v3.25.1
Business Segment Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Business Segment Information
Note 11 Business Segment Information
TDS has the following reportable segments: UScellular Wireless, UScellular Towers and TDS Telecom. UScellular Wireless generates its revenues by providing wireless services and equipment. UScellular Towers generates its revenues by leasing tower space on UScellular-owned towers to other wireless carriers. TDS Telecom generates its revenues by providing broadband, video, voice and wireless services. The Towers segment records rental revenue and the Wireless segment records a related expense when the Wireless segment uses company-owned towers to locate its network equipment, using estimated market pricing - this revenue and expense is eliminated in consolidation.
The reportable segments are billed for services they receive from TDS, consisting primarily of information processing, accounting, finance, and general management services. Such billings are based on expenses specifically identified to the reportable segments and on allocations of common expenses. Management believes the method used to allocate common expenses is reasonable and that all expenses and costs applicable to the reportable segments are reflected in the accompanying business segment information.
Adjusted earnings before interest, taxes, depreciation, amortization and accretion (Adjusted EBITDA) is the segment measure of profit or loss reported to the chief operating decision maker for purposes of assessing the segments' performance and making capital allocation decisions. Adjusted EBITDA is a non-GAAP financial measure that shows adjusted earnings before interest, taxes, depreciation, amortization and accretion, gains and losses, and expenses related to the strategic alternatives review of UScellular. TDS believes Adjusted EBITDA is a useful measure of TDS’ operating results before significant recurring non-cash charges, gains and losses, and other items as presented below as it provides additional relevant and useful information to investors and other users of TDS' financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management's evaluation of business performance. TDS’ chief operating decision maker is its President and Chief Executive Officer.
Financial data for TDS’ reportable segments for the three months ended March 31, 2025 and 2024, is as follows.
Three Months Ended March 31, 2025UScellular WirelessUScellular TowersTDS TelecomTotal
(Dollars in millions) 
Revenues from external customers$864 $27 $256 $1,147 
Intersegment revenues— 34 1 35 
864 61 257 1,182 
Reconciliation of revenue:
All Other revenues1
7 
Elimination of intersegment revenues(35)
Total operating revenues$1,154 
Less2:
Cost of services (excluding Depreciation, amortization and accretion reported below)191 19 101 
Cost of equipment and products178 — — 
Selling, general and administrative322 10 83 
Expenses related to strategic alternatives review (included in Selling, general and administrative)(9)(1)— 
Other segment items— — (3)
Segment Adjusted EBITDA (Non-GAAP)$182 $33 $76 $291 
Reconciliation of Segment Adjusted EBITDA to Income before income taxes:
All Other income (loss) before income taxes1
(25)
Depreciation, amortization and accretion(234)
Expenses related to strategic alternatives review (included in Selling, general and administrative)(10)
Loss on asset disposals, net(4)
Gain on license sales and exchanges, net1 
Equity earnings of unconsolidated entities36 
Interest and dividend income3 
Interest expense(38)
Income before income taxes$20 
Other segment disclosures
Three Months Ended or as of March 31, 2025UScellular WirelessUScellular TowersTDS TelecomSegment TotalUScellular
All Other1
TDS Consolidated Total
Depreciation, amortization and accretion$(152)$(11)$(71)$(234)$— $(234)
Loss on asset disposals, net(2)— (2)(4)— (4)
Gain on sale of business and other exit costs, net— — — — 1 1 
Gain on license sales and exchanges, net1 — — 1 — 1 
Investments in unconsolidated entities3
4 4 479 44 527 
Total assets4
2,906 2,906 10,365 265 13,536 
Capital expenditures$51 $2 $59 $112 $— $112 
Three Months Ended March 31, 2024UScellular WirelessUScellular TowersTDS TelecomTotal
(Dollars in millions) 
Revenues from external customers$925 $25 $265 $1,215 
Intersegment revenues— 33 1 34 
925 58 266 1,249 
Reconciliation of revenue:
All Other revenues1
47 
Elimination of intersegment revenues(34)
Total operating revenues$1,262 
Less2:
Cost of services (excluding Depreciation, amortization and accretion reported below)197 18 98 
Cost of equipment and products216 — — 
Selling, general and administrative324 7 75 
Expenses related to strategic alternatives review (included in Selling, general and administrative)(7)— — 
Other segment items— — (2)
Segment Adjusted EBITDA (Non-GAAP)$195 $33 $95 $323 
Reconciliation of Segment Adjusted EBITDA to Income before income taxes:
All Other income (loss) before income taxes1
(25)
Depreciation, amortization and accretion(230)
Expenses related to strategic alternatives review (included in Selling, general and administrative)(7)
Loss on asset disposals, net(8)
Gain on license sales and exchanges, net1 
Equity earnings of unconsolidated entities42 
Interest and dividend income2 
Interest expense(41)
Income before income taxes$58 
Other segment disclosures
Three Months Ended or as of March 31, 2024UScellular WirelessUScellular TowersTDS TelecomSegment TotalUScellular
All Other1
TDS Consolidated Total
Depreciation, amortization and accretion$(154)$(11)$(65)$(230)$(4)$(234)
Gain (loss) on asset disposals, net(6)— (2)(8)1 (7)
Gain on license sales and exchanges, net1 — — 1 — 1 
Investments in unconsolidated entities3
4 4 482 40 526 
Total assets4
2,892 2,892 10,704 270 13,866 
Capital expenditures$127 $4 $87 $218 $1 $219 
Numbers may not foot due to rounding.
1"All Other" represents TDS' non-reportable other business activities that do not meet the quantitative thresholds for being a reportable segment.
2The significant segment expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Intersegment expenses are included within the amounts shown.
3This item is not included in the evaluation of operating performance of the Wireless and Towers segments, and therefore is reported for "UScellular".
4Assets are not provided at the individual segment level for Wireless and Towers, and therefore are reported for "UScellular". The UScellular segments operate under a common capital structure, and management has historically considered its assets collectively as part of a combined wireless network.