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Business Segment Information | 12 Months Ended
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Dec. 31, 2016
Segment Reporting [Abstract] |
Business Segment Information | Note 18 Business Segment Information U.S. Cellular and TDS Telecom are billed for all services they receive from TDS, consisting primarily of information processing, accounting and finance, and general management services. Such billings are based on expenses specifically identified to U.S. Cellular and TDS Telecom and on allocations of common expenses. Management believes the method used to allocate common expenses is reasonable and that all expenses and costs applicable to U.S. Cellular and TDS Telecom are reflected in the accompanying business segment information on a basis that is representative of what they would have been if U.S. Cellular and TDS Telecom operated on a stand-alone basis. Financial data for TDS’ reportable segments for 2016, 2015 and 2014, is as follows. See Note 1 — Summary of Significant Accounting Policies and Recent Accounting Pronouncements for additional information.
|  |  |  | TDS Telecom |  |  |  |  |  |
Year Ended or as of December 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 |  | $ | 3,081 |  | $ | 696 |  | $ | 185 |  | $ | 119 |  | $ | (5) |  | $ | 995 |  | $ | (26) |  | $ | 4,050
| Equipment and product sales |  |  | 909 |  |  | 2 |  |  | – |  |  | 155 |  |  | – |  |  | 157 |  |  | 39 |  |  | 1,105
|  | Total operating revenues 1 |  |  | 3,990 |  |  | 698 |  |  | 185 |  |  | 273 |  |  | (5) |  |  | 1,151 |  |  | 14 |  |  | 5,155
Cost of services (excluding Depreciation, amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
and accretion expense reported below) |  |  | 760 |  |  | 258 |  |  | 94 |  |  | 82 |  |  | (4) |  |  | 430 |  |  | (1) |  |  | 1,189
Cost of equipment and products |  |  | 1,081 |  |  | 2 |  |  | – |  |  | 128 |  |  | – |  |  | 131 |  |  | 28 |  |  | 1,240
Selling, general and administrative |  |  | 1,480 |  |  | 197 |  |  | 51 |  |  | 48 |  |  | – |  |  | 295 |  |  | (16) |  |  | 1,759
Depreciation, amortization and accretion |  |  | 618 |  |  | 159 |  |  | 37 |  |  | 29 |  |  | – |  |  | 224 |  |  | 8 |  |  | 850
(Gain) loss on asset disposals, net |  |  | 22 |  |  | 2 |  |  | 2 |  |  | – |  |  | – |  |  | 4 |  |  | 1 |  |  | 27
(Gain) loss on sale of business and other exit costs, net |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | (1) |  |  | (1)
(Gain) loss on license sales and exchanges, net |  |  | (19) |  |  | (1) |  |  | – |  |  | – |  |  | – |  |  | (1) |  |  | – |  |  | (20)
Operating income (loss)¹ |  |  | 48 |  |  | 80 |  |  | 2 |  |  | (14) |  |  | – |  |  | 67 |  |  | (4) |  |  | 111
Equity in earnings of unconsolidated entities |  |  | 140 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 140
Interest and dividend income 1 |  |  | 6 |  |  | 3 |  |  | – |  |  | – |  |  | – |  |  | 3 |  |  | 2 |  |  | 11
Interest expense |  |  | (113) |  |  | 1 |  |  | – |  |  | (4) |  |  | – |  |  | (3) |  |  | (54) |  |  | (170)
Other, net |  |  | 1 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | (1) |  |  | –
Income (loss) before income taxes |  |  | 82 |  |  | 83 |  |  | 2 |  |  | (18) |  |  | – |  |  | 67 |  |  | (57) |  |  | 92
Income tax expense (benefit)2 |  |  | 33 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 25 |  |  | (18) |  |  | 40
Net income (loss) |  |  | 49 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 42 |  |  | (39) |  |  | 52
Add back: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, amortization and accretion |  |  | 618 |  |  | 159 |  |  | 37 |  |  | 29 |  |  | – |  |  | 224 |  |  | 8 |  |  | 850
(Gain) loss on asset disposals, net |  |  | 22 |  |  | 2 |  |  | 2 |  |  | – |  |  | – |  |  | 4 |  |  | 1 |  |  | 27
(Gain) loss on sale of business and other exit costs, net |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | (1) |  |  | (1)
(Gain) loss on license sales and exchanges, net |  |  | (19) |  |  | (1) |  |  | – |  |  | – |  |  | – |  |  | (1) |  |  | – |  |  | (20)
Interest expense |  |  | 113 |  |  | (1) |  |  | – |  |  | 4 |  |  | – |  |  | 3 |  |  | 54 |  |  | 170
Income tax expense (benefit)2 |  |  | 33 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 25 |  |  | (18) |  |  | 40
Adjusted EBITDA 3 |  | $ | 816 |  | $ | 242 |  | $ | 41 |  | $ | 15 |  | $ | – |  | $ | 298 |  | $ | 4 |  | $ | 1,118
Investments in unconsolidated entities |  | $ | 413 |  | $ | 4 |  | $ | – |  | $ | – |  | $ | – |  | $ | 4 |  | $ | 34 |  | $ | 451
Total assets |  | $ | 7,110 |  | $ | 1,231 |  | $ | 599 |  | $ | 264 |  | $ | – |  | $ | 2,094 |  | $ | 242 |  | $ | 9,446
Capital expenditures |  | $ | 446 |  | $ | 108 |  | $ | 54 |  | $ | 11 |  | $ | – |  | $ | 173 |  | $ | 11 |  | $ | 630
|  |  |  | TDS Telecom |  |  |  |  |  |
Year Ended or as of December 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 1 |  | $ | 3,384 |  | $ | 699 |  | $ | 175 |  | $ | 117 |  | $ | (5) |  | $ | 986 |  | $ | (14) |  | $ | 4,356
| Equipment and product sales |  |  | 647 |  |  | 2 |  |  | – |  |  | 170 |  |  | – |  |  | 172 |  |  | 35 |  |  | 854
|  | Total operating revenues 1 |  |  | 4,031 |  |  | 701 |  |  | 175 |  |  | 287 |  |  | (5) |  |  | 1,158 |  |  | 21 |  |  | 5,210
Cost of services (excluding Depreciation, amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
and accretion expense reported below) |  |  | 775 |  |  | 255 |  |  | 79 |  |  | 85 |  |  | (4) |  |  | 414 |  |  | 2 |  |  | 1,191
Cost of equipment and products |  |  | 1,053 |  |  | 2 |  |  | – |  |  | 143 |  |  | – |  |  | 145 |  |  | 26 |  |  | 1,224
Selling, general and administrative |  |  | 1,494 |  |  | 194 |  |  | 54 |  |  | 47 |  |  | – |  |  | 294 |  |  | (7) |  |  | 1,781
Depreciation, amortization and accretion |  |  | 607 |  |  | 166 |  |  | 35 |  |  | 27 |  |  | – |  |  | 228 |  |  | 9 |  |  | 844
(Gain) loss on asset disposals, net |  |  | 16 |  |  | 5 |  |  | 1 |  |  | – |  |  | – |  |  | 6 |  |  | – |  |  | 22
(Gain) loss on sale of business and other exit costs, net |  |  | (114) |  |  | (10) |  |  | – |  |  | – |  |  | – |  |  | (10) |  |  | (12) |  |  | (136)
(Gain) loss on license sales and exchanges, net |  |  | (147) |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | (147)
Operating income (loss)¹ |  |  | 347 |  |  | 89 |  |  | 6 |  |  | (15) |  |  | – |  |  | 79 |  |  | 5 |  |  | 431
Equity in earnings of unconsolidated entities |  |  | 140 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 140
