United States Cellular (USM) 10-Q 4 Nov 21 2021 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information	9 Months Ended
	Sep. 30, 2021shares
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
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	2021
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	53,192,200
6.25% Senior Notes
Title of 12(b) Security	6.25% Senior Notes due 2069
Trading Symbol	UZD
Security Exchange Name	NYSE
5.5% Senior Notes
Title of 12(b) Security	5.50% Senior Notes due 2070
Trading Symbol	UZE
Security Exchange Name	NYSE
5.5% Senior Notes
Title of 12(b) Security	5.50% Senior Notes due 2070
Trading Symbol	UZF
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, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Operating revenues
Total operating revenues	$ 1,016	$ 1,027	$ 3,053	$ 2,964
Operating expenses
Selling, general and administrative	346	335	984	994
Depreciation, amortization and accretion	160	161	510	516
(Gain) loss on asset disposals, net	8	6	15	14
(Gain) loss on sale of business and other exit costs, net	0	0	(1)	0
Total operating expenses	971	962	2,888	2,796
Operating income	45	65	165	168
Investment and other income (expense)
Equity in earnings of unconsolidated entities	48	48	137	137
Interest and dividend income	1	2	5	6
Gain (loss) on investments	0	3	0	3
Interest expense	(45)	(29)	(144)	(76)
Total investment and other income (expense)	4	24	(2)	70
Income before income taxes	49	89	163	238
Income tax expense	14	4	31	11
Net income	35	85	132	227
Less: Net income attributable to noncontrolling interests, net of tax	1	0	4	3
Net income attributable to UScellular shareholders	$ 34	$ 85	$ 128	$ 224
Basic weighted average shares outstanding (in shares)	86	86	87	86
Basic earnings per share attributable to UScellular shareholders (USD per share)	$ 0.39	$ 0.98	$ 1.48	$ 2.60
Diluted weighted average shares outstanding (in shares)	87	88	88	87
Diluted earnings per share attributable to UScellular shareholders (in shares)	$ 0.38	$ 0.97	$ 1.46	$ 2.56
Service
Operating revenues
Total operating revenues	$ 788	$ 775	$ 2,333	$ 2,290
Operating expenses
Cost of equipment sold	205	203	594	580
Equipment sales
Operating revenues
Total operating revenues	228	252	720	674
Operating expenses
Cost of equipment sold	$ 252	$ 257	$ 786	$ 692

Consolidated Statement of Cash

Consolidated Statement of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities
Net income	$ 132	$ 227
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities
Depreciation, amortization and accretion	510	516
Bad debts expense	34	52
Stock-based compensation expense	20	25
Deferred income taxes, net	47	158
Equity in earnings of unconsolidated entities	(137)	(137)
Distributions from unconsolidated entities	106	118
(Gain) loss on asset disposals, net	15	14
(Gain) loss on sale of business and other exit costs, net	(1)	0
(Gain) loss on investments	0	(3)
Other operating activities	31	1
Changes in assets and liabilities from operations
Accounts receivable	19	31
Equipment installment plans receivable	(44)	13
Inventory	10	5
Accounts payable	(33)	77
Customer deposits and deferred revenues	10	(23)
Accrued taxes	(36)	(102)
Accrued interest	7	14
Other assets and liabilities	(23)	(36)
Net cash provided by operating activities	667	950
Cash flows from investing activities
Cash paid for additions to property, plant and equipment	(456)	(690)
Cash paid for licenses	(1,263)	(169)
Cash received from investments	3	1
Cash paid for investments	0	(1)
Cash received from divestitures and exchanges	2	1
Advance payments for license acquisitions	(20)	0
Other investing activities	2	3
Net cash used in investing activities	(1,732)	(855)
Cash flows from financing activities
Issuance of long-term debt	1,217	625
Repayment of long-term debt	(1,117)	(6)
Common Shares reissued for benefit plans, net of tax payments	(16)	(12)
Repurchase of Common Shares	(21)	(23)
Payment of debt issuance costs	(20)	(20)
Distributions to noncontrolling interests	(2)	(2)
Other financing activities	(4)	0
Net cash provided by financing activities	37	562
Net increase (decrease) in cash, cash equivalents and restricted cash	(1,028)	657
Cash, cash equivalents and restricted cash
Beginning of period	1,291	291
End of period	$ 263	$ 948

Consolidated Balance Sheet

Consolidated Balance Sheet - USD ($) $ in Millions		Sep. 30, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents		$ 231	$ 1,271
Short-term investments		0	3
Accounts receivable
Customers and agents, less allowances of $55 and $62, respectively		910	915
Roaming		11	13
Other, less allowances of $3 and $1, respectively		57	70
Inventory, net		136	146
Prepaid expenses		59	51
Income taxes receivable		125	125
Other current assets		42	29
Total current assets		1,571	2,623
Assets held for sale		3	2
Licenses		4,102	2,629
Investments in unconsolidated entities		466	435
Property, plant and equipment
In service and under construction		8,990	8,785
Less: Accumulated depreciation and amortization		6,533	6,319
Property, plant and equipment, net		2,457	2,466
Operating lease right-of-use assets		953	924
Other assets and deferred charges		592	602
Total assets	[1]	10,144	9,681
Current liabilities
Current portion of long-term debt		3	2
Accounts payable
Affiliated		8	10
Trade		364	377
Customer deposits and deferred revenues		161	151
Accrued taxes		32	48
Accrued compensation		69	82
Short-term operating lease liabilities		126	116
Other current liabilities		93	85
Total current liabilities		856	871
Liabilities held for sale		0	1
Deferred liabilities and credits
Deferred income tax liability, net		680	633
Long-term operating lease liabilities		890	875
Other deferred liabilities and credits		565	376
Long-term debt, net		2,604	2,489
Commitments and contingencies
Noncontrolling interests with redemption features		10	10
UScellular 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		1,671	1,651
Treasury shares, at cost, 2 Common Shares		(58)	(67)
Retained earnings		2,822	2,739
Total UScellular shareholders' equity		4,523	4,411
Noncontrolling interests		16	15
Total equity		4,539	4,426
Total liabilities and equity	[1]	$ 10,144	$ 9,681
[1]	The consolidated total assets as of September 30, 2021 and December 31, 2020, include assets held by consolidated variable interest entities (VIEs) of $1,301 million and $1,060 million, respectively, which are not available to be used to settle the obligations of UScellular. The consolidated total liabilities as of September 30, 2021 and December 31, 2020, include certain liabilities of consolidated VIEs of $19 million and $20 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of UScellular. See Note 11 — Variable Interest Entities for additional information.

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions		Sep. 30, 2021	Dec. 31, 2020
Accounts receivable
Customer and agent allowances		$ 55	$ 62
Other allowances		$ 3	$ 1
UScellular 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 assets	[1]	$ 10,144	$ 9,681
Series A Common Shares
UScellular 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
UScellular 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 Variable Interest Entities
Variable Interest Entities VIEs
Total assets		$ 1,877	$ 1,821
Liabilities		87	84
Consolidated Variable Interest Entities | No recourse
Variable Interest Entities VIEs
Liabilities		19	20
Consolidated Variable Interest Entities | Assets held
Variable Interest Entities VIEs
Total assets		$ 1,301	$ 1,060
[1]	The consolidated total assets as of September 30, 2021 and December 31, 2020, include assets held by consolidated variable interest entities (VIEs) of $1,301 million and $1,060 million, respectively, which are not available to be used to settle the obligations of UScellular. The consolidated total liabilities as of September 30, 2021 and December 31, 2020, include certain liabilities of consolidated VIEs of $19 million and $20 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of UScellular. See Note 11 — Variable Interest Entities for additional information.

Consolidated Statement of Chang

Consolidated Statement of Changes in Equity - USD ($) $ in Millions	Total	Series A Common and Common shares	Additional paid-in capital	Treasury shares	Retained earnings	Total UScellular shareholders' equity	Noncontrolling interests
Beginning balance at Dec. 31, 2019	$ 4,210	$ 88	$ 1,629	$ (70)	$ 2,550	$ 4,197	$ 13
Net income attributable to UScellular shareholders	224				224	224
Net income attributable to noncontrolling interests classified as equity	4					0	4
Repurchase of Common Shares	(23)			(23)		(23)
Incentive and compensation plans	13		25	26	(38)	13
Distributions to noncontrolling interests	(2)					0	(2)
Ending balance at Sep. 30, 2020	4,426	88	1,654	(67)	2,736	4,411	15
Retained earnings | ASC 326	1				1	1
Beginning balance at Jun. 30, 2020	4,334	88	1,646	(70)	2,657	4,321	13
Net income attributable to UScellular shareholders	85				85	85
Net income attributable to noncontrolling interests classified as equity	2					0	2
Incentive and compensation plans	4		8	3	(7)	4
Ending balance at Sep. 30, 2020	4,426	88	1,654	(67)	2,736	4,411	15
Retained earnings	2,739
Beginning balance at Dec. 31, 2020	4,426	88	1,651	(67)	2,739	4,411	15
Net income attributable to UScellular shareholders	128				128	128
Net income attributable to noncontrolling interests classified as equity	3					0	3
Repurchase of Common Shares	(21)			(21)		(21)
Incentive and compensation plans	5		20	30	(45)	5
Distributions to noncontrolling interests	(2)					0	(2)
Ending balance at Sep. 30, 2021	4,539	88	1,671	(58)	2,822	4,523	16
Beginning balance at Jun. 30, 2021	4,519	88	1,663	(42)	2,794	4,503	16
Net income attributable to UScellular shareholders	34				34	34
Net income attributable to noncontrolling interests classified as equity	1					0	1
Repurchase of Common Shares	(19)			(19)		(19)
Incentive and compensation plans	5		8	3	(6)	5
Distributions to noncontrolling interests	(1)					0	(1)
Ending balance at Sep. 30, 2021	4,539	$ 88	$ 1,671	$ (58)	$ 2,822	$ 4,523	$ 16
Retained earnings	$ 2,822

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Note 1 Basis of Presentation United States Cellular Corporation (UScellular), a Delaware Corporation, is an 82%-owned subsidiary of Telephone and Data Systems, Inc. (TDS). The accounting policies of UScellular 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 UScellular, subsidiaries in which it has a controlling financial interest, general partnerships in which UScellular has a majority partnership interest and certain entities in which UScellular has a variable interest that requires consolidation under GAAP. Intercompany accounts and transactions have been eliminated. The unaudited consolidated financial statements included herein have been prepared by UScellular 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, UScellular 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 UScellular’s Annual Report on Form 10-K (Form 10-K) for the year ended December 31, 2020. The accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring items, unless otherwise disclosed) necessary for the fair statement of UScellular’s financial position as of September 30, 2021 and December 31, 2020 and its results of operations and changes in equity for the three and nine months ended September 30, 2021 and 2020, and its cash flows for the nine months ended September 30, 2021 and 2020. The Consolidated Statement of Comprehensive Income was not included because comprehensive income for the nine months ended September 30, 2021 and 2020, equaled net income. These results are not necessarily indicative of the results to be expected for the full year. UScellular has not changed its significant accounting and reporting policies from those disclosed in its Form 10-K for the year ended December 31, 2020. Restricted Cash UScellular 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. September 30, 2021 December 31, 2020 (Dollars in millions) Cash and cash equivalents $ 231 $ 1,271 Restricted cash included in Other current assets 32 20 Cash, cash equivalents and restricted cash in the statement of cash flows $ 263 $ 1,291

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2021
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Note 2 Revenue Recognition Disaggregation of Revenue In the following table, UScellular's revenues are disaggregated by type of service, which represents the relevant categorization of revenues for UScellular, and timing of recognition. Service revenues are recognized over time and Equipment sales are point in time. Three Months Ended Nine Months Ended 2021 2020 2021 2020 (Dollars in millions) Revenues from contracts with customers: Retail service 1 $ 699 $ 674 $ 2,069 $ 2,004 Inbound roaming 30 42 86 119 Other service 38 39 117 110 Service revenues from contracts with customers 767 755 2,272 2,233 Equipment sales 228 252 720 674 Total revenues from contracts with customers 995 1,007 2,992 2,907 Operating lease income 21 20 61 57 Total operating revenues $ 1,016 $ 1,027 $ 3,053 $ 2,964 1 During the three months ended September 30, 2021, UScellular recorded a $9 million out-of-period error related to the timing of recognition of regulatory fee billings. This adjustment had the impact of increasing Service revenue by $9 million for the three and nine months ended September 30, 2021. UScellular determined that this adjustment was not material to any of the periods impacted. Contract Balances The following table provides balances for contract assets from contracts with customers, which are recorded in Other current assets and Other assets and deferred charges in the Consolidated Balance Sheet, and contract liabilities from contracts with customers, which are recorded in Customer deposits and deferred revenues and Other deferred liabilities and credits in the Consolidated Balance Sheet. September 30, 2021 December 31, 2020 (Dollars in millions) Contract assets $ 10 $ 10 Contract liabilities $ 198 $ 171 Revenue recognized related to contract liabilities existing at January 1, 2021 was $120 million for the nine months ended September 30, 2021. 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, 2021 and may vary from actual results. As practical expedients, revenue related to contracts of less than one year, generally month-to-month contracts, and contracts with a fixed per-unit price and variable quantity, are excluded from these estimates. Service Revenues (Dollars in millions) Remainder of 2021 $ 121 2022 139 Thereafter 157 Total $ 417 Contract Cost Assets UScellular expects that commission fees paid as a result of obtaining contracts are recoverable and therefore UScellular defers and amortizes these costs. As a practical expedient, costs with an amortization period of one year or less are expensed as incurred. The contract cost asset balance related to commission fees and other costs was $121 million at September 30, 2021, and $124 million at December 31, 2020, and was recorded in Other assets and deferred charges in the Consolidated Balance Sheet. Deferred commission fees are amortized based on the timing of transfer of the goods or services to which the assets relate, typically the contract term. Amortization of contract cost assets was $24 million and $75 million for the three and nine months ended September 30, 2021, respectively, and $26 million and $79 million for the three and nine months ended September 30, 2020, respectively, and was included in Selling, general and administrative expenses.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 3 Fair Value Measurements As of September 30, 2021 and December 31, 2020, UScellular 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. UScellular has applied the provisions of fair value accounting for purposes of computing the fair value of financial instruments for disclosure purposes as displayed below. Level within the Fair Value Hierarchy September 30, 2021 December 31, 2020 Book Value Fair Value Book Value Fair Value (Dollars in millions) Long-term debt Retail 2 $ 1,500 $ 1,604 $ 1,917 $ 1,962 Institutional 2 535 679 535 707 Other 2 622 622 106 106 Long-term debt excludes lease obligations, the current portion of Long-term debt and debt financing costs. The fair value of “Retail” Long-term debt was estimated using market prices for UScellular Senior Notes, which are traded on the New York Stock Exchange. UScellular’s “Institutional” debt consists of the 6.7% Senior Notes which are traded over the counter. UScellular’s “Other” debt consists of a senior term loan credit agreement and receivables securitization agreement. UScellular 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 1.24% to 4.19% and 1.35% to 3.75% at September 30, 2021 and December 31, 2020, respectively.

