Document And Entity Information
Document And Entity Information | 3 Months Ended |
Mar. 31, 2024 shares | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2024 |
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 | 2024 |
Document Fiscal Period Focus | Q1 |
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, $1 par value |
Trading Symbol | USM |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 52,000,000 |
6.25% Senior Notes | |
Title of 12(b) Security | 6.25% Senior Notes due 2069 |
Trading Symbol | UZD |
Security Exchange Name | NYSE |
5.5% Senior Notes | |
Title of 12(b) Security | 5.50% Senior Notes due 2070 |
Trading Symbol | UZE |
Security Exchange Name | NYSE |
5.5% Senior Notes | |
Title of 12(b) Security | 5.50% Senior Notes due 2070 |
Trading Symbol | UZF |
Security Exchange Name | NYSE |
Series A Common Shares | |
Entity Common Stock, Shares Outstanding | 33,000,000 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating revenues | ||
Total operating revenues | $ 950 | $ 986 |
Operating expenses | ||
Selling, general and administrative | 331 | 345 |
Depreciation, amortization and accretion | 165 | 170 |
(Gain) loss on asset disposals, net | 6 | 10 |
(Gain) loss on license sales and exchanges, net | (1) | 0 |
Total operating expenses | 899 | 960 |
Operating income | 51 | 26 |
Investment and other income (expense) | ||
Equity in earnings of unconsolidated entities | 42 | 44 |
Interest and dividend income | 2 | 2 |
Interest expense | (43) | (47) |
Total investment and other income (expense) | 1 | (1) |
Income before income taxes | 52 | 25 |
Income tax expense | 28 | 11 |
Net income | 24 | 14 |
Less: Net income attributable to noncontrolling interests, net of tax | 6 | 1 |
Net income attributable to UScellular shareholders | $ 18 | $ 13 |
Basic weighted average shares outstanding (in shares) | 85 | 85 |
Basic earnings per share attributable to UScellular shareholders | $ 0.21 | $ 0.15 |
Diluted weighted average shares outstanding (in shares) | 88 | 86 |
Diluted earnings per share attributable to UScellular shareholders | $ 0.20 | $ 0.15 |
Service | ||
Operating revenues | ||
Total operating revenues | $ 754 | $ 767 |
Operating expenses | ||
Cost of goods and services | 182 | 182 |
Equipment sales | ||
Operating revenues | ||
Total operating revenues | 196 | 219 |
Operating expenses | ||
Cost of goods and services | $ 216 | $ 253 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities | ||
Net income | $ 24 | $ 14 |
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities | ||
Depreciation, amortization and accretion | 165 | 170 |
Bad debts expense | 29 | 26 |
Stock-based compensation expense | 13 | 0 |
Deferred income taxes, net | 4 | 7 |
Equity in earnings of unconsolidated entities | (42) | (44) |
Distributions from unconsolidated entities | 22 | 20 |
(Gain) loss on asset disposals, net | 6 | 10 |
(Gain) loss on license sales and exchanges, net | (1) | 0 |
Other operating activities | 1 | 2 |
Changes in assets and liabilities from operations | ||
Accounts receivable | 16 | 37 |
Equipment installment plans receivable | 2 | 1 |
Inventory | 24 | (1) |
Accounts payable | (15) | (149) |
Customer deposits and deferred revenues | 5 | (10) |
Accrued taxes | 23 | 1 |
Accrued interest | 9 | 9 |
Other assets and liabilities | (82) | (52) |
Net cash provided by operating activities | 203 | 41 |
Cash flows from investing activities | ||
Cash paid for additions to property, plant and equipment | (133) | (196) |
Cash paid for licenses | (11) | (5) |
Other investing activities | 0 | 9 |
Net cash used in investing activities | (144) | (192) |
Cash flows from financing activities | ||
Issuance of long-term debt | 40 | 115 |
Repayment of long-term debt | (55) | (3) |
Repayment of short-term debt | 0 | (60) |
Distributions to noncontrolling interests | (2) | (1) |
Cash paid for software license agreements | (9) | (7) |
Other financing activities | (2) | (1) |
Net cash provided by (used in) financing activities | (28) | 43 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 31 | (108) |
Cash, cash equivalents and restricted cash | ||
Beginning of period | 179 | 308 |
End of period | $ 210 | $ 200 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | |
Current assets | |||
Cash and cash equivalents | $ 185 | $ 150 | |
Accounts receivable | |||
Customers and agents, less allowances of $62 and $66, respectively | 877 | 900 | |
Other, less allowances of $3 and $4, respectively | 53 | 54 | |
Inventory, net | 175 | 199 | |
Prepaid expenses | 71 | 57 | |
Income taxes receivable | 0 | 1 | |
Other current assets | 32 | 36 | |
Total current assets | 1,395 | 1,400 | |
Assets held for sale | 0 | 15 | |
Licenses | 4,711 | 4,693 | |
Investments in unconsolidated entities | 482 | 461 | |
