Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2022 shares | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2022 |
Document Transition Report | false |
Entity File Number | 001-14157 |
Entity Registrant Name | TELEPHONE AND DATA SYSTEMS, INC. |
Entity Central Index Key | 0001051512 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 36-2669023 |
Entity Address, Address Line One | 30 North LaSalle Street, Suite 4000 |
Entity Address, City or Town | Chicago |
Entity Address, State or Province | IL |
Entity Address, Postal Zip Code | 60602 |
City Area Code | (312) |
Local Phone Number | 630-1900 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Smaller Reporting Company | false |
Emerging Growth Company | false |
Entity Shell Company | false |
Common Shares | |
Title of 12(b) Security | Common Shares, $.01 par value |
Trading Symbol | TDS |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 106,528,800 |
Depository Shares each representing a 1/1000th interest in a share of 6.625% Series UU Cumulative Redeemable Perpetual Preferred Stock, $.01 par value | |
Title of 12(b) Security | Depository Shares each representing a 1/1000th interest in a share of 6.625% Series UU Cumulative Redeemable Perpetual Preferred Stock, $.01 par value |
Trading Symbol | TDSPrU |
Security Exchange Name | NYSE |
Depository Shares each representing a 1/1000th interest in a share of 6.000% Series VV Cumulative Redeemable Perpetual Preferred Stock, $.01 par value | |
Title of 12(b) Security | Depository Shares each representing a 1/1000th interest in a share of 6.000% Series VV Cumulative Redeemable Perpetual Preferred Stock, $.01 par value |
Trading Symbol | TDSPrV |
Security Exchange Name | NYSE |
Series A Common Shares | |
Entity Common Stock, Shares Outstanding | 7,364,100 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating revenues | ||||
Total operating revenues | $ 1,349 | $ 1,311 | $ 2,664 | $ 2,629 |
Operating expenses | ||||
Selling, general and administrative | 427 | 416 | 837 | 804 |
Depreciation, amortization and accretion | 229 | 234 | 456 | 457 |
Loss on impairment of licenses | 3 | 0 | 3 | 0 |
(Gain) loss on asset disposals, net | 7 | 3 | 9 | 8 |
(Gain) loss on sale of business and other exit costs, net | 0 | 0 | 0 | (1) |
Total operating expenses | 1,286 | 1,253 | 2,506 | 2,461 |
Operating income | 63 | 58 | 158 | 168 |
Investment and other income (expense) | ||||
Equity in earnings of unconsolidated entities | 38 | 48 | 83 | 90 |
Interest and dividend income | 5 | 3 | 7 | 6 |
Interest expense | (40) | (86) | (72) | (138) |
Other, net | 0 | 0 | 0 | (1) |
Total investment and other income (expense) | 3 | (35) | 18 | (43) |
Income before income taxes | 66 | 23 | 176 | 125 |
Income tax expense (benefit) | 27 | (11) | 65 | 20 |
Net income | 39 | 34 | 111 | 105 |
Less: Net income attributable to noncontrolling interests, net of tax | 4 | 7 | 15 | 19 |
Net income attributable to TDS shareholders | 35 | 27 | 96 | 86 |
TDS Preferred Share dividends | 17 | 7 | 35 | 9 |
Net income attributable to TDS common shareholders | $ 18 | $ 20 | $ 61 | $ 77 |
Basic weighted average shares outstanding (in shares) | 115 | 115 | 115 | 115 |
Basic earnings per share attributable to TDS common shareholders (in dollars per share) | $ 0.15 | $ 0.18 | $ 0.53 | $ 0.67 |
Diluted weighted average shares outstanding (in shares) | 116 | 116 | 116 | 116 |
Diluted earnings per share attributable to TDS common shareholders (in dollars per share) | $ 0.15 | $ 0.17 | $ 0.52 | $ 0.65 |
Service | ||||
Operating revenues | ||||
Total operating revenues | $ 1,064 | $ 1,049 | $ 2,125 | $ 2,091 |
Operating expenses | ||||
Cost of goods and services | 312 | 324 | 611 | 623 |
Equipment and product sales | ||||
Operating revenues | ||||
Total operating revenues | 285 | 262 | 539 | 538 |
Operating expenses | ||||
Cost of goods and services | $ 308 | $ 276 | $ 590 | $ 570 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 39 | $ 34 | $ 111 | $ 105 |
Change related to retirement plan Amounts included in net periodic benefit cost for the period | ||||
Amortization of prior service cost | 0 | 1 | 0 | 1 |
Comprehensive income | 39 | 35 | 111 | 106 |
Less: Net income attributable to noncontrolling interests, net of tax | 4 | 7 | 15 | 19 |
Comprehensive income attributable to TDS shareholders | $ 35 | $ 28 | $ 96 | $ 87 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities | ||
Net income | $ 111 | $ 105 |
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities | ||
Depreciation, amortization and accretion | 456 | 457 |
Bad debts expense | 54 | 22 |
Stock-based compensation expense | 23 | 24 |
Deferred income taxes, net | 52 | 40 |
Equity in earnings of unconsolidated entities | (83) | (90) |
Distributions from unconsolidated entities | 80 | 80 |
Loss on impairment of licenses | 3 | 0 |
(Gain) loss on asset disposals, net | 9 | 8 |
(Gain) loss on sale of business and other exit costs, net | 0 | (1) |
Other operating activities | 3 | 37 |
Changes in assets and liabilities from operations | ||
Accounts receivable | (25) | 37 |
Equipment installment plans receivable | (25) | (32) |
Inventory | (35) | (35) |
Accounts payable | (6) | (106) |
Customer deposits and deferred revenues | 7 | 6 |
Accrued taxes | 131 | (25) |
Accrued interest | 1 | (3) |
Other assets and liabilities | (22) | (43) |
Net cash provided by operating activities | 734 | 481 |
Cash flows from investing activities | ||
Cash paid for additions to property, plant and equipment | (526) | (457) |
Cash paid for intangible assets | (585) | (1,264) |
Cash received from investments | 0 | 3 |
Cash received from divestitures and exchanges | 1 | 1 |
Advance payments for license acquisitions | (1) | 0 |
Other investing activities | (11) | 2 |
Net cash used in investing activities | (1,122) | (1,715) |
Cash flows from financing activities | ||
Issuance of long-term debt | 776 | 1,192 |
Repayment of long-term debt | (228) | (1,301) |
Issuance of short-term debt | 60 | 0 |
Issuance of TDS Preferred Shares | 0 | 420 |
TDS Common Shares reissued for benefit plans, net of tax payments | (4) | (5) |
UScellular Common Shares reissued for benefit plans, net of tax payments | (5) | (13) |
Repurchase of TDS Common Shares | (20) | (3) |
Repurchase of UScellular Common Shares | (18) | (2) |
Dividends paid to TDS shareholders | (76) | (49) |
Payment of debt and equity issuance costs | (2) | (30) |
Distributions to noncontrolling interests | (2) | (2) |
Other financing activities | (2) | (6) |
Net cash provided by financing activities | 479 | 201 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 91 | (1,033) |
Cash, cash equivalents and restricted cash | ||
Beginning of period | 414 | 1,452 |
End of period | $ 505 | $ 419 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | |
Current assets | |||
Cash and cash equivalents | $ 466 | $ 367 | |
Accounts receivable | |||
Customers and agents, less allowances of $63 and $60, respectively | 1,055 | 1,058 | |
Other, less allowances of $2 and $2, respectively | 99 | 93 | |
Inventory, net | 213 | 178 | |
Prepaid expenses | 106 | 103 | |
Income taxes receivable | 58 | 184 | |
Other current assets | 54 | 61 | |
Total current assets | 2,051 | 2,044 | |
Assets held for sale | 17 | 18 | |
Licenses | 4,686 | 4,097 | |
Goodwill | 547 | 547 | |
Other intangible assets, net of accumulated amortization of $100 and $91, respectively | 208 | 197 | |
Investments in unconsolidated entities | 483 | 479 | |
Property, plant and equipment | |||
In service and under construction | 14,723 | 14,265 | |
Less: Accumulated depreciation and amortization | 10,170 | 9,904 | |
Property, plant and equipment, net | 4,553 | 4,361 | |
Operating lease right-of-use assets | 1,022 | 1,040 | |
Other assets and deferred charges | 675 | 710 | |
Total assets | [1] | 14,242 | 13,493 |
Current liabilities | |||
Current portion of long-term debt | 11 | 6 | |
Accounts payable | 443 | 481 | |
Customer deposits and deferred revenues | 243 | 236 | |
Accrued interest | 11 | 10 | |
Accrued taxes | 42 | 45 | |
Accrued compensation | 98 | 137 | |
Short-term operating lease liabilities | 146 | 141 | |
Other current liabilities | 240 | 124 | |
Total current liabilities | 1,234 | 1,180 | |
Deferred liabilities and credits | |||
Deferred income tax liability, net | 971 | 921 | |
Long-term operating lease liabilities | 940 | 960 | |
Other deferred liabilities and credits | 879 | 759 | |
Long-term debt, net | 3,463 | 2,928 | |
Commitments and contingencies | |||
Noncontrolling interests with redemption features | 12 | 11 | |
TDS shareholders’ equity | |||
Series A Common and Common Shares Authorized 290 shares (25 Series A Common and 265 Common Shares) Issued 133 shares (7 Series A Common and 126 Common Shares) Outstanding 114 shares (7 Series A Common and 107 Common Shares) and 115 shares (7 Series A Common and 108 Common Shares), respectively Par Value ($.01 per share) | 1 | 1 | |
Capital in excess of par value | 2,511 | 2,496 | |
Preferred Shares, 0.279 shares authorized, par value $0.01 per share, .0444 shares outstanding (.0168 Series UU and .0276 Series VV) | 1,074 | 1,074 | |
Treasury shares, at cost, 19 and 18 Common Shares, respectively | (463) | (461) | |
Accumulated other comprehensive income | 6 | 5 | |
Retained earnings | 2,810 | 2,812 | |
Total TDS shareholders' equity | 5,939 | 5,927 | |
Noncontrolling interests | 804 | 807 | |
Total equity | 6,743 | 6,734 | |
Total liabilities and equity | [1] | $ 14,242 | $ 13,493 |
[1]The consolidated total assets as of June 30, 2022 and December 31, 2021, include assets held by consolidated variable interest entities (VIEs) of $1,299 million and $1,456 million, respectively, which are not available to be used to settle the obligations of TDS. The consolidated total liabilities as of June 30, 2022 and December 31, 2021, include certain liabilities of consolidated VIEs of $21 million for which the creditors of the VIEs have no recourse to the general credit of TDS. See Note 10 — Variable Interest Entities for additional information. |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | |
Accounts receivable | |||
Customer and agent allowances | $ 63 | $ 60 | |
Other allowances | 2 | 2 | |
Other intangible assets | |||
Other intangible assets accumulated amortization | $ 100 | $ 91 | |
TDS shareholders’ equity | |||
Authorized shares (in shares) | 290,000,000 | 290,000,000 | |
Issued shares (in shares) | 133,000,000 | 133,000,000 | |
Outstanding shares (in shares) | 114,000,000 | 115,000,000 | |
Par value per share (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred shares authorized | 279,000 | 279,000 | |
Par value per share (in dollars per share) | $ 0.01 | $ 0.01 | |
Outstanding shares (in shares) | 44,400 | 44,400 | |
Variable Interest Entities VIEs | |||
Total assets | [1] | $ 14,242 | $ 13,493 |
Series A Common Shares | |||
TDS shareholders’ equity | |||
Authorized shares (in shares) | 25,000,000 | 25,000,000 | |
Issued shares (in shares) | 7,000,000 | 7,000,000 | |
Outstanding shares (in shares) | 7,000,000 | 7,000,000 | |
Par value per share (in dollars per share) | $ 0.01 | $ 0.01 | |
Common Shares | |||
TDS shareholders’ equity | |||
Authorized shares (in shares) | 265,000,000 | 265,000,000 | |
Issued shares (in shares) | 126,000,000 | 126,000,000 | |
Outstanding shares (in shares) | 107,000,000 | 108,000,000 | |
Treasury shares at cost (in shares) | 19,000,000 | 18,000,000 | |
Series UU Preferred Shares | |||
TDS shareholders’ equity | |||
Outstanding shares (in shares) | 16,800 | 16,800 | |
Series VV Preferred Shares | |||
TDS shareholders’ equity | |||
Outstanding shares (in shares) | 27,600 | 27,600 | |
Consolidated Variable Interest Entity | |||
Variable Interest Entities VIEs | |||
Total assets | $ 1,922 | $ 1,929 | |
Total liabilities | 152 | 88 | |
Consolidated Variable Interest Entity | No recourse | |||
Variable Interest Entities VIEs | |||
Total liabilities | 21 | 21 | |
Consolidated Variable Interest Entity | Assets held | |||
Variable Interest Entities VIEs | |||
Total assets | $ 1,299 | $ 1,456 | |
