Revenue Recognition

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Note 2 Revenue Recognition

Disaggregation of Revenue

In the following table, U.S. Cellular's revenues are disaggregated by type of service, which represents the relevant categorization of revenues for U.S. Cellular, and timing of recognition. Service revenues are recognized over time and Equipment sales are point in time.



	Three Months Ended March 31,
	2020		2019
(Dollars in millions)
Revenues from contracts with customers:
Retail service	$	671	$	659
Inbound roaming	37		34
Other service	35		32
Service revenues from contracts with customers	743		725
Equipment sales	201		225
Total revenues from contracts with customers	944		950
Operating lease income	19		16
Total operating revenues	$	963	$	966

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, 2020		December 31, 2019
(Dollars in millions)
Contract assets	$	7	$	7
Contract liabilities	$	146	$	154

Revenue recognized related to contract liabilities existing at January 1, 2020 was $99 million for the three months ended March 31, 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 wireless 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, 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	$	180
2021	100
Thereafter	164
Total	$	444

Contract Cost Assets

U.S. Cellular expects that commission fees paid as a result of obtaining contracts are recoverable and, therefore, U.S. Cellular defers and amortizes these costs. As a practical expedient, costs with an amortization period of one year or less are expensed as incurred. The contract cost asset balance related to commission fees and other costs was $127 million at March 31, 2020, and $133 million at December 31, 2019, and was recorded in Other assets and deferred charges in the Consolidated Balance Sheet. Deferred commission fees are amortized based on the timing of transfer of the goods or services to which the assets relate, typically the contract term. Amortization of contract cost assets was $27 million for each of the three month periods ended March 31, 2020 and 2019, and was included in Selling, general and administrative expenses.