United States Cellular Corporat (UZD) 10-Q 30 Oct 15 2015 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information	9 Months Ended
	Sep. 30, 2015shares
Entity Registrant Name	United States Cellular Corporation
Entity Central Index Key	821,130
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Trading Symbol	USM
Common Shares
Entity Common Stock, Shares Outstanding	51,281,644
Series A Common Shares
Entity Common Stock, Shares Outstanding	33,005,877

Consolidated Statement Of Opera

Consolidated Statement Of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Operating revenues
Service	$ 895,960	$ 851,063	$ 2,548,544	$ 2,548,149
Equipment sales	172,946	149,356	461,274	335,854
Total operating revenues	1,068,906	1,000,419	3,009,818	2,884,003
Operating expenses
System operations (excluding Depreciation, amortization and accretion reported below)	198,982	199,750	585,935	567,488
Cost of equipment sold	287,256	307,862	779,228	850,314
Selling, general and administrative (including charges from affiliates of $22.0 million and $21.5 million, respectively, for the three months, and $65.7 million and $65.6 million, respectively, for the nine months)	374,585	397,545	1,106,524	1,197,361
Depreciation, amortization and accretion	152,369	148,952	450,035	465,042
(Gain) loss on asset disposals, net	2,618	7,947	12,268	16,774
(Gain) loss on sale of business and other exit costs, net	(643)	(10,283)	(113,825)	(27,694)
(Gain) loss on license sales and exchanges, net	(23,986)		(146,884)	(91,446)
Total operating expenses	991,181	1,051,773	2,673,281	2,977,839
Operating income (loss)	77,725	(51,354)	336,537	(93,836)
Investment and other income (expense)
Equity in earnings of unconsolidated entities	39,674	35,971	109,729	106,166
Interest and dividend income	9,299	3,572	25,834	6,029
Interest expense	(21,121)	(13,514)	(61,239)	(42,712)
Other, net	78	95	274	281
Total investment and other income	27,930	26,124	74,598	69,764
Income (loss) before income taxes	105,655	(25,230)	411,135	(24,072)
Income tax expense (benefit)	40,634	(1,459)	161,214	746
Net income (loss)	65,021	(23,771)	249,921	(24,818)
Less: Net income (loss) attributable to noncontrolling interests, net of tax	1,427	(1,606)	6,911	(3,346)
Net income (loss) attributable to U.S. Cellular shareholders	$ 63,594	$ (22,165)	$ 243,010	$ (21,472)
Basic weighted average shares outstanding	84,333	84,233	84,224	84,262
Basic earnings (loss) per share attributable to U.S. Cellular shareholders	$ 0.75	$ (0.26)	$ 2.89	$ (0.25)
Diluted weighted average shares outstanding	84,947	84,233	84,869	84,262
Diluted earnings (loss) per share attributable to U.S. Cellular shareholders	$ 0.75	$ (0.26)	$ 2.86	$ (0.25)

Consolidated Statement Of Oper3

Consolidated Statement Of Operations Parenthetical - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Operating expenses
Selling, general and administrative, charges from affiliates	$ 22	$ 21.5	$ 65.7	$ 65.6

Consolidated Statement of Cash

Consolidated Statement of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities
Net income (loss)	$ 249,921	$ (24,818)
Add (deduct) adjustments to reconcile net income (loss) to cash flows from operating activities
Depreciation, amortization and accretion	450,035	465,042
Bad debts expense	78,370	74,357
Stock-based compensation expense	18,161	16,502
Deferred income taxes, net	(20,075)	(14,124)
Equity in earnings of unconsolidated entities	(109,729)	(106,166)
Distributions from unconsolidated entities	45,035	74,853
(Gain) loss on asset disposals, net	12,268	16,774
(Gain) loss on sale of business and other exit costs, net	(113,825)	(27,694)
(Gain) loss on license sales and exchanges, net	(146,884)	(91,446)
Noncash interest expense	1,206	845
Other operating activities	(391)	66
Changes in assets and liabilities from operations
Accounts receivable	(54,437)	73,741
Equipment installment plans receivable	(95,799)	(131,520)
Inventory	90,811	53,367
Accounts payable	116,740	21,677
Customer deposits and deferred revenues	(51,026)	28,486
Accrued taxes	161,237	(18,453)
Accrued interest	10,814	9,140
Other assets and liabilities	(86,977)	(89,998)
Cash flows from operating activities	555,455	330,631
Cash flows from investing activities
Cash used for additions to property, plant and equipment	(406,596)	(424,774)
Cash paid for aquisitions and licenses	(285,656)	(37,978)
Cash received from divestitures and exchanges	314,352	143,801
Cash received for investments		10,000
Other investing activities	990	804
Cash flows from investing activities	(376,910)	(308,147)
Cash flows from financing activities
Issuance of long-term debt	225,000
Common shares reissued for benefit plans, net of tax payments	(868)	1,150
Common shares repurchased	(4,070)	(14,698)
Payment of debt issuance costs	(3,080)	(448)
Acquisition of assets in common control transaction	(2,437)	(76,298)
Distributions to noncontrolling interests	(6,097)	(439)
Other financing activities	(1,740)	(18)
Cash flows from financing activities	206,708	(90,751)
Net increase (decrease) in cash and cash equivalents	385,253	(68,267)
Cash and cash equivalents
Beginning of period	211,513	342,065
End of period	$ 596,766	$ 273,798

Consolidated Balance Sheet

Consolidated Balance Sheet - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 596,766	$ 211,513
Accounts receivable
Customers and agents, less allowances of $41,364 and $37,654, respectively	561,676	466,048
Roaming	27,419	23,865
Affiliated	516	994
Other, less allowances of $741 and $859, respectively	39,185	66,051
Inventory, net	176,259	267,068
Prepaid expenses	88,041	59,744
Net deferred income tax asset	82,719	93,058
Other current assets	18,730	90,834
Total current assets	1,591,311	1,279,175
Assets held for sale		107,055
Investments
Licenses	1,834,061	1,443,438
Goodwill	369,596	370,151
Investments in unconsolidated entities	347,710	283,014
Total investments	2,551,367	2,096,603
Property, plant and equipment
In service and under construction	7,511,997	7,458,740
Less: Accumulated depreciation	4,903,559	4,730,523
Property, plant and equipment, net	2,608,438	2,728,217
Other assets and deferred charges	187,268	276,218
Total assets	6,938,384	6,487,268
Current liabilities
Current portion of long-term debt	8,501	46
Accounts payable
Affiliated	7,874	9,774
Trade	362,268	306,845
Customer deposits and deferred revenues	236,568	287,562
Accrued taxes	121,177	36,652
Accrued compensation	57,547	66,162
Other current liabilities	92,617	149,853
Total current liabilities	886,552	856,894
Liabilities held for sale		20,934
Deferred liabilities and credits
Net deferred income tax liability	828,563	859,867
Other deferred liabilities and credits	287,873	284,002
Long-term debt	$ 1,368,656	$ 1,151,819
Commitments and contingencies
Noncontrolling interests with redemption features	$ 910	$ 1,150
U.S. Cellular shareholders' equity
Series A Common and Common Shares	88,074	88,074
Additional paid-in capital	1,490,651	1,472,558
Treasury Shares, at cost	(159,705)	(169,139)
Retained earnings	2,135,145	1,910,498
Total U.S. Cellular shareholders' equity	3,554,165	3,301,991
Noncontrolling interests	11,665	10,611
Total equity	3,565,830	3,312,602
Total liabilities and equity	$ 6,938,384	$ 6,487,268

