Telephone and Data Systems (TDS) 10-Q 4 Nov 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information	9 Months Ended
	Sep. 30, 2016shares
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, 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	Q3
Trading Symbol	TDS
Common Shares
Entity Common Stock, Shares Outstanding	102,720,328
Series A Common Shares
Entity Common Stock, Shares Outstanding	7,222,450

Consolidated Statement Of Opera

Consolidated Statement Of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Operating revenues
Service	$ 1,013	$ 1,138	$ 3,021	$ 3,282
Equipment and product sales	288	236	805	620
Total operating revenues	1,301	1,374	3,826	3,902
Operating expenses
Cost of services (excluding Depreciation, amortization and accretion reported below)	305	303	891	897
Cost of equipment and products	321	337	921	907
Selling, general and administrative	440	450	1,299	1,324
Depreciation, amortization and accretion	214	211	636	628
(Gain) loss on asset disposals, net	8	5	20	15
(Gain) loss on sale of business and other exit costs, net		(1)	(1)	(130)
(Gain) loss on license sales and exchanges, net	(7)	(24)	(16)	(147)
Total operating expenses	1,281	1,281	3,750	3,494
Operating income	20	93	76	408
Investment and other income (expense)
Equity in earnings of unconsolidated entities	38	40	109	110
Interest and dividend income	15	10	44	28
Interest expense	(42)	(35)	(127)	(103)
Other, net	(1)		1
Total investment and other income	10	15	27	35
Income before income taxes	30	108	103	443
Income tax expense	14	46	45	178
Net income	16	62	58	265
Less: Net income attributable to noncontrolling interests, net of tax	3	11	9	45
Net income attributable to TDS shareholders	13	51	49	220
Net income available to TDS common shareholders	$ 13	$ 51	$ 49	$ 220
Basic weighted average shares outstanding	110	109	110	109
Basic earnings per share available to TDS common shareholders	$ 0.12	$ 0.47	$ 0.44	$ 2.03
Diluted weighted average shares outstanding	111	110	111	110
Diluted earnings per share available to TDS common shareholders	$ 0.11	$ 0.46	$ 0.44	$ 1.99
Dividends per share to TDS shareholders	$ 0.148	$ 0.141	$ 0.444	$ 0.423

Consolidated Statement Of Compr

Consolidated Statement Of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 16	$ 62	$ 58	$ 265
Change related to retirement plan
Change in prior service cost		(8)	(1)	(10)
Change in unrecognized net loss		(1)		(1)
Total gains (losses) recognized in Comprehensive Income before income tax benefit (expense)		(9)	(1)	(11)
Change in deferred income taxes		3	1	4
Change related to retirement plan, net of tax		(6)		(7)
Net change in accumulated other comprehensive income		(6)		(7)
Comprehensive income	16	56	58	258
Less: Net income attributable to noncontrolling interest, net of tax	3	11	9	45
Comprehensive income attributable to TDS shareholders	$ 13	$ 45	$ 49	$ 213

Consolidated Statement Of Cash

Consolidated Statement Of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities
Net income	$ 58	$ 265
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities
Depreciation, amortization and accretion	636	628
Bad debts expense	72	83
Stock-based compensation expense	29	29
Deferred income taxes, net	11	(40)
Equity in earnings of unconsolidated entities	(109)	(110)
Distributions from unconsolidated entities	55	45
(Gain) loss on asset disposals, net	20	15
(Gain) loss on sale of business and other exit costs, net	(1)	(130)
(Gain) loss on license sales and exchanges, net	(16)	(147)
Noncash interest expense	2	2
Other operating activities	(3)	(1)
Changes in assets and liabilities from operations
Accounts receivable	(9)	(94)
Equipment installment plans receivable	(160)	(96)
Inventory	3	90
Accounts payable	47	125
Customer deposits and deferred revenues	(41)	(50)
Accrued taxes	77	212
Accrued interest	7	11
Other assets and liabilities	(40)	(110)
Net cash provided by operating activities	638	727
Cash flows from investing activities
Cash paid for additions to property, plant and equipment	(426)	(558)
Cash paid for acquisitions and licenses	(46)	(287)
Cash received from divestitures and exchanges	20	325
Federal Communications Commission deposit	(143)
Other investing activities	1	6
Net cash used in investing activities	(594)	(514)
Cash flows from financing activities
Issuance of long-term debt	2	225
Repayment of long-term debt	(9)	(1)
TDS Common Shares reissued for benefit plans, net of tax payments	7	11
U.S. Cellular Common Shares reissued for benefit plans, net of tax payments	4	(1)
Repurchase of TDS Common Shares	(3)
Repurchase of U.S. Cellular Common Shares	(2)	(4)
Dividends paid to TDS shareholders	(49)	(46)
Payment of debt issuance costs	(4)	(3)
Distributions to noncontrolling interests	(1)	(6)
Other financing activities	11	5
Net cash provided by (used in) financing activities	(44)	180
Net increase (decrease) in cash and cash equivalents		393
Cash and cash equivalents
Beginning of period	985	472
End of period	$ 985	$ 865

Consolidated Balance Sheet

Consolidated Balance Sheet - USD ($) $ in Millions		Sep. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents		$ 985	$ 985
Accounts receivable
Due from customers and agents, less allowances of $54 and $49, respectively		725	705
Other, less allowances of $1 and $1, respectively		99	98
Inventory, net		148	158
Prepaid expenses		113	112
Income taxes receivable		6	70
Other current assets		34	30
Total current assets		2,110	2,158
Assets held for sale		16
Licenses		1,876	1,844
Goodwill		766	766
Franchise rights		244	244
Other intangible assets, net of accumulated amortization of $150 and $144, respectively		36	47
Investments in unconsolidated entities		459	402
Other investments		1
Property, plant and equipment
In service and under construction		11,551	11,520
Less: Accumulated depreciation and amortization		8,002	7,756
Property, plant and equipment, net		3,549	3,764
Other assets and deferred charges		392	197
Total assets	[1]	9,449	9,422
Current liabilities
Current portion of long-term debt		12	14
Accounts payable		366	349
Customer deposits and deferred revenues		242	288
Accrued interest		19	12
Accrued taxes		48	41
Accrued compensation		115	113
Other current liabilities		85	127
Total current liabilities		887	944
Deferred liabilities and credits
Deferred income tax liability, net		910	900
Other deferred liabilities and credits		461	433
Long-term debt, net		2,436	2,440
Commitments and contingencies
Noncontrolling interests with redemption features		1	1
TDS shareholders' equity
Series A Common and Common Shares Authorized 290 shares (25 Series A Common and 265 Common Shares) Issued 133 shares (7 Series A Common and 126 Common Shares) Outstanding 110 shares (7 Series A Common and 103 Common Shares) and 109 shares (7 Series A Common and 102 Common Shares), respectively Par Value ($.01 per share)		1	1
Capital in excess of par value		2,373	2,365
Treasury shares, at cost, 23 and 24 Common Shares, respectively		(703)	(727)
Retained earnings		2,477	2,487
Total TDS shareholders' equity		4,148	4,126
Preferred shares		1	1
Noncontrolling interests		605	577
Total equity		4,754	4,704
Total liabilities and equity	[1]	$ 9,449	$ 9,422
[1]	The consolidated total assets as of September 30, 2016 and December 31, 2015 include assets held by consolidated VIEs of $805 million and $658 million, respectively, which are not available to be used to settle the obligations of TDS. The consolidated total liabilities as of September 30, 2016 and December 31, 2015 include certain liabilities of consolidated VIEs of $15 million and $1 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of TDS. See Note 9 — Variable Interest Entities for additional information.

Consolidated Balance Sheet Pare

Consolidated Balance Sheet Parenthetical - USD ($) shares in Millions, $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Current assets
Customer and agent allowances	$ 54	$ 49
Other allowances	1	1
Other intangible assets
Other intangible assets accumulated amortization	$ 150	$ 144
TDS shareholders' equity
Authorized shares	290	290
Issued shares	133	133
Outstanding shares	110	109
Variable Interest Entities VIEs
Total VIE assets that can be used to settle only the VIEs' obligations	$ 805	$ 658
Total VIE liabilities for which creditors have no recourse	$ 15	$ 1
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	103	102
Par value per share	$ 0.01	$ 0.01
Treasury shares at cost	23	24

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	220					220	220
Net income attributable to noncontrolling interests classified as equity	39								39
Other comprehensive income	(7)				(7)		(7)
TDS Common and Series A Common share dividends	(46)					(46)	(46)
Dividend reinvestment plan	8		2	6			8
Incentive and compensation plans	12		1	11			12
Adjust investment in subsidiaries for repurchases, issuances and other compensation plans	11		2				2		9
Stock-based compensation awards	11		11				11
Ending balance at Sep. 30, 2015	4,703	1	2,353	(731)	$ (1)	2,504	4,126	1	576
Beginning balance at Dec. 31, 2015	4,704	1	2,365	(727)		2,487	4,126	1	577
Net income attributable to TDS shareholders	49					49	49
Net income attributable to noncontrolling interests classified as equity	9								9
TDS Common and Series A Common share dividends	(49)					(49)	(49)
Repurchase of Common shares	(3)			(3)			(3)
Dividend reinvestment plan	7		2	5			7
Incentive and compensation plans	7		(5)	22		(10)	7
Adjust investment in subsidiaries for repurchases, issuances and other compensation plans	21		1				1		20
Stock-based compensation awards	10		10				10
Distributions to noncontrolling interests	(1)								(1)
Ending balance at Sep. 30, 2016	$ 4,754	$ 1	$ 2,373	$ (703)		$ 2,477	$ 4,148	$ 1	$ 605

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2016
Basis of Presentation [Abstract]
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’ 83% -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. 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. Calculated 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 September 30, 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”). 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 insignificant foreign operation. See Note 11 — 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 the fair statement of TDS’ financial position as of September 30, 2016 and December 31, 2015 , its results of operations and comprehensive income for the three and nine months ended September 30, 2016 and 2015 , and its cash flows and changes in equity for the nine months ended September 30, 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”) and has since amended the standard with Accounting Standards Update 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, Accounting Standards Update 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net), Accounting Standards Update 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, and Accounting Standards Update 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients. These standards replace existing revenue recognition rules with a single comprehensive model to use in accounting for revenue arising from contracts with customers. TDS is required to adopt ASU 2014-09, as amended, on January 1, 2018. Early adoption as of January 1, 2017 is permitted; however, TDS does not intend to adopt early. ASU 2014-09, as amended, impacts TDS’ revenue recognition related to the allocation of contract revenues between various services and equipment, and the timing of when those revenues are recognized. In addition, the new requirements require deferral of incremental contract acquisition and fulfillment costs and subsequent expense recognition over the contract period or expected customer life. TDS expects to transition to the new standard under the modified retrospective transition method whereby a cumulative effect adjustment is recognized upon adoption and the guidance is applied prospectively. TDS is currently evaluating the guidance, developing its implementation plan, and evaluating the effects ASU 2014-09, as amended, will have on its financial position and results of operations upon adoption. 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. 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 (“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. The adoption of ASU 2015-11 is not expected to have a significant impact on TDS’ financial position or 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 ASU 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. The adoption of ASU 2016-01 is not expected to have a significant impact on TDS’ financial position or results of operations. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (“ASU 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 permitted. Upon adoption of ASU 2016-02, TDS expects a substantial increase to assets and liabilities on its balance sheet. TDS is 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 recognition standard. TDS is required to adopt ASU 2016-04 on January 1, 2018. Early adoption is permitted. The adoption of ASU 2016-04 is not expected to have a significant impact on TDS’ financial position or results of operations. In March 2016, the FASB issued Accounting Standards Update 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based 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 statement of cash flows. TDS will adopt ASU 2016-09 on January 1, 2017. The adoption of ASU 2016-09 is not expected to have a significant impact on TDS’ financial position, results of operations, or cash flows. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires entities to use a new forward-looking, expected loss model to estimate credit losses. It also requires additional disclosure relating to the credit quality of trade and other receivables, including information relating to management’s estimate of credit allowances. TDS is required to adopt ASU 2016-13 on January 1, 2020. Early adoption as of January 1, 2019 is permitted. TDS is evaluating the effects that adoption of ASU 2016-13 will have on its financial position, results of operations and disclosures. In August 2016, the FASB issued Accounting Standards Update 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 provides guidance on eight targeted cash flow classification issues. TDS is required to adopt ASU 2016-15 on January 1, 2018. TDS is evaluating the effects that adoption of ASU 2016-15 will have on its statement of cash flows. In October 2016, the FASB issued Accounting Standards Update 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”). ASU 2016-16 impacts the accounting for the income tax consequences of intra-entity transfers of assets other than inventory when the transfer occurs between entities in different tax jurisdictions. TDS is required to adopt ASU 2016-16 on January 1, 2018. Early adoption is permitted. The adoption of ASU 2016-16 is not expected to have a significant impact on TDS’ financial position or results of operations. In October 2016, the FASB issued Accounting Standards Update 2016-17, Consolidation: Interests Held through Related Parties That Are under Common Control (“ASU 2016-17”). ASU 2016-17 provides guidance on how a reporting entity that is the single decision maker of a VIE should treat indirect interests in an entity held through related parties that are under common control. TDS is required to adopt ASU 2016-17 on January 1, 2017. Early adoption is permitted. TDS is evaluating the effects that adoption of ASU 2016-17 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 $ 21 million and $ 65 million for the three and nine months ended September 30, 2016 , respectively, and $ 24 million and $ 75 million for the three and nine months ended September 30, 2015 , respectively.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 2 Fair Value Measurements As of September 30, 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 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, 2016 December 31, 2015 Book Value Fair Value Book Value Fair Value (Dollars in millions) Cash and cash equivalents 1 $ 985 $ 985 $ 985 $ 985 Long-term debt Retail 2 1,753 1,841 1,753 1,766 Institutional 2 533 555 533 501 Other 2 211 210 216 215 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 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 6.50% and 0.00% to 7.51% at September 30, 2016 and December 31, 2015 , respectively.

Equipment Installment Plans

Equipment Installment Plans	9 Months Ended
	Sep. 30, 2016
Receivables [Abstract]
Equipment Installment Plans	Note 3 Equipment Installment Plans TDS sells devices to customers, through its owned and agent distribution channels, 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 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, 2016 and December 31, 2015 , the guarantee liability related to these plans was $ 44 million 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 installment plans with a duration of greater than twelve months, TDS imputes interest. TDS records imputed interest as a reduction to the related accounts receivable and it is recognized over the term of the installment agreement. Equipment installment plan receivables had a weighted average effective imputed interest rate of 10.7% and 9.7% as of September 30, 2016 and December 31, 2015 , respectively. The following table summarizes unbilled equipment installment plan receivables as of September 30, 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. September 30, 2016 December 31, 2015 (Dollars in millions) Short-term portion of unbilled equipment installment plan receivables, gross $ 339 $ 279 Short-term portion of unbilled deferred interest (33) (21) Short-term portion of unbilled allowance for credit losses (22) (14) Short-term portion of unbilled equipment installment plan receivables, net $ 284 $ 244 Long-term portion of unbilled equipment installment plan receivables, gross $ 165 $ 76 Long-term portion of unbilled deferred interest (9) (2) Long-term portion of unbilled allowance for credit losses (13) (6) Long-term portion of unbilled equipment installment plan receivables, net $ 143 $ 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 down payment for equipment purchased through an installment contract . TDS recorded out-of-period adjustments during the three and nine months ended September 30, 2016 due to errors related to equipment installment plan transactions occurring in 2015 and 2016 (“2016 EIP adjustments”). For the three months ended September 30, 2016, the 2016 EIP adjustments had the impact of increasing Equipment and product sales revenues by $4 million, decreasing bad debts expense, which is a component of Selling, general and administrative expense, by $2 million and increasing Income before income taxes by $6 million. For the nine months ended September 30, 2016, the 2016 EIP adjustments had the impact of increasing Equipment and product sales revenues by $2 million, decreasing bad debts expense by $2 million and increasing Income before income taxes by $4 million. Additionally, TDS recorded out-of-period adjustments during the nine months ended September 30, 2015 due to errors related to equipment installment plan transactions (“2015 EIP adjustments”) that were attributable to 2014. The 2015 EIP adjustments had the impact of reducing Equipment and product sales revenues and Income before income taxes by $6 million for the nine months ended September 30, 2015. The 2015 EIP adjustments were made in the first six months of 2015. TDS has determined that these adjustments were not material to any of the periods impacted.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
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 the exercise of outstanding stock options and the vesting of restricted 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 Nine Months Ended September 30, September 30, 2016 2015 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 $ 13 $ 51 $ 49 $ 220 Adjustments to compute diluted earnings: Noncontrolling interest adjustment – – (1) (2) Net income available to TDS common shareholders used in diluted earnings per share $ 13 $ 51 $ 48 $ 218 Weighted average number of shares used in basic earnings per share: Common Shares 103 102 103 102 Series A Common Shares 7 7 7 7 Total 110 109 110 109 Effects of dilutive securities 1 1 1 1 Weighted average number of shares used in diluted earnings per share 111 110 111 110 Basic earnings per share available to TDS common shareholders $ 0.12 $ 0.47 $ 0.44 $ 2.03 Diluted earnings per share available to TDS common shareholders $ 0.11 $ 0.46 $ 0.44 $ 1.99 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 TDS common shareholders because their effects were antidilutive. The number of such Common Shares excluded was 4 million shares for both the three and nine months ended September 30, 2016 , and 5 million shares for both the three and nine months ended September 30, 2015 .

Acquisitions Divestures And Exc

Acquisitions Divestures And Exchanges	9 Months Ended
	Sep. 30, 2016
Acquisitions, Divestitures and Exchanges [Abstract]
Acquisitions, Divestures and Exchanges	Note 5 Acquisitions, Divestitures and Exchanges In February 2016, U.S. Cellular entered into an agreement with a third party to exchange certain 700 MHz licenses for certain AWS and PCS licenses and $ 28 million of cash. This license exchange will be accomplished in two closings. The first closing occurred in the second quarter of 2016, at which time U.S. Cellular received $ 13 million of cash and recorded a gain of $ 9 million. The second closing is expected to occur in the fourth quarter of 2016 and U.S. Cellular expects to recognize a gain at that time. As a result of this exchange, the remaining licenses with a carrying value of $ 8 million have been classified as “Assets held for sale” in the Consolidated Balance Sheet as of September 30, 2016 . In February 2016, U.S. Cellular entered into an additional agreement with a third party that provided for the transfer of certain AWS spectrum licenses and $ 2 million in cash to U.S. Cellular, in exchange for U.S. Cellular transferring certain AWS, PCS and 700 MHz licenses with a carrying value of $ 7 million to the third party. This transaction closed in the third quarter of 2016, at which time U.S. Cellular recorded a gain of $ 7 million. In March 2016, U.S. Cellular entered into an additional agreement with a third party to transfer FCC licenses in non-operating markets and receive FCC licenses in operating markets. The agreement provides for the transfer of certain AWS and PCS spectrum licenses to U.S. Cellular in exchange for U.S. Cellular transferring certain PCS spectrum licenses and $ 1 million of cash to the third party. This transaction is subject to regulatory approval and other customary closing conditions, and is expected to close in the fourth quarter of 2016. Upon closing of this transaction, U.S. Cellular expects to recognize a gain. As a result of this additional exchange agreement, licenses with a carrying value of $ 8 million have been classified as “Assets held for sale” in the Consolidated Balance Sheet as of September 30, 2016 . In 2015 and 2016, U.S. Cellular entered into multiple agreements to purchase spectrum licenses located in U.S. Cellular’s existing operating markets. The aggregate purchase price for these spectrum licenses is $ 56 million, of which $ 46 million closed in the second quarter of 2016. The remaining agreements are expected to close in the fourth quarter of 2016. U.S. Cellular is participating in the FCC’s forward auction of 600 MHz spectrum licenses, referred to as Auction 1002, which commenced in August 2016. In the second quarter of 2016, U.S. Cellular made an upfront payment to the FCC of $ 143 million to establish its initial bidding eligibility.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Note 6 Intangible Assets Changes in Licenses at TDS for the nine months ended September 30, 2016 are presented below. There were no significant changes to Franchise rights, Goodwill or Other intangible assets during the nine months ended September 30, 2016 . Licenses (Dollars in millions) Balance December 31, 2015¹ $ 1,844 Acquisitions 46 Transferred to Assets held for sale (16) Exchanges - Licenses received 12 Exchanges - Licenses surrendered (10) Balance September 30, 2016 $ 1,876 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 were granted by the FCC in July 2016. See Note 9 — Variable Interest Entities for additional information.

Investments In Unconsolidated E

Investments In Unconsolidated Entities	9 Months Ended
	Sep. 30, 2016
Investments in Unconsolidated Entities [Abstract]
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 based in part on information provided by third parties, summarizes the combined results of operations of TDS’ equity method investments. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (Dollars in millions) Revenues $ 1,679 $ 1,738 $ 5,008 $ 5,199 Operating expenses 1,254 1,267 3,662 3,840 Operating income 425 471 1,346 1,359 Other income (expense), net (2) (11) (10) (17) Net income $ 423 $ 460 $ 1,336 $ 1,342

Debt

Debt	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Debt	Note 8 Debt Revolving Credit Facilities TDS and U.S. Cellular have revolving credit facilities available for general corporate purposes. In June 2016, TDS entered into a new $400 million revolving credit agreement with certain lenders and other parties and U.S. Cellular entered into a new $300 million revolving credit agreement with certain lenders and other parties. As a result of the new agreements, TDS’ and U.S. Cellular’s revolving credit agreements due to expire in December 2017 were terminated. Amounts under both of the new revolving credit facilities may be borrowed, repaid and reborrowed from time-to-time until maturity in June 2021. As of September 30, 2016 , there were no outstanding borrowings under the revolving credit facilities, except for letters of credit. Interest expense representing commitment fees on the unused portion of the revolving lines of credit was $ 1 million and $ 2 million for the nine months ended September 30, 2016 and September 30, 2015 , respectively. The following table summarizes the terms of such revolving credit facilities as of September 30, 2016 : TDS U.S. Cellular (Dollars in millions) Maximum borrowing capacity $ 400 $ 300 Letters of credit outstanding $ 1 $ 16 Amount borrowed $ – $ – Amount available for use $ 399 $ 284 Illustrative borrowing rate: One-month London Interbank Offered Rate ("LIBOR") plus contractual spread 1 2.28 % 2.28 % Illustrative LIBOR Rate 0.53 % 0.53 % Contractual spread 1.75 % 1.75 % Commitment fees on amount available for use 2 0.30 % 0.30 % Agreement date June 2016 June 2016 Maturity date June 2021 June 2021 1 Borrowings under the revolving credit facility bear interest either at a LIBOR rate or at an alternative Base Rate as defined in the revolving credit agreement, plus an applicable margin, at TDS' or U.S. Cellular’s option. TDS and U.S. Cellular may select a borrowing period of either one, two, three or six months (or other period of twelve months or less if requested by TDS or U.S. Cellular and approved by the lenders). 2 The revolving credit facility has commitment fees based on the unsecured senior debt ratings assigned to TDS and U.S. Cellular by certain ratings agencies. The new revolving credit agreements include the following financial covenants: Consolidated Interest Coverage Ratio may not be less than 3.00 to 1.00 as of the end of any fiscal quarter. Consolidated Leverage Ratio may not be greater than the ratios indicated as of the end of any fiscal quarter for each period specified below: Period Ratios From the agreement date of June 15, 2016 through June 30, 2019 3.25 to 1.00 From July 1, 2019 and thereafter 3.00 to 1.00 Certain TDS and U.S. Cellular wholly-owned subsidiaries have jointly and severally unconditionally guaranteed the payment and performance of the obligations of TDS and U.S. Cellular under the revolving credit agreements pursuant to a guaranty dated June 15, 2016. Other subsidiaries that meet certain criteria will be required to provide a similar guaranty in the future. TDS and U.S. Cellular believe that they were in compliance with all of the financial and other covenants and requirements set forth in their revolving credit facilities as of September 30, 2016 . At September 30, 2016 , TDS had recorded $ 6 million of unamortized debt issuance costs related to the revolving credit facilities which is included in Other assets and deferred charges in the Consolidated Balance Sheet. Included in that amount was $ 4 million related to the new revolving credit facilities. Term Loan In June 2016, U.S. Cellular also amended and restated its senior term loan credit facility. Certain modifications were made to the financial covenants and subsidiary guarantees were added in order to align with the new revolving credit agreements. There were no significant changes to the maturity date or other key terms of the agreement.

Variable Interest Entities

Variable Interest Entities	9 Months Ended
	Sep. 30, 2016
Variable Interest Entities [Abstract]
Variable Interest Entities	Note 9 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 subsidiaries 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 not 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 activities 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 subsequently when events warranting reconsideration occur. These VIEs have risks similar to those described in the “Risk Factors” in TDS’ Form 10-K for the year ended December 31, 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 designated entities. Historically and as of September 30, 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, an 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 January 2015. TDS participated in Auction 97 indirectly through its interest in Advantage Spectrum. An indirect subsidiary of TDS is a limited partner in Advantage Spectrum. Advantage Spectrum applied as a designated entity, and received 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 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 million paid in 2014, plus certain other charges totaling $ 2 million, was paid to the FCC in March 2015. These licenses were granted by the FCC in July 2016. TDS also consolidates other VIEs that are limited partnerships that provide wireless service. ASU 2015-02 modified the manner 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 limited 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. September 30, December 31, 2016¹ 2015¹ (Dollars in millions) Assets Cash and cash equivalents $ 2 $ 1 Accounts receivable 38 – Other current assets 6 – Licenses 2 649 649 Property, plant and equipment, net 96 8 Other assets and deferred charges 14 – Total assets $ 805 $ 658 Liabilities Current liabilities $ 19 $ – Deferred liabilities and credits 11 1 Total liabilities $ 30 $ 1 1 The increase in amounts from December 31, 2015 are primarily due to the adoption of ASU 2015-02 as disclosed above. 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 As disclosed above, payments totaling $338 million were made by Advantage Spectrum to the FCC relating to Auction 97. These licenses were granted and issued as of September 30, 2016. Although the licenses had not yet been granted as of December 31, 2015, the payments to the FCC were classified as Licenses at such date. 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 unconsolidated entities was $ 6 million and $ 5 million at September 30, 2016 and December 31, 2015 , respectively, and is included in Investments in unconsolidated entities in TDS’ Consolidated Balance Sheet. The maximum exposure from unconsolidated VIEs is limited to the investment held by TDS in those entities. Other Related Matters TDS made contributions, loans and/or advances to its VIEs totaling $ 100 million and $ 281 million during the nine months ended September 30, 2016 and September 30, 2015 , respectively. TDS may agree to make additional capital contributions and/or advances to these or other VIEs and/or to their general partners to provide additional funding for operations or the development of 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 determined that these adjustments were not material to the quarterly periods or the annual results for 2015. These out-of-period adjustments had the impact of reducing Net income by $ 3 million for both the three and nine months ended September 30, 2015, and Net income attributable to TDS shareholders by $ 4 million and $ 3 million, for the three and nine months ended September 30, 2015, respectively.

Noncontrolling Interests

Noncontrolling Interests	9 Months Ended
	Sep. 30, 2016
Noncontrolling Interests [Abstract]
Noncontrolling Interests	Note 10 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: Nine Months Ended September 30, 2016 2015 (Dollars in millions) Net income attributable to TDS shareholders $ 49 $ 220 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 (15) (14) Change in TDS' Capital in excess of par value from U.S. Cellular's repurchases of U.S. Cellular shares – 1 Purchase of ownership in subsidiaries from noncontrolling interests – – Net transfers (to) from noncontrolling interests (15) (13) Change from net income attributable to TDS and transfers (to) from noncontrolling interests $ 34 $ 207

