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Business Segment Information (Tables) | 6 Months Ended
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Jun. 30, 2024
Segment Reporting [Abstract] |
Business segment information | Financial data for TDS’ reportable segments for the three and six month periods ended, or as of June 30, 2024 and 2023, is as follows. See Note 1 — Basis of Presentation for additional information.
| UScellular |  |  |  |  |  |
Three Months Ended or as of June 30, 2024 | Wireless |  | Towers |  | Intra-company eliminations |  | UScellular Total |  | TDS Telecom |  | Corporate, Eliminations and Other |  | Total
(Dollars in millions) |  |  |  |  |  |  |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Service | $ | 718 |  |  | $ | 58 |  |  | $ | (33) |  |  | $ | 743 |  |  | $ | 267 |  |  | $ | 24 |  |  | $ | 1,034 |
Equipment and product sales | 184 |  |  | — |  |  | — |  |  | 184 |  |  | — |  |  | 20 |  |  | 204 |
Total operating revenues | 902 |  |  | 58 |  |  | (33) |  |  | 927 |  |  | 267 |  |  | 44 |  |  | 1,238 |
Cost of services (excluding Depreciation, amortization and accretion reported below) | 194 |  |  | 19 |  |  | (33) |  |  | 180 |  |  | 98 |  |  | 18 |  |  | 296 |
Cost of equipment and products | 211 |  |  | — |  |  | — |  |  | 211 |  |  | — |  |  | 16 |  |  | 227 |
Selling, general and administrative | 313 |  |  | 9 |  |  | — |  |  | 322 |  |  | 80 |  |  | 24 |  |  | 426 |
Depreciation, amortization and accretion | 154 |  |  | 11 |  |  | — |  |  | 165 |  |  | 67 |  |  | 1 |  |  | 233 |
(Gain) loss on asset disposals, net | 5 |  |  | — |  |  | — |  |  | 5 |  |  | 4 |  |  | — |  |  | 9 |
(Gain) loss on license sales and exchanges, net | 8 |  |  | — |  |  | — |  |  | 8 |  |  | — |  |  | — |  |  | 8 |
Operating income (loss) | 17 |  |  | 19 |  |  | — |  |  | 36 |  |  | 19 |  |  | (16) |  |  | 39 |
Equity in earnings of unconsolidated entities 1 |  |  |  |  |  |  | 38 |  |  | — |  |  | 1 |  |  | 39 |
Interest and dividend income 1 |  |  |  |  |  |  | 3 |  |  | 1 |  |  | 3 |  |  | 7 |
Interest expense 1 |  |  |  |  |  |  | (45) |  |  | — |  |  | (28) |  |  | (73) |
Other, net 1 |  |  |  |  |  |  | — |  |  | 1 |  |  | — |  |  | 1 |
Income (loss) before income taxes |  |  |  |  |  |  | 32 |  |  | 21 |  |  | (40) |  |  | 13 |
Income tax expense (benefit)1 |  |  |  |  |  |  | 14 |  |  | 3 |  |  | (11) |  |  | 6 |
Net income (loss) |  |  |  |  |  |  | 18 |  |  | 18 |  |  | (29) |  |  | 7 |
Add back: |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, amortization and accretion | 154 |  |  | 11 |  |  | — |  |  | 165 |  |  | 67 |  |  | 1 |  |  | 233 |
Expenses related to strategic alternatives review | 12 |  |  | 1 |  |  | — |  |  | 13 |  |  | — |  |  | 8 |  |  | 21 |
(Gain) loss on asset disposals, net | 5 |  |  | — |  |  | — |  |  | 5 |  |  | 4 |  |  | — |  |  | 9 |
(Gain) loss on license sales and exchanges, net | 8 |  |  | — |  |  | — |  |  | 8 |  |  | — |  |  | — |  |  | 8 |
Interest expense 1 |  |  |  |  |  |  | 45 |  |  | — |  |  | 28 |  |  | 73 |
Income tax expense (benefit)1 |  |  |  |  |  |  | 14 |  |  | 3 |  |  | (11) |  |  | 6 |
Adjusted EBITDA 2 | $ | 196 |  |  | $ | 31 |  |  | $ | — |  |  | $ | 268 |  |  | $ | 91 |  |  | $ | (2) |  |  | $ | 357 |