Consolidated Balance Sheet Pare

Consolidated Balance Sheet Parenthetical - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets
Customers and agents, allowances	$ 41,364	$ 37,654
Other, allowances	$ 741	$ 859
U.S. Cellular shareholders' equity
Authorized shares	190,000	190,000
Issued shares	88,074	88,074
Outstanding shares	84,288	84,080
Par value	$ 88,074	$ 88,074
Treasury Shares
U.S. Cellular shareholders' equity
Treasury shares	3,786	3,994
Common Shares
U.S. Cellular shareholders' equity
Authorized shares	140,000	140,000
Issued shares	55,068	55,068
Outstanding shares	51,282	51,074
Par value per share	$ 1	$ 1
Par value	$ 55,068	$ 55,068
Common Shares | Treasury Shares
U.S. Cellular shareholders' equity
Treasury shares	3,786	3,994
Series A Common Shares
U.S. Cellular shareholders' equity
Authorized shares	50,000	50,000
Issued shares	33,006	33,006
Outstanding shares	33,006	33,006
Par value per share	$ 1	$ 1
Par value	$ 33,006	$ 33,006

Consolidated Statement of Chang

Consolidated Statement of Changes in Equity - USD ($) $ in Thousands	Total	Series A Common and Common Shares	Additional Paid-In Capital	Treasury Shares	Retained Earnings	Total U.S. Cellular Shareholders' Equity	Noncontrolling Interests
Beginning balance at Dec. 31, 2013	$ 3,409,597	$ 88,074	$ 1,424,729	$ (164,692)	$ 2,043,095	$ 3,391,206	$ 18,391
Add (Deduct)
Net income (loss) attributable to U.S. Cellular shareholders	(21,472)				(21,472)	(21,472)
Net income (loss) attributable to noncontrolling interests classified as equity	(3,738)						(3,738)
Repurchase of Common Shares	(15,124)			(15,124)		(15,124)
Incentive and compensation plans	1,040			12,755	(11,715)	1,040
Stock-based compensation awards	15,474		15,474			15,474
Tax windfall (shortfall) from stock awards	(563)		(563)			(563)
Distributions to noncontrolling interests	(517)						(517)
Acquisition of assets in common control transaction	(47,126)		29,141		(76,267)	(47,126)
Ending balance at Sep. 30, 2014	3,337,571	88,074	1,468,781	(167,061)	1,933,641	3,323,435	14,136
Beginning balance at Dec. 31, 2014	3,312,602	88,074	1,472,558	(169,139)	1,910,498	3,301,991	10,611
Add (Deduct)
Net income (loss) attributable to U.S. Cellular shareholders	243,010				243,010	243,010
Net income (loss) attributable to noncontrolling interests classified as equity	1,491						1,491
Repurchase of Common Shares	(5,362)			(5,362)		(5,362)
Incentive and compensation plans	(944)		186	14,796	(15,926)	(944)
Stock-based compensation awards	17,472		17,472			17,472
Tax windfall (shortfall) from stock awards	(445)		(445)			(445)
Distributions to noncontrolling interests	(437)						(437)
Acquisition of assets in common control transaction	(1,552)		885		(2,437)	(1,552)
Adjust investment in subsidiaries for noncontrolling interest purchases	(5)		(5)			(5)
Ending balance at Sep. 30, 2015	$ 3,565,830	$ 88,074	$ 1,490,651	$ (159,705)	$ 2,135,145	$ 3,554,165	$ 11,665

