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Revenue Recognition (Tables) | 6 Months Ended
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Jun. 30, 2018
Revenue from Contract with Customer [Abstract] |
Schedule of new accounting pronouncements and changes in accounting principles | The line items impacted by the adoption of ASU 2014-09 and ASU 2017-05 on the Consolidated Statement of Operations and the Consolidated Balance Sheet are presented below. Consolidated Statement of Operations
| Results under prior accounting standards |  |  |  |  |  |
|  | Adjustment |  | As reported
Three Months Ended June 30, 2018 |  |
(Dollars and shares in millions, except per share amounts) |  |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |  |
Service | $ | 770 |  | $ | (29) |  | $ | 741
Equipment sales |  | 212 |  |  | 21 |  |  | 233
Total operating revenues |  | 982 |  |  | (8) |  |  | 974
Cost of equipment sold |  | 242 |  |  | (2) |  |  | 240
Selling, general and administrative |  | 339 |  |  | 3 |  |  | 342
(Gain) loss on license sales and exchanges, net |  | (11) |  |  | – |  |  | (11)
Total operating expenses |  | 916 |  |  | 2 |  |  | 918
Operating income (loss) |  | 65 |  |  | (9) |  |  | 56
Income (loss) before income taxes |  | 79 |  |  | (9) |  |  | 70
Income tax expense (benefit) |  | 20 |  |  | (2) |  |  | 18
Net income (loss) |  | 59 |  |  | (7) |  |  | 52
Net income (loss) attributable to U.S. Cellular shareholders |  | 56 |  |  | (7) |  |  | 49
Basic earnings (loss) per share attributable to |  |  |  |  |  |  |  |
U.S. Cellular shareholders | $ | 0.65 |  | $ | (0.08) |  | $ | 0.57
Diluted earnings (loss) per share attributable to |  |  |  |  |  |  |  |
U.S. Cellular shareholders | $ | 0.64 |  | $ | (0.08) |  | $ | 0.56
Numbers may not foot due to rounding. |  |  |  |  |  |  |  |
| Results under prior accounting standards |  | Adjustment |  | As reported
Six Months Ended June 30, 2018 |  |
(Dollars and shares in millions, except per share amounts) |  |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |  |
Service | $ | 1,524 |  | $ | (59) |  | $ | 1,465
Equipment sales |  | 409 |  |  | 41 |  |  | 450
Total operating revenues |  | 1,932 |  |  | (17) |  |  | 1,915
Cost of equipment sold |  | 464 |  |  | (5) |  |  | 459
Selling, general and administrative |  | 665 |  |  | 3 |  |  | 668
(Gain) loss on license sales and exchanges, net |  | (16) |  |  | (1) |  |  | (17)
Total operating expenses |  | 1,797 |  |  | (3) |  |  | 1,794
Operating income (loss) |  | 135 |  |  | (14) |  |  | 121
Income (loss) before income taxes |  | 161 |  |  | (14) |  |  | 147
Income tax expense (benefit) |  | 44 |  |  | (4) |  |  | 40
Net income (loss) |  | 118 |  |  | (11) |  |  | 107
Net income (loss) attributable to U.S. Cellular shareholders |  | 104 |  |  | (11) |  |  | 93
Basic earnings (loss) per share attributable to |  |  |  |  |  |  |  |
U.S. Cellular shareholders | $ | 1.22 |  | $ | (0.13) |  | $ | 1.09
Diluted earnings (loss) per share attributable to |  |  |  |  |  |  |  |
U.S. Cellular shareholders | $ | 1.20 |  | $ | (0.12) |  | $ | 1.08
Numbers may not foot due to rounding. |  |  |  |  |  |  |  |
Consolidated Balance Sheet
| Results under prior accounting standards |  |  |  |  |  |
|  | Adjustment |  | As reported
As of June 30, 2018 |  |
(Dollars in millions) |  |  |  |  |  |  |  |
Accounts receivable |  |  |  |  |  |  |  |
Customers and agents, less allowances | $ | 753 |  | $ | 56 |  | $ | 809
Roaming |  | 37 |  |  | (12) |  |  | 25
Prepaid expenses |  | 82 |  |  | (19) |  |  | 63
Other current assets |  | 18 |  |  | 16 |  |  | 34
Total current assets |  | 1,669 |  |  | 40 |  |  | 1,709
Licenses |  | 2,230 |  |  | 1 |  |  | 2,231
Investments in unconsolidated entities |  | 424 |  |  | 15 |  |  | 439
Other assets and deferred charges |  | 384 |  |  | 152 |  |  | 536
Total assets |  | 6,866 |  |  | 209 |  |  | 7,075
Customer deposits and deferred revenues |  | 146 |  |  | (19) |  |  | 127
Accrued taxes |  | 60 |  |  | (2) |  |  | 58
