Telephone and Data Systems (TDS) 10-Q 3 Aug 18 2018 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information	6 Months Ended
	Jun. 30, 2018shares
Entity Registrant Name	TELEPHONE & DATA SYSTEMS INC /DE/
Entity Central Index Key	1,051,512
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Trading Symbol	TDS
Common Shares
Entity Common Stock, Shares Outstanding	104,636,089
Series A Common Shares
Entity Common Stock, Shares Outstanding	7,273,678

Consolidated Statement Of Opera

Consolidated Statement Of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Operating revenues
Service	$ 993	$ 992	$ 1,970	$ 1,989
Equipment and product sales	262	255	510	496
Total operating revenues	1,255	1,247	2,480	2,485
Operating expenses
Cost of services (excluding Depreciation, amortization and accretion reported below)	300	298	587	580
Cost of equipment and products	266	287	512	557
Selling, general and administrative	417	420	813	826
Depreciation, amortization and accretion	220	211	441	422
(Gain) loss on asset disposals, net	2	6	3	10
(Gain) loss on license sales and exchanges, net	(11)	(2)	(17)	(19)
Total operating expenses	1,194	1,220	2,339	2,376
Operating income	61	27	141	109
Investment and other income (expense)
Equity in earnings of unconsolidated entities	40	33	78	65
Interest and dividend income	6	4	11	8
Interest expense	(43)	(43)	(86)	(85)
Other, net	1	1	2	2
Total investment and other income (expense)	4	(5)	5	(10)
Income before income taxes	65	22	146	99
Income tax expense	21	10	45	44
Net income	44	12	101	55
Less: Net income attributable to noncontrolling interests, net of tax	11	2	29	8
Net income attributable to TDS shareholders	33	10	72	47
TDS Preferred dividend requirement	0	0	0
Net income available to TDS shareholders	$ 33	$ 10	$ 72	$ 47
Basic weighted average shares outstanding	112	111	112	110
Basic earnings per share available to TDS common shareholders	$ 0.30	$ 0.09	$ 0.65	$ 0.43
Diluted weighted average shares outstanding	113	112	113	112
Diluted earnings per share available to TDS common shareholders	$ 0.29	$ 0.09	$ 0.63	$ 0.42
Dividends per share to TDS shareholders	$ 0.160	$ 0.155	$ 0.320	$ 0.310

Consolidated Statement Of Compr

Consolidated Statement Of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 44	$ 12	$ 101	$ 55
Change related to retirement plan
Amortization of prior service cost			(1)	(1)
Comprehensive income	44	12	100	54
Less: Net income attributable to noncontrolling interests, net of tax	11	2	29	8
Comprehensive income attributable to TDS shareholders	$ 33	$ 10	$ 71	$ 46

Consolidated Statement Of Cash

Consolidated Statement Of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities
Net income	$ 101	$ 55
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities
Depreciation, amortization and accretion	441	422
Bad debts expense	43	49
Stock-based compensation expense	23	22
Deferred income taxes, net	25	(22)
Equity in earnings of unconsolidated entities	(78)	(65)
Distributions from unconsolidated entities	70	65
(Gain) loss on asset disposals, net	3	10
(Gain) loss on license sales and exchanges, net	(17)	(19)
Noncash interest	2	1
Changes in assets and liabilities from operations
Accounts receivable	51	5
Equipment installment plans receivable	(47)	(107)
Inventory	(8)	2
Accounts payable	(50)	(59)
Customer deposits and deferred revenues	(25)	(10)
Accrued taxes	(5)	53
Other assets and liabilities	(66)	(44)
Net cash provided by operating activities	463	358
Cash flows from investing activities
Cash paid for additions to property, plant and equipment	(275)	(242)
Cash paid for acquisitions and licenses	(10)	(200)
Cash received for investments	100	0
Cash received from divestitures and exchanges	21	17
Other investing activities	3	1
Net cash used in investing activities	(161)	(424)
Cash flows from financing activities
Repayment of long-term debt	(10)	(6)
TDS Common Shares reissued for benefit plans, net of tax payments	7	(1)
Repurchase of TDS Preferred Shares	0	(1)
Dividends paid to TDS shareholders	(36)	(34)
Payment of debt issuance costs	(1)	0
Distributions to noncontrolling interests	(4)	(2)
Other financing activities	(3)	1
Net cash used in financing activities	(47)	(43)
Net increase (decrease) in cash, cash equivalents and restricted cash	255	(109)
Cash, cash equivalents and restricted cash
Beginning of period	622	904
End of period	$ 877	$ 795

Consolidated Balance Sheet

Consolidated Balance Sheet - USD ($) $ in Millions		Jun. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents		$ 873	$ 619
Short-term investments		0	100
Accounts receivable
Customers and agents, less allowances of $65 and $61, respectively		886	861
Other, less allowances of $2 and $2, respectively		101	100
Inventory, net		153	145
Prepaid expenses		103	112
Income taxes receivable		1	2
Other current assets		43	27
Total current assets		2,160	1,966
Assets held for sale		1	10
Licenses		2,240	2,232
Goodwill		509	509
Other intangible assets, net of accumulated amortization of $155 and $142, respectively		266	279
Investments in unconsolidated entities		477	453
Property, plant and equipment
In service and under construction		11,754	11,742
Less: Accumulated depreciation and amortization		8,495	8,318
Property, plant and equipment, net		3,259	3,424
Other assets and deferred charges		586	422
Total assets	[1]	9,498	9,295
Current liabilities
Current portion of long-term debt		20	20
Accounts payable		296	368
Customer deposits and deferred revenues		165	223
Accrued interest		12	11
Accrued taxes		54	64
Accrued compensation		84	126
Other current liabilities		98	106
Total current liabilities		729	918
Deferred liabilities and credits
Deferred income tax liability, net		636	552
Other deferred liabilities and credits		523	495
Long-term debt, net		2,427	2,437
Commitments and contingencies
Noncontrolling interests with redemption features		11	1
TDS shareholders' equity
Series A Common and Common Shares Authorized 290 shares (25 Series A Common and 265 Common Shares) Issued 133 shares (7 Series A Common and 126 Common Shares) Outstanding 112 shares (7 Series A Common and 105 Common Shares) and 111 shares (7 Series A Common and 104 Common Shares), respectively, Par Value ($.01 per share)		1	1
Capital in excess of par value		2,418	2,413
Treasury shares, at cost, 21 and 22 Common Shares, respectively		(624)	(669)
Accumulated other comprehensive loss		(3)	(1)
Retained earnings		2,692	2,525
Total TDS shareholders' equity		4,484	4,269
Noncontrolling interests		688	623
Total equity		5,172	4,892
Total liabilities and equity	[1]	$ 9,498	$ 9,295
[1]	The consolidated total assets as of June 30, 2018 and December 31, 2017, include assets held by consolidated variable interest entities (VIEs) of $793 million and $765 million, respectively, which are not available to be used to settle the obligations of TDS. The consolidated total liabilities as of June 30, 2018 and December 31, 2017, include certain liabilities of consolidated VIEs of $17 million and $21 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of TDS. See Note 10 — Variable Interest Entities for additional information.

Consolidated Balance Sheet Pare

Consolidated Balance Sheet Parenthetical - USD ($) shares in Millions, $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Accounts receivable
Customer and agent allowances	$ 65	$ 61
Other allowances	2	2
Other intangible assets
Other intangible assets accumulated amortization	$ 155	$ 142
TDS shareholders' equity
Authorized shares	290	290
Issued shares	133	133
Outstanding shares	112	111
Variable Interest Entities VIEs
Total VIE assets that can be used to settle only the VIEs' obligations	$ 793	$ 765
Total VIE liabilities for which creditors have no recourse	$ 17	$ 21
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	105	104
Par value per share	$ 0.01	$ 0.01
Treasury shares at cost	21	22

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, 2016	$ 4,750	$ 1	$ 2,386	$ (698)	$ 1	$ 2,454	$ 4,144	$ 1	$ 605
Net income attributable to TDS shareholders	47					47	47
Net income attributable to noncontrolling interests classified as equity	8								8
Other comprehensive loss	(1)				(1)		(1)
TDS Common and Series A Common share dividends	(34)					(34)	(34)
Redemption of Preferred Shares	(1)							$ (1)
Dividend reinvestment plan	5			5			5
Incentive and compensation plans	(1)			9		(10)	(1)
Adjust investment in subsidiaries for repurchases, issuances and other compensation plans	14								14
Stock-based compensation awards	7		7				7
Distributions to noncontrolling interests	(2)								(2)
Ending balance at Jun. 30, 2017	4,792	1	2,393	(684)		2,457	4,167		625
Beginning balance at Dec. 31, 2017	4,892	1	2,413	(669)	(1)	2,525	4,269		623
Net income attributable to TDS shareholders	72					72	72
Net income attributable to noncontrolling interests classified as equity	16								16
Other comprehensive loss	(1)				(1)		(1)
TDS Common and Series A Common share dividends	(36)					(36)	(36)
Dividend reinvestment plan	6			13		(7)	6
Incentive and compensation plans	7			32		(25)	7
Adjust investment in subsidiaries for repurchases, issuances and other compensation plans	18		(1)				(1)		19
Stock-based compensation awards	6		6				6
Distributions to noncontrolling interests	(1)								(1)
Ending balance at Jun. 30, 2018	5,172	$ 1	$ 2,418	$ (624)	(3)	2,692	4,484		688
Cumulative effect of accounting changes	$ 193				$ (1)	$ 163	$ 162		$ 31

