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v3.23.3

Business Segment Information (Tables) | 9 Months Ended
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Sep. 30, 2023
Segment Reporting [Abstract] |
Business segment information | Financial data for TDS’ reportable segments for the three and nine month periods ended, or as of September 30, 2023 and 2022, is as follows. See Note 1 — Basis of Presentation for additional information.
Three Months Ended or as of September 30, 2023 | UScellular |  | TDS Telecom |  | Corporate, Eliminations and Other |  | Total
(Dollars in millions) |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |
Service | $ | 762 |  |  | $ | 256 |  |  | $ | 25 |  |  | $ | 1,043 |
Equipment and product sales | 201 |  |  | — |  |  | 34 |  |  | 235 |
Total operating revenues | 963 |  |  | 256 |  |  | 59 |  |  | 1,278 |
Cost of services (excluding Depreciation, amortization and accretion reported below) | 185 |  |  | 107 |  |  | 19 |  |  | 311 |
Cost of equipment and products | 228 |  |  | — |  |  | 28 |  |  | 256 |
Selling, general and administrative | 333 |  |  | 82 |  |  | 17 |  |  | 432 |
Depreciation, amortization and accretion | 159 |  |  | 61 |  |  | 5 |  |  | 225 |
(Gain) loss on asset disposals, net | 1 |  |  | 6 |  |  | (1) |  |  | 6 |
Operating income (loss) | 57 |  |  | — |  |  | (9) |  |  | 48 |
Equity in earnings of unconsolidated entities | 40 |  |  | — |  |  | — |  |  | 40 |
Interest and dividend income | 3 |  |  | 1 |  |  | 1 |  |  | 5 |
Interest expense | (50) |  |  | 2 |  |  | (14) |  |  | (62) |
Income (loss) before income taxes | 50 |  |  | 4 |  |  | (23) |  |  | 31 |
Income tax expense (benefit) | 27 |  |  | — |  |  | — |  |  | 27 |
Net income (loss) | 23 |  |  | 4 |  |  | (23) |  |  | 4 |
Add back: |  |  |  |  |  |  |
Depreciation, amortization and accretion | 159 |  |  | 61 |  |  | 5 |  |  | 225 |
Expenses related to strategic alternatives review | 3 |  |  | — |  |  | 1 |  |  | 4 |
(Gain) loss on asset disposals, net | 1 |  |  | 6 |  |  | (1) |  |  | 6 |
Interest expense | 50 |  |  | (2) |  |  | 14 |  |  | 62 |
Income tax expense (benefit) | 27 |  |  | — |  |  | — |  |  | 27 |
Adjusted EBITDA 1 | $ | 263 |  |  | $ | 68 |  |  | $ | (3) |  |  | $ | 328 |
Investments in unconsolidated entities | $ | 477 |  |  | $ | 4 |  |  | $ | 39 |  |  | $ | 520 |
Total assets | $ | 10,749 |  |  | $ | 3,315 |  |  | $ | 350 |  |  | $ | 14,414 |
Capital expenditures | $ | 111 |  |  | $ | 172 |  |  | $ | 2 |  |  | $ | 285 |
Three Months Ended or as of September 30, 2022 | UScellular |  | TDS Telecom |  | Corporate, Eliminations and Other |  | Total
(Dollars in millions) |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |
Service | $ | 781 |  |  | $ | 256 |  |  | $ | 24 |  |  | $ | 1,061 |
Equipment and product sales | 302 |  |  | — |  |  | 29 |  |  | 331 |
Total operating revenues | 1,083 |  |  | 256 |  |  | 53 |  |  | 1,392 |
Cost of services (excluding Depreciation, amortization and accretion reported below) | 197 |  |  | 109 |  |  | 20 |  |  | 326 |
Cost of equipment and products | 354 |  |  | — |  |  | 23 |  |  | 377 |
Selling, general and administrative | 369 |  |  | 81 |  |  | 12 |  |  | 462 |
Depreciation, amortization and accretion | 177 |  |  | 53 |  |  | 4 |  |  | 234 |
(Gain) loss on asset disposals, net | 1 |  |  | 3 |  |  | — |  |  | 4 |
Operating income (loss) | (15) |  |  | 10 |  |  | (6) |  |  | (11) |
Equity in earnings of unconsolidated entities | 40 |  |  | — |  |  | — |  |  | 40 |
Interest and dividend income | 2 |  |  | 1 |  |  | 1 |  |  | 4 |
Interest expense | (42) |  |  | 2 |  |  | (6) |  |  | (46) |
Income (loss) before income taxes | (15) |  |  | 13 |  |  | (11) |  |  | (13) |
Income tax expense (benefit) | (3) |  |  | 3 |  |  | (3) |  |  | (3) |
Net income (loss) | (12) |  |  | 10 |  |  | (8) |  |  | (10) |
Add back: |  |  |  |  |  |  |
Depreciation, amortization and accretion | 177 |  |  | 53 |  |  | 4 |  |  | 234 |
(Gain) loss on asset disposals, net | 1 |  |  | 3 |  |  | — |  |  | 4 |
Interest expense | 42 |  |  | (2) |  |  | 6 |  |  | 46 |
Income tax expense | (3) |  |  | 3 |  |  | (3) |  |  | (3) |
Adjusted EBITDA 1 | $ | 205 |  |  | $ | 66 |  |  | $ | — |  |  | $ | 271 |
Investments in unconsolidated entities | $ | 461 |  |  | $ | 4 |  |  | $ | 38 |  |  | $ | 503 |
Total assets | $ | 11,056 |  |  | $ | 2,949 |  |  | $ | 474 |  |  | $ | 14,479 |
Capital expenditures | $ | 136 |  |  | $ | 166 |  |  | $ | 3 |  |  | $ | 305 |
