United States Cellular Corporat (UZD) 10-Q 31 Oct 19 2019 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information	9 Months Ended
	Sep. 30, 2019shares
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	001-09712
Entity Registrant Name	UNITED STATES CELLULAR CORPORATION
Entity Central Index Key	0000821130
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	62-1147325
Entity Address, Address Line One	8410 West Bryn Mawr
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60631
City Area Code	(773)
Local Phone Number	399-8900
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Smaller Reporting Company	false
Emerging Growth Company	false
Entity Shell Company	false
Common Shares
Title of 12(b) Security	Common Shares, $1 par value
Trading Symbol	USM
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding	53,140,600
6.95% Senior Notes
Title of 12(b) Security	6.95% Senior Notes due 2060
Trading Symbol	UZA
Security Exchange Name	NYSE
7.25% 2063 Senior Notes
Title of 12(b) Security	7.25% Senior Notes due 2063
Trading Symbol	UZB
Security Exchange Name	NYSE
7.25% 2064 Senior Notes
Title of 12(b) Security	7.25% Senior Notes due 2064
Trading Symbol	UZC
Security Exchange Name	NYSE
Series A Common Shares
Entity Common Stock, Shares Outstanding	33,005,900

Consolidated Statement of Opera

Consolidated Statement of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Operating revenues
Total operating revenues	$ 1,031	$ 1,001	$ 2,970	$ 2,916
Operating expenses
Selling, general and administrative (including charges from affiliates of $22 million and $20 million, respectively, for the three months, and $61 million, and $60 million, respectively, for the nine months)	358	346	1,027	1,014
Depreciation, amortization and accretion	181	160	524	478
(Gain) loss on asset disposals, net	5	3	13	5
(Gain) loss on sale of business and other exit costs, net	0	0	(1)	0
(Gain) loss on license sales and exchanges, net	2	0	0	(18)
Total operating expenses	1,011	967	2,855	2,761
Operating income	20	34	115	155
Investment and other income (expense)
Equity in earnings of unconsolidated entities	44	42	128	120
Interest and dividend income	4	4	14	10
Interest expense	(29)	(29)	(87)	(87)
Total investment and other income	19	17	55	43
Income before income taxes	39	51	170	198
Income tax expense	15	14	55	55
Net income	24	37	115	143
Less: Net income attributable to noncontrolling interests, net of tax	1	1	6	14
Net income attributable to U.S. Cellular shareholders	$ 23	$ 36	$ 109	$ 129
Basic weighted average shares outstanding (in shares)	86	86	87	85
Basic earnings per share attributable to U.S. Cellular shareholders (USD per share)	$ 0.27	$ 0.42	$ 1.26	$ 1.51
Diluted weighted average shares outstanding (in shares)	88	87	88	86
Diluted earnings per share attributable to U.S. Cellular shareholders (USD per share)	$ 0.27	$ 0.41	$ 1.24	$ 1.49
Service
Operating revenues
Total operating revenues	$ 774	$ 759	$ 2,272	$ 2,224
Operating expenses
Cost of equipment sold	199	200	568	566
Equipment sales
Operating revenues
Total operating revenues	257	242	698	692
Operating expenses
Cost of equipment sold	$ 266	$ 258	$ 724	$ 716

Consolidated Statement of Ope_2

Consolidated Statement of Operations (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Operating expenses
Selling, general and administrative, charges from affiliates	$ 22	$ 20	$ 61	$ 60

Consolidated Statement of Cash

Consolidated Statement of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities
Net income	$ 115	$ 143
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities
Depreciation, amortization and accretion	524	478
Bad debts expense	77	67
Stock-based compensation expense	32	26
Deferred income taxes, net	(34)	(4)
Equity in earnings of unconsolidated entities	(128)	(120)
Distributions from unconsolidated entities	99	90
(Gain) loss on asset disposals, net	13	5
(Gain) loss on sale of business and other exit costs, net	(1)	0
(Gain) loss on license sales and exchanges, net	0	(18)
Other operating activities	3	2
Changes in assets and liabilities from operations
Accounts receivable	(35)	(1)
Equipment installment plans receivable	(42)	(88)
Inventory	3	15
Accounts payable	(4)	21
Customer deposits and deferred revenues	(1)	(5)
Accrued taxes	81	1
Accrued interest	9	9
Other assets and liabilities	(24)	(21)
Net cash provided by operating activities	687	600
Cash flows from investing activities
Cash paid for additions to property, plant and equipment	(439)	(277)
Cash paid for licenses	(257)	(2)
Cash received from investments	29	50
Cash paid for investments	(11)	0
Cash received from divestitures and exchanges	32	23
Other investing activities	(1)	3
Net cash used in investing activities	(647)	(203)
Cash flows from financing activities
Repayment of long-term debt	(14)	(14)
Common Shares reissued for benefit plans, net of tax payments	(8)
Common Shares reissued for benefit plans, net of tax payments		7
Repurchase of Common Shares	(21)	0
Distributions to noncontrolling interests	(3)	(5)
Other financing activities	(2)	(5)
Net cash used in financing activities	(48)	(17)
Net increase (decrease) in cash, cash equivalents and restricted cash	(8)	380
Cash, cash equivalents and restricted cash
Beginning of period	583	352
End of period	$ 575	$ 732

Consolidated Balance Sheet

Consolidated Balance Sheet - USD ($) $ in Millions		Sep. 30, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents		$ 570	$ 580
Short-term investments		0	17
Accounts receivable
Customers and agents, less allowances of $69 and $66, respectively		899	908
Roaming		34	20
Affiliated		0	2
Other, less allowances of $1 and $2, respectively		60	46
Inventory, net		139	142
Prepaid expenses		49	63
Other current assets		19	34
Total current assets		1,770	1,812
Assets held for sale		9	54
Licenses		2,461	2,186
Investments in unconsolidated entities		471	441
Property, plant and equipment
In service and under construction		8,088	7,778
Less: Accumulated depreciation and amortization		5,944	5,576
Property, plant and equipment, net		2,144	2,202
Operating lease right-of-use assets		897	0
Other assets and deferred charges		539	579
Total assets	[1]	8,291	7,274
Current liabilities
Current portion of long-term debt		19	19
Accounts payable
Affiliated		8	9
Trade		329	304
Customer deposits and deferred revenues		155	157
Accrued taxes		88	30
Accrued compensation		68	78
Short-term operating lease liabilities		104	0
Other current liabilities		78	94
Total current liabilities		849	691
Liabilities held for sale		1	1
Deferred liabilities and credits
Deferred income tax liability, net		477	510
Long-term operating lease liabilities		864	0
Other deferred liabilities and credits		312	389
Long-term debt, net		1,592	1,605
Commitments and contingencies
Noncontrolling interests with redemption features		11	11
U.S. Cellular shareholders’ equity
Series A Common and Common Shares Authorized 190 shares (50 Series A Common and 140 Common Shares) Issued 88 shares (33 Series A Common and 55 Common Shares) Outstanding 86 shares (33 Series A Common and 53 Common Shares) Par Value ($1.00 per share) ($33 Series A Common and $55 Common Shares)		88	88
Additional paid-in capital		1,622	1,590
Treasury shares, at cost, 2 Common Shares		(70)	(65)
Retained earnings		2,532	2,444
Total U.S. Cellular shareholders' equity		4,172	4,057
Noncontrolling interests		13	10
Total equity		4,185	4,067
Total liabilities and equity	[1]	$ 8,291	$ 7,274
[1]	The consolidated total assets as of September 30, 2019 and December 31, 2018 , include assets held by consolidated variable interest entities (VIEs) of $ 927 million and $ 868 million, respectively, which are not available to be used to settle the obligations of U.S. Cellular. The consolidated total liabilities as of September 30, 2019 and December 31, 2018 , include certain liabilities of consolidated VIEs of $ 20 million and $ 23 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of U.S. Cellular. See Note 10 — Variable Interest Entities for additional information.