[1]The consolidated total assets as of June 30, 2022 and December 31, 2021, include assets held by consolidated variable interest entities (VIEs) of $1,299 million and $1,456 million, respectively, which are not available to be used to settle the obligations of TDS. The consolidated total liabilities as of June 30, 2022 and December 31, 2021, include certain liabilities of consolidated VIEs of $21 million for which the creditors of the VIEs have no recourse to the general credit of TDS. See Note 10 — Variable Interest Entities for additional information. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Millions | Total | Series A Common and Common shares | Capital in excess of par value | Preferred Shares | Treasury shares | Accumulated other comprehensive income (loss) | Retained earnings | Total TDS shareholders' equity | Noncontrolling interests |
Beginning balance at Dec. 31, 2020 | $ 5,593 | $ 1 | $ 2,482 | $ 0 | $ (477) | $ (4) | $ 2,802 | $ 4,804 | $ 789 |
Net income attributable to TDS shareholders | 86 | 86 | 86 | ||||||
Net income attributable to noncontrolling interests classified as equity | 19 | 0 | 19 | ||||||
Other comprehensive income | 2 | 2 | 2 | ||||||
TDS Common and Series A Common share dividends | (40) | (40) | (40) | ||||||
Issuance of TDS Preferred Shares, net of costs | 406 | 406 | 406 | ||||||
TDS Preferred share dividends | (9) | (9) | (9) | ||||||
Repurchase of Common Shares | (3) | (3) | (3) | ||||||
Dividend reinvestment plan | 0 | 1 | (1) | 0 | |||||
Incentive and compensation plans | 7 | 12 | 21 | (26) | 7 | ||||
Adjust investment in subsidiaries for repurchases, issuances and other compensation plans | (2) | (32) | (32) | 30 | |||||
Distributions to noncontrolling interests | (2) | 0 | (2) | ||||||
Ending balance at Jun. 30, 2021 | 6,057 | 1 | 2,462 | 406 | (458) | (2) | 2,812 | 5,221 | 836 |
Beginning balance at Mar. 31, 2021 | 6,054 | 1 | 2,488 | 408 | (472) | (3) | 2,830 | 5,252 | 802 |
Net income attributable to TDS shareholders | 27 | 27 | 27 | ||||||
Net income attributable to noncontrolling interests classified as equity | 7 | 0 | 7 | ||||||
Other comprehensive income | 1 | 1 | 1 | ||||||
TDS Common and Series A Common share dividends | (20) | (20) | (20) | ||||||
TDS Preferred share dividends | (9) | (2) | (7) | (9) | |||||
Incentive and compensation plans | 4 | 8 | 14 | (18) | 4 | ||||
Adjust investment in subsidiaries for repurchases, issuances and other compensation plans | (7) | (34) | (34) | 27 | |||||
Ending balance at Jun. 30, 2021 | 6,057 | 1 | 2,462 | 406 | (458) | (2) | 2,812 | 5,221 | 836 |
Beginning balance at Dec. 31, 2021 | 6,734 | 1 | 2,496 | 1,074 | (461) | 5 | 2,812 | 5,927 | 807 |
Net income attributable to TDS shareholders | 96 | 96 | 96 | ||||||
Net income attributable to noncontrolling interests classified as equity | 14 | 0 | 14 | ||||||
Other comprehensive income | 1 | 1 | 1 | ||||||
TDS Common and Series A Common share dividends | (41) | (41) | (41) | ||||||
TDS Preferred share dividends | (35) | (35) | (35) | ||||||
Repurchase of Common Shares | (20) | (20) | (20) | ||||||
Dividend reinvestment plan | 1 | 1 | 1 | (1) | 1 | ||||
Incentive and compensation plans | 5 | 9 | 17 | (21) | 5 | ||||
Adjust investment in subsidiaries for repurchases, issuances and other compensation plans | (10) | 5 | 5 | (15) | |||||
Distributions to noncontrolling interests | (2) | 0 | (2) | ||||||
Ending balance at Jun. 30, 2022 | 6,743 | 1 | 2,511 | 1,074 | (463) | 6 | 2,810 | 5,939 | 804 |
Beginning balance at Mar. 31, 2022 | 6,761 | 1 | 2,511 | 1,074 | (456) | 6 | 2,824 | 5,960 | 801 |
Net income attributable to TDS shareholders | 35 | 35 | 35 | ||||||
Net income attributable to noncontrolling interests classified as equity | 4 | 0 | 4 | ||||||
TDS Common and Series A Common share dividends | (21) | (21) | (21) | ||||||
TDS Preferred share dividends | (17) | (17) | (17) | ||||||
Repurchase of Common Shares | (16) | (16) | (16) | ||||||
Dividend reinvestment plan | 1 | 1 | 1 | ||||||
Incentive and compensation plans | 2 | 5 | 8 | (11) | 2 | ||||
Adjust investment in subsidiaries for repurchases, issuances and other compensation plans | (5) | (5) | (5) | ||||||
Distributions to noncontrolling interests | (1) | 0 | (1) | ||||||
Ending balance at Jun. 30, 2022 | $ 6,743 | $ 1 | $ 2,511 | $ 1,074 | $ (463) | $ 6 | $ 2,810 | $ 5,939 | $ 804 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
TDS Common and Series A Common Share dividends (in dollars per share) | $ 0.180 | $ 0.175 | $ 0.36 | $ 0.350 |
Series VV Preferred Shares | ||||
TDS Preferred share dividends (in dollars per share) | 375 | 750 | ||
Series UU Preferred Shares | ||||
TDS Preferred share dividends (in dollars per share) | $ 414 | $ 552 | $ 828 | $ 552 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [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). Unless otherwise specified, references to accounting provisions and GAAP in these notes refer to the requirements of the FASB 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 (UScellular) 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 requires consolidation under GAAP. 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, 2022, are UScellular and TDS Telecom. 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. 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 annual 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, certain 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, 2021. 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, 2022 and December 31, 2021 and its results of operations, comprehensive income and changes in equity for the three and six months ended June 30, 2022 and 2021, and its cash flows for the six months ended June 30, 2022 and 2021. 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, 2021. Software License Agreements Certain software licenses are recorded as acquisitions of property, plant and equipment and the incurrence of a liability to the extent that the license fees are not fully paid at acquisition, and are treated as non-cash activity in the Consolidated Statement of Cash Flows. Such non-cash acquisitions of software license agreements were $139 million for the six months ended June 30, 2022. Restricted Cash TDS presents restricted cash with cash and cash equivalents in the Consolidated Statement of Cash Flows. Restricted cash primarily consists of balances required under the receivables securitization agreement. See Note 9 — Debt for additional information related to the receivables securitization agreement. 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. June 30, 2022 December 31, 2021 (Dollars in millions) Cash and cash equivalents $ 466 $ 367 Restricted cash included in Other current assets 39 47 Cash, cash equivalents and restricted cash in the statement of cash flows $ 505 $ 414 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 2 Revenue Recognition Disaggregation of Revenue In the following table, TDS' revenues are disaggregated by type of service, which represents the relevant categorization of revenues for TDS' reportable segments, and timing of recognition. Service revenues are recognized over time and Equipment and product sales are point in time. Three Months Ended June 30, 2022 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Revenues from contracts with customers: Type of service: Retail service $ 700 $ — $ — $ 700 Inbound roaming 18 — — 18 Residential — 168 — 168 Commercial — 44 — 44 Wholesale — 44 — 44 Other service 42 — 19 61 Service revenues from contracts with customers 760 255 19 1,035 Equipment and product sales 244 — 41 285 Total revenues from contracts with customers 1,004 255 60 1,320 Operating lease income 23 1 6 29 Total operating revenues $ 1,027 $ 256 $ 66 $ 1,349 Three Months Ended June 30, 2021 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Revenues from contracts with customers: Type of service: Retail service 1 $ 684 $ — $ — $ 684 Inbound roaming 28 — — 28 Residential — 160 — 160 Commercial — 46 — 46 Wholesale — 44 — 44 Other service 1 42 — 18 60 Service revenues from contracts with customers 754 251 18 1,022 Equipment and product sales 240 — 22 262 Total revenues from contracts with customers 994 251 39 1,284 Operating lease income 20 1 6 27 Total operating revenues $ 1,014 $ 252 $ 45 $ 1,311 Six Months Ended June 30, 2022 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Revenues from contracts with customers: Type of service: Retail service $ 1,402 $ — $ — $ 1,402 Inbound roaming 39 — — 39 Residential — 330 — 330 Commercial — 87 — 87 Wholesale — 87 — 87 Other service 84 — 36 120 Service revenues from contracts with customers 1,525 505 36 2,065 Equipment and product sales 467 1 71 539 Total revenues from contracts with customers 1,992 506 107 2,604 Operating lease income 45 2 13 60 Total operating revenues $ 2,037 $ 507 $ 120 $ 2,664 Six Months Ended June 30, 2021 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Revenues from contracts with customers: Type of service: Retail service 1 $ 1,367 $ — $ — $ 1,367 Inbound roaming 56 — — 56 Residential — 317 — 317 Commercial — 93 — 93 Wholesale — 89 — 89 Other service 1 81 — 34 115 Service revenues from contracts with customers 1,504 499 34 2,037 Equipment and product sales 492 1 45 538 Total revenues from contracts with customers 1,996 499 79 2,575 Operating lease income 41 1 12 54 Total operating revenues $ 2,037 $ 501 $ 91 $ 2,629 Numbers may not foot due to rounding. 1 For the three and six months ended June 30, 2021, amounts have been adjusted to reclassify $2 million and $4 million, respectively, of Internet of Things (IoT) and Reseller revenues from Retail service to Other service. Contract Balances The following table provides balances for contract assets from contracts with customers, which are recorded in Other current assets and Other assets and deferred charges in the Consolidated Balance Sheet, and 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. June 30, 2022 December 31, 2021 (Dollars in millions) Contract assets $ 9 $ 10 Contract liabilities $ 303 $ 289 Revenue recognized related to contract liabilities existing at January 1, 2022 was $171 million for the six months ended June 30, 2022. Transaction price allocated to the remaining performance obligations The following table includes estimated service revenues expected to be recognized related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. These estimates represent service revenues to be recognized when services are delivered to customers pursuant to service plan contracts and under certain roaming agreements with other carriers. These estimates are based on contracts in place as of June 30, 2022 and may vary from actual results. As practical expedients, revenue related to contracts of less than one year, generally month-to-month contracts, and contracts with a fixed per-unit price and variable quantity, are excluded from these estimates. Service Revenues (Dollars in millions) Remainder of 2022 $ 277 2023 216 Thereafter 186 Total $ 679 Contract Cost Assets TDS expects that commission fees paid as a result of obtaining contracts are recoverable and therefore TDS defers and amortizes these costs. As a practical expedient, costs with an amortization period of one year or less are expensed as incurred. TDS also incurs fulfillment costs, such as installation costs, where there is an expectation that a future benefit will be realized. Deferred commission fees and fulfillment costs are amortized based on the timing of transfer of the goods or services to which the assets relate, typically the contract term. Contract cost asset balances, which are recorded in Other assets and deferred charges in the Consolidated Balance Sheet, were as follows: June 30, 2022 December 31, 2021 (Dollars in millions) Costs to obtain contracts Sales commissions $ 134 $ 139 Fulfillment costs Installation costs 9 10 Total contract cost assets $ 143 $ 149 Amortization of contract cost assets was $28 million and $57 million for the three and six months ended June 30, 2022, respectively, and $29 million and $59 million for the three and six months ended June 30, 2021, respectively, and was included in Selling, general and administrative expenses and Cost of services expenses. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 3 Fair Value Measurements As of June 30, 2022 and December 31, 2021, 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, 2022 December 31, 2021 Book Value Fair Value Book Value Fair Value (Dollars in millions) Long-term debt Retail 2 $ 1,500 $ 1,156 $ 1,500 $ 1,594 Institutional 2 536 425 535 659 Other 2 1,486 1,486 944 944 Long-term debt excludes lease obligations, 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 UScellular Senior Notes, which are traded on the New York Stock Exchange. TDS’ “Institutional” debt consists of UScellular’s 6.7% Senior Notes which are traded over the counter. TDS’ “Other” debt consists of term loan credit agreements, receivables securitization agreement and in 2022, export credit financing agreement. 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 2.22% to 7.75% and 1.31% to 4.40% at June 30, 2022 and December 31, 2021, respectively. The fair values of Cash and cash equivalents, restricted cash and short-term debt approximate their book values due to the short-term nature of these financial instruments. |
Equipment Installment Plans
Equipment Installment Plans | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Equipment Installment Plans | Note 4 Equipment Installment Plans UScellular 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. The following table summarizes equipment installment plan receivables. June 30, 2022 December 31, 2021 (Dollars in millions) Equipment installment plan receivables, gross $ 1,074 $ 1,085 Allowance for credit losses (74) (72) Equipment installment plan receivables, net $ 1,000 $ 1,013 Net balance presented in the Consolidated Balance Sheet as: Accounts receivable — Customers and agents (Current portion) $ 631 $ 639 Other assets and deferred charges (Non-current portion) 369 374 Equipment installment plan receivables, net $ 1,000 $ 1,013 UScellular uses various inputs, including internal data, information from 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. These credit classes are grouped into four credit categories: lowest risk, lower risk, slight risk and higher risk. A customer's assigned credit class is reviewed periodically and a change is made, if appropriate. An equipment installment plan billed amount is considered past due if not paid within 30 days. The balance and aging of the equipment installment plan receivables on a gross basis by credit category were as follows: June 30, 2022 December 31, 2021 Lowest Risk Lower Risk Slight Risk Higher Risk Total Lowest Risk Lower Risk Slight Risk Higher Risk Total (Dollars in millions) Unbilled $ 892 $ 91 $ 22 $ 5 $ 1,010 $ 896 $ 94 $ 24 $ 5 $ 1,019 Billed — current 38 5 1 — 44 40 5 1 1 47 Billed — past due 11 6 2 1 20 10 6 2 1 19 Total $ 941 $ 102 $ 25 $ 6 $ 1,074 $ 946 $ 105 $ 27 $ 7 $ 1,085 The balance of the equipment installment plan receivables as of June 30, 2022 on a gross basis by year of origination were as follows: 2019 2020 2021 2022 Total (Dollars in millions) Lowest Risk $ 3 $ 146 $ 462 $ 330 $ 941 Lower Risk — 10 52 40 102 Slight Risk — 1 8 16 25 Higher Risk — — 3 3 6 Total $ 3 $ 157 $ 525 $ 389 $ 1,074 Activity for the six months ended June 30, 2022 and 2021, in the allowance for credit losses for equipment installment plan receivables was as follows: June 30, 2022 June 30, 2021 (Dollars in millions) Allowance for credit losses, beginning of period $ 72 $ 78 Bad debts expense 37 13 Write-offs, net of recoveries (35) (19) Allowance for credit losses, end of period $ 74 $ 72 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 5 Income Taxes The effective tax rate on Income before income taxes for the three and six months ended June 30, 2022 was 40.4% and 36.7%, respectively. These effective tax rates reflect a combined rate of federal and state taxes, adjusted for impacts of nondeductible compensation and interest expense. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 6 Earnings Per Share Basic earnings per share attributable to TDS common shareholders is computed by dividing Net income attributable to TDS common shareholders by the weighted average number of Common Shares outstanding during the period. Diluted earnings per share attributable to TDS common shareholders is computed by dividing Net income attributable 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 basic and diluted earnings per share attributable to TDS common shareholders were as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 (Dollars and shares in millions, except per share amounts) Net income attributable to TDS common shareholders used in basic earnings per share $ 18 $ 20 $ 61 $ 77 Adjustments to compute diluted earnings: Noncontrolling interest adjustment — — (1) (1) Net income attributable to TDS common shareholders used in diluted earnings per share $ 18 $ 20 $ 60 $ 76 Weighted average number of shares used in basic earnings per share: Common Shares 108 108 108 108 Series A Common Shares 7 7 7 7 Total 115 115 115 115 Effects of dilutive securities 1 1 1 1 Weighted average number of shares used in diluted earnings per share 116 116 116 116 Basic earnings per share attributable to TDS common shareholders $ 0.15 $ 0.18 $ 0.53 $ 0.67 Diluted earnings per share attributable to TDS common shareholders $ 0.15 $ 0.17 $ 0.52 $ 0.65 Certain Common Shares issuable upon the exercise of stock options or vesting of performance and restricted stock units were not included in weighted average diluted shares outstanding for the calculation of Diluted earnings per share attributable to TDS common shareholders because their effects were antidilutive. The number of such Common Shares excluded was 4 million for both the three and six months ended June 30, 2022, and 3 million for both the three and six months ended June 30, 2021. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 7 Intangible Assets Activity related to Licenses for the six months ended June 30, 2022, is presented below: Licenses (Dollars in millions) Balance at December 31, 2021 $ 4,097 Acquisitions 587 Impairment (3) Transferred to Assets held for sale 1 Exchanges - Licenses received 1 Capitalized interest 3 Balance at June 30, 2022 $ 4,686 In February 2021, the FCC announced by way of public notice that UScellular was the provisional winning bidder for 254 wireless spectrum licenses in the 3.7-3.98 GHz bands (Auction 107) for $1,283 million. UScellular paid $30 million of this amount in 2020 and the remainder in March 2021. The wireless spectrum licenses from Auction 107 were granted by the FCC in July 2021. Additionally, UScellular expects to be obligated to pay approximately $187 million in total from 2021 through 2024 related to relocation costs and accelerated relocation incentive payments. Such additional costs were accrued and capitalized at the time the licenses were granted. In October 2021, UScellular paid $36 million related to the additional costs. The spectrum must be cleared by incumbent providers before UScellular can access it. UScellular does not expect to have access to this spectrum until late 2023. In January 2022, the FCC announced by way of public notice that UScellular was the provisional winning bidder for 380 wireless spectrum licenses in the 3.45-3.55 GHz band (Auction 110) for $580 million. UScellular paid $20 million of this amount in 2021 and the remainder in January and February 2022. The advance payment was included in Other assets and deferred charges in the December 31, 2021 Consolidated Balance Sheet. The wireless spectrum licenses from Auction 110 were granted by the FCC on May 4, 2022. |
Investments In Unconsolidated E
Investments In Unconsolidated Entities | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Entities | Note 8 Investments in Unconsolidated Entities Investments in unconsolidated entities consist of amounts invested in entities in which TDS holds a noncontrolling interest. TDS’ Investments in unconsolidated entities are accounted for using the equity method, measurement alternative method or net asset value practical expedient method as shown in the table below. The carrying value of measurement alternative method investments represents cost minus any impairments plus or minus any observable price changes. June 30, 2022 December 31, 2021 (Dollars in millions) Equity method investments $ 455 $ 457 Measurement alternative method investments 18 22 Investments recorded using the net asset value practical expedient 10 — Total investments in unconsolidated entities $ 483 $ 479 The following table, which is based on unaudited information provided in part by third parties, summarizes the combined results of operations of TDS’ equity method investments. Three Months Ended Six Months Ended 2022 2021 2022 2021 (Dollars in millions) Revenues $ 1,779 $ 1,748 $ 3,595 $ 3,482 Operating expenses 1,395 1,221 2,772 2,502 Operating income 384 527 823 980 Other income (expense), net (2) (2) (6) 10 Net income $ 382 $ 525 $ 817 $ 990 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Note 9 Debt Revolving Credit Agreements The following table summarizes the revolving credit agreements as of June 30, 2022: TDS UScellular (Dollars in millions) Maximum borrowing capacity $ 400 $ 300 Letters of credit outstanding $ 1 $ — Amount borrowed $ — $ — Amount available for use $ 399 $ 300 Borrowings under the TDS revolving credit agreement bear interest at a rate of London Inter-bank Offered Rate (LIBOR) plus 1.50%. Borrowings under the UScellular revolving credit agreement bear interest at a rate of Secured Overnight Financing Rate (SOFR) plus 1.60%. During the six months ended June 30, 2022, UScellular borrowed and repaid $75 million under its revolving credit agreement. TDS and UScellular believe that they were in compliance with all of the financial and other covenants and requirements set forth in their revolving credit agreements as of June 30, 2022. Term Loan Agreements The following table summarizes the term loan credit agreements as of June 30, 2022: TDS UScellular (Dollars in millions) Maximum borrowing capacity $ 500 $ 800 Amount borrowed and outstanding $ 349 $ 698 Amount borrowed and repaid $ 1 $ 2 Amount available for use $ 150 $ 100 Borrowings under the TDS term loan agreements bear interest at a rate of LIBOR plus 2.00% or LIBOR plus 2.50%. The maturity dates of the TDS term loan agreements are July 2028 and July 2031. In July 2022, TDS borrowed the remaining $150 million under the term loan agreement. Borrowings under the UScellular term loan agreements bear interest at a rate of SOFR plus 1.60%, SOFR plus 2.10% or SOFR plus 2.60%. The maturity dates of the UScellular term loan agreements are July 2026, July 2028 and July 2031. In July 2022, UScellular borrowed the remaining $100 million under the term loan agreement. TDS and UScellular believe that they were in compliance with all of the financial and other covenants and requirements set forth in their term loan credit agreements as of June 30, 2022. Export Credit Financing Agreement In December 2021, UScellular entered into a $150 million term loan credit facility with Export Development Canada to finance (or refinance) equipment imported from Canada, including equipment purchased prior to entering the term loan credit facility agreement. Borrowings bear interest at a rate of SOFR plus 1.60% and are due and payable on the five-year anniversary of the first borrowing, which is in January 2027. During the six months ended June 30, 2022, UScellular borrowed $150 million, which is the full amount available under the agreement. TDS believes that UScellular was in compliance with all of the financial and other covenants and requirements set forth in their export credit financing agreement as of June 30, 2022. Receivables Securitization Agreement UScellular, through its subsidiaries, has a receivables securitization agreement for securitized borrowings using its equipment installment receivables. In March 2022, UScellular amended the agreement to extend the maturity date to March 2024. There were no significant changes to other terms of the receivable securitization agreement. Amounts under the receivables securitization agreement may be borrowed, repaid and reborrowed from time to time until the maturity date, which may be extended from time to time as specified therein. The outstanding borrowings bear interest at a rate that approximates SOFR plus 0.90%. During the six months ended June 30, 2022, UScellular repaid $150 million under the agreement. As of June 30, 2022, the outstanding borrowings under the agreement were $300 million and the unused borrowing capacity under the agreement was $150 million, subject to sufficient collateral to satisfy the asset borrowing base provisions of the agreement. As of June 30, 2022, the USCC Master Note Trust held $426 million of assets available to be pledged as collateral for the receivables securitization agreement. In July 2022, UScellular repaid $50 million under its receivables securitization agreement. TDS believes that UScellular was in compliance with