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2018
Basis of Presentation [Abstract]
Basis of Presentation	Note 1 Basis of Presentation The accounting policies of Telephone and Data Systems, Inc. (TDS) conform to accounting principles generally accepted in the United States of America (GAAP) as set forth in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC). The consolidated financial statements include the accounts of TDS and subsidiaries in which it has a controlling financial interest, including TDS’ 83% -owned 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 June 30, 2018 , are U.S. Cellular, Wireline, and Cable. TDS’ non-reportable other business activities are presented as “Corporate, Eliminations and Other”, which includes the operations of TDS’ wholly-owned hosted and managed services (HMS) subsidiary, which operates under the OneNeck IT Solutions brand, and its wholly-owned subsidiary Suttle-Straus, Inc. (Suttle-Straus). HMS’ and 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 12 — 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, 2017 . 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 June 30, 2018 and December 31, 2017 , its results of operations and comprehensive income for the three and six months ended June 30, 2018 and 2017 , and its cash flows and changes in equity for the six months ended June 30, 2018 and 2017 . 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, 2017 , except as described below and as disclosed in Note 2 — Revenue Recognition and Note 8 — Investments in Unconsolidated Entities . Change in Reportable Segments TDS re-evaluated internal reporting roles with regard to its HMS business unit and, as a result, changed its reportable segments. Effective January 1, 2018, HMS was considered a non-reportable segment and is no longer being reported under TDS Telecom. This change enables TDS Telecom to continue to successfully execute on the Wireline and Cable segments’ shared strategy to be the preferred service provider in its markets. Additionally, this change allows HMS to leverage TDS’ corporate IT resources, to improve operations and customer service, and better position itself for growth. Prior periods have been recast to conform to this revised presentation. See Note 12 — Business Segment Information for additional information on TDS’ reportable segments. Restricted Cash TDS presents restricted cash with cash and cash equivalents in the Consolidated Statement of Cash Flows. The following table provides a reconciliation of Cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheet to the total of the amounts in the Consolidated Statement of Cash Flows as of June 30, 2018 and December 31, 2017 . June 30, December 31, 2018 2017 (Dollars in millions) Cash and cash equivalents $ 873 $ 619 Restricted cash included in Other current assets 4 3 Cash, cash equivalents and restricted cash in the statement of cash flows $ 877 $ 622 Franchise Rights Effective January 1, 2018, TDS prospectively changed its estimated useful life for cable video franchise rights from indefinite-lived to 15 years due primarily to the effects of increasing competition and advancements in technology for delivering and consuming video programming. Commensurate with this change, TDS reviewed its cable video franchise rights for impairment, and noted that no impairment existed as of January 1, 2018. As a result, Depreciation, amortization and accretion increased $ 4 million, calculated on a straight-line basis, and Net income decreased $ 3 million or $ 0.03 per share (Basic and Diluted) for the three months ended June 30, 2018 . For the six months ended June 30, 2018 , Depreciation, amortization and accretion increased $ 9 million, calculated on a straight-line basis, and Net income decreased $ 7 million or $ 0.06 per share (Basic and Diluted). Recently Adopted Accounting Pronouncements 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 TDS to 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 new accounting standard also specifies that only the service cost component of net benefit cost is eligible for capitalization. TDS adopted ASU 2017-07 retrospectively on January 1, 2018, and prior periods have been recast to reflect ASU 2017-07. As a result of the adoption of ASU 2017-07, Selling, general and administrative expenses for the three and six months ended June 30, 2017 , increased by $ 1 million from previously reported amounts, with a corresponding increase in Other, net income. This change did not have an impact on Income before income taxes, Net income, or Earnings per share for the three and six months ended June 30, 2017 , nor did it have a cumulative impact to Retained earnings as of the date presented. Recently Issued Accounting Pronouncements Not Yet Adopted 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 . Early adoption is permitted; however, TDS plans to adopt ASU 2016-02 on a modified retrospective basis when required on January 1, 2019. In January 2018, the FASB issued Accounting Standards Update 2018-01, Leases (ASU 2018-01), which permits an entity to elect an optional transition practical expedient to not evaluate land easements that exist or expired before the entities adoption of ASU 2016-02. TDS plans to adopt ASU 2018-01 in conjunction with its adoption of ASU 2016-02. TDS is evaluating the full effect that adoption of ASU 2016-02 and ASU 2018-01 will have on its financial condition, results of operations and disclosures. Upon adoption, TDS expects a substantial increase to assets and liabilities on its balance sheet and is in the process of implementing a new lease management and accounting system to assist in the application of the new standard. 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, using the modified retrospective approach. Early adoption is permitted as of January 1, 2019. TDS is evaluating the effects that adoption of ASU 2016-13 will have on its financial position, results of operations and disclosures. In June 2018, the FASB issued Accounting Standards Update 2018-07 , Compensation—Stock Compensation, Improvements to Nonemployee Share-Based Payment Accounting (ASU 2018-07). ASU 2018-07 expands the scope of Accounting Standards Codification (ASC) 718, Compensation—Stock Compensation , which currently only includes share-based payments issued to employees, to also include share-based payments issued to nonemployees for goods and services. TDS is required to adopt ASU 2018-07 on January 1, 2019, using the modified retrospective approach. Early adoption is permitted. The adoption of ASU 2018-07 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 $ 22 million and $ 45 million for the three and six months ended June 30, 2018 , respectively, and $ 20 million and $ 38 million for the three and six months ended June 30, 2017, respectively.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Note 2 Revenue Recognition Change in Accounting Policy In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers 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, collectively referred to hereinafter as ASU 2014-09. These standards replace existing revenue recognition rules with a single comprehensive model to use in accounting for revenue arising from contracts with customers. 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 adopted the provisions of ASU 2014-09 and ASU 2017-05 and applied them to all contracts as of January 1, 2018, using a modified retrospective method. Under this method, the new accounting standard is applied only to the most recent period presented, recognizing the cumulative effect of the accounting change as an adjustment to the beginning balance of retained earnings. Accordingly, prior periods have not been recast to reflect the new accounting standard. The cumulative effect of applying the provisions of ASU 2014-09 resulted in an increase of $ 163 million in retained earnings as of January 1, 2018. ASU 2017-05 had no impact to retained earnings as of January 1, 2018. As a practical expedient, TDS groups similar contracts or similar performance obligations together into portfolios of contracts or performance obligations if doing so does not result in a significant difference from applying the new accounting standard to the individual contracts. TDS applies this grouping method for the following types of transactions: device activation fees, contract acquisition costs, contract fulfillment costs, and certain customer promotions. Contract portfolios will be recognized over the respective expected customer lives or terms of the contracts. The line items impacted by the adoption of ASU 2014-09 and ASU 2017-05 in the Consolidated Statement of Operations and the Consolidated Balance Sheet are presented below. Consolidated Statement of Operations Results under prior accounting standards Three Months Ended June 30, 2018 Adjustment As reported (Dollars and shares in millions, except per share amounts) Operating revenues Service $ 1,022 $ (29) $ 993 Equipment and product sales 241 21 262 Total operating revenues 1,263 (8) 1,255 Cost of equipment and products 268 (2) 266 Selling, general and administrative 413 4 417 (Gain) loss on license sales and exchanges, net (11) – (11) Total operating expenses 1,192 2 1,194 Operating income (loss) 71 (10) 61 Income (loss) before income taxes 75 (10) 65 Income tax expense (benefit) 23 (2) 21 Net income (loss) 52 (8) 44 Less: Net income attributable to noncontrolling interests, net of tax 12 (1) 11 Net income (loss) attributable to TDS shareholders 39 (6) 33 Net income (loss) available to TDS common shareholders 39 (6) 33 Basic earnings (loss) per share available to TDS common shareholders 0.35 (0.05) 0.30 Diluted earnings (loss) per share available to TDS common shareholders 0.35 (0.06) 0.29 Numbers may not foot due to rounding. Results under prior accounting standards Adjustment As reported Six Months Ended June 30, 2018 (Dollars and shares in millions, except per share amounts) Operating revenues Service $ 2,029 $ (59) $ 1,970 Equipment and product sales 468 42 510 Total operating revenues 2,497 (17) 2,480 Cost of equipment and products 517 (5) 512 Selling, general and administrative 809 4 813 (Gain) loss on license sales and exchanges, net (16) (1) (17) Total operating expenses 2,341 (2) 2,339 Operating income (loss) 157 (16) 141 Income (loss) before income taxes 162 (16) 146 Income tax expense (benefit) 49 (4) 45 Net income (loss) 112 (11) 101 Less: Net income attributable to noncontrolling interests, net of tax 31 (2) 29 Net income (loss) attributable to TDS shareholders 81 (9) 72 Net income (loss) available to TDS common shareholders 81 (9) 72 Basic earnings (loss) per share available to TDS common shareholders 0.73 (0.08) 0.65 Diluted earnings (loss) per share available to TDS common shareholders $ 0.72 $ (0.09) $ 0.63 Numbers may not foot due to rounding. The decrease in Service revenues and the increase in Equipment and product sales revenues are driven primarily by differences in the timing and classification of revenue recognized for certain arrangements with multiple performance obligations and ceasing to record deferred imputed interest and the resulting interest income on equipment installment contracts. Under prior accounting standards, revenues were allocated to deliverables using the relative selling price method, where consideration was allocated to each element on the basis of its relative selling price. Revenue recognized for the delivered items was limited to the amount due from the customer that was not contingent upon the delivery of additional products or services. Under ASU 2014-09, the revenue allocation of the transaction price is based on the relative standalone selling prices of the individual performance obligations in the customer’s contract, and the resulting revenue attributable to each is recognized as control over the performance obligation is transferred to the customer. This has resulted in increased Equipment and product sales revenues as more revenue is allocated to discounted equipment than under prior accounting standards. Under prior accounting standards, TDS deferred imputed interest related to equipment installment plan receivable contracts that exceeded twelve months, and recognized the corresponding interest income over the contract period in Service revenues. Under the provisions of ASU 2014-09, TDS has determined that equipment installment plan contracts do not contain a significant financing component, and accordingly, TDS ceased recording deferred imputed interest and the resulting interest income on equipment installment contracts upon the adoption of ASU 2014-09. Cost of equipment and products decreased due to a change in timing of recognition of cost of goods sold in the agent channel. Under prior accounting standards, Equipment and product sales to agents and the related Cost of equipment and products was recognized when equipment was sold through from the agent to end user customers. In accordance with the provisions of ASU 2014-09, such amounts are recognized when TDS delivers the equipment to the agent. Selling, general and administrative expenses include the amortization of contract acquisition and contract fulfillment costs that are capitalized under ASU 2014-09. Under ASU 2017-05, (Gain) loss on license sales and exchanges, net is calculated by subtracting the carrying amount of the distinct asset being disposed from the consideration measured and allocated to that distinct asset. The consideration, or transaction price, is the fair value of the licenses received. Under prior accounting standards, the transaction price was typically the fair value of the licenses surrendered. Consolidated Balance Sheet Results under prior accounting standards Adjustment As reported As of June 30, 2018 (Dollars in millions) Accounts receivable Customers and agents, less allowances $ 830 $ 56 $ 886 Other, less allowances 113 (12) 101 Prepaid expenses 122 (19) 103 Other current assets 26 17 43 Total current assets 2,119 41 2,160 Licenses 2,239 1 2,240 Investments in unconsolidated entities 462 15 477 Other assets and deferred charges 414 172 586 Total assets 9,268 230 9,498 Customer deposits and deferred revenues 183 (18) 165 Accrued taxes 55 (1) 54 Other current liabilities 94 4 98 Total current liabilities 745 (16) 729 Deferred income tax liability, net 580 56 636 Other deferred liabilities and credits 515 8 523 Retained earnings 2,539 153 2,692 Total TDS shareholders' equity 4,331 153 4,484 Noncontrolling interests 659 29 688 Total equity 4,991 181 5,172 Total liabilities and equity 9,268 230 9,498 Numbers may not foot due to rounding. As a result of adoption of ASU 2014-09, TDS recorded short-term and long-term contract assets and contract liabilities in its Consolidated Balance Sheet as of June 30, 2018 . Under ASU 2014-09, the timing of recognition of revenue for each performance obligation may differ from the timing of the customer billing, creating a contract asset or contract liability. See Contract Balances below for additional information. Contract assets are included in Other current assets if short-term in nature or Other assets and deferred charges if long-term in nature. Short-term contract liabilities are classified as Customer deposits and deferred revenues and long-term contract liabilities are included in Other deferred liabilities and credits. Accounts receivable increased as a result of TDS ceasing to record deferred imputed interest. Certain prepaid expenses have been reclassified as contract cost assets, which are a component of Other assets and deferred charges. Investments in unconsolidated entities increased due to the cumulative effect of applying the provisions of ASU 2014-09 to certain of TDS’ equity method investments as of January 1, 2018. Deferred income tax liabilities, net, increased due to the provisions of ASU 2014-09 increasing the net basis of assets on a U.S. GAAP basis, without a corresponding increase in tax basis. Contract cost assets have also been created as a result of ASU 2014-09 due to capitalization of fulfillment costs and costs to obtain a new contract. See Contract Cost Assets below for additional information. Nature of goods and services The following is a description of principal activities from which TDS generates its revenues. Services and Products Nature, timing of satisfaction of performance obligations, and significant payment terms Wireless services Wireless service includes voice, messaging and data services. Revenue is recognized in Service revenues as wireless service is provided to the customer. Wireless services generally are billed and paid in advance on a monthly basis. Wireless devices and accessories U.S. Cellular offers a comprehensive range of wireless devices such as handsets, modems, mobile hotspots, home phones and tablets for use by its customers, as well as accessories. U.S. Cellular also sells wireless devices to agents and other third-party distributors for resale. U.S. Cellular frequently discounts wireless devices sold to new and current customers. U.S. Cellular also offers customers the option to purchase certain devices under installment contracts over a specified time period. For certain equipment installment plans, after a specified period of time, the customer may have the right to upgrade to a new device. Such upgrades require the customer to enter into an equipment installment contract for the new device, and transfer the existing device to U.S. Cellular. U.S. Cellular recognizes revenue in Equipment and product sales revenues when control of the device or accessory is transferred to the customer, which is generally upon delivery. Wireless roaming U.S. Cellular receives roaming revenues when other wireless carriers’ customers use U.S. Cellular’s wireless systems. U.S. Cellular recognizes revenue in Service revenues when the roaming service is provided to the other carrier’s customer. Wireless Eligible Telecommunications Carrier (ETC) Revenues Telecommunications companies may be designated by states, or in some cases by the FCC, as an ETC to receive support payments from the Universal Service Fund if they provide specified services in “high cost” areas. ETC revenues recognized in the reporting period represent the amounts which U.S. Cellular is entitled to receive for such period, as determined and approved in connection with U.S. Cellular’s designation as an ETC in various states. Wireless tower rents U.S. Cellular receives tower rental revenues when another carrier leases tower space on a U.S. Cellular owned tower. U.S. Cellular recognizes revenue in Service revenues in the period during which the services are provided. Activation fees TDS charges its end customers activation fees in connection with the sale of certain services and equipment. Activation fees charged by TDS Telecom in conjunction with a service offering are deferred and recognized over the average customer’s service period. These fees charged at U.S. Cellular are deferred and recognized over the period benefitted. Wireline services Wireline services include broadband, video and voice services. Revenue is recognized in Service revenues as service is provided to the customer. Wireline services are generally billed and paid in advance on a monthly basis. Wireline wholesale revenues Wholesale revenues include network access services primarily to interexchange and wireless carriers for carrying data and voice traffic on TDS Telecom’s network, special access services and state and federal support payments, including A-CAM. Wholesale revenues are recorded as the related service is provided. Cable services Cable services include broadband, video and voice services. Revenue is recognized in Service revenues as service is provided to the customer. Cable services are generally billed and paid in advance on a monthly basis. IT hardware sales TDS recognizes equipment revenue when it no longer has any requirements to perform, when title has passed and when the products are accepted by the customer. Hosted and managed services HMS Service revenues consist of cloud and hosting solutions, managed services, Enterprise Resource Planning (ERP) application management, colocation services, and IT hardware related maintenance and professional services. Revenues related to these services are recognized as services are provided. Significant Judgments U.S. Cellular and TDS Telecom sell bundled service and equipment offerings. In these instances, TDS recognizes its revenue based on the relative standalone selling prices for each distinct service or equipment performance obligation, or bundles thereof. TDS estimates the standalone selling price of the device or accessory to be its retail price excluding discounts. TDS estimates the standalone selling price of wireless service to be the price offered to customers on month-to-month contracts. Revenues from sales of equipment and products are recognized when control has transferred to the customer. Service revenues are recognized as the related service is provided. Services are deemed to be highly interrelated when the method and timing of transfer and performance risk are the same. Highly interrelated services that are determined to not be distinct have been grouped into a single performance obligation. Each month of services promised is a performance obligation. The series of monthly service performance obligations promised over the course of the contract are combined into a single performance obligation for purposes of the allocation. TDS has made judgments regarding transaction price, including but not limited to issues relating to variable consideration, time value of money and returns. When determined to be significant in the context of the contract, these items are considered in the valuation of transaction price at contract inception or modification, as appropriate. Disaggregation of Revenue In the following table, revenue is disaggregated by type of service and timing of revenue recognition. Service revenues are recognized over time and Equipment sales are point in time. TDS Telecom Three Months Ended June 30, 2018 U.S. Cellular Wireline Cable TDS Telecom Total Corporate, Eliminations and Other Total (Dollars in millions) Revenues from contracts with customers: Type of service: Retail service $ 652 $ – $ – $ – $ – $ 652 Inbound roaming 39 – – – – 39 Residential – 80 47 127 – 127 Commercial – 46 10 57 – 57 Wholesale – 46 – 46 – 46 Other service 33 – – – 18 51 Service revenues from contracts with customers 724 173 57 229 18 971 Equipment and product sales 233 – – 1 28 262 Total revenues from contracts with customers 1 $ 957 $ 173 $ 57 $ 230 $ 46 $ 1,233 Numbers may not foot due to rounding. 1 These amounts do not include revenues outside the scope of ASU 2014-09; therefore, revenue line items in this table will not agree to amounts presented in the Consolidated Statement of Operations. TDS Telecom Six Months Ended June 30, 2018 U.S. Cellular Wireline Cable TDS Telecom Total Corporate, Eliminations and Other Total (Dollars in millions) Revenue from contracts with customers: Type of service: Retail service $ 1,301 $ – $ – $ – $ – $ 1,301 Inbound roaming 66 – – – – 66 Residential – 160 92 253 – 253 Commercial – 94 20 114 – 114 Wholesale – 93 – 93 – 93 Other service 65 – – (1) 34 98 Service revenues from contracts with customers 1,432 348 112 459 34 1,925 Equipment and product sales 450 1 – 1 59 510 Total revenues from contracts with customers 1 $ 1,882 $ 349 $ 112 $ 460 $ 93 $ 2,435 Numbers may not foot due to rounding. 1 These amounts do not include revenues outside the scope of ASU 2014-09; therefore, revenue line items in this table will not agree to amounts presented in the Consolidated Statement of Operations. Contract Balances For contracts that involve multiple element service and equipment offerings, the transaction price is allocated to each performance obligation based on its relative standalone selling price. When payment is collected in advance of delivery of goods or services, a contract liability is recorded. A contract asset is recorded when revenue is recognized in advance of TDS’ right to receive consideration. Once there is an unconditional right to receive the consideration, TDS bills the customer under the terms of the respective contract and the amounts are recorded as receivables. TDS recognizes Equipment and product sales revenue when the equipment is delivered to the customer and a corresponding contract asset or liability is recorded for the difference between the amount of revenue recognized and the amount billed to the customer in cases where discounts are offered. The contract asset or liability is reduced over the contract term as service is provided and billed to the customer. The accounts receivable balance related to amounts billed and not paid on contracts with customers, net of allowances, is shown in the table below. Bad debts expense recognized for the three and six months ended June 30, 2018 , related to receivables was $ 23 million and $ 43 million, respectively. June 30, 2018 (Dollars in millions) Accounts receivable Customer and agents $ 882 Other 78 Total 1 $ 960 1 These amounts do not include accounts receivable related to revenues outside the scope of ASU 2014-09; therefore, accounts receivable line items presented in this table will not agree to amounts presented in the Consolidated Balance Sheet. The following table provides a rollforward of contract assets from contracts with customers, which are recorded in Other current assets and Other assets and deferred charges in the Consolidated Balance Sheet. Contract Assets (Dollars in millions) Balance at December 31, 2017 $ – Change in accounting policy 28 Contract additions 14 Terminated contracts (1) Revenue recognized (14) Balance at June 30, 2018 $ 27 The following table provides a rollforward of contract liabilities from contracts with customers, which are recorded in Customer deposits and deferred revenues and Other deferred liabilities and credits in the Consolidated Balance Sheet. Contract Liabilities (Dollars in millions) Balance at December 31, 2017 $ – Change in accounting policy - Deferred revenues reclassification 1 209 Change in accounting policy - Retained earnings impact (22) Contract additions 85 Revenue recognized (107) Balance at June 30, 2018 $ 165 1 This amount represents TDS' obligation to transfer goods or services to customers for which it had received payment and classified as deferred revenue at December 31, 2017. Transaction price allocated to the remaining performance obligations The following table includes estimated service revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. The estimates represent service revenue to be recognized when services are delivered to customers pursuant to service plan contracts. These estimates are based on contracts in place as of June 30, 2018 , and may vary from actual results due to future contract modifications. As a practical expedient, revenue related to contracts of less than one year, generally contracts with month-to-month customers, are excluded from these estimates. Service Revenue (Dollars in millions) Remainder of 2018 $ 285 2019 200 Thereafter 93 Total $ 578 TDS has certain contracts at U.S. Cellular and TDS Telecom in which it bills an amount equal to a fixed per-unit price multiplied by a variable quantity (e.g., roaming agreements with other carriers). Because TDS invoices for such items in an amount that corresponds directly with the value of the performance completed to date, TDS may recognize revenue in that amount. As a practical expedient, these contracts are excluded from the estimate of future revenues expected to be recognized related to performance obligations that are unsatisfied as of the end of a reporting period. Contract Cost Assets TDS expects that incremental commission fees paid as a result of obtaining contracts are recoverable and therefore TDS capitalizes these costs. As a practical expedient, costs with an amortization period of one year or less are not capitalized. TDS also incurs fulfillment costs, such as installation costs, where there is an expectation that a future benefit will be realized. Capitalized commission fees and fulfillment costs are amortized based on the transfer of the goods or services to which the assets relate, typically the contract term which ranges from thirteen months to five years. Contract cost asset balances, which are recorded in Other assets and deferred charges in the Consolidated Balance Sheet, were as follows: June 30, 2018 (Dollars in millions) Costs to obtain contracts Sales commissions $ 149 Fulfillment costs Installation costs 10 Total contract cost assets $ 159 Amortization of contract cost assets was $ 30 million and $ 62 million for the three and six months ended June 30, 2018 , respectively, and was included in Selling, general and administrative expense. There was no impairment loss recognized for the three and six months ended June 30, 2018 , related to contract cost assets.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 3 Fair Value Measurements As of June 30, 2018 and December 31, 2017 , 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 June 30, 2018 December 31, 2017 Book Value Fair Value Book Value Fair Value (Dollars in millions) Cash and cash equivalents 1 $ 873 $ 873 $ 619 $ 619 Short-term investments 1 – – 100 100 Long-term debt Retail 2 1,753 1,772 1,753 1,783 Institutional 2 534 546 534 522 Other 2 188 187 194 194 The fair values 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, other installment 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 agreement 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 4.60% to 7.45% and 4.74% to 7.13% at June 30, 2018 and December 31, 2017 , respectively.

