three Months Ended or as of September 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 $ 895,960 $ 174,579 $ 43,741 $ 30,428 $ (1,184) $ 247,564 $ (5,757) $ 1,137,767 Equipment and product sales 172,946 477 119 51,214 – 51,810 11,275 236,031 Total operating revenues 1,068,906 175,056 43,860 81,642 (1,184) 299,374 5,518 1,373,798 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 198,982 63,696 19,545 21,163 (1,125) 103,279 830 303,091 Cost of equipment and products 287,256 515 25 43,081 – 43,621 6,174 337,051 Selling, general and administrative 374,585 50,062 14,346 12,446 (59) 76,795 (2,296) 449,084 Depreciation, amortization and accretion 152,369 41,228 8,530 6,790 – 56,548 1,847 210,764 (Gain) loss on asset disposals, net 2,618 1,845 425 22 – 2,292 9 4,919 (Gain) loss on sale of business and other exit costs, net (643) (105) – – – (105) 189 (559) (Gain) loss on license sales and exchanges, net (23,986) – – – – – – (23,986) Operating income (loss) 77,725 17,815 989 (1,860) – 16,944 (1,235) 93,434 Equity in earnings of unconsolidated entities 39,674 2 – – – 2 94 39,770 Interest and dividend income 9,299 624 10 6 – 640 (322) 9,617 Interest expense (21,121) 193 109 (565) – (263) (13,659) (35,043) Other, net 78 (48) – (79) – (127) (7) (56) Income (loss) before income taxes 105,655 18,586 1,108 (2,498) – 17,196 (15,129) 107,722 Income tax expense (benefit) (1) 40,634 8,278 (3,585) 45,327 Net income (loss) 65,021 8,918 (11,544) 62,395 Add back: Depreciation, amortization and accretion 152,369 41,228 8,530 6,790 – 56,548 1,847 210,764 (Gain) loss on asset disposals, net 2,618 1,845 425 22 – 2,292 9 4,919 (Gain) loss on sale of business and other exit costs, net (643) (105) – – – (105) 189 (559) (Gain) loss on license sales and exchanges, net (23,986) – – – – – – (23,986) Interest expense 21,121 (193) (109) 565 – 263 13,659 35,043 Income tax expense (benefit) (1) 40,634 8,278 (3,585) 45,327 Adjusted EBITDA (2) $ 257,134 $ 61,361 $ 9,954 $ 4,879 $ – $ 76,194 $ 575 $ 333,903 Investments in unconsolidated entities $ 347,709 $ 3,806 $ – $ – $ – $ 3,806 $ 34,638 $ 386,153 Total assets $ 6,938,384 $ 1,322,359 $ 571,836 $ 299,101 $ – $ 2,193,296 $ 185,678 $ 9,317,358 Capital expenditures $ 134,816 $ 38,354 $ 13,023 $ 5,090 $ – $ 56,467 $ 2,425 $ 193,708 TDS Telecom Three Months Ended or as of September 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 $ 851,063 $ 177,650 $ 28,519 $ 27,806 $ (980) $ 232,995 $ (2,586) $ 1,081,472 Equipment and product sales 149,356 425 – 39,737 – 40,162 9,033 198,551 Total operating revenues 1,000,419 178,075 28,519 67,543 (980) 273,157 6,447 1,280,023 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 199,750 64,072 12,651 19,442 (926) 95,239 2,194 297,183 Cost of equipment and products 307,862 829 – 33,819 – 34,648 6,699 349,209 Selling, general and administrative 397,545 46,627 9,948 12,724 (54) 69,245 (1,776) 465,014 Depreciation, amortization and accretion 148,952 41,358 6,171 6,726 – 54,255 2,322 205,529 Loss on impairment of assets – – – 84,000 – 84,000 – 84,000 (Gain) loss on asset disposals, net 7,947 743 626 (2) – 1,367 (21) 9,293 (Gain) loss on sale of business and other exit costs, net (10,283) (2,201) – – – (2,201) 7,694 (4,790) Operating income (loss) (51,354) 26,647 (877) (89,166) – (63,396) (10,665) (125,415) Equity in earnings of unconsolidated entities 35,971 2 – – – 2 108 36,081 Interest and dividend income 3,572 569 (1) (23) – 545 409 4,526 Interest expense (13,514) 598 32 (343) – 287 (13,943) (27,170) Other, net 95 71 – (86) – (15) (11) 69 Income (loss) before income taxes (25,230) 27,887 (846) (89,618) – (62,577) (24,102) (111,909) Income tax expense (benefit) (1) (1,459) (2,937) 13,686 9,290 Net income (loss) (23,771) (59,640) (37,788) (121,199) Add back: Depreciation, amortization and accretion 148,952 41,358 6,171 6,726 – 54,255 2,322 205,529 Loss on impairment of assets – – – 84,000 – 84,000 – 84,000 (Gain) loss on asset disposals, net 7,947 743 626 (2) – 1,367 (21) 