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Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2023	UScellular		TDS Telecom		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service	$	687	$	—	$	—	$	687
Inbound roaming	8		—		—		8
Residential	—		177		—		177
Commercial	—		38		—		38
Wholesale	—		41		—		41
Other service	42		—		19		61
Service revenues from contracts with customers	737		255		19		1,012
Equipment and product sales	201		—		34		235
Total revenues from contracts with customers	938		256		53		1,247
Operating lease income	25		1		5		31
Total operating revenues	$	963	$	256	$	59	$	1,278


Three Months Ended September 30, 2022	UScellular		TDS Telecom		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service	$	696	$	—	$	—	$	696
Inbound roaming	17		—		—		17
Residential	—		170		—		170
Commercial	—		43		—		43
Wholesale	—		42		—		42
Other service	45		—		18		63
Service revenues from contracts with customers	758		255		18		1,031
Equipment and product sales	302		—		29		331
Total revenues from contracts with customers	1,060		255		47		1,362
Operating lease income	23		1		6		30
Total operating revenues	$	1,083	$	256	$	53	$	1,392



Nine Months Ended September 30, 2023	UScellular		TDS Telecom		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service	$	2,065	$	—	$	—	$	2,065
Inbound roaming	25		—		—		25
Residential	—		521		—		521
Commercial	—		118		—		118
Wholesale	—		125		—		125
Other service	124		—		55		179
Service revenues from contracts with customers	2,214		763		55		3,033
Equipment and product sales	617		1		102		720
Total revenues from contracts with customers	2,831		764		157		3,753
Operating lease income	75		3		17		95
Total operating revenues	$	2,906	$	767	$	175	$	3,848



Nine Months Ended September 30, 2022	UScellular		TDS Telecom		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service	$	2,098	$	—	$	—	$	2,098
Inbound roaming	56		—		—		56
Residential	—		500		—		500
Commercial	—		130		—		130
Wholesale	—		129		—		129
Other service	129		—		54		183
Service revenues from contracts with customers	2,283		760		54		3,096
Equipment and product sales	769		1		100		870
Total revenues from contracts with customers	3,052		761		154		3,966
Operating lease income	68		3		19		90
Total operating revenues	$	3,120	$	763	$	173	$	4,056

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.


	September 30, 2023		December 31, 2022
(Dollars in millions)
Contract assets	$	14	$	12
Contract liabilities	$	373	$	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 September 30, 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	$	192
2024	221
Thereafter	190
Total	$	603

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:


	September 30, 2023		December 31, 2022
(Dollars in millions)
Costs to obtain contracts
Sales commissions	$	140	$	144
Fulfillment costs
Installation costs	6		8

Total contract cost assets	$	146	$	152