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Business Segment Information (Tables)

9 Months Ended

Sep. 30, 2024

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, 2024 and 2023, is as follows. See Note 1 — Basis of Presentation for additional information. 

			UScellular
Three Months Ended or as of September 30, 2024			Wireless						Towers						Intra-company eliminations						UScellular Total						TDS Telecom						Corporate, Eliminations and Other						Total
(Dollars in millions)
Operating revenues
Service			$	721					$	59					$	(33)					$	747					$	262					$	18					$	1,027
Equipment and product sales			175						—						—						175						—						22						197
Total operating revenues			896						59						(33)						922						263						39						1,224
Cost of services (excluding Depreciation, amortization and accretion reported below)			193						20						(33)						180						101						14						295
Cost of equipment and products			203						—						—						203						—						18						221
Selling, general and administrative			316						8						—						324						81						17						422
Depreciation, amortization and accretion			155						12						—						167						68						3						238
Loss on impairment of licenses			136						—						—						136						—						—						136
(Gain) loss on asset disposals, net			4						—						—						4						3						(1)						6
(Gain) loss on sale of business and other exit costs, net			—						—						—						—						—						(12)						(12)
(Gain) loss on license sales and exchanges, net			(2)						—						—						(2)						—						—						(2)
Operating income (loss)			(109)						19						—						(90)						10						—						(80)
Equity in earnings of unconsolidated entities1																					43						—						—						43
Interest and dividend income1																					4						1						3						8
Interest expense1																					(49)						1						(28)						(76)
Other, net1																					—						1						—						1
Income (loss) before income taxes																					(92)						14						(26)						(104)
Income tax expense (benefit)1																					(14)						4						(15)						(25)
Net income (loss)																					(78)						9						(10)						(79)
Add back:
Depreciation, amortization and accretion			155						12						—						167						68						3						238
Expenses related to strategic alternatives review			7						—						—						7						—						4						11
Loss on impairment of licenses			136						—						—						136						—						—						136
(Gain) loss on asset disposals, net			4						—						—						4						3						(1)						6
(Gain) loss on sale of business and other exit costs, net			—						—						—						—						—						(12)						(12)
(Gain) loss on license sales and exchanges, net			(2)						—						—						(2)						—						—						(2)
Interest expense1																					49						(1)						28						76
Income tax expense (benefit)1																					(14)						4						(15)						(25)
Adjusted EBITDA2			$	191					$	31					$	—					$	269					$	83					$	(3)					$	349
Investments in unconsolidated entities1																					$	478					$	4					$	42					$	524
Total assets3																					$	10,516					$	2,923					$	287					$	13,726
Capital expenditures			$	114					$	6					$	—					$	120					$	78					$	1					$	199

			UScellular
Three Months Ended or as of September 30, 2023			Wireless						Towers						Intra-company eliminations						UScellular Total						TDS Telecom						Corporate, Eliminations and Other						Total
(Dollars in millions)
Operating revenues
Service			$	737					$	57					$	(32)					$	762					$	256					$	25					$	1,043
Equipment and product sales			201						—						—						201						—						34						235
Total operating revenues			938						57						(32)						963						256						59						1,278
Cost of services (excluding Depreciation, amortization and accretion reported below)			199						18						(32)						185						107						19						311
Cost of equipment and products			228						—						—						228						—						28						256
Selling, general and administrative			324						9						—						333						82						17						432
Depreciation, amortization and accretion			148						11						—						159						61						5						225
(Gain) loss on asset disposals, net			1						—						—						1						6						(1)						6
Operating income (loss)			38						19						—						57						—						(9)						48
Equity in earnings of unconsolidated entities1																					40						—						—						40
Interest and dividend income1																					3						1						1						5
Interest expense1																					(50)						2						(14)						(62)
Income (loss) before income taxes																					50						4						(23)						31
Income tax expense (benefit)1																					27						—						—						27
Net income (loss)																					23						4						(23)						4
Add back:
Depreciation, amortization and accretion			148						11						—						159						61						5						225
Expenses related to strategic alternatives review			3						—						—						3						—						1						4
(Gain) loss on asset disposals, net			1						—						—						1						6						(1)						6
Interest expense1																					50						(2)						14						62
Income tax expense1																					27						—						—						27
Adjusted EBITDA2			$	190					$	30					$	—					$	263					$	68					$	(3)					$	328
Investments in unconsolidated entities1																					$	477					$	4					$	39					$	520
Total assets3																					$	10,749					$	3,315					$	350					$	14,414
Capital expenditures			$	106					$	5					$	—					$	111					$	172					$	2					$	285

