Telephone and Data Systems (TDS) 10-Q 6 May 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information	3 Months Ended
	Mar. 31, 2016shares
Entity Registrant Name	TELEPHONE & DATA SYSTEMS INC /DE/
Entity Central Index Key	1,051,512
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	TDS
Common Shares
Entity Common Stock, Shares Outstanding	101,822,914
Series A Common Shares
Entity Common Stock, Shares Outstanding	7,218,406

Consolidated Statement Of Opera

Consolidated Statement Of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating revenues
Service	$ 1,000	$ 1,073
Equipment and product sales	243	179
Total operating revenues	1,243	1,252
Operating expenses
Cost of services (excluding Depreciation, amortization and accretion reported below)	288	294
Cost of equipment and products	291	272
Selling, general and administrative	431	438
Depreciation, amortization and accretion	212	207
(Gain) loss on asset disposals, net	6	5
(Gain) loss on sale of business and other exit costs, net		(124)
(Gain) loss on license sales and exchanges, net		(123)
Total operating expenses	1,228	969
Operating income	15	283
Investment and other income (expense)
Equity in earnings of unconsolidated entities	35	35
Interest and dividend income	14	8
Interest expense	(41)	(34)
Total investment and other income	8	9
Income before income taxes	23	292
Income tax expense	13	116
Net income	10	176
Less: Net income attributable to noncontrolling interests, net of tax	2	30
Net income attributable to TDS shareholders	8	146
Net income available to TDS common shareholders	$ 8	$ 146
Basic weighted average shares outstanding	109	108
Basic earnings per share available to TDS common shareholders	$ 0.07	$ 1.35
Diluted weighted average shares outstanding	110	109
Diluted earnings per share available to TDS common shareholders	$ 0.07	$ 1.33
Dividends per share to TDS shareholders	$ 0.148	$ 0.141

Consolidated Statement Of Compr

Consolidated Statement Of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Consolidated Statement of Comprehensive Income
Net income	$ 10	$ 176
Change related to retirement plan
Change in prior service cost		(1)
Comprehensive income	10	175
Less: Net income attributable to noncontrolling interest, net of tax	2	30
Comprehensive income attributable to TDS shareholders	$ 8	$ 145

Consolidated Statement Of Cash

Consolidated Statement Of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities
Net income	$ 10	$ 176
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities
Depreciation, amortization and accretion	212	207
Bad debts expense	19	30
Stock-based compensation expense	9	8
Deferred income taxes, net	5	(47)
Equity in earnings of unconsolidated entities	(35)	(35)
Distributions from unconsolidated entities	14	13
(Gain) loss on asset disposals, net	6	5
(Gain) loss on sale of business and other exit costs, net		(124)
(Gain) loss on license sales and exchanges, net		(123)
Noncash interest expense	1	1
Changes in assets and liabilities from operations
Accounts receivable	20	21
Equipment installment plans receivable	(41)	(36)
Inventory	(1)	95
Accounts payable	39	(14)
Customer deposits and deferred revenues	(6)	13
Accrued taxes	63	252
Accrued interest	9	9
Other assets and liabilities	(78)	(96)
Net cash provided by operating activities	246	355
Cash flows from investing activities
Cash used for additions to property, plant and equipment	(159)	(166)
Cash paid for acquisitions and licenses		(281)
Cash received from divestitures and exchanges	2	274
Other investing activities		3
Net cash used in investing activities	(157)	(170)
Cash flows from financing activities
Repayment of long-term debt	(3)
U.S. Cellular Common Shares reissued for benefit plans, net of tax payments	1
Repurchase of TDS Common Shares	(3)
Repurchase of U.S. Cellular Common Shares	(2)	(2)
Dividends paid to TDS shareholders	(16)	(15)
Payment of debt issuance costs		(3)
Other financing activities	3	(2)
Net cash used in financing activities	(20)	(22)
Net increase in cash and cash equivalents	69	163
Cash and cash equivalents
Beginning of period	985	472
End of period	$ 1,054	$ 635

Consolidated Balance Sheet

Consolidated Balance Sheet - USD ($) $ in Millions		Mar. 31, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents		$ 1,054	$ 985
Accounts receivable
Due from customers and agents, less allowances of $44 and $49, respectively		700	705
Other, less allowances of $1 and $1, respectively		92	98
Inventory, net		160	158
Prepaid expenses		130	112
Income taxes receivable		5	70
Other current assets		32	30
Total current assets		2,173	2,158
Assets held for sale		26
Licenses		1,818	1,844
Goodwill		766	766
Franchise rights		244	244
Other intangible assets, net of accumulated amortization of $148 and $144, respectively		43	47
Investments in unconsolidated entities		423	402
Property, plant and equipment
In service and under construction		11,581	11,520
Less: Accumulated depreciation and amortization		7,902	7,756
Property, plant and equipment, net		3,679	3,764
Other assets and deferred charges		211	197
Total assets	[1]	9,383	9,422
Current liabilities
Current portion of long-term debt		14	14
Accounts payable		355	349
Customer deposits and deferred revenues		283	288
Accrued interest		21	12
Accrued taxes		36	41
Accrued compensation		75	113
Other current liabilities		106	127
Total current liabilities		890	944
Deferred liabilities and credits
Net deferred income tax liability		905	900
Other deferred liabilities and credits		441	433
Long-term debt, net		$ 2,437	$ 2,440
Commitments and contingencies
Noncontrolling interests with redemption features		$ 2	$ 1
TDS shareholders' equity
Series A Common and Common Shares		1	1
Capital in excess of par value		2,372	2,365
Treasury shares at cost		(726)	(727)
Retained earnings		2,479	2,487
Total TDS shareholders' equity		4,126	4,126
Preferred shares		1	1
Noncontrolling interests		581	577
Total equity		4,708	4,704
Total liabilities and equity	[1]	$ 9,383	$ 9,422
[1]	The consolidated total assets as of March 31, 2016 and December 31, 2015 include certain assets held by consolidated VIEs of $804 million and $658 million, respectively, which are not available to be used to settle the obligations of TDS. The consolidated total liabilities as of March 31, 2016 and December 31, 2015 include certain liabilities of consolidated VIEs of $16 million and $1 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of TDS. See Note 8 — Variable Interest Entities for additional information.