Property, plant and equipment | |||
In service and under construction | 8,321 | 9,560 | |
Less: Accumulated depreciation and amortization | 5,781 | 6,984 | |
Property, plant and equipment, net | 2,540 | 2,576 | |
Operating lease right-of-use assets | 910 | 915 | |
Other assets and deferred charges | 666 | 690 | |
Total assets | [1] | 10,704 | 10,750 |
Current liabilities | |||
Current portion of long-term debt | 20 | 20 | |
Accounts payable | |||
Accounts payable - Trade | 224 | 241 | |
Customer deposits and deferred revenues | 235 | 229 | |
Accrued taxes | 49 | 32 | |
Accrued compensation | 32 | 83 | |
Short-term operating lease liabilities | 134 | 135 | |
Other current liabilities | 138 | 154 | |
Total current liabilities | 837 | 901 | |
Deferred liabilities and credits | |||
Deferred income tax liability, net | 758 | 755 | |
Long-term operating lease liabilities | 827 | 831 | |
Other deferred liabilities and credits | 564 | 565 | |
Long-term debt, net | 3,029 | 3,044 | |
Commitments and contingencies | |||
Noncontrolling interests with redemption features | 16 | 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 | 1,740 | 1,726 | |
Treasury shares, at cost, 3 Common Shares | (80) | (80) | |
Retained earnings | 2,910 | 2,892 | |
Total UScellular shareholders' equity | 4,658 | 4,626 | |
Noncontrolling interests | 15 | 16 | |
Total equity | 4,673 | 4,642 | |
Total liabilities and equity | [1] | 10,704 | 10,750 |
Affiliated | |||
Accounts receivable | |||
Affiliated | 2 | 3 | |
Accounts payable | |||
Accounts payable - Affiliated | $ 5 | $ 7 | |
[1]The consolidated total assets as of March 31, 2024 and December 31, 2023, include assets held by consolidated variable interest entities (VIEs) of $1,145 million and $1,217 million, respectively, which are not available to be used to settle the obligations of UScellular. The consolidated total liabilities as of March 31, 2024 and December 31, 2023, include certain liabilities of consolidated VIEs of $25 million and $26 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of UScellular. See Note 8 — Variable Interest Entities for additional information. |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | |
Accounts receivable | |||
Customer and agent allowances | $ 62 | $ 66 | |
Other allowances | $ 3 | $ 4 | |
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 | |||
Assets | [1] | $ 10,704 | $ 10,750 |
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 | |||
Assets | $ 1,981 | $ 2,017 | |
Liabilities | 108 | 108 | |
Consolidated Variable Interest Entities | No recourse | |||
Variable Interest Entities VIEs | |||
Liabilities | 25 | 26 | |
Consolidated Variable Interest Entities | Assets held | |||
Variable Interest Entities VIEs | |||
Assets | $ 1,145 | $ 1,217 | |
[1]The consolidated total assets as of March 31, 2024 and December 31, 2023, include assets held by consolidated variable interest entities (VIEs) of $1,145 million and $1,217 million, respectively, which are not available to be used to settle the obligations of UScellular. The consolidated total liabilities as of March 31, 2024 and December 31, 2023, include certain liabilities of consolidated VIEs of $25 million and $26 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of UScellular. See Note 8 — Variable Interest Entities for additional information. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ 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, 2022 | $ 4,570 | $ 88 | $ 1,703 | $ (98) | $ 2,861 | $ 4,554 | $ 16 |
Net income attributable to UScellular shareholders | 13 | 13 | 13 | ||||
Incentive and compensation plans | 1 | 1 | 2 | (2) | 1 | ||
Distributions to noncontrolling interests | (1) | 0 | (1) | ||||
Ending balance at Mar. 31, 2023 | 4,583 | 88 | 1,704 | (96) | 2,872 | 4,568 | 15 |
Beginning balance at Dec. 31, 2023 | 4,642 | 88 | 1,726 | (80) | 2,892 | 4,626 | 16 |
Net income attributable to UScellular shareholders | 18 | 18 | 18 | ||||
Incentive and compensation plans | 14 | 14 | 14 | ||||
Distributions to noncontrolling interests | (1) | 0 | (1) | ||||
