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Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2021

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 and product sales are point in time.


Three Months Ended September 30, 2021	UScellular		TDS Telecom		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service1	$	699	$	—	$	—	$	699
Inbound roaming	30		—		—		30
Residential	—		162		—		162
Commercial	—		45		—		45
Wholesale	—		43		—		43
Other service	38		—		19		57
Service revenues from contracts with customers	767		251		19		1,037
Equipment and product sales	228		—		35		263
Total revenues from contracts with customers	995		251		54		1,300
Operating lease income	21		1		6		28
Total operating revenues	$	1,016	$	252	$	60	$	1,328


Three Months Ended September 30, 2020	UScellular		TDS Telecom		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	—		152		—		152
Commercial	—		48		—		48
Wholesale	—		45		—		45
Other service	39		—		18		57
Service revenues from contracts with customers	755		246		18		1,019
Equipment and product sales	252		—		26		278
Total revenues from contracts with customers	1,007		246		44		1,297
Operating lease income	20		1		6		27
Total operating revenues	$	1,027	$	247	$	50	$	1,324



Nine Months Ended September 30, 2021	UScellular		TDS Telecom		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service1	$	2,069	$	—	$	—	$	2,069
Inbound roaming	86		—		—		86
Residential	—		479		—		479
Commercial	—		138		—		138
Wholesale	—		132		—		132
Other service	117		—		53		170
Service revenues from contracts with customers	2,272		749		53		3,074
Equipment and product sales	720		1		80		801
Total revenues from contracts with customers	2,992		750		133		3,875
Operating lease income	61		2		19		82
Total operating revenues	$	3,053	$	752	$	152	$	3,957



Nine Months Ended September 30, 2020	UScellular		TDS Telecom		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	—		441		—		441
Commercial	—		146		—		146
Wholesale	—		137		—		137
Other service	110		—		51		161
Service revenues from contracts with customers	2,233		725		51		3,009
Equipment and product sales	674		1		86		761
Total revenues from contracts with customers	2,907		726		137		3,770
Operating lease income	57		2		20		79
Total operating revenues	$	2,964	$	728	$	157	$	3,849

Numbers may not foot due to rounding.

1During the three months ended September 30, 2021, UScellular recorded a $9 million out-of-period error related to the timing of recognition of regulatory fee billings. This adjustment had the impact of increasing Service revenue by $9 million for the three and nine months ended September 30, 2021. UScellular determined that this adjustment was not material to any of the periods impacted.

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.


	September 30, 2021		December 31, 2020
(Dollars in millions)
Contract assets	$	12	$	13
Contract liabilities	$	243	$	216

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, 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	$	204
2022	216
Thereafter	238
Total	$	658

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, 2021		December 31, 2020
(Dollars in millions)
Costs to obtain contracts
Sales commissions	$	135	$	139
Fulfillment costs
Installation costs	10		10

Total contract cost assets	$	145	$	149