Consolidated Balance Sheet Pare

Consolidated Balance Sheet Parenthetical - USD ($) shares in Millions, $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Current assets
Due from customers and agents, less allowances	$ 44	$ 49
Other, less allowances	1	1
Investments
Other intangible assets, net of accumulated amortization	$ 148	$ 144
TDS shareholders' equity
Authorized shares	290	290
Issued shares	133	133
Outstanding shares	109	109
Par value	$ 1	$ 1
Variable Interest Entities VIEs
Total VIE assets that can be used to settle only the VIEs' obligations	804	658
Total VIE liabilities for which creditors have no recourse	$ 16	$ 1
Treasury Shares
TDS shareholders' equity
Treasury shares at cost	24	24
Series A Common Shares
TDS shareholders' equity
Authorized shares	25	25
Issued shares	7	7
Outstanding shares	7	7
Par value per share	$ 0.01	$ 0.01
Common Shares
TDS shareholders' equity
Authorized shares	265	265
Issued shares	126	126
Outstanding shares	102	102
Par value per share	$ 0.01	$ 0.01

Consolidated Statement of Chang

Consolidated Statement of Changes in Equity - USD ($) $ in Millions	Total	Series A Common and Common Shares	Capital in Excess of Par Value	Treasury Shares	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Total TDS Shareholders' Equity	Preferred Shares	Noncontrolling Interests
Beginning balance at Dec. 31, 2014	$ 4,455	$ 1	$ 2,337	$ (748)	$ 6	$ 2,330	$ 3,926	$ 1	$ 528
Net income attributable to TDS shareholders	146					146	146
Net income attributable to noncontrolling interests classified as equity	24								24
TDS Common and Series A Common Share dividends	(15)					(15)	(15)
Dividend reinvestment plan	2		1	1			2
Incentive and compensation plans				1		(1)
Adjust investment in subsidiaries for repurchases, issuances and other compensation plans	4		5				5		(1)
Stock-based compensation awards	2		2				2
Ending balance at Mar. 31, 2015	4,618	1	2,345	(746)	$ 6	2,460	4,066	1	551
Beginning balance at Dec. 31, 2015	4,704	1	2,365	(727)		2,487	4,126	1	577
Net income attributable to TDS shareholders	8					8	8
Net income attributable to noncontrolling interests classified as equity	1								1
TDS Common and Series A Common Share dividends	(16)					(16)	(16)
Repurchase of Common shares	(3)			(3)			(3)
Dividend reinvestment plan	3		1	2			3
Incentive and compensation plans	1		(1)	2			1
Adjust investment in subsidiaries for repurchases, issuances and other compensation plans	5		2				2		3
Stock-based compensation awards	4		4				4
Tax windfall (shortfall) from stock awards	1		1				1
Ending balance at Mar. 31, 2016	$ 4,708	$ 1	$ 2,372	$ (726)		$ 2,479	$ 4,126	$ 1	$ 581

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2016
Disclosure Text Block
Basis of Presentation	Note 1 Basis of Presentation The accounting policies of Telephone and Data Systems, Inc. (“TDS”) conform to accounting principles generally accepted in the United States of America (“GAAP”) as set forth in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). The consolidated financial statements include the accounts of TDS and subsidiaries in which it has a controlling financial interest, including TDS’ 84% -owned wireless telephone subsidiary, United States Cellular Corporation (“U.S. Cellular”) and TDS’ wholly-owned subsidiary, T DS Telecommunications Corporation (“TDS Telecom”). In addition, the consolidated financial statements include certain entities in which TDS ha s a variable interest that require consolidation under GAAP. All material intercompany accounts and transactions have been eliminated. 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. Cal culated amounts and percentages are based on the underlying actual numbers rather than the numbers rounded to millions as presented. 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, 2015 . TDS’ business segments reflected in this Quarterly Report on Form 10-Q for the period ended March 31, 2016 are U.S. Cellular, Wireline, Cable, and Hosted and Managed Services (“HMS”) operations. TDS’ non-reportable other business activities are presented as “Corporate, Eliminations and Other”, which include s the operations of TDS’ wholly-owned subsidiary Suttle-Straus, Inc. (“Suttle-Straus”). Suttle-Straus’ financial results were not significant to TDS’ operations. All of TDS’ segments operate only in the United States, except for HMS, which includes an in significant foreign operation. See Note 10 — Business Segment Information for summary financial information on each business segment. The accompanying unaudited consolidat ed financial statements contain all adjustments (consisting of normal recurring items, unless otherwise disclosed) necessary for the fair statement of TDS’ financial position as of March 31, 2016 and December 31, 2015 , and its results of operations, cash flows, comprehensive income and changes in equity for the three months ended March 31, 2016 and 2015 . These results are not necessarily indicative of the results to be expected for the full year. Recently Issued Accounting Pronouncements In 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 2 015, 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 for TDS. 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 and results of operations. 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 permit ted. The adoption of ASU 2014-15 will not impact TDS’ financial position or results of operations but may impact future disclosures. In July 2015, the FASB issued Accounting Standards Update 2015-11, Inventory: Simplifying the Measurement of Inventory (“A SU 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 hav e on its financial position and results of operations. In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). This A SU introduces changes to current accounting for equity investments and financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. TDS is required to adopt ASU 2016-01 on January 1, 2018. Certain provisions are eligible for early adoption. TDS is evaluating the effects that adoption of ASU 2016-01 will have on its financial position and results of operations. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (“A SU 2016-02”). ASU 2016-02 requires lessees to record a right-of-use asset and lease liability for almost all leases. This ASU does not substantially impact lessor accounting. TDS is required to adopt ASU 2016-02 on January 1, 2019. Early adoption is pe rmitted. Upon adoption of ASU 2016-02, TDS expects a substantial increase to assets and liabilities on its balance sheet. TDS is still evaluating the full effects that adoption of ASU 2016-02 will have on its financial position and results of operations. In March 2016, the FASB issued Accounting Standards Update 2016-04, Liabilities – Extinguishments of Liabilities: Recognition of Breakage from Certain Prepaid Stored-Value Products (“ASU 2016-04”). ASU 2016-04 requires companies that sell prepaid stored- value products redeemable for goods, services or cash at third-party merchants to recognize breakage (i.e. the value that is ultimately not redeemed by the consumer) in a way that is consistent with how it will be recognized under the new revenue recogniti on standard. TDS is required to adopt ASU 2016-04 on January 1, 2018. Early adoption is permitted. TDS is evaluating the effects that adoption of ASU 2016-04 will have on its financial position and results of operations. In March 2016, the FASB issued A ccounting Standards Update 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”). The amendments in ASU 2016-08 clarify the guidance on principal versus agent considerati ons as it relates to recognizing revenue. TDS is required to adopt ASU 2016-08 on January 1, 2018 in conjunction with the effective date of ASU 2014-09. 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 2016-08 will have on its financial position and results of operations. In March 2016, the FASB issued Accounting Standards Update 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Bas ed Payment Accounting (“ASU 2016-09”). ASU 2016-09 intends to simplify the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statemen t of cash flows. TDS is required to adopt ASU 2016-09 on January 1, 2017. Early adoption is permitted. TDS is evaluating the effects that adoption of ASU 2016-09 will have on its financial position, results of operations and cash flows. In April 2016, t he FASB issued Accounting Standards Update 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing (“ASU 2016-10”). ASU 2016-10 provides clarification around identifying performance obligations and accounting arra ngements whereby a license is granted as it relates to ASC 606 – Revenue from Contracts with Customers. TDS is required to adopt ASU 2016-10 on January 1, 2018 in conjunction with the effective date of ASU 2014-09. 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 2016-10 will have on its financial position and results of operations. Amounts Collected from Customers and Remitted to Governmental Authorities T DS 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 au thority. 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 Co nsolidated Statement of Operations. The amounts recorded gross in revenues that are billed to customers and remitted to governmental authorities totaled $ 23 million and $ 26 million for the three months ended March 31, 2016 and 2015 , respectively.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2016
Disclosure Text Block
Fair Value Measurements	Note 2 Fair Value Measurements As of March 31, 2016 and December 31, 2015 , TDS did not have any financial or nonfinancial assets or liabilities that were required to be recorded at fair value in its Consolidated Balance Sheet in accordance with GAAP. The provisions of GAAP establish a fair value hierarchy that contains three levels for inputs used in fair value measurements. Level 1 inputs include quoted market prices for identical assets or liabilities in active markets. Level 2 inputs include quoted market prices for similar assets and liabilities in active markets or quoted market prices for iden tical assets and liabilities in inactive markets. Level 3 inputs are unobservable. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. A financial in strument’s level within the fair value hierarchy is not representative of its expected performance or its overall risk profile and, therefore, Level 3 assets are not necessarily higher risk than Level 2 or Level 1 assets. TDS has applied the provisions of fair value accounting for purposes of computing the fair value of financial instruments for disclosure purposes as displayed below. Level within the Fair Value Hierarchy March 31, 2016 December 31, 2015 Book Value Fair Value Book Value Fair Value (Dollars in millions) Cash and cash equivalents 1 $ 1,054 $ 1,054 $ 985 $ 985 Long-term debt Retail 2 1,753 1,778 1,753 1,766 Institutional 2 533 485 533 501 Other 2 213 212 216 215 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, 7.25% Senior Notes due 2063 and 7.25% Senior Notes due 2064 . TDS’ “Institutional” debt consists of U.S. Cellular’s 6.7% Senior Notes which are traded over the counter. TDS’ “Other” debt consist s 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 7.84% and 0.00% to 7.51% at March 31, 2016 and December 31, 2015 , respectively.