Ending balance at Mar. 31, 2024 | $ 4,673 | $ 88 | $ 1,740 | $ (80) | $ 2,910 | $ 4,658 | $ 15 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023. 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 March 31, 2024 and December 31, 2023, its results of operations, cash flows and changes in equity for the three months ended March 31, 2024 and 2023. The Consolidated Statement of Comprehensive Income was not included because comprehensive income for the three months ended March 31, 2024 and 2023, 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, 2023. 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 $2 million and $5 million for the three months ended March 31, 2024 and 2023, 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 7 — Debt for additional information related to the receivables securitization agreement. The following table provides a reconciliation of Cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheet to the total of the amounts in the Consolidated Statement of Cash Flows. March 31, 2024 December 31, 2023 (Dollars in millions) Cash and cash equivalents $ 185 $ 150 Restricted cash included in Other current assets 25 29 Cash, cash equivalents and restricted cash in the statement of cash flows $ 210 $ 179 Strategic Alternatives Review 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. During the three months ended March 31, 2024, UScellular incurred third-party expenses of $7 million related to the strategic alternatives review, which are included in Selling, general and administrative expenses. 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 | 3 Months Ended |
Mar. 31, 2024 | |
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 2024 2023 (Dollars in millions) Revenues from contracts with customers: Retail service $ 678 $ 691 Other service 51 51 Service revenues from contracts with customers 729 742 Equipment sales 196 219 Total revenues from contracts with customers 925 961 Operating lease income 25 25 Total operating revenues $ 950 $ 986 Contract Balances The following table provides balances for contract assets from contracts with customers, which are recorded in Other current assets and Other assets and deferred charges in the Consolidated Balance Sheet, and contract liabilities from contracts with customers, which are recorded in Customer deposits and deferred revenues and Other deferred liabilities and credits in the Consolidated Balance Sheet. March 31, 2024 December 31, 2023 (Dollars in millions) Contract assets $ 4 $ 4 Contract liabilities $ 330 $ 331 Revenue recognized related to contract liabilities existing at January 1, 2024 was $109 million for the three months ended March 31, 2024. 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 March 31, 2024 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 2024 $ 220 2025 125 Thereafter 36 Total $ 381 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 $128 million at March 31, 2024, and $127 million at December 31, 2023, 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 $22 million and $24 million for the three months ended March 31, 2024 and 2023, respectively, and was included in Selling, general and administrative expenses. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 3 Fair Value Measurements As of March 31, 2024 and December 31, 2023, 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 March 31, 2024 December 31, 2023 Book Value Fair Value Book Value Fair Value (Dollars in millions) Long-term debt Retail 2 $ 1,500 $ 1,109 $ 1,500 $ 1,097 Institutional 2 536 435 536 451 Other 2 1,048 1,048 1,063 1,063 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 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 6.68% to 7.93% and 6.48% to 7.96% at March 31, 2024 and December 31, 2023, respectively. |
Equipment Installment Plans
Equipment Installment Plans | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Equipment Installment Plans | Note 4 Equipment Installment Plans UScellular sells devices to customers under equipment installment plans over a specified time period. For certain equipment installment plans, after a specified period of time or amount of payments, the customer may have the right to upgrade to a new device and have the remaining unpaid equipment installment contract balance waived, subject to certain conditions, including trading in the original device in good working condition and signing a new equipment installment contract. The following table summarizes equipment installment plan receivables. March 31, 2024 December 31, 2023 (Dollars in millions) Equipment installment plan receivables, gross $ 1,120 $ 1,151 Allowance for credit losses (88) (90) Equipment installment plan receivables, net $ 1,032 $ 1,061 Net balance presented in the Consolidated Balance Sheet as: Accounts receivable — Customers and agents (Current portion) $ 570 $ 577 Other assets and deferred charges (Non-current portion) 462 484 Equipment installment plan receivables, net $ 1,032 $ 1,061 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: March 31, 2024 December 31, 2023 Lowest Risk Lower Risk Slight Risk Higher Risk Total Lowest Risk Lower Risk Slight Risk Higher Risk Total (Dollars in millions) Unbilled $ 957 $ 84 $ 15 $ 4 $ 1,060 $ 977 $ 88 $ 16 $ 4 $ 1,085 Billed — current 38 4 1 — 43 35 5 2 1 43 Billed — past due 9 5 2 1 17 12 7 3 1 23 Total $ 1,004 $ 93 $ 18 $ 5 $ 1,120 $ 1,024 $ 100 $ 21 $ 6 $ 1,151 The balance of the equipment installment