Equipment Installment Plans

Equipment Installment Plans	9 Months Ended
	Sep. 30, 2021
Receivables [Abstract]
Equipment Installment Plans	Note 4 Equipment Installment Plans UScellular sells devices to customers under equipment installment plans over a specified time period. For certain equipment installment plans, after a specified period of time or amount of payments, the customer may have the right to upgrade to a new device and have the remaining unpaid equipment installment contract balance waived, subject to certain conditions, including trading in the original device in good working condition and signing a new equipment installment contract. The following table summarizes equipment installment plan receivables. September 30, 2021 December 31, 2020 (Dollars in millions) Equipment installment plan receivables, gross $ 1,022 $ 1,007 Allowance for credit losses (70) (78) Equipment installment plan receivables, net $ 952 $ 929 Net balance presented in the Consolidated Balance Sheet as: Accounts receivable — Customers and agents (Current portion) $ 607 $ 590 Other assets and deferred charges (Non-current portion) 345 339 Equipment installment plan receivables, net $ 952 $ 929 UScellular uses various inputs, including internal data, information from credit bureaus and other sources, to evaluate the credit profiles of its customers. From this evaluation, a credit class is assigned to the customer that determines the number of eligible lines, the amount of credit available, and the down payment requirement, if any. These credit classes are grouped into four credit categories: lowest risk, lower risk, slight risk and higher risk. A customer's assigned credit class is reviewed periodically and a change is made, if appropriate. An equipment installment plan billed amount is considered past due if not paid within 30 days. The balance and aging of the equipment installment plan receivables on a gross basis by credit category were as follows: September 30, 2021 December 31, 2020 Lowest Risk Lower Risk Slight Risk Higher Risk Total Lowest Risk Lower Risk Slight Risk Higher Risk Total (Dollars in millions) Unbilled $ 840 $ 93 $ 23 $ 6 $ 962 $ 819 $ 98 $ 22 $ 9 $ 948 Billed — current 36 5 1 — 42 36 5 1 1 43 Billed — past due 10 5 2 1 18 8 5 2 1 16 Total $ 886 $ 103 $ 26 $ 7 $ 1,022 $ 863 $ 108 $ 25 $ 11 $ 1,007 The balance of the equipment installment plan receivables as of September 30, 2021 on a gross basis by year of origination were as follows: 2018 2019 2020 2021 Total (Dollars in millions) Lowest Risk $ 1 $ 84 $ 346 $ 455 $ 886 Lower Risk — 6 36 61 103 Slight Risk — 1 6 19 26 Higher Risk — — 2 5 7 Total $ 1 $ 91 $ 390 $ 540 $ 1,022 Activity for the nine months ended September 30, 2021 and 2020, in the allowance for credit losses for equipment installment plan receivables was as follows: September 30, 2021 September 30, 2020 (Dollars in millions) Allowance for credit losses, beginning of period $ 78 $ 84 Bad debts expense 21 34 Write-offs, net of recoveries (29) (43) Allowance for credit losses, end of period $ 70 $ 75

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Note 5 Income Taxes The effective tax rate on Income before income taxes for the three and nine months ended September 30, 2021 was 29.6% and 19.1%, respectively. The effective tax rate for the nine months ended September 30, 2021 was lower than normal due primarily to the reduction of tax accruals resulting from expirations of state statute of limitations for prior tax years. The effective tax rate on Income before income taxes for the three and nine months ended September 30, 2020 was 3.7% and 4.7%, respectively. These effective tax rates were lower than normal due primarily to the income tax benefits of the CARES Act.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Earnings Per Share	Note 6 Earnings Per Share Basic earnings per share attributable to UScellular shareholders is computed by dividing Net income attributable to UScellular shareholders by the weighted average number of Common Shares outstanding during the period. Diluted earnings per share attributable to UScellular shareholders is computed by dividing Net income attributable to UScellular shareholders by the weighted average number of Common Shares outstanding during the period adjusted to include the effects of potentially dilutive securities. Potentially dilutive securities primarily include incremental shares issuable upon the exercise of outstanding stock options and the vesting of performance and restricted stock units. The amounts used in computing basic and diluted earnings per share attributable to UScellular shareholders were as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 (Dollars and shares in millions, except per share amounts) Net income attributable to UScellular shareholders $ 34 $ 85 $ 128 $ 224 Weighted average number of shares used in basic earnings per share 86 86 87 86 Effects of dilutive securities 1 2 1 1 Weighted average number of shares used in diluted earnings per share 87 88 88 87 Basic earnings per share attributable to UScellular shareholders $ 0.39 $ 0.98 $ 1.48 $ 2.60 Diluted earnings per share attributable to UScellular shareholders $ 0.38 $ 0.97 $ 1.46 $ 2.56 Certain Common Shares issuable upon the exercise of stock options or vesting of performance and restricted stock units were not included in weighted average diluted shares outstanding for the calculation of Diluted earnings per share attributable to UScellular shareholders because their effects were antidilutive. The number of such Common Shares excluded was 1 million for both the three and nine months ended September 30, 2021, respectively, and less than 1 million and 1 million for the three and nine months ended September 30, 2020, respectively.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Note 7 Intangible Assets Activity related to Licenses for the nine months ended September 30, 2021, is presented below: Licenses (Dollars in millions) Balance at December 31, 2020 $ 2,629 Acquisitions 1,464 Transferred to Assets held for sale (1) Capitalized interest 10 Balance at September 30, 2021 $ 4,102 In February 2021, the FCC announced by way of public notice that UScellular was the provisional winning bidder for 254 wireless spectrum licenses in the 3.7-3.98 GHz bands (Auction 107) for $1,283 million. UScellular paid $30 million of this amount in 2020 and the remainder in March 2021. The wireless spectrum licenses from Auction 107 were granted by the FCC in July 2021. Additionally, UScellular expects to be obligated to pay approximately $181 million in total from 2021 through 2024 related to relocation costs and accelerated relocation incentive payments. Such additional costs were accrued and capitalized at the time the licenses were granted. In October 2021, UScellular paid $36 million related to the additional costs. The spectrum must be cleared by incumbent providers before UScellular can access it. UScellular does not expect to have access to this spectrum until late 2023.

Investments in Unconsolidated E

Investments in Unconsolidated Entities	9 Months Ended
	Sep. 30, 2021
Equity Method Investments and Joint Ventures [Abstract]
Investments in unconsolidated entities	Note 8 Investments in Unconsolidated Entities Investments in unconsolidated entities consist of amounts invested in entities in which UScellular holds a noncontrolling interest. UScellular’s Investments in unconsolidated entities are accounted for using either the equity method or measurement alternative method as shown in the table below. The carrying value of measurement alternative method investments represents cost minus any impairments plus or minus any observable price changes. September 30, 2021 December 31, 2020 (Dollars in millions) Equity method investments $ 458 $ 428 Measurement alternative method investments 8 7 Total investments in unconsolidated entities $ 466 $ 435 The following table, which is based on unaudited information provided in part by third parties, summarizes the combined results of operations of UScellular’s equity method investments. Three Months Ended Nine Months Ended 2021 2020 2021 2020 (Dollars in millions) Revenues $ 1,756 $ 1,634 $ 5,225 $ 4,871 Operating expenses 1,244 1,136 3,735 3,392 Operating income 512 498 1,490 1,479 Other income (expense), net 6 (4) 15 (1) Net income $ 518 $ 494 $ 1,505 $ 1,478

Asset Retirement Obligations

Asset Retirement Obligations	9 Months Ended
	Sep. 30, 2021
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligation	Note 9 Asset Retirement Obligations Asset retirement obligations are included in Other deferred liabilities and credits in the Consolidated Balance Sheet. During the three months ended September 30, 2021, UScellular performed a review of the assumptions and estimated future costs related to asset retirement obligations. The results of the review and other changes in asset retirement obligations during the nine months ended September 30, 2021 were as follows: Asset Retirement Obligations (Dollars in millions) Balance at December 31, 2020 $ 249 Additional liabilities accrued 8 Revisions in estimated cash outflows 43 Disposition of assets (1) Accretion expense 11 Balance at September 30, 2021 $ 310

Debt

Debt	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Debt	Note 10 Debt Revolving Credit Agreement The following table summarizes the revolving credit agreement as of September 30, 2021: (Dollars in millions) Maximum borrowing capacity $ 300 Letters of credit outstanding $ — Amount borrowed $ — Amount available for use $ 300 Borrowings under the UScellular revolving credit agreement bear interest at a rate of London Inter-bank Offered Rate (LIBOR) plus 1.50%. In July 2021, UScellular amended and restated its revolving credit agreement. The maturity date of the agreement was extended to July 2026 and the consolidated leverage ratio, as defined in the agreement, may not be greater than 3.75 to 1.00 as of the end of any fiscal quarter. There were no significant changes to other terms of the revolving credit agreement. UScellular believes that they were in compliance with all of the financial covenants and other requirements set forth in their revolving credit agreement as of September 30, 2021. Term Loan Agreement The following table summarizes the term loan credit agreement as of September 30, 2021: (Dollars in millions) Maximum borrowing capacity $ 500 Amount borrowed $ 300 Amount available for use $ 200 In July 2021, UScellular amended and restated its term loan agreement to allow for an additional $200 million of borrowing capacity. Principal reductions on the existing borrowings are due and payable in quarterly installments of $0.75 million beginning in December 2021. Amounts borrowed under the existing term loan agreement will bear interest at a rate of LIBOR plus 2.0% and are due and payable in July 2028. Borrowings under the additional $200 million borrowing capacity will bear interest at a rate of LIBOR plus 2.50% and are due and payable in July 2031. Principal reductions on any new borrowings will be due and payable in quarterly installments beginning in December 2022 at a rate of 0.25% of the initial outstanding principal balance through September 2026 and at a rate of 0.625% of the initial outstanding principal balance from December 2026 through the maturity date. Additionally, the consolidated leverage ratio, as defined in the agreement, may not be greater than 3.75 to 1.00 as of the end of any fiscal quarter. There were no significant changes to other terms of the term loan agreement. UScellular believes that it was in compliance with all of the financial covenants and other requirements set forth in its senior term loan credit agreement as of September 30, 2021. Receivables Securitization Agreement At September 30, 2021, UScellular had a receivables securitization agreement for securitized borrowings using its equipment installment receivables for general corporate purposes. Amounts under the receivables securitization agreement may be borrowed, repaid and reborrowed from time to time until maturity in December 2022, which may be extended from time to time as specified therein. The outstanding borrowings bear interest at floating rates. In June 2021, UScellular increased the borrowing capacity under the receivables securitization agreement to $450 million. In July 2021, UScellular amended the receivables securitization agreement and as a result, the consolidated leverage ratio, as defined in the agreement, may not be greater than 3.75 to 1.00 as of the end of any fiscal quarter. There were no significant changes to other terms of the receivable securitization agreement. During the nine months ended September 30, 2021, UScellular borrowed $500 million under its receivables securitization agreement and repaid $200 million of the outstanding borrowings. As of September 30, 2021, the outstanding borrowings under the agreement were $325 million and the unused capacity under the agreement was $125 million, subject to sufficient collateral to satisfy the asset borrowing base provisions of the agreement. UScellular believes that it was in compliance with all of the financial covenants and other requirements set forth in its receivables securitization agreement as of September 30, 2021. As of September 30, 2021, the USCC Master Note Trust held $437 million of assets available to be pledged as collateral for the receivables securitization agreement. In October 2021, UScellular borrowed the remaining $125 million under the agreement. Other Long-Term Debt In May 2021, UScellular redeemed its outstanding $275 million of 7.25% Senior Notes due 2063. At time of redemption, $9 million of interest expense was recorded related to unamortized debt issuance costs related to the notes. The notes were redeemed at a price of 100% of the principal amount, including accrued and unpaid interest to the redemption date. In May 2021, UScellular issued $500 million of 5.5% Senior Notes due in June 2070, and received cash proceeds of $484 million after payment of debt issuance costs of $16 million. These funds will be used for general corporate purposes. Interest on these notes is payable quarterly beginning in September 2021. UScellular may redeem these notes, in whole or in part, at any time after June 2026 at a redemption price equal to 100% of the principal amount redeemed plus accrued and unpaid interest. In June 2021, UScellular redeemed its outstanding $300 million of 7.25% Senior Notes due 2064. At time of redemption, $10 million of interest expense was recorded related to unamortized debt issuance costs for these notes. The notes were redeemed at a price of 100% of the principal amount, including accrued and unpaid interest to the redemption date. In September 2021, UScellular redeemed its outstanding $342 million of 6.95% Senior Notes due 2060. At time of redemption, $11 million of interest expense was recorded related to unamortized debt issuance costs related to the notes. The notes were redeemed at a price of 100% of the principal amount, including accrued and unpaid interest to the redemption date.