9,293 (Gain) loss on sale of business and other exit costs, net (10,283) (2,201) – – – (2,201) 7,694 (4,790) Interest expense 13,514 (598) (32) 343 – (287) 13,943 27,170 Income tax expense (benefit) (1) (1,459) – – – – (2,937) 13,686 9,290 Adjusted EBITDA (2) $ 134,900 $ 67,189 $ 5,919 $ 1,449 $ – $ 74,557 $ (164) $ 209,293 Investments in unconsolidated entities $ 296,900 $ 3,804 $ – $ – $ – $ 3,804 $ 34,744 $ 335,448 Total assets $ 6,257,075 $ 1,385,524 $ 543,731 $ 255,519 $ – $ 2,184,774 $ 198,699 $ 8,640,548 Capital expenditures $ 142,452 $ 34,243 $ 7,598 $ 9,800 $ – $ 51,641 $ 1,132 $ 195,225 TDS Telecom Nine Months Ended or as of September 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 $ 2,548,544 $ 525,683 $ 131,767 $ 88,311 $ (3,222) $ 742,539 $ (9,575) $ 3,281,508 Equipment and product sales 461,274 1,478 277 129,878 – 131,633 27,371 620,278 Total operating revenues 3,009,818 527,161 132,044 218,189 (3,222) 874,172 17,796 3,901,786 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 585,935 188,727 59,342 63,145 (3,011) 308,203 2,752 896,890 Cost of equipment and products 779,228 1,675 100 108,777 – 110,552 17,702 907,482 Selling, general and administrative 1,106,524 144,931 40,735 36,105 (211) 221,560 (5,530) 1,322,554 Depreciation, amortization and accretion 450,035 124,440 26,109 19,798 – 170,347 8,061 628,443 (Gain) loss on asset disposals, net 12,268 3,373 (561) (21) – 2,791 (11) 15,048 (Gain) loss on sale of business and other exit costs, net (113,825) (3,159) – – – (3,159) (12,947) (129,931) (Gain) loss on license sales and exchanges, net (146,884) – – – – – – (146,884) Operating income (loss) 336,537 67,174 6,319 (9,615) – 63,878 7,769 408,184 Equity in earnings of unconsolidated entities 109,729 15 – – – 15 79 109,823 Interest and dividend income 25,834 1,726 23 29 – 1,778 507 28,119 Interest expense (61,239) 784 352 (1,550) – (414) (41,139) (102,792) Other, net 274 (81) 3 (65) – (143) 11 142 Income (loss) before income taxes 411,135 69,618 6,697 (11,201) – 65,114 (32,773) 443,476 Income tax expense (benefit) (1) 161,214 27,083 (9,517) 178,780 Net income (loss) 249,921 38,031 (23,256) 264,696 Add back: Depreciation, amortization and accretion 450,035 124,440 26,109 19,798 – 170,347 8,061 628,443 (Gain) loss on asset disposals, net 12,268 3,373 (561) (21) – 2,791 (11) 15,048 (Gain) loss on sale of business and other exit costs, net (113,825) (3,159) – – – (3,159) (12,947) (129,931) (Gain) loss on license sales and exchanges, net (146,884) – – – – – – (146,884) Interest expense 61,239 (784) (352) 1,550 – 414 41,139 102,792 Income tax expense (benefit) (1) 161,214 27,083 (9,517) 178,780 Adjusted EBITDA (2) $ 673,968 $ 193,488 $ 31,893 $ 10,126 $ – $ 235,507 $ 3,469 $ 912,944 Investments in unconsolidated entities $ 347,709 $ 3,806 $ – $ – $ – $ 3,806 $ 34,638 $ 386,153 Total assets $ 6,938,384 $ 1,322,359 $ 571,836 $ 299,101 $ – $ 2,193,296 $ 185,678 $ 9,317,358 Capital expenditures $ 334,942 $ 90,517 $ 36,575 $ 19,341 $ – $ 146,433 $ 5,570 $ 486,945 TDS Telecom Nine Months Ended or as of September 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 $ 2,548,149 $ 534,880 $ 73,506 $ 82,757 $ (1,959) $ 689,184 $ (3,440) $ 3,233,893 Equipment and product sales 335,854 1,409 – 115,830 – 117,239 25,391 478,484 Total operating revenues 2,884,003 536,289 73,506 198,587 (1,959) 806,423 21,951 3,712,377 Cost of services (excluding Depreciation, amortization and accretion expense reported below) 567,488 192,777 35,000 57,689 (1,820) 283,646 8,495 859,629 Cost of equipment and products 850,314 1,793 – 98,161 – 99,954 18,599 968,867 Selling, general and administrative 1,197,361 140,855 22,611 39,935 (139) 203,262 (1,038) 1,399,585 Depreciation, amortization and accretion 465,042 125,921 15,089 20,195 – 161,205 8,768 635,015 Loss on impairment of assets – – – 84,000 – 84,000 – 84,000 (Gain) loss on asset disposals, net 16,774 1,502 1,116 76 – 2,694 158 19,626 (Gain) loss on sale of business and other exit