XML 99 R50.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Stock-Based Compensation (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2019
Share-based Payment Arrangement, Noncash Expense [Abstract] |
Stock-based compensation | The following table summarizes stock-based compensation expense recognized during 2019, 2018 and 2017:
Year Ended December 31, | 2019 |  | 2018 |  | 2017
(Dollars in millions) |  |  |  |  |
Stock option awards | $ | 3 |  |  | $ | 5 |  |  | $ | 10 |
Restricted stock unit awards | 33 |  |  | 30 |  |  | 29 |
Performance share unit awards | 21 |  |  | 17 |  |  | 5 |
Deferred compensation bonus and matching stock unit awards | — |  |  | — |  |  | 1 |
Awards under Non-Employee Director compensation plan | 2 |  |  | 2 |  |  | 1 |
Total stock-based compensation, before income taxes | 59 |  |  | 54 |  |  | 46 |
Income tax benefit | (15 | ) |  | (14 | ) |  | (17 | )
Total stock-based compensation expense, net of income taxes | $ | 44 |  |  | $ | 40 |  |  | $ | 29 |
Stock-based compensation, allocation by financial statement line item | The following table provides a summary of the classification of stock-based compensation expense included in the Consolidated Statement of Operations for the years ended:
December 31, | 2019 |  | 2018 |  | 2017
(Dollars in millions) |  |  |  |  |
Selling, general and administrative expense | $ | 54 |  |  | $ | 49 |  |  | $ | 42 |
Cost of services expense | 5 |  |  | 5 |  |  | 4 |
Total stock-based compensation | $ | 59 |  |  | $ | 54 |  |  | $ | 46 |
Stock-based compensation, fair value assumptions | U.S. Cellular did not grant stock option awards in 2019, 2018 or 2017. TDS estimated the fair value of stock options granted in 2019, 2018 and 2017 using the Black-Scholes valuation model and the assumptions shown in the table below:
| 2019 |  | 2018 |  | 2017
Expected life | 6.2 years |  |  | 6.3 years |  |  | 6.4 years |
Expected annual volatility rate | 29.0 | % |  | 28.6 | % |  | 30.4 | %
Dividend yield | 2.1 | % |  | 2.5 | % |  | 2.2 | %
Risk-free interest rate | 2.4 | % |  | 2.9 | % |  | 2.0 | %
Estimated annual forfeiture rate | 3.8 | % |  | 3.3 | % |  | 2.5 | %
Summary of stock options | A summary of TDS stock options (total and portion exercisable) and changes during 2019 is presented in the tables and narrative below.
Common Share Options | Number of Options |  | Weighted Average Exercise Prices |  | Aggregate Intrinsic Value (in millions) |  | Weighted Average Remaining Contractual Life (in years)
Outstanding at December 31, 2018 | 4,763,000 |  |  | $ | 26.57 |  |  |  |  |
(3,270,000 exercisable) |  |  | $ | 26.12 |  |  |  |  |
Granted | 208,000 |  |  | $ | 30.72 |  |  |  |  |
Exercised | (826,000 | ) |  | $ | 27.25 |  |  |  |  |
Forfeited | (54,000 | ) |  | $ | 27.70 |  |  |  |  |
Outstanding at December 31, 2019 | 4,091,000 |  |  | $ | 26.63 |  |  | $ | 4 |  |  | 5.0
(2,896,000 exercisable) |  |  | $ | 26.32 |  |  | $ | 4 |  |  | 3.7
A summary of U.S. Cellular stock options outstanding (total and portion exercisable) and changes during 2019 is presented in the table below:
Common Share Options | Number of Options |  | Weighted Average Exercise Price |  | Aggregate Intrinsic Value (in millions) |  | Weighted Average Remaining Contractual Life (in years)
Outstanding at December 31, 2018 | 806,000 |  |  | $ | 43.10 |  |  |  |  |
(420,000 exercisable) |  |  | $ | 42.39 |  |  |  |  |
Exercised | (339,000 | ) |  | $ | 44.27 |  |  |  |  |
Expired | (7,000 | ) |  | $ | 45.87 |  |  |  |  |
Outstanding at December 31, 2019 | 460,000 |  |  | $ | 42.20 |  |  | $ | — |  |  | 4.9
(460,000 exercisable) |  |  | $ | 42.20 |  |  | $ | — |  |  | 4.9
Summary of nonvested restricted stock units | A summary of TDS nonvested restricted stock units and changes during 2019 is presented in the table below:
Common Restricted Stock Units | Number |  | Weighted Average Grant Date Fair Value
Nonvested at December 31, 2018 | 1,212,000 |  |  | $ | 25.73 |
Granted | 425,000 |  |  | $ | 28.81 |
Vested | (355,000 | ) |  | $ | 27.87 |
Forfeited | (49,000 | ) |  | $ | 26.11 |
Nonvested at December 31, 2019 | 1,233,000 |  |  | $ | 26.16 |