all of the financial and other covenants and requirements set forth in their receivables securitization agreement as of June 30, 2022. Repurchase Agreement In January 2022, UScellular, through a subsidiary (the repo subsidiary), entered into a repurchase agreement to borrow up to $200 million, subject to the availability of eligible equipment installment plan receivables and the agreement of the lender. The transaction form involves the sale of receivables by the repo subsidiary and the commitment to repurchase at the end of the applicable repurchase term, which may extend up to one month. The transaction is accounted for as a one-month secured borrowing. The outstanding borrowings bear interest at a rate of SOFR plus 1.25%. Although the lender holds a security interest in the receivables, the repo subsidiary retains effective control and collection risk of the receivables, and therefore, any activity associated with the repurchase agreement will be treated as a secured borrowing. UScellular will continue to report equipment installment plan receivables and any related balances on the Consolidated Balance Sheet. The expiration date of the repurchase agreement is in January 2023. During the six months ended June 30, 2022, the repo subsidiary borrowed $60 million under the repurchase agreement. As of June 30, 2022, the outstanding borrowings under the agreement were $60 million and the unused borrowing capacity was $140 million. The outstanding borrowings are included in Other current liabilities in the June 30, 2022 Consolidated Balance Sheet. As of June 30, 2022, UScellular held $638 million of assets available for inclusion in the repurchase facility; these assets are distinct from the assets held by the USCC Master Note Trust for UScellular's receivables securitization agreement. In July 2022, UScellular repaid $50 million under its repurchase agreement. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2022 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Note 10 Variable Interest Entities Consolidated VIEs TDS consolidates VIEs in which it has a controlling financial interest as defined by GAAP and is therefore deemed the primary beneficiary. TDS reviews the criteria for a controlling financial interest 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 this Form 10-Q and TDS’ Form 10-K for the year ended December 31, 2021. UScellular formed USCC EIP LLC (Seller/Sub-Servicer), USCC Receivables Funding LLC (Transferor) and the USCC Master Note Trust (Trust), collectively the special purpose entities (SPEs), to facilitate a securitized borrowing using its equipment installment plan receivables. Under a Receivables Sale Agreement, UScellular wholly-owned, majority-owned and unconsolidated entities, collectively referred to as “affiliated entities”, transfer device equipment installment plan contracts to the Seller/Sub-Servicer. The Seller/Sub-Servicer aggregates device equipment installment plan contracts, and performs servicing, collection and all other administrative activities related to accounting for the equipment installment plan contracts. The Seller/Sub-Servicer sells the eligible equipment installment plan receivables to the Transferor, a bankruptcy remote entity, which subsequently sells the receivables to the Trust. The Trust, which is bankruptcy remote and isolated from the creditors of UScellular, 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 UScellular has the power to direct the activities of these SPEs, and that these SPEs lack sufficient equity to finance their activities, UScellular 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 licenses and to fund, establish, and provide wireless service with respect to any FCC wireless spectrum 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 wireless spectrum 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. 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, UScellular 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 also are 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, 2022 December 31, 2021 (Dollars in millions) Assets Cash and cash equivalents $ 30 $ 22 Accounts receivable 686 692 Inventory, net 3 2 Other current assets 35 44 Licenses 638 637 Property, plant and equipment, net 110 108 Operating lease right-of-use assets 41 42 Other assets and deferred charges 379 382 Total assets $ 1,922 $ 1,929 Liabilities Current liabilities $ 89 $ 28 Long-term operating lease liabilities 37 37 Other deferred liabilities and credits 26 23 Total liabilities 1 $ 152 $ 88 1 Total liabilities does not include amounts borrowed under the receivables securitization agreement. See Note 9 – Debt for additional information. 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, 2022 and December 31, 2021, respectively, and is included in Investments in unconsolidated entities in TDS’ Consolidated Balance Sheet. The maximum exposure from unconsolidated VIEs is limited to the investment held by TDS in those entities. Other Related Matters TDS made contributions, loans or advances to its VIEs totaling $101 million and $50 million, during the six months ended June 30, 2022 and 2021, respectively, of which $80 million in 2022 and $21 million in 2021, 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 wireless spectrum licenses granted in various auctions. TDS may finance such amounts with a combination of cash on hand, borrowings under its revolving credit or receivables securitization agreements 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. The limited partnership agreement of Advantage Spectrum also provides the general partner with a put option whereby the general partner may require the limited partner, a subsidiary of UScellular, to purchase its interest in the limited partnership. In June 2022, the limited partnership agreement was amended and the general partner’s put option related to its interest in Advantage Spectru m will now be exercisable in the third quarter of 2023, and if not exercised at that time, will be exercisable in the third quarter of 2024. The greater of the carrying value of the general partner's investment or the value of the put option, net of any borrowings due to TDS, is recorded as Noncontrolling interests with redemption features in TDS’ Consolidated Balance Sheet. Also in accordance with GAAP, minority share of income or changes in the redemption value of the put option, net of interest accrued on the loans, are recorded as a component of Net income attributable to noncontrolling interests, net of tax, in TDS’ Consolidated Statement of Operations. |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2022 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Change Due to Net Income Attributable to Parent and Effects of Changes, Net [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 UScellular on TDS’ equity: Six Months Ended June 30, 2022 2021 (Dollars in millions) Net income attributable to TDS shareholders $ 96 $ 86 Transfers (to) from noncontrolling interests Change in TDS' Capital in excess of par value from UScellular's issuance of UScellular shares (18) (43) Change in TDS' Capital in excess of par value from UScellular's repurchases of UScellular shares 13 1 Net transfers (to) from noncontrolling interests (5) (42) Net income attributable to TDS shareholders after transfers (to) from noncontrolling interests $ 91 $ 44 |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 12 Business Segment Information UScellular and TDS Telecom are billed for services they receive from TDS, consisting primarily of information processing, accounting, finance, and general management services. Such billings are based on expenses specifically identified to UScellular 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 UScellular and TDS Telecom are reflected in the accompanying business segment information on a basis that is representative of what they would have been if UScellular and TDS Telecom operated on a stand-alone basis. Financial data for TDS’ reportable segments for the three and six month periods ended, or as of June 30, 2022 and 2021, is as follows. See Note 1 — Basis of Presentation for additional information. Three Months Ended or as of June 30, 2022 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 783 $ 256 $ 25 $ 1,064 Equipment and product sales 244 — 41 285 Total operating revenues 1,027 256 66 1,349 Cost of services (excluding Depreciation, amortization and accretion reported below) 192 103 17 312 Cost of equipment and products 275 — 33 308 Selling, general and administrative 339 77 11 427 Depreciation, amortization and accretion 172 52 5 229 Loss on impairment of licenses 3 — — 3 (Gain) loss on asset disposals, net 6 1 — 7 Operating income 40 23 — 63 Equity in earnings of unconsolidated entities 37 — 1 38 Interest and dividend income 3 — 2 5 Interest expense (40) 2 (2) (40) Income before income taxes 40 25 1 66 Income tax expense 18 7 2 27 Net income (loss) 22 19 (2) 39 Add back: Depreciation, amortization and accretion 172 52 5 229 Loss on impairment of licenses 3 — — 3 (Gain) loss on asset disposals, net 6 1 — 7 Interest expense 40 (2) 2 40 Income tax expense 18 7 2 27 Adjusted EBITDA 1 $ 261 $ 76 $ 8 $ 345 Investments in unconsolidated entities $ 441 $ 4 $ 38 $ 483 Total assets $ 11,003 $ 2,803 $ 436 $ 14,242 Capital expenditures $ 268 $ 120 $ 3 $ 391 Three Months Ended or as of June 30, 2021 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 774 $ 251 $ 24 $ 1,049 Equipment and product sales 240 — 22 262 Total operating revenues 1,014 252 45 1,311 Cost of services (excluding Depreciation, amortization and accretion reported below) 204 101 19 324 Cost of equipment and products 258 — 18 276 Selling, general and administrative 334 73 9 416 Depreciation, amortization and accretion 180 49 5 234 (Gain) loss on asset disposals, net 2 1 — 3 Operating income (loss) 36 28 (6) 58 Equity in earnings of unconsolidated entities 47 — 1 48 Interest and dividend income 2 — 1 3 Interest expense (60) 1 (27) (86) Income (loss) before income taxes 25 29 (31) 23 Income tax expense (benefit) (10) 7 (8) (11) Net income (loss) 35 22 (23) 34 Add back: Depreciation, amortization and accretion 180 49 5 234 (Gain) loss on asset disposals, net 2 1 — 3 Interest expense 60 (1) 27 86 Income tax expense (benefit) (10) 7 (8) (11) Adjusted EBITDA 1 $ 267 $ 78 $ 1 $ 346 Investments in unconsolidated entities $ 445 $ 4 $ 38 $ 487 Total assets $ 9,920 $ 2,433 $ 427 $ 12,780 Capital expenditures $ 148 $ 99 $ 3 $ 250 Six Months Ended or as of June 30, 2022 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 1,570 $ 507 $ 48 $ 2,125 Equipment and product sales 467 1 71 539 Total operating revenues 2,037 507 120 2,664 Cost of services (excluding Depreciation, amortization and accretion reported below) 377 199 35 611 Cost of equipment and products 533 — 57 590 Selling, general and administrative 663 150 24 837 Depreciation, amortization and accretion 342 106 8 456 Loss on impairment of licenses 3 — — 3 (Gain) loss on asset disposals, net 8 1 — 9 Operating income (loss) 111 51 (4) 158 Equity in earnings of unconsolidated entities 82 — 1 83 Interest and dividend income 4 — 3 7 Interest expense (73) 4 (3) (72) Income (loss) before income taxes 124 56 (4) 176 Income tax expense 50 14 1 65 Net income (loss) 74 41 (4) 111 Add back: Depreciation, amortization and accretion 342 106 8 456 Loss on impairment of licenses 3 — — 3 (Gain) loss on asset disposals, net 8 1 — 9 Interest expense 73 (4) 3 72 Income tax expense 50 14 1 65 Adjusted EBITDA 1 $ 550 $ 159 $ 7 $ 716 Capital expenditures $ 405 $ 225 $ 3 $ 633 Six Months Ended or as of June 30, 2021 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 1,545 $ 500 $ 46 $ 2,091 Equipment and product sales 492 1 45 538 Total operating revenues 2,037 501 91 2,629 Cost of services (excluding Depreciation, amortization and accretion reported below) 389 199 35 623 Cost of equipment and products 533 — 37 570 Selling, general and administrative 639 143 22 804 Depreciation, amortization and accretion 350 98 9 457 (Gain) loss on asset disposals, net 7 1 — 8 (Gain) loss on sale of business and other exit costs, net (1) — — (1) Operating income (loss) 120 60 (12) 168 Equity in earnings of unconsolidated entities 88 — 2 90 Interest and dividend income 3 — 3 6 Interest expense (97) 2 (43) (138) Other, net — — (1) (1) Income (loss) before income taxes 114 62 (51) 125 Income tax expense (benefit) 17 15 (12) 20 Net income (loss) 97 46 (38) 105 Add back: Depreciation, amortization and accretion 350 98 9 457 (Gain) loss on asset disposals, net 7 1 — 8 (Gain) loss on sale of business and other exit costs, net (1) — — (1) Interest expense 97 (2) 43 138 Income tax expense (benefit) 17 15 (12) 20 Adjusted EBITDA 1 $ 567 $ 158 $ 2 $ 727 Capital expenditures $ 273 $ 169 $ 4 $ 446 Numbers may not foot due to rounding. 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 assessing segments' 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. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policy Disclosures [Line Items] | |