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Accounts receivable
Customer and agent allowances	$ 69	$ 66
Other allowances	$ 1	$ 2
U.S. Cellular shareholders’ equity
Authorized shares (in shares)	190,000,000	190,000,000
Issued shares (in shares)	88,000,000	88,000,000
Outstanding shares (in shares)	86,000,000	86,000,000
Par value	$ 88	$ 88
Variable Interest Entities VIEs
Total VIE assets that can be used to settle only the VIEs' obligations	927	868
Total VIE liabilities for which creditors have no recourse	$ 20	$ 23
Series A Common Shares
U.S. Cellular shareholders’ equity
Authorized shares (in shares)	50,000,000	50,000,000
Issued shares (in shares)	33,000,000	33,000,000
Outstanding shares (in shares)	33,000,000	33,000,000
Par value per share (USD per share)	$ 1	$ 1
Par value	$ 33	$ 33
Common Shares
U.S. Cellular shareholders’ equity
Authorized shares (in shares)	140,000,000	140,000,000
Issued shares (in shares)	55,000,000	55,000,000
Outstanding shares (in shares)	53,000,000	53,000,000
Par value per share (USD per share)	$ 1	$ 1
Par value	$ 55	$ 55
Treasury shares (in shares)	2,000,000	2,000,000

Consolidated Statement of Chang

Consolidated Statement of Changes in Equity - USD ($) $ in Millions	Total	Series A Common and Common shares	Additional paid-in capital	Treasury shares	Retained earnings	Total U.S. Cellular shareholders' equity	Noncontrolling interests
Cumulative effect of accounting change	$ 174				$ 173	$ 173	$ 1
Beginning balance at Dec. 31, 2017	3,687	$ 88	$ 1,552	$ (120)	2,157	3,677	10
Net income attributable to U.S. Cellular shareholders	129				129	129
Net income attributable to noncontrolling interests classified as equity	2					0	2
Incentive and compensation plans	7			36	(29)	7
Stock-based compensation awards	26		26			26
Distributions to noncontrolling interests	(2)					0	(2)
Ending balance at Sep. 30, 2018	4,023	88	1,578	(84)	2,430	4,012	11
Beginning balance at Jun. 30, 2018	3,971	88	1,569	(99)	2,402	3,960	11
Net income attributable to U.S. Cellular shareholders	36				36	36
Net income attributable to noncontrolling interests classified as equity	1					0	1
Incentive and compensation plans	7			15	(8)	7
Stock-based compensation awards	9		9			9
Distributions to noncontrolling interests	(1)					0	(1)
Ending balance at Sep. 30, 2018	4,023	88	1,578	(84)	2,430	4,012	11
Cumulative effect of accounting change	2				2	2
Beginning balance at Dec. 31, 2018	4,067	88	1,590	(65)	2,444	4,057	10
Net income attributable to U.S. Cellular shareholders	109				109	109
Net income attributable to noncontrolling interests classified as equity	5					0	5
Repurchase of Common Shares	(21)			(21)		(21)
Incentive and compensation plans	(8)		(1)	16	(23)	(8)
Stock-based compensation awards	33		33			33
Distributions to noncontrolling interests	(2)					0	(2)
Ending balance at Sep. 30, 2019	4,185	88	1,622	(70)	2,532	4,172	13
Beginning balance at Jun. 30, 2019	4,175	88	1,615	(50)	2,509	4,162	13
Net income attributable to U.S. Cellular shareholders	23				23	23
Repurchase of Common Shares	(21)			(21)		(21)
Incentive and compensation plans	1			1	0	1
Stock-based compensation awards	7		7			7
Ending balance at Sep. 30, 2019	$ 4,185	$ 88	$ 1,622	$ (70)	$ 2,532	$ 4,172	$ 13

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Note 1 Basis of Presentation United States Cellular Corporation (U.S. Cellular), a Delaware Corporation, is an 82% -owned subsidiary of Telephone and Data Systems, Inc. (TDS). The accounting policies of U.S. Cellular 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 U.S. Cellular, subsidiaries in which 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 intercompany accounts and transactions have been eliminated. The unaudited consolidated financial statements included herein have been prepared by U.S. Cellular 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, U.S. Cellular 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 U.S. Cellular’s Annual Report on Form 10-K (Form 10-K) for the year ended December 31, 2018 . The accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring items, unless otherwise disclosed) necessary for the fair statement of U.S. Cellular’s financial position as of September 30, 2019 and December 31, 2018 , its results of operations and changes in equity for the three and nine months ended September 30, 2019 and 2018 , and its cash flows for the nine months ended September 30, 2019 and 2018 . The Consolidated Statement of Comprehensive Income was not included because comprehensive income for the three and nine months ended September 30, 2019 and 2018 , equaled net income. These results are not necessarily indicative of the results to be expected for the full year. U.S. Cellular has not changed its significant accounting and reporting policies from those disclosed in its Form 10-K for the year ended December 31, 2018 , except as disclosed in Note 8 — Leases . Restricted Cash U.S. Cellular presents restricted cash with cash and cash equivalents in the Consolidated Statement of Cash Flows. The following table provides a reconciliation of Cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheet to the total of the amounts in the Consolidated Statement of Cash Flows as of September 30, 2019 and December 31, 2018 . September 30, 2019 December 31, 2018 (Dollars in millions) Cash and cash equivalents $ 570 $ 580 Restricted cash included in Other current assets 5 3 Cash, cash equivalents and restricted cash in the statement of cash flows $ 575 $ 583 Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 requires entities to use a new forward-looking, expected loss model to estimate credit losses. It also requires additional disclosure relating to the credit quality of trade and other receivables, including information relating to management’s estimate of credit allowances. U.S. Cellular is required to adopt ASU 2016-13 on January 1, 2020, using the modified retrospective approach. Early adoption is permitted; however, U.S. Cellular does not intend to adopt early. The adoption of ASU 2016-13 is not expected to have a significant impact on U.S. Cellular's financial position or results of operations.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Note 2 Revenue Recognition Disaggregation of Revenue In the following table, revenue is disaggregated by type of service and timing of revenue recognition. Service revenues are recognized over time and Equipment sales are point in time. Three Months Ended Nine Months Ended 2019 2018 2019 2018 (Dollars in millions) Revenues from contracts with customers: Retail service $ 663 $ 659 $ 1,984 $ 1,960 Inbound roaming 54 50 132 116 Other service 34 34 101 99 Service revenues from contracts with customers 751 743 2,217 2,175 Equipment sales 257 242 698 692 Total revenues from contracts with customers 1 $ 1,008 $ 985 $ 2,915 $ 2,867 1 Revenue line items in this table will not agree to amounts presented in the Consolidated Statement of Operations as the amounts in this table only include revenue resulting from contracts with customers. Contract Balances The accounts receivable balance related to amounts billed and not paid on contracts with customers, net of allowances, is shown in the table below. September 30, 2019 December 31, 2018 (Dollars in millions) Accounts receivable Customer and agents $ 899 $ 908 Roaming 34 20 Other 56 32 Total 1 $ 989 $ 960 1 Accounts receivable line items presented in this table will not agree to amounts presented in the Consolidated Balance Sheet as the amounts in this table only include receivables resulting from contracts with customers. The following table provides a rollforward of contract assets from contracts with customers, which are recorded in Other current assets and Other assets and deferred charges in the Consolidated Balance Sheet. Contract Assets (Dollars in millions) Balance at December 31, 2018 $ 9 Contract additions 9 Reclassified to receivables (11 ) Balance at September 30, 2019 $ 7 The following table provides a rollforward of contract liabilities from contracts with customers, which are recorded in Customer deposits and deferred revenues and Other deferred liabilities and credits in the Consolidated Balance Sheet. Contract Liabilities (Dollars in millions) Balance at December 31, 2018 1 $ 147 Contract additions 78 Terminated contracts (6 ) Revenue recognized (61 ) Balance at September 30, 2019 $ 158 1 The Balance at December 31, 2018 differs from the amount reported in Note 2 — Revenue Recognition of the 2018 Form 10-K, as the previously reported amount included certain lease-related balances that did not result from contracts with customers. 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 wireless 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 September 30, 2019 , and may vary from actual results. As a practical expedient, revenue related to contracts of less than one year, generally month-to-month contracts, are excluded from these estimates. Service Revenues (Dollars in millions) Remainder of 2019 $ 119 2020 111 Thereafter 237 Total $ 467 U.S. Cellular has certain contracts in which it bills an amount equal to a fixed per-unit price multiplied by a variable quantity (e.g., certain roaming agreements with other carriers). Because U.S. Cellular invoices for such items in an amount that corresponds directly with the value of the performance completed to date, U.S. Cellular may recognize revenue in that amount. As a practical expedient, these contracts are excluded from the estimate of future revenues expected to be recognized related to performance obligations that are unsatisfied as of the end of a reporting period. Contract Cost Assets U.S. Cellular expects that incremental commission fees paid as a result of obtaining contracts are recoverable and therefore U.S. Cellular capitalizes these costs. As a practical expedient, costs with an amortization period of one year or less are not capitalized. The contract cost asset balance related to commission fees was $130 million at September 30, 2019 , and $139 million at December 31, 2018 , and was recorded in Other assets and deferred charges in the Consolidated Balance Sheet. Capitalized commission fees are amortized based on the timing of transfer of the goods or services to which the assets relate, typically the contract term which ranges from fifteen months to thirty months . Amortization of contract cost assets was $27 million and $82 million for the three and nine months ended September 30, 2019 , respectively, and $27 million and $81 million for the three and nine months ended September 30, 2018

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 3 Fair Value Measurements As of September 30, 2019 and December 31, 2018 , U.S. Cellular 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. U.S. Cellular has applied the provisions of fair value accounting for purposes of computing the fair value of financial instruments for disclosure purposes as displayed below. September 30, 2019 December 31, 2018 Level within the Fair Value Hierarchy Book Value Fair Value Book Value Fair Value (Dollars in millions) Cash and cash equivalents 1 $ 570 $ 570 $ 580 $ 580 Short-term investments 1 — — 17 17 Long-term debt Retail 2 917 953 917 850 Institutional 2 534 583 534 531 Other 2 172 172 180 180 The fair values of Cash and cash equivalents and Short-term investments approximate their book values due to the short-term nature of these financial instruments. Long-term debt excludes lease obligations, other installment arrangements, the current portion of Long-term debt and debt financing costs. The fair value of “Retail” Long-term debt was estimated using market prices for the 7.25% 2063 Senior Notes, 7.25% 2064 Senior Notes and 6.95% 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 agreement. 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 3.80% to 5.96% and 5.03% to 6.97% at September 30, 2019 and December 31, 2018 , respectively.

Equipment Installment Plans

Equipment Installment Plans	9 Months Ended
	Sep. 30, 2019
Receivables [Abstract]
Equipment Installment Plans	Note 4 Equipment Installment Plans U.S. Cellular 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. U.S. Cellular values this trade-in right as a guarantee liability. The guarantee liability is initially measured at fair value and is determined based on assumptions including the probability and timing of the customer upgrading to a new device and the fair value of the device being traded-in at the time of trade-in. When a customer exercises the trade-in option, both the outstanding receivable and guarantee liability balances related to the respective device are reduced to zero, and the value of the used device that is received in the transaction is recognized as inventory. If the customer does not exercise the trade-in option at the time of eligibility, U.S. Cellular begins amortizing the liability and records this amortization as additional equipment revenue. As of September 30, 2019 and December 31, 2018 , the guarantee liability related to these plans was $9 million and $11 million , respectively, and is reflected in Customer deposits and deferred revenues in the Consolidated Balance Sheet. The following table summarizes equipment installment plan receivables as of September 30, 2019 and December 31, 2018 . September 30, 2019 December 31, 2018 (Dollars in millions) Equipment installment plan receivables, gross $ 975 $ 974 Allowance for credit losses (82 ) (77 ) Equipment installment plan receivables, net $ 893 $ 897 Net balance presented in the Consolidated Balance Sheet as: Accounts receivable — Customers and agents (Current portion) $ 574 $ 560 Other assets and deferred charges (Non-current portion) 319 337 Equipment installment plan receivables, net $ 893 $ 897 U.S. Cellular 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. Customers assigned to credit classes requiring no down payment represent a lower risk category, whereas those assigned to credit classes requiring a down payment represent a higher risk category. The balance and aging of the equipment installment plan receivables on a gross basis by credit category were as follows: September 30, 2019 December 31, 2018 Lower Risk Higher Risk Total Lower Risk Higher Risk Total (Dollars in millions) Unbilled $ 898 $ 9 $ 907 $ 904 $ 17 $ 921 Billed — current 44 1 45 35 1 36 Billed — past due 21 2 23 15 2 17 Equipment installment plan receivables, gross $ 963 $ 12 $ 975 $ 954 $ 20 $ 974 Activity for the nine months ended September 30, 2019 and 2018 , in the allowance for credit losses for equipment installment plan receivables was as follows: September 30, 2019 September 30, 2018 (Dollars in millions) Allowance for credit losses, beginning of period $ 77 $ 65 Bad debts expense 60 49 Write-offs, net of recoveries (55 ) (41 ) Allowance for credit losses, end of period $ 82 $ 73

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Earnings Per Share	Note 5 Earnings Per Share Basic earnings per share attributable to U.S. Cellular shareholders is computed by dividing Net income attributable to U.S. Cellular shareholders by the weighted average number of Common Shares outstanding during the period. Diluted earnings per share attributable to U.S. Cellular shareholders is computed by dividing Net income attributable to 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 upon the exercise of outstanding stock options and the vesting of performance and restricted stock units. The amounts used in computing earnings per common share and the effects of potentially dilutive securities on the weighted average number of Common Shares were as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (Dollars and shares in millions, except per share amounts) Net income attributable to U.S. Cellular shareholders $ 23 $ 36 $ 109 $ 129 Weighted average number of shares used in basic earnings per share 86 86 87 85 Effects of dilutive securities 2 1 1 1 Weighted average number of shares used in diluted earnings per share 88 87 88 86 Basic earnings per share attributable to U.S. Cellular shareholders $ 0.27 $ 0.42 $ 1.26 $ 1.51 Diluted earnings per share attributable to U.S. Cellular shareholders $ 0.27 $ 0.41 $ 1.24 $ 1.49 Certain Common Shares issuable upon the exercise of stock options or vesting of performance and restricted stock units were not included in average diluted shares outstanding for the calculation of Diluted earnings per share attributable to U.S. Cellular shareholders because their effects were antidilutive. The number of such Common Shares excluded was 1 million and less than 1 million for the three and nine months ended September 30, 2019 , respectively, and 2 million and 3 million for the three and nine months ended September 30, 2018 , respectively.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Note 6 Intangible Assets Activity related to Licenses for the nine months ended September 30, 2019 , is presented below: Licenses (Dollars in millions) Balance at December 31, 2018 $ 2,186 Acquisitions 259 Transferred to Assets held for sale (10 ) Exchanges - Licenses received 26 Balance at September 30, 2019 $ 2,461 In June 2019, the FCC announced by way of public notice that U.S. Cellular was the provisional winning bidder for 408 wireless spectrum licenses in its 28 GHz auction (Auction 101) and 282 wireless spectrum licenses in its 24 GHz auction (Auction 102) for an aggregate purchase price of $256 million. U.S. Cellular paid substantially all of the $256 million in the first half of 2019. The wireless spectrum licenses from Auction 101 were granted by the FCC on October 2, 2019, and the wireless spectrum licenses from Auction 102 are expected to be granted by the FCC during the fourth quarter of 2019.

Investments in Unconsolidated E

Investments in Unconsolidated Entities	9 Months Ended
	Sep. 30, 2019
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 U.S. Cellular holds a noncontrolling interest. U.S. Cellular’s Investments in unconsolidated entities are accounted for using either the equity method or measurement alternative method as shown in the table below. The measurement alternative method was elected for investments without readily determinable fair values formerly accounted for under the cost method. The carrying value of measurement alternative method investments represents cost minus any impairments plus or minus any observable price changes. September 30, 2019 December 31, 2018 (Dollars in millions) Equity method investments $ 464 $ 434 Measurement alternative method investments 7 7 Total investments in unconsolidated entities $ 471 $ 441 The following table, which is based in part on information provided by third parties, summarizes the combined results of operations of U.S. Cellular’s equity method investments. Three Months Ended Nine Months Ended 2019 2018 2019 2018 (Dollars in millions) Revenues $ 1,714 $ 1,693 $ 5,058 $ 5,005 Operating expenses 1,241 1,229 3,644 3,635 Operating income 473 464 1,414 1,370 Other income (expense), net (1 ) (2 ) (3 ) (2 ) Net income $ 472 $ 462 $ 1,411 $ 1,368