A summary of U.S. Cellular nonvested restricted stock units at December 31, 2019, and changes during the year then ended is presented in the table below:
Common Restricted Stock Units | Number |  | Weighted Average Grant Date Fair Value
Nonvested at December 31, 2018 | 1,569,000 |  |  | $ | 39.74 |
Granted | 478,000 |  |  | $ | 46.81 |
Vested | (525,000 | ) |  | $ | 42.99 |
Forfeited | (61,000 | ) |  | $ | 39.38 |
Nonvested at December 31, 2019 | 1,461,000 |  |  | $ | 40.90 |
Summary of nonvested performance share units | A summary of TDS nonvested performance share units and changes during 2019 is presented in the table below:
Common Performance Share Units | Number |  | Weighted Average Grant Date Fair Value
Nonvested at December 31, 2018 | 350,000 |  |  | $ | 27.38 |
Granted | 229,000 |  |  | $ | 30.72 |
Vested | (99,000 | ) |  | $ | 29.45 |
Change in units based on approved performance factors | 6,000 |  |  | $ | 29.45 |
Forfeited | (7,000 | ) |  | $ | 30.33 |
Accumulated dividend equivalents | 10,000 |  |  | $ | 28.26 |
Nonvested at December 31, 2019 | 489,000 |  |  | $ | 28.53 |
A summary of U.S. Cellular’s nonvested performance share units and changes during 2019 is presented in the table below:
Common Performance Share Units | Number |  | Weighted Average Grant Date Fair Value
Nonvested at December 31, 2018 | 768,000 |  |  | $ | 37.78 |
Granted | 323,000 |  |  | $ | 46.43 |
Vested | (5,000 | ) |  | $ | 37.92 |
Change in units based on approved performance factors | 188,000 |  |  | $ | 38.81 |
Forfeited | (29,000 | ) |  | $ | 38.55 |
Nonvested at December 31, 2019 | 1,245,000 |  |  | $ | 40.16 |

X
- Definition Tabular disclosure of cost recognized for award under share-based payment arrangement by plan. Includes, but is not limited to, related tax benefit. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(1) -URI http://asc.fasb.org/extlink&oid=116856206&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfCompensationCostForShareBasedPaymentArrangementsAllocationOfShareBasedCompensationCostsByPlanTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of allocation of amount expensed and capitalized for award under share-based payment arrangement to statement of income or comprehensive income and statement of financial position. Includes, but is not limited to, corresponding line item in financial statement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(1) -URI http://asc.fasb.org/extlink&oid=116856206&loc=d3e5070-113901 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14.F) -URI http://asc.fasb.org/extlink&oid=115993241&loc=d3e301413-122809 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=116856206&loc=d3e5047-113901 + Details
Name: | us-gaap_ScheduleOfEmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the changes in outstanding nonvested performance-based units. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(2) -URI http://asc.fasb.org/extlink&oid=116856206&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfNonvestedPerformanceBasedUnitsActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the changes in outstanding nonvested restricted stock units. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(2) -URI http://asc.fasb.org/extlink&oid=116856206&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfNonvestedRestrictedStockUnitsActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for stock option plans. Includes, but is not limited to, outstanding awards at beginning and end of year, grants, exercises, forfeitures, and weighted-average grant date fair value. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=116856206&loc=d3e5070-113901 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=116856206&loc=d3e5070-113901 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1) -URI http://asc.fasb.org/extlink&oid=116856206&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2) -URI http://asc.fasb.org/extlink&oid=116856206&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ShareBasedCompensationAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration