v3.25.1
Business Segment Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Business Segment Information
Note 10 Business Segment Information
UScellular has the following reportable segments: Wireless and Towers. Wireless generates its revenues by providing wireless services and equipment. Towers generates its revenues by leasing tower space on UScellular-owned towers to other wireless carriers. 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.
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. UScellular believes Adjusted EBITDA is a useful measure of UScellular's 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 UScellular's 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. UScellular's chief operating decision maker is the UScellular Chair.
Financial data for UScellular's reportable segments for the three months ended March 31, 2025 and 2024, is as follows.
Three Months Ended March 31, 2025WirelessTowersTotal
(Dollars in millions) 
Revenues from external customers$864 $27 $891 
Intersegment revenues— 34 34 
864 61 925 
Reconciliation of revenue:
Elimination of intersegment revenues(34)
Total operating revenues$891 
Less1:
Cost of services (excluding Depreciation, amortization and accretion reported below)191 19 
Cost of equipment and products178 — 
Selling, general and administrative322 10 
Expenses related to strategic alternatives review (included in Selling, general and administrative)(9)(1)
Segment Adjusted EBITDA (Non-GAAP)$182 $33 $215 
Reconciliation of Segment Adjusted EBITDA to Income before income taxes:
Depreciation, amortization and accretion(163)
Expenses related to strategic alternatives review (included in Selling, general and administrative)(10)
Loss on asset disposals, net(2)
Gain on license sales and exchanges, net1 
Equity earnings of unconsolidated entities36 
Interest and dividend income3 
Interest expense(40)
Income before income taxes$40 
Other segment disclosures
Three Months Ended or as of March 31, 2025WirelessTowersSegment TotalUScellular
Depreciation, amortization and accretion$(152)$(11)$(163)
Loss on asset disposals, net(2)— (2)
Gain on license sales and exchanges, net1 — 1 
Investments in unconsolidated entities2
$479 
Total assets3
$10,365 
Capital expenditures$51 $2 $53 
Three Months Ended March 31, 2024WirelessTowersTotal
(Dollars in millions) 
Revenues from external customers$925 $25 $950 
Intersegment revenues— 33 33 
925 58 983 
Reconciliation of revenue:
Elimination of intersegment revenues(33)
Total operating revenues$950 
Less1:
Cost of services (excluding Depreciation, amortization and accretion reported below)197 18 
Cost of equipment and products216 — 
Selling, general and administrative324 7 
Expenses related to strategic alternatives review (included in Selling, general and administrative)(7)— 
Segment Adjusted EBITDA (Non-GAAP)$195 $33 $228 
Reconciliation of Segment Adjusted EBITDA to Income before income taxes:
Depreciation, amortization and accretion(165)
Expenses related to strategic alternatives review (included in Selling, general and administrative)(7)
Loss on asset disposals, net(6)
Gain on license sales and exchanges, net1 
Equity earnings of unconsolidated entities42 
Interest and dividend income2 
Interest expense(43)
Income before income taxes$52 
Other segment disclosures
Three Months Ended or as of March 31, 2024WirelessTowersSegment TotalUScellular
Depreciation, amortization and accretion$(154)$(11)$(165)
Loss on asset disposals, net(6)— (6)
Gain on license sales and exchanges, net1 — 1 
Investments in unconsolidated entities2
$482 
Total assets3
$10,704 
Capital expenditures$127 $4 $131 
1The 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.
2This item is not included in the evaluation of operating performance of the Wireless and Towers segments, and therefore is reported for "UScellular".
3Assets 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.