costs, net (27,694) (2,201) – – – (2,201) 20,816 (9,079) (Gain) loss on license sales and exchanges, net (91,446) – – – – – – (91,446) Operating income (loss) (93,836) 75,642 (310) (101,469) – (26,137) (33,847) (153,820) Equity in earnings of unconsolidated entities 106,166 6 – – – 6 2,026 108,198 Interest and dividend income 6,029 1,744 1 19 – 1,764 1,970 9,763 Interest expense (42,712) 1,939 67 (1,203) – 803 (41,866) (83,775) Other, net 281 (78) – 93 – 15 (17) 279 Income (loss) before income taxes (24,072) 79,253 (242) (102,560) – (23,549) (71,734) (119,355) Income tax expense (benefit) (1) 746 12,571 (6,041) 7,276 Net income (loss) (24,818) (36,120) (65,693) (126,631) Add back: Depreciation, amortization and accretion 465,042 125,921 15,089 20,195 – 161,205 8,768 635,015 Loss on impairment of assets – – – 84,000 – 84,000 – 84,000 (Gain) loss on asset disposals, net 16,774 1,502 1,116 76 – 2,694 158 19,626 (Gain) loss on sale of business and other exit costs, net (27,694) (2,201) – – – (2,201) 20,816 (9,079) (Gain) loss on license sales and exchanges, net (91,446) – – – – – – (91,446) Interest expense 42,712 (1,939) (67) 1,203 – (803) 41,866 83,775 Income tax expense (benefit) (1) 746 – – – – 12,571 (6,041) 7,276 Adjusted EBITDA (2) $ 381,316 $ 202,536 $ 15,896 $ 2,914 $ – $ 221,346 $ (126) $ 602,536 Investments in unconsolidated entities $ 296,900 $ 3,804 $ – $ – $ – $ 3,804 $ 34,744 $ 335,448 Total assets $ 6,257,075 $ 1,385,524 $ 543,731 $ 255,519 $ – $ 2,184,774 $ 198,699 $ 8,640,548 Capital expenditures $ 375,960 $ 84,511 $ 20,998 $ 23,179 $ – $ 128,688 $ 3,856 $ 508,504 (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 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.

Basis of Presentation (Details)

Basis of Presentation (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Basis of Presentation
Business segments, additional information			TDS’ business segments reflected in this Quarterly Report on Form 10-Q for the period ended September 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	$ 23.8	$ 26.4	$ 75.4	$ 86.5
Long-term notes
Basis of Presentation
Debt issuance costs, net	$ 54.7		$ 54.7
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	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Financial Instruments
Cash and cash equivalents	$ 865,425	$ 471,901	$ 573,067	$ 830,014
Institutional | Minimum
Financial Instruments
Fair value assumption, interest rate	0.00%	0.00%
Institutional | Maximum
Financial Instruments
Fair value assumption, interest rate	7.73%	7.25%
Fair Value | Level 1
Financial Instruments
Cash and cash equivalents	$ 865,425	$ 471,901
Fair Value | Level 2 | Retail
Financial Instruments
Long-term debt	1,460,294	1,414,105
Fair Value | Level 2 | Institutional
Financial Instruments
Long-term debt	489,373	513,647
Fair Value | Level 2 | Other
Financial Instruments
Long-term debt	221,538	4,675
Book Value
Financial Instruments
Cash and cash equivalents	865,425	471,901
Book Value | Retail
Financial Instruments
Long-term debt	1,453,250	1,453,250
Book Value | Institutional
Financial Instruments
Long-term debt	532,940	532,722
Book Value | Other
Financial Instruments
Long-term debt	$ 220,922	$ 4,749

Equipment Installment Plans (De

Equipment Installment Plans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Equipment installment plan receivables
Equipment installment plan payment period			24 months
Guarantee liability	$ 91,300		$ 91,300		$ 57,500
Accounting Changes and Error Corrections
Equipment and product sales	236,031	$ 198,551	620,278	$ 478,484
Income before income taxes	107,722	$ (111,909)	$ 443,476	$ (119,355)
Adjustment
Accounting Changes and Error Corrections
Immaterial Error Correction			TDS recorded out-of-period adjustments during the nine months ended September 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 $6.2 million and Income before income taxes by $5.8 million for the nine months ended September 30, 2015. These adjustments were made in the first six months of 2015.