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). Unless otherwise specified, references to accounting provisions and GAAP in these notes refer to the requirements of the FASB 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 (UScellular) 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 requires consolidation under GAAP. 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, 2022, are UScellular and TDS Telecom. 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. 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 annual 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, certain 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, 2021. 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, 2022 and December 31, 2021 and its results of operations, comprehensive income and changes in equity for the three and six months ended June 30, 2022 and 2021, and its cash flows for the six months ended June 30, 2022 and 2021. 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, 2021. |
Revenue from Contract with Customer | As practical expedients, revenue related to contracts of less than one year, generally month-to-month contracts, and contracts with a fixed per-unit price and variable quantity, are excluded from these estimates.TDS expects that commission fees paid as a result of obtaining contracts are recoverable and therefore TDS defers and amortizes these costs. As a practical expedient, costs with an amortization period of one year or less are expensed as incurred. TDS also incurs fulfillment costs, such as installation costs, where there is an expectation that a future benefit will be realized. Deferred commission fees and fulfillment costs are amortized based on the timing of transfer of the goods or services to which the assets relate, typically the contract term. |
Variable Interest Entities | TDS consolidates VIEs in which it has a controlling financial interest as defined by GAAP and is therefore deemed the primary beneficiary. TDS reviews the criteria for a controlling financial interest 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 this Form 10-Q and TDS’ Form 10-K for the year ended December 31, 2021. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reconciliation of cash, cash equivalents and restricted cash | 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. June 30, 2022 December 31, 2021 (Dollars in millions) Cash and cash equivalents $ 466 $ 367 Restricted cash included in Other current assets 39 47 Cash, cash equivalents and restricted cash in the statement of cash flows $ 505 $ 414 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenues | In the following table, TDS' revenues are disaggregated by type of service, which represents the relevant categorization of revenues for TDS' reportable segments, and timing of recognition. Service revenues are recognized over time and Equipment and product sales are point in time. Three Months Ended June 30, 2022 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Revenues from contracts with customers: Type of service: Retail service $ 700 $ — $ — $ 700 Inbound roaming 18 — — 18 Residential — 168 — 168 Commercial — 44 — 44 Wholesale — 44 — 44 Other service 42 — 19 61 Service revenues from contracts with customers 760 255 19 1,035 Equipment and product sales 244 — 41 285 Total revenues from contracts with customers 1,004 255 60 1,320 Operating lease income 23 1 6 29 Total operating revenues $ 1,027 $ 256 $ 66 $ 1,349 Three Months Ended June 30, 2021 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Revenues from contracts with customers: Type of service: Retail service 1 $ 684 $ — $ — $ 684 Inbound roaming 28 — — 28 Residential — 160 — 160 Commercial — 46 — 46 Wholesale — 44 — 44 Other service 1 42 — 18 60 Service revenues from contracts with customers 754 251 18 1,022 Equipment and product sales 240 — 22 262 Total revenues from contracts with customers 994 251 39 1,284 Operating lease income 20 1 6 27 Total operating revenues $ 1,014 $ 252 $ 45 $ 1,311 Six Months Ended June 30, 2022 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Revenues from contracts with customers: Type of service: Retail service $ 1,402 $ — $ — $ 1,402 Inbound roaming 39 — — 39 Residential — 330 — 330 Commercial — 87 — 87 Wholesale — 87 — 87 Other service 84 — 36 120 Service revenues from contracts with customers 1,525 505 36 2,065 Equipment and product sales 467 1 71 539 Total revenues from contracts with customers 1,992 506 107 2,604 Operating lease income 45 2 13 60 Total operating revenues $ 2,037 $ 507 $ 120 $ 2,664 Six Months Ended June 30, 2021 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Revenues from contracts with customers: Type of service: Retail service 1 $ 1,367 $ — $ — $ 1,367 Inbound roaming 56 — — 56 Residential — 317 — 317 Commercial — 93 — 93 Wholesale — 89 — 89 Other service 1 81 — 34 115 Service revenues from contracts with customers 1,504 499 34 2,037 Equipment and product sales 492 1 45 538 Total revenues from contracts with customers 1,996 499 79 2,575 Operating lease income 41 1 12 54 Total operating revenues $ 2,037 $ 501 $ 91 $ 2,629 Numbers may not foot due to rounding. 1 For the three and six months ended June 30, 2021, amounts have been adjusted to reclassify $2 million and $4 million, respectively, of Internet of Things (IoT) and Reseller revenues from Retail service to Other service. |
Contract with Customer, Assets and Liabilities | The following table provides balances for contract assets from contracts with customers, which are recorded in Other current assets and Other assets and deferred charges in the Consolidated Balance Sheet, and 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. June 30, 2022 December 31, 2021 (Dollars in millions) Contract assets $ 9 $ 10 Contract liabilities $ 303 $ 289 |
Remaining Performance Obligations | The following table includes estimated service revenues expected to be recognized related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. These estimates represent service revenues to be recognized when services are delivered to customers pursuant to service plan contracts and under certain roaming agreements with other carriers. These estimates are based on contracts in place as of June 30, 2022 and may vary from actual results. As practical expedients, revenue related to contracts of less than one year, generally month-to-month contracts, and contracts with a fixed per-unit price and variable quantity, are excluded from these estimates. Service Revenues (Dollars in millions) Remainder of 2022 $ 277 2023 216 Thereafter 186 Total $ 679 |
Contract Cost Assets | TDS expects that commission fees paid as a result of obtaining contracts are recoverable and therefore TDS defers and amortizes these costs. As a practical expedient, costs with an amortization period of one year or less are expensed as incurred. TDS also incurs fulfillment costs, such as installation costs, where there is an expectation that a future benefit will be realized. Deferred commission fees and fulfillment costs are amortized based on the timing of transfer of the goods or services to which the assets relate, typically the contract term. Contract cost asset balances, which are recorded in Other assets and deferred charges in the Consolidated Balance Sheet, were as follows: June 30, 2022 December 31, 2021 (Dollars in millions) Costs to obtain contracts Sales commissions $ 134 $ 139 Fulfillment costs Installation costs 9 10 Total contract cost assets $ 143 $ 149 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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, 2022 December 31, 2021 Book Value Fair Value Book Value Fair Value (Dollars in millions) Long-term debt Retail 2 $ 1,500 $ 1,156 $ 1,500 $ 1,594 Institutional 2 536 425 535 659 Other 2 1,486 1,486 944 944 |
Equipment Installment Plans (Ta
Equipment Installment Plans (Table) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Equipment installment plan receivables | The following table summarizes equipment installment plan receivables. June 30, 2022 December 31, 2021 (Dollars in millions) Equipment installment plan receivables, gross $ 1,074 $ 1,085 Allowance for credit losses (74) (72) Equipment installment plan receivables, net $ 1,000 $ 1,013 Net balance presented in the Consolidated Balance Sheet as: Accounts receivable — Customers and agents (Current portion) $ 631 $ 639 Other assets and deferred charges (Non-current portion) 369 374 Equipment installment plan receivables, net $ 1,000 $ 1,013 |
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, 2022 December 31, 2021 Lowest Risk Lower Risk Slight Risk Higher Risk Total Lowest Risk Lower Risk Slight Risk Higher Risk Total (Dollars in millions) Unbilled $ 892 $ 91 $ 22 $ 5 $ 1,010 $ 896 $ 94 $ 24 $ 5 $ 1,019 Billed — current 38 5 1 — 44 40 5 1 1 47 Billed — past due 11 6 2 1 20 10 6 2 1 19 Total $ 941 $ 102 $ 25 $ 6 $ 1,074 $ 946 $ 105 $ 27 $ 7 $ 1,085 The balance of the equipment installment plan receivables as of June 30, 2022 on a gross basis by year of origination were as follows: 2019 2020 2021 2022 Total (Dollars in millions) Lowest Risk $ 3 $ 146 $ 462 $ 330 $ 941 Lower Risk — 10 52 40 102 Slight Risk — 1 8 16 25 Higher Risk — — 3 3 6 Total $ 3 $ 157 $ 525 $ 389 $ 1,074 |
Equipment installment plans allowance for credit losses | Activity for the six months ended June 30, 2022 and 2021, in the allowance for credit losses for equipment installment plan receivables was as follows: June 30, 2022 June 30, 2021 (Dollars in millions) Allowance for credit losses, beginning of period $ 72 $ 78 Bad debts expense 37 13 Write-offs, net of recoveries (35) (19) Allowance for credit losses, end of period $ 74 $ 72 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per share | The amounts used in computing basic and diluted earnings per share attributable to TDS common shareholders were as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 (Dollars and shares in millions, except per share amounts) Net income attributable to TDS common shareholders used in basic earnings per share $ 18 $ 20 $ 61 $ 77 Adjustments to compute diluted earnings: Noncontrolling interest adjustment — — (1) (1) Net income attributable to TDS common shareholders used in diluted earnings per share $ 18 $ 20 $ 60 $ 76 Weighted average number of shares used in basic earnings per share: Common Shares 108 108 108 108 Series A Common Shares 7 7 7 7 Total 115 115 115 115 Effects of dilutive securities 1 1 1 1 Weighted average number of shares used in diluted earnings per share 116 116 116 116 Basic earnings per share attributable to TDS common shareholders $ 0.15 $ 0.18 $ 0.53 $ 0.67 Diluted earnings per share attributable to TDS common shareholders $ 0.15 $ 0.17 $ 0.52 $ 0.65 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Licenses | |
Licenses | Activity related to Licenses for the six months ended June 30, 2022, is presented below: Licenses (Dollars in millions) Balance at December 31, 2021 $ 4,097 Acquisitions 587 Impairment (3) Transferred to Assets held for sale 1 Exchanges - Licenses received 1 Capitalized interest 3 Balance at June 30, 2022 $ 4,686 |
Investments in Unconsolidated_2