			UScellular
Nine Months Ended or as of September 30, 2024			Wireless						Towers						Intra-company eliminations						UScellular Total						TDS Telecom						Corporate, Eliminations and Other						Total
(Dollars in millions)
Operating revenues
Service			$	2,168					$	175					$	(98)					$	2,245					$	796					$	64					$	3,105
Equipment and product sales			554						—						—						554						1						64						619
Total operating revenues			2,722						175						(98)						2,799						797						128						3,724
Cost of services (excluding Depreciation, amortization and accretion reported below)			582						58						(98)						542						297						51						890
Cost of equipment and products			630						—						—						630						1						50						681
Selling, general and administrative			953						24						—						977						236						58						1,271
Depreciation, amortization and accretion			466						33						—						499						199						6						704
Loss on impairment of licenses			136						—						—						136						—						—						136
(Gain) loss on asset disposals, net			13						1						—						14						8						1						23
(Gain) loss on sale of business and other exit costs, net			—						—						—						—						—						(12)						(12)
(Gain) loss on license sales and exchanges, net			4						—						—						4						—						—						4
Operating income (loss)			(62)						59						—						(3)						56						(26)						27
Equity in earnings of unconsolidated entities1																					123						—						2						125
Interest and dividend income1																					9						4						7						20
Interest expense1																					(137)						4						(75)						(208)
Other, net1																					—						3						—						3
Income (loss) before income taxes																					(8)						66						(91)						(33)
Income tax expense (benefit)1																					29						15						(43)						1
Net income (loss)																					(37)						51						(48)						(34)
Add back:
Depreciation, amortization and accretion			466						33						—						499						199						6						704
Expenses related to strategic alternatives review			26						2						—						28						—						15						43
Loss on impairment of licenses			136						—						—						136						—						—						136
(Gain) loss on asset disposals, net			13						1						—						14						8						1						23
(Gain) loss on sale of business and other exit costs, net			—						—						—						—						—						(12)						(12)
(Gain) loss on license sales and exchanges, net			4						—						—						4						—						—						4
Interest expense1																					137						(4)						75						208
Income tax expense (benefit)1																					29						15						(43)						1
Adjusted EBITDA2			$	583					$	95					$	—					$	810					$	269					$	(6)					$	1,073
Capital expenditures			$	400					$	15					$	—					$	415					$	242					$	6					$	663

			UScellular
Nine Months Ended or as of September 30, 2023			Wireless						Towers						Intra-company eliminations						UScellular Total						TDS Telecom						Corporate, Eliminations and Other						Total
(Dollars in millions)
Operating revenues
Service			$	2,214					$	170					$	(95)					$	2,289					$	766					$	73					$	3,128
Equipment and product sales			617						—						—						617						1						102						720
Total operating revenues			2,831						170						(95)						2,906						767						175						3,848
Cost of services (excluding Depreciation, amortization and accretion reported below)			597						55						(95)						557						319						57						933
Cost of equipment and products			708						—						—						708						—						86						794
Selling, general and administrative			995						25						—						1,020						244						44						1,308
Depreciation, amortization and accretion			456						34						—						490						180						11						681
(Gain) loss on asset disposals, net			14						—						—						14						8						—						22
Operating income (loss)			61						56						—						117						15						(22)						110
Equity in earnings of unconsolidated entities1																					121						—						1						122
Interest and dividend income1																					8						3						5						16
Interest expense1																					(147)						6						(37)						(178)
Other, net1																					—						1						—						1
Income (loss) before income taxes																					99						25						(53)						71
Income tax expense (benefit)1																					56						6						(7)						55
Net income (loss)																					43						19						(46)						16
Add back:
Depreciation, amortization and accretion			456						34						—						490						180						11						681
Expenses related to strategic alternatives review			3						—						—						3						—						1						4
(Gain) loss on asset disposals, net			14						—						—						14						8						—						22
Interest expense1																					147						(6)						37						178
Income tax expense (benefit)1																					56						6						(7)						55
Adjusted EBITDA2			$	534					$	90					$	—					$	753					$	207					$	(4)					$	956
Capital expenditures			$	452					$	10					$	—					$	462					$	434					$	10					$	906

Numbers may not foot due to rounding.

1Income 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".

2Adjusted 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.

3Assets 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.

X

- 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

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- References

No definition available.

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