Equipment and product sales			$ 6,200
Income before income taxes			5,800
Short-term
Equipment installment plan receivables
Unbilled equipment installment plan receivables, gross	245,218		245,218		127,400
Unbilled deferred interest	(18,504)		(18,504)		(16,365)
Unbilled allowance for credit losses	(9,326)		(9,326)		(3,686)
Unbilled equipment installment plan receivables, net	217,388		217,388		107,349
Long-term
Equipment installment plan receivables
Unbilled equipment installment plan receivables, gross	66,512		66,512		89,435
Unbilled deferred interest	(819)		(819)		(2,791)
Unbilled allowance for credit losses	(4,740)		(4,740)		(6,065)
Unbilled equipment installment plan receivables, net	$ 60,953		$ 60,953		$ 80,579

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure
Effective income tax rate	42.10%	40.30%
Tax expense adjustment due to impairment			$ 19.9
Deferred tax asset valuation allowance | State
Valuation Allowance
Increase (decrease) in valuation allowance			40.8
Deferred tax asset valuation allowance | Federal
Valuation Allowance
Increase (decrease) in valuation allowance			$ (10.8)

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 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	$ 51,071	$ (116,042)	$ 219,832	$ (119,851)
Adjustments to compute diluted earnings (loss)
Noncontrolling interest adjustment	(384)		(1,540)
Preferred dividend adjustment	12		37
Net income (loss) attributable to common shareholders of TDS used in diluted earnings (loss) per share	$ 50,699	$ (116,042)	$ 218,329	$ (119,851)
Weighted average number of shares used in basic earnings (loss) per share
Weighted average number of shares used in basic earnings (loss) per share	108,848	108,252	108,503	108,650
Effects of dilutive securities:
Stock options	818		778
Restricted stock units	498		406
Preferred shares	50		50
Weighted average number of shares used in diluted earnings (loss) per share	110,214	108,252	109,737	108,650
Earnings per share, Other disclosures
Basic earnings (loss) per share attributable to TDS shareholders	$ 0.47	$ (1.07)	$ 2.03	$ (1.10)
Diluted earnings (loss) per share attributable to TDS shareholders	$ 0.46	$ (1.07)	$ 1.99	$ (1.10)
Stock Options
Earnings per share, Other disclosures
Antidilutive shares	4,687	9,207	4,438	8,922
Restricted Stock Units
Earnings per share, Other disclosures
Antidilutive shares		992	191	823
Preferred Shares
Earnings per share, Other disclosures
Antidilutive shares		52		52
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	101,652	101,067	101,315	101,474
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	7,196	7,185	7,188	7,176

Acquisitions, Divestitures and

Acquisitions, Divestitures and Exchanges, acquisitions (Details) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 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 (“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 have not yet been granted by the FCC.  See Note 10 — 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 ($)	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Divestiture Financial Impacts
Cash received from divestitures and exchanges						$ 324,772	$ 151,369
(Gain) loss on sale of business and other exit costs, net				$ (559)	$ (4,790)	(129,931)	(9,079)
U.S. Cellular
Divestiture Financial Impacts
(Gain) loss on sale of business and other exit costs, net				(643)	(10,283)	$ (113,825)	(27,694)
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 spectrum licenses 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				$ (300)	$ (10,400)	$ (6,200)	(28,100)
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 agreement and related transactions are referred to as the “Tower Sale” and were 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						$ 27,600	$ 52,000	$ 109,300
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	9 Months Ended
	Jul. 31, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2014
Exchanges
(Gain) loss on license sales and exchanges, net				$ (23,986)	$ (146,884)	$ (91,446)
Cash received from divestitures and exchanges					324,772	151,369
Other current liabilities			$ 181,803	105,625	105,625
U.S. Cellular
Exchanges
(Gain) loss on license sales and exchanges, net				(23,986)	$ (146,884)	$ (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. The second closing occurred in July 2015.  At the time of the second closing, U.S. Cellular received $28.0 million in cash and recognized the deferred credit from the first closing, resulting in a total gain of $24.1 million recorded 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