Investments in Unconsolidated Entities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity and measurement alternative method investments | TDS’ Investments in unconsolidated entities are accounted for using the equity method, measurement alternative method or net asset value practical expedient method as shown in the table below. The carrying value of measurement alternative method investments represents cost minus any impairments plus or minus any observable price changes. June 30, 2022 December 31, 2021 (Dollars in millions) Equity method investments $ 455 $ 457 Measurement alternative method investments 18 22 Investments recorded using the net asset value practical expedient 10 — Total investments in unconsolidated entities $ 483 $ 479 The following table, which is based on unaudited information provided in part by third parties, summarizes the combined results of operations of TDS’ equity method investments. Three Months Ended Six Months Ended 2022 2021 2022 2021 (Dollars in millions) Revenues $ 1,779 $ 1,748 $ 3,595 $ 3,482 Operating expenses 1,395 1,221 2,772 2,502 Operating income 384 527 823 980 Other income (expense), net (2) (2) (6) 10 Net income $ 382 $ 525 $ 817 $ 990 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Revolving credit facilities | The following table summarizes the revolving credit agreements as of June 30, 2022: TDS UScellular (Dollars in millions) Maximum borrowing capacity $ 400 $ 300 Letters of credit outstanding $ 1 $ — Amount borrowed $ — $ — Amount available for use $ 399 $ 300 The following table summarizes the term loan credit agreements as of June 30, 2022: TDS UScellular (Dollars in millions) Maximum borrowing capacity $ 500 $ 800 Amount borrowed and outstanding $ 349 $ 698 Amount borrowed and repaid $ 1 $ 2 Amount available for use $ 150 $ 100 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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, 2022 December 31, 2021 (Dollars in millions) Assets Cash and cash equivalents $ 30 $ 22 Accounts receivable 686 692 Inventory, net 3 2 Other current assets 35 44 Licenses 638 637 Property, plant and equipment, net 110 108 Operating lease right-of-use assets 41 42 Other assets and deferred charges 379 382 Total assets $ 1,922 $ 1,929 Liabilities Current liabilities $ 89 $ 28 Long-term operating lease liabilities 37 37 Other deferred liabilities and credits 26 23 Total liabilities 1 $ 152 $ 88 1 Total liabilities does not include amounts borrowed under the receivables securitization agreement. See Note 9 – Debt for additional information. |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Change Due to Net Income Attributable to Parent and Effects of Changes, Net [Abstract] | |
Noncontrolling interests | The following schedule discloses the effects of Net income attributable to TDS shareholders and changes in TDS’ ownership interest in UScellular on TDS’ equity: Six Months Ended June 30, 2022 2021 (Dollars in millions) Net income attributable to TDS shareholders $ 96 $ 86 Transfers (to) from noncontrolling interests Change in TDS' Capital in excess of par value from UScellular's issuance of UScellular shares (18) (43) Change in TDS' Capital in excess of par value from UScellular's repurchases of UScellular shares 13 1 Net transfers (to) from noncontrolling interests (5) (42) Net income attributable to TDS shareholders after transfers (to) from noncontrolling interests $ 91 $ 44 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Business segment information | Financial data for TDS’ reportable segments for the three and six month periods ended, or as of June 30, 2022 and 2021, is as follows. See Note 1 — Basis of Presentation for additional information. Three Months Ended or as of June 30, 2022 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 783 $ 256 $ 25 $ 1,064 Equipment and product sales 244 — 41 285 Total operating revenues 1,027 256 66 1,349 Cost of services (excluding Depreciation, amortization and accretion reported below) 192 103 17 312 Cost of equipment and products 275 — 33 308 Selling, general and administrative 339 77 11 427 Depreciation, amortization and accretion 172 52 5 229 Loss on impairment of licenses 3 — — 3 (Gain) loss on asset disposals, net 6 1 — 7 Operating income 40 23 — 63 Equity in earnings of unconsolidated entities 37 — 1 38 Interest and dividend income 3 — 2 5 Interest expense (40) 2 (2) (40) Income before income taxes 40 25 1 66 Income tax expense 18 7 2 27 Net income (loss) 22 19 (2) 39 Add back: Depreciation, amortization and accretion 172 52 5 229 Loss on impairment of licenses 3 — — 3 (Gain) loss on asset disposals, net 6 1 — 7 Interest expense 40 (2) 2 40 Income tax expense 18 7 2 27 Adjusted EBITDA 1 $ 261 $ 76 $ 8 $ 345 Investments in unconsolidated entities $ 441 $ 4 $ 38 $ 483 Total assets $ 11,003 $ 2,803 $ 436 $ 14,242 Capital expenditures $ 268 $ 120 $ 3 $ 391 Three Months Ended or as of June 30, 2021 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 774 $ 251 $ 24 $ 1,049 Equipment and product sales 240 — 22 262 Total operating revenues 1,014 252 45 1,311 Cost of services (excluding Depreciation, amortization and accretion reported below) 204 101 19 324 Cost of equipment and products 258 — 18 276 Selling, general and administrative 334 73 9 416 Depreciation, amortization and accretion 180 49 5 234 (Gain) loss on asset disposals, net 2 1 — 3 Operating income (loss) 36 28 (6) 58 Equity in earnings of unconsolidated entities 47 — 1 48 Interest and dividend income 2 — 1 3 Interest expense (60) 1 (27) (86) Income (loss) before income taxes 25 29 (31) 23 Income tax expense (benefit) (10) 7 (8) (11) Net income (loss) 35 22 (23) 34 Add back: Depreciation, amortization and accretion 180 49 5 234 (Gain) loss on asset disposals, net 2 1 — 3 Interest expense 60 (1) 27 86 Income tax expense (benefit) (10) 7 (8) (11) Adjusted EBITDA 1 $ 267 $ 78 $ 1 $ 346 Investments in unconsolidated entities $ 445 $ 4 $ 38 $ 487 Total assets $ 9,920 $ 2,433 $ 427 $ 12,780 Capital expenditures $ 148 $ 99 $ 3 $ 250 Six Months Ended or as of June 30, 2022 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 1,570 $ 507 $ 48 $ 2,125 Equipment and product sales 467 1 71 539 Total operating revenues 2,037 507 120 2,664 Cost of services (excluding Depreciation, amortization and accretion reported below) 377 199 35 611 Cost of equipment and products 533 — 57 590 Selling, general and administrative 663 150 24 837 Depreciation, amortization and accretion 342 106 8 456 Loss on impairment of licenses 3 — — 3 (Gain) loss on asset disposals, net 8 1 — 9 Operating income (loss) 111 51 (4) 158 Equity in earnings of unconsolidated entities 82 — 1 83 Interest and dividend income 4 — 3 7 Interest expense (73) 4 (3) (72) Income (loss) before income taxes 124 56 (4) 176 Income tax expense 50 14 1 65 Net income (loss) 74 41 (4) 111 Add back: Depreciation, amortization and accretion 342 106 8 456 Loss on impairment of licenses 3 — — 3 (Gain) loss on asset disposals, net 8 1 — 9 Interest expense 73 (4) 3 72 Income tax expense 50 14 1 65 Adjusted EBITDA 1 $ 550 $ 159 $ 7 $ 716 Capital expenditures $ 405 $ 225 $ 3 $ 633 Six Months Ended or as of June 30, 2021 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 1,545 $ 500 $ 46 $ 2,091 Equipment and product sales 492 1 45 538 Total operating revenues 2,037 501 91 2,629 Cost of services (excluding Depreciation, amortization and accretion reported below) 389 199 35 623 Cost of equipment and products 533 — 37 570 Selling, general and administrative 639 143 22 804 Depreciation, amortization and accretion 350 98 9 457 (Gain) loss on asset disposals, net 7 1 — 8 (Gain) loss on sale of business and other exit costs, net (1) — — (1) Operating income (loss) 120 60 (12) 168 Equity in earnings of unconsolidated entities 88 — 2 90 Interest and dividend income 3 — 3 6 Interest expense (97) 2 (43) (138) Other, net — — (1) (1) Income (loss) before income taxes 114 62 (51) 125 Income tax expense (benefit) 17 15 (12) 20 Net income (loss) 97 46 (38) 105 Add back: Depreciation, amortization and accretion 350 98 9 457 (Gain) loss on asset disposals, net 7 1 — 8 (Gain) loss on sale of business and other exit costs, net (1) — — (1) Interest expense 97 (2) 43 138 Income tax expense (benefit) 17 15 (12) 20 Adjusted EBITDA 1 $ 567 $ 158 $ 2 $ 727 Capital expenditures $ 273 $ 169 $ 4 $ 446 Numbers may not foot due to rounding. 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 assessing segments' 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. |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Basis of Presentation [Line Items] | |
Software license costs incurred but not yet paid | $ 139 |
UScellular | |
Basis of Presentation [Line Items] | |
TDS ownership of UScellular | 83% |
Basis of Presentation - Cash, C
Basis of Presentation - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 466 | $ 367 | ||
Restricted cash included in Other current assets | 39 | 47 | ||
Cash, cash equivalents and restricted cash in the statement of cash flows | $ 505 | $ 414 | $ 419 | $ 1,452 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of revenue | ||||
Revenue from contracts with customers | $ 1,320 | $ 1,284 | $ 2,604 | $ 2,575 |
Operating lease income | 29 | 27 | 60 | 54 |
Total operating revenues | 1,349 | 1,311 | 2,664 | 2,629 |
Transferred over time | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 1,035 | 1,022 | 2,065 | 2,037 |
Transferred over time | Retail service | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 700 | 684 | 1,402 | 1,367 |
Transferred over time | Inbound roaming | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 18 | 28 | 39 | 56 |
Transferred over time | Residential | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 168 | 160 | 330 | 317 |
Transferred over time | Commercial | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 44 | 46 | 87 | 93 |
Transferred over time | Wholesale | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 44 | 44 | 87 | 89 |
Transferred over time | Other service | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 61 | 60 | 120 | 115 |
Transferred at point in time | Equipment and product sales | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 285 | 262 | 539 | 538 |
UScellular | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 1,004 | 994 | 1,992 | 1,996 |
Operating lease income | 23 | 20 | 45 | 41 |
Total operating revenues | 1,027 | 1,014 | 2,037 | 2,037 |
UScellular | Transferred over time | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 760 | 754 | 1,525 | 1,504 |
UScellular | Transferred over time | Retail service | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 700 | 684 | 1,402 | 1,367 |
UScellular | Transferred over time | Retail service | Prior period reclassification | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | (2) | (4) | ||
UScellular | Transferred over time | Inbound roaming | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 18 | 28 | 39 | 56 |
UScellular | Transferred over time | Residential | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
UScellular | Transferred over time | Commercial | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
UScellular | Transferred over time | Wholesale | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
UScellular | Transferred over time | Other service | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 42 | 42 | 84 | 81 |
UScellular | Transferred over time | Other service | Prior period reclassification | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 2 | 4 | ||
UScellular | Transferred at point in time | Equipment and product sales | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 244 | 240 | 467 | 492 |
TDS Telecom | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 255 | 251 | 506 | 499 |
Operating lease income | 1 | 1 | 2 | 1 |
Total operating revenues | 256 | 252 | 507 | 501 |
TDS Telecom | Transferred over time | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 255 | 251 | 505 | 499 |
TDS Telecom | Transferred over time | Retail service | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
TDS Telecom | Transferred over time | Inbound roaming | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
TDS Telecom | Transferred over time | Residential | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 168 | 160 | 330 | 317 |
TDS Telecom | Transferred over time | Commercial | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 44 | 46 | 87 | 93 |
TDS Telecom | Transferred over time | Wholesale | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 44 | 44 | 87 | 89 |
TDS Telecom | Transferred over time | Other service | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
TDS Telecom | Transferred at point in time | Equipment and product sales | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 0 | 0 | 1 | 1 |
Corporate, Eliminations and Other | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 60 | 39 | 107 | 79 |
Operating lease income | 6 | 6 | 13 | 12 |
Total operating revenues | 66 | 45 | 120 | 91 |
Corporate, Eliminations and Other | Transferred over time | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 19 | 18 | 36 | 34 |
