Revenue Recognition

6 Months Ended

Jun. 30, 2020

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 sales are point in time.

			TDS Telecom
Three Months Ended June 30, 2020	U.S. Cellular		Wireline		Cable		TDS Telecom Total1		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service	$	658	$	—	$	—	$	—	$	—	$	658
Inbound roaming	41		—		—		—		—		41
Residential	—		85		60		145		—		145
Commercial	—		38		11		49		—		49
Wholesale	—		45		—		45		—		45
Other service	35		—		—		—		17		52
Service revenues from contracts with customers	734		169		71		239		17		990
Equipment and product sales	220		—		—		—		27		247
Total revenues from contracts with customers	954		169		71		240		43		1,237
Operating lease income	19		1		—		1		6		26
Total operating revenues	$	973	$	169	$	71	$	241	$	49	$	1,263

			TDS Telecom
Three Months Ended June 30, 2019	U.S. Cellular		Wireline		Cable		TDS Telecom Total1		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service	$	662	$	—	$	—	$	—	$	—	$	662
Inbound roaming	44		—		—		—		—		44
Residential	—		81		51		131		—		131
Commercial	—		42		11		54		—		54
Wholesale	—		48		—		48		—		48
Other service	35		—		—		—		16		51
Service revenues from contracts with customers	741		172		62		233		16		990
Equipment and product sales	216		—		—		—		32		248
Total revenues from contracts with customers	957		172		62		233		48		1,238
Operating lease income	16		—		—		—		7		23
Total operating revenues	$	973	$	172	$	62	$	233	$	55	$	1,261

			TDS Telecom
Six Months Ended June 30, 2020	U.S. Cellular		Wireline		Cable		TDS Telecom Total1		Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service	$	1,329	$	—	$	—	$	—	$	—	$	1,329
Inbound roaming	77		—		—		—		—		77
Residential	—		170		119		289		—		289
Commercial	—		77		22		99		—		99
Wholesale	—		91		—		91		—		91
Other service	71		—		—		—		35		106
Service revenues from contracts with customers	1,477		338		141		479		35		1,990
Equipment and product sales	422		—		—		1		59		482
Total revenues from contracts with customers	1,899		338		142		479		94		2,472
Operating lease income	38		1		1		2		12		52
Total operating revenues	$	1,937	$	339	$	142	$	481	$	106	$	2,524

			TDS Telecom
Six Months Ended June 30, 2019	U.S. Cellular		Wireline		Cable		TDS Telecom Total1			Corporate, Eliminations and Other		Total
(Dollars in millions)
Revenues from contracts with customers:
Type of service:
Retail service	$	1,322	$	—	$	—	$	—		$	—	$	1,322
Inbound roaming	78		—		—		—			—		78
Residential	—		162		100		262			—		262
Commercial	—		86		21		107			—		107
Wholesale	—		94		—		94			—		94
Other service	66		—		—		(1		)	35		100
Service revenues from contracts with customers	1,466		342		121		462			35		1,963
Equipment and product sales	441		1		—		1			68		510
Total revenues from contracts with customers	1,907		342		121		463			103		2,473
Operating lease income	32		—		—		1			12		45
Total operating revenues	$	1,939	$	343	$	121	$	464		$	115	$	2,518

Numbers may not foot due to rounding.

¹  TDS Telecom Total includes eliminations between the Wireline and Cable segments.

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.

	June 30, 2020		December 31, 2019
(Dollars in millions)
Contract assets	$	11	$	10
Contract liabilities	$	195	$	197

Revenue recognized related to contract liabilities existing at January 1, 2020 was $145 million for the six months ended June 30, 2020.

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 June 30, 2020 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.

	Service Revenues
(Dollars in millions)
Remainder of 2020	$	261
2021	217
Thereafter	234
Total	$	712

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:

	June 30, 2020		December 31, 2019
(Dollars in millions)
Costs to obtain contracts
Sales commissions	$	137	$	146
Fulfillment costs
Installation costs	10		11
Other costs	1		—
Total contract cost assets	$	148	$	157

Amortization of contract cost assets was $30 million and $61 million for the three and six months ended June 30, 2020, respectively, and $32 million and $64 million for the three and six months ended June 30, 2019, respectively, and was included in Selling, general and administrative expenses and Cost of services expenses.