Revenue Recognition

9 Months Ended

Sep. 30, 2020

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 point in time.

			TDS Telecom
Three Months Ended September 30, 2020	UScellular		Wireline		Cable		TDS Telecom Total1		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service	$	674	$	—	$	—	$	—	$	—	$	674
Inbound roaming	42		—		—		—		—		42
Residential	—		90		62		152		—		152
Commercial	—		38		11		49		—		49
Wholesale	—		45		—		45		—		45
Other service	39		—		—		—		18		57
Service revenues from contracts with customers	755		172		74		246		18		1,019
Equipment and product sales	252		—		—		—		26		278
Total revenues from contracts with customers	1,007		173		74		246		44		1,297
Operating lease income	20		—		—		1		6		27
Total operating revenues	$	1,027	$	173	$	74	$	247	$	50	$	1,324

			TDS Telecom
Three Months Ended September 30, 2019	UScellular		Wireline		Cable		TDS Telecom Total1		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service	$	663	$	—	$	—	$	—	$	—	$	663
Inbound roaming	54		—		—		—		—		54
Residential	—		83		52		135		—		135
Commercial	—		41		10		52		—		52
Wholesale	—		44		—		44		—		44
Other service	34		—		—		—		19		53
Service revenues from contracts with customers	751		168		62		230		19		1,001
Equipment and product sales	257		—		—		—		34		291
Total revenues from contracts with customers	1,008		168		62		230		53		1,292
Operating lease income	23		1		1		1		5		29
Total operating revenues	$	1,031	$	169	$	62	$	231	$	59	$	1,321

			TDS Telecom
Nine Months Ended September 30, 2020	UScellular		Wireline		Cable		TDS Telecom Total1		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service	$	2,004	$	—	$	—	$	—	$	—	$	2,004
Inbound roaming	119		—		—		—		—		119
Residential	—		260		182		441		—		441
Commercial	—		115		33		149		—		149
Wholesale	—		135		—		135		—		135
Other service	110		—		—		—		51		161
Service revenues from contracts with customers	2,233		510		215		725		51		3,009
Equipment and product sales	674		1		—		1		86		761
Total revenues from contracts with customers	2,907		511		215		726		137		3,770
Operating lease income	57		1		1		2		20		79
Total operating revenues	$	2,964	$	512	$	216	$	728	$	157	$	3,849

			TDS Telecom
Nine Months Ended September 30, 2019	UScellular		Wireline		Cable		TDS Telecom Total1		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service	$	1,984	$	—	$	—	$	—	$	—	$	1,984
Inbound roaming	132		—		—		—		—		132
Residential	—		245		152		397		—		397
Commercial	—		127		32		159		—		159
Wholesale	—		137		—		137		—		137
Other service	101		—		—		(1)		54		154
Service revenues from contracts with customers	2,217		510		183		692		54		2,963
Equipment and product sales	698		1		—		1		103		802
Total revenues from contracts with customers	2,915		511		184		693		157		3,765
Operating lease income	55		1		1		2		18		75
Total operating revenues	$	2,970	$	512	$	184	$	695	$	175	$	3,840

Numbers may not foot due to rounding.

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

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.

	September 30, 2020		December 31, 2019
(Dollars in millions)
Contract assets	$	13	$	10
Contract liabilities	$	189	$	197

Revenue recognized related to contract liabilities existing at January 1, 2020 was $159 million for the nine months ended September 30, 2020.

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 September 30, 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	$	194
2021	230
Thereafter	272
Total	$	696

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:

	September 30, 2020		December 31, 2019
(Dollars in millions)
Costs to obtain contracts
Sales commissions	$	137	$	146
Fulfillment costs
Installation costs	11		11
Total contract cost assets	$	148	$	157

Amortization of contract cost assets was $30 million and $91 million for the three and nine months ended September 30, 2020, respectively, and $31 million and $95 million for the three and nine months ended September 30, 2019, respectively, and was included in Selling, general and administrative expenses and Cost of services expenses.