Telephone and Data Systems (TDS) 10-Q 8 Nov 17 2017 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information	9 Months Ended
	Sep. 30, 2017shares
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, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Trading Symbol	TDS
Common Shares
Entity Common Stock, Shares Outstanding	103,536,879
Series A Common Shares
Entity Common Stock, Shares Outstanding	7,250,102

Consolidated Statement Of Opera

Consolidated Statement Of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Operating revenues
Service	$ 988	$ 1,026	$ 2,976	$ 3,058
Equipment and product sales	263	288	760	805
Total operating revenues	1,251	1,314	3,736	3,863
Operating expenses
Cost of services (excluding Depreciation, amortization and accretion reported below)	294	305	874	891
Cost of equipment and products	291	321	848	921
Selling, general and administrative	422	440	1,246	1,299
Depreciation, amortization and accretion	209	214	632	636
Loss on impairment of goodwill	262	0	262	0
(Gain) loss on asset disposals, net	6	8	16	20
(Gain) loss on sale of business and other exit costs, net	(1)		(1)	(1)
(Gain) loss on license sales and exchanges, net		(7)	(19)	(16)
Total operating expenses	1,483	1,281	3,858	3,750
Operating income (loss)	(232)	33	(122)	113
Investment and other income (expense)
Equity in earnings of unconsolidated entities	35	38	101	109
Interest and dividend income	4	2	12	7
Interest expense	(43)	(42)	(128)	(127)
Other, net		(1)		1
Total investment and other income (expense)	(4)	(3)	(15)	(10)
Income (loss) before income taxes	(236)	30	(137)	103
Income tax expense (benefit)	(5)	14	39	45
Net income (loss)	(231)	16	(176)	58
Less: Net income (loss) attributable to noncontrolling interests, net of tax	(50)	3	(42)	9
Net income (loss) attributable to TDS shareholders	(181)	13	(134)	49
TDS Preferred dividend requirement	0
Net income available to TDS shareholders	$ (181)	$ 13	$ (134)	$ 49
Basic weighted average shares outstanding	111	110	111	110
Basic earnings (loss) per share available to TDS common shareholders	$ (1.64)	$ 0.12	$ (1.21)	$ 0.44
Diluted weighted average shares outstanding	111	111	111	111
Diluted earnings (loss) per share available to TDS common shareholders	$ (1.64)	$ 0.11	$ (1.21)	$ 0.44
Dividends per share to TDS shareholders	$ 0.155	$ 0.148	$ 0.465	$ 0.444

Consolidated Statement Of Compr

Consolidated Statement Of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (231)	$ 16	$ (176)	$ 58
Change related to retirement plan
Amortization of prior service cost			(1)	(1)
Change in deferred income taxes				1
Comprehensive income (loss)	(231)	16	(177)	58
Less: Net income (loss) attributable to noncontrolling interests, net of tax	(50)	3	(42)	9
Comprehensive income (loss) attributable to TDS shareholders	$ (181)	$ 13	$ (135)	$ 49

Consolidated Statement Of Cash

Consolidated Statement Of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net income (loss)	$ (176)	$ 58
Add (deduct) adjustments to reconcile net income (loss) to net cash flows from operating activities
Depreciation, amortization and accretion	632	636
Bad debts expense	68	72
Stock-based compensation expense	34	29
Deferred income taxes, net	(23)	11
Equity in earnings of unconsolidated entities	(101)	(109)
Distributions from unconsolidated entities	85	55
Loss on impairment of goodwill	262	0
(Gain) loss on asset disposals, net	16	20
(Gain) loss on sale of business and other exit costs, net	(1)	(1)
(Gain) loss on license sales and exchanges, net	(19)	(16)
Noncash interest	2	2
Other operating activities	0	(3)
Changes in assets and liabilities from operations
Accounts receivable	(6)	(9)
Equipment installment plans receivable	(164)	(160)
Inventory	44	3
Accounts payable	(59)	47
Customer deposits and deferred revenues	(16)	(41)
Accrued taxes	41	77
Accrued interest	11	7
Other assets and liabilities	(9)	(40)
Net cash provided by operating activities	621	638
Cash flows from investing activities
Cash paid for additions to property, plant and equipment	(398)	(426)
Cash paid for acquisitions and licenses	(200)	(46)
Cash paid for investments	(100)	0
Cash received from divestitures and exchanges	19	20
Federal Communications Commission deposit	0	(143)
Other investing activities	1	1
Net cash used in investing activities	(678)	(594)
Cash flows from financing activities
Repayment of long-term debt	(9)	(9)
Issuance of long-term debt	0	2
TDS Common Shares reissued for benefit plans, net of tax payments	(1)	7
U.S. Cellular Common Shares reissued for benefit plans, net of tax payments		4
Repurchase of TDS Common Shares	0	(3)
Repurchase of U.S. Cellular Common Shares	0	(2)
Repurchase of TDS Preferred Shares	(1)	0
Dividends paid to TDS shareholders	(51)	(49)
Payment of debt issuance costs	0	(4)
Distributions to noncontrolling interests	(2)	(1)
Other financing activities	5	11
Net cash used in financing activities	(59)	(44)
Net increase (decrease) in cash and cash equivalents	(116)
Cash and cash equivalents
Beginning of period	900	985
End of period	$ 784	$ 985

Consolidated Balance Sheet

Consolidated Balance Sheet - USD ($) $ in Millions		Sep. 30, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents		$ 784	$ 900
Short-term investments		100	0
Accounts receivable
Customers and agents, less allowances of $57 and $55, respectively		775	753
Other, less allowances of $1 and $2, respectively		96	98
Inventory, net		107	151
Prepaid expenses		109	115
Income taxes receivable		2	10
Other current assets		31	32
Total current assets		2,004	2,059
Assets held for sale		5	8
Licenses		2,234	1,895
Goodwill		508	766
Franchise rights		244	244
Other intangible assets, net of accumulated amortization of $139 and $153, respectively		26	33
Investments in unconsolidated entities		467	451
Other investments			1
Property, plant and equipment
In service and under construction		11,634	11,679
Less: Accumulated depreciation and amortization		8,297	8,124
Property, plant and equipment, net		3,337	3,555
Other assets and deferred charges		385	434
Total assets	[1]	9,210	9,446
Current liabilities
Current portion of long-term debt		20	12
Accounts payable		308	365
Customer deposits and deferred revenues		211	229
Accrued interest		22	11
Accrued taxes		72	44
Accrued compensation		112	127
Other current liabilities		84	99
Total current liabilities		829	887
Deferred liabilities and credits
Deferred income tax liability, net		898	922
Other deferred liabilities and credits		480	453
Long-term debt, net		2,443	2,433
Commitments and contingencies
Noncontrolling interests with redemption features		1	1
TDS shareholders' equity
Series A Common and Common Shares Authorized 290 shares (25 Series A Common and 265 Common Shares) Issued 133 shares (7 Series A Common and 126 Common Shares) Outstanding 111 shares (7 Series A Common and 104 Common Shares) and 110 shares (7 Series A Common and 103 Common Shares), respectively, Par Value ($.01 per share)		1	1
Capital in excess of par value		2,404	2,386
Treasury shares, at cost, 22 and 23 Common Shares, respectively		(679)	(698)
Accumulated other comprehensive income			1
Retained earnings		2,257	2,454
Total TDS shareholders' equity		3,983	4,144
Preferred shares		0	1
Noncontrolling interests		576	605
Total equity		4,559	4,750
Total liabilities and equity	[1]	$ 9,210	$ 9,446
[1]	The consolidated total assets as of September 30, 2017 and December 31, 2016 include assets held by consolidated variable interest entities (VIEs) of $757 million and $804 million, respectively, which are not available to be used to settle the obligations of TDS. The consolidated total liabilities as of September 30, 2017 and December 31, 2016 include certain liabilities of consolidated VIEs of $17 million for which the creditors of the VIEs have no recourse to the general credit of TDS. See Note 8 — Variable Interest Entities for additional information.

Consolidated Balance Sheet Pare

Consolidated Balance Sheet Parenthetical - USD ($) shares in Millions, $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Accounts receivable
Other allowances	$ 1	$ 2
Customer and agent allowances	57	55
Other intangible assets
Other intangible assets accumulated amortization	$ 139	$ 153
TDS shareholders' equity
Authorized shares	290	290
Issued shares	133	133
Outstanding shares	111	110
Variable Interest Entities VIEs
Total VIE assets that can be used to settle only the VIEs' obligations	$ 757	$ 804
Total VIE liabilities for which creditors have no recourse	$ 17	$ 17
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	104	103
Par value per share	$ 0.01	$ 0.01
Treasury shares at cost	22	23

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, 2015	$ 4,704	$ 1	$ 2,365	$ (727)		$ 2,487	$ 4,126	$ 1	$ 577
Net income (loss) attributable to TDS shareholders	49					49	49
Net income (loss) 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
Beginning balance at Dec. 31, 2016	4,750	1	2,386	(698)	$ 1	2,454	4,144	1	605
Net income (loss) attributable to TDS shareholders	(134)					(134)	(134)
Net income (loss) attributable to noncontrolling interests classified as equity	(42)								(42)
Other comprehensive income	(1)				$ (1)		(1)
TDS Common and Series A Common share dividends	(51)					(51)	(51)
Redemption of Preferred Shares	(1)							(1)
Dividend reinvestment plan	8			10		(2)	8
Incentive and compensation plans	(1)			9		(10)	(1)
Adjust investment in subsidiaries for repurchases, issuances and other compensation plans	20		5				5		15
Stock-based compensation awards	13		13				13
Distributions to noncontrolling interests	(2)								(2)
Ending balance at Sep. 30, 2017	$ 4,559	$ 1	$ 2,404	$ (679)		$ 2,257	$ 3,983	$ 0	$ 576