Equipment Installment Plans

Equipment Installment Plans	3 Months Ended
	Mar. 31, 2016
Disclosure Text Block
Equipment Installment Plans	Note 3 Equipment Installment Plans TDS offers customers, through its owned and agent distribution channels, the option to purchase certain devices under equipment installment contracts over a specified time period. For certain equipment installment plans (“EIP”), after a specified period of time or amount of payments, the customer may have the right to upgrade to a new device and have the remaining unpaid equipment installment contract balance waived, subject to certain conditions, including trading in the original device in good working condition and signing a new equipment installment contract. TDS values th is 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 March 31, 2016 and December 31, 2015 , the guarantee liability related to these plans was $ 77 mill ion and $ 93 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 inst allment plans with a duration of greater than twelve months, TDS imputes interest. Equipment installment plan receivables had a weighted average effective imputed interest rate of 9.9% and 9.7% as of March 31, 2016 and December 31, 2015 , respectively. The following table summarizes unbilled equipment installment plan receivables as of March 31, 2016 and December 31, 2015 . Such amounts are included in the Consolidated Balance Sheet as Accounts receivable – customers and agents and Other assets and deferred charges, where applicable. March 31, 2016 December 31, 2015 (Dollars in millions) Short-term portion of unbilled equipment installment plan receivables, gross $ 300 $ 279 Short-term portion of unbilled deferred interest (23) (21) Short-term portion of unbilled allowance for credit losses (16) (14) Short-term portion of unbilled equipment installment plan receivables, net $ 261 $ 244 Long-term portion of unbilled equipment installment plan receivables, gross $ 91 $ 76 Long-term portion of unbilled deferred interest (3) (2) Long-term portion of unbilled allowance for credit losses (7) (6) Long-term portion of unbilled equipment installment plan receivables, net $ 81 $ 68 TDS assesses the collectability of the equipment installment plan receivables based on historical payment experience, account aging and other qualitative factors and provides an allowance for estimated losses. The credit profiles of TDS customers on equipment installment plans are similar to those of TDS customers with traditional subsidized plans. Customers with a higher risk credit profile are required to make a deposit for equipment purchased through an installment contract .

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2016
Disclosure Text Block
Earnings per Share	Note 4 Earnings Per Share Basic earnings per share available to TDS common shareholders is computed by dividing Net income available to TDS common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share available to TDS common shareholders is computed by dividing Net income available to TDS common shareholders by the weighted average number of common shares outstanding during the period adjusted to include the effects of potentially dilutive securities. Potentially dilutive securities primarily include incremental shares issuable upon exercise of outstanding stock options and the vesting of restricte d stock units. The amounts used in computing earnings per common share and the effects of potentially dilutive securities on the weighted average number of common shares were as follows: Three Months Ended March 31, 2016 2015 (Dollars and shares in millions, except per share amounts) Basic earnings per share available to TDS common shareholders: Net income available to TDS common shareholders used in basic earnings per share $ 8 $ 146 Adjustments to compute diluted earnings: Noncontrolling interest adjustment – (1) Net income available to TDS common shareholders used in diluted earnings per share $ 8 $ 145 Weighted average number of shares used in basic earnings per share: Common Shares 102 101 Series A Common Shares 7 7 Total 109 108 Effects of dilutive securities 1 1 1 Weighted average number of shares used in diluted earnings per share 110 109 Basic earnings per share available to TDS common shareholders $ 0.07 $ 1.35 Diluted earnings per share available to TDS common shareholders $ 0.07 $ 1.33 1 Includes effects of stock options, restricted stock units and preferred shares. 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 per share available to TD S common shareholders because their effects were antidilutive. The number of such Common Shares excluded was 7 million shares and 6 million shares for the three months ended March 31, 2016 and 2015, re spectively.

Acquisitions Divestures And Exc

Acquisitions Divestures And Exchanges	3 Months Ended
	Mar. 31, 2016
Disclosure Text Block
Acquisitions, Divestures and Exchanges	Note 5 Acquisitions, Divestitures and Exchanges In the first quarter of 2016, U.S. Cellular entered into multiple agreements to transfer FCC licenses in non-operating markets and receive FCC licenses in operating markets. The agreements were with third parties and provide for the transfer of certain AWS and PCS spectrum licenses and approximately $ 29 million , net , in cash to U.S. Cellular, in exchange for U.S. Cellular transferring certain AWS, PCS and 700 MHz spectrum licenses to the third parties. The transactions are subject to regulatory approval and other customary closing conditions, and are exp ected to close in 2016. Upon closing of each transaction, U.S. Cellular expects to recognize a gain. As a result of these exchange agreements, licenses with a carrying value of $ 26 million have been classified as “Assets held f or sale” in the Consolidated Balance Sheet as of March 31, 2016. In 2015 and 2016, U.S. Cellular entered into multiple spectrum license purchase agreements that have not yet closed. The aggregate purchase price for these spectrum licenses is $ 54 million . These agreements are for spectrum licenses located in U.S. Cellular’s existing operating markets and are expected to close in 2016 .

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2016
Disclosure Text Block
Intangible Assets	Note 6 Intangible Assets Changes in Licenses at TDS for the three months ended March 31, 2016 are presented below. There were no significant changes to Franchise rights, Goodwill or Other intangible assets during the three months ended March 31, 2016 . Licenses (Dollars in millions) Balance December 31, 2015¹ $ 1,844 Transferred to Assets held for sale (26) Balance March 31, 2016¹ $ 1,818 1 Amounts include payments totaling $338 million made by Advantage Spectrum L.P. to the FCC for licenses in which it was the provisional winning bidder in Auction 97. These licenses have not yet been granted by the FCC. See Note 8 — Variable Interest Entities for additional information.

Investments In Unconsolidated E

Investments In Unconsolidated Entities	3 Months Ended
	Mar. 31, 2016
Disclosure Text Block
Investments in Unconsolidated Entities	Note 7 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 b ased in part on information provided by third parties, summarizes the combined results of operations of TDS’ equity method investments. Three Months Ended March 31, 2016 2015 (Dollars in millions) Revenues $ 1,688 $ 1,735 Operating expenses 1,236 1,291 Operating income 452 444 Other income (expense), net (4) 4 Net income $ 448 $ 448

Variable Interest Entities

Variable Interest Entities	3 Months Ended
	Mar. 31, 2016
Disclosure Text Block
Variable Interest Entities	Note 8 Variable Interest Entities In February 2015, the FASB issued Accounting Standards Update 2015-02, Consolidation: Amendments to the Consolidation Analysis (“ASU 2015-02”). ASU 2015-02 changes consolidation accounting including revising certain criteria for identifying variable interest entities. TDS adopted the provisions of this standard as of January 1, 2016. As a result, certain consolidated subsidiar ies and unconsolidated entities that were not defined as variable interest entities under previous accounting guidance are defined as variable interest entities under the provisions of ASU 2015-02. TDS’ modified retrospective adoption of ASU 2015-02 did n ot change the group of entities which TDS is required to consolidate in its financial statements. Accordingly, the adoption of ASU 2015-02 did not impact its financial position or results of operations. Consolidated VIEs TDS consolidates variable interest entities (“VIEs”) in which it has a controlling financial interest as defined by GAAP and is therefore deemed the primary beneficiary. A controlling financial interest will have both of the following characteristics: (a) the power to direct the VIE activ ities that most significantly impact economic performance and (b) the obligation to absorb the VIE losses and right to receive benefits that are significant to the VIE. TDS reviews these criteria initially at the time it enters into agreements and subsequ ently when events warranting reconsideration occur. These VIEs have risks similar to those described in the “Risk Factors” in TDS’ Form 10-K for the year ended December 31, 2015 . The following VIEs 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: Advantage Spectrum L.P. (“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. These particular VIEs are collectively referred to as desi gnated entities. Historically and as of March 31, 2016, TDS consolidated these VIEs. The power to direct the activities that most significantly impact the economic performance of these VIEs is shared. Specifically, the general partner of these VIEs has the exclusive right to manage, operate and control the limited partnerships and make all decisions to carry on the business of the partnerships. The general partner of each partnership needs the consent of the limited partner, a n indirect 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 these VIEs is shared, TDS has the most significant level of exposure to the variability associated with the economic performance of the VIEs, indicating that TDS is the primary beneficiary of the VIEs. Therefore, in accordance with GAAP, these VIEs are consolidated. In March 2015, King Street Wireless made a $ 60 million distribution to its owners. Of this distribution, $ 6 million was provided to King Street Wireless, Inc. and $ 54 million was provided to U.S. Cellular. FCC Auction 97 ended in Januar y 2015. TDS participated in Auction 97 indirectly through its interest in Advantage Spectrum. A n indirect subsidiary of TDS is a limited partner in Advantage Spectrum. Advantage Spectrum applied as a designated entity, and expects to receive 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 million, after its expected designated entity discount of 25 %. This amount is classified as Licenses in TDS’ Consolidated Balance Sheet. Advantage Spectrum’s b id amount, less the initial deposit of $ 60 million paid in 2014, plus certain other charges totaling $ 2 million, was paid to the FCC in March 2015. As of March 31, 2016 and as of the filing date of this Form 10-Q, these licenses have not yet been granted by and are still pending before the FCC. The remaining VIEs are comprised of limited partnerships that provide wireless service. ASU 2015-02 modified the man ner in which limited partnerships and similar legal entities are evaluated under the variable interest model. A limited partnership is a variable interest entity unless the limited partners hold substantive participating rights or kick-out rights over the general partners. For certain limited partnerships, U.S. Cellular is the general partner and manages the operations. In these partnerships, the limited partners do not have substantive kick-out or participating rights and, further, such limited partners do not have the authority to remove the general partner. Therefore, beginning January 1, 2016, these limited partnerships are also recognized as VIEs and are consolidated under the variable interest model. Prior to the adoption of ASU 2015-02, these lim ited partnerships were consolidated under the voting interest model. The following table presents the classification and balances of the consolidated VIEs’ assets and liabilities in TDS’ Consolidated Balance Sheet. March 31, December 31, 2016¹ 2015¹ (Dollars in millions) Assets Cash and cash equivalents $ 2 $ 1 Accounts receivable 35 – Other current assets 6 – Licenses 2 649 649 Property, plant and equipment, net 103 8 Other assets and deferred charges 9 – Total assets $ 804 $ 658 Liabilities Current liabilities $ 22 $ – Deferred liabilities and credits 11 1 Total liabilities $ 33 $ 1 1 ASU 2015-02 was adopted on a modified retrospective basis and, accordingly, prior year amounts have not been revised to reflect the change in guidance. 2 Includes payments totaling $338 million made by Advantage Spectrum to the FCC as described above. Unconsolidated VIEs TDS manages the operations of and holds a variable interest in certain other limited partnerships, but is not the primary beneficiary of these entities and, therefore, does not consolidate them under the variable interest model outlined in ASU 2015-02. TDS’ total investment in these uncon solidated entities was $ 5 million at March 31, 2016 and December 31, 2015, and is included in Investments in unconsolidated entities in TDS’ Consolidated Balance Sheet. The maximum exposure from unconsolidated VIEs is limited to the investment held by TDS in those entities. Other Related Matters TDS made contributions, loans and/or advances to its VIEs totaling $ 13 million and $ 281 million during the three months ended March 31, 2016 and March 31, 2015 , respectively. TDS may agree to make additional capital contributions and/or advances to these or ot her VIEs and/or to their general partners to provide additional funding for operations or 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 agree ment 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.