(Gain) loss on license sales and exchanges, net	$ (24,100)
Cash received from divestitures and exchanges	$ 28,000
Licenses				$ 22,200	$ 22,200
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) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Licenses
Total winning bid	$ 338,300
Licenses
Licenses
Balance, beginning of period	1,453,574
Acquisitions	345,656	[1]
Exchanges	43,485	[2]
Other	1,482
Balance, end of period	$ 1,844,197
[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 10 — 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 this exchange and the exchange that closed in July 2015 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		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Equity method investments, combined income statements
Revenues	$ 1,738,488	$ 1,649,160	$ 5,199,305	$ 4,876,269
Operating expenses	1,267,820	1,230,366	3,840,462	3,554,598
Operating income	470,668	418,794	1,358,843	1,321,671
Other income (loss), net	(10,236)	4,752	(16,744)	7,178
Net income	$ 460,432	$ 423,546	$ 1,342,099	$ 1,328,849

Debt, term loan facility (Detai

Debt, term loan facility (Details) - U.S. Cellular Term loan facility - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2016
Term loan
Proceeds from Term Loan borrowings	$ 225
Interest rate on debt	2.88%
Contractual spread	2.50%
Frequency of periodic Term Loan payment	quarterly
Maturity date	Jan. 21, 2022
Expected event
Term loan
Term Loan periodic payment amount		$ 2.8

Variable Interest Entities (Det

Variable Interest Entities (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended			9 Months Ended			12 Months Ended
	Mar. 31, 2015	Sep. 30, 2015		Sep. 30, 2014	Sep. 30, 2015		Sep. 30, 2014	Dec. 31, 2014	Dec. 31, 2013
Assets
Cash and cash equivalents		$ 865,425		$ 573,067	$ 865,425		$ 573,067	$ 471,901	$ 830,014
Other current assets		30,425			30,425			29,766
Licenses		1,844,197			1,844,197			1,453,574
Property, plant and equipment, net		3,706,687			3,706,687			3,846,125
Other assets and deferred charges		236,803			236,803			334,554
Liabilities
Current liabilities		1,082,570			1,082,570			1,063,256
Variable Interest Entities, Other Disclosures
Total winning bid		338,300			338,300
Accounting Changes and Error Corrections
Net income (loss)		62,395		(121,199)	264,696		(126,631)
Net income (loss) attributable to TDS shareholders		51,083		(116,030)	$ 219,869		(119,814)
Adjustment
Accounting Changes and Error Corrections
Immaterial Error Correction					TDS recorded out-of-period adjustments during the nine months ended September 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 $6.2 million and Income before income taxes by $5.8 million for the nine months ended September 30, 2015. These adjustments were made in the first six months of 2015.
U.S. Cellular
Accounting Changes and Error Corrections
Net income (loss)		65,021		$ (23,771)	$ 249,921		$ (24,818)
Variable Interest Entities
Assets
Cash and cash equivalents		1,681			1,681			2,588
Other current assets		175			175			278
Licenses		648,661	[1]		648,661	[1]		312,977
Property, plant and equipment, net		8,635			8,635			10,671
Other assets and deferred charges		324			324			60,059
Total assets		659,476			659,476			386,573
Liabilities
Current liabilities		1			1			110
Deferred liabilities and credits		494			494			622
Total liabilities		$ 495			495			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			124
Total winning bid		$ 338,300			$ 338,300
Designated entity auction discount		25.00%			25.00%
Other auction charges		$ 2,300			$ 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, L.P. distribution paid to King Street Wireless, Inc.	$ 6,000
King Street Wireless L.P. | Adjustment
Accounting Changes and Error Corrections
Immaterial Error Correction					During the three and nine-months ended September 30, 2015, TDS recorded out-of-period adjustments attributable to the third quarter of 2013 through the second quarter of 2015 related to an agreement with King Street Wireless.  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.  As a result of these out-of-period adjustments, for the three and nine months ended September 30, 2015, Net income decreased by $3.2 million and $2.8 million, and Net income attributable to TDS shareholders decreased by $3.8 million and $3.3 million, respectively.