Equipment Installment Plans

Equipment Installment Plans	6 Months Ended
	Jun. 30, 2018
Receivables [Abstract]
Equipment Installment Plans	Note 4 Equipment Installment Plans TDS sells devices to customers under equipment installment plans 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 June 30, 2018 and December 31, 2017 , the guarantee liability related to these plans was $ 12 million and $ 15 million, respectively, and is reflected in Customer deposits and deferred revenues in the Consolidated Balance Sheet. The following table summarizes equipment installment plan receivables as of June 30, 2018 and December 31, 2017 . June 30, 2018 December 31, 2017 (Dollars in millions) Equipment installment plan receivables, gross $ 887 $ 873 Deferred interest – (80) Equipment installment plan receivables, net of deferred interest 887 793 Allowance for credit losses (62) (65) Equipment installment plan receivables, net $ 825 $ 728 Net balance presented in the Consolidated Balance Sheet as: Accounts receivable — Customers and agents (Current portion) $ 514 $ 428 Other assets and deferred charges (Non-current portion) 311 300 Equipment installment plan receivables, net $ 825 $ 728 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: June 30, 2018 December 31, 2017 Lower Risk Higher Risk Total Lower Risk Higher Risk Total (Dollars in millions) Unbilled $ 828 $ 18 $ 846 $ 807 $ 20 $ 827 Billed — current 26 1 27 31 1 32 Billed — past due 12 2 14 12 2 14 Equipment installment plan receivables, gross $ 866 $ 21 $ 887 $ 850 $ 23 $ 873 Activity for the six months ended June 30, 2018 and 2017 , in the allowance for credit losses balance for the equipment installment plan receivables was as follows: June 30, 2018 June 30, 2017 (Dollars in millions) Allowance for credit losses, beginning of period $ 65 $ 50 Bad debts expense 23 31 Write-offs, net of recoveries (26) (24) Allowance for credit losses, end of period $ 62 $ 57

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Note 5 Income Taxes In December 2017, the Tax Act was signed into law. Following the guidance of the FASB’s Accounting Standards Update 2018-05, Income Taxes: Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 , tax expense for the year ended December 31, 2017, included a provisional estimate for the impact of the Tax Act on TDS’ 2017 depreciation deduction. Tax expense for the six months ended June 30, 2018 , includes an income tax benefit of $ 3 million related to adjusting this provisional estimate. TDS has not completed a full analysis of contracts and agreements related to fixed assets placed in service during 2017. TDS expects any final adjustments to the provisional amounts to be recorded by the third quarter of 2018, which could be material to TDS’ financial statements.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Earnings per Share	N ote 6 Earnings Per Share Basic earnings per share available to TDS common shareholders is computed by dividing Net income available to TDS common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share available to TDS common shareholders is computed by dividing Net income available to TDS common shareholders by the weighted average number of common shares outstanding during the period adjusted to include the effects of potentially dilutive securities. Potentially dilutive securities primarily include incremental shares issuable upon the exercise of outstanding stock options and the vesting of 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 Six Months Ended June 30, June 30, 2018 2017 2018 2017 (Dollars and shares in millions, except per share amounts) Basic earnings per share available to TDS common shareholders: Net income available to TDS common shareholders used in basic earnings per share $ 33 $ 10 $ 72 $ 47 Adjustments to compute diluted earnings: Noncontrolling interest adjustment (1) – (1) – Net income available to TDS common shareholders used in diluted earnings per share $ 32 $ 10 $ 71 $ 47 Weighted average number of shares used in basic earnings per share: Common Shares 105 104 105 103 Series A Common Shares 7 7 7 7 Total 112 111 112 110 Effects of dilutive securities 1 1 1 2 Weighted average number of shares used in diluted earnings per share 113 112 113 112 Basic earnings per share available to TDS common shareholders $ 0.30 $ 0.09 $ 0.65 $ 0.43 Diluted earnings per share available to TDS common shareholders $ 0.29 $ 0.09 $ 0.63 $ 0.42 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 per share available to TDS common shareholders because their effects were antidilutive. The number of such Common Shares excluded was 3 million and 4 million for the three and six months ended June 30, 2018 , respectively, and 5 million and 4 million for the three and six months ended June 30, 2017 , respectively.

Intangible Assets

Intangible Assets	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Note 7 Intangible Assets Activity related to Licenses for the six months ended June 30, 2018 , is presented below. Licenses (Dollars in millions) Balance at December 31, 2017 $ 2,232 Acquisitions 2 Transferred to Assets held for sale (1) Divestitures (10) Exchanges - Licenses received 18 Exchanges - Licenses surrendered (1) Balance at June 30, 2018 $ 2,240

Investments In Unconsolidated E

Investments In Unconsolidated Entities	6 Months Ended
	Jun. 30, 2018
Investments in Unconsolidated Entities [Abstract]
Investments in Unconsolidated Entities	Note 8 Investments in Unconsolidated Entities Investments in unconsolidated entities consist of amounts invested in wireless and wireline entities in which TDS holds a noncontrolling interest. On January 1, 2018, TDS adopted Accounting Standards Update 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01) using the modified retrospective approach. Accordingly, prior periods have not been recast to reflect the new accounting principle. Equity securities are measured at fair value with changes in value recognized in Net income. The cumulative effect of applying the provisions of ASU 2016-01 resulted in an increase of $1 million in retained earnings as of January 1, 2018. TDS’ Investments in unconsolidated entities are accounted for using either the equity method or measurement alternative method as shown in the table below. The measurement alternative method was elected for investments without readily determinable fair values formerly accounted for under the cost method. The measurement alternative fair value represents cost minus any impairments plus or minus any observable price changes. TDS did not have an impairment or observable price change related to these investments for the three and six months ended June 30, 2018 . June 30, December 31, 2018 2017 (Dollars in millions) Equity method investments 458 435 Measurement alternative method investments 19 18 Total investments in unconsolidated entities $ 477 $ 453 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 (Dollars in millions) Revenues $ 1,661 $ 1,636 $ 3,324 $ 3,251 Operating expenses 1,204 1,229 2,417 2,446 Operating income 457 407 907 805 Other income (expense), net 1 (2) (1) (2) Net income $ 458 $ 405 $ 906 $ 803

Debt

Debt	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Debt	Note 9 Debt Revolving Credit Agreements In May 2018, TDS entered into a new $400 million revolving credit agreement with certain lenders and other parties and U.S. Cellular entered into a new $300 million revolving credit agreement with certain lenders and other parties. Amounts under both of the new revolving credit agreements are available for general corporate purposes, including acquisitions, spectrum purchases and capital expenditures, and may be borrowed, repaid and reborrowed from time to time until maturity in May 2023. As a result of the new agreements, TDS’ and U.S. Cellular’s previous revolving credit agreements due to expire in June 2021 were terminated. The following table summarizes the terms of the revolving credit agreements as of June 30, 2018 : TDS U.S. Cellular (Dollars in millions) Maximum borrowing capacity $ 400 $ 300 Letters of credit outstanding $ 1 $ 2 Amount borrowed $ – $ – Amount available for use $ 399 $ 298 Except for the change in the maturity date, the terms of the new revolving credit agreements are substantially the same as the previous revolving credit agreements. Term Loan In May 2018, U.S. Cellular also amended its senior term loan credit agreement in order to align with the new revolving credit agreement. There were no significant changes to the maturity date or other key terms of the agreement.

Variable Interest Entities

Variable Interest Entities	6 Months Ended
	Jun. 30, 2018
Variable Interest Entities [Abstract]
Variable Interest Entities	Note 10 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 the right to receive benefits that are significant to the VIE. TDS reviews these criteria initially at the time it enters into agreements and subsequently when 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, 2017 . During 2017, U.S. Cellular formed USCC EIP LLC (Seller/Sub-Servicer), USCC Receivables Funding LLC (Transferor) and the USCC Master Note Trust (Trust), special purpose entities (SPEs), to facilitate a securitized borrowing using its equipment installment plan receivables. Under a Receivables Sale Agreement, U.S. Cellular wholly-owned, majority-owned and unconsolidated entities, collectively referred to as “affiliated entities”, will transfer device equipment installment plan contracts to the Seller/Sub-Servicer. The Seller/Sub-Servicer will aggregate device equipment installment plan contracts, and perform servicing, collection and all other administrative activities related to accounting for the equipment installment plan contracts. The Seller/Sub-Servicer will sell the eligible equipment installment plan receivables to the Transferor, a bankruptcy remote entity, which will subsequently sell the receivables to the Trust. The Trust, which is bankruptcy remote and isolated from the creditors of U.S. Cellular, will be responsible for issuing asset-backed variable funding notes (Notes), which are collateralized by the equipment installment plan receivables owned by the Trust. Given that U.S. Cellular has the power to direct the activities of these SPEs, and that these SPEs lack sufficient equity to finance their activities, U.S. Cellular is deemed to have a controlling financial interest in the SPEs and, therefore, consolidates them. All transactions with third parties (e.g., issuance of the asset-backed variable funding notes) will be accounted for as a secured borrowing due to the pledging of equipment installment plan contracts as collateral, significant continuing involvement in the transferred assets, subordinated interests of the cash flows, and continued evidence of control of the 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., the general partner of Advantage Spectrum; 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 the six months ended June 30, 2018 , U.S. Cellular received liquidating distributions from Aquinas Wireless, L.P. (Aquinas Wireless). Subsequent to the final distribution date, Aquinas Wireless had no remaining assets and was dissolved. 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. June 30, December 31, 2018 2017 (Dollars in millions) Assets Cash and cash equivalents $ 6 $ 3 Accounts receivable 559 473 Other current assets 8 7 Assets held for sale 1 – Licenses 647 648 Property, plant and equipment, net 85 89 Other assets and deferred charges 320 304 Total assets $ 1,626 $ 1,524 Liabilities Current liabilities $ 26 $ 36 Deferred liabilities and credits 13 12 Total liabilities $ 39 $ 48 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 $ 5 million and $ 4 million at June 30, 2018 and December 31, 2017 , 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 During the six months ended June 30, 2018 and 2017 , TDS made contributions, loans and/or advances to its VIEs totaling $ 51 million and $ 676 million, respectively; of these amounts $ 33 million and $ 659 million, respectively, are related to USCC EIP LLC as discussed above. TDS may agree to make additional capital contributions and/or advances to these or other VIEs and/or to their general partners to provide additional funding for operations or the development of licenses granted in various auctions. TDS may finance such amounts with a combination of cash on hand, borrowings under its revolving credit agreement and/or other long-term debt. There is no assurance that TDS will be able to obtain additional financing on commercially reasonable terms or at all to provide such financial support. During the six months ended June 30, 2018 , TDS recorded an out-of-period adjustment attributable to 2016 and 2017 due to errors in the application of accounting guidance applicable to the calculation of Noncontrolling interests with redemption features related to King Street Wireless, Inc. This out-of-period adjustment had the impact of increasing Net income attributable to noncontrolling interests, net of tax, by $ 6 million and decreasing Net income attributable to TDS shareholders by $ 6 million for the six months ended June 30, 2018 . TDS determined that this adjustment was not material to any of the periods impacted. The adjustment was made in the first quarter of 2018.