Leases

Leases	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Leases	Note 8 Leases Change in Accounting Policy In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases and has since amended the standard with Accounting Standards Update 2018-01, Leases: Land Easement Practical Expedient for Transition to Topic 842 , Accounting Standards Update 2018-10, Codification Improvements to Topic 842, Leases , Accounting Standards Update 2018-11, Leases: Targeted Improvements , and Accounting Standards Update 2018-20, Leases: Narrow-Scope Improvements for Lessors , collectively referred to as ASC 842. This standard replaces the previous lease accounting standard under ASC 840 - Leases and requires lessees to record a right-of-use (ROU) asset and lease liability for the majority of leases. U.S. Cellular adopted the provisions of ASC 842 on January 1, 2019, using a modified retrospective method. Under this method, U.S. Cellular elected to apply the new accounting standard only to the most recent period presented, recognizing the cumulative effect of the accounting change, if any, as an adjustment to the beginning balance of retained earnings. Accordingly, prior periods have not been recast to reflect the new accounting standard. The cumulative effect of applying the provisions of ASC 842 had no material impact on retained earnings. U.S. Cellular elected transitional practical expedients for existing leases which eliminated the requirements to reassess existing lease classification, initial direct costs, and whether contracts contain leases. U.S. Cellular also elected the practical expedient related to land easements that allows it to carry forward the accounting treatment for pre-existing land easement agreements. The cumulative effect of the adoption of ASC 842 on U.S. Cellular’s Consolidated Balance Sheet as of January 1, 2019 is presented below. December 31, 2018 ASC 842 Adjustment January 1, 2019 (Dollars in millions) Prepaid expenses $ 63 $ (13 ) $ 50 Operating lease right-of-use assets — 899 899 Other assets and deferred charges 579 (12 ) 567 Short-term operating lease liabilities — 101 101 Other current liabilities 94 (8 ) 86 Long-term operating lease liabilities — 878 878 Other deferred liabilities and credits 389 (97 ) 292 In connection with the adoption of ASC 842, U.S. Cellular recorded ROU assets and lease liabilities for its operating leases in its Consolidated Balance Sheet as of January 1, 2019. The amounts for ROU assets and lease liabilities initially were calculated as the discounted value of future lease payments. The difference between the ROU assets and the corresponding lease liabilities at January 1, 2019 as shown in the table above resulted from adjustments to ROU assets to account for various lease prepayments and straight-line expense recognition deferral balances which existed as of December 31, 2018. Finance leases are included in Property, plant and equipment and Long-term debt, net consistent with the presentation under prior accounting standards. Lessee Agreements A lease is generally present in a contract if the lessee controls the use of identified property, plant or equipment for a period of time in exchange for consideration. Nearly all of U.S. Cellular’s leases are classified as operating leases, although it does have a small number of finance leases. U.S. Cellular’s most significant leases are for land and tower spaces, network facilities, retail spaces, and offices. U.S. Cellular has agreements with both lease and nonlease components, which are accounted for separately. As part of the present value calculation for the lease liabilities, U.S. Cellular uses an incremental borrowing rate as the rates implicit in the leases are not readily determinable. The incremental borrowing rates used for lease accounting are based on U.S. Cellular's unsecured rates, adjusted to approximate the rates at which U.S. Cellular would be required to borrow on a collateralized basis over a term similar to the recognized lease term. U.S. Cellular applies the incremental borrowing rates to lease components using a portfolio approach based upon the length of the lease term. The cost of nonlease components in U.S. Cellular’s lease portfolio (e.g., utilities and common area maintenance) are not typically predetermined at lease commencement and are expensed as incurred at their relative standalone price. Variable lease expense occurs when, subsequent to the lease commencement, lease payments are made that were not originally included in the lease liability calculation. U.S. Cellular’s variable lease payments are primarily a result of leases with escalations that are tied to an index. The incremental changes due to the index changes are recorded as variable lease expense and are not included in the ROU assets or lease liabilities. Lease term recognition determines the periods to which expense is allocated and also has a significant impact on the ROU asset and lease liability calculations. Many of U.S. Cellular’s leases include renewal and early termination options. At lease commencement, the lease terms include options to extend the lease when U.S. Cellular is reasonably certain that it will exercise the options. The lease terms do not include early termination options unless U.S. Cellular is reasonably certain to exercise the options. Certain asset classes have similar lease characteristics; therefore, U.S. Cellular has applied the portfolio approach for lease term recognition for its tower space, retail, and certain ground lease asset classes. The following table shows the components of lease cost included in the Consolidated Statement of Operations: Three Months Ended Nine Months Ended (Dollars in millions) Operating lease cost $ 42 $ 121 Financing lease cost: Amortization of ROU assets — 1 Variable lease cost 2 6 Total lease cost $ 44 $ 128 The following table shows supplemental cash flow information related to lease activities: Nine Months Ended (Dollars in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 116 ROU assets obtained in exchange for lease obligations: Operating leases $ 90 The following table shows the classification of U.S. Cellular’s operating and finance leases in its Consolidated Balance Sheet: September 30, 2019 (Dollars in millions) Operating Leases Operating lease right-of-use assets $ 897 Short-term operating lease liabilities $ 104 Long-term operating lease liabilities 864 Total operating lease liabilities $ 968 Finance Leases Property, plant and equipment $ 7 Less: Accumulated depreciation and amortization 4 Property, plant and equipment, net $ 3 Current portion of long-term debt $ 1 Long-term debt, net 3 Total finance lease liabilities $ 4 The table below shows a weighted-average analysis for lease term and discount rate for all leases: September 30, 2019 Weighted Average Remaining Lease Term Operating leases 13 years Finance leases 25 years Weighted Average Discount Rate Operating leases 4.5 % Finance leases 7.0 % The maturities of lease liabilities are as follows: Operating Leases Finance Leases (Dollars in millions) Remainder of 2019 $ 27 $ — 2020 154 1 2021 139 — 2022 123 — 2023 108 1 Thereafter 788 11 Total lease payments 1 $ 1,339 $ 13 Less: Imputed interest 371 9 Present value of lease liabilities $ 968 $ 4 1 Lease payments exclude $11 million of legally binding lease payments for leases signed but not yet commenced. Lessor Agreements U.S. Cellular's most significant lessor leases are for tower space. All of U.S. Cellular’s lessor leases are classified as operating leases. A lease is generally present in a contract if the lessee controls the use of identified property, plant, or equipment for a period of time in exchange for consideration. U.S. Cellular’s lessor agreements with lease and nonlease components are generally accounted for separately. Lease term recognition determines the periods to which revenue is allocated over the term of the lease. Many of U.S. Cellular’s leases include renewal and early termination options. At lease commencement, lease terms include options to extend the lease when U.S. Cellular is reasonably certain that lessees will exercise the options. Lease terms would not include periods after the date of a termination option that lessees are reasonably certain to exercise. Variable lease income occurs when, subsequent to the lease commencement, lease payments are received that were not originally included in the lease receivable calculation. U.S. Cellular’s variable lease income is primarily a result of leases with escalations that are tied to an index. The incremental increases due to the index changes are recorded as variable lease income. The following table shows the components of lease income which are included in service revenues in the Consolidated Statement of Operations: Three Months Ended Nine Months Ended (Dollars in millions) Operating lease income 1 $ 23 $ 55 1 During the third quarter of 2019, U.S. Cellular recorded an out-of-period adjustment attributable to 2009 through the second quarter of 2019 due to errors in the timing of recognition of revenue for certain tower leases. This out-of-period adjustment had the impact of increasing operating lease income by $5 million for the three and nine months ended September 30, 2019 . U.S. Cellular determined that this adjustment was not material to any of the periods impacted. The maturities of expected lease payments to be received are as follows: Operating Leases (Dollars in millions) Remainder of 2019 $ 11 2020 60 2021 48 2022 36 2023 23 Thereafter 12 Total future lease maturities $ 190 Disclosures under ASC 840 As of December 31, 2018, future minimum rental payments required under operating leases and rental receipts expected under operating leases that have noncancellable lease terms in excess of one year were as follows: Operating Leases Future Minimum Rental Payments Operating Leases Future Minimum Rental Receipts (Dollars in millions) 2019 $ 154 $ 58 2020 143 47 2021 128 34 2022 112 22 2023 97 10 Thereafter 769 3 Total $ 1,403 $ 174

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 9 Commitments and Contingencies Purchase Obligations On September 27, 2019, U.S. Cellular executed a new Master Service Agreement, Master Statement of Work for Managed Services and certain other documents with Amdocs Tethys Limited, effective October 1, 2019, to continue using the Billing and Operational Support System (B/OSS) and certain support functions offered by Amdocs Tethys Limited. The committed, non-cancellable amount to be paid to Amdocs Tethys Limited with respect to the new agreements is $241 million over five years.

