v3.23.2
Revenue Recognition
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Note 2 Revenue Recognition
Disaggregation of Revenue
In the following table, TDS' revenues are disaggregated by type of service, which represents the relevant categorization of revenues for TDS' reportable segments, and timing of recognition. Service revenues are recognized over time and Equipment and product sales are recognized at a point in time.
Three Months Ended June 30, 2023UScellularTDS TelecomCorporate, Eliminations and OtherTotal
(Dollars in millions)    
Revenues from contracts with customers:    
Type of service:    
Retail service$686 $— $— $686 
Inbound roaming8 — — 8 
Residential— 175 — 175 
Commercial— 39 — 39 
Wholesale— 42 — 42 
Other service41 — 18 59 
Service revenues from contracts with customers735 256 18 1,009 
Equipment and product sales197 — 29 226 
Total revenues from contracts with customers932 256 47 1,235 
Operating lease income25 1 6 32 
Total operating revenues$957 $257 $53 $1,267 

Three Months Ended June 30, 2022UScellularTDS TelecomCorporate, Eliminations and OtherTotal
(Dollars in millions)    
Revenues from contracts with customers:    
Type of service:    
Retail service$700 $— $— $700 
Inbound roaming18 — — 18 
Residential— 168 — 168 
Commercial— 44 — 44 
Wholesale— 44 — 44 
Other service42 — 19 61 
Service revenues from contracts with customers760 255 19 1,035 
Equipment and product sales244 — 41 285 
Total revenues from contracts with customers1,004 255 60 1,320 
Operating lease income23 1 6 29 
Total operating revenues$1,027 $256 $66 $1,349 
Six Months Ended June 30, 2023UScellularTDS TelecomCorporate, Eliminations and OtherTotal
(Dollars in millions)    
Revenues from contracts with customers:    
Type of service:    
Retail service$1,378 $— $— $1,378 
Inbound roaming17 — — 17 
Residential— 344 — 344 
Commercial— 80 — 80 
Wholesale— 84 — 84 
Other service82 — 37 119 
Service revenues from contracts with customers1,477 508 37 2,022 
Equipment and product sales415 — 71 486 
Total revenues from contracts with customers1,892 508 108 2,508 
Operating lease income50 2 10 62 
Total operating revenues$1,942 $510 $118 $2,570 
 
Six Months Ended June 30, 2022UScellularTDS TelecomCorporate, Eliminations and OtherTotal
(Dollars in millions)    
Revenues from contracts with customers:    
Type of service:    
Retail service
$1,402 $— $— $1,402 
Inbound roaming39 — — 39 
Residential— 330 — 330 
Commercial— 87 — 87 
Wholesale— 87 — 87 
Other service
84 — 36 120 
Service revenues from contracts with customers1,525 505 36 2,065 
Equipment and product sales467 1 71 539 
Total revenues from contracts with customers1,992 506 107 2,604 
Operating lease income45 2 13 60 
Total operating revenues$2,037 $507 $120 $2,664 
Numbers may not foot due to rounding.
Contract Balances
The following table provides balances for contract assets from contracts with customers, which are recorded in Other current assets and Other assets and deferred charges in the Consolidated Balance Sheet, and 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.
 June 30, 2023December 31, 2022
(Dollars in millions) 
Contract assets$13 $12 
Contract liabilities$389 $395 
Revenue recognized related to contract liabilities existing at January 1, 2023 was $191 million for the six months ended June 30, 2023.
Transaction price allocated to the remaining performance obligations
The following table includes estimated service revenues expected to be recognized related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. These estimates represent service revenues to be recognized when services are delivered to customers pursuant to service plan contracts and under certain roaming agreements with other carriers. These estimates are based on contracts in place as of June 30, 2023 and may vary from actual results. As practical expedients, revenue related to contracts of less than one year, generally month-to-month contracts, and contracts with a fixed per-unit price and variable quantity, are excluded from these estimates.
 Service Revenues
(Dollars in millions) 
Remainder of 2023$273 
2024207 
Thereafter161 
Total
$641 
Contract Cost Assets
TDS expects that commission fees paid as a result of obtaining contracts are recoverable and therefore TDS defers and amortizes these costs. As a practical expedient, costs with an amortization period of one year or less are expensed as incurred. TDS also incurs fulfillment costs, such as installation costs, where there is an expectation that a future benefit will be realized. Deferred commission fees and fulfillment costs are amortized based on the timing of transfer of the goods or services to which the assets relate, typically the contract term. Contract cost asset balances, which are recorded in Other assets and deferred charges in the Consolidated Balance Sheet, were as follows:
 June 30, 2023December 31, 2022
(Dollars in millions) 
Costs to obtain contracts 
Sales commissions$141 $144 
Fulfillment costs
Installation costs6 8 
Total contract cost assets$147 $152 
Amortization of contract cost assets was $27 million and $55 million for the three and six months ended June 30, 2023, respectively, and $28 million and $57 million for the three and six months ended June 30, 2022, respectively, and was included in Selling, general and administrative expenses and Cost of services expenses.