Noncontrolling Interests

Noncontrolling Interests	6 Months Ended
	Jun. 30, 2018
Noncontrolling Interests [Abstract]
Noncontrolling Interests	Note 11 Noncontrolling Interests The following schedule discloses the effects of Net income attributable to TDS shareholders and changes in TDS’ ownership interest in U.S. Cellular on TDS’ equity: Six Months Ended June 30, 2018 2017 (Dollars in millions) Net income attributable to TDS shareholders $ 72 $ 47 Transfers to noncontrolling interests Change in TDS' Capital in excess of par value from U.S. Cellular's issuance of U.S. Cellular shares (17) (11) 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 (17) (11) Change from net income attributable to TDS and transfers to noncontrolling interests $ 55 $ 36

Business Segment Information

Business Segment Information	6 Months Ended
	Jun. 30, 2018
Business Segment Information [Abstract]
Business Segment Information	Note 12 Business Segment Information U.S. Cellular and TDS Telecom are billed for all services they receive from TDS, consisting primarily of information processing, accounting and finance, and general management services. Such billings are based on expenses specifically identified to U.S. Cellular and TDS Telecom and on allocations of common expenses. Management believes the method used to allocate common expenses is reasonable and that all expenses and costs applicable to U.S. Cellular and TDS Telecom are reflected in the accompanying business segment information on a basis that is representative of what they would have been if U.S. Cellular and TDS Telecom operated on a stand-alone basis. TDS has re-evaluated internal reporting roles with regard to its HMS business unit and, as a result, has changed its reportable segments. Effective January 1, 2018, HMS is no longer reported under TDS Telecom, but is reported as a part of Corporate, Eliminations and Other. Prior periods have been recast to conform to the revised presentation. Financial data for TDS’ reportable segments for the three and six month periods ended, or as of June 30, 2018 and 2017 , is as follows. See Note 1 — Basis of Presentation for additional information. TDS Telecom Three Months Ended or as of June 30, 2018¹ U.S. Cellular Wireline Cable TDS Telecom Total 2 Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 741 $ 173 $ 57 $ 230 $ 22 $ 993 Equipment and product sales 233 – – 1 28 262 Total operating revenues 974 174 57 230 51 1,255 Cost of services (excluding Depreciation, amortization and accretion reported below) 187 67 27 93 20 300 Cost of equipment and products 240 – – – 26 266 Selling, general and administrative 342 50 15 64 11 417 Depreciation, amortization and accretion 159 36 18 53 8 220 (Gain) loss on asset disposals, net 1 1 – 1 – 2 (Gain) loss on license sales and exchanges, net (11) – – – – (11) Operating income (loss) 56 21 (3) 18 (13) 61 Equity in earnings of unconsolidated entities 40 – – – – 40 Interest and dividend income 3 2 – 2 1 6 Interest expense (29) – – – (14) (43) Other, net – 1 – 1 – 1 Income (loss) before income taxes 70 24 (2) 21 (26) 65 Income tax expense (benefit) 3 18 5 (2) 21 Net income (loss) 52 16 (24) 44 Add back: Depreciation, amortization and accretion 159 36 18 53 8 220 (Gain) loss on asset disposals, net 1 1 – 1 – 2 (Gain) loss on license sales and exchanges, net (11) – – – – (11) Interest expense 29 – – – 14 43 Income tax expense (benefit) 3 18 5 (2) 21 Adjusted EBITDA 4 $ 248 $ 59 $ 16 $ 75 $ (4) $ 319 Investments in unconsolidated entities $ 439 $ 4 $ – $ 4 $ 34 $ 477 Total assets $ 7,075 $ 1,260 $ 643 $ 1,893 $ 530 $ 9,498 Capital expenditures $ 86 $ 33 $ 13 $ 46 $ 6 $ 138 TDS Telecom Three Months Ended or as of June 30, 2017 U.S. Cellular Wireline Cable TDS Telecom Total 2 Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 740 $ 180 $ 51 $ 231 $ 21 $ 992 Equipment and product sales 223 – – – 32 255 Total operating revenues 963 181 51 231 53 1,247 Cost of services (excluding Depreciation, amortization and accretion reported below) 189 65 24 89 20 298 Cost of equipment and products 260 1 – 1 26 287 Selling, general and administrative 5 351 49 13 62 7 420 Depreciation, amortization and accretion 155 37 11 48 8 211 (Gain) loss on asset disposals, net 5 – – 1 – 6 (Gain) loss on license sales and exchanges, net (2) – – – – (2) Operating income (loss) 5 5 28 3 31 (9) 27 Equity in earnings of unconsolidated entities 33 – – – – 33 Interest and dividend income 2 1 – 1 1 4 Interest expense (28) – – – (15) (43) Other, net 5 – 1 – 1 – 1 Income (loss) before income taxes 12 30 3 33 (23) 22 Income tax expense (benefit) 3 – 13 (3) 10 Net income (loss) 12 20 (20) 12 Add back: Depreciation, amortization and accretion 155 37 11 48 8 211 (Gain) loss on asset disposals, net 5 – – 1 – 6 (Gain) loss on license sales and exchanges, net (2) – – – – (2) Interest expense 28 – – – 15 43 Income tax expense (benefit) 3 – 13 (3) 10 Adjusted EBITDA 4 $ 198 $ 67 $ 14 $ 82 $ – $ 280 Investments in unconsolidated entities $ 414 $ 4 $ – $ 4 $ 34 $ 452 Total assets $ 7,077 $ 1,200 $ 611 $ 1,813 $ 488 $ 9,378 Capital expenditures $ 84 $ 33 $ 12 $ 45 $ 5 $ 134 TDS Telecom Six Months Ended or as of June 30, 2018¹ U.S. Cellular Wireline Cable TDS Telecom Total 2 Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 1,465 $ 348 $ 112 $ 460 $ 45 $ 1,970 Equipment and product sales 450 1 – 1 59 510 Total operating revenues 1,915 349 112 461 104 2,480 Cost of services (excluding Depreciation, amortization and accretion reported below) 365 131 52 183 39 587 Cost of equipment and products 459 1 – 1 52 512 Selling, general and administrative 668 97 28 124 21 813 Depreciation, amortization and accretion 317 72 35 107 17 441 (Gain) loss on asset disposals, net 2 1 1 1 – 3 (Gain) loss on license sales and exchanges, net (17) – – – – (17) Operating income (loss) 121 47 (4) 43 (23) 141 Equity in earnings of unconsolidated entities 78 – – – – 78 Interest and dividend income 7 3 – 3 1 11 Interest expense (58) 1 – 1 (29) (86) Other, net (1) 1 – 1 2 2 Income (loss) before income taxes 147 52 (4) 48 (49) 146 Income tax expense (benefit) 3 40 12 (7) 45 Net income (loss) 107 37 (43) 101 Add back: Depreciation, amortization and accretion 317 72 35 107 17 441 (Gain) loss on asset disposals, net 2 1 1 1 – 3 (Gain) loss on license sales and exchanges, net (17) – – – – (17) Interest expense 58 (1) – (1) 29 86 Income tax expense (benefit) 3 40 12 (7) 45 Adjusted EBITDA 4 $ 507 $ 124 $ 32 $ 156 $ (4) $ 659 Investments in unconsolidated entities $ 439 $ 4 $ – $ 4 $ 34 $ 477 Total assets $ 7,075 $ 1,260 $ 643 $ 1,893 $ 530 $ 9,498 Capital expenditures $ 155 $ 62 $ 24 $ 87 $ 11 $ 253 TDS Telecom Six Months Ended or as of June 30, 2017 U.S. Cellular Wireline Cable TDS Telecom Total 2 Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 1,486 $ 359 $ 100 $ 459 $ 44 $ 1,989 Equipment and product sales 413 1 – 1 82 496 Total operating revenues 1,899 360 100 459 127 2,485 Cost of services (excluding Depreciation, amortization and accretion reported below) 364 129 48 176 40 580 Cost of equipment and products 488 1 – 1 68 557 Selling, general and administrative 5 691 97 25 123 12 826 Depreciation, amortization and accretion 307 76 21 97 18 422 (Gain) loss on asset disposals, net 9 1 1 1 – 10 (Gain) loss on license sales and exchanges, net (19) – – – – (19) Operating income (loss) 5 59 56 5 61 (11) 109 Equity in earnings of unconsolidated entities 66 – – – (1) 65 Interest and dividend income 5 2 – 2 1 8 Interest expense (56) – – – (29) (85) Other, net 5 (1) 2 – 2 1 2 Income (loss) before income taxes 73 60 5 65 (39) 99 Income tax expense (benefit) 3 33 25 (14) 44 Net income (loss) 40 40 (25) 55 Add back: Depreciation, amortization and accretion 307 76 21 97 18 422 (Gain) loss on asset disposals, net 9 1 1 1 – 10 (Gain) loss on license sales and exchanges, net (19) – – – – (19) Interest expense 56 – – – 29 85 Income tax expense (benefit) 3 33 25 (14) 44 Adjusted EBITDA 4 $ 426 $ 137 $ 27 $ 164 $ 7 $ 597 Investments in unconsolidated entities $ 414 $ 4 $ – $ 4 $ 34 $ 452 Total assets $ 7,077 $ 1,200 $ 611 $ 1,813 $ 488 $ 9,378 Capital expenditures $ 145 $ 50 $ 21 $ 71 $ 14 $ 230 Numbers may not foot due to rounding. 1 As of January 1, 2018, TDS adopted ASU 2014-09 using a modified retrospective approach. Under this method, the new accounting standard is applied only to the most recent period presented. As a result, 2018 amounts include the impacts of ASU 2014-09, but 2017 amounts remain as previously reported, except as specifically stated. See Note 2 — Revenue Recognition for additional information. 2 TDS Telecom Total includes eliminations between the Wireline and Cable segments. 3 Income tax expense (benefit) is not provided at the individual segment level for Wireline and Cable. 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 ASU 2017-07, regarding net periodic pension cost and net periodic postretirement benefit cost was adopted as of January 1, 2018, and applied retrospectively. All prior year numbers have been recast to conform to this standard.

Summary of Significant Accounti

Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Significant Accounting Policies)	6 Months Ended
	Jun. 30, 2018
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 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 June 30, 2018 , are U.S. Cellular, Wireline, and Cable. TDS’ non-reportable other business activities are presented as “Corporate, Eliminations and Other”, which includes the operations of TDS’ wholly-owned hosted and managed services (HMS) subsidiary, which operates under the OneNeck IT Solutions brand, and its wholly-owned subsidiary Suttle-Straus, Inc. (Suttle-Straus). HMS’ and 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 12 — 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, 2017 . 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 June 30, 2018 and December 31, 2017 , its results of operations and comprehensive income for the three and six months ended June 30, 2018 and 2017 , and its cash flows and changes in equity for the six months ended June 30, 2018 and 2017 . 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, 2017 , except as described below and as disclosed in Note 2 — Revenue Recognition and Note 8 — Investments in Unconsolidated Entities .
Change in Reportable Segments	TDS re-evaluated internal reporting roles with regard to its HMS business unit and, as a result, changed its reportable segments. Effective January 1, 2018, HMS was considered a non-reportable segment and is no longer being reported under TDS Telecom. This change enables TDS Telecom to continue to successfully execute on the Wireline and Cable segments’ shared strategy to be the preferred service provider in its markets. Additionally, this change allows HMS to leverage TDS’ corporate IT resources, to improve operations and customer service, and better position itself for growth. Prior periods have been recast to conform to this revised presentation. See Note 12 — Business Segment Information for additional information on TDS’ reportable segments.
Change in Accounting Estimate	Effective January 1, 2018, TDS prospectively changed its estimated useful life for cable video franchise rights from indefinite-lived to 15 years due primarily to the effects of increasing competition and advancements in technology for delivering and consuming video programming. Commensurate with this change, TDS reviewed its cable video franchise rights for impairment, and noted that no impairment existed as of January 1, 2018. As a result, Depreciation, amortization and accretion increased $4 million, calculated on a straight-line basis, and Net income decreased $3 million or $0.03 per share (Basic and Diluted) for the three months ended June 30, 2018. For the six months ended June 30, 2018, Depreciation, amortization and accretion increased $9 million, calculated on a straight-line basis, and Net income decreased $7 million or $0.06 per share (Basic and Diluted).
Recently Adopted Accounting Pronouncements	In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers 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, collectively referred to hereinafter as ASU 2014-09. These standards replace existing revenue recognition rules with a single comprehensive model to use in accounting for revenue arising from contracts with customers. 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 adopted the provisions of ASU 2014-09 and ASU 2017-05 and applied them to all contracts as of January 1, 2018, using a modified retrospective method. Under this method, the new accounting standard is applied only to the most recent period presented, recognizing the cumulative effect of the accounting change as an adjustment to the beginning balance of retained earnings. Accordingly, prior periods have not been recast to reflect the new accounting standard. The cumulative effect of applying the provisions of ASU 2014-09 resulted in an increase of $164 million in retained earnings as of January 1, 2018. ASU 2017-05 had no impact to retained earnings as of January 1, 2018. 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 TDS to 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 new accounting standard also specifies that only the service cost component of net benefit cost is eligible for capitalization. TDS adopted ASU 2017-07 retrospectively on January 1, 2018, and prior periods have been recast to reflect ASU 2017-07. As a result of the adoption of ASU 2017-07, Selling, general and administrative expenses for the three and six months months ended June 30, 2017, increased by $1 million from previously reported amounts, with a corresponding increase in Other, net income. This change did not have an impact on Income before income taxes, Net income, or Earnings per share for the three and six months ended June 30, 2017, nor did it have a cumulative impact to Retained earnings as of the date presented. On January 1, 2018, TDS adopted Accounting Standards Update 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01) using the modified retrospective approach. Accordingly, prior periods have not been recast to reflect the new accounting principle. Equity securities are measured at fair value with changes in value recognized in Net income. The cumulative effect of applying the provisions of ASU 2016-01 resulted in an increase of $1 million in retained earnings as of January 1, 2018.
Recently Issued Accounting Pronouncements Not Yet Adopted	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 . Early adoption is permitted; however, TDS plans to adopt ASU 2016-02 on a modified retrospective basis when required on January 1, 2019. In January 2018, the FASB issued Accounting Standards Update 2018-01, Leases (ASU 2018-01), which permits an entity to elect an optional transition practical expedient to not evaluate land easements that exist or expired before the entities adoption of ASU 2016-02. TDS plans to adopt ASU 2018-01 in conjunction with its adoption of ASU 2016-02. TDS is evaluating the full effect that adoption of ASU 2016-02 and ASU 2018-01 will have on its financial condition, results of operations and disclosures. Upon adoption, TDS expects a substantial increase to assets and liabilities on its balance sheet and is in the process of implementing a new lease management and accounting system to assist in the application of the new standard. 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, using the modified retrospective approach. Early adoption is permitted as of January 1, 2019. TDS is evaluating the effects that adoption of ASU 2016-13 will have on its financial position, results of operations and disclosures. In June 2018, the FASB issued Accounting Standards Update 2018-07 , Compensation—Stock Compensation, Improvements to Nonemployee Share-Based Payment Accounting (ASU 2018-07). ASU 2018-07 expands the scope of Accounting Standards Codification (ASC) 718, Compensation—Stock Compensation , which currently only includes share-based payments issued to employees, to also include share-based payments issued to nonemployees for goods and services. TDS is required to adopt ASU 2018-07 on January 1, 2019, using the modified retrospective approach. Early adoption is permitted. The adoption of ASU 2018-07 is not expected to have a significant impact on TDS’ financial position or results of operations.
Revenue Recognition	The following is a description of principal activities from which TDS generates its revenues. Services and Products Nature, timing of satisfaction of performance obligations, and significant payment terms Wireless services Wireless service includes voice, messaging and data services. Revenue is recognized in Service revenues as wireless service is provided to the customer. Wireless services generally are billed and paid in advance on a monthly basis. Wireless devices and accessories U.S. Cellular offers a comprehensive range of wireless devices such as handsets, modems, mobile hotspots, home phones and tablets for use by its customers, as well as accessories. U.S. Cellular also sells wireless devices to agents and other third-party distributors for resale. U.S. Cellular frequently discounts wireless devices sold to new and current customers. U.S. Cellular also offers customers the option to purchase certain devices under installment contracts over a specified time period. For certain equipment installment plans, after a specified period of time, the customer may have the right to upgrade to a new device. Such upgrades require the customer to enter into an equipment installment contract for the new device, and transfer the existing device to U.S. Cellular. U.S. Cellular recognizes revenue in Equipment and product sales revenues when control of the device or accessory is transferred to the customer, which is generally upon delivery. Wireless roaming U.S. Cellular receives roaming revenues when other wireless carriers’ customers use U.S. Cellular’s wireless systems. U.S. Cellular recognizes revenue in Service revenues when the roaming service is provided to the other carrier’s customer. Wireless Eligible Telecommunications Carrier (ETC) Revenues Telecommunications companies may be designated by states, or in some cases by the FCC, as an ETC to receive support payments from the Universal Service Fund if they provide specified services in “high cost” areas. ETC revenues recognized in the reporting period represent the amounts which U.S. Cellular is entitled to receive for such period, as determined and approved in connection with U.S. Cellular’s designation as an ETC in various states. Wireless tower rents U.S. Cellular receives tower rental revenues when another carrier leases tower space on a U.S. Cellular owned tower. U.S. Cellular recognizes revenue in Service revenues in the period during which the services are provided. Activation fees TDS charges its end customers activation fees in connection with the sale of certain services and equipment. Activation fees charged by TDS Telecom in conjunction with a service offering are deferred and recognized over the average customer’s service period. These fees charged at U.S. Cellular are deferred and recognized over the period benefitted. Wireline services Wireline services include broadband, video and voice services. Revenue is recognized in Service revenues as service is provided to the customer. Wireline services are generally billed and paid in advance on a monthly basis. Wireline wholesale revenues Wholesale revenues include network access services primarily to interexchange and wireless carriers for carrying data and voice traffic on TDS Telecom’s network, special access services and state and federal support payments, including A-CAM. Wholesale revenues are recorded as the related service is provided. Cable services Cable services include broadband, video and voice services. Revenue is recognized in Service revenues as service is provided to the customer. Cable services are generally billed and paid in advance on a monthly basis. IT hardware sales TDS recognizes equipment revenue when it no longer has any requirements to perform, when title has passed and when the products are accepted by the customer. Hosted and managed services HMS Service revenues consist of cloud and hosting solutions, managed services, Enterprise Resource Planning (ERP) application management, colocation services, and IT hardware related maintenance and professional services. Revenues related to these services are recognized as services are provided. Significant Judgments U.S. Cellular and TDS Telecom sell bundled service and equipment offerings. In these instances, TDS recognizes its revenue based on the relative standalone selling prices for each distinct service or equipment performance obligation, or bundles thereof. TDS estimates the standalone selling price of the device or accessory to be its retail price excluding discounts. TDS estimates the standalone selling price of wireless service to be the price offered to customers on month-to-month contracts. Revenues from sales of equipment and products are recognized when control has transferred to the customer. Service revenues are recognized as the related service is provided. Services are deemed to be highly interrelated when the method and timing of transfer and performance risk are the same. Highly interrelated services that are determined to not be distinct have been grouped into a single performance obligation. Each month of services promised is a performance obligation. The series of monthly service performance obligations promised over the course of the contract are combined into a single performance obligation for purposes of the allocation. TDS has made judgments regarding transaction price, including but not limited to issues relating to variable consideration, time value of money and returns. When determined to be significant in the context of the contract, these items are considered in the valuation of transaction price at contract inception or modification, as appropriate.
Revenue from Contract with Customer	TDS adopted the provisions of ASU 2014-09 and ASU 2017-05 and applied them to all contracts as of January 1, 2018, using a modified retrospective method. Under this method, the new accounting standard is applied only to the most recent period presented, recognizing the cumulative effect of the accounting change as an adjustment to the beginning balance of retained earnings. As a practical expedient, TDS groups similar contracts or similar performance obligations together into portfolios of contracts or performance obligations if doing so does not result in a significant difference from applying the new accounting standard to the individual contracts. TDS applies this grouping method for the following types of transactions: device activation fees, contract acquisition costs, contract fulfillment costs, and certain customer promotions. Contract portfolios will be recognized over the respective expected customer lives or terms of the contracts. Transaction price allocated to the remaining performance obligations As a practical expedient, revenue related to contracts of less than one year, generally contracts with month-to-month customers, are excluded from these estimates. TDS has certain contracts at U.S. Cellular and TDS Telecom in which it bills customers an amount equal to a fixed per-unit price multiplied by a variable quantity (e.g., roaming agreements with other carriers). Because TDS invoices customers in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date, TDS may recognize revenue in that amount. As a practical expedient, these contracts will be excluded from the estimate of future revenues expected to be recognized related to performance obligations that are unsatisfied as of the end of a reporting period. Contract Cost Assets As a practical expedient, costs with an amortization period of one year or less are not capitalized.
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 the right to receive benefits that are significant to the VIE. TDS reviews these criteria initially at the time it enters into agreements and subsequently when 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, 2017 .