Variable Interest Entities

Variable Interest Entities	9 Months Ended
	Sep. 30, 2019
Variable Interest Entities [Abstract]
Variable Interest Entities	Note 10 Variable Interest Entities Consolidated VIEs U.S. Cellular consolidates VIEs in which it has a controlling financial interest as defined by GAAP and is therefore deemed the primary beneficiary. A controlling financial interest will have both of the following characteristics: (a) the power to direct the VIE activities that most significantly impact economic performance; and (b) the obligation to absorb the VIE losses and the right to receive benefits that are significant to the VIE. U.S. Cellular reviews these criteria initially at the time it enters into agreements and subsequently when events warranting reconsideration occur. These VIEs have risks similar to those described in the “Risk Factors” in U.S. Cellular’s Form 10-K for the year ended December 31, 2018 . During 2017, U.S. Cellular 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, U.S. Cellular 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 U.S. Cellular, will be responsible for issuing asset-backed variable funding notes (Notes), which are collateralized by the equipment installment plan receivables owned by the Trust. Given that U.S. Cellular has the power to direct the activities of these SPEs, and that these SPEs lack sufficient equity to finance their activities, U.S. Cellular is deemed to have a controlling financial interest in the SPEs and, therefore, consolidates them. All transactions with third parties (e.g., issuance of the asset-backed variable funding notes) will be accounted for as a secured borrowing due to the pledging of equipment installment plan contracts as collateral, significant continuing involvement in the transferred assets, subordinated interests of the cash flows, and continued evidence of control of the receivables. The following VIEs were formed to participate in FCC auctions of wireless spectrum 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 U.S. Cellular 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, U.S. Cellular has the most significant level of exposure to the variability associated with the economic performance of the VIEs, indicating that U.S. Cellular is the primary beneficiary of the VIEs. Therefore, in accordance with GAAP, these VIEs are consolidated. U.S. Cellular also consolidates other VIEs that are limited partnerships that provide wireless service. A limited partnership is a variable interest entity unless the limited partners hold substantive participating rights or kick-out rights over the general partner. For certain limited partnerships, U.S. Cellular is the general partner and manages the operations. In these partnerships, the limited partners do not have substantive kick-out or participating rights and, further, such limited partners do not have the authority to remove the general partner. Therefore, these limited partnerships are also recognized as VIEs and are consolidated under the variable interest model. The following table presents the classification and balances of the consolidated VIEs’ assets and liabilities in U.S. Cellular’s Consolidated Balance Sheet. September 30, 2019 December 31, 2018 (Dollars in millions) Assets Cash and cash equivalents $ 29 $ 9 Short-term investments — 17 Accounts receivable 625 611 Inventory, net 4 5 Other current assets 6 6 Assets held for sale — 4 Licenses 649 652 Property, plant and equipment, net 95 94 Operating lease right-of-use assets 42 — Other assets and deferred charges 329 349 Total assets $ 1,779 $ 1,747 Liabilities Current liabilities $ 34 $ 34 Liabilities held for sale — 1 Long-term operating lease liabilities 38 — Other deferred liabilities and credits 13 16 Total liabilities $ 85 $ 51 Unconsolidated VIEs U.S. Cellular 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. U.S. Cellular’s total investment in these unconsolidated entities was $5 million and $4 million at September 30, 2019 and December 31, 2018 , respectively, and is included in Investments in unconsolidated entities in U.S. Cellular’s Consolidated Balance Sheet. The maximum exposure from unconsolidated VIEs is limited to the investment held by U.S. Cellular in those entities. Other Related Matters U.S. Cellular made contributions, loans and/or advances to its VIEs totaling $229 million and $92 million , during the nine months ended September 30, 2019 and 2018 , respectively; of which $199 million in 2019 and $66 million in 2018 , are related to USCC EIP LLC as discussed above. U.S. Cellular 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. 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 able to obtain additional financing on commercially reasonable terms or at all to provide such financial support. The limited partnership agreements of Advantage Spectrum and King Street Wireless also provide the general partner with a put option whereby the general partner may require the limited partner, a subsidiary of U.S. Cellular, to purchase its interest in the limited partnership. The general partner’s put options related to its interests in King Street Wireless will become exercisable in the fourth quarter of 2019. The general partner’s put options related to its interest in Advantage Spectrum will become exercisable in 2021 and 2022. 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 U.S. Cellular is recorded as Noncontrolling interests with redemption features in U.S. Cellular’s Consolidated Balance Sheet. Also in accordance with GAAP, minority share of income or changes in the redemption value of the put options, net of interest accrued on the loans, are recorded as a component of Net income attributable to noncontrolling interests, net of tax, in U.S. Cellular’s Consolidated Statement of Operations. During the first quarter of 2018, U.S. Cellular recorded an out-of-period adjustment attributable to 2016 and 2017 due to errors in the application of accounting guidance applicable to the calculation of Noncontrolling interests with redemption features related to King Street Wireless, Inc. This out-of-period adjustment had the impact of increasing Net income attributable to noncontrolling interests, net of tax, by $8 million and decreasing Net income attributable to U.S. Cellular shareholders by $8 million for the nine months ended September 30, 2018 . U.S. Cellular determined that this adjustment was not material to any of the periods impacted.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	The accounting policies of U.S. Cellular 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 U.S. Cellular, subsidiaries in which 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 intercompany accounts and transactions have been eliminated.
Basis of Accounting	The unaudited consolidated financial statements included herein have been prepared by U.S. Cellular 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, U.S. Cellular 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 U.S. Cellular’s Annual Report on Form 10-K (Form 10-K) for the year ended December 31, 2018 . The accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring items, unless otherwise disclosed) necessary for the fair statement of U.S. Cellular’s financial position as of September 30, 2019 and December 31, 2018 , its results of operations and changes in equity for the three and nine months ended September 30, 2019 and 2018 , and its cash flows for the nine months ended September 30, 2019 and 2018 . The Consolidated Statement of Comprehensive Income was not included because comprehensive income for the three and nine months ended September 30, 2019 and 2018 , equaled net income. These results are not necessarily indicative of the results to be expected for the full year. U.S. Cellular has not changed its significant accounting and reporting policies from those disclosed in its Form 10-K for the year ended December 31, 2018 , except as disclosed in Note 8 — Leases .
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted	In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 requires entities to use a new forward-looking, expected loss model to estimate credit losses. It also requires additional disclosure relating to the credit quality of trade and other receivables, including information relating to management’s estimate of credit allowances. U.S. Cellular is required to adopt ASU 2016-13 on January 1, 2020, using the modified retrospective approach. Early adoption is permitted; however, U.S. Cellular does not intend to adopt early. The adoption of ASU 2016-13 is not expected to have a significant impact on U.S. Cellular's financial position or results of operations. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases and has since amended the standard with Accounting Standards Update 2018-01, Leases: Land Easement Practical Expedient for Transition to Topic 842 , Accounting Standards Update 2018-10, Codification Improvements to Topic 842, Leases , Accounting Standards Update 2018-11, Leases: Targeted Improvements , and Accounting Standards Update 2018-20, Leases: Narrow-Scope Improvements for Lessors , collectively referred to as ASC 842. This standard replaces the previous lease accounting standard under ASC 840 - Leases and requires lessees to record a right-of-use (ROU) asset and lease liability for the majority of leases. U.S. Cellular adopted the provisions of ASC 842 on January 1, 2019, using a modified retrospective method. Under this method, U.S. Cellular elected to apply the new accounting standard only to the most recent period presented, recognizing the cumulative effect of the accounting change, if any, as an adjustment to the beginning balance of retained earnings. Accordingly, prior periods have not been recast to reflect the new accounting standard. The cumulative effect of applying the provisions of ASC 842 had no material impact on retained earnings.
Revenue From Contract With Customer	As a practical expedient, revenue related to contracts of less than one year, generally month-to-month contracts, are excluded from these estimates. U.S. Cellular has certain contracts in which it bills an amount equal to a fixed per-unit price multiplied by a variable quantity (e.g., certain roaming agreements with other carriers). Because U.S. Cellular invoices for such items in an amount that corresponds directly with the value of the performance completed to date, U.S. Cellular may recognize revenue in that amount. As a practical expedient, these contracts are excluded from the estimate of future revenues expected to be recognized related to performance obligations that are unsatisfied as of the end of a reporting period.
Lessee Agreements	A lease is generally present in a contract if the lessee controls the use of identified property, plant or equipment for a period of time in exchange for consideration. Nearly all of U.S. Cellular’s leases are classified as operating leases, although it does have a small number of finance leases. U.S. Cellular’s most significant leases are for land and tower spaces, network facilities, retail spaces, and offices. U.S. Cellular has agreements with both lease and nonlease components, which are accounted for separately. As part of the present value calculation for the lease liabilities, U.S. Cellular uses an incremental borrowing rate as the rates implicit in the leases are not readily determinable. The incremental borrowing rates used for lease accounting are based on U.S. Cellular's unsecured rates, adjusted to approximate the rates at which U.S. Cellular would be required to borrow on a collateralized basis over a term similar to the recognized lease term. U.S. Cellular applies the incremental borrowing rates to lease components using a portfolio approach based upon the length of the lease term. The cost of nonlease components in U.S. Cellular’s lease portfolio (e.g., utilities and common area maintenance) are not typically predetermined at lease commencement and are expensed as incurred at their relative standalone price. Variable lease expense occurs when, subsequent to the lease commencement, lease payments are made that were not originally included in the lease liability calculation. U.S. Cellular’s variable lease payments are primarily a result of leases with escalations that are tied to an index. The incremental changes due to the index changes are recorded as variable lease expense and are not included in the ROU assets or lease liabilities. Lease term recognition determines the periods to which expense is allocated and also has a significant impact on the ROU asset and lease liability calculations. Many of U.S. Cellular’s leases include renewal and early termination options. At lease commencement, the lease terms include options to extend the lease when U.S. Cellular is reasonably certain that it will exercise the options. The lease terms do not include early termination options unless U.S. Cellular is reasonably certain to exercise the options. Certain asset classes have similar lease characteristics; therefore, U.S. Cellular has applied the portfolio approach for lease term recognition for its tower space, retail, and certain ground lease asset classes.
Lessor Agreements	U.S. Cellular's most significant lessor leases are for tower space. All of U.S. Cellular’s lessor leases are classified as operating leases. A lease is generally present in a contract if the lessee controls the use of identified property, plant, or equipment for a period of time in exchange for consideration. U.S. Cellular’s lessor agreements with lease and nonlease components are generally accounted for separately. Lease term recognition determines the periods to which revenue is allocated over the term of the lease. Many of U.S. Cellular’s leases include renewal and early termination options. At lease commencement, lease terms include options to extend the lease when U.S. Cellular is reasonably certain that lessees will exercise the options. Lease terms would not include periods after the date of a termination option that lessees are reasonably certain to exercise. Variable lease income occurs when, subsequent to the lease commencement, lease payments are received that were not originally included in the lease receivable calculation. U.S. Cellular’s variable lease income is primarily a result of leases with escalations that are tied to an index. The incremental increases due to the index changes are recorded as variable lease income.
Variable Interest Entities	U.S. Cellular consolidates VIEs in which it has a controlling financial interest as defined by GAAP and is therefore deemed the primary beneficiary. A controlling financial interest will have both of the following characteristics: (a) the power to direct the VIE activities that most significantly impact economic performance; and (b) the obligation to absorb the VIE losses and the right to receive benefits that are significant to the VIE. U.S. Cellular reviews these criteria initially at the time it enters into agreements and subsequently when events warranting reconsideration occur. These VIEs have risks similar to those described in the “Risk Factors” in U.S. Cellular’s Form 10-K for the year ended December 31, 2018 .