Business Segment Information

Business Segment Information	9 Months Ended
	Sep. 30, 2016
Business Segment Information [Abstract]
Business Segment Information	Note 11 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, 2016 and 2015 , is as follows. See Note 1 — Basis of Presentation for additional information. TDS Telecom Three Months Ended or as of September 30, 2016 U.S. Cellular Wireline Cable HMS TDS Telecom Eliminations TDS Telecom Total Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 771 $ 174 $ 46 $ 29 $ (1) $ 248 $ (6) $ 1,013 Equipment and product sales 239 – – 39 – 39 10 288 Total operating revenues 1,010 175 46 68 (1) 287 4 1,301 Cost of services (excluding Depreciation, amortization and accretion reported below) 196 67 23 21 (1) 110 (1) 305 Cost of equipment and products 280 1 – 33 – 33 8 321 Selling, general and administrative 370 50 13 12 – 75 (5) 440 Depreciation, amortization and accretion 155 41 9 7 – 57 2 214 (Gain) loss on asset disposals, net 7 1 1 – – 2 (1) 8 (Gain) loss on license sales and exchanges, net (7) – – – – – – (7) Operating income (loss) 9 16 – (5) – 12 (1) 20 Equity in earnings of unconsolidated entities 38 – – – – – – 38 Interest and dividend income 14 1 – – – 1 – 15 Interest expense (28) – – (1) – (1) (13) (42) Other, net – – – – – – (1) (1) Income (loss) before income taxes 33 17 – (6) – 11 (14) 30 Income tax expense (benefit) 1 15 4 (5) 14 Net income (loss) 18 7 (9) 16 Add back: Depreciation, amortization and accretion 155 41 9 7 – 57 2 214 (Gain) loss on asset disposals, net 7 1 1 – – 2 (1) 8 (Gain) loss on license sales and exchanges, net (7) – – – – – – (7) Interest expense 28 – – 1 – 1 13 42 Income tax expense (benefit) 1 15 4 (5) 14 Adjusted EBITDA 2 $ 216 $ 58 $ 10 $ 3 $ – $ 71 $ – $ 287 Investments in unconsolidated entities $ 420 $ 4 $ – $ – $ – $ 4 $ 35 $ 459 Total assets $ 7,104 $ 1,259 $ 592 $ 273 $ – $ 2,123 $ 222 $ 9,449 Capital expenditures $ 103 $ 27 $ 11 $ 2 $ – $ 40 $ 2 $ 145 Numbers may not foot due to rounding. 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 millions) Operating revenues Service $ 896 $ 175 $ 44 $ 30 $ (1) $ 248 $ (6) $ 1,138 Equipment and product sales 173 – – 51 – 52 11 236 Total operating revenues 1,069 175 44 82 (1) 299 6 1,374 Cost of services (excluding Depreciation, amortization and accretion reported below) 199 64 20 21 (1) 103 1 303 Cost of equipment and products 287 1 – 43 – 44 6 337 Selling, general and administrative 375 50 14 12 – 77 (2) 450 Depreciation, amortization and accretion 152 41 9 7 – 57 2 211 (Gain) loss on asset disposals, net 3 2 – – – 2 – 5 (Gain) loss on sale of business and other exit costs, net (1) – – – – – – (1) (Gain) loss on license sales and exchanges, net (24) – – – – – – (24) Operating income (loss) 78 18 1 (2) – 17 (2) 93 Equity in earnings of unconsolidated entities 40 – – – – – – 40 Interest and dividend income 9 1 – – – 1 – 10 Interest expense (21) – – (1) – – (14) (35) Other, net – – – – – – – – Income (loss) before income taxes 106 19 1 (2) – 17 (15) 108 Income tax expense (benefit) 1 41 8 (3) 46 Net income (loss) 65 9 (12) 62 Add back: Depreciation, amortization and accretion 152 41 9 7 – 57 2 211 (Gain) loss on asset disposals, net 3 2 – – – 2 – 5 (Gain) loss on sale of business and other exit costs, net (1) – – – – – – (1) (Gain) loss on license sales and exchanges, net (24) – – – – – – (24) Interest expense 21 – – 1 – – 14 35 Income tax expense (benefit) 1 41 – – – – 8 (3) 46 Adjusted EBITDA 2 $ 257 $ 61 $ 10 $ 5 $ – $ 76 $ 1 $ 334 Investments in unconsolidated entities $ 348 $ 4 $ – $ – $ – $ 4 $ 34 $ 386 Total assets $ 6,911 $ 1,322 $ 572 $ 299 $ – $ 2,193 $ 159 $ 9,263 Capital expenditures $ 135 $ 38 $ 13 $ 5 $ – $ 56 $ 3 $ 194 Numbers may not foot due to rounding. TDS Telecom Nine Months Ended or as of September 30, 2016 U.S. Cellular Wireline Cable HMS TDS Telecom Eliminations TDS Telecom Total Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 2,293 $ 522 $ 136 $ 91 $ (3) $ 746 $ (18) $ 3,021 Equipment and product sales 655 1 – 121 – 123 27 805 Total operating revenues 2,948 523 137 212 (3) 868 10 3,826 Cost of services (excluding Depreciation, amortization and accretion reported below) 572 192 69 61 (3) 320 (1) 891 Cost of equipment and products 799 2 – 101 – 103 19 921 Selling, general and administrative 1,089 148 37 37 – 222 (12) 1,299 Depreciation, amortization and accretion 3 462 119 27 22 – 168 6 636 (Gain) loss on asset disposals, net 16 2 2 – – 4 – 20 (Gain) loss on sale of business and other exit costs, net – – – – – – (1) (1) (Gain) loss on license sales and exchanges, net (16) – – – – – – (16) Operating income (loss) 26 61 1 (9) – 53 (3) 76 Equity in earnings of unconsolidated entities 110 – – – – – (1) 109 Interest and dividend income 41 2 – – – 2 1 44 Interest expense (84) 1 – (3) – (2) (41) (127) Other, net – – – – – – 1 1 Income (loss) before income taxes 93 63 1 (12) – 53 (43) 103 Income tax expense (benefit) 1 39 20 (14) 45 Net income (loss) 54 32 (28) 58 Add back: Depreciation, amortization and accretion 3 462 119 27 22 – 168 6 636 (Gain) loss on asset disposals, net 16 2 2 – – 4 – 20 (Gain) loss on sale of business and other exit costs, net – – – – – – (1) (1) (Gain) loss on license sales and exchanges, net (16) – – – – – – (16) Interest expense 84 (1) – 3 – 2 41 127 Income tax expense (benefit) 1 39 20 (14) 45 Adjusted EBITDA 2 $ 639 $ 183 $ 30 $ 13 $ – $ 226 $ 4 $ 869 Investments in unconsolidated entities $ 420 $ 4 $ – $ – $ – $ 4 $ 35 $ 459 Total assets $ 7,104 $ 1,259 $ 592 $ 273 $ – $ 2,123 $ 222 $ 9,449 Capital expenditures $ 275 $ 82 $ 41 $ 6 $ – $ 128 $ 9 $ 412 Numbers may not foot due to rounding. 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 millions) Operating revenues Service $ 2,549 $ 526 $ 132 $ 88 $ (3) $ 743 $ (10) $ 3,282 Equipment and product sales 461 1 – 130 – 132 27 620 Total operating revenues 3,010 527 132 218 (3) 874 18 3,902 Cost of services (excluding Depreciation, amortization and accretion reported below) 586 189 59 63 (3) 308 3 897 Cost of equipment and products 779 2 – 109 – 111 17 907 Selling, general and administrative 1,107 145 41 36 – 222 (5) 1,324 Depreciation, amortization and accretion 450 124 26 20 – 170 8 628 (Gain) loss on asset disposals, net 12 3 (1) – – 3 – 15 (Gain) loss on sale of business and other exit costs, net (114) (3) – – – (3) (13) (130) (Gain) loss on license sales and exchanges, net (147) – – – – – – (147) Operating income (loss) 337 67 6 (10) – 64 7 408 Equity in earnings of unconsolidated entities 110 – – – – – – 110 Interest and dividend income 26 2 – – – 2 – 28 Interest expense (61) 1 – (2) – – (42) (103) Other, net (1) – – – – – 1 – Income (loss) before income taxes 411 70 7 (11) – 65 (33) 443 Income tax expense (benefit) 1 161 27 (10) 178 Net income (loss) 250 38 (23) 265 Add back: Depreciation, amortization and accretion 450 124 26 20 – 170 8 628 (Gain) loss on asset disposals, net 12 3 (1) – – 3 – 15 (Gain) loss on sale of business and other exit costs, net (114) (3) – – – (3) (13) (130) (Gain) loss on license sales and exchanges, net (147) – – – – – – (147) Interest expense 61 (1) – 2 – – 42 103 Income tax expense (benefit) 1 161 – – – – 27 (10) 178 Adjusted EBITDA 2 $ 673 $ 193 $ 32 $ 10 $ – $ 236 $ 3 $ 912 Investments in unconsolidated entities $ 348 $ 4 $ – $ – $ – $ 4 $ 34 $ 386 Total assets $ 6,911 $ 1,322 $ 572 $ 299 $ – $ 2,193 $ 159 $ 9,263 Capital expenditures $ 335 $ 91 $ 37 $ 19 $ – $ 146 $ 6 $ 487 Numbers may not foot due to rounding. 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. TDS believes Adjusted EBITDA is a useful measure of TDS’ operating results before significant recurring non-cash charges, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of TDS' financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management's evaluation of business performance. 3 During the nine months ended September 30, 2016, TDS recorded an out-of-period adjustment attributable to the third quarter of 2014 through the first quarter of 2016 related to the over-depreciation of certain assets in the Wireline segment. TDS has determined that this adjustment was not material to the prior quarterly or annual periods and also was not material to the current period or anticipated full year 2016 results. As a result of this out-of-period adjustment, Depreciation, amortization and accretion expense decreased by $4 million for the nine months ended September 30, 2016. This adjustment was made in the second quarter of 2016.

Summary of Significant Accounti

Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Significant Accounting Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Principles of Consolidation	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’ 83% -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. TDS’ business segments reflected in this Quarterly Report on Form 10-Q for the period ended September 30, 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”). 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 insignificant foreign operation. See Note 11 — Business Segment Information for summary financial information on each business segment.
Basis of Accounting	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. Calculated 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 . The accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring items, unless otherwise disclosed) necessary for the fair statement of TDS’ financial position as of September 30, 2016 and December 31, 2015 , its results of operations and comprehensive income for the three and nine months ended September 30, 2016 and 2015 , and its cash flows and changes in equity for the nine months ended September 30, 2016 and 2015 . These results are not necessarily indicative of the results to be expected for the full year.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) and has since amended the standard with Accounting Standards Update 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, Accounting Standards Update 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net), Accounting Standards Update 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, and Accounting Standards Update 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients. These standards replace existing revenue recognition rules with a single comprehensive model to use in accounting for revenue arising from contracts with customers. TDS is required to adopt ASU 2014-09, as amended, on January 1, 2018. Early adoption as of January 1, 2017 is permitted; however, TDS does not intend to adopt early. ASU 2014-09, as amended, impacts TDS’ revenue recognition related to the allocation of contract revenues between various services and equipment, and the timing of when those revenues are recognized. In addition, the new requirements require deferral of incremental contract acquisition and fulfillment costs and subsequent expense recognition over the contract period or expected customer life. TDS expects to transition to the new standard under the modified retrospective transition method whereby a cumulative effect adjustment is recognized upon adoption and the guidance is applied prospectively. TDS is currently evaluating the guidance, developing its implementation plan, and evaluating the effects ASU 2014-09, as amended, will have on its financial position and results of operations upon adoption. 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. 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 (“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. The adoption of ASU 2015-11 is not expected to have a significant impact on TDS’ financial position or 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 ASU 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. The adoption of ASU 2016-01 is not expected to have a significant impact on TDS’ financial position or results of operations. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (“ASU 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 permitted. Upon adoption of ASU 2016-02, TDS expects a substantial increase to assets and liabilities on its balance sheet. TDS is 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 recognition standard. TDS is required to adopt ASU 2016-04 on January 1, 2018. Early adoption is permitted. The adoption of ASU 2016-04 is not expected to have a significant impact on TDS’ financial position or results of operations. In March 2016, the FASB issued Accounting Standards Update 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based 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 statement of cash flows. TDS will adopt ASU 2016-09 on January 1, 2017. The adoption of ASU 2016-09 is not expected to have a significant impact on TDS’ financial position, results of operations, or cash flows. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires entities to use a new forward-looking, expected loss model to estimate credit losses. It also requires additional disclosure relating to the credit quality of trade and other receivables, including information relating to management’s estimate of credit allowances. TDS is required to adopt ASU 2016-13 on January 1, 2020. Early adoption as of January 1, 2019 is permitted. TDS is evaluating the effects that adoption of ASU 2016-13 will have on its financial position, results of operations and disclosures. In August 2016, the FASB issued Accounting Standards Update 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 provides guidance on eight targeted cash flow classification issues. TDS is required to adopt ASU 2016-15 on January 1, 2018. TDS is evaluating the effects that adoption of ASU 2016-15 will have on its statement of cash flows. In October 2016, the FASB issued Accounting Standards Update 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”). ASU 2016-16 impacts the accounting for the income tax consequences of intra-entity transfers of assets other than inventory when the transfer occurs between entities in different tax jurisdictions. TDS is required to adopt ASU 2016-16 on January 1, 2018. Early adoption is permitted. The adoption of ASU 2016-16 is not expected to have a significant impact on TDS’ financial position or results of operations. In October 2016, the FASB issued Accounting Standards Update 2016-17, Consolidation: Interests Held through Related Parties That Are under Common Control (“ASU 2016-17”). ASU 2016-17 provides guidance on how a reporting entity that is the single decision maker of a VIE should treat indirect interests in an entity held through related parties that are under common control. TDS is required to adopt ASU 2016-17 on January 1, 2017. Early adoption is permitted. TDS is evaluating the effects that adoption of ASU 2016-17 will have on its financial position, results of operations and disclosures.
Variable Interest Entities	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 activities 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 subsequently when events warranting reconsideration occur. These VIEs have risks similar to those described in the “Risk Factors” in TDS’ Form 10-K for the year ended December 31, 2015 .