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2017
Basis of Presentation [Abstract]
Basis of Presentation	Telephone and Data Systems, Inc. Notes to Consolidated Financial Statements 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 LLC (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, 2017 , 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 10 — Business Segment Information for summary financial information on each business segment. 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. Certain numbers included herein are rounded to millions for ease of presentation; however, calculated amounts and percentages are determined using the unrounded numbers. 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, 2016 . 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, 2017 and December 31, 2016 , its results of operations and comprehensive income for the three and nine months ended September 30, 2017 and 2016, and its cash flows and changes in equity for the nine months ended September 30, 2017 and 2016 . These results are not necessarily indicative of the results to be expected for the full year. TDS has not changed its significant accounting and reporting policies from those disclosed in its Form 10-K for the year ended December 31, 2016 , except as described below. Equipment Installment Plans TDS equipment revenue under equipment installment plan contracts is recognized at the time the device is delivered to the end-user customer for the selling price of the device, net of any deferred imputed interest or trade-in right, if applicable. Imputed interest is reflected as a reduction to the receivable balance and recognized over the duration of the plan as Service revenues. See Note 3 — Equipment Installment Plans . Effective January 1, 2017, TDS elected to change the classification of interest income on equipment installment plan contracts from Interest and dividend income to Service revenues in the Consolidated Statement of Operations. TDS believes this classification is preferable because financing of devices as part of enrolling customers for service is an activity that is central to TDS’ operations, and it is consistent with the presentation by others in the industry. Comparative financial statements of prior years have been adjusted to apply the new classification retrospectively. As a result of this change in classification, Service revenues for the three and nine months ended September 30, 2016 , increased by $ 13 million and $ 37 million, respectively, from previously reported amounts, with a corresponding decrease in Interest and dividend income. In comparison, Service revenues for the three and nine months ended September 30, 2017 , include $ 19 million and $ 52 million, respectively, of equipment installment plan interest income. This change did not have an impact on Income before income taxes, Net income, or Earnings per share for the three or nine months ended September 30, 2016, nor did it have a cumulative impact to Retained earnings as of any date presented. Recently Adopted Accounting Pronouncements In December 2016, the FASB issued Accounting Standards Update 2016-19 Technical Corrections and Improvements (ASU 2016-19). ASU 2016-19 includes an amendment to Accounting Standards Codification Subtopic 350-40, Intangibles – Goodwill and Other – Internal-Use Software, which clarifies that a software license within the scope of the Subtopic will be accounted for as the acquisition of an intangible asset and the incurrence of a liability to the extent that the license fees are not fully paid at acquisition. TDS adopted this standard prospectively for all arrangements entered into or materially modified after January 1, 2017. In January 2017, the FASB issued Accounting Standards Update 2017-04, Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 eliminates Step 2 of the current goodwill impairment test. Goodwill impairment loss will be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value. The loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The ASU is effective prospectively for fiscal years beginning after December 15, 2019. Early adoption is permitted. TDS elected to early adopt ASU 2017-04 and applied the new guidance to interim goodwill impairment testing performed during the third quarter of 2017. See Note 6 – Intangible Assets for the discussion of TDS’ goodwill impairment. Recently Issued Accounting Pronouncements Not Yet Adopted 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 , Accounting Standards Update 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients , and Accounting Standards Update 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers . These standards replace existing revenue recognition rules with a single comprehensive model to use in accounting for revenue arising from contracts with customers. 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, ASU 2014-09 requires deferral of incremental contract acquisition and fulfillment costs and subsequent expense recognition over the contract period or expected customer life. Upon adoption, the cumulative effect adjustment is expected to include the establishment of contract asset and contract liability accounts with a corresponding adjustment to retained earnings to reflect the reallocation of revenues between service and equipment performance obligations for which control is transferred to customers in different periods. Reallocation impacts generally arise when bundle discounts are provided in a contract arrangement that includes equipment and service performance obligations. In these cases, the revenue will be reallocated according to the relative stand-alone selling prices of the performance obligations included in the bundle and this may be different than how the revenue is billed to the customer and recognized under current guidance. In addition, contract cost assets will be established to reflect costs that will be deferred as incremental contract acquisition costs. Incremental contract acquisition costs generally relate to commissions paid to sales associates. 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 did not adopt early. TDS expects to transition to the new standard under the modified retrospective transition method whereby a cumulative effect adjustment to retained earnings is recognized upon adoption and the guidance is applied prospectively. TDS has identified that new systems, processes and controls are required to adopt ASU 2014-09, as amended. TDS has substantially completed the design and development of new systems to perform revenue recognition accounting under the provisions of ASU 2014-09, as amended, and is currently engaged in the process of testing these new systems. TDS is evaluating the effects that adoption of ASU 2014-09, as amended, will have on its financial position and 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 the lessor accounting model. However, some changes to the lessor accounting guidance were made to align with lessee accounting changes within Accounting Standards Codification (ASC) 842, Leases and certain key aspects of ASC 606, Revenue from Contracts with Customers. 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 effect that adoption of ASU 2016-02 will have on its financial condition, results of operations and disclosures. 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 February 2017, the FASB issued Accounting Standards Update 2017-05, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets: Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets (ASU 2017-05). ASU 2017-05 clarifies how entities account for the derecognition of a nonfinancial asset and adds guidance for partial sales of nonfinancial assets. TDS is required to adopt ASU 2017-05 on January 1, 2018. Early adoption is permitted. The adoption of ASU 2017-05 is not expected to have a significant impact on TDS’ financial position or results of operations. In March 2017, the FASB issued Accounting Standards Update 2017-07, Compensation – Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07). ASU 2017-07 requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic benefit cost must be presented separately from the service cost component and outside of Operating income in the Consolidated Statement of Operations. The guidance also specifies that only the service cost component of net benefit cost is eligible for capitalization. TDS is required to adopt ASU 2017-07 on January 1, 2018. Early adoption is permitted. The adoption of ASU 2017-07 is not expected to have a significant impact on TDS’ results of operations. In May 2017, the FASB issued Accounting Standards Update 2017-09, Compensation – Stock Compensation (ASU 2017-09). ASU 2017-09 clarifies when changes to the terms or conditions of share-based payment awards must be accounted for as modifications. TDS is required to adopt ASU 2017-09 on January 1, 2018. Early adoption is permitted. The adoption of ASU 2017-09 is not expected to have a significant impact on TDS’ financial position or results of operations. In July 2017, the FASB issued Accounting Standards Update 2017-11, Earnings Per Share, Distinguishing Liabilities from Equity, Derivatives and Hedging: I. Accounting for Certain Financial Instruments with Down Round Features, II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception (ASU 2017-11). The amendments in Part I of ASU 2017-11 that relate to liability or equity classification of financial instruments (or embedded features) affect all entities that issue financial instruments (for example, warrants or convertible instruments) that include down round features. The amendments in Part II ASU 2017-11 do not have an accounting effect since the amendments only replace the indefinite deferral of certain guidance with a scope exception. TDS is required to adopt ASU 2017-11 on January 1, 2019. Early adoption is permitted. The adoption of ASU 2017-11 is not expected to have a significant impact on TDS’ financial position or results of operations. In August 2017, the FASB issued Accounting Standards Update 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12). ASU 2017-12 amends hedge accounting recognition and presentation requirements to improve transparency and understandability of information disclosed in the financials as well as simplifies the application of hedge accounting guidance. TDS is required to adopt ASU 2017-12 on January 1, 2019. Early adoption is permitted. The adoption of ASU 2017-12 is not expected to have a significant impact on TDS’ financial position or results of operations. Amounts Collected from Customers and Remitted to Governmental Authorities TDS records amounts collected from customers and remitted to governmental authorities on a net basis within a 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 $ 20 million and $ 58 million for the three and nine months ended September 30, 2017 , respectively, and $ 21 million and $ 65 million for the three and nine months ended September 30, 2016 , respectively.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 2 Fair Value Measurements As of September 30, 2017 and December 31, 2016 , TDS did not have any material financial or nonfinancial assets or liabilities that were required to be recorded at fair value in its Consolidated Balance Sheet in accordance with GAAP. The provisions of GAAP establish a fair value hierarchy that contains three levels for inputs used in fair value measurements. Level 1 inputs include quoted market prices for identical assets or liabilities in active markets. Level 2 inputs include quoted market prices for similar assets and liabilities in active markets or quoted market prices for identical assets and liabilities in inactive markets. Level 3 inputs are unobservable. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. A financial instrument’s level within the fair value hierarchy is not representative of its expected performance or its overall risk profile and, therefore, Level 3 assets are not necessarily higher risk than Level 2 assets or Level 1 assets. TDS has applied the provisions of fair value accounting for purposes of computing the fair value of financial instruments for disclosure purposes as displayed below. Level within the Fair Value Hierarchy September 30, 2017 December 31, 2016 Book Value Fair Value Book Value Fair Value (Dollars in millions) Cash and cash equivalents 1 $ 784 $ 784 $ 900 $ 900 Short-term Investments 1 100 100 – – Long-term debt Retail 2 1,753 1,825 1,753 1,741 Institutional 2 534 572 533 532 Other 2 199 198 208 207 The fair value of Cash and cash equivalents and Short-term investments approximate their book values due to the short-term nature of these financial instruments. Long-term debt excludes capital lease obligations, product financing arrangements, the current portion of Long-term debt and debt financing costs. The fair value of “Retail” Long-term debt was estimated using market prices for 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% 2063 Senior Notes and 7.25% 2064 Senior Notes. TDS’ “Institutional” debt consists of U.S. Cellular’s 6.7% Senior Notes which are traded over the counter. TDS’ “Other” debt consists of a senior term loan credit facility and other borrowings with financial institutions. TDS estimated the fair value of its Institutional and Other debt through a discounted cash flow analysis using the interest rates or estimated yield to maturity for each borrowing, which ranged from 0.00% to 6.63% and 0.00% to 6.93% at September 30, 2017 and December 31, 2016 , respectively.

Equipment Installment Plans

Equipment Installment Plans	9 Months Ended
	Sep. 30, 2017
Receivables [Abstract]
Equipment Installment Plans	Note 3 Equipment Installment Plans TDS sells devices to customers under equipment installment contracts over a specified time period. For certain equipment installment plans, after a specified period of time or amount of payments, the customer may have the right to upgrade to a new device and have the remaining unpaid equipment installment contract balance waived, subject to certain conditions, including trading in the original device in good working condition and signing a new equipment installment contract. 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. When a customer exercises the trade-in option, both the outstanding receivable and guarantee liability balances related to the respective device are reduced to zero, and the value of the used device that is received in the transaction is recognized as inventory. If the customer does not exercise the trade-in option at the time of eligibility, TDS begins amortizing the liability and records this amortization as additional equipment revenue. As of September 30, 2017 and December 31, 2016 , the guarantee liability related to these plans was $ 20 million and $ 33 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. Because equipment installment plans have a duration of greater than twelve months, TDS imputes interest. TDS records imputed interest as a reduction to the related accounts receivable and recognizes it over the term of the installment agreement. Equipment installment plan receivables had a weighted average effective imputed interest rate of 12.2% and 11.2% as of September 30, 2017 and December 31, 2016 , respectively. The following table summarizes equipment installment plan receivables as of September 30, 2017 and December 31, 2016 . September 30, 2017 December 31, 2016 (Dollars in millions) Equipment installment plan receivables, gross $ 776 $ 628 Deferred interest (69) (53) Equipment installment plan receivables, net of deferred interest 707 575 Allowance for credit losses (58) (50) Equipment installment plan receivables, net $ 649 $ 525 Net balance presented in the Consolidated Balance Sheet as: Accounts receivable — Customers and agents (Current portion) $ 387 $ 345 Other assets and deferred charges (Non-current portion) 262 180 Equipment installment plan receivables, net $ 649 $ 525 TDS uses various inputs, including internal data, information from the credit bureaus and other sources, to evaluate the credit profiles of its customers. From this evaluation, a credit class is assigned to the customer that determines the number of eligible lines, the amount of credit available, and the down payment requirement, if any. Customers assigned to credit classes requiring no down payment represent a lower risk category, whereas those assigned to credit classes requiring a down payment represent a higher risk category. The balance and aging of the equipment installment plan receivables on a gross basis by credit category were as follows: September 30, 2017 December 31, 2016 Lower Risk Higher Risk Total Lower Risk Higher Risk Total (Dollars in millions) Unbilled $ 713 $ 24 $ 737 $ 553 $ 38 $ 591 Billed — current 26 1 27 23 2 25 Billed — past due 10 2 12 10 2 12 Equipment installment plan receivables, gross $ 749 $ 27 $ 776 $ 586 $ 42 $ 628 Activity for the nine months ended September 30, 2017 and 2016 , in the allowance for credit losses balance for the equipment installment plan receivables was as follows: September 30, 2017 September 30, 2016 (Dollars in millions) Allowance for credit losses, beginning of period $ 50 $ 26 Bad debts expense 42 46 Write-offs, net of recoveries (34) (28) Allowance for credit losses, end of period $ 58 $ 44