Nine Months Ended or as of September 30, 2023 | UScellular |  | TDS Telecom |  | Corporate, Eliminations and Other |  | Total
(Dollars in millions) |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |
Service | $ | 2,289 |  |  | $ | 766 |  |  | $ | 73 |  |  | $ | 3,128 |
Equipment and product sales | 617 |  |  | 1 |  |  | 102 |  |  | 720 |
Total operating revenues | 2,906 |  |  | 767 |  |  | 175 |  |  | 3,848 |
Cost of services (excluding Depreciation, amortization and accretion reported below) | 557 |  |  | 319 |  |  | 57 |  |  | 933 |
Cost of equipment and products | 708 |  |  | — |  |  | 86 |  |  | 794 |
Selling, general and administrative | 1,020 |  |  | 244 |  |  | 44 |  |  | 1,308 |
Depreciation, amortization and accretion | 490 |  |  | 180 |  |  | 11 |  |  | 681 |
(Gain) loss on asset disposals, net | 14 |  |  | 8 |  |  | — |  |  | 22 |
Operating income (loss) | 117 |  |  | 15 |  |  | (22) |  |  | 110 |
Equity in earnings of unconsolidated entities | 121 |  |  | — |  |  | 1 |  |  | 122 |
Interest and dividend income | 8 |  |  | 3 |  |  | 5 |  |  | 16 |
Interest expense | (147) |  |  | 6 |  |  | (37) |  |  | (178) |
Other, net | — |  |  | 1 |  |  | — |  |  | 1 |
Income (loss) before income taxes | 99 |  |  | 25 |  |  | (53) |  |  | 71 |
Income tax expense (benefit) | 56 |  |  | 6 |  |  | (7) |  |  | 55 |
Net income (loss) | 43 |  |  | 19 |  |  | (46) |  |  | 16 |
Add back: |  |  |  |  |  |  |
Depreciation, amortization and accretion | 490 |  |  | 180 |  |  | 11 |  |  | 681 |
Expenses related to strategic alternatives review | 3 |  |  | — |  |  | 1 |  |  | 4 |
(Gain) loss on asset disposals, net | 14 |  |  | 8 |  |  | — |  |  | 22 |
Interest expense | 147 |  |  | (6) |  |  | 37 |  |  | 178 |
Income tax expense (benefit) | 56 |  |  | 6 |  |  | (7) |  |  | 55 |
Adjusted EBITDA 1 | $ | 753 |  |  | $ | 207 |  |  | $ | (4) |  |  | $ | 956 |
Capital expenditures | $ | 462 |  |  | $ | 434 |  |  | $ | 10 |  |  | $ | 906 |
Nine Months Ended or as of September 30, 2022 | UScellular |  | TDS Telecom |  | Corporate, Eliminations and Other |  | Total
(Dollars in millions) |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |
Service | $ | 2,351 |  |  | $ | 763 |  |  | $ | 72 |  |  | $ | 3,186 |
Equipment and product sales | 769 |  |  | 1 |  |  | 100 |  |  | 870 |
Total operating revenues | 3,120 |  |  | 763 |  |  | 173 |  |  | 4,056 |
Cost of services (excluding Depreciation, amortization and accretion reported below) | 574 |  |  | 308 |  |  | 54 |  |  | 936 |
Cost of equipment and products | 887 |  |  | 1 |  |  | 79 |  |  | 967 |
Selling, general and administrative | 1,032 |  |  | 231 |  |  | 37 |  |  | 1,300 |
Depreciation, amortization and accretion | 520 |  |  | 158 |  |  | 13 |  |  | 691 |
Loss on impairment of licenses | 3 |  |  | — |  |  | — |  |  | 3 |
(Gain) loss on asset disposals, net | 9 |  |  | 4 |  |  | — |  |  | 13 |
(Gain) loss on sale of business and other exit costs, net | (1) |  |  | — |  |  | — |  |  | (1) |
Operating income (loss) | 96 |  |  | 61 |  |  | (10) |  |  | 147 |
Equity in earnings of unconsolidated entities | 122 |  |  | — |  |  | 1 |  |  | 123 |
Interest and dividend income | 5 |  |  | 1 |  |  | 4 |  |  | 10 |
Interest expense | (115) |  |  | 5 |  |  | (8) |  |  | (118) |
Other, net | — |  |  | 1 |  |  | — |  |  | 1 |
Income (loss) before income taxes | 108 |  |  | 68 |  |  | (13) |  |  | 163 |
Income tax expense (benefit) | 46 |  |  | 18 |  |  | (2) |  |  | 62 |
Net income (loss) | 62 |  |  | 51 |  |  | (12) |  |  | 101 |
Add back: |  |  |  |  |  |  |
Depreciation, amortization and accretion | 520 |  |  | 158 |  |  | 13 |  |  | 691 |
Loss on impairment of licenses | 3 |  |  | — |  |  | — |  |  | 3 |
(Gain) loss on asset disposals, net | 9 |  |  | 4 |  |  | — |  |  | 13 |
(Gain) loss on sale of business and other exit costs, net | (1) |  |  | — |  |  | — |  |  | (1) |
Interest expense | 115 |  |  | (5) |  |  | 8 |  |  | 118 |
Income tax expense (benefit) | 46 |  |  | 18 |  |  | (2) |  |  | 62 |
Adjusted EBITDA 1 | $ | 754 |  |  | $ | 226 |  |  | $ | 7 |  |  | $ | 987 |
Capital expenditures | $ | 541 |  |  | $ | 391 |  |  | $ | 6 |  |  | $ | 938 |
Numbers may not foot due to rounding. 1 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 assessing the segments' 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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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-25 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-30 + Details
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