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Disclosure Text Block
Basis of Presentation	1 . Basis of Presentation United States Cellular Corporation (“U.S. Cellular”), a Delaware corporation, is an 84% - owned subsidiary of Telephone and Data Systems, Inc. (“TDS”). The accounting policies of U.S. Cellular conform to accounting principles generall y accepted in the United States of America (“GAAP”) as set forth in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). The consolidated financial statements include the accounts of U.S. Cellular, subsidiaries in wh ich it has a controlling financial interest, general partnerships in which U.S. Cellular has a majority partnership interest and certain entities in which U.S. Cellular has a variable interest that require consolidation under GAAP. All material intercompa ny accounts and transactions have been eliminated. Certain prior year amounts have been reclassified to conform to the 2015 presentation. The unaudited consolidated financial statements included herein have been prepared by U.S. Cellular pursuant to the r ules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Ho wever, U.S. Cellular believes that the disclosures included herein are adequate to make the information presented not misleading. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements an d the notes thereto included in U.S. Cellular’s Annual Report on Form 10-K (“Form 10-K”) for the year ended December 31, 2014 . The accompanying unaudited consolidated financ ial statements contain all adjustments (consisting of normal recurring items, unless otherwise disclosed) necessary for a fair statement of the financial position as of September 30, 2015 and December 31, 2014 , the results of operations for the three and nine months ended September 30, 2015 and 2014 , and cash flows and changes in equity for the nine months ended September 30, 2015 and 2014 . The Consolidated Statement of Comprehensive Income was not included because comprehensive income for the three and nine months ended September 30, 2015 and 2014 equaled net income f or these periods. These results are not necessarily indicative of the results to be expected for the full year. Recently Issued Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Custome rs (“ASU 2014-09”). ASU 2014-09 outlines a single comprehensive model to use in accounting for revenue arising from contracts with customers. In August 2015, the FASB issued Accounting Standards Update 2015-14, Revenue from Contracts with Customers: Defe rral of the Effective Date, requiring the adoption of ASU 2014-09 on January 1, 2018. Early adoption as of January 1, 2017 is permitted ; however, U.S. Cellular does not intend to adopt early. U.S. Cellular is evaluating the effects that adoption of ASU 2014-09 will have on its financial position, results of opera tions and disclosures. I n August 2014, the FASB issued Accounting Standards Update 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014 -15”). ASU 2014-15 requires U.S. Cellular to assess its ability to continue as a going concern each interim and annual reporting period and provide certain disclosures if there is substantial doubt about the entity’s ability to continue as a going concern , including management’s plan to alleviate the substantial doubt. U.S. Cellular is required to adopt the provisions of ASU 2014-15 for the annual period ending December 31, 2016, but early adoption is permitted. The adoption of ASU 2014-15 will not impac t U.S. Cellular’s financial position or results of operations but may impact future disclosures. I n February 2015, the FASB issued Accounting Standards Update 2015-02, Consolidation: Amendments to the Consolidation Analysis (“ASU 2015-02”). ASU 2015-02 si mplifies consolidation accounting by reducing the number of consolidation models. Additionally, ASU 2015-02 changes certain criteria for identifying variable interest entities. U.S. Cellular is required to adopt the provisions of ASU 2015-02 effective Jan uary 1, 2016. Early adoption is permitted. U.S. Cellular expects that certain consolidated subsidiaries that are not defined as variable interest entities under current accounting guidance will be defined as variable interest entities under the provision s of ASU 2015-02. However, U.S. Cellular does not expect the adoption of ASU 2015-02 to change the group of entities which U.S. Cellular is required to consolidate in its financial statements. Accordingly, U.S. Cellular does not expect the adoption of AS U 2015-02 to impact its financial position or results of operations. However, additional disclosures are expected. I n April 2015, the FASB issued Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”) , whi ch requires certain debt issuance costs to be presented in the balance sheet as an offset to the related debt obligation. U.S. Cellular is required to apply the provisions of this update effective January 1, 2016 on a retrospective basis. Early adoption i s permitted. In August 2015, the FASB issued Accounting Standards Update 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, excluding debt issuance costs related to line-of-credit arrangeme nts from the scope of ASU 2015-03. As of September 30, 2015 , U.S. Cellular had $ 27.2 million in debt issuance costs classified as Other assets and deferred charges that, upon adoption of ASU 2015-03 , would be reclassified as an offset to Long-term debt. I n July 2015, the FASB issued Accounting Standards Update 2015-11, Inventory: Simplifying the Measurement of Inventory (“ASU 2015-11 ” ), which requires inventory to be measured at the lower of cost or net realizable value. U.S. Cellular is required to adopt ASU 2015-11 on January 1, 2017. Early adoption is permitted. U.S. Cellular is evaluating the effects that adoption of ASU 2015-11 will have on its financial position and results of operations . In September 2015, the FASB issued Accounting Standards Update 2015-16, Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments (“ASU 2015- 16”). ASU 2015-16 simpl ifies how adjustments are made to provisional amounts recognized in a business combination during the measurement period. U.S. Cellular is required to adopt ASU 2015-16 on January 1, 2016. U.S. Cellular is evaluating the effects that adoption of ASU 2015 -16 will have on its financial position, results of operations, and disclosures. Amounts Collected from Customers and Remitted to Governmental Authorities U.S. Cellular records amounts collected from customers and remitted to governmental authorities net w ithin a tax liability account if the tax is assessed upon the customer and U.S. Cellular merely acts as an agent in collecting the tax on behalf of the imposing governmental authority. If the tax is assessed upon U.S. Cellular, then amounts collected fro m customers as recovery of the tax are recorded in Service revenues and amounts remitted to governmental authorities are recorded in Selling, general and administrative expenses in the Consolidated Statement of Operations. The amounts recorded gross in rev enues that are billed to customers and remitted to governmental authorities totaled $ 18.6 million and $ 59.8 million for the three and nine months ended September 30, 2015 , respectively, and $ 23.1 million and $ 74.8 million for the three and nine months ended September 30, 2014 , respectively.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2015
Disclosure Text Block
Fair Value Measurements	2 . Fair Value Measurements As of September 30, 2015 and December 31, 2014 , U.S. Cellular did not have any financial or nonfinancial assets or liabilities that were required to be recorded at fair value in its Consolidated Balance Sheet in accordance with GAAP. The provisions of GAAP establish a fair value hierarchy that contains three levels for inputs used in fair value measurements. Level 1 inputs include quoted market prices for identical assets or liabilities in active markets. Level 2 inputs include quoted market prices for similar assets and liabilities in active markets or quo ted 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 me asurement. A financial instrument’s level within the fair value hierarchy is not representative of its expected performance or its overall risk profile and, therefore, Level 3 assets are not necessarily higher risk than Level 2 or Level 1 assets. U.S. Ce llular has applied the provisions of fair value accounting for purposes of computing the fair value of financial instruments for disclosure purposes as displayed below. Level within the Fair Value Hierarchy September 30, 2015 December 31, 2014 Book Value Fair Value Book Value Fair Value (Dollars in thousands) Cash and cash equivalents 1 $ 596,766 $ 596,766 $ 211,513 $ 211,513 Long-term debt Retail 2 617,000 624,267 617,000 608,462 Insti tutional 2 532,940 489,375 532,722 513,647 Other 2 216,562 217,371 – – The f air value of Cash and cash equivalents approximates the book value due to the short-term nature of these financial instruments. Long-term debt excludes capital lease obligations and the current portion of Long-term debt. The fair value of “Retail” Long-t erm debt was estimated using market prices for the 6.95% Senior Notes and 7.25% Senior Notes. U.S. Cellular’s “Institutional” debt consists of the 6.7% Senior Notes which are traded over the counter. U.S. Cellular’s “Other” debt consists of a senior term loan credit facility. U.S. Cellular estimated the fair value of its Institutional and Other debt through a discounted cash flow analysis using the interest rates or estimated yield to maturity for each borrowing, which ranged from 2.88% to 7.73% at September 30, 2015 . An estimated yield to maturity of 7.25% was used to estimate fair value of Institutional debt at December 31, 2014 .

Equipment Installment Plans

Equipment Installment Plans	9 Months Ended
	Sep. 30, 2015
Disclosure Text Block
Equipment Installment Plans	3 . Equipment Installment Plans U.S. Cellular offers customers the option to purchase certain devices under an equipment installment contract over a period of up to 24 months. Under certain equipment installment plans, the customer has the right to upgrade to a new device after a specified period of time 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. U.S. Cellular values this trade-in right as a guarantee liability. The guarantee liability is initially measured at fair value and is determined b ased on assumptions including the probability and timing of the customer upgrading to a new device and the fair value of the device being traded-in at the time of trade-in. As of September 30, 2015 and December 31, 2014 , the guarantee liability related to these plans was $ 91.3 million and $ 57.5 million, respectively, and is reflected in Customer deposits and deferred revenue s in the Consolidated Balance Sheet. U.S. Cellular equipment installment plans do not provide for explicit interest charges. For equipment installment plans with a duration of greater than twelve months, U.S. Cellular imputes interest. The following tab le summarizes unbilled equipment installment plan receivables as of September 30, 2015 and December 31, 2014 . Such amounts are included in the Consolidated Balance Sheet a s Accounts receivable – customers and agents (short-term portion) and Other assets and deferred charges (long-term portion). (Dollars in thousands) September 30, 2015 December 31, 2014 Short-term portion of unbilled equipment installment plan receivables, gross $ 245,218 $ 127,400 Short-term portion of unbilled deferred interest (18,504) (16,365) Short-term portion of unbilled allowance for credit losses (9,326) (3,686) Short-term portion of unbilled equipment installment plan receivables, net $ 217,388 $ 107,349 Long-term portion of unbilled equipment installment plan receivables, gross $ 66,512 $ 89,435 Long-term portion of unbilled deferred interest (819) (2,791) Long-term portion of unbilled allowance for credit losses (4,740) (6,065) Long-term portion of unbilled equipment installment plan receivables, net $ 60,953 $ 80,579 U.S. Cellular assesses the collectability of equipment installment plan receivables based on historical payment experience, account aging and other qualitative factors. To mitigate credit risk, U.S. Cellular requires certain customers who desire to purchase equipment under an installment plan to make a down p ayment. U.S. Cellular recorded out-of-period adjustments during the nine months ended September 30, 2015 due to errors related to equipment installment plan transactions th at were attributable to 2014. U.S. Cellular has determined that these adjustments were not material to the prior quarterly or annual periods, and also were not material to the current period or anticipated full year 2015 results. These equipment installm ent plan adjustments had the impact of reducing Equipment sales revenues by $ 6.2 million and Income before income taxes by $ 5.8 million for the nine months ended September 30, 2015 . These adjustments were made in the first six months of 2015.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Disclosure Text Block
Income Taxes	4 . Income Taxes U.S. Cellular is included in a consolidated federal income tax return and in certain state income tax returns with other members of the TDS consolidated group. For financial statement purposes, U.S. Cellular and its subsidiaries compute their income tax expense as if they comprised a separate affiliated group and were not included in the TDS consolidated group. U.S. Cellular’s overall effecti ve tax rate on Income (loss) before income taxes for the three and nine months ended September 30, 2015 were 38.5% and 39.2% , respectively. The effective tax rates for the three and nine months ended September 30, 2014 were not meaningful due to the relatively low amount of Income (loss) before income taxes and the impact of a $6.4 million tax expense related to a valuatio n allowance recorded against certain state deferred tax assets. U.S. Cellular determined that such deferred tax assets were not reali zable, on a more likely than not basis.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2015
Disclosure Text Block
Earnings per Share	5 . Earnings Per Share Basic earnings (loss) per share attributable to U.S. Cellular shareholders is computed by dividing Net income (loss) attributable to U.S. Cellular shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share attributable to U.S. Cellular shareholders is computed by dividing Net income (loss) attributable t o U.S. Cellular 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 upo n exercise of outstanding stock options and the vesting of restricted stock units The amounts used in computing earnings (loss) per common share and the effects of potentially dilutive securities on the weighted average number of common shares were as foll ows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (Dollars and shares in thousands, except per share amounts) Net income (loss) attributable to U.S. Cellular shareholders $ 63,594 $ (22,165) $ 243,010 $ (21,472) Weighted average number of shares used in basic earnings (loss) per share 84,333 84,233 84,224 84,262 Effects of dilutive securities: Stock options 140 – 151 – Restricted stock units 474 – 494 – Weighted average number of shares used in diluted earnings (loss) per share 84,947 84,233 84,869 84,262 Basic earnings (loss) per share attributable to U.S. Cellular shareholders $ 0.75 $ (0.26) $ 2.89 $ (0.25) Diluted earnings (loss) per share attributable to U.S. Cellular shareholders $ 0.75 $ (0.26) $ 2.86 $ (0.25) Certain Common Shares issuable upon the exercise of stock options or vesting of restricted stock units were not included in average d iluted shares outstanding for the calculation of Diluted earnings (loss) per share attributable to U.S. Cellular shareholders because their effects were antidilutive. The number of such Common Shares excluded, if any, is shown in the table below. Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (Shares in thousands) Stock options 3,476 3,484 3,120 3,234 Restricted stock units 1 1,226 289 1,189

