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Business Segment Information | 3 Months Ended
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Mar. 31, 2018
Business Segment Information [Abstract] |
Business Segment Information | Note 11 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. TDS has re-evaluated internal reporting roles with regard to its HMS business unit and, as a result, has changed its reportable segments. Effective January 1, 2018, HMS is no longer reported under TDS Telecom, but is reported as a part of Corporate, Eliminations and Other. Prior periods have been recast to conform to the revised presentation. Financial data for TDS’ reportable segments for the three month periods ended, or as of March 31, 2018 and 2017, is as follows. See Note 1 — Basis of Presentation for additional information.
|  |  |  |  |  |  | TDS Telecom |  |  |  |  |  |
Three Months Ended or as of March 31, 2018¹ |  | U.S. Cellular |  | Wireline |  | Cable |  | TDS Telecom Total 2 |  | Corporate, Eliminations and Other |  | Total
(Dollars in millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Service |  | $ | 724 |  | $ | 175 |  | $ | 55 |  | $ | 230 |  | $ | 24 |  | $ | 978
| Equipment and product sales |  |  | 218 |  |  | – |  |  | – |  |  | – |  |  | 29 |  |  | 247
|  | Total operating revenues |  |  | 942 |  |  | 175 |  |  | 55 |  |  | 231 |  |  | 52 |  |  | 1,225
Cost of services (excluding Depreciation, amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| and accretion reported below) |  |  | 179 |  |  | 65 |  |  | 26 |  |  | 90 |  |  | 19 |  |  | 288
Cost of equipment and products |  |  | 219 |  |  | – |  |  | – |  |  | – |  |  | 27 |  |  | 246
Selling, general and administrative |  |  | 326 |  |  | 47 |  |  | 13 |  |  | 60 |  |  | 9 |  |  | 395
Depreciation, amortization and accretion |  |  | 159 |  |  | 37 |  |  | 17 |  |  | 54 |  |  | 8 |  |  | 221
(Gain) loss on asset disposals, net |  |  | 1 |  |  | – |  |  | – |  |  | – |  |  | 1 |  |  | 2
(Gain) loss on license sales and exchanges, net |  |  | (7) |  |  | – |  |  | – |  |  | – |  |  | – |  |  | (7)
Operating income (loss) |  |  | 65 |  |  | 26 |  |  | (1) |  |  | 25 |  |  | (10) |  |  | 80
Equity in earnings of unconsolidated entities |  |  | 38 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 38
Interest and dividend income |  |  | 4 |  |  | 1 |  |  | – |  |  | 1 |  |  | – |  |  | 5
Interest expense |  |  | (29) |  |  | – |  |  | – |  |  | – |  |  | (14) |  |  | (43)
Other, net |  |  | (1) |  |  | 1 |  |  | – |  |  | 1 |  |  | 1 |  |  | 1
Income (loss) before income taxes |  |  | 77 |  |  | 28 |  |  | (1) |  |  | 27 |  |  | (23) |  |  | 81
Income tax expense (benefit)3 |  |  | 22 |  |  |  |  |  |  |  |  | 6 |  |  | (4) |  |  | 24
Net income (loss) |  |  | 55 |  |  |  |  |  |  |  |  | 21 |  |  | (19) |  |  | 57
Add back: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, amortization and accretion |  |  | 159 |  |  | 37 |  |  | 17 |  |  | 54 |  |  | 8 |  |  | 221
(Gain) loss on asset disposals, net |  |  | 1 |  |  | – |  |  | – |  |  | – |  |  | 1 |  |  | 2
(Gain) loss on license sales and exchanges, net |  |  | (7) |  |  | – |  |  | – |  |  | – |  |  | – |  |  | (7)
Interest expense |  |  | 29 |  |  | – |  |  | – |  |  | – |  |  | 14 |  |  | 43
Income tax expense (benefit)3 |  |  | 22 |  |  |  |  |  |  |  |  | 6 |  |  | (4) |  |  | 24
Adjusted EBITDA 4 |  | $ | 259 |  | $ | 65 |  | $ | 16 |  | $ | 81 |  | $ | – |  | $ | 340
Investments in unconsolidated entities |  | $ | 450 |  | $ | 4 |  | $ | – |  | $ | 4 |  | $ | 34 |  | $ | 488
Total assets |  | $ | 7,048 |  | $ | 1,264 |  | $ | 644 |  | $ | 1,901 |  | $ | 532 |  | $ | 9,481
Capital expenditures |  | $ | 70 |  | $ | 29 |  | $ | 11 |  | $ | 40 |  | $ | 5 |  | $ | 115
|  |  |  |  |  |  | TDS Telecom |  |  |  |  |  |
Three Months Ended or as of March 31, 2017 |  | U.S. Cellular |  | Wireline |  | Cable |  | TDS Telecom Total 2 |  | Corporate, Eliminations and Other |  | Total
