Revenue Recognition

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 2 Revenue Recognition

Disaggregation of Revenue

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
(Dollars in millions)
Revenues from contracts with customers:
Retail service	$	674	$	663	$	2,004	$	1,984
Inbound roaming	42		54		119		132
Other service	39		34		110		101
Service revenues from contracts with customers	755		751		2,233		2,217
Equipment sales	252		257		674		698
Total revenues from contracts with customers	1,007		1,008		2,907		2,915
Operating lease income	20		23		57		55
Total operating revenues	$	1,027	$	1,031	$	2,964	$	2,970

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.

	September 30, 2020		December 31, 2019
(Dollars in millions)
Contract assets	$	11	$	7
Contract liabilities	$	144	$	154

Revenue recognized related to contract liabilities existing at January 1, 2020 was $122 million for the nine months ended September 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 September 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	$	114
2021	131
Thereafter	189
Total	$	434

Contract Cost Assets

UScellular expects that commission fees paid as a result of obtaining contracts are recoverable and, therefore, UScellular 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 September 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 $79 million for the three and nine months ended September 30, 2020, respectively, and $27 million and $82 million for the three and nine months ended September 30, 2019, respectively, and was included in Selling, general and administrative expenses.