Basis of Presentation (Tables)

Basis of Presentation (Tables)	6 Months Ended
	Jun. 30, 2018
Basis of Presentation [Abstract]
Reconciliation of cash, cash equivalents and restricted cash	Restricted Cash TDS presents restricted cash with cash and cash equivalents in the Consolidated Statement of Cash Flows. The following table provides a reconciliation of Cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheet to the total of the amounts in the Consolidated Statement of Cash Flows as of June 30, 2018 and December 31, 2017 . June 30, December 31, 2018 2017 (Dollars in millions) Cash and cash equivalents $ 873 $ 619 Restricted cash included in Other current assets 4 3 Cash, cash equivalents and restricted cash in the statement of cash flows $ 877 $ 622

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Adoption impact of ASU 2014-09 and ASU 2017-15 on financial statements	The line items impacted by the adoption of ASU 2014-09 and ASU 2017-05 on the Consolidated Statement of Operations, Consolidated Statement of Cash Flows and the Consolidated Balance Sheet are presented below. Consolidated Statement of Operations Results under prior accounting standards Three Months Ended June 30, 2018 Adjustment As reported (Dollars and shares in millions, except per share amounts) Operating revenues Service $ 1,022 $ (29) $ 993 Equipment and product sales 241 21 262 Total operating revenues 1,263 (8) 1,255 Cost of equipment and products 268 (2) 266 Selling, general and administrative 413 4 417 (Gain) loss on license sales and exchanges, net (11) – (11) Total operating expenses 1,192 2 1,194 Operating income (loss) 71 (10) 61 Income (loss) before income taxes 75 (10) 65 Income tax expense (benefit) 23 (2) 21 Net income (loss) 52 (8) 44 Less: Net income attributable to noncontrolling interests, net of tax 12 (1) 11 Net income (loss) attributable to TDS shareholders 39 (6) 33 Net income (loss) available to TDS common shareholders 39 (6) 33 Basic earnings (loss) per share available to TDS common shareholders 0.35 (0.05) 0.30 Diluted earnings (loss) per share available to TDS common shareholders 0.35 (0.06) 0.29 Numbers may not foot due to rounding. Results under prior accounting standards Adjustment As reported Six Months Ended June 30, 2018 (Dollars and shares in millions, except per share amounts) Operating revenues Service $ 2,029 $ (59) $ 1,970 Equipment and product sales 468 42 510 Total operating revenues 2,497 (17) 2,480 Cost of equipment and products 517 (5) 512 Selling, general and administrative 809 4 813 (Gain) loss on license sales and exchanges, net (16) (1) (17) Total operating expenses 2,341 (2) 2,339 Operating income (loss) 157 (16) 141 Income (loss) before income taxes 162 (16) 146 Income tax expense (benefit) 49 (4) 45 Net income (loss) 112 (11) 101 Less: Net income attributable to noncontrolling interests, net of tax 31 (2) 29 Net income (loss) attributable to TDS shareholders 81 (9) 72 Net income (loss) available to TDS common shareholders 81 (9) 72 Basic earnings (loss) per share available to TDS common shareholders 0.73 (0.08) 0.65 Diluted earnings (loss) per share available to TDS common shareholders $ 0.72 $ (0.09) $ 0.63 Numbers may not foot due to rounding. Consolidated Balance Sheet Results under prior accounting standards Adjustment As reported As of June 30, 2018 (Dollars in millions) Accounts receivable Customers and agents, less allowances $ 830 $ 56 $ 886 Other, less allowances 113 (12) 101 Prepaid expenses 122 (19) 103 Other current assets 26 17 43 Total current assets 2,119 41 2,160 Licenses 2,239 1 2,240 Investments in unconsolidated entities 462 15 477 Other assets and deferred charges 414 172 586 Total assets 9,268 230 9,498 Customer deposits and deferred revenues 183 (18) 165 Accrued taxes 55 (1) 54 Other current liabilities 94 4 98 Total current liabilities 745 (16) 729 Deferred income tax liability, net 580 56 636 Other deferred liabilities and credits 515 8 523 Retained earnings 2,539 153 2,692 Total TDS shareholders' equity 4,331 153 4,484 Noncontrolling interests 659 29 688 Total equity 4,991 181 5,172 Total liabilities and equity 9,268 230 9,498 Numbers may not foot due to rounding.
Disaggregation of Revenues	Disaggregation of Revenue In the following table, revenue is disaggregated by type of service and timing of revenue recognition. Service revenues are recognized over time and Equipment sales are point in time. TDS Telecom Three Months Ended June 30, 2018 U.S. Cellular Wireline Cable TDS Telecom Total Corporate, Eliminations and Other Total (Dollars in millions) Revenues from contracts with customers: Type of service: Retail service $ 652 $ – $ – $ – $ – $ 652 Inbound roaming 39 – – – – 39 Residential – 80 47 127 – 127 Commercial – 46 10 57 – 57 Wholesale – 46 – 46 – 46 Other service 33 – – – 18 51 Service revenues from contracts with customers 724 173 57 229 18 971 Equipment and product sales 233 – – 1 28 262 Total revenues from contracts with customers 1 $ 957 $ 173 $ 57 $ 230 $ 46 $ 1,233 Numbers may not foot due to rounding. 1 These amounts do not include revenues outside the scope of ASU 2014-09; therefore, revenue line items in this table will not agree to amounts presented in the Consolidated Statement of Operations. TDS Telecom Six Months Ended June 30, 2018 U.S. Cellular Wireline Cable TDS Telecom Total Corporate, Eliminations and Other Total (Dollars in millions) Revenue from contracts with customers: Type of service: Retail service $ 1,301 $ – $ – $ – $ – $ 1,301 Inbound roaming 66 – – – – 66 Residential – 160 92 253 – 253 Commercial – 94 20 114 – 114 Wholesale – 93 – 93 – 93 Other service 65 – – (1) 34 98 Service revenues from contracts with customers 1,432 348 112 459 34 1,925 Equipment and product sales 450 1 – 1 59 510 Total revenues from contracts with customers 1 $ 1,882 $ 349 $ 112 $ 460 $ 93 $ 2,435 Numbers may not foot due to rounding. 1 These amounts do not include revenues outside the scope of ASU 2014-09; therefore, revenue line items in this table will not agree to amounts presented in the Consolidated Statement of Operations.
Contract with Customer, Assets and Liabilities	The accounts receivable balance related to amounts billed and not paid on contracts with customers, net of allowances, is shown in the table below. Bad debts expense recognized for the three and six months ended June 30, 2018 , related to receivables was $ 23 million and $ 43 million, respectively. June 30, 2018 (Dollars in millions) Accounts receivable Customer and agents $ 882 Other 78 Total 1 $ 960 1 These amounts do not include accounts receivable related to revenues outside the scope of ASU 2014-09; therefore, accounts receivable line items presented in this table will not agree to amounts presented in the Consolidated Balance Sheet. The following table provides a rollforward of contract assets from contracts with customers, which are recorded in Other current assets and Other assets and deferred charges in the Consolidated Balance Sheet. Contract Assets (Dollars in millions) Balance at December 31, 2017 $ – Change in accounting policy 28 Contract additions 14 Terminated contracts (1) Revenue recognized (14) Balance at June 30, 2018 $ 27 The following table provides a rollforward of contract liabilities from contracts with customers, which are recorded in Customer deposits and deferred revenues and Other deferred liabilities and credits in the Consolidated Balance Sheet. Contract Liabilities (Dollars in millions) Balance at December 31, 2017 $ – Change in accounting policy - Deferred revenues reclassification 1 209 Change in accounting policy - Retained earnings impact (22) Contract additions 85 Revenue recognized (107) Balance at June 30, 2018 $ 165 1 This amount represents TDS' obligation to transfer goods or services to customers for which it had received payment and classified as deferred revenue at December 31, 2017.
Remaining Performance Obligations	Transaction price allocated to the remaining performance obligations The following table includes estimated service revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. The estimates represent service revenue to be recognized when services are delivered to customers pursuant to service plan contracts. These estimates are based on contracts in place as of June 30, 2018 , and may vary from actual results due to future contract modifications. As a practical expedient, revenue related to contracts of less than one year, generally contracts with month-to-month customers, are excluded from these estimates. Service Revenue (Dollars in millions) Remainder of 2018 $ 285 2019 200 Thereafter 93 Total $ 578
Contract Cost Assets	Capitalized commission fees and fulfillment costs are amortized based on the transfer of the goods or services to which the assets relate, typically the contract term which ranges from thirteen months to five years. Contract cost asset balances, which are recorded in Other assets and deferred charges in the Consolidated Balance Sheet, were as follows: June 30, 2018 (Dollars in millions) Costs to obtain contracts Sales commissions $ 149 Fulfillment costs Installation costs 10 Total contract cost assets $ 159

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2018
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 June 30, 2018 December 31, 2017 Book Value Fair Value Book Value Fair Value (Dollars in millions) Cash and cash equivalents 1 $ 873 $ 873 $ 619 $ 619 Short-term investments 1 – – 100 100 Long-term debt Retail 2 1,753 1,772 1,753 1,783 Institutional 2 534 546 534 522 Other 2 188 187 194 194

Equipment Installment Plans (Ta

Equipment Installment Plans (Table)	6 Months Ended
	Jun. 30, 2018
Receivables [Abstract]
Equipment installment plan receivables	The following table summarizes equipment installment plan receivables as of June 30, 2018 and December 31, 2017 . June 30, 2018 December 31, 2017 (Dollars in millions) Equipment installment plan receivables, gross $ 887 $ 873 Deferred interest – (80) Equipment installment plan receivables, net of deferred interest 887 793 Allowance for credit losses (62) (65) Equipment installment plan receivables, net $ 825 $ 728 Net balance presented in the Consolidated Balance Sheet as: Accounts receivable — Customers and agents (Current portion) $ 514 $ 428 Other assets and deferred charges (Non-current portion) 311 300 Equipment installment plan receivables, net $ 825 $ 728
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: June 30, 2018 December 31, 2017 Lower Risk Higher Risk Total Lower Risk Higher Risk Total (Dollars in millions) Unbilled $ 828 $ 18 $ 846 $ 807 $ 20 $ 827 Billed — current 26 1 27 31 1 32 Billed — past due 12 2 14 12 2 14 Equipment installment plan receivables, gross $ 866 $ 21 $ 887 $ 850 $ 23 $ 873
Equipment installment plans allowance for credit losses	Activity for the six months ended June 30, 2018 and 2017 , in the allowance for credit losses balance for the equipment installment plan receivables was as follows: June 30, 2018 June 30, 2017 (Dollars in millions) Allowance for credit losses, beginning of period $ 65 $ 50 Bad debts expense 23 31 Write-offs, net of recoveries (26) (24) Allowance for credit losses, end of period $ 62 $ 57

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2018
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 Six Months Ended June 30, June 30, 2018 2017 2018 2017 (Dollars and shares in millions, except per share amounts) Basic earnings per share available to TDS common shareholders: Net income available to TDS common shareholders used in basic earnings per share $ 33 $ 10 $ 72 $ 47 Adjustments to compute diluted earnings: Noncontrolling interest adjustment (1) – (1) – Net income available to TDS common shareholders used in diluted earnings per share $ 32 $ 10 $ 71 $ 47 Weighted average number of shares used in basic earnings per share: Common Shares 105 104 105 103 Series A Common Shares 7 7 7 7 Total 112 111 112 110 Effects of dilutive securities 1 1 1 2 Weighted average number of shares used in diluted earnings per share 113 112 113 112 Basic earnings per share available to TDS common shareholders $ 0.30 $ 0.09 $ 0.65 $ 0.43 Diluted earnings per share available to TDS common shareholders $ 0.29 $ 0.09 $ 0.63 $ 0.42