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Earnings per Share	N ote 4 Earnings Per Share Basic earnings per share available to TDS common shareholders is computed by dividing Net income (loss) 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 (loss) 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 performance and 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, 2017 2016 2017 2016 (Dollars and shares in millions, except per share amounts) Basic earnings (loss) per share available to TDS common shareholders: Net income (loss) available to TDS common shareholders used in basic earnings (loss) per share $ (181) $ 13 $ (134) $ 49 Adjustments to compute diluted earnings (loss): Noncontrolling interest adjustment – – – (1) Net income (loss) available to TDS common shareholders used in diluted earnings (loss) per share $ (181) $ 13 $ (134) $ 48 Weighted average number of shares used in basic earnings (loss) per share: Common Shares 104 103 104 103 Series A Common Shares 7 7 7 7 Total 111 110 111 110 Effects of dilutive securities – 1 – 1 Weighted average number of shares used in diluted earnings (loss) per share 111 111 111 111 Basic earnings (loss) per share available to TDS common shareholders $ (1.64) $ 0.12 $ (1.21) $ 0.44 Diluted earnings (loss) per share available to TDS common shareholders $ (1.64) $ 0.11 $ (1.21) $ 0.44 Certain Common Shares issuable upon the exercise of stock options, vesting of performance and restricted stock units or conversion of preferred shares were not included in average diluted shares outstanding for the calculation of Diluted earnings (loss) per share available to TDS common shareholders because their effects were antidilutive. The number of such Common Shares excluded was 5 million shares and 6 million shares for the three and nine months ended September 30, 2017 , respectively, and 4 million shares for both the three and nine months ended September 30, 2016 .

Acquisitions Divestures And Exc

Acquisitions Divestures And Exchanges	9 Months Ended
	Sep. 30, 2017
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 was 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 occurred in the first quarter of 2017, at which time U.S. Cellular received $ 15 million of cash and recorded a gain of $ 17 million. In July 2016, the FCC announced U.S. Cellular as a qualified bidder in the FCC’s forward auction of 600 MHz spectrum licenses, referred to as Auction 1002. Prior to commencement of the forward auction, U.S. Cellular made an upfront payment to the FCC of $ 143 million in June 2016 to establish its initial bidding eligibility. In April 2017, the FCC announced by way of public notice that U.S. Cellular was the winning bidder for 188 licenses for an aggregate purchase price of $ 329 million. U.S. Cellular paid the remaining $ 186 million to the FCC and was granted the licenses during the second quarter of 2017.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Note 6 Intangible Assets Activity related to Licenses and Goodwill for the nine months ended September 30, 2017 , is presented below. There were no changes to Franchise rights during the nine months ended September 30, 2017 . Prior to 2009, TDS accounted for U.S. Cellular’s share repurchases as step acquisitions, allocating a portion of the share repurchase value to TDS’ Licenses and Goodwill. Further, a goodwill impairment loss on the U.S. Cellular reporting unit was recognized in 2003 at TDS but not at U.S. Cellular. Consequently, U.S. Cellular’s Licenses and Goodwill on a stand-alone basis do not equal the TDS consolidated Licenses and Goodwill related to U.S. Cellular. Licenses (Dollars in millions) Balance December 31, 2016 $ 1,895 Acquisitions 331 Transferred to Assets held for sale (5) Exchanges - Licenses received 18 Exchanges - Licenses surrendered (5) Balance September 30, 2017 $ 2,234 Goodwill U.S. Cellular Wireline Cable HMS Total (Dollars in millions) Balance December 31, 2016 $ 227 $ 409 $ 95 $ 35 $ 766 Acquisitions – – 4 – 4 Loss on impairment (227) – – (35) (262) Balance September 30, 2017 $ – $ 409 $ 99 $ – $ 508 Accumulated impairment losses in prior periods were $ 334 million for U.S. Cellular, $ 29 million for Wireline, $ 84 million for HMS, and $ 4 million for Corporate and Other. Goodwill Interim Impairment Assessment U.S. Cellular U.S. Cellular operates in an intensely competitive wireless industry environment and has experienced declining service revenues in recent periods. Based on recent 2017 developments, including wireless expansion plans announced by other companies and the results of the FCC’s forward auction of 600 MHz spectrum licenses and other FCC actions, U.S. Cellular anticipates increased competition for customers in its primary operating markets from new and existing market participants over the long term. In addition, the widening adoption of unlimited data plans and other data pricing constructs across the industry, including U.S. Cellular’s introduction of unlimited plans earlier in 2017, may limit the industry’s ability to monetize future growth in data usage. These factors when assessed and considered as part of its annual planning process conducted in the third quarter of each year caused management to revise its long-range financial forecast in the third quarter of 2017. Based on the factors noted above, management identified a triggering event and performed a quantitative goodwill impairment test on an interim basis. As permitted by ASU 2017-04, TDS used a one-step quantitative approach that compared the fair value of the U.S. Cellular reporting unit to its carrying value. A discounted cash flow approach was used to value the reporting unit, using value drivers and risks specific to U.S. Cellular and the industry and current economic factors. The cash flow estimates incorporated certain assumptions that market participants would use in their estimates of fair value and may not be indicative of U.S. Cellular specific assumptions. However, the discount rate used in the analysis considers any additional risk a market participant might place on integrating the U.S. Cellular reporting unit into its operations. The most significant assumptions made in this process were the revenue growth rate (shown as a compound annual growth rate in the table below), the terminal revenue growth rate, and the discount rate. The following table represents key assumptions used in estimating the fair value of the U.S. Cellular reporting unit as using the discounted cash flow approach. Key assumptions Revenue growth rate 0.8% Terminal revenue growth rate 2.0% Discount rate 9.5% The results of the interim goodwill impairment test indicated that the carrying value of the U.S. Cellular reporting unit exceeded its fair value. Therefore, TDS recognized a loss on impairment of goodwill of $227 million to reduce the carrying value of goodwill for the U.S. Cellular reporting unit to zero. In connection with the interim goodwill impairment test, conditions existed that indicated U.S. Cellular’s long-lived asset group might not be recoverable. As a result, the company performed an interim long-lived asset recoverability assessment related to the U.S. Cellular asset group and determined that no impairment of the long-lived asset group existed as of the interim assessment date. HMS HMS has continued to experience slower than expected service revenue growth in 2017 due primarily to the competitive nature of the hosted and managed services industry, and the portfolio of services offered by HMS compared to the industry overall. Further, revenue mix has been trending towards a higher proportion of lower margin revenue streams. These factors when assessed and considered as part of its annual planning process caused HMS management to revise its long-range forecast in the third quarter of 2017. Based on the factors noted above, management identified a triggering event and performed a quantitative goodwill impairment test on an interim basis. No other triggering events for indefinite-lived intangible assets or long-lived assets were identified. TDS used a one-step quantitative approach that compared the fair value of the HMS reporting unit to its carrying value. TDS used the discounted cash flow approach and guideline public company method to value the HMS reporting unit. The discounted cash flow approach uses value drivers and considers risks specific to the industry as well as current economic factors. The most significant assumptions made in this process were the revenue growth rate (shown as a compound annual growth rate in the table below), the terminal revenue growth rate and the discount rate. The guideline public company method develops an indication of fair value by calculating average market pricing multiples for selected publicly-traded companies. The developed multiples were applied to applicable financial measures of the HMS reporting unit to determine fair value. The discounted cash flow approach and guideline public company method were weighted to arrive at the total fair value used for impairment testing. The weighting of methods was consistently applied in both 2017 and 2016. The following table represents key assumptions used in estimating the fair value of the HMS reporting unit using the discounted cash flow approach. Key assumptions Revenue growth rate 3.8% Terminal revenue growth rate 2.5% Discount rate 10.5% The results of the interim goodwill impairment test indicated that the carrying value of the HMS reporting unit exceeded its fair value. Therefore, TDS recognized a loss on impairment of goodwill of $35 million to reduce the carrying value of goodwill for the HMS reporting unit to zero.

Investments In Unconsolidated E

Investments In Unconsolidated Entities	9 Months Ended
	Sep. 30, 2017
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, 2017 2016 2017 2016 (Dollars in millions) Revenues $ 1,596 $ 1,679 $ 4,848 $ 5,008 Operating expenses 1,184 1,254 3,631 3,662 Operating income 412 425 1,217 1,346 Other expense, net (2) (2) (4) (10) Net income $ 410 $ 423 $ 1,213 $ 1,336

Variable Interest Entities

Variable Interest Entities	9 Months Ended
	Sep. 30, 2017
Variable Interest Entities [Abstract]
Variable Interest Entities	Note 8 Variable Interest Entities 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, 2016 . During the first quarter of 2017, U.S. Cellular formed USCC EIP LLC, a special purpose entity (SPE), to facilitate a potential securitized borrowing using its equipment installment plan receivables in the future. Under a Receivables Sale Agreement, U.S. Cellular wholly-owned, majority-owned and unconsolidated entities, collectively referred to as “affiliated entities”, transfer device equipment installment contracts to USCC EIP LLC. This SPE will aggregate device equipment installment plan contracts for further transfer into a separate bankruptcy remote securitization trust structure, perform servicing, collection and all other administrative activities related to accounting for equipment installment plan contracts. USCC EIP LLC’s sole business consists of the acquisition of the receivables from U.S. Cellular affiliated entities for the future transfer of receivables into a trust. Given that U.S. Cellular has the power to direct the activities of this SPE, and that this SPE lacks sufficient equity to finance its activities, U.S. Cellular is deemed to have a controlling financial interest in the SPE and, therefore, consolidates it. During the nine months ended September 30, 2017 , net equipment installment plan receivables totaling $ 1,093 million were transferred to the newly formed SPE from affiliated entities. There were no receivables transferred as of December 31, 2016. Because TDS fully consolidates USCC EIP LLC, the transfer of receivables into this SPE did not have a material impact to the consolidated financial statements of TDS. As of September 30, 2017 , TDS had not executed a securitized borrowing from a third party specific to its equipment installment plan receivables. 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 Sunshine Spectrum, Inc. (Sunshine Spectrum), the general partner of Advantage Spectrum (former general partner was Frequency Advantage, L.P. (Frequency Advantage)); 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. 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 January 2017, Sunshine Spectrum and the other owner of Frequency Advantage (the previous general partner of Advantage Spectrum) completed a series of transactions whereby Frequency Advantage was dissolved and Sunshine Spectrum became the new general partner of Advantage Spectrum. Consistent with its previous treatment of Frequency Advantage and in accordance with GAAP, TDS consolidates Sunshine Spectrum in its financial statements. TDS also consolidates other VIEs that are limited partnerships that provide wireless service. A limited partnership is a variable interest entity unless the limited partners hold substantive participating rights or kick-out rights over the general partner. For certain limited partnerships, 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, these limited partnerships are also recognized as VIEs and are consolidated under the variable interest model. The following table presents the classification and balances of the consolidated VIEs’ assets and liabilities in TDS’ Consolidated Balance Sheet. September 30, December 31, 2017 2016 (Dollars in millions) Assets Cash and cash equivalents $ 1 $ 2 Accounts receivable 430 39 Other current assets 6 6 Licenses 649 649 Property, plant and equipment, net 87 93 Other assets and deferred charges 264 15 Total assets $ 1,437 $ 804 Liabilities Current liabilities $ 36 $ 18 Deferred liabilities and credits 12 12 Total liabilities $ 48 $ 30 Unconsolidated VIEs TDS manages the operations of and holds a variable interest in certain other limited partnerships, but is not the primary beneficiary of these entities and, therefore, does not consolidate them under the variable interest model. TDS’ total investment in these unconsolidated entities was $ 4 million and $ 6 million at September 30, 2017 and December 31, 2016 , 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 $ 724 million, of which $ 701 million is related to USCC EIP LLC as discussed above, and $ 100 million during the nine months ended September 30, 2017 and September 30, 2016 , 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.

Noncontrolling Interests

Noncontrolling Interests	9 Months Ended
	Sep. 30, 2017
Noncontrolling Interests [Abstract]
Noncontrolling Interests	Note 9 Noncontrolling Interests The following schedule discloses the effects of Net income (loss) attributable to TDS shareholders and changes in TDS’ ownership interest in U.S. Cellular on TDS’ equity: Nine Months Ended September 30, 2017 2016 (Dollars in millions) Net income (loss) attributable to TDS shareholders $ (134) $ 49 Transfers to noncontrolling interests Change in TDS' Capital in excess of par value from U.S. Cellular's issuance of U.S. Cellular shares (12) (15) Change in TDS' Capital in excess of par value from U.S. Cellular's repurchases of U.S. Cellular shares – – Purchase of ownership in subsidiaries from noncontrolling interests – – Net transfers to noncontrolling interests (12) (15) Change from net income (loss) attributable to TDS and transfers to noncontrolling interests $ (146) $ 34

Business Segment Information

Business Segment Information	9 Months Ended
	Sep. 30, 2017
Business Segment Information [Abstract]
Business Segment Information	Note 10 Business Segment Information U.S. Cellular and TDS Telecom are billed for all services they receive from TDS, consisting primarily of information processing, accounting and finance, and general management services. Such billings are based on expenses specifically identified to U.S. Cellular and TDS Telecom and on allocations of common expenses. Management believes the method used to allocate common expenses is reasonable 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, 2017 and 2016 , is as follows. See Note 1 — Basis of Presentation for additional information. TDS Telecom Three Months Ended or as of September 30, 2017 U.S. Cellular Wireline Cable HMS TDS Telecom Eliminations TDS Telecom Total Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service 1 $ 737 $ 178 $ 52 $ 28 $ (1) $ 257 $ (6) $ 988 Equipment and product sales 226 – – 27 – 28 9 263 Total operating revenues 1 963 179 52 56 (1) 285 3 1,251 Cost of services (excluding Depreciation, amortization and accretion reported below) 185 66 25 21 (1) 110 (1) 294 Cost of equipment and products 261 – – 22 – 23 7 291 Selling, general and administrative 350 49 13 11 – 73 (1) 422 Depreciation, amortization and accretion 153 38 11 7 – 56 – 209 Loss on impairment of goodwill 2 370 – – 35 – 35 (143) 262 (Gain) loss on asset disposals, net 5 – 1 – – 1 – 6 (Gain) loss on sale of business and other exit costs, net (1) – – – – – – (1) Operating income (loss) 1 (360) 26 2 (41) – (13) 141 (232) Equity in earnings of unconsolidated entities 35 – – – – – – 35 Interest and dividend income 1 2 2 – – – 2 – 4 Interest expense (28) – – (1) – (1) (14) (43) Other, net – – – – – – – – Income (loss) before income taxes (351) 28 2 (42) – (12) 127 (236) Income tax expense (benefit) 3 (53) 3 45 (5) Net income (loss) (298) (15) 82 (231) Add back: Depreciation, amortization and accretion 153 38 11 7 – 56 – 209 Loss on impairment of goodwill 2 370 – – 35 – 35 (143) 262 (Gain) loss on asset disposals, net 5 – 1 – – 1 – 6 (Gain) loss on sale of business and other exit costs, net (1) – – – – – – (1) Interest expense 28 – – 1 – 1 14 43 Income tax expense (benefit) 3 (53) 3 45 (5) Adjusted EBITDA 4 $ 204 $ 66 $ 14 $ 1 $ – $ 80 $ (1) $ 283 Investments in unconsolidated entities $ 429 $ 4 $ – $ – $ – $ 4 $ 34 $ 467 Total assets $ 6,780 $ 1,201 $ 619 $ 208 $ – $ 2,028 $ 402 $ 9,210 Capital expenditures $ 112 $ 41 $ 14 $ 2 $ – $ 58 $ 2 $ 172 Numbers may not foot due to rounding. 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 1 $ 784 $ 174 $ 46 $ 29 $ (1) $ 248 $ (6) $ 1,026 Equipment and product sales 239 – – 39 – 39 10 288 Total operating revenues 1 1,023 175 46 68 (1) 287 4 1,314 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 5 155 41 9 7 – 57 2 214 (Gain) loss on asset disposals, net 7 1 1 – – 2 (1) 8 (Gain) loss on sale of business and other exit costs, net – – – – – – – – (Gain) loss on license sales and exchanges, net (7) – – – – – – (7) Operating income (loss) 1 22 16 – (5) – 12 (1) 33 Equity in earnings of unconsolidated entities 38 – – – – – – 38 Interest and dividend income 1 1 1 – – – 1 – 2 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) 3 15 4 (5) 14 Net income (loss) 18 7 (9) 16 Add back: Depreciation, amortization and accretion 5 155 41 9 7 – 57 2 214 (Gain) loss on asset disposals, net 7 1 1 – – 2 (1) 8 (Gain) loss on sale of business and other exit costs, net – – – – – – – – (Gain) loss on license sales and exchanges, net (7) – – – – – – (7) Interest expense 28 – – 1 – 1 13 42 Income tax expense (benefit) 3 15 – – – – 4 (5) 14 Adjusted EBITDA 4 $ 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 Nine Months Ended or as of September 30, 2017 U.S. Cellular Wireline Cable HMS TDS Telecom Eliminations TDS Telecom Total Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service 1 $ 2,223 $ 537 $ 152 $ 84 $ (3) $ 770 $ (17) $ 2,976 Equipment and product sales 639 1 – 93 – 94 27 760 Total operating revenues 1 2,862 538 152 178 (3) 865 9 3,736 Cost of services (excluding Depreciation, amortization and accretion reported below) 549 194 73 63 (3) 327 (2) 874 Cost of equipment and products 749 2 – 77 – 79 20 848 Selling, general and administrative 1,041 145 39 32 – 215 (10) 1,246 Depreciation, amortization and accretion 460 114 32 21 – 166 6 632 Loss on impairment of goodwill 2 370 – – 35 – 35 (143) 262 (Gain) loss on asset disposals, net 14 1 1 – – 2 – 16 (Gain) loss on sale of business and other exit costs, net (1) – – – – – – (1) (Gain) loss on license sales and exchanges, net (19) – – – – – – (19) Operating income (loss) 1 (301) 84 7 (50) – 41 138 (122) Equity in earnings of unconsolidated entities 101 – – – – – – 101 Interest and dividend income 1 6 4 – – – 4 2 12 Interest expense (85) – – (3) – (3) (40) (128) Other, net 1 – – – – – (1) – Income (loss) before income taxes (278) 88 7 (53) – 42 99 (137) Income tax expense (benefit) 3 (19) 24 34 39 Net income (loss) (259) 18 65 (176) Add back: Depreciation, amortization and accretion 460 114 32 21 – 166 6 632 Loss on impairment of goodwill 2 370 – – 35 – 35 (143) 262 (Gain) loss on asset disposals, net 14 1 1 – – 2 – 16 (Gain) loss on sale of business and other exit costs, net (1) – – – – – – (1) (Gain) loss on license sales and exchanges, net (19) – – – – – – (19) Interest expense 85 – – 3 – 3 40 128 Income tax expense (benefit) 3 (19) 24 34 39 Adjusted EBITDA 4 $ 631 $ 202 $ 41 $ 6 $ – $ 248 $ 2 $ 881 Investments in unconsolidated entities $ 429 $ 4 $ – $ – $ – $ 4 $ 34 $ 467 Total assets $ 6,780 $ 1,201 $ 619 $ 208 $ – $ 2,028 $ 402 $ 9,210 Capital expenditures $ 257 $ 91 $ 35 $ 13 $ – $ 139 $ 6 $ 402 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 1 $ 2,330 $ 522 $ 136 $ 91 $ (3) $ 746 $ (18) $ 3,058 Equipment and product sales 655 1 – 121 – 123 27 805 Total operating revenues 1 2,985 523 137 212 (3) 868 10 3,863 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 5 462 119 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) 1 63 61 1 (9) – 53 (3) 113 Equity in earnings of unconsolidated entities 110 – – – – – (1) 109 Interest and dividend income 1 4 2 – – – 2 1 7 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) 3 39 20 (14) 45 Net income (loss) 54 32 (28) 58 Add back: Depreciation, amortization and accretion 5 462 119 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) 3 39 20 (14) 45 Adjusted EBITDA 4 $ 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. 1 Equipment installment plan interest income is reflected as a component of Service revenues consistent with an accounting policy change effective January 1, 2017. All prior period numbers have been recast to conform to this accounting change. See Note 1 — Basis of Presentation for additional details. 2 During the three months ended September 30, 2017, U.S. Cellular recorded a goodwill impairment of $370 million while TDS recorded a goodwill impairment of the U.S. Cellular reporting unit of $227 million. Prior to 2009, TDS accounted for U.S. Cellular's share repurchases as step acquisitions, allocating a portion of the share repurchase value to TDS' Goodwill. Further, goodwill of the U.S. Cellular reporting unit was impaired at the TDS level in 2003 but not at U.S. Cellular. Consequently, U.S. Cellular's goodwill on a stand-alone basis and any resulting impairments of goodwill does not equal the TDS consolidated goodwill related to U.S. Cellular. For further information on the goodwill impairment see Note 6 — Intangible Assets in the Notes to Consolidated Financial Statements. 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 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. 5 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 determined that this adjustment was not material to the quarterly periods or the annual results for 2016. 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Significant Accounting Policies)	9 Months Ended
	Sep. 30, 2017
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 LLC (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, 2017 , 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 10 — 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. Certain numbers included herein are rounded to millions for ease of presentation; however, calculated amounts and percentages are determined using the unrounded numbers. 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, 2016 . 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, 2017 and December 31, 2016 , its results of operations and comprehensive income for the three and nine months ended September 30, 2017 and 2016, and its cash flows and changes in equity for the nine months ended September 30, 2017 and 2016 . These results are not necessarily indicative of the results to be expected for the full year. TDS has not changed its significant accounting and reporting policies from those disclosed in its Form 10-K for the year ended December 31, 2016 , except as described below.
New Accounting Pronouncements and Changes in Accounting Principles	Equipment Installment Plans TDS equipment revenue under equipment installment plan contracts is recognized at the time the device is delivered to the end-user customer for the selling price of the device, net of any deferred imputed interest or trade-in right, if applicable. Imputed interest is reflected as a reduction to the receivable balance and recognized over the duration of the plan as Service revenues. See Note 3 — Equipment Installment Plans . Effective January 1, 2017, TDS elected to change the classification of interest income on equipment installment plan contracts from Interest and dividend income to Service revenues in the Consolidated Statement of Operations. TDS believes this classification is preferable because financing of devices as part of enrolling customers for service is an activity that is central to TDS’ operations, and it is consistent with the presentation by others in the industry. Comparative financial statements of prior years have been adjusted to apply the new classification retrospectively. As a result of this change in classification, Service revenues for the three and nine months ended September 30, 2016 , increased by $ 13 million and $ 37 million, respectively, from previously reported amounts, with a corresponding decrease in Interest and dividend income. In comparison, Service revenues for the three and nine months ended September 30, 2017 , include $ 19 million and $ 52 million, respectively, of equipment installment plan interest income. This change did not have an impact on Income before income taxes, Net income, or Earnings per share for the three or nine months ended September 30, 2016, nor did it have a cumulative impact to Retained earnings as of any date presented. Recently Adopted Accounting Pronouncements In December 2016, the FASB issued Accounting Standards Update 2016-19 Technical Corrections and Improvements (ASU 2016-19). ASU 2016-19 includes an amendment to Accounting Standards Codification Subtopic 350-40, Intangibles – Goodwill and Other – Internal-Use Software, which clarifies that a software license within the scope of the Subtopic will be accounted for as the acquisition of an intangible asset and the incurrence of a liability to the extent that the license fees are not fully paid at acquisition. TDS adopted this standard prospectively for all arrangements entered into or materially modified after January 1, 2017. In January 2017, the FASB issued Accounting Standards Update 2017-04, Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 eliminates Step 2 of the current goodwill impairment test. Goodwill impairment loss will be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value. The loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The ASU is effective prospectively for fiscal years beginning after December 15, 2019. Early adoption is permitted. TDS elected to early adopt ASU 2017-04 and applied the new guidance to interim goodwill impairment testing performed during the third quarter of 2017. See Note 6 – Intangible Assets for the discussion of TDS’ goodwill impairment.
Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Issued Accounting Pronouncements Not Yet Adopted 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 , Accounting Standards Update 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients , and Accounting Standards Update 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers . These standards replace existing revenue recognition rules with a single comprehensive model to use in accounting for revenue arising from contracts with customers. 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, ASU 2014-09 requires deferral of incremental contract acquisition and fulfillment costs and subsequent expense recognition over the contract period or expected customer life. Upon adoption, the cumulative effect adjustment is expected to include the establishment of contract asset and contract liability accounts with a corresponding adjustment to retained earnings to reflect the reallocation of revenues between service and equipment performance obligations for which control is transferred to customers in different periods. Reallocation impacts generally arise when bundle discounts are provided in a contract arrangement that includes equipment and service performance obligations. In these cases, the revenue will be reallocated according to the relative stand-alone selling prices of the performance obligations included in the bundle and this may be different than how the revenue is billed to the customer and recognized under current guidance. In addition, contract cost assets will be established to reflect costs that will be deferred as incremental contract acquisition costs. Incremental contract acquisition costs generally relate to commissions paid to sales associates. 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 did not adopt early. TDS expects to transition to the new standard under the modified retrospective transition method whereby a cumulative effect adjustment to retained earnings is recognized upon adoption and the guidance is applied prospectively. TDS has identified that new systems, processes and controls are required to adopt ASU 2014-09, as amended. TDS has substantially completed the design and development of new systems to perform revenue recognition accounting under the provisions of ASU 2014-09, as amended, and is currently engaged in the process of testing these new systems. TDS is evaluating the effects that adoption of ASU 2014-09, as amended, will have on its financial position and 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 the lessor accounting model. However, some changes to the lessor accounting guidance were made to align with lessee accounting changes within Accounting Standards Codification (ASC) 842, Leases and certain key aspects of ASC 606, Revenue from Contracts with Customers. 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 effect that adoption of ASU 2016-02 will have on its financial condition, results of operations and disclosures. 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 February 2017, the FASB issued Accounting Standards Update 2017-05, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets: Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets (ASU 2017-05). ASU 2017-05 clarifies how entities account for the derecognition of a nonfinancial asset and adds guidance for partial sales of nonfinancial assets. TDS is required to adopt ASU 2017-05 on January 1, 2018. Early adoption is permitted. The adoption of ASU 2017-05 is not expected to have a significant impact on TDS’ financial position or results of operations. In March 2017, the FASB issued Accounting Standards Update 2017-07, Compensation – Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07). ASU 2017-07 requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic benefit cost must be presented separately from the service cost component and outside of Operating income in the Consolidated Statement of Operations. The guidance also specifies that only the service cost component of net benefit cost is eligible for capitalization. TDS is required to adopt ASU 2017-07 on January 1, 2018. Early adoption is permitted. The adoption of ASU 2017-07 is not expected to have a significant impact on TDS’ results of operations. In May 2017, the FASB issued Accounting Standards Update 2017-09, Compensation – Stock Compensation (ASU 2017-09). ASU 2017-09 clarifies when changes to the terms or conditions of share-based payment awards must be accounted for as modifications. TDS is required to adopt ASU 2017-09 on January 1, 2018. Early adoption is permitted. The adoption of ASU 2017-09 is not expected to have a significant impact on TDS’ financial position or results of operations. In July 2017, the FASB issued Accounting Standards Update 2017-11, Earnings Per Share, Distinguishing Liabilities from Equity, Derivatives and Hedging: I. Accounting for Certain Financial Instruments with Down Round Features, II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception (ASU 2017-11). The amendments in Part I of ASU 2017-11 that relate to liability or equity classification of financial instruments (or embedded features) affect all entities that issue financial instruments (for example, warrants or convertible instruments) that include down round features. The amendments in Part II ASU 2017-11 do not have an accounting effect since the amendments only replace the indefinite deferral of certain guidance with a scope exception. TDS is required to adopt ASU 2017-11 on January 1, 2019. Early adoption is permitted. The adoption of ASU 2017-11 is not expected to have a significant impact on TDS’ financial position or results of operations. In August 2017, the FASB issued Accounting Standards Update 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12). ASU 2017-12 amends hedge accounting recognition and presentation requirements to improve transparency and understandability of information disclosed in the financials as well as simplifies the application of hedge accounting guidance. TDS is required to adopt ASU 2017-12 on January 1, 2019. Early adoption is permitted. The adoption of ASU 2017-12 is not expected to have a significant impact on TDS’ financial position or results of operations.
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, 2016 .