Acquisitions, Divestitures and

Acquisitions, Divestitures and Exchanges	9 Months Ended
	Sep. 30, 2015
Disclosure Text Block
Acquisitions, Divestitures and Exchanges	6 . Acquisitions, Divestitures and Exchanges Divestiture Transaction On May 16, 2013, pursuant to a Purchase and Sale Agreement, U.S. Cellular sold customers and certain PCS spectrum licenses to subsidiaries of Sprint Corp. fka Sprint Nextel Corporation (“Sprint”) in U.S. Cellular’s Chicago, central Illinois, St. Louis and certain Indiana/Michigan/Ohio markets (“Divestiture Markets”) in consideration for $ 480 million in cash. The Purchase and Sale Agreement also contemplated certain other agreements, together with the Purchase and Sale Agreement collectively referred to as the “Divestiture Transaction.” These agreements require Sprint to reimburse U.S. Cellul ar up to $ 200 million (the “Sprint Cost Reimbursement”) for certain network decommissioning costs, network site lease rent and termination costs, network access termination costs, and employee termination benefits for specified e ngineering employees. As of September 30, 2015 , U.S. Cellular had received a cumulative total of $ 109.3 million pursuant to the Sprint Cost Reimbursement. For the nine months ended September 30, 2015 and 2014 , $ 27.6 million and $ 52.0 million, respectively , of the Sprint Cost Reimbursement had been received and recorded in Cash received from divestitures and exchanges in the Consolidated Statement of Cash Flows. For the nine months ended September 30, 2015 and 2014 , as a result of the Divestiture Transaction, U.S. Cellular recognized gains of $ 6.2 million and $ 28.1 million, res pectively, in (Gain) loss on sale of business and other exit costs, net. For the three months ended September 30, 2015 and 2014 , U.S. Cellular recognized gains of $ 0.3 million and $ 10.4 million, respectively. Other Acquisitions, Divestitures and Exchanges In March 2015, U.S. Cellular exchanged certa in of its unbuilt PCS licenses for certain other PCS licenses located in U.S. Cellular’s existing operating markets and $ 117.0 million of cash. As of the transaction date, the licenses received in the transaction had an estima ted fair value, per a market approach, of $ 43.5 million. A gain of $ 125.2 million was recorded in (Gain) loss on license sales and exchanges, net in the Consolidated Statement of Operations in the first quarter of 2015. An FCC auction of AWS-3 spectrum licenses (“ Auction 97 ”) ended in January 2015. U.S. Cellular participated in Auction 97 indirectly through its limited partnership interest in Advantage Spectrum L.P. (“Advantage Spectrum”). Advanta ge Spectrum was the provisional winning bidder for 124 licenses for an aggregate winning bid of $ 338.3 million, after its designated entity discount of 25 %. Advantage Spect rum’s bid amount, less the initial deposit amount of $ 60.0 million paid in 2014, was paid to the FCC in March 2015. These licenses have not yet been granted by the FCC. See Note 10 — Variable Interest Entities for additional information. In December 2014, U.S. Cellular entered into an agreement with a third party to sell 595 towers and certain related contracts, assets, and li abilities for $ 159.0 million. This agreement and related transaction s are referred to as the “Tower Sale” and were accomplished in two closings. The first closing occurred in December 2014 and included the sale of 236 towers, without tenants, for $ 10.0 million. On this same date, U.S. Cellular received $ 7.5 million in earnest money. At the time of the first closing, a $ 3.8 million gain was recorded. The second closing for the remaining 359 towers, primarily with tenants, took place in January 2015, at which time U.S. Cellular received $ 141.5 million in additio nal cash proceeds and recorded a gain of $ 107.7 million in (Gain) loss on sale of business and other exit costs, net. In September 2014, U.S. Cellular entered into an agreement with a third party to exchange certain PCS and AW S licenses for certain other PCS and AWS licenses and $ 28.0 million of cash. This license exchange was accomplished in two closings. The first closing occurred in December 2014 at which time U.S. Cellular received licenses wi th an estimated fair value, per a market approach, of $ 51.5 million, recorded a $ 21.7 million gain and recorded an $ 18.3 million deferred credit in Other current liabili ties. The license that was transferred to the counterparty in the second closing had a net book value of $ 22.2 million . The second closing occurred in July 2015. At the time of the second closing, U.S. Cellular received $ 28.0 million in cash and recognized the deferred credit from the first closing , resulting in a total gain of $ 24.1 million recorded on this part of the license exchange.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2015
Disclosure Text Block
Intangible Assets	7 . Intangible Assets Changes in U.S. Cellular’s Licenses for the nine months ended September 30, 2015 are presented below. There were no significant changes to Goodwill during the nine months ended September 30, 2015 . Licenses (Dollars in thousands) Balance December 31, 2014 $ 1,443,438 Acquisitions (1) 345,656 Exchanges (2) 43,485 Other 1,482 Balance September 30, 2015 $ 1,834,061 (1) Amount includes payments totaling $338.3 million made by Advantage Spectrum to the FCC for licenses in which it was the provisional winning bidder in Auction 97. See Note 6 — Acquisitions, Divestitures and Exchanges, and Note 10 — Variable Interest Entities for further information. (2) Amount represents licenses received in the March 2015 PCS license exchange. See Note 6 — Acquisitions, Divestitures and Exchanges for further information. Licenses disposed of in this exchange and the exchange that closed in July 2015 were previously removed from the Licenses balance and reflected in Assets held for sale in the Consolidated Balance Sheet as of December 31, 2014.

