United States Cellular Corporat (UZD) 10-Q 4 Aug 23 2023 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information	6 Months Ended
	Jun. 30, 2023 shares
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
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	2023
Document Fiscal Period Focus	Q2
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	52,266,500
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		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Operating revenues
Total operating revenues	$ 957	$ 1,027	$ 1,942	$ 2,037
Operating expenses
Selling, general and administrative	341	339	686	663
Depreciation, amortization and accretion	161	172	330	342
Loss on impairment of licenses	0	3	0	3
(Gain) loss on asset disposals, net	3	6	13	8
Total operating expenses	923	987	1,881	1,926
Operating income	34	40	61	111
Investment and other income (expense)
Equity in earnings of unconsolidated entities	38	37	82	82
Interest and dividend income	3	3	5	4
Interest expense	(51)	(40)	(99)	(73)
Total investment and other income (expense)	(10)	0	(12)	13
Income before income taxes	24	40	49	124
Income tax expense	19	18	29	50
Net income	5	22	20	74
Less: Net income attributable to noncontrolling interests, net of tax	0	1	2	3
Net income attributable to UScellular shareholders	$ 5	$ 21	$ 18	$ 71
Basic weighted average shares outstanding (in shares)	85	86	85	86
Basic earnings per share attributable to UScellular shareholders	$ 0.05	$ 0.25	$ 0.21	$ 0.82
Diluted weighted average shares outstanding (in shares)	86	87	86	87
Diluted earnings per share attributable to UScellular shareholders	$ 0.05	$ 0.25	$ 0.20	$ 0.82
Service
Operating revenues
Total operating revenues	$ 760	$ 783	$ 1,527	$ 1,570
Operating expenses
Cost of goods and services	190	192	372	377
Equipment sales
Operating revenues
Total operating revenues	197	244	415	467
Operating expenses
Cost of goods and services	$ 228	$ 275	$ 480	$ 533

Consolidated Statement of Cash

Consolidated Statement of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities
Net income	$ 20	$ 74
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities
Depreciation, amortization and accretion	330	342
Bad debts expense	50	51
Stock-based compensation expense	6	14
Deferred income taxes, net	25	31
Equity in earnings of unconsolidated entities	(82)	(82)
Distributions from unconsolidated entities	78	80
Loss on impairment of licenses	0	3
(Gain) loss on asset disposals, net	13	8
Other operating activities	3	3
Changes in assets and liabilities from operations
Accounts receivable	35	(17)
Equipment installment plans receivable	7	(25)
Inventory	52	(33)
Accounts payable	(106)	(8)
Customer deposits and deferred revenues	(9)	6
Accrued taxes	1	135
Accrued interest	(1)	1
Other assets and liabilities	(32)	(5)
Net cash provided by operating activities	390	578
Cash flows from investing activities
Cash paid for additions to property, plant and equipment	(351)	(288)
Cash paid for licenses	(8)	(563)
Advance payments for license acquisitions	0	(1)
Other investing activities	14	1
Net cash used in investing activities	(345)	(851)
Cash flows from financing activities
Issuance of long-term debt	115	625
Repayment of long-term debt	(156)	(227)
Issuance of short-term debt	0	60
Repayment of short-term debt	(60)	0
Common Shares reissued for benefit plans, net of tax payments	(6)	(5)
Repurchase of Common Shares	0	(18)
Distributions to noncontrolling interests	(2)	(2)
Cash paid for software license agreements	(19)	(3)
Other financing activities	(1)	(1)
Net cash provided by (used in) financing activities	(129)	429
Net increase (decrease) in cash, cash equivalents and restricted cash	(84)	156
Cash, cash equivalents and restricted cash
Beginning of period	308	199
End of period	$ 224	$ 355

Consolidated Balance Sheet

Consolidated Balance Sheet - USD ($) $ in Millions		Jun. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents		$ 186	$ 273
Accounts receivable
Customers and agents, less allowances of $66 and $70, respectively		917	985
Roaming		2	4
Other, less allowances of $3 and $2, respectively		65	83
Inventory, net		210	261
Prepaid expenses		69	68
Income taxes receivable		4	4
Other current assets		47	45
Total current assets		1,500	1,723
Assets held for sale		16	26
Licenses		4,694	4,690
Investments in unconsolidated entities		457	452
Property, plant and equipment
In service and under construction		9,491	9,334
Less: Accumulated depreciation and amortization		6,851	6,710
Property, plant and equipment, net		2,640	2,624
Operating lease right-of-use assets		912	918
Other assets and deferred charges		670	686
Total assets	[1]	10,889	11,119
Current liabilities
Current portion of long-term debt		54	13
Accounts payable
Trade		240	344
Customer deposits and deferred revenues		231	239
Accrued taxes		32	35
Accrued compensation		54	84
Short-term operating lease liabilities		134	133
Other current liabilities		254	335
Total current liabilities		1,008	1,195
Deferred liabilities and credits
Deferred income tax liability, net		732	708
Long-term operating lease liabilities		836	843
Other deferred liabilities and credits		607	604
Long-term debt, net		3,105	3,187
Commitments and contingencies
Noncontrolling interests with redemption features		12	12
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 85 shares (33 Series A Common and 52 Common Shares) Par Value ($1.00 per share) ($33 Series A Common and $55 Common Shares)		88	88
Additional paid-in capital		1,710	1,703
Treasury shares, at cost, 3 Common Shares		(80)	(98)
Retained earnings		2,855	2,861
Total UScellular shareholders' equity		4,573	4,554
Noncontrolling interests		16	16
Total equity		4,589	4,570
Total liabilities and equity	[1]	10,889	11,119
Affiliated
Accounts payable		$ 9	$ 12
[1]The consolidated total assets as of June 30, 2023 and December 31, 2022, include assets held by consolidated variable interest entities (VIEs) of $1,406 million and $1,265 million, respectively, which are not available to be used to settle the obligations of UScellular. The consolidated total liabilities as of June 30, 2023 and December 31, 2022, include certain liabilities of consolidated VIEs of $25 million for which the creditors of the VIEs have no recourse to the general credit of UScellular. See Note 10 — Variable Interest Entities for additional information.

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions		Jun. 30, 2023	Dec. 31, 2022
Accounts receivable
Customer and agent allowances		$ 66	$ 70
Other allowances		$ 3	$ 2
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)		85,000,000	85,000,000
Par value		$ 88	$ 88
Variable Interest Entities VIEs
Total assets	[1]	$ 10,889	$ 11,119
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)		52,000,000	52,000,000
Par value per share (USD per share)		$ 1	$ 1
Par value		$ 55	$ 55
Treasury shares		3,000,000	3,000,000
Consolidated Variable Interest Entities
Variable Interest Entities VIEs
Total assets		$ 2,029	$ 2,071
Liabilities		106	166
Consolidated Variable Interest Entities | No recourse
Variable Interest Entities VIEs
Liabilities		25	25
Consolidated Variable Interest Entities | Assets held
Variable Interest Entities VIEs
Total assets		$ 1,406	$ 1,265
[1]The consolidated total assets as of June 30, 2023 and December 31, 2022, include assets held by consolidated variable interest entities (VIEs) of $1,406 million and $1,265 million, respectively, which are not available to be used to settle the obligations of UScellular. The consolidated total liabilities as of June 30, 2023 and December 31, 2022, include certain liabilities of consolidated VIEs of $25 million for which the creditors of the VIEs have no recourse to the general credit of UScellular. See Note 10 — Variable Interest Entities for additional information.

Consolidated Statement of Chang

Consolidated Statement of Changes in Equity - USD ($) $ in Millions	Total	Series A Common and Common shares	Additional paid-in capital	Treasury shares	Retained earnings	Total UScellular shareholders' equity	Noncontrolling interests
Beginning balance at Dec. 31, 2021	$ 4,563	$ 88	$ 1,678	$ (68)	$ 2,849	$ 4,547	$ 16
Net income (loss) attributable to UScellular shareholders	71				71	71
Net income attributable to noncontrolling interests classified as equity	2					0	2
Repurchase of Common Shares	(19)			(19)		(19)
Incentive and compensation plans	9		14	12	(17)	9
Distributions to noncontrolling interests	(2)					0	(2)
Ending balance at Jun. 30, 2022	4,624	88	1,692	(75)	2,903	4,608	16
Beginning balance at Mar. 31, 2022	4,609	88	1,685	(77)	2,897	4,593	16
Net income (loss) attributable to UScellular shareholders	21				21	21
Net income attributable to noncontrolling interests classified as equity	1					0	1
Repurchase of Common Shares	(9)			(9)		(9)
Incentive and compensation plans	3		7	11	(15)	3
Distributions to noncontrolling interests	(1)					0	(1)
Ending balance at Jun. 30, 2022	4,624	88	1,692	(75)	2,903	4,608	16
Beginning balance at Dec. 31, 2022	4,570	88	1,703	(98)	2,861	4,554	16
Net income (loss) attributable to UScellular shareholders	18				18	18
Net income attributable to noncontrolling interests classified as equity	2					0	2
Incentive and compensation plans	1		7	18	(24)	1
Distributions to noncontrolling interests	(2)					0	(2)
Ending balance at Jun. 30, 2023	4,589	88	1,710	(80)	2,855	4,573	16
Beginning balance at Mar. 31, 2023	4,583	88	1,704	(96)	2,872	4,568	15
Net income (loss) attributable to UScellular shareholders	5				5	5
Net income attributable to noncontrolling interests classified as equity	2					0	2
Incentive and compensation plans	0		6	16	(22)	0
Distributions to noncontrolling interests	(1)					0	(1)
Ending balance at Jun. 30, 2023	$ 4,589	$ 88	$ 1,710	$ (80)	$ 2,855	$ 4,573	$ 16

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2023
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 83%-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 into the UScellular financial statements under GAAP. Intercompany accounts and transactions have been eliminated. 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, 2022. 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 June 30, 2023 and December 31, 2022, its results of operations and changes in equity for the three and six months ended June 30, 2023 and 2022, and its cash flows for the six months ended June 30, 2023 and 2022. The Consolidated Statement of Comprehensive Income was not included because comprehensive income for the three and six months ended June 30, 2023 and 2022, 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, 2022. Software License Agreements Certain software licenses are recorded as acquisitions of property, plant and equipment and the incurrence of a liability to the extent that the license fees are not fully paid at acquisition, and are treated as non-cash activity in the Consolidated Statement of Cash Flows. Such acquisitions of software licenses that are not reflected as Cash paid for additions to property, plant and equipment were $11 million and $139 million for the six months ended June 30, 2023 and 2022, respectively. Restricted Cash UScellular presents restricted cash with cash and cash equivalents in the Consolidated Statement of Cash Flows. Restricted cash primarily consists of balances required under the receivables securitization agreement. See Note 9 — Debt for additional information related to the receivables securitization agreement. The following table provides a reconciliation of Cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheet to the total of the amounts in the Consolidated Statement of Cash Flows. June 30, 2023 December 31, 2022 (Dollars in millions) Cash and cash equivalents $ 186 $ 273 Restricted cash included in Other current assets 38 35 Cash, cash equivalents and restricted cash in the statement of cash flows $ 224 $ 308 Recent Development On August 4, 2023, TDS and UScellular announced that the Boards of Directors of both companies have decided to initiate a process to explore a range of strategic alternatives for UScellular. The initiation of this process does not impact the June 30, 2023 financial statements. At this time, UScellular cannot predict the ultimate outcome of such process or estimate the potential impact of such process on the financial statements.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2023
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 recognized at a point in time. Three Months Ended Six Months Ended 2023 2022 2023 2022 (Dollars in millions) Revenues from contracts with customers: Retail service $ 686 $ 700 $ 1,378 $ 1,402 Inbound roaming 8 18 17 39 Other service 41 42 82 84 Service revenues from contracts with customers 735 760 1,477 1,525 Equipment sales 197 244 415 467 Total revenues from contracts with customers 932 1,004 1,892 1,992 Operating lease income 25 23 50 45 Total operating revenues $ 957 $ 1,027 $ 1,942 $ 2,037 Contract Balances The following table provides balances for contract assets from contracts with customers, which are recorded in Other current assets and Other assets and deferred charges in the Consolidated Balance Sheet, and contract liabilities from contracts with customers, which are recorded in Customer deposits and deferred revenues and Other deferred liabilities and credits in the Consolidated Balance Sheet. June 30, 2023 December 31, 2022 (Dollars in millions) Contract assets $ 5 $ 5 Contract liabilities $ 341 $ 349 Revenue recognized related to contract liabilities existing at January 1, 2023 was $152 million for the six months ended June 30, 2023. Transaction price allocated to the remaining performance obligations The following table includes estimated service revenues expected to be recognized related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. These estimates represent service revenues to be recognized when 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 June 30, 2023 and may vary from actual results. As practical expedients, revenue related to contracts of less than one year, generally month-to-month contracts, and contracts with a fixed per-unit price and variable quantity, are excluded from these estimates. Service Revenues (Dollars in millions) Remainder of 2023 $ 173 2024 151 Thereafter 92 Total $ 416 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 $126 million at June 30, 2023, and $131 million at December 31, 2022, 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 $23 million and $47 million for the three and six months ended June 30, 2023, respectively, and $24 million and $49 million for the three and six months ended June 30, 2022, respectively, and was included in Selling, general and administrative expenses.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 3 Fair Value Measurements As of June 30, 2023 and December 31, 2022, 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 June 30, 2023 December 31, 2022 Book Value Fair Value Book Value Fair Value (Dollars in millions) Long-term debt Retail 2 $ 1,500 $ 917 $ 1,500 $ 899 Institutional 2 536 381 536 395 Other 2 1,163 1,163 1,208 1,208 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 term loan credit agreements, receivables securitization agreement and an export credit financing 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 6.24% to 8.77% and 5.38% to 8.28% at June 30, 2023 and December 31, 2022, respectively.

