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Stock-Based Compensation (Table) | 12 Months Ended
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Dec. 31, 2018
Share-based Compensation [Abstract] |
Stock-based compensation, fair value assumptions | U.S. Cellular did not grant stock option awards in 2018 or 2017. U.S. Cellular estimated the fair value of stock options granted during 2016 using the Black-Scholes valuation model and the assumptions shown in the table below.
| 2016
Expected life | 4.7 years |
Expected annual volatility rate | 30.5 | %
Dividend yield | — | %
Risk-free interest rate | 1.2 | %
Estimated annual forfeiture rate | 9.4 | %
Summary of stock options | A summary of U.S. Cellular stock options outstanding (total and portion exercisable) and changes during 2018 is presented in the table below:
Common Share Options | Number of Options |  | Weighted Average Exercise Price |  | Aggregate Intrinsic Value (in millions) |  | Weighted Average Remaining Contractual Life (in years)
Outstanding at December 31, 2017 | 3,495,000 |  |  | $ | 41.10 |  |  |  |  |
(2,475,000 exercisable) |  |  | $ | 40.79 |  |  |  |  |
Exercised | (2,318,000 | ) |  | $ | 39.45 |  |  |  |  |
Forfeited | (19,000 | ) |  | $ | 43.12 |  |  |  |  |
Expired | (352,000 | ) |  | $ | 47.29 |  |  |  |  |
Outstanding at December 31, 2018 | 806,000 |  |  | $ | 43.10 |  |  | $ | 7 |  |  | 6.0
(420,000 exercisable) |  |  | $ | 42.39 |  |  | $ | 4 |  |  | 5.7
Summary of nonvested restricted stock units | A summary of U.S. Cellular nonvested restricted stock units at December 31, 2018, and changes during the year then ended is presented in the table below:
Common Restricted Stock Units | Number |  | Weighted Average Grant Date Fair Value
Nonvested at December 31, 2017 | 1,483,000 |  |  | $ | 39.67 |
Granted | 559,000 |  |  | $ | 38.19 |
Vested | (395,000 | ) |  | $ | 37.30 |
Forfeited | (78,000 | ) |  | $ | 39.78 |
Nonvested at December 31, 2018 | 1,569,000 |  |  | $ | 39.74 |
Summary of nonvested performance share awards | A summary of U.S. Cellular’s nonvested performance shares and changes during 2018 is presented in the table below:
Common Performance Shares | Number |  | Weighted Average Grant Date Fair Value
Nonvested at December 31, 2017 | 342,000 |  |  | $ | 36.92 |
Granted | 357,000 |  |  | $ | 38.81 |
Change in units based on approved performance factors | 111,000 |  |  | $ | 36.92 |
Forfeited | (42,000 | ) |  | $ | 37.37 |
Nonvested at December 31, 2018 | 768,000 |  |  | $ | 37.78 |
Stock-based compensation | The following table summarizes stock‑based compensation expense recognized during 2018, 2017 and 2016:
Year Ended December 31, | 2018 |  | 2017 |  | 2016
(Dollars in millions) |  |  |  |  |
Stock option awards | $ | 2 |  |  | $ | 6 |  |  | $ | 11 |
Restricted stock unit awards | 21 |  |  | 19 |  |  | 14 |
Performance share awards | 13 |  |  | 4 |  |  | — |
Awards under Non-Employee Director compensation plan | 1 |  |  | 1 |  |  | 1 |
Total stock-based compensation expense, before income taxes | 37 |  |  | 30 |  |  | 26 |
Income tax benefit | (9 | ) |  | (11 | ) |  | (10 | )
Total stock-based compensation expense, net of income taxes | $ | 28 |  |  | $ | 19 |  |  | $ | 16 |
Stock-based compensation, allocation by financial statement line item | The following table provides a summary of the classification of stock-based compensation expense included in the Consolidated Statement of Operations for the years ended:
December 31, | 2018 |  | 2017 |  | 2016
(Dollars in millions) |  |  |  |  |
Selling, general and administrative expense | $ | 33 |  |  | $ | 27 |  |  | $ | 23 |
System operations expense | 4 |  |  | 3 |  |  | 3 |
Total stock-based compensation expense | $ | 37 |  |  | $ | 30 |  |  | $ | 26 |

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- Definition Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(1) -URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5070-113901 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14.F) -URI http://asc.fasb.org/extlink&oid=115993241&loc=d3e301413-122809 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5047-113901 + Details
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- Definition Tabular disclosure for stock option plans. Includes, but is not limited to, outstanding awards at beginning and end of year, grants, exercises, forfeitures, and weighted-average grant date fair value. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5070-113901 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5070-113901 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1) -URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5070-113901 + Details
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- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2) -URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5070-113901 + Details
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