Basis of Presentation (Tables)

Basis of Presentation (Tables)	9 Months Ended
	Sep. 30, 2019
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 as of September 30, 2019 and December 31, 2018 . September 30, 2019 December 31, 2018 (Dollars in millions) Cash and cash equivalents $ 570 $ 580 Restricted cash included in Other current assets 5 3 Cash, cash equivalents and restricted cash in the statement of cash flows $ 575 $ 583

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	In the following table, revenue is disaggregated by type of service and timing of revenue recognition. Service revenues are recognized over time and Equipment sales are point in time. Three Months Ended Nine Months Ended 2019 2018 2019 2018 (Dollars in millions) Revenues from contracts with customers: Retail service $ 663 $ 659 $ 1,984 $ 1,960 Inbound roaming 54 50 132 116 Other service 34 34 101 99 Service revenues from contracts with customers 751 743 2,217 2,175 Equipment sales 257 242 698 692 Total revenues from contracts with customers 1 $ 1,008 $ 985 $ 2,915 $ 2,867 1 Revenue line items in this table will not agree to amounts presented in the Consolidated Statement of Operations as the amounts in this table only include revenue resulting from contracts with customers.
Contract with Customer, Assets and Liabilities	The accounts receivable balance related to amounts billed and not paid on contracts with customers, net of allowances, is shown in the table below. September 30, 2019 December 31, 2018 (Dollars in millions) Accounts receivable Customer and agents $ 899 $ 908 Roaming 34 20 Other 56 32 Total 1 $ 989 $ 960 1 Accounts receivable line items presented in this table will not agree to amounts presented in the Consolidated Balance Sheet as the amounts in this table only include receivables resulting from contracts with customers. The following table provides a rollforward of contract assets from contracts with customers, which are recorded in Other current assets and Other assets and deferred charges in the Consolidated Balance Sheet. Contract Assets (Dollars in millions) Balance at December 31, 2018 $ 9 Contract additions 9 Reclassified to receivables (11 ) Balance at September 30, 2019 $ 7 The following table provides a rollforward of contract liabilities from contracts with customers, which are recorded in Customer deposits and deferred revenues and Other deferred liabilities and credits in the Consolidated Balance Sheet. Contract Liabilities (Dollars in millions) Balance at December 31, 2018 1 $ 147 Contract additions 78 Terminated contracts (6 ) Revenue recognized (61 ) Balance at September 30, 2019 $ 158 1 The Balance at December 31, 2018 differs from the amount reported in Note 2 — Revenue Recognition of the 2018 Form 10-K, as the previously reported amount included certain lease-related balances that did not result from contracts with customers.
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 wireless 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 September 30, 2019 , and may vary from actual results. As a practical expedient, revenue related to contracts of less than one year, generally month-to-month contracts, are excluded from these estimates. Service Revenues (Dollars in millions) Remainder of 2019 $ 119 2020 111 Thereafter 237 Total $ 467

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Fair value measurements	U.S. Cellular has applied the provisions of fair value accounting for purposes of computing the fair value of financial instruments for disclosure purposes as displayed below. September 30, 2019 December 31, 2018 Level within the Fair Value Hierarchy Book Value Fair Value Book Value Fair Value (Dollars in millions) Cash and cash equivalents 1 $ 570 $ 570 $ 580 $ 580 Short-term investments 1 — — 17 17 Long-term debt Retail 2 917 953 917 850 Institutional 2 534 583 534 531 Other 2 172 172 180 180

Equipment Installment Plans (Ta

Equipment Installment Plans (Tables)	9 Months Ended
	Sep. 30, 2019
Receivables [Abstract]
Equipment installment plan receivables	The following table summarizes equipment installment plan receivables as of September 30, 2019 and December 31, 2018 . September 30, 2019 December 31, 2018 (Dollars in millions) Equipment installment plan receivables, gross $ 975 $ 974 Allowance for credit losses (82 ) (77 ) Equipment installment plan receivables, net $ 893 $ 897 Net balance presented in the Consolidated Balance Sheet as: Accounts receivable — Customers and agents (Current portion) $ 574 $ 560 Other assets and deferred charges (Non-current portion) 319 337 Equipment installment plan receivables, net $ 893 $ 897
Equipment installment plan receivables credit categories	The balance and aging of the equipment installment plan receivables on a gross basis by credit category were as follows: September 30, 2019 December 31, 2018 Lower Risk Higher Risk Total Lower Risk Higher Risk Total (Dollars in millions) Unbilled $ 898 $ 9 $ 907 $ 904 $ 17 $ 921 Billed — current 44 1 45 35 1 36 Billed — past due 21 2 23 15 2 17 Equipment installment plan receivables, gross $ 963 $ 12 $ 975 $ 954 $ 20 $ 974
Equipment installment plans allowance for credit losses	Activity for the nine months ended September 30, 2019 and 2018 , in the allowance for credit losses for equipment installment plan receivables was as follows: September 30, 2019 September 30, 2018 (Dollars in millions) Allowance for credit losses, beginning of period $ 77 $ 65 Bad debts expense 60 49 Write-offs, net of recoveries (55 ) (41 ) Allowance for credit losses, end of period $ 82 $ 73

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Earnings per share	The amounts used in computing earnings per common share and the effects of potentially dilutive securities on the weighted average number of Common Shares were as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (Dollars and shares in millions, except per share amounts) Net income attributable to U.S. Cellular shareholders $ 23 $ 36 $ 109 $ 129 Weighted average number of shares used in basic earnings per share 86 86 87 85 Effects of dilutive securities 2 1 1 1 Weighted average number of shares used in diluted earnings per share 88 87 88 86 Basic earnings per share attributable to U.S. Cellular shareholders $ 0.27 $ 0.42 $ 1.26 $ 1.51 Diluted earnings per share attributable to U.S. Cellular shareholders $ 0.27 $ 0.41 $ 1.24 $ 1.49

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Licenses	Activity related to Licenses for the nine months ended September 30, 2019 , is presented below: Licenses (Dollars in millions) Balance at December 31, 2018 $ 2,186 Acquisitions 259 Transferred to Assets held for sale (10 ) Exchanges - Licenses received 26 Balance at September 30, 2019 $ 2,461

Investments in Unconsolidated_2

Investments in Unconsolidated Entities (Tables)	9 Months Ended
	Sep. 30, 2019
Equity Method Investments and Joint Ventures [Abstract]
Equity and measurement alternative method investments	U.S. Cellular’s Investments in unconsolidated entities are accounted for using either the equity method or measurement alternative method as shown in the table below. The measurement alternative method was elected for investments without readily determinable fair values formerly accounted for under the cost method. The carrying value of measurement alternative method investments represents cost minus any impairments plus or minus any observable price changes. September 30, 2019 December 31, 2018 (Dollars in millions) Equity method investments $ 464 $ 434 Measurement alternative method investments 7 7 Total investments in unconsolidated entities $ 471 $ 441
Equity method investments, summarized results of operations	The following table, which is based in part on information provided by third parties, summarizes the combined results of operations of U.S. Cellular’s equity method investments. Three Months Ended Nine Months Ended 2019 2018 2019 2018 (Dollars in millions) Revenues $ 1,714 $ 1,693 $ 5,058 $ 5,005 Operating expenses 1,241 1,229 3,644 3,635 Operating income 473 464 1,414 1,370 Other income (expense), net (1 ) (2 ) (3 ) (2 ) Net income $ 472 $ 462 $ 1,411 $ 1,368