Equipment Installment Plans

Equipment Installment Plans	6 Months Ended
	Jun. 30, 2023
Receivables [Abstract]
Equipment Installment Plans	Note 4 Equipment Installment Plans UScellular sells devices to customers under equipment installment plans over a specified time period. For certain equipment installment plans, after a specified period of time or amount of payments, the customer may have the right to upgrade to a new device and have the remaining unpaid equipment installment contract balance waived, subject to certain conditions, including trading in the original device in good working condition and signing a new equipment installment contract. The following table summarizes equipment installment plan receivables. June 30, 2023 December 31, 2022 (Dollars in millions) Equipment installment plan receivables, gross $ 1,159 $ 1,211 Allowance for credit losses (92) (96) Equipment installment plan receivables, net $ 1,067 $ 1,115 Net balance presented in the Consolidated Balance Sheet as: Accounts receivable — Customers and agents (Current portion) $ 604 $ 646 Other assets and deferred charges (Non-current portion) 463 469 Equipment installment plan receivables, net $ 1,067 $ 1,115 UScellular uses various inputs to evaluate the credit profiles of its customers, including internal data, information from credit bureaus and other sources. From this evaluation, a credit class is assigned to the customer that determines the number of eligible lines, the amount of credit available, and the down payment requirement, if any. These credit classes are grouped into four credit categories: lowest risk, lower risk, slight risk and higher risk. A customer's assigned credit class is reviewed periodically and a change is made, if appropriate. An equipment installment plan billed amount is considered past due if not paid within 30 days. The balance and aging of the equipment installment plan receivables on a gross basis by credit category were as follows: June 30, 2023 December 31, 2022 Lowest Risk Lower Risk Slight Risk Higher Risk Total Lowest Risk Lower Risk Slight Risk Higher Risk Total (Dollars in millions) Unbilled $ 979 $ 91 $ 20 $ 6 $ 1,096 $ 1,016 $ 98 $ 22 $ 5 $ 1,141 Billed — current 39 4 1 — 44 41 5 2 — 48 Billed — past due 10 6 2 1 19 13 6 2 1 22 Total $ 1,028 $ 101 $ 23 $ 7 $ 1,159 $ 1,070 $ 109 $ 26 $ 6 $ 1,211 The balance of the equipment installment plan receivables as of June 30, 2023 on a gross basis by year of origination were as follows: 2020 2021 2022 2023 Total (Dollars in millions) Lowest Risk $ 3 $ 160 $ 559 $ 306 $ 1,028 Lower Risk — 10 53 38 101 Slight Risk — 1 10 12 23 Higher Risk — — 3 4 7 Total $ 3 $ 171 $ 625 $ 360 $ 1,159 The write-offs, net of recoveries for the six months ended June 30, 2023 on a gross basis by year of origination were as follows: 2020 2021 2022 2023 Total (Dollars in millions) Write-offs, net of recoveries $ 1 $ 9 $ 28 $ 1 $ 39 Activity for the six months ended June 30, 2023 and 2022, in the allowance for credit losses for equipment installment plan receivables was as follows: June 30, 2023 June 30, 2022 (Dollars in millions) Allowance for credit losses, beginning of period $ 96 $ 72 Bad debts expense 35 37 Write-offs, net of recoveries (39) (35) Allowance for credit losses, end of period $ 92 $ 74