plan receivables as of March 31, 2024 on a gross basis by year of origination were as follows: 2021 2022 2023 2024 Total (Dollars in millions) Lowest Risk $ 18 $ 328 $ 510 $ 148 $ 1,004 Lower Risk 1 20 56 16 93 Slight Risk — 2 10 6 18 Higher Risk — 1 3 1 5 Total $ 19 $ 351 $ 579 $ 171 $ 1,120 The write-offs, net of recoveries for the three months ended March 31, 2024 on a gross basis by year of origination were as follows: 2021 2022 2023 Total (Dollars in millions) Write-offs, net of recoveries $ 1 $ 8 $ 15 $ 24 Activity for the three months ended March 31, 2024 and 2023, in the allowance for credit losses for equipment installment plan receivables was as follows: March 31, 2024 March 31, 2023 (Dollars in millions) Allowance for credit losses, beginning of period $ 90 $ 96 Bad debts expense 22 18 Write-offs, net of recoveries (24) (20) Allowance for credit losses, end of period $ 88 $ 94 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 5 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, as calculated using the treasury stock method. The amounts used in computing basic and diluted earnings (loss) per share attributable to UScellular shareholders were as follows: Three Months Ended 2024 2023 (Dollars and shares in millions, except per share amounts) Net income attributable to UScellular shareholders $ 18 $ 13 Weighted average number of shares used in basic earnings per share 85 85 Effects of dilutive securities 3 1 Weighted average number of shares used in diluted earnings per share 88 86 Basic earnings per share attributable to UScellular shareholders $ 0.21 $ 0.15 Diluted earnings per share attributable to UScellular shareholders $ 0.20 $ 0.15 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 less than 1 million and 1 million for the three months ended March 31, 2024 and 2023, respectively. |
Investments in Unconsolidated E
Investments in Unconsolidated Entities | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in unconsolidated entities | Note 6 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. March 31, 2024 December 31, 2023 (Dollars in millions) Equity method investments $ 468 $ 448 Measurement alternative method investments 5 4 Investments recorded using the net asset value practical expedient 9 9 Total investments in unconsolidated entities $ 482 $ 461 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 2024 2023 (Dollars in millions) Revenues $ 1,842 $ 1,802 Operating expenses 1,415 1,361 Operating income 427 441 Other income (expense), net (9) (16) Net income $ 418 $ 425 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Note 7 Debt Receivables Securitization Agreement UScellular, through its subsidiaries, has a receivables securitization agreement that permits securitized borrowings using its equipment installment plan receivables. Amounts under the agreement may be borrowed, repaid and reborrowed from time to time until September 2025. Unless the agreement is amended to extend the maturity date, repayments based on receivable collections commence in October 2025. 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 1.15%. During the three months ended March 31, 2024, UScellular borrowed $40 million and repaid $50 million under its receivables securitization agreement. As of March 31, 2024, the outstanding borrowings under the agreement were $140 million and the unused borrowing capacity was $310 million, subject to sufficient collateral to satisfy the asset borrowing base provisions of the agreement. As of March 31, 2024, the USCC Master Note Trust held $233 million of assets available to be pledged as collateral for the receivables securitization agreement. In April 2024, UScellular repaid an additional $75 million under the 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. UScellular is required to maintain the Consolidated Leverage Ratio as of the end of any fiscal quarter at a level not to exceed the following: 4.25 to 1.00 from January 1, 2023 through March 31, 2024; 4.00 to 1.00 from April 1, 2024 through March 31, 2025; 3.75 to 1.00 from April 1, 2025 and thereafter. 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 March 31, 2024 with all such financial covenants. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2024 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Note 8 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, 2023. 