XML 48 R28.htm IDEA: XBRL DOCUMENT v3.24.2.u1

Business Segment Information (Tables)

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Business Segment Information

Financial data for UScellular’s 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.

Three Months Ended or as of June 30, 2024			Wireless						Towers						Intra-company eliminations						UScellular Total
(Dollars in millions)
Operating revenues
Service			$	718					$	58					$	(33)					$	743
Equipment and product sales			184						—						—						184
Total operating revenues			902						58						(33)						927
System operations (excluding Depreciation, amortization and accretion reported below)			194						19						(33)						180
Cost of equipment and products			211						—						—						211
Selling, general and administrative			313						9						—						322
Depreciation, amortization and accretion			154						11						—						165
(Gain) loss on asset disposals, net			5						—						—						5
(Gain) loss on license sales and exchanges, net			8						—						—						8
Operating income			17						19						—						36
Equity in earnings of unconsolidated entities1																					38
Interest and dividend income1																					3
Interest expense1																					(45)
Income before income taxes																					32
Income tax expense (benefit)1																					14
Net income																					18
Add back:
Depreciation, amortization and accretion			154						11						—						165
Expenses related to strategic alternatives review			12						1						—						13
(Gain) loss on asset disposals, net			5						—						—						5
(Gain) loss on license sales and exchanges, net			8						—						—						8
Interest expense1																					45
Income tax expense (benefit)1																					14
Adjusted EBITDA2			$	196					$	31					$	—					$	268
Investments in unconsolidated entities1																					$	461
Total assets3																					$	10,639
Capital expenditures			$	160					$	5					$	—					$	165

Three Months Ended or as of June 30, 2023			Wireless						Towers						Intra-company eliminations						UScellular Total
(Dollars in millions)
Operating revenues
Service			$	735					$	57					$	(32)					$	760
Equipment and product sales			197						—						—						197
Total operating revenues			932						57						(32)						957
System operations (excluding Depreciation, amortization and accretion reported below)			203						19						(32)						190
Cost of equipment and products			228						—						—						228
Selling, general and administrative			333						8						—						341
Depreciation, amortization and accretion			149						12						—						161
(Gain) loss on asset disposals, net			3						—						—						3
Operating income			16						18						—						34
Equity in earnings of unconsolidated entities1																					38
Interest and dividend income1																					3
Interest expense1																					(51)
Income before income taxes																					24
Income tax expense1																					19
Net income																					5
Add back:
Depreciation, amortization and accretion			149						12						—						161
(Gain) loss on asset disposals, net			3						—						—						3
Interest expense1																					51
Income tax expense1																					19
Adjusted EBITDA2			$	168					$	30					$	—					$	239
Investments in unconsolidated entities1																					$	457
Total assets3																					$	10,889
Capital expenditures			$	140					$	3					$	—					$	143

Six Months Ended or as of June 30, 2024			Wireless						Towers						Intra-company eliminations						UScellular Total
(Dollars in millions)
Operating revenues
Service			$	1,446					$	116					$	(65)					$	1,497
Equipment and product sales			380						—						—						380
Total operating revenues			1,826						116						(65)						1,877
System operations (excluding Depreciation, amortization and accretion reported below)			390						37						(65)						362
Cost of equipment and products			427						—						—						427
Selling, general and administrative			637						16						—						653
Depreciation, amortization and accretion			308						21						—						329
(Gain) loss on asset disposals, net			10						1						—						11
(Gain) loss on license sales and exchanges, net			7						—						—						7
Operating income			47						41						—						88
Equity in earnings of unconsolidated entities1																					80
Interest and dividend income1																					6
Interest expense1																					(91)
Income before income taxes																					83
Income tax expense (benefit)1																					41
Net income																					42
Add back:
Depreciation, amortization and accretion			308						21						—						329
Expenses related to strategic alternatives review			20						1						—						21
(Gain) loss on asset disposals, net			10						1						—						11
(Gain) loss on license sales and exchanges, net			7						—						—						7
Interest expense1																					91
Income tax expense (benefit)1																					41
Adjusted EBITDA2			$	392					$	64					$	—					$	542
Capital expenditures			$	286					$	9					$	—					$	295

Six Months Ended or as of June 30, 2023			Wireless						Towers						Intra-company eliminations						UScellular Total
(Dollars in millions)
Operating revenues
Service			$	1,477					$	113					$	(63)					$	1,527
Equipment and product sales			415						—						—						415
Total operating revenues			1,892						113						(63)						1,942
System operations (excluding Depreciation, amortization and accretion reported below)			398						37						(63)						372
Cost of equipment and products			480						—						—						480
Selling, general and administrative			670						16						—						686
Depreciation, amortization and accretion			307						23						—						330
(Gain) loss on asset disposals, net			13						—						—						13
Operating income			24						37						—						61
Equity in earnings of unconsolidated entities1																					82
Interest and dividend income1																					5
Interest expense1																					(99)
Income before income taxes																					49
Income tax expense1																					29
Net income																					20
Add back:
Depreciation, amortization and accretion			307						23						—						330
(Gain) loss on asset disposals, net			13						—						—						13
Interest expense1																					99
Income tax expense1																					29
Adjusted EBITDA2			$	344					$	60					$	—					$	491
Capital expenditures			$	346					$	5					$	—					$	351

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. UScellular believes Adjusted EBITDA is a useful measure of UScellular’s operating results before significant recurring non-cash charges, gains and losses, and other items as presented above as it provides additional relevant and useful information to investors and other users of UScellular’s 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 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

+ Details

Name:	us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_SegmentReportingAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration