Telephone and Data Systems (TDS) 10-Q 4 May 23 2023 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information	3 Months Ended
	Mar. 31, 2023 shares
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
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	2023
Document Fiscal Period Focus	Q1
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	105,131,100
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	7,441,500

Consolidated Statement of Opera

Consolidated Statement of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating revenues
Total operating revenues	$ 1,303	$ 1,315
Operating expenses
Selling, general and administrative	439	410
Depreciation, amortization and accretion	232	229
(Gain) loss on asset disposals, net	11	2
(Gain) loss on sale of business and other exit costs, net	0	(1)
Total operating expenses	1,274	1,220
Operating income	29	95
Investment and other income (expense)
Equity in earnings of unconsolidated entities	44	45
Interest and dividend income	5	2
Interest expense	(53)	(33)
Total investment and other income (expense)	(4)	14
Income before income taxes	25	109
Income tax expense	13	37
Net income	12	72
Less: Net income attributable to noncontrolling interests, net of tax	4	11
Net income attributable to TDS shareholders	8	61
TDS Preferred Share dividends	17	17
Net income (loss) attributable to TDS common shareholders	$ (9)	$ 44
Basic weighted average shares outstanding (in shares)	113	115
Basic earnings (loss) per share attributable to TDS common shareholders	$ (0.08)	$ 0.38
Diluted weighted average shares outstanding (in shares)	113	116
Diluted earnings (loss) per share attributable to TDS common shareholders	$ (0.08)	$ 0.37
Service
Operating revenues
Total operating revenues	$ 1,043	$ 1,062
Operating expenses
Cost of goods and services	305	298
Equipment and product sales
Operating revenues
Total operating revenues	260	253
Operating expenses
Cost of goods and services	$ 287	$ 282

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 12	$ 72
Change related to retirement plan Amounts included in net periodic benefit cost for the period
Amortization of prior service cost and unrecognized net gain	0	1
Comprehensive income	12	73
Less: Net income attributable to noncontrolling interests, net of tax	4	11
Comprehensive income attributable to TDS shareholders	$ 8	$ 62

Consolidated Statement of Cash

Consolidated Statement of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities
Net income	$ 12	$ 72
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities
Depreciation, amortization and accretion	232	229
Bad debts expense	27	26
Stock-based compensation expense	3	12
Deferred income taxes, net	9	29
Equity in earnings of unconsolidated entities	(44)	(45)
Distributions from unconsolidated entities	20	19
(Gain) loss on asset disposals, net	11	2
(Gain) loss on sale of business and other exit costs, net	0	(1)
Other operating activities	2	0
Changes in assets and liabilities from operations
Accounts receivable	22	14
Equipment installment plans receivable	1	0
Inventory	0	(5)
Accounts payable	(162)	(60)
Customer deposits and deferred revenues	(9)	9
Accrued taxes	1	129
Accrued interest	9	10
Other assets and liabilities	(88)	(59)
Net cash provided by operating activities	46	381
Cash flows from investing activities
Cash paid for additions to property, plant and equipment	(331)	(271)
Cash paid for intangible assets	(5)	(568)
Other investing activities	2	(9)
Net cash used in investing activities	(334)	(848)
Cash flows from financing activities
Issuance of long-term debt	316	776
Repayment of long-term debt	(5)	(127)
Issuance of short-term debt	0	60
Repayment of short-term debt	(60)	0
TDS Common Shares reissued for benefit plans, net of tax payments	(2)	(2)
Repurchase of TDS Common Shares	(3)	(4)
Repurchase of UScellular Common Shares	0	(10)
Dividends paid to TDS shareholders	(38)	(38)
Distributions to noncontrolling interests	(1)	(1)
Cash paid for software license agreements	(8)	(2)
Other financing activities	(1)	(3)
Net cash provided by financing activities	198	649
Net increase (decrease) in cash, cash equivalents and restricted cash	(90)	182
Cash, cash equivalents and restricted cash
Beginning of period	399	414
End of period	$ 309	$ 596

Consolidated Balance Sheet

Consolidated Balance Sheet - USD ($) $ in Millions		Mar. 31, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents		$ 259	$ 360
Accounts receivable
Customers and agents, less allowances of $72 and $74, respectively		1,036	1,069
Other, less allowances of $3 and $3, respectively		95	112
Inventory, net		269	268
Prepaid expenses		113	102
Income taxes receivable		60	59
Other current assets		71	58
Total current assets		1,903	2,028
Assets held for sale		18	26
Licenses		4,702	4,699
Goodwill		547	547
Other intangible assets, net of accumulated amortization of $117 and $112, respectively		199	204
Investments in unconsolidated entities		519	495
Property, plant and equipment
In service and under construction		15,183	14,971
Less: Accumulated depreciation and amortization		10,311	10,211
Property, plant and equipment, net		4,872	4,760
Operating lease right-of-use assets		986	995
Other assets and deferred charges		793	796
Total assets	[1]	14,539	14,550
Current liabilities
Current portion of long-term debt		20	19
Accounts payable		344	506
Customer deposits and deferred revenues		277	285
Accrued interest		21	12
Accrued taxes		45	46
Accrued compensation		78	144
Short-term operating lease liabilities		145	146
Other current liabilities		295	356
Total current liabilities		1,225	1,514
Deferred liabilities and credits
Deferred income tax liability, net		974	969
Long-term operating lease liabilities		900	908
Other deferred liabilities and credits		813	813
Long-term debt, net		4,040	3,731
Commitments and contingencies
Noncontrolling interests with redemption features		12	12
TDS shareholders’ equity
Series A Common and Common Shares Authorized 290 shares (25 Series A Common and 265 Common Shares) Issued 133 shares (7 Series A Common and 126 Common Shares) Outstanding 113 shares (7 Series A Common and 106 Common Shares) and 112 shares (7 Series A Common and 105 Common Shares), respectively Par Value ($.01 per share)		1	1
Capital in excess of par value		2,552	2,551
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, 21 Common Shares		(474)	(481)
Accumulated other comprehensive income		5	5
Retained earnings		2,658	2,699
Total TDS shareholders' equity		5,816	5,849
Noncontrolling interests		759	754
Total equity		6,575	6,603
Total liabilities and equity	[1]	$ 14,539	$ 14,550
[1]The consolidated total assets as of March 31, 2023 and December 31, 2022, include assets held by consolidated variable interest entities (VIEs) of $1,488 million and $1,236 million, respectively, which are not available to be used to settle the obligations of TDS. The consolidated total liabilities as of March 31, 2023 and December 31, 2022, include certain liabilities of consolidated VIEs of $25 million and $23 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of TDS. See Note 9 — Variable Interest Entities for additional information.

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions		Mar. 31, 2023	Dec. 31, 2022
Accounts receivable
Customer and agent allowances		$ 72	$ 74
Other allowances		3	3
Other intangible assets
Other intangible assets accumulated amortization		$ 117	$ 112
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)		113,000,000	112,000,000
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]	$ 14,539	$ 14,550
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)		106,000,000	105,000,000
Treasury shares (in shares)		21,000,000	21,000,000
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		$ 2,025	$ 2,041
Total liabilities		97	156
Consolidated Variable Interest Entity | No recourse
Variable Interest Entities VIEs
Total liabilities		25	23
Consolidated Variable Interest Entity | Assets held
Variable Interest Entities VIEs
Total assets		$ 1,488	$ 1,236
[1]The consolidated total assets as of March 31, 2023 and December 31, 2022, include assets held by consolidated variable interest entities (VIEs) of $1,488 million and $1,236 million, respectively, which are not available to be used to settle the obligations of TDS. The consolidated total liabilities as of March 31, 2023 and December 31, 2022, include certain liabilities of consolidated VIEs of $25 million and $23 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of TDS. See Note 9 — Variable Interest Entities for additional information.