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Note 5 Income Taxes The effective tax rate on Income before income taxes for the three and six months ended June 30, 2023 was 77.2% and 59.8%, respectively. These effective tax rates were higher than normal due primarily to the decrease in Income before income taxes which increased the effective tax rate impact of recurring tax adjustments including nondeductible interest and compensation expenses, as well as discrete increases in valuation allowances which reduced net state deferred tax assets. The effective tax rate on Income before income taxes for the three and six months ended June 30, 2022 was 43.7% and 40.1%, respectively. These effective tax rates reflect a combined rate of federal and state taxes, adjusted for impacts of recurring tax adjustments including nondeductible interest and compensation expenses.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Earnings Per Share	Note 6 Earnings Per Share Basic earnings per share attributable to 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 Six Months Ended 2023 2022 2023 2022 (Dollars and shares in millions, except per share amounts) Net income attributable to UScellular shareholders $ 5 $ 21 $ 18 $ 71 Weighted average number of shares used in basic earnings per share 85 86 85 86 Effects of dilutive securities 1 1 1 1 Weighted average number of shares used in diluted earnings per share 86 87 86 87 Basic earnings per share attributable to UScellular shareholders $ 0.05 $ 0.25 $ 0.21 $ 0.82 Diluted earnings per share attributable to UScellular shareholders $ 0.05 $ 0.25 $ 0.20 $ 0.82 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 2 million for both the three and six months ended June 30, 2023, and 1 million for both the three and six months ended June 30, 2022.

Intangible Assets

Intangible Assets	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Note 7 Intangible Assets In February 2021, the Federal Communications Commission (FCC) announced by way of public notice that UScellular was the provisional winning bidder for 254 wireless spectrum licenses in the 3.7-3.98 GHz bands (Auction 107) for $1,283 million. UScellular paid $30 million of this amount in 2020 and the remainder in March 2021. The wireless spectrum licenses from Auction 107 were granted by the FCC in July 2021. Additionally, UScellular expects to be obligated to pay approximately $185 million in total from 2021 through 2024 related to relocation costs and accelerated relocation incentive payments. Such additional costs were accrued and capitalized at the time the licenses were granted, and are adjusted as necessary as the estimated obligation changes. UScellular paid $36 million, $8 million and $3 million related to the additional costs in October 2021, September 2022 and March 2023, respectively. At June 30, 2023, invoices totaling $10 million are included in Accounts payable in the Consolidated Balance Sheet and are expected to be paid in August 2023. At June 30, 2023, the remaining estimated payments of approximately $122 million and $6 million are included in Other current liabilities and Other deferred liabilities and credits, respectively, and at December 31, 2022, the remaining estimated payments of approximately $133 million and $8 million are included in Other current liabilities and Other deferred liabilities and credits, respectively, in the Consolidated Balance Sheet. The spectrum must be cleared by incumbent providers before UScellular can access it. UScellular does not expect to have access to this spectrum until late 2023.

Investments in Unconsolidated E

Investments in Unconsolidated Entities	6 Months Ended
	Jun. 30, 2023
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 the equity method, measurement alternative method or net asset value practical expedient method as shown in the table below. The carrying value of measurement alternative method investments represents cost minus any impairments plus or minus any observable price changes. June 30, 2023 December 31, 2022 (Dollars in millions) Equity method investments $ 444 $ 439 Measurement alternative method investments 4 4 Investments recorded using the net asset value practical expedient 9 9 Total investments in unconsolidated entities $ 457 $ 452 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 Six Months Ended 2023 2022 2023 2022 (Dollars in millions) Revenues $ 1,762 $ 1,772 $ 3,564 $ 3,581 Operating expenses 1,357 1,390 2,717 2,761 Operating income 405 382 847 820 Other income (expense), net 9 (1) (7) (5) Net income $ 414 $ 381 $ 840 $ 815

Debt

Debt	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Debt	Note 9 Debt Receivables Securitization Agreement UScellular, through its subsidiaries, has a receivables securitization agreement to permit securitized borrowings using its equipment installment plan receivables. Amounts under the agreement may be borrowed, repaid and reborrowed from time to time until March 2024. Unless the agreement is amended to extend the maturity date, repayments based on receivable collections commence in April 2024. The outstanding borrowings bear interest at a rate of the lender's cost of funds (which has historically tracked closely to Secured Overnight Financing Rate (SOFR)) plus 0.90%. During the six months ended June 30, 2023, UScellular borrowed $115 million and repaid $150 million under its receivables securitization agreement. As of June 30, 2023, the outstanding borrowings under the agreement were $240 million and the unused borrowing capacity was $210 million, subject to sufficient collateral to satisfy the asset borrowing base provisions of the agreement. As of June 30, 2023, $38 million of the outstanding borrowings were classified as Current portion of long-term debt in the Consolidated Balance Sheet, based on an estimate of required repayments within the next twelve months if the agreement is not extended. However, UScellular intends to extend the maturity date of the facility, at which time this amount would be reclassified as Long-term debt, net in the Consolidated Balance Sheet. As of June 30, 2023, the USCC Master Note Trust held $488 million of assets available to be pledged as collateral for the receivables securitization agreement. In July 2023, UScellular repaid $100 million under the agreement. Repurchase Agreement UScellular, through a subsidiary (the repo subsidiary), has a repurchase agreement to borrow up to $200 million, subject to the availability of eligible equipment installment plan receivables and the agreement of the lender. In January 2023, UScellular amended the repurchase agreement to extend the expiration date to January 2024. The outstanding borrowings bear interest at a rate of the lender's cost of funds (which has historically tracked closely to SOFR) plus 1.35%. Outstanding borrowings are included in Other current liabilities in the Consolidated Balance Sheet. During the six months ended June 30, 2023, the repo subsidiary repaid $60 million under the agreement. As of June 30, 2023, there were no outstanding borrowings under the agreement and the unused borrowing capacity was $200 million. As of June 30, 2023, UScellular held $475 million of assets available for inclusion in the repurchase facility; these assets are distinct from the assets held by the USCC Master Note Trust for UScellular's receivables securitization agreement. Debt Covenants The revolving credit agreement, term loan agreements, export credit financing agreement and receivables securitization agreement require UScellular to comply with certain affirmative and negative covenants, which include certain financial covenants that may restrict the borrowing capacity available. In March 2023, the agreements were amended to require UScellular to maintain the Consolidated Leverage Ratio as of the end of any fiscal quarter at a level not to exceed the following: 4.25 to 1.00 from January 1, 2023 through March 31, 2024; 4.00 to 1.00 from April 1, 2024 through March 31, 2025; 3.75 to 1.00 from April 1, 2025 and thereafter. UScellular is also required to maintain the Consolidated Interest Coverage Ratio at a level not lower than 3.00 to 1.00 as of the end of any fiscal quarter. UScellular believes that it was in compliance as of June 30, 2023 with all such financial covenants.