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2018
Licenses
Licenses	Activity related to Licenses for the six months ended June 30, 2018 , is presented below. Licenses (Dollars in millions) Balance at December 31, 2017 $ 2,232 Acquisitions 2 Transferred to Assets held for sale (1) Divestitures (10) Exchanges - Licenses received 18 Exchanges - Licenses surrendered (1) Balance at June 30, 2018 $ 2,240

Investment in Unconsolidated En

Investment in Unconsolidated Entities (Tables)	6 Months Ended
	Jun. 30, 2018
Investments in Unconsolidated Entities [Abstract]
Equity and measurement alternative method investments	TDS’ Investments in unconsolidated entities are accounted for using either the equity method or measurement alternative method as shown in the table below. The measurement alternative method was elected for investments without readily determinable fair values formerly accounted for under the cost method. The measurement alternative fair value represents cost minus any impairments plus or minus any observable price changes. TDS did not have an impairment or observable price change related to these investments for the three and six months ended June 30, 2018 . June 30, December 31, 2018 2017 (Dollars in millions) Equity method investments 458 435 Measurement alternative method investments 19 18 Total investments in unconsolidated entities $ 477 $ 453
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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 (Dollars in millions) Revenues $ 1,661 $ 1,636 $ 3,324 $ 3,251 Operating expenses 1,204 1,229 2,417 2,446 Operating income 457 407 907 805 Other income (expense), net 1 (2) (1) (2) Net income $ 458 $ 405 $ 906 $ 803

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Revolving credit facilities	The following table summarizes the terms of the revolving credit agreements as of June 30, 2018 : TDS U.S. Cellular (Dollars in millions) Maximum borrowing capacity $ 400 $ 300 Letters of credit outstanding $ 1 $ 2 Amount borrowed $ – $ – Amount available for use $ 399 $ 298

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	6 Months Ended
	Jun. 30, 2018
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. June 30, December 31, 2018 2017 (Dollars in millions) Assets Cash and cash equivalents $ 6 $ 3 Accounts receivable 559 473 Other current assets 8 7 Assets held for sale 1 – Licenses 647 648 Property, plant and equipment, net 85 89 Other assets and deferred charges 320 304 Total assets $ 1,626 $ 1,524 Liabilities Current liabilities $ 26 $ 36 Deferred liabilities and credits 13 12 Total liabilities $ 39 $ 48

Noncontrolling Interests (Table

Noncontrolling Interests (Tables)	6 Months Ended
	Jun. 30, 2018
Noncontrolling Interests [Abstract]
Noncontrolling interests	The following schedule discloses the effects of Net income attributable to TDS shareholders and changes in TDS’ ownership interest in U.S. Cellular on TDS’ equity: Six Months Ended June 30, 2018 2017 (Dollars in millions) Net income attributable to TDS shareholders $ 72 $ 47 Transfers to noncontrolling interests Change in TDS' Capital in excess of par value from U.S. Cellular's issuance of U.S. Cellular shares (17) (11) 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 (17) (11) Change from net income attributable to TDS and transfers to noncontrolling interests $ 55 $ 36

Business Segment (Tables)

Business Segment (Tables)	6 Months Ended
	Jun. 30, 2018
Business Segment Information [Abstract]
Business segment information	Financial data for TDS’ reportable segments for the three and six month periods ended, or as of June 30, 2018 and 2017 , is as follows. See Note 1 — Basis of Presentation for additional information. TDS Telecom Three Months Ended or as of June 30, 2018¹ U.S. Cellular Wireline Cable TDS Telecom Total 2 Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 741 $ 173 $ 57 $ 230 $ 22 $ 993 Equipment and product sales 233 – – 1 28 262 Total operating revenues 974 174 57 230 51 1,255 Cost of services (excluding Depreciation, amortization and accretion reported below) 187 67 27 93 20 300 Cost of equipment and products 240 – – – 26 266 Selling, general and administrative 342 50 15 64 11 417 Depreciation, amortization and accretion 159 36 18 53 8 220 (Gain) loss on asset disposals, net 1 1 – 1 – 2 (Gain) loss on license sales and exchanges, net (11) – – – – (11) Operating income (loss) 56 21 (3) 18 (13) 61 Equity in earnings of unconsolidated entities 40 – – – – 40 Interest and dividend income 3 2 – 2 1 6 Interest expense (29) – – – (14) (43) Other, net – 1 – 1 – 1 Income (loss) before income taxes 70 24 (2) 21 (26) 65 Income tax expense (benefit) 3 18 5 (2) 21 Net income (loss) 52 16 (24) 44 Add back: Depreciation, amortization and accretion 159 36 18 53 8 220 (Gain) loss on asset disposals, net 1 1 – 1 – 2 (Gain) loss on license sales and exchanges, net (11) – – – – (11) Interest expense 29 – – – 14 43 Income tax expense (benefit) 3 18 5 (2) 21 Adjusted EBITDA 4 $ 248 $ 59 $ 16 $ 75 $ (4) $ 319 Investments in unconsolidated entities $ 439 $ 4 $ – $ 4 $ 34 $ 477 Total assets $ 7,075 $ 1,260 $ 643 $ 1,893 $ 530 $ 9,498 Capital expenditures $ 86 $ 33 $ 13 $ 46 $ 6 $ 138 TDS Telecom Three Months Ended or as of June 30, 2017 U.S. Cellular Wireline Cable TDS Telecom Total 2 Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 740 $ 180 $ 51 $ 231 $ 21 $ 992 Equipment and product sales 223 – – – 32 255 Total operating revenues 963 181 51 231 53 1,247 Cost of services (excluding Depreciation, amortization and accretion reported below) 189 65 24 89 20 298 Cost of equipment and products 260 1 – 1 26 287 Selling, general and administrative 5 351 49 13 62 7 420 Depreciation, amortization and accretion 155 37 11 48 8 211 (Gain) loss on asset disposals, net 5 – – 1 – 6 (Gain) loss on license sales and exchanges, net (2) – – – – (2) Operating income (loss) 5 5 28 3 31 (9) 27 Equity in earnings of unconsolidated entities 33 – – – – 33 Interest and dividend income 2 1 – 1 1 4 Interest expense (28) – – – (15) (43) Other, net 5 – 1 – 1 – 1 Income (loss) before income taxes 12 30 3 33 (23) 22 Income tax expense (benefit) 3 – 13 (3) 10 Net income (loss) 12 20 (20) 12 Add back: Depreciation, amortization and accretion 155 37 11 48 8 211 (Gain) loss on asset disposals, net 5 – – 1 – 6 (Gain) loss on license sales and exchanges, net (2) – – – – (2) Interest expense 28 – – – 15 43 Income tax expense (benefit) 3 – 13 (3) 10 Adjusted EBITDA 4 $ 198 $ 67 $ 14 $ 82 $ – $ 280 Investments in unconsolidated entities $ 414 $ 4 $ – $ 4 $ 34 $ 452 Total assets $ 7,077 $ 1,200 $ 611 $ 1,813 $ 488 $ 9,378 Capital expenditures $ 84 $ 33 $ 12 $ 45 $ 5 $ 134 TDS Telecom Six Months Ended or as of June 30, 2018¹ U.S. Cellular Wireline Cable TDS Telecom Total 2 Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 1,465 $ 348 $ 112 $ 460 $ 45 $ 1,970 Equipment and product sales 450 1 – 1 59 510 Total operating revenues 1,915 349 112 461 104 2,480 Cost of services (excluding Depreciation, amortization and accretion reported below) 365 131 52 183 39 587 Cost of equipment and products 459 1 – 1 52 512 Selling, general and administrative 668 97 28 124 21 813 Depreciation, amortization and accretion 317 72 35 107 17 441 (Gain) loss on asset disposals, net 2 1 1 1 – 3 (Gain) loss on license sales and exchanges, net (17) – – – – (17) Operating income (loss) 121 47 (4) 43 (23) 141 Equity in earnings of unconsolidated entities 78 – – – – 78 Interest and dividend income 7 3 – 3 1 11 Interest expense (58) 1 – 1 (29) (86) Other, net (1) 1 – 1 2 2 Income (loss) before income taxes 147 52 (4) 48 (49) 146 Income tax expense (benefit) 3 40 12 (7) 45 Net income (loss) 107 37 (43) 101 Add back: Depreciation, amortization and accretion 317 72 35 107 17 441 (Gain) loss on asset disposals, net 2 1 1 1 – 3 (Gain) loss on license sales and exchanges, net (17) – – – – (17) Interest expense 58 (1) – (1) 29 86 Income tax expense (benefit) 3 40 12 (7) 45 Adjusted EBITDA 4 $ 507 $ 124 $ 32 $ 156 $ (4) $ 659 Investments in unconsolidated entities $ 439 $ 4 $ – $ 4 $ 34 $ 477 Total assets $ 7,075 $ 1,260 $ 643 $ 1,893 $ 530 $ 9,498 Capital expenditures $ 155 $ 62 $ 24 $ 87 $ 11 $ 253 TDS Telecom Six Months Ended or as of June 30, 2017 U.S. Cellular Wireline Cable TDS Telecom Total 2 Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 1,486 $ 359 $ 100 $ 459 $ 44 $ 1,989 Equipment and product sales 413 1 – 1 82 496 Total operating revenues 1,899 360 100 459 127 2,485 Cost of services (excluding Depreciation, amortization and accretion reported below) 364 129 48 176 40 580 Cost of equipment and products 488 1 – 1 68 557 Selling, general and administrative 5 691 97 25 123 12 826 Depreciation, amortization and accretion 307 76 21 97 18 422 (Gain) loss on asset disposals, net 9 1 1 1 – 10 (Gain) loss on license sales and exchanges, net (19) – – – – (19) Operating income (loss) 5 59 56 5 61 (11) 109 Equity in earnings of unconsolidated entities 66 – – – (1) 65 Interest and dividend income 5 2 – 2 1 8 Interest expense (56) – – – (29) (85) Other, net 5 (1) 2 – 2 1 2 Income (loss) before income taxes 73 60 5 65 (39) 99 Income tax expense (benefit) 3 33 25 (14) 44 Net income (loss) 40 40 (25) 55 Add back: Depreciation, amortization and accretion 307 76 21 97 18 422 (Gain) loss on asset disposals, net 9 1 1 1 – 10 (Gain) loss on license sales and exchanges, net (19) – – – – (19) Interest expense 56 – – – 29 85 Income tax expense (benefit) 3 33 25 (14) 44 Adjusted EBITDA 4 $ 426 $ 137 $ 27 $ 164 $ 7 $ 597 Investments in unconsolidated entities $ 414 $ 4 $ – $ 4 $ 34 $ 452 Total assets $ 7,077 $ 1,200 $ 611 $ 1,813 $ 488 $ 9,378 Capital expenditures $ 145 $ 50 $ 21 $ 71 $ 14 $ 230 Numbers may not foot due to rounding. 1 As of January 1, 2018, TDS adopted ASU 2014-09 using a modified retrospective approach. Under this method, the new accounting standard is applied only to the most recent period presented. As a result, 2018 amounts include the impacts of ASU 2014-09, but 2017 amounts remain as previously reported, except as specifically stated. See Note 2 — Revenue Recognition for additional information. 2 TDS Telecom Total includes eliminations between the Wireline and Cable segments. 3 Income tax expense (benefit) is not provided at the individual segment level for Wireline and Cable. 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 ASU 2017-07, regarding net periodic pension cost and net periodic postretirement benefit cost was adopted as of January 1, 2018, and applied retrospectively. All prior year numbers have been recast to conform to this standard.

Basis of Presentation, Cash, Ca

Basis of Presentation, Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Basis of Presentation [Abstract]
Cash and cash equivalents	$ 873	$ 619
Restricted cash included in Other current assets	4	3
Cash, cash equivalents and restricted cash in the statement of cash flows	$ 877	$ 622	$ 795	$ 904

Basis of Presentation, Narrativ

Basis of Presentation, Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Basis of Presentation [Line Items]
Depreciation, amortization and accretion	$ 220	$ 211	$ 441	$ 422
Selling, general and administrative	417	420	813	826
Other, net income	1	1	2	2
Income before income taxes	65	22	146	99
Net income	$ 44	$ 12	$ 101	$ 55
Basic earnings per share available to TDS common shareholders	$ 0.30	$ 0.09	$ 0.65	$ 0.43
Diluted earnings per share available to TDS common shareholders	$ 0.29	$ 0.09	$ 0.63	$ 0.42
Amounts recorded gross in revenues that are billed to customers and remitted to governmental authorities	$ 22	$ 20	$ 45	$ 38
Franchise rights
Basis of Presentation [Line Items]
Useful life			15 years
Impairment of franchise rights			$ 0
Depreciation, amortization and accretion	4		9
Net income	$ (3)		$ (7)
Basic earnings per share available to TDS common shareholders	$ (0.03)		$ (0.06)
Diluted earnings per share available to TDS common shareholders	$ (0.03)		$ (0.06)
Adjustment | ASU 2017-07
Basis of Presentation [Line Items]
Selling, general and administrative		1		1
Other, net income		1		1
Income before income taxes		0		0
Net income		$ 0		$ 0
Basic earnings per share available to TDS common shareholders		$ 0		$ 0
Cumulative impact to retained earnings		$ 0		$ 0
U.S. Cellular
Basis of Presentation [Line Items]
TDS ownership of U.S. Cellular	83.00%		83.00%

Revenue Recognition Consolidate

Revenue Recognition Consolidated Statement Of Operations (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Operating revenues
Service	$ 993	$ 992	$ 1,970	$ 1,989
Equipment and product sales	262	255	510	496
Total operating revenues	1,255	1,247	2,480	2,485
Cost of equipment and products	266	287	512	557
Selling, general and administrative	417	420	813	826
(Gain) loss on license sales and exchanges, net	(11)	(2)	(17)	(19)
Total operating expenses	1,194	1,220	2,339	2,376
Operating income (loss)	61	27	141	109
Income (loss) before income taxes	65	22	146	99
Income tax expense	21	10	45	44
Net income (loss)	44	12	101	55
Less: Net income attributable to noncontrolling interests, net of tax	11	2	29	8
Net income (loss) attributable to TDS shareholders	33	10	72	47
Net income (loss) avalable to TDS shareholders	$ 33	$ 10	$ 72	$ 47
Basic earnings (loss) per share available to TDS common shareholders	$ 0.30	$ 0.09	$ 0.65	$ 0.43
Diluted earnings per share available to TDS common shareholders	$ 0.29	$ 0.09	$ 0.63	$ 0.42
Results under prior accounting standards
Operating revenues
Service	$ 1,022		$ 2,029
Equipment and product sales	241		468
Total operating revenues	1,263		2,497
Cost of equipment and products	268		517
Selling, general and administrative	413		809
(Gain) loss on license sales and exchanges, net	(11)		(16)
Total operating expenses	1,192		2,341
Operating income (loss)	71		157
Income (loss) before income taxes	75		162
Income tax expense	23		49
Net income (loss)	52		112
Less: Net income attributable to noncontrolling interests, net of tax	12		31
Net income (loss) attributable to TDS shareholders	39		81
Net income (loss) avalable to TDS shareholders	$ 39		$ 81
Basic earnings (loss) per share available to TDS common shareholders	$ 0.35		$ 0.73
Diluted earnings per share available to TDS common shareholders	$ 0.35		$ 0.72
Adjustment | ASU 2014-09
Operating revenues
Service	$ (29)		$ (59)
Equipment and product sales	21		42
Total operating revenues	(8)		(17)
Cost of equipment and products	(2)		(5)
Selling, general and administrative	4		4
(Gain) loss on license sales and exchanges, net	0		(1)
Total operating expenses	2		(2)
Operating income (loss)	(10)		(16)
Income (loss) before income taxes	(10)		(16)
Income tax expense	(2)		(4)
Net income (loss)	(8)		(11)
Less: Net income attributable to noncontrolling interests, net of tax	(1)		(2)
Net income (loss) attributable to TDS shareholders	(6)		(9)
Net income (loss) avalable to TDS shareholders	$ (6)		$ (9)
Basic earnings (loss) per share available to TDS common shareholders	$ (0.05)		$ (0.08)
Diluted earnings per share available to TDS common shareholders	$ (0.06)		$ (0.09)