Variable Interest Entities

Variable Interest Entities	9 Months Ended
	Sep. 30, 2021
Variable Interest Entities [Abstract]
Variable Interest Entities	Note 11 Variable Interest Entities Consolidated VIEs UScellular consolidates VIEs in which it has a controlling financial interest as defined by GAAP and is therefore deemed the primary beneficiary. UScellular reviews the criteria for a controlling financial interest at the time it enters into agreements and subsequently when events warranting reconsideration occur. These VIEs have risks similar to those described in the “Risk Factors” in this Form 10-Q and UScellular’s Form 10-K for the year ended December 31, 2020. UScellular formed USCC EIP LLC (Seller/Sub-Servicer), USCC Receivables Funding LLC (Transferor) and the USCC Master Note Trust (Trust), collectively the special purpose entities (SPEs), to facilitate a securitized borrowing using its equipment installment plan receivables. Under a Receivables Sale Agreement, UScellular wholly-owned, majority-owned and unconsolidated entities, collectively referred to as “affiliated entities”, transfer device equipment installment plan contracts to the Seller/Sub-Servicer. The Seller/Sub-Servicer aggregates device equipment installment plan contracts, and performs servicing, collection and all other administrative activities related to accounting for the equipment installment plan contracts. The Seller/Sub-Servicer sells the eligible equipment installment plan receivables to the Transferor, a bankruptcy remote entity, which subsequently sells the receivables to the Trust. The Trust, which is bankruptcy remote and isolated from the creditors of UScellular, will be responsible for issuing asset-backed variable funding notes (Notes), which are collateralized by the equipment installment plan receivables owned by the Trust. Given that UScellular has the power to direct the activities of these SPEs, and that these SPEs lack sufficient equity to finance their activities, UScellular is deemed to have a controlling financial interest in the SPEs and, therefore, consolidates them. All transactions with third parties (e.g., issuance of the asset-backed variable funding notes) will be accounted for as a secured borrowing due to the pledging of equipment installment plan contracts as collateral, significant continuing involvement in the transferred assets, subordinated interests of the cash flows, and continued evidence of control of the receivables. The following VIEs were formed to participate in FCC auctions of wireless spectrum licenses and to fund, establish, and provide wireless service with respect to any FCC wireless spectrum licenses won in the auctions: ▪ Advantage Spectrum, L.P. (Advantage Spectrum) and Sunshine Spectrum, Inc., the general partner of Advantage Spectrum; and ▪ King Street Wireless, L.P. (King Street Wireless) and King Street Wireless, Inc., the general partner of King Street Wireless. These particular VIEs are collectively referred to as designated entities. The power to direct the activities that most significantly impact the economic performance of these VIEs is shared. Specifically, the general partner of these VIEs has the exclusive right to manage, operate and control the limited partnerships and make all decisions to carry on the business of the partnerships. The general partner of each partnership needs the consent of the limited partner, an indirect UScellular 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, UScellular has the most significant level of exposure to the variability associated with the economic performance of the VIEs, indicating that UScellular is the primary beneficiary of the VIEs. Therefore, in accordance with GAAP, these VIEs are consolidated. UScellular also consolidates other VIEs that are limited partnerships that provide wireless service. A limited partnership is a variable interest entity unless the limited partners hold substantive participating rights or kick-out rights over the general partner. For certain limited partnerships, UScellular is the general partner and manages the operations. In these partnerships, the limited partners do not have substantive kick-out or participating rights and, further, such limited partners do not have the authority to remove the general partner. Therefore, these limited partnerships also are recognized as VIEs and are consolidated under the variable interest model. The following table presents the classification and balances of the consolidated VIEs’ assets and liabilities in UScellular’s Consolidated Balance Sheet. September 30, 2021 December 31, 2020 (Dollars in millions) Assets Cash and cash equivalents $ 30 $ 18 Short-term investments — 3 Accounts receivable 659 639 Inventory, net 2 3 Other current assets 33 21 Licenses 639 639 Property, plant and equipment, net 115 111 Operating lease right-of-use assets 44 39 Other assets and deferred charges 355 348 Total assets $ 1,877 $ 1,821 Liabilities Current liabilities $ 26 $ 28 Long-term operating lease liabilities 39 36 Other deferred liabilities and credits 22 20 Total liabilities 1 $ 87 $ 84 1 Total liabilities does not include amounts borrowed under the receivables securitization agreement. See Note 10 – Debt for additional information. Unconsolidated VIEs UScellular 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. UScellular’s total investment in these unconsolidated entities was $4 million and $5 million at September 30, 2021 and December 31, 2020, respectively, and is included in Investments in unconsolidated entities in UScellular’s Consolidated Balance Sheet. The maximum exposure from unconsolidated VIEs is limited to the investment held by UScellular in those entities. Other Related Matters UScellular made contributions, loans or advances to its VIEs totaling $64 million and $113 million, during the nine months ended September 30, 2021 and 2020, respectively, of which $32 million in 2021 and $79 million in 2020, are related to USCC EIP LLC as discussed above. UScellular 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. UScellular may finance such amounts with a combination of cash on hand, borrowings under its revolving credit or receivables securitization agreements and/or other long-term debt. There is no assurance that UScellular will be able to obtain additional financing on commercially reasonable terms or at all to provide such financial support. The limited partnership agreement of Advantage Spectrum also provides the general partner with a put option whereby the general partner may require the limited partner, a subsidiary of UScellular, to purchase its interest in the limited partnership. The general partner’s put option related to its interest in Advantage Spectrum was not exercised during the first exercise period and will be exercisable again in the third quarter of 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 UScellular, is recorded as Noncontrolling interests with redemption features in UScellular’s Consolidated Balance Sheet. Also in accordance with GAAP, minority share of income or changes in the redemption value of the put option, net of interest accrued on the loans, are recorded as a component of Net income attributable to noncontrolling interests, net of tax, in UScellular’s Consolidated Statement of Operations.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	The accounting policies of UScellular 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 UScellular, subsidiaries in which it has a controlling financial interest, general partnerships in which UScellular has a majority partnership interest and certain entities in which UScellular has a variable interest that requires consolidation under GAAP. Intercompany accounts and transactions have been eliminated.
Basis of Accounting	The unaudited consolidated financial statements included herein have been prepared by UScellular 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, UScellular 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 UScellular’s Annual Report on Form 10-K (Form 10-K) for the year ended December 31, 2020. The accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring items, unless otherwise disclosed) necessary for the fair statement of UScellular’s financial position as of September 30, 2021 and December 31, 2020 and its results of operations and changes in equity for the three and nine months ended September 30, 2021 and 2020, and its cash flows for the nine months ended September 30, 2021 and 2020. The Consolidated Statement of Comprehensive Income was not included because comprehensive income for the nine months ended September 30, 2021 and 2020, equaled net income. These results are not necessarily indicative of the results to be expected for the full year. UScellular has not changed its significant accounting and reporting policies from those disclosed in its Form 10-K for the year ended December 31, 2020.
Revenue from Contract with Customer	As practical expedients, revenue related to contracts of less than one year, generally month-to-month contracts, and contracts with a fixed per-unit price and variable quantity, are excluded from these estimates. UScellular expects that commission fees paid as a result of obtaining contracts are recoverable and therefore UScellular defers and amortizes these costs. As a practical expedient, costs with an amortization period of one year or less are expensed as incurred.Deferred commission fees are amortized based on the timing of transfer of the goods or services to which the assets relate, typically the contract term.
Variable Interest Entities	UScellular consolidates VIEs in which it has a controlling financial interest as defined by GAAP and is therefore deemed the primary beneficiary. UScellular reviews the criteria for a controlling financial interest at the time it enters into agreements and subsequently when events warranting reconsideration occur. These VIEs have risks similar to those described in the “Risk Factors” in this Form 10-Q and UScellular’s Form 10-K for the year ended December 31, 2020.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	9 Months Ended
	Sep. 30, 2021
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. September 30, 2021 December 31, 2020 (Dollars in millions) Cash and cash equivalents $ 231 $ 1,271 Restricted cash included in Other current assets 32 20 Cash, cash equivalents and restricted cash in the statement of cash flows $ 263 $ 1,291