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2017
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, 2017 December 31, 2016 Book Value Fair Value Book Value Fair Value (Dollars in millions) Cash and cash equivalents 1 $ 784 $ 784 $ 900 $ 900 Short-term Investments 1 100 100 – – Long-term debt Retail 2 1,753 1,825 1,753 1,741 Institutional 2 534 572 533 532 Other 2 199 198 208 207

Equipment Installment Plans (Ta

Equipment Installment Plans (Table)	9 Months Ended
	Sep. 30, 2017
Receivables [Abstract]
Equipment installment plan receivables	The following table summarizes equipment installment plan receivables as of September 30, 2017 and December 31, 2016 . September 30, 2017 December 31, 2016 (Dollars in millions) Equipment installment plan receivables, gross $ 776 $ 628 Deferred interest (69) (53) Equipment installment plan receivables, net of deferred interest 707 575 Allowance for credit losses (58) (50) Equipment installment plan receivables, net $ 649 $ 525 Net balance presented in the Consolidated Balance Sheet as: Accounts receivable — Customers and agents (Current portion) $ 387 $ 345 Other assets and deferred charges (Non-current portion) 262 180 Equipment installment plan receivables, net $ 649 $ 525
Equipment installment plan receivables credit categories	The balance and aging of the equipment installment plan receivables on a gross basis by credit category were as follows: September 30, 2017 December 31, 2016 Lower Risk Higher Risk Total Lower Risk Higher Risk Total (Dollars in millions) Unbilled $ 713 $ 24 $ 737 $ 553 $ 38 $ 591 Billed — current 26 1 27 23 2 25 Billed — past due 10 2 12 10 2 12 Equipment installment plan receivables, gross $ 749 $ 27 $ 776 $ 586 $ 42 $ 628
Equipment installment plans allowance for credit losses	Activity for the nine months ended September 30, 2017 and 2016 , in the allowance for credit losses balance for the equipment installment plan receivables was as follows: September 30, 2017 September 30, 2016 (Dollars in millions) Allowance for credit losses, beginning of period $ 50 $ 26 Bad debts expense 42 46 Write-offs, net of recoveries (34) (28) Allowance for credit losses, end of period $ 58 $ 44

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2017
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, 2017 2016 2017 2016 (Dollars and shares in millions, except per share amounts) Basic earnings (loss) per share available to TDS common shareholders: Net income (loss) available to TDS common shareholders used in basic earnings (loss) per share $ (181) $ 13 $ (134) $ 49 Adjustments to compute diluted earnings (loss): Noncontrolling interest adjustment – – – (1) Net income (loss) available to TDS common shareholders used in diluted earnings (loss) per share $ (181) $ 13 $ (134) $ 48 Weighted average number of shares used in basic earnings (loss) per share: Common Shares 104 103 104 103 Series A Common Shares 7 7 7 7 Total 111 110 111 110 Effects of dilutive securities – 1 – 1 Weighted average number of shares used in diluted earnings (loss) per share 111 111 111 111 Basic earnings (loss) per share available to TDS common shareholders $ (1.64) $ 0.12 $ (1.21) $ 0.44 Diluted earnings (loss) per share available to TDS common shareholders $ (1.64) $ 0.11 $ (1.21) $ 0.44

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2017
Licenses
Licenses	Licenses (Dollars in millions) Balance December 31, 2016 $ 1,895 Acquisitions 331 Transferred to Assets held for sale (5) Exchanges - Licenses received 18 Exchanges - Licenses surrendered (5) Balance September 30, 2017 $ 2,234
Goodwill
Goodwill	Goodwill U.S. Cellular Wireline Cable HMS Total (Dollars in millions) Balance December 31, 2016 $ 227 $ 409 $ 95 $ 35 $ 766 Acquisitions – – 4 – 4 Loss on impairment (227) – – (35) (262) Balance September 30, 2017 $ – $ 409 $ 99 $ – $ 508
Fair Value Inputs
Fair Value Key Assumptions	The following table represents key assumptions used in estimating the fair value of the U.S. Cellular reporting unit as using the discounted cash flow approach. Key assumptions Revenue growth rate 0.8% Terminal revenue growth rate 2.0% Discount rate 9.5% The following table represents key assumptions used in estimating the fair value of the HMS reporting unit using the discounted cash flow approach. Key assumptions Revenue growth rate 3.8% Terminal revenue growth rate 2.5% Discount rate 10.5%