Investments in Unconsolidated E

Investments in Unconsolidated Entities	9 Months Ended
	Sep. 30, 2015
Disclosure Text Block
Investments in Unconsolidated Entities	8 . Investments in Unconsolidated Entities Investments in unconsolidated entities consist of amounts invested in wireless entities in which U.S. Cellular holds a noncontrolling interest. These investments are accounted for using either the equity or cost method. The following table, which is based on information provided in part by third parties, summarizes the combined results of operations of U.S. Cellular’s equi ty method investments. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in thousands) Revenues $ 1,733,402 $ 1,643,734 $ 5,184,186 $ 4,861,057 Operating expenses 1,263,320 1,225,417 3,826,798 3,540,783 Operating income 470,082 418,317 1,357,388 1,320,274 Other income (loss), net (9,843) 1,651 (15,466) 4,077 Net income $ 460,239 $ 419,968 $ 1,341,922 $ 1,324,351

Debt

Debt	9 Months Ended
	Sep. 30, 2015
Disclosure Text Block
Debt	9 . Debt In January 2015, U.S. Cellular entered into a senior term loan credit facility. In July 2015, U.S. Cellular borrowed the full amount of $225 million available under this facility in two separate draws at an overall interest rate of 2.88%. The interest rate on outstanding borrowings will be reset at three and six month in tervals at a rate of LIBOR plus 250 basis points. This credit facility provides for the draws to be continued on a long-term basis under terms that are readily determinable. U.S. Cellular has the ability and intent to carry the debt for the duration of the agreement. Principal reductions will be due and payable in quarterly installments of $2.8 million beginning in March 2016 through December 2021, and the remaining unpaid balance will be due and payable in January 2022. These funds will be used for general corporate purposes, including working capital, spectrum purchases and capital expenditures.

Variable Interest Entities

Variable Interest Entities	9 Months Ended
	Sep. 30, 2015
Disclosure Text Block
Variable Interest Entities	10 . Variable Interest Entities U.S. Cellular consolidates variable interest entities (“VIEs”) in which it has a controlling financial interest and is the primary beneficiary. A controlling financial interest will have both of the following characteristics: (a) the power to direct the VIE activities that most significantly impact economic performan ce and (b) the obligation to absorb VIE losses and the right to receive benefits that are significant to the VIE. U.S. Cellular reviews these criteria initially at the time it enters into agreements and subsequently when reconsideration events occur. Cons olidated VIEs As of September 30, 2015 , U.S. Cellular holds a variable interest in and consolidates the following VIEs: Advantage Spectrum and Frequency Advantage L.P., the general partner of Advantage Spectrum; Aq uinas Wireless L.P. (“Aquinas Wireless”); and King Street Wireless L.P. (“King Street Wireless”) and King Street Wireless, Inc., the general partner of King Street Wireless. The power to direct the activities that most significantly impact the economic pe rformance of Advantage Spectrum, Aquinas Wireless and King Street Wireless (collectively, the “limited partnerships”) is shared. Specifically, the general partner of these VIEs has the exclusive right to manage, operate and control the limited partnership s and make all decisions to carry on the business of the partnerships; however, the general partner of each partnership needs the consent of the limited partner, a U.S. Cellular subsidiary, to sell or lease certain licenses, to make certain large expenditu res, admit other partners or liquidate the limited partnerships. Although the power to direct the activities of the VIEs is shared, U.S. Cellular has a disproportionate level of exposure to the variability associated with the economic performance of the V IEs, indicating that U.S. Cellular is the primary beneficiary of the VIEs. Accordingly, these VIEs are consolidated. The following table presents the classification of the consolidated VIEs’ assets and liabilities in U.S. Cellular’s Consolidated Balance Sheet. September 30, December 31, 2015 2014 (Dollars in thousands) Assets Cash and cash equivalents $ 1,681 $ 2,588 Other current assets 175 278 Licenses (1) 648,661 312,977 Property, plant and equipment, net 8,635 10,671 Other assets and deferred charges 324 60,059 Total assets $ 659,476 $ 386,573 Liabilities Current liabilities $ 1 $ 110 Deferred liabilities and credits 494 622 Total liabilities $ 495 $ 732 (1) At September 30, 2015, includes payments totaling $338.3 million made by Advantage Spectrum to the FCC as described below. Other Related Matters In March 2015, King Street Wireless made a $ 60.0 million distribution to its investors. Of this distribution, $ 6.0 million was provided to King Street Wireless, Inc. and $ 54.0 million was provided to U.S. Cellular. FCC Auction 97 ended in Janua ry 2015. U.S. Cellular participated in Auction 97 indirectly through its interest in Advantage Spectrum. A subsidiary of U.S. Cellular is a limited partner in Advantage Spectrum. Advantage Spectrum qualified as a “designated entity,” and thereby was eli gible for bid credits with respect to spectrum purchased in Auction 97. Advantage Spectrum was the winning bidder for 124 licenses for an aggregate bid of $ 338.3 million, after its designated entity discount of 25 %. This amount is classified as Licenses in U.S. Cellular’s Consolidated Balance Sheet. Advantage Spectrum’s bid amount, less the initial deposit of $ 60.0 million paid in 2014, plus ce rtain other charges totaling $ 2.3 million, were paid to the FCC in March 2015. To help fund this payment, U.S. Cellular made loans and capital contributions to Advantage Spectrum and Frequency Advantage totaling $ 280.6 million during the nine months ended September 30, 2015 . There were no capital contributions, loans or advances made to U.S. Cellular’s VIEs during t he nine months ended September 30, 2014 . Advantage Spectrum, Aquinas Wireless and King Street Wireless were formed to participate in FCC auctions of wireless spectrum and t o fund, establish, and provide wireless service with respect to any FCC licenses won in the auctions. As such, these entities have risks similar to those described in the “Risk Factors” in U.S. Cellular’s Form 10-K for the year ended December 31, 2014 . U.S. Cellular may agree to make additional capital contributions and/or advances to Advantage Spectrum, Aquinas Wireless or King Street Wireless and/or to their general partners to provide additional funding for the d evelopment of licenses granted in various auctions. U.S. Cellular may finance such amounts with a combination of cash on hand, borrowings under its revolving credit agreement and/or other long-term debt. There is no assurance that U.S. Cellular will be ab le to obtain additional financing on commercially reasonable terms or at all to provide such financial support. During the three and nine-months ended September 30, 2015, U.S. Cellular recorded out-of-period adjustments attributable to the third quarter of 2013 through the second quarter of 2015 related to an agreement with King Street Wireless. U.S. Cellular has determined that these adjustments were not material to the prior quarterly or annual periods, and also were not material to the current period or anticipated full year 2015 results. As a result of these out-of-period adjustments, for the three and nine months ended September 30, 2015, Net income decreased by $ 3.2 million and $ 2.8 million, a nd Net income attributable to U.S. Cellular shareholders decreased by $ 4.5 million and $ 4.0 million, respectively.

