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Business Segment (Tables) | 3 Months Ended
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Mar. 31, 2016
Segment Reporting [Abstract] |
Business segment information | Financial data for TDS’ reportable segments for the three month period ended, or as of March 31, 2016 and 2015, is as fo llows. See Note 1 — Basis of Presentation for additional information.
|  |  |  |  |  |  | TDS Telecom |  |  |  |  |  |
Three Months Ended or as of March 31, 2016 |  | U.S. Cellular |  | Wireline |  | Cable |  | HMS |  | TDS Telecom Eliminations |  | TDS Telecom Total |  | Corporate, Eliminations and Other |  | Total
(Dollars in millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Service |  | $ | 760 |  | $ | 173 |  | $ | 45 |  | $ | 29 |  | $ | (1) |  | $ | 246 |  | $ | (6) |  | $ | 1,000
| Equipment and product sales |  |  | 198 |  |  | – |  |  | – |  |  | 35 |  |  | – |  |  | 35 |  |  | 10 |  |  | 243
|  | Total operating revenues |  |  | 958 |  |  | 173 |  |  | 45 |  |  | 64 |  |  | (1) |  |  | 281 |  |  | 4 |  |  | 1,243
Cost of services (excluding Depreciation, amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| and accretion reported below) |  |  | 184 |  |  | 62 |  |  | 22 |  |  | 21 |  |  | (1) |  |  | 104 |  |  | – |  |  | 288
Cost of equipment and products |  |  | 256 |  |  | 1 |  |  | – |  |  | 29 |  |  | – |  |  | 30 |  |  | 5 |  |  | 291
Selling, general and administrative |  |  | 361 |  |  | 48 |  |  | 12 |  |  | 11 |  |  | – |  |  | 71 |  |  | (1) |  |  | 431
Depreciation, amortization and accretion |  |  | 153 |  |  | 42 |  |  | 9 |  |  | 7 |  |  | – |  |  | 58 |  |  | 1 |  |  | 212
(Gain) loss on asset disposals, net |  |  | 5 |  |  | – |  |  | 1 |  |  | – |  |  | – |  |  | 1 |  |  | – |  |  | 6
Operating income (loss) |  |  | (1) |  |  | 20 |  |  | 1 |  |  | (4) |  |  | – |  |  | 17 |  |  | (1) |  |  | 15
Equity in earnings of unconsolidated entities |  |  | 35 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 35
Interest and dividend income |  |  | 13 |  |  | 1 |  |  | – |  |  | – |  |  | – |  |  | 1 |  |  | – |  |  | 14
Interest expense |  |  | (28) |  |  | 1 |  |  | – |  |  | (1) |  |  | – |  |  | – |  |  | (13) |  |  | (41)
Other, net |  |  | 1 |  |  | – |  |  | (1) |  |  | – |  |  | – |  |  | (1) |  |  | – |  |  | –
Income (loss) before income taxes |  |  | 20 |  |  | 22 |  |  | – |  |  | (5) |  |  | – |  |  | 17 |  |  | (14) |  |  | 23
Income tax expense (benefit)1 |  |  | 11 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 7 |  |  | (5) |  |  | 13
Net income (loss) |  |  | 9 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 10 |  |  | (9) |  |  | 10
Add back: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, amortization and accretion |  |  | 153 |  |  | 42 |  |  | 9 |  |  | 7 |  |  | – |  |  | 58 |  |  | 1 |  |  | 212
(Gain) loss on asset disposals, net |  |  | 5 |  |  | – |  |  | 1 |  |  | – |  |  | – |  |  | 1 |  |  | – |  |  | 6
Interest expense |  |  | 28 |  |  | (1) |  |  | – |  |  | 1 |  |  | – |  |  | – |  |  | 13 |  |  | 41
Income tax expense (benefit)1 |  |  | 11 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 7 |  |  | (5) |  |  | 13
Adjusted EBITDA 2 |  | $ | 206 |  | $ | 63 |  | $ | 10 |  | $ | 3 |  | $ | – |  | $ | 76 |  | $ | – |  | $ | 282
Investments in unconsolidated entities |  | $ | 384 |  | $ | 4 |  | $ | – |  | $ | – |  | $ | – |  | $ | 4 |  | $ | 35 |  | $ | 423
Total assets |  | $ | 7,057 |  | $ | 1,291 |  | $ | 581 |  | $ | 270 |  | $ | – |  | $ | 2,142 |  | $ | 184 |  | $ | 9,383
Capital expenditures |  | $ | 79 |  | $ | 27 |  | $ | 13 |  | $ | 2 |  | $ | – |  | $ | 42 |  | $ | 4 |  | $ | 125
|  |  |  |  |  |  | TDS Telecom |  |  |  |  |  |
Three Months Ended or as of March 31, 2015 |  | U.S. Cellular |  | Wireline |  | Cable |  | HMS |  | TDS Telecom Eliminations |  | TDS Telecom Total |  | Corporate, Eliminations and Other |  | Total
(Dollars in millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Service |  | $ | 828 |  | $ | 176 |  | $ | 44 |  | $ | 28 |  | $ | (1) |  | $ | 247 |  | $ | (2) |  | $ | 1,073
| Equipment and product sales |  |  | 137 |  |  | – |  |  | – |  |  | 33 |  |  | – |  |  | 33 |  |  | 9 |  |  | 179
|  | Total operating revenues |  |  | 965 |  |  | 176 |  |  | 44 |  |  | 61 |  |  | (1) |  |  | 280 |  |  | 7 |  |  | 1,252
