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Business Segment (Tables) | 3 Months Ended
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Mar. 31, 2017
Business Segment Information [Abstract] |
Business segment information | Financial data for TDS’ reportable segments for the three month periods ended, or as of March 31, 2017 and 2016, is as follows. See Note 1 — Basis of Presentation for additional information.
|  |  |  |  |  |  | TDS Telecom |  |  |  |  |  |
Three Months Ended or as of March 31, 2017 |  | U.S. Cellular |  | Wireline |  | Cable |  | HMS |  | TDS Telecom Eliminations |  | TDS Telecom Total |  | Corporate, Eliminations and Other |  | Total
(Dollars in millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Service 1 |  | $ | 746 |  | $ | 179 |  | $ | 49 |  | $ | 29 |  | $ | (1) |  | $ | 256 |  | $ | (5) |  | $ | 997
| Equipment and product sales |  |  | 190 |  |  | – |  |  | – |  |  | 43 |  |  | – |  |  | 43 |  |  | 8 |  |  | 241
|  | Total operating revenues 1 |  |  | 936 |  |  | 179 |  |  | 49 |  |  | 71 |  |  | (1) |  |  | 299 |  |  | 3 |  |  | 1,238
Cost of services (excluding Depreciation, amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| and accretion reported below) |  |  | 175 |  |  | 63 |  |  | 24 |  |  | 20 |  |  | (1) |  |  | 107 |  |  | – |  |  | 282
Cost of equipment and products |  |  | 228 |  |  | 1 |  |  | – |  |  | 36 |  |  | – |  |  | 36 |  |  | 6 |  |  | 270
Selling, general and administrative |  |  | 339 |  |  | 48 |  |  | 13 |  |  | 11 |  |  | – |  |  | 71 |  |  | (4) |  |  | 406
Depreciation, amortization and accretion |  |  | 153 |  |  | 39 |  |  | 10 |  |  | 7 |  |  | – |  |  | 56 |  |  | 2 |  |  | 211
(Gain) loss on asset disposals, net |  |  | 4 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 1 |  |  | (1) |  |  | 4
(Gain) loss on license sales and exchanges, net |  |  | (17) |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | (17)
Operating income (loss)1 |  |  | 54 |  |  | 29 |  |  | 2 |  |  | (2) |  |  | – |  |  | 29 |  |  | (1) |  |  | 82
Equity in earnings of unconsolidated entities |  |  | 33 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | (1) |  |  | 32
Interest and dividend income 1 |  |  | 3 |  |  | 1 |  |  | – |  |  | – |  |  | – |  |  | 1 |  |  | – |  |  | 4
Interest expense |  |  | (28) |  |  | – |  |  | – |  |  | (1) |  |  | – |  |  | (1) |  |  | (13) |  |  | (42)
Other, net |  |  | (1) |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 2 |  |  | 1
Income (loss) before income taxes |  |  | 61 |  |  | 30 |  |  | 2 |  |  | (3) |  |  | – |  |  | 29 |  |  | (13) |  |  | 77
Income tax expense (benefit)2 |  |  | 33 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 11 |  |  | (10) |  |  | 34
Net income (loss) |  |  | 28 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 18 |  |  | (3) |  |  | 43
Add back: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, amortization and accretion |  |  | 153 |  |  | 39 |  |  | 10 |  |  | 7 |  |  | – |  |  | 56 |  |  | 2 |  |  | 211
(Gain) loss on asset disposals, net |  |  | 4 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 1 |  |  | (1) |  |  | 4
(Gain) loss on license sales and exchanges, net |  |  | (17) |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | (17)
Interest expense |  |  | 28 |  |  | – |  |  | – |  |  | 1 |  |  | – |  |  | 1 |  |  | 13 |  |  | 42
Income tax expense (benefit)2 |  |  | 33 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 11 |  |  | (10) |  |  | 34
Adjusted EBITDA 3 |  | $ | 229 |  | $ | 69 |  | $ | 13 |  | $ | 5 |  | $ | – |  | $ | 86 |  | $ | 2 |  | $ | 317
Investments in unconsolidated entities |  | $ | 434 |  | $ | 4 |  | $ | – |  | $ | – |  | $ | – |  | $ | 4 |  | $ | 34 |  | $ | 472
Total assets |  | $ | 7,024 |  | $ | 1,204 |  | $ | 609 |  | $ | 264 |  | $ | – |  | $ | 2,077 |  | $ | 248 |  | $ | 9,349
Capital expenditures |  | $ | 61 |  | $ | 17 |  | $ | 9 |  | $ | 6 |  | $ | – |  | $ | 33 |  | $ | 2 |  | $ | 96
Numbers may not foot due to rounding. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  | 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 1 |  | $ | 771 |  | $ | 173 |  | $ | 45 |  | $ | 29 |  | $ | (1) |  | $ | 246 |  | $ | (6) |  | $ | 1,011
| Equipment and product sales |  |  | 198 |  |  | – |  |  | – |  |  | 35 |  |  | – |  |  | 35 |  |  | 10 |  |  | 243
|  | Total operating revenues 1 |  |  | 969 |  |  | 173 |  |  | 45 |  |  | 64 |  |  | (1) |  |  | 281 |  |  | 4 |  |  | 1,254
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 |  |  | 10 |  |  | 20 |  |  | 1 |  |  | (4) |  |  | – |  |  | 17 |  |  | (1) |  |  | 26
Equity in earnings of unconsolidated entities |  |  | 35 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 35
Interest and dividend income 1 |  |  | 2 |  |  | 1 |  |  | – |  |  | – |  |  | – |  |  | 1 |  |  | – |  |  | 3
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)2 |  |  | 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)2 |  |  | 11 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 7 |  |  | (5) |  |  | 13
Adjusted EBITDA 3 |  | $ | 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
1 | Equipment installment plan interest income is reflected as a component of Service revenues consistent with an accounting policy change effective January 1, 2017. All prior period numbers have been recast to conform to this accounting change. See Note 1 — Basis of Presentation for additional details.
2 | 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”.
3 | 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. TDS believes Adjusted EBITDA is a useful measure of TDS’ operating results before significant recurring non-cash charges, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of TDS' financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management's evaluation of business performance.

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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=68060357&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=68060357&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=68060357&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=68060357&loc=d3e8736-108599 + Details
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