Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2023

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 recognized at a point in time.


Year Ended December 31, 2023	UScellular		TDS Telecom		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service1	$	2,742	$	—	$	—	$	2,742
Inbound roaming	32		—		—		32
Residential	—		700		—		700
Commercial	—		155		—		155
Wholesale	—		169		—		169
Other service	169		—		75		244
Service revenues from contracts with customers	2,943		1,024		75		4,042
Equipment and product sales	862		1		128		991
Total revenues from contracts with customers2	$	3,805	$	1,025	$	203	$	5,033


Year Ended December 31, 2022	UScellular		TDS Telecom		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service	$	2,793	$	—	$	—	$	2,793
Inbound roaming	67		—		—		67
Residential	—		669		—		669
Commercial	—		173		—		173
Wholesale	—		173		—		173
Other service	172		—		73		245
Service revenues from contracts with customers	3,032		1,015		73		4,120
Equipment and product sales	1,044		1		128		1,173
Total revenues from contracts with customers2	$	4,076	$	1,016	$	201	$	5,293


Year Ended December 31, 2021	UScellular		TDS Telecom		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service3,4	$	2,757	$	—	$	—	$	2,757
Inbound roaming	110		—		—		110
Residential	—		641		—		641
Commercial	—		183		—		183
Wholesale	—		178		—		178
Other service2	165		—		73		238
Service revenues from contracts with customers	3,032		1,002		73		4,107
Equipment and product sales	1,007		1		105		1,113
Total revenues from contracts with customers2	$	4,039	$	1,003	$	178	$	5,220

Numbers may not foot due to rounding.

1UScellular recorded an adjustment to correct a prior period error related to the recognition of discounts for certain Prepaid customers, which decreased Service revenue by $5 million in 2023. This adjustment was not material to any of the periods impacted.

2Revenue line items in this table will not agree to amounts presented in the Consolidated Statement of Operations as the amounts in this table only include revenue resulting from contracts with customers.

3For 2021, amounts have been adjusted to reclassify $8 million of Internet of Things (IoT) and Reseller revenues from Retail service to Other service.

4UScellular recorded an adjustment to correct a prior period error related to the timing of recognition of regulatory fee billings which increased Service revenue by $9 million in 2021. 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.


December 31,	2023		2022
(Dollars in millions)
Contract assets	$	14	$	12
Contract liabilities	$	380	$	395

Revenue recognized related to contract liabilities existing at January 1, 2023 was $262 million for the year ended December 31, 2023.

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 December 31, 2023, 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)
2024	$	362
2025	161
Thereafter	73
Total	$	596

Contract Cost Assets

Contract cost asset balances, which are recorded in Other assets and deferred charges in the Consolidated Balance Sheet, were as follows:


December 31,	2023		2022
(Dollars in millions)
Costs to obtain contracts
Sales commissions	$	143	$	144
Fulfillment costs
Installation costs	6		8
Total contract cost assets	$	149	$	152