Consolidated 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, 2021	$ 6,734	$ 1	$ 2,496	$ 1,074	$ (461)	$ 5	$ 2,812	$ 5,927	$ 807
Net income attributable to TDS shareholders	61						61	61
Net income attributable to noncontrolling interests classified as equity	10							0	10
Other comprehensive income	1					1		1
TDS Common and Series A Common share dividends	(21)						(21)	(21)
TDS Preferred share dividends	(17)						(17)	(17)
Repurchase of Common Shares	(4)				(4)			(4)
Incentive and compensation plans	3		5		9		(11)	3
Adjust investment in subsidiaries for repurchases, issuances and other compensation plans	(5)		10					10	(15)
Distributions to noncontrolling interests	(1)							0	(1)
Ending balance at Mar. 31, 2022	6,761	1	2,511	1,074	(456)	6	2,824	5,960	801
Beginning balance at Dec. 31, 2022	6,603	1	2,551	1,074	(481)	5	2,699	5,849	754
Net income attributable to TDS shareholders	8						8	8
Net income attributable to noncontrolling interests classified as equity	3							0	3
TDS Common and Series A Common share dividends	(21)						(21)	(21)
TDS Preferred share dividends	(17)						(17)	(17)
Repurchase of Common Shares	(3)				(3)			(3)
Dividend reinvestment plan	1				1			1
Incentive and compensation plans	2		4		9		(11)	2
Adjust investment in subsidiaries for repurchases, issuances and other compensation plans	0		(3)					(3)	3
Distributions to noncontrolling interests	(1)							0	(1)
Ending balance at Mar. 31, 2023	$ 6,575	$ 1	$ 2,552	$ 1,074	$ (474)	$ 5	$ 2,658	$ 5,816	$ 759

Consolidated Statement of Cha_2

Consolidated Statement of Changes in Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
TDS Common and Series A Common Share dividends (in dollars per share)	$ 0.185	$ 0.18
Series VV Preferred Shares
TDS Preferred share dividends (in dollars per share)	375	375
Series UU Preferred Shares
TDS Preferred share dividends (in dollars per share)	$ 414	$ 414

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2023
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’ 84%-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 March 31, 2023, 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 11 — 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, 2022. 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 March 31, 2023 and December 31, 2022 and its results of operations, comprehensive income, cash flows and changes in equity for the three months ended March 31, 2023 and 2022. 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, 2022. 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 acquisitions of software licenses that are not reflected as Cash paid for additions to property, plant and equipment were $5 million and $3 million for the three months ended March 31, 2023 and 2022, respectively. 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 8 — 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. March 31, 2023 December 31, 2022 (Dollars in millions) Cash and cash equivalents $ 259 $ 360 Restricted cash included in Other current assets 50 39 Cash, cash equivalents and restricted cash in the statement of cash flows $ 309 $ 399

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2023
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 recognized at a point in time. Three Months Ended March 31, 2023 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Revenues from contracts with customers: Type of service: Retail service $ 691 $ — $ — $ 691 Inbound roaming 9 — — 9 Residential — 169 — 169 Commercial — 41 — 41 Wholesale — 42 — 42 Other service 42 — 18 60 Service revenues from contracts with customers 742 252 18 1,012 Equipment and product sales 219 — 41 260 Total revenues from contracts with customers 961 252 59 1,272 Operating lease income 25 1 5 31 Total operating revenues $ 986 $ 253 $ 64 $ 1,303 Three Months Ended March 31, 2022 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Revenues from contracts with customers: Type of service: Retail service $ 702 $ — $ — $ 702 Inbound roaming 21 — — 21 Residential — 163 — 163 Commercial — 44 — 44 Wholesale — 44 — 44 Other service 42 — 17 59 Service revenues from contracts with customers 765 250 17 1,033 Equipment and product sales 223 — 30 253 Total revenues from contracts with customers 988 251 47 1,286 Operating lease income 22 1 6 29 Total operating revenues $ 1,010 $ 251 $ 54 $ 1,315 Numbers may not foot due to rounding. 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. March 31, 2023 December 31, 2022 (Dollars in millions) Contract assets $ 12 $ 12 Contract liabilities $ 390 $ 395 Revenue recognized related to contract liabilities existing at January 1, 2023 was $156 million for the three months ended March 31, 2023. 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 March 31, 2023 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 2023 $ 342 2024 199 Thereafter 145 Total $ 686 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: March 31, 2023 December 31, 2022 (Dollars in millions) Costs to obtain contracts Sales commissions $ 143 $ 144 Fulfillment costs Installation costs 7 8 Total contract cost assets $ 150 $ 152 Amortization of contract cost assets was $28 million and $29 million for the three months ended March 31, 2023, and 2022, respectively, and was included in Selling, general and administrative expenses and Cost of services expenses.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 3 Fair Value Measurements As of March 31, 2023 and December 31, 2022, 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 March 31, 2023 December 31, 2022 Book Value Fair Value Book Value Fair Value (Dollars in millions) Long-term debt Retail 2 $ 1,500 $ 1,062 $ 1,500 $ 899 Institutional 2 536 387 536 395 Other 2 2,062 2,062 1,753 1,753 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, export credit financing agreements and in 2023, revolving credit 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 3.52% to 8.55% and 3.52% to 8.28% at March 31, 2023 and December 31, 2022, 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	3 Months Ended
	Mar. 31, 2023
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. March 31, 2023 December 31, 2022 (Dollars in millions) Equipment installment plan receivables, gross $ 1,184 $ 1,211 Allowance for credit losses (94) (96) Equipment installment plan receivables, net $ 1,090 $ 1,115 Net balance presented in the Consolidated Balance Sheet as: Accounts receivable — Customers and agents (Current portion) $ 623 $ 646 Other assets and deferred charges (Non-current portion) 467 469 Equipment installment plan receivables, net $ 1,090 $ 1,115 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: March 31, 2023 December 31, 2022 Lowest Risk Lower Risk Slight Risk Higher Risk Total Lowest Risk Lower Risk Slight Risk Higher Risk Total (Dollars in millions) Unbilled $ 997 $ 95 $ 23 $ 6 $ 1,121 $ 1,016 $ 98 $ 22 $ 5 $ 1,141 Billed — current 38 4 1 — 43 41 5 2 — 48 Billed — past due 11 6 2 1 20 13 6 2 1 22 Total $ 1,046 $ 105 $ 26 $ 7 $ 1,184 $ 1,070 $ 109 $ 26 $ 6 $ 1,211 The balance of the equipment installment plan receivables as of March 31, 2023 on a gross basis by year of origination were as follows: 2020 2021 2022 2023 Total (Dollars in millions) Lowest Risk $ 16 $ 229 $ 639 $ 162 $ 1,046 Lower Risk 1 17 65 22 105 Slight Risk — 2 14 10 26 Higher Risk — 1 4 2 7 Total $ 17 $ 249 $ 722 $ 196 $ 1,184 The write-offs, net of recoveries for the three months ended March 31, 2023 on a gross basis by year of origination were as follows: 2021 2022 2023 Total (Dollars in millions) Write-offs, net of recoveries $ 6 $ 14 $ — $ 20 Activity for the three months ended March 31, 2023 and 2022, in the allowance for credit losses for equipment installment plan receivables was as follows: March 31, 2023 March 31, 2022 (Dollars in millions) Allowance for credit losses, beginning of period $ 96 $ 72 Bad debts expense 18 17 Write-offs, net of recoveries (20) (16) Allowance for credit losses, end of period $ 94 $ 73