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. March 31, 2024 December 31, 2023 (Dollars in millions) Assets Cash and cash equivalents $ 30 $ 24 Accounts receivable 621 633 Inventory, net 4 4 Other current assets 26 30 Licenses 641 641 Property, plant and equipment, net 138 143 Operating lease right-of-use assets 49 48 Other assets and deferred charges 472 494 Total assets $ 1,981 $ 2,017 Liabilities Current liabilities $ 37 $ 37 Long-term operating lease liabilities 43 42 Other deferred liabilities and credits 28 29 Total liabilities 1 $ 108 $ 108 1 Total liabilities does not include amounts borrowed under the receivables securitization agreement. See Note 7 – 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 $6 million at both March 31, 2024 and December 31, 2023, 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 $207 million for both the three months ended March 31, 2024 and 2023, of which $187 million in 2024 and $193 million in 2023, are related to USCC EIP LLC as discussed above. UScellular may agree to make additional capital contributions and/or advances to these or other VIEs and/or to their general partners to provide additional funding for their operations or the development of wireless spectrum licenses granted in various auctions. UScellular may finance such amounts with a combination of cash on hand, borrowings under its revolving credit or receivables securitization agreements and/or other long-term debt. There is no assurance that UScellular will be able to obtain additional financing on commercially reasonable terms or at all to provide such financial support. The limited partnership agreement of Advantage Spectrum also provides the general partner with a put option whereby the general partner may require the limite d partner, a subsidiary of UScellular, to purchase its interest in the limited partnership. The put option has not been exercised . |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income attributable to UScellular shareholders | $ 18 | $ 13 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023. 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 March 31, 2024 and December 31, 2023, its results of operations, cash flows and changes in equity for the three months ended March 31, 2024 and 2023. The Consolidated Statement of Comprehensive Income was not included because comprehensive income for the three months ended March 31, 2024 and 2023, 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, 2023. |
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, 2023. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reconciliation of cash, cash equivalents and restricted cash | The following table provides a reconciliation of Cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheet to the total of the amounts in the Consolidated Statement of Cash Flows. March 31, 2024 December 31, 2023 (Dollars in millions) Cash and cash equivalents $ 185 $ 150 Restricted cash included in Other current assets 25 29 Cash, cash equivalents and restricted cash in the statement of cash flows $ 210 $ 179 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 2024 2023 (Dollars in millions) Revenues from contracts with customers: Retail service $ 678 $ 691 Other service 51 51 Service revenues from contracts with customers 729 742 Equipment sales 196 219 Total revenues from contracts with customers 925 961 Operating lease income 25 25 Total operating revenues $ 950 $ 986 |
Contract with Customer, Assets and Liabilities | The following table provides balances for contract assets from contracts with customers, which are recorded in Other current assets and Other assets and deferred charges in the Consolidated Balance Sheet, and contract liabilities from contracts with customers, which are recorded in Customer deposits and deferred revenues and Other deferred liabilities and credits in the Consolidated Balance Sheet. March 31, 2024 December 31, 2023 (Dollars in millions) Contract assets $ 4 $ 4 Contract liabilities $ 330 $ 331 |
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 March 31, 2024 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 2024 $ 220 2025 125 Thereafter 36 Total $ 381 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 December 31, 2023 Book Value Fair Value Book Value Fair Value (Dollars in millions) Long-term debt Retail 2 $ 1,500 $ 1,109 $ 1,500 $ 1,097 Institutional 2 536 435 536 451 Other 2 1,048 1,048 1,063 1,063 |
Equipment Installment Plans (Ta
Equipment Installment Plans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Equipment installment plan receivables | The following table summarizes equipment installment plan receivables. March 31, 2024 December 31, 2023 (Dollars in millions) Equipment installment plan receivables, gross $ 1,120 $ 1,151 Allowance for credit losses (88) (90) Equipment installment plan receivables, net $ 1,032 $ 1,061 Net balance presented in the Consolidated Balance Sheet as: Accounts receivable — Customers and agents (Current portion) $ 570 $ 577 Other assets and deferred charges (Non-current portion) 462 484 Equipment installment plan receivables, net $ 1,032 $ 1,061 |
