Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

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 sales are point in time.



			TDS Telecom
Three Months Ended March 31, 2020	U.S. Cellular		Wireline		Cable		TDS Telecom Total¹		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service	$	671	$	—	$	—	$	—	$	—	$	671
Inbound roaming	37		—		—		—		—		37
Residential	—		84		60		144		—		144
Commercial	—		39		11		50		—		50
Wholesale	—		45		—		45		—		45
Other service	35		—		—		—		18		53
Service revenues from contracts with customers	743		169		71		239		18		1,000
Equipment and product sales	201		—		—		—		34		235
Total revenues from contracts with customers	944		169		71		240		52		1,235
Operating lease income	19		—		—		1		6		26
Total operating revenues	$	963	$	169	$	71	$	240	$	58	$	1,261



			TDS Telecom
Three Months Ended March 31, 2019	U.S. Cellular		Wireline		Cable		TDS Telecom Total¹		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service	$	659	$	—	$	—	$	—	$	—	$	659
Inbound roaming	34		—		—		—		—		34
Residential	—		81		49		131		—		131
Commercial	—		43		10		54		—		54
Wholesale	—		45		—		45		—		45
Other service	32		—		—		—		18		50
Service revenues from contracts with customers	725		170		60		229		18		973
Equipment and product sales	225		—		—		—		37		262
Total revenues from contracts with customers	950		170		60		230		55		1,235
Operating lease income	16		—		—		—		6		22
Total operating revenues	$	966	$	171	$	60	$	230	$	61	$	1,257

Numbers may not foot due to rounding.


¹	TDS Telecom Total includes eliminations between the Wireline and Cable segments.

Contract with Customer, Assets and Liabilities

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.



	March 31, 2020		December 31, 2019
(Dollars in millions)
Contract assets	$	10	$	10
Contract liabilities	$	189	$	197

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 March 31, 2020 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 2020	$	316
2021	191
Thereafter	212
Total	$	719

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:



	March 31, 2020		December 31, 2019
(Dollars in millions)
Costs to obtain contracts
Sales commissions	$	141	$	146
Fulfillment costs
Installation costs	10		11
Other costs	1		—
Total contract cost assets	$	152	$	157