Corporate, Eliminations and Other | Transferred over time | Retail service | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Corporate, Eliminations and Other | Transferred over time | Inbound roaming | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Corporate, Eliminations and Other | Transferred over time | Residential | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Corporate, Eliminations and Other | Transferred over time | Commercial | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Corporate, Eliminations and Other | Transferred over time | Wholesale | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Corporate, Eliminations and Other | Transferred over time | Other service | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | 19 | 18 | 36 | 34 |
Corporate, Eliminations and Other | Transferred at point in time | Equipment and product sales | ||||
Disaggregation of revenue | ||||
Revenue from contracts with customers | $ 41 | $ 22 | $ 71 | $ 45 |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 9 | $ 10 |
Contract liabilities | 303 | $ 289 |
Revenue recognized | $ 171 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligations (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 679 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 277 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of remaining performance obligation, period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 216 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 186 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of remaining performance obligation, period |
Revenue Recognition - Contrac_2
Revenue Recognition - Contract Cost Assets (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Contract Cost Assets | ||
Contract cost assets | $ 143 | $ 149 |
Sales commissions | ||
Contract Cost Assets | ||
Contract cost assets | 134 | 139 |
Installation costs | ||
Contract Cost Assets | ||
Contract cost assets | $ 9 | $ 10 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Capitalized contract cost | ||||
Amortization of contract cost assets | $ 28 | $ 29 | $ 57 | $ 59 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
6.7% Senior Notes | UScellular | ||
Financial Instruments | ||
Interest rate | 6.70% | |
Book Value | Retail | ||
Financial Instruments | ||
Long-term debt | $ 1,500 | $ 1,500 |
Book Value | Institutional | ||
Financial Instruments | ||
Long-term debt | 536 | 535 |
Book Value | Other | ||
Financial Instruments | ||
Long-term debt | 1,486 | 944 |
Fair Value | Level 2 | Retail | ||
Financial Instruments | ||
Long-term debt | 1,156 | 1,594 |
Fair Value | Level 2 | Institutional | ||
Financial Instruments | ||
Long-term debt | 425 | 659 |
Fair Value | Level 2 | Other | ||
Financial Instruments | ||
Long-term debt | $ 1,486 | $ 944 |
Interest rate | Institutional and Other | Minimum | ||
Financial Instruments | ||
Fair value assumption, interest rate | 2.22% | 1.31% |
Interest rate | Institutional and Other | Maximum | ||
Financial Instruments | ||
Fair value assumption, interest rate | 7.75% | 4.40% |
Equipment Installment Plans - E
Equipment Installment Plans - EIP Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Equipment installment plan receivables, gross | $ 1,074 | $ 1,085 |
Allowance for credit losses | (74) | (72) |
Equipment installment plan receivables, net | 1,000 | 1,013 |
Accounts receivable — Customers and agents (Current portion) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Equipment installment plan receivables, net | 631 | 639 |
Other assets and deferred charges (Non-current portion) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Equipment installment plan receivables, net | $ 369 | $ 374 |
Equipment Installment Plans - G
Equipment Installment Plans - Gross Receivables by Credit Category (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | $ 1,074 | $ 1,085 |
2019 | 3 | |
2020 | 157 | |
2021 | 525 | |
2022 | 389 | |
Unbilled | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 1,010 | 1,019 |
Billed | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 44 | 47 |
Billed | Past due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 20 | 19 |
Lowest Risk | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 941 | 946 |
2019 | 3 | |
2020 | 146 | |
2021 | 462 | |
2022 | 330 | |
Lowest Risk | Unbilled | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 892 | 896 |
Lowest Risk | Billed | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 38 | 40 |
Lowest Risk | Billed | Past due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 11 | 10 |
Lower Risk | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 102 | 105 |
2019 | 0 | |
2020 | 10 | |
2021 | 52 | |
2022 | 40 | |
Lower Risk | Unbilled | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 91 | 94 |
Lower Risk | Billed | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 5 | 5 |
Lower Risk | Billed | Past due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 6 | 6 |
Slight Risk | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 25 | 27 |
2019 | 0 | |
2020 | 1 | |
2021 | 8 | |
2022 | 16 | |
Slight Risk | Unbilled | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 22 | 24 |
Slight Risk | Billed | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 1 | 1 |
Slight Risk | Billed | Past due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 2 | 2 |
Higher Risk | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 6 | 7 |
2019 | 0 | |
2020 | 0 | |
2021 | 3 | |
2022 | 3 | |
Higher Risk | Unbilled | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 5 | 5 |
Higher Risk | Billed | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 0 | 1 |
Higher Risk | Billed | Past due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | $ 1 | $ 1 |
Equipment Installment Plans - A
Equipment Installment Plans - Allowance for Credit Losses (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Allowance for credit losses | ||
Allowance for credit losses, beginning of period | $ 72 | |
Allowance for credit losses, end of period | 74 | |
Equipment Installment Plan Receivable | ||
Allowance for credit losses | ||
Allowance for credit losses, beginning of period | 72 | $ 78 |
Bad debts expense | 37 | 13 |
Write-offs, net of recoveries | (35) | (19) |
Allowance for credit losses, end of period | $ 74 | $ 72 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 40.40% | (48.90%) | 36.70% | 15.50% |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings per share | ||||
Net income attributable to TDS common shareholders used in basic earnings per share | $ 18 | $ 20 | $ 61 | $ 77 |
Noncontrolling interest adjustment | 0 | 0 | (1) | (1) |
Net income attributable to TDS common shareholders used in diluted earnings per share | $ 18 | $ 20 | $ 60 | $ 76 |
Weighted average number of shares used in basic earnings per share (in shares) | 115 | 115 | 115 | 115 |
Effects of dilutive securities (in shares) | 1 | 1 | 1 | 1 |
Weighted average number of shares used in diluted earnings per share (in shares) | 116 | 116 | 116 | 116 |
Basic earnings per share attributable to TDS common shareholders (in dollars per share) | $ 0.15 | $ 0.18 | $ 0.53 | $ 0.67 |
Diluted earnings per share attributable to TDS common shareholders (in dollars per share) | $ 0.15 | $ 0.17 | $ 0.52 | $ 0.65 |
Common Shares | ||||
Earnings per share | ||||
Weighted average number of shares used in basic earnings per share (in shares) | 108 | 108 | 108 | 108 |
Series A Common Shares | ||||
Earnings per share | ||||
Weighted average number of shares used in basic earnings per share (in shares) | 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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 4 | 3 | 4 | 3 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Licenses | ||||
Balance, beginning of period | $ 4,097 | |||
Acquisitions | 587 | |||
Impairment | $ (3) | $ 0 | (3) | $ 0 |
Transferred to Assets held for sale | 1 | |||
Exchanges - Licenses received | 1 | |||
Capitalized interest | 3 | |||
Balance, end of period | $ 4,686 | $ 4,686 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) $ in Millions | 6 Months Ended | 12 Months Ended | 39 Months Ended | ||
Jun. 30, 2022 USD ($) license | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) license | Dec. 31, 2020 USD ($) | Dec. 31, 2024 USD ($) | |
Licenses | |||||
Cash paid for intangible assets | $ 585 | $ 1,264 | |||
Auction 107 | |||||
Licenses | |||||
Licenses won | license | 254 | ||||
Total winning bid | $ 1,283 | ||||
FCC upfront payment | $ 30 | ||||
Cash paid for intangible assets | 36 | ||||
Auction 107 | Subsequent event | |||||
Licenses | |||||
Cash paid for intangible assets | $ 187 | ||||
Auction 110 | |||||
Licenses | |||||
Licenses won | license | 380 | ||||
Total winning bid | $ 580 | ||||
FCC upfront payment | $ 20 |
Investments in Unconsolidated_3
Investments in Unconsolidated Entities - Schedule of Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |||||
Equity method investments | $ 455 | $ 455 | $ 457 | ||
Measurement alternative method investments | 18 | 18 | 22 | ||
Investments recorded using the net asset value practical expedient | 10 | 10 | 0 | ||
Total investments in unconsolidated entities | 483 | $ 487 | 483 | $ 487 | $ 479 |
Schedule of Equity Method Investments [Line Items] | |||||
Revenues | 1,349 | 1,311 | 2,664 | 2,629 | |
Operating expenses | 1,286 | 1,253 | 2,506 | 2,461 | |
Operating income | 63 | 58 | 158 | 168 | |
Other income (expense), net | 0 | 0 | 0 | (1) | |
Net income | 39 | 34 | 111 | 105 | |
Equity Method Investments | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenues | 1,779 | 1,748 | 3,595 | 3,482 | |
Operating expenses | 1,395 | 1,221 | 2,772 | 2,502 | |
Operating income | 384 | 527 | 823 | 980 | |
Other income (expense), net | (2) | (2) | (6) | 10 | |
Net income | $ 382 | $ 525 | $ 817 | $ 990 |
Debt - Revolving Credit Agreeme
Debt - Revolving Credit Agreements (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
TDS Revolving credit facility | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 400 |
Letters of credit outstanding | 1 |
Amount borrowed | 0 |
Amount available for use | $ 399 |
TDS Revolving credit facility | LIBOR rate | |
Line of Credit Facility [Line Items] | |
Contractual spread | 1.50% |
UScellular Revolving credit facility | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 300 |
Letters of credit outstanding | 0 |
Amount borrowed | 0 |
Amount available for use | 300 |
Amount borrowed during the period | 75 |
Amount repaid during the period | $ 75 |
UScellular Revolving credit facility | SOFR rate | |
Line of Credit Facility [Line Items] | |
Contractual spread | 1.60% |
Debt - Term Loan Agreements (De
Debt - Term Loan Agreements (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 29, 2022 | Jun. 30, 2022 | |
TDS Term Loan Agreement | LIBOR rate | ||
Debt Instrument [Line Items] | ||
Contractual spread | 2% | |
TDS Term Loan Agreement Amendment | LIBOR rate | ||
Debt Instrument [Line Items] | ||
Contractual spread | 2.50% | |
TDS Term Loan Agreements | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 500 | |
Amount borrowed and outstanding | 349 | |
Amount borrowed and repaid | 1 | |
Amount available for use | $ 150 | |
TDS Term Loan Agreements | Subsequent event | ||
Debt Instrument [Line Items] | ||
Amount borrowed during the period | $ 150 | |
UScellular Term Loan Agreement | SOFR rate | ||
Debt Instrument [Line Items] | ||
Contractual spread | 2.10% | |
UScellular Term Loan Agreement Amendment | SOFR rate | ||
Debt Instrument [Line Items] | ||
Contractual spread | 2.60% | |
UScellular 2021 Term Loan Agreement | SOFR rate | ||
Debt Instrument [Line Items] | ||
Contractual spread | 1.60% | |
UScellular Term Loan Agreements | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 800 | |
Amount borrowed and outstanding | 698 | |
Amount borrowed and repaid | 2 | |
Amount available for use | $ 100 | |
UScellular Term Loan Agreements | Subsequent event | ||
Debt Instrument [Line Items] | ||
Amount borrowed during the period | $ 100 |
Debt - Export Credit Financing
Debt - Export Credit Financing Agreement (Details) - Export credit financing agreement $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | $ 150 |
Amount borrowed during the period | $ 150 |
SOFR rate | |
Debt Instrument [Line Items] | |
Contractual spread | 1.60% |
Debt - Receivables Securitizati
