Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

In the following table, TDS' revenues are disaggregated by type of service, which represents the relevant categorization of revenues for TDS' reportable segments, and timing of recognition. Service revenues are recognized over time and Equipment and product sales are recognized at a point in time.


Three Months Ended March 31, 2023	UScellular		TDS Telecom		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service	$	691	$	—	$	—	$	691
Inbound roaming	9		—		—		9
Residential	—		169		—		169
Commercial	—		41		—		41
Wholesale	—		42		—		42
Other service	42		—		18		60
Service revenues from contracts with customers	742		252		18		1,012
Equipment and product sales	219		—		41		260
Total revenues from contracts with customers	961		252		59		1,272
Operating lease income	25		1		5		31
Total operating revenues	$	986	$	253	$	64	$	1,303


Three Months Ended March 31, 2022	UScellular		TDS Telecom		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service	$	702	$	—	$	—	$	702
Inbound roaming	21		—		—		21
Residential	—		163		—		163
Commercial	—		44		—		44
Wholesale	—		44		—		44
Other service	42		—		17		59
Service revenues from contracts with customers	765		250		17		1,033
Equipment and product sales	223		—		30		253
Total revenues from contracts with customers	988		251		47		1,286
Operating lease income	22		1		6		29
Total operating revenues	$	1,010	$	251	$	54	$	1,315

Numbers may not foot due to rounding.

Contract with Customer, Assets and Liabilities

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


	March 31, 2023		December 31, 2022
(Dollars in millions)
Contract assets	$	12	$	12
Contract liabilities	$	390	$	395

Remaining Performance Obligations

The following table includes estimated service revenues 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 revenues 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 March 31, 2023 and may vary from actual results. As practical expedients, revenue related to contracts of less than one year, generally month-to-month contracts, and contracts with a fixed per-unit price and variable quantity, are excluded from these estimates.


	Service Revenues
(Dollars in millions)
Remainder of 2023	$	342
2024	199
Thereafter	145
Total	$	686

Contract Cost Assets

TDS expects that commission fees paid as a result of obtaining contracts are recoverable and therefore TDS defers and amortizes these costs. As a practical expedient, costs with an amortization period of one year or less are expensed as incurred. TDS also incurs fulfillment costs, such as installation costs, where there is an expectation that a future benefit will be realized. Deferred 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. Contract cost asset balances, which are recorded in Other assets and deferred charges in the Consolidated Balance Sheet, were as follows:


	March 31, 2023		December 31, 2022
(Dollars in millions)
Costs to obtain contracts
Sales commissions	$	143	$	144
Fulfillment costs
Installation costs	7		8

Total contract cost assets	$	150	$	152