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Earnings Per Share	Note 5 Earnings Per Share Basic earnings (loss) per share attributable to TDS common shareholders is computed by dividing Net income (loss) attributable to TDS common shareholders by the weighted average number of Common Shares outstanding during the period. Diluted earnings (loss) per share attributable to TDS common shareholders is computed by dividing Net income (loss) 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 2023 2022 (Dollars and shares in millions, except per share amounts) Net income (loss) attributable to TDS common shareholders used in basic earnings (loss) per share $ (9) $ 44 Adjustments to compute diluted earnings: Noncontrolling interest adjustment — (1) Net income (loss) attributable to TDS common shareholders used in diluted earnings (loss) per share $ (9) $ 43 Weighted average number of shares used in basic earnings (loss) per share: Common Shares 106 108 Series A Common Shares 7 7 Total 113 115 Effects of dilutive securities — 1 Weighted average number of shares used in diluted earnings (loss) per share 113 116 Basic earnings (loss) per share attributable to TDS common shareholders $ (0.08) $ 0.38 Diluted earnings (loss) per share attributable to TDS common shareholders $ (0.08) $ 0.37 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 months ended March 31, 2023, and 2022.

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Note 6 Intangible AssetsIn 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 $185 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, and are adjusted as necessary as the estimated obligation changes. UScellular paid $36 million, $8 million and $3 million related to the additional costs in October 2021, September 2022 and March 2023, respectively. At March 31, 2023, the remaining estimated payments of approximately $139 million are included in Other current liabilities, and at December 31, 2022, the remaining estimated payments of approximately $133 million and $8 million are included in Other current liabilities and Other deferred liabilities and credits, respectively, in the Consolidated Balance Sheet. 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.

Investments In Unconsolidated E

Investments In Unconsolidated Entities	3 Months Ended
	Mar. 31, 2023
Equity Method Investments and Joint Ventures [Abstract]
Investments in Unconsolidated Entities	Note 7 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. March 31, 2023 December 31, 2022 (Dollars in millions) Equity method investments $ 491 $ 468 Measurement alternative method investments 19 18 Investments recorded using the net asset value practical expedient 9 9 Total investments in unconsolidated entities $ 519 $ 495 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 2023 2022 (Dollars in millions) Revenues $ 1,809 $ 1,816 Operating expenses 1,366 1,377 Operating income 443 439 Other income (expense), net (16) (4) Net income $ 427 $ 435

Debt

Debt	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Debt	Note 8 Debt Revolving Credit Agreements TDS has a revolving credit agreement with maximum borrowing capacity of $400 million. Amounts under the agreement may be borrowed, repaid and reborrowed from time to time until maturity in July 2026. During the three months ended March 31, 2023, TDS borrowed $100 million under its revolving credit agreement. Borrowings under the TDS revolving credit agreement bear interest at a rate of Secured Overnight Financing Rate (SOFR) plus 1.60%. As of March 31, 2023, the outstanding borrowings under the agreement were $101 million, including letters of credit, and the unused borrowing capacity under the agreement was $299 million. In April 2023, TDS repaid $50 million under the agreement. Export Credit Financing Agreement TDS has a $150 million term loan credit facility with Export Development Canada to finance (or refinance) imported equipment, including equipment purchased prior to entering the term loan facility agreement. During the three months ended March 31, 2023, TDS borrowed $100 million under its export credit financing agreement. Borrowings bear interest at a rate of SOFR plus 1.60% and are due and payable in December 2027. As of March 31, 2023, the outstanding borrowings were $150 million, which is the full amount available under the agreement. Receivables Securitization Agreement UScellular, through its subsidiaries, has a receivables securitization agreement to permit securitized borrowings using its equipment installment plan receivables. Amounts under the agreement may be borrowed, repaid and reborrowed from time to time until March 2024. Unless the agreement is amended to extend the maturity date, repayments based on receivable collections commence in April 2024. The outstanding borrowings bear interest at a rate of the lender's cost of funds (which has historically tracked closely to SOFR) plus 0.90%. During the three months ended March 31, 2023, UScellular borrowed $115 million under its receivables securitization agreement. As of March 31, 2023, the outstanding borrowings under the agreement were $390 million and the unused borrowing capacity was $60 million, subject to sufficient collateral to satisfy the asset borrowing base provisions of the agreement. As of March 31, 2023, the USCC Master Note Trust held $598 million of assets available to be pledged as collateral for the receivables securitization agreement. In April 2023, UScellular repaid $75 million under the agreement. Repurchase Agreement UScellular, through a subsidiary (the repo subsidiary), has 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. In January 2023, UScellular amended the repurchase agreement to extend the expiration date to January 2024. The outstanding borrowings bear interest at a rate of the lender's cost of funds (which has historically tracked closely to SOFR) plus 1.35%. There were no significant changes to other terms of the repurchase agreement. Outstanding borrowings are included in Other current liabilities in the Consolidated Balance Sheet. During the three months ended March 31, 2023, the repo subsidiary repaid $60 million under the repurchase agreement. As of March 31, 2023, there were no outstanding borrowings under the agreement and the unused borrowing capacity was $200 million. As of March 31, 2023, UScellular held $365 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. Financial Covenants The TDS and UScellular revolving credit agreements, term loan agreements, export credit financing agreements and the UScellular receivables securitization agreement require TDS or UScellular, as applicable, to comply with certain affirmative and negative covenants, which include certain financial covenants. In March 2023, the agreements were amended and TDS and UScellular are required to maintain the Consolidated Leverage Ratio as of the end of any fiscal quarter at a level not to exceed the following: 4.25 to 1.00 from January 1, 2023 through March 31, 2024; 4.00 to 1.00 from April 1, 2024 through March 31, 2025; 3.75 to 1.00 from April 1, 2025 and thereafter. TDS and UScellular are also required to maintain the Consolidated Interest Coverage Ratio at a level not lower than 3.00 to 1.00 as of the end of any fiscal quarter. TDS and UScellular believe they were in compliance as of March 31, 2023 with all such financial covenants.