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair value measurements	TDS has applied the provisions of fair value accounting for purposes of computing the fair value of financial instruments for disclosure purposes as displayed below. Level within the Fair Value Hierarchy September 30, 2016 December 31, 2015 Book Value Fair Value Book Value Fair Value (Dollars in millions) Cash and cash equivalents 1 $ 985 $ 985 $ 985 $ 985 Long-term debt Retail 2 1,753 1,841 1,753 1,766 Institutional 2 533 555 533 501 Other 2 211 210 216 215

Equipment Installment Plans (Ta

Equipment Installment Plans (Table)	9 Months Ended
	Sep. 30, 2016
Receivables [Abstract]
Equipment installment plans	The following table summarizes unbilled equipment installment plan receivables as of September 30, 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. September 30, 2016 December 31, 2015 (Dollars in millions) Short-term portion of unbilled equipment installment plan receivables, gross $ 339 $ 279 Short-term portion of unbilled deferred interest (33) (21) Short-term portion of unbilled allowance for credit losses (22) (14) Short-term portion of unbilled equipment installment plan receivables, net $ 284 $ 244 Long-term portion of unbilled equipment installment plan receivables, gross $ 165 $ 76 Long-term portion of unbilled deferred interest (9) (2) Long-term portion of unbilled allowance for credit losses (13) (6) Long-term portion of unbilled equipment installment plan receivables, net $ 143 $ 68

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
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 Nine Months Ended September 30, September 30, 2016 2015 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 $ 13 $ 51 $ 49 $ 220 Adjustments to compute diluted earnings: Noncontrolling interest adjustment – – (1) (2) Net income available to TDS common shareholders used in diluted earnings per share $ 13 $ 51 $ 48 $ 218 Weighted average number of shares used in basic earnings per share: Common Shares 103 102 103 102 Series A Common Shares 7 7 7 7 Total 110 109 110 109 Effects of dilutive securities 1 1 1 1 Weighted average number of shares used in diluted earnings per share 111 110 111 110 Basic earnings per share available to TDS common shareholders $ 0.12 $ 0.47 $ 0.44 $ 2.03 Diluted earnings per share available to TDS common shareholders $ 0.11 $ 0.46 $ 0.44 $ 1.99

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2016
Licenses
Licenses	Changes in Licenses at TDS for the nine months ended September 30, 2016 are presented below. There were no significant changes to Franchise rights, Goodwill or Other intangible assets during the nine months ended September 30, 2016 . Licenses (Dollars in millions) Balance December 31, 2015¹ $ 1,844 Acquisitions 46 Transferred to Assets held for sale (16) Exchanges - Licenses received 12 Exchanges - Licenses surrendered (10) Balance September 30, 2016 $ 1,876 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 were granted by the FCC in July 2016. See Note 9 — Variable Interest Entities for additional information.

Investment in Unconsolidated En

Investment in Unconsolidated Entities (Tables)	9 Months Ended
	Sep. 30, 2016
Investments in Unconsolidated Entities [Abstract]
Equity method investments, summarized results of operations	The following table, which is based in part on information provided by third parties, summarizes the combined results of operations of TDS’ equity method investments. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (Dollars in millions) Revenues $ 1,679 $ 1,738 $ 5,008 $ 5,199 Operating expenses 1,254 1,267 3,662 3,840 Operating income 425 471 1,346 1,359 Other income (expense), net (2) (11) (10) (17) Net income $ 423 $ 460 $ 1,336 $ 1,342

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Debt instrument facilities	The following table summarizes the terms of such revolving credit facilities as of September 30, 2016 : TDS U.S. Cellular (Dollars in millions) Maximum borrowing capacity $ 400 $ 300 Letters of credit outstanding $ 1 $ 16 Amount borrowed $ – $ – Amount available for use $ 399 $ 284 Illustrative borrowing rate: One-month London Interbank Offered Rate ("LIBOR") plus contractual spread 1 2.28 % 2.28 % Illustrative LIBOR Rate 0.53 % 0.53 % Contractual spread 1.75 % 1.75 % Commitment fees on amount available for use 2 0.30 % 0.30 % Agreement date June 2016 June 2016 Maturity date June 2021 June 2021 1 Borrowings under the revolving credit facility bear interest either at a LIBOR rate or at an alternative Base Rate as defined in the revolving credit agreement, plus an applicable margin, at TDS' or U.S. Cellular’s option. TDS and U.S. Cellular may select a borrowing period of either one, two, three or six months (or other period of twelve months or less if requested by TDS or U.S. Cellular and approved by the lenders). 2 The revolving credit facility has commitment fees based on the unsecured senior debt ratings assigned to TDS and U.S. Cellular by certain ratings agencies.

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	9 Months Ended
	Sep. 30, 2016
Variable Interest Entities [Abstract]
Consolidated VIE assets and liabilities	The following table presents the classification and balances of the consolidated VIEs’ assets and liabilities in TDS’ Consolidated Balance Sheet. September 30, December 31, 2016¹ 2015¹ (Dollars in millions) Assets Cash and cash equivalents $ 2 $ 1 Accounts receivable 38 – Other current assets 6 – Licenses 2 649 649 Property, plant and equipment, net 96 8 Other assets and deferred charges 14 – Total assets $ 805 $ 658 Liabilities Current liabilities $ 19 $ – Deferred liabilities and credits 11 1 Total liabilities $ 30 $ 1 1 The increase in amounts from December 31, 2015 are primarily due to the adoption of ASU 2015-02 as disclosed above. 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 As disclosed above, payments totaling $338 million were made by Advantage Spectrum to the FCC relating to Auction 97. These licenses were granted and issued as of September 30, 2016. Although the licenses had not yet been granted as of December 31, 2015, the payments to the FCC were classified as Licenses at such date.

Noncontrolling Interests (Table

Noncontrolling Interests (Tables)	9 Months Ended
	Sep. 30, 2016
Noncontrolling Interests [Abstract]
Noncontrolling interests	The following schedule discloses the effects of Net income attributable to TDS shareholders and changes in TDS’ ownership interest in U.S. Cellular on TDS’ equity: Nine Months Ended September 30, 2016 2015 (Dollars in millions) Net income attributable to TDS shareholders $ 49 $ 220 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 (15) (14) Change in TDS' Capital in excess of par value from U.S. Cellular's repurchases of U.S. Cellular shares – 1 Purchase of ownership in subsidiaries from noncontrolling interests – – Net transfers (to) from noncontrolling interests (15) (13) Change from net income attributable to TDS and transfers (to) from noncontrolling interests $ 34 $ 207

Business Segment (Tables)