Revenue Recognition Consolida35

Revenue Recognition Consolidated Balance Sheet (Details) - USD ($) $ in Millions		Jun. 30, 2018		Dec. 31, 2017		Jun. 30, 2017	Dec. 31, 2016
Accounts receivable
Customers and agents, less allowances		$ 886		$ 861
Other, less allowances		101		100
Prepaid expenses		103		112
Other current assets		43		27
Total current assets		2,160		1,966
Licenses		2,240		2,232
Investments in unconsolidated entities		477		453		$ 452
Other assets and deferred charges		586		422
Total assets		9,498	[1]	9,295	[1]	9,378
Customer deposits and deferred revenues		165		223
Accrued taxes		54		64
Other current liabilities		98		106
Total current liabilities		729		918
Deferred income tax liability, net		636		552
Other deferred liabilities and credits		523		495
Retained earnings		2,692		2,525
Total TDS shareholders' equity		4,484		4,269
Noncontrolling interests		688		623
Total equity		5,172		4,892		$ 4,792	$ 4,750
Total liabilities and equity	[1]	9,498		$ 9,295
Results under prior accounting standards
Accounts receivable
Customers and agents, less allowances		830
Other, less allowances		113
Prepaid expenses		122
Other current assets		26
Total current assets		2,119
Licenses		2,239
Investments in unconsolidated entities		462
Other assets and deferred charges		414
Total assets		9,268
Customer deposits and deferred revenues		183
Accrued taxes		55
Other current liabilities		94
Total current liabilities		745
Deferred income tax liability, net		580
Other deferred liabilities and credits		515
Retained earnings		2,539
Total TDS shareholders' equity		4,331
Noncontrolling interests		659
Total equity		4,991
Total liabilities and equity		9,268
Adjustment | ASU 2014-09
Accounts receivable
Customers and agents, less allowances		56
Other, less allowances		(12)
Prepaid expenses		(19)
Other current assets		17
Total current assets		41
Licenses		1
Investments in unconsolidated entities		15
Other assets and deferred charges		172
Total assets		230
Customer deposits and deferred revenues		(18)
Accrued taxes		(1)
Other current liabilities		4
Total current liabilities		(16)
Deferred income tax liability, net		56
Other deferred liabilities and credits		8
Retained earnings		153
Total TDS shareholders' equity		153
Noncontrolling interests		29
Total equity		181
Total liabilities and equity		$ 230
[1]	The consolidated total assets as of June 30, 2018 and December 31, 2017, include assets held by consolidated variable interest entities (VIEs) of $793 million and $765 million, respectively, which are not available to be used to settle the obligations of TDS. The consolidated total liabilities as of June 30, 2018 and December 31, 2017, include certain liabilities of consolidated VIEs of $17 million and $21 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of TDS. See Note 10 — Variable Interest Entities for additional information.

Revenue Recognition Disaggregat

Revenue Recognition Disaggregation Of Revenue (Details) - USD ($) $ in Millions		3 Months Ended	6 Months Ended
		Jun. 30, 2018	Jun. 30, 2018
Revenue from contracts with customers
Revenue from contracts with customers	[1]	$ 1,233	$ 2,435
Transferred over time
Revenue from contracts with customers
Revenue from contracts with customers		971	1,925
Transferred over time | Retail service
Revenue from contracts with customers
Revenue from contracts with customers		652	1,301
Transferred over time | Inbound roaming
Revenue from contracts with customers
Revenue from contracts with customers		39	66
Transferred over time | Residential
Revenue from contracts with customers
Revenue from contracts with customers		127	253
Transferred over time | Commercial
Revenue from contracts with customers
Revenue from contracts with customers		57	114
Transferred over time | Wholesale
Revenue from contracts with customers
Revenue from contracts with customers		46	93
Transferred over time | Other service
Revenue from contracts with customers
Revenue from contracts with customers		51	98
Transferred at point in time | Equipment and product sales
Revenue from contracts with customers
Revenue from contracts with customers		262	510
U.S. Cellular
Revenue from contracts with customers
Revenue from contracts with customers	[1]	957	1,882
U.S. Cellular | Transferred over time
Revenue from contracts with customers
Revenue from contracts with customers		724	1,432
U.S. Cellular | Transferred over time | Retail service
Revenue from contracts with customers
Revenue from contracts with customers		652	1,301
U.S. Cellular | Transferred over time | Inbound roaming
Revenue from contracts with customers
Revenue from contracts with customers		39	66
U.S. Cellular | Transferred over time | Other service
Revenue from contracts with customers
Revenue from contracts with customers		33	65
U.S. Cellular | Transferred at point in time | Equipment and product sales
Revenue from contracts with customers
Revenue from contracts with customers		233	450
TDS Telecom
Revenue from contracts with customers
Revenue from contracts with customers	[1]	230	460
TDS Telecom | Transferred over time
Revenue from contracts with customers
Revenue from contracts with customers		229	459
TDS Telecom | Transferred over time | Residential
Revenue from contracts with customers
Revenue from contracts with customers		127	253
TDS Telecom | Transferred over time | Commercial
Revenue from contracts with customers
Revenue from contracts with customers		57	114
TDS Telecom | Transferred over time | Wholesale
Revenue from contracts with customers
Revenue from contracts with customers		46	93
TDS Telecom | Transferred over time | Other service
Revenue from contracts with customers
Revenue from contracts with customers			(1)
TDS Telecom | Transferred at point in time | Equipment and product sales
Revenue from contracts with customers
Revenue from contracts with customers		1	1
TDS Telecom Wireline
Revenue from contracts with customers
Revenue from contracts with customers	[1]	173	349
TDS Telecom Wireline | Transferred over time
Revenue from contracts with customers
Revenue from contracts with customers		173	348
TDS Telecom Wireline | Transferred over time | Residential
Revenue from contracts with customers
Revenue from contracts with customers		80	160
TDS Telecom Wireline | Transferred over time | Commercial
Revenue from contracts with customers
Revenue from contracts with customers		46	94
TDS Telecom Wireline | Transferred over time | Wholesale
Revenue from contracts with customers
Revenue from contracts with customers		46	93
TDS Telecom Wireline | Transferred at point in time | Equipment and product sales
Revenue from contracts with customers
Revenue from contracts with customers			1
TDS Telecom Cable
Revenue from contracts with customers
Revenue from contracts with customers	[1]	57	112
TDS Telecom Cable | Transferred over time
Revenue from contracts with customers
Revenue from contracts with customers		57	112
TDS Telecom Cable | Transferred over time | Residential
Revenue from contracts with customers
Revenue from contracts with customers		47	92
TDS Telecom Cable | Transferred over time | Commercial
Revenue from contracts with customers
Revenue from contracts with customers		10	20
Corporate, Eliminations and Other
Revenue from contracts with customers
Revenue from contracts with customers	[1]	46	93
Corporate, Eliminations and Other | Transferred over time
Revenue from contracts with customers
Revenue from contracts with customers		18	34
Corporate, Eliminations and Other | Transferred over time | Other service
Revenue from contracts with customers
Revenue from contracts with customers		18	34
Corporate, Eliminations and Other | Transferred at point in time | Equipment and product sales
Revenue from contracts with customers
Revenue from contracts with customers		$ 28	$ 59
[1]	These amounts do not include revenues outside the scope of ASU 2014-09; therefore, revenue line items in this table will not agree to amounts presented in the Consolidated Statement of Operations.

Revenue Recognition, Accounts R

Revenue Recognition, Accounts Receivable (Details) - USD ($) $ in Millions		Jun. 30, 2018	Dec. 31, 2017
Accounts receivable
Customer and agents		$ 886	$ 861
Other		101	$ 100
Accounts receivable from contract with customer
Accounts receivable
Customer and agents		882
Other		78
Total	[1]	$ 960
[1]	These amounts do not include accounts receivable related to revenues outside the scope of ASU 2014-09; therefore, accounts receivable line items presented in this table will not agree to amounts presented in the Consolidated Balance Sheet.

Revenue Recognition, Contract A

Revenue Recognition, Contract Assets (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)
Contract Assets
Change in accounting policy	$ 193
Contract assets
Contract Assets
Balance at December 31, 2017	0
Change in accounting policy	28
Contract additions	14
Terminated contracts	(1)
Revenue recognized	(14)
Balance at June 30, 2018	$ 27

Revenue Recognition, Contract L

Revenue Recognition, Contract Liabilities (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)
Contract Liabilities
Balance at December 31, 2017	$ 0
Change in accounting policy - Deferred revenues reclassification	209	[1]
Change in accounting policy - Retained earnings impact	(22)
Contract additions	85
Revenue recognized	(107)
Balance at June 30, 2018	$ 165
[1]	This amount represents TDS' obligation to transfer goods or services to customers for which it had received payment and classified as deferred revenue at December 31, 2017.

Revenue Recognition, Performanc

Revenue Recognition, Performance Obligations (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)
Revenue, Remaining Performance Obligation, Expected Timing Of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 578
Revenue, Practical Expedient [Abstract]
Remaining performance obligation, practical expedient	true
Remaining performance obligation, practical expedient description	TDS has certain contracts at U.S. Cellular and TDS Telecom in which it bills an amount equal to a fixed per-unit price multiplied by a variable quantity (e.g., roaming agreements with other carriers). Because TDS invoices for such items in an amount that corresponds directly with the value of the performance completed to date, TDS may recognize revenue in that amount. As a practical expedient, these contracts are excluded from the estimate of future revenues expected to be recognized related to performance obligations that are unsatisfied as of the end of a reporting period.
Remainder of 2018
Revenue, Remaining Performance Obligation, Expected Timing Of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 285
2,019
Revenue, Remaining Performance Obligation, Expected Timing Of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	200
Thereafter
Revenue, Remaining Performance Obligation, Expected Timing Of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 93

Revenue Recognition Contract Co

Revenue Recognition Contract Cost Assets (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)
Contract cost assets
Total contract cost assets	$ 159
Practical expedient
Contract cost, practical expedient	true
Sales commissions
Contract cost assets
Total contract cost assets	$ 149
Installation costs
Contract cost assets
Total contract cost assets	$ 10

Revenue Recognition, Narrative

Revenue Recognition, Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Jun. 30, 2017	Jan. 01, 2018
Revenue, Practical Expedient [Abstract]
Revenue recognition completed contract, practical expedient		false
Revenue recognition [Line Items]
Cumulative effect of accounting changes	$ 193	$ 193
Bad debts expense		$ 43	$ 49
Capitalized contract cost
Capitalized contract cost, amortization method		Capitalized commission fees and fulfillment costs are amortized based on the transfer of the goods or services to which the assets relate, typically the contract term which ranges from thirteen months to five years.
Amortization of contract cost assets	30	$ 62
Impairment of capitalized contract cost	0	0
Retained earnings
Revenue recognition [Line Items]
Cumulative effect of accounting changes	163	163
Revenue from contract with customer
Revenue recognition [Line Items]
Bad debts expense	$ 23	$ 43
ASU 2014-09 | Retained earnings
Revenue recognition [Line Items]
Cumulative effect of accounting changes				$ 163
ASU 2017-05 | Retained earnings
Revenue recognition [Line Items]
Cumulative effect of accounting changes				$ 0

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Financial Instruments
Cash and cash equivalents	$ 873	$ 619
Short-term investments	$ 0	$ 100
Institutional and Other | Minimum
Financial Instruments
Fair value assumption, interest rate	4.60%	4.74%
Institutional and Other | Maximum
Financial Instruments
Fair value assumption, interest rate	7.45%	7.13%
Fair Value | Level 1
Financial Instruments
Cash and cash equivalents	$ 873	$ 619
Short-term investments	0	100
Fair Value | Level 2 | Retail
Financial Instruments
Long-term debt	1,772	1,783
Fair Value | Level 2 | Institutional
Financial Instruments
Long-term debt	546	522
Fair Value | Level 2 | Other
Financial Instruments
Long-term debt	187	194
Book Value
Financial Instruments
Cash and cash equivalents	873	619
Short-term investments	0	100
Book Value | Retail
Financial Instruments
Long-term debt	1,753	1,753
Book Value | Institutional
Financial Instruments
Long-term debt	534	534
Book Value | Other
Financial Instruments
Long-term debt	$ 188	$ 194

Equipment Installment Plan Rece

Equipment Installment Plan Receivables, EIP Receivables (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Equipment installment plans [Line Items]
Equipment installment plan receivables, gross	$ 887	$ 873
Deferred interest	0	(80)
Equipment installment plan receivables, net of deferred interest	887	793
Allowance for credit losses	(62)	(65)
Equipment installment plan receivables, net	825	728
Accounts receivable - Customers and agents (Current portion)
Equipment installment plans [Line Items]
Equipment installment plan receivables, net	514	428
Other assets and deferred charges (Non-current portion)
Equipment installment plans [Line Items]
Equipment installment plan receivables, net	$ 311	$ 300

Equipment Installment Plan Re45

Equipment Installment Plan Receivables, Gross Receivables by Credit Category (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables, gross	$ 887	$ 873
Unbilled
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables	846	827
Billed
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables	27	32
Equipment installment plan receivables, past due	14	14
Lower Risk
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables, gross	866	850
Lower Risk | Unbilled
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables	828	807
Lower Risk | Billed
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables	26	31
Equipment installment plan receivables, past due	12	12
Higher Risk
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables, gross	21	23
Higher Risk | Unbilled
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables	18	20
Higher Risk | Billed
Financing Receivable, Recorded Investment [Line Items]
Equipment installment plan receivables	1	1
Equipment installment plan receivables, past due	$ 2	$ 2

Equipment Installment Plan Re46

Equipment Installment Plan Receivables, Allowance for Credit Losses (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Allowance for credit losses
Allowance for credit losses, beginning of period	$ 65
Allowance for credit losses, end of period	62
Equipment Installment Plan Receivable
Allowance for credit losses
Allowance for credit losses, beginning of period	65	$ 50
Bad debts expense	23	31
Write-offs, net of recoveries	(26)	(24)
Allowance for credit losses, end of period	$ 62	$ 57

Equipment Installment Plan Re47

Equipment Installment Plan Receivables, Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Equipment installment plans [Line Items]
Guarantee liability	$ 12	$ 15

Income Taxes, Narrative (Detail

Income Taxes, Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)
Income Tax Disclosure [Abstract]
Income tax benefit, adjustment	$ 3