Variable Interest Entities

Variable Interest Entities	6 Months Ended
	Jun. 30, 2023
Variable Interest Entities [Abstract]
Variable Interest Entities	Note 10 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, 2022. UScellular formed USCC EIP LLC (Seller/Sub-Servicer), USCC Receivables Funding LLC (Transferor) and the USCC Master Note Trust (Trust), collectively the special purpose entities (SPEs), to facilitate a securitized borrowing using its equipment installment plan receivables. Under a Receivables Sale Agreement, UScellular wholly-owned, majority-owned and unconsolidated entities, collectively referred to as “affiliated entities”, transfer device equipment installment plan contracts to the Seller/Sub-Servicer. The Seller/Sub-Servicer aggregates device equipment installment plan contracts, and performs servicing, collection and all other administrative activities related to accounting for the equipment installment plan contracts. The Seller/Sub-Servicer sells the eligible equipment installment plan receivables to the Transferor, a bankruptcy remote entity, which subsequently sells the receivables to the Trust. The Trust, which is bankruptcy remote and isolated from the creditors of UScellular, will be responsible for issuing asset-backed variable funding notes (Notes), which are collateralized by the equipment installment plan receivables owned by the Trust. Given that UScellular has the power to direct the activities of these SPEs, and that these SPEs lack sufficient equity to finance their activities, UScellular is deemed to have a controlling financial interest in the SPEs and, therefore, consolidates them. All transactions with third parties (e.g., issuance of the asset-backed variable funding notes) will be accounted for as a secured borrowing due to the pledging of equipment installment plan contracts as collateral, significant continuing involvement in the transferred assets, subordinated interests of the cash flows, and continued evidence of control of the receivables. The following VIEs were formed to participate in FCC auctions of wireless spectrum licenses and to fund, establish, and provide wireless service with respect to any FCC wireless spectrum licenses won in the auctions: ▪ Advantage Spectrum, L.P. (Advantage Spectrum) and Sunshine Spectrum, Inc., the general partner of Advantage Spectrum; and ▪ King Street Wireless, L.P. (King Street Wireless) and King Street Wireless, Inc., the general partner of King Street Wireless. These particular VIEs are collectively referred to as designated entities. The power to direct the activities that most significantly impact the economic performance of these VIEs is shared. Specifically, the general partner of these VIEs has the exclusive right to manage, operate and control the limited partnerships and make all decisions to carry on the business of the partnerships. The general partner of each partnership needs the consent of the limited partner, an indirect 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 into the UScellular financial statements. 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 into the UScellular financial statements 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. June 30, 2023 December 31, 2022 (Dollars in millions) Assets Cash and cash equivalents $ 26 $ 29 Accounts receivable 661 701 Inventory, net 5 4 Other current assets 38 36 Licenses 641 640 Property, plant and equipment, net 138 135 Operating lease right-of-use assets 47 45 Other assets and deferred charges 473 481 Total assets $ 2,029 $ 2,071 Liabilities Current liabilities $ 34 $ 95 Long-term operating lease liabilities 41 40 Other deferred liabilities and credits 31 31 Total liabilities 1 $ 106 $ 166 1 Total liabilities does not include amounts borrowed under the receivables securitization agreement. See Note 9 – 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 into the UScellular financial statements under the variable interest model. UScellular’s total investment in these unconsolidated entities was $5 million and $4 million at June 30, 2023 and December 31, 2022, 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 $238 million and $101 million, during the six months ended June 30, 2023 and 2022, respectively, of which $217 million in 2023 and $80 million in 2022, 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 their 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 limite d partner, a subsidiary of UScellular, to purchase its interest in the limited partnership. In June 2022, the limited partnership agreement was amended and the general partner’s put option related to its interest in Advantage Spectrum will now be exercisable in the third quarter of 2023, and if not exercised at that time, will be exercisable again in the third quarter of 2024. The greater of the carrying value of the general partner's investment or the value of the put option, net of any borrowings due to UScellu lar, 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)	6 Months Ended
	Jun. 30, 2023
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 into the UScellular financial statements under GAAP. Intercompany accounts and transactions have been eliminated.
Basis of Accounting	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, 2022. 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 June 30, 2023 and December 31, 2022, its results of operations and changes in equity for the three and six months ended June 30, 2023 and 2022, and its cash flows for the six months ended June 30, 2023 and 2022. The Consolidated Statement of Comprehensive Income was not included because comprehensive income for the three and six months ended June 30, 2023 and 2022, 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, 2022.
Revenue from Contract with Customer	As practical expedients, revenue related to contracts of less than one year, generally month-to-month contracts, and contracts with a fixed per-unit price and variable quantity, are excluded from these estimates. 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, 2022.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reconciliation of cash, cash equivalents and restricted cash	The following table provides a reconciliation of Cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheet to the total of the amounts in the Consolidated Statement of Cash Flows. June 30, 2023 December 31, 2022 (Dollars in millions) Cash and cash equivalents $ 186 $ 273 Restricted cash included in Other current assets 38 35 Cash, cash equivalents and restricted cash in the statement of cash flows $ 224 $ 308