Net income (loss)		3,200			$ 2,800
Net income (loss) attributable to TDS shareholders		$ 3,800			$ 3,300
[1]	At September 30, 2015, 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		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Noncontrolling interests
Net income (loss) attributable to TDS shareholders	$ 51,083	$ (116,030)	$ 219,869	$ (119,814)
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			(13,768)	(11,042)
Change in TDS' Capital in excess of par value from U.S. Cellular's repurchase of U.S. Cellular shares			951	858
Purchase of ownership in subsidiaries from noncontrolling interests			240	7,484
Net transfers (to) from noncontrolling interests			(12,577)	(2,700)
Change from net income (loss) attributable to TDS shareholders and transfers (to) from noncontrolling interests			$ 207,292	$ (122,514)

Common Share Repurchases (Detai

Common Share Repurchases (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Share repurchases
Amount		$ 31,794
Treasury Shares
Share repurchases
Amount		$ 31,794
Common Shares | TDS Parent Company | Treasury Shares
Share repurchases
Number of shares acquired		1,230
Average cost per share		$ 25.85
Amount		$ 31,794
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	154	384
Average cost per share	$ 34.85	$ 39.37
Amount	$ 5,362	$ 15,124
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		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Business Segment Information
Service		$ 1,137,767	$ 1,081,472	$ 3,281,508	$ 3,233,893
Equipment and product sales		236,031	198,551	620,278	478,484
Total operating revenues		1,373,798	1,280,023	3,901,786	3,712,377
Cost of services (excluding Depreciation, amortization and accretion reported below)		303,091	297,183	896,890	859,629
Cost of equipment and products		337,051	349,209	907,482	968,867
Selling, general and administrative		449,084	465,014	1,322,554	1,399,585
Depreciation, amortization and accretion		210,764	205,529	628,443	635,015
Loss on impairment of assets			84,000		84,000
(Gain) loss on asset disposals, net		4,919	9,293	15,048	19,626
(Gain) loss on sale of business and other exit costs, net		(559)	(4,790)	(129,931)	(9,079)
(Gain) loss on license sales and exchanges, net		(23,986)		(146,884)	(91,446)
Operating income (loss)		93,434	(125,415)	408,184	(153,820)
Equity in earnings of unconsolidated entities		39,770	36,081	109,823	108,198
Interest and dividend income		9,617	4,526	28,119	9,763
Interest expense		(35,043)	(27,170)	(102,792)	(83,775)
Other, net		(56)	69	142	279
Income (loss) before income taxes		107,722	(111,909)	443,476	(119,355)
Income tax expense		45,327	9,290	178,780	7,276
Net income (loss)		62,395	(121,199)	264,696	(126,631)
Depreciation, amortization and accretion		210,764	205,529	628,443	635,015
Loss on impairment of assets			84,000		84,000
(Gain) loss on asset disposals, net		4,919	9,293	15,048	19,626
(Gain) loss on sale of business and other exit costs, net		(559)	(4,790)	(129,931)	(9,079)
(Gain) loss on license sales and exchanges, net		(23,986)		(146,884)	(91,446)
Interest expense		35,043	27,170	102,792	83,775
Income tax expense		45,327	9,290	178,780	7,276
Adjusted EBITDA	[1]	333,903	209,293	912,944	602,536
Investments in unconsolidated entities		386,153	335,448	386,153	335,448	$ 321,729
Total assets		9,317,358	8,640,548	9,317,358	8,640,548	$ 8,906,939
Capital expenditures		193,708	195,225	486,945	508,504
U.S. Cellular
Business Segment Information
Service		895,960	851,063	2,548,544	2,548,149
Equipment and product sales		172,946	149,356	461,274	335,854
Total operating revenues		1,068,906	1,000,419	3,009,818	2,884,003
Cost of services (excluding Depreciation, amortization and accretion reported below)		198,982	199,750	585,935	567,488
Cost of equipment and products		287,256	307,862	779,228	850,314
Selling, general and administrative		374,585	397,545	1,106,524	1,197,361
Depreciation, amortization and accretion		152,369	148,952	450,035	465,042
(Gain) loss on asset disposals, net		2,618	7,947	12,268	16,774
(Gain) loss on sale of business and other exit costs, net		(643)	(10,283)	(113,825)	(27,694)
(Gain) loss on license sales and exchanges, net		(23,986)		(146,884)	(91,446)
