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, 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 June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
(Dollars in millions)
Revenues from contracts with customers:
Retail service	$	658	$	662	$	1,329	$	1,322
Inbound roaming	41		44		77		78
Other service	35		35		71		66
Service revenues from contracts with customers	734		741		1,477		1,466
Equipment sales	220		216		422		441
Total revenues from contracts with customers	954		957		1,899		1,907
Operating lease income	19		16		38		32
Total operating revenues	$	973	$	973	$	1,937	$	1,939

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	$	9	$	7
Contract liabilities	$	151	$	154

Revenue recognized related to contract liabilities existing at January 1, 2020 was $110 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 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 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	$	158
2021	116
Thereafter	175
Total	$	449

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 $123 million at June 30, 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 $26 million and $53 million for the three and six months ended June 30, 2020, respectively, and $27 million and $55 million for the three and six months ended June 30, 2019, respectively, and was included in Selling, general and administrative expenses.