Cost of services (excluding Depreciation, amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| and accretion reported below) |  |  | 191 |  |  | 62 |  |  | 20 |  |  | 20 |  |  | – |  |  | 102 |  |  | 1 |  |  | 294
Cost of equipment and products |  |  | 238 |  |  | 1 |  |  | – |  |  | 27 |  |  | – |  |  | 28 |  |  | 6 |  |  | 272
Selling, general and administrative |  |  | 369 |  |  | 46 |  |  | 13 |  |  | 13 |  |  | (1) |  |  | 71 |  |  | (2) |  |  | 438
Depreciation, amortization and accretion |  |  | 147 |  |  | 42 |  |  | 9 |  |  | 6 |  |  | – |  |  | 57 |  |  | 3 |  |  | 207
(Gain) loss on asset disposals, net |  |  | 4 |  |  | – |  |  | 1 |  |  | – |  |  | – |  |  | 1 |  |  | – |  |  | 5
(Gain) loss on sale of business and other exit costs, net |  |  | (111) |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | (13) |  |  | (124)
(Gain) loss on license sales and exchanges, net |  |  | (123) |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | (123)
Operating income (loss) |  |  | 250 |  |  | 25 |  |  | 1 |  |  | (5) |  |  | – |  |  | 21 |  |  | 12 |  |  | 283
Equity in earnings of unconsolidated entities |  |  | 34 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 1 |  |  | 35
Interest and dividend income |  |  | 8 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 8
Interest expense |  |  | (20) |  |  | 1 |  |  | – |  |  | (1) |  |  | – |  |  | – |  |  | (14) |  |  | (34)
Other, net |  |  | – |  |  | 1 |  |  | – |  |  | – |  |  | – |  |  | 1 |  |  | (1) |  |  | –
Income (loss) before income taxes |  |  | 272 |  |  | 27 |  |  | 1 |  |  | (6) |  |  | – |  |  | 22 |  |  | (2) |  |  | 292
Income tax expense (benefit)1 |  |  | 107 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 9 |  |  | – |  |  | 116
Net income (loss) |  |  | 165 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 13 |  |  | (2) |  |  | 176
Add back: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, amortization and accretion |  |  | 147 |  |  | 42 |  |  | 9 |  |  | 6 |  |  | – |  |  | 57 |  |  | 3 |  |  | 207
(Gain) loss on asset disposals, net |  |  | 4 |  |  | – |  |  | 1 |  |  | – |  |  | – |  |  | 1 |  |  | – |  |  | 5
(Gain) loss on sale of business and other exit costs, net |  |  | (111) |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | (13) |  |  | (124)
(Gain) loss on license sales and exchanges, net |  |  | (123) |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | (123)
Interest expense |  |  | 20 |  |  | (1) |  |  | – |  |  | 1 |  |  | – |  |  | – |  |  | 14 |  |  | 34
Income tax expense (benefit)1 |  |  | 107 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 9 |  |  | – |  |  | 116
Adjusted EBITDA 2 |  | $ | 209 |  | $ | 68 |  | $ | 11 |  | $ | 1 |  | $ | – |  | $ | 80 |  | $ | 2 |  | $ | 291
Investments in unconsolidated entities |  | $ | 305 |  | $ | 4 |  | $ | – |  | $ | – |  | $ | – |  | $ | 4 |  | $ | 34 |  | $ | 343
Total assets |  | $ | 6,606 |  | $ | 1,366 |  | $ | 566 |  | $ | 275 |  | $ | – |  | $ | 2,207 |  | $ | 183 |  | $ | 8,996
Capital expenditures |  | $ | 66 |  | $ | 20 |  | $ | 12 |  | $ | 5 |  | $ | – |  | $ | 37 |  | $ | 2 |  | $ | 105
1 | Income tax expense (benefit) is not provided at the individual segment level for Wireline, Cable and HMS. TDS calculates income tax expense for “TDS Telecom Total”.
2 | Adjusted earnings before interest, taxes, depreciation, amortization and accretion (“Adjusted EBITDA”) is a segment measure reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance. Adjusted EBITDA is defined as net income, adjusted for the items set forth in the reconciliation above. Adjusted EBITDA excludes these items in order to show operating results on a more comparable basis from period to period. From time to time, TDS may also exclude other items from Adjusted EBITDA if such items help reflect operating results on a more comparable basis. TDS does not intend to imply that any of such items that are excluded are non-recurring, infrequent or unusual; such items may occur in the future. TDS believes Adjusted EBITDA is a useful measure of TDS’ operating results before significant recurring non-cash charges, discrete gains and losses, and other items as indicated above.

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8813-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8736-108599 + Details
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