Variable Interest Entities

Variable Interest Entities	3 Months Ended
	Mar. 31, 2023
Variable Interest Entities [Abstract]
Variable Interest Entities	Note 9 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, 2022. 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. March 31, 2023 December 31, 2022 (Dollars in millions) Assets Cash and cash equivalents $ 25 $ 29 Accounts receivable 679 700 Inventory, net 5 4 Other current assets 47 36 Licenses 638 638 Property, plant and equipment, net 115 115 Operating lease right-of-use assets 40 41 Other assets and deferred charges 476 478 Total assets $ 2,025 $ 2,041 Liabilities Current liabilities $ 33 $ 92 Long-term operating lease liabilities 36 36 Other deferred liabilities and credits 28 28 Total liabilities 1 $ 97 $ 156 1 Total liabilities does not include amounts borrowed under the receivables securitization agreement. See Note 8 – 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 March 31, 2023 and December 31, 2022, 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 $207 million and $21 million, during the three months ended March 31, 2023 and 2022, respectively, of which $193 million in 2023 and $9 million in 2022, 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 (loss) attributable to noncontrolling interests, net of tax, in TDS’ Consolidated Statement of Operations.

Noncontrolling Interests

Noncontrolling Interests	3 Months Ended
	Mar. 31, 2023
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 10 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: Three Months Ended March 31, 2023 2022 (Dollars in millions) Net income attributable to TDS shareholders $ 8 $ 61 Transfers (to) from noncontrolling interests Change in TDS' Capital in excess of par value from UScellular's issuance of UScellular shares (3) (1) Change in TDS' Capital in excess of par value from UScellular's repurchases of UScellular shares — 7 Net transfers (to) from noncontrolling interests (3) 6 Net income attributable to TDS shareholders after transfers (to) from noncontrolling interests $ 5 $ 67

Business Segment Information

Business Segment Information	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Business Segment Information	Note 11 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 month periods ended, or as of March 31, 2023 and 2022, is as follows. See Note 1 — Basis of Presentation for additional information. Three Months Ended or as of March 31, 2023 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 767 $ 253 $ 23 $ 1,043 Equipment and product sales 219 — 41 260 Total operating revenues 986 253 64 1,303 Cost of services (excluding Depreciation, amortization and accretion reported below) 182 104 19 305 Cost of equipment and products 253 — 34 287 Selling, general and administrative 345 80 14 439 Depreciation, amortization and accretion 170 59 3 232 (Gain) loss on asset disposals, net 10 1 — 11 Operating income (loss) 26 8 (5) 29 Equity in earnings of unconsolidated entities 44 — — 44 Interest and dividend income 2 1 2 5 Interest expense (47) 2 (8) (53) Income (loss) before income taxes 25 11 (11) 25 Income tax expense (benefit) 11 3 (1) 13 Net income (loss) 14 8 (10) 12 Add back: Depreciation, amortization and accretion 170 59 3 232 (Gain) loss on asset disposals, net 10 1 — 11 Interest expense 47 (2) 8 53 Income tax expense (benefit) 11 3 (1) 13 Adjusted EBITDA 1 $ 252 $ 69 $ — $ 321 Investments in unconsolidated entities $ 477 $ 4 $ 38 $ 519 Total assets $ 10,997 $ 3,141 $ 401 $ 14,539 Capital expenditures $ 208 $ 130 $ 5 $ 343 Three Months Ended or as of March 31, 2022 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 787 $ 251 $ 24 $ 1,062 Equipment and product sales 223 — 30 253 Total operating revenues 1,010 251 54 1,315 Cost of services (excluding Depreciation, amortization and accretion reported below) 185 96 17 298 Cost of equipment and products 257 — 25 282 Selling, general and administrative 325 72 13 410 Depreciation, amortization and accretion 171 54 4 229 (Gain) loss on asset disposals, net 2 — — 2 (Gain) loss on sale of business and other exit costs, net (1) — — (1) Operating income (loss) 71 28 (4) 95 Equity in earnings of unconsolidated entities 45 — — 45 Interest and dividend income 1 — 1 2 Interest expense (33) 2 (2) (33) Income (loss) before income taxes 84 31 (6) 109 Income tax expense (benefit) 32 8 (3) 37 Net income (loss) 52 23 (3) 72 Add back: Depreciation, amortization and accretion 171 54 4 229 (Gain) loss on asset disposals, net 2 — — 2 (Gain) loss on sale of business and other exit costs, net (1) — — (1) Interest expense 33 (2) 2 33 Income tax expense (benefit) 32 8 (3) 37 Adjusted EBITDA 1 $ 289 $ 83 $ — $ 372 Investments in unconsolidated entities $ 465 $ 4 $ 37 $ 506 Total assets $ 10,875 $ 2,706 $ 543 $ 14,124 Capital expenditures $ 137 $ 105 $ — $ 242 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 the 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)	3 Months Ended
	Mar. 31, 2023
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’ 84%-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 March 31, 2023, 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 11 — Business Segment Information for summary financial information on each business segment.
Basis of Accounting	The unaudited consolidated financial statements included herein have been prepared by TDS pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and disclosures normally included in 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, 2022. 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 March 31, 2023 and December 31, 2022 and its results of operations, comprehensive income, cash flows and changes in equity for the three months ended March 31, 2023 and 2022. 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, 2022.
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, 2022.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	3 Months Ended
	Mar. 31, 2023
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. March 31, 2023 December 31, 2022 (Dollars in millions) Cash and cash equivalents $ 259 $ 360 Restricted cash included in Other current assets 50 39 Cash, cash equivalents and restricted cash in the statement of cash flows $ 309 $ 399

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2023
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 recognized at a point in time. Three Months Ended March 31, 2023 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Revenues from contracts with customers: Type of service: Retail service $ 691 $ — $ — $ 691 Inbound roaming 9 — — 9 Residential — 169 — 169 Commercial — 41 — 41 Wholesale — 42 — 42 Other service 42 — 18 60 Service revenues from contracts with customers 742 252 18 1,012 Equipment and product sales 219 — 41 260 Total revenues from contracts with customers 961 252 59 1,272 Operating lease income 25 1 5 31 Total operating revenues $ 986 $ 253 $ 64 $ 1,303 Three Months Ended March 31, 2022 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Revenues from contracts with customers: Type of service: Retail service $ 702 $ — $ — $ 702 Inbound roaming 21 — — 21 Residential — 163 — 163 Commercial — 44 — 44 Wholesale — 44 — 44 Other service 42 — 17 59 Service revenues from contracts with customers 765 250 17 1,033 Equipment and product sales 223 — 30 253 Total revenues from contracts with customers 988 251 47 1,286 Operating lease income 22 1 6 29 Total operating revenues $ 1,010 $ 251 $ 54 $ 1,315 Numbers may not foot due to rounding.
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. March 31, 2023 December 31, 2022 (Dollars in millions) Contract assets $ 12 $ 12 Contract liabilities $ 390 $ 395
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 March 31, 2023 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 2023 $ 342 2024 199 Thereafter 145 Total $ 686
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: March 31, 2023 December 31, 2022 (Dollars in millions) Costs to obtain contracts Sales commissions $ 143 $ 144 Fulfillment costs Installation costs 7 8 Total contract cost assets $ 150 $ 152

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023 December 31, 2022 Book Value Fair Value Book Value Fair Value (Dollars in millions) Long-term debt Retail 2 $ 1,500 $ 1,062 $ 1,500 $ 899 Institutional 2 536 387 536 395 Other 2 2,062 2,062 1,753 1,753