Equipment installment plan receivables credit categories | The balance and aging of the equipment installment plan receivables on a gross basis by credit category were as follows: March 31, 2024 December 31, 2023 Lowest Risk Lower Risk Slight Risk Higher Risk Total Lowest Risk Lower Risk Slight Risk Higher Risk Total (Dollars in millions) Unbilled $ 957 $ 84 $ 15 $ 4 $ 1,060 $ 977 $ 88 $ 16 $ 4 $ 1,085 Billed — current 38 4 1 — 43 35 5 2 1 43 Billed — past due 9 5 2 1 17 12 7 3 1 23 Total $ 1,004 $ 93 $ 18 $ 5 $ 1,120 $ 1,024 $ 100 $ 21 $ 6 $ 1,151 The balance of the equipment installment plan receivables as of March 31, 2024 on a gross basis by year of origination were as follows: 2021 2022 2023 2024 Total (Dollars in millions) Lowest Risk $ 18 $ 328 $ 510 $ 148 $ 1,004 Lower Risk 1 20 56 16 93 Slight Risk — 2 10 6 18 Higher Risk — 1 3 1 5 Total $ 19 $ 351 $ 579 $ 171 $ 1,120 |
Equipment installment plans allowance for credit losses | The write-offs, net of recoveries for the three months ended March 31, 2024 on a gross basis by year of origination were as follows: 2021 2022 2023 Total (Dollars in millions) Write-offs, net of recoveries $ 1 $ 8 $ 15 $ 24 Activity for the three months ended March 31, 2024 and 2023, in the allowance for credit losses for equipment installment plan receivables was as follows: March 31, 2024 March 31, 2023 (Dollars in millions) Allowance for credit losses, beginning of period $ 90 $ 96 Bad debts expense 22 18 Write-offs, net of recoveries (24) (20) Allowance for credit losses, end of period $ 88 $ 94 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings per share | The amounts used in computing basic and diluted earnings (loss) per share attributable to UScellular shareholders were as follows: Three Months Ended 2024 2023 (Dollars and shares in millions, except per share amounts) Net income attributable to UScellular shareholders $ 18 $ 13 Weighted average number of shares used in basic earnings per share 85 85 Effects of dilutive securities 3 1 Weighted average number of shares used in diluted earnings per share 88 86 Basic earnings per share attributable to UScellular shareholders $ 0.21 $ 0.15 Diluted earnings per share attributable to UScellular shareholders $ 0.20 $ 0.15 |
Investments in Unconsolidated_2
Investments in Unconsolidated Entities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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. March 31, 2024 December 31, 2023 (Dollars in millions) Equity method investments $ 468 $ 448 Measurement alternative method investments 5 4 Investments recorded using the net asset value practical expedient 9 9 Total investments in unconsolidated entities $ 482 $ 461 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 2024 2023 (Dollars in millions) Revenues $ 1,842 $ 1,802 Operating expenses 1,415 1,361 Operating income 427 441 Other income (expense), net (9) (16) Net income $ 418 $ 425 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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. March 31, 2024 December 31, 2023 (Dollars in millions) Assets Cash and cash equivalents $ 30 $ 24 Accounts receivable 621 633 Inventory, net 4 4 Other current assets 26 30 Licenses 641 641 Property, plant and equipment, net 138 143 Operating lease right-of-use assets 49 48 Other assets and deferred charges 472 494 Total assets $ 1,981 $ 2,017 Liabilities Current liabilities $ 37 $ 37 Long-term operating lease liabilities 43 42 Other deferred liabilities and credits 28 29 Total liabilities 1 $ 108 $ 108 1 Total liabilities does not include amounts borrowed under the receivables securitization agreement. See Note 7 – Debt for additional information. |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Basis of Presentation [Line Items] | ||
Noncash software license acquisitions | $ 2 | $ 5 |
Expenses related to strategic alternatives review | $ 7 | |
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 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 185 | $ 150 | ||
Restricted cash included in Other current assets | 25 | 29 | ||
Cash, cash equivalents and restricted cash in the statement of cash flows | $ 210 | $ 179 | $ 200 | $ 308 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of revenue | ||
Revenue from contracts with customers | $ 925 | $ 961 |
Operating lease income | 25 | 25 |
Total operating revenues | 950 | 986 |
Transferred over time | ||
Disaggregation of revenue | ||
Revenue from contracts with customers | 729 | 742 |
Transferred over time | Retail service | ||
Disaggregation of revenue | ||
Revenue from contracts with customers | 678 | 691 |
Transferred over time | Other service | ||
Disaggregation of revenue | ||
Revenue from contracts with customers | 51 | 51 |