Noncontrolling Interests

Noncontrolling Interests	3 Months Ended
	Mar. 31, 2016
Disclosure Text Block
Noncontrolling Interests	Note 9 Noncontrolling Interests The following schedule discloses the effects of Net income attributable to TDS shareholders and changes in TDS’ ownership interest in U.S. Cellular on TDS’ equity: Three Months Ended March 31, 2016 2015 (Dollars in millions) Net income attributable to TDS shareholders $ 8 $ 146 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 (2) – Change in TDS' Capital in excess of par value from U.S. Cellular's repurchases of U.S. Cellular shares – – Purchase of ownership in subsidiaries from noncontrolling interests – – Net transfers (to) from noncontrolling interests (2) – Change from net income attributable to TDS and transfers (to) from noncontrolling interests $ 6 $ 146

Business Segment Information

Business Segment Information	3 Months Ended
	Mar. 31, 2016
Disclosure Text Block
Business Segment Information	Note 10 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 an d 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-alo ne basis. Financial data for TDS’ reportable segments for the three month period ended, or as of March 31, 2016 and 2015 , is as fo llows. See Note 1 — Basis of Presentation for additional information. TDS Telecom Three Months Ended or as of March 31, 2016 U.S. Cellular Wireline Cable HMS TDS Telecom Eliminations TDS Telecom Total Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 760 $ 173 $ 45 $ 29 $ (1) $ 246 $ (6) $ 1,000 Equipment and product sales 198 – – 35 – 35 10 243 Total operating revenues 958 173 45 64 (1) 281 4 1,243 Cost of services (excluding Depreciation, amortization and accretion reported below) 184 62 22 21 (1) 104 – 288 Cost of equipment and products 256 1 – 29 – 30 5 291 Selling, general and administrative 361 48 12 11 – 71 (1) 431 Depreciation, amortization and accretion 153 42 9 7 – 58 1 212 (Gain) loss on asset disposals, net 5 – 1 – – 1 – 6 Operating income (loss) (1) 20 1 (4) – 17 (1) 15 Equity in earnings of unconsolidated entities 35 – – – – – – 35 Interest and dividend income 13 1 – – – 1 – 14 Interest expense (28) 1 – (1) – – (13) (41) Other, net 1 – (1) – – (1) – – Income (loss) before income taxes 20 22 – (5) – 17 (14) 23 Income tax expense (benefit) 1 11 7 (5) 13 Net income (loss) 9 10 (9) 10 Add back: Depreciation, amortization and accretion 153 42 9 7 – 58 1 212 (Gain) loss on asset disposals, net 5 – 1 – – 1 – 6 Interest expense 28 (1) – 1 – – 13 41 Income tax expense (benefit) 1 11 7 (5) 13 Adjusted EBITDA 2 $ 206 $ 63 $ 10 $ 3 $ – $ 76 $ – $ 282 Investments in unconsolidated entities $ 384 $ 4 $ – $ – $ – $ 4 $ 35 $ 423 Total assets $ 7,057 $ 1,291 $ 581 $ 270 $ – $ 2,142 $ 184 $ 9,383 Capital expenditures $ 79 $ 27 $ 13 $ 2 $ – $ 42 $ 4 $ 125 TDS Telecom Three Months Ended or as of March 31, 2015 U.S. Cellular Wireline Cable HMS TDS Telecom Eliminations TDS Telecom Total Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 828 $ 176 $ 44 $ 28 $ (1) $ 247 $ (2) $ 1,073 Equipment and product sales 137 – – 33 – 33 9 179 Total operating revenues 965 176 44 61 (1) 280 7 1,252 Cost of services (excluding Depreciation, amortization and accretion reported below) 191 62 20 20 – 102 1 294 Cost of equipment and products 238 1 – 27 – 28 6 272 Selling, general and administrative 369 46 13 13 (1) 71 (2) 438 Depreciation, amortization and accretion 147 42 9 6 – 57 3 207 (Gain) loss on asset disposals, net 4 – 1 – – 1 – 5 (Gain) loss on sale of business and other exit costs, net (111) – – – – – (13) (124) (Gain) loss on license sales and exchanges, net (123) – – – – – – (123) Operating income (loss) 250 25 1 (5) – 21 12 283 Equity in earnings of unconsolidated entities 34 – – – – – 1 35 Interest and dividend income 8 – – – – – – 8 Interest expense (20) 1 – (1) – – (14) (34) Other, net – 1 – – – 1 (1) – Income (loss) before income taxes 272 27 1 (6) – 22 (2) 292 Income tax expense (benefit) 1 107 9 – 116 Net income (loss) 165 13 (2) 176 Add back: Depreciation, amortization and accretion 147 42 9 6 – 57 3 207 (Gain) loss on asset disposals, net 4 – 1 – – 1 – 5 (Gain) loss on sale of business and other exit costs, net (111) – – – – – (13) (124) (Gain) loss on license sales and exchanges, net (123) – – – – – – (123) Interest expense 20 (1) – 1 – – 14 34 Income tax expense (benefit) 1 107 – – – – 9 – 116 Adjusted EBITDA 2 $ 209 $ 68 $ 11 $ 1 $ – $ 80 $ 2 $ 291 Investments in unconsolidated entities $ 305 $ 4 $ – $ – $ – $ 4 $ 34 $ 343 Total assets $ 6,606 $ 1,366 $ 566 $ 275 $ – $ 2,207 $ 183 $ 8,996 Capital expenditures $ 66 $ 20 $ 12 $ 5 $ – $ 37 $ 2 $ 105

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures
Fair value measurements	TDS has applied the provisions of fair value accounting for purposes of computing the fair value of financial instruments for disclosure purposes as displayed below. Level within the Fair Value Hierarchy March 31, 2016 December 31, 2015 Book Value Fair Value Book Value Fair Value (Dollars in millions) Cash and cash equivalents 1 $ 1,054 $ 1,054 $ 985 $ 985 Long-term debt Retail 2 1,753 1,778 1,753 1,766 Institutional 2 533 485 533 501 Other 2 213 212 216 215

Equipment Installment Plans (Ta

Equipment Installment Plans (Table)	3 Months Ended
	Mar. 31, 2016
Equipment Installment Plans
Equipment installment plans	The following table summarizes unbilled equipment installment plan receivables as of March 31, 2016 and December 31, 2015 . Such amounts are included in the Consolidated Balance Sheet as Accounts receivable – customers and agents and Other assets and deferred charges, where applicable. March 31, 2016 December 31, 2015 (Dollars in millions) Short-term portion of unbilled equipment installment plan receivables, gross $ 300 $ 279 Short-term portion of unbilled deferred interest (23) (21) Short-term portion of unbilled allowance for credit losses (16) (14) Short-term portion of unbilled equipment installment plan receivables, net $ 261 $ 244 Long-term portion of unbilled equipment installment plan receivables, gross $ 91 $ 76 Long-term portion of unbilled deferred interest (3) (2) Long-term portion of unbilled allowance for credit losses (7) (6) Long-term portion of unbilled equipment installment plan receivables, net $ 81 $ 68

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share
Earnings per share	The amounts used in computing earnings per common share and the effects of potentially dilutive securities on the weighted average number of common shares were as follows: Three Months Ended March 31, 2016 2015 (Dollars and shares in millions, except per share amounts) Basic earnings per share available to TDS common shareholders: Net income available to TDS common shareholders used in basic earnings per share $ 8 $ 146 Adjustments to compute diluted earnings: Noncontrolling interest adjustment – (1) Net income available to TDS common shareholders used in diluted earnings per share $ 8 $ 145 Weighted average number of shares used in basic earnings per share: Common Shares 102 101 Series A Common Shares 7 7 Total 109 108 Effects of dilutive securities 1 1 1 Weighted average number of shares used in diluted earnings per share 110 109 Basic earnings per share available to TDS common shareholders $ 0.07 $ 1.35 Diluted earnings per share available to TDS common shareholders $ 0.07 $ 1.33 1 Includes effects of stock options, restricted stock units and preferred shares.