Interest and dividend income 1 |  |  | 2 |  |  | 2 |  |  | – |  |  | – |  |  | – |  |  | 2 |  |  | 1 |  |  | 5
Interest expense |  |  | (86) |  |  | 1 |  |  | – |  |  | (2) |  |  | – |  |  | (1) |  |  | (55) |  |  | (142)
Other, net |  |  | 1 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 1
Income (loss) before income taxes |  |  | 404 |  |  | 92 |  |  | 7 |  |  | (18) |  |  | – |  |  | 81 |  |  | (50) |  |  | 435
Income tax expense (benefit)2 |  |  | 157 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 35 |  |  | (20) |  |  | 172
Net income (loss) |  |  | 247 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 46 |  |  | (30) |  |  | 263
Add back: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, amortization and accretion |  |  | 607 |  |  | 166 |  |  | 35 |  |  | 27 |  |  | – |  |  | 228 |  |  | 9 |  |  | 844
(Gain) loss on asset disposals, net |  |  | 16 |  |  | 5 |  |  | 1 |  |  | – |  |  | – |  |  | 6 |  |  | – |  |  | 22
(Gain) loss on sale of business and other exit costs, net |  |  | (114) |  |  | (10) |  |  | – |  |  | – |  |  | – |  |  | (10) |  |  | (12) |  |  | (136)
(Gain) loss on license sales and exchanges, net |  |  | (147) |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | (147)
Interest expense |  |  | 86 |  |  | (1) |  |  | – |  |  | 2 |  |  | – |  |  | 1 |  |  | 55 |  |  | 142
Income tax expense (benefit)2 |  |  | 157 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 35 |  |  | (20) |  |  | 172
Adjusted EBITDA 3 |  | $ | 852 |  | $ | 252 |  | $ | 42 |  | $ | 12 |  | $ | – |  | $ | 306 |  | $ | 2 |  | $ | 1,160
Investments in unconsolidated entities |  | $ | 363 |  | $ | 4 |  | $ | – |  | $ | – |  | $ | – |  | $ | 4 |  | $ | 35 |  | $ | 402
Total assets |  | $ | 7,060 |  | $ | 1,312 |  | $ | 578 |  | $ | 286 |  | $ | – |  | $ | 2,176 |  | $ | 186 |  | $ | 9,422
Capital expenditures |  | $ | 533 |  | $ | 140 |  | $ | 52 |  | $ | 27 |  | $ | – |  | $ | 219 |  | $ | 7 |  | $ | 759
|  |  |  | TDS Telecom |  |  |  |  |  |
Year Ended or as of December 31, 2014 |  | U.S. Cellular |  | Wireline |  | Cable |  | HMS |  | TDS Telecom Eliminations |  | TDS Telecom Total |  | Corporate, Eliminations and Other |  | Total
(Dollars in millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Service 1 |  | $ | 3,407 |  | $ | 715 |  | $ | 117 |  | $ | 110 |  | $ | (4) |  | $ | 938 |  | $ | (7) |  | $ | 4,338
| Equipment and product sales |  |  | 495 |  |  | 2 |  |  | – |  |  | 149 |  |  | – |  |  | 151 |  |  | 34 |  |  | 680
|  | Total operating revenues 1 |  |  | 3,902 |  |  | 716 |  |  | 117 |  |  | 259 |  |  | (4) |  |  | 1,088 |  |  | 28 |  |  | 5,018
Cost of services (excluding Depreciation, amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
and accretion reported below) |  |  | 770 |  |  | 257 |  |  | 54 |  |  | 77 |  |  | (4) |  |  | 385 |  |  | 9 |  |  | 1,164
Cost of equipment and products |  |  | 1,193 |  |  | 2 |  |  | – |  |  | 126 |  |  | – |  |  | 129 |  |  | 25 |  |  | 1,347
Selling, general and administrative |  |  | 1,592 |  |  | 190 |  |  | 36 |  |  | 53 |  |  | – |  |  | 279 |  |  | (6) |  |  | 1,865
Depreciation, amortization and accretion |  |  | 606 |  |  | 169 |  |  | 24 |  |  | 27 |  |  | – |  |  | 220 |  |  | 11 |  |  | 837