Transferred at point in time | Equipment sales | ||
Disaggregation of revenue | ||
Revenue from contracts with customers | $ 196 | $ 219 |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 4 | $ 4 |
Contract liabilities | 330 | $ 331 |
Revenue recognized | $ 109 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligations (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation amount | $ 381 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation amount | $ 220 |
Expected timing of remaining performance obligation, period | 9 months |
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 | $ 125 |
Expected timing of remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation amount | $ 36 |
Expected timing of remaining performance obligation, period |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Capitalized Contract Cost | |||
Contract cost asset | $ 128 | $ 127 | |
Amortization of contract cost assets | $ 22 | $ 24 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
6.7% Senior Notes | ||
Financial Instruments | ||
Interest rate | 6.70% | |
Institutional and Other | Minimum | ||
Financial Instruments | ||
Interest rate | 6.68% | 6.48% |
Institutional and Other | Maximum | ||
Financial Instruments | ||
Interest rate | 7.93% | 7.96% |
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 | 1,048 | 1,063 |
Fair Value | Level 2 | Retail | ||
Financial Instruments | ||
Long-term debt | 1,109 | 1,097 |
Fair Value | Level 2 | Institutional | ||
Financial Instruments | ||
Long-term debt | 435 | 451 |
Fair Value | Level 2 | Other | ||
Financial Instruments | ||
Long-term debt | $ 1,048 | $ 1,063 |
Equipment Installment Plans - E
Equipment Installment Plans - EIP Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Equipment installment plan receivables, gross | $ 1,120 | $ 1,151 |
Allowance for credit losses | (88) | (90) |
Equipment installment plan receivables, net | 1,032 | 1,061 |
Accounts receivable — Customers and agents (Current portion) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Equipment installment plan receivables, net | 570 | 577 |
Other assets and deferred charges (Non-current portion) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Equipment installment plan receivables, net | $ 462 | $ 484 |
Equipment Installment Plans - G
Equipment Installment Plans - Gross Receivables by Credit Category (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | $ 1,120 | $ 1,151 |
2021 | 19 | |
2022 | 351 | |
2023 | 579 | |
2024 | 171 | |
Unbilled | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 1,060 | 1,085 |
Billed | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 43 | 43 |
Billed | Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 17 | 23 |
Lowest Risk | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 1,004 | 1,024 |
2021 | 18 | |
2022 | 328 | |
2023 | 510 | |
2024 | 148 | |
Lowest Risk | Unbilled | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 957 | 977 |
Lowest Risk | Billed | Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 38 | 35 |
Lowest Risk | Billed | Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 9 | 12 |
Lower Risk | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 93 | 100 |
2021 | 1 | |
2022 | 20 | |
2023 | 56 | |
2024 | 16 | |
Lower Risk | Unbilled | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 84 | 88 |
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 | 5 | 7 |
Slight Risk | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 18 | 21 |
2021 | 0 | |
2022 | 2 | |
2023 | 10 | |
2024 | 6 | |
Slight Risk | Unbilled | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 15 | 16 |
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 | 3 |
Higher Risk | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 5 | 6 |
2021 | 0 | |
2022 | 1 | |
2023 | 3 | |
2024 | 1 | |
Higher Risk | Unbilled | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Equipment installment plan receivables, gross | 4 | 4 |
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 | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Allowance for credit losses | ||
Allowance for credit losses, beginning of period | $ 90 | |
Allowance for credit losses, end of period | 88 | |
Equipment Installment Plan Receivable | ||
Allowance for credit losses | ||
Write-offs, net of recoveries, originated in 2021 | 1 | |
Write-offs, net of recoveries, originated in 2022 | 8 | |
Write-offs, net of recoveries, originated in 2023 | 15 | |
Write-offs, net of recoveries, Total | 24 | $ 20 |
Allowance for credit losses, beginning of period | 90 | 96 |
Bad debts expense | 22 | 18 |
Write-offs, net of recoveries | (24) | (20) |
Allowance for credit losses, end of period | $ 88 | $ 94 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Net income attributable to UScellular shareholders | $ 18 | $ 13 |