Equipment Installment Plans (Ta

Equipment Installment Plans (Table)	3 Months Ended
	Mar. 31, 2023
Receivables [Abstract]
Equipment installment plan receivables	The following table summarizes equipment installment plan receivables. March 31, 2023 December 31, 2022 (Dollars in millions) Equipment installment plan receivables, gross $ 1,184 $ 1,211 Allowance for credit losses (94) (96) Equipment installment plan receivables, net $ 1,090 $ 1,115 Net balance presented in the Consolidated Balance Sheet as: Accounts receivable — Customers and agents (Current portion) $ 623 $ 646 Other assets and deferred charges (Non-current portion) 467 469 Equipment installment plan receivables, net $ 1,090 $ 1,115
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: March 31, 2023 December 31, 2022 Lowest Risk Lower Risk Slight Risk Higher Risk Total Lowest Risk Lower Risk Slight Risk Higher Risk Total (Dollars in millions) Unbilled $ 997 $ 95 $ 23 $ 6 $ 1,121 $ 1,016 $ 98 $ 22 $ 5 $ 1,141 Billed — current 38 4 1 — 43 41 5 2 — 48 Billed — past due 11 6 2 1 20 13 6 2 1 22 Total $ 1,046 $ 105 $ 26 $ 7 $ 1,184 $ 1,070 $ 109 $ 26 $ 6 $ 1,211 The balance of the equipment installment plan receivables as of March 31, 2023 on a gross basis by year of origination were as follows: 2020 2021 2022 2023 Total (Dollars in millions) Lowest Risk $ 16 $ 229 $ 639 $ 162 $ 1,046 Lower Risk 1 17 65 22 105 Slight Risk — 2 14 10 26 Higher Risk — 1 4 2 7 Total $ 17 $ 249 $ 722 $ 196 $ 1,184
Equipment installment plans allowance for credit losses	The write-offs, net of recoveries for the three months ended March 31, 2023 on a gross basis by year of origination were as follows: 2021 2022 2023 Total (Dollars in millions) Write-offs, net of recoveries $ 6 $ 14 $ — $ 20 Activity for the three months ended March 31, 2023 and 2022, in the allowance for credit losses for equipment installment plan receivables was as follows: March 31, 2023 March 31, 2022 (Dollars in millions) Allowance for credit losses, beginning of period $ 96 $ 72 Bad debts expense 18 17 Write-offs, net of recoveries (20) (16) Allowance for credit losses, end of period $ 94 $ 73

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2023
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 2023 2022 (Dollars and shares in millions, except per share amounts) Net income (loss) attributable to TDS common shareholders used in basic earnings (loss) per share $ (9) $ 44 Adjustments to compute diluted earnings: Noncontrolling interest adjustment — (1) Net income (loss) attributable to TDS common shareholders used in diluted earnings (loss) per share $ (9) $ 43 Weighted average number of shares used in basic earnings (loss) per share: Common Shares 106 108 Series A Common Shares 7 7 Total 113 115 Effects of dilutive securities — 1 Weighted average number of shares used in diluted earnings (loss) per share 113 116 Basic earnings (loss) per share attributable to TDS common shareholders $ (0.08) $ 0.38 Diluted earnings (loss) per share attributable to TDS common shareholders $ (0.08) $ 0.37

Investments in Unconsolidated_2

Investments in Unconsolidated Entities (Tables)	3 Months Ended
	Mar. 31, 2023
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. March 31, 2023 December 31, 2022 (Dollars in millions) Equity method investments $ 491 $ 468 Measurement alternative method investments 19 18 Investments recorded using the net asset value practical expedient 9 9 Total investments in unconsolidated entities $ 519 $ 495 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 2023 2022 (Dollars in millions) Revenues $ 1,809 $ 1,816 Operating expenses 1,366 1,377 Operating income 443 439 Other income (expense), net (16) (4) Net income $ 427 $ 435

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	3 Months Ended
	Mar. 31, 2023
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. March 31, 2023 December 31, 2022 (Dollars in millions) Assets Cash and cash equivalents $ 25 $ 29 Accounts receivable 679 700 Inventory, net 5 4 Other current assets 47 36 Licenses 638 638 Property, plant and equipment, net 115 115 Operating lease right-of-use assets 40 41 Other assets and deferred charges 476 478 Total assets $ 2,025 $ 2,041 Liabilities Current liabilities $ 33 $ 92 Long-term operating lease liabilities 36 36 Other deferred liabilities and credits 28 28 Total liabilities 1 $ 97 $ 156 1 Total liabilities does not include amounts borrowed under the receivables securitization agreement. See Note 8 – Debt for additional information.

Noncontrolling Interests (Table

Noncontrolling Interests (Tables)	3 Months Ended
	Mar. 31, 2023
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: Three Months Ended March 31, 2023 2022 (Dollars in millions) Net income attributable to TDS shareholders $ 8 $ 61 Transfers (to) from noncontrolling interests Change in TDS' Capital in excess of par value from UScellular's issuance of UScellular shares (3) (1) Change in TDS' Capital in excess of par value from UScellular's repurchases of UScellular shares — 7 Net transfers (to) from noncontrolling interests (3) 6 Net income attributable to TDS shareholders after transfers (to) from noncontrolling interests $ 5 $ 67

Business Segment Information (T

Business Segment Information (Tables)	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Business segment information	Financial data for TDS’ reportable segments for the three month periods ended, or as of March 31, 2023 and 2022, is as follows. See Note 1 — Basis of Presentation for additional information. Three Months Ended or as of March 31, 2023 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 767 $ 253 $ 23 $ 1,043 Equipment and product sales 219 — 41 260 Total operating revenues 986 253 64 1,303 Cost of services (excluding Depreciation, amortization and accretion reported below) 182 104 19 305 Cost of equipment and products 253 — 34 287 Selling, general and administrative 345 80 14 439 Depreciation, amortization and accretion 170 59 3 232 (Gain) loss on asset disposals, net 10 1 — 11 Operating income (loss) 26 8 (5) 29 Equity in earnings of unconsolidated entities 44 — — 44 Interest and dividend income 2 1 2 5 Interest expense (47) 2 (8) (53) Income (loss) before income taxes 25 11 (11) 25 Income tax expense (benefit) 11 3 (1) 13 Net income (loss) 14 8 (10) 12 Add back: Depreciation, amortization and accretion 170 59 3 232 (Gain) loss on asset disposals, net 10 1 — 11 Interest expense 47 (2) 8 53 Income tax expense (benefit) 11 3 (1) 13 Adjusted EBITDA 1 $ 252 $ 69 $ — $ 321 Investments in unconsolidated entities $ 477 $ 4 $ 38 $ 519 Total assets $ 10,997 $ 3,141 $ 401 $ 14,539 Capital expenditures $ 208 $ 130 $ 5 $ 343 Three Months Ended or as of March 31, 2022 UScellular TDS Telecom Corporate, Eliminations and Other Total (Dollars in millions) Operating revenues Service $ 787 $ 251 $ 24 $ 1,062 Equipment and product sales 223 — 30 253 Total operating revenues 1,010 251 54 1,315 Cost of services (excluding Depreciation, amortization and accretion reported below) 185 96 17 298 Cost of equipment and products 257 — 25 282 Selling, general and administrative 325 72 13 410 Depreciation, amortization and accretion 171 54 4 229 (Gain) loss on asset disposals, net 2 — — 2 (Gain) loss on sale of business and other exit costs, net (1) — — (1) Operating income (loss) 71 28 (4) 95 Equity in earnings of unconsolidated entities 45 — — 45 Interest and dividend income 1 — 1 2 Interest expense (33) 2 (2) (33) Income (loss) before income taxes 84 31 (6) 109 Income tax expense (benefit) 32 8 (3) 37 Net income (loss) 52 23 (3) 72 Add back: Depreciation, amortization and accretion 171 54 4 229 (Gain) loss on asset disposals, net 2 — — 2 (Gain) loss on sale of business and other exit costs, net (1) — — (1) Interest expense 33 (2) 2 33 Income tax expense (benefit) 32 8 (3) 37 Adjusted EBITDA 1 $ 289 $ 83 $ — $ 372 Investments in unconsolidated entities $ 465 $ 4 $ 37 $ 506 Total assets $ 10,875 $ 2,706 $ 543 $ 14,124 Capital expenditures $ 137 $ 105 $ — $ 242 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 the 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) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Basis of Presentation [Line Items]
Noncash software license acquisitions	$ 5	$ 3
UScellular
Basis of Presentation [Line Items]
TDS ownership of UScellular	84%