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2016
Licenses
Licenses	Changes in Licenses at TDS for the three months ended March 31, 2016 are presented below. There were no significant changes to Franchise rights, Goodwill or Other intangible assets during the three months ended March 31, 2016 . Licenses (Dollars in millions) Balance December 31, 2015¹ $ 1,844 Transferred to Assets held for sale (26) Balance March 31, 2016¹ $ 1,818 1 Amounts include payments totaling $338 million made by Advantage Spectrum L.P. to the FCC for licenses in which it was the provisional winning bidder in Auction 97. These licenses have not yet been granted by the FCC. See Note 8 — Variable Interest Entities for additional information.

Investment in Unconsolidated En

Investment in Unconsolidated Entities (Tables)	3 Months Ended
	Mar. 31, 2016
Equity Method Investment, Summarized Financial Information
Equity method investments, summarized results of operations	The following table, which is b ased in part on information provided by third parties, summarizes the combined results of operations of TDS’ equity method investments. Three Months Ended March 31, 2016 2015 (Dollars in millions) Revenues $ 1,688 $ 1,735 Operating expenses 1,236 1,291 Operating income 452 444 Other income (expense), net (4) 4 Net income $ 448 $ 448

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	3 Months Ended
	Mar. 31, 2016
Variable Interest Entities VIEs
Consolidated VIE assets and liabilities	The following table presents the classification and balances of the consolidated VIEs’ assets and liabilities in TDS’ Consolidated Balance Sheet. March 31, December 31, 2016¹ 2015¹ (Dollars in millions) Assets Cash and cash equivalents $ 2 $ 1 Accounts receivable 35 – Other current assets 6 – Licenses 2 649 649 Property, plant and equipment, net 103 8 Other assets and deferred charges 9 – Total assets $ 804 $ 658 Liabilities Current liabilities $ 22 $ – Deferred liabilities and credits 11 1 Total liabilities $ 33 $ 1 1 ASU 2015-02 was adopted on a modified retrospective basis and, accordingly, prior year amounts have not been revised to reflect the change in guidance. 2 Includes payments totaling $338 million made by Advantage Spectrum to the FCC as described above.

Noncontrolling Interests (Table

Noncontrolling Interests (Tables)	3 Months Ended
	Mar. 31, 2016
Noncontrolling interests
Noncontrolling interests	The following schedule discloses the effects of Net income attributable to TDS shareholders and changes in TDS’ ownership interest in U.S. Cellular on TDS’ equity: Three Months Ended March 31, 2016 2015 (Dollars in millions) Net income attributable to TDS shareholders $ 8 $ 146 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 (2) – Change in TDS' Capital in excess of par value from U.S. Cellular's repurchases of U.S. Cellular shares – – Purchase of ownership in subsidiaries from noncontrolling interests – – Net transfers (to) from noncontrolling interests (2) – Change from net income attributable to TDS and transfers (to) from noncontrolling interests $ 6 $ 146

Business Segment (Tables)

Business Segment (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Business segment information	Financial data for TDS’ reportable segments for the three month period ended, or as of March 31, 2016 and 2015 , is as fo llows. See Note 1 — Basis of Presentation for additional information. TDS Telecom Three Months Ended or as of March 31, 2016 U.S. Cellular Wireline Cable HMS TDS Telecom Eliminations TDS Telecom Total Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 760 $ 173 $ 45 $ 29 $ (1) $ 246 $ (6) $ 1,000 Equipment and product sales 198 – – 35 – 35 10 243 Total operating revenues 958 173 45 64 (1) 281 4 1,243 Cost of services (excluding Depreciation, amortization and accretion reported below) 184 62 22 21 (1) 104 – 288 Cost of equipment and products 256 1 – 29 – 30 5 291 Selling, general and administrative 361 48 12 11 – 71 (1) 431 Depreciation, amortization and accretion 153 42 9 7 – 58 1 212 (Gain) loss on asset disposals, net 5 – 1 – – 1 – 6 Operating income (loss) (1) 20 1 (4) – 17 (1) 15 Equity in earnings of unconsolidated entities 35 – – – – – – 35 Interest and dividend income 13 1 – – – 1 – 14 Interest expense (28) 1 – (1) – – (13) (41) Other, net 1 – (1) – – (1) – – Income (loss) before income taxes 20 22 – (5) – 17 (14) 23 Income tax expense (benefit) 1 11 7 (5) 13 Net income (loss) 9 10 (9) 10 Add back: Depreciation, amortization and accretion 153 42 9 7 – 58 1 212 (Gain) loss on asset disposals, net 5 – 1 – – 1 – 6 Interest expense 28 (1) – 1 – – 13 41 Income tax expense (benefit) 1 11 7 (5) 13 Adjusted EBITDA 2 $ 206 $ 63 $ 10 $ 3 $ – $ 76 $ – $ 282 Investments in unconsolidated entities $ 384 $ 4 $ – $ – $ – $ 4 $ 35 $ 423 Total assets $ 7,057 $ 1,291 $ 581 $ 270 $ – $ 2,142 $ 184 $ 9,383 Capital expenditures $ 79 $ 27 $ 13 $ 2 $ – $ 42 $ 4 $ 125 TDS Telecom Three Months Ended or as of March 31, 2015 U.S. Cellular Wireline Cable HMS TDS Telecom Eliminations TDS Telecom Total Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 828 $ 176 $ 44 $ 28 $ (1) $ 247 $ (2) $ 1,073 Equipment and product sales 137 – – 33 – 33 9 179 Total operating revenues 965 176 44 61 (1) 280 7 1,252 Cost of services (excluding Depreciation, amortization and accretion reported below) 191 62 20 20 – 102 1 294 Cost of equipment and products 238 1 – 27 – 28 6 272 Selling, general and administrative 369 46 13 13 (1) 71 (2) 438 Depreciation, amortization and accretion 147 42 9 6 – 57 3 207 (Gain) loss on asset disposals, net 4 – 1 – – 1 – 5 (Gain) loss on sale of business and other exit costs, net (111) – – – – – (13) (124) (Gain) loss on license sales and exchanges, net (123) – – – – – – (123) Operating income (loss) 250 25 1 (5) – 21 12 283 Equity in earnings of unconsolidated entities 34 – – – – – 1 35 Interest and dividend income 8 – – – – – – 8 Interest expense (20) 1 – (1) – – (14) (34) Other, net – 1 – – – 1 (1) – Income (loss) before income taxes 272 27 1 (6) – 22 (2) 292 Income tax expense (benefit) 1 107 9 – 116 Net income (loss) 165 13 (2) 176 Add back: Depreciation, amortization and accretion 147 42 9 6 – 57 3 207 (Gain) loss on asset disposals, net 4 – 1 – – 1 – 5 (Gain) loss on sale of business and other exit costs, net (111) – – – – – (13) (124) (Gain) loss on license sales and exchanges, net (123) – – – – – – (123) Interest expense 20 (1) – 1 – – 14 34 Income tax expense (benefit) 1 107 – – – – 9 – 116 Adjusted EBITDA 2 $ 209 $ 68 $ 11 $ 1 $ – $ 80 $ 2 $ 291 Investments in unconsolidated entities $ 305 $ 4 $ – $ – $ – $ 4 $ 34 $ 343 Total assets $ 6,606 $ 1,366 $ 566 $ 275 $ – $ 2,207 $ 183 $ 8,996 Capital expenditures $ 66 $ 20 $ 12 $ 5 $ – $ 37 $ 2 $ 105 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
	Mar. 31, 2016	Mar. 31, 2015
Basis of Presentation
Business segments, additional information	TDS’ business segments reflected in this Quarterly Report on Form 10-Q for the period ended March 31, 2016 are U.S. Cellular, 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 subsidiary Suttle-Straus, Inc. (“Suttle-Straus”).
Amounts recorded gross in revenues that are billed to customers and remitted to governmental authorities	$ 23	$ 26
U.S. Cellular
Basis of Presentation
TDS ownership of U.S. Cellular	84.00%