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 2021
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	In the following table, UScellular's revenues are disaggregated by type of service, which represents the relevant categorization of revenues for UScellular, and timing of recognition. Service revenues are recognized over time and Equipment sales are point in time. Three Months Ended Nine Months Ended 2021 2020 2021 2020 (Dollars in millions) Revenues from contracts with customers: Retail service 1 $ 699 $ 674 $ 2,069 $ 2,004 Inbound roaming 30 42 86 119 Other service 38 39 117 110 Service revenues from contracts with customers 767 755 2,272 2,233 Equipment sales 228 252 720 674 Total revenues from contracts with customers 995 1,007 2,992 2,907 Operating lease income 21 20 61 57 Total operating revenues $ 1,016 $ 1,027 $ 3,053 $ 2,964 1 During the three months ended September 30, 2021, UScellular recorded a $9 million out-of-period error related to the timing of recognition of regulatory fee billings. This adjustment had the impact of increasing Service revenue by $9 million for the three and nine months ended September 30, 2021. UScellular determined that this adjustment was not material to any of the periods impacted.
Contract with Customer, Assets and Liabilities	The following table provides balances for contract assets from contracts with customers, which are recorded in Other current assets and Other assets and deferred charges in the Consolidated Balance Sheet, and contract liabilities from contracts with customers, which are recorded in Customer deposits and deferred revenues and Other deferred liabilities and credits in the Consolidated Balance Sheet. September 30, 2021 December 31, 2020 (Dollars in millions) Contract assets $ 10 $ 10 Contract liabilities $ 198 $ 171
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, 2021 and may vary from actual results. As practical expedients, revenue related to contracts of less than one year, generally month-to-month contracts, and contracts with a fixed per-unit price and variable quantity, are excluded from these estimates. Service Revenues (Dollars in millions) Remainder of 2021 $ 121 2022 139 Thereafter 157 Total $ 417

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Fair value measurements	UScellular has applied the provisions of fair value accounting for purposes of computing the fair value of financial instruments for disclosure purposes as displayed below. Level within the Fair Value Hierarchy September 30, 2021 December 31, 2020 Book Value Fair Value Book Value Fair Value (Dollars in millions) Long-term debt Retail 2 $ 1,500 $ 1,604 $ 1,917 $ 1,962 Institutional 2 535 679 535 707 Other 2 622 622 106 106

Equipment Installment Plans (Ta

Equipment Installment Plans (Tables)	9 Months Ended
	Sep. 30, 2021
Receivables [Abstract]
Equipment installment plan receivables	The following table summarizes equipment installment plan receivables. September 30, 2021 December 31, 2020 (Dollars in millions) Equipment installment plan receivables, gross $ 1,022 $ 1,007 Allowance for credit losses (70) (78) Equipment installment plan receivables, net $ 952 $ 929 Net balance presented in the Consolidated Balance Sheet as: Accounts receivable — Customers and agents (Current portion) $ 607 $ 590 Other assets and deferred charges (Non-current portion) 345 339 Equipment installment plan receivables, net $ 952 $ 929
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, 2021 December 31, 2020 Lowest Risk Lower Risk Slight Risk Higher Risk Total Lowest Risk Lower Risk Slight Risk Higher Risk Total (Dollars in millions) Unbilled $ 840 $ 93 $ 23 $ 6 $ 962 $ 819 $ 98 $ 22 $ 9 $ 948 Billed — current 36 5 1 — 42 36 5 1 1 43 Billed — past due 10 5 2 1 18 8 5 2 1 16 Total $ 886 $ 103 $ 26 $ 7 $ 1,022 $ 863 $ 108 $ 25 $ 11 $ 1,007 The balance of the equipment installment plan receivables as of September 30, 2021 on a gross basis by year of origination were as follows: 2018 2019 2020 2021 Total (Dollars in millions) Lowest Risk $ 1 $ 84 $ 346 $ 455 $ 886 Lower Risk — 6 36 61 103 Slight Risk — 1 6 19 26 Higher Risk — — 2 5 7 Total $ 1 $ 91 $ 390 $ 540 $ 1,022
Equipment installment plans allowance for credit losses	Activity for the nine months ended September 30, 2021 and 2020, in the allowance for credit losses for equipment installment plan receivables was as follows: September 30, 2021 September 30, 2020 (Dollars in millions) Allowance for credit losses, beginning of period $ 78 $ 84 Bad debts expense 21 34 Write-offs, net of recoveries (29) (43) Allowance for credit losses, end of period $ 70 $ 75

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Earnings per share	The amounts used in computing basic and diluted earnings per share attributable to UScellular shareholders were as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 (Dollars and shares in millions, except per share amounts) Net income attributable to UScellular shareholders $ 34 $ 85 $ 128 $ 224 Weighted average number of shares used in basic earnings per share 86 86 87 86 Effects of dilutive securities 1 2 1 1 Weighted average number of shares used in diluted earnings per share 87 88 88 87 Basic earnings per share attributable to UScellular shareholders $ 0.39 $ 0.98 $ 1.48 $ 2.60 Diluted earnings per share attributable to UScellular shareholders $ 0.38 $ 0.97 $ 1.46 $ 2.56

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Licenses	Activity related to Licenses for the nine months ended September 30, 2021, is presented below: Licenses (Dollars in millions) Balance at December 31, 2020 $ 2,629 Acquisitions 1,464 Transferred to Assets held for sale (1) Capitalized interest 10 Balance at September 30, 2021 $ 4,102

Investments in Unconsolidated_2

Investments in Unconsolidated Entities (Tables)	9 Months Ended
	Sep. 30, 2021
Equity Method Investments and Joint Ventures [Abstract]
Equity and measurement alternative method investments	UScellular’s Investments in unconsolidated entities are accounted for using either the equity method or measurement alternative method as shown in the table below. The carrying value of measurement alternative method investments represents cost minus any impairments plus or minus any observable price changes. September 30, 2021 December 31, 2020 (Dollars in millions) Equity method investments $ 458 $ 428 Measurement alternative method investments 8 7 Total investments in unconsolidated entities $ 466 $ 435 The following table, which is based on unaudited information provided in part by third parties, summarizes the combined results of operations of UScellular’s equity method investments. Three Months Ended Nine Months Ended 2021 2020 2021 2020 (Dollars in millions) Revenues $ 1,756 $ 1,634 $ 5,225 $ 4,871 Operating expenses 1,244 1,136 3,735 3,392 Operating income 512 498 1,490 1,479 Other income (expense), net 6 (4) 15 (1) Net income $ 518 $ 494 $ 1,505 $ 1,478

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	9 Months Ended
	Sep. 30, 2021
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligations	Asset Retirement Obligations (Dollars in millions) Balance at December 31, 2020 $ 249 Additional liabilities accrued 8 Revisions in estimated cash outflows 43 Disposition of assets (1) Accretion expense 11 Balance at September 30, 2021 $ 310