Operating income (loss)		77,725	(51,354)	336,537	(93,836)
Equity in earnings of unconsolidated entities		39,674	35,971	109,729	106,166
Interest and dividend income		9,299	3,572	25,834	6,029
Interest expense		(21,121)	(13,514)	(61,239)	(42,712)
Other, net		78	95	274	281
Income (loss) before income taxes		105,655	(25,230)	411,135	(24,072)
Income tax expense	[2]	40,634	(1,459)	161,214	746
Net income (loss)		65,021	(23,771)	249,921	(24,818)
Depreciation, amortization and accretion		152,369	148,952	450,035	465,042
(Gain) loss on asset disposals, net		2,618	7,947	12,268	16,774
(Gain) loss on sale of business and other exit costs, net		(643)	(10,283)	(113,825)	(27,694)
(Gain) loss on license sales and exchanges, net		(23,986)		(146,884)	(91,446)
Interest expense		21,121	13,514	61,239	42,712
Income tax expense	[2]	40,634	(1,459)	161,214	746
Adjusted EBITDA	[1]	257,134	134,900	673,968	381,316
Investments in unconsolidated entities		347,709	296,900	347,709	296,900
Total assets		6,938,384	6,257,075	6,938,384	6,257,075
Capital expenditures		134,816	142,452	334,942	375,960
TDS Telecom Wireline
Business Segment Information
Service		174,579	177,650	525,683	534,880
Equipment and product sales		477	425	1,478	1,409
Total operating revenues		175,056	178,075	527,161	536,289
Cost of services (excluding Depreciation, amortization and accretion reported below)		63,696	64,072	188,727	192,777
Cost of equipment and products		515	829	1,675	1,793
Selling, general and administrative		50,062	46,627	144,931	140,855
Depreciation, amortization and accretion		41,228	41,358	124,440	125,921
(Gain) loss on asset disposals, net		1,845	743	3,373	1,502
(Gain) loss on sale of business and other exit costs, net		(105)	(2,201)	(3,159)	(2,201)
Operating income (loss)		17,815	26,647	67,174	75,642
Equity in earnings of unconsolidated entities		2	2	15	6
Interest and dividend income		624	569	1,726	1,744
Interest expense		193	598	784	1,939
Other, net		(48)	71	(81)	(78)
Income (loss) before income taxes		18,586	27,887	69,618	79,253
Depreciation, amortization and accretion		41,228	41,358	124,440	125,921
(Gain) loss on asset disposals, net		1,845	743	3,373	1,502
(Gain) loss on sale of business and other exit costs, net		(105)	(2,201)	(3,159)	(2,201)
Interest expense		(193)	(598)	(784)	(1,939)
Adjusted EBITDA	[1]	61,361	67,189	193,488	202,536
Investments in unconsolidated entities		3,806	3,804	3,806	3,804
Total assets		1,322,359	1,385,524	1,322,359	1,385,524
Capital expenditures		38,354	34,243	90,517	84,511
TDS Telecom Cable
Business Segment Information
Service		43,741	28,519	131,767	73,506
Equipment and product sales		119		277
Total operating revenues		43,860	28,519	132,044	73,506
Cost of services (excluding Depreciation, amortization and accretion reported below)		19,545	12,651	59,342	35,000
Cost of equipment and products		25		100
Selling, general and administrative		14,346	9,948	40,735	22,611
Depreciation, amortization and accretion		8,530	6,171	26,109	15,089
(Gain) loss on asset disposals, net		425	626	(561)	1,116
Operating income (loss)		989	(877)	6,319	(310)
Interest and dividend income		10	(1)	23	1
Interest expense		109	32	352	67
Other, net				3
Income (loss) before income taxes		1,108	(846)	6,697	(242)
Depreciation, amortization and accretion		8,530	6,171	26,109	15,089
(Gain) loss on asset disposals, net		425	626	(561)	1,116
Interest expense		(109)	(32)	(352)	(67)
Adjusted EBITDA	[1]	9,954	5,919	31,893	15,896
Total assets		571,836	543,731	571,836	543,731
Capital expenditures		13,023	7,598	36,575	20,998
TDS Telecom HMS
Business Segment Information
Service		30,428	27,806	88,311	82,757
Equipment and product sales		51,214	39,737	129,878	115,830
Total operating revenues		81,642	67,543	218,189	198,587
Cost of services (excluding Depreciation, amortization and accretion reported below)		21,163	19,442	63,145	57,689
Cost of equipment and products		43,081	33,819	108,777	98,161
Selling, general and administrative		12,446	12,724	36,105	39,935
Depreciation, amortization and accretion		6,790	6,726	19,798	20,195
Loss on impairment of assets			84,000		84,000
(Gain) loss on asset disposals, net		22	(2)	(21)	76
Operating income (loss)		(1,860)	(89,166)	(9,615)	(101,469)