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Schedule of new accounting pronouncements and changes in accounting principles	The cumulative effect of the adoption of ASC 842 on U.S. Cellular’s Consolidated Balance Sheet as of January 1, 2019 is presented below. December 31, 2018 ASC 842 Adjustment January 1, 2019 (Dollars in millions) Prepaid expenses $ 63 $ (13 ) $ 50 Operating lease right-of-use assets — 899 899 Other assets and deferred charges 579 (12 ) 567 Short-term operating lease liabilities — 101 101 Other current liabilities 94 (8 ) 86 Long-term operating lease liabilities — 878 878 Other deferred liabilities and credits 389 (97 ) 292
Components of lease expense	The following table shows the components of lease cost included in the Consolidated Statement of Operations: Three Months Ended Nine Months Ended (Dollars in millions) Operating lease cost $ 42 $ 121 Financing lease cost: Amortization of ROU assets — 1 Variable lease cost 2 6 Total lease cost $ 44 $ 128
Supplemental cash flow information related to leases	The following table shows supplemental cash flow information related to lease activities: Nine Months Ended (Dollars in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 116 ROU assets obtained in exchange for lease obligations: Operating leases $ 90
Supplemental balance sheet information related to leases	The following table shows the classification of U.S. Cellular’s operating and finance leases in its Consolidated Balance Sheet: September 30, 2019 (Dollars in millions) Operating Leases Operating lease right-of-use assets $ 897 Short-term operating lease liabilities $ 104 Long-term operating lease liabilities 864 Total operating lease liabilities $ 968 Finance Leases Property, plant and equipment $ 7 Less: Accumulated depreciation and amortization 4 Property, plant and equipment, net $ 3 Current portion of long-term debt $ 1 Long-term debt, net 3 Total finance lease liabilities $ 4
Schedule of weighted average remaining lease term and weighted average discount rate related to leases	The table below shows a weighted-average analysis for lease term and discount rate for all leases: September 30, 2019 Weighted Average Remaining Lease Term Operating leases 13 years Finance leases 25 years Weighted Average Discount Rate Operating leases 4.5 % Finance leases 7.0 %
Maturities of lease liabilities	The maturities of lease liabilities are as follows: Operating Leases Finance Leases (Dollars in millions) Remainder of 2019 $ 27 $ — 2020 154 1 2021 139 — 2022 123 — 2023 108 1 Thereafter 788 11 Total lease payments 1 $ 1,339 $ 13 Less: Imputed interest 371 9 Present value of lease liabilities $ 968 $ 4 1 Lease payments exclude $11 million of legally binding lease payments for leases signed but not yet commenced.
Lease income	The following table shows the components of lease income which are included in service revenues in the Consolidated Statement of Operations: Three Months Ended Nine Months Ended (Dollars in millions) Operating lease income 1 $ 23 $ 55 1 During the third quarter of 2019, U.S. Cellular recorded an out-of-period adjustment attributable to 2009 through the second quarter of 2019 due to errors in the timing of recognition of revenue for certain tower leases. This out-of-period adjustment had the impact of increasing operating lease income by $5 million for the three and nine months ended September 30, 2019 . U.S. Cellular determined that this adjustment was not material to any of the periods impacted.
Maturities of expected lease revenues	The maturities of expected lease payments to be received are as follows: Operating Leases (Dollars in millions) Remainder of 2019 $ 11 2020 60 2021 48 2022 36 2023 23 Thereafter 12 Total future lease maturities $ 190
Lease commitments	As of December 31, 2018, future minimum rental payments required under operating leases and rental receipts expected under operating leases that have noncancellable lease terms in excess of one year were as follows: Operating Leases Future Minimum Rental Payments Operating Leases Future Minimum Rental Receipts (Dollars in millions) 2019 $ 154 $ 58 2020 143 47 2021 128 34 2022 112 22 2023 97 10 Thereafter 769 3 Total $ 1,403 $ 174

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	9 Months Ended
	Sep. 30, 2019
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 U.S. Cellular’s Consolidated Balance Sheet. September 30, 2019 December 31, 2018 (Dollars in millions) Assets Cash and cash equivalents $ 29 $ 9 Short-term investments — 17 Accounts receivable 625 611 Inventory, net 4 5 Other current assets 6 6 Assets held for sale — 4 Licenses 649 652 Property, plant and equipment, net 95 94 Operating lease right-of-use assets 42 — Other assets and deferred charges 329 349 Total assets $ 1,779 $ 1,747 Liabilities Current liabilities $ 34 $ 34 Liabilities held for sale — 1 Long-term operating lease liabilities 38 — Other deferred liabilities and credits 13 16 Total liabilities $ 85 $ 51

Basis of Presentation - Narrati

Basis of Presentation - Narrative (Details)	Sep. 30, 2019
TDS | U.S. Cellular
Basis of Presentation [Line Items]
Ownership percentage	82.00%

Basis of Presentation - Restric

Basis of Presentation - Restricted Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 570	$ 580
Restricted cash included in Other current assets	5	3
Cash, cash equivalents and restricted cash in the statement of cash flows	$ 575	$ 583	$ 732	$ 352

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation Of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of revenue
Revenue from contracts with customers	$ 1,008	$ 985	$ 2,915	$ 2,867
Transferred over time
Disaggregation of revenue
Revenue from contracts with customers	751	743	2,217	2,175
Transferred over time | Retail service
Disaggregation of revenue
Revenue from contracts with customers	663	659	1,984	1,960
Transferred over time | Inbound roaming
Disaggregation of revenue
Revenue from contracts with customers	54	50	132	116
Transferred over time | Other service
Disaggregation of revenue
Revenue from contracts with customers	34	34	101	99
Transferred at point in time | Equipment sales
Disaggregation of revenue
Revenue from contracts with customers	$ 257	$ 242	$ 698	$ 692

Revenue Recognition - Accounts

Revenue Recognition - Accounts Receivable (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Accounts receivable
Customers and agents	$ 899	$ 908
Roaming	34	20
Other	60	46
Accounts receivable from contract with customer
Accounts receivable
Customers and agents	899	908
Roaming	34	20
Other	56	32
Total	$ 989	$ 960

Revenue Recognition - Contract

Revenue Recognition - Contract Assets (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019USD ($)
Contract Assets
Balance, beginning of period	$ 9
Contract additions	9
Reclassified to receivables	(11)
Balance, end of period	$ 7

Revenue Recognition - Contrac_2

Revenue Recognition - Contract Liabilities (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019USD ($)
Contract Liabilities
Balance, beginning of period	$ 147
Contract additions	78
Terminated contracts	(6)
Revenue recognized	(61)
Balance, end of period	$ 158

Revenue Recognition - Performan

Revenue Recognition - Performance Obligations (Details) $ in Millions	Sep. 30, 2019USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation amount	$ 467
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation amount	$ 119
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of remaining performance obligation, period	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation amount	$ 111
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]: 2021-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation amount	$ 237
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of remaining performance obligation, period

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Capitalized Contract Cost
Capitalized contract cost related to commission fees	$ 130		$ 130		$ 139
Amortization of contract cost assets	$ 27	$ 27	$ 82	$ 81
Minimum
Capitalized Contract Cost
Capitalized contract cost, amortization period	15 months		15 months
Maximum
Capitalized Contract Cost
Capitalized contract cost, amortization period	30 months		30 months

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Financial Instruments
Cash and cash equivalents	$ 570	$ 580
Short-term investments	$ 0	17
7.25% 2063 Senior Notes
Financial Instruments
Interest rate	7.25%
7.25% 2064 Senior Notes
Financial Instruments
Interest rate	7.25%
6.95% Senior Notes
Financial Instruments
Interest rate	6.95%
6.7% Senior Notes
Financial Instruments
Interest rate	6.70%
Book Value
Financial Instruments
Cash and cash equivalents	$ 570	580
Short-term investments	0	17
Book Value | Retail
Financial Instruments
Long-term debt	917	917
Book Value | Institutional
Financial Instruments
Long-term debt	534	534
Book Value | Other
Financial Instruments
Long-term debt	172	180
Fair Value | Level 1
Financial Instruments
Cash and cash equivalents	570	580
Short-term investments	0	17
Fair Value | Level 2 | Retail
Financial Instruments
Long-term debt	953	850
Fair Value | Level 2 | Institutional
Financial Instruments
Long-term debt	583	531
Fair Value | Level 2 | Other
Financial Instruments
Long-term debt	$ 172	$ 180
Interest rate | Institutional and Other | Minimum
Financial Instruments
Fair value assumption, interest rate	3.80%	5.03%
Interest rate | Institutional and Other | Maximum
Financial Instruments
Fair value assumption, interest rate	5.96%	6.97%

Equipment Installment Plans - N

Equipment Installment Plans - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Receivables [Abstract]
Guarantee liability	$ 9	$ 11

Equipment Installment Plans - E

Equipment Installment Plans - EIP Receivables (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Equipment installment plan receivables, gross	$ 975	$ 974
Allowance for credit losses	(82)	(77)
Equipment installment plan receivables, net	893	897
Accounts receivable — Customers and agents (Current portion)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Equipment installment plan receivables, net	574	560
Other assets and deferred charges (Non-current portion)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Equipment installment plan receivables, net	$ 319	$ 337

Equipment Installment Plans - G

Equipment Installment Plans - Gross Receivables by Credit Category (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	$ 975	$ 974
Unbilled
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables	907	921
Billed
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables	45	36
Equipment installment plan receivables, past due	23	17
Lower Risk
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	963	954
Lower Risk | Unbilled
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables	898	904
Lower Risk | Billed
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables	44	35
Equipment installment plan receivables, past due	21	15
Higher Risk
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	12	20
Higher Risk | Unbilled
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables	9	17
Higher Risk | Billed
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables	1	1
Equipment installment plan receivables, past due	$ 2	$ 2

Equipment Installment Plans - A

Equipment Installment Plans - Allowance for Credit Losses (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Allowance for credit losses
Allowance for credit losses, beginning of period	$ 77
Allowance for credit losses, end of period	82
Equipment Installment Plan Receivable
Allowance for credit losses
Allowance for credit losses, beginning of period	77	$ 65
Bad debts expense	60	49
Write-offs, net of recoveries	(55)	(41)
Allowance for credit losses, end of period	$ 82	$ 73