Common Share Repurchases

Common Share Repurchases	9 Months Ended
	Sep. 30, 2015
Disclosure Text Block
Common Share Repurchases	11 . Common Share Repurchases On November 17, 2009, the Board of Directors of U.S. Cellular authorized the repurchase of up to 1,300,000 Common Shares on an annual basis beginning in 2009 and continuing each year thereafter, on a cumulative basis. These purchases will be made pursuant to open market purchases, block purchases, private purchases or otherwise, depending on market conditions . This authorization does not have an expiration date . Share repurchases made under this authorization were as follows: Nine Months Ended September 30, 2015 2014 (Dollar amounts and shares in thousands, except per share data) Number of shares 154 384 Average cost per share $ 34.85 $ 39.37 Amount $ 5,362 $ 15,124

Fair Value Measurements (Table)

Fair Value Measurements (Table)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures
Fair value measurements	Level within the Fair Value Hierarchy September 30, 2015 December 31, 2014 Book Value Fair Value Book Value Fair Value (Dollars in thousands) Cash and cash equivalents 1 $ 596,766 $ 596,766 $ 211,513 $ 211,513 Long-term debt Retail 2 617,000 624,267 617,000 608,462 Insti tutional 2 532,940 489,375 532,722 513,647 Other 2 216,562 217,371 – –

Equipment Installment Plans (Ta

Equipment Installment Plans (Table)	9 Months Ended
	Sep. 30, 2015
Equipment Installment Plans
Equipment installment plans	(Dollars in thousands) September 30, 2015 December 31, 2014 Short-term portion of unbilled equipment installment plan receivables, gross $ 245,218 $ 127,400 Short-term portion of unbilled deferred interest (18,504) (16,365) Short-term portion of unbilled allowance for credit losses (9,326) (3,686) Short-term portion of unbilled equipment installment plan receivables, net $ 217,388 $ 107,349 Long-term portion of unbilled equipment installment plan receivables, gross $ 66,512 $ 89,435 Long-term portion of unbilled deferred interest (819) (2,791) Long-term portion of unbilled allowance for credit losses (4,740) (6,065) Long-term portion of unbilled equipment installment plan receivables, net $ 60,953 $ 80,579

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share
Earnings per share	Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (Dollars and shares in thousands, except per share amounts) Net income (loss) attributable to U.S. Cellular shareholders $ 63,594 $ (22,165) $ 243,010 $ (21,472) Weighted average number of shares used in basic earnings (loss) per share 84,333 84,233 84,224 84,262 Effects of dilutive securities: Stock options 140 – 151 – Restricted stock units 474 – 494 – Weighted average number of shares used in diluted earnings (loss) per share 84,947 84,233 84,869 84,262 Basic earnings (loss) per share attributable to U.S. Cellular shareholders $ 0.75 $ (0.26) $ 2.89 $ (0.25) Diluted earnings (loss) per share attributable to U.S. Cellular shareholders $ 0.75 $ (0.26) $ 2.86 $ (0.25)
Summary of antidilutive shares	Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (Shares in thousands) Stock options 3,476 3,484 3,120 3,234 Restricted stock units 1 1,226 289 1,189

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2015
Licenses
Licenses	Licenses (Dollars in thousands) Balance December 31, 2014 $ 1,443,438 Acquisitions (1) 345,656 Exchanges (2) 43,485 Other 1,482 Balance September 30, 2015 $ 1,834,061 (1) Amount includes payments totaling $338.3 million made by Advantage Spectrum to the FCC for licenses in which it was the provisional winning bidder in Auction 97. See Note 6 — Acquisitions, Divestitures and Exchanges, and Note 10 — Variable Interest Entities for further information. (2) Amount represents licenses received in the March 2015 PCS license exchange. See Note 6 — Acquisitions, Divestitures and Exchanges for further information. Licenses disposed of in this exchange and the exchange that closed in July 2015 were previously removed from the Licenses balance and reflected in Assets held for sale in the Consolidated Balance Sheet as of December 31, 2014.

Investment in Unconsolidated En

Investment in Unconsolidated Entities (Tables)	9 Months Ended
	Sep. 30, 2015
Equity Method Investment, Summarized Financial Information
Equity method investments, summarized financial position	Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in thousands) Revenues $ 1,733,402 $ 1,643,734 $ 5,184,186 $ 4,861,057 Operating expenses 1,263,320 1,225,417 3,826,798 3,540,783 Operating income 470,082 418,317 1,357,388 1,320,274 Other income (loss), net (9,843) 1,651 (15,466) 4,077 Net income $ 460,239 $ 419,968 $ 1,341,922 $ 1,324,351

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	9 Months Ended
	Sep. 30, 2015
Variable Interest Entities VIEs
Consolidated VIE assets and liabilities	September 30, December 31, 2015 2014 (Dollars in thousands) Assets Cash and cash equivalents $ 1,681 $ 2,588 Other current assets 175 278 Licenses (1) 648,661 312,977 Property, plant and equipment, net 8,635 10,671 Other assets and deferred charges 324 60,059 Total assets $ 659,476 $ 386,573 Liabilities Current liabilities $ 1 $ 110 Deferred liabilities and credits 494 622 Total liabilities $ 495 $ 732 (1) At September 30, 2015, includes payments totaling $338.3 million made by Advantage Spectrum to the FCC as described below.

Common Share Repurchases (Table

Common Share Repurchases (Table)	9 Months Ended
	Sep. 30, 2015
Common Share Repurchases
Share repurchases	Nine Months Ended September 30, 2015 2014 (Dollar amounts and shares in thousands, except per share data) Number of shares 154 384 Average cost per share $ 34.85 $ 39.37 Amount $ 5,362 $ 15,124

Basis of Presentation (Details)

Basis of Presentation (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Basis of Presentation
Amounts recorded gross in revenues that are billed to customers and remitted to governmental authorities	$ 18.6	$ 23.1	$ 59.8	$ 74.8
Long-term notes
Basis of Presentation
Debt issuance costs, net	$ 27.2		$ 27.2
TDS
Basis of Presentation
TDS ownership of U.S. Cellular	84.00%		84.00%

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Financial Instruments
Cash and cash equivalents	$ 596,766	$ 211,513	$ 273,798	$ 342,065
Institutional
Financial Instruments
Fair value assumption, interest rate		7.25%
Institutional | Minimum
Financial Instruments
Fair value assumption, interest rate	2.88%
Institutional | Maximum
Financial Instruments
Fair value assumption, interest rate	7.73%
Fair Value | Level 1
Financial Instruments
Cash and cash equivalents	$ 596,766	$ 211,513
Fair Value | Level 2 | Retail
Financial Instruments
Long-term debt	624,267	608,462
Fair Value | Level 2 | Institutional
Financial Instruments
Long-term debt	489,375	513,647
Fair Value | Level 2 | Other
Financial Instruments
Long-term debt	217,371
Book Value
Financial Instruments
Cash and cash equivalents	596,766	211,513
Book Value | Retail
Financial Instruments
Long-term debt	617,000	617,000
Book Value | Institutional
Financial Instruments
Long-term debt	532,940	$ 532,722
Book Value | Other
Financial Instruments
Long-term debt	$ 216,562

Equipment Installment Plans (De

Equipment Installment Plans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Equipment installment plan receivables
Equipment installment plan payment period			24 months
Guarantee liability	$ 91,300		$ 91,300		$ 57,500
Accounting Changes And Error Corrections [Abstract]
Equipment sales	172,946	$ 149,356	461,274	$ 335,854
Income before income taxes	105,655	$ (25,230)	$ 411,135	$ (24,072)
Adjustment
Accounting Changes And Error Corrections [Abstract]
Immaterial Error Correction			U.S. Cellular recorded out-of-period adjustments during the nine months ended September 30, 2015 due to errors related to equipment installment plan transactions that were attributable to 2014.  U.S. Cellular has determined that these adjustments were not material to the prior quarterly or annual periods, and also were not material to the current period or anticipated full year 2015 results.  These equipment installment plan adjustments had the impact of reducing Equipment sales revenues by $6.2 million and Income before income taxes by $5.8 million for the nine months ended September 30, 2015. These adjustments were made in the first six months of 2015.
Equipment sales			$ 6,200
Income before income taxes			5,800
Short-term
Equipment installment plan receivables
Unbilled equipment installment plan receivables, gross	245,218		245,218		127,400
Unbilled deferred interest	(18,504)		(18,504)		(16,365)
Unbilled allowance for credit losses	(9,326)		(9,326)		(3,686)
Unbilled equipment installment plan receivables, net	217,388		217,388		107,349
Long-term
Equipment installment plan receivables
Unbilled equipment installment plan receivables, gross	66,512		66,512		89,435
Unbilled deferred interest	(819)		(819)		(2,791)
Unbilled allowance for credit losses	(4,740)		(4,740)		(6,065)
Unbilled equipment installment plan receivables, net	$ 60,953		$ 60,953		$ 80,579