Debt - Receivables Securitization Agreement (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jul. 29, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Equipment installment plan receivables | $ 1,074 | $ 1,085 | |
UScellular | Receivables securitization agreement | |||
Debt Instrument [Line Items] | |||
Outstanding borrowings | 300 | ||
Amount repaid during the period | 150 | ||
Amount available for use | 150 | ||
UScellular | Receivables securitization agreement | Subsequent event | |||
Debt Instrument [Line Items] | |||
Amount repaid during the period | $ 50 | ||
UScellular | Receivables securitization agreement | Assets available to be pledged | |||
Debt Instrument [Line Items] | |||
Equipment installment plan receivables | $ 426 | ||
SOFR rate | UScellular | Receivables securitization agreement | |||
Debt Instrument [Line Items] | |||
Contractual spread | 0.90% |
Debt - Repurchase Agreement (De
Debt - Repurchase Agreement (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jul. 29, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Equipment installment plan receivables | $ 1,074 | $ 1,085 | |
Repurchase Agreement | UScellular | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 200 | ||
Amount borrowed during the period | 60 | ||
Amount borrowed and outstanding | 60 | ||
Unused borrowing capacity | 140 | ||
Repurchase Agreement | UScellular | Assets available to be pledged | |||
Debt Instrument [Line Items] | |||
Equipment installment plan receivables | $ 638 | ||
Repurchase Agreement | UScellular | Subsequent event | |||
Debt Instrument [Line Items] | |||
Amount repaid during the period | $ 50 | ||
SOFR rate | Repurchase Agreement | UScellular | |||
Debt Instrument [Line Items] | |||
Contractual spread | 1.25% |
Variable Interest Entities - Co
Variable Interest Entities - Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | ||
Assets | |||||
Cash and cash equivalents | $ 466 | $ 367 | |||
Accounts receivable | 1,055 | 1,058 | |||
Inventory, net | 213 | 178 | |||
Other current assets | 54 | 61 | |||
Licenses | 4,686 | 4,097 | |||
Property, plant and equipment, net | 4,553 | 4,361 | |||
Operating lease right-of-use assets | 1,022 | 1,040 | |||
Other assets and deferred charges | 675 | 710 | |||
Total assets | 14,242 | [1] | 13,493 | [1] | $ 12,780 |
Liabilities | |||||
Current liabilities | 1,234 | 1,180 | |||
Long-term operating lease liabilities | 940 | 960 | |||
Other deferred liabilities and credits | 879 | 759 | |||
Consolidated Variable Interest Entities | |||||
Assets | |||||
Cash and cash equivalents | 30 | 22 | |||
Accounts receivable | 686 | 692 | |||
Inventory, net | 3 | 2 | |||
Other current assets | 35 | 44 | |||
Licenses | 638 | 637 | |||
Property, plant and equipment, net | 110 | 108 | |||
Operating lease right-of-use assets | 41 | 42 | |||
Other assets and deferred charges | 379 | 382 | |||
Total assets | 1,922 | 1,929 | |||
Liabilities | |||||
Current liabilities | 89 | 28 | |||
Long-term operating lease liabilities | 37 | 37 | |||
Other deferred liabilities and credits | 26 | 23 | |||
Total liabilities | $ 152 | $ 88 | |||
[1]The consolidated total assets as of June 30, 2022 and December 31, 2021, include assets held by consolidated variable interest entities (VIEs) of $1,299 million and $1,456 million, respectively, which are not available to be used to settle the obligations of TDS. The consolidated total liabilities as of June 30, 2022 and December 31, 2021, include certain liabilities of consolidated VIEs of $21 million for which the creditors of the VIEs have no recourse to the general credit of TDS. See Note 10 — Variable Interest Entities for additional information. |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Variable Interest Entity [Line Items] | |||
Investment in unconsolidated entities, maximum exposure | $ 5 | $ 4 | |
Capital contributions, loans or advances | 101 | $ 50 | |
USCC EIP LLC | |||
Variable Interest Entity [Line Items] | |||
Capital contributions, loans or advances | $ 80 | $ 21 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Change Due to Net Income Attributable to Parent and Effects of Changes, Net [Abstract] | ||||
Net income attributable to TDS shareholders | $ 35 | $ 27 | $ 96 | $ 86 |
Transfers (to) from noncontrolling interests | ||||
Change in TDS' Capital in excess of par value from UScellular's issuance of UScellular shares | (18) | (43) | ||
Change in TDS' Capital in excess of par value from UScellular's repurchases of UScellular shares | 13 | 1 | ||
Net transfers (to) from noncontrolling interests | (5) | (42) | ||
Net income attributable to TDS shareholders after transfers (to) from noncontrolling interests | $ 91 | $ 44 |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | ||||
Segment Reporting Information [Line Items] | ||||||||
Total operating revenues | $ 1,349 | $ 1,311 | $ 2,664 | $ 2,629 | ||||
Selling, general and administrative | 427 | 416 | 837 | 804 | ||||
Depreciation, amortization and accretion | 229 | 234 | 456 | 457 | ||||
Loss on impairment of licenses | 3 | 0 | 3 | 0 | ||||
(Gain) loss on asset disposals, net | 7 | 3 | 9 | 8 | ||||
(Gain) loss on sale of business and other exit costs, net | 0 | 0 | 0 | (1) | ||||
Operating income | 63 | 58 | 158 | 168 | ||||
Equity in earnings of unconsolidated entities | 38 | 48 | 83 | 90 | ||||
Interest and dividend income | 5 | 3 | 7 | 6 | ||||
Interest expense | (40) | (86) | (72) | (138) | ||||
Other, net | 0 | 0 | 0 | (1) | ||||
Income before income taxes | 66 | 23 | 176 | 125 | ||||
Income tax expense (benefit) | 27 | (11) | 65 | 20 | ||||
Net income | 39 | 34 | 111 | 105 | ||||
Depreciation, amortization and accretion | 229 | 234 | 456 | 457 | ||||
Loss on impairment of licenses | 3 | 0 | 3 | 0 | ||||
(Gain) loss on asset disposals, net | 7 | 3 | 9 | 8 | ||||
(Gain) loss on sale of business and other exit costs, net | 0 | 0 | 0 | (1) | ||||
Interest expense | 40 | 86 | 72 | 138 | ||||
Income tax expense (benefit) | 27 | (11) | 65 | 20 | ||||
Adjusted EBITDA | 345 | 346 | 716 | 727 | ||||
Investments in unconsolidated entities | 483 | 487 | 483 | 487 | $ 479 | |||
Total assets | 14,242 | [1] | 12,780 | 14,242 | [1] | 12,780 | $ 13,493 | [1] |
Capital expenditures | 391 | 250 | 633 | 446 | ||||
Service | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total operating revenues | 1,064 | 1,049 | 2,125 | 2,091 | ||||
Cost of goods and services | 312 | 324 | 611 | 623 | ||||
Equipment and product sales | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total operating revenues | 285 | 262 | 539 | 538 | ||||
Cost of goods and services | 308 | 276 | 590 | 570 | ||||
UScellular | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total operating revenues | 1,027 | 1,014 | 2,037 | 2,037 | ||||
Selling, general and administrative | 339 | 334 | 663 | 639 | ||||
Depreciation, amortization and accretion | 172 | 180 | 342 | 350 | ||||
Loss on impairment of licenses | 3 | 3 | ||||||
(Gain) loss on asset disposals, net | 6 | 2 | 8 | 7 | ||||
(Gain) loss on sale of business and other exit costs, net | (1) | |||||||
Operating income | 40 | 36 | 111 | 120 | ||||
Equity in earnings of unconsolidated entities | 37 | 47 | 82 | 88 | ||||
Interest and dividend income | 3 | 2 | 4 | 3 | ||||
Interest expense | (40) | (60) | (73) | (97) | ||||
Other, net | 0 | |||||||
Income before income taxes | 40 | 25 | 124 | 114 | ||||
Income tax expense (benefit) | 18 | (10) | 50 | 17 | ||||
Net income | 22 | 35 | 74 | 97 | ||||
Depreciation, amortization and accretion | 172 | 180 | 342 | 350 | ||||
Loss on impairment of licenses | 3 | 3 | ||||||
(Gain) loss on asset disposals, net | 6 | 2 | 8 | 7 | ||||
(Gain) loss on sale of business and other exit costs, net | (1) | |||||||
Interest expense | 40 | 60 | 73 | 97 | ||||
Income tax expense (benefit) | 18 | (10) | 50 | 17 | ||||
Adjusted EBITDA | 261 | 267 | 550 | 567 | ||||
Investments in unconsolidated entities | 441 | 445 | 441 | 445 | ||||
Total assets | 11,003 | 9,920 | 11,003 | 9,920 | ||||
Capital expenditures | 268 | 148 | 405 | 273 | ||||
UScellular | Service | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total operating revenues | 783 | 774 | 1,570 | 1,545 | ||||
Cost of goods and services | 192 | 204 | 377 | 389 | ||||
UScellular | Equipment and product sales | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total operating revenues | 244 | 240 | 467 | 492 | ||||
Cost of goods and services | 275 | 258 | 533 | 533 | ||||
TDS Telecom | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total operating revenues | 256 | 252 | 507 | 501 | ||||
Selling, general and administrative | 77 | 73 | 150 | 143 | ||||
Depreciation, amortization and accretion | 52 | 49 | 106 | 98 | ||||
Loss on impairment of licenses | 0 | 0 | ||||||
(Gain) loss on asset disposals, net | 1 | 1 | 1 | 1 | ||||
(Gain) loss on sale of business and other exit costs, net | 0 | |||||||
Operating income | 23 | 28 | 51 | 60 | ||||
Equity in earnings of unconsolidated entities | 0 | 0 | 0 | 0 | ||||
Interest and dividend income | 0 | 0 | 0 | 0 | ||||
Interest expense | 2 | 1 | 4 | 2 | ||||
Other, net | 0 | |||||||
Income before income taxes | 25 | 29 | 56 | 62 | ||||
Income tax expense (benefit) | 7 | 7 | 14 | 15 | ||||
Net income | 19 | 22 | 41 | 46 | ||||
Depreciation, amortization and accretion | 52 | 49 | 106 | 98 | ||||
Loss on impairment of licenses | 0 | 0 | ||||||
(Gain) loss on asset disposals, net | 1 | 1 | 1 | 1 | ||||
(Gain) loss on sale of business and other exit costs, net | 0 | |||||||
Interest expense | (2) | (1) | (4) | (2) | ||||
Income tax expense (benefit) | 7 | 7 | 14 | 15 | ||||
Adjusted EBITDA | 76 | 78 | 159 | 158 | ||||
Investments in unconsolidated entities | 4 | 4 | 4 | 4 | ||||
Total assets | 2,803 | 2,433 | 2,803 | 2,433 | ||||
Capital expenditures | 120 | 99 | 225 | 169 | ||||
TDS Telecom | Service | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total operating revenues | 256 | 251 | 507 | 500 | ||||
Cost of goods and services | 103 | 101 | 199 | 199 | ||||
TDS Telecom | Equipment and product sales | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total operating revenues | 0 | 0 | 1 | 1 | ||||
Cost of goods and services | 0 | 0 | 0 | 0 | ||||
Corporate, Eliminations and Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total operating revenues | 66 | 45 | 120 | 91 | ||||
Selling, general and administrative | 11 | 9 | 24 | 22 | ||||
Depreciation, amortization and accretion | 5 | 5 | 8 | 9 | ||||
Loss on impairment of licenses | 0 | 0 | ||||||
(Gain) loss on asset disposals, net | 0 | 0 | 0 | 0 | ||||
(Gain) loss on sale of business and other exit costs, net | 0 | |||||||
Operating income | 0 | (6) | (4) | (12) | ||||
Equity in earnings of unconsolidated entities | 1 | 1 | 1 | 2 | ||||
Interest and dividend income | 2 | 1 | 3 | 3 | ||||
Interest expense | (2) | (27) | (3) | (43) | ||||
Other, net | (1) | |||||||
Income before income taxes | 1 | (31) | (4) | (51) | ||||
Income tax expense (benefit) | 2 | (8) | 1 | (12) | ||||
Net income | (2) | (23) | (4) | (38) | ||||
Depreciation, amortization and accretion | 5 | 5 | 8 | 9 | ||||
Loss on impairment of licenses | 0 | 0 | ||||||
(Gain) loss on asset disposals, net | 0 | 0 | 0 | 0 | ||||
(Gain) loss on sale of business and other exit costs, net | 0 | |||||||
Interest expense | 2 | 27 | 3 | 43 | ||||
Income tax expense (benefit) | 2 | (8) | 1 | (12) | ||||
Adjusted EBITDA | 8 | 1 | 7 | 2 | ||||
Investments in unconsolidated entities | 38 | 38 | 38 | 38 | ||||
Total assets | 436 | 427 | 436 | 427 | ||||
Capital expenditures | 3 | 3 | 3 | 4 | ||||
Corporate, Eliminations and Other | Service | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total operating revenues | 25 | 24 | 48 | 46 | ||||
Cost of goods and services | 17 | 19 | 35 | 35 | ||||
Corporate, Eliminations and Other | Equipment and product sales | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total operating revenues | 41 | 22 | 71 | 45 | ||||
Cost of goods and services | $ 33 | $ 18 | $ 57 | $ 37 | ||||
[1]The consolidated total assets as of June 30, 2022 and December 31, 2021, include assets held by consolidated variable interest entities (VIEs) of $1,299 million and $1,456 million, respectively, which are not available to be used to settle the obligations of TDS. The consolidated total liabilities as of June 30, 2022 and December 31, 2021, include certain liabilities of consolidated VIEs of $21 million 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. |