Investment in Unconsolidated En

Investment in Unconsolidated Entities (Tables)	9 Months Ended
	Sep. 30, 2017
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, 2017 2016 2017 2016 (Dollars in millions) Revenues $ 1,596 $ 1,679 $ 4,848 $ 5,008 Operating expenses 1,184 1,254 3,631 3,662 Operating income 412 425 1,217 1,346 Other expense, net (2) (2) (4) (10) Net income $ 410 $ 423 $ 1,213 $ 1,336

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	9 Months Ended
	Sep. 30, 2017
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, 2017 2016 (Dollars in millions) Assets Cash and cash equivalents $ 1 $ 2 Accounts receivable 430 39 Other current assets 6 6 Licenses 649 649 Property, plant and equipment, net 87 93 Other assets and deferred charges 264 15 Total assets $ 1,437 $ 804 Liabilities Current liabilities $ 36 $ 18 Deferred liabilities and credits 12 12 Total liabilities $ 48 $ 30

Noncontrolling Interests (Table

Noncontrolling Interests (Tables)	9 Months Ended
	Sep. 30, 2017
Noncontrolling Interests [Abstract]
Noncontrolling interests	The following schedule discloses the effects of Net income (loss) attributable to TDS shareholders and changes in TDS’ ownership interest in U.S. Cellular on TDS’ equity: Nine Months Ended September 30, 2017 2016 (Dollars in millions) Net income (loss) attributable to TDS shareholders $ (134) $ 49 Transfers to noncontrolling interests Change in TDS' Capital in excess of par value from U.S. Cellular's issuance of U.S. Cellular shares (12) (15) Change in TDS' Capital in excess of par value from U.S. Cellular's repurchases of U.S. Cellular shares – – Purchase of ownership in subsidiaries from noncontrolling interests – – Net transfers to noncontrolling interests (12) (15) Change from net income (loss) attributable to TDS and transfers to noncontrolling interests $ (146) $ 34

Business Segment (Tables)

Business Segment (Tables)	9 Months Ended
	Sep. 30, 2017
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, 2017 and 2016 , is as follows. See Note 1 — Basis of Presentation for additional information. TDS Telecom Three Months Ended or as of September 30, 2017 U.S. Cellular Wireline Cable HMS TDS Telecom Eliminations TDS Telecom Total Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service 1 $ 737 $ 178 $ 52 $ 28 $ (1) $ 257 $ (6) $ 988 Equipment and product sales 226 – – 27 – 28 9 263 Total operating revenues 1 963 179 52 56 (1) 285 3 1,251 Cost of services (excluding Depreciation, amortization and accretion reported below) 185 66 25 21 (1) 110 (1) 294 Cost of equipment and products 261 – – 22 – 23 7 291 Selling, general and administrative 350 49 13 11 – 73 (1) 422 Depreciation, amortization and accretion 153 38 11 7 – 56 – 209 Loss on impairment of goodwill 2 370 – – 35 – 35 (143) 262 (Gain) loss on asset disposals, net 5 – 1 – – 1 – 6 (Gain) loss on sale of business and other exit costs, net (1) – – – – – – (1) Operating income (loss) 1 (360) 26 2 (41) – (13) 141 (232) Equity in earnings of unconsolidated entities 35 – – – – – – 35 Interest and dividend income 1 2 2 – – – 2 – 4 Interest expense (28) – – (1) – (1) (14) (43) Other, net – – – – – – – – Income (loss) before income taxes (351) 28 2 (42) – (12) 127 (236) Income tax expense (benefit) 3 (53) 3 45 (5) Net income (loss) (298) (15) 82 (231) Add back: Depreciation, amortization and accretion 153 38 11 7 – 56 – 209 Loss on impairment of goodwill 2 370 – – 35 – 35 (143) 262 (Gain) loss on asset disposals, net 5 – 1 – – 1 – 6 (Gain) loss on sale of business and other exit costs, net (1) – – – – – – (1) Interest expense 28 – – 1 – 1 14 43 Income tax expense (benefit) 3 (53) 3 45 (5) Adjusted EBITDA 4 $ 204 $ 66 $ 14 $ 1 $ – $ 80 $ (1) $ 283 Investments in unconsolidated entities $ 429 $ 4 $ – $ – $ – $ 4 $ 34 $ 467 Total assets $ 6,780 $ 1,201 $ 619 $ 208 $ – $ 2,028 $ 402 $ 9,210 Capital expenditures $ 112 $ 41 $ 14 $ 2 $ – $ 58 $ 2 $ 172 Numbers may not foot due to rounding. 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 1 $ 784 $ 174 $ 46 $ 29 $ (1) $ 248 $ (6) $ 1,026 Equipment and product sales 239 – – 39 – 39 10 288 Total operating revenues 1 1,023 175 46 68 (1) 287 4 1,314 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 5 155 41 9 7 – 57 2 214 (Gain) loss on asset disposals, net 7 1 1 – – 2 (1) 8 (Gain) loss on sale of business and other exit costs, net – – – – – – – – (Gain) loss on license sales and exchanges, net (7) – – – – – – (7) Operating income (loss) 1 22 16 – (5) – 12 (1) 33 Equity in earnings of unconsolidated entities 38 – – – – – – 38 Interest and dividend income 1 1 1 – – – 1 – 2 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) 3 15 4 (5) 14 Net income (loss) 18 7 (9) 16 Add back: Depreciation, amortization and accretion 5 155 41 9 7 – 57 2 214 (Gain) loss on asset disposals, net 7 1 1 – – 2 (1) 8 (Gain) loss on sale of business and other exit costs, net – – – – – – – – (Gain) loss on license sales and exchanges, net (7) – – – – – – (7) Interest expense 28 – – 1 – 1 13 42 Income tax expense (benefit) 3 15 – – – – 4 (5) 14 Adjusted EBITDA 4 $ 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 Nine Months Ended or as of September 30, 2017 U.S. Cellular Wireline Cable HMS TDS Telecom Eliminations TDS Telecom Total Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service 1 $ 2,223 $ 537 $ 152 $ 84 $ (3) $ 770 $ (17) $ 2,976 Equipment and product sales 639 1 – 93 – 94 27 760 Total operating revenues 1 2,862 538 152 178 (3) 865 9 3,736 Cost of services (excluding Depreciation, amortization and accretion reported below) 549 194 73 63 (3) 327 (2) 874 Cost of equipment and products 749 2 – 77 – 79 20 848 Selling, general and administrative 1,041 145 39 32 – 215 (10) 1,246 Depreciation, amortization and accretion 460 114 32 21 – 166 6 632 Loss on impairment of goodwill 2 370 – – 35 – 35 (143) 262 (Gain) loss on asset disposals, net 14 1 1 – – 2 – 16 (Gain) loss on sale of business and other exit costs, net (1) – – – – – – (1) (Gain) loss on license sales and exchanges, net (19) – – – – – – (19) Operating income (loss) 1 (301) 84 7 (50) – 41 138 (122) Equity in earnings of unconsolidated entities 101 – – – – – – 101 Interest and dividend income 1 6 4 – – – 4 2 12 Interest expense (85) – – (3) – (3) (40) (128) Other, net 1 – – – – – (1) – Income (loss) before income taxes (278) 88 7 (53) – 42 99 (137) Income tax expense (benefit) 3 (19) 24 34 39 Net income (loss) (259) 18 65 (176) Add back: Depreciation, amortization and accretion 460 114 32 21 – 166 6 632 Loss on impairment of goodwill 2 370 – – 35 – 35 (143) 262 (Gain) loss on asset disposals, net 14 1 1 – – 2 – 16 (Gain) loss on sale of business and other exit costs, net (1) – – – – – – (1) (Gain) loss on license sales and exchanges, net (19) – – – – – – (19) Interest expense 85 – – 3 – 3 40 128 Income tax expense (benefit) 3 (19) 24 34 39 Adjusted EBITDA 4 $ 631 $ 202 $ 41 $ 6 $ – $ 248 $ 2 $ 881 Investments in unconsolidated entities $ 429 $ 4 $ – $ – $ – $ 4 $ 34 $ 467 Total assets $ 6,780 $ 1,201 $ 619 $ 208 $ – $ 2,028 $ 402 $ 9,210 Capital expenditures $ 257 $ 91 $ 35 $ 13 $ – $ 139 $ 6 $ 402 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 1 $ 2,330 $ 522 $ 136 $ 91 $ (3) $ 746 $ (18) $ 3,058 Equipment and product sales 655 1 – 121 – 123 27 805 Total operating revenues 1 2,985 523 137 212 (3) 868 10 3,863 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 5 462 119 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) 1 63 61 1 (9) – 53 (3) 113 Equity in earnings of unconsolidated entities 110 – – – – – (1) 109 Interest and dividend income 1 4 2 – – – 2 1 7 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) 3 39 20 (14) 45 Net income (loss) 54 32 (28) 58 Add back: Depreciation, amortization and accretion 5 462 119 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) 3 39 20 (14) 45 Adjusted EBITDA 4 $ 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. 1 Equipment installment plan interest income is reflected as a component of Service revenues consistent with an accounting policy change effective January 1, 2017. All prior period numbers have been recast to conform to this accounting change. See Note 1 — Basis of Presentation for additional details. 2 During the three months ended September 30, 2017, U.S. Cellular recorded a goodwill impairment of $370 million while TDS recorded a goodwill impairment of the U.S. Cellular reporting unit of $227 million. Prior to 2009, TDS accounted for U.S. Cellular's share repurchases as step acquisitions, allocating a portion of the share repurchase value to TDS' Goodwill. Further, goodwill of the U.S. Cellular reporting unit was impaired at the TDS level in 2003 but not at U.S. Cellular. Consequently, U.S. Cellular's goodwill on a stand-alone basis and any resulting impairments of goodwill does not equal the TDS consolidated goodwill related to U.S. Cellular. For further information on the goodwill impairment see Note 6 — Intangible Assets in the Notes to Consolidated Financial Statements. 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 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. 5 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 determined that this adjustment was not material to the quarterly periods or the annual results for 2016. 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.

Basis of Presentation (Details)

Basis of Presentation (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Basis of Presentation [Line Items]
Amounts recorded gross in revenues that are billed to customers and remitted to governmental authorities	$ 20	$ 21	$ 58	$ 65
Equipment Installment Plans Accounting Change
Service revenue	988	1,026	2,976	3,058
Interest and dividend income	4	2	12	7
Adjustment
Equipment Installment Plans Accounting Change
Service revenue	$ 19	13	$ 52	37
Interest and dividend income		$ (13)		$ (37)
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, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Financial Instruments
Cash and cash equivalents	$ 784	$ 900	$ 985	$ 985
Short-term investments	$ 100	$ 0
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	6.63%	6.93%
Fair Value | Level 1
Financial Instruments
Cash and cash equivalents	$ 784	$ 900
Short-term investments	100	0
Fair Value | Level 2 | Retail
Financial Instruments
Long-term debt	1,825	1,741
Fair Value | Level 2 | Institutional
Financial Instruments
Long-term debt	572	532
Fair Value | Level 2 | Other
Financial Instruments
Long-term debt	198	207
Book Value
Financial Instruments
Cash and cash equivalents	784	900
Short-term investments	100	0
Book Value | Retail
Financial Instruments
Long-term debt	1,753	1,753
Book Value | Institutional
Financial Instruments
Long-term debt	534	533
Book Value | Other
Financial Instruments
Long-term debt	$ 199	$ 208

Equipment Installment Plan Rece

Equipment Installment Plan Receivables, EIP Receivables (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Equipment installment plans [Line Items]
Equipment installment plan receivables, gross	$ 776	$ 628
Deferred interest	(69)	(53)
Equipment installment plan receivables, net of deferred interest	707	575
Allowance for credit losses	(58)	(50)
Equipment installment plan receivables, net	649	525
Accounts receivable - Customers and agents
Equipment installment plans [Line Items]
Equipment installment plan receivables, net	387	345
Other assets and deferred charges
Equipment installment plans [Line Items]
Equipment installment plan receivables, net	$ 262	$ 180

Equipment Installment Plan Re30

Equipment Installment Plan Receivables, Gross Receivables by Credit Category (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables, gross	$ 776	$ 628
Unbilled
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables	737	591
Billed
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables	27	25
Equipment installment plan receivables, past due	12	12
Lower Risk
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables, gross	749	586
Lower Risk | Unbilled
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables	713	553
Lower Risk | Billed
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables	26	23
Equipment installment plan receivables, past due	10	10
Higher Risk
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables, gross	27	42
Higher Risk | Unbilled
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables	24	38
Higher Risk | Billed
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables	1	2
Equipment installment plan receivables, past due	$ 2	$ 2

Equipment Installment Plan Re31

Equipment Installment Plan Receivables, Allowance for Credit Losses (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Allowance for credit losses, beginning of period	$ 50
Allowance for credit losses, end of period	58
Equipment Installment Plan Receivable
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Allowance for credit losses, beginning of period	50	$ 26
Bad debts expense	42	46
Write-offs, net of recoveries	(34)	(28)
Allowance for credit losses, end of period	$ 58	$ 44

Equipment Installment Plan Re32

Equipment Installment Plan Receivables, Narrative (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Equipment installment plans [Line Items]
Guarantee liability	$ 20	$ 33
Imputed interest rate	12.20%	11.20%

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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings per share
Net income (loss) available to TDS shareholders used in basic earnings (loss) per share	$ (181)	$ 13	$ (134)	$ 49
Noncontrolling interest adjustment	0		0	(1)
Net income (loss) available to TDS common shareholders used in diluted earnings (loss) per share	$ (181)	$ 13	$ (134)	$ 48
Weighted average number of shares used in basic earnings (loss) per share	111	110	111	110
Effects of dilutive securities	0	1	0	1
Weighted average number of shares used in diluted earnings (loss) per share	111	111	111	111
Basic earnings (loss) per share available to TDS common shareholders	$ (1.64)	$ 0.12	$ (1.21)	$ 0.44
Diluted earnings (loss) per share available to TDS common shareholders	$ (1.64)	$ 0.11	$ (1.21)	$ 0.44
Common Shares
Earnings per share
Weighted average number of shares used in basic earnings (loss) per share	104	103	104	103
Series A Common Shares
Earnings per share
Weighted average number of shares used in basic earnings (loss) per share	7	7	7	7

Earnings Per Share, Narrative (

Earnings Per Share, Narrative (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings per share, Other disclosures
Antidilutive securities	5	4	6	4

Acquisitions, Divestitures and

Acquisitions, Divestitures and Exchanges (Details) $ in Millions	1 Months Ended			3 Months Ended				9 Months Ended
	Apr. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Feb. 29, 2016USD ($)	Jun. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)
Acquisitions
Cash paid for acquisitions and licenses								$ 200	$ 46
Federal Communications Commission deposit								0	143
Exchanges
Cash received from divestitures and exchanges								19	20
Gain on license sales and exchanges						$ 7		19	16
U.S. Cellular
Exchanges
Gain on license sales and exchanges						$ 7		$ 19	$ 16
U.S. Cellular | License exchange 1
Exchanges
Net cash to be received			$ 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 1, second closing
Exchanges
Cash received from divestitures and exchanges					$ 15
Gain on license sales and exchanges					$ 17
U.S. Cellular | Auction 1002
Acquisitions
Cash paid for acquisitions and licenses				$ 186
Federal Communications Commission deposit		$ 143
Fcc License Auction Total Licenses Won	188
Fcc License Auction Total Winning Bid	$ 329

Intangible Assets (Details)

Intangible Assets (Details) $ in Millions	9 Months Ended
	Sep. 30, 2017USD ($)
Goodwill
Balance, beginning of period	$ 766
Goodwill acquired during period	4
Loss on impairment	(262)
Balance, end of period	508
U.S. Cellular
Goodwill
Balance, beginning of period	227
Goodwill acquired during period	0
Loss on impairment	(227)
Balance, end of period	0
TDS Telecom Wireline
Goodwill
Balance, beginning of period	409
Goodwill acquired during period	0
Loss on impairment	0
Balance, end of period	409
TDS Telecom Cable
Goodwill
Balance, beginning of period	95
Goodwill acquired during period	4
Loss on impairment	0
Balance, end of period	99
TDS Telecom HMS
Goodwill
Balance, beginning of period	35
Goodwill acquired during period	0
Loss on impairment	(35)
Balance, end of period	0
Licenses
Licenses
Balance, beginning of period	1,895
Acquisitions	331
Transferred to Assets held for sale	(5)
Exchanges - Licenses received	18
Exchanges - Licenses surrendered	(5)
Balance, end of period	$ 2,234

Intangible Assets, Key Assumpti

Intangible Assets, Key Assumptions (Details)	9 Months Ended
	Sep. 30, 2017
U.S. Cellular
Fair Value Inputs
Revenue growth rate	0.80%
Terminal revenue growth rate	2.00%
Discount rate	9.50%
TDS Telecom HMS
Fair Value Inputs
Revenue growth rate	3.80%
Terminal revenue growth rate	2.50%
Discount rate	10.50%

Intangible Assets, Narrative (D

Intangible Assets, Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Indefinite Lived Intangible Assets By Major Class Line Items
Loss on impairment	$ 262
Goodwill	508	$ 766
Franchise rights
Indefinite Lived Intangible Assets By Major Class Line Items
Other	0
U.S. Cellular
Indefinite Lived Intangible Assets By Major Class Line Items
Loss on impairment	227
Goodwill	0	227
U.S. Cellular | Goodwill
Indefinite Lived Intangible Assets By Major Class Line Items
Accumulated impairment losses in prior periods		334
TDS Telecom Wireline
Indefinite Lived Intangible Assets By Major Class Line Items
Loss on impairment	0
Goodwill	409	409
TDS Telecom Wireline | Goodwill
Indefinite Lived Intangible Assets By Major Class Line Items
Accumulated impairment losses in prior periods		29
TDS Telecom Cable
Indefinite Lived Intangible Assets By Major Class Line Items
Loss on impairment	0
Goodwill	99	95
TDS Telecom Cable | Goodwill
Indefinite Lived Intangible Assets By Major Class Line Items
Accumulated impairment losses in prior periods		0
TDS Telecom HMS
Indefinite Lived Intangible Assets By Major Class Line Items
Loss on impairment	35
Goodwill	$ 0	35
TDS Telecom HMS | Goodwill
Indefinite Lived Intangible Assets By Major Class Line Items
Accumulated impairment losses in prior periods		84
Corporate, Eliminations and Other | Goodwill
Indefinite Lived Intangible Assets By Major Class Line Items
Accumulated impairment losses in prior periods		$ 4

Investment in Unconsolidated 39

Investment in Unconsolidated Entities (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Equity method investments, combined income statements
Revenues	$ 1,596	$ 1,679	$ 4,848	$ 5,008
Operating expenses	1,184	1,254	3,631	3,662
Operating income	412	425	1,217	1,346
Other expense, net	(2)	(2)	(4)	(10)
Net income	$ 410	$ 423	$ 1,213	$ 1,336

Variable Interest Entities, Con

Variable Interest Entities, Consolidated Balance Sheet (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Assets
Cash and cash equivalents	$ 784	$ 900	$ 985	$ 985
Accounts receivable	775	753
Other current assets	31	32
Licenses	2,234	1,895
Property, plant and equipment, net	3,337	3,555
Other assets and deferred charges	385	434
Liabilities
Current liabilities	829	887
Consolidated Variable Interest Entities
Assets
Cash and cash equivalents	1	2
Accounts receivable	430	39
Other current assets	6	6
Licenses	649	649
Property, plant and equipment, net	87	93
Other assets and deferred charges	264	15
Total assets	1,437	804
Liabilities
Current liabilities	36	18
Deferred liabilities and credits	12	12
Total liabilities	$ 48	$ 30

Variable Interest Entities, Nar

Variable Interest Entities, Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Variable Interest Entities, Other Disclosures
Transfer of net equipment installment plan receivables	$ 1,093		$ 0
Capital contributions, loans or advances	724	$ 100
Investment in unconsolidated entities, maximum exposure	4		$ 6
USCC EIP LLC
Variable Interest Entities, Other Disclosures
Capital contributions, loans or advances	$ 701

Noncontrolling Interests (Detai

Noncontrolling Interests (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Noncontrolling Interests [Abstract]
Net income (loss) attributable to TDS shareholders	$ (181)	$ 13	$ (134)	$ 49
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			(12)	(15)
Change in TDS' Capital in excess of par value from U.S. Cellular's repurchase of U.S. Cellular shares			0
Purchase of ownership in subsidiaries from noncontrolling interests			0	0
Net transfers (to) from noncontrolling interests			(12)	(15)
Change from net income (loss) attributable to TDS and transfers (to) from noncontrolling interests			$ (146)	$ 34

Business Segment (Details)

