v3.23.2
Business Segment Information
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Business Segment Information
Note 12 Business Segment Information
UScellular and TDS Telecom are billed for services they receive from TDS, consisting primarily of information processing, accounting, finance, and general management services. Such billings are based on expenses specifically identified to UScellular and TDS Telecom and on allocations of common expenses. Management believes the method used to allocate common expenses is reasonable and that all expenses and costs applicable to UScellular and TDS Telecom are reflected in the accompanying business segment information on a basis that is representative of what they would have been if UScellular and TDS Telecom operated on a stand-alone basis.
Financial data for TDS’ reportable segments for the three and six month periods ended, or as of June 30, 2023 and 2022, is as follows. See Note 1 — Basis of Presentation for additional information. 
Three Months Ended or as of June 30, 2023UScellularTDS TelecomCorporate, Eliminations and OtherTotal
(Dollars in millions)    
Operating revenues    
Service$760 $257 $24 $1,041 
Equipment and product sales197 — 29 226 
Total operating revenues957 257 53 1,267 
Cost of services (excluding Depreciation, amortization and accretion reported below)
190 108 18 316 
Cost of equipment and products228 — 24 252 
Selling, general and administrative341 81 14 436 
Depreciation, amortization and accretion161 60 4 225 
(Gain) loss on asset disposals, net3 2 — 5 
Operating income (loss)34 7 (8)33 
Equity in earnings of unconsolidated entities38 — — 38 
Interest and dividend income3 1 2 6 
Interest expense(51)2 (13)(62)
Income (loss) before income taxes24 10 (19)15 
Income tax expense (benefit)19 3 (7)15 
Net income (loss)5 7 (12)— 
Add back:
Depreciation, amortization and accretion161 60 4 225 
(Gain) loss on asset disposals, net3 2 — 5 
Interest expense51 (2)13 62 
Income tax expense (benefit)19 3 (7)15 
Adjusted EBITDA1
$239 $70 $(2)$307 
Investments in unconsolidated entities$457 $4 $39 $500 
Total assets$10,889 $3,219 $298 $14,406 
Capital expenditures$143 $132 $3 $278 
Three Months Ended or as of June 30, 2022UScellularTDS TelecomCorporate, Eliminations and OtherTotal
(Dollars in millions)    
Operating revenues
Service$783 $256 $25 $1,064 
Equipment and product sales244 — 41 285 
Total operating revenues1,027 256 66 1,349 
Cost of services (excluding Depreciation, amortization and accretion reported below)
192 103 17 312 
Cost of equipment and products275 — 33 308 
Selling, general and administrative339 77 11 427 
Depreciation, amortization and accretion172 52 5 229 
Loss on impairment of licenses3 — — 3 
(Gain) loss on asset disposals, net6 1 — 7 
Operating income40 23 — 63 
Equity in earnings of unconsolidated entities37 — 1 38 
Interest and dividend income3 — 2 5 
Interest expense(40)2 (2)(40)
Income before income taxes40 25 1 66 
Income tax expense18 7 2 27 
Net income (loss)22 19 (2)39 
Add back:
Depreciation, amortization and accretion172 52 5 229 
Loss on impairment of licenses3 — — 3 
(Gain) loss on asset disposals, net6 1 — 7 
Interest expense40 (2)2 40 
Income tax expense18 7 2 27 
Adjusted EBITDA1
$261 $76 $8 $345 
Investments in unconsolidated entities$441 $4 $38 $483 
Total assets$11,003 $2,803 $436 $14,242 
Capital expenditures$268 $120 $3 $391 
Six Months Ended or as of June 30, 2023UScellularTDS TelecomCorporate, Eliminations and OtherTotal
(Dollars in millions)    
Operating revenues
Service$1,527 $510 $47 $2,084 
Equipment and product sales415 — 71 486 
Total operating revenues1,942 510 118 2,570 
Cost of services (excluding Depreciation, amortization and accretion reported below)
372 212 38 622 
Cost of equipment and products480 — 58 538 
Selling, general and administrative686 162 28 876 
Depreciation, amortization and accretion330 119 7 456 
(Gain) loss on asset disposals, net13 3 — 16 
Operating income (loss)61 15 (14)62 
Equity in earnings of unconsolidated entities82 — — 82 
Interest and dividend income5 2 4 11 
Interest expense(99)4 (21)(116)
Other, net— 1 — 1 
Income (loss) before income taxes49 21 (30)40 
Income tax expense (benefit)29 5 (6)28 
Net income (loss)20 15 (23)12 
Add back:
Depreciation, amortization and accretion330 119 7 456 
(Gain) loss on asset disposals, net13 3 — 16 
Interest expense99 (4)21 116 
Income tax expense (benefit)29 5 (6)28 
Adjusted EBITDA1
$491 $139 $(2)$628 
Capital expenditures$351 $262 $8 $621 
Six Months Ended or as of June 30, 2022UScellularTDS TelecomCorporate, Eliminations and OtherTotal
(Dollars in millions)    
Operating revenues
Service$1,570 $507 $48 $2,125 
Equipment and product sales467 1 71 539 
Total operating revenues2,037 507 120 2,664 
Cost of services (excluding Depreciation, amortization and accretion reported below)
377 199 35 611 
Cost of equipment and products533 — 57 590 
Selling, general and administrative663 150 24 837 
Depreciation, amortization and accretion342 106 8 456 
Loss on impairment of licenses3 — — 3 
(Gain) loss on asset disposals, net8 1 — 9 
Operating income (loss)111 51 (4)158 
Equity in earnings of unconsolidated entities82 — 1 83 
Interest and dividend income4 — 3 7 
Interest expense(73)4 (3)(72)
Income (loss) before income taxes124 56 (4)176 
Income tax expense (benefit)50 14 1 65 
Net income (loss)74 41 (4)111 
Add back:
Depreciation, amortization and accretion342 106 8 456 
Loss on impairment of licenses3 — — 3 
(Gain) loss on asset disposals, net8 1 — 9 
Interest expense73 (4)3 72 
Income tax expense (benefit)50 14 1 65 
Adjusted EBITDA1
$550 $159 $7 $716 
Capital expenditures$405 $225 $3 $633 
Numbers may not foot due to rounding.
1Adjusted 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.