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2023
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 recognized at a point in time. Three Months Ended Six Months Ended 2023 2022 2023 2022 (Dollars in millions) Revenues from contracts with customers: Retail service $ 686 $ 700 $ 1,378 $ 1,402 Inbound roaming 8 18 17 39 Other service 41 42 82 84 Service revenues from contracts with customers 735 760 1,477 1,525 Equipment sales 197 244 415 467 Total revenues from contracts with customers 932 1,004 1,892 1,992 Operating lease income 25 23 50 45 Total operating revenues $ 957 $ 1,027 $ 1,942 $ 2,037
Contract with Customer, Assets and Liabilities	The following table provides balances for contract assets from contracts with customers, which are recorded in Other current assets and Other assets and deferred charges in the Consolidated Balance Sheet, and contract liabilities from contracts with customers, which are recorded in Customer deposits and deferred revenues and Other deferred liabilities and credits in the Consolidated Balance Sheet. June 30, 2023 December 31, 2022 (Dollars in millions) Contract assets $ 5 $ 5 Contract liabilities $ 341 $ 349
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 June 30, 2023 and may vary from actual results. As practical expedients, revenue related to contracts of less than one year, generally month-to-month contracts, and contracts with a fixed per-unit price and variable quantity, are excluded from these estimates. Service Revenues (Dollars in millions) Remainder of 2023 $ 173 2024 151 Thereafter 92 Total $ 416

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2023
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 June 30, 2023 December 31, 2022 Book Value Fair Value Book Value Fair Value (Dollars in millions) Long-term debt Retail 2 $ 1,500 $ 917 $ 1,500 $ 899 Institutional 2 536 381 536 395 Other 2 1,163 1,163 1,208 1,208

Equipment Installment Plans (Ta

Equipment Installment Plans (Tables)	6 Months Ended
	Jun. 30, 2023
Receivables [Abstract]
Equipment installment plan receivables	The following table summarizes equipment installment plan receivables. June 30, 2023 December 31, 2022 (Dollars in millions) Equipment installment plan receivables, gross $ 1,159 $ 1,211 Allowance for credit losses (92) (96) Equipment installment plan receivables, net $ 1,067 $ 1,115 Net balance presented in the Consolidated Balance Sheet as: Accounts receivable — Customers and agents (Current portion) $ 604 $ 646 Other assets and deferred charges (Non-current portion) 463 469 Equipment installment plan receivables, net $ 1,067 $ 1,115
Equipment installment plan receivables credit categories	The balance and aging of the equipment installment plan receivables on a gross basis by credit category were as follows: June 30, 2023 December 31, 2022 Lowest Risk Lower Risk Slight Risk Higher Risk Total Lowest Risk Lower Risk Slight Risk Higher Risk Total (Dollars in millions) Unbilled $ 979 $ 91 $ 20 $ 6 $ 1,096 $ 1,016 $ 98 $ 22 $ 5 $ 1,141 Billed — current 39 4 1 — 44 41 5 2 — 48 Billed — past due 10 6 2 1 19 13 6 2 1 22 Total $ 1,028 $ 101 $ 23 $ 7 $ 1,159 $ 1,070 $ 109 $ 26 $ 6 $ 1,211 The balance of the equipment installment plan receivables as of June 30, 2023 on a gross basis by year of origination were as follows: 2020 2021 2022 2023 Total (Dollars in millions) Lowest Risk $ 3 $ 160 $ 559 $ 306 $ 1,028 Lower Risk — 10 53 38 101 Slight Risk — 1 10 12 23 Higher Risk — — 3 4 7 Total $ 3 $ 171 $ 625 $ 360 $ 1,159
Equipment installment plans allowance for credit losses	The write-offs, net of recoveries for the six months ended June 30, 2023 on a gross basis by year of origination were as follows: 2020 2021 2022 2023 Total (Dollars in millions) Write-offs, net of recoveries $ 1 $ 9 $ 28 $ 1 $ 39 Activity for the six months ended June 30, 2023 and 2022, in the allowance for credit losses for equipment installment plan receivables was as follows: June 30, 2023 June 30, 2022 (Dollars in millions) Allowance for credit losses, beginning of period $ 96 $ 72 Bad debts expense 35 37 Write-offs, net of recoveries (39) (35) Allowance for credit losses, end of period $ 92 $ 74

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2023
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 Six Months Ended 2023 2022 2023 2022 (Dollars and shares in millions, except per share amounts) Net income attributable to UScellular shareholders $ 5 $ 21 $ 18 $ 71 Weighted average number of shares used in basic earnings per share 85 86 85 86 Effects of dilutive securities 1 1 1 1 Weighted average number of shares used in diluted earnings per share 86 87 86 87 Basic earnings per share attributable to UScellular shareholders $ 0.05 $ 0.25 $ 0.21 $ 0.82 Diluted earnings per share attributable to UScellular shareholders $ 0.05 $ 0.25 $ 0.20 $ 0.82

Investments in Unconsolidated_2

Investments in Unconsolidated Entities (Tables)	6 Months Ended
	Jun. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]
Equity and measurement alternative method investments	UScellular’s Investments in unconsolidated entities are accounted for using the equity method, measurement alternative method or net asset value practical expedient method as shown in the table below. The carrying value of measurement alternative method investments represents cost minus any impairments plus or minus any observable price changes. June 30, 2023 December 31, 2022 (Dollars in millions) Equity method investments $ 444 $ 439 Measurement alternative method investments 4 4 Investments recorded using the net asset value practical expedient 9 9 Total investments in unconsolidated entities $ 457 $ 452 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 Six Months Ended 2023 2022 2023 2022 (Dollars in millions) Revenues $ 1,762 $ 1,772 $ 3,564 $ 3,581 Operating expenses 1,357 1,390 2,717 2,761 Operating income 405 382 847 820 Other income (expense), net 9 (1) (7) (5) Net income $ 414 $ 381 $ 840 $ 815

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	6 Months Ended
	Jun. 30, 2023
Variable Interest Entities [Abstract]
Consolidated VIE assets and liabilities	The following table presents the classification and balances of the consolidated VIEs’ assets and liabilities in UScellular’s Consolidated Balance Sheet. June 30, 2023 December 31, 2022 (Dollars in millions) Assets Cash and cash equivalents $ 26 $ 29 Accounts receivable 661 701 Inventory, net 5 4 Other current assets 38 36 Licenses 641 640 Property, plant and equipment, net 138 135 Operating lease right-of-use assets 47 45 Other assets and deferred charges 473 481 Total assets $ 2,029 $ 2,071 Liabilities Current liabilities $ 34 $ 95 Long-term operating lease liabilities 41 40 Other deferred liabilities and credits 31 31 Total liabilities 1 $ 106 $ 166 1 Total liabilities does not include amounts borrowed under the receivables securitization agreement. See Note 9 – Debt for additional information.