Weighted average number of shares used in basic earnings per share (in shares) | 85 | 85 |
Effects of dilutive securities (in shares) | 3 | 1 |
Weighted average number of shares used in diluted earnings per share | 88 | 86 |
Basic earnings per share attributable to UScellular shareholders | $ 0.21 | $ 0.15 |
Diluted earnings per share attributable to UScellular shareholders | $ 0.20 | $ 0.15 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 1 | |
Maximum | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 1 |
Investments in Unconsolidated_3
Investments in Unconsolidated Entities - Schedule of Investments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Equity method investments | $ 468 | $ 448 | |
Measurement alternative method investments | 5 | 4 | |
Investments recorded using the net asset value practical expedient | 9 | 9 | |
Total investments in unconsolidated entities | 482 | $ 461 | |
Schedule of Equity Method Investments [Line Items] | |||
Revenues | 950 | $ 986 | |
Operating expenses | 899 | 960 | |
Operating income | 51 | 26 | |
Net income | 24 | 14 | |
Equity method investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenues | 1,842 | 1,802 | |
Operating expenses | 1,415 | 1,361 | |
Operating income | 427 | 441 | |
Other income (expense), net | (9) | (16) | |
Net income | $ 418 | $ 425 |
Debt - Receivables Securitizati
Debt - Receivables Securitization Agreement (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | |||
Equipment installment plan receivables | $ 1,120 | $ 1,151 | |
Receivables securitization agreement | |||
Debt Instrument [Line Items] | |||
Amount borrowed during the period | 40 | ||
Amount repaid during the period | 50 | ||
Amount borrowed and outstanding | 140 | ||
Amount available for use | 310 | ||
Receivables securitization agreement | Assets pledged | |||
Debt Instrument [Line Items] | |||
Equipment installment plan receivables | $ 233 | ||
Receivables securitization agreement | Lender's cost of funds | |||
Debt Instrument [Line Items] | |||
Contractual spread | 1.15% | ||
Receivables securitization agreement | Subsequent event | |||
Debt Instrument [Line Items] | |||
Amount repaid during the period | $ 75 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Apr. 01, 2025 | Apr. 01, 2024 | Mar. 31, 2024 |
Debt Instrument [Line Items] | |||
Consolidated leverage ratio | 4.25 | ||
Consolidated interest coverage ratio | 3 | ||
Subsequent event | |||
Debt Instrument [Line Items] | |||
Consolidated leverage ratio | 3.75 | 4 |
Variable Interest Entities - Co
Variable Interest Entities - Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | |
Assets | |||
Cash and cash equivalents | $ 185 | $ 150 | |
Accounts receivable | 877 | 900 | |
Inventory, net | 175 | 199 | |
Other current assets | 32 | 36 | |
Licenses | 4,711 | 4,693 | |
Property, plant and equipment, net | 2,540 | 2,576 | |
Operating lease right-of-use assets | 910 | 915 | |
Other assets and deferred charges | 666 | 690 | |
Assets | [1] | 10,704 | 10,750 |
Liabilities | |||
Current liabilities | 837 | 901 | |
Long-term operating lease liabilities | 827 | 831 | |
Other deferred liabilities and credits | 564 | 565 | |
Consolidated Variable Interest Entities | |||
Assets | |||
Cash and cash equivalents | 30 | 24 | |
Accounts receivable | 621 | 633 | |
Inventory, net | 4 | 4 | |
Other current assets | 26 | 30 | |
Licenses | 641 | 641 | |
Property, plant and equipment, net | 138 | 143 | |
Operating lease right-of-use assets | 49 | 48 | |
Other assets and deferred charges | 472 | 494 | |
Assets | 1,981 | 2,017 | |
Liabilities | |||
Current liabilities | 37 | 37 | |
Long-term operating lease liabilities | 43 | 42 | |
Other deferred liabilities and credits | 28 | 29 | |
Total liabilities | $ 108 | $ 108 | |
[1]The consolidated total assets as of March 31, 2024 and December 31, 2023, include assets held by consolidated variable interest entities (VIEs) of $1,145 million and $1,217 million, respectively, which are not available to be used to settle the obligations of UScellular. The consolidated total liabilities as of March 31, 2024 and December 31, 2023, include certain liabilities of consolidated VIEs of $25 million and $26 million, respectively, for which the creditors of the VIEs have no recourse to the general credit of UScellular. See Note 8 — Variable Interest Entities for additional information. |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Variable Interest Entity [Line Items] | |||
Investments in unconsolidated entities, maximum exposure | $ 6 | $ 6 | |
Capital contributions, loans or advances | 207 | $ 207 | |
USCC EIP LLC | |||
Variable Interest Entity [Line Items] | |||
Capital contributions, loans or advances | $ 187 | $ 193 |