(Dollars in millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Service |  | $ | 746 |  | $ | 179 |  | $ | 49 |  | $ | 228 |  | $ | 23 |  | $ | 997
| Equipment and product sales |  |  | 190 |  |  | – |  |  | – |  |  | – |  |  | 51 |  |  | 241
|  | Total operating revenues |  |  | 936 |  |  | 179 |  |  | 49 |  |  | 228 |  |  | 74 |  |  | 1,238
Cost of services (excluding Depreciation, amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| and accretion reported below) |  |  | 175 |  |  | 63 |  |  | 24 |  |  | 87 |  |  | 20 |  |  | 282
Cost of equipment and products |  |  | 228 |  |  | 1 |  |  | – |  |  | 1 |  |  | 41 |  |  | 270
Selling, general and administrative 5 |  |  | 339 |  |  | 48 |  |  | 13 |  |  | 61 |  |  | 7 |  |  | 407
Depreciation, amortization and accretion |  |  | 153 |  |  | 39 |  |  | 10 |  |  | 49 |  |  | 9 |  |  | 211
(Gain) loss on asset disposals, net |  |  | 4 |  |  | – |  |  | – |  |  | 1 |  |  | (1) |  |  | 4
(Gain) loss on license sales and exchanges, net |  |  | (17) |  |  | – |  |  | – |  |  | – |  |  | – |  |  | (17)
Operating income (loss)5 |  |  | 54 |  |  | 28 |  |  | 2 |  |  | 30 |  |  | (3) |  |  | 81
Equity in earnings of unconsolidated entities |  |  | 33 |  |  | – |  |  | – |  |  | – |  |  | (1) |  |  | 32
Interest and dividend income |  |  | 3 |  |  | 1 |  |  | – |  |  | 1 |  |  | – |  |  | 4
Interest expense |  |  | (28) |  |  | – |  |  | – |  |  | – |  |  | (14) |  |  | (42)
Other, net 5 |  |  | (1) |  |  | 1 |  |  | – |  |  | 1 |  |  | 2 |  |  | 2
Income (loss) before income taxes |  |  | 61 |  |  | 30 |  |  | 2 |  |  | 32 |  |  | (16) |  |  | 77
Income tax expense (benefit)3 |  |  | 33 |  |  |  |  |  |  |  |  | 13 |  |  | (12) |  |  | 34
Net income (loss) |  |  | 28 |  |  |  |  |  |  |  |  | 19 |  |  | (4) |  |  | 43
Add back: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, amortization and accretion |  |  | 153 |  |  | 39 |  |  | 10 |  |  | 49 |  |  | 9 |  |  | 211
(Gain) loss on asset disposals, net |  |  | 4 |  |  | – |  |  | – |  |  | 1 |  |  | (1) |  |  | 4
(Gain) loss on license sales and exchanges, net |  |  | (17) |  |  | – |  |  | – |  |  | – |  |  | – |  |  | (17)
Interest expense |  |  | 28 |  |  | – |  |  | – |  |  | – |  |  | 14 |  |  | 42
Income tax expense (benefit)3 |  |  | 33 |  |  |  |  |  |  |  |  | 13 |  |  | (12) |  |  | 34
Adjusted EBITDA 4 |  | $ | 229 |  | $ | 69 |  | $ | 13 |  | $ | 82 |  | $ | 6 |  | $ | 317
Investments in unconsolidated entities |  | $ | 434 |  | $ | 4 |  | $ | – |  | $ | 4 |  | $ | 34 |  | $ | 472
Total assets |  | $ | 7,024 |  | $ | 1,204 |  | $ | 609 |  | $ | 1,815 |  | $ | 510 |  | $ | 9,349
Capital expenditures |  | $ | 61 |  | $ | 17 |  | $ | 9 |  | $ | 27 |  | $ | 8 |  | $ | 96
Numbers may not foot due to rounding. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1 | As of January 1, 2018, TDS adopted ASU 2014-09 using a modified retrospective approach. Under this method, the new accounting standard is applied only to the most recent period presented. As a result, 2018 amounts include the impacts of ASU 2014-09, but 2017 amounts remain as previously reported, except as specifically stated. See Note 2 — Revenue Recognition for additional information.
2 | TDS Telecom Total includes eliminations between the Wireline and Cable segments.
3 | Income tax expense (benefit) is not provided at the individual segment level for Wireline and Cable. TDS calculates income tax expense for “TDS Telecom Total”.
4 | 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.
5 | ASU 2017-07, regarding net periodic pension cost and net periodic postretirement benefit cost was adopted as of January 1, 2018, and applied retrospectively. All prior year numbers have been recast to conform to this standard.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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