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Revolving credit facilities	The following table summarizes the revolving credit agreement as of September 30, 2021: (Dollars in millions) Maximum borrowing capacity $ 300 Letters of credit outstanding $ — Amount borrowed $ — Amount available for use $ 300 The following table summarizes the term loan credit agreement as of September 30, 2021: (Dollars in millions) Maximum borrowing capacity $ 500 Amount borrowed $ 300 Amount available for use $ 200

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	9 Months Ended
	Sep. 30, 2021
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 UScellular’s Consolidated Balance Sheet. September 30, 2021 December 31, 2020 (Dollars in millions) Assets Cash and cash equivalents $ 30 $ 18 Short-term investments — 3 Accounts receivable 659 639 Inventory, net 2 3 Other current assets 33 21 Licenses 639 639 Property, plant and equipment, net 115 111 Operating lease right-of-use assets 44 39 Other assets and deferred charges 355 348 Total assets $ 1,877 $ 1,821 Liabilities Current liabilities $ 26 $ 28 Long-term operating lease liabilities 39 36 Other deferred liabilities and credits 22 20 Total liabilities 1 $ 87 $ 84 1 Total liabilities does not include amounts borrowed under the receivables securitization agreement. See Note 10 – Debt for additional information.

Basis of Presentation - Narrati

Basis of Presentation - Narrative (Details)	Sep. 30, 2021
TDS | UScellular
Basis of Presentation [Line Items]
Ownership percentage	82.00%

Basis of Presentation - Cash, C

Basis of Presentation - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 231	$ 1,271
Restricted cash included in Other current assets	32	20
Cash, cash equivalents and restricted cash in the statement of cash flows	$ 263	$ 1,291	$ 948	$ 291

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of revenue
Revenue from contracts with customers	$ 995	$ 1,007	$ 2,992	$ 2,907
Operating lease income	21	20	61	57
Total operating revenues	1,016	1,027	$ 3,053	2,964
Out-of-period adjustment
Disaggregation of revenue
Immaterial error correction			During the three months ended September 30, 2021, UScellular recorded a $9 million out-of-period error related to the timing of recognition of regulatory fee billings. This adjustment had the impact of increasing Service revenue by $9 million for the three and nine months ended September 30, 2021. UScellular determined that this adjustment was not material to any of the periods impacted.
Transferred over time
Disaggregation of revenue
Revenue from contracts with customers	767	755	$ 2,272	2,233
Transferred over time | Retail service1
Disaggregation of revenue
Revenue from contracts with customers	699	674	2,069	2,004
Transferred over time | Retail service1 | Out-of-period adjustment
Disaggregation of revenue
Revenue from contracts with customers	9		9
Transferred over time | Inbound roaming
Disaggregation of revenue
Revenue from contracts with customers	30	42	86	119
Transferred over time | Other service
Disaggregation of revenue
Revenue from contracts with customers	38	39	117	110
Transferred at point in time | Equipment sales
Disaggregation of revenue
Revenue from contracts with customers	$ 228	$ 252	$ 720	$ 674

Revenue Recognition - Contract

Revenue Recognition - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Contract assets	$ 10	$ 10
Contract liabilities	198	$ 171
Revenue recognized	$ 120

Revenue Recognition - Performan

Revenue Recognition - Performance Obligations (Details) $ in Millions	Sep. 30, 2021USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation amount	$ 417
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation amount	$ 121
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]: 2022-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation amount	$ 139
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]: 2023-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation amount	$ 157
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, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Capitalized Contract Cost
Contract cost asset	$ 121		$ 121		$ 124
Amortization of contract cost assets	$ 24	$ 26	$ 75	$ 79

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
6.7% Senior Notes
Financial Instruments
Interest rate	6.70%
Book Value | Retail
Financial Instruments
Long-term debt	$ 1,500	$ 1,917
Book Value | Institutional
Financial Instruments
Long-term debt	535	535
Book Value | Other
Financial Instruments
Long-term debt	622	106
Fair Value | Level 2 | Retail
Financial Instruments
Long-term debt	1,604	1,962
Fair Value | Level 2 | Institutional
Financial Instruments
Long-term debt	679	707
Fair Value | Level 2 | Other
Financial Instruments
Long-term debt	$ 622	$ 106
Interest rate | Institutional and Other | Minimum
Financial Instruments
Fair value assumption, interest rate	1.24%	1.35%
Interest rate | Institutional and Other | Maximum
Financial Instruments
Fair value assumption, interest rate	4.19%	3.75%

Equipment Installment Plans - E

Equipment Installment Plans - EIP Receivables (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Equipment installment plan receivables, gross	$ 1,022	$ 1,007
Allowance for credit losses	(70)	(78)
Equipment installment plan receivables, net	952	929
Accounts receivable — Customers and agents (Current portion)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Equipment installment plan receivables, net	607	590
Other assets and deferred charges (Non-current portion)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Equipment installment plan receivables, net	$ 345	$ 339

Equipment Installment Plans - G

Equipment Installment Plans - Gross Receivables by Credit Category (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	$ 1,022	$ 1,007
2018	1
2019	91
2020	390
2021	540
Unbilled | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	962	948
Billed | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	42	43
Billed | Past Due
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	18	16
Lowest Risk
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	886	863
2018	1
2019	84
2020	346
2021	455
Lowest Risk | Unbilled | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	840	819
Lowest Risk | Billed | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	36	36
Lowest Risk | Billed | Past Due
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	10	8
Lower Risk
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	103	108
2018	0
2019	6
2020	36
2021	61
Lower Risk | Unbilled | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	93	98
Lower Risk | Billed | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	5	5
Lower Risk | Billed | Past Due
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	5	5
Slight Risk
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	26	25
2018	0
2019	1
2020	6
2021	19
Slight Risk | Unbilled | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	23	22
Slight Risk | Billed | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	1	1
Slight Risk | Billed | Past Due
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	2	2
Higher Risk
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	7	11
2018	0
2019	0
2020	2
2021	5
Higher Risk | Unbilled | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	6	9
Higher Risk | Billed | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	0	1
Higher Risk | Billed | Past Due
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	$ 1	$ 1

Equipment Installment Plans - A

Equipment Installment Plans - Allowance for Credit Losses (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Allowance for credit losses
Allowance for credit losses, beginning of period	$ 78
Allowance for credit losses, end of period	70
Equipment Installment Plan Receivable
Allowance for credit losses
Allowance for credit losses, beginning of period	78	$ 84
Bad debts expense	21	34
Write-offs, net of recoveries	(29)	(43)
Allowance for credit losses, end of period	$ 70	$ 75

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Effective tax rate	29.60%	3.70%	19.10%	4.70%

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, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share [Abstract]
Net income attributable to UScellular shareholders	$ 34	$ 85	$ 128	$ 224
Weighted average number of shares used in basic earnings per share (in shares)	86	86	87	86
Effects of dilutive securities (in shares)	1	2	1	1
Weighted average number of shares used in diluted earnings per share (in shares)	87	88	88	87
Basic earnings per share attributable to UScellular shareholders (USD per share)	$ 0.39	$ 0.98	$ 1.48	$ 2.60
Diluted earnings per share attributable to UScellular shareholders (in shares)	$ 0.38	$ 0.97	$ 1.46	$ 2.56

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	1		1	1
Maximum
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)		1

Intangible Assets (Details)