Earnings Per Share - Reconcilia

Earnings Per Share - Reconciliation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Net income attributable to U.S. Cellular shareholders	$ 23	$ 36	$ 109	$ 129
Weighted average number of shares used in basic earnings per share (in shares)	86	86	87	85
Effects of dilutive securities (in shares)	2	1	1	1
Weighted average number of shares used in diluted earnings per share (in shares)	88	87	88	86
Basic earnings per share attributable to U.S. Cellular shareholders (USD per share)	$ 0.27	$ 0.42	$ 1.26	$ 1.51
Diluted earnings per share attributable to U.S. Cellular shareholders (USD per share)	$ 0.27	$ 0.41	$ 1.24	$ 1.49

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	1	2		3
Maximum
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)			1

Intangible Assets (Details)

Intangible Assets (Details) - Licenses $ in Millions	9 Months Ended
	Sep. 30, 2019USD ($)
Licenses
Balance, beginning of period	$ 2,186
Acquisitions	259
Transferred to Assets held for sale	(10)
Exchanges - Licenses received	26
Balance, end of period	$ 2,461

Intangible Assets - Narrative (

Intangible Assets - Narrative (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019USD ($)license
Licenses
Total winning bid | $	$ 256
Auction 101
Licenses
Licenses won	408
Auction 102
Licenses
Licenses won	282

Investments in Unconsolidated_3

Investments in Unconsolidated Entities - Schedule of Investments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]
Equity method investments	$ 464		$ 464		$ 434
Measurement alternative method investments	7		7		7
Total investments in unconsolidated entities	471		471		$ 441
Equity method investments, combined income statements
Revenues	1,714	$ 1,693	5,058	$ 5,005
Operating expenses	1,241	1,229	3,644	3,635
Operating income	473	464	1,414	1,370
Other income (expense), net	(1)	(2)	(3)	(2)
Net income	$ 472	$ 462	$ 1,411	$ 1,368

Leases - Narrative (Details)

Leases - Narrative (Details) $ in Millions	Sep. 30, 2019USD ($)
Minimum | ASC 842 | Retained earnings
Leases
Cumulative effect of accounting change	$ 0

Leases - Consolidated Balance S

Leases - Consolidated Balance Sheet (Details) - USD ($) $ in Millions	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Leases - Consolidated Balance Sheet
Prepaid expenses	$ 49	$ 50	$ 63
Operating lease right-of-use assets	897	899	0
Other assets and deferred charges	539	567	579
Short-term operating lease liabilities	104	101	0
Other current liabilities	78	86	94
Long-term operating lease liabilities	864	878	0
Other deferred liabilities and credits	$ 312	292	$ 389
ASC 842 Adjustment
Leases - Consolidated Balance Sheet
Prepaid expenses		(13)
Operating lease right-of-use assets		899
Other assets and deferred charges		(12)
Short-term operating lease liabilities		101
Other current liabilities		(8)
Long-term operating lease liabilities		878
Other deferred liabilities and credits		$ (97)

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Lease, Cost [Abstract]
Operating lease cost	$ 42	$ 121
Amortization of ROU assets	0	1
Variable lease cost	2	6
Total lease cost	$ 44	$ 128

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 116
ROU assets obtained in exchange for lease obligations:
Operating leases	$ 90

Leases - Classification of Oper

Leases - Classification of Operating and Finance Leases (Details) - USD ($) $ in Millions	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Operating Leases
Operating lease right-of-use assets	$ 897	$ 899	$ 0
Short-term operating lease liabilities	104	101	0
Long-term operating lease liabilities	864	$ 878	0
Total operating lease liabilities	968
Finance Leases
Property, plant and equipment	8,088		7,778
Less: Accumulated depreciation and amortization	5,944		5,576
Property, plant and equipment, net	2,144		2,202
Current portion of long-term debt	19		19
Long-term debt, net	1,592		$ 1,605
Total finance lease liabilities	4
Operating leases
Operating Leases
Operating lease right-of-use assets	897
Short-term operating lease liabilities	104
Long-term operating lease liabilities	864
Total operating lease liabilities	968
Finance leases
Finance Leases
Property, plant and equipment	7
Less: Accumulated depreciation and amortization	4
Property, plant and equipment, net	3
Current portion of long-term debt	1
Long-term debt, net	3
Total finance lease liabilities	$ 4

Leases - Lease Term and Discoun

Leases - Lease Term and Discount Rate (Details)	Sep. 30, 2019
Weighted Average Remaining Lease Term
Operating leases	13 years
Finance leases	25 years
Weighted Average Discount Rate
Operating leases	4.50%
Finance leases	7.00%

Leases - Maturities of Lease Li

Leases - Maturities of Lease Liabilities (Details) $ in Millions	Sep. 30, 2019USD ($)
Operating Leases Future Minimum Rental Payments
Remainder of 2019	$ 27
2020	154
2021	139
2022	123
2023	108
Thereafter	788
Total lease payments	1,339
Less: Imputed interest	371
Present value of lease liabilities	968
Finance Leases
Remainder of 2019	0
2020	1
2021	0
2022	0
2023	1
Thereafter	11
Total lease payments	13
Less: Imputed interest	9
Present value of lease liabilities	4
Legally binding lease payments for leases signed but not yet commenced	$ 11

Leases - Components of Lease In

Leases - Components of Lease Income (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Leases
Operating lease income1	$ 23	$ 55
Tower leases out of period adjustment
Leases
Immaterial error correction		During the third quarter of 2019, U.S. Cellular recorded an out-of-period adjustment attributable to 2009 through the second quarter of 2019 due to errors in the timing of recognition of revenue for certain tower leases. This out-of-period adjustment had the impact of increasing operating lease income by $5 million for the three and nine months ended September 30, 2019. U.S. Cellular determined that this adjustment was not material to any of the periods impacted.
Other service revenues | Tower leases out of period adjustment
Leases
Out-of-period adjustment	$ 5	$ 5

Leases - Maturities of Expected

Leases - Maturities of Expected Lease Revenues (Details) $ in Millions	Sep. 30, 2019USD ($)
Leases [Abstract]
Remainder of 2019	$ 11
2020	60
2021	48
2022	36
2023	23
Thereafter	12
Total future lease maturities	$ 190

Leases - Minimum Lease Obligati

Leases - Minimum Lease Obligations (Details) $ in Millions	Dec. 31, 2018USD ($)
Operating Leases Future Minimum Rental Payments
2019	$ 154
2020	143
2021	128
2022	112
2023	97
Thereafter	769
Total	1,403
Operating Leases Future Minimum Rental Receipts
2019	58
2020	47
2021	34
2022	22
2023	10
Thereafter	3
Total	$ 174

Commitments and Contingencies (

Commitments and Contingencies (Details)	9 Months Ended
	Sep. 30, 2019USD ($)
Amdocs Tethys Limited
Purchase Commitments
Purchase commitment	$ 241

Variable Interest Entities - Co

Variable Interest Entities - Consolidataed Balance Sheet (Details) - USD ($) $ in Millions	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Assets
Cash and cash equivalents	$ 570		$ 580
Short-term investments	0		17
Accounts receivable	899		908
Inventory, net	139		142
Other current assets	19		34
Assets held for sale	9		54
Licenses	2,461		2,186
Property, plant and equipment, net	2,144		2,202
Operating lease right-of-use assets	897	$ 899	0
Other assets and deferred charges	539	567	579
Liabilities
Current liabilities	849		691
Liabilities held for sale	1		1
Long-term operating lease liabilities	864	$ 878	0
Consolidated Variable Interest Entities
Assets
Cash and cash equivalents	29		9
Short-term investments	0		17
Accounts receivable	625		611
Inventory, net	4		5
Other current assets	6		6
Assets held for sale	0		4
Licenses	649		652
Property, plant and equipment, net	95		94
Operating lease right-of-use assets	42		0
Other assets and deferred charges	329		349
Total assets	1,779		1,747
Liabilities
Current liabilities	34		34
Liabilities held for sale	0		1
Long-term operating lease liabilities	38		0
Other deferred liabilities and credits	13		16
Total liabilities	$ 85		$ 51

Variable Interest Entities - Na

Variable Interest Entities - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Variable Interest Entity [Line Items]
Investments in unconsolidated entities, maximum exposure	$ 5		$ 4
Capital contributions, loans or advances	$ 229	$ 92
King Street Wireless out-of-period adjustment
Variable Interest Entity [Line Items]
Immaterial error correction	During the first quarter of 2018, U.S. Cellular recorded an out-of-period adjustment attributable to 2016 and 2017 due to errors in the application of accounting guidance applicable to the calculation of Noncontrolling interests with redemption features related to King Street Wireless, Inc. This out-of-period adjustment had the impact of increasing Net income attributable to noncontrolling interests, net of tax, by $8 million and decreasing Net income attributable to U.S. Cellular shareholders by $8 million for the nine months ended September 30, 2018. U.S. Cellular determined that this adjustment was not material to any of the periods impacted.
Net income attributable to noncontrolling interests, net of tax | King Street Wireless out-of-period adjustment
Variable Interest Entity [Line Items]
Out-of-period adjustment		8
Net income attributable to U.S. Cellular shareholders | King Street Wireless out-of-period adjustment
Variable Interest Entity [Line Items]
Out-of-period adjustment		(8)
USCC EIP LLC
Variable Interest Entity [Line Items]
Capital contributions, loans or advances	$ 199	$ 66