Basis of Presentation - Narrati

Basis of Presentation - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Basis of Presentation [Line Items]
Noncash software license acquisitions	$ 11	$ 139
TDS | UScellular
Basis of Presentation [Line Items]
Ownership percentage	83%

Basis of Presentation - Cash, C

Basis of Presentation - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 186	$ 273
Restricted cash included in Other current assets	38	35
Cash, cash equivalents and restricted cash in the statement of cash flows	$ 224	$ 308	$ 355	$ 199

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of revenue
Revenue from contracts with customers	$ 932	$ 1,004	$ 1,892	$ 1,992
Operating lease income	25	23	50	45
Total operating revenues	957	1,027	1,942	2,037
Transferred over time
Disaggregation of revenue
Revenue from contracts with customers	735	760	1,477	1,525
Transferred over time | Retail service
Disaggregation of revenue
Revenue from contracts with customers	686	700	1,378	1,402
Transferred over time | Inbound roaming
Disaggregation of revenue
Revenue from contracts with customers	8	18	17	39
Transferred over time | Other service
Disaggregation of revenue
Revenue from contracts with customers	41	42	82	84
Transferred at point in time | Equipment sales
Disaggregation of revenue
Revenue from contracts with customers	$ 197	$ 244	$ 415	$ 467

Revenue Recognition - Contract

Revenue Recognition - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Contract assets	$ 5	$ 5
Contract liabilities	341	$ 349
Revenue recognized	$ 152

Revenue Recognition - Performan

Revenue Recognition - Performance Obligations (Details) $ in Millions	Jun. 30, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation amount	$ 416
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation amount	$ 173
Expected timing of remaining performance obligation, period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation amount	$ 151
Expected timing of remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation amount	$ 92
Expected timing of remaining performance obligation, period

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Capitalized Contract Cost
Contract cost asset	$ 126		$ 126		$ 131
Amortization of contract cost assets	$ 23	$ 24	$ 47	$ 49

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
6.7% Senior Notes
Financial Instruments
Interest rate	6.70%
Book Value | Retail
Financial Instruments
Long-term debt	$ 1,500	$ 1,500
Book Value | Institutional
Financial Instruments
Long-term debt	536	536
Book Value | Other
Financial Instruments
Long-term debt	1,163	1,208
Fair Value | Level 2 | Retail
Financial Instruments
Long-term debt	917	899
Fair Value | Level 2 | Institutional
Financial Instruments
Long-term debt	381	395
Fair Value | Level 2 | Other
Financial Instruments
Long-term debt	$ 1,163	$ 1,208
Interest rate | Institutional and Other | Minimum
Financial Instruments
Fair value assumption, interest rate	6.24%	5.38%
Interest rate | Institutional and Other | Maximum
Financial Instruments
Fair value assumption, interest rate	8.77%	8.28%

Equipment Installment Plans - E

Equipment Installment Plans - EIP Receivables (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Equipment installment plan receivables, gross	$ 1,159	$ 1,211
Allowance for credit losses	(92)	(96)
Equipment installment plan receivables, net	1,067	1,115
Accounts receivable — Customers and agents (Current portion)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Equipment installment plan receivables, net	604	646
Other assets and deferred charges (Non-current portion)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Equipment installment plan receivables, net	$ 463	$ 469

Equipment Installment Plans - G

Equipment Installment Plans - Gross Receivables by Credit Category (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	$ 1,159	$ 1,211
2020	3
2021	171
2022	625
2023	360
Unbilled
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	1,096	1,141
Billed | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	44	48
Billed | Past Due
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	19	22
Lowest Risk
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	1,028	1,070
2020	3
2021	160
2022	559
2023	306
Lowest Risk | Unbilled
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	979	1,016
Lowest Risk | Billed | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	39	41
Lowest Risk | Billed | Past Due
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	10	13
Lower Risk
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	101	109
2020	0
2021	10
2022	53
2023	38
Lower Risk | Unbilled
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	91	98
Lower Risk | Billed | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	4	5
Lower Risk | Billed | Past Due
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	6	6
Slight Risk
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	23	26
2020	0
2021	1
2022	10
2023	12
Slight Risk | Unbilled
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	20	22
Slight Risk | Billed | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	1	2
Slight Risk | Billed | Past Due
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	2	2
Higher Risk
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	7	6
2020	0
2021	0
2022	3
2023	4
Higher Risk | Unbilled
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	6	5
Higher Risk | Billed | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	0	0
Higher Risk | Billed | Past Due
Financing Receivable, Credit Quality Indicator [Line Items]
Equipment installment plan receivables, gross	$ 1	$ 1

Equipment Installment Plans - A

Equipment Installment Plans - Allowance for Credit Losses (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Allowance for credit losses
Allowance for credit losses, beginning of period	$ 96
Allowance for credit losses, end of period	92
Equipment Installment Plan Receivable
Allowance for credit losses
Write-offs, net of recoveries, originated in 2020	1
Write-offs, net of recoveries, originated in 2021	9
Write-offs, net of recoveries, originated in 2022	28
Write-offs, net of recoveries, originated in 2023	1
Write-offs, net of recoveries, Total	39	$ 35
Allowance for credit losses, beginning of period	96	72
Bad debts expense	35	37
Write-offs, net of recoveries	(39)	(35)
Allowance for credit losses, end of period	$ 92	$ 74

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2023 Rate	Jun. 30, 2022 Rate	Jun. 30, 2023 Rate	Jun. 30, 2022 Rate
Income Tax Disclosure [Abstract]
Effective tax rate	77.20%	43.70%	59.80%	40.10%