Business Segment (Tables)	9 Months Ended
	Sep. 30, 2016
Business Segment Information [Abstract]
Business segment information	Financial data for TDS’ reportable segments for the three and nine month periods ended, or as of September 30, 2016 and 2015 , is as follows. See Note 1 — Basis of Presentation for additional information. TDS Telecom Three Months Ended or as of September 30, 2016 U.S. Cellular Wireline Cable HMS TDS Telecom Eliminations TDS Telecom Total Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 771 $ 174 $ 46 $ 29 $ (1) $ 248 $ (6) $ 1,013 Equipment and product sales 239 – – 39 – 39 10 288 Total operating revenues 1,010 175 46 68 (1) 287 4 1,301 Cost of services (excluding Depreciation, amortization and accretion reported below) 196 67 23 21 (1) 110 (1) 305 Cost of equipment and products 280 1 – 33 – 33 8 321 Selling, general and administrative 370 50 13 12 – 75 (5) 440 Depreciation, amortization and accretion 155 41 9 7 – 57 2 214 (Gain) loss on asset disposals, net 7 1 1 – – 2 (1) 8 (Gain) loss on license sales and exchanges, net (7) – – – – – – (7) Operating income (loss) 9 16 – (5) – 12 (1) 20 Equity in earnings of unconsolidated entities 38 – – – – – – 38 Interest and dividend income 14 1 – – – 1 – 15 Interest expense (28) – – (1) – (1) (13) (42) Other, net – – – – – – (1) (1) Income (loss) before income taxes 33 17 – (6) – 11 (14) 30 Income tax expense (benefit) 1 15 4 (5) 14 Net income (loss) 18 7 (9) 16 Add back: Depreciation, amortization and accretion 155 41 9 7 – 57 2 214 (Gain) loss on asset disposals, net 7 1 1 – – 2 (1) 8 (Gain) loss on license sales and exchanges, net (7) – – – – – – (7) Interest expense 28 – – 1 – 1 13 42 Income tax expense (benefit) 1 15 4 (5) 14 Adjusted EBITDA 2 $ 216 $ 58 $ 10 $ 3 $ – $ 71 $ – $ 287 Investments in unconsolidated entities $ 420 $ 4 $ – $ – $ – $ 4 $ 35 $ 459 Total assets $ 7,104 $ 1,259 $ 592 $ 273 $ – $ 2,123 $ 222 $ 9,449 Capital expenditures $ 103 $ 27 $ 11 $ 2 $ – $ 40 $ 2 $ 145 Numbers may not foot due to rounding. 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 millions) Operating revenues Service $ 896 $ 175 $ 44 $ 30 $ (1) $ 248 $ (6) $ 1,138 Equipment and product sales 173 – – 51 – 52 11 236 Total operating revenues 1,069 175 44 82 (1) 299 6 1,374 Cost of services (excluding Depreciation, amortization and accretion reported below) 199 64 20 21 (1) 103 1 303 Cost of equipment and products 287 1 – 43 – 44 6 337 Selling, general and administrative 375 50 14 12 – 77 (2) 450 Depreciation, amortization and accretion 152 41 9 7 – 57 2 211 (Gain) loss on asset disposals, net 3 2 – – – 2 – 5 (Gain) loss on sale of business and other exit costs, net (1) – – – – – – (1) (Gain) loss on license sales and exchanges, net (24) – – – – – – (24) Operating income (loss) 78 18 1 (2) – 17 (2) 93 Equity in earnings of unconsolidated entities 40 – – – – – – 40 Interest and dividend income 9 1 – – – 1 – 10 Interest expense (21) – – (1) – – (14) (35) Other, net – – – – – – – – Income (loss) before income taxes 106 19 1 (2) – 17 (15) 108 Income tax expense (benefit) 1 41 8 (3) 46 Net income (loss) 65 9 (12) 62 Add back: Depreciation, amortization and accretion 152 41 9 7 – 57 2 211 (Gain) loss on asset disposals, net 3 2 – – – 2 – 5 (Gain) loss on sale of business and other exit costs, net (1) – – – – – – (1) (Gain) loss on license sales and exchanges, net (24) – – – – – – (24) Interest expense 21 – – 1 – – 14 35 Income tax expense (benefit) 1 41 – – – – 8 (3) 46 Adjusted EBITDA 2 $ 257 $ 61 $ 10 $ 5 $ – $ 76 $ 1 $ 334 Investments in unconsolidated entities $ 348 $ 4 $ – $ – $ – $ 4 $ 34 $ 386 Total assets $ 6,911 $ 1,322 $ 572 $ 299 $ – $ 2,193 $ 159 $ 9,263 Capital expenditures $ 135 $ 38 $ 13 $ 5 $ – $ 56 $ 3 $ 194 Numbers may not foot due to rounding. TDS Telecom Nine Months Ended or as of September 30, 2016 U.S. Cellular Wireline Cable HMS TDS Telecom Eliminations TDS Telecom Total Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 2,293 $ 522 $ 136 $ 91 $ (3) $ 746 $ (18) $ 3,021 Equipment and product sales 655 1 – 121 – 123 27 805 Total operating revenues 2,948 523 137 212 (3) 868 10 3,826 Cost of services (excluding Depreciation, amortization and accretion reported below) 572 192 69 61 (3) 320 (1) 891 Cost of equipment and products 799 2 – 101 – 103 19 921 Selling, general and administrative 1,089 148 37 37 – 222 (12) 1,299 Depreciation, amortization and accretion 3 462 119 27 22 – 168 6 636 (Gain) loss on asset disposals, net 16 2 2 – – 4 – 20 (Gain) loss on sale of business and other exit costs, net – – – – – – (1) (1) (Gain) loss on license sales and exchanges, net (16) – – – – – – (16) Operating income (loss) 26 61 1 (9) – 53 (3) 76 Equity in earnings of unconsolidated entities 110 – – – – – (1) 109 Interest and dividend income 41 2 – – – 2 1 44 Interest expense (84) 1 – (3) – (2) (41) (127) Other, net – – – – – – 1 1 Income (loss) before income taxes 93 63 1 (12) – 53 (43) 103 Income tax expense (benefit) 1 39 20 (14) 45 Net income (loss) 54 32 (28) 58 Add back: Depreciation, amortization and accretion 3 462 119 27 22 – 168 6 636 (Gain) loss on asset disposals, net 16 2 2 – – 4 – 20 (Gain) loss on sale of business and other exit costs, net – – – – – – (1) (1) (Gain) loss on license sales and exchanges, net (16) – – – – – – (16) Interest expense 84 (1) – 3 – 2 41 127 Income tax expense (benefit) 1 39 20 (14) 45 Adjusted EBITDA 2 $ 639 $ 183 $ 30 $ 13 $ – $ 226 $ 4 $ 869 Investments in unconsolidated entities $ 420 $ 4 $ – $ – $ – $ 4 $ 35 $ 459 Total assets $ 7,104 $ 1,259 $ 592 $ 273 $ – $ 2,123 $ 222 $ 9,449 Capital expenditures $ 275 $ 82 $ 41 $ 6 $ – $ 128 $ 9 $ 412 Numbers may not foot due to rounding. 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 millions) Operating revenues Service $ 2,549 $ 526 $ 132 $ 88 $ (3) $ 743 $ (10) $ 3,282 Equipment and product sales 461 1 – 130 – 132 27 620 Total operating revenues 3,010 527 132 218 (3) 874 18 3,902 Cost of services (excluding Depreciation, amortization and accretion reported below) 586 189 59 63 (3) 308 3 897 Cost of equipment and products 779 2 – 109 – 111 17 907 Selling, general and administrative 1,107 145 41 36 – 222 (5) 1,324 Depreciation, amortization and accretion 450 124 26 20 – 170 8 628 (Gain) loss on asset disposals, net 12 3 (1) – – 3 – 15 (Gain) loss on sale of business and other exit costs, net (114) (3) – – – (3) (13) (130) (Gain) loss on license sales and exchanges, net (147) – – – – – – (147) Operating income (loss) 337 67 6 (10) – 64 7 408 Equity in earnings of unconsolidated entities 110 – – – – – – 110 Interest and dividend income 26 2 – – – 2 – 28 Interest expense (61) 1 – (2) – – (42) (103) Other, net (1) – – – – – 1 – Income (loss) before income taxes 411 70 7 (11) – 65 (33) 443 Income tax expense (benefit) 1 161 27 (10) 178 Net income (loss) 250 38 (23) 265 Add back: Depreciation, amortization and accretion 450 124 26 20 – 170 8 628 (Gain) loss on asset disposals, net 12 3 (1) – – 3 – 15 (Gain) loss on sale of business and other exit costs, net (114) (3) – – – (3) (13) (130) (Gain) loss on license sales and exchanges, net (147) – – – – – – (147) Interest expense 61 (1) – 2 – – 42 103 Income tax expense (benefit) 1 161 – – – – 27 (10) 178 Adjusted EBITDA 2 $ 673 $ 193 $ 32 $ 10 $ – $ 236 $ 3 $ 912 Investments in unconsolidated entities $ 348 $ 4 $ – $ – $ – $ 4 $ 34 $ 386 Total assets $ 6,911 $ 1,322 $ 572 $ 299 $ – $ 2,193 $ 159 $ 9,263 Capital expenditures $ 335 $ 91 $ 37 $ 19 $ – $ 146 $ 6 $ 487 Numbers may not foot due to rounding. 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. TDS believes Adjusted EBITDA is a useful measure of TDS’ operating results before significant recurring non-cash charges, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of TDS' financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management's evaluation of business performance. 3 During the nine months ended September 30, 2016, TDS recorded an out-of-period adjustment attributable to the third quarter of 2014 through the first quarter of 2016 related to the over-depreciation of certain assets in the Wireline segment. TDS has determined that this adjustment was not material to the prior quarterly or annual periods and also was not material to the current period or anticipated full year 2016 results. As a result of this out-of-period adjustment, Depreciation, amortization and accretion expense decreased by $4 million for the nine months ended September 30, 2016. This adjustment was made in the second quarter of 2016.

Basis of Presentation (Details)

Basis of Presentation (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Basis of Presentation [Line Items]
Amounts recorded gross in revenues that are billed to customers and remitted to governmental authorities	$ 21	$ 24	$ 65	$ 75
U.S. Cellular
Basis of Presentation [Line Items]
TDS ownership of U.S. Cellular	83.00%		83.00%

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Financial Instruments
Cash and cash equivalents	$ 985	$ 985	$ 865	$ 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	6.50%	7.51%
Fair Value | Level 1
Financial Instruments
Cash and cash equivalents	$ 985	$ 985
Fair Value | Level 2 | Retail
Financial Instruments
Long-term debt	1,841	1,766
Fair Value | Level 2 | Institutional
Financial Instruments
Long-term debt	555	501
Fair Value | Level 2 | Other
Financial Instruments
Long-term debt	210	215
Book Value
Financial Instruments
Cash and cash equivalents	985	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	$ 211	$ 216

Equipment Installment Plans (De

Equipment Installment Plans (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Equipment installment plans
Guarantee liability	$ 44	$ 44		$ 93
Imputed interest rate		10.70%		9.70%
2016 Equipment installment plans out-of-period adjustment
Equipment installment plans
Out-of-period adjustment description		TDS recorded out-of-period adjustments during the three and nine months ended September 30, 2016 due to errors related to equipment installment plan transactions occurring in 2015 and 2016 (“2016 EIP adjustments”). For the three months ended September 30, 2016, the 2016 EIP adjustments had the impact of increasing Equipment and product sales revenues by $4 million, decreasing bad debts expense, which is a component of Selling, general and administrative expense, by $2 million and increasing Income before income taxes by $6 million. For the nine months ended September 30, 2016, the 2016 EIP adjustments had the impact of increasing Equipment and product sales revenues by $2 million, decreasing bad debts expense by $2 million and increasing Income before income taxes by $4 million.
2015 Equipment installment plans out-of-period adjustment
Equipment installment plans
Out-of-period adjustment description		Additionally, TDS recorded out-of-period adjustments during the nine months ended September 30, 2015 due to errors related to equipment installment plan transactions (“2015 EIP adjustments”) that were attributable to 2014. The 2015 EIP adjustments had the impact of reducing Equipment and product sales revenues and Income before income taxes by $6 million for the nine months ended September 30, 2015. The 2015 EIP adjustments were made in the first six months of 2015. TDS has determined that these adjustments were not material to any of the periods impacted.
Equipment and product sales revenues | 2016 Equipment installment plans out-of-period adjustment
Equipment installment plans
Out-of-period adjustment	4	$ 2
Equipment and product sales revenues | 2015 Equipment installment plans out-of-period adjustment
Equipment installment plans
Out-of-period adjustment			$ (6)
Selling, general and administrative expense | 2016 Equipment installment plans out-of-period adjustment
Equipment installment plans
Out-of-period adjustment	(2)	(2)
Income before income taxes | 2016 Equipment installment plans out-of-period adjustment
Equipment installment plans
Out-of-period adjustment	6	4
Income before income taxes | 2015 Equipment installment plans out-of-period adjustment
Equipment installment plans
Out-of-period adjustment			$ (6)
Short-term
Equipment installment plan receivables
Unbilled equipment installment plan receivables, gross	339	339		$ 279
Unbilled deferred interest	(33)	(33)		(21)
Unbilled allowance for credit losses	(22)	(22)		(14)
Unbilled equipment installment plan receivables, net	284	284		244
Long-term
Equipment installment plan receivables
Unbilled equipment installment plan receivables, gross	165	165		76
Unbilled deferred interest	(9)	(9)		(2)
Unbilled allowance for credit losses	(13)	(13)		(6)
Unbilled equipment installment plan receivables, net	$ 143	$ 143		$ 68

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings per share
Net income available to TDS common shareholders used in basic earnings per share	$ 13	$ 51	$ 49	$ 220
Noncontrolling interest adjustment			(1)	(2)
Net income available to TDS common shareholders used in diluted earnings per share	$ 13	$ 51	$ 48	$ 218
Weighted average number of shares used in basic earnings per share	110	109	110	109
Effects of dilutive securities	1	1	1	1
Weighted average number of shares used in diluted earnings per share	111	110	111	110
Basic earnings per share available to TDS common shareholders	$ 0.12	$ 0.47	$ 0.44	$ 2.03
Diluted earnings per share available to TDS common shareholders	$ 0.11	$ 0.46	$ 0.44	$ 1.99
Earnings per share, Other disclosures
Antidilutive securities	4	5	4	5
Common Shares
Earnings per share
Weighted average number of shares used in basic earnings per share	103	102	103	102
Series A Common Shares
Earnings per share
Weighted average number of shares used in basic earnings per share	7	7	7	7

Acquisitions, Divestitures and

Acquisitions, Divestitures and Exchanges (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Mar. 31, 2016	Feb. 29, 2016
Acquisitions
Cash paid for acquisitions and licenses				$ 46	$ 287
Federal Communications Commission deposit		$ 143		143
Exchanges
Assets held for sale	$ 16			16
Cash received from divestitures and exchanges				20	325
Gain on license sales and exchanges	7		$ 24	16	147
U.S. Cellular
Exchanges
Gain on license sales and exchanges	7		$ 24	16	$ 147
U.S. Cellular | License exchange 1
Exchanges
Assets held for sale	8			8
Net cash to be received (paid)							$ 28
U.S. Cellular | License exchange 1, first closing
Exchanges
Cash received from divestitures and exchanges		13
Gain on license sales and exchanges		9
U.S. Cellular | License exchange 2
Exchanges
Cash received from divestitures and exchanges	2
Carrying value of licenses disposed of in exchange	7
Gain on license sales and exchanges	7
U.S. Cellular | License exchange 3
Exchanges
Assets held for sale	8			8
Net cash to be received (paid)						$ (1)
U.S. Cellular | License Acquisitions | Aggregate license acquisitions
Acquisitions
License acquisition agreement amount	$ 56			$ 56
Cash paid for acquisitions and licenses		$ 46

Intangible Assets (Details)

Intangible Assets (Details) - Licenses - USD ($) $ in Millions		9 Months Ended
		Sep. 30, 2016
Licenses
Balance, beginning of period	[1]	$ 1,844
Acquisitions		46
Transferred to Assets held for sale		(16)
Exchange - Licenses received		12
Exchange - Licenses surrendered		(10)
Balance, end of period		1,876
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 were granted by the FCC in July 2016. See Note 9 — Variable Interest Entities for additional information.

Investment in Unconsolidated 35

Investment in Unconsolidated Entities (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Equity method investments, combined income statements
Revenues	$ 1,679	$ 1,738	$ 5,008	$ 5,199
Operating expenses	1,254	1,267	3,662	3,840
Operating income	425	471	1,346	1,359
Other income (expense), net	(2)	(11)	(10)	(17)
Net income	$ 423	$ 460	$ 1,336	$ 1,342

Debt, revolving credit faciliti

Debt, revolving credit facilities (Details) $ in Millions		9 Months Ended
		Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Jul. 01, 2019
TDS Revolving credit facility | TDS Parent Company
Revolving credit
Maximum borrowing capacity		$ 400
Letters of credit outstanding		1
Amount available for use		$ 399
Illustrative borrowing rate: One-month London InterBank Offered Rate ("LIBOR") plus contractual spread	[1]	2.28%
Illustrative LIBOR rate		0.53%
Contractual spread		1.75%
Commitment fees on amount available for use	[2]	0.30%
Agreement date		Jun. 15, 2016
Maturity date		Jun. 15, 2021
U.S. Cellular Revolving credit facility | U.S. Cellular
Revolving credit
Maximum borrowing capacity		$ 300
Letters of credit outstanding		16
Amount available for use		$ 284
Illustrative borrowing rate: One-month London InterBank Offered Rate ("LIBOR") plus contractual spread	[1]	2.28%
Illustrative LIBOR rate		0.53%
Contractual spread		1.75%
Commitment fees on amount available for use	[2]	0.30%
Agreement date		Jun. 15, 2016
Maturity date		Jun. 15, 2021
TDS and U.S. Cellular Revolving credit facility
Revolving credit
Interest Coverage Ratio		3
Leverage Ratio		3.25
Covenant compliance		TDS and U.S. Cellular believe that they were in compliance with all of the financial and other covenants and requirements set forth in their revolving credit facilities as of September 30, 2016.
TDS and U.S. Cellular Revolving credit facility | Future period
Revolving credit
Leverage Ratio				3
Aggregate revolving credit facilities
Revolving credit
Unused commitment fees		$ 1	$ 2
Other assets and deferred charges | Aggregate revolving credit facilities
Revolving credit
Debt issuance cost		6
Other assets and deferred charges | New revolving credit facilities
Revolving credit
Debt issuance cost		$ 4
[1]	Borrowings under the revolving credit facility bear interest either at a LIBOR rate or at an alternative Base Rate as defined in the revolving credit agreement, plus an applicable margin, at TDS' or U.S. Cellular’s option. TDS and U.S. Cellular may select a borrowing period of either one, two, three or six months (or other period of twelve months or less if requested by TDS or U.S. Cellular and approved by the lenders).
[2]	The revolving credit facility has commitment fees based on the unsecured senior debt ratings assigned to TDS and U.S. Cellular by certain ratings agencies.

Variable Interest Entities (Det

Variable Interest Entities (Details) - USD ($) $ in Millions		1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
		Mar. 31, 2015	Jun. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2014	Dec. 31, 2015
Assets
Cash and cash equivalents				$ 865	$ 985	$ 865	$ 472	$ 985
Accounts receivable					725			705
Other current assets					34			30
Licenses					1,876			1,844
Property, plant and equipment, net					3,549			3,764
Other assets and deferred charges					392			197
Liabilities
Current liabilities					887			944
Variable Interest Entities, Other Disclosures
Federal Communications Commission deposit			$ 143		143
Capital contributions, loans or advances					100	281
Investments in unconsolidated entities				386	$ 459	386		402
King Street Wireless Out Of Period Adjustment [Member]
Variable Interest Entities, Other Disclosures
Out-of-period adjustment description					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 determined that these adjustments were not material to the quarterly periods or the annual results for 2015. These out-of-period adjustments had the impact of reducing Net income by $3 million for both the three and nine months ended September 30, 2015, and Net income attributable to TDS shareholders by $4 million and $3 million, for the three and nine months ended September 30, 2015, respectively.
Net income | King Street Wireless Out Of Period Adjustment [Member]
Variable Interest Entities, Other Disclosures
Out-of-period adjustment				3		3
Net income attributable to TDS shareholders | King Street Wireless Out Of Period Adjustment [Member]
Variable Interest Entities, Other Disclosures
Out-of-period adjustment				4		3
U.S. Cellular
Variable Interest Entities, Other Disclosures
Investments in unconsolidated entities				$ 348	$ 420	$ 348
Consolidated Variable Interest Entities
Assets
Cash and cash equivalents	[1]				2			1
Accounts receivable	[1]				38
Other current assets	[1]				6
Licenses	[1],[2]				649			649
Property, plant and equipment, net	[1]				96			8
Other assets and deferred charges	[1]				14
Total assets	[1]				805			658
Liabilities
Current liabilities	[1]				19
Deferred liabilities and credits	[1]				11			1
Total liabilities	[1]				30			1
Unconsolidated Variable Interest Entities
Variable Interest Entities, Other Disclosures
Investments in unconsolidated entities					$ 6			$ 5
Advantage Spectrum L.P. | U.S. Cellular
Variable Interest Entities, Other Disclosures
Federal Communications Commission deposit							$ 60
Licenses won		124
Total winning bid		$ 338
Designated entity auction discount		25.00%
Other auction charges		$ 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]	The increase in amounts from December 31, 2015 are primarily due to the adoption of ASU 2015-02 as disclosed above. 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]	As disclosed above, payments totaling $338 million were made by Advantage Spectrum to the FCC relating to Auction 97. These licenses were granted and issued as of September 30, 2016. Although the licenses had not yet been granted as of December 31, 2015, the payments to the FCC were classified as Licenses at such date.

Noncontrolling Interests (Detai

Noncontrolling Interests (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Noncontrolling Interests [Abstract]
Net income attributable to TDS shareholders	$ 13	$ 51	$ 49	$ 220
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			(15)	(14)
Change in TDS' Capital in excess of par value from U.S. Cellular's repurchase of U.S. Cellular shares				1
Net transfers (to) from noncontrolling interests			(15)	(13)
Change from net income attributable to TDS and transfers (to) from noncontrolling interests			$ 34	$ 207

Business Segment (Details)

Business Segment (Details) - USD ($) $ in Millions		3 Months Ended			9 Months Ended
		Sep. 30, 2016		Sep. 30, 2015	Sep. 30, 2016		Sep. 30, 2015	Dec. 31, 2015
Segment Reporting Information [Line Items]
Service		$ 1,013		$ 1,138	$ 3,021		$ 3,282
Equipment and product sales		288		236	805		620
Total operating revenues		1,301		1,374	3,826		3,902
Cost of services (excluding Depreciation, amortization and accretion reported below)		305		303	891		897
Cost of equipment and products		321		337	921		907
Selling, general and administrative		440		450	1,299		1,324
Depreciation, amortization and accretion		214		211	636		628
(Gain) loss on asset disposals, net		8		5	20		15
(Gain) loss on sale of business and other exit costs, net				(1)	(1)		(130)
(Gain) loss on license sales and exchanges, net		(7)		(24)	(16)		(147)
Operating income (loss)		20		93	76		408
Equity in earnings of unconsolidated entities		38		40	109		110
Interest and dividend income		15		10	44		28
Interest expense		(42)		(35)	(127)		(103)
Other, net		(1)			1
Income before income taxes		30		108	103		443
Income tax expense (benefit)		14		46	45		178
Net income		16		62	58		265
Depreciation, amortization and accretion		214		211	636		628
(Gain) loss on asset disposals, net		8		5	20		15
(Gain) loss on sale of business and other exit costs, net				(1)	(1)		(130)
(Gain) loss on license sales and exchanges, net		(7)		(24)	(16)		(147)
Interest expense		42		35	127		103
Income tax expense		14		46	45		178
Adjusted EBITDA	[1]	287		334	869		912
Investments in unconsolidated entities		459		386	459		386	$ 402
Total assets		9,449	[2]	9,263	9,449	[2]	9,263	$ 9,422	[2]
Capital expenditures		145		194	412		487
U.S. Cellular
Segment Reporting Information [Line Items]
Service		771		896	2,293		2,549
Equipment and product sales		239		173	655		461
Total operating revenues		1,010		1,069	2,948		3,010
Cost of services (excluding Depreciation, amortization and accretion reported below)		196		199	572		586
Cost of equipment and products		280		287	799		779
Selling, general and administrative		370		375	1,089		1,107
Depreciation, amortization and accretion		155		152	462		450
(Gain) loss on asset disposals, net		7		3	16		12
(Gain) loss on sale of business and other exit costs, net				(1)			(114)
(Gain) loss on license sales and exchanges, net		(7)		(24)	(16)		(147)
Operating income (loss)		9		78	26		337
Equity in earnings of unconsolidated entities		38		40	110		110
Interest and dividend income		14		9	41		26
Interest expense		(28)		(21)	(84)		(61)
Other, net							(1)
Income before income taxes		33		106	93		411
Income tax expense (benefit)	[3]	15		41	39		161
Net income		18		65	54		250
Depreciation, amortization and accretion		155		152	462		450
(Gain) loss on asset disposals, net		7		3	16		12
(Gain) loss on sale of business and other exit costs, net				(1)			(114)
(Gain) loss on license sales and exchanges, net		(7)		(24)	(16)		(147)
Interest expense		28		21	84		61
Income tax expense	[3]	15		41	39		161
Adjusted EBITDA	[1]	216		257	639		673
Investments in unconsolidated entities		420		348	420		348
Total assets		7,104		6,911	7,104		6,911
Capital expenditures		103		135	275		335
TDS Telecom
Segment Reporting Information [Line Items]
Service		248		248	746		743
Equipment and product sales		39		52	123		132
Total operating revenues		287		299	868		874
Cost of services (excluding Depreciation, amortization and accretion reported below)		110		103	320		308
Cost of equipment and products		33		44	103		111
Selling, general and administrative		75		77	222		222
Depreciation, amortization and accretion		57		57	168		170
(Gain) loss on asset disposals, net		2		2	4		3
(Gain) loss on sale of business and other exit costs, net							(3)
Operating income (loss)		12		17	53		64
Interest and dividend income		1		1	2		2
Interest expense		(1)			(2)
Income before income taxes		11		17	53		65
Income tax expense (benefit)	[3]	4		8	20		27
Net income		7		9	32		38
Depreciation, amortization and accretion		57		57	168		170
(Gain) loss on asset disposals, net		2		2	4		3
(Gain) loss on sale of business and other exit costs, net							(3)
Interest expense		1			2
Income tax expense	[3]	4		8	20		27
Adjusted EBITDA	[1]	71		76	226		236
Investments in unconsolidated entities		4		4	4		4
Total assets		2,123		2,193	2,123		2,193
Capital expenditures		40		56	128		146
TDS Telecom Wireline
Segment Reporting Information [Line Items]
Service		174		175	522		526
Equipment and product sales					1		1
Total operating revenues		175		175	523		527
Cost of services (excluding Depreciation, amortization and accretion reported below)		67		64	192		189
Cost of equipment and products		1		1	2		2
Selling, general and administrative		50		50	148		145
Depreciation, amortization and accretion	[4]	41		41	119		124
(Gain) loss on asset disposals, net		1		2	2		3
(Gain) loss on sale of business and other exit costs, net							(3)
Operating income (loss)		16		18	61		67
Interest and dividend income		1		1	2		2
Interest expense					1		1
Income before income taxes		17		19	63		70
Depreciation, amortization and accretion	[4]	41		41	119		124
(Gain) loss on asset disposals, net		1		2	2		3
(Gain) loss on sale of business and other exit costs, net							(3)
Interest expense					(1)		(1)
Adjusted EBITDA	[1]	58		61	183		193
Investments in unconsolidated entities		4		4	4		4
Total assets		1,259		1,322	1,259		1,322
Capital expenditures		27		38	$ 82		91
TDS Telecom Wireline | Depreciation out-of-period adjustment
Segment Reporting Information [Line Items]
Out-of-period adjustment description					During the nine months ended September 30, 2016, TDS recorded an out-of-period adjustment attributable to the third quarter of 2014 through the first quarter of 2016 related to the over-depreciation of certain assets in the Wireline segment. TDS has determined that this adjustment was not material to the prior quarterly or annual periods and also was not material to the current period or anticipated full year 2016 results. As a result of this out-of-period adjustment, Depreciation, amortization and accretion expense decreased by $4 million for the nine months ended September 30, 2016. This adjustment was made in the second quarter of 2016.
TDS Telecom Wireline | Depreciation Amortization Accretion Expense [Member] | Depreciation out-of-period adjustment
Segment Reporting Information [Line Items]
Out-of-period adjustment					$ 4
TDS Telecom Cable
Segment Reporting Information [Line Items]
Service		46		44	136		132
Total operating revenues		46		44	137		132
Cost of services (excluding Depreciation, amortization and accretion reported below)		23		20	69		59
Selling, general and administrative		13		14	37		41
Depreciation, amortization and accretion		9		9	27		26
(Gain) loss on asset disposals, net		1			2		(1)
Operating income (loss)				1	1		6
Income before income taxes				1	1		7
Depreciation, amortization and accretion		9		9	27		26
(Gain) loss on asset disposals, net		1			2		(1)
Adjusted EBITDA	[1]	10		10	30		32
Total assets		592		572	592		572
Capital expenditures		11		13	41		37
TDS Telecom HMS
Segment Reporting Information [Line Items]
Service		29		30	91		88
Equipment and product sales		39		51	121		130
Total operating revenues		68		82	212		218
Cost of services (excluding Depreciation, amortization and accretion reported below)		21		21	61		63
Cost of equipment and products		33		43	101		109
Selling, general and administrative		12		12	37		36
Depreciation, amortization and accretion		7		7	22		20
Operating income (loss)		(5)		(2)	(9)		(10)
Interest expense		(1)		(1)	(3)		(2)
Income before income taxes		(6)		(2)	(12)		(11)
Depreciation, amortization and accretion		7		7	22		20
Interest expense		1		1	3		2
Adjusted EBITDA	[1]	3		5	13		10
Total assets		273		299	273		299
Capital expenditures		2		5	6		19
TDS Telecom Eliminations
Segment Reporting Information [Line Items]
Service		(1)		(1)	(3)		(3)
Total operating revenues		(1)		(1)	(3)		(3)
Cost of services (excluding Depreciation, amortization and accretion reported below)		(1)		(1)	(3)		(3)
Corporate, Eliminations and Other
Segment Reporting Information [Line Items]
Service		(6)		(6)	(18)		(10)
Equipment and product sales		10		11	27		27
Total operating revenues		4		6	10		18
Cost of services (excluding Depreciation, amortization and accretion reported below)		(1)		1	(1)		3
Cost of equipment and products		8		6	19		17
Selling, general and administrative		(5)		(2)	(12)		(5)
Depreciation, amortization and accretion		2		2	6		8
(Gain) loss on asset disposals, net		(1)
(Gain) loss on sale of business and other exit costs, net					(1)		(13)
Operating income (loss)		(1)		(2)	(3)		7
Equity in earnings of unconsolidated entities					(1)
Interest and dividend income					1
Interest expense		(13)		(14)	(41)		(42)
Other, net		(1)			1		1
Income before income taxes		(14)		(15)	(43)		(33)
Income tax expense (benefit)	[3]	(5)		(3)	(14)		(10)
Net income		(9)		(12)	(28)		(23)
Depreciation, amortization and accretion		2		2	6		8
(Gain) loss on asset disposals, net		(1)
(Gain) loss on sale of business and other exit costs, net					(1)		(13)
Interest expense		13		14	41		42
Income tax expense	[3]	(5)		(3)	(14)		(10)
Adjusted EBITDA	[1]			1	4		3
Investments in unconsolidated entities		35		34	35		34
Total assets		222		159	222		159
Capital expenditures		$ 2		$ 3	$ 9		$ 6
[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. TDS believes Adjusted EBITDA is a useful measure of TDS’ operating results before significant recurring non-cash charges, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of TDS' financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management's evaluation of business performance.
[2]	The consolidated total assets as of September 30, 2016 and December 31, 2015 include assets held by consolidated VIEs of $805 million and $658 million, respectively, which are not available to be used to settle the obligations of TDS. The consolidated total liabilities as of September 30, 2016 and December 31, 2015 include certain liabilities of consolidated VIEs of $15 million and $1 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of TDS. See Note 9 — 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".
[4]	During the nine months ended September 30, 2016, TDS recorded an out-of-period adjustment attributable to the third quarter of 2014 through the first quarter of 2016 related to the over-depreciation of certain assets in the Wireline segment. TDS has determined that this adjustment was not material to the prior quarterly or annual periods and also was not material to the current period or anticipated full year 2016 results. As a result of this out-of-period adjustment, Depreciation, amortization and accretion expense decreased by $4 million for the nine months ended September 30, 2016. This adjustment was made in the second quarter of 2016.