Loss on impairment of assets |  |  | – |  |  | – |  |  | – |  |  | 84 |  |  | – |  |  | 84 |  |  | 4 |  |  | 88
(Gain) loss on asset disposals, net |  |  | 21 |  |  | 2 |  |  | 2 |  |  | – |  |  | – |  |  | 5 |  |  | 1 |  |  | 27
(Gain) loss on sale of business and other exit costs, net |  |  | (33) |  |  | (2) |  |  | – |  |  | – |  |  | – |  |  | (2) |  |  | 19 |  |  | (16)
(Gain) loss on license sales and exchanges, net |  |  | (113) |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | (113)
Operating income (loss)¹ |  |  | (134) |  |  | 98 |  |  | – |  |  | (109) |  |  | – |  |  | (10) |  |  | (37) |  |  | (181)
Equity in earnings of unconsolidated entities |  |  | 130 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 2 |  |  | 132
Interest and dividend income 1 |  |  | 3 |  |  | 2 |  |  | – |  |  | – |  |  | – |  |  | 2 |  |  | 3 |  |  | 8
Interest expense |  |  | (57) |  |  | 3 |  |  | – |  |  | (2) |  |  | – |  |  | 1 |  |  | (55) |  |  | (111)
Other, net |  |  | (1) |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 1 |  |  | –
Income (loss) before income taxes |  |  | (59) |  |  | 104 |  |  | – |  |  | (111) |  |  | – |  |  | (7) |  |  | (86) |  |  | (152)
Income tax expense (benefit)2 |  |  | (12) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 18 |  |  | (11) |  |  | (5)
Net income (loss) |  |  | (47) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (24) |  |  | (76) |  |  | (147)
Add back: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, amortization and accretion |  |  | 606 |  |  | 169 |  |  | 24 |  |  | 27 |  |  | – |  |  | 220 |  |  | 11 |  |  | 837
Loss on impairment of assets |  |  | – |  |  | – |  |  | – |  |  | 84 |  |  | – |  |  | 84 |  |  | 4 |  |  | 88
(Gain) loss on asset disposals, net |  |  | 21 |  |  | 2 |  |  | 2 |  |  | – |  |  | – |  |  | 5 |  |  | 1 |  |  | 27
(Gain) loss on sale of business and other exit costs, net |  |  | (33) |  |  | (2) |  |  | – |  |  | – |  |  | – |  |  | (2) |  |  | 19 |  |  | (16)
(Gain) loss on license sales and exchanges, net |  |  | (113) |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | (113)
Interest expense |  |  | 57 |  |  | (3) |  |  | – |  |  | 2 |  |  | – |  |  | (1) |  |  | 55 |  |  | 111
Income tax expense (benefit)2 |  |  | (12) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 18 |  |  | (11) |  |  | (5)
Adjusted EBITDA 3 |  | $ | 479 |  | $ | 270 |  | $ | 26 |  | $ | 2 |  | $ | – |  | $ | 298 |  | $ | 5 |  | $ | 782
Investments in unconsolidated entities |  | $ | 283 |  | $ | 4 |  | $ | – |  | $ | – |  | $ | – |  | $ | 4 |  | $ | 35 |  | $ | 322
Total assets |  | $ | 6,462 |  | $ | 1,419 |  | $ | 564 |  | $ | 269 |  | $ | – |  | $ | 2,252 |  | $ | 140 |  | $ | 8,854
Capital expenditures |  | $ | 558 |  | $ | 136 |  | $ | 36 |  | $ | 37 |  | $ | – |  | $ | 208 |  | $ | 5 |  | $ | 771
Numbers may not foot due to rounding. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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 numbers have been recast to conform to this accounting change. See Note 21 — Retrospective Application of Change in Accounting Policy 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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