Investments in unconsolidated entities 1 |  |  |  |  |  |  | $ | 461 |  |  | $ | 4 |  |  | $ | 42 |  |  | $ | 507 |
Total assets 3 |  |  |  |  |  |  | $ | 10,639 |  |  | $ | 2,898 |  |  | $ | 335 |  |  | $ | 13,872 |
Capital expenditures | $ | 160 |  |  | $ | 5 |  |  | $ | — |  |  | $ | 165 |  |  | $ | 78 |  |  | $ | 1 |  |  | $ | 244 |
| UScellular |  |  |  |  |  |
Three Months Ended or as of June 30, 2023 | Wireless |  | Towers |  | Intra-company eliminations |  | UScellular Total |  | TDS Telecom |  | Corporate, Eliminations and Other |  | Total
(Dollars in millions) |  |  |  |  |  |  |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Service | $ | 735 |  |  | $ | 57 |  |  | $ | (32) |  |  | $ | 760 |  |  | $ | 257 |  |  | $ | 24 |  |  | $ | 1,041 |
Equipment and product sales | 197 |  |  | — |  |  | — |  |  | 197 |  |  | — |  |  | 29 |  |  | 226 |
Total operating revenues | 932 |  |  | 57 |  |  | (32) |  |  | 957 |  |  | 257 |  |  | 53 |  |  | 1,267 |
Cost of services (excluding Depreciation, amortization and accretion reported below) | 203 |  |  | 19 |  |  | (32) |  |  | 190 |  |  | 108 |  |  | 18 |  |  | 316 |
Cost of equipment and products | 228 |  |  | — |  |  | — |  |  | 228 |  |  | — |  |  | 24 |  |  | 252 |
Selling, general and administrative | 333 |  |  | 8 |  |  | — |  |  | 341 |  |  | 81 |  |  | 14 |  |  | 436 |
Depreciation, amortization and accretion | 149 |  |  | 12 |  |  | — |  |  | 161 |  |  | 60 |  |  | 4 |  |  | 225 |
(Gain) loss on asset disposals, net | 3 |  |  | — |  |  | — |  |  | 3 |  |  | 2 |  |  | — |  |  | 5 |
Operating income (loss) | 16 |  |  | 18 |  |  | — |  |  | 34 |  |  | 7 |  |  | (8) |  |  | 33 |
Equity in earnings of unconsolidated entities 1 |  |  |  |  |  |  | 38 |  |  | — |  |  | — |  |  | 38 |
Interest and dividend income 1 |  |  |  |  |  |  | 3 |  |  | 1 |  |  | 2 |  |  | 6 |
Interest expense 1 |  |  |  |  |  |  | (51) |  |  | 2 |  |  | (13) |  |  | (62) |
Income (loss) before income taxes |  |  |  |  |  |  | 24 |  |  | 10 |  |  | (19) |  |  | 15 |
Income tax expense (benefit)1 |  |  |  |  |  |  | 19 |  |  | 3 |  |  | (7) |  |  | 15 |
Net income (loss) |  |  |  |  |  |  | 5 |  |  | 7 |  |  | (12) |  |  | — |
Add back: |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, amortization and accretion | 149 |  |  | 12 |  |  | — |  |  | 161 |  |  | 60 |  |  | 4 |  |  | 225 |
(Gain) loss on asset disposals, net | 3 |  |  | — |  |  | — |  |  | 3 |  |  | 2 |  |  | — |  |  | 5 |
Interest expense 1 |  |  |  |  |  |  | 51 |  |  | (2) |  |  | 13 |  |  | 62 |
Income tax expense 1 |  |  |  |  |  |  | 19 |  |  | 3 |  |  | (7) |  |  | 15 |
Adjusted EBITDA 2 | $ | 168 |  |  | $ | 30 |  |  | $ | — |  |  | $ | 239 |  |  | $ | 70 |  |  | $ | (2) |  |  | $ | 307 |
Investments in unconsolidated entities 1 |  |  |  |  |  |  | $ | 457 |  |  | $ | 4 |  |  | $ | 39 |  |  | $ | 500 |
Total assets 3 |  |  |  |  |  |  | $ | 10,889 |  |  | $ | 3,219 |  |  | $ | 298 |  |  | $ | 14,406 |
Capital expenditures | $ | 140 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 143 |  |  | $ | 132 |  |  | $ | 3 |  |  | $ | 278 |
| UScellular |  |  |  |  |  |
Six Months Ended or as of June 30, 2024 | Wireless |  | Towers |  | Intra-company eliminations |  | UScellular Total |  | TDS Telecom |  | Corporate, Eliminations and Other |  | Total
(Dollars in millions) |  |  |  |  |  |  |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Service | $ | 1,446 |  |  | $ | 116 |  |  | $ | (65) |  |  | $ | 1,497 |  |  | $ | 534 |  |  | $ | 47 |  |  | $ | 2,078 |
Equipment and product sales | 380 |  |  | — |  |  | — |  |  | 380 |  |  | — |  |  | 42 |  |  | 422 |
Total operating revenues | 1,826 |  |  | 116 |  |  | (65) |  |  | 1,877 |  |  | 534 |  |  | 89 |  |  | 2,500 |
Cost of services (excluding Depreciation, amortization and accretion reported below) | 390 |  |  | 37 |  |  | (65) |  |  | 362 |  |  | 196 |  |  | 37 |  |  | 595 |
Cost of equipment and products | 427 |  |  | — |  |  | — |  |  | 427 |  |  | — |  |  | 33 |  |  | 460 |
Selling, general and administrative | 637 |  |  | 16 |  |  | — |  |  | 653 |  |  | 155 |  |  | 41 |  |  | 849 |
Depreciation, amortization and accretion | 308 |  |  | 21 |  |  | — |  |  | 329 |  |  | 131 |  |  | 7 |  |  | 467 |
(Gain) loss on asset disposals, net | 10 |  |  | 1 |  |  | — |  |  | 11 |  |  | 6 |  |  | (1) |  |  | 16 |
(Gain) loss on license sales and exchanges, net | 7 |  |  | — |  |  | — |  |  | 7 |  |  | — |  |  | — |  |  | 7 |
Operating income (loss) | 47 |  |  | 41 |  |  | — |  |  | 88 |  |  | 46 |  |  | (28) |  |  | 106 |
Equity in earnings of unconsolidated entities 1 |  |  |  |  |  |  | 80 |  |  | — |  |  | 2 |  |  | 82 |
Interest and dividend income 1 |  |  |  |  |  |  | 6 |  |  | 2 |  |  | 4 |  |  | 12 |
Interest expense 1 |  |  |  |  |  |  | (91) |  |  | 2 |  |  | (42) |  |  | (131) |
Other, net 1 |  |  |  |  |  |  | — |  |  | 2 |  |  | — |  |  | 2 |
Income (loss) before income taxes |  |  |  |  |  |  | 83 |  |  | 52 |  |  | (64) |  |  | 71 |
Income tax expense (benefit)1 |  |  |  |  |  |  | 41 |  |  | 10 |  |  | (25) |  |  | 26 |
Net income (loss) |  |  |  |  |  |  | 42 |  |  | 42 |  |  | (39) |  |  | 45 |
Add back: |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, amortization and accretion | 308 |  |  | 21 |  |  | — |  |  | 329 |  |  | 131 |  |  | 7 |  |  | 467 |
Expenses related to strategic alternatives review | 20 |  |  | 1 |  |  | — |  |  | 21 |  |  | — |  |  | 12 |  |  | 33 |
(Gain) loss on asset disposals, net | 10 |  |  | 1 |  |  | — |  |  | 11 |  |  | 6 |  |  | (1) |  |  | 16 |
(Gain) loss on license sales and exchanges, net | 7 |  |  | — |  |  | — |  |  | 7 |  |  | — |  |  | — |  |  | 7 |
Interest expense 1 |  |  |  |  |  |  | 91 |  |  | (2) |  |  | 42 |  |  | 131 |
Income tax expense (benefit)1 |  |  |  |  |  |  | 41 |  |  | 10 |  |  | (25) |  |  | 26 |
Adjusted EBITDA 2 | $ | 392 |  |  | $ | 64 |  |  | $ | — |  |  | $ | 542 |  |  | $ | 187 |  |  | $ | (4) |  |  | $ | 725 |
Capital expenditures | $ | 286 |  |  | $ | 9 |  |  | $ | — |  |  | $ | 295 |  |  | $ | 164 |  |  | $ | 5 |  |  | $ | 464 |
| UScellular |  |  |  |  |  |
Six Months Ended or as of June 30, 2023 | Wireless |  | Towers |  | Intra-company eliminations |  | UScellular Total |  | TDS Telecom |  | Corporate, Eliminations and Other |  | Total
(Dollars in millions) |  |  |  |  |  |  |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Service | $ | 1,477 |  |  | $ | 113 |  |  | $ | (63) |  |  | $ | 1,527 |  |  | $ | 510 |  |  | $ | 47 |  |  | $ | 2,084 |
