XML 80 R48.htm IDEA: XBRL DOCUMENT v3.24.0.1
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Stock-based compensation
The following table summarizes stock-based compensation expense recognized during 2023, 2022 and 2021:

Year Ended December 31,202320222021
(Dollars in millions)   
Stock option awards$— $1 $2 
Restricted stock unit awards32 28 29 
Performance share unit awards7 11 16 
Awards under Non-Employee Director compensation plan2 2 2 
Total stock-based compensation, before income taxes41 42 49 
Income tax benefit(10)(11)(12)
Total stock-based compensation expense, net of income taxes$31 $31 $37 
Stock-based compensation, allocation by financial statement line item
The following table provides a summary of the classification of stock-based compensation expense included in the Consolidated Statement of Operations for the years ended:

December 31,202320222021
(Dollars in millions)   
Selling, general and administrative expense$36 $36 $44 
Cost of services expense5 6 5 
Total stock-based compensation expense$41 $42 $49 
Summary of nonvested restricted stock units
A summary of TDS nonvested restricted stock units and changes during 2023 is presented in the table below:
Common Restricted Stock UnitsNumberWeighted Average Grant Date Fair Value
Nonvested at December 31, 20221,824,000 $18.16 
Granted2,473,000 $5.23 
Vested(532,000)$17.24 
Forfeited(130,000)$10.89 
Nonvested at December 31, 20233,635,000 $9.76 
A summary of UScellular nonvested restricted stock units and changes during 2023 is presented in the table below:
Common Restricted Stock UnitsNumberWeighted Average Grant Date Fair Value
Nonvested at December 31, 20222,000,000 $31.84 
Granted1,286,000 $21.15 
Vested(526,000)$28.73 
Forfeited(212,000)$28.93 
Nonvested at December 31, 20232,548,000 $27.26 
Summary of nonvested performance share units
A summary of TDS nonvested performance share units and changes during 2023 is presented in the table below:
Common Performance Share UnitsNumberWeighted Average Grant Date Fair Value
Nonvested at December 31, 20221,349,000 $19.81 
Granted1,343,000 $7.14 
Vested(391,000)$19.15 
Change in units based on approved performance factors10,000 $19.15 
Forfeited(216,000)$16.79 
Accumulated dividend equivalents106,000 $13.21 
Nonvested at December 31, 20232,201,000 $12.17 
A summary of UScellular’s nonvested performance share units and changes during 2023 is presented in the table below:
Common Performance Share UnitsNumberWeighted Average Grant Date Fair Value
Nonvested at December 31, 20221,248,000 $32.51 
Granted643,000 $21.26 
Vested(300,000)$28.41 
Forfeited(134,000)$26.53 
Nonvested at December 31, 20231,457,000 $27.37 
Stock-based compensation, fair value assumptions
TDS estimated the fair value of stock options granted in 2021 using the Black-Scholes valuation model and the assumptions shown in the table below:
 2021
Expected life6.3 years
Expected annual volatility rate36.6 %
Dividend yield2.8 %
Risk-free interest rate1.1 %
Summary of stock options
A summary of TDS stock options (total and portion exercisable) and changes during 2023 is presented in the tables and narrative below.
Common Share Options
Number of OptionsWeighted Average Exercise Prices
Aggregate Intrinsic Value
(in millions)
Weighted Average Remaining Contractual Life
(in years)
Outstanding at December 31, 20223,098,000 $26.37 
Exercised(7,000)$19.15 
Forfeited(18,000)$22.66 
Expired(556,000)$25.02 
Outstanding at December 31, 20232,517,000 $26.72 $— 3.5
(2,280,000 exercisable)$26.86 $— 3.1