v3.25.1
Revenue Recognition
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Note 2 Revenue Recognition
Disaggregation of Revenue
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, 2025UScellularTDS TelecomCorporate, Eliminations and OtherTotal
(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 service54 — (2)52 
Service revenues from contracts with customers714 256 (2)969 
Equipment and product sales150 — 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, 2024UScellularTDS TelecomCorporate, Eliminations and OtherTotal
(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 service51 — 18 69 
Service revenues from contracts with customers729 265 18 1,012 
Equipment and product sales196 — 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 Balances
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, 2025December 31, 2024
(Dollars in millions) 
Contract assets$7 $8 
Contract liabilities$372 $382 
Revenue recognized related to contract liabilities existing at January 1, 2025 was $160 million for the three months ended March 31, 2025.
Transaction price allocated to the 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 
2026130 
Thereafter84 
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, 2025December 31, 2024
(Dollars in millions) 
Costs to obtain contracts 
Sales commissions$142 $145 
Fulfillment costs
Installation costs2 2 
Total contract cost assets$144 $147 
Amortization of contract cost assets was $25 million for both the three months ended March 31, 2025, and 2024, and was included in Selling, general and administrative expenses and Cost of services expenses.