Intangible Assets (Details) $ in Millions	9 Months Ended
	Sep. 30, 2021USD ($)
Licenses
Balance, beginning of period	$ 2,629
Acquisitions	1,464
Transferred to Assets held for sale	(1)
Capitalized interest	10
Balance, end of period	$ 4,102

Intangible Assets - Narrative (

Intangible Assets - Narrative (Details) $ in Millions	Oct. 01, 2021USD ($)	Sep. 30, 2021USD ($)license	Sep. 30, 2020USD ($)	Dec. 31, 2020USD ($)	Dec. 31, 2024USD ($)
Indefinite-lived Intangible Assets [Line Items]
Cash paid for licenses		$ 1,263	$ 169
Auction 107
Indefinite-lived Intangible Assets [Line Items]
Licenses won | license		254
Total winning bid		$ 1,283
FCC upfront payment				$ 30
Auction 107 | Subsequent event
Indefinite-lived Intangible Assets [Line Items]
Cash paid for licenses	$ 36				$ 181

Investments in Unconsolidated_3

Investments in Unconsolidated Entities - Schedule of Investments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Equity Method Investments and Joint Ventures [Abstract]
Equity method investments	$ 458		$ 458		$ 428
Measurement alternative method investments	8		8		7
Total investments in unconsolidated entities	466		466		$ 435
Schedule of Equity Method Investments [Line Items]
Revenues	1,016	$ 1,027	3,053	$ 2,964
Operating expenses	971	962	2,888	2,796
Operating income	45	65	165	168
Net income	35	85	132	227
Equity method investments
Schedule of Equity Method Investments [Line Items]
Revenues	1,756	1,634	5,225	4,871
Operating expenses	1,244	1,136	3,735	3,392
Operating income	512	498	1,490	1,479
Other income (expense), net	6	(4)	15	(1)
Net income	$ 518	$ 494	$ 1,505	$ 1,478

Asset Retirement Obligations (D

Asset Retirement Obligations (Details) $ in Millions	9 Months Ended
	Sep. 30, 2021USD ($)
Asset Retirement Obligation Disclosure [Abstract]
Balance at beginning of year	$ 249
Additional liabilities accrued	8
Revisions in estimated cash outflows	43
Disposition of assets	(1)
Accretion expense	11
Balance at end of year	$ 310

Debt - Revolving Credit Agreeme

Debt - Revolving Credit Agreement (Details) - Revolving credit facility $ in Millions	9 Months Ended
	Sep. 30, 2021USD ($)
Long-term debt
Maximum borrowing capacity	$ 300
Letters of credit outstanding	0
Amount borrowed	0
Amount available for use	$ 300
Consolidated leverage ratio	3.75
LIBOR rate
Long-term debt
Contractual spread	1.50%

Debt - Term Loan Agreement (Det

Debt - Term Loan Agreement (Details)	Dec. 01, 2026	Dec. 01, 2022	Dec. 01, 2021USD ($)	Sep. 30, 2021USD ($)
Term loan facility
Long-term debt
Maximum borrowing capacity				$ 500,000,000
Amount borrowed				300,000,000
Amount available for use				$ 200,000,000
Term loan facility | Subsequent event
Long-term debt
Repayment of long-term debt			$ 750,000
Term loan facility | LIBOR rate
Long-term debt
Contractual spread				2.00%
Term Loan Amendment
Long-term debt
Borrowing capacity increase				$ 200,000,000
Consolidated leverage ratio				3.75
Term Loan Amendment | Subsequent event
Long-term debt
Repayment of long-term debt rate	0.625%	0.25%
Term Loan Amendment | LIBOR rate
Long-term debt
Contractual spread				2.50%

Debt - Receivables Securitizati

Debt - Receivables Securitization Agreement (Details) $ in Millions	Oct. 01, 2021USD ($)	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)
Debt Instrument [Line Items]
Amount borrowed		$ 1,217	$ 625
Repayment of long-term debt		1,117	$ 6
Subsequent event
Debt Instrument [Line Items]
Amount borrowed	$ 125
Receivables securitization agreement
Debt Instrument [Line Items]
Outstanding borrowings		325
Amount borrowed		500
Repayment of long-term debt		200
Assets available to be pledged		437
Maximum borrowing capacity		450
Amount available for use		$ 125
Consolidated leverage ratio		3.75

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($) $ in Millions	Sep. 01, 2021	Jun. 16, 2021	May 17, 2021	May 12, 2021
7.25% 2063 Senior Notes
Debt Instrument [Line Items]
Amount redeemed				$ 275
Interest rate				7.25%
Unamortized debt issuance costs				$ 9
Redemption price rate				100.00%
5.5% 2070 Senior Notes
Debt Instrument [Line Items]
Interest rate			5.50%
Redemption price rate			100.00%
Principal amount			$ 500
Long-term Debt			484
Debt issuance costs			$ 16
7.25% 2064 Senior Notes
Debt Instrument [Line Items]
Amount redeemed		$ 300
Interest rate		7.25%
Unamortized debt issuance costs		$ 10
Redemption price rate		100.00%
6.95% Senior Notes
Debt Instrument [Line Items]
Amount redeemed	$ 342
Interest rate	6.95%
Unamortized debt issuance costs	$ 11
Redemption price rate	100.00%

Variable Interest Entities - Co

Variable Interest Entities - Consolidated Balance Sheet (Details) - USD ($) $ in Millions		Sep. 30, 2021	Dec. 31, 2020
Assets
Cash and cash equivalents		$ 231	$ 1,271
Short-term investments		0	3
Accounts receivable		910	915
Inventory, net		136	146
Other current assets		42	29
Licenses		4,102	2,629
Property, plant and equipment, net		2,457	2,466
Operating lease right-of-use assets		953	924
Other assets and deferred charges		592	602
Total assets	[1]	10,144	9,681
Liabilities
Current liabilities		856	871
Long-term operating lease liabilities		890	875
Other deferred liabilities and credits		565	376
Consolidated Variable Interest Entities
Assets
Cash and cash equivalents		30	18
Short-term investments		0	3
Accounts receivable		659	639
Inventory, net		2	3
Other current assets		33	21
Licenses		639	639
Property, plant and equipment, net		115	111
Operating lease right-of-use assets		44	39
Other assets and deferred charges		355	348
Total assets		1,877	1,821
Liabilities
Current liabilities		26	28
Long-term operating lease liabilities		39	36
Other deferred liabilities and credits		22	20
Total liabilities		$ 87	$ 84
[1]	The consolidated total assets as of September 30, 2021 and December 31, 2020, include assets held by consolidated variable interest entities (VIEs) of $1,301 million and $1,060 million, respectively, which are not available to be used to settle the obligations of UScellular. The consolidated total liabilities as of September 30, 2021 and December 31, 2020, include certain liabilities of consolidated VIEs of $19 million and $20 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of UScellular. See Note 11 — Variable Interest Entities for additional information.

Variable Interest Entities - Na

Variable Interest Entities - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Variable Interest Entity [Line Items]
Investments in unconsolidated entities, maximum exposure	$ 4		$ 5
Capital contributions, loans or advances	64	$ 113
USCC EIP LLC
Variable Interest Entity [Line Items]
Capital contributions, loans or advances	$ 32	$ 79