Other current liabilities |  | 78 |  |  | 4 |  |  | 82
Total current liabilities |  | 607 |  |  | (17) |  |  | 590
Deferred income tax liability, net |  | 471 |  |  | 51 |  |  | 522
Other deferred liabilities and credits |  | 356 |  |  | 11 |  |  | 367
Retained earnings |  | 2,239 |  |  | 163 |  |  | 2,402
Total U.S. Cellular shareholders' equity |  | 3,797 |  |  | 163 |  |  | 3,960
Noncontrolling interests |  | 10 |  |  | 1 |  |  | 11
Total equity |  | 3,807 |  |  | 164 |  |  | 3,971
Total liabilities and equity | $ | 6,866 |  | $ | 209 |  | $ | 7,075
Numbers may not foot due to rounding. |  |  |  |  |  |  |  |
Disaggregation of revenue | In the following table, revenue is disaggregated by type of service and timing of revenue recognition. Service revenues are recognized over time and Equipment sales are point in time.
|  | Three Months Ended |  | Six Months Ended
| June 30, 2018 |  | June 30, 2018
(Dollars in millions) |  |  |  |  |
Revenues from contracts with customers: |  |  |  |  |
Retail service | $ | 652 |  | $ | 1,301
Inbound roaming |  | 39 |  |  | 66
Other service |  | 33 |  |  | 65
Service revenues from contracts with customers |  | 724 |  |  | 1,432
Equipment sales |  | 233 |  |  | 450
Total revenues from contracts with customers 1 | $ | 957 |  | $ | 1,882
1 | These amounts do not include revenues outside the scope of ASU 2014-09; therefore, revenue line items in this table will not agree to amounts presented in the Consolidated Statement of Operations.
Contract with customer, Assets and Liabilities | The accounts receivable balance related to amounts billed and not paid on contracts with customers, net of allowances, is shown in the table below. Bad debts expense recognized for the three and six months ended June 30, 2018, related to receivables was $22 million and $40 million, respectively.
| June 30, 2018
(Dollars in millions) |  |
Accounts receivable |  |
Customer and agents | $ | 809
Roaming |  | 25
Other |  | 32
Total 1 | $ | 866
1 | These amounts do not include accounts receivable related to revenues outside the scope of ASU 2014-09; therefore, accounts receivable line items presented in this table will not agree to amounts presented in the Consolidated Balance Sheet.
The following table provides a rollforward of contract assets from contracts with customers, which are recorded in Other current assets and Other assets and deferred charges in the Consolidated Balance Sheet.
| Contract Assets
(Dollars in millions) |  |
Balance at December 31, 2017 | $ | –
Change in accounting policy |  | 26
Contract additions |  | 14
Terminated contracts |  | (1)
Revenue recognized |  | (14)
Balance at June 30, 2018 | $ | 25
The following table provides a rollforward of 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.
| Contract Liabilities
(Dollars in millions) |  |
Balance at December 31, 2017 | $ | –
Change in accounting policy - Deferred revenues reclassification 1 |  | 167
Change in accounting policy - Retained earnings impact |  | (21)
Contract additions |  | 53
Revenue recognized |  | (74)
Balance at June 30, 2018 | $ | 125
1 | This amount represents U.S. Cellular's obligation to transfer goods or services to customers for which it had received payment and classified as deferred revenue at December 31, 2017.
Remaining performance obligation | The following table includes estimated service revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. The estimates represent service revenue to be recognized when wireless services are delivered to customers pursuant to service plan contracts. These estimates are based on contracts in place as of June 30, 2018, and may vary from actual results due to future contract modifications. As a practical expedient, revenue related to contracts of less than one year, generally contracts with month-to-month customers, are excluded from these estimates.
|  |  | Service Revenue
(Dollars in millions) |  |
Remainder of 2018 | $ | 179
2019 |  | 97
Thereafter |  | 9
| Total | $ | 285

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