Earnings Per Share - Reconcilia

Earnings Per Share - Reconciliation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Net income attributable to UScellular shareholders	$ 5	$ 21	$ 18	$ 71
Weighted average number of shares used in basic earnings (loss) per share (in shares)	85	86	85	86
Effects of dilutive securities (in shares)	1	1	1	1
Weighted average number of shares used in diluted earnings per share	86	87	86	87
Basic earnings per share attributable to UScellular shareholders	$ 0.05	$ 0.25	$ 0.21	$ 0.82
Diluted earnings per share attributable to UScellular shareholders	$ 0.05	$ 0.25	$ 0.20	$ 0.82

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	2	1	2	1

Intangible Assets - Narrative (

Intangible Assets - Narrative (Details) $ in Millions	6 Months Ended		12 Months Ended			39 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($) license	Dec. 31, 2020 USD ($)	Dec. 31, 2024 USD ($)
Licenses
Cash paid for licenses	$ 8	$ 563
Auction 107
Licenses
Licenses won | license				254
Total winning bid				$ 1,283
Cash paid for licenses	3		$ 8	$ 36
FCC upfront payment					$ 30
Auction 107 | Other current liabilities
Licenses
Short-term spectrum license liabilities	122		133
Auction 107 | Other deferred liabilities and credits
Licenses
Long-term spectrum license liabilities	6		$ 8
Auction 107 | Accounts payable
Licenses
Short-term spectrum license liabilities	$ 10
Auction 107 | Subsequent event
Licenses
Cash paid for licenses						$ 185

Investments in Unconsolidated_3

Investments in Unconsolidated Entities - Schedule of Investments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]
Equity method investments	$ 444		$ 444		$ 439
Measurement alternative method investments	4		4		4
Investments recorded using the net asset value practical expedient	9		9		9
Total investments in unconsolidated entities	457		457		$ 452
Schedule of Equity Method Investments [Line Items]
Revenues	957	$ 1,027	1,942	$ 2,037
Operating expenses	923	987	1,881	1,926
Operating income	34	40	61	111
Net income	5	22	20	74
Equity method investments
Schedule of Equity Method Investments [Line Items]
Revenues	1,762	1,772	3,564	3,581
Operating expenses	1,357	1,390	2,717	2,761
Operating income	405	382	847	820
Other income (expense), net	9	(1)	(7)	(5)
Net income	$ 414	$ 381	$ 840	$ 815

Debt - Receivables Securitizati

Debt - Receivables Securitization Agreement (Details) - USD ($) $ in Millions		6 Months Ended
	Jul. 01, 2023	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Equipment installment plan receivables		$ 1,159	$ 1,211
Current portion of long-term debt		54	$ 13
Receivables securitization agreement
Debt Instrument [Line Items]
Amount borrowed during the period		115
Amount repaid during the period		150
Amount borrowed and outstanding		240
Amount available for use		210
Current portion of long-term debt		38
Receivables securitization agreement | Assets pledged
Debt Instrument [Line Items]
Equipment installment plan receivables		$ 488
Receivables securitization agreement | Lender's cost of funds
Debt Instrument [Line Items]
Contractual spread		0.90%
Receivables securitization agreement | Subsequent event
Debt Instrument [Line Items]
Amount repaid during the period	$ 100

Debt - Repurchase Agreement (De

Debt - Repurchase Agreement (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Equipment installment plan receivables	$ 1,159	$ 1,211
Repurchase Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity	200
Amount repaid during the period	60
Amounts borrowed and outstanding	0
Amount available for use	200
Repurchase Agreement | Assets pledged
Debt Instrument [Line Items]
Equipment installment plan receivables	$ 475
Lender's cost of funds | Repurchase Agreement
Debt Instrument [Line Items]
Contractual spread	1.35%

Debt - Narrative (Details)

Debt - Narrative (Details)	Apr. 01, 2025	Apr. 01, 2024	Jun. 30, 2023
Debt Instrument [Line Items]
Consolidated leverage ratio			4.25
Consolidated interest coverage ratio			3
Subsequent event
Debt Instrument [Line Items]
Consolidated leverage ratio	3.75	4

Variable Interest Entities - Co

Variable Interest Entities - Consolidated Balance Sheet (Details) - USD ($) $ in Millions		Jun. 30, 2023	Dec. 31, 2022
Assets
Cash and cash equivalents		$ 186	$ 273
Accounts receivable		917	985
Inventory, net		210	261
Other current assets		47	45
Licenses		4,694	4,690
Property, plant and equipment, net		2,640	2,624
Operating lease right-of-use assets		912	918
Other assets and deferred charges		670	686
Total assets	[1]	10,889	11,119
Liabilities
Current liabilities		1,008	1,195
Long-term operating lease liabilities		836	843
Other deferred liabilities and credits		607	604
Consolidated Variable Interest Entities
Assets
Cash and cash equivalents		26	29
Accounts receivable		661	701
Inventory, net		5	4
Other current assets		38	36
Licenses		641	640
Property, plant and equipment, net		138	135
Operating lease right-of-use assets		47	45
Other assets and deferred charges		473	481
Total assets		2,029	2,071
Liabilities
Current liabilities		34	95
Long-term operating lease liabilities		41	40
Other deferred liabilities and credits		31	31
Total liabilities		$ 106	$ 166
[1]The consolidated total assets as of June 30, 2023 and December 31, 2022, include assets held by consolidated variable interest entities (VIEs) of $1,406 million and $1,265 million, respectively, which are not available to be used to settle the obligations of UScellular. The consolidated total liabilities as of June 30, 2023 and December 31, 2022, include certain liabilities of consolidated VIEs of $25 million for which the creditors of the VIEs have no recourse to the general credit of UScellular. See Note 10 — Variable Interest Entities for additional information.

Variable Interest Entities - Na

Variable Interest Entities - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Variable Interest Entity [Line Items]
Investments in unconsolidated entities, maximum exposure	$ 5		$ 4
Capital contributions, loans or advances	238	$ 101
USCC EIP LLC
Variable Interest Entity [Line Items]
Capital contributions, loans or advances	$ 217	$ 80