Equipment and product sales | 415 |  |  | — |  |  | — |  |  | 415 |  |  | — |  |  | 71 |  |  | 486 |
Total operating revenues | 1,892 |  |  | 113 |  |  | (63) |  |  | 1,942 |  |  | 510 |  |  | 118 |  |  | 2,570 |
Cost of services (excluding Depreciation, amortization and accretion reported below) | 398 |  |  | 37 |  |  | (63) |  |  | 372 |  |  | 212 |  |  | 38 |  |  | 622 |
Cost of equipment and products | 480 |  |  | — |  |  | — |  |  | 480 |  |  | — |  |  | 58 |  |  | 538 |
Selling, general and administrative | 670 |  |  | 16 |  |  | — |  |  | 686 |  |  | 162 |  |  | 28 |  |  | 876 |
Depreciation, amortization and accretion | 307 |  |  | 23 |  |  | — |  |  | 330 |  |  | 119 |  |  | 7 |  |  | 456 |
(Gain) loss on asset disposals, net | 13 |  |  | — |  |  | — |  |  | 13 |  |  | 3 |  |  | — |  |  | 16 |
Operating income (loss) | 24 |  |  | 37 |  |  | — |  |  | 61 |  |  | 15 |  |  | (14) |  |  | 62 |
Equity in earnings of unconsolidated entities 1 |  |  |  |  |  |  | 82 |  |  | — |  |  | — |  |  | 82 |
Interest and dividend income 1 |  |  |  |  |  |  | 5 |  |  | 2 |  |  | 4 |  |  | 11 |
Interest expense 1 |  |  |  |  |  |  | (99) |  |  | 4 |  |  | (21) |  |  | (116) |
Other, net 1 |  |  |  |  |  |  | — |  |  | 1 |  |  | — |  |  | 1 |
Income (loss) before income taxes |  |  |  |  |  |  | 49 |  |  | 21 |  |  | (30) |  |  | 40 |
Income tax expense (benefit)1 |  |  |  |  |  |  | 29 |  |  | 5 |  |  | (6) |  |  | 28 |
Net income (loss) |  |  |  |  |  |  | 20 |  |  | 15 |  |  | (23) |  |  | 12 |
Add back: |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, amortization and accretion | 307 |  |  | 23 |  |  | — |  |  | 330 |  |  | 119 |  |  | 7 |  |  | 456 |
(Gain) loss on asset disposals, net | 13 |  |  | — |  |  | — |  |  | 13 |  |  | 3 |  |  | — |  |  | 16 |
Interest expense 1 |  |  |  |  |  |  | 99 |  |  | (4) |  |  | 21 |  |  | 116 |
Income tax expense (benefit)1 |  |  |  |  |  |  | 29 |  |  | 5 |  |  | (6) |  |  | 28 |
Adjusted EBITDA 2 | $ | 344 |  |  | $ | 60 |  |  | $ | — |  |  | $ | 491 |  |  | $ | 139 |  |  | $ | (2) |  |  | $ | 628 |
Capital expenditures | $ | 346 |  |  | $ | 5 |  |  | $ | — |  |  | $ | 351 |  |  | $ | 262 |  |  | $ | 8 |  |  | $ | 621 |
Numbers may not foot due to rounding. 1 Income and expense items below Operating income are not provided at the individual segment level for Wireless and Towers. These items are not included in the evaluation of operating performance of the segments, and therefore are reported for "UScellular Total". 2 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. 3 Assets are not provided at the individual segment level for Wireless and Towers. The UScellular segments operate under a common capital structure, and management has historically considered its assets collectively as part of a combined wireless network.

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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 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-25 Reference 2: 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 3: 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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