Business Segment (Details) - USD ($) $ in Millions		3 Months Ended				9 Months Ended
		Sep. 30, 2017		Sep. 30, 2016		Sep. 30, 2017		Sep. 30, 2016		Dec. 31, 2016
Segment Reporting Information [Line Items]
Service		$ 988		$ 1,026		$ 2,976		$ 3,058
Equipment and product sales		263		288		760		805
Total operating revenues		1,251		1,314		3,736		3,863
Cost of services (excluding Depreciation, amortization and accretion reported below)		294		305		874		891
Cost of equipment and products		291		321		848		921
Selling, general and administrative		422		440		1,246		1,299
Depreciation, amortization and accretion		209		214		632		636
Loss on impairment of goodwill		262		0		262		0
(Gain) loss on asset disposals, net		6		8		16		20
(Gain) loss on sale of business and other exit costs, net		(1)				(1)		(1)
(Gain) loss on license sales and exchanges, net				(7)		(19)		(16)
Operating income (loss)		(232)		33		(122)		113
Equity in earnings of unconsolidated entities		35		38		101		109
Interest and dividend income		4		2		12		7
Interest expense		(43)		(42)		(128)		(127)
Other, net				(1)				1
Income (loss) before income taxes		(236)		30		(137)		103
Income tax expense (benefit)		(5)		14		39		45
Net income (loss)		(231)		16		(176)		58
Depreciation, amortization and accretion		209		214		632		636
Loss on impairment of goodwill		262		0		262		0
(Gain) loss on asset disposals, net		6		8		16		20
(Gain) loss on sale of business and other exit costs, net		(1)				(1)		(1)
(Gain) loss on license sales and exchanges, net				(7)		(19)		(16)
Interest expense		43		42		128		127
Income tax expense (benefit)		(5)		14		39		45
Adjusted EBITDA	[1]	283		287		881		869
Investments in unconsolidated entities		467		459		467		459		$ 451
Total assets		9,210	[2]	9,449		9,210	[2]	9,449		$ 9,446	[2]
Capital expenditures		172		145		402		412
Loss on impairment of goodwill						$ 262
Goodwill allocation description						During the three months ended September 30, 2017, U.S. Cellular recorded a goodwill impairment of $370 million while TDS recorded a goodwill impairment of the U.S. Cellular reporting unit of $227 million. Prior to 2009, TDS accounted for U.S. Cellular's share repurchases as step acquisitions, allocating a portion of the share repurchase value to TDS' Goodwill. Further, goodwill of the U.S. Cellular reporting unit was impaired at the TDS level in 2003 but not at U.S. Cellular. Consequently, U.S. Cellular's goodwill on a stand-alone basis and any resulting impairments of goodwill does not equal the TDS consolidated goodwill related to U.S. Cellular. For further information on the goodwill impairment see Note 6 — Intangible Assets in the Notes to Consolidated Financial Statements.
U.S. Cellular
Segment Reporting Information [Line Items]
Service	[3]	737		784		$ 2,223		2,330
Equipment and product sales		226		239		639		655
Total operating revenues	[3]	963		1,023		2,862		2,985
Cost of services (excluding Depreciation, amortization and accretion reported below)		185		196		549		572
Cost of equipment and products		261		280		749		799
Selling, general and administrative		350		370		1,041		1,089
Depreciation, amortization and accretion		153		155		460		462
Loss on impairment of goodwill	[4]	370				370
(Gain) loss on asset disposals, net		5		7		14		16
(Gain) loss on sale of business and other exit costs, net		(1)				(1)
(Gain) loss on license sales and exchanges, net				(7)		(19)		(16)
Operating income (loss)	[3]	(360)		22		(301)		63
Equity in earnings of unconsolidated entities		35		38		101		110
Interest and dividend income	[3]	2		1		6		4
Interest expense		(28)		(28)		(85)		(84)
Other, net						1
Income (loss) before income taxes		(351)		33		(278)		93
Income tax expense (benefit)		(53)		15		(19)		39
Net income (loss)		(298)		18		(259)		54
Depreciation, amortization and accretion		153		155		460		462
Loss on impairment of goodwill	[4]	370				370
(Gain) loss on asset disposals, net		5		7		14		16
(Gain) loss on sale of business and other exit costs, net		(1)				(1)
(Gain) loss on license sales and exchanges, net				(7)		(19)		(16)
Interest expense		28		28		85		84
Income tax expense (benefit)		(53)		15		(19)		39
Adjusted EBITDA	[1]	204		216		631		639
Investments in unconsolidated entities		429		420		429		420
Total assets		6,780		7,104		6,780		7,104
Capital expenditures		112		103		257		275
Loss on impairment of goodwill						227
Loss on impairment of goodwill, subsidiary						(370)
TDS Telecom
Segment Reporting Information [Line Items]
Service		257		248		770		746
Equipment and product sales		28		39		94		123
Total operating revenues		285		287		865		868
Cost of services (excluding Depreciation, amortization and accretion reported below)		110		110		327		320
Cost of equipment and products		23		33		79		103
Selling, general and administrative		73		75		215		222
Depreciation, amortization and accretion		56		57		166		168
Loss on impairment of goodwill	[4]	35				35
(Gain) loss on asset disposals, net		1		2		2		4
Operating income (loss)		(13)		12		41		53
Interest and dividend income		2		1		4		2
Interest expense		(1)		(1)		(3)		(2)
Income (loss) before income taxes		(12)		11		42		53
Income tax expense (benefit)	[5]	3		4		24		20
Net income (loss)		(15)		7		18		32
Depreciation, amortization and accretion		56		57		166		168
Loss on impairment of goodwill	[4]	35				35
(Gain) loss on asset disposals, net		1		2		2		4
Interest expense		1		1		3		2
Income tax expense (benefit)	[5]	3		4		24		20
Adjusted EBITDA	[1]	80		71		248		226
Investments in unconsolidated entities		4		4		4		4
Total assets		2,028		2,123		2,028		2,123
Capital expenditures		58		40		139		128
TDS Telecom Wireline
Segment Reporting Information [Line Items]
Service		178		174		537		522
Equipment and product sales						1		1
Total operating revenues		179		175		538		523
Cost of services (excluding Depreciation, amortization and accretion reported below)		66		67		194		192
Cost of equipment and products				1		2		2
Selling, general and administrative		49		50		145		148
Depreciation, amortization and accretion		38		41	[6]	114		119	[6]
(Gain) loss on asset disposals, net				1		1		2
Operating income (loss)		26		16		84		61
Interest and dividend income		2		1		4		2
Interest expense								1
Income (loss) before income taxes		28		17		88		63
Depreciation, amortization and accretion		38		41	[6]	114		119	[6]
(Gain) loss on asset disposals, net				1		1		2
Interest expense								(1)
Adjusted EBITDA	[1]	66		58		202		183
Investments in unconsolidated entities		4		4		4		4
Total assets		1,201		1,259		1,201		1,259
Capital expenditures		41		27		91		82
Loss on impairment of goodwill						$ 0
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 determined that this adjustment was not material to the quarterly periods or the annual results for 2016. 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.
TDS Telecom Wireline | Depreciation, amortization and accretion | Depreciation out-of-period adjustment
Segment Reporting Information [Line Items]
Out-of-period adjustment	[6]							4
TDS Telecom Cable
Segment Reporting Information [Line Items]
Service		52		46		$ 152		136
Total operating revenues		52		46		152		137
Cost of services (excluding Depreciation, amortization and accretion reported below)		25		23		73		69
Selling, general and administrative		13		13		39		37
Depreciation, amortization and accretion		11		9		32		27
(Gain) loss on asset disposals, net		1		1		1		2
Operating income (loss)		2				7		1
Income (loss) before income taxes		2				7		1
Depreciation, amortization and accretion		11		9		32		27
(Gain) loss on asset disposals, net		1		1		1		2
Adjusted EBITDA	[1]	14		10		41		30
Total assets		619		592		619		592
Capital expenditures		14		11		35		41
Loss on impairment of goodwill						0
TDS Telecom HMS
Segment Reporting Information [Line Items]
Service		28		29		84		91
Equipment and product sales		27		39		93		121
Total operating revenues		56		68		178		212
Cost of services (excluding Depreciation, amortization and accretion reported below)		21		21		63		61
Cost of equipment and products		22		33		77		101
Selling, general and administrative		11		12		32		37
Depreciation, amortization and accretion		7		7		21		22
Loss on impairment of goodwill	[4]	35				35
Operating income (loss)		(41)		(5)		(50)		(9)
Interest expense		(1)		(1)		(3)		(3)
Income (loss) before income taxes		(42)		(6)		(53)		(12)
Depreciation, amortization and accretion		7		7		21		22
Loss on impairment of goodwill	[4]	35				35
Interest expense		1		1		3		3
Adjusted EBITDA		1		3	[1]	6	[1]	13	[1]
Total assets		208		273		208		273
Capital expenditures		2		2		13		6
Loss on impairment of goodwill						35
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)		(17)		(18)
Equipment and product sales		9		10		27		27
Total operating revenues		3		4		9		10
Cost of services (excluding Depreciation, amortization and accretion reported below)		(1)		(1)		(2)		(1)
Cost of equipment and products		7		8		20		19
Selling, general and administrative		(1)		(5)		(10)		(12)
Depreciation, amortization and accretion				2		6		6
Loss on impairment of goodwill	[4]	(143)				(143)
(Gain) loss on asset disposals, net				(1)
(Gain) loss on sale of business and other exit costs, net								(1)
Operating income (loss)		141		(1)		138		(3)
Equity in earnings of unconsolidated entities								(1)
Interest and dividend income						2		1
Interest expense		(14)		(13)		(40)		(41)
Other, net				(1)		(1)		1
Income (loss) before income taxes		127		(14)		99		(43)
Income tax expense (benefit)		45		(5)		34		(14)
Net income (loss)		82		(9)		65		(28)
Depreciation, amortization and accretion				2		6		6
Loss on impairment of goodwill	[4]	(143)				(143)
(Gain) loss on asset disposals, net				(1)
(Gain) loss on sale of business and other exit costs, net								(1)
Interest expense		14		13		40		41
Income tax expense (benefit)		45		(5)		34		(14)
Adjusted EBITDA		(1)				2	[1]	4	[1]
Investments in unconsolidated entities		34		35		34		35
Total assets		402		222		402		222
Capital expenditures		$ 2		$ 2		$ 6		$ 9
[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, 2017 and December 31, 2016 include assets held by consolidated variable interest entities (VIEs) of $757 million and $804 million, respectively, which are not available to be used to settle the obligations of TDS. The consolidated total liabilities as of September 30, 2017 and December 31, 2016 include certain liabilities of consolidated VIEs of $17 million for which the creditors of the VIEs have no recourse to the general credit of TDS. See Note 8 — Variable Interest Entities for additional information.
[3]	Equipment installment plan interest income is reflected as a component of Service revenues consistent with an accounting policy change effective January 1, 2017. All prior period numbers have been recast to conform to this accounting change. See Note 1 — Basis of Presentation for additional details.
[4]	During the three months ended September 30, 2017, U.S. Cellular recorded a goodwill impairment of $370 million while TDS recorded a goodwill impairment of the U.S. Cellular reporting unit of $227 million. Prior to 2009, TDS accounted for U.S. Cellular's share repurchases as step acquisitions, allocating a portion of the share repurchase value to TDS' Goodwill. Further, goodwill of the U.S. Cellular reporting unit was impaired at the TDS level in 2003 but not at U.S. Cellular. Consequently, U.S. Cellular's goodwill on a stand-alone basis and any resulting impairments of goodwill does not equal the TDS consolidated goodwill related to U.S. Cellular. For further information on the goodwill impairment see Note 6 — Intangible Assets in the Notes to Consolidated Financial Statements.
[5]	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".
[6]	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 determined that this adjustment was not material to the quarterly periods or the annual results for 2016. 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.