Interest and dividend income		6	(23)	29	19
Interest expense		(565)	(343)	(1,550)	(1,203)
Other, net		(79)	(86)	(65)	93
Income (loss) before income taxes		(2,498)	(89,618)	(11,201)	(102,560)
Depreciation, amortization and accretion		6,790	6,726	19,798	20,195
Loss on impairment of assets			84,000		84,000
(Gain) loss on asset disposals, net		22	(2)	(21)	76
Interest expense		565	343	1,550	1,203
Adjusted EBITDA	[1]	4,879	1,449	10,126	2,914
Total assets		299,101	255,519	299,101	255,519
Capital expenditures		5,090	9,800	19,341	23,179
TDS Telecom Eliminations
Business Segment Information
Service		(1,184)	(980)	(3,222)	(1,959)
Total operating revenues		(1,184)	(980)	(3,222)	(1,959)
Cost of services (excluding Depreciation, amortization and accretion reported below)		(1,125)	(926)	(3,011)	(1,820)
Selling, general and administrative		(59)	(54)	(211)	(139)
TDS Telecom
Business Segment Information
Service		247,564	232,995	742,539	689,184
Equipment and product sales		51,810	40,162	131,633	117,239
Total operating revenues		299,374	273,157	874,172	806,423
Cost of services (excluding Depreciation, amortization and accretion reported below)		103,279	95,239	308,203	283,646
Cost of equipment and products		43,621	34,648	110,552	99,954
Selling, general and administrative		76,795	69,245	221,560	203,262
Depreciation, amortization and accretion		56,548	54,255	170,347	161,205
Loss on impairment of assets			84,000		84,000
(Gain) loss on asset disposals, net		2,292	1,367	2,791	2,694
(Gain) loss on sale of business and other exit costs, net		(105)	(2,201)	(3,159)	(2,201)
Operating income (loss)		16,944	(63,396)	63,878	(26,137)
Equity in earnings of unconsolidated entities		2	2	15	6
Interest and dividend income		640	545	1,778	1,764
Interest expense		(263)	287	(414)	803
Other, net		(127)	(15)	(143)	15
Income (loss) before income taxes		17,196	(62,577)	65,114	(23,549)
Income tax expense	[2]	8,278	(2,937)	27,083	12,571
Net income (loss)		8,918	(59,640)	38,031	(36,120)
Depreciation, amortization and accretion		56,548	54,255	170,347	161,205
Loss on impairment of assets			84,000		84,000
(Gain) loss on asset disposals, net		2,292	1,367	2,791	2,694
(Gain) loss on sale of business and other exit costs, net		(105)	(2,201)	(3,159)	(2,201)
Interest expense		263	(287)	414	(803)
Income tax expense	[2]	8,278	(2,937)	27,083	12,571
Adjusted EBITDA	[1]	76,194	74,557	235,507	221,346
Investments in unconsolidated entities		3,806	3,804	3,806	3,804
Total assets		2,193,296	2,184,774	2,193,296	2,184,774
Capital expenditures		56,467	51,641	146,433	128,688
Corporate, Eliminations and Other
Business Segment Information
Service		(5,757)	(2,586)	(9,575)	(3,440)
Equipment and product sales		11,275	9,033	27,371	25,391
Total operating revenues		5,518	6,447	17,796	21,951
Cost of services (excluding Depreciation, amortization and accretion reported below)		830	2,194	2,752	8,495
Cost of equipment and products		6,174	6,699	17,702	18,599
Selling, general and administrative		(2,296)	(1,776)	(5,530)	(1,038)
Depreciation, amortization and accretion		1,847	2,322	8,061	8,768
(Gain) loss on asset disposals, net		9	(21)	(11)	158
(Gain) loss on sale of business and other exit costs, net		189	7,694	(12,947)	20,816
Operating income (loss)		(1,235)	(10,665)	7,769	(33,847)
Equity in earnings of unconsolidated entities		94	108	79	2,026
Interest and dividend income		(322)	409	507	1,970
Interest expense		(13,659)	(13,943)	(41,139)	(41,866)
Other, net		(7)	(11)	11	(17)
Income (loss) before income taxes		(15,129)	(24,102)	(32,773)	(71,734)
Income tax expense	[2]	(3,585)	13,686	(9,517)	(6,041)
Net income (loss)		(11,544)	(37,788)	(23,256)	(65,693)
Depreciation, amortization and accretion		1,847	2,322	8,061	8,768
(Gain) loss on asset disposals, net		9	(21)	(11)	158
(Gain) loss on sale of business and other exit costs, net		189	7,694	(12,947)	20,816
Interest expense		13,659	13,943	41,139	41,866
Income tax expense	[2]	(3,585)	13,686	(9,517)	(6,041)
Adjusted EBITDA	[1]	575	(164)	3,469	(126)
Investments in unconsolidated entities		34,638	34,744	34,638	34,744
Total assets		185,678	198,699	185,678	198,699
Capital expenditures		$ 2,425	$ 1,132	$ 5,570	$ 3,856
[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".