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure
Effective income tax rate	38.50%	39.20%
Deferred tax asset valuation allowance | State
Valuation Allowance
Increase (decrease) in valuation allowance			$ 6.4

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings per share
Net income (loss) attributable to U.S. Cellular shareholders	$ 63,594	$ (22,165)	$ 243,010	$ (21,472)
Weighted average number of shares used in basic earnings (loss) per share
Weighted average number of shares used in basic earnings (loss) per share	84,333	84,233	84,224	84,262
Effects of dilutive securities:
Stock options	140		151
Restricted stock units	474		494
Weighted average number of shares used in diluted earnings (loss) per share	84,947	84,233	84,869	84,262
Earnings per share, Other disclosures
Basic earnings (loss) per share attributable to U.S. Cellular shareholders	$ 0.75	$ (0.26)	$ 2.89	$ (0.25)
Diluted earnings (loss) per share attributable to U.S. Cellular shareholders	$ 0.75	$ (0.26)	$ 2.86	$ (0.25)
Stock Options
Earnings per share, Other disclosures
Antidilutive securities	3,476	3,484	3,120	3,234
Restricted Stock Units
Earnings per share, Other disclosures
Antidilutive securities	1	1,226	289	1,189

Acquisitions, Divestitures an31

Acquisitions, Divestitures and Exchanges, acquisitions (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Acquisitions, divestitures and exchanges
Total winning bid	$ 338.3
License Acquisitions | Auction 97
Acquisitions, divestitures and exchanges
Description of acquired entity	An FCC auction of AWS-3 spectrum licenses (“Auction 97”) ended in January 2015.  U.S. Cellular participated in Auction 97 indirectly through its limited partnership interest in Advantage Spectrum L.P. (“Advantage Spectrum”). Advantage Spectrum was the provisional winning bidder for 124 licenses for an aggregate winning bid of $338.3 million, after its designated entity discount of 25%.  Advantage Spectrum’s bid amount, less the initial deposit amount of $60.0 million paid in 2014, was paid to the FCC in March 2015.  These licenses have not yet been granted by the FCC.  See Note 10 — Variable Interest Entities for additional information.
Federal Communications Commission deposit		$ 60
Licenses won	124
Total winning bid	$ 338.3
Designated entity auction discount	25.00%

Acquisitions, Divestitures an32

Acquisitions, Divestitures and Exchanges, divestitures (Details) $ in Thousands	May. 16, 2013USD ($)	Jan. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Divestiture Financial Impacts
Cash received from divestitures and exchanges						$ 314,352	$ 143,801
(Gain) loss on sale of business and other exit costs, net				$ (643)	$ (10,283)	$ (113,825)	(27,694)
Divestiture transaction
Divestitures
Business divestiture description						On May 16, 2013, pursuant to a Purchase and Sale Agreement, U.S. Cellular sold customers and certain PCS spectrum licenses to subsidiaries of Sprint Corp. fka Sprint Nextel Corporation (“Sprint”) in U.S. Cellular’s Chicago, central Illinois, St. Louis and certain Indiana/Michigan/Ohio markets (“Divestiture Markets”) in consideration for $480 million in cash. The Purchase and Sale Agreement also contemplated certain other agreements, together with the Purchase and Sale Agreement collectively referred to as the “Divestiture Transaction.” These agreements require Sprint to reimburse U.S. Cellular up to $200 million (the “Sprint Cost Reimbursement”) for certain network decommissioning costs, network site lease rent and termination costs, network access termination costs, and employee termination benefits for specified engineering employees.
Divestiture Financial Impacts
Cash received from divestitures and exchanges	$ 480,000
(Gain) loss on sale of business and other exit costs, net				$ (300)	$ (10,400)	$ (6,200)	(28,100)
Tower sale
Divestitures
Business divestiture description						In December 2014, U.S. Cellular entered into an agreement with a third party to sell 595 towers and certain related contracts, assets, and liabilities for $159.0 million.  This agreement and related transactions are referred to as the “Tower Sale” and were accomplished in two closings.  The first closing occurred in December 2014 and included the sale of 236 towers, without tenants, for $10.0 million.  On this same date, U.S. Cellular received $7.5 million in earnest money.  At the time of the first closing, a $3.8 million gain was recorded.  The second closing for the remaining 359 towers, primarily with tenants, took place in January 2015, at which time U.S. Cellular received $141.5 million in additional cash proceeds and recorded a gain of $107.7 million in (Gain) loss on sale of business and other exit costs, net.
Number of towers				595		595		595
Divestiture Financial Impacts
Cash received from divestitures and exchanges						$ 159,000
Tower sale - first closing
Divestitures
Number of towers			236
Divestiture Financial Impacts
Cash received from divestitures and exchanges			$ 10,000
(Gain) loss on sale of business and other exit costs, net			(3,800)
Tower sale - second closing
Divestitures
Number of towers		359
Divestiture Financial Impacts
Cash received from divestitures and exchanges		$ 141,500
(Gain) loss on sale of business and other exit costs, net		$ (107,700)
Sprint Cost Reimbursement | Divestiture transaction
Divestiture Financial Impacts
Cash received from divestitures and exchanges						$ 27,600	$ 52,000	$ 109,300
Sprint Cost Reimbursement | Maximum | Expected event | Divestiture transaction
Divestiture Financial Impacts
Cash received from divestitures and exchanges									$ 200,000
Earnest money received | Tower sale - first closing
Divestiture Financial Impacts
Cash received from divestitures and exchanges			$ 7,500

Acquisitions, Divestitures an33

Acquisitions, Divestitures and Exchanges, exchanges (Details) - USD ($) $ in Thousands	1 Months Ended			3 Months Ended	9 Months Ended
	Jul. 31, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2014
Exchanges
(Gain) loss on license sales and exchanges, net				$ (23,986)	$ (146,884)	$ (91,446)
Cash received from divestitures and exchanges					314,352	$ 143,801
Other current liabilities			$ 149,853	92,617	$ 92,617
PCS and AWS license exchange
Exchanges
Asset exchange description					In September 2014, U.S. Cellular entered into an agreement with a third party to exchange certain PCS and AWS licenses for certain other PCS and AWS licenses and $28.0 million of cash.  This license exchange was accomplished in two closings.  The first closing occurred in December 2014 at which time U.S. Cellular received licenses with an estimated fair value, per a market approach, of $51.5 million, recorded a $21.7 million gain and recorded an $18.3 million deferred credit in Other current liabilities. The license that was transferred to the counterparty in the second closing had a net book value of $22.2 million.  The second closing occurred in July 2015.  At the time of the second closing, U.S. Cellular received $28.0 million in cash and recognized the deferred credit from the first closing, resulting in a total gain of $24.1 million recorded on this part of the license exchange.
PCS and AWS license exchange - first closing
Exchanges
(Gain) loss on license sales and exchanges, net			(21,700)
Fair value			51,500
Other current liabilities			$ 18,300
PCS and AWS license exchange - second closing
Exchanges
(Gain) loss on license sales and exchanges, net	$ (24,100)
Cash received from divestitures and exchanges	$ 28,000
Licenses				$ 22,200	$ 22,200
PCS license exchange
Exchanges
Asset exchange description					In March 2015, U.S. Cellular exchanged certain of its unbuilt PCS licenses for certain other PCS licenses located in U.S. Cellular’s existing operating markets and $117.0 million of cash.  As of the transaction date, the licenses received in the transaction had an estimated fair value, per a market approach, of $43.5 million.  A gain of $125.2 million was recorded in (Gain) loss on license sales and exchanges, net in the Consolidated Statement of Operations in the first quarter of 2015.
(Gain) loss on license sales and exchanges, net		$ (125,200)
Fair value		43,500
Cash received from divestitures and exchanges		$ 117,000

