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Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

In the following table, revenue is disaggregated by type of service and timing of revenue recognition. Service revenues are recognized over time and Equipment sales are point in time.



			TDS Telecom
Three Months Ended June 30, 2019	U.S. Cellular		Wireline		Cable		TDS Telecom Total¹		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service	$	662	$	—	$	—	$	—	$	—	$	662
Inbound roaming	44		—		—		—		—		44
Residential	—		81		51		131		—		131
Commercial	—		42		11		54		—		54
Wholesale	—		48		—		48		—		48
Other service	35		—		—		—		16		51
Service revenues from contracts with customers	741		172		62		233		16		990
Equipment and product sales	216		—		—		—		32		248
Total revenues from contracts with customers²	$	957	$	172	$	62	$	233	$	48	$	1,238



			TDS Telecom
Three Months Ended June 30, 2018	U.S. Cellular		Wireline		Cable		TDS Telecom Total¹		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service	$	652	$	—	$	—	$	—	$	—	$	652
Inbound roaming	39		—		—		—		—		39
Residential	—		80		47		127		—		127
Commercial	—		46		10		57		—		57
Wholesale	—		46		—		46		—		46
Other service	33		—		—		—		18		51
Service revenues from contracts with customers	724		173		57		229		18		971
Equipment and product sales	233		—		—		1		28		262
Total revenues from contracts with customers²	$	957	$	173	$	57	$	230	$	46	$	1,233



			TDS Telecom
Six Months Ended June 30, 2019	U.S. Cellular		Wireline		Cable		TDS Telecom Total¹			Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service	$	1,322	$	—	$	—	$	—		$	—	$	1,322
Inbound roaming	78		—		—		—			—		78
Residential	—		162		100		262			—		262
Commercial	—		86		21		107			—		107
Wholesale	—		94		—		94			—		94
Other service	66		—		—		(1		)	35		100
Service revenues from contracts with customers	1,466		342		121		462			35		1,963
Equipment and product sales	441		1		—		1			68		510
Total revenues from contracts with customers²	$	1,907	$	342	$	121	$	463		$	103	$	2,473



			TDS Telecom
Six Months Ended June 30, 2018	U.S. Cellular		Wireline		Cable		TDS Telecom Total¹			Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service	$	1,301	$	—	$	—	$	—		$	—	$	1,301
Inbound roaming	66		—		—		—			—		66
Residential	—		160		92		253			—		253
Commercial	—		94		20		114			—		114
Wholesale	—		93		—		93			—		93
Other service	65		—		—		(1		)	34		98
Service revenues from contracts with customers	1,432		348		112		459			34		1,925
Equipment and product sales	450		1		—		1			59		510
Total revenues from contracts with customers²	$	1,882	$	349	$	112	$	460		$	93	$	2,435

Numbers may not foot due to rounding.


¹	TDS Telecom Total includes eliminations between the Wireline and Cable segments.

Revenue line items in this table will not agree to amounts presented in the Consolidated Statement of Operations as the amounts in this table only include revenue resulting from contracts with customers.

Contract with Customer, Assets and Liabilities

The accounts receivable balance related to amounts billed and not paid on contracts with customers, net of allowances, is shown in the table below.



	June 30, 2019		December 31, 2018
(Dollars in millions)
Accounts receivable
Customer and agents	$	965	$	987
Other	91		73
Total¹	$	1,056	$	1,060


¹	Accounts receivable line items presented in this table will not agree to amounts presented in the Consolidated Balance Sheet as the amounts in this table only include receivables resulting from contracts with customers.

The following table provides a rollforward of contract assets from contracts with customers, which are recorded in Other current assets and Other assets and deferred charges in the Consolidated Balance Sheet.



	Contract Assets
(Dollars in millions)
Balance at December 31, 2018	$	11
Contract additions	7
Reclassified to receivables	(9		)
Balance at June 30, 2019	$	9

The following table provides a rollforward of 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.



	Contract Liabilities
(Dollars in millions)
Balance at December 31, 2018	$	203
Contract additions	118
Terminated contracts	(3		)
Revenue recognized	(108		)
Balance at June 30, 2019	$	210

Remaining Performance Obligations

The following table includes estimated service revenue 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 revenue to be recognized when 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 June 30, 2019, and may vary from actual results due to future contract modifications. As a practical expedient, revenue related to contracts of less than one year, generally month-to-month contracts, are excluded from these estimates.



	Service Revenue
(Dollars in millions)
Remainder of 2019	$	277
2020	207
Thereafter	306
Total	$	790

Contract Cost Assets

TDS expects that incremental commission fees paid as a result of obtaining contracts are recoverable and therefore TDS capitalizes these costs. As a practical expedient, costs with an amortization period of one year or less are not capitalized. TDS also incurs fulfillment costs, such as installation costs, where there is an expectation that a future benefit will be realized. Capitalized commission fees and fulfillment costs are amortized based on the timing of transfer of the goods or services to which the assets relate, typically the contract term which ranges from fifteen months to thirty-nine months. Contract cost asset balances, which are recorded in Other assets and deferred charges in the Consolidated Balance Sheet, were as follows:



	June 30, 2019		December 31, 2018
(Dollars in millions)
Costs to obtain contracts
Sales commissions	$	145	$	154
Fulfillment costs
Installation costs	11		10
Total contract cost assets	$	156	$	164