Basis of Presentation - Cash, C

Basis of Presentation - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 259	$ 360
Restricted cash included in Other current assets	50	39
Cash, cash equivalents and restricted cash in the statement of cash flows	$ 309	$ 399	$ 596	$ 414

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of revenue
Revenue from contracts with customers	$ 1,272	$ 1,286
Operating lease income	31	29
Total operating revenues	1,303	1,315
Transferred over time
Disaggregation of revenue
Revenue from contracts with customers	1,012	1,033
Transferred over time | Retail service
Disaggregation of revenue
Revenue from contracts with customers	691	702
Transferred over time | Inbound roaming
Disaggregation of revenue
Revenue from contracts with customers	9	21
Transferred over time | Residential
Disaggregation of revenue
Revenue from contracts with customers	169	163
Transferred over time | Commercial
Disaggregation of revenue
Revenue from contracts with customers	41	44
Transferred over time | Wholesale
Disaggregation of revenue
Revenue from contracts with customers	42	44
Transferred over time | Other service
Disaggregation of revenue
Revenue from contracts with customers	60	59
Transferred at point in time | Equipment and product sales
Disaggregation of revenue
Revenue from contracts with customers	260	253
UScellular
Disaggregation of revenue
Revenue from contracts with customers	961	988
Operating lease income	25	22
Total operating revenues	986	1,010
UScellular | Transferred over time
Disaggregation of revenue
Revenue from contracts with customers	742	765
UScellular | Transferred over time | Retail service
Disaggregation of revenue
Revenue from contracts with customers	691	702
UScellular | Transferred over time | Inbound roaming
Disaggregation of revenue
Revenue from contracts with customers	9	21
UScellular | Transferred over time | Residential
Disaggregation of revenue
Revenue from contracts with customers	0	0
UScellular | Transferred over time | Commercial
Disaggregation of revenue
Revenue from contracts with customers	0	0
UScellular | Transferred over time | Wholesale
Disaggregation of revenue
Revenue from contracts with customers	0	0
UScellular | Transferred over time | Other service
Disaggregation of revenue
Revenue from contracts with customers	42	42
UScellular | Transferred at point in time | Equipment and product sales
Disaggregation of revenue
Revenue from contracts with customers	219	223
TDS Telecom
Disaggregation of revenue
Revenue from contracts with customers	252	251
Operating lease income	1	1
Total operating revenues	253	251
TDS Telecom | Transferred over time
Disaggregation of revenue
Revenue from contracts with customers	252	250
TDS Telecom | Transferred over time | Retail service
Disaggregation of revenue
Revenue from contracts with customers	0	0
TDS Telecom | Transferred over time | Inbound roaming
Disaggregation of revenue
Revenue from contracts with customers	0	0
TDS Telecom | Transferred over time | Residential
Disaggregation of revenue
Revenue from contracts with customers	169	163
TDS Telecom | Transferred over time | Commercial
Disaggregation of revenue
Revenue from contracts with customers	41	44
TDS Telecom | Transferred over time | Wholesale
Disaggregation of revenue
Revenue from contracts with customers	42	44
TDS Telecom | Transferred over time | Other service
Disaggregation of revenue
Revenue from contracts with customers	0	0
TDS Telecom | Transferred at point in time | Equipment and product sales
Disaggregation of revenue
Revenue from contracts with customers	0	0
Corporate, Eliminations and Other
Disaggregation of revenue
Revenue from contracts with customers	59	47
Operating lease income	5	6
Total operating revenues	64	54
Corporate, Eliminations and Other | Transferred over time
Disaggregation of revenue
Revenue from contracts with customers	18	17
Corporate, Eliminations and Other | Transferred over time | Retail service
Disaggregation of revenue
Revenue from contracts with customers	0	0
Corporate, Eliminations and Other | Transferred over time | Inbound roaming
Disaggregation of revenue
Revenue from contracts with customers	0	0
Corporate, Eliminations and Other | Transferred over time | Residential
Disaggregation of revenue
Revenue from contracts with customers	0	0
Corporate, Eliminations and Other | Transferred over time | Commercial
Disaggregation of revenue
Revenue from contracts with customers	0	0
Corporate, Eliminations and Other | Transferred over time | Wholesale
Disaggregation of revenue
Revenue from contracts with customers	0	0
Corporate, Eliminations and Other | Transferred over time | Other service
Disaggregation of revenue
Revenue from contracts with customers	18	17
Corporate, Eliminations and Other | Transferred at point in time | Equipment and product sales
Disaggregation of revenue
Revenue from contracts with customers	$ 41	$ 30

Revenue Recognition - Contract

Revenue Recognition - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Contract assets	$ 12	$ 12
Contract liabilities	390	$ 395
Revenue recognized	$ 156

Revenue Recognition - Performan

Revenue Recognition - Performance Obligations (Details) $ in Millions	Mar. 31, 2023 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 686
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 342
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of remaining performance obligation, period	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 199
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]: 2025-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 145
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	Mar. 31, 2023	Dec. 31, 2022
Contract Cost Assets
Contract cost assets	$ 150	$ 152
Sales commissions
Contract Cost Assets
Contract cost assets	143	144
Installation costs
Contract Cost Assets
Contract cost assets	$ 7	$ 8

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Capitalized contract cost
Amortization of contract cost assets	$ 28	$ 29

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
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	536
Book Value | Other
Financial Instruments
Long-term debt	2,062	1,753
Fair Value | Level 2 | Retail
Financial Instruments
Long-term debt	1,062	899
Fair Value | Level 2 | Institutional
Financial Instruments
Long-term debt	387	395
Fair Value | Level 2 | Other
Financial Instruments
Long-term debt	$ 2,062	$ 1,753
Interest rate | Institutional and Other | Minimum
Financial Instruments
Fair value assumption, interest rate	3.52%	3.52%
Interest rate | Institutional and Other | Maximum
Financial Instruments
Fair value assumption, interest rate	8.55%	8.28%

Equipment Installment Plans - E

Equipment Installment Plans - EIP Receivables (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Equipment installment plan receivables, gross	$ 1,184	$ 1,211
Allowance for credit losses	(94)	(96)
Equipment installment plan receivables, net	1,090	1,115
Accounts receivable — Customers and agents (Current portion)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Equipment installment plan receivables, net	623	646
Other assets and deferred charges (Non-current portion)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Equipment installment plan receivables, net	$ 467	$ 469

Equipment Installment Plans - G

Equipment Installment Plans - Gross Receivables by Credit Category (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	$ 1,184	$ 1,211
2020	17
2021	249
2022	722
2023	196
Unbilled | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	1,121	1,141
Billed | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	43	48
Billed | Past due
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	20	22
Lowest Risk
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	1,046	1,070
2020	16
2021	229
2022	639
2023	162
Lowest Risk | Unbilled | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	997	1,016
Lowest Risk | Billed | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	38	41
Lowest Risk | Billed | Past due
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	11	13
Lower Risk
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	105	109
2020	1
2021	17
2022	65
2023	22
Lower Risk | Unbilled | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	95	98
Lower Risk | Billed | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	4	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	26	26
2020	0
2021	2
2022	14
2023	10
Slight Risk | Unbilled | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	23	22
Slight Risk | Billed | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	1	2
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	7	6
2020	0
2021	1
2022	4
2023	2
Higher Risk | Unbilled | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	6	5
Higher Risk | Billed | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	0	0
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	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Allowance for credit losses
Allowance for credit losses, beginning of period	$ 96
Allowance for credit losses, end of period	94
Equipment Installment Plan Receivable
Allowance for credit losses
Write-offs, net of recoveries, originated in 2021	6
Write-offs, net of recoveries, originated in 2022	14
Write-offs, net of recoveries, originated in 2023	0
Write-offs, net of recoveries, Total	20	$ 16
Allowance for credit losses, beginning of period	96	72
Bad debts expense	18	17
Write-offs, net of recoveries	(20)	(16)
Allowance for credit losses, end of period	$ 94	$ 73

Earnings Per Share - Reconcilia

Earnings Per Share - Reconciliation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings per share
Net income (loss) attributable to TDS common shareholders used in basic earnings (loss) per share	$ (9)	$ 44
Noncontrolling interest adjustment	0	(1)
Net income (loss) attributable to TDS common shareholders used in diluted earnings (loss) per share	$ (9)	$ 43
Weighted average number of shares used in basic earnings (loss) per share:	113	115
Effects of dilutive securities (in shares)	0	1
Weighted average number of shares used in diluted earnings (loss) per share	113	116
Basic earnings (loss) per share attributable to TDS common shareholders	$ (0.08)	$ 0.38
Diluted earnings (loss) per share attributable to TDS common shareholders	$ (0.08)	$ 0.37
Common Shares
Earnings per share
Weighted average number of shares used in basic earnings (loss) per share:	106	108
Series A Common Shares
Earnings per share
Weighted average number of shares used in basic earnings (loss) per share:	7	7

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	4	4

Intangible Assets - Narrative (

Intangible Assets - Narrative (Details) $ in Millions	3 Months Ended		12 Months Ended			39 Months Ended
	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($) license	Dec. 31, 2020 USD ($)	Dec. 31, 2024 USD ($)
Licenses
Cash paid for intangible assets	$ 5	$ 568
Auction 107
Licenses
Licenses won | license				254
Total winning bid				$ 1,283
FCC upfront payment					$ 30
Cash paid for intangible assets	3		$ 8	$ 36
Auction 107 | Subsequent event
Licenses
Cash paid for intangible assets						$ 185
Auction 107 | UScellular | Other current liabilities
Licenses
Short-term spectrum license liabilities	$ 139		133
Auction 107 | UScellular | Other deferred liabilities and credits
Licenses
Long-term spectrum license liabilities			$ 8

Investments in Unconsolidated_3

Investments in Unconsolidated Entities - Schedule of Investments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]
Equity method investments	$ 491		$ 468
Measurement alternative method investments	19		18
Investments recorded using the net asset value practical expedient	9		9
Total investments in unconsolidated entities	519	$ 506	$ 495
Schedule of Equity Method Investments [Line Items]
Revenues	1,303	1,315
Operating expenses	1,274	1,220
Operating income	29	95
Net income	12	72
Equity Method Investments
Schedule of Equity Method Investments [Line Items]
Revenues	1,809	1,816
Operating expenses	1,366	1,377
Operating income	443	439
Other income (expense), net	(16)	(4)
Net income	$ 427	$ 435

Debt - Revolving Credit Agreeme

Debt - Revolving Credit Agreements (Details) - TDS Revolving Credit Agreement - USD ($) $ in Millions		3 Months Ended
	Apr. 01, 2023	Mar. 31, 2023
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 400
Amount borrowed and outstanding		101
Amount available for use		299
Amount borrowed during the period		$ 100
SOFR rate
Line of Credit Facility [Line Items]
Contractual spread		1.60%
Subsequent event
Line of Credit Facility [Line Items]
Amount repaid during the period	$ 50

Debt - Export Credit Financing

Debt - Export Credit Financing Agreement (Details) - TDS export credit financing agreement $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 150
Amount borrowed during the period	100
Amount borrowed and outstanding	$ 150
SOFR rate
Debt Instrument [Line Items]
Contractual spread	1.60%

Debt - Receivables Securitizati

Debt - Receivables Securitization Agreement (Details) - USD ($) $ in Millions		3 Months Ended
	Apr. 01, 2023	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Equipment installment plan receivables		$ 1,184	$ 1,211
UScellular | Receivables securitization agreement
Debt Instrument [Line Items]
Amount borrowed during the period		115
Amount borrowed and outstanding		390
Amount available for use		60
UScellular | Receivables securitization agreement | Subsequent event
Debt Instrument [Line Items]
Amount repaid during the period	$ 75
UScellular | Receivables securitization agreement | Assets available to be pledged
Debt Instrument [Line Items]
Equipment installment plan receivables		$ 598
Lender's cost of funds | UScellular | Receivables securitization agreement
Debt Instrument [Line Items]
Contractual spread		0.90%

Debt - Repurchase Agreement (De

Debt - Repurchase Agreement (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Equipment installment plan receivables	$ 1,184	$ 1,211
Repurchase Agreement | UScellular
Debt Instrument [Line Items]
Maximum borrowing capacity	200
Amount repaid during the period	60
Amounts borrowed and outstanding	0
Amount available for use	200
Repurchase Agreement | UScellular | Assets available to be pledged
Debt Instrument [Line Items]
Equipment installment plan receivables	$ 365
Lender's cost of funds | Repurchase Agreement | UScellular
Debt Instrument [Line Items]
Contractual spread	1.35%

Debt - Narrative (Details)

Debt - Narrative (Details)	Apr. 01, 2025	Apr. 01, 2024	Mar. 31, 2023
Debt Instrument [Line Items]
Consolidated leverage ratio			4.25
Consolidated interest coverage ratio			3
Subsequent event
Debt Instrument [Line Items]
Consolidated leverage ratio	3.75	4