Intangible Assets (Details)

Intangible Assets (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Licenses
Balance, beginning of period	$ 1,443,438
Acquisitions	345,656	[1]
Exchanges	43,485	[2]
Other	1,482
Balance, end of period	1,834,061
Total winning bid	$ 338,300
[1]	Amount includes payments totaling $338.3 million made by Advantage Spectrum to the FCC for licenses in which it was the provisional winning bidder in Auction 97. See Note 6 — Acquisitions, Divestitures and Exchanges, and Note 10 — Variable Interest Entities for further information.
[2]	Amount represents licenses received in the March 2015 PCS license exchange. See Note 6 — Acquisitions, Divestitures and Exchanges for further information. Licenses disposed of in this exchange and the exchange that closed in July 2015 were previously removed from the Licenses balance and reflected in Assets held for sale in the Consolidated Balance Sheet as of December 31, 2014.

Investments in Unconsolidated35

Investments in Unconsolidated Entities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Equity method investments, combined income statements
Revenues	$ 1,733,402	$ 1,643,734	$ 5,184,186	$ 4,861,057
Operating expenses	1,263,320	1,225,417	3,826,798	3,540,783
Operating income	470,082	418,317	1,357,388	1,320,274
Other income (loss), net	(9,843)	1,651	(15,466)	4,077
Net income	$ 460,239	$ 419,968	$ 1,341,922	$ 1,324,351

Debt, term loan facility (Detai

Debt, term loan facility (Details) - U.S. Cellular Term loan facility - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2016
Term loan
Maturity date	Jan. 21, 2022
Proceeds from Term Loan borrowings	$ 225
Frequency of periodic Term Loan payment	quarterly
Contractual spread	2.50%
Interest rate on debt	2.88%
Expected event
Term loan
Term Loan periodic payment amount		$ 2.8

Variable Interest Entities (Det

Variable Interest Entities (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended			9 Months Ended			12 Months Ended
	Mar. 31, 2015	Sep. 30, 2015		Sep. 30, 2014	Sep. 30, 2015		Sep. 30, 2014	Dec. 31, 2014	Dec. 31, 2013
Assets
Cash and cash equivalents		$ 596,766		$ 273,798	$ 596,766		$ 273,798	$ 211,513	$ 342,065
Other current assets		18,730			18,730			90,834
Licenses		1,834,061			1,834,061			1,443,438
Property, plant and equipment, net		2,608,438			2,608,438			2,728,217
Other assets and deferred charges		187,268			187,268			276,218
Liabilities
Current liabilities		886,552			886,552			856,894
Variable Interest Entities, Other Disclosures
Total winning bid		338,300			338,300
Accounting Changes And Error Corrections [Abstract]
Net income (loss)		65,021		(23,771)	249,921		(24,818)
Net income (loss) attributable to U.S. Cellular shareholders		63,594		$ (22,165)	$ 243,010		$ (21,472)
Adjustment
Accounting Changes And Error Corrections [Abstract]
Immaterial Error Correction					U.S. Cellular recorded out-of-period adjustments during the nine months ended September 30, 2015 due to errors related to equipment installment plan transactions that were attributable to 2014.  U.S. Cellular has determined that these adjustments were not material to the prior quarterly or annual periods, and also were not material to the current period or anticipated full year 2015 results.  These equipment installment plan adjustments had the impact of reducing Equipment sales revenues by $6.2 million and Income before income taxes by $5.8 million for the nine months ended September 30, 2015. These adjustments were made in the first six months of 2015.
Variable Interest Entities (VIE's)
Assets
Cash and cash equivalents		1,681			$ 1,681			2,588
Other current assets		175			175			278
Licenses		648,661	[1]		648,661	[1]		312,977
Property, plant and equipment, net		8,635			8,635			10,671
Other assets and deferred charges		324			324			60,059
Total assets		659,476			659,476			386,573
Liabilities
Current liabilities		1			1			110
Deferred liabilities and credits		494			494			622
Total liabilities		495			495			732
Variable Interest Entities, Other Disclosures
Capital contributions, loans or advances					280,600
Advantage Spectrum L.P.
Variable Interest Entities, Other Disclosures
Federal Communications Commission deposit								$ 60,000
Total winning bid		338,300			338,300
Other auction charges		$ 2,300			$ 2,300
Designated entity auction discount		25.00%			25.00%
Licenses won		124			124
King Street Wireless L.P.
Variable Interest Entities, Other Disclosures
Cash distributions paid	$ 60,000
King Street Wireless, L.P. distribution paid to U.S. Cellular	54,000
King Street Wireless, L.P. distribution paid to King Street Wireless, Inc.	$ 6,000
King Street Wireless L.P. | Adjustment
Accounting Changes And Error Corrections [Abstract]
Immaterial Error Correction					During the three and nine-months ended September 30, 2015, U.S. Cellular recorded out-of-period adjustments attributable to the third quarter of 2013 through the second quarter of 2015 related to an agreement with King Street Wireless.  U.S. Cellular has determined that these adjustments were not material to the prior quarterly or annual periods, and also were not material to the current period or anticipated full year 2015 results.  As a result of these out-of-period adjustments, for the three and nine months ended September 30, 2015, Net income decreased by $3.2 million and $2.8 million, and Net income attributable to U.S. Cellular shareholders decreased by $4.5 million and $4.0 million, respectively.
Net income (loss)		$ 3,200			$ 2,800
Net income (loss) attributable to U.S. Cellular shareholders		$ 4,500			$ 4,000
[1]	At September 30, 2015, includes payments totaling $338.3 million made by Advantage Spectrum to the FCC as described below.

Common Share Repurchases (Detai

Common Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Share repurchases
Amount	$ 5,362	$ 15,124
Treasury Shares
Share repurchases
Amount	$ 5,362	$ 15,124
Common Shares | Treasury Shares
Share repurchases
Number of shares acquired	154,000	384,000
Average cost per share	$ 34.85	$ 39.37
Amount	$ 5,362	$ 15,124
Common share repurchase authorization	On November 17, 2009, the Board of Directors of U.S. Cellular authorized the repurchase of up to 1,300,000 Common Shares on an annual basis beginning in 2009 and continuing each year thereafter, on a cumulative basis. These purchases will be made pursuant to open market purchases, block purchases, private purchases or otherwise, depending on market conditions. This authorization does not have an expiration date.
Repurchase authorization, additional number of shares	1,300,000
Repurchase expiration	does not have an expiration date