Earnings Per Share Computation

Earnings Per Share Computation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings per share
Net income available to TDS shareholders used in basic earnings per share	$ 33	$ 10	$ 72	$ 47
Noncontrolling interest adjustment	(1)		(1)
Net income available to TDS common shareholders used in diluted earnings per share	$ 32	$ 10	$ 71	$ 47
Weighted average number of shares used in basic earnings per share	112	111	112	110
Effects of dilutive securities	1	1	1	2
Weighted average number of shares used in diluted earnings per share	113	112	113	112
Basic earnings per share available to TDS common shareholders	$ 0.30	$ 0.09	$ 0.65	$ 0.43
Diluted earnings per share available to TDS common shareholders	$ 0.29	$ 0.09	$ 0.63	$ 0.42
Common Shares
Earnings per share
Weighted average number of shares used in basic earnings per share	105	104	105	103
Series A Common Shares
Earnings per share
Weighted average number of shares used in basic earnings per share	7	7	7	7

Earnings Per Share, Narrative (

Earnings Per Share, Narrative (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings per share, Other disclosures
Antidilutive securities	3	5	4	4

Intangible Assets (Details)

Intangible Assets (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)
Licenses
Balance at December 31, 2017	$ 2,232
Balance at June 30, 2018	2,240
Licenses
Licenses
Balance at December 31, 2017	2,232
Acquisitions	2
Transferred to Assets held for sale	(1)
Divestitures	(10)
Exchanges - Licenses received	18
Exchanges - Licenses surrendered	(1)
Balance at June 30, 2018	$ 2,240

Investment in Unconsolidated 52

Investment in Unconsolidated Entities (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Equity and measurement alternative method investments
Equity method investments	$ 458		$ 458		$ 435
Measurement alternative method investments	19		19		18
Total investments in unconsolidated entities	477	$ 452	477	$ 452	$ 453
Equity method investments, combined income statements
Revenues	1,661	1,636	3,324	3,251
Operating expenses	1,204	1,229	2,417	2,446
Operating income	457	407	907	805
Other income (expense), net	1	(2)	(1)	(2)
Net income	$ 458	$ 405	$ 906	$ 803

Investment in Unconsolidated 53

Investment in Unconsolidated Entities, Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Jan. 01, 2018
Equity Securities without Readily Determinable Fair Value [Line Items]
Measurement alternative, impairment	$ 0	$ 0
Measurement alternative, observable price change	0	0
Schedule of Equity Method Investments [Line Items]
Cumulative effect of accounting changes	193	193
Retained earnings
Schedule of Equity Method Investments [Line Items]
Cumulative effect of accounting changes	$ 163	$ 163
ASU 2016-01 | Retained earnings
Schedule of Equity Method Investments [Line Items]
Cumulative effect of accounting changes			$ 1

Debt, Revolving Credit Faciliti

Debt, Revolving Credit Facilities (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)
TDS Parent Company
Revolving credit
Maximum borrowing capacity	$ 400
Letters of credit outstanding	1
Amount borrowed	0
Amount available for use	$ 399
Agreement date	May 10, 2018
Maturity date	May 10, 2023
U.S. Cellular
Revolving credit
Maximum borrowing capacity	$ 300
Letters of credit outstanding	2
Amount borrowed	0
Amount available for use	$ 298
Agreement date	May 10, 2018
Maturity date	May 10, 2023

Variable Interest Entities, Con

Variable Interest Entities, Consolidated Balance Sheet (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Assets
Cash and cash equivalents	$ 873	$ 619
Accounts receivable	886	861
Other current assets	43	27
Assets held for sale	1	10
Licenses	2,240	2,232
Property, plant and equipment, net	3,259	3,424
Other assets and deferred charges	586	422
Liabilities
Current liabilities	729	918
Consolidated Variable Interest Entities
Assets
Cash and cash equivalents	6	3
Accounts receivable	559	473
Other current assets	8	7
Assets held for sale	1	0
Licenses	647	648
Property, plant and equipment, net	85	89
Other assets and deferred charges	320	304
Total assets	1,626	1,524
Liabilities
Current liabilities	26	36
Deferred liabilities and credits	13	12
Total liabilities	$ 39	$ 48

Variable Interest Entities, Nar

Variable Interest Entities, Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018		Jun. 30, 2017	Dec. 31, 2017
Variable Interest Entities, Other Disclosures
Assets	$ 9,498	[1]	$ 9,378	$ 9,295	[1]
Capital contributions, loans or advances	51		676
Investment in unconsolidated entities, maximum exposure	$ 5			$ 4
King Street Wireless out-of-period adjustment
Variable Interest Entities, Other Disclosures
Out-of-period adjustment description	During the six months ended June 30, 2018, TDS recorded an out-of-period adjustment attributable to 2016 and 2017 due to errors in the application of accounting guidance applicable to the calculation of Noncontrolling interests with redemption features related to King Street Wireless, Inc.  This out-of-period adjustment had the impact of increasing Net income attributable to noncontrolling interests, net of tax, by $6 million and decreasing Net income attributable to TDS shareholders by $6 million for the six months ended June 30, 2018. TDS determined that this adjustment was not material to any of the periods impacted. The adjustment was made in the first quarter of 2018.
Net income attributable to noncontrolling interests, net of tax | King Street Wireless out-of-period adjustment
Variable Interest Entities, Other Disclosures
Out-of-period adjustment	$ 6
Net income attributable to TDS shareholders | King Street Wireless out-of-period adjustment
Variable Interest Entities, Other Disclosures
Out-of-period adjustment	(6)
USCC EIP LLC
Variable Interest Entities, Other Disclosures
Capital contributions, loans or advances	33		$ 659
Aquinas L.P.
Variable Interest Entities, Other Disclosures
Assets	$ 0
[1]	The consolidated total assets as of June 30, 2018 and December 31, 2017, include assets held by consolidated variable interest entities (VIEs) of $793 million and $765 million, respectively, which are not available to be used to settle the obligations of TDS. The consolidated total liabilities as of June 30, 2018 and December 31, 2017, include certain liabilities of consolidated VIEs of $17 million and $21 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of TDS. See Note 10 — Variable Interest Entities for additional information.

Noncontrolling Interests (Detai

Noncontrolling Interests (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Noncontrolling Interests [Abstract]
Net income attributable to TDS shareholders	$ 33	$ 10	$ 72	$ 47
Transfers to noncontrolling interests
Change in TDS' Capital in excess of par value from U.S. Cellular's issuance of U.S. Cellular shares			(17)	(11)
Change in TDS' Capital in excess of par value from U.S. Cellular's repurchases of U.S. Cellular shares			0	0
Purchase of ownership in subsidiaries from noncontrolling interests				0
Net transfers to noncontrolling interests			(17)	(11)
Change from net income attributable to TDS and transfers to noncontrolling interests			$ 55	$ 36

Business Segment (Details)

Business Segment (Details) - USD ($) $ in Millions		3 Months Ended			6 Months Ended
		Jun. 30, 2018		Jun. 30, 2017	Jun. 30, 2018		Jun. 30, 2017		Dec. 31, 2017
Segment Reporting Information [Line Items]
Service		$ 993		$ 992	$ 1,970		$ 1,989
Equipment and product sales		262		255	510		496
Total operating revenues		1,255		1,247	2,480		2,485
Cost of services (excluding Depreciation, amortization and accretion reported below)		300		298	587		580
Cost of equipment and products		266		287	512		557
Selling, general and administrative		417		420	813		826
Depreciation, amortization and accretion		220		211	441		422
(Gain) loss on asset disposals, net		2		6	3		10
(Gain) loss on license sales and exchanges, net		(11)		(2)	(17)		(19)
Operating income (loss)		61		27	141		109
Equity in earnings of unconsolidated entities		40		33	78		65
Interest and dividend income		6		4	11		8
Interest expense		(43)		(43)	(86)		(85)
Other, net		1		1	2		2
Income before income taxes		65		22	146		99
Income tax expense (benefit)		21		10	45		44
Net income		44		12	101		55
Depreciation, amortization and accretion		220		211	441		422
(Gain) loss on asset disposals, net		2		6	3		10
(Gain) loss on license sales and exchanges, net		(11)		(2)	(17)		(19)
Interest expense		43		43	86		85
Income tax expense		21		10	45		44
Adjusted EBITDA	[1]	319		280	659		597
Investments in unconsolidated entities		477		452	477		452		$ 453
Total assets		9,498	[2]	9,378	9,498	[2]	9,378		$ 9,295	[2]
Capital expenditures		138		134	253		230
U.S. Cellular
Segment Reporting Information [Line Items]
Service		741	[3]	740	1,465	[3]	1,486
Equipment and product sales		233	[3]	223	450	[3]	413
Total operating revenues		974	[3]	963	1,915	[3]	1,899
Cost of services (excluding Depreciation, amortization and accretion reported below)		187		189	365		364
Cost of equipment and products		240	[3]	260	459	[3]	488
Selling, general and administrative		342		351	668		691
Depreciation, amortization and accretion		159		155	317		307
(Gain) loss on asset disposals, net		1		5	2		9
(Gain) loss on license sales and exchanges, net		(11)	[3]	(2)	(17)	[3]	(19)
Operating income (loss)		56	[3]	5	121	[3]	59
Equity in earnings of unconsolidated entities		40		33	78		66
Interest and dividend income		3		2	7		5
Interest expense		(29)		(28)	(58)		(56)
Other, net					(1)		(1)
Income before income taxes		70	[3]	12	147	[3]	73
Income tax expense (benefit)		18	[3]		40	[3]	33
Net income		52	[3]	12	107	[3]	40
Depreciation, amortization and accretion		159		155	317		307
(Gain) loss on asset disposals, net		1		5	2		9
(Gain) loss on license sales and exchanges, net		(11)	[3]	(2)	(17)	[3]	(19)
Interest expense		29		28	58		56
Income tax expense		18	[3]		40	[3]	33
Adjusted EBITDA	[1]	248		198	507		426
Investments in unconsolidated entities		439		414	439		414
Total assets		7,075		7,077	7,075		7,077
Capital expenditures		86		84	155		145
TDS Telecom
Segment Reporting Information [Line Items]
Service		230	[3],[4]	231	460	[3],[4]	459
Equipment and product sales		1	[3]		1	[3]	1
Total operating revenues		230	[3],[4]	231	461	[3],[4]	459
Cost of services (excluding Depreciation, amortization and accretion reported below)		93	[4]	89	183	[4]	176
Cost of equipment and products				1	1	[3]	1
Selling, general and administrative		64	[4]	62	124	[4]	123
Depreciation, amortization and accretion		53		48	107		97
(Gain) loss on asset disposals, net		1		1	1		1
Operating income (loss)		18	[3]	31	43	[3]	61	[5]
Interest and dividend income		2		1	3		2
Interest expense					1
Other, net		1		1	1		2	[5]
Income before income taxes		21	[3]	33	48	[3]	65
Income tax expense (benefit)		5	[3],[6]	13	12	[3],[6]	25	[6]
Net income		16	[3]	20	37	[3]	40
Depreciation, amortization and accretion		53		48	107		97
(Gain) loss on asset disposals, net		1		1	1		1
Interest expense					(1)
Income tax expense		5	[3],[6]	13	12	[3],[6]	25	[6]
Adjusted EBITDA	[1]	75		82	156		164
Investments in unconsolidated entities		4		4	4		4
Total assets		1,893	[4]	1,813	1,893	[4]	1,813
Capital expenditures		46		45	87		71
TDS Telecom Wireline
Segment Reporting Information [Line Items]
Service		173	[3]	180	348	[3]	359
Equipment and product sales					1	[3]	1
Total operating revenues		174	[3]	181	349	[3]	360
Cost of services (excluding Depreciation, amortization and accretion reported below)		67		65	131		129
Cost of equipment and products				1	1	[3]	1
Selling, general and administrative		50		49	97		97
Depreciation, amortization and accretion		36		37	72		76
(Gain) loss on asset disposals, net		1			1		1
Operating income (loss)		21	[3]	28	47	[3]	56	[5]
Interest and dividend income		2		1	3		2
Interest expense					1
Other, net		1		1	1		2	[5]
Income before income taxes		24	[3]	30	52	[3]	60
Depreciation, amortization and accretion		36		37	72		76
(Gain) loss on asset disposals, net		1			1		1
Interest expense					(1)
Adjusted EBITDA	[1]	59		67	124		137
Investments in unconsolidated entities		4		4	4		4
Total assets		1,260		1,200	1,260		1,200
Capital expenditures		33		33	62		50
TDS Telecom Cable
Segment Reporting Information [Line Items]
Service		57	[3]	51	112	[3]	100
Total operating revenues		57	[3]	51	112	[3]	100
Cost of services (excluding Depreciation, amortization and accretion reported below)		27		24	52		48
Selling, general and administrative		15		13	28		25
Depreciation, amortization and accretion		18		11	35		21
(Gain) loss on asset disposals, net					1		1
Operating income (loss)		(3)	[3]	3	(4)	[3]	5
Income before income taxes		(2)	[3]	3	(4)	[3]	5
Depreciation, amortization and accretion		18		11	35		21
(Gain) loss on asset disposals, net					1		1
Adjusted EBITDA	[1]	16		14	32		27
Total assets		643		611	643		611
Capital expenditures		13		12	24		21
Corporate, Eliminations and Other
Segment Reporting Information [Line Items]
Service		22	[3]	21	45	[3]	44
Equipment and product sales		28	[3]	32	59	[3]	82
Total operating revenues		51	[3]	53	104	[3]	127
Cost of services (excluding Depreciation, amortization and accretion reported below)		20		20	39		40
Cost of equipment and products		26	[3]	26	52	[3]	68
Selling, general and administrative		11		7	21		12
Depreciation, amortization and accretion		8		8	17		18
Operating income (loss)		(13)	[3]	(9)	(23)	[3]	(11)
Equity in earnings of unconsolidated entities							(1)
Interest and dividend income		1		1	1		1
Interest expense		(14)		(15)	(29)		(29)
Other, net					2		1	[5]
Income before income taxes		(26)	[3]	(23)	(49)	[3]	(39)
Income tax expense (benefit)		(2)	[3]	(3)	(7)	[3]	(14)
Net income		(24)	[3]	(20)	(43)	[3]	(25)
Depreciation, amortization and accretion		8		8	17		18
Interest expense		14		15	29		29
Income tax expense		(2)	[3]	(3)	(7)	[3]	(14)
Adjusted EBITDA		(4)	[1]		(4)		7	[1]
Investments in unconsolidated entities		34		34	34		34
Total assets		530		488	530		488
Capital expenditures		$ 6		$ 5	$ 11		$ 14
[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 June 30, 2018 and December 31, 2017, include assets held by consolidated variable interest entities (VIEs) of $793 million and $765 million, respectively, which are not available to be used to settle the obligations of TDS. The consolidated total liabilities as of June 30, 2018 and December 31, 2017, include certain liabilities of consolidated VIEs of $17 million and $21 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of TDS. See Note 10 — Variable Interest Entities for additional information.
[3]	As of January 1, 2018, TDS adopted ASU 2014-09 using a modified retrospective approach. Under this method, the new accounting standard is applied only to the most recent period presented. As a result, 2018 amounts include the impacts of ASU 2014-09, but 2017 amounts remain as previously reported, except as specifically stated. See Note 2 - Revenue Recognition for additional information.
[4]	TDS Telecom Total includes eliminations between the Wireline and Cable segments.
[5]	ASU 2017-07, regarding net periodic pension cost and net periodic postretirement benefit cost was adopted as of January 1, 2018, and applied retrospectively. All prior year numbers have been recast to conform to this standard.
[6]	Income tax expense (benefit) is not provided at the individual segment level for Wireline and Cable. TDS calculates income tax expense for "TDS Telecom Total".