Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2025

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.


Three Months Ended March 31, 2025	UScellular		TDS Telecom		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service	$	660	$	—	$	—	$	660

Residential	—		184		—		184
Commercial	—		35		—		35
Wholesale	—		38		—		38
Other service	54		—		(2)		52
Service revenues from contracts with customers	714		256		(2)		969
Equipment and product sales	150		—		7		157
Total revenues from contracts with customers1	864		256		5		1,126
Operating lease income1	27		1		—		28
Total operating revenues	$	891	$	257	$	5	$	1,154


Three Months Ended March 31, 2024	UScellular		TDS Telecom		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service	$	678	$	—	$	—	$	678

Residential	—		185		—		185
Commercial	—		37		—		37
Wholesale	—		43		—		43
Other service	51		—		18		69
Service revenues from contracts with customers	729		265		18		1,012
Equipment and product sales	196		—		22		218
Total revenues from contracts with customers1	925		266		40		1,230
Operating lease income1	25		1		6		32
Total operating revenues	$	950	$	266	$	46	$	1,262

Numbers may not foot due to rounding.

1UScellular's Total revenues from contracts with customers represents revenues related to the Wireless segment and Operating lease income represents revenues related to the Towers segment.

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.


	March 31, 2025		December 31, 2024
(Dollars in millions)
Contract assets	$	7	$	8
Contract liabilities	$	372	$	382

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, 2025 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.

A significant portion of TDS Telecom's residential revenue is derived from customers who may generally cancel their subscriptions at any time without penalty. For these contracts, the amount of revenue related to unsatisfied performance obligations is not necessarily indicative of the future revenue to be recognized from TDS Telecom's existing customer base and therefore is excluded from these estimates.


	Service Revenues
(Dollars in millions)
Remainder of 2025	$	288
2026	130
Thereafter	84
Total	$	502

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, 2025		December 31, 2024
(Dollars in millions)
Costs to obtain contracts
Sales commissions	$	142	$	145
Fulfillment costs
Installation costs	2		2

Total contract cost assets	$	144	$	147