Variable Interest Entities - Co

Variable Interest Entities - Consolidated Balance Sheet (Details) - USD ($) $ in Millions	Mar. 31, 2023		Dec. 31, 2022		Mar. 31, 2022
Assets
Cash and cash equivalents	$ 259		$ 360
Accounts receivable	1,036		1,069
Inventory, net	269		268
Other current assets	71		58
Licenses	4,702		4,699
Property, plant and equipment, net	4,872		4,760
Operating lease right-of-use assets	986		995
Other assets and deferred charges	793		796
Total assets	14,539	[1]	14,550	[1]	$ 14,124
Liabilities
Current liabilities	1,225		1,514
Long-term operating lease liabilities	900		908
Other deferred liabilities and credits	813		813
Consolidated Variable Interest Entities
Assets
Cash and cash equivalents	25		29
Accounts receivable	679		700
Inventory, net	5		4
Other current assets	47		36
Licenses	638		638
Property, plant and equipment, net	115		115
Operating lease right-of-use assets	40		41
Other assets and deferred charges	476		478
Total assets	2,025		2,041
Liabilities
Current liabilities	33		92
Long-term operating lease liabilities	36		36
Other deferred liabilities and credits	28		28
Total liabilities	$ 97		$ 156
[1]The consolidated total assets as of March 31, 2023 and December 31, 2022, include assets held by consolidated variable interest entities (VIEs) of $1,488 million and $1,236 million, respectively, which are not available to be used to settle the obligations of TDS. The consolidated total liabilities as of March 31, 2023 and December 31, 2022, include certain liabilities of consolidated VIEs of $25 million and $23 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of TDS. See Note 9 — Variable Interest Entities for additional information.

Variable Interest Entities - Na

Variable Interest Entities - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Variable Interest Entity [Line Items]
Investment in unconsolidated entities, maximum exposure	$ 5		$ 4
Capital contributions, loans or advances	207	$ 21
USCC EIP LLC
Variable Interest Entity [Line Items]
Capital contributions, loans or advances	$ 193	$ 9

Noncontrolling Interests (Detai

Noncontrolling Interests (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
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	$ 8	$ 61
Transfers (to) from noncontrolling interests
Change in TDS' Capital in excess of par value from UScellular's issuance of UScellular shares	(3)	(1)
Change in TDS' Capital in excess of par value from UScellular's repurchases of UScellular shares	0	7
Net transfers (to) from noncontrolling interests	(3)	6
Net income attributable to TDS shareholders after transfers (to) from noncontrolling interests	$ 5	$ 67

Business Segment Information (D

Business Segment Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023		Mar. 31, 2022	Dec. 31, 2022
Segment Reporting Information [Line Items]
Total operating revenues	$ 1,303		$ 1,315
Selling, general and administrative	439		410
Depreciation, amortization and accretion	232		229
(Gain) loss on asset disposals, net	11		2
(Gain) loss on sale of business and other exit costs, net	0		(1)
Operating income (loss)	29		95
Equity in earnings of unconsolidated entities	44		45
Interest and dividend income	5		2
Interest expense	(53)		(33)
Income before income taxes	25		109
Income tax expense (benefit)	13		37
Net income	12		72
Depreciation, amortization and accretion	232		229
(Gain) loss on asset disposals, net	11		2
(Gain) loss on sale of business and other exit costs, net	0		(1)
Interest expense	53		33
Income tax expense	13		37
Adjusted EBITDA	321		372
Investments in unconsolidated entities	519		506	$ 495
Total assets	14,539	[1]	14,124	$ 14,550	[1]
Capital expenditures	343		242
Service
Segment Reporting Information [Line Items]
Total operating revenues	1,043		1,062
Cost of goods and services	305		298
Equipment and product sales
Segment Reporting Information [Line Items]
Total operating revenues	260		253
Cost of goods and services	287		282
UScellular
Segment Reporting Information [Line Items]
Total operating revenues	986		1,010
Selling, general and administrative	345		325
Depreciation, amortization and accretion	170		171
(Gain) loss on asset disposals, net	10		2
(Gain) loss on sale of business and other exit costs, net			(1)
Operating income (loss)	26		71
Equity in earnings of unconsolidated entities	44		45
Interest and dividend income	2		1
Interest expense	(47)		(33)
Income before income taxes	25		84
Income tax expense (benefit)	11		32
Net income	14		52
Depreciation, amortization and accretion	170		171
(Gain) loss on asset disposals, net	10		2
(Gain) loss on sale of business and other exit costs, net			(1)
Interest expense	47		33
Income tax expense	11		32
Adjusted EBITDA	252		289
Investments in unconsolidated entities	477		465
Total assets	10,997		10,875
Capital expenditures	208		137
UScellular | Service
Segment Reporting Information [Line Items]
Total operating revenues	767		787
Cost of goods and services	182		185
UScellular | Equipment and product sales
Segment Reporting Information [Line Items]
Total operating revenues	219		223
Cost of goods and services	253		257
TDS Telecom
Segment Reporting Information [Line Items]
Total operating revenues	253		251
Selling, general and administrative	80		72
Depreciation, amortization and accretion	59		54
(Gain) loss on asset disposals, net	1		0
(Gain) loss on sale of business and other exit costs, net			0
Operating income (loss)	8		28
Equity in earnings of unconsolidated entities	0		0
Interest and dividend income	1		0
Interest expense	2		2
Income before income taxes	11		31
Income tax expense (benefit)	3		8
Net income	8		23
Depreciation, amortization and accretion	59		54
(Gain) loss on asset disposals, net	1		0
(Gain) loss on sale of business and other exit costs, net			0
Interest expense	(2)		(2)
Income tax expense	3		8
Adjusted EBITDA	69		83
Investments in unconsolidated entities	4		4
Total assets	3,141		2,706
Capital expenditures	130		105
TDS Telecom | Service
Segment Reporting Information [Line Items]
Total operating revenues	253		251
Cost of goods and services	104		96
TDS Telecom | Equipment and product sales
Segment Reporting Information [Line Items]
Total operating revenues	0		0
Cost of goods and services	0		0
Corporate, Eliminations and Other
Segment Reporting Information [Line Items]
Total operating revenues	64		54
Selling, general and administrative	14		13
Depreciation, amortization and accretion	3		4
(Gain) loss on asset disposals, net	0		0
(Gain) loss on sale of business and other exit costs, net			0
Operating income (loss)	(5)		(4)
Equity in earnings of unconsolidated entities	0		0
Interest and dividend income	2		1
Interest expense	(8)		(2)
Income before income taxes	(11)		(6)
Income tax expense (benefit)	(1)		(3)
Net income	(10)		(3)
Depreciation, amortization and accretion	3		4
(Gain) loss on asset disposals, net	0		0
(Gain) loss on sale of business and other exit costs, net			0
Interest expense	8		2
Income tax expense	(1)		(3)
Adjusted EBITDA	0		0
Investments in unconsolidated entities	38		37
Total assets	401		543
Capital expenditures	5		0
Corporate, Eliminations and Other | Service
Segment Reporting Information [Line Items]
Total operating revenues	23		24
Cost of goods and services	19		17
Corporate, Eliminations and Other | Equipment and product sales
Segment Reporting Information [Line Items]
Total operating revenues	41		30
Cost of goods and services	$ 34		$ 25
[1]The consolidated total assets as of March 31, 2023 and December 31, 2022, include assets held by consolidated variable interest entities (VIEs) of $1,488 million and $1,236 million, respectively, which are not available to be used to settle the obligations of TDS. The consolidated total liabilities as of March 31, 2023 and December 31, 2022, include certain liabilities of consolidated VIEs of $25 million and $23 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of TDS. See Note 9 — Variable Interest Entities for additional information.