Revenue Recognition

3 Months Ended

Mar. 31, 2021

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.

Three Months Ended March 31, 2021	UScellular		TDS Telecom		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service	$	685	$	—	$	—	$	685
Inbound roaming	28		—		—		28
Residential	—		157		—		157
Commercial	—		47		—		47
Wholesale	—		45		—		45
Other service	38		—		16		54
Service revenues from contracts with customers	751		248		16		1,016
Equipment and product sales	252		—		24		276
Total revenues from contracts with customers	1,003		248		40		1,292
Operating lease income	20		1		5		26
Total operating revenues	$	1,023	$	249	$	46	$	1,318

Three Months Ended March 31, 2020	UScellular		TDS Telecom		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	—		144		—		144
Commercial	—		50		—		50
Wholesale	—		45		—		45
Other service	35		—		18		53
Service revenues from contracts with customers	743		239		18		1,000
Equipment and product sales	201		—		34		235
Total revenues from contracts with customers	944		240		52		1,235
Operating lease income	19		1		6		26
Total operating revenues	$	963	$	240	$	58	$	1,261
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.

	March 31, 2021		December 31, 2020
(Dollars in millions)
Contract assets	$	13	$	13
Contract liabilities	$	230	$	216

Revenue recognized related to contract liabilities existing at January 1, 2021 was $131 million for the three months ended March 31, 2021.

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 March 31, 2021 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 2021	$	330
2022	187
Thereafter	184
Total	$	701

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, 2021		December 31, 2020
(Dollars in millions)
Costs to obtain contracts
Sales commissions	$	136	$	139
Fulfillment costs
Installation costs	11		10
Total contract cost assets	$	147	$	149

Amortization of contract cost assets was $29 million and $31 million for the three months ended March 31, 2021 and 2020, respectively, and was included in Selling, general and administrative expenses and Cost of services expenses.