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Financial Instruments
Cash and cash equivalents	$ 1,054	$ 985	$ 635	$ 472
Institutional and Other | Minimum
Financial Instruments
Fair value assumption, interest rate	0.00%	0.00%
Institutional and Other | Maximum
Financial Instruments
Fair value assumption, interest rate	7.84%	7.51%
Fair Value | Level 1
Financial Instruments
Cash and cash equivalents	$ 1,054	$ 985
Fair Value | Level 2 | Retail
Financial Instruments
Long-term debt	1,778	1,766
Fair Value | Level 2 | Institutional
Financial Instruments
Long-term debt	485	501
Fair Value | Level 2 | Other
Financial Instruments
Long-term debt	212	215
Book Value
Financial Instruments
Cash and cash equivalents	1,054	985
Book Value | Retail
Financial Instruments
Long-term debt	1,753	1,753
Book Value | Institutional
Financial Instruments
Long-term debt	533	533
Book Value | Other
Financial Instruments
Long-term debt	$ 213	$ 216

Equipment Installment Plans (De

Equipment Installment Plans (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Equipment installment plans
Guarantee liability	$ 77	$ 93
Imputed interest rate	9.90%	9.70%
Short-term
Equipment installment plan receivables
Unbilled equipment installment plan receivables, gross	$ 300	$ 279
Unbilled deferred interest	(23)	(21)
Unbilled allowance for credit losses	(16)	(14)
Unbilled equipment installment plan receivables, net	261	244
Long-term
Equipment installment plan receivables
Unbilled equipment installment plan receivables, gross	91	76
Unbilled deferred interest	(3)	(2)
Unbilled allowance for credit losses	(7)	(6)
Unbilled equipment installment plan receivables, net	$ 81	$ 68

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Earnings per share
Net income available to TDS common shareholders used in basic earnings per share		$ 8	$ 146
Noncontrolling interest adjustment			(1)
Net income available to TDS common shareholders used in diluted earnings per share		$ 8	$ 145
Weighted average number of shares used in basic earnings per share		109	108
Effects of dilutive securities	[1]	1	1
Weighted average number of shares used in diluted earnings per share		110	109
Basic earnings per share available to TDS common shareholders		$ 0.07	$ 1.35
Diluted earnings per share available to TDS common shareholders		$ 0.07	$ 1.33
Earnings per share, Other disclosures
Antidilutive securities		7	6
Common Shares
Earnings per share
Weighted average number of shares used in basic earnings per share		102	101
Series A Common Shares
Earnings per share
Weighted average number of shares used in basic earnings per share		7	7
[1]	Includes effects of stock options, restricted stock units and preferred shares.

Acquisitions, Divestitures and

Acquisitions, Divestitures and Exchanges, acquisitions (Details) $ in Millions	Mar. 31, 2016USD ($)
U.S. Cellular | License Acquisitions | Aggregate license acquisitions
Acquisitions, divestitures and exchanges
License acquisition agreement amount	$ 54

Acquisitions, Divestitures an31

Acquisitions, Divestitures and Exchanges, exchanges (Details) $ in Millions	Mar. 31, 2016USD ($)
Exchanges
Assets held for sale	$ 26
U.S. Cellular | Aggregate license exchanges
Exchanges
Assets held for sale	26
Net cash to be received	$ 29

Intangible Assets (Details)

Intangible Assets (Details) $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)
Licenses
Balance, beginning of period	$ 1,844	[1]
Transferred to Assets held for sale	26
Balance, end of period	1,818	[1]
Total winning bid	$ 338
[1]	Amounts include payments totaling $338 million made by Advantage Spectrum L.P. to the FCC for licenses in which it was the provisional winning bidder in Auction 97. These licenses have not yet been granted by the FCC. See Note 8 — Variable Interest Entities for additional information.

Investment in Unconsolidated 33

Investment in Unconsolidated Entities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Equity method investments, combined income statements
Revenues	$ 1,688	$ 1,735
Operating expenses	1,236	1,291
Operating income	452	444
Other income (expense), net	(4)	4
Net income	$ 448	$ 448

Variable Interest Entities (Det

Variable Interest Entities (Details) - USD ($) $ in Millions		1 Months Ended	3 Months Ended		12 Months Ended
		Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2014	Dec. 31, 2015
Assets
Cash and cash equivalents		$ 635	$ 1,054	$ 635	$ 472	$ 985
Accounts receivable			700			705
Other current assets			32			30
Licenses			1,818			1,844
Property, plant and equipment, net			3,679			3,764
Other assets and deferred charges			211			197
Liabilities
Current liabilities			890			944
Variable Interest Entities, Other Disclosures
Total winning bid			338
Investments in unconsolidated entities			423			402
U.S. Cellular
Variable Interest Entities, Other Disclosures
Investments in unconsolidated entities		$ 305	384	305
Consolidated Variable Interest Entities
Assets
Cash and cash equivalents	[1]		2			1
Accounts receivable	[1]		35
Other current assets	[1]		6
Licenses	[1],[2]		649			649
Property, plant and equipment, net	[1]		103			8
Other assets and deferred charges	[1]		9
Total assets	[1]		804			658
Liabilities
Current liabilities	[1]		22
Deferred liabilities and credits	[1]		11			1
Total liabilities	[1]		33			1
Unconsolidated Variable Interest Entities
Variable Interest Entities, Other Disclosures
Investments in unconsolidated entities			5			$ 5
Aggregated Variable Interest Entities
Variable Interest Entities, Other Disclosures
Capital contributions, loans or advances			$ 13	$ 281
Advantage Spectrum L.P. | U.S. Cellular
Variable Interest Entities, Other Disclosures
Federal Communications Commission deposit					$ 60
Licenses won		124		124
Total winning bid		$ 338		$ 338
Designated entity auction discount		25.00%		25.00%
Other auction charges		$ 2		$ 2
King Street Wireless L.P.
Variable Interest Entities, Other Disclosures
Cash distributions paid		60
King Street Wireless, L.P. distribution paid to U.S. Cellular		54
King Street Wireless, L.P. distribution paid to King Street Wireless, Inc.		$ 6
[1]	ASU 2015-02 was adopted on a modified retrospective basis and, accordingly, prior year amounts have not been revised to reflect the change in guidance.
[2]	Includes payments totaling $338 million made by Advantage Spectrum to the FCC as described above.

Noncontrolling Interests (Detai

Noncontrolling Interests (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Noncontrolling interests
Net income attributable to TDS shareholders	$ 8	$ 146
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	(2)
Net transfers (to) from noncontrolling interests	(2)
Change from net income attributable to TDS and transfers (to) from noncontrolling interests	$ 6	$ 146

Business Segment (Details)

Business Segment (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Business Segment Information
Service		$ 1,000	$ 1,073
Equipment and product sales		243	179
Total operating revenues		1,243	1,252
Cost of services (excluding Depreciation, amortization and accretion reported below)		288	294
Cost of equipment and products		291	272
Selling, general and administrative		431	438
Depreciation, amortization and accretion		212	207
(Gain) loss on asset disposals, net		6	5
(Gain) loss on sale of business and other exit costs, net			(124)
(Gain) loss on license sales and exchanges, net			(123)
Operating income (loss)		15	283
Equity in earnings of unconsolidated entities		35	35
Interest and dividend income		14	8
Interest expense		(41)	(34)
Income before income taxes		23	292
Income tax expense (benefit)		13	116
Net income		10	176
Depreciation, amortization and accretion		212	207
(Gain) loss on asset disposals, net		6	5
(Gain) loss on sale of business and other exit costs, net			(124)
(Gain) loss on license sales and exchanges, net			(123)
Interest expense		41	34
Income tax expense		13	116
Adjusted EBITDA	[1]	282	291
Investments in unconsolidated entities		423		$ 402
Total assets	[2]	9,383		$ 9,422
Capital expenditures		125	105
U.S. Cellular
Business Segment Information
Service		760	828
Equipment and product sales		198	137
Total operating revenues		958	965
Cost of services (excluding Depreciation, amortization and accretion reported below)		184	191
Cost of equipment and products		256	238
Selling, general and administrative		361	369
Depreciation, amortization and accretion		153	147
(Gain) loss on asset disposals, net		5	4
(Gain) loss on sale of business and other exit costs, net			(111)
(Gain) loss on license sales and exchanges, net			(123)
Operating income (loss)		(1)	250
Equity in earnings of unconsolidated entities		35	34
Interest and dividend income		13	8
Interest expense		(28)	(20)
Other, net		1
Income before income taxes		20	272
Income tax expense (benefit)	[3]	11	107
Net income		9	165
Depreciation, amortization and accretion		153	147
(Gain) loss on asset disposals, net		5	4
(Gain) loss on sale of business and other exit costs, net			(111)
(Gain) loss on license sales and exchanges, net			(123)
Interest expense		28	20
Income tax expense	[3]	11	107
Adjusted EBITDA	[1]	206	209
Investments in unconsolidated entities		384	305
Total assets		7,057	6,606
Capital expenditures		79	66
TDS Telecom Wireline
Business Segment Information
Service		173	176
Total operating revenues		173	176
Cost of services (excluding Depreciation, amortization and accretion reported below)		62	62
Cost of equipment and products		1	1
Selling, general and administrative		48	46
Depreciation, amortization and accretion		42	42
Operating income (loss)		20	25
Interest and dividend income		1
Interest expense		1	1
Other, net			1
Income before income taxes		22	27
Depreciation, amortization and accretion		42	42
Interest expense		(1)	(1)
Adjusted EBITDA	[1]	63	68
Investments in unconsolidated entities		4	4
Total assets		1,291	1,366
Capital expenditures		27	20
TDS Telecom Cable
Business Segment Information
Service		45	44
Total operating revenues		45	44
Cost of services (excluding Depreciation, amortization and accretion reported below)		22	20
Selling, general and administrative		12	13
Depreciation, amortization and accretion		9	9
(Gain) loss on asset disposals, net		1	1
Operating income (loss)		1	1
Other, net		(1)
Income before income taxes			1
Depreciation, amortization and accretion		9	9
(Gain) loss on asset disposals, net		1	1
Adjusted EBITDA	[1]	10	11
Total assets		581	566
Capital expenditures		13	12
TDS Telecom HMS
Business Segment Information
Service		29	28
Equipment and product sales		35	33
Total operating revenues		64	61
Cost of services (excluding Depreciation, amortization and accretion reported below)		21	20
Cost of equipment and products		29	27
Selling, general and administrative		11	13
Depreciation, amortization and accretion		7	6
Operating income (loss)		(4)	(5)
Interest expense		(1)	(1)
Income before income taxes		(5)	(6)
Depreciation, amortization and accretion		7	6
Interest expense		1	1
Adjusted EBITDA	[1]	3	1
Total assets		270	275
Capital expenditures		2	5
TDS Telecom Eliminations
Business Segment Information
Service		(1)	(1)
Total operating revenues		(1)	(1)
Cost of services (excluding Depreciation, amortization and accretion reported below)		(1)
Selling, general and administrative			(1)
TDS Telecom
Business Segment Information
Service		246	247
Equipment and product sales		35	33
Total operating revenues		281	280
Cost of services (excluding Depreciation, amortization and accretion reported below)		104	102
Cost of equipment and products		30	28
Selling, general and administrative		71	71
Depreciation, amortization and accretion		58	57
(Gain) loss on asset disposals, net		1	1
Operating income (loss)		17	21
Interest and dividend income		1
Other, net		(1)	1
Income before income taxes		17	22
Income tax expense (benefit)	[3]	7	9
Net income		10	13
Depreciation, amortization and accretion		58	57
(Gain) loss on asset disposals, net		1	1
Income tax expense	[3]	7	9
Adjusted EBITDA	[1]	76	80
Investments in unconsolidated entities		4	4
Total assets		2,142	2,207
Capital expenditures		42	37
Corporate, Eliminations and Other
Business Segment Information
Service		(6)	(2)
Equipment and product sales		10	9
Total operating revenues		4	7
Cost of services (excluding Depreciation, amortization and accretion reported below)			1
Cost of equipment and products		5	6
Selling, general and administrative		(1)	(2)
Depreciation, amortization and accretion		1	3
(Gain) loss on sale of business and other exit costs, net			(13)
Operating income (loss)		(1)	12
Equity in earnings of unconsolidated entities			1
Interest expense		(13)	(14)
Other, net			(1)
Income before income taxes		(14)	(2)
Income tax expense (benefit)	[3]	(5)
Net income		(9)	(2)
Depreciation, amortization and accretion		1	3
(Gain) loss on sale of business and other exit costs, net			(13)
Interest expense		13	14
Income tax expense	[3]	(5)
Adjusted EBITDA	[1]		2
Investments in unconsolidated entities		35	34
Total assets		184	183
Capital expenditures		$ 4	$ 2
[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]	The consolidated total assets as of March 31, 2016 and December 31, 2015 include certain assets held by consolidated VIEs of $804 million and $658 million, respectively, which are not available to be used to settle the obligations of TDS. The consolidated total liabilities as of March 31, 2016 and December 31, 2015 include certain liabilities of consolidated VIEs of $16 million and $1 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of